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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2025

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

Commission File Number

Exact name of registrants as specified in their charters

I.R.S. Employer

Identification Number

001-08489

DOMINION ENERGY, INC.

54-1229715

000-55337

Virginia ELECTRIC AND POWER COMPANY

54-0418825

 

Virginia

(State or other jurisdiction of incorporation or organization)

 

600 EAST CANAL STREET

RICHMOND, Virginia

(Address of principal executive offices)

23219

(Zip Code)

 

(804) 819-2284

(Registrants’ telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Registrant

Trading

Symbol

Title of Each Class

Name of Each Exchange

on Which Registered

DOMINION ENERGY, INC.

D

Common Stock, no par value

New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act:

VIRGINIA ELECTRIC AND POWER COMPANY

Common Stock, no par value

 

Indicate by check mark whether the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act.

Dominion Energy, Inc. Yes No Virginia Electric and Power Company Yes No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Dominion Energy, Inc. Yes No Virginia Electric and Power Company Yes No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Dominion Energy, Inc. Yes No Virginia Electric and Power Company Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Dominion Energy, Inc. Yes No Virginia Electric and Power Company Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Dominion Energy, Inc.

Large accelerated filer

Accelerated filer

Emerging growth company

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

 

Virginia Electric and Power Company

Large accelerated filer

Accelerated filer

Emerging growth company

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Dominion Energy, Inc. Virginia Electric and Power Company

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act).

Dominion Energy, Inc. Yes No Virginia Electric and Power Company Yes No

The aggregate market value of Dominion Energy, Inc. common stock held by non-affiliates of Dominion Energy, Inc. was approximately $48.2 billion based on the closing price of Dominion Energy, Inc.’s common stock as reported on the New York Stock Exchange as of the last day of Dominion Energy, Inc.’s most recently completed second fiscal quarter. Dominion Energy, Inc. is the sole holder of Virginia Electric and Power Company common stock. At February 16, 2026, Dominion Energy, Inc. had 878,785,631 shares of common stock outstanding and Virginia Electric and Power Company had 373,881 shares of common stock outstanding.

DOCUMENT INCORPORATED BY REFERENCE

Portions of Dominion Energy, Inc.’s 2026 Proxy Statement are incorporated by reference in Part III.

This combined Form 10-K represents separate filings by Dominion Energy, Inc. and Virginia Electric and Power Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Virginia Electric and Power Company makes no representations as to the information relating to Dominion Energy, Inc.’s other operations.

VIRGINIA ELECTRIC AND POWER COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I(1)(a) AND (b) OF FORM 10-K AND IS FILING THIS FORM 10-K UNDER THE REDUCED DISCLOSURE FORMAT.


Dominion Energy, Inc. and Virginia Electric and Power Company

 

2


Glossary of Terms

 

The following abbreviations or acronyms used in this Form 10-K are defined below:

Abbreviation or Acronym

 

Definition

2017 Tax Reform Act

 

An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (previously known as The Tax Cuts and Jobs Act) enacted on December 22, 2017

2021 Triennial Review

 

Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the four successive 12-month test periods beginning January 1, 2017 and ending December 31, 2020

2023 Biennial Review

 

Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the two successive 12-month test periods beginning January 1, 2021 and ending December 31, 2022 and prospective rate base setting for the succeeding annual periods beginning January 1, 2024 and ending December 31, 2025

2024 Series A JSNs

 

Dominion Energy’s 2024 Series A Enhanced Junior Subordinated Notes due 2055

2024 Series B JSNs

 

Dominion Energy’s 2024 Series B Enhanced Junior Subordinated Notes due 2054

2024 Series C JSNs

 

Dominion Energy’s 2024 Series C Enhanced Junior Subordinated Notes due 2055

2025 Biennial Review

 

Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the two successive 12-month test periods beginning January 1, 2023 and ending December 31, 2024 and prospective rate base setting for the succeeding annual periods beginning January 1, 2026 and ending December 31, 2027

2025 Series A JSNs

 

Dominion Energy’s 2025 Series A Junior Subordinated Notes due 2056

2025 Series B JSNs

 

Dominion Energy’s 2025 Series B Junior Subordinated Notes due 2056

2026 Proxy Statement

 

Dominion Energy 2026 Proxy Statement, File No. 001-08489

2027 Biennial Review

 

Future Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the two successive 12-month test periods beginning January 1, 2025 and ending December 31, 2026 and prospective rate base setting for the succeeding annual periods beginning January 1, 2028 and ending December 31, 2029

ABO

 

Accumulated benefit obligation

AEP

 

The legal entity American Electric Power Company, Inc., one or more of its consolidated subsidiaries, or the entirety of American Electric Power Company, Inc. and its consolidated subsidiaries

AES

 

The legal entity The AES Corporation, one or more of its consolidated subsidiaries, or the entirety of The AES Corporation and its consolidated subsidiaries

AFUDC

 

Allowance for funds used during construction

Align RNG

 

Align RNG, LLC, a joint venture between Dominion Energy and Smithfield Foods, Inc.

Altavista

 

Altavista biomass power station

AOCI

 

Accumulated other comprehensive income (loss)

ARO

 

Asset retirement obligation

Atlantic Coast Pipeline

 

Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy and Duke Energy

Atlantic Coast Pipeline Project

 

A previously proposed approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina which would have been owned by Dominion Energy and Duke Energy

bcf

 

Billion cubic feet

Bear Garden

 

A 622 MW combined-cycle, natural gas-fired power station in Buckingham County, Virginia

Bedford

 

A 70 MW solar generation facility in Chesapeake, Virginia

BHE

 

The legal entity, Berkshire Hathaway Energy Company, one or more of its consolidated subsidiaries (including Eastern Energy Gas Holdings, LLC, Northeast Midstream Partners, LP and Cove Point effective November 2020), or the entirety of Berkshire Hathaway Energy Company and its consolidated subsidiaries

Birdseye

 

Birdseye Renewable Energy, LLC

BLS Industry Average OSHA Recordable Rate

 

An average of the OSHA Recordable Rate published by the Bureau of Labor Statistics for electric power generation, transmission and distribution (NAICS code 2211) and natural gas distribution (NAICS code 2212)

BOEM

 

U.S. Department of Interior’s Bureau of Ocean Energy Management

Brunswick County

 

A 1,376 MW combined-cycle, natural gas-fired power station in Brunswick County, Virginia

CAA

 

Clean Air Act

CAISO

 

California ISO

Canadys Station

 

A proposed 2.2 GW advanced class combined cycle natural gas-fired power station in Colleton County, South Carolina, to be jointly owned by DESC and Santee Cooper

CAO

 

Chief Accounting Officer

CCR

 

Coal combustion residual

CCRO

 

Customer credit reinvestment offset

CEA

 

Commodity Exchange Act

CEO

 

Chief Executive Officer

CERCLA

 

Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as Superfund

3


 

 

Abbreviation or Acronym

 

Definition

CFIUS

 

The Committee on Foreign Investment in the U.S.

CFO

 

Chief Financial Officer

CH4

 

Methane

Chesterfield Energy Reliability Center

 

A proposed 944 MW simple-cycle, natural gas-fired power station in Chesterfield County, Virginia

CNG

 

Consolidated Natural Gas Company

CO2

 

Carbon dioxide

CODM

 

Chief Operating Decision Maker

Community Energy Act

 

House Bill 2346, known as the Community Energy Act, which was signed into law in the Commonwealth of Virginia in May 2025

Companies

 

Dominion Energy and Virginia Power, collectively

Contracted Energy

 

Contracted Energy operating segment

Cooling degree days

 

Units measuring the extent to which the average daily temperature is greater than 65 degrees Fahrenheit, or 75 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 75 degrees, as applicable, and the average temperature for that day

Cove Point

 

Cove Point LNG, LP (formerly known as Dominion Energy Cove Point LNG, LP)

CPCN

 

Certificate of Public Convenience and Necessity

CVOW Commercial Project

 

A proposed 2.6 GW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters adjacent to the CVOW Pilot Project and associated interconnection facilities in and around Virginia Beach, Virginia

CVOW Pilot Project

 

A 12 MW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters

CWA

 

Clean Water Act

DECP Holdings

 

The legal entity DECP Holdings, Inc., which held Dominion Energy’s noncontrolling interest in Cove Point (through September 2023)

DES

 

Dominion Energy Services, Inc.

DESC

 

The legal entity, Dominion Energy South Carolina, Inc., one or more of its consolidated entities or operating segment, or the entirety of Dominion Energy South Carolina, Inc. and its consolidated entities

Dodd-Frank Act

 

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

DOE

 

U.S. Department of Energy

Dominion Energy

 

The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than Virginia Power) or operating segments, or the entirety of Dominion Energy, Inc. and its consolidated subsidiaries

Dominion Energy Direct®

 

A dividend reinvestment and open enrollment direct stock purchase plan

Dominion Energy South Carolina

 

Dominion Energy South Carolina operating segment

Dominion Energy Virginia

 

Dominion Energy Virginia operating segment

Dominion Privatization

 

Dominion Utility Privatization, LLC, a joint venture between Dominion Energy and Patriot

DSM

 

Demand-side management

DSM Riders

 

Rate adjustment clauses, designated Riders C1A, C2A, C3A and C4A, associated with the recovery of costs related to certain Virginia DSM programs in approved DSM cases

Dth

 

Dekatherm

Duke Energy

 

The legal entity, Duke Energy Corporation, one or more of its consolidated subsidiaries, or the entirety of Duke Energy Corporation and its consolidated subsidiaries

Eagle Solar

 

Eagle Solar, LLC, a wholly-owned subsidiary of Dominion Generation, Inc.

East Ohio

 

The East Ohio Gas Company (a subsidiary of Enbridge effective March 2024)

East Ohio Transaction

 

The sale by Dominion Energy to Enbridge of all issued and outstanding capital stock in Dominion Energy Questar Corporation and its consolidated subsidiaries, which following a reorganization included East Ohio and Dominion Energy Gas Distribution, LLC, pursuant to a purchase and sale agreement entered into on September 5, 2023, which was completed on March 6, 2024

Enbridge

 

The legal entity, Enbridge Inc., one or more of its consolidated subsidiaries (including Enbridge Elephant Holdings, LLC, Enbridge Parrot Holdings, LLC and Enbridge Quail Holdings, LLC), or the entirety of Enbridge Inc. and its consolidated subsidiaries

EPA

 

U.S. Environmental Protection Agency

EPACT

 

Energy Policy Act of 2005

EPS

 

Earnings per common share

ERISA

 

Employee Retirement Income Security Act of 1974

ESA

 

Endangered Species Act

Excess Tax Benefits

 

Benefits of tax deductions in excess of the compensation cost recognized for stock-based compensation

FASB

 

Financial Accounting Standards Board

FCC

 

Federal Communications Commission

FERC

 

Federal Energy Regulatory Commission

4


 

 

Abbreviation or Acronym

 

Definition

FirstEnergy

 

The legal entity FirstEnergy Corp., one or more of its consolidated subsidiaries, or the entirety of FirstEnergy Corp. and its consolidated subsidiaries

Fitch

 

Fitch Ratings Ltd.

FTRs

 

Financial transmission rights

GAAP

 

U.S. generally accepted accounting principles

GENCO

 

South Carolina Generating Company, Inc.

GHG

 

Greenhouse gas

Green Mountain

 

Green Mountain Power Corporation

Greensville County

 

A 1,605 MW combined-cycle, natural gas-fired power station in Greensville County, Virginia

GTSA

 

Virginia Grid Transformation and Security Act of 2018

GW

 

Gigawatt

Heating degree days

 

Units measuring the extent to which the average daily temperature is less than 65 degrees Fahrenheit, or 60 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 60 degrees, as applicable, and the average temperature for that day

Hopewell

 

Polyester biomass power station

Idaho Commission

 

Idaho Public Utilities Commission

IRA

 

An Act to Provide for Reconciliation Pursuant to Title II of Senate Concurrent Resolution 14 of the 117th Congress (also known as the Inflation Reduction Act of 2022) enacted on August 16, 2022

IRS

 

Internal Revenue Service

ISO

 

Independent system operator

ISO-NE

 

ISO New England

Jones Act

 

The Coastwise Merchandise Statute (commonly known as the Jones Act) 46 U.S.C. §55102 regulating U.S. maritime commerce

kV

 

Kilovolt

LNG

 

Liquefied natural gas

LTIP

 

Long-term incentive program

Massachusetts Municipal

 

Massachusetts Municipal Wholesale Electric Company

mcfe

 

Thousand cubic feet equivalent

MD&A

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

MGD

 

Million gallons per day

Millstone

 

Millstone nuclear power station

Millstone 2019 power purchase agreements

 

Power purchase agreements with Eversource Energy and The United Illuminating Company for Millstone to provide nine million MWh per year of electricity for ten years

MMBtu

 

Metric Million British thermal unit

Moody’s

 

Moody’s Investors Service

MW

 

Megawatt

MWh

 

Megawatt hour

N2O

 

Nitrous oxide

Natural Gas Rate Stabilization Act

 

Legislation effective February 2005 designed to improve and maintain natural gas service infrastructure to meet the needs of customers in South Carolina

NAV

 

Net asset value

NEIL

 

Nuclear Electric Insurance Limited

NERC

 

North American Electric Reliability Corporation

NND Project

 

V.C. Summer Units 2 and 3 nuclear development project under which DESC and Santee Cooper undertook to construct two Westinghouse AP1000 Advanced Passive Safety nuclear units in Jenkinsville, South Carolina

North Anna

 

North Anna nuclear power station

North Carolina Commission

 

North Carolina Utilities Commission

NOX

 

Nitrogen oxide

NRC

 

U.S. Nuclear Regulatory Commission

NYSE

 

New York Stock Exchange

OBBBA

 

An Act to Provide for Reconciliation Pursuant to Title II of House Concurrent Resolution 14 of the 119th Congress (also known as the One Big Beautiful Bill Act) enacted on July 4, 2025

October 2014 hybrids

 

Dominion Energy’s 2014 Series A Enhanced Junior Subordinated Notes due 2054

ODEC

 

Old Dominion Electric Cooperative

Ohio Commission

 

Public Utilities Commission of Ohio

Order 1000

 

Order issued by FERC adopting requirements for electric transmission planning, cost allocation and development

5


 

 

Abbreviation or Acronym

 

Definition

OSHA Recordable Rate

 

Number of recordable cases, as defined by the Occupational Safety and Health Administration, a division of the U.S. Department of Labor, for every 100 employees over the course of a year

OSWP

 

OSW Project LLC, a limited liability company owned by Virginia Power and Stonepeak

ozone season

 

The period May 1 through September 30, as determined on a federal level

Patriot

 

Patriot Utility Privatizations, LLC, a joint venture between Foundation Infrastructure Partners, LLC and John Hancock Life Insurance Company (U.S.A.) and affiliates

PFAS

 

Per- and polyfluorinated substances, a group of widely used chemicals that break down very slowly over time in the environment

PHMSA

 

Pipeline and Hazardous Materials Safety Administration

PJM

 

PJM Interconnection, LLC

PSD

 

Prevention of significant deterioration

PSNC

 

Public Service Company of North Carolina, Incorporated (a subsidiary of Enbridge effective September 2024)

PSNC Transaction

 

The sale by Dominion Energy to Enbridge of all of its membership interests in Fall North Carolina Holdco LLC and its consolidated subsidiaries, which following a reorganization included PSNC, pursuant to a purchase and sale agreement entered into on September 5, 2023, which was completed on September 30, 2024

Pumpkinseed

 

A 60 MW solar generation facility in Emporia, Virginia

Questar Gas

 

Questar Gas Company (a subsidiary of Enbridge effective May 2024)

Questar Gas Transaction

 

The sale by Dominion Energy to Enbridge of all of its membership interests in Fall West Holdco LLC and its consolidated subsidiaries, which following a reorganization included Questar Gas, Wexpro, Wexpro II Company, Wexpro Development Company, Dominion Energy Wexpro Services Company, Questar InfoComm Inc. and Dominion Gas Projects Company, LLC, pursuant to a purchase and sale agreement entered into on September 5, 2023, which was completed on May 31, 2024

Regulation Act

 

Legislation effective July 1, 2007, that amended the Virginia Electric Utility Restructuring Act and fuel factor statute, which legislation is also known as the Virginia Electric Utility Regulation Act, as amended in 2015, 2018 and 2023

RGGI

 

Regional Greenhouse Gas Initiative

Rider CCR

 

A rate adjustment clause associated with the recovery of costs related to the removal of CCR at certain power stations

Rider CE

 

A rate adjustment clause associated with the recovery of costs related to certain renewable generation, energy storage and related transmission facilities in Virginia, certain small-scale distributed generation projects and related transmission facilities and, beginning May 2024, power purchase agreements for the energy, capacity, ancillary services and renewable energy credits owned by third parties

Rider DIST

 

A rate adjustment clause associated with the recovery of costs related to electric distribution grid transformation projects that the Virginia Commission has approved as authorized by the GTSA and costs of new underground distribution facilities

Rider GEN

 

A rate adjustment clause associated with the recovery of costs related to Altavista, Hopewell, Southampton, Brunswick County, Greensville County, certain solar facilities and the Virginia LNG Storage Facility

Rider OSW

 

A rate adjustment clause associated with costs incurred to construct, own and operate the CVOW Commercial Project

Rider RPS

 

A rate adjustment clause associated with the recovery of costs related to the mandatory renewable portfolio standard program established by the VCEA

Rider SNA

 

A rate adjustment clause associated with costs relating to the preparation of the applications for subsequent license renewal to the NRC to extend the operating licenses of Surry and North Anna and related projects

Rider T1

 

A rate adjustment clause to recover the difference between revenues produced from transmission rates included in base rates, and the new total revenue requirement developed annually for the rate years effective September 1

Rider U

 

A rate adjustment clause associated with the recovery of costs of new underground distribution facilities

ROE

 

Return on equity

ROIC

 

Return on invested capital

RTEP

 

Regional transmission expansion plan

RTO

 

Regional transmission organization

SAIDI

 

System Average Interruption Duration Index, metric used to measure electric service reliability

Santee Cooper

 

South Carolina Public Service Authority

SCANA

 

The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries, or the entirety of SCANA Corporation and its consolidated subsidiaries

SCANA Combination

 

Dominion Energy’s acquisition of SCANA completed on January 1, 2019 pursuant to the terms of the agreement and plan of merger entered on January 2, 2018 between Dominion Energy and SCANA

6


 

 

Abbreviation or Acronym

 

Definition

SCANA Merger Approval Order

 

Final order issued by the South Carolina Commission on December 21, 2018 setting forth its approval of the SCANA Combination

SCDOR

 

South Carolina Department of Revenue

SCESA

 

South Carolina Energy Security Act

Scope 1 emissions

 

Emissions that are produced directly by an entity’s own operations

Scope 2 emissions

 

Emissions from electricity a company consumes but does not generate from its own facilities

Scope 3 emissions

 

Emissions generated downstream of company operations by customers and upstream by suppliers

SEC

 

U.S. Securities and Exchange Commission

Section 232

 

Section 232 of the Trade Expansion Act of 1962

SEEM

 

Southeast Energy Exchange Market

SERC

 

Southeast Electric Reliability Council

Series B Preferred Stock

 

Dominion Energy’s 4.65% Series B Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share

Series C Preferred Stock

 

Dominion Energy’s 4.35% Series C Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share

SF6

 

Sulfur hexafluoride

SO2

 

Sulfur dioxide

South Carolina Commission

 

Public Service Commission of South Carolina

Southampton

 

Southampton biomass power station

Southern

 

The legal entity, The Southern Company, one or more of its consolidated subsidiaries, or the entirety of The Southern Company and its consolidated subsidiaries

Spruce Power

 

The legal entity, Spruce Power Holding Corporation, one or more of its consolidated subsidiaries, or the entirety of Spruce Power Holding Corporation and its consolidated subsidiaries

Standard & Poor’s

 

Standard & Poor’s Ratings Services, a division of S&P Global Inc.

Stonepeak

 

The legal entity Stonepeak Partners, LLC, one or more of its affiliated investment vehicles (including Dunedin Member LLC) or the entirety of Stonepeak Partners, LLC and its affiliated investment vehicles

Summer

 

V.C. Summer nuclear power station

Surry

 

Surry nuclear power station

Toshiba

 

Toshiba Corporation, parent company of Westinghouse

Toshiba settlement

 

Settlement Agreement dated as of July 27, 2017, by and among Toshiba, DESC and Santee Cooper

TSR

 

Total shareholder return

Utah Commission

 

Utah Public Service Commission

Valley Link

 

Valley Link Transmission Company, LLC, a limited liability company owned by Dominion Energy, AEP and FirstEnergy, one or more of its consolidated subsidiaries or the entirety of Valley Link Transmission Company, LLC and its consolidated subsidiaries

VCEA

 

Virginia Clean Economy Act of March 2020

VEBA

 

Voluntary Employees’ Beneficiary Association

VIE

 

Variable interest entity

Virginia City Hybrid Energy Center

 

A 610 MW baseload carbon-capture compatible, clean coal powered electric generation facility in Wise County, Virginia

Virginia Commission

 

Virginia State Corporation Commission

Virginia Facilities

 

Proposed electric interconnection and transmission facilities in and around Virginia Beach, Virginia, comprising transmission facilities required to interconnect the CVOW Commercial Project reliably with the existing transmission system; including 3 miles of 230 kV offshore export circuits, 4 miles of underground 230 kV onshore export circuits, a new Harpers switching station, 14 miles of three new overhead 230 kV transmission circuits between a new Harpers switching station and the Fentress substation, rebuild eight miles of two existing 230 kV overhead lines and an expansion of the Fentress substation

Virginia LNG Storage Facility

 

A proposed LNG storage facility in Brunswick and Greensville Counties, Virginia

Virginia Power

 

The legal entity, Virginia Electric and Power Company, one or more of its consolidated subsidiaries or operating segment, or the entirety of Virginia Electric and Power Company and its consolidated subsidiaries

VOC

 

Volatile organic compounds

VPFS

 

Virginia Power Fuel Securitization, LLC

VPP

 

Virtual power plant

Warren County

 

A 1,349 MW combined-cycle, natural gas-fired power station in Warren County, Virginia

Westinghouse

 

Westinghouse Electric Company LLC

Wexpro

 

The legal entity, Wexpro Company, one or more of its consolidated subsidiaries, or the entirety of Wexpro Company and its consolidated subsidiaries (a subsidiary of Enbridge effective May 2024)

Wyoming Commission

 

Wyoming Public Service Commission

 

7


Part I

 

 

Item 1. Business

General

Dominion Energy, headquartered in Richmond, Virginia and incorporated in Virginia in 1983, provides service to approximately 4.1 million primarily electric utility customers in Virginia, North Carolina and South Carolina. At December 31, 2025, Dominion Energy’s portfolio of assets includes approximately 30.7 GW of electric generating capacity, 10,800 miles of electric transmission lines and 80,400 miles of electric distribution lines. Dominion Energy is one of the nation’s leading developers and operators of regulated offshore wind and solar power and the largest producer of carbon-free electricity in New England. Dominion Energy’s mission is to provide the reliable, affordable and increasingly clean energy that powers its customers every day.

In connection with the comprehensive business review concluded in March 2024, Dominion Energy entered into agreements in September 2023 to sell all of its regulated gas distribution operations, except for DESC’s, to Enbridge. In addition, Dominion Energy completed the sale in September 2023 of its remaining 50% noncontrolling partnership interest in Cove Point to BHE under an agreement entered into in July 2023. Dominion Energy continues to focus on expanding and improving its regulated electric utilities and long-term contracted businesses while transitioning to a cleaner energy future. Its approximately $65 billion capital expenditure plan for 2026 through 2030 advances its “all-of-the-above” strategy through investments in zero-carbon and renewable generation, grid transformation, generation reliability and transmission and distribution resiliency to meet projected demand growth. Renewable generation facilities are expected to include significant investments in utility-scale solar and the CVOW Commercial Project. In addition, Dominion Energy has received license extensions for its regulated nuclear power stations in Virginia and South Carolina and intends to apply for license extensions for Millstone.

Dominion Energy currently expects approximately 95% of earnings to come from state-regulated utility operations in Virginia, North Carolina and South Carolina. Dominion Energy’s nonregulated operations consist primarily of long-term contracted electric generation operations. Dominion Energy’s operations are conducted through various subsidiaries, including DESC and Virginia Power. DESC is an SEC registrant; however, its Form 10-K is filed separately and is not combined herein.

Virginia Power, headquartered in Richmond, Virginia and incorporated in Virginia in 1909 as a Virginia public service corporation, is a wholly-owned subsidiary of Dominion Energy and a regulated public utility that generates, transmits and distributes electricity for sale in Virginia and North Carolina. In Virginia, Virginia Power conducts business under the name “Dominion Energy Virginia” and primarily serves retail customers. In North Carolina, it conducts business under the name “Dominion Energy North Carolina” and serves retail customers located in the northeastern region of the state, excluding certain municipalities. In addition, Virginia Power sells and transmits electricity at wholesale prices to rural electric cooperatives, municipalities and into wholesale electricity markets. All of Virginia Power’s stock is owned by Dominion Energy.

Amounts and information disclosed for Dominion Energy are inclusive of Virginia Power, where applicable.

Where You Can Find More Information About the Companies

The Companies file their annual, quarterly and current reports, proxy statements and other information with the SEC. Their SEC filings are available to the public over the Internet at the SEC’s website at https://www.sec.gov.

The Companies make their SEC filings, including the annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, available, free of charge, through Dominion Energy’s website, https://www.dominionenergy.com, as soon as reasonably practicable after filing or furnishing the material to the SEC. The Companies also make available on the “Investors” page of Dominion Energy’s website additional information which may be important to investors, such as investor presentations, earnings release kits and other materials and presentations. Information contained on Dominion Energy’s website, including, but not limited to reports mentioned in Environmental Strategy, is not incorporated by reference in this report.

Acquisitions and Dispositions

The following acquisitions and divestitures within the last three years are considered significant to the Companies.

Gas Distribution Operations

Sales to Enbridge

In March 2024, Dominion Energy completed the East Ohio Transaction with Enbridge for $4.3 billion in cash consideration and the assumption by Enbridge of approximately $2.3 billion of related long-term debt.

In May 2024, Dominion Energy completed the Questar Gas Transaction with Enbridge for $3.0 billion in cash consideration and the assumption by Enbridge of approximately $1.3 billion of related long-term debt.

In September 2024, Dominion Energy completed the PSNC Transaction with Enbridge for $2.0 billion in cash consideration and the assumption by Enbridge of approximately $1.3 billion of related long-term debt.

See Note 3 to the Consolidated Financial Statements for additional information.

Electric Generation Facilities

Sale of Noncontrolling Interest in CVOW Commercial Project

In October 2024, Virginia Power completed the sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak through the formation of OSWP. At closing, Virginia Power received $2.6 billion, representing 50% of the CVOW Commercial Project construction costs incurred through closing, less an initial withholding of $145 million.

See Note 10 to the Consolidated Financial Statements for additional information.

Acquisition of Nonregulated Solar Projects

In 2023, Dominion Energy entered into an agreement to acquire a nonregulated solar project in Virginia and completed the acquisition in 2024. The project was completed at a total cost of approximately $195 million, including initial acquisition cost, and generates approximately 83 MW.

8


 

 

 

See Note 10 to the Consolidated Financial Statements for additional information.

Acquisition of Offshore Wind Project

In October 2024, Virginia Power completed the acquisition of an approximately 40,000-acre area lease 27 miles off the coast of North Carolina in federal waters and associated project assets in the early stages of development for approximately $160 million.

See Note 10 to the Consolidated Financial Statements for additional information.

Equity Method Investment

Sale of Interest in Cove Point

In September 2023, Dominion Energy completed the sale of its 50% noncontrolling limited partnership interest in Cove Point to BHE for approximately $3.3 billion in cash proceeds.

See Note 9 to the Consolidated Financial Statements for additional information.

Human Capital

One of Dominion Energy’s greatest strengths is its employees, and their unique skills, knowledge, expertise and backgrounds allow Dominion Energy to fulfill its mission to provide the reliable, affordable and increasingly clean energy that powers its customers every day. At December 31, 2025, Dominion Energy had approximately 15,200 full-time employees, of which approximately 3,400 are subject to collective bargaining agreements, including approximately 6,700 full-time employees at Virginia Power, of which approximately 2,700 are subject to collective bargaining agreements.

Safety is the highest priority of Dominion Energy’s five core values with the fundamental goal to send every employee home safe and sound every day. In 2025, Dominion Energy experienced an OSHA Recordable Rate of 0.26 compared to 0.42 in 2024 and 0.45 in 2023. These rates reflect Dominion Energy’s dedication to safety when compared to a BLS Industry Average OSHA Recordable Rate of 1.9 in 2024 and 2.0 in 2023. As evidence of Dominion Energy’s commitment to safety, annual incentive plans for all employees, except as restricted by any collective bargaining agreements, include a safety performance measure.

Dominion Energy works to recruit, retain and develop the careers of talented individuals regardless of background who reflect its core values; safety, ethics, excellence, embrace change and one Dominion Energy. These core values support Dominion Energy’s employees in their efforts to optimize performance, collaborate within teams and across the organization and create a respectful, welcoming work environment. As an example, Dominion Energy sponsors ten employee resource groups enabling employees to work together to create community and promote excellent performance. Further, Dominion Energy is an equal opportunity employer committed to non-discrimination in all operations. As part of this, Dominion Energy periodically reviews its workforce representation to ensure it is casting a wide net for the best and brightest talent. In 2025, 2024 and 2023, the percentage of Dominion Energy’s workforce that was diverse was 39.1%, 38.7% and 37.7%, respectively. In 2025, 2024 and 2023, the percentage of new hires that were diverse was 43.9%, 45.3% and 49.0%, respectively. For the purposes of measuring and reporting on diversity as required by federal law, Dominion Energy follows federal EEO-1 guidelines and includes employees who self-identify their gender as female and/or their race/ethnicity as American Indian or Alaskan Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander or Two or More Races.

Dominion Energy attracts and retains its employees by offering competitive compensation and benefits packages, including healthcare, retirement, paid time off, parental leave and other benefits. Dominion Energy also offers continuous learning opportunities including tuition assistance programs, professional development resources and leadership development programs. Additionally, Dominion Energy creates opportunities for its employees to engage its leaders and with each other through respectful two-way conversations that help employees and leaders learn from one another, share insights and opinions and broaden the workforce’s perspectives regarding what matters to customers. Dominion Energy prioritizes employee engagement and routinely seeks feedback through surveys, focus groups and other means. Such feedback informs management decisions, enhances support for employees and improves customer service. These resources and programs are designed not only to engage and retain talented employees but also to allow Dominion Energy to meet the needs of its customers in an ever-changing industry with a skilled workforce.

OPERATING SEGMENTS

Dominion Energy manages its daily operations through three primary operating segments: Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy. See Note 26 to the Consolidated Financial Statements for a summary description of operations within each of the three primary operating segments. Dominion Energy also reports a Corporate and Other segment, which includes its corporate, service companies and other functions (including unallocated debt) as well as Dominion Energy’s noncontrolling interest in Dominion Privatization. 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 operating segments’ performance or in allocating resources. In addition, Corporate and Other includes the net impact of discontinued operations consisting primarily of the operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s equity investment in Atlantic Coast Pipeline as discussed in Notes 3 and 9 to the Consolidated Financial Statements.

Virginia Power manages its daily operations through its primary operating segment: Dominion Energy Virginia. It also reports a Corporate and Other segment that primarily includes specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

DOMINION ENERGY VIRGINIA

Dominion Energy Virginia is composed of Virginia Power’s regulated electric transmission, distribution and generation (regulated electric utility and its related energy supply) operations, which serve approximately 2.8 million residential, commercial, high load (including certain data centers), industrial and governmental customers in Virginia and North Carolina.

9


 

 

 

Dominion Energy Virginia’s capital plan for 2026 through 2030 includes spending approximately $55 billion, net of reimbursements from Stonepeak, to construct new generation capacity, including the CVOW Commercial Project and dispatchable generation facilities, to continue developments to meet its renewable generation targets and growing electricity demand within its service territory in order to maintain reliability and regulatory compliance and to upgrade or add new transmission lines, distribution lines, substations and other facilities, as well as maintain existing generation capacity. The proposed infrastructure projects and investment commitments are intended to address both continued customer growth and increases in electricity consumption which are primarily driven by new and larger data center customers. See Properties and Environmental Strategy for additional information on this and other utility projects.

Data centers have been a source of significant increase in demand which is expected to continue over the next decade. The concentration of data centers primarily in Loudoun County, Virginia represents a unique challenge and requires significant investments in electric transmission and generation facilities to meet the growing demand. PJM has projected a 5.4% average peak annual load growth over the next ten years for the PJM DOM Zone, which includes Dominion Energy Virginia’s service territory. Data centers represent 28% and 26% of Virginia Power’s electricity sales for the years ended December 31, 2025 and 2024, respectively. Virginia Power has implemented requirements over the years intended to ensure that its project queue is firm, such as requiring deposits for expensive long lead-time equipment along with reimbursement clauses for canceled projects.  In addition, Virginia Power will, in accordance with the terms of the 2025 Biennial Review order, begin in January 2027 to require a 14-year contract, collateral over that period and demand minimums for distribution, transmission and generation revenues for high load customers at connection. All of these contract provisions are designed to minimize both cross-rate class subsidies and stranded costs.

Virginia Power also plans to continue making progress on its ten-year plan through 2028 to transform its electric grid into a smarter, stronger and greener grid. This plan addresses the structural limitations of Virginia Power’s distribution grid in a systematic manner in order to recognize and accommodate fundamental changes and requirements in the energy industry. The objective is to address both customer and system needs by (i) achieving even higher levels of reliability and resiliency against natural and man-made threats, (ii) leveraging technology to enhance the customer experience and improve the operation of the system and (iii) safely and effectively integrating new utility-scale renewable generation and storage as well as customer–level distributed energy resources such as rooftop solar and battery storage. The Virginia Commission has approved portions of this plan through 2026.

Revenue provided by electric distribution and generation operations is based primarily on rates established by the Virginia and North Carolina Commissions. Approximately 80% of revenue comes from serving Virginia jurisdictional customers. Base rates for the Virginia jurisdiction are set using a modified cost-of-service rate model, and are generally designed to allow an opportunity to recover the cost of providing utility service and earn a reasonable return on investments used to provide that service. Variability in earnings is driven primarily by changes in rates, weather, customer growth and other factors impacting consumption such as the economy and energy conservation, in addition to operating and maintenance expenditures. Electric operations continue to focus on improving service and experience levels while striving to reduce costs and link investments to operational results. SAIDI performance results, excluding major events, were 133 minutes for the three-year average ending 2025, up from the previous three-year average of 130 minutes. This increase is primarily due to increased storm activity.

Earnings may also reflect variations in the timing or nature of expenses as compared to those contemplated in current rates, such as labor and benefit costs, capacity expenses, the timing, duration and costs of scheduled and unscheduled outages as well as certain customers’ ability to choose a generation service provider. The cost of fuel and purchased power is generally collected through fuel cost-recovery mechanisms established by regulators and does not materially impact net income. The cost of new generation facilities is generally recovered through riders in Virginia. Variability in earnings from riders reflects changes in the authorized ROE and the carrying amount of these facilities, which are largely driven by the timing and amount of capital investments, as well as depreciation. See Note 13 to the Consolidated Financial Statements for additional information.

Revenue provided by Virginia Power’s electric transmission operations is based primarily on rates approved by FERC. The profitability of this business is dependent on its ability, through the rates it is permitted to charge, to recover costs and earn a reasonable ROIC. Variability in earnings primarily results from changes in rates and the timing of property additions, retirements and depreciation.

Virginia Power is a member of PJM, an RTO, and its electric transmission facilities are integrated into PJM. Consistent with the increased authority given to NERC by EPACT, Virginia Power is committed to meeting NERC standards, modernizing its infrastructure and maintaining superior system reliability with respect to its electric transmission operations.

Competition

There is no competition for electric distribution service within Virginia Power’s service territory in Virginia and North Carolina and no such competition is currently permitted. Historically, since its electric transmission facilities are integrated into PJM and electric transmission services are administered by PJM, there was no competition in relation to transmission service provided to customers within the PJM region. However, competition from non-incumbent PJM transmission owners for development, construction and ownership of certain transmission facilities in Virginia Power’s service territory is permitted pursuant to Order 1000, subject to state and local siting and permitting approvals. This has resulted in additional competition to build and own transmission infrastructure in Virginia Power’s service area and allows Dominion Energy to seek opportunities to build and own facilities in other service territories, for example, through Valley Link. Additionally, there is some competition for Virginia Power’s generation operations for Virginia jurisdictional electric utility customers that meet certain size requirements or that currently are purchasing energy from competitive suppliers deemed to be 100% renewable by the Virginia Commission. See Electric under State Regulations in Regulation for additional information. Currently, North Carolina does not offer retail choice to electric customers.

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Virginia Power’s non-jurisdictional solar operations are not currently subject to significant competition as the output from these facilities is primarily sold under long-term power purchase agreements with terms generally ranging from 16 to 25 years. However, in the future, such operations may compete with other power generation facilities to serve certain large-scale customers after the power purchase agreements expire.

