10-Q 1 d-10q_20170630.htm 10-Q d-10q_20170630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark one)

 

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

For the quarterly period ended June 30, 2017

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, address of

principal executive offices and registrants’ telephone number

 

I.R.S. Employer

Identification Number

 

 

 

 

 

001-08489

 

DOMINION ENERGY, INC.

Formerly Known As Dominion Resources, Inc.

 

 

54-1229715

 

 

 

 

 

000-55337

 

VIRGINIA ELECTRIC AND POWER COMPANY

 

 

54-0418825

 

 

 

 

 

001-37591

 

DOMINION ENERGY GAS HOLDINGS, LLC

Formerly Known As Dominion Gas Holdings, LLC

 

 

46-3639580

 

 

 

 

 

 

 

120 Tredegar Street

Richmond, Virginia 23219

(804) 819-2000

 

 

 

State or other jurisdiction of incorporation or organization of the registrants: Virginia

 

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  

Dominion Energy Gas Holdings, LLC    Yes      No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).

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

Dominion Energy Gas Holdings, LLC    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 emerging growth company. See the definitions of “large accelerated filer,” “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

Non-accelerated filer

(Do not check if a smaller reporting company)

Smaller reporting company

 

 

 

Emerging growth 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.  

Virginia Electric and Power Company

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

(Do not check if a smaller reporting company)

Smaller reporting company

 

 

 

Emerging growth 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.  

 

Dominion Energy Gas Holdings, LLC

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

(Do not check if a smaller reporting company)

Smaller reporting company

 

 

 

Emerging growth 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act).

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

Dominion Energy Gas Holdings, LLC    Yes      No  

At July 14, 2017, the latest practicable date for determination, Dominion Energy, Inc. had 642,585,953 shares of common stock outstanding and Virginia Electric and Power Company had 274,723 shares of common stock outstanding. Dominion Energy, Inc. is the sole holder of Virginia Electric and Power Company’s common stock. Dominion Energy, Inc. holds all of the membership interests of Dominion Energy Gas Holdings, LLC.

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

VIRGINIA ELECTRIC AND POWER COMPANY AND DOMINION ENERGY GAS HOLDINGS, LLC MEET THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND ARE FILING THIS FORM 10-Q UNDER THE REDUCED DISCLOSURE FORMAT.

 

 

 

 


COMBINED INDEX

 

 

 

 

2


GLOSSARY OF TERMS

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

 

Abbreviation or Acronym

 

Definition

2013 Equity Units

 

Dominion Energy's 2013 Series A Equity Units and 2013 Series B Equity Units issued in June 2013

2014 Equity Units

 

Dominion Energy's 2014 Series A Equity Units issued in July 2014

2016 Equity Units

 

Dominion Energy's 2016 Series A Equity Units issued in August 2016

AFUDC

 

Allowance for funds used during construction

AMR

 

Automated meter reading program deployed by East Ohio

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, Duke and Southern Company Gas

BACT

 

Best available control technology

bcf

 

Billion cubic feet

bcfe

 

Billion cubic feet equivalent

Bear Garden

 

A 590 MW combined cycle, natural gas-fired power station in Buckingham County, Virginia

Brunswick County

 

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

CAA

 

Clean Air Act

CAISO

 

California Independent System Operator

CCR

 

Coal combustion residual

CEO

 

Chief Executive Officer

CERCLA

 

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

CFO

 

Chief Financial Officer

CO2

 

Carbon dioxide

COL

 

Combined Construction Permit and Operating License

Companies

 

Dominion Energy, Virginia Power and Dominion Energy Gas, collectively

Cooling degree days

 

Units measuring the extent to which the average daily temperature is greater than 65 degrees Fahrenheit, calculated as the difference between 65 degrees and the average temperature for that day

Cove Point

 

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

CPCN

 

Certificate of Public Convenience and Necessity

CWA

 

Clean Water Act

DECG

 

Dominion Energy Carolina Gas Transmission, LLC (formerly known as Dominion Carolina Gas Transmission, LLC)

DES

 

Dominion Energy Services, Inc. (formerly known as Dominion Resources Services, Inc.)