Regulation

Virginia Power’s electric distribution and generation operations, including the rates it may charge to jurisdictional customers, as well as wholesale electric transmission rates, tariffs and terms of service, are subject to regulation by the Virginia and North Carolina Commissions as well as FERC, NRC, EPA, DOE, U.S. Army Corps of Engineers, BOEM and other federal, state and local authorities. See State Regulations and Federal Regulations in Regulation, Future Issues and Other Matters in Item 7. MD&A and Notes 13 and 23 to the Consolidated Financial Statements for additional information.

Properties

For a description of existing facilities see Item 2. Properties.

CVOW Commercial Project

In September 2019, Virginia Power filed applications with PJM for the CVOW Commercial Project and for certain approvals and rider recovery from the Virginia Commission in November 2021. The Virginia Commission provided such approvals in August 2022, as revised for certain provisions related to rider recovery in December 2022. The majority of turbines comprising the 2.6 GW project are expected to be placed in service by the end of 2026 with the remainder in early 2027. The estimated total project cost is approximately $11.5 billion (excluding financing costs) which reflects a temporary suspension of work order and an estimated impact of certain tariffs which became effective during 2025 as well as the previously included revised estimate of network upgrade costs assigned by PJM to the CVOW Commercial Project. The Companies’ projected impact of tariffs on expected total project cost is subject to change due to the inherent uncertainty associated with which tariffs, if any, may be in effect and the associated requirements and rates of such tariffs. Virginia Power’s estimate for the project’s projected levelized cost of energy, including renewable energy credits, is approximately $84/MWh, compared to the initial filing submission of $80-90/MWh.

The expected total project cost reflects an increase of $0.2 billion, relative to Virginia Power’s October 2025 Rider OSW filing, associated with projected installation timeline changes arising from the temporary suspension of work from the BOEM Director’s Order issued in December 2025 until a preliminary injunction was granted by the U.S District Court for the Eastern District of Virginia in January 2026, which allowed work to resume. The estimated total project costs also include $0.6 billion of tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries and on equipment expected to be delivered from March 2025 through early 2027 that contains steel. Such amount is inclusive of approximately $0.2 billion associated with tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries that were the subject of a U.S. Supreme Court’s ruling on February 20, 2026. The actual tariffs to be incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component.

As previously considered in Virginia Power’s February 2025 construction update filing, the expected total project cost reflects projections for onshore electrical interconnection costs and network upgrade costs assigned to the project by PJM, specifically incorporating consideration of PJM’s December 2024 publication of potential transmission network upgrades required for certain generation projects and related cost allocations, including those attributable to the CVOW Commercial Project. Relative to Virginia Power’s November 2024 Rider OSW filing, the estimated total project cost reflects an approximately $0.6 billion increase for such onshore and network upgrade costs and an approximately $0.3 billion increase for increased contingency for remaining construction activities, completion of the removal of unexploded ordnance, undersea cable protection system design enhancements, commodity prices for transportation fuel, updates for sea fastener fabrication and installation and other construction and equipment supplier costs.

Virginia Power has entered into fixed price contracts for the major offshore construction and equipment components. These contracts include services denominated in currencies other than the U.S. dollar for approximately €2.6 billion and 5.1 billion kr., which have been included within the cost estimate above. In addition, certain of the fixed price contracts, approximately €0.7 billion, contain commodity indexing provisions linked to steel. In May 2022, Virginia Power entered into forward purchase agreements with a notional amount of approximately €3.2 billion to hedge its foreign currency rate risk exposure from certain fixed price contracts for the major offshore construction and equipment components of the CVOW Commercial Project. In January 2026, the interconnection agreement between PJM and Virginia Power for the CVOW Commercial Project was filed with FERC.

The estimated total project cost above reflects the Companies’ best estimate of the remaining construction costs, including contingency of approximately 7% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond the Companies’ control, including but not limited to actual network upgrade costs allocated by PJM, fuel for transportation and installation, the impact of applicable tariffs including any potential impact of Section 232 investigations and litigation ruled on by the U.S. Supreme Court on February 20, 2026, costs to maintain necessary permits, approvals and authorizations, any additional suspension of work orders, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife and/or any severe weather events.

Virginia Power commenced major onshore construction activities for the CVOW Commercial Project in November 2023 following the receipt of a record of decision from BOEM in October 2023 for construction. Onshore construction activities to support first power delivery were completed in December 2025 with remaining project activities to support commercial operations anticipated to be completed by mid-2026. Virginia Power commenced major offshore construction activities in May 2024 following the receipt of final approval from BOEM authorizing offshore construction and necessary permits from the U.S. Army Corps of Engineers for offshore construction in January 2024.

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Virginia Power completed the installation of all monopiles in October 2025. Transition pieces began to be installed on monopiles near the end of 2024 with 126 transition pieces installed through February 2026 and the remaining 50 expected to be installed in early 2026. The first of three offshore substations was installed in March 2025, with the second installed in November 2025 and the third installed in February 2026. Deepwater cables commenced being laid in late 2024 with the last of nine completed in July 2025. Of the 176 segments of interarray cable, expected to total 260 miles, 59 have been installed through February 2026 with the remaining expected to be laid throughout 2026. Installation commenced on turbines in December 2025 prior to being delayed by the temporary suspension of work order, with one of 176 completed through February 2026.

In August 2022, the Virginia Commission approved the application for certification of the Virginia Facilities component of the CVOW Commercial Project, the revenue requirement for the initial rate year of Rider OSW, subject to certain performance measures, and noted that no further action was required with respect to Virginia Power’s foreign currency risk mitigation plan. In December 2022, the Virginia Commission approved the settlement agreement filed in October 2022 by Virginia Power, Office of the Attorney General of Virginia and other parties and reinstated its August 2022 order granting approval of Rider OSW. The settlement agreement provides for a voluntary cost sharing mechanism resulting from unforeseen construction cost increases; specifically, that Virginia Power will be eligible to recover 50% of such incremental costs which fall between $10.3 billion and $11.3 billion with no recovery of such incremental costs which fall between $11.3 billion and $13.7 billion. There is no voluntary cost sharing mechanism for any total construction costs in excess of $13.7 billion, the recovery of which would be determined in a future Virginia Commission proceeding. The settlement agreement also provides for customers to receive the maximum benefits available under the IRA including that to the extent the IRA reduces the total construction costs, such reductions will also be applied to the cost sharing bands discussed above. In addition, the settlement agreement includes enhanced performance reporting provisions, in lieu of a performance guarantee, for the operation of the CVOW Commercial Project. To the extent the annual net capacity factor is below 42%, as determined on a three-year rolling average, Virginia Power is required to provide detailed explanation of the factors contributing to any shortfall to the Virginia Commission which could determine in a future proceeding a remedy for incremental costs incurred associated with any deemed unreasonable or imprudent actions of Virginia Power. See Note 13 to the Consolidated Financial Statements for additional information on Rider OSW.

In January 2023, following receipt of approval from the Virginia and North Carolina Commissions, Virginia Power entered into a lease contract with an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel at a total cost of approximately $240 million plus ancillary services. The vessel was delivered and the 20-month lease term commenced in September 2025. See additional discussion of the affiliated lease agreement in Note 25 to the Consolidated Financial Statements.

Virginia Power anticipates funding the CVOW Commercial Project consistent with its approved debt to equity capitalization structure. Through December 31, 2025, approximately $9.3 billion of costs had been incurred on the project. See Liquidity – Capital Expenditures in Item 7. MD&A for project costs expected to be incurred in 2026 through 2030. In October 2024, Virginia Power closed on the sale of a 50% noncontrolling interest in the project to Stonepeak following satisfaction of regulatory approvals, including from BOEM and the Virginia and North Carolina Commissions. At closing, Virginia Power received $2.6 billion, representing 50% of the CVOW Commercial Project construction costs incurred through closing, less an initial withholding of $145 million. If the total project costs of the CVOW Commercial Project are $9.8 billion, excluding financing costs, or less Virginia Power shall receive $100 million of the initial withholding. Such amount is subject to downward adjustment with Virginia Power receiving no withheld amounts if the total costs, excluding financing costs, of the CVOW Commercial Project exceed $11.3 billion.

Virginia Power and Stonepeak will each contribute 50% of the remaining capital necessary to fund construction of the CVOW Commercial Project provided the total project cost, excluding financing costs, is less than $11.3 billion. For capital funding necessary, if any, for total project costs, excluding financing costs, of $11.3 billion through $13.7 billion, Stonepeak will have the option to make additional capital contributions. If Stonepeak elects to make additional capital contributions for project costs, excluding financing costs, in excess of $11.3 billion, if any, Virginia Power shall contribute between 67% and 83% of such capital with Stonepeak contributing the remainder.  To the extent that Stonepeak elects not to make such contributions, Virginia Power shall receive an increase in its ownership percentage of OSWP for any contributed capital based on a tiered unit price for membership interests in OSWP as set forth in the agreement. Virginia Power and Stonepeak have the right to provide capital contributions for any total project costs, excluding financing costs, in excess of $13.7 billion.

See Note 10 to the Consolidated Financial Statements for additional information. The CVOW Commercial Project is vital for Virginia Power to meet the renewable energy portfolio standard established in the VCEA and is consistent with the criteria within the VCEA for the construction of an offshore wind facility deemed to be in the public interest as well as the guidelines facilitating cost recovery. See additional discussion of the VCEA provisions concerning renewable generation projects in Note 13 to the Consolidated Financial Statements.

Electric Generation and Storage Projects

In addition to the CVOW Commercial Project, Virginia Power is developing, financing and constructing new generation capacity and has also received license extensions on zero carbon nuclear generation facilities to meet its renewable generation targets and growing electricity demand within its service territory. Significant projects under construction or development as well as significant projects under consideration are set forth below:

Virginia Power plans to invest approximately $6.9 billion from 2026 through 2030 to acquire or construct several solar facilities to serve utility customers. See Notes 10 and 13 to the Consolidated Financial Statements for additional information.
Virginia Power plans to invest approximately $2.0 billion from 2026 to 2030 to develop battery-storage facilities to serve utility customers.
Virginia Power has received approval to construct and operate the Chesterfield Energy Reliability Center. The project is

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expected to cost $1.5 billion, excluding financing costs, to have a generating capacity of 944 MW and be placed into service in 2029 to enhance reliability for utility customers. Virginia Power plans to invest approximately $8.3 billion from 2026 to 2030 to develop additional dispatchable natural gas generation facilities to enhance reliability for utility customers.
Virginia Power received a 20-year extension of the operating licenses for its two units at Surry in 2021 and its two units at North Anna in 2024. See Nuclear Decommissioning below for additional information on these facilities.
Virginia Power has begun constructing an LNG storage facility which it will operate to serve as a backup fuel source for Brunswick County and Greensville County to support operations and improve system reliability. The facility is expected to cost approximately $550 million, excluding financing costs, and be placed into service by the end of 2027.
Virginia Power continues to consider the construction of a third nuclear unit at a site located at North Anna. See Future Issues and Other Matters in Item 7. MD&A for additional information on this project.
In October 2024, Virginia Power completed the acquisition of an approximately 40,000-acre area lease 27 miles off the coast of North Carolina in federal waters and associated project assets in the early stages of development for approximately $160 million. The CVOW South project, if constructed, is expected to have a generating capacity of 800 MW with ultimate development of the project dependent upon the receipt of approvals from the Virginia Commission and other permitting entities. The project would support Virginia Power’s ability to meet the renewable energy portfolio standards established in the VCEA.

Electric Transmission and Distribution Projects

Virginia Power continues to invest in transmission projects that are a part of PJM’s RTEP process which focus on reliability improvements and replacement of aging infrastructure. The projects that have been authorized by PJM are expected to result in future capital expenditures of approximately $8.3 billion from 2026 through 2030.

In October 2024, Dominion Energy announced a joint planning initiative with AEP and FirstEnergy. As part of the initiative, the companies jointly submitted initial project proposals for high-voltage transmission lines in Virginia, Maryland and West Virginia to PJM. In February 2025, Dominion Energy, AEP and FirstEnergy entered into an agreement for the operation of Valley Link to undertake a multi-year process to develop, construct and subsequently operate the new transmission line projects selected by PJM. Under the terms of the joint venture agreement, Dominion Energy will hold a 30% initial interest in Valley Link. Dominion Energy expects to invest approximately $1.0 billion from 2026 through 2030 in connection with this arrangement.

Virginia legislation provides for the recovery of costs, subject to approval by the Virginia Commission, for Virginia Power to move approximately 4,000 miles of electric distribution lines underground. The program is designed to reduce restoration outage time by moving Virginia Power’s most outage-prone overhead distribution lines underground, has an annual investment cap of approximately $387 million and is expected to be completed by 2029. The Virginia Commission has approved eight phases of the program encompassing approximately 2,500 miles of converted lines and $1.4 billion in capital spending recoverable through Rider U and Rider DIST. Additionally, Virginia Power has requested cost recovery for phase nine of the program from the Virginia Commission, encompassing approximately 300 miles of converted lines and $240 million in capital spending, recoverable through Rider DIST.

See Note 13 to the Consolidated Financial Statements for additional information.

Sources of Energy Supply

Virginia Power uses a variety of fuels to power its electric generation fleet and purchases power for utility system load requirements and to satisfy physical forward sale requirements. Some of these agreements have fixed commitments and are detailed further in Fuel and Other Purchase Commitments in Item 7. MD&A.

Presented below is a summary of Virginia Power’s actual system output by energy source:

 

Source

 

2025

 

2024

 

2023

 

Natural gas

 

39

%

40

%

36

%

Nuclear(1)

 

25

 

26

 

29

 

Purchased power, net

 

24

 

22

 

25

 

Coal(2)

 

7

 

5

 

5

 

Renewable and hydro(3)

 

5

 

7

 

5

 

Total

 

100

%

100

%

100

%

(1)
Excludes ODEC’s 11.6% undivided ownership interest in North Anna.
(2)
Excludes ODEC’s 50.0% undivided ownership interest in the Clover power station.
(3)
Includes wind, solar, biomass, battery and pumped storage.

Nuclear Fuel—Virginia Power primarily utilizes long-term contracts to support its nuclear fuel requirements. Worldwide market conditions are continuously evaluated to ensure a range of supply options at reasonable prices which are dependent on the market environment. Current agreements, inventories and spot market availability are expected to support current and planned fuel supply needs. Additional fuel is purchased as required to ensure optimal cost and inventory levels.

Fossil Fuel— Virginia Power primarily utilizes natural gas and coal in its fossil fuel plants. All recent fossil fuel plant construction involves natural gas generation.

Virginia Power’s natural gas and oil supply is obtained from various sources including purchases from major and independent producers in the Mid-Continent and Gulf Coast regions, purchases from local producers in the Appalachian area and Marcellus and Utica regions, purchases from gas marketers and withdrawals from underground storage fields owned by third parties. Virginia Power manages a portfolio of natural gas transportation contracts (capacity) that provides for reliable natural gas deliveries to its gas turbine fleet, while minimizing costs.

Virginia Power’s coal supply is obtained through long-term contracts and short-term spot agreements from domestic suppliers.

Biomass— Virginia Power’s biomass supply is obtained through long-term contracts and short-term spot agreements from local suppliers.

Purchased Power— Virginia Power purchases electricity from the PJM spot market and through power purchase agreements with other suppliers to provide for utility system load requirements.

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Seasonality

Virginia Power’s earnings vary seasonally as a result of the impact of changes in temperature, the impact of storms and other catastrophic weather events and the availability of alternative sources for heating on demand by residential and commercial customers. Generally, the demand for electricity peaks during the summer and winter months to meet cooling and heating needs, respectively. An increase in heating degree days for Virginia Power’s electric utility-related operations does not produce the same increase in revenue as an increase in cooling degree days, due to seasonal pricing differentials and because alternative heating sources are more readily available.

Nuclear Decommissioning

Virginia Power has a total of four licensed, operating nuclear reactors at Surry and North Anna in Virginia.

Decommissioning involves the decontamination and removal of radioactive contaminants from a nuclear power station once operations have ceased, in accordance with standards established by the NRC. Amounts collected from ratepayers have been placed into trusts and are invested to fund the expected future costs of decommissioning the Surry and North Anna units.

Virginia Power believes that the decommissioning funds and their expected earnings for the Surry and North Anna units will be sufficient to cover expected decommissioning costs, particularly when combined with future ratepayer collections and contributions to these decommissioning trusts, if such future collections and contributions are required. This reflects the long-term investment horizon, since the units will not be decommissioned for decades, and a positive long-term outlook for trust fund investment returns. Virginia Power will continue to monitor these trusts to ensure they meet the NRC minimum financial assurance requirements, which may include, if needed, the use of parent company guarantees, surety bonding or other financial instruments recognized by the NRC.

The estimated cost to decommission Virginia Power’s four nuclear units is reflected in the table below and is primarily based upon site-specific studies completed in 2024. These cost studies are generally completed every four to five years. The current cost estimates assume decommissioning activities will begin shortly after cessation of operations, which will occur when the operating licenses expire.

Under the current operating licenses, Virginia Power is scheduled to decommission the Surry and North Anna units during the period 2052 to 2118. NRC regulations allow licensees to apply for extension of an operating license in up to 20-year increments. Under the current operating licenses, the two units at Surry are permitted to generate electricity through 2052 and 2053, and the two units at North Anna are permitted to generate electricity through 2058 and 2060. Between the four units, Virginia Power estimates that it could spend approximately $5 billion through 2035 on capital improvements. The existing regulatory framework in Virginia provides rate recovery mechanisms for such costs.

 

The estimated decommissioning costs, funds in trust and current license expiration dates for Surry and North Anna are shown in the following table:

 

 

 

NRC license expiration year

 

Most recent cost estimate (2025 dollars)(1)

 

 

Funds in trusts at December 31, 2025(2)

 

(dollars in millions)

 

 

 

 

 

 

 

 

Surry

 

 

 

 

 

 

 

 

Unit 1

 

2052

 

$

907

 

 

$

1,383

 

Unit 2

 

2053

 

 

906

 

 

 

1,361

 

North Anna

 

 

 

 

 

 

 

 

Unit 1(3)

 

2058

 

 

859

 

 

 

1,095

 

Unit 2(3)

 

2060

 

 

864

 

 

 

1,025

 

Total

 

 

 

$

3,536

 

 

$

4,864

 

(1)
The cost estimates shown above reflect reductions for the expected future recovery of certain spent fuel costs based on Virginia Power’s contracts with the DOE for disposal of spent nuclear fuel consistent with the reductions reflected in Virginia Power’s nuclear decommissioning AROs.
(2)
Virginia Power did not make any contributions to its nuclear decommissioning trust funds during 2025.
(3)
North Anna is jointly owned by Virginia Power (88.4%) and ODEC (11.6%). However, Virginia Power is responsible for 89.26% of the decommissioning obligation. Amounts reflect 89.26% of the decommissioning cost for both of North Anna’s units.

Also see Notes 9, 14 and 23 to the Consolidated Financial Statements for additional information about nuclear decommissioning trust investments, AROs and other aspects of nuclear decommissioning, respectively.

DOMINION ENERGY SOUTH CAROLINA

Dominion Energy South Carolina is composed of DESC’s generation, transmission and distribution of electricity to approximately 0.8 million customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to approximately 0.5 million residential, commercial and industrial customers in South Carolina.

Dominion Energy South Carolina’s capital plan for 2026 through 2030 includes spending approximately $8 billion to upgrade existing or add new infrastructure to meet growing energy needs within its service territory and maintain reliability.

Revenue provided by DESC’s electric distribution operations is based primarily on rates established by the South Carolina Commission. Variability in earnings is driven primarily by changes in rates, weather, customer growth and other factors impacting consumption such as the economy and energy conservation, in addition to operating and maintenance expenditures.

DESC’s electric transmission operations serve its electric distribution operations as well as certain wholesale customers. Revenue provided by such electric transmission operations is based on a FERC-approved formula rate mechanism under DESC’s open access transmission tariff or based on retail rates established by the South Carolina Commission.

Revenue provided by DESC’s electric generation operations is primarily derived from the sale of electricity generated by its utility generation assets and is based on rates established by the South Carolina Commission. Variability in earnings may arise when revenues are impacted by factors not reflected in current rates, such as the impact of weather, customer demand or the timing and nature of expenses or outages.

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Electric operations continue to focus on improving service and experience levels while striving to reduce costs and link investments to operational results. SAIDI performance results, excluding major events, were 84 minutes for the three-year average ending 2025, up from the previous three-year average of 83 minutes.

Revenue provided by DESC’s natural gas distribution operations primarily results from rates established by the South Carolina Commission. Variability in earnings results from changes in operating and maintenance expenditures, as well as changes in rates and the demand for services, the availability and prices of alternative fuels and the economy.

DESC is a member of the Carolinas Reserve Sharing Group, one of several geographic divisions within the SERC. The SERC is one of seven regional entities with delegated authority from NERC for the purpose of proposing and enforcing reliability standards approved by NERC. In addition, DESC also participates in the SEEM platform, which became operational in November 2022. See Federal Regulations in Regulation for additional information on SEEM.

Competition

There is no competition for electric distribution or generation service within DESC’s retail electric service territory in South Carolina and no such competition is currently permitted. However, competition from third-party owners for development, construction and ownership of certain transmission facilities in DESC’s service territory is permitted pursuant to Order 1000, subject to state and local siting and permitting approvals. This could result in additional competition to build and own transmission infrastructure in DESC’s service area in the future and, as noted previously, could allow Dominion Energy to seek opportunities to build and own facilities in other service territories.

Competition in DESC’s natural gas distribution operations is generally based on price and convenience. Large commercial and industrial customers often have the ability to switch from natural gas to an alternate fuel, such as propane or fuel oil. Natural gas competes with these alternate fuels based on price. As a result, any significant disparity between supply and demand, either of natural gas or of alternate fuels, and due either to production or delivery disruptions or other factors, will affect price and the ability to retain large commercial and industrial customers.

Regulation

DESC’s electric distribution service, including the rates it may charge to jurisdictional customers, is subject to regulation by the South Carolina Commission. DESC’s electric generation operations are subject to regulation by the South Carolina Commission, FERC, NRC, EPA, DOE, U.S. Army Corps of Engineers and other federal, state and local authorities. DESC’s electric transmission service is primarily regulated by FERC and the DOE. DESC’s gas distribution operations are subject to regulation by the South Carolina Commission, PHMSA, the U.S. Department of Transportation and the South Carolina Office of Regulatory Staff, which enforce federal and state pipeline safety requirements. See State Regulations and Federal Regulations in Regulation, Future Issues and Other Matters in Item 7. MD&A and Notes 13 and 23 to the Consolidated Financial Statements for additional information.

Properties

For a description of existing facilities, see Item 2. Properties.

DESC has the following significant projects under construction or development to better serve customers or expand its service offerings within its service territory:

In February 2024, DESC received approval from the South Carolina Commission to provide electric services to two large industrial customers which will require development of new electric transmission facilities.

In January 2025, DESC received approval from the South Carolina Commission to pursue the construction of a new natural gas-fired combustion turbine unit at Urquhart to increase reliability, improve operational flexibility and reduce emissions. This facility is expected to cost approximately $395 million, excluding financing costs, have a total winter generating capacity of approximately 200 MW and be placed into service by the end of 2028. This project is expected to replace certain legacy natural gas-fired combustion turbine and natural gas-fired steam generation facilities at the site.

In December 2025, DESC, along with Santee Cooper, requested approval for the joint construction and operation of a combined cycle electric generating plant and associated facilities with a net capacity of approximately 2.2 GW. The project is currently expected to cost approximately $5 billion in total, excluding financing costs, with costs split equally between the joint owners, and is expected to be placed in service by 2033. These estimates are subject to refinement through the permitting process and the negotiation of contracts for major construction suppliers. The project reflects DESC’s commitment to reliable, affordable and cleaner energy while reinvesting in the local community.

Sources of Energy Supply

DESC uses a variety of fuels to power its electric generation fleet and purchases power for utility system load requirements. Some of these agreements have fixed commitments and are detailed further in Fuel and Other Purchase Commitments in Item 7. MD&A.

Presented below is a summary of DESC’s actual system output by energy source:

 

Source

 

2025

 

 

2024

 

 

2023

 

 

Natural gas

 

 

42

 

%

 

47

 

%

 

50

 

%

Nuclear(1)

 

 

23

 

 

 

21

 

 

 

21

 

 

Coal

 

 

23

 

 

 

21

 

 

 

18

 

 

Renewable and hydro(2)

 

 

12

 

 

 

11

 

 

 

11

 

 

Total

 

 

100

 

%

 

100

 

%

 

100

 

%

(1)
Excludes Santee Cooper’s 33.3% undivided ownership interest in Summer.
(2)
Includes solar.

Fossil Fuel— DESC purchases natural gas under contracts with producers and marketers on both a short-term and long-term basis at market-based prices. The gas is delivered to DESC through firm transportation agreements with various counterparties, through 2084.

DESC primarily obtains coal through short-term and long-term contracts with suppliers located in eastern Kentucky, Tennessee, Virginia and West Virginia that will expire at various times through 2026. Spot market purchases may occur when needed or when prices are believed to be favorable.

Nuclear Fuel— DESC primarily utilizes long-term contracts to support its nuclear fuel requirements. DESC, for itself and as agent for Santee Cooper, and Westinghouse are parties to a fuel alliance

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agreement and contracts for fuel fabrication and related services. Under these contracts, DESC supplies enriched products to Westinghouse, who in turn supplies nuclear fuel assemblies for Summer. Westinghouse is DESC’s exclusive provider of such fuel assemblies on a cost-plus basis. The fuel assemblies to be delivered under the contracts are expected to supply the nuclear fuel requirements through 2036.

In addition, DESC has contracts covering its nuclear fuel needs for uranium, conversion services and enrichment services. These contracts have varying expiration dates through 2032. DESC believes that it will be able to renew these contracts as they expire or enter into similar contractual arrangements with other suppliers of nuclear fuel materials and services and that sufficient capacity for nuclear fuel supplies and processing exists to allow for normal operations of its nuclear generating unit. Current agreements, inventories and spot market availability are expected to support current and planned fuel supply needs. Additional fuel is purchased as required to ensure optimal fuel and inventory levels.

Seasonality

DESC’s electric business earnings vary seasonally as a result of the impact of changes in temperature, the impact of storms and other catastrophic weather events and the availability of alternative sources for heating on demand by residential and commercial customers. Generally, the demand for electricity peaks during the summer and winter months to meet cooling and heating needs, respectively. An increase in heating degree days does not produce the same increase in revenue as an increase in cooling degree days, due to seasonal pricing differentials and because alternative heating sources are more readily available.

DESC’s gas distribution and storage business earnings vary seasonally as a result of the impact of changes in temperature on demand by residential and commercial customers for gas to meet heating needs. The majority of these earnings are generated during the heating season, which is generally from November to March; however, South Carolina has certain rate mechanisms designed to reduce the impact of weather-related fluctuations.

Nuclear Decommissioning

DESC has a two-thirds interest in one licensed, operating nuclear reactor at Summer in South Carolina.

Decommissioning involves the decontamination and removal of radioactive contaminants from a nuclear power station once operations have ceased, in accordance with standards established by the NRC. Amounts collected from ratepayers are placed into trusts and are invested to fund the expected future costs of decommissioning Summer.

DESC believes that the decommissioning funds and their expected earnings will be sufficient to cover expected decommissioning costs, particularly when combined with future ratepayer collections and contributions to this trust. DESC will continue to monitor this trust to ensure that it meets the NRC minimum financial assurance requirements, which may include, if needed, the use of parent company guarantees, surety bonding or other financial instruments recognized by the NRC.

The estimated cost to DESC to decommission its 66.7% ownership in Summer is reflected in the table below and is primarily based upon site-specific studies completed in 2025. These cost studies are generally completed every four to five years. Santee Cooper is responsible for the remaining decommissioning costs, proportionate with its 33.3% ownership in Summer. The cost estimates assume decommissioning activities will begin shortly after cessation of operations, which will occur when the operating license expires. NRC regulations allow licensees to apply for extension of an operating license in up to 20-year increments. In 2025, the NRC approved DESC’s request for an additional 20 years for its operating license for Unit 1 at Summer, allowing for generation through 2062. The existing regulatory framework in South Carolina provides a rate recovery mechanism for costs incurred on the relicensing process.

The estimated decommissioning costs, funds in trust and current license expiration dates for Summer are shown in the following table:

 

 

 

NRC license
expiration
year

 

Most recent
cost estimate
(2025
dollars)
(1)

 

 

Funds in trusts at
December 31, 2025
(2)

 

(dollars in millions)

 

 

 

 

 

 

 

 

Summer – Unit 1

 

2062

 

$

911

 

 

$

291

 

(1)
The cost estimates shown above reflect reductions for the expected future recovery of certain spent fuel costs based on DESC’s contracts with the DOE for disposal of spent nuclear fuel consistent with the reductions reflected in DESC’s nuclear decommissioning AROs.
(2)
Excludes any funds held in trust by Santee Cooper. In 2025, DESC made contributions of $3 million to its nuclear decommissioning trust funds as collected from customers during the year.

Also see Notes 9, 14 and 23 to the Consolidated Financial Statements for additional information about nuclear decommissioning trust investments, AROs and other aspects of nuclear decommissioning, respectively.

CONTRACTED ENERGY

Contracted Energy includes the operations of Millstone, and associated energy marketing and price risk activities, and Dominion Energy’s nonregulated long-term contracted renewable electric generation fleet. Contracted Energy also includes nonregulated renewable natural gas facilities, including Dominion Energy’s investment in Align RNG. See Investments below for additional information regarding the Align RNG investment.

Contracted Energy’s capital plan for 2026 through 2030 includes spending approximately $2 billion primarily to support its operations at Millstone.

Contracted Energy derives its earnings primarily from Dominion Energy’s nonregulated generation assets, including associated capacity and ancillary services. Variability in earnings provided by Millstone relates to changes in market-based prices received for electricity and capacity as well as the timing, duration and costs of scheduled and unscheduled outages. Approximately half of Millstone’s output is sold under the Millstone 2019 power purchase agreements, which commenced in October 2019. Market-based prices for electricity are largely dependent on commodity prices and the demand for electricity. Capacity prices are dependent upon resource requirements in relation to the supply available (both existing and new) in the forward capacity auctions, which are held approximately three years in advance of the associated delivery year. Dominion Energy manages the electric price volatility of Millstone by hedging a substantial portion of its expected near-term energy sales not subject to the Millstone 2019 power purchase agreements with derivative instruments.

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Dominion Energy’s nonregulated generation fleet includes solar generation facilities in operation or development in five states, including Virginia. The output of these facilities is sold under long-term power purchase agreements with terms generally ranging from 15 to 25 years. Variability in earnings provided by these assets relates to changes in irradiance levels due to changes in weather. See Note 10 to the Consolidated Financial Statements for additional information regarding certain solar projects.

Competition

Contracted Energy’s renewable generation projects are not currently subject to significant competition as the output from these facilities is primarily sold under long-term power purchase agreements with terms generally ranging from 15 to 25 years. However, in the future, such operations may compete with other power generation facilities to serve certain large-scale customers after the power purchase agreements expire. Competition for the nonregulated fleet is impacted by electricity and fuel prices, new market entrants, construction by others of generating assets and transmission capacity, technological advances in power generation, the actions of environmental and other regulatory authorities and other factors. These competitive factors may negatively impact the nonregulated fleet’s ability to profit from the sale of electricity and related products and services.

Millstone is dependent on its ability to operate in a competitive environment and does not have a predetermined rate structure that provides for an ROIC. Millstone operates within a functioning RTO and primarily competes on the basis of price. Competitors include other generating assets bidding to operate within the RTO. Millstone competes in the wholesale market with other generators to sell a variety of products including energy, capacity and ancillary services. It is difficult to compare various types of generation given the wide range of fuels used by generation facilities, fuel procurement strategies, efficiencies and operating characteristics of the fleet within any given RTO. However, Dominion Energy applies its expertise in operations, dispatch and risk management to maximize the degree to which Millstone is competitive compared to similar assets within the region.

Regulation

Contracted Energy’s generation fleet is subject to regulation by the NRC, EPA, DOE, U.S. Army Corps of Engineers and other federal, state and local authorities. See Federal Regulations in Regulation, Future Issues and Other Matters in Item 7. MD&A and Note 23 to the Consolidated Financial Statements for additional information.

Properties

For a listing of facilities, see Item 2. Properties.

Investments

Align RNG—In November 2018, Dominion Energy announced the formation of Align RNG, an equal partnership with Smithfield Foods, Inc. to capture methane from swine farms across various states and convert it into pipeline quality natural gas. At December 31, 2025, substantially all projects were complete. See Note 9 to the Consolidated Financial Statements for additional information about Dominion Energy’s equity method investment in Align RNG.

Leasing Arrangement

In December 2020, Dominion Energy signed an agreement (most recently amended in February 2026) with a lessor to complete construction of and lease a Jones Act compliant offshore wind installation vessel. This vessel is designed to handle current turbine technologies as well as next generation turbines. The lessor provided equity and obtained financing commitments from debt investors, totaling $715 million, which funded project costs. In September 2025, the vessel was delivered and the five-year lease term commenced. See Note 15 to the Consolidated Financial Statements for additional information.

Sources of Energy Supply

Contracted Energy’s renewable fleet utilizes solar energy to power its electric generation while Millstone utilizes nuclear fuel, which is acquired primarily through a series of 5-year contracts, to power its electric generation. In addition, Dominion Energy occasionally purchases electricity from the ISO-NE spot market to satisfy physical forward sale requirements, as described below. Some of these agreements have fixed commitments and are detailed further in Fuel and Other Purchase Commitments in Item 7. MD&A.

Seasonality

Sales of electricity for Contracted Energy are subject to seasonal variation as a result of the weather, partially mitigated by the Millstone 2019 power purchase agreements.

Nuclear Decommissioning

Dominion Energy has two licensed, operating nuclear reactors at Millstone in Connecticut. Dominion Energy intends to seek approval of 20-year license extensions for both Units 2 and 3, which would allow these units to generate electricity through 2055 and 2065, respectively. A third Millstone unit ceased operations before Dominion Energy acquired the power station.

As part of Dominion Energy’s acquisition of Millstone, it acquired decommissioning funds for the related units. Dominion Energy believes that the decommissioning funds and their expected earnings will be sufficient to cover expected decommissioning costs for the Millstone units. Dominion Energy will continue to monitor these trusts to ensure they meet the NRC minimum financial assurance requirements, which may include, if needed, the use of parent company guarantees, surety bonding or other financial instruments recognized by the NRC. The most recent site-specific study completed for Millstone was performed in 2024.

The estimated decommissioning costs, funds in trust and current license expiration dates for Millstone are shown in the following table:

.

 

 

NRC license expiration year

 

Most recent cost estimate (2025 dollars)(1)

 

 

Funds in trusts at December 31, 2025(2)

 

(dollars in millions)

 

 

 

 

 

 

 

 

Millstone

 

 

 

 

 

 

 

 

Unit 1(3)

 

N/A

 

$

915

 

 

$

1,081

 

Unit 2

 

2035

 

 

1,102

 

 

 

1,455

 

Unit 3(4)

 

2045

 

 

1,218

 

 

 

1,475

 

Total

 

 

 

$

3,235

 

 

$

4,011

 

(1)
The cost estimates shown above reflect reductions for the expected future recovery of certain spent fuel costs based on Dominion Energy’s contracts with the DOE for disposal of spent nuclear fuel consistent with the reductions reflected in Dominion Energy’s nuclear decommissioning AROs.

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(2)
Dominion Energy did not make any contributions to its nuclear decommissioning trust funds related to Millstone during 2025.
(3)
Unit 1 permanently ceased operations in 1998, before Dominion Energy’s acquisition of Millstone.
(4)
Millstone Unit 3 is jointly owned by Dominion Energy Nuclear Connecticut, Inc., with a 6.53% undivided interest in Unit 3 owned by Massachusetts Municipal and Green Mountain. Decommissioning cost is shown at Dominion Energy’s ownership percentage. At December 31, 2025, the minority owners held $84 million of trust funds related to Millstone Unit 3 that are not reflected in the table above.

Also see Notes 9, 14 and 23 to the Consolidated Financial Statements for additional information about nuclear decommissioning trust investments, AROs and other aspects of nuclear decommissioning, respectively.

CORPORATE AND OTHER

Corporate and Other Segment-Dominion Energy

Dominion Energy’s Corporate and Other segment includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization. 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. In addition, Corporate and Other includes the net impact of discontinued operations consisting primarily of the operations included in the East Ohio, PSNC and Questar Gas Transactions and a noncontrolling interest in Atlantic Coast Pipeline.

Dominion Energy owns a 50% noncontrolling interest in Dominion Privatization, a partnership with Patriot, which maintains and operates electric and gas distribution infrastructure under service concession arrangements with certain U.S. military installations in Pennsylvania, South Carolina, Texas, Washington D.C. and Virginia.

Dominion Energy owns a 53% noncontrolling interest in Atlantic Coast Pipeline. In July 2020, as a result of the continued permitting delays, growing legal uncertainties and the need to incur significant capital expenditures to maintain project timing before such uncertainties could be resolved, Dominion Energy and Duke Energy announced the cancellation of the Atlantic Coast Pipeline Project.

See Notes 3 and 9 to the Consolidated Financial Statements for additional information.

Corporate and Other Segment-Virginia Power

Virginia Power’s Corporate and Other segment primarily includes certain specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

 

Regulation

The Companies are subject to regulation by various federal, state and local authorities, including the state commissions of Virginia, North Carolina and South Carolina, SEC, FERC, EPA, DOE, PHMSA, NRC, U.S. Army Corps of Engineers, BOEM and U.S. Department of Transportation.

State Regulations

Electric

Virginia Power and DESC’s electric utility retail services are subject to regulation by the Virginia and North Carolina Commissions and the South Carolina Commission, respectively.

Virginia Power and DESC hold CPCNs which authorize them to maintain and operate their electric facilities already in operation and to sell electricity to customers. However, Virginia Power and DESC may not construct generating facilities or large capacity transmission lines without the prior approval of various state and federal government agencies. In addition, the Virginia and North Carolina Commissions and the South Carolina Commission regulate Virginia Power and DESC’s transactions, respectively, with affiliates and transfers of certain facilities. The Virginia and South Carolina Commissions also regulate the issuance of certain securities.

Electric Regulation in Virginia

The Regulation Act provides for a cost-of-service rate model and permits Virginia Power to seek recovery of costs for new generation projects as well as extensions of operating licenses of nuclear power generation facilities, FERC-approved transmission costs, underground distribution lines, certain environmental compliance, conservation, energy efficiency and demand response programs and renewable energy facilities and programs through stand-alone riders, and also contains statutory provisions directing Virginia Power to file annual fuel cost recovery cases with the Virginia Commission. If the Virginia Commission does not allow recovery of costs incurred in providing service on a timely basis, Virginia Power’s future earnings could be negatively impacted.

In April 2020, the VCEA replaced Virginia’s voluntary renewable energy portfolio standard for Virginia Power with a mandatory program setting annual renewable energy portfolio standard requirements based on the percentage of total electric energy sold by Virginia Power, excluding existing nuclear generation and certain new carbon-free resources, reaching 100% by the end of 2045. The VCEA includes related requirements concerning deployment of wind, solar and energy storage resources, as well as provides for certain measures to increase net-metering, including an allocation for low-income customers, incentivizes energy efficiency programs and provides for cost recovery related to participation in a carbon trading program.

In April 2023, legislation was enacted that resets the frequency of base rate reviews from a triennial period, as established under the GTSA, to a biennial period commencing with the 2023 Biennial Review. The legislation provided that the Virginia Commission establish an authorized ROE of 9.70% for Virginia Power in the 2023 Biennial Review, and that in subsequent biennial reviews the Virginia Commission is authorized to utilize any methodology it deems to be consistent with the public interest to make future ROE determinations. In all future biennial reviews, if the Virginia Commission determines that Virginia Power’s existing base rates will, on a going-forward basis, produce revenues that are either in excess of or below its authorized rate of return, the Virginia Commission is authorized to reduce or increase such base rates, as applicable and necessary, to ensure that Virginia Power’s base rates are just and reasonable while still allowing Virginia Power to recover its costs and earn a fair rate of return. In addition, beginning with the 2025 Biennial Review, the Virginia Commission may, at

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its discretion, increase or decrease Virginia Power’s authorized ROE by up to 50 basis points based on factors that may include reliability, generating plant performance, customer service and operating efficiency, with the provisions applying to such adjustments to be determined in a future proceeding.

The legislation directed that, beginning with the 2025 Biennial Review, 85% of any earnings determined by the Virginia Commission to be up to 150 basis points above Virginia Power’s authorized ROE shall be credited to customers’ bills as well as 100% of any earnings that are more than 150 basis points above Virginia Power’s authorized ROE. For the purposes of measuring any bill credits due to customers, associated income taxes are factored into the determination of such amounts. In addition, the legislation eliminated Virginia Power’s ability to utilize Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects as a CCRO to reduce or offset any earnings otherwise eligible for customer credits as previously permitted under the GTSA.

See Note 13 to the Consolidated Financial Statements for additional information.

Electric Regulation in North Carolina

Virginia Power’s retail electric base rates in North Carolina are regulated on a cost-of-service/rate-of-return basis subject to North Carolina statutes and the rules and procedures of the North Carolina Commission. North Carolina base rates are set by a process that allows Virginia Power to recover its operating costs and an ROIC. If retail electric earnings exceed the authorized ROE established by the North Carolina Commission, retail electric rates may be subject to review and possible reduction by the North Carolina Commission, which may decrease Virginia Power’s future earnings. Additionally, if the North Carolina Commission does not allow recovery of costs incurred in providing service on a timely basis, Virginia Power’s future earnings could be negatively impacted. Fuel rates are subject to revision under annual fuel cost adjustment proceedings. A change in law in 2025 provides for recovery of purchased electric capacity expenses as a component of fuel. Other recent North Carolina legislation provides Virginia Power the option to apply for a multi-year rate plan to establish base rates under a performance-based rate plan rather than a general rate case. Under this optional structure, rates would be set for a multi-year period and be subject to revenue decoupling for residential customers, an annual earnings sharing mechanism and performance-based requirements.

Virginia Power’s transmission service rates in North Carolina are regulated by the North Carolina Commission as part of Virginia Power’s bundled retail service to North Carolina customers.

See Note 13 to the Consolidated Financial Statements for additional information.

Electric Regulation in South Carolina

DESC’s retail electric base rates in South Carolina are regulated on a cost-of-service/rate-of-return basis subject to South Carolina statutes and the rules and procedures of the South Carolina Commission. South Carolina base rates are set by a process that allows DESC to recover its operating costs and an ROIC. If retail electric earnings exceed the authorized ROE established by the South Carolina Commission, retail electric rates may be subject to review and possible reduction, which may decrease DESC’s future earnings. Additionally, if the South Carolina Commission does not allow recovery of costs incurred in providing service on a timely basis, DESC’s future earnings could be negatively impacted.

In May 2025, the Governor of South Carolina signed into law the SCESA, which establishes a rate stabilization mechanism whereby an electric utility, including DESC, may elect to request South Carolina Commission approval to adjust its base rates up or down annually when changes in the utility’s investments, revenues and expenses cause its earned ROE to be more than 50 basis points below or above the ROE approved by the South Carolina Commission in the utility’s latest general rate case. Electric utilities electing rate stabilization would be required to file a general rate case every five years. In addition, any new electric generating facility of more than 250 MW, once completed, would be required to undergo a separate prudency review by the South Carolina Commission before any construction or operating costs related to such facility could be included in the rate stabilization process.

Fuel costs are reviewed annually by the South Carolina Commission, as required by statute, and fuel rates are subject to revision in these annual fuel proceedings. DESC also submits annual filings to the South Carolina Commission for rider recovery related to its DSM programs and pension costs. The DSM rider includes recovery of any net lost revenues and for a shared savings incentive.

Pursuant to the SCANA Merger Approval Order, DESC is recovering capital costs and a return on capital cost rate base related to the NND Project over a 20-year period through a capital cost rider. The capital cost rider also provides for the return to retail electric customers of certain amounts associated with the NND Project. Revenue from the capital cost rider component of retail electric rates will continue to decline over the 20-year period as capital cost rate base is reduced.

See Note 13 to the Consolidated Financial Statements for additional information.

Gas

DESC is subject to regulation of rates and other aspects of its natural gas distribution service by the South Carolina Commission. DESC provides retail natural gas service to customers in areas in which it has received authorization from the South Carolina Commission and in municipalities in which it holds a franchise. DESC’s base rates can be adjusted annually, pursuant to the Natural Gas Rate Stabilization Act, for recovery of costs related to natural gas infrastructure. Base rates are set based on the cost-of-service by rate class approved by the South Carolina Commission in the latest general rate case. Base rates for DESC are based primarily on a rate design methodology in which the majority of operating costs are recovered through volumetric charges. DESC also utilizes a weather normalization adjustment to adjust its base rates during the winter billing months for residential and commercial customers to mitigate the effects of unusually cold or warm weather.

DESC’s natural gas tariffs include a purchased gas adjustment that provides for the recovery of prudently incurred gas costs, including transportation costs. DESC is authorized to adjust its purchased gas rates monthly and makes routine filings with the South Carolina Commission to provide notification of changes in these rates. Costs that are under or over recovered are deferred as regulatory assets or liabilities, respectively, and considered in subsequent purchased gas adjustments. The purchased gas adjustment filings cover a prospective twelve-month period. Increases or decreases in purchased gas costs can result in corresponding changes in purchased gas adjustment rates and the

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revenue generated by those rates. The South Carolina Commission reviews DESC’s gas purchasing policies and practices, including its administration of the purchased gas adjustment, annually. DESC has also received approval from the South Carolina Commission to recover gas DSM program costs and a shared savings incentive from residential and commercial natural gas customers under a rider to retail gas rates. The South Carolina Commission approved DESC to recover net lost revenues resulting from the gas DSM programs through its annual Natural Gas Rate Stabilization Act proceeding.

See Note 13 to the Consolidated Financial Statements for additional information.

Federal Regulations

Federal Energy Regulatory Commission

Under the Federal Power Act, FERC regulates wholesale sales and transmission of electricity in interstate commerce by public utilities. Virginia Power purchases and, under its market-based rate authority, sells electricity in the PJM wholesale market and to wholesale purchasers in Virginia and North Carolina. Dominion Energy’s nonregulated generators sell electricity in the PJM, CAISO and ISO-NE wholesale markets, and to wholesale purchasers in the states of Virginia, North Carolina, Ohio, Connecticut, California and South Carolina, under Dominion Energy’s market-based sales tariffs authorized by FERC or pursuant to FERC authority to sell as a qualified facility. DESC may make wholesale sales at market-based rates outside its balancing authority pursuant to its market-based sales tariff authorized by FERC. In addition, DESC has FERC approved tariffs to sell wholesale power at capped rates based on its embedded cost of generation. These cost-based sales tariffs could be used to sell to loads within or outside DESC’s service territory. Any such sales are voluntary. FERC also regulates the issuance of certain securities by DESC.

In April 2024, Virginia Power notified PJM that it was changing its election to satisfy its capacity requirements by returning to PJM’s Reliability Pricing Model capacity market, planning to purchase capacity rather than satisfying this requirement by self-supplying the capacity needed to serve load. This change became effective for the delivery year beginning June 2025. This decision does not affect day-to-day operations.

The Companies are subject to FERC’s Standards of Conduct that govern conduct between transmission function employees of interstate gas and electricity transmission providers and the marketing function employees of their affiliates. The rule defines the scope of transmission and marketing-related functions that are covered by the standards and is designed to prevent transmission providers from giving their affiliates undue preferences.

The Companies are also subject to FERC’s affiliate restrictions that (1) prohibit power sales between nonregulated plants and utility plants without first receiving FERC authorization, (2) require the nonregulated and utility plants to conduct their wholesale power sales operations separately and (3) prohibit utilities from sharing market information with nonregulated plant operating personnel. The rules are designed to prohibit utilities from giving the nonregulated plants a competitive advantage.

EPACT included provisions to create an Electric Reliability Organization, which is required to promulgate mandatory reliability standards governing the operation of the bulk power system in the U.S. FERC has certified NERC as the Electric Reliability Organization and also issued an initial order approving many reliability standards that went into effect in 2007. Entities that violate standards will be subject to fines of up to $1.6 million per day, per violation and can also be assessed non-monetary penalties, depending upon the nature and severity of the violation.

In April 2008, FERC granted an application for Virginia Power’s electric transmission operations to establish a forward-looking formula rate mechanism that updates transmission rates on an annual basis and approved an ROE effective as of January 1, 2008. The formula rate is designed to recover the expected revenue requirement for each calendar year and is updated based on actual costs. The FERC-approved formula method, which is based on projected costs, allows Virginia Power to earn a current return on its growing investment in electric transmission infrastructure.

In October 2011, FERC issued an order approving the settlement of DESC’s formula rate that updates transmission rates on an annual basis, including its ROE. The formula rate is designed to recover the expected revenue requirement for the calendar year and is updated annually based on actual costs. This FERC accepted formula rate enables DESC to earn a return on its investment in electric transmission infrastructure.

In March 2025, FERC affirmed its acceptance of the agreement governing SEEM, which sets forth the framework and rules for establishing and maintaining a voluntary electronic trading platform designed to enhance the existing bilateral market in the Southeast utilizing zero-charge transmission service. That transmission service, in turn, is voluntarily provided by participating transmission service providers, including DESC.

Nuclear Regulatory Commission

All aspects of the operation and maintenance of the Companies’ nuclear power stations are regulated by the NRC. Operating licenses issued by the NRC are subject to revocation, suspension or modification, and the operation of a nuclear unit may be suspended if the NRC determines that the public interest, health or safety so requires.

From time to time, the NRC adopts new requirements for the operation and maintenance of nuclear facilities. In many cases, these new regulations require changes in the design, operation and maintenance of existing nuclear facilities. If the NRC adopts such requirements in the future, it could result in substantial increases in the cost of operating and maintaining the Companies’ nuclear generating units. See Note 23 to the Consolidated Financial Statements for additional information.

The NRC also requires the Companies to decontaminate their nuclear facilities once operations cease. This process is referred to as decommissioning, and the Companies are required by the NRC to be financially prepared. For information on decommissioning trusts, see Dominion Energy Virginia-Nuclear Decommissioning, Dominion Energy South Carolina-Nuclear Decommissioning, and Contracted Energy-Nuclear Decommissioning above and Note 9 to the Consolidated Financial Statements. See Note 23 to the Consolidated Financial Statements for additional information on spent nuclear fuel.

Cyber Regulations

The Companies plan and operate their facilities in compliance with approved government cyber regulatory requirements. The

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Companies’ employees participate on various regulatory committees, track the development and implementation of standards and maintain proper compliance registration with NERC’s regional organizations. The Companies anticipate incurring additional compliance expenditures over the next several years because of the implementation of new cybersecurity programs such as the Transportation Security Administration’s gas sector cybersecurity policies. In addition, NERC continues to develop additional requirements specifically regarding supply chain standards and control centers that impact the bulk electric system. While the Companies expect to incur additional compliance costs in connection with NERC, Transportation Security Administration and other governmental agency regulations, such expenses are not expected to significantly affect results of operations.

Safety Regulations

Dominion Energy is also subject to federal and state pipeline safety laws and regulations which set forth numerous operation, maintenance and inspection and repair regulations designed to ensure the safety and integrity of Dominion Energy’s pipeline and storage infrastructure.

The Companies are subject to a number of federal and state laws and regulations, including Occupational Safety and Health Administration, and comparable state statutes, whose purpose is to protect the health and safety of workers. The Companies have an internal safety, health and security program designed to monitor and enforce compliance with worker safety requirements, which is routinely reviewed and considered for improvement. The Companies believe that they are in material compliance with all applicable laws and regulations related to worker health and safety. Notwithstanding these preventive measures, incidents may occur that are outside of the Companies’ control.

Environmental Regulations

Each of the Companies’ operating segments is subject to substantial laws, regulations and compliance costs with respect to environmental matters. In addition to imposing continuing compliance obligations, these laws and regulations authorize the imposition of significant penalties for noncompliance, including fines, injunctive relief and other sanctions. The cost of complying with applicable environmental laws, regulations and rules is material to the Companies. If compliance expenditures and associated operating costs are not recoverable from customers through regulated rates (in regulated businesses) or market prices (in unregulated businesses), those costs could adversely affect future results of operations and cash flows. The Companies have applied for or obtained the necessary environmental permits for the construction and operation of their facilities. Many of these permits are subject to reissuance and continuing review.

Global Climate Change

The Companies support a federal climate change program that would provide a consistent, economy-wide approach to addressing this issue. Regardless of federal action, the Companies are seeking to reduce their GHG emissions while also balancing meeting the growing needs of their customers. In 2020, Virginia enacted the VCEA which addresses climate change matters such as the reduction of GHG emissions and renewable energy portfolio standards. Dominion Energy’s CEO and executive operational leadership within each operating segment are responsible for compliance with the laws and regulations governing environmental matters, including GHG emissions, and Dominion Energy’s Board of Directors receives periodic updates on these matters. See State Regulations—Electric—Electric Regulation in Virginia above, Environmental Strategy below, Future Environmental Regulations in Future Issues and Other Matters in Item 7. MD&A and Notes 13 and 23 to the Consolidated Financial Statements for additional information on climate change legislation and regulation.

Air

The CAA is a comprehensive program utilizing a broad range of regulatory tools to protect and preserve the nation’s air quality. Regulated emissions include, but are not limited to, carbon, methane, VOC, NOX, other GHGs, mercury, other toxic metals, hydrogen chloride, SO2 and particulate matter. At a minimum, state-established regulatory programs are required to meet applicable requirements of the CAA. However, states may choose to develop regulatory programs that are more restrictive. Many of the Companies’ facilities are subject to the CAA’s permitting and other requirements.

Water

The CWA is a comprehensive program requiring a broad range of regulatory tools including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms. The CWA and analogous state laws impose restrictions and strict controls regarding discharges of effluent into surface waters and require permits to be obtained from the EPA or the analogous state agency for those discharges. Containment berms and similar structures may be required to help prevent accidental releases. The Companies must comply with applicable CWA requirements at their current and former operating facilities. Stormwater related to construction activities is also regulated under the CWA and by state and local stormwater management and erosion and sediment control laws. From time to time, the Companies’ projects and operations may impact tidal and non-tidal wetlands. In these instances, the Companies must obtain authorization from the appropriate federal, state and local agencies prior to impacting wetlands. The authorizing agency may impose significant direct or indirect mitigation costs to compensate for such impacts to wetlands.

Protected Species

The ESA and analogous state laws prohibit activities that can result in harm to specific species of plants and animals, as well as impacts to the habitat on which those species depend. In addition to ESA programs, the Migratory Bird Treaty Act of 1918 and Bald and Golden Eagle Protection Act establish broader prohibitions on harm to protected birds. Many of the Companies’ facilities are subject to requirements of the ESA, Migratory Bird Treaty Act of 1918 and Bald and Golden Eagle Protection Act. The ESA and Bald and Golden Eagle Protection Act require potentially lengthy coordination with the state and federal agencies to ensure potentially affected species are protected. Ultimately, the suite of species protections may restrict company activities to certain times of year, project modifications may be necessary to avoid harm or a permit may be needed for unavoidable taking of the species. The

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authorizing agency may impose mitigation requirements and costs to compensate for harm of a protected species or habitat loss. These requirements and time of year restrictions can result in adverse impacts on project plans and schedules such that the Companies’ businesses may be materially affected.

Other Regulations

Other significant regulations to which the Companies are subject include federal and state laws protecting graves, sacred sites, historic sites and cultural resources, including those of American Indian tribal nations and tribal communities. These can result in compliance and mitigation costs as well as potential adverse effects on project plans and schedules such that the Companies’ businesses may be materially affected.

 

Environmental Strategy

Dominion Energy’s mission is to provide the reliable, affordable, and increasingly clean energy that powers its customers every day. Dominion Energy is working to achieve its commitment of net zero carbon and methane Scope 1 and Scope 2 emissions and material categories of Scope 3 emissions: electricity purchased to power the grid, fossil fuel purchased for its power stations and gas distribution systems and consumption of sales gas by natural gas customers by 2050.

To meet its customers’ needs for reliable, affordable and increasingly clean energy every day and to reach net zero emissions, in the near term Dominion Energy has obtained or plans to seek license extensions for its zero-carbon nuclear facilities and is expanding wind and solar generation as well as energy storage, investing in carbon-beneficial renewable natural gas and using dispatchable natural gas generation facilities to support the integration of wind and solar generation facilities as well as energy storage facilities into the grid and requesting offers for responsibly sourced gas from those suppliers who are committed to net zero. The strategy to meet these objectives consists of three major elements which will reduce GHG emissions:

Increasingly clean energy;
Innovation and energy infrastructure modernization; and
Conservation and energy efficiency.

Dominion Energy’s path to net zero emissions will not be linear. Year-over-year variations in weather, load growth and other economic factors contributing to demand can, and are expected to, cause fluctuations within Dominion Energy’s emissions reduction journey. Over the long term, Dominion Energy’s ability to meet its customers’ needs for reliable, affordable and increasingly clean energy and achieve net zero emissions will require supportive legislative and regulatory policies, advancements in technology and broader investments across the economy. Dominion Energy will pursue solutions, including pilot programs, of technologies such as large-scale battery storage, carbon capture and storage, small modular reactors and hydrogen if and when they become technologically and economically feasible. As these technologies are developed, modern natural gas generation may be necessary to ensure reliable and affordable service to Dominion Energy’s customers.

Dominion Energy seeks to build partnerships and engage with local communities, stakeholders and customers on environmental issues important to them, including considerations such as fair treatment, representative involvement and effective communication. Dominion Energy commits to respectful stakeholder engagement on decisions regarding the siting and operation of energy infrastructure and strives to include all people and communities, regardless of race, color, national origin or income to ensure a variety of views are considered in its public engagement process.

As part of its broader commitment to transparency, Dominion Energy provides disclosures around carbon and methane emissions. Dominion Energy discloses its environmental commitments, policies and initiatives in a Sustainability and Corporate Responsibility Report as well as a Climate Report in addition to other reports included on Dominion Energy’s dedicated Sustainability website.

Increasingly Clean Energy

To achieve its net zero commitment while maintaining reliability, Dominion Energy utilizes an “all-of-the-above” strategy of cleaner, more efficient and lower-emitting methods of generating and delivering energy, while advancing measures to continue reducing emissions from traditional generation and delivery. Diversifying the energy portfolio enables Dominion Energy to provide customers with cleaner options while protecting the power supply from potential disruption.

Over the past two decades, Dominion Energy has transformed and diversified its generation portfolio, building additional resiliency while advancing decarbonization goals. In addition to reducing GHG emissions, Dominion Energy has also achieved measurable reductions of other air pollutants such as NOX, SO2 and mercury and reduced the amount of coal ash generated and the amount of water withdrawn. Dominion Energy achieved GHG and other air pollutant reductions by implementing an integrated approach to environmental stewardship that addresses electric energy production and delivery and energy management. As part of this effort, Dominion Energy has retired several of its fossil fuel electric generating facilities previously powered by coal, oil and gas, with the replacement of this capacity coming from renewable energy sources or lower-carbon natural gas.

Renewable energy is an important component of an “all-of-the-above” strategy designed to meet Dominion Energy’s customers’ needs for safe, reliable and affordable energy. Dominion Energy’s solar assets in operation or under development represent a total potential generating capacity of 7.8 GW, of which 3.2 GW was in operation across five states at December 31, 2025. Dominion Energy has commenced construction of the CVOW Commercial Project, expected to be placed in service by early 2027, along with the CVOW Pilot Project which achieved commercial operation in January 2021. Virginia Power’s energy storage assets in operation or under development represent a total potential storage capacity of 1.0 GW, of which 32 MW was operational at December 31, 2025.

Preservation of Dominion Energy’s existing carbon-free baseload nuclear generation is also an important component of Dominion Energy’s GHG emissions reduction strategy. Dominion Energy has received 20-year license extensions for its nuclear facilities in Virginia and South Carolina and intends to commence the process to extend the operating licenses for two units at Millstone.

Dominion Energy operates renewable natural gas facilities in collaboration with dairy farmers nationwide to capture and convert methane emissions from dairy farms.

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See Operating Segments and Item 2. Properties for additional information.

The IRA, as modified in certain instances by the OBBBA, provides for incentives designed to encourage production of clean energy, reduce carbon emissions and promote domestic manufacturing, including investment and production tax credits for clean energy technology. See Future Issues and Other Matters in Item 7. MD&A for additional information on the IRA and OBBBA.

Innovation and Energy Infrastructure Modernization

One of the pillars of Dominion Energy’s net zero strategy is a focus on innovation as a way to advance technology and sustainability. This includes investing in and building upon previously proven technology, including large-scale battery storage, hydrogen and advanced nuclear technology. Dominion Energy’s capital expenditure plan for 2026 through 2030 includes a focus on upgrading the electric system in Virginia through investments in renewable generation facilities, smart meters, intelligent grid devices and associated control systems, physical and cyber security investments, strategic undergrounding and energy conservation programs. Dominion Energy also plans to upgrade its gas and electric transmission and distribution networks and meet environmental requirements and standards set by various regulatory bodies. These enhancements are aimed at meeting Dominion Energy’s continued goal of providing safe, reliable service while addressing increasing electricity consumption, making Dominion Energy’s system more responsive to its customers’ desire to more efficiently manage their energy consumption and transforming its grid to be more adaptive to renewable generation resources and battery technologies.

See Operating Segments for additional information.

Conservation and Energy Efficiency

Conservation and load management play a significant role in meeting the growing demand for electricity and natural gas, while also helping to reduce the environmental footprint of Dominion Energy’s customers and lower their bills. Dominion Energy offers various efficiency programs designed to reduce energy consumption in Virginia, North Carolina and South Carolina, including programs such as:

Energy audits and assessments;
Incentives for customers to upgrade or install certain energy efficient measures and/or systems;
Weatherization assistance to help income-eligible customers reduce their energy usage;
Home energy planning, which provides homeowners with a step-by-step roadmap to efficiency improvements to reduce gas usage; and
Rebates for installing high-efficiency equipment and qualified electric vehicle chargers.

 

GHG Emissions

Dominion Energy continues to work toward achieving its net zero emissions commitment. Following the sales of its gas distribution operations, exclusive of DESC’s, to Enbridge, Dominion Energy’s inventory of direct Scope 1 carbon and methane emissions is over 99% attributable to electric generation. Through 2024, Dominion Energy has reduced direct Scope 1 CO2 equivalent carbon and methane emissions from electric generation by 46% since 2005. For the purposes of these calculations and consistent with GHG Protocol requirements for reporting GHG emission reductions over time, both the baseline and 2024 emissions data exclude the gas entities sold in 2024 as part of the East Ohio, Questar Gas and PSNC Transactions.

Dominion Energy’s 2025 emissions data is not yet available.

Corporate GHG Inventory

Dominion Energy maintains a comprehensive Corporate GHG Inventory, which follows methodologies specified in the EPA’s Mandatory GHG Reporting Rule, 40 Code of Federal Regulations Part 98 for calculating emissions, as well as approved industry protocols. In its annual Corporate GHG Inventory, Dominion Energy voluntarily includes greenhouse gas emission estimates from smaller sources that are not required to be included under the EPA’s mandatory GHG Reporting Program, including smaller electric generation, natural gas operations and other sources. Dominion Energy’s Corporate GHG Inventory also includes emissions sources it voluntarily reports to various programs in which it participates. As a result, Dominion Energy’s reported GHG emissions in its Corporate GHG Inventory are higher than what is reported to the EPA. Dominion Energy includes emissions data in its Corporate GHG Inventory based on its ownership percentage of the associated assets at the end of the calendar year.

Total direct Scope 1 CO2 equivalent emissions reported under Dominion Energy’s Corporate GHG Inventory were 31.9 million metric tons in 2024. Reported CO2 equivalent emissions include CO2, CH4, N2O and SF6 emissions from Dominion Energy’s electric generation operations, electric transmission and distribution operations, natural gas operations and corporate operations. Dominion Energy’s 2024 emissions data reported under its Corporate GHG Inventory, which excludes the gas entities sold as part of the East Ohio, Questar Gas and PSNC Transactions, are as follows:

For Dominion Energy’s electric generation operations, total CO2 equivalent emissions were 31.7 million metric tons in 2024, including 9.9 million metric tons from DESC and 21.8 million metric tons from Virginia Power.
For Dominion Energy’s electric transmission and distribution operations, direct CO2 equivalent emissions were 0.04 million metric tons.
For Dominion Energy’s natural gas operations, total CO2 equivalent emissions were 0.08 million metric tons.
For Dominion Energy’s corporate operations, which includes renewable natural gas operations and Dominion Privatization assets, in addition to building heat and Dominion Energy’s vehicle and aviation fleets, total CO2 equivalent emissions were 0.06 million metric tons.

 

 

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EPA Mandatory GHG Reporting Program

Dominion Energy has been reporting GHG emissions, including carbon, methane, N2O and SF6, from its natural gas infrastructure, electric generation and power delivery operations to the EPA since 2011 under the EPA mandatory GHG Reporting Program. The EPA’s mandatory GHG Reporting Program requires annual reporting of emissions from assets operated by Dominion Energy based on full equity asset ownership at the end of the calendar year.

Dominion Energy’s 2024 GHG emissions reported under various subparts of the EPA’s Mandatory GHG Reporting Program at December 31, 2024, which excludes the gas entities sold as part of the East Ohio, Questar Gas and PSNC Transactions are as follows:

Natural Gas Operations

Segment

 

Subparts W & C
CH
4 Emissions

 

 

Subparts
W & C
CO
2 Emissions

 

 

Subparts
W & C
N
2O Emissions

 

 

Subparts
W & C as CO
2 
Equivalent Emissions

 

(metric tons)

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

 

 

1,887

 

 

 

65

 

 

 

 

 

 

52,913

 

LNG storage

 

 

41

 

 

 

745

 

 

 

 

 

 

1,894

 

Total(1)

 

 

1,928

 

 

 

810

 

 

 

 

 

 

54,808

 

(1)
Totals may not foot due to rounding.

Electric Generation Operations

Company

 

Subparts C & D
CO
2 Emissions

 

 

Subparts C & D
CH
4 Emissions

 

 

Subparts C & D
N
2O Emissions

 

 

Subparts C & D
CH
4 Emissions as
CO
2 Equivalent
Emissions

 

 

Subparts C & D
N
2O Emissions as
CO
2 Equivalent
Emissions

 

 

Subparts C & D as
CO
2 Equivalent
Emissions

 

(metric tons)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Virginia Power(1)

 

 

21,971,098

 

 

 

1,036

 

 

 

142

 

 

 

29,010

 

 

 

37,518

 

 

 

22,037,626

 

DESC

 

 

9,717,293

 

 

 

650

 

 

 

91

 

 

 

18,203

 

 

 

23,991

 

 

 

9,759,487

 

Total(2)

 

 

31,688,391

 

 

 

1,686

 

 

 

232

 

 

 

47,213

 

 

 

61,509

 

 

 

31,797,113

 

(1)
Virginia Power totals include biomass, which were not included in the Corporate GHG inventory.
(2)
Totals may not foot due to rounding.

Electric Transmission and Distribution Operations

Company

 

Subpart DD
SF
6 Emissions

 

 

Subpart DD
SF
6 as CO2 Equivalent
Emissions

 

(metric tons)

 

 

 

 

 

 

Virginia Power

 

 

4.93

 

 

 

115,855

 

DESC

 

 

0.66

 

 

 

15,510

 

Total(1)

 

 

5.59

 

 

 

131,365

 

(1)
Totals may not foot due to rounding.

Environmental Protection and Monitoring Expenditures

Dominion Energy incurred $324 million, $314 million and $269 million of expenses (including accretion and depreciation) during 2025, 2024 and 2023 respectively, in connection with environmental protection and monitoring activities. Dominion Energy expects these expenses to be approximately $345 million and $340 million in 2026 and 2027, respectively. In addition, capital expenditures related to environmental controls were $169 million, $216 million and $132 million for 2025, 2024 and 2023, respectively. Dominion Energy expects these expenditures to be approximately $140 million and $85 million for 2026 and 2027, respectively.

 

 

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Item 1A. Risk Factors

The Companies’ businesses are influenced by many factors that are difficult to predict, involve risks and uncertainties that may materially affect actual results and are often beyond their control. A number of these risks and uncertainties are identified below. There may be other factors, either not presently known or currently believed not to be material, that may cause actual results to differ materially from those indicated in this report. For additional information concerning any forward-looking statement or projection contained in this report, see Forward-Looking Statements in Item 7. MD&A.

Regulatory, Legislative and Legal Risks

The rates of the Companies’ principal electric transmission, distribution and generation operations and gas distribution operations are subject to regulatory review. Revenue provided by the Companies’ electric transmission, distribution and generation operations and by gas distribution operations is based primarily on rates approved by state and federal regulatory agencies. The profitability of the Companies’ businesses is dependent on their ability, through the rates that they are permitted to charge, to recover costs and earn a reasonable rate of return on their capital investment.

At the federal level, the Companies’ wholesale rates for electric transmission service are regulated by FERC. Rates for electric transmission services are updated annually according to a FERC-approved formula rate mechanism, and may be subject to additional prospective adjustments and retroactive corrections. A failure by the Companies to justify the appropriateness of these rates or a change in FERC policy or the application of FERC policy could result in rate decreases from current rate levels, which could adversely affect the Companies’ results of operations, cash flows and financial condition.

At the state level, Virginia Power’s retail base rates, terms and conditions for generation and distribution services to customers in Virginia are reviewed by the Virginia Commission in a biennial proceeding that involves the determination of Virginia Power’s actual earned ROE during a historic test period, and the determination of Virginia Power’s authorized ROE prospectively. Under certain circumstances described in the Regulation Act, Virginia Power may be required to refund a portion of its earnings to customers through a refund process and to reduce its rates. Virginia Power makes assessments throughout the review period and will record a regulatory liability for refunds to customers in any period such refunds are determined probable, which could negatively impact the Companies’ results of operations in the period recognized and to cash flows on completion of any biennial review.

In states other than Virginia, the Companies’ retail electric base rates for generation and distribution services to customers are regulated on a cost-of-service/rate-of-return basis subject to the statutes, rules and procedures of such states. Dominion Energy’s rates for gas distribution to retail customers are similarly regulated at the state level. If retail electric or gas earnings exceed the returns established by state utility commissions, retail electric rates or gas rates may be subject to review and possible reduction, which may decrease the Companies’ future earnings. Additionally, if any state utility commission does not allow recovery through base rates, on a timely basis, of costs incurred in providing service, the Companies’ financial condition, results of operations and/or cash flows could be negatively impacted.

Under certain circumstances, state utility regulators may impose a moratorium on increases to retail base rates for a specified period of time, which could delay recovery of costs incurred in providing service. Additionally, governmental officials, stakeholders and advocacy groups may challenge any of the regulatory reviews or proceedings referred to above. Such challenges may result in changes to the regulatory framework under which the Companies’ currently operate and/or lengthen the time, complexity and costs associated with such regulatory reviews or proceedings.

The Companies’ generation business may be negatively affected by possible FERC actions that could change market design in the wholesale markets or affect pricing rules or revenue calculations in the RTO markets. The Companies’ generation stations operating in RTO markets sell capacity, energy and ancillary services into wholesale electricity markets regulated by FERC. The wholesale markets allow these generation stations to take advantage of market price opportunities, but also expose them to market risk. Properly functioning competitive wholesale markets depend upon FERC, PJM and/or ISO-NE’s continuation of clearly identified market rules. From time to time, FERC may investigate and/or receive requests from PJM or ISO-NE to authorize changes in market design. FERC also periodically reviews the Companies’ authority to sell at market-based rates. Changes by FERC, PJM or ISO-NE to the design of the wholesale markets or its interpretation of market rules, the Companies’ authority to sell power at market-based rates, or changes to pricing rules or rules involving revenue calculations, could adversely impact the future results of the Companies’ generation business. For example, in April 2024, FERC issued an order that accepted proposed changes to the PJM wholesale capacity market that significantly changed how a generation resource’s capacity value is calculated and decreased the total amount of capacity recognized in the PJM region as eligible to meet reserve requirements. In addition, changes to the interpretation and application of FERC’s market manipulation rules may occur from time to time. A failure to comply with these market manipulation rules could lead to civil and criminal penalties.

The Companies are subject to complex governmental regulation, including tax regulation, that could adversely affect their results of operations and subject the Companies to monetary penalties. The Companies’ operations are subject to extensive federal, state and local laws and regulations and require numerous permits, approvals and certificates from various governmental agencies. Such laws and regulations govern the terms and conditions of the services the Companies offer, relationships with affiliates, protection of critical electric infrastructure assets and mandatory reliability standards and interaction in the wholesale markets, among other matters. The Companies are also subject to legislation and associated regulation governing taxation at the federal, state and local level. They must also comply with environmental legislation and associated regulations. Some such legislation and regulation have not yet been finalized and changes in either interpretation or final laws or regulations could have a negative impact on the Companies. For example, the OBBBA and IRA include various provisions, such as investment and production tax credits and

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corporate alternative minimum tax, that the Companies have considered in recording their provisions for income taxes. The ultimate impact of these tax laws is subject to pending guidance and interpretations that could adversely impact the Companies’ ability to qualify for and maintain tax credits, which could affect the Companies’ results of operations, financial condition and/or cash flows. Management believes that the necessary approvals have been obtained for existing operations and that the Companies’ businesses are conducted in accordance with applicable laws. The Companies’ businesses are subject to regulatory regimes which could result in substantial monetary penalties if either of the Companies is found not to be in compliance. New laws or regulations, the revision or reinterpretation of existing laws or regulations, the imposition of new tariffs or changes to existing tariffs, changes in enforcement practices of regulators or penalties imposed for non-compliance with existing laws or regulations may result in substantial additional expense. Adverse developments in tax laws, credits or other incentives including changes in legislation, administrative interpretations or judicial determinations could result in modifications to business models or otherwise negatively affect the Companies’ financial condition, results of operations and/or cash flows. Recent legislative and regulatory changes that are impacting or could impact the Companies include legislation enacted in Virginia in April 2023, the IRA, the VCEA, the 2017 Tax Reform Act, the OBBBA and tariffs imposed on various components required for construction of the CVOW Commercial Project or imported solar panels by the U.S. government in 2025 and 2018, respectively.