DETI

 

Dominion Energy Transmission, Inc. (formerly known as Dominion Transmission, Inc.)

DGI

 

Dominion Generation, Inc. (formerly known as Dominion Energy, Inc.)

DOE

 

Department of Energy

Dominion Energy

 

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

3


Abbreviation or Acronym

 

Definition

Dominion Energy Gas

 

The legal entity, Dominion Energy Gas Holdings, LLC (formerly known as Dominion Gas Holdings, LLC), one or more of its consolidated subsidiaries or operating segment, or the entirety of Dominion Energy Gas Holdings, LLC and its consolidated subsidiaries

Dominion Energy Midstream

 

The legal entity, Dominion Energy Midstream Partners, LP (formerly known as Dominion Midstream Partners, LP), one or more of its consolidated subsidiaries, Cove Point Holdings, Iroquois GP Holding Company, LLC, DECG and Dominion Energy Questar Pipeline (beginning December 1, 2016) or operating segment, or the entirety of Dominion Energy Midstream Partners, LP and its consolidated subsidiaries

Dominion Energy Questar

 

The legal entity, Dominion Energy Questar Corporation (formerly known as Dominion Questar Corporation), one or more of its consolidated subsidiaries or operating segment, or the entirety of Dominion Energy Questar Corporation and its consolidated subsidiaries

Dominion Energy Questar Combination

 

Dominion Energy's acquisition of Dominion Energy Questar completed on September 16, 2016 pursuant to the terms of the agreement and plan of merger entered on January 31, 2016

Dominion Energy Questar Pipeline

 

Dominion Energy Questar Pipeline, LLC (formerly known as Questar Pipeline, LLC), one or more of its consolidated subsidiaries, or the entirety of Dominion Energy Questar Pipeline, LLC and its consolidated subsidiaries

Dominion Iroquois

 

Dominion Iroquois, Inc., which holds a 24.07% noncontrolling partnership interest in Iroquois

DSM

 

Demand-side management

Dth

 

Dekatherm

Duke

 

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

East Ohio

 

The East Ohio Gas Company

EPA

 

Environmental Protection Agency

EPS

 

Earnings per share

FERC

 

Federal Energy Regulatory Commission

Four Brothers

 

Four Brothers Solar, LLC, a limited liability company owned by Dominion Energy and Four Brothers Holdings, LLC, a wholly-owned subsidiary of NRG effective November 2016

Fowler Ridge

 

A wind-turbine facility joint venture between Dominion Energy and BP Wind Energy North America Inc. in Benton County, Indiana

FTA

 

Free Trade Agreement

FTRs

 

Financial transmission rights

GAAP

 

U.S. generally accepted accounting principles

Gal

 

Gallon

Gas Infrastructure

 

Gas Infrastructure Group operating segment

GHG

 

Greenhouse gas

Granite Mountain

 

Granite Mountain Holdings, LLC, a limited liability company owned by Dominion Energy and Granite Mountain Renewables, LLC, a wholly-owned subsidiary of NRG effective November 2016

Greensville County

 

An approximately 1,588 MW combined cycle, natural gas-fired power station under construction in Greensville County, Virginia

Heating degree days

 

Units measuring the extent to which the average daily temperature is less than 65 degrees Fahrenheit, calculated as the difference between 65 degrees and the average temperature for that day

Hope

 

Hope Gas, Inc.

Iron Springs

 

Iron Springs Holdings, LLC, a limited liability company owned by Dominion Energy and Iron Springs Renewables, LLC, a wholly-owned subsidiary of NRG effective November 2016

Iroquois

 

Iroquois Gas Transmission System, L.P.

4


Abbreviation or Acronym

 

Definition

ISO-NE

 

Independent System Operator New England

kV

 

Kilovolt

Liquefaction Project

 

A natural gas export/liquefaction facility currently under construction by Cove Point

LNG

 

Liquefied natural gas

Local 69

 

Local 69, Utility Workers Union of America, United Gas Workers

MATS

 

Utility Mercury and Air Toxics Standard Rule

MD&A

 

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

MGD

 

Million gallons a day

MISO

 

Midcontinent Independent System Operator, Inc.