The Companies have been and may continue to be or become subject to legal proceedings and governmental investigations and examinations. The Companies may from time to time be subject to various legal proceedings and governmental investigations and examinations. For example, Dominion Energy, following the SCANA Combination, was subject to numerous federal and state legal proceedings and governmental investigations relating to the decision of SCANA and DESC to abandon construction at the NND Project. Dominion Energy spent substantial amounts of time and money defending these lawsuits and proceedings and on related investigations. In addition, juries have demonstrated a willingness to grant large awards in certain cases, including personal injury claims. Accordingly, actual costs incurred may differ from insured or reserved amounts and may not be recoverable, in whole or in part, by insurance or in rates from customers. The outcome of these or future legal proceedings, investigations and examinations, including settlements, may adversely affect the Companies’ financial condition, results of operation and/or cash flows.

Construction Risks

The construction of the CVOW Commercial Project involves significant risks. The CVOW Commercial Project is a large-scale, complex project. Significant delays or cost increases, or an inability to recover certain project costs, could have an adverse effect on the Companies’ financial condition, cash flows and results of operations. If the Companies are unable to complete the construction of the CVOW Commercial Project or decide in the future to delay or cancel the project, the Companies may not be able to recover all or a portion of their investment in the project and may incur substantial cancellation payments under existing contracts or other substantial costs associated with any such delay or cancellation. The Companies’ ability to complete the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates is subject to various risks and uncertainties, certain of which are beyond the Companies’ control.

The construction of the CVOW Commercial Project is dependent on the Companies’ ability to maintain various local, state and federal permits, rights of way and other regulatory approvals and authorizations, including Virginia Commission approval for rider recovery of project costs. In addition, determination of costs allocated by PJM to the project for network upgrades remains subject to change, even after the CVOW Commercial Project is placed in service, as such amounts are driven by the ultimate costs of development of the transmission lines and related facilities that PJM determines is necessary to support various generation facilities within PJM, including the CVOW Commercial Project. The final determination of such costs is outside the control of the CVOW Commercial Project and may be impacted by events affecting the developers of such transmission lines, including any increases in costs for permitting, inflation, tariffs, supply chain constraints or other factors affecting the ultimate costs to complete such facilities. Also, the CVOW Commercial Project may become the subject of litigation or other forms of intervention by third parties, including stakeholders or advocacy groups, that may seek to challenge permits or other regulatory approvals received, including for routing of onshore electric transmission, which could delay or increase the cost of the project. For example, the estimated total project cost and expected placed in service date for the CVOW Commercial Project were negatively impacted by projected installation timeline changes arising from the temporary suspension of work from the BOEM Director’s Order issued in December 2025 until a preliminary injunction was granted by the U.S District Court for the Eastern District of Virginia in January 2026, which allowed work to resume. Any additional suspension of work orders could result in further changes to the estimated total project cost and/or the timeframe turbines are expected to be placed in service.

The construction of the CVOW Commercial Project is also dependent on the ability of certain key suppliers and contractors to timely satisfy their obligations under contracts entered into or expected to be entered into. Given the unique equipment and expertise required for this project, the Companies may not be able to remedy in a timely and cost-effective manner, if at all, any failure by one or more of these suppliers or contractors to timely satisfy their contractual obligations. Certain of the fixed price contracts for major offshore construction and equipment components are denominated in Euros and Danish kroner. In May 2022, Virginia Power entered into forward purchase agreements with a notional amount of approximately €3.2 billion. Accordingly, to the extent the instruments do not effectively hedge the Companies’ exposure to these currencies, including by default of the counterparty, adverse fluctuations in the applicable exchange rates would likely adversely affect the cost of the CVOW Commercial Project. Similarly, adverse fluctuations in the price of fuel used for transportation and installation, would likely adversely affect the overall costs to construct the project. In

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addition, the cost of the CVOW Commercial Project could be adversely affected by the impact of applicable tariffs, including any potential impact of Section 232 investigations.

The Companies’ ability to recover unforeseen cost increases associated with construction of the CVOW Commercial Project is potentially limited which could negatively impact the Companies’ future financial condition, results of operations and/or cash flows. In accordance with the Virginia Commission’s December 2022 order, the Companies are subject to a cost sharing mechanism in which Virginia Power will be eligible to recover 50% of such incremental costs which fall between $10.3 billion and $11.3 billion with no recovery of such incremental costs which fall between $11.3 billion and $13.7 billion. There is no cost sharing mechanism for any total construction costs in excess of $13.7 billion, the recovery of which would be determined in a future Virginia Commission proceeding. In addition, the order includes enhanced performance reporting provisions for the operation of the CVOW Commercial Project. To the extent the net annual net capacity factor is below 42%, as determined on a three-year rolling average, Virginia Power is required to provide detailed explanation of the factors contributing to any shortfall to the Virginia Commission which could determine in a future proceeding a remedy for incremental costs incurred associated with any deemed unreasonable or imprudent actions of Virginia Power. Any such action by the Virginia Commission could adversely impact the Companies’ future financial condition, results of operations and/or cash flows.

The Companies’ ability to invest the significant financial resources necessary for the CVOW Commercial Project is dependent on the Companies’ access to the financial markets in a timely and cost-effective manner. A decline in the Companies’ credit worthiness, an unfavorable market reputation of either the Companies or their industry or general market disruptions could adversely impact financing costs and increase the overall cost of the project.

In October 2024, Virginia Power completed the sale of a 50% noncontrolling interest to Stonepeak. Virginia Power and Stonepeak will each contribute 50% of the remaining capital necessary to fund construction of the CVOW Commercial Project provided the total project cost, excluding financing costs, is less than $11.3 billion. For capital funding necessary, if any, for total project costs, excluding financing costs, of $11.3 billion through $13.7 billion, Stonepeak will have the option to make additional capital contributions. If Stonepeak elects to make additional capital contributions for project costs, excluding financing costs, in excess of $11.3 billion, if any, Virginia Power shall contribute between 67% and 83% of such capital with Stonepeak contributing the remainder. To the extent that Stonepeak elects not to make such contributions, Virginia Power shall receive an increase in its ownership percentage of OSWP for any contributed capital based on a tiered unit price for membership interests in OSWP as set forth in the agreement. Virginia Power and Stonepeak have the right to provide capital contributions for any total project costs, excluding financing costs, in excess of $13.7 billion. The inability of Stonepeak to satisfy its share of funding requirements in a timely manner could have a negative effect on the Companies. In addition, Stonepeak’s interests and objectives may differ from those of the Companies and, accordingly, disputes may arise that may result in delays, litigation or operational impasses.

The construction of the CVOW Commercial Project involves the use of evolving turbine technology and takes place in a marine environment, which presents unique challenges and requires the use of a specialized workforce and specialized equipment. In addition, the timely installation of the turbines is dependent on the continued availability of a Jones Act compliant vessel currently under a 20-month lease agreement which commenced in September 2025 between Virginia Power and an affiliated entity.

The timeline for construction of the CVOW Commercial Project may also be negatively impacted by severe weather events or marine wildlife, including migration patterns of endangered and protected species, both of which are outside of the control of the Companies and their contractors.

The Companies’ infrastructure build and expansion plans often require regulatory approval, including environmental permits, before commencing construction and completing projects. The Companies may not complete the facility construction, conversion or other infrastructure projects that they commence, or they may complete projects on materially different terms, costs or timing than initially estimated or anticipated, and they may not be able to achieve the intended benefits of any such project, if completed. A number of large- and small-scale projects have been announced, including the CVOW Commercial Project, electric transmission lines, facility expansions or renewed licensing, conversions and other infrastructure developments or construction. Additional projects may be considered in the future, such as those necessary to meet the projected demand growth driven by data centers and artificial intelligence, including to address the concentration of data centers primarily in Loudoun County, Virginia. The Companies compete for projects with companies of varying size and financial capabilities, including some that may have competitive advantages. Commencing construction on announced and future projects may require approvals from applicable state and federal agencies, and such approvals could include mitigation costs. Projects may not be able to be completed on time or in accordance with estimated costs as a result of weather conditions, need for new land and right of ways, delays in obtaining or failure to obtain or maintain regulatory and other, including PJM, approvals, changes in laws or regulations or other regulatory or administrative action or inaction, the outcome of legal proceedings and judicial actions, delays in obtaining key materials, labor difficulties, difficulties with partners or potential partners, concerns raised during stakeholder engagement, a decline in the credit strength of counterparties or vendors, inflation, the impact of applicable tariffs or other factors beyond the Companies’ control. As discussed above, the CVOW Commercial Project experienced a temporary suspension of work which impacted the expected project cost and timeline. In addition, Dominion Energy has been involved with other projects which have experienced certain delays in obtaining and maintaining permits necessary for construction along with construction delays due to judicial actions which impacted the cost and schedule such as the Atlantic Coast Pipeline Project and ultimately led to its cancellation in July 2020. Construction projects necessary to maintain reliability and meet increasing demand may include the construction of dispatchable natural gas generation facilities which may be subject to additional challenges raised by advocacy groups which could adversely impact the timely receipt and maintenance of regulatory

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approvals. Even if facility construction, expansion, electric transmission line, conversion and other infrastructure projects are completed, the total costs of the projects may be higher than anticipated and the performance of the business of the Companies following completion of the projects may not meet expectations. If these infrastructure projects are not completed, are delayed or are subject to unanticipated costs, certain costs may not be approved for recovery or otherwise be recoverable through regulatory mechanisms that may be available. Further, the Companies could become obligated to make delay or termination payments or become obligated for other damages under contracts, could experience the loss or reduction of tax credits or incentives, the inability to transfer related tax credits, or delayed or diminished returns, and could be required to write off all or a portion of their investments in such projects.

Start-up and operational issues can arise in connection with the commencement of commercial operations at the Companies’ facilities. Such issues may include failure to meet specific operating parameters, which may require adjustments to meet or amend these operating parameters. Additionally, the Companies may not be able to timely and effectively integrate the projects into their operations and such integration may result in unforeseen operating difficulties or unanticipated costs. Any delays in the timely completion of necessary PJM interconnection projects for new electric generation facilities under development by Virginia Power, including the CVOW Commercial Project, may result in project delays and/or capacity constraints if, and until, such projects are completed. In addition, any increase in network upgrade costs allocated to any such new Virginia Power generation project, or delay in the completion of such necessary upgrades could, respectively, increase the associated project development costs and/or delay the project’s ability to participate in PJM’s capacity market as a capacity resource. Further, regulators may disallow recovery of some of the costs of a project if they are deemed not to be prudently incurred. Any of these or other factors could adversely affect the Companies’ ability to realize the anticipated benefits from the facility construction, electric transmission line, expansion, conversion and other infrastructure projects.

The development, construction and commissioning of several large-scale infrastructure projects simultaneously involves significant execution risk. To achieve Dominion Energy’s commitment to net zero emissions by 2050 and comply with the requirements of the VCEA and projected demand while maintaining reliability, the Companies are currently simultaneously developing or constructing several electric generation projects, including subsequent license renewal projects at nuclear facilities in Virginia and South Carolina, the CVOW Commercial Project, the Chesterfield Energy Reliability Center, several electric transmission projects and various solar projects. Several of the Companies’ key projects are increasingly large-scale, complex and being constructed in constrained geographic areas or in unfamiliar environments such as the marine environment for the CVOW Commercial Project. The advancement of the Companies’ infrastructure projects is also affected by the interventions, litigation or other activities of stakeholder and advocacy groups, some of which oppose natural gas-related and energy infrastructure projects. For example, certain stakeholder groups oppose solar farms due to the increasing quantities of land tracts required for these facilities. Similarly, certain stakeholder groups oppose new natural gas generation facilities, such as the Chesterfield Energy Reliability Center. Given that these projects provide the foundation for the Companies’ strategic growth plan and are necessary to meet projected demand, if the Companies are unable to obtain or maintain the required regulatory and other, including PJM, approvals, develop the necessary technical expertise, allocate and coordinate sufficient resources, adhere to budgets and timelines, effectively handle public outreach efforts, including its commitment to fair treatment, community involvement and effective communication, or otherwise fail to successfully execute the projects, there could be an adverse impact to the Companies’ financial position, results of operations and cash flows. Failure to comply with regulatory approval conditions or an adverse ruling in any future litigation could adversely affect the Companies’ ability to execute their business plan.

The Companies are dependent on their contractors for the successful and timely completion of large-scale infrastructure projects. The construction of such projects is expected to take several years, is typically confined within a limited geographic area or difficult environments and could be subject to delays, supply chain disruption, availability of critical components, cost overruns, inflation, labor disputes or shortages and other factors that could cause the total cost of the project to exceed the anticipated amount. Any of these events could adversely affect the Companies’ financial condition, results of operations and/or cash flows.

Further, an inability to obtain financing or otherwise provide liquidity for the projects on acceptable terms could negatively affect the Companies’ financial condition, cash flows, the projects’ anticipated financial results and/or impair the Companies’ ability to execute the business plan for the projects as scheduled.

Environmental Risks

Compliance with federal and/or state requirements imposing limitations on GHG emissions or efficiency improvements, as well as Dominion Energy’s commitment to achieve net zero carbon and methane emissions by 2050, may result in significant compliance costs, could result in certain of the Companies’ existing electric generation units being uneconomical to maintain or operate and may depend upon technological advancements which may be beyond the Companies’ control. The VCEA establishes renewable energy and CO2 reduction targets for Virginia Power’s generation fleet and grid operations, including the requirement that 100% of Virginia Power’s electricity come from zero-carbon generation by the end of 2045. The legislation mandates the development of 16.1 GW of solar or onshore wind capacity by the end of 2035, which includes specific requirements for utility-scale solar of 3.0 GW by the end of 2024, up to 15.0 GW by the end of 2035 and 1.1 GW of small-scale solar by the end of 2035. The legislation also deems 5.2 GW of offshore wind capacity before 2035 and 2.7 GW of energy storage by the end of 2035 to be in the public interest. The VCEA and related legislation also authorizes Virginia to participate in a program consistent with RGGI, requiring the purchase of carbon credits to offset emissions from Virginia Power’s generating fleet within the state. In January 2022, the Governor of Virginia issued an executive order which

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put directives in place to start the withdrawal of Virginia from RGGI. In December 2023, the withdrawal took effect. Cost recovery for these initiatives will require approval by the Virginia Commission which may be denied or altered to the detriment of the Companies. For example, the Companies recorded charges in 2022 associated with the Virginia Commission’s approval in June 2022 of Virginia Power’s petition that RGGI compliance costs incurred and unrecovered through July 2022 be recovered through existing base rates in effect during the period incurred. In addition, permitting and other project execution challenges may hinder Virginia Power’s ability to meet the requirements of the VCEA. The Companies could face similar risks if there is further legislation at the federal and/or state level mandating additional limitations on GHG emissions or requiring additional efficiency improvements.

Dominion Energy is working to achieve net zero carbon and methane Scope 1 and Scope 2 emissions and material categories of Scope 3 emissions by 2050. To meet this commitment, the Companies expect to construct new electric generation facilities, including renewable facilities such as wind and solar, and have obtained or plan to seek the extension of operating licenses for the Companies’ nuclear generation facilities. The Companies also need to depend on technological improvements not currently in commercial development. Additionally, actions taken in furtherance of Dominion Energy’s net zero commitment may impact existing generation facilities, including as a result of fuel switching and/or the retirement of high-emitting generation facilities and their potential replacement with lower-emitting generation facilities. Further, the ability to realize this commitment will require the Companies to be able to obtain significant financing. These efforts will require approvals from various regulatory bodies for the siting and construction of such new facilities and a determination by the applicable state commissions that costs related to the construction are prudent. Given these and other uncertainties associated with the implementation of Dominion Energy’s net zero commitment, the Companies cannot estimate the aggregate effect of future actions taken in furtherance of this commitment on their results of operations or financial condition or on their customers. However, such actions could render additional existing generation facilities uneconomical to operate, result in the impairment of assets, or otherwise adversely affect the Companies’ financial condition, results of operations and/or cash flows.

There are also potential negative impacts on Dominion Energy’s natural gas business from its net zero emissions commitment as well as federal or state GHG regulations which may require further GHG emission reductions from the natural gas sector which, in addition to resulting in increased costs, could affect demand for natural gas. Additionally, GHG requirements could result in increased energy conservation and adoption of renewable products, which could impact the natural gas business. Dominion Energy’s renewable natural gas operations could be negatively impacted by factors affecting livestock owned by third-parties, changes in demand for renewable natural gas and/or changes in laws and regulations affecting such facilities.

The Companies’ operations and construction activities are subject to a number of environmental laws and regulations which impose significant compliance costs. The Companies’ operations and construction activities are subject to extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality, waste management, natural resources and health and safety. Compliance with these legal requirements requires the Companies to commit significant capital toward permitting, emission fees, environmental monitoring, installation and operation of environmental control equipment and purchase of allowances and/or offsets. Additionally, the Companies could be responsible for expenses relating to remediation and containment obligations, including at sites where they have been identified by a regulatory agency as a potentially responsible party. Expenditures relating to environmental compliance have been significant in the past, and the Companies expect that they will remain significant in the future. Certain facilities have become uneconomical to operate and have been shut down, converted to new fuel types or sold. These types of events could occur again in the future.

The Companies expect that existing environmental laws and regulations may be revised and/or new laws may be adopted, including regulation of GHG emissions, which could have an adverse impact on the Companies’ business. Risks relating to regulation of GHG emissions from existing fossil fuel-fired electric generating units are discussed in more detail above and below. In addition, further regulation of air quality and GHG emissions under the CAA may be imposed on the natural gas sector. The Companies are also subject to federal water and waste regulations, including regulations concerning cooling water intake structures, coal combustion by-product handling and disposal practices, wastewater discharges from steam electric generating stations, management and disposal of hydraulic fracturing fluids and the potential further regulation of polychlorinated biphenyls.

Compliance costs cannot be estimated with certainty due to the inability to predict the requirements and timing of implementation of any new or changing environmental rules or regulations. Other factors which affect the ability to predict future environmental expenditures with certainty include the difficulty in estimating clean-up costs and quantifying liabilities under environmental laws that impose joint and several liabilities on all responsible parties. However, such expenditures, if significant, could make the Companies’ facilities uneconomical to operate, result in the impairment of assets, or otherwise adversely affect the Companies’ financial condition, results of operations and/or cash flows.

The Companies are subject to risks associated with the disposal and storage of coal ash. The Companies historically produced and continue to produce coal ash, or CCRs, as a by-product of their coal-fired generation operations. The ash is stored and managed in impoundments (ash ponds) and landfills located at 11 different facilities, including eight at Virginia Power.

The EPA has issued regulations concerning the management and storage of CCRs, which Virginia has adopted. These CCR regulations require the Companies to make additional capital expenditures and increase operating and maintenance expenses. In addition, the Companies will incur expenses and other costs associated with closing, corrective action and ongoing monitoring of certain ash ponds and landfills. The EPA’s May 2024 final rule regulates inactive surface impoundments located at the retired generation stations that contained CCR and liquids after 2015, and certain other inactive or previously closed surface impoundments, landfills or other areas that contain accumulations of CCR. The Companies believe that they may have inactive or closed units or areas that could be subject to the final rule at up to

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19 different locations, including 12 at Virginia Power. The Companies also may face litigation concerning their coal ash facilities.

Further, while the Companies believe that they operate their ash ponds and landfills in compliance with applicable state safety regulations, a release of coal ash with a significant environmental impact could result in significant remediation costs, civil and/or criminal penalties, claims, litigation, increased regulation and compliance costs, and reputational damage, and could impact the financial condition of the Companies.

Operational Risks

The Companies’ financial performance and condition can be affected by changes in the weather, including the effects of global climate change. Fluctuations in weather can affect demand for the Companies’ services. For example, milder than normal weather can reduce demand for electricity and gas distribution services. In addition, severe weather or acts of nature, including hurricanes, winter storms, wildfires, earthquakes, floods and other natural disasters can stress systems, disrupt operation of the Companies’ facilities and cause service outages, production delays and property damage that require incurring additional expenses. Changes in weather conditions can result in reduced water levels or changes in water temperatures that could adversely affect operations at some of the Companies’ power stations. In addition, sustained changes in weather patterns could result in decreased output at the Companies’ renewable generation facilities. Furthermore, the Companies’ operations could be adversely affected and their physical plant placed at greater risk of damage should changes in global climate produce, among other possible conditions, unusual variations in temperature and weather patterns, resulting in more intense, frequent and extreme weather events, abnormal levels of precipitation and, for operations located on or near coastlines, a change in sea level or sea temperatures. Due to the location of the Companies’ electric utility service territories and a number of its other facilities in the eastern portions of the states of South Carolina, North Carolina and Virginia which are frequently in the path of hurricanes, the Companies experience the consequences of these weather events to a greater degree than many industry peers.

Hostile cyber intrusions could severely impair the Companies’ operations, lead to the disclosure of confidential information, damage the reputation of the Companies and otherwise have an adverse effect on the Companies’ business. The Companies own assets deemed as critical infrastructure, the operation of which is dependent on information technology systems. Further, the computer systems that run the Companies’ facilities are not completely isolated from external networks. In addition, the Companies’ operations utilize third-party vendors, which may also be subject to cyber security intrusions. There appears to be an increasing level of activity, sophistication and maturity of threat actors, in particular nation state actors, that wish to disrupt the U.S. bulk power system and the U.S. gas transmission or distribution system. Such parties could view the Companies’ computer systems, software or networks as attractive targets for cyber attack. For example, malware has been designed to target software that runs the nation’s critical infrastructure such as power transmission grids and gas pipelines. Emerging technologies, such as advanced forms of automation and artificial intelligence, which are subject to limited government oversight and regulations and evolve rapidly, may result in an increase in the frequency and sophistication of cyber attacks. The Companies’ businesses also require that they and their vendors collect and maintain sensitive customer data, as well as confidential employee and shareholder information, which is subject to electronic theft or loss.

A successful cyber attack through third-party or insider action on the systems that control the Companies’ electric generation, electric transmission, electric distribution or gas distribution assets could severely disrupt business operations, preventing the Companies from serving customers or collecting revenues. The breach of certain business systems could affect the Companies’ ability to correctly record, process and report financial information. A major cyber incident could result in significant expenses to investigate and repair security breaches or system damage and could lead to litigation, fines, other remedial action, heightened regulatory scrutiny and damage to the Companies’ reputation. In addition, the misappropriation, corruption or loss of personally identifiable information and other confidential data at the Companies or one of their vendors could lead to significant breach notification expenses and mitigation expenses such as credit monitoring. If a significant breach were to occur, the reputation of the Companies also could be adversely affected. While the Companies maintain property and casualty insurance, along with other contractual provisions, that may cover certain damage caused by potential cyber incidents, all damage and claims arising from such incidents may not be covered or may exceed the amount of any insurance available. For these reasons, a significant cyber incident could adversely affect the Companies’ business, financial condition, results of operations and/or cash flows.

The Companies’ financial results can be adversely affected by various factors driving supply and demand for electricity and related services. Demand for the Companies’ services can be driven by changing populations within its utility service territories, significant new commercial or industrial customers or other changes in consumer habits. For example, data centers in Virginia Power’s service territory, particularly in Loudoun County, Virginia, have been a source of significant increase in demand which is expected to continue over the next decade. Technological advances may enhance energy efficiency in end-use devices, including lighting, furnaces and electric heat pumps and could lead to declines in per capita energy consumption. Additionally, regulatory and/or legislative bodies could introduce requirements and/or incentives to reduce energy consumption. Consumer demand for the Companies’ services may also be impacted by any price increases, including those driven by factors beyond the Companies’ control such as inflation or increased prices in natural gas. Further, Virginia Power’s business model is premised upon the cost efficiency of the production, transmission and distribution of large-scale centralized utility generation. However, advances in distributed generation technologies, such as solar cells, gas microturbines, battery storage and fuel cells, may make these alternative generation methods competitive with large-scale utility generation, and change how customers acquire or use the Companies’ services. The widescale implementation of alternative generation methods could negatively impact the

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reliability of the Companies’ electric grid and/or result in significant costs to enhance the grid. Virginia Power has an exclusive franchise to serve retail electric customers in Virginia. However, Virginia’s Retail Access Statutes allow certain electric generation customers exceptions to this franchise. As market conditions change, Virginia Power’s customers may further pursue exceptions and Virginia Power’s exclusive franchise may erode.

Increased energy demand or significant accelerated growth in demand due to new data centers, expanded use of artificial intelligence, widespread adoption of electric vehicles or other customer changes could require enhancements to the Companies’ infrastructure. As discussed above, the ability of the Companies to construct new facilities is dependent upon factors outside of their control, including obtaining and maintaining regulatory approvals and environmental and other permits. Any delays in, or inability to complete, construction or integration of new facilities or expand and/or renew existing facilities could have an adverse effect on the Companies’ financial results. In addition, purchased power from PJM or others may be from generation sources which emit more emissions than the Companies’ facilities, which could negatively impact Dominion Energy’s ability to meet its commitment to net zero emissions. Alternatively, reduced energy demand or significantly slowed growth in demand due to customer adoption of energy efficient technology, conservation, distributed generation, regional economic conditions or the impact of additional compliance obligations, unless substantially offset through regulatory cost allocations, could adversely impact the value of the Companies’ business activities.

The Companies’ operations are subject to operational hazards, equipment failures, supply chain disruptions and personnel issues which could negatively affect the Companies. Operation of the Companies’ facilities involves risk, including the risk of potential breakdown or failure of equipment or processes due to aging infrastructure, fuel supply, pipeline integrity or transportation disruptions, accidents, labor disputes or work stoppages by employees, acts of terrorism or sabotage, construction delays or cost overruns, shortages of or delays in obtaining equipment, material and labor, operational restrictions resulting from environmental limitations and governmental policies or interventions, changes to the environment and performance below expected levels. The Companies’ businesses are dependent upon sophisticated information technology systems and network infrastructure, some of which are provided by third-party vendors under service contracts, the failure of which could prevent them from accomplishing critical business functions. Because the Companies’ transmission facilities, pipelines and other facilities are interconnected with those of third parties, the operation of their facilities and pipelines could be adversely affected by unexpected or uncontrollable events occurring on the systems of such third parties.

Operation of the Companies’ facilities below expected capacity levels could result in lost revenues and increased expenses, including higher maintenance costs. Unplanned outages of the Companies’ facilities and extensions of scheduled outages due to mechanical failures or other problems occur from time to time and are an inherent risk of the Companies’ business. Unplanned outages typically increase the Companies’ operation and maintenance expenses and may reduce their revenues as a result of selling less output or may require the Companies to incur significant costs as a result of operating higher cost units or obtaining replacement output from third parties in the open market to satisfy forward energy and capacity or other contractual obligations. Moreover, if the Companies are unable to perform their contractual obligations, penalties or liability for damages could result.

In addition, there are many risks associated with the Companies’ principal operations including nuclear accidents, fires, explosions, uncontrolled release of natural gas and other environmental hazards, pole strikes, electric contact cases, the collision of third party equipment with pipelines and avian and other wildlife impacts. Such incidents could result in loss of human life or injuries among employees, customers or the public in general, environmental pollution, damage or destruction of facilities or business interruptions and associated public or employee safety impacts, loss of revenues, increased liabilities, heightened regulatory scrutiny and reputational risk. Further, the location of electric generation, transmission, substations and distribution facilities or natural gas distribution facilities near populated areas, including residential areas, commercial business centers and industrial sites, could increase the level of damages resulting from these risks.

The Companies conduct certain operations through partnership arrangements involving third-party investors which may limit the Companies’ operational flexibility or result in an adverse impact on its financial results. Certain of the Companies’ operations, including the CVOW Commercial Project and Valley Link, are conducted through entities subject to partnership arrangements under which Dominion Energy or Virginia Power has significant influence but does not control the operations of such entities or in which Dominion Energy or Virginia Power’s control over such entities may be subject to certain rights of third-party investors. Accordingly, while Dominion Energy or Virginia Power may have a certain level of control or influence over these entities, it may not have unilateral, or any, control over the day-to-day operations of these entities or over decisions that may have a material financial impact on the partnership participants, including the Companies. In each case such partnership arrangements operate in accordance with their respective governance documents, and the Companies are dependent upon third parties satisfying their respective obligations, including, as applicable, funding of their required share of capital expenditures. Such third-party investors have their own interests and objectives which may differ from those of the Companies and, accordingly, disputes may arise amongst the owners of such partnership arrangements that may result in delays, litigation or operational impasses.

The Companies may be materially adversely affected by negative publicity or the inability of Dominion Energy to meet its stated commitments. From time to time, political and public sentiment may result in a significant amount of adverse press coverage and other adverse public statements affecting the Companies. Public sentiment may be affected by certain events outside of the Companies’ control, such as outages caused by severe weather events or increases in approved rates to recover higher than anticipated market rates for fuel used in electric generation. Any failure by Dominion Energy to realize its commitments to achieve net zero carbon and methane emissions by 2050, enhance the customer experience or other long-term goals could lead to adverse press coverage and other adverse

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public statements affecting the Companies. The ability to comply with some or all of Dominion Energy’s voluntary commitments may be outside of its control. For example, the ability to reduce emissions while meeting the Companies’ increasing demand growth is expected to be dependent on the technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen and/or other clean energy technologies. Dominion Energy is also dependent on the actions of third parties to meet its commitment regarding Scope 2 and Scope 3 emissions. If downstream customers or upstream suppliers do not sufficiently reduce their GHG emissions, Dominion Energy may not achieve its net zero emissions commitment. In addition, while the Atlantic Coast Pipeline Project was cancelled in July 2020 and the legal proceedings and governmental investigations relating to the abandonment of the NND Project have been resolved, there is a risk that lingering negative publicity may continue. Adverse press coverage and other adverse statements, whether or not driven by political or public sentiment, may also result in investigations by regulators, legislators and law enforcement officials or in legal claims as well as adverse outcomes.

Addressing any adverse publicity, governmental scrutiny or enforcement or other legal proceedings is time consuming and expensive and, regardless of the factual basis for the assertions being made, can have a negative impact on the reputation of the Companies, on the morale and performance of their employees and on their relationships with their respective regulators, customers and commercial counterparties. It may also have a negative impact on the Companies’ ability to take timely advantage of various business and market opportunities. The direct and indirect effects of negative publicity, and the demands of responding to and addressing it, may have an adverse effect on the Companies’ business, financial condition, results of operations and/or cash flows.

Dominion Energy’s nonregulated generation business operates in a challenging market, which could adversely affect its results of operations and future growth. The success of Dominion Energy’s contracted generation business depends upon favorable market conditions including the ability to sell power at prices sufficient to cover its operating costs. Dominion Energy operates in active wholesale markets that expose it to price volatility for electricity and nuclear fuel as well as the credit risk of counterparties. Dominion Energy attempts to manage its price risk by entering into long-term power purchase agreements with customers as well as hedging transactions, including short-term and long-term fixed price sales and purchase contracts. The failure of Dominion Energy to maintain, renew or replace its existing long-term contracts on similar terms or with counterparties with similar credit profiles could result in a loss of revenue and/or decreased earnings and cash flows for Dominion Energy.

In these wholesale markets, the spot market price of electricity for each hour is generally determined by the cost of supplying the next unit of electricity to the market during that hour. In many cases, the next unit of electricity supplied would be provided by generating stations that consume fossil fuels, primarily natural gas. Consequently, the open market wholesale price for electricity generally reflects the cost of natural gas plus the cost to convert the fuel to electricity. Therefore, changes in the price of natural gas generally affect the open market wholesale price of electricity. To the extent Dominion Energy does not enter into long-term power purchase agreements or otherwise effectively hedge its output, these changes in market prices could adversely affect its financial results.

Dominion Energy purchases nuclear fuel primarily under long-term contracts. Dominion Energy is exposed to nuclear fuel cost volatility for the portion of its nuclear fuel obtained through short-term contracts or on the spot market, including as a result of market supply shortages. Nuclear fuel prices can be volatile and the price that can be obtained for power produced may not change at the same rate as nuclear fuel costs, thus adversely impacting Dominion Energy’s financial results. In addition, in the event that any of the contracted generation facilities experience a forced outage, Dominion Energy may not receive the level of revenue it anticipated.

War, acts and threats of terrorism, intentional acts and other significant events could adversely affect the Companies’ operations. The Companies cannot predict the impact that any future terrorist attacks or retaliatory military or other action may have on the energy industry in general or on the Companies’ businesses in particular. Any such future attacks or retaliatory action may adversely affect the Companies’ operations in a variety of ways, including by disrupting the power, fuel and other markets in which the Companies operate or requiring the implementation of additional, more costly security guidelines and measures. The Companies’ infrastructure facilities, including nuclear facilities and projects under construction, could be direct targets or indirect casualties of an act of terror or other physical attack. Any physical compromise of the Companies’ facilities could adversely affect the Companies’ ability to generate, purchase, transmit or distribute electricity, distribute natural gas or otherwise operate their respective facilities in the most efficient manner or at all. For example, in December 2022 electric utilities in North Carolina and Washington experienced physical attacks on substations with the damage causing power outages. In addition, the amount and scope of insurance coverage maintained against losses resulting from any such attack may not be sufficient to cover such losses or otherwise adequately compensate for any business disruptions that could result.

Instability in financial markets as a result of terrorism, war, intentional acts, pandemic, credit crises, recession or other factors could result in a significant decline in the U.S. economy and/or increase the cost or limit the availability of insurance or adversely impact the Companies’ ability to access capital on acceptable terms, or at all.

Failure to attract and retain key executive officers and an appropriately qualified workforce could have an adverse effect on the Companies’ operations. The Companies’ business strategy is dependent on their ability to recruit, retain and motivate employees. The Companies’ key executive officers include the CEO, CFO and presidents and those responsible for financial, operational, legal, regulatory, accounting, tax, information technology and cybersecurity functions. Competition for skilled management employees in these areas of the Companies’ business operations is high. Certain events, such as an aging workforce, mismatch of skill set, or unavailability of contract resources may lead to operating challenges and increased costs. The challenges include lack of resources, loss of knowledge base and the length of time required for skill development. In this case, costs, including costs for contractors to replace employees,

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productivity costs and safety costs, may rise. Failure to hire and adequately train replacement employees, including the transfer of significant internal historical knowledge and expertise to new employees, or future availability and cost of contract labor may adversely affect the ability to manage and operate the Companies’ business. In addition, certain specialized knowledge is required of the Companies’ technical employees for construction and operation of transmission, generation and distribution assets. An inability to attract and retain these employees could adversely affect the Companies’ business and future operating results.

Nuclear Generation Risks

The Companies have substantial ownership interests in and operate nuclear generating units; as a result, each may incur substantial costs and liabilities. The Companies’ nuclear facilities are subject to operational, environmental, health and financial risks such as the on-site storage of spent nuclear fuel, the ability to dispose of such spent nuclear fuel, the ability to maintain adequate reserves for decommissioning, limitations on the amounts and types of insurance available, potential operational liabilities and extended outages, the costs of replacement power, the costs of maintenance and the costs of securing the facilities against possible terrorist attacks. The Companies maintain decommissioning trusts and external insurance coverage to minimize the financial exposure to these risks; however, it is possible that future decommissioning costs could exceed amounts in the decommissioning trusts and/or damages could exceed the amount of insurance coverage. If the Companies’ decommissioning trust funds are insufficient, and they are not allowed to recover the additional costs incurred through insurance or regulatory mechanisms, their results of operations could be negatively impacted.

The Companies’ nuclear facilities are also subject to complex government regulation which could negatively impact their financial condition, results of operations and/or cash flows. The NRC has broad authority under federal law to impose licensing and safety-related requirements for the operation of nuclear generating facilities. In the event of noncompliance, the NRC has the authority to impose fines, set license conditions, shut down a nuclear unit, or take some combination of these actions, depending on its assessment of the severity of the situation, until compliance is achieved. Revised safety requirements promulgated by the NRC could require the Companies to make substantial expenditures at their nuclear plants. In addition, although the Companies have no reason to anticipate a serious nuclear incident at their plants, if an incident did occur, it could materially and adversely affect their results of operations and/or financial condition. A major incident at a nuclear facility anywhere in the world, such as the nuclear events in Japan in 2011, could cause the NRC to adopt increased safety regulations or otherwise limit or restrict the operation or licensing of domestic nuclear units.

Financial, Economic and Market Risks

Changing rating agency requirements could negatively affect the Companies’ growth and business strategy. In order to maintain appropriate credit ratings to obtain needed credit at a reasonable cost in light of existing or future rating agency requirements, the Companies may find it necessary to take steps or change their business plans in ways that may adversely affect their growth and earnings. A reduction in the Companies’ credit ratings, including due to a change in rating methodologies, could result in an increase in borrowing costs, loss of access to certain markets, or both, thus adversely affecting operating results and could require the Companies to post additional collateral in connection with some of its price risk management activities.

An inability to access financial markets and, in the case of Dominion Energy, obtain cash from subsidiaries could adversely affect the execution of the Companies’ business plans. The Companies rely on access to short-term money markets and longer-term capital markets as significant sources of funding and liquidity for business plans with increasing capital expenditure needs, normal working capital and collateral requirements related to hedges of future sales and purchases of energy-related commodities. Deterioration in the Companies’ creditworthiness, as evaluated by credit rating agencies or otherwise, or declines in market reputation either for the Companies or their industry in general, or general financial market disruptions outside of the Companies’ control could increase their cost of borrowing or restrict their ability to access one or more financial markets. Market disruptions could stem from general market disruption due to general credit market or political events, the reform or replacement of benchmark rates, the failure of financial institutions on which the Companies rely or the bankruptcy of an unrelated company. Increased costs and restrictions on the Companies’ ability to access financial markets, including as a result of compliance with certain provisions of the OBBBA, may be severe enough to affect their ability to execute their business plans as scheduled.

Dominion Energy is a holding company that conducts all of its operations through its subsidiaries. Accordingly, Dominion Energy’s ability to execute its business plan is further subject to the earnings and cash flows of its subsidiaries and the ability of its subsidiaries to pay dividends or advance or repay funds to it, which may, from time to time, be subject to certain contractual restrictions or restrictions imposed by regulators.

Market performance, interest rates and other changes may decrease the value of the Companies’ decommissioning trust funds and Dominion Energy’s benefit plan assets or increase Dominion Energy’s liabilities, which could then require significant additional funding. The performance of the capital markets affects the value of the assets that are held in trusts to satisfy future obligations to decommission the Companies’ nuclear plants and under Dominion Energy’s pension and other postretirement benefit plans. The Companies have significant obligations in these areas and hold significant assets in these trusts. These assets are subject to market fluctuation and will yield uncertain returns, which may fall below expected return rates.

With respect to decommissioning trust funds, a decline in the market value of these assets may increase the funding requirements of the obligations to decommission the Companies’ nuclear plants or require additional NRC-approved funding assurance.

A decline in the market value of the assets held in trusts to satisfy future obligations under Dominion Energy’s pension and other postretirement benefit plans may increase the funding requirements under such plans. Additionally, changes in interest rates will affect the liabilities under Dominion Energy’s pension

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and other postretirement benefit plans; as interest rates decrease, the liabilities increase, potentially requiring additional funding. Further, changes in demographics, including increased numbers of retirements or changes in mortality assumptions, may also increase the funding requirements of the obligations related to the pension and other postretirement benefit plans.

If the decommissioning trust funds and benefit plan assets are negatively impacted by market fluctuations or other factors, the Companies’ financial condition, results of operations and/or cash flows could be negatively affected.

The use of derivative instruments could result in financial losses and liquidity constraints. The Companies use derivative instruments, including futures, swaps, forwards, options and FTRs, to manage commodity, interest rate and/or foreign currency exchange rate risks. The failure of a counterparty to over-the-counter derivative instruments to perform may prevent the Companies from being able to mitigate such risks. In addition, derivative instruments may require posting cash for margin requirements.

The CEA requires certain over-the-counter derivatives, or swaps, to be cleared through a derivatives clearing organization and, if the swap is subject to a clearing requirement, to be executed on a designated contract market or swap execution facility. Non-financial entities that use swaps to hedge or mitigate commercial risk, often referred to as end users, may elect the end-user exception to the CEA’s clearing requirements. The Companies have elected to exempt their swaps from the CEA’s clearing requirements. If, as a result of changes to the rulemaking process, the Companies’ derivative activities are not exempted from the clearing, exchange trading or margin requirements, the Companies could be subject to higher costs due to decreased market liquidity or increased margin payments.

Future impairments of goodwill or other intangible assets or long-lived assets may have a material adverse effect on the Companies’ results of operations. Goodwill is evaluated for impairment annually or more frequently if an event or circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Other intangible assets and long-lived assets are evaluated for impairment on an annual basis or more frequently whenever events or circumstances indicate that an asset’s carrying value may not be recoverable. If Dominion Energy’s goodwill or the Companies’ other intangible assets or long-lived assets are in the future determined to be impaired, the applicable registrant would be required during the period in which the impairment is determined to record a noncash charge to earnings that may have a material adverse effect on its results of operations. For example, in 2022, Dominion Energy determined that its nonregulated solar generation assets within Contracted Energy were impaired. In addition, Dominion Energy recorded an aggregate $309 million after-tax charge in the fourth quarter of 2023 and first quarter of 2024 for the impairment of certain goodwill associated with the Questar Gas Transaction.

Exposure to counterparty performance may adversely affect the Companies’ financial results of operations. The Companies are exposed to credit risks of their counterparties and the risk that one or more counterparties may fail or delay the performance of their contractual obligations, including but not limited to payment for services. Some of Dominion Energy’s operations are conducted through partnership arrangements, as noted above. Counterparties could fail or delay the performance of their contractual obligations for a number of reasons, including the effect of regulations on their operations. Defaults or failure to perform by customers, suppliers, contractors, joint venture partners, financial institutions or other third parties may adversely affect the Companies’ financial condition, results of operations and/or cash flows.

Public health crises and epidemics or pandemics could adversely affect the Companies’ business, results of operations, financial condition, liquidity and/or cash flows. The effects of an outbreak of a pandemic, such as COVID-19, and related government responses could include extended disruptions to supply chains and capital markets, reduced labor availability and productivity and a prolonged reduction in economic activity. The effects could also have a variety of adverse impacts on the Companies, including reduced demand for energy, particularly from commercial and industrial customers, impairment of goodwill or long-lived assets and diminished ability of the Companies to access funds from financial institutions and capital markets. Certain measures or restrictions taken to control a pandemic or similar event, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns, may cause operational interruptions and delays in construction projects. In addition, legislative or government action, such as legislation enacted in Virginia in November 2020, may limit the Companies’ ability to collect overdue accounts or disconnect services for non-payment, which may cause a decrease in the Companies’ results of operations and cash flows.

 

Item 1B. Unresolved Staff Comments

None.

 

 

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Item 1C. Cybersecurity

Risk Management And Strategy

In an effort to reduce the likelihood and severity of cyber intrusions, the Companies have a comprehensive cybersecurity program designed to protect and preserve the confidentiality, integrity and availability of data and systems. Consideration of cybersecurity risks is a key component of the Companies’ overall risk management and integrated into processes such as evaluation of potential new vendors or suppliers. The Companies are subject to mandatory cybersecurity regulatory requirements, interface regularly with a wide range of external organizations and participate in classified briefings to maintain an awareness of current cybersecurity threats and vulnerabilities.

The Companies’ corporate intelligence and security program includes both cybersecurity and threat intelligence components as part of its evaluation and mitigation of risks. The evaluation of risks includes consideration of cybersecurity and privacy risk, including potential impact on the Companies’ employees, customers, supply chain and other stakeholders, intelligence briefings on notable cyber events impacting the industry and evaluation of insider threats. The Companies utilize a robust set of internal and third-party assessment tools to test its cyber risk management policies, practices and procedures as well as challenge assumptions upon which its defenses are built. These assessments provide opportunities for self-critical analysis and constructive feedback needed to build cyber resilience. Trainings are routinely provided to employees to help identify, avoid and mitigate cybersecurity threats and to ensure an understanding of the Companies’ cyber risk management policies. In addition, risk assessments are conducted as a component of the evaluation of vendors and suppliers.

The Companies’ current security posture and regulatory compliance efforts are intended to address the evolving and changing cyber threats. During the past three years, the Companies have not experienced any cybersecurity incidents resulting in a material impact to their business strategy, results of operations or financial condition. The Companies have identified the risk that a hostile cyber intrusion could severely impair the Companies’ operations, lead to disclosure of confidential information, damage the Companies’ reputation or otherwise have an adverse effect on the Companies’ business as disclosed under the Operational Risks header within Item 1A. Risk Factors.

Governance

Dominion Energy’s Board of Directors, including its operations committee, provides oversight of the Companies’ risks from cybersecurity threats. Dominion Energy’s Board of Directors as well as its operations committee receive presentations and reports throughout the year on cybersecurity and information security risk from management, including Dominion Energy’s chief security officer, vice president of cybersecurity (CISO) and chief information officer. These presentations and reports address a broad range of topics, including the Companies’ cyber risk management program, updates on recent cybersecurity threats and incidents across the industry, policies and practices, industry trends, threat environment and vulnerability assessments and specific and ongoing efforts to prevent, detect and respond to internal and external critical threats, including management’s hosting in 2025 of its fourth annual practical exercise with external federal, state and local incident response partners. In addition, Dominion Energy’s Board of Directors receives briefings from time to time from outside experts for an independent view on cybersecurity risks, including assessments by independent consulting firms and legal counsel of the Companies’ readiness and resilience.

The Companies utilize an organization structure known as a converged security model that brings together cybersecurity, physical security and threat intelligence within one department led by the chief security officer. The chief security officer joined Dominion Energy in this role in 2018 and has an extensive background in security having retired from the Federal Bureau of Investigation after a more than 20-year career focused on criminal, counter-terrorism, counter-intelligence and cyber investigations. The chief security officer belongs to the Federal Bureau of Investigation’s Domestic Security Alliance Council, the Department of Homeland Security’s Classified Intelligence Forum and is a member of the national Government/Business Executive Forum. In addition to serving on multiple university advisory boards, the chief security officer also serves on the Commonwealth of Virginia’s Informational Technology Advisory Council.

The vice president of cybersecurity (CISO) has over 30 years of experience at Dominion Energy primarily in various roles within the information technology department, including information technology risk management, as well as cybersecurity. The vice president of cybersecurity (CISO) has been involved in designing and evolving the Companies’ cyber risk management policies, practices and procedures. This individual has deep relationships with key external partners and is recognized within the industry and the U.S. as a leading cybersecurity expert.

In addition, management of cybersecurity threats is shared with the chief information officer who is responsible for the Companies’ technology assets including hardware, software, networks, servers and telecommunications. The chief information officer has over 25 years of experience at Dominion Energy primarily in various roles within the information technology department, including information technology risk management. In addition, the chief information officer previously served on the board of the Virginia Cybersecurity Partnership, a collaboration between private industry and the Federal Bureau of Investigation.

The chief security officer, vice president of cybersecurity (CISO) and chief information officer are supported by the senior vice president of administrative services as well as the Companies’ operations, compliance, legal, audit, corporate risk, supply chain, human resources and accounting departments in executing its cybersecurity program. In addition, the chief security officer and chief information officer provide periodic updates concerning recent developments affecting cybersecurity and privacy risk to the Companies’ executive cyber risk council, which includes executive officers responsible for administrative services, corporate affairs, supply chain, corporate secretary and corporate risk along with legal counsel. 

35


 

 

 

The Companies maintain a robust, tested and regularly revised Cyber Security Incident Response Plan and a Vendor Compromise Response Plan. These plans detail roles, responsibilities and actions to be taken in response to a detected event whether internal or associated with a third-party service provider. The plans provide clear direction for escalation of information to leadership, including Dominion Energy’s Board of Directors as appropriate, and drive collaboration amongst relevant members of management representing cybersecurity, information technology, operations, supply chain, legal and accounting departments. As necessary, the chief administrative and projects officer, CFO and chief legal officer will advise the CEO on any incidents which could potentially have a material effect on the Companies’ business operations, results of operations or financial condition.

 

ITEM 2. PROPERTIES

Dominion Energy owns five corporate offices in Richmond, Virginia and other cities in which its subsidiaries operate. Dominion Energy also leases corporate offices in Richmond, Virginia and other cities in which its subsidiaries operate, including its principal executive office in Richmond, Virginia. Virginia Power shares Dominion Energy’s principal executive office in Richmond, Virginia. In addition, Virginia Power leases certain buildings and equipment.

Dominion Energy’s assets consist primarily of its investments in its subsidiaries, the principal properties of which are described below by operating segment.

Certain of Virginia Power’s properties are subject to the lien of the Indenture of Mortgage securing its First and Refunding Mortgage Bonds. There were no bonds outstanding at December 31, 2025; however, by leaving the indenture open, Virginia Power retains the flexibility to issue mortgage bonds in the future. Additionally, DESC’s bond indenture, which secures its first mortgage bonds, constitutes a direct mortgage lien on substantially all of its electric utility property.

 

Dominion Energy Virginia

Virginia Power has approximately 7,000 miles of electric transmission lines of 69 kV or more located in Virginia, North Carolina and West Virginia. Portions of Virginia Power’s electric transmission lines cross national parks and forests under permits entitling the federal government to use, at specified charges, any surplus capacity that may exist in these lines. While Virginia Power owns and maintains its electric transmission facilities, they are a part of PJM, which coordinates the planning, operation, emergency assistance and exchange of capacity and energy for such facilities.

In addition, Virginia Power’s electric distribution network includes approximately 61,000 miles of distribution lines, exclusive of service level lines, in Virginia and North Carolina. The grants for most of its electric lines contain rights-of-way that have been obtained from the apparent owners of real estate, but underlying titles have not been examined. Where rights-of-way have not been obtained, they could be acquired from private owners by condemnation, if necessary. Many electric lines are on publicly-owned property, where permission to operate can be revoked. In addition, Virginia Power owns 486 substations.

The following tables list Virginia Power’s generating units and capability at December 31, 2025.

36


 

 

 

Virginia Power Utility Generation

 

Plant

 

Location

 

Net Summer
Capability (MW)

 

Percentage Net
Summer Capability

 

Gas

 

 

 

 

 

 

 

Greensville County (CC)

 

 Greensville County, VA

 

1,605

 

 

 

Brunswick County (CC)

 

 Brunswick County, VA

 

1,376

 

 

 

Warren County (CC)

 

 Warren County, VA

 

1,349

 

 

 

Ladysmith (CT)

 

 Ladysmith, VA

 

782

 

 

 

Bear Garden (CC)

 

 Buckingham County, VA

 

622

 

 

 

Remington (CT)

 

 Remington, VA

 

619

 

 

 

Possum Point (CC)

 

 Dumfries, VA

 

571

 

 

 

Chesterfield (CC)

 

 Chester, VA

 

386

 

 

 

Elizabeth River (CT)

 

 Chesapeake, VA

 

327

 

 

 

Gordonsville Energy (CC)

 

 Gordonsville, VA

 

218

 

 

 

Gravel Neck (CT)

 

 Surry, VA

 

170

 

 

 

Darbytown (CT)

 

 Richmond, VA

 

168

 

 

 

Total Gas

 

 

 

8,193

 

42

%

Nuclear

 

 

 

 

 

 

 

Surry

 

 Surry, VA

 

1,676

 

 

 

North Anna

 

 Mineral, VA

 

1,672

(1)

 

 

Total Nuclear

 

 

 

3,348

 

17

 

Coal

 

 

 

 

 

 

 

Mt. Storm

 

 Mt. Storm, WV

 

1,614

 

 

 

Virginia City Hybrid Energy Center

 

 Wise County, VA

 

610

 

 

 

Clover

 

 Clover, VA

 

439

(2)

 

 

Total Coal

 

 

 

2,663

 

13

 

Hydro

 

 

 

 

 

 

 

Bath County

 

Warm Springs, VA

 

1,758

(3)

 

 

Gaston

 

Roanoke Rapids, NC

 

220

 

 

 

Roanoke Rapids

 

Roanoke Rapids, NC

 

95

 

 

 

Other

 

 

 

1

 

 

 

Total Hydro

 

 

 

2,074

 

11

 

Oil

 

 

 

 

 

 

 

Gravel Neck (CT)

 

Surry, VA

 

198

 

 

 

Darbytown (CT)

 

Richmond, VA

 

168

 

 

 

Rosemary (CC)

 

Roanoke Rapids, NC

 

155

 

 

 

Possum Point (CT)

 

Dumfries, VA

 

72

 

 

 

Low Moor (CT)

 

Covington, VA

 

48

 

 

 

Northern Neck (CT)

 

Lively, VA

 

47

 

 

 

Chesapeake (CT)

 

Chesapeake, VA

 

39

 

 

 

Total Oil

 

 

 

727

 

4

 

Solar(4)

 

 

 

 

 

 

 

Colonial Trail West

 

Surry County, VA

 

142

 

 

 

Bookers Mill

 

Farnham, VA

 

127

 

 

 

Sadler Solar

 

Emporia, VA

 

100

 

 

 

Spring Grove

 

Surry County, VA

 

98

 

 

 

Fountain Creek

 

Greensville, VA

 

80

 

 

 

Piney Creek

 

Halifax, VA

 

80

 

 

 

Otter Creek

 

Mecklenburg County, VA

 

60

 

 

 

Sycamore

 

Gretna, VA

 

42

 

 

 

Camellia

 

Gloucester County, VA

 

20

 

 

 

Grassfield

 

Chesapeake, VA

 

20

 

 

 

Norge

 

Williamsburg, VA

 

20

 

 

 

North Ridge

 

Powhatan, VA

 

20

 

 

 

Solidago

 

Windsor, VA

 

20

 

 

 

Whitehouse Solar

 

Louisa County, VA

 

20

 

 

 

Winterberry

 

Gloucester County, VA

 

20

 

 

 

Woodland Solar

 

Isle of Wight County, VA

 

19

 

 

 

Quillwort

 

Powhatan, VA

 

18

 

 

 

Sebera

 

Prince George, VA

 

18

 

 

 

Scott Solar

 

Powhatan, VA

 

17

 

 

 

Total Solar

 

 

 

941

 

4

 

 

37


 

 

 

 

Plant

 

Location

 

Net Summer
Capability (MW)

 

Percentage Net
Summer Capability

 

Biomass

 

 

 

 

 

 

 

Altavista

 

Altavista, VA

 

51

 

 

 

Polyester

 

Hopewell, VA

 

51

 

 

 

Southampton

 

Southampton, VA

 

51

 

 

 

Total Biomass

 

 

 

153

 

1

 

Battery

 

 

 

 

 

 

 

Dry Bridge

 

Chesterfield, VA

 

20

 

 

 

Scott Battery

 

Powhatan, VA

 

12

 

 

 

Total Battery

 

 

 

32

 

 

Wind

 

 

 

 

 

 

 

CVOW Pilot Project

 

Virginia Beach, VA

 

12

 

 

Various

 

 

 

 

 

 

 

Mt. Storm (CT)

 

Mt. Storm, WV

 

11

 

 

Total Excluding Power Purchase Agreements

 

 

 

18,154

 

 

 

Power Purchase Agreements

 

 

 

1,560

 

8

 

Total Utility Generation

 

 

 

19,714

 

100

%

Note: (CT) denotes combustion turbine and (CC) denotes combined cycle.

(1)
Excludes 11.6% undivided interest owned by ODEC.
(2)
Excludes 50% undivided interest owned by ODEC.
(3)
Excludes 23.75% undivided interest owned by LS Power Equity Advisors LLC and 16.25% undivided interest owned by Allegheny Generating Company, a subsidiary of FirstEnergy.
(4)
All solar facilities are alternating current.

Virginia Power Non-Jurisdictional Generation

 

Plant

 

Location

 

Net Summer
Capability (MW)

 

Solar(1)

 

 

 

 

 

Ft. Powhatan

 

 Disputanta, VA

 

 

150

 

Maplewood

 

 Chatham, VA

 

 

120

 

Belcher

 

 Louisa, VA

 

 

88

 

Gutenberg

 

 Garysburg, NC

 

 

80

 

Grasshopper

 

 Chase City, VA

 

 

80

 

Pecan

 

 Pleasant Hill, NC

 

 

75

 

Chestnut

 

 Halifax County, NC

 

 

75

 

Bedford(2)

 

 Chesapeake, VA

 

 

70

 

Pumpkinseed(2)

 

 Emporia, VA

 

 

60

 

Gloucester

 

 Gloucester County, VA

 

 

20

 

Montross

 

 Westmoreland County, VA

 

 

20

 

Morgans Corner

 

 Pasquotank County, NC

 

 

20

 

Remington

 

 Fauquier County, VA

 

 

20

 

Rochambeau

 

 James City County, VA

 

 

20

 

Oceana

 

 Virginia Beach, VA

 

 

18

 

Hollyfield

 

 Manquin, VA

 

 

17

 

Puller

 

 Topping, VA

 

 

15

 

Total Non-Jurisdictional Generation

 

 

 

 

948

 

(1)
All solar facilities are alternating current.
(2)
Virginia Power in October 2025 proposed to recover the cost of this facility through Rider CE. If approved by the Virginia Commission, this facility will be considered Utility Generation.

38


 

 

 

Dominion Energy South Carolina

DESC has approximately 3,800 miles and 19,400 miles of electric transmission and distribution lines, respectively, exclusive of service level lines, in South Carolina. The grants for most of DESC’s electric lines contain rights-of-way that have been obtained from the apparent owners of real estate, but underlying property titles have not been examined. Where rights-of-way have not been obtained, they could be acquired from private owners by condemnation, if necessary. Many electric lines are on publicly-owned property, where permission to operate can be revoked. In addition, DESC owns 454 substations.

DESC’s natural gas system includes approximately 20,000 miles of distribution mains and related service facilities, which are supported by approximately 400 miles of transmission pipeline.

DESC owns two LNG facilities, one located near Charleston, South Carolina, and the other in Salley, South Carolina. The Charleston facility can store the liquefied equivalent of approximately 1.0 bcf of natural gas, can regasify approximately 6% of its storage capacity per day and can liquefy less than 1% of its storage capacity per day. The Salley facility can store the liquefied equivalent of approximately 0.9 bcf of natural gas and can regasify approximately 10% of its storage capacity per day. The Salley facility has no liquefying capabilities.

The following table lists DESC’s generating units and capability at December 31, 2025.

 

Plant

 

Location

 

Net Summer
Capability (MW)

 

Percentage
Net Summer
Capability

 

Gas

 

 

 

 

 

 

 

Jasper (CC) (1)

 

 Hardeeville, SC

 

902

 

 

 

Columbia Energy Center (CC) (1)

 

 Gaston, SC

 

522

 

 

 

Urquhart (CC) (1)

 

 Beech Island, SC

 

458

 

 

 

McMeekin

 

 Irmo, SC

 

250

 

 

 

Hagood (CT) (1)

 

 Charleston, SC

 

118

 

 

 

Urquhart Unit 3

 

 Beech Island, SC

 

95

 

 

 

Urquhart (CT) (1)

 

 Beech Island, SC

 

87

 

 

 

Parr (CT) (1)

 

 Jenkinsville, SC

 

84

 

 

 

Bushy Park (CT) (1)

 

 Goose Creek, SC

 

42

 

 

 

Total Gas

 

 

 

2,558

 

37

%

Coal

 

 

 

 

 

 

 

Wateree

 

 Eastover, SC

 

684

 

 

 

Williams

 

 Goose Creek, SC

 

595

 

 

 

Cope (2)

 

 Cope, SC

 

415

 

 

 

Total Coal

 

 

 

1,694

 

25

 

Hydro

 

 

 

 

 

 

 

Fairfield

 

 Jenkinsville, SC

 

576

 

 

 

Saluda

 

 Irmo, SC

 

190

 

 

 

Other

 

 Various

 

18

 

 

 

Total Hydro

 

 

 

784

 

12

 

Nuclear

 

 

 

 

 

 

 

Summer

 

 Jenkinsville, SC

 

644

(3)

9

 

Total Excluding Power Purchase Agreements

 

 

 

5,680

 

 

 

Power Purchase Agreements

 

 

 

1,187

(4)

17

 

Total Utility Generation

 

 

 

6,867

 

100

%

Note: (CT) denotes combustion turbine and (CC) denotes combined cycle.

(1)
Capable of burning fuel oil as a secondary source.
(2)
Capable of burning natural gas as a secondary source.
(3)
Excludes 33.3% undivided interest owned by Santee Cooper.
(4)
Includes 189 MW from agreements with certain solar facilities within Contracted Energy.

39


 

 

 

Contracted Energy

The following table lists Contracted Energy’s generating units and capability at December 31, 2025.

 

Plant

 

Location

 

Net Summer
Capability (MW)

 

 

Percentage
Net Summer
Capability

 

 

Nuclear

 

 

 

 

 

 

 

 

 

Millstone

 

 Waterford, CT

 

 

2,013

 

(1)

 

 

 

Total Nuclear

 

 

 

 

2,013

 

 

 

61

 

%

Solar(2)

 

 

 

 

 

 

 

 

 

Atlanta Farms

 

Pickaway County, OH

 

 

200

 

 

 

 

 

Hardin I

 

Hardin County, OH

 

 

150

 

 

 

 

 

Amazon Solar Farm Virginia – Southampton

 

Newsoms, VA

 

 

100

 

 

 

 

 

Foxhound Solar

 

Clover, VA

 

 

83

 

 

 

 

 

Amazon Solar Farm Virginia – Accomack

 

Oak Hall, VA

 

 

80

 

 

 

 

 

Greensville

 

Greensville County, VA

 

 

80

 

 

 

 

 

Innovative Solar 37

 

Morven, NC

 

 

79

 

 

 

 

 

Wilkinson

 

Pantego, NC

 

 

74

 

 

 

 

 

Seabrook

 

Beaufort County, SC

 

 

73

 

 

 

 

 

Moffett Solar 1

 

Ridgeland, SC

 

 

71

 

 

 

 

 

Summit Farms Solar

 

Moyock, NC

 

 

60

 

 

 

 

 

Midway II

 

Calipatria, CA

 

 

30

 

 

 

 

 

Amazon Solar Farm Virginia – Buckingham

 

Cumberland, VA

 

 

20

 

 

 

 

 

Amazon Solar Farm Virginia – Correctional

 

Barhamsville, VA

 

 

20

 

 

 

 

 

Hecate Cherrydale

 

Cape Charles, VA

 

 

20

 

 

 

 

 

Amazon Solar Farm Virginia – Sussex Drive

 

Stoney Creek, VA

 

 

20

 

 

 

 

 

Amazon Solar Farm Virginia – Scott II

 

Powhatan, VA

 

 

20

 

 

 

 

 

Myrtle

 

Suffolk, VA

 

 

15

 

 

 

 

 

Trask

 

Beaufort County, SC

 

 

12

 

 

 

 

 

Hecate Energy Clarke County

 

White Post, VA

 

 

10

 

 

 

 

 

Ridgeland Solar Farm I

 

Ridgeland, SC

 

 

10

 

 

 

 

 

Yemassee

 

Hampton County, SC

 

 

10

 

 

 

 

 

Blackville

 

Blackville, SC

 

 

7

 

 

 

 

 

Denmark

 

Denmark, SC

 

 

6

 

 

 

 

 

Other

 

Various

 

 

35

 

 

 

 

 

Total Solar

 

 

 

 

1,285

 

 

 

39

 

 

Total Nonregulated Generation

 

 

 

 

3,298

 

 

 

100

 

%

(1)
Excludes 6.53% undivided interest in Unit 3 owned by Massachusetts Municipal and Green Mountain.
(2)
All solar facilities are alternating current.

 

Additionally, Dominion Energy’s renewable natural gas facilities include 21 facilities in Colorado, Georgia, Idaho, Kansas, New Mexico, Nevada and Texas, which capture methane from dairy farms and convert it into pipeline quality natural gas. These facilities produce approximately 5,500 MMBtu per day. 

Corporate And Other

Dominion Energy owns various solar facilities, primarily at schools in Virginia, with an aggregate generation capacity of 33 MW.

40


 

 

 

From time to time, the Companies are parties to various legal, environmental or other regulatory proceedings, including in the ordinary course of business. SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Companies reasonably believe will exceed a specified threshold. Pursuant to the SEC regulations, the Companies use a threshold of $1 million for such proceedings. See Notes 13 and 23 to the Consolidated Financial Statements, which information is incorporated herein by reference, for discussion of certain legal, environmental and other regulatory proceedings to which the Companies are a party.

 

Item 4. Mine Safety Disclosures

Not applicable.

 

Information about our Executive Officers

Information concerning the executive officers of Dominion Energy, each of whom is elected annually, is as follows:

 

Name and Age

 

Business Experience Past Five Years(1)

Robert M. Blue (58)

 

Chair of the Board of Directors from April 2021 to present; President and CEO from October 2020 to present; Director from November 2020 to present.

 

 

 

Edward H. Baine (52)

 

Executive Vice President—Utility Operations and President—Dominion Energy Virginia from July 2025 to present; President—Utility Operations and Dominion Energy Virginia from January 2025 to June 2025; President—Dominion Energy Virginia from October 2020 to December 2024.

 

 

 

Carlos M. Brown (51)

 

Executive Vice President, Chief Administrative and Projects Officer, and Corporate Secretary and President—DES from June 2025 to present; President—DES and Executive Vice President, Chief Legal Officer and Corporate Secretary from January 2024 to May 2025; Senior Vice President, Chief Legal Officer and General Counsel from September 2022 to December 2023; Senior Vice President, General Counsel and Chief Compliance Officer from December 2019 to August 2022.

 

 

 

Eric S. Carr (52)

 

Chief Nuclear Officer and President—Nuclear Operations and Contracted Energy from January 2025 to present; President—Nuclear Operations and Chief Nuclear Officer from July 2023 to December 2024; President—Nuclear Operations during June 2023; President and Chief Nuclear Officer for PSEG Nuclear, LLC, a subsidiary of Public Service Enterprise Group, Incorporated, from July 2019 to May 2023.

 

 

 

Regina J. Elbert (45)

 

Senior Vice President and Chief Legal and Human Resources Officer from June 2025 to present; Senior Vice President and Chief Human Resources Officer from January 2024 to May 2025; Senior Vice President—Human Resources from April 2022 to December 2023; Vice President—Human Resources Business Services from March 2019 to March 2022.

 

 

 

W. Keller Kissam (59)

 

President—Dominion Energy South Carolina from January 2022 to present; President—Electric Operations of DESC from January 2019 to December 2021.

 

 

 

Gary G. Ratliff (47)

 

 

 

Vice President, Controller and CAO from October 2025 to present; Vice President—Accounting from April 2025 to September 2025; Controller—Corporate Research & Reporting from February 2024 to March 2025; Director—Accounting from September 2015 to January 2024.

 

 

 

Steven D. Ridge (45)

 

Executive Vice President and CFO from January 2024 to present; Senior Vice President and CFO from November 2022 to December 2023; President of Questar Gas from October 2022 to November 2022; Vice President and General Manager—Western Distribution from October 2021 to September 2022; Vice President—Investor Relations of DES from April 2019 to September 2021.

 

 

 

(1)
All positions held at Dominion Energy, unless otherwise noted. Any service listed for Virginia Power, DESC, Questar Gas and DES reflects service at a subsidiary of Dominion Energy.

41


Part II

 

 

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Dominion Energy

Dominion Energy’s common stock is listed on the NYSE under the ticker symbol D. At February 16, 2026, there were approximately 106,000 record holders of Dominion Energy’s common stock. The number of record holders is comprised of individual shareholder accounts maintained on Dominion Energy’s transfer agent records and includes accounts with shares held in (1) certificate form, (2) book-entry in the Direct Registration System and (3) book-entry under Dominion Energy Direct®. Discussions of expected dividend payments required by this Item are contained in Liquidity and Capital Resources in Item 7. MD&A.

Purchases of Equity Securities

 

 

Period

 

Total Number of Shares (or Units) Purchased (1)

 

 

Average Price Paid per Share (or Unit)(2)

 

 

Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs

 

 

Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased under the Plans or Programs(3)

10/1/25-10/31/25

 

 

68,646

 

 

$

60.90

 

 

 

 

 

$ 0.92 billion

11/1/25-11/30/25

 

 

412

 

 

 

58.69

 

 

 

 

 

0.92 billion

12/1/25-12/31/25

 

 

2,516

 

 

 

60.80

 

 

 

 

 

0.92 billion

Total

 

 

71,574

 

 

$

60.88

 

 

 

 

 

$ 0.92 billion

 

(1)
Represents shares of common stock that were tendered by employees to satisfy tax withholding obligations on vested restricted stock.
(2)
Represents the weighted-average price paid per share.
(3)
In November 2020, the Dominion Energy Board of Directors authorized the repurchase of up to $1.0 billion of shares of common stock. This repurchase program has no expiration date or price or volume targets and may be modified, suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors. At December 31, 2025, approximately $920 million remained available under the program.

Virginia Power

There is no established public trading market for Virginia Power’s common stock, all of which is owned by Dominion Energy. Virginia Power may pay cash dividends in 2026 but is neither required to nor restricted, except as described in Note 21 to the Consolidated Financial Statements, from making such payments.

ITEM 6. [RESERVED]

42


 

 

 

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

MD&A discusses Dominion Energy’s results of operations, general financial condition and liquidity and Virginia Power’s results of operations. MD&A should be read in conjunction with Item 1. Business and the Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data. Virginia Power meets the conditions to file under the reduced disclosure format, and therefore has omitted certain sections of MD&A.

 

Contents of MD&A

MD&A consists of the following information:

Forward-Looking Statements—Dominion Energy and Virginia Power
Accounting Matters—Dominion Energy
Results of Operations—Dominion Energy and Virginia Power
Segment Results of Operations—Dominion Energy
Outlook—Dominion Energy
Liquidity and Capital Resources—Dominion Energy
Future Issues and Other Matters—Dominion Energy

 

Forward-Looking Statements

This report contains statements concerning the Companies’ expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In most cases, the reader can identify these forward-looking statements by such words as “path”, “anticipate”, “believe”, “forecast”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “outlook”, “predict”, “project”, “should”, “strategy”, “continue”, “target”, “will”, “potential” or other similar words.

The Companies make forward-looking statements with full knowledge that risks and uncertainties exist that may cause actual results to differ materially from predicted results. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additionally, other factors may cause actual results to differ materially from those indicated in any forward-looking statement. These factors include but are not limited to:

Unusual weather conditions and their effect on energy sales to customers and energy commodity prices;
Extreme weather events and other natural disasters, including, but not limited to, hurricanes, high winds, severe storms, earthquakes, flooding, wildfires, climate changes and changes in water temperatures and availability that can cause outages and property damage to facilities;
The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in the Companies’ markets and global supply chains;
Federal, state and local legislative and regulatory developments;
Changes in or interpretations of federal and state tax laws and regulations, including those related to tax credits or other incentives;
Risks of operating businesses in regulated industries that are subject to changing regulatory structures;
Changes to regulated electric rates collected by the Companies and regulated gas distribution rates collected by Dominion Energy;
Changes in rules for RTOs and ISOs in which the Companies join and/or participate, including changes in rate designs, changes in FERC’s interpretation of market rules and new and evolving capacity models;
Risks associated with Virginia Power’s membership and participation in PJM, including risks related to obligations created by the default of other participants;
Risks associated with entities in which the Companies share ownership with third parties, such as Stonepeak’s noncontrolling interest in the CVOW Commercial Project, including risks that result from lack of sole decision-making authority, disputes that may arise between the Companies and third-party participants and difficulties in exiting these arrangements;
Timing and receipt of regulatory approvals necessary for planned construction or growth projects and compliance with conditions associated with such regulatory approvals;
The inability to complete planned construction, conversion or growth projects at all, or with the outcomes or within the terms and time frames initially anticipated, including as a result of increased public involvement, intervention or litigation in such projects;
Risks and uncertainties that may impact the Companies’ ability to construct the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers;
Risks and uncertainties associated with the timely receipt of future capital contributions, including optional capital contributions, if any, from Stonepeak associated with the construction of the CVOW Commercial Project;
Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances;
Cost of environmental strategy and compliance, including those costs related to climate change;
Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities;
Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals;
Unplanned outages at facilities in which the Companies have an ownership interest;
The impact of operational hazards, including adverse developments with respect to plant safety or integrity,

43


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

equipment loss, malfunction or failure, operator error and other catastrophic events;
Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities;
Changes in operating, maintenance and construction costs;
The availability of nuclear fuel, natural gas, purchased power or other materials utilized by the Companies to provide electric generation, transmission and distribution and/or gas distribution services to their customers;
Domestic terrorism and other threats to the Companies’ physical and intangible assets, as well as cybersecurity threats or incidents;
Additional competition in industries in which the Companies operate, including in electric markets in which Dominion Energy’s nonregulated generation facilities operate and potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies, and availability of market alternatives to large commercial and industrial customers;
Competition in the development, construction and ownership of certain electric transmission facilities in the Companies’ service territory in connection with Order 1000;
Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies;
Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods;
Risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers primarily in Loudoun County, Virginia and the ability to obtain regulatory approvals, environmental and other permits to construct new facilities in a timely manner;
The technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen and/or other clean energy technologies;
Receipt of approvals for, and timing of, closing dates for acquisitions and divestitures;
Impacts of acquisitions, divestitures, transfers of assets to joint ventures and retirements of assets based on asset portfolio reviews;
Adverse outcomes in litigation matters or regulatory proceedings;
Counterparty credit and performance risk;
Fluctuations in the value of investments held in nuclear decommissioning trusts by the Companies and in benefit plan trusts by Dominion Energy;
Fluctuations in energy-related commodity prices and the effect these could have on Dominion Energy’s earnings and the Companies’ liquidity position and the underlying value of their assets;
Fluctuations in interest rates;
Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital;
Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms;
Political and economic conditions, including tariffs, inflation and deflation;
Employee workforce factors including collective bargaining agreements and labor negotiations with union employees; and
Changes in financial or regulatory accounting principles or policies imposed by governing bodies.