MW

 

Megawatt

MWh

 

Megawatt hour

NAV

 

Net asset value

NedPower

 

A wind-turbine facility joint venture between Dominion Energy and Shell Wind Energy, Inc. in Grant County, West Virginia

NGL

 

Natural gas liquid

NOx

 

Nitrogen oxide

NRC

 

Nuclear Regulatory Commission

NRG

 

The legal entity, NRG Energy, Inc., one or more of its consolidated subsidiaries (including, effective November 2016, Four Brothers Holdings, LLC, Granite Mountain Renewables, LLC and Iron Springs Renewables, LLC) or operating segments, or the entirety of NRG Energy, Inc. and its consolidated subsidiaries

NSPS

 

New Source Performance Standards

Ohio Commission

 

Public Utilities Commission of Ohio

Order 1000

 

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

PIPP

 

Percentage of Income Payment Plan deployed by East Ohio

PIR

 

Pipeline Infrastructure Replacement program deployed by East Ohio

PJM

 

PJM Interconnection, L.L.C.

Power Delivery

 

Power Delivery Group operating segment

Power Generation

 

Power Generation Group operating segment

ppb

 

Parts-per-billion

PSD

 

Prevention of Significant Deterioration

Questar Gas

 

Questar Gas Company

Rider B

 

A rate adjustment clause associated with the recovery of costs related to the conversion of three of Virginia Power's coal-fired power stations to biomass

Rider BW

 

A rate adjustment clause associated with the recovery of costs related to Brunswick County

Rider GV

 

A rate adjustment clause associated with the recovery of costs related to Greensville County

Rider R

 

A rate adjustment clause associated with the recovery of costs related to Bear Garden

Rider S

 

A rate adjustment clause associated with the recovery of costs related to the Virginia City Hybrid Energy Center

5


Abbreviation or Acronym

 

Definition

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 US-2

 

A rate adjustment clause associated with the recovery of costs related to Woodland, Scott Solar and Whitehouse

Rider W

 

A rate adjustment clause associated with the recovery of costs related to Warren County

Riders C1A and C2A

 

Rate adjustment clauses associated with the recovery of costs related to certain DSM programs approved in DSM cases

ROE

 

Return on equity

SBL Holdco

 

SBL Holdco, LLC, a wholly-owned subsidiary of DGI

Scott Solar

 

A 17 MW utility-scale solar power station in Powhatan County, Virginia

SEC

 

Securities and Exchange Commission

Standard & Poor’s

 

Standard & Poor’s Ratings Services, a division of McGraw Hill Financial, Inc.

SunEdison

 

The legal entity, SunEdison, Inc., one or more of its consolidated subsidiaries (including, through November 2016, Four Brothers Holdings, LLC, Granite Mountain Renewables, LLC and Iron Springs Renewables, LLC) or operating segments, or the entirety of SunEdison, Inc. and its consolidated subsidiaries

Terra Nova Renewable Partners

 

A partnership comprised primarily of institutional investors advised by J.P. Morgan Asset Management-Global Real Assets

Three Cedars

 

Granite Mountain and Iron Springs, collectively

UEX Rider

 

Uncollectible Expense Rider deployed by East Ohio

VDEQ

 

Virginia Department of Environmental Quality

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 Power

 

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

VOC

 

Volatile organic compounds

Warren County

 

A 1,342 MW combined-cycle, natural gas-fired power station in Warren County, Virginia

Whitehouse

 

A 20 MW utility-scale solar power station in Louisa County, Virginia

Woodland

 

A 19 MW utility-scale solar power station in Isle of Wight County, Virginia

 

 

 

6


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

(millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue

 

$

2,813

 

 

$

2,598

 

 

$

6,197

 

 

$

5,519

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

498

 

 

 

551

 

 

 

1,073

 

 