Additionally, other risks that may cause actual results to differ materially from predicted results are set forth in Part I. Item 1A. Risk Factors.

The Companies’ forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Companies caution the reader not to place undue reliance on their forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. The Companies undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

 

Accounting Matters

Critical Accounting Policies and Estimates

Dominion Energy has identified the following accounting policies, including certain inherent estimates, that as a result of the judgments, uncertainties, uniqueness and complexities of the underlying accounting standards and operations involved, could result in material changes to its financial condition or results of operations under different conditions or using different assumptions. Dominion Energy has discussed the development, selection and disclosure of each of these policies with the Audit Committee of its Board of Directors.

Accounting for Regulated Operations

The accounting for Dominion Energy’s regulated electric and gas operations differs from the accounting for nonregulated operations in that Dominion Energy is required to reflect the effect of rate regulation in its Consolidated Financial Statements. For regulated businesses subject to federal or state cost-of-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by nonregulated companies. When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds or other benefits through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. In addition, a loss is recognized if it becomes probable that capital expenditures will be disallowed for ratemaking purposes and if a reasonable estimate of the amount of the disallowance can be made.

In 2025, Dominion Energy recorded a net $258 million ($192 million after-tax) of charges for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW

44


 

 

 

Commercial Project as a result of a revised total project cost estimate of approximately $11.5 billion (excluding financing costs) which reflects a temporary suspension of work order and an estimated impact of certain tariffs which became effective during 2025 as well as the previously included revised estimate of network upgrade costs assigned by PJM to the CVOW Commercial Project and cost sharing mechanism included in the Virginia Commission’s December 2022 order. The expected total project cost reflects an increase of $0.2 billion, relative to Virginia Power’s October 2025 Rider OSW filing, associated with projected installation timeline changes arising from the temporary suspension of work from the BOEM Director’s Order issued in December 2025 until a preliminary injunction was granted by the U.S District Court for the Eastern District of Virginia in January 2026, which allowed work to resume. The estimated total project costs also include $0.6 billion of tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries and on equipment expected to be delivered from March 2025 through early 2027 that contains steel. Such amount is inclusive of approximately $0.2 billion associated with tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries that were the subject of a U.S. Supreme Court’s ruling on February 20, 2026. Dominion Energy is currently unable to estimate the expected impact of the ruling issued by the U.S. Supreme Court on February 20, 2026, on its financial position, results of operations and/or cash flows.

In the fourth quarter of 2024, Dominion Energy recorded a net $103 million ($77 million after-tax) charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project as a result of a revised total project cost estimate that included a revised estimate of network upgrade costs assigned by PJM to the CVOW Commercial Project and cost sharing mechanism included in the Virginia Commission’s December 2022 order. The expected total project cost reflects increases driven primarily by projections for onshore electrical interconnection costs and network upgrade costs assigned to the project by PJM, specifically incorporating consideration of PJM’s December 2024 publication of potential transmission network upgrades required for certain generation projects and related cost allocations, including those attributable to the CVOW Commercial Project. Relative to Virginia Power’s November 2024 Rider OSW filing, the estimated total project cost reflects an approximately $0.6 billion increase for such onshore and network upgrade costs and an approximately $0.3 billion increase for increased contingency for remaining construction activities, completion of the removal of unexploded ordnance, undersea cable protection system design enhancements, commodity prices for transportation fuel, updates for sea fastener fabrication and installation and other construction and equipment supplier costs.

The estimated total project cost reflects Dominion Energy’s best estimate of the remaining construction costs, including contingency of approximately 7% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond Dominion Energy’s control, including but not limited to actual network upgrade costs allocated by PJM, fuel for transportation and installation, the impact of applicable tariffs including any potential impact of Section 232 investigations and litigation ruled on by the U.S. Supreme Court on February 20, 2026, costs to maintain necessary permits, approvals and authorizations, any additional suspension of work orders, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife and/or any severe weather events. Any additional increase in such costs in excess of the contingency included in the estimated total project cost would be subject to the cost sharing mechanisms described above and could have a material impact on Dominion Energy’s future financial condition, results of operations and/or cash flows. See Note 10 to the Consolidated Financial Statements for additional information.

Dominion Energy evaluates whether or not recovery of its regulatory assets through future rates is probable as well as whether a regulatory liability due to customers is probable and makes various assumptions in its analyses. These analyses are generally based on:

Orders issued by regulatory commissions, legislation and judicial actions;
Past experience;
Discussions with applicable regulatory authorities and legal counsel;
Estimated construction costs;
Forecasted earnings; and
Considerations around the likelihood of impacts from events such as unusual weather conditions, extreme weather events and other natural disasters and unplanned outages of facilities.

If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made. A regulatory liability, if considered probable, will be recorded in the period such assessment is made or reversed into earnings if no longer probable. In connection with the future 2027 Biennial Review, Dominion Energy concluded that it was not probable that Virginia Power would have earnings in excess of an expected authorized ROE of 9.80% for the period January 1, 2025 through December 31, 2026. As a result, no regulatory liability for Virginia Power ratepayer credits to customers has been recorded at December 31, 2025. See Note 13 to the Consolidated Financial Statements for additional information.

Asset Retirement Obligations

Dominion Energy recognizes liabilities for the expected cost of retiring tangible long-lived assets for which a legal obligation exists and the ARO can be reasonably estimated. These AROs are recognized at fair value as incurred or when sufficient information becomes available to determine fair value and are generally capitalized as part of the cost of the related long-lived assets. In the absence of quoted market prices, Dominion Energy estimates the fair value of its AROs using present value techniques, in which it makes various assumptions including estimates of the amounts and timing of future cash flows associated with retirement activities, credit-adjusted risk free rates and cost escalation rates. The impact on measurements of new AROs or remeasurements of existing AROs, using different cost escalation or credit-adjusted risk free rates in the future, may be significant. When Dominion Energy revises any assumptions used to calculate the fair value of existing AROs, it adjusts the carrying amount of both the ARO liability and the related long-lived asset for assets that are in service; for assets that have ceased or are expected to cease operations, Dominion Energy adjusts the carrying amount of the ARO liability with such changes either recognized in income or as a regulatory asset.

45


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

Dominion Energy’s AROs include a significant balance related to the future decommissioning of its nonregulated and utility nuclear facilities. At both December 31, 2025 and 2024, Dominion Energy’s nuclear decommissioning AROs totaled $2.6 billion. The following discusses critical assumptions inherent in determining the fair value of AROs associated with Dominion Energy’s nuclear decommissioning obligations.

Dominion Energy obtains from third-party specialists periodic site-specific base year cost studies in order to estimate the nature, cost and timing of planned decommissioning activities for its nuclear plants. These cost studies are based on relevant information available at the time they are performed; however, estimates of future cash flows for extended periods of time are by nature highly uncertain and may vary significantly from actual results. These cash flows include estimates on timing of decommissioning, which for regulated nuclear units factors in the probability of NRC approval for license extensions. In addition, Dominion Energy’s cost estimates include cost escalation rates that are applied to the base year costs. Dominion Energy determines cost escalation rates, which represent projected cost increases over time due to both general inflation and increases in the cost of specific decommissioning activities, for each nuclear facility. The selection of these cost escalation rates is dependent on subjective factors which are considered to be critical assumptions. At December 31, 2025, a 0.25% increase in cost escalation rates would have resulted in an approximate $339 million increase in Dominion Energy’s nuclear decommissioning AROs.

At December 31, 2025 and 2024, Dominion Energy’s AROs also include $889 million and $828 million, respectively, for future CCR remediation at retired generating stations and other inactive or previously closed surface impoundments, landfills or other areas in connection with the EPA’s May 2024 rule as described in Note 14. Dominion Energy developed cost estimates related to this CCR remediation, which were based on the estimated quantity of CCRs that would be discovered, if any, at locations which are subject to the regulation. The determination of how much CCR, if any, that exists at an individual location is a critical assumption in the development of the Companies’ AROs. The results of the searches of internally and externally available information regarding the existence and quantity of CCR at specific locations, as well as physical searches for CCR, may cause actual results to vary significantly from expectations.

Income Taxes

Judgment and the use of estimates are required in developing the provision for income taxes and reporting of tax-related assets and liabilities. The interpretation of tax laws and associated regulations involves uncertainty since tax authorities may interpret the laws differently. Ultimate resolution or clarification of income tax matters may result in favorable or unfavorable impacts to net income and cash flows, and adjustments to tax-related assets and liabilities could be material.

Given the uncertainty and judgment involved in the determination and filing of income taxes, there are standards for recognition and measurement in financial statements of positions taken or expected to be taken by an entity in its income tax returns. Positions taken by an entity in its income tax returns that are recognized in the financial statements must satisfy a more-likely-than-not recognition threshold, assuming that the position will be examined by tax authorities with full knowledge of all relevant information. At December 31, 2025 and 2024, Dominion Energy had $132 million and $170 million, respectively, of unrecognized tax benefits. Changes in these unrecognized tax benefits may result from remeasurement of amounts expected to be realized, settlements with tax authorities and expiration of statutes of limitations.

Deferred income tax assets and liabilities are recorded representing future effects on income taxes for temporary differences between the bases of assets and liabilities for financial reporting and tax purposes. Dominion Energy evaluates quarterly the probability of realizing deferred tax assets by considering current and historical financial results, expectations for future taxable income and the availability of tax planning strategies that can be implemented, if necessary, to realize deferred tax assets. Failure to achieve forecasted taxable income or successfully implement tax planning strategies may affect the realization of deferred tax assets. In addition, changes in tax laws or tax rates may require reconsideration of the realizability of existing deferred tax assets. Dominion Energy establishes a valuation allowance when it is more-likely-than-not that all or a portion of a deferred tax asset will not be realized. At December 31, 2025 and 2024, Dominion Energy had established $143 million and $113 million, respectively, of valuation allowances.

Accounting for Derivative Contracts and Financial Instruments at Fair Value

Dominion Energy uses derivative contracts such as physical and financial forwards, futures, swaps, options and FTRs to manage commodity, interest rate and/or foreign currency exchange rate risks of its business operations. Derivative contracts, with certain exceptions, are reported in the Consolidated Balance Sheets at fair value. The majority of investments held in Dominion Energy’s nuclear decommissioning and rabbi trusts and pension and other postretirement funds are also subject to fair value accounting. See Notes 6 and 22 to the Consolidated Financial Statements for additional information on these fair value measurements.

Fair value is based on actively-quoted market prices, if available. In the absence of actively-quoted market prices, management seeks indicative price information from external sources, including broker quotes and industry publications. When evaluating pricing information provided by brokers and other pricing services, Dominion Energy considers whether the broker is willing and able to trade at the quoted price, if the broker quotes are based on an active market or an inactive market and the extent to which brokers are utilizing a particular model if pricing is not readily available. If pricing information from external sources is not available, or if Dominion Energy believes that observable pricing information is not indicative of fair value, judgment is required to develop the estimates of fair value. In those cases, Dominion Energy must estimate prices based on available historical and near-term future price information and use of statistical methods, including regression analysis, that reflect its market assumptions.

Dominion Energy maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. See Note 6 to the Consolidated Financial Statements for quantitative information on unobservable inputs utilized in Dominion Energy’s fair value measurements of certain derivative contracts.

46


 

 

 

Use of Estimates in Goodwill Impairment Testing

In April of each year, Dominion Energy tests its goodwill for potential impairment, and performs additional tests more frequently if an event occurs or circumstances change in the interim that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. The 2025, 2024 and 2023 annual test did not result in the recognition of any goodwill impairment.

In general, Dominion Energy estimates the fair value of its reporting units by using a combination of discounted cash flows and other valuation techniques that use multiples of earnings for peer group companies and analyses of recent business combinations involving peer group companies. Fair value estimates are dependent on subjective factors such as Dominion Energy’s estimate of future cash flows, the selection of appropriate discount and growth rates and the selection of peer group companies and recent transactions. These underlying assumptions and estimates are made as of a point in time; subsequent modifications, particularly changes in discount rates or growth rates inherent in Dominion Energy’s estimates of future cash flows, could result in a future impairment of goodwill. Although Dominion Energy has consistently applied the same methods in developing the assumptions and estimates that underlie the fair value calculations, such as estimates of future cash flows, and based those estimates on relevant information available at the time, such cash flow estimates are highly uncertain by nature and may vary significantly from actual results. If the estimates of future cash flows used in the most recent test had been 10% lower or if the discount rate had been 0.25% higher, the resulting fair values would have still been greater than the carrying values of each of those reporting units tested, indicating that no impairment was present.

In addition to the annual goodwill impairment testing described above, Dominion Energy’s calculations during the fourth quarter of 2023 and first quarter of 2024 of the expected gain or loss on the Questar Gas and East Ohio Transactions resulted in an impairment of the related goodwill totaling $238 million and $78 million, respectively, reflected in discontinued operations in Dominion Energy’s Consolidated Statements of Income.

See Notes 2 and 11 to the Consolidated Financial Statements for additional information.

Use of Estimates in Long-Lived Asset Impairment Testing

Impairment testing for an individual or group of long-lived assets, including intangible assets with definite lives, is required when circumstances indicate those assets may be impaired. When a long-lived asset’s carrying amount exceeds the undiscounted estimated future cash flows associated with the asset, the asset is considered impaired to the extent that the asset’s fair value is less than its carrying amount. Performing an impairment test on long-lived assets involves judgment in areas such as identifying if circumstances indicate an impairment may exist, identifying and grouping affected assets in the case of long-lived assets and developing the undiscounted and discounted estimated future cash flows (used to estimate fair value in the absence of a market-based value) associated with the asset, including probability weighting such cash flows to reflect expectations about possible variations in their amounts or timing, expectations about the operations of the long-lived assets and the selection of an appropriate discount rate. When determining whether a long-lived asset or asset group has been impaired, management groups assets at the lowest level that has identifiable cash flows. Although cash flow estimates are based on relevant information available at the time the estimates are made, estimates of future cash flows are, by nature, highly uncertain and may vary significantly from actual results. For example, estimates of future cash flows would contemplate factors which may change over time, such as the expected use of the asset or underlying assets of equity method investees, including future production and sales levels, expected fluctuations of prices of commodities sold and consumed and expected proceeds from dispositions. There were no tests performed in 2025, 2024 or 2023 of long-lived assets which could have resulted in material impairments.

Employee Benefit Plans

Dominion Energy sponsors noncontributory defined benefit pension plans and other postretirement benefit plans for eligible active employees, retirees and qualifying dependents. The projected costs of providing benefits under these plans are dependent, in part, on historical information such as employee demographics, the level of contributions made to the plans and earnings on plan assets. Assumptions about the future, including the expected long-term rate of return on plan assets, discount rates applied to benefit obligations, mortality rates and the anticipated rate of increase in healthcare costs and participant compensation, also have a significant impact on employee benefit costs. The impact of changes in these factors, as well as differences between Dominion Energy’s assumptions and actual experience, is immediately recognized in earnings annually in the fourth quarter of each fiscal year as well as whenever a triggering event occurs that is determined to require remeasurement. Actuarial losses attributable to Dominion Energy’s rate regulated operations are deferred to regulatory assets when it is probable that regulators will permit them to be recovered from customers in future rates. Likewise, actuarial gains attributable to Dominion Energy’s rate regulated operations are deferred to regulatory liabilities when it is probable that regulators will require customer refunds or other benefits through future rates.

The expected long-term rates of return on plan assets, discount rates, healthcare cost trend rates and mortality rates are critical assumptions. Dominion Energy determines the expected long-term rates of return on plan assets for pension plans and other postretirement benefit plans by using a combination of:

Expected inflation and risk-free interest rate assumptions;
Historical return analysis to determine long-term historic returns as well as historic risk premiums for various asset classes;
Expected future risk premiums, asset classes’ volatilities and correlations;
Forward-looking return expectations derived from the yield on long-term bonds and the expected long-term returns of major capital market assumptions; and
Investment allocation of plan assets. The long-term strategic target asset allocation for Dominion Energy’s pension funds is 30% public equity (inclusive of both U.S. equity and non-U.S. equity), 27% fixed income and 43% other alternative investments which includes private equity, typically through limited partnerships, and credit and absolute return strategies which include investments in debt funds, including public and private debt, and hedge funds.

47


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

Strategic investment policies are established for Dominion Energy’s prefunded benefit plans based upon periodic asset/liability studies. Factors considered in setting the investment policy include those mentioned above such as employee demographics, liability growth rates, future discount rates, the funded status of the plans and the expected long-term rate of return on plan assets. Deviations from the plans’ strategic allocation are a function of Dominion Energy’s assessments regarding short-term risk and reward opportunities in the capital markets and/or short-term market movements which result in the plans’ actual asset allocations varying from the strategic target asset allocations. Through periodic rebalancing, actual allocations are brought back in line with the targets. Future asset/liability studies will focus on strategies to further reduce pension and other postretirement plan risk, while still achieving attractive levels of returns.

Dominion Energy develops its critical assumptions, which are then compared to the forecasts of an independent investment advisor or an independent actuary, as applicable, to ensure reasonableness. An internal committee selects the final assumptions. Dominion Energy calculated its pension cost using an expected long-term rate of return on plan assets assumption of 7.35% for 2025 and that ranged from 7.00% to 8.35% for both 2024 and 2023. For 2026, the expected long-term rate of return for the pension cost assumption is 7.35% for Dominion Energy’s plans held at December 31, 2025. Dominion Energy calculated its other postretirement benefit cost using an expected long-term rate of return on plan assets assumption of 7.35% for 2025 and 8.35% for both 2024 and 2023. For 2026, the expected long-term rate of return for other postretirement benefit cost assumption is 7.35%.

Dominion Energy determines discount rates from analyses of AA/Aa rated bonds with cash flows matching the expected payments to be made under its plans. The discount rates used to calculate pension cost and other postretirement benefit cost ranged from 5.84% to 5.87% for pension plans and 5.83% to 5.86% for other postretirement benefit plans in 2025, ranged from 5.37% to 5.75% for pension plans and 5.40% to 5.74% for other postretirement benefit plans in 2024 and ranged from 5.65% to 5.75% for pension plans and 5.69% to 5.70% for other postretirement benefit plans in 2023. Dominion Energy selected a discount rate ranging from 5.59% to 5.69% for pension plans and 5.60% to 5.66% for other postretirement benefit plans for determining its December 31, 2025 projected benefit obligations.

Dominion Energy establishes the healthcare cost trend rate assumption based on analyses of various factors including the specific provisions of its medical plans, actual cost trends experienced and projected and demographics of plan participants. Dominion Energy’s healthcare cost trend rate assumption at December 31, 2025 was 7.00% and is expected to gradually decrease to 5.00% by 2032 and continue at that rate for years thereafter.

 

The following table illustrates the effect on cost of changing the critical actuarial assumptions discussed above, while holding all other assumptions constant:

 

 

 

 

Increase in 2025 Net
Periodic Cost

 

 

 

Change in
Actuarial
Assumptions

 

Pension
Benefits

 

 

Other
Postretirement
Benefits

 

(millions, except
   percentages)

 

 

 

 

 

 

 

 

Discount rate

 

0.25%

 

$

5

 

 

$

1

 

Long-term rate of
   return on plan
   assets

 

(0.25)%

 

 

23

 

 

 

5

 

Health care cost trend
   rate

 

1%

 

N/A

 

 

 

4

 

In addition to the effects on cost, a 0.25% decrease in the discount rate would increase Dominion Energy’s projected pension benefit obligation at December 31, 2025 by $193 million and its accumulated postretirement benefit obligation at December 31, 2025 by $23 million, while a 1.00% increase in the healthcare cost trend rate would increase its accumulated postretirement benefit obligation at December 31, 2025 by $60 million.

See Note 22 to the Consolidated Financial Statements for additional information on Dominion Energy’s employee benefit plans.

New Accounting Standards

See Note 2 to the Consolidated Financial Statements for a discussion of new accounting standards.

 

Results of Operations

Dominion Energy

Presented below is a summary of Dominion Energy’s consolidated results:

 

Year Ended December 31,

 

2025

 

 

$ Change

 

 

2024

 

 

$ Change

 

 

2023

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable
   to Dominion Energy

 

$

2,998

 

 

$

964

 

 

$

2,034

 

 

$

72

 

 

$

1,962

 

Diluted EPS

 

 

3.45

 

 

 

1.12

 

 

 

2.33

 

 

 

0.08

 

 

 

2.25

 

Overview

2025 vs. 2024

Net income attributable to Dominion Energy increased 47%, primarily due to higher market-related impacts on pension and other postretirement plans, higher rider equity returns reflecting capital investments at Virginia Power, an increase in non-fuel base rates associated with the settlement of the 2024 electric base rate case in South Carolina, the absence of an impairment associated with the Questar Gas Transaction, higher electric utility sales driven by growth and customer usage and an increase in renewable energy tax credits. These increases were partially offset by a 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, including impacts of charges for costs not expected to be recovered from customers and the closings of the East Ohio, Questar Gas and PSNC Transactions.

48


 

 

 

2024 vs. 2023

Net income attributable to Dominion Energy increased 4%, primarily due to the absence of a charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale, a decrease in impairments associated with the East Ohio and Questar Gas Transactions, an increase in net investment earnings on nuclear decommissioning trust funds, the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale, higher rider equity returns reflecting increased capital investments at Virginia Power, an increase in sales to electric utility customers attributable to weather and the absence of amortization associated with the 2021 Triennial Review. These increases were partially offset by the closings of the East Ohio, PSNC and Questar Gas Transactions, a charge for costs not expected to be recovered from customers on the CVOW Commercial Project, the absence of a gain and equity method earnings from the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point, increased unrealized losses on economic hedging activities, lower market related impacts on pension and other postretirement plans and the impact of 2023 Virginia legislation.

Analysis of Consolidated Operations

Presented below are selected amounts related to Dominion Energy’s results of operations:

 

Year Ended December 31,

 

2025

 

 

$ Change

 

 

2024

 

 

$ Change

 

 

2023

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

16,506

 

 

$

2,047

 

 

$

14,459

 

 

$

66

 

 

$

14,393

 

Electric fuel and other
   energy-related purchases

 

 

4,489

 

 

 

875

 

 

 

3,614

 

 

 

(321

)

 

 

3,935

 

Purchased electric capacity

 

 

82

 

 

 

8

 

 

 

74

 

 

 

19

 

 

 

55

 

Purchased gas

 

 

297

 

 

 

37

 

 

 

260

 

 

 

(25

)

 

 

285

 

Other operations and
   maintenance

 

 

3,547

 

 

 

(41

)

 

 

3,588

 

 

 

455

 

 

 

3,133

 

Depreciation and
   amortization

 

 

2,387

 

 

 

42

 

 

 

2,345

 

 

 

(235

)

 

 

2,580

 

Other taxes

 

 

773

 

 

 

42

 

 

 

731

 

 

 

47

 

 

 

684

 

Impairment of assets and
   other charges

 

 

517

 

 

 

(83

)

 

 

600

 

 

 

293

 

 

 

307

 

Other income (expense)

 

 

1,219

 

 

 

378

 

 

 

841

 

 

 

(155

)

 

 

996

 

Interest and related charges

 

 

2,022

 

 

 

129

 

 

 

1,893

 

 

 

214

 

 

 

1,679

 

Income tax expense

 

 

532

 

 

 

121

 

 

 

411

 

 

 

(233

)

 

 

644

 

Net income (loss) from
   discontinued operations
   including noncontrolling
   interests

 

 

(14

)

 

 

(211

)

 

 

197

 

 

 

322

 

 

 

(125

)

Noncontrolling interests

 

 

67

 

 

 

120

 

 

 

(53

)

 

 

(53

)

 

 

 

 

An analysis of Dominion Energy’s results of operations follows:

2025 vs. 2024

Operating revenue increased 14%, primarily reflecting:

A $764 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;
A $582 million net increase in fuel-related revenue as a result of an increase in commodity costs associated with sales to electric utility retail customers ($552 million), including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power effective March 2024 and an increase in commodity costs associated with sales to gas utility customers ($30 million);
A $183 million increase in sales to electric utility retail customers associated with economic and other usage factors;
A $150 million increase in non-fuel base rates associated with the settlement of the 2024 electric base rate case in South Carolina;
A $70 million increase in sales to electric utility retail customers associated with growth;
A $64 million net increase associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($147 million);
A $41 million increase associated with prices from non-jurisdictional solar generation facilities at Virginia Power;
A $39 million increase in services provided under transition service agreements primarily associated with the East Ohio, Questar Gas and PSNC Transactions;
A $30 million increase attributable to sales at Millstone in the day-ahead energy market;
A $28 million net increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season ($115 million), partially offset by a decrease in cooling degree days during the cooling season ($87 million);
A $22 million increase due to the absence of one-time credits to customers associated with the 2023 Biennial Review and the 2024 electric base rate case in South Carolina;
$21 million in sales of environmental credits generated from renewable natural gas production in 2025; and
A $20 million increase in sales from nonregulated solar generation facilities.

These increases were partially offset by:

A $29 million decrease associated with severe weather events affecting Virginia Power.

Electric fuel and other energy-related purchases increased 24%, primarily due to higher commodity costs for electric utilities ($564 million) and an increase in the use of purchased renewable energy credits ($279 million), which are offset in operating revenue and do not impact net income.

Purchased gas increased 14%, primarily due to an increase in commodity costs for gas utility operations, which are offset in operating revenue and do not impact net income.

Other operations and maintenance decreased 1%, primarily reflecting:

The absence of $80 million of costs associated with the business review completed in March 2024;
A $64 million decrease in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;
The absence of a $25 million accrual for remediation costs at a manufactured gas plant site at Virginia Power; and
A $25 million decrease in outage costs at Virginia Power ($18 million) and Millstone ($7 million).

49


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

These decreases were partially offset by:

A $68 million increase in charges associated with severe weather events, including storm damage and restoration costs, affecting Virginia Power;
A $54 million increase in salaries, wages and benefits; and
A $41 million increase in outside services.

Depreciation and amortization increased 2%, primarily due to various projects being placed into service ($186 million) and an increase in amortization associated with non-fuel riders ($24 million), which is offset in operating revenue and does not impact net income, partially offset by the absence of RGGI-related amortization ($182 million), which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges decreased 14%, primarily reflecting:

The absence of charges related to the revision of AROs for Millstone Unit 1 ($122 million);
The absence of charges for the impairment of certain nonregulated renewable natural gas facilities ($60 million);
The absence of a $55 million charge in connection with the 2024 electric base rate case in South Carolina primarily to write down certain materials and supplies inventory;
The absence of a charge in connection with a settlement of an agreement ($47 million);
The absence of dismantling costs and other activities associated with certain retired electric generation facilities ($40 million);
The absence of a charge related to the write-off of certain early-stage development costs at Virginia Power ($30 million); and
The absence of an impairment of a corporate office building ($20 million).

These decreases were partially offset by:

An increase in charges for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($309 million).

Other income increased 45%, primarily due to higher market-related impacts on pension and other postretirement plans ($489 million), an increase in AFUDC associated with rate-regulated projects ($67 million) and a decrease in charitable commitments ($30 million), partially offset by a decrease in non-service components of pension and other postretirement employee benefit plan credits ($120 million), a decrease in net investment gains on nuclear decommissioning trust funds ($44 million) and a decrease in earnings from other investments ($20 million).

Interest and related charges increased 7%, primarily reflecting:

Net issuances of long-term debt ($242 million); and
Net losses in 2025 compared to gains in 2024 associated with freestanding derivatives ($55 million).

These increases were partially offset by:

Variable rate debt repaid from proceeds associated with the business review completed in March 2024 ($69 million);
Decreased interest expense associated with rider deferrals ($28 million), which is offset in operating revenue and does not impact net income;
Increases in AFUDC associated with rate-regulated projects ($28 million);
Lower interest rates on commercial paper ($24 million); and
The absence of charges incurred due to early debt repayments associated with the business review completed in March 2024 ($20 million).

Income tax expense increased 29%, primarily due to higher pre-tax income ($322 million), partially offset by an increase in renewable energy and other tax credits ($175 million) and lower taxes on earnings within qualified decommissioning trusts ($19 million).

Net income from discontinued operations including noncontrolling interests decreased $211 million, primarily due to the absence of earnings from operations following the closing of the Questar Gas Transaction ($182 million), PSNC Transaction ($134 million) and East Ohio Transaction ($77 million), the absence of a gain on the closing of the Questar Gas Transaction ($42 million) and the absence of a tax benefit associated with the Questar Gas Transaction ($25 million), partially offset by the absence of a loss on the closing of the East Ohio Transaction ($109 million), the absence of an impairment associated with the Questar Gas Transaction ($78 million), the absence of charges for employee benefit items related to the East Ohio Transaction ($33 million), the absence of a loss on the closing of the PSNC Transaction ($31 million) and the absence of tax expense associated with the PSNC Transaction ($16 million).

Noncontrolling interests increased $120 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $154 million share of charges for costs not expected to be recovered from customers on the CVOW Commercial Project.

2024 vs. 2023

Operating revenue remained substantially consistent, primarily reflecting:

A $747 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;
A $173 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($107 million) and an increase in heating degree days during the heating season ($66 million);
A $155 million increase in sales to electric utility retail customers associated with growth;
A $124 million increase from fewer outages at Millstone, including the relative effect of fewer planned outages ($100 million) and unplanned outages ($24 million);
A $90 million net increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges at Virginia Power prior to March 2024;
A $60 million increase in non-fuel base rates associated with the settlement of the electric base rate case in South Carolina; and

50


 

 

 

A $43 million net increase in transition service agreements primarily associated with the East Ohio, Questar Gas and PSNC Transactions.

These increases were substantially offset by:

A $687 million net decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($696 million);
A $336 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power effective March 2024;
A $184 million decrease from the combination of certain riders into base rates at Virginia Power as a result of 2023 Virginia legislation;
A $139 million decrease in sales to electric utility retail customers associated with economic and other usage factors;
A $24 million decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to gas utility customers; and
A $22 million decrease due to one-time credits to customers associated with the 2023 Biennial Review and the electric base rate case in South Carolina.

Electric fuel and other energy-related purchases decreased 8%, primarily due to lower commodity costs for electric utilities ($408 million), partially offset by an increase in the use of purchased renewable energy credits at Virginia Power ($47 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 15%, primarily reflecting:

A $111 million increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;
A $78 million increase in outside services;
A $71 million increase in salaries, wages and benefits;
A $63 million increase in costs associated with the business review completed in March 2024;
A $43 million increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation;
A $29 million increase in materials and supplies expense;
A $25 million increase associated with an accrual for remediation costs at a manufactured gas plant site at Virginia Power; and
A $20 million increase due to the absence of a gain on the transfer of certain utility property in South Carolina.

These increases were partially offset by:

A $48 million net decrease in outage costs due to lower outage costs at Millstone ($74 million) partially offset by higher outage costs at Virginia Power ($26 million); and
A $21 million decrease in bad debt expense.

Depreciation and amortization decreased 9%, primarily reflecting:

The absence of $244 million in amortization of a regulatory asset established in the settlement of the 2021 Triennial Review;
A $67 million decrease in amortization associated with Virginia Power non-fuel riders, which is offset in operating revenue and does not impact net income;
A $35 million decrease due to revised estimated useful lives at Millstone; and
A $17 million decrease due to revised depreciation rates for Bath County.

These decreases were partially offset by:

A $55 million increase in RGGI-related amortization, which is offset in operating revenue and does not impact net income; and
A $53 million increase due to various projects being placed into service.

Impairment of assets and other charges increased 95%, primarily reflecting:

A charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($206 million);
Charges for the impairment of certain nonregulated renewable natural gas facilities ($60 million);
A $55 million charge in connection with the electric base rate case in South Carolina primarily to write down certain materials and supplies inventory;
A net increase in dismantling costs and other activities associated with certain retired electric generation facilities at Virginia Power ($55 million);
A charge in connection with a settlement of an agreement ($47 million);
An increase in charges related to the revision of AROs for Millstone Unit 1 ($39 million); and
A charge related to the write-off of certain early-stage development costs at Virginia Power ($30 million).

These increases were partially offset by:

A decrease in impairments of corporate office buildings ($73 million);
The absence of a charge for an easement related to the CVOW Commercial Project for which Virginia Power will not seek recovery ($65 million);
The absence of a charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023 ($36 million); and
The absence of a charge associated with the abandonment of certain regulated solar generation and other facilities at Virginia Power ($25 million).

Other income decreased 16%, primarily due to lower market related impacts on pension and other postretirement plans ($351 million) and an increase in charitable commitments ($58 million), partially offset by an increase in net investment gains on nuclear decommissioning trust funds ($171 million), an increase in earnings from other investments ($42 million), the absence of Dominion Energy’s share of an impairment of certain property, plant and equipment at Align RNG ($35 million) and an increase in AFUDC associated with rate-regulated projects ($35 million).

51


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

Interest and related charges increased 13%, primarily reflecting:

Net issuances of long-term debt ($230 million);
Lower unrealized gains in 2024 compared to 2023 associated with freestanding derivatives ($135 million);
Charges incurred due to early debt repayments associated with the business review completed in March 2024 ($20 million);
Increased interest expense associated with rider deferrals ($13 million), which is offset in operating revenue and does not impact net income; and
Higher interest rates on commercial paper and long-term debt ($11 million).

These increases were partially offset by:

A decrease in borrowings under the 364-day term loan facilities ($105 million);
Variable rate debt repaid from business review proceeds ($69 million);
A decrease in commercial paper ($30 million); and
Increased premiums received in 2024 compared to 2023 on interest rate derivatives ($17 million).

Income tax expense decreased 36%, primarily due to lower pre-tax income ($127 million) and an increase in a nuclear production tax credit ($89 million), partially offset by higher taxes on earnings within qualified decommissioning trusts ($26 million).

Net income from discontinued operations including noncontrolling interests increased $322 million, primarily due to the absence of charges reflecting the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale ($835 million), a decrease in impairments associated with the East Ohio and Questar Gas Transactions ($197 million), the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($211 million), the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($72 million), a gain upon the closing of the Questar Gas Transaction ($42 million), the absence of an impairment charge associated with the impairment of Birdseye ($34 million), the absence of charges associated with the impairment of the Madison solar project ($19 million) and the absence of an impairment charge of certain nonregulated solar assets ($11 million), partially offset by the absence of a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point ($348 million), the absence of earnings from operations following the closing of the East Ohio Transaction ($299 million) and Questar Gas Transaction ($138 million), the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($163 million), a loss on the closing of the East Ohio Transaction ($109 million), charges for employee benefit items related to the East Ohio Transaction ($33 million), a loss on the closing of the PSNC Transaction ($31 million) and higher tax expense associated with the PSNC Transaction ($16 million).

Noncontrolling interests decreased $53 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project ($103 million) partially offset by its share of the remaining earnings associated with the CVOW Commercial Project subsequent to closing.

Virginia Power

Presented below is a summary of Virginia Power’s consolidated results:

Year Ended December 31,

 

2025

 

 

$ Change

 

 

2024

 

 

$ Change

 

 

2023

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable
   to Virginia Power

 

$

2,101

 

 

$

204

 

 

$

1,897

 

 

$

455

 

 

$

1,442

 

Overview

2025 vs. 2024

Net income attributable to Virginia Power increased 11%, primarily due to higher rider equity returns reflecting capital investments and higher sales driven by growth and customer usage, partially offset by a 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, including impacts of charges for costs not expected to be recovered from customers and an increase in interest on long-term debt borrowings and higher average outstanding principal on commercial paper and intercompany borrowings with Dominion Energy.

2024 vs. 2023

Net income attributable to Virginia Power increased 32%, primarily due to the absence of amortization associated with the 2021 Triennial Review, higher rider equity returns reflecting increased capital investments and an increase in sales to electric utility customers attributable to weather and other customer-related factors, partially offset by a charge for costs not expected to be recovered from customers on the CVOW Commercial Project and the impact of 2023 Virginia legislation.

Analysis of Consolidated Operations

Presented below are selected amounts related to Virginia Power’s results of operations:

Year Ended December 31,

 

2025

 

 

$ Change

 

 

2024

 

 

$ Change

 

 

2023

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

11,812

 

 

$

1,577

 

 

$

10,235

 

 

$

662

 

 

$

9,573

 

Electric fuel and other energy-
   related purchases

 

 

3,591

 

 

 

848

 

 

 

2,743

 

 

 

(175

)

 

 

2,918

 

Purchased electric capacity

 

 

71

 

 

 

3

 

 

 

68

 

 

 

22

 

 

 

46

 

Other operations and
   maintenance

 

 

2,330

 

 

 

93

 

 

 

2,237

 

 

 

386

 

 

 

1,851

 

Depreciation and amortization

 

 

1,630

 

 

 

(14

)

 

 

1,644

 

 

 

(227

)

 

 

1,871

 

Other taxes

 

 

362

 

 

 

29

 

 

 

333

 

 

 

35

 

 

 

298

 

Impairment of assets and
   other charges

 

 

516

 

 

 

224

 

 

 

292

 

 

 

177

 

 

 

115

 

Other income (expense)

 

 

255

 

 

 

57

 

 

 

198

 

 

 

65

 

 

 

133

 

Interest and related charges

 

 

951

 

 

 

102

 

 

 

849

 

 

 

84

 

 

 

765

 

Income tax expense

 

 

448

 

 

 

25

 

 

 

423

 

 

 

23

 

 

 

400

 

Noncontrolling interests

 

 

67

 

 

 

120

 

 

 

(53

)

 

 

(53

)

 

 

 

An analysis of Virginia Power’s results of operations follows:

2025 vs. 2024

Operating revenue increased 15%, primarily reflecting:

A $764 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;
A $526 million net increase in fuel-related revenue as a result of an increase in commodity costs associated with sales to electric utility retail customers, including revenue for the

52


 

 

 

deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges effective March 2024;
A $161 million increase in sales to electric utility retail customers associated with economic and other usage factors;
A $56 million increase in sales to electric utility retail customers associated with growth;
A $41 million increase associated with prices from non-jurisdictional solar generation facilities;
A $25 million net increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season ($95 million), partially offset by a decrease in cooling degree days during the cooling season ($70 million); and
A $15 million increase due to the absence of one-time credits to customers associated with the 2023 Biennial Review.

These increases were partially offset by:

A $29 million decrease associated with severe weather events.

Electric fuel and other energy-related purchases increased 31%, primarily due to higher commodity costs for electric utilities ($538 million) and an increase in the use of purchased renewable energy credits ($279 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 4%, primarily reflecting:

A $129 million increase in salaries, wages and benefits and administrative costs;
A $68 million increase in charges associated with severe weather events, including storm damage and restoration costs; and
A $53 million increase in outside services.

These increases were partially offset by:

A $64 million decrease in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;
The absence of a $25 million accrual for remediation costs at a manufactured gas plant site;
A $18 million decrease in outage costs; and
A $15 million decrease in nuclear insurance costs.

Depreciation and amortization decreased 1%, primarily due to the absence of RGGI-related amortization ($182 million), which is offset in operating revenue and does not impact net income, partially offset by an increase due to various projects being placed into service ($134 million) and an increase in amortization associated with non-fuel riders ($24 million), which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges increased 77%, primarily due to an increase in charges for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($309 million), partially offset by the absence of dismantling costs and other activities associated with certain retired electric generation facilities ($40 million) and the absence of a charge related to the write-off of certain early-stage development costs ($30 million).

Other income increased 29%, primarily due to an increase in AFUDC associated with rate-regulated projects ($67 million), partially offset by a decrease in net investment gains on nuclear decommissioning trust funds ($12 million).

Interest and related charges increased 12%, primarily due to an increase in long-term debt borrowings ($109 million) and higher average outstanding principal on commercial paper and intercompany borrowings with Dominion Energy ($37 million), partially offset by increases in AFUDC associated with rate-regulated projects ($28 million) and decreased interest expense associated with rider deferrals ($28 million), which is offset in operating revenue and does not impact net income.

Income tax expense increased 6%, primarily due to higher pre-tax income ($57 million), partially offset by an increase in renewable energy and other tax credits ($23 million).

Noncontrolling interests increased $120 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $154 million share of charges for costs not expected to be recovered from customers on the CVOW Commercial Project.

2024 vs. 2023

Operating revenue increased 7%, primarily reflecting:

A $747 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;
A $130 million increase in sales to electric utility retail customers associated with growth;
A $124 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($78 million) and an increase in heating degree days during the heating season ($46 million);
An $85 million increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges prior to March 2024; and
An $18 million increase in sales to customers from non-jurisdictional solar generation facilities.

These increases were partially offset by:

A $184 million decrease from the combination of certain riders into base rates as a result of 2023 Virginia legislation;
A $154 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges effective March 2024;
A $122 million decrease in sales to electric utility retail customers associated with economic and other usage factors; and
A $15 million decrease due to one-time credits to customers associated with the 2023 Biennial Review.

Electric fuel and other energy-related purchases decreased 6%, primarily due to lower commodity costs for electric utilities ($226 million), partially offset by an increase in the use of purchased renewable energy credits ($47 million), which are offset in operating revenue and do not impact net income.

Purchased electric capacity increased 48%, primarily due to new capacity contracts and changes in existing capacity contracts.

53


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

Other operations and maintenance increased 21%, primarily reflecting:

A $111 million increase in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;
A $67 million increase in salaries, wages and benefits and administrative costs;
A $48 million increase in outside services;
A $43 million increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation;
A $27 million increase in materials and supplies expense;
A $26 million increase in outage costs;
A $25 million increase associated with an accrual for remediation costs at a manufactured gas plant site; and
A $15 million increase in tree trimming and vegetation management.

These increases were partially offset by:

A $19 million decrease in bad debt expense.

Depreciation and amortization decreased 12%, primarily reflecting:

The absence of $244 million in amortization of a regulatory asset established in the settlement of the 2021 Triennial Review;
A $67 million decrease in amortization associated with non-fuel riders, which is offset in operating revenue and does not impact net income; and
A $17 million decrease due to revised depreciation rates for Bath County.

These decreases were partially offset by:

A $55 million increase in RGGI-related amortization, which is offset in operating revenue and does not impact net income; and
A $42 million increase due to various projects being placed into service.

Other taxes increased 12%, primarily due to higher property taxes.

Impairment of assets and other charges increased $177 million, primarily reflecting:

A charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($206 million);
A net increase in dismantling costs and other activities associated with certain retired electric generation facilities ($55 million); and
A charge related to the write-off of certain early-stage development costs ($30 million).

These increases were partially offset by:

The absence of a charge for an easement related to the CVOW Commercial Project for which Virginia Power will not seek recovery ($65 million);
The absence of a charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023 ($36 million); and
The absence of a charge associated with the abandonment of certain regulated solar generation and other facilities ($25 million).

Other income increased 49%, primarily due to an increase in AFUDC associated with rate-regulated projects ($33 million) and an increase in net investment gains on nuclear decommissioning trust funds ($30 million).

Interest and related charges increased 11%, primarily due to an increase in long-term debt borrowings ($178 million) and increased interest expense associated with rider deferrals ($13 million), which is offset in operating revenue and does not impact net income, partially offset by a decrease in principal on commercial paper and intercompany borrowings with Dominion Energy ($89 million) and lower interest rates on commercial paper, long-term debt and intercompany borrowings with Dominion Energy ($23 million).

Income tax expense increased 6%, primarily due to higher pre-tax income ($106 million), partially offset by a nuclear production tax credit ($89 million).

Noncontrolling interests decreased $53 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project ($103 million) partially offset by its share of the remaining earnings associated with the CVOW Commercial Project subsequent to closing.

Segment Results of Operations

Segment results include the impact of intersegment revenues and expenses, which may result in intersegment profit and loss. Presented below is a summary of contributions by Dominion Energy’s operating segments to net income (loss) attributable to Dominion Energy:

 

 

 

Net
Income
(Loss)
Attributable
to
Dominion
Energy

 

 

EPS(1)

 

 

Net
Income
(Loss)
Attributable
to
Dominion
Energy

 

 

EPS(1)

 

 

Net
Income
(Loss)
Attributable
to
Dominion
Energy

 

 

EPS(1)

 

Year Ended
December 31,

 

2025

 

 

2024

 

 

2023

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion
   Energy
   Virginia

 

$

2,325

 

 

$

2.72

 

 

$

2,011

 

 

$

2.40

 

 

$

1,684

 

 

$

2.01

 

Dominion
   Energy
   South
   Carolina

 

 

535

 

 

 

0.63

 

 

 

398

 

 

 

0.47

 

 

 

377

 

 

 

0.45

 

Contracted
   Energy

 

 

438

 

 

 

0.51

 

 

 

359

 

 

 

0.43

 

 

 

99

 

 

 

0.12

 

Corporate
   and Other

 

 

(300

)

 

 

(0.41

)

 

 

(734

)

 

 

(0.97

)

 

 

(198

)

 

 

(0.33

)

Consolidated

 

$

2,998

 

 

$

3.45

 

 

$

2,034

 

 

$

2.33

 

 

$

1,962

 

 

$

2.25

 

 

(1)
Consolidated results are presented on a diluted EPS basis. The dilutive impacts, primarily consisting of potential shares which had not yet been issued, are included within the results of the Corporate and Other segment. EPS contributions for Dominion Energy’s operating segments are presented utilizing basic average shares outstanding for the period.

54


 

 

 

Dominion Energy Virginia

Presented below are selected operating statistics related to Dominion Energy Virginia’s operations:

 

Year Ended December 31,

 

2025

 

 

% Change

 

 

2024

 

 

% Change

 

 

2023

 

Electricity delivered
   (million MWh)

 

 

100.2

 

 

 

6

 

%

 

94.5

 

 

 

5

 

%

 

89.9

 

Electricity supplied (million MWh):

 

Utility

 

 

100.3

 

 

 

6

 

 

 

94.6

 

 

 

5

 

 

 

90.0

 

Non-Jurisdictional

 

 

1.7

 

 

 

 

 

 

1.7

 

 

 

6

 

 

 

1.6

 

Degree days (electric distribution and utility service area):

 

Cooling

 

 

1,720

 

 

 

(11

)

 

 

1,928

 

 

 

17

 

 

 

1,643

 

Heating

 

 

3,508

 

 

 

18

 

 

 

2,969

 

 

 

5

 

 

 

2,830

 

Average electric
   distribution customer
   accounts
   (thousands)

 

 

2,809

 

 

 

1

 

 

 

2,782

 

 

 

1

 

 

 

2,752

 

 

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution:

2025 VS. 2024

 

Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

Weather

 

$

18

 

 

$

0.02

 

Customer usage and other factors

 

 

173

 

 

 

0.21

 

Customer-elected rate impacts

 

 

(7

)

 

 

(0.01

)

Rider equity return

 

 

507

 

 

 

0.60

 

Storm damage and restoration costs

 

 

10

 

 

 

0.01

 

Planned outage costs

 

 

14

 

 

 

0.02

 

Nuclear production tax credit

 

 

 

 

 

 

Sale of noncontrolling interest

 

 

(275

)

 

 

(0.33

)

Depreciation and amortization

 

 

(32

)

 

 

(0.04

)

Salaries, wages and benefits & administrative
   costs

 

 

(84

)

 

 

(0.10

)

Interest expense, net

 

 

(47

)

 

 

(0.06

)

Other

 

 

37

 

 

 

0.05

 

Share dilution

 

 

 

 

 

(0.05

)

Change in net income contribution

 

$

314

 

 

$

0.32

 

 

2024 VS. 2023

 

Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

Weather

 

$

92

 

 

$

0.11

 

Customer usage and other factors

 

 

(6

)

 

 

(0.01

)

Customer-elected rate impacts

 

 

63

 

 

 

0.08

 

Impact of 2023 Virginia legislation

 

 

(142

)

 

 

(0.17

)

Rider equity return

 

 

349

 

 

 

0.42

 

Electric capacity

 

 

(19

)

 

 

(0.02

)

Storm damage and restoration costs

 

 

(12

)

 

 

(0.01

)

Planned outage costs

 

 

(24

)

 

 

(0.03

)

Nuclear production tax credit

 

 

89

 

 

 

0.11

 

Sale of noncontrolling interest

 

 

(50

)

 

 

(0.06

)

Depreciation and amortization

 

 

(2

)

 

 

 

Interest expense, net

 

 

39

 

 

 

0.05

 

Other

 

 

(50

)

 

 

(0.07

)

Share dilution

 

 

 

 

 

(0.01

)

Change in net income contribution

 

$

327

 

 

$

0.39

 

 

Dominion Energy South Carolina

Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations:

 

Year Ended December 31,

 

2025

 

 

% Change

 

 

2024

 

 

% Change

 

 

2023

 

Electricity delivered
   (million MWh)

 

 

22.2

 

 

 

1

 

%

 

22.0

 

 

 

 

%

 

21.9

 

Electricity supplied
   (million MWh)

 

 

23.3

 

 

 

1

 

 

 

23.1

 

 

 

 

 

 

23.0

 

Degree days (electric distribution service areas):

 

Cooling

 

 

772

 

 

 

(10

)

 

 

855

 

 

 

18

 

 

 

725

 

Heating

 

 

1,388

 

 

 

29

 

 

 

1,078

 

 

 

18

 

 

 

917

 

Gas distribution throughput (bcf):

 

Sales

 

 

68

 

 

 

8

 

 

 

63

 

 

 

(5

)

 

 

66

 

Average distribution customer accounts (thousands):

 

Electric

 

 

818

 

 

 

1

 

 

 

806

 

 

 

2

 

 

 

790

 

Gas

 

 

472

 

 

 

3

 

 

 

460

 

 

 

4

 

 

 

443

 

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution:

2025 VS. 2024

 

Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

Weather

 

$

2

 

 

$

 

Customer usage and other factors

 

 

32

 

 

 

0.04

 

Customer-elected rate impacts

 

 

11

 

 

 

0.01

 

Base rate case & Natural Gas Rate
   Stabilization Act impacts

 

 

127

 

 

 

0.15

 

Capital cost rider

 

 

(8

)

 

 

(0.01

)

Depreciation and amortization

 

 

(17

)

 

 

(0.02

)

Salaries, wages and benefits & administrative
   costs

 

 

(29

)

 

 

(0.03

)

Interest expense, net

 

 

4

 

 

 

 

Other

 

 

15

 

 

 

0.03

 

Share dilution

 

 

 

 

 

(0.01

)

Change in net income contribution

 

$

137

 

 

$

0.16

 

 

2024 VS. 2023

 

Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

Weather

 

$

37

 

 

$

0.04

 

Customer usage and other factors

 

 

27

 

 

 

0.03

 

Customer-elected rate impacts

 

 

4

 

 

 

 

Base rate case & Natural Gas Rate
   Stabilization Act impacts

 

 

41

 

 

 

0.05

 

Capital cost rider

 

 

(6

)

 

 

(0.01

)

Depreciation and amortization

 

 

(12

)

 

 

(0.01

)

Interest expense, net

 

 

(21

)

 

 

(0.03

)

Other

 

 

(49

)

 

 

(0.05

)

Share dilution

 

 

 

 

 

 

Change in net income contribution

 

$

21

 

 

$

0.02

 

Contracted Energy

Presented below are selected operating statistics related to Contracted Energy’s operations:

 

Year Ended December 31,

 

2025

 

 

% Change

 

 

2024

 

 

% Change

 

 

2023

 

Electricity supplied
   (million MWh)

 

 

18.4

 

 

 

2

 

%

 

18.0

 

 

 

22

 

%

 

14.8

 

Renewable natural gas
   supplied (million MMBtu)

 

 

1.1

 

 

N/A

 

 

 

 

 

N/A

 

 

 

 

 

55


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

Presented below, on an after-tax basis, are the key factors impacting Contracted Energy’s net income contribution:

2025 VS. 2024

 

Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

Margin

 

$

34

 

 

$

0.04

 

Planned Millstone outages(1)

 

 

(4

)

 

 

 

Unplanned Millstone outages(1)

 

 

8

 

 

 

0.01

 

Depreciation and amortization

 

 

(31

)

 

 

(0.04

)

Renewable energy investment tax credits

 

 

63

 

 

 

0.08

 

Renewable energy production tax credits(2)

 

 

91

 

 

 

0.11

 

Salaries, wages and benefits & administrative
   costs

 

 

(27

)

 

 

(0.03

)

Interest expense, net

 

 

(14

)

 

 

(0.02

)

Other

 

 

(41

)

 

 

(0.06

)

Share dilution

 

 

 

 

 

(0.01

)

Change in net income contribution

 

$

79

 

 

$

0.08

 

 

(1)
Includes earnings impact from outage costs and lower energy margins.
(2)
Includes an increase from renewable natural gas facilities of $79 million.

2024 VS. 2023

 

Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

Margin

 

$

103

 

 

$

0.12

 

Planned Millstone outages(1)(2)

 

 

119

 

 

 

0.14

 

Unplanned Millstone outages(1)

 

 

16

 

 

 

0.02

 

Depreciation and amortization

 

 

22

 

 

 

0.03

 

Interest expense, net

 

 

14

 

 

 

0.02

 

Other

 

 

(14

)

 

 

(0.02

)

Share dilution

 

 

 

 

 

 

Change in net income contribution

 

$

260

 

 

$

0.31

 

 

(1)
Includes earnings impact from outage costs and lower energy margins.
(2)
Includes the effect of one planned refueling outage during 2024 as compared to two planned refueling outages in 2023.

Corporate and Other

Presented below are the Corporate and Other segment’s after-tax results:

 

Year Ended December 31,

 

2025

 

 

2024

 

 

2023

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

Specific items attributable to operating segments

 

$

(28

)

 

$

(222

)

 

$

336

 

Specific items attributable to
   Corporate and Other segment

 

 

60

 

 

 

(136

)

 

 

(89

)

Net income (expense) from specific items

 

 

32

 

 

 

(358

)

 

 

247

 

Corporate and other operations:

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(519

)

 

 

(537

)

 

 

(564

)

Equity method investments

 

 

(5

)

 

 

(5

)

 

 

6

 

Pension and other postretirement benefit plans

 

 

232

 

 

 

277

 

 

 

232

 

Corporate service company costs

 

 

(52

)

 

 

(79

)

 

 

(126

)

Other

 

 

12

 

 

 

(32

)

 

 

7

 

Net expense from corporate and other operations

 

 

(332

)

 

 

(376

)

 

 

(445

)

Total net expense

 

$

(300

)

 

$

(734

)

 

$

(198

)

EPS impact

 

$

(0.41

)

 

$

(0.97

)

 

$

(0.33

)

 

Corporate and Other includes specific items attributable to Dominion Energy’s primary operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources. See Note 26 to the Consolidated Financial Statements for discussion of these items in more detail. Corporate and Other also includes specific items attributable to the Corporate and Other segment. In 2025, this primarily included a $97 million after-tax benefit for higher market related impacts on pension and other postretirement plans and a $23 million after-tax loss for derivative mark-to-market changes. In 2024, this primarily included a $278 million after-tax loss associated with lower market related impacts on pension and other postretirement plans, $197 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions, including the loss on sale associated with the East Ohio and PSNC Transactions, as well as an impairment charge associated with the Questar Gas Transaction, $69 million in after-tax costs associated with the business review completed in March 2024 and a $27 million after-tax benefit for derivative mark-to-market changes. In 2023, this primarily included an $835 million charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale that reversed when the sales were completed, $710 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, including the gain on sale, as well as an impairment charge associated with the East Ohio and Questar Gas Transactions, a $127 million after-tax benefit for derivative mark-to-market changes, a $69 million after-tax charge associated with the impairment of a corporate office building and a $27 million after-tax benefit for higher market related impacts on pension and other postretirement plans.

 

Outlook

Dominion Energy’s 2026 net income is expected to increase on a per share basis as compared to 2025 primarily from the following:

Construction and operation of growth projects primarily in electric utility operations;
Impacts of the 2025 Biennial Review;
The absence of charges for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project; and
Customer growth.

These increases are expected to be partially offset by the following:

An increase in depreciation and amortization expense;
An increase in interest expense;
An increase in planned outage days at Millstone;
An increase in operations and maintenance expense; and
Share dilution.

 

Liquidity And Capital Resources

Dominion Energy depends on both cash generated from operations and external sources of liquidity to provide working capital and as a bridge to long-term financings. Dominion Energy’s material cash requirements include capital and investment expenditures, repaying short-term and long-term debt obligations and paying dividends on its common and preferred stock.

56


 

 

 

Analysis of Cash Flows

Presented below are selected amounts related to Dominion Energy’s cash flows:

 

Year Ended December 31,

 

2025

 

 

2024

 

 

2023

 

(millions)

 

 

 

 

 

 

 

 

 

Cash, restricted cash and equivalents at
   beginning of year

 

$

365

 

 

$

301

 

 

$

341

 

Cash flows provided by (used in):

 

 

 

 

 

 

 

 

 

Operating activities(1)

 

 

5,361

 

 

 

5,018

 

 

 

6,572

 

Investing activities

 

 

(12,969

)

 

 

(3,183

)

 

 

(7,207

)

Financing activities

 

 

7,586

 

 

 

(1,771

)

 

 

595

 

Net increase (decrease) in cash, restricted
   cash and equivalents

 

 

(22

)

 

 

64

 

 

 

(40

)

Cash, restricted cash and equivalents at
   end of year

 

$

343

 

 

$

365

 

 

$

301

 

(1)
Includes cash outflows of $72 million, $83 million and $78 million for energy efficiency programs in Virginia and $27 million for DSM programs in South Carolina for each of the years ended December 31, 2025, 2024 and 2023, respectively.

Operating Cash Flows

Net cash provided by Dominion Energy’s operating activities increased $343 million, inclusive of a $215 million decrease from discontinued operations. Net cash provided by continuing operations increased $558 million, primarily due to higher operating cash flows from electric utility operations driven by riders, customer usage and other factors ($1.3 billion), settlements of interest rate swaps ($635 million) and an increase from tax credit transfers ($184 million), partially offset by lower deferred fuel and purchased gas cost recoveries ($1.2 billion) and a decrease from changes in working capital ($402 million).

Investing Cash Flows

Net cash used in Dominion Energy’s investing activities increased $9.8 billion, primarily due to the absence of net proceeds from the East Ohio, Questar Gas and PSNC Transactions ($9.2 billion), an increase in plant construction and other property additions ($443 million) and the absence of distributions from equity method affiliates in 2024 ($126 million), partially offset by lower acquisitions of solar development projects ($217 million).

Financing Cash Flows

Net cash from Dominion Energy’s financing activities increased $9.4 billion, primarily due to the absence of net repayments on 364-day term loan facilities in 2024 ($4.8 billion), an increase in net issuances of long-term debt ($3.9 billion), a decrease in net repayments of short-term debt ($1.4 billion), an increase in capital contributions from Stonepeak to OSWP, net of distributions from OSWP to Stonepeak ($951 million), the absence of the repurchase and redemption of the Series B Preferred Stock in 2024 ($801 million), an increase in the issuance of common stock ($756 million) and the absence of supplemental credit facility repayments in 2024 ($450 million), partially offset by the impacts from the sale of a noncontrolling interest in OSWP to Stonepeak ($2.6 billion) and a decrease due to the issuance of securitization bonds in 2024 and higher repayments of such bonds in 2025 ($1.4 billion).

Credit Facilities and Short-Term Debt

Dominion Energy generally uses proceeds from short-term borrowings, including commercial paper, to satisfy short-term cash requirements not met through cash from operations. The levels of borrowing may vary significantly during the course of the year, depending on the timing and amount of cash requirements not satisfied by cash from operations. A description of Dominion Energy’s primary available sources of short-term liquidity follows.

Revolving Credit Facilities

Dominion Energy’s short-term financing is primarily supported by its joint revolving credit facility. In April 2025, Dominion Energy amended its joint revolving credit facility to, among other things, increase the facility limit from $6.0 billion to $7.0 billion and extend the maturity date from June 2026 to April 2030. In addition, in April 2025, Dominion Energy entered into a $1.0 billion 364-day revolving credit agreement.

Dominion Energy’s commercial paper and letters of credit outstanding, as well as capacity available under its credit facilities were as follows:

 

 

Facility
Limit

 

 

Outstanding
Commercial
Paper
(1)

 

 

Outstanding
Letters of
Credit

 

 

Facility
Capacity
Available

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Joint revolving credit
   facility
(2)

 

$

7,000

 

 

$

2,035

 

 

$

1

 

 

$

4,964

 

364-day revolving credit
   facility
(3)

 

 

1,000

 

 

 

 

 

 

 

 

 

1,000

 

Total

 

$

8,000

 

 

$

2,035

 

 

$

1

 

 

$

5,964

 

(1)
The weighted-average interest rate of the outstanding commercial paper supported by Dominion Energy’s joint revolving credit facility was 4.08% at December 31, 2025.
(2)
This credit facility matures in April 2030, with the potential to be extended by the borrowers to April 2032, and can be used by the borrowers under the credit facility to support bank borrowings and the issuance of commercial paper, as well as to support up to a combined $3.0 billion of letters of credit.
(3)
This credit facility matures in April 2026 and contains a maximum allowed total debt to total capital ratio consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility. This credit facility can be used to support bank borrowings and the issuance of commercial paper.

Dominion Energy Reliability InvestmentSM Program

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At December 31, 2025, Dominion Energy’s Consolidated Balance Sheet included $422 million presented within short-term debt, with a weighted-average interest rate of 3.75%. The proceeds are used for general corporate purposes and to repay debt.

57


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

Other Facilities

In addition to the primary sources of short-term liquidity discussed above, from time to time Dominion Energy enters into separate supplementary credit facilities or term loans, including a new approximately $1.3 billion 364-day term loan facility entered into in February 2026, as discussed in Note 17 to the Consolidated Financial Statements.

 

Long-Term Debt

Sustainability Revolving Credit Agreement

Dominion Energy maintains a Sustainability Revolving Credit Agreement which, in April 2025 was amended to, among other things, increase the facility limit from $900 million to $1.0 billion and extend the maturity date from June 2025 to April 2028. The Sustainability Revolving Credit Agreement bears interest at a variable rate and is described in Note 18 to the Consolidated Financial Statements. At December 31, 2025, Dominion Energy has no borrowings outstanding under this facility. In February 2026, Dominion Energy borrowed $500 million with the proceeds used to support environmental sustainability and social investment initiatives.

 

Issuances and Borrowings of Long-Term Debt

During 2025, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds were used for the repayment of existing indebtedness and for general corporate purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Month

 

Type

 

Public / Private

 

Entity

 

Principal

 

 

Rate

 

 

Stated Maturity

 

 

 

 

 

 

 

 

(millions)

 

 

 

 

 

 

January

 

First mortgage bonds

 

Public

 

DESC

 

$

450

 

 

 

5.300

%

 

2035

March

 

Senior notes

 

Public

 

Virginia Power

 

 

625

 

 

 

5.150

%

 

2035

March

 

Senior notes

 

Public

 

Virginia Power

 

 

625

 

 

 

5.650

%

 

2055

March

 

Senior notes

 

Public

 

Dominion Energy

 

 

800

 

 

 

5.000

%

 

2030

March

 

Senior notes

 

Public

 

Dominion Energy

 

 

700

 

 

 

5.450

%

 

2035

May

 

Senior notes

 

Public

 

Dominion Energy

 

 

1,000

 

 

 

4.600

%

 

2028

August

 

Junior subordinated notes

 

Public

 

Dominion Energy

 

 

825

 

 

 

6.000

%

(1)

2056

August

 

Junior subordinated notes

 

Public

 

Dominion Energy

 

 

700

 

 

 

6.200

%

(1)

2056

September

 

Senior notes

 

Public

 

Virginia Power

 

 

825

 

 

 

4.900

%

 

2035

September

 

Senior notes

 

Public

 

Virginia Power

 

 

875

 

 

 

5.600

%

 

2055

October

 

Junior subordinated notes

 

Public

 

Dominion Energy

 

 

625

 

 

 

6.000

%

(1)

2056

October

 

Junior subordinated notes

 

Public

 

Dominion Energy

 

 

625

 

 

 

6.200

%

(1)

2056

Total issuances and borrowings

 

 

 

 

 

$

8,675

 

 

 

 

 

 

(1)
Rate subject to periodic reset as described in Note 18 to the Consolidated Financial Statements.

Dominion Energy currently meets the definition of a well-known seasoned issuer under SEC rules governing the registration, communication and offering processes under the Securities Act of 1933, as amended. The rules provide for a streamlined shelf registration process to provide registrants with timely access to capital. This allows Dominion Energy to use automatic shelf registration statements to register any offering of securities, other than those for exchange offers or business combination transactions.

Dominion Energy anticipates, excluding potential opportunistic financings, issuing between approximately $6.0 billion and $9.5 billion of long-term debt during 2026. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures, net of reimbursements from Stonepeak for the CVOW Commercial Project, and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends and any borrowings made from unused capacity of Dominion Energy’s credit facilities discussed above. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

Repayments, Repurchases and Redemptions of Long-Term Debt

Dominion Energy may from time to time reduce its outstanding debt and level of interest expense through redemption of debt securities prior to maturity or repurchases of debt securities in the open market, in privately negotiated transactions, through tender offers or otherwise.

The following long-term debt was repaid, repurchased or redeemed in 2025:

Month

 

Type

 

Entity

 

Principal

 

(1)

 

Rate

 

Stated Maturity

 

 

 

 

 

 

(millions)

 

 

 

 

 

 

Debt scheduled to mature in 2025

 

Multiple

 

$

1,663

 

 

 

various

 

 

Early repurchases and redemptions

 

 

 

 

 

 

 

 

 

 

None

 

 

 

 

 

 

 

 

 

 

 

 

Total repayments, repurchases and redemptions

 

 

 

 

 

$

1,663

 

 

 

 

 

 

(1)
Total amount redeemed prior to maturity, if any, includes remaining principal plus accrued interest.

See Note 18 to the Consolidated Financial Statements for additional information regarding scheduled maturities of Dominion Energy’s long-term debt, including related average interest rates.

 

58


 

 

 

 

Remarketing of Long-Term Debt

In September 2025, Virginia Power remarketed two series of tax-exempt bonds, with an aggregate outstanding principal of $222 million to new investors. Each series of bonds bear interest at a coupon of 3.125% until October 2030, after which they will bear interest at a market rate to be determined at that time.

In 2026, Dominion Energy does not expect to remarket any of its tax-exempt bonds.

Credit Ratings

Dominion Energy’s credit ratings affect its liquidity, cost of borrowing under credit facilities and collateral posting requirements under commodity contracts, as well as the rates at which it is able to offer its debt securities. The credit ratings for Dominion Energy are affected by its financial profile, mix of regulated and nonregulated businesses and respective cash flows, changes in methodologies used by the rating agencies and event risk, if applicable, such as major acquisitions or dispositions.

Dominion Energy’s credit ratings and outlooks at February 16, 2026 are as follows:

 

 

Moody’s

 

Standard
& Poor’s

 

Fitch

Corporate/Issuer

 

Baa2

 

BBB+

 

BBB+

Senior unsecured debt securities

 

Baa2

 

BBB

 

BBB+

Junior subordinated notes

 

Baa3

 

BBB-

 

BBB-

Preferred stock

 

Ba1

 

BBB-

 

BBB-

Commercial paper

 

P-2

 

A-2

 

F2

Outlook

 

Negative

 

Stable

 

Stable

A credit rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. Ratings are subject to revision or withdrawal at any time by the applicable rating organization.

Financial Covenants

As part of borrowing funds and issuing both short-term and long-term debt or preferred securities, Dominion Energy must enter into enabling agreements. These agreements contain customary covenants that, in the event of default, could result in the acceleration of principal and interest payments; restrictions on distributions related to capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments; and in some cases, the termination of credit commitments unless a waiver of such requirements is agreed to by the lenders/security holders. These provisions are customary, with each agreement specifying which covenants apply. These provisions are not necessarily unique to Dominion Energy.

Dominion Energy is required to pay annual commitment fees to maintain its joint revolving credit facility. In addition, the credit agreement contains various terms and conditions that could affect Dominion Energy’s ability to borrow under the facility. They include a maximum debt to total capital ratio, which is also included in Dominion Energy’s $1.0 billion 364-day revolving credit agreement, Dominion Energy’s Sustainability Revolving Credit Agreement and Dominion Energy’s 364-day term loan facility entered in February 2026, and cross-default provisions.

At December 31, 2025, the calculated total debt to total capital ratio, pursuant to the terms of the agreements, was as follows:

Company

 

Maximum
Allowed Ratio

 

 

Actual
Ratio
(1)

 

Dominion Energy

 

 

67.5

%

 

 

53.5

%

(1)
Indebtedness as defined by the agreements excludes certain junior subordinated notes and securitization bonds reflected as long-term debt as well as AOCI reflected as equity in the Consolidated Balance Sheets. In addition, in April 2025, the calculation of equity utilized in the total debt to total capital ratio was updated for a technical clarification for the joint revolving credit facility and the Sustainability Revolving Credit Agreement.

If Dominion Energy or any of its material subsidiaries failed to make payment on various debt obligations in excess of $250 million, or $150 million for DESC, the lenders could require the defaulting company, if it is a borrower under Dominion Energy’s joint revolving credit facility, to accelerate its repayment of any outstanding borrowings and the lenders could terminate their commitments, if any, to lend funds to that company under the credit facility. In addition, if the defaulting company is Virginia Power, Dominion Energy’s obligations to repay any outstanding borrowing under the credit facility could also be accelerated and the lenders’ commitments to Dominion Energy could terminate.

Dominion Energy monitors compliance with these covenants on a regular basis in order to ensure that events of default will not occur. At December 31, 2025, there have been no events of default under Dominion Energy’s covenants.

Common Stock, Preferred Stock and Other Equity Securities

Issuances of Equity Securities

Dominion Energy maintains Dominion Energy Direct® and a number of employee savings plans through which contributions may be invested in Dominion Energy’s common stock. These shares may either be newly issued or purchased on the open market with proceeds contributed to these plans. In August 2023, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans, and in March 2024, began issuing new shares of common stock. During 2025, Dominion Energy issued 2.5 million of such shares and received proceeds of $139 million.

Dominion Energy also maintains sales agency agreements to effect sales under at-the-market programs. Under the sales agency agreements, Dominion Energy is able, from time to time, to offer and sell shares of its common stock through the sales agents or enter into one or more forward sale agreements with respect to shares of its common stock. See Note 20 to the Consolidated Financial Statements for additional information.

During the first quarter of 2025, Dominion Energy entered into forward sale agreements under its May 2024 at-the-market program for approximately 8.8 million shares of its common stock at a weighted-average initial forward price of $55.34 per share. Including the forward sale agreements entered into from September through December 2024, Dominion Energy has entered into forward sale agreements for approximately 18.5 million shares of its common stock at a weighted-average initial forward price of $56.62 per share. In December 2025, Dominion Energy provided

59


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

notice to elect physical settlement of these forward sale agreements and in December 2025 settled the agreements at a weighted-average final forward price of $55.26 per share and received total proceeds of $1.0 billion. During the third quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 2.4 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $59.91 per share.

In February 2025, Dominion Energy entered into a new at-the-market-program, and during the second quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 11.0 million shares of its common stock expected to be settled in the fourth quarter of 2026 at a weighted-average initial forward price of $55.83 per share. During the third quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 9.6 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $61.11 per share. In December 2025, Dominion Energy provided notice to elect physical settlement of approximately 5.4 million shares under the forward sales agreements entered into during the third quarter of 2025 and in December 2025 settled the agreements at a weighted-average final forward price of $60.44 per share and received total proceeds of $325 million.

Dominion Energy expects to issue equity through programs such as Dominion Energy Direct® and employee savings plans of approximately $150 million in 2026. In addition, Dominion Energy expects to issue equity, excluding potential opportunistic offerings, through at-the-market programs of approximately $1.6 billion to $1.8 billion in 2026, inclusive of approximately $1.0 billion from the settlement of forward-sale agreements discussed above. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

Repurchases and Redemptions of Equity Securities

In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock. This repurchase program does not include a specific timetable or price or volume targets and may be modified, suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors. At December 31, 2025, Dominion Energy had $920 million of available capacity under this authorization.

Dominion Energy does not plan to repurchase shares of common stock in 2026, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which does not impact the available capacity under its stock repurchase authorization.

Capital Expenditures

See Note 26 to the Consolidated Financial Statements for Dominion Energy’s historical capital expenditures by segment. In February 2026, Dominion Energy announced an updated $64.7 billion capital expenditure plan for 2026 through 2030, which includes the impact of Stonepeak’s 50% noncontrolling interest in the CVOW Commercial Project, representing significant investments in reliable, affordable and increasingly clean energy to advance an “all-of-the-above” strategy to address projected demand growth.

Dominion Energy’s total planned capital expenditures for each segment for the next five years are presented in the table below:

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

Total

 

(billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion
   Energy
   Virginia
(1)

 

$

9.6

 

 

$

9.2

 

 

$

10.6

 

 

$

13.7

 

 

$

12.7

 

 

$

55.8

 

Dominion
   Energy South
   Carolina

 

 

1.5

 

 

 

1.6

 

 

 

1.7

 

 

 

1.5

 

 

 

1.4

 

 

 

7.6

 

Contracted
   Energy

 

 

0.4

 

 

 

0.4

 

 

 

0.3

 

 

 

0.3

 

 

 

0.3

 

 

 

1.7

 

Corporate and
   Other segment

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.6

 

Total(2)

 

$

11.5

 

 

$

11.3

 

 

$

12.6

 

 

$

15.6

 

 

$

14.6

 

 

$

65.7

 

(1)
Includes $1.3 billion in 2026, $0.3 billion in 2027, $0.1 billion in 2028, $0.2 billion in 2029 and $0.1 billion in 2030 for 100% of the CVOW Commercial Project.
(2)
Totals may not foot due to rounding.