 

1,185

 

Purchased (excess) electric capacity

 

 

(12

)

 

 

45

 

 

 

(29

)

 

 

113

 

Purchased gas

 

 

112

 

 

 

56

 

 

 

417

 

 

 

175

 

Other operations and maintenance

 

 

779

 

 

 

665

 

 

 

1,517

 

 

 

1,368

 

Depreciation, depletion and amortization

 

 

467

 

 

 

361

 

 

 

936

 

 

 

712

 

Other taxes

 

 

168

 

 

 

139

 

 

 

357

 

 

 

303

 

Total operating expenses

 

 

2,012

 

 

 

1,817

 

 

 

4,271

 

 

 

3,856

 

Income from operations

 

 

801

 

 

 

781

 

 

 

1,926

 

 

 

1,663

 

Other income

 

 

60

 

 

 

72

 

 

 

176

 

 

 

126

 

Interest and related charges

 

 

308

 

 

 

239

 

 

 

600

 

 

 

465

 

Income from operations including noncontrolling interests before

   income tax expense

 

 

553

 

 

 

614

 

 

 

1,502

 

 

 

1,324

 

Income tax expense

 

 

136

 

 

 

152

 

 

 

411

 

 

 

331

 

Net Income Including Noncontrolling Interests

 

 

417

 

 

 

462

 

 

 

1,091

 

 

 

993

 

Noncontrolling Interests

 

 

27

 

 

 

10

 

 

 

69

 

 

 

17

 

Net Income Attributable to Dominion Energy

 

$

390

 

 

$

452

 

 

$

1,022

 

 

$

976

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Dominion Energy - Basic

 

$

0.62

 

 

$

0.73

 

 

$

1.63

 

 

$

1.61

 

Net income attributable to Dominion Energy - Diluted

 

 

0.62

 

 

 

0.73

 

 

 

1.63

 

 

 

1.61

 

Dividends Declared Per Common Share

 

$

0.7550

 

 

$

0.7000

 

 

$

1.5100

 

 

$

1.4000

 

 

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

 

 

7


DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

417

 

 

$

462

 

 

$

1,091

 

 

$

993

 

Other comprehensive income (loss), net of taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred gains (losses) on derivatives-hedging activities(1)

 

 

28

 

 

 

(11

)

 

 

71

 

 

 

42

 

Changes in unrealized net gains on investment securities(2)

 

 

35

 

 

 

26

 

 

 

93

 

 

 

41

 

Amounts reclassified to net income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net derivative gains-hedging activities(3)

 

 

(18

)

 

 

(44

)

 

 

(41

)

 

 

(107

)

Net realized gains on investment securities(4)

 

 

(4

)

 

 

(8

)

 

 

(32

)

 

 

(10

)

Net pension and other postretirement benefit costs(5)

 

 

11

 

 

 

8

 

 

 

24

 

 

 

16

 

Changes in other comprehensive income (loss) from equity

   method investees(6)

 

 

1

 

 

 

(1

)

 

 

2

 

 

 

(1

)

Total other comprehensive income (loss)

 

 

53

 

 

 

(30

)

 

 

117

 

 

 

(19

)

Comprehensive income including noncontrolling interests

 

 

470

 

 

 

432

 

 

 

1,208

 

 

 

974

 

Comprehensive income attributable to noncontrolling interests

 

 

27

 

 

 

10

 

 

 

69

 

 

 

17

 

Comprehensive income attributable to Dominion Energy

 

$

443

 

 

$

422

 

 

$

1,139

 

 

$

957

 

(1)

Net of $(17) million and $7 million tax for the three months ended June 30, 2017 and 2016, respectively, and net of $(44) million and $(26) million tax for the six months ended June 30, 2017 and 2016, respectively.

(2)

Net of $(18) million and $(15) million tax for the three months ended June 30, 2017 and 2016, respectively, and net of $(53) million and $(25) million tax for the six months ended June 30, 2017 and 2016, respectively.

(3)

Net of $11 million and $28 million tax for the three months ended June 30, 