Dominion Energy’s planned growth expenditures are subject to approval by the Board of Directors as well as potentially by regulatory bodies based on the individual project and are expected to include significant investments in support of its “all-of-the-above” strategy. See Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy in Item 1. Business for additional discussion of various significant capital projects currently under development. The above estimates are based on a capital expenditures plan reviewed and endorsed by Dominion Energy’s Board of Directors in early 2026 and are subject to continuing review and adjustment. Actual capital expenditures may vary from these estimates. Dominion Energy may also choose to postpone or cancel certain planned capital expenditures in order to mitigate the need for future debt financings and equity issuances.

Dividends

Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares. In December 2025, Dominion Energy’s Board of Directors established an annual dividend rate for 2026 of $2.67 per share of common stock, consistent with the 2025 rate. Dividends are subject to declaration by the Board of Directors. In January 2026, Dominion Energy’s Board of Directors declared dividends payable in March 2026 of 66.75 cents per share of common stock.

See Note 19 to the Consolidated Financial Statements for a discussion of Dominion Energy’s outstanding preferred stock and associated dividend rates.

Subsidiary Dividend Restrictions

Certain of Dominion Energy’s subsidiaries may, from time to time, be subject to certain restrictions imposed by regulators or financing arrangements on their ability to pay dividends, or to advance or repay funds, to Dominion Energy. At December 31, 2025, these restrictions did not have a significant impact on Dominion Energy’s ability to pay dividends on its common or preferred stock or meet its other cash obligations.

See Note 21 to the Consolidated Financial Statements for a description of such restrictions and any other restrictions on Dominion Energy’s ability to pay dividends.

60


 

 

 

Collateral and Credit Risk

Collateral requirements are impacted by capital projects, commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties. In connection with commodity hedging activities, Dominion Energy is required to provide collateral to counterparties under some circumstances. Under certain collateral arrangements, Dominion Energy may satisfy these requirements by electing to either deposit cash, post letters of credit or, in some cases, utilize other forms of security. From time to time, Dominion Energy may vary the form of collateral provided to counterparties after weighing the costs and benefits of various factors associated with the different forms of collateral. These factors include short-term borrowing and short-term investment rates, the spread over these short-term rates at which Dominion Energy can issue commercial paper, balance sheet impacts, the costs and fees of alternative collateral postings with these and other counterparties and overall liquidity management objectives.

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a summary of Dominion Energy’s credit exposure at December 31, 2025 for these activities. Gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

 

 

 

Gross
Credit
Exposure

 

 

Credit
Collateral

 

 

Net
Credit
Exposure

 

(millions)

 

 

 

 

 

 

 

 

 

Investment grade(1)

 

$

41

 

 

$

 

 

$

41

 

Non-investment grade(2)

 

 

1

 

 

 

 

 

 

1

 

No external ratings:

 

 

 

 

 

 

 

 

 

Internally rated—
   investment grade
(3)

 

 

175

 

 

 

10

 

 

 

165

 

Internally rated—non-
   investment grade
(4)

 

 

19

 

 

 

3

 

 

 

16

 

Total(5)

 

$

236

 

 

$

13

 

 

$

223

 

 

(1)
Designations as investment grade are based upon minimum credit ratings assigned by Moody’s and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 12% of the total net credit exposure.
(2)
The five largest counterparty exposures, combined, for this category represented approximately 1% of the total net credit exposure.
(3)
The five largest counterparty exposures, combined, for this category represented approximately 74% of the total net credit exposure.
(4)
The five largest counterparty exposures, combined, for this category represented approximately 6% of the total net credit exposure.
(5)
Excludes long-term purchase power agreements entered to satisfy legislative or state regulatory commission requirements.

Fuel and Other Purchase Commitments

Dominion Energy is party to various contracts for fuel and purchased power commitments related to both its regulated and nonregulated operations. Total estimated costs at December 31, 2025 for such commitments are presented in the table below. These costs represent estimated minimum obligations for various purchased power and capacity agreements and actual costs may differ from amounts presented below depending on actual quantities purchased and prices paid.

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased
   electric
   capacity
   for utility
   operations

$

85

 

 

$

86

 

 

$

85

 

 

$

84

 

 

$

85

 

$

425

 

Fuel
   commitments
   for utility
   operations

 

1,305

 

 

 

675

 

 

 

539

 

 

 

418

 

 

 

492

 

 

3,429

 

Fuel
   commitments
   for
   nonregulated
   operations

 

118

 

 

 

146

 

 

 

55

 

 

 

109

 

 

 

94

 

 

 

522

 

Pipeline
   transportation
   and storage

 

 

394

 

 

 

342

 

 

 

333

 

 

 

287

 

 

 

284

 

 

 

1,640

 

Total

$

1,902

 

 

$

1,249

 

 

$

1,012

 

 

$

898

 

 

$

955

 

 

$

6,016

 

 

 

Other Material Cash Requirements

In addition to the financing arrangements discussed above, Dominion Energy is party to numerous contracts and arrangements obligating it to make cash payments in future years. Dominion Energy expects current liabilities to be paid within the next twelve months. In addition to the items already discussed, the following represent material expected cash requirements recorded on Dominion Energy’s Consolidated Balance Sheets at December 31, 2025. Such obligations include:

Operating and finance lease obligations – See Note 15 to the Consolidated Financial Statements;
Regulatory liabilities – See Note 12 to the Consolidated Financial Statements;
AROs – See Note 14 to the Consolidated Financial Statements;
Employee benefit plan obligations – See Note 22 to the Consolidated Financial Statements; and
Data center customer deposits – See Note 2 to the Consolidated Financial Statements.

In addition, Dominion Energy is party to contracts and arrangements which may require it to make material cash payments in future years that are not recorded on its Consolidated Balance Sheets. Such obligations include:

Guarantees – See Note 23 to the Consolidated Financial Statements.

 

Future Issues and Other Matters

See Item 1. Business and Notes 10, 13 and 23 to the Consolidated Financial Statements for additional information on various environmental, regulatory, legal and other matters that may impact Dominion Energy’s future results of operations, financial condition and/or cash flows.

Future Environmental Regulations

Climate Change

The federal government and states in which Dominion Energy operates have announced various commitments to achieving carbon reduction goals. In February 2021, the U.S. rejoined the Paris Agreement, which establishes a universal framework for addressing GHG emissions. In January 2026, the U.S. completed its withdrawal from the Paris Agreement. States may enact legislation relating to climate change matters such as the reduction of GHG

61


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

emissions and renewable energy portfolio standards, similar to the VCEA. To the extent legislation is enacted at the federal or state level that is more restrictive than the VCEA and/or Dominion Energy’s commitment to achieving net zero emissions by 2050, compliance with such legislation could have a material impact to Dominion Energy’s financial condition and/or cash flows.

Inflation Reduction Act

The IRA includes provisions which impose an annual fee for waste methane emissions from the oil and natural gas industry beginning with emissions reported in calendar year 2024 to the extent that an entity’s emissions exceed a stated threshold, with implementation to be addressed by future rulemaking by the EPA. Pending the completion of such rulemaking, Dominion Energy currently does not expect these provisions to materially affect its future results of operations, financial condition and/or cash flows.

Proposed and/or Recently Issued EPA Rules

In May 2024, the EPA released a final rule to tighten aspects of the Mercury and Air Toxics Standards Risk and Technology Review, including the reduction of emissions limits for filterable particulate matter, and requiring the use of continuous emissions monitoring systems to demonstrate compliance. In June 2025, the EPA released a proposed rule repealing the majority of the May 2024 final rule. Additionally in May 2024, the EPA finalized a package of rules designed to reduce CO2 emissions from certain fossil fuel-fired electric generating units. The final rule set standards of performance and emission guidelines for CO2 emissions from new and reconstructed gas-fired combustion turbines and modified coal-fired steam generating units. The rulemaking package also included emission guidelines, including emission limits, for existing coal, oil and gas-fired steam generating units. In June 2025, the EPA released a proposed rule repealing all greenhouse gas emissions standards from fossil fuel-fired power plants. As an alternative, the EPA simultaneously released a proposed rule eliminating the best system emission reduction determinations, presumptive standards of performance and all related requirements in the emission guidelines for existing steam generating units (including modified coal-fired steam generating units) as well as carbon sequestration requirements for new natural gas-fired, baseload combustion turbines. In addition, in March 2024, the EPA published a final rule strengthening the national air quality annual standard for fine particulate matter. Further, Dominion Energy anticipates that the EPA will release additional rulemakings as part of an overall strategy to identify and mitigate PFAS exposure, beyond the national drinking water standards for PFAS issued in April 2024. Until the EPA ultimately takes final action on the proposed rulemakings and publishes all final rules in the federal register, Dominion Energy is unable to predict whether or to what extent the new rules will ultimately require additional controls or other actions. The effects of these proposed rulemakings could have a material impact on Dominion Energy’s financial condition and cash flows.

Dodd-Frank Act

The CEA, as amended by Title VII of the Dodd-Frank Act, requires certain over-the counter derivatives, or swaps, to be cleared through a derivatives clearing organization and, if the swap is subject to a clearing requirement, to be executed on a designated contract market or swap execution facility. Non-financial entities that use swaps to hedge or mitigate commercial risk may elect the end-user exception to the CEA’s clearing requirements. Dominion Energy utilizes the end-user exception with respect to its swaps. If, as a result of changes to the rulemaking process, Dominion Energy can no longer utilize the end-user exception or otherwise becomes subject to mandatory clearing, exchange trading or margin requirements, it could be subject to higher costs due to decreased market liquidity or increased margin payments. In addition, Dominion Energy’s swap dealer counterparties may attempt to pass-through additional trading costs in connection with changes to the rulemaking process. Due to the evolving rulemaking process, Dominion Energy is currently unable to assess the potential impact of the Dodd-Frank Act’s derivative-related provisions on its financial condition, results of operations or cash flows.

North Anna

Virginia Power is considering the construction of a third nuclear unit at a site located at North Anna. If Virginia Power decides to build a new unit, it would require a Combined Construction Permit and Operating License from the NRC, approval of the Virginia Commission and certain environmental permits and other approvals. In June 2017, the NRC issued the Combined Construction Permit and Operating License. Virginia Power has not yet committed to building a new nuclear unit at North Anna.

Future Federal Income Tax Guidance

The IRA, among other things, provides for investment and production tax credits for clean energy technologies until at least 2032, provides for transferability of certain tax credits and imposes a 15% alternative minimum tax on corporations with GAAP net income greater than $1 billion, as adjusted for certain items. Entities that are subject to the alternative minimum tax may use tax credits to reduce the liability by up to 75% and will receive a tax credit carryforward with an indefinite life that can be claimed against regular tax in future years. In 2025, the OBBBA modified many of the tax credits for renewable and clean energy technologies created under the IRA. Provisions include the termination of the production and investment tax credits for wind and solar for facilities placed in service after 2027 (except for certain facilities that commence construction by July 2026 and meet certain safe harbor requirements) and a phase out of other production and investment tax credits for certain clean energy facilities, including battery storage and small modular reactors, for projects beginning construction through 2035, after which the credits are fully phased out. The OBBBA restricts the availability of tax credits for certain prohibited foreign entities and projects receiving material assistance from certain foreign entities as well as the extension of the production tax credit for renewable natural gas sold through 2029. Dominion Energy has considered the IRA and the OBBBA in recording its provision for income taxes and continues to evaluate the provisions of these tax laws, the ultimate impact of which is subject to pending guidance and interpretations, the effects of which could be material to Dominion Energy’s results of operations, financial condition and/or cash flows; existing regulatory frameworks provide rate recovery mechanisms that could substantially mitigate such impacts for its regulated electric utilities.

62


 

 

 

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The matters discussed in this Item may contain “forward-looking statements” as described in the introductory paragraphs of Item 7. MD&A. The reader’s attention is directed to those paragraphs and Item 1A. Risk Factors for discussion of various risks and uncertainties that may impact the Companies.

Market Risk Sensitive Instruments and Risk Management

The Companies’ financial instruments, commodity contracts and related financial derivative instruments are exposed to potential losses due to adverse changes in commodity prices, interest rates, foreign currency exchange rates and equity securities prices as described below. Commodity price risk is present in the Companies’ electric operations and Dominion Energy’s natural gas procurement and marketing operations due to the exposure to market shifts in prices received and paid for electricity, natural gas and other commodities. The Companies use commodity derivative contracts to manage price risk exposures for these operations. Interest rate risk is generally related to their outstanding debt and future issuances of debt. In addition, the Companies are exposed to investment price risk through various portfolios of equity and debt securities. The Companies’ exposure to foreign currency exchange rate risk is related to certain fixed price contracts associated with the CVOW Commercial Project which it manages through foreign currency exchange rate derivatives. The contracts include services denominated in currencies other than the U.S. dollar for approximately €2.6 billion and 5.1 billion kr. In addition, certain of the fixed price contracts, approximately €0.7 billion, contain commodity indexing provisions linked to steel.

The following sensitivity analyses estimate the potential loss of future earnings or fair value from market risk sensitive instruments over a selected time period due to a 10% change in commodity prices, interest rates or foreign currency exchange rates.

Commodity Price Risk

To manage price risk, the Companies hold commodity-based derivative instruments held for non-trading purposes associated with purchases and sales of electricity, natural gas and other energy-related products.

The derivatives used to manage commodity price risk are executed within established policies and procedures and may include instruments such as futures, forwards, swaps, options and FTRs that are sensitive to changes in the related commodity prices. For sensitivity analysis purposes, the hypothetical change in market prices of commodity-based derivative instruments is determined based on models that consider the market prices of commodities in future periods, the volatility of the market prices in each period, as well as the time value factors of the derivative instruments. Prices and volatility are principally determined based on observable market prices.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $15 million and a hypothetical 10% increase in commodity prices would have resulted in a decrease of $18 million in the fair value of Dominion Energy’s commodity-based derivative instruments at December 31, 2025 and 2024, respectively.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $71 million and $15 million in the fair value of Virginia Power’s commodity-based derivative instruments at December 31, 2025 and 2024, respectively.

The impact of a change in energy commodity prices on the Companies’ commodity-based derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net losses from commodity-based financial derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction, such as revenue from physical sales of the commodity.

Interest Rate Risk

The Companies manage their interest rate risk exposure predominantly by maintaining a balance of fixed and variable rate debt. For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in a $10 million and $12 million decrease in earnings at December 31, 2025 and 2024, respectively. For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in a $7 million decrease in earnings at both December 31, 2025 and 2024.

The Companies also use interest rate derivatives, including forward-starting swaps, interest rate swaps and interest rate lock agreements to manage interest rate risk. At December 31, 2025, Dominion Energy and Virginia Power had $10.7 billion and $8.1 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding in 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 their long and short positions. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $459 million and $382 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2025. At December 31, 2024, Dominion Energy and Virginia Power had $10.8 billion and $3.8 billion, respectively, of these interest rate derivatives outstanding in 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 their long and short positions. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $157 million and $155 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2024.

The impact of a change in interest rates on the Companies’ interest rate-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from interest rate derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Foreign Currency Exchange Rate Risk

The Companies utilize foreign currency exchange rate swaps to economically hedge the foreign currency exchange risk associated with fixed price contracts related to the CVOW Commercial Project denominated in foreign currencies. At December 31, 2025 and 2024, Dominion Energy had €0.9 billion and €1.1 billion,

63


Management’s Discussion and Analysis of Financial Condition and Results of Operations, Continued

 

 

respectively, in aggregate notional amounts of these foreign currency forward purchase agreements outstanding. A hypothetical 10% increase in the U.S. dollar to Euro exchange rate would have resulted in a decrease of $35 million and $106 million in the fair value of Dominion Energy’s foreign currency swaps at December 31, 2025 and 2024, respectively.

The impact of a change in exchange rates on the Companies’ foreign currency-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from foreign exchange derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Investment Price Risk

The Companies are subject to investment price risk due to securities held as investments in nuclear decommissioning and rabbi trust funds that are managed by third-party investment managers. These trust funds primarily hold marketable securities that are reported in the Companies’ Consolidated Balance Sheets at fair value.

Dominion Energy recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $1.1 billion for both the years ended December 31, 2025 and 2024. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Dominion Energy recorded, in AOCI and regulatory liabilities, a net increase in unrealized (losses) gains on debt investments of $41 million and $(28) million for the years ended December 31, 2025 and 2024, respectively.

Virginia Power recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $555 million and $580 million for the years ended December 31, 2025 and 2024, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Virginia Power recorded, in AOCI and regulatory liabilities, a net increase in unrealized gains (losses) on debt investments of $23 million and $(10) million for the years ended December 31, 2025 and 2024, respectively.

Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power employees participate in these plans. Dominion Energy’s pension and other postretirement plan assets experienced aggregate actual returns of $1.2 billion and $738 million in 2025 and 2024, respectively, compared to expected returns of $835 million and $982 million, respectively. Differences between actual and expected returns on plan assets are immediately recognized in earnings annually in the fourth quarter of each fiscal year as well as whenever a plan is determined to qualify for a remeasurement. A hypothetical 0.25% decrease in the expected long-term rate of return on plan assets would have had a $28 million and $31 million impact in the years ending December 31, 2025 and 2024, respectively, to the expected returns on plan assets.

Risk Management Policies

The Companies have established operating procedures with corporate management to ensure that proper internal controls are maintained. In addition, Dominion Energy has established an independent function at the corporate level to monitor compliance with the credit and commodity risk management policies of all subsidiaries, including Virginia Power. Dominion Energy maintains credit policies that include the evaluation of a prospective counterparty’s financial condition, collateral requirements where deemed necessary and the use of standardized agreements that facilitate the netting of cash flows associated with a single counterparty. In addition, Dominion Energy also monitors the financial condition of existing counterparties on an ongoing basis. Based on these credit policies and the Companies’ December 31, 2025 provision for credit losses, management believes that it is unlikely that a material adverse effect on the Companies’ financial position, results of operations or cash flows would occur as a result of counterparty nonperformance.

 

64


Item 8. Financial Statements and Supplementary Data

 

 

 

 

 

 

Page

Number

 

 

Dominion Energy, Inc.

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)

66

Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023

68

Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023

69

Consolidated Balance Sheets at December 31, 2025 and 2024

70

Consolidated Statements of Equity at December 31, 2025, 2024 and 2023 and for the years then ended

72

Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023

73

 

 

Virginia Electric and Power Company

 

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)

74

Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023

76

Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023

77

Consolidated Balance Sheets at December 31, 2025 and 2024

78

Consolidated Statements of Equity at December 31, 2025, 2024 and 2023 and for the years then ended

80

Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023

81

 

 

Combined Notes to Consolidated Financial Statements

82

 

 

65


 

 

 

 

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Dominion Energy, Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Dominion Energy, Inc. and subsidiaries ("Dominion Energy") at December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Dominion Energy at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), Dominion Energy’s internal control over financial reporting at December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 23, 2026, expressed an unqualified opinion on Dominion Energy’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of Dominion Energy’s management. Our responsibility is to express an opinion on Dominion Energy’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Dominion Energy in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Assets and Liabilities - Impact of Rate Regulation on the Consolidated Financial Statements — Refer to Notes 2, 12 and 13 to the Consolidated Financial Statements

Critical Audit Matter Description

Dominion Energy, through its regulated electric and gas subsidiaries, is subject to rate regulation by certain state public utility commissions and the Federal Energy Regulatory Commission (“FERC”) (collectively, the “relevant commissions”) which have jurisdiction with respect to the rates of electric and gas utility companies. Management has determined its rate-regulated subsidiaries meet the requirements under accounting principles generally accepted in the United States of America to apply the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant and equipment, net; regulatory assets; regulatory liabilities; operating revenues; electric fuel and other energy-related purchases; purchased electric capacity; purchased gas; other operations and maintenance expense; depreciation and amortization expense; and impairment of assets and other charges, collectively, the “financial statement impacts of rate regulation.”

Revenue provided by Dominion Energy’s electric transmission, distribution and generation operations and its gas distribution operations is primarily based on rates approved by the relevant commissions. Further, Virginia Electric and Power Company’s (“Virginia Power”) retail base rates, terms and conditions for generation and distribution services to customers in Virginia are reviewed by the Virginia State Corporation Commission (the “Virginia Commission”) in a proceeding that involves the determination of Virginia Power’s actual earned return on equity (“ROE”) during a historic test period, and determination of Virginia Power’s authorized ROE prospectively. Under certain circumstances, Virginia Power may be required to credit a portion of its earnings to customers.

When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds or other benefits through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. In addition, a loss is recognized if it becomes probable that capital expenditures will be disallowed for ratemaking purposes and if a reasonable estimate of the amount of the disallowance can be made. Dominion Energy evaluates whether recovery of its regulatory assets through future rates is probable as well as whether a regulatory liability due to customers is probable and makes various assumptions in its analyses. These analyses are generally based on orders issued by regulatory commissions, legislation and judicial actions; past experience; discussions with applicable regulatory authorities and legal counsel; estimated construction costs; forecasted earnings; and considerations around the likelihood of impacts from events such as unusual weather conditions, extreme weather events and other natural disasters, and unplanned outages of facilities.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to

66


 

 

 

support its assertions about the financial statement impacts of rate regulation. Management judgments include assessing the likelihood of (1) recovery of its regulatory assets through future rates and (2) whether a regulatory liability is due to customers. Given management’s accounting judgments are based on assumptions about the outcome of future decisions by the relevant commissions, auditing these judgments required specialized knowledge of the accounting for rate regulation and the rate setting process due to its inherent complexities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the assessment of whether recovery of regulatory assets through future rates or a regulatory liability due to customers is probable included the following, among others:

We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) recovery of regulatory assets through future rates, and (2) whether a regulatory liability is due to customers. We also tested the effectiveness of management’s controls over the initial recognition of amounts as regulatory assets or liabilities; and the monitoring and evaluation of regulatory and legislative developments that may impact the assessment of whether recovery of regulatory assets through future rates or a regulatory liability due to customers is probable.
We evaluated Dominion Energy’s disclosures related to the financial statement impacts of rate regulation.
We read and evaluated orders issued by the relevant commissions, as well as relevant regulatory statutes, interpretations, procedural memorandums, existing laws and other publicly available information to assess whether this external information was properly considered by management in concluding upon the financial statement impacts of rate regulation.
We considered the likelihood of (1) recovery of regulatory assets through future rates and (2) whether a regulatory liability is due to customers based on precedents established by the relevant commissions’ previous orders and Dominion Energy’s past experience with the relevant commissions, which included testing Dominion Energy’s recorded charges for costs not expected to be recovered from customers on the CVOW Commercial Project.
For regulatory matters in process, we inspected associated documents and testimony filed with the relevant commissions for any evidence that might contradict management’s assertions.
We read and analyzed the minutes of the Boards of Directors of Dominion Energy and Dominion Energy’s rate-regulated subsidiaries for discussions of changes in legal, regulatory, or business factors which could impact management’s conclusions with respect to the financial statement impacts of rate regulation.

/s/ Deloitte & Touche LLP

Richmond, Virginia

February 23, 2026

We have served as Dominion Energy’s auditor since 1988.

67


Dominion Energy, Inc.

Consolidated Statements of Income

 

 

 

Year Ended December 31,

 

2025

 

 

2024

 

 

2023

 

(millions, except per share amounts)

 

 

 

 

 

 

 

 

 

Operating Revenue

 

$

16,506

 

 

$

14,459

 

 

$

14,393

 

Operating Expenses

 

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

4,489

 

 

 

3,614

 

 

 

3,935

 

Purchased electric capacity

 

 

82

 

 

 

74

 

 

 

55

 

Purchased gas

 

 

297

 

 

 

260

 

 

 

285

 

Other operations and maintenance

 

 

3,547

 

 

 

3,588

 

 

 

3,133

 

Depreciation and amortization

 

 

2,387

 

 

 

2,345

 

 

 

2,580

 

Other taxes

 

 

773

 

 

 

731

 

 

 

684

 

Impairment of assets and other charges

 

 

517

 

 

 

600

 

 

 

307

 

Total operating expenses

 

 

12,092

 

 

 

11,212

 

 

 

10,979

 

Income from operations

 

 

4,414

 

 

 

3,247

 

 

 

3,414

 

Other income (expense)

 

 

1,219

 

 

 

841

 

 

 

996

 

Interest and related charges

 

 

2,022

 

 

 

1,893

 

 

 

1,679

 

Income from continuing operations including noncontrolling interests before income tax expense

 

 

3,611

 

 

 

2,195

 

 

 

2,731

 

Income tax expense

 

 

532

 

 

 

411

 

 

 

644

 

Net Income From Continuing Operations Including Noncontrolling Interests

 

 

3,079

 

 

 

1,784

 

 

 

2,087

 

Net Income (Loss) From Discontinued Operations Including Noncontrolling Interests(1)

 

 

(14

)

 

 

197

 

 

 

(125

)

Net Income Including Noncontrolling Interests

 

 

3,065

 

 

 

1,981

 

 

 

1,962

 

Noncontrolling Interests

 

 

67

 

 

 

(53

)

 

 

 

Net Income Attributable to Dominion Energy

 

$

2,998

 

 

$

2,034

 

 

$

1,962

 

Amounts Attributable to Dominion Energy

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

3,012

 

 

$

1,837

 

 

$

2,087

 

Net income (loss) from discontinued operations

 

 

(14

)

 

 

197

 

 

 

(125

)

Net income attributable to Dominion Energy

 

$

2,998

 

 

$

2,034

 

 

$

1,962

 

EPS - Basic

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

3.48

 

 

$

2.09

 

 

$

2.40

 

Net income (loss) from discontinued operations

 

 

(0.02

)

 

 

0.24

 

 

 

(0.15

)

Net income attributable to Dominion Energy

 

$

3.46

 

 

$

2.33

 

 

$

2.25

 

EPS - Diluted

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

3.47

 

 

$

2.09

 

 

$

2.40

 

Net income (loss) from discontinued operations

 

 

(0.02

)

 

 

0.24

 

 

 

(0.15

)

Net income attributable to Dominion Energy

 

$

3.45

 

 

$

2.33

 

 

$

2.25

 

 

(1)
Includes income tax expense of $5 million, $31 million and $1.3 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

68


Dominion Energy, Inc.

Consolidated Statements of Comprehensive Income

 

 

 

Year Ended December 31,

 

2025

 

 

2024

 

 

2023

 

(millions)

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

3,065

 

 

$

1,981

 

 

$

1,962

 

Other comprehensive income (loss), net of taxes:

 

 

 

 

 

 

 

 

 

Net deferred gains (losses) on derivatives-hedging activities, net of $(2), $(4) and $1 tax

 

 

5

 

 

 

13

 

 

 

 

Changes in unrealized net gains (losses) on investment securities, net of $(11), $13 and $(27) tax

 

 

15

 

 

 

(19

)

 

 

47

 

Changes in net unrecognized pension and other postretirement benefit costs (credits), net of $,
   $
1 and $ tax

 

 

 

 

 

(2

)

 

 

 

Amounts reclassified to net income (loss):

 

 

 

 

 

 

 

 

 

Net derivative (gains) losses-hedging activities, net of $(10), $(11) and $(10) tax

 

 

29

 

 

 

32

 

 

 

33

 

Net realized (gains) losses on investment securities, net of $2, $(3) and $3 tax

 

 

(5

)

 

 

8

 

 

 

(11

)

Net pension and other postretirement benefit costs (credits), net of $2, $4 and $5 tax

 

 

(10

)

 

 

(12

)

 

 

(13

)

Net earnings from equity method investees, net of $, $ and $(1) tax

 

 

 

 

 

 

 

 

3

 

Total other comprehensive income (loss)

 

 

34

 

 

 

20

 

 

 

59

 

Comprehensive income including noncontrolling interests

 

 

3,099

 

 

 

2,001

 

 

 

2,021

 

Comprehensive income (loss) attributable to noncontrolling interests

 

 

67

 

 

 

(53

)

 

 

 

Comprehensive income attributable to Dominion Energy

 

$

3,032

 

 

$

2,054

 

 

$

2,021

 

 

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

69


Dominion Energy, Inc.

Consolidated Balance Sheets

 

 

 

At December 31,

 

2025

 

 

2024

 

(millions)

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents(1)

 

$

250

 

 

$

310

 

Customer receivables (less allowance for doubtful accounts of $31 and $30)(1)

 

 

2,531

 

 

 

2,169

 

Tax receivables

 

 

434

 

 

 

 

Other receivables (less allowance for doubtful accounts of $3 and $2)(2)

 

 

446

 

 

 

358

 

Inventories:

 

 

 

 

 

 

Materials and supplies

 

 

1,541

 

 

 

1,360

 

Fossil fuel

 

 

392

 

 

 

382

 

Gas stored

 

 

24

 

 

 

22

 

Derivative assets

 

 

335

 

 

 

436

 

Margin deposit assets

 

 

181

 

 

 

104

 

Prepayments(1)

 

 

377

 

 

 

315

 

Regulatory assets(1)

 

 

1,380

 

 

 

992

 

Other(1)

 

 

180

 

 

 

165

 

Total current assets

 

 

8,071

 

 

 

6,613

 

Investments

 

 

 

 

 

 

Nuclear decommissioning trust funds

 

 

9,166

 

 

 

8,051

 

Investment in equity method affiliates

 

 

132

 

 

 

138

 

Other

 

 

378

 

 

 

361

 

Total investments

 

 

9,676

 

 

 

8,550

 

Property, Plant and Equipment

 

 

 

 

 

 

Property, plant and equipment(1)

 

 

106,315

 

 

 

94,844

 

Accumulated depreciation and amortization

 

 

(27,348

)

 

 

(25,982

)

Total property, plant and equipment, net

 

 

78,967

 

 

 

68,862

 

Deferred Charges and Other Assets

 

 

 

 

 

 

Goodwill

 

 

4,143

 

 

 

4,143

 

Pension and other postretirement benefit assets

 

 

2,658

 

 

 

2,240

 

Intangible assets, net

 

 

1,682

 

 

 

1,136

 

Derivative assets

 

 

623

 

 

 

963

 

Regulatory assets(1)

 

 

8,276

 

 

 

8,288

 

Other(1)

 

 

1,761

 

 

 

1,620

 

Total deferred charges and other assets

 

 

19,143

 

 

 

18,390

 

Total assets

 

$

115,857

 

 

$

102,415

 

(1)
See Note 16 for amounts attributable to VIEs.
(2)
See Note 9 for amounts attributable to related parties.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

70


 

 

 

 

 

At December 31,

 

2025

 

 

2024

 

(millions)

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Securities due within one year(1)

 

$

2,409

 

 

$

1,725

 

Supplemental credit facility borrowings

 

 

 

 

 

 

Short-term debt

 

 

2,457

 

 

 

2,500

 

Accounts payable

 

 

1,338

 

 

 

1,149

 

Accrued interest, payroll and taxes(1)

 

 

1,244

 

 

 

1,045

 

Derivative liabilities

 

 

111

 

 

 

207

 

Regulatory liabilities

 

 

542

 

 

 

579

 

Other(2)

 

 

2,343

 

 

 

2,084

 

Total current liabilities

 

 

10,444

 

 

 

9,289

 

Long-Term Debt

 

 

 

 

 

 

Long-term debt

 

 

36,778

 

 

 

33,034

 

Securitization bonds(1)

 

 

883

 

 

 

1,054

 

Junior subordinated notes

 

 

5,978

 

 

 

3,223

 

Supplemental credit facility borrowings

 

 

 

 

 

 

Other

 

 

436

 

 

 

214

 

Total long-term debt

 

 

44,075

 

 

 

37,525

 

Deferred Credits and Other Liabilities

 

 

 

 

 

 

Deferred income taxes

 

 

7,885

 

 

 

7,135

 

Deferred investment tax credits

 

 

1,591

 

 

 

1,070

 

Regulatory liabilities

 

 

9,072

 

 

 

8,761

 

Asset retirement obligations(1)

 

 

7,204

 

 

 

7,074

 

Derivative liabilities

 

 

134

 

 

 

305

 

Other

 

 

2,035

 

 

 

1,454

 

Total deferred credits and other liabilities

 

 

27,921

 

 

 

25,799

 

Total liabilities

 

 

82,440

 

 

 

72,613

 

Commitments and Contingencies (see Note 23)

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Preferred stock (See Note 19)

 

 

991

 

 

 

991

 

Common stock – no par(3)

 

 

25,892

 

 

 

24,383

 

Retained earnings

 

 

2,318

 

 

 

1,641

 

Accumulated other comprehensive loss

 

 

(118

)

 

 

(152

)

Shareholders’ equity

 

 

29,083

 

 

 

26,863

 

Noncontrolling interests

 

 

4,334

 

 

 

2,939

 

Total equity

 

 

33,417

 

 

 

29,802

 

Total liabilities and equity

 

$

115,857

 

 

$

102,415

 

(1)
See Note 16 for amounts attributable to VIEs.
(2)
See Note 9 for amounts attributable to related parties.
(3)
1.8 billion shares authorized; 879 million shares and 852 million shares outstanding at December 31, 2025 and 2024, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

71


Dominion Energy, Inc.

Consolidated Statements of Equity

 

 

 

 

Preferred Stock

 

Common Stock

 

 

 

 

 

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Retained Earnings

 

AOCI

 

Shareholders’
Equity

 

Noncontrolling
Interests

 

Total
Equity

 

(millions except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

2

 

$

1,783

 

 

835

 

$

23,605

 

$

2,276

 

$

(231

)

$

27,433

 

$

 

$

27,433

 

Net income including noncontrolling
   interests

 

 

 

 

 

 

 

 

 

1,962

 

 

 

 

1,962

 

 

 

 

1,962

 

Issuance of stock

 

 

 

 

 

2

 

 

94

 

 

 

 

 

 

94

 

 

 

 

94

 

Stock awards (net of change in
  unearned compensation)

 

 

 

 

 

1

 

 

30

 

 

 

 

 

 

30

 

 

 

 

30

 

Preferred stock dividends (See
   Note 19)

 

 

 

 

 

 

 

 

 

(81

)

 

 

 

(81

)

 

 

 

(81

)

Common dividends ($2.67 per common
   share)

 

 

 

 

 

 

 

 

 

(2,233

)

 

 

 

(2,233

)

 

 

 

(2,233

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

59

 

 

59

 

 

 

 

59

 

Other

 

 

 

 

 

 

 

(1

)

 

1

 

 

 

 

 

 

 

 

 

December 31, 2023

 

2

 

$

1,783

 

 

838

 

$

23,728

 

$

1,925

 

$

(172

)

$

27,264

 

$

 

$

27,264

 

Net income including noncontrolling
   interests

 

 

 

 

 

 

 

 

 

2,034

 

 

 

 

2,034

 

 

(53

)

 

1,981

 

Issuance of stock

 

 

 

 

 

14

 

 

732

 

 

 

 

 

 

732

 

 

 

 

732

 

Sale of noncontrolling interest in OSWP

 

 

 

 

 

 

 

(107

)

 

 

 

 

 

(107

)

 

2,615

 

 

2,508

 

Contributions from Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

377

 

 

377

 

Stock awards (net of change in
   unearned compensation)

 

 

 

 

 

 

 

30

 

 

 

 

 

 

30

 

 

 

 

30

 

Repurchase and redemption of
   preferred stock

 

(1

)

 

(791

)

 

 

 

 

 

 

 

 

 

(791

)

 

 

 

(791

)

Preferred stock dividends (See
   Note 19)

 

 

 

 

 

 

 

 

 

(78

)

 

 

 

(78

)

 

 

 

(78

)

Common dividends ($2.67 per common
   share)

 

 

 

 

 

 

 

 

 

(2,239

)

 

 

 

(2,239

)

 

 

 

(2,239

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

20

 

 

20

 

 

 

 

20

 

Other

 

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

(2

)

 

 

 

(2

)

December 31, 2024

 

1

 

$

991

 

 

852

 

$

24,383

 

$

1,641

 

$

(152

)

$

26,863

 

$

2,939

 

$

29,802

 

Net income including noncontrolling
   interests

 

 

 

 

 

 

 

 

 

2,998

 

 

 

 

2,998

 

 

67

 

 

3,065

 

Issuance of stock

 

 

 

 

 

27

 

 

1,488

 

 

 

 

 

 

1,488

 

 

 

 

1,488

 

Sale of noncontrolling interest in OSWP

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

 

 

 

(7

)

Contributions from Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,569

 

 

1,569

 

Distributions from OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(241

)

 

(241

)

Stock awards (net of change in
   unearned compensation)

 

 

 

 

 

 

 

28

 

 

 

 

 

 

28

 

 

 

 

28

 

Preferred stock dividends (See
   Note 19)

 

 

 

 

 

 

 

 

 

(44

)

 

 

 

(44

)

 

 

 

(44

)

Common dividends ($2.67 per
   common share)

 

 

 

 

 

 

 

 

 

(2,278

)

 

 

 

(2,278

)

 

 

 

(2,278

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

34

 

 

34

 

 

 

 

34

 

Other

 

 

 

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

1

 

December 31, 2025

 

1

 

$

991

 

 

879

 

$

25,892

 

$

2,318

 

$

(118

)

$

29,083

 

$

4,334

 

$

33,417

 

 

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

72


Dominion Energy, Inc.

Consolidated Statements of Cash Flows

 

 

 

Year Ended December 31,

 

2025

 

 

2024

 

 

2023

 

(millions)

 

 

 

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

3,065

 

 

$

1,981

 

 

$

1,962

 

Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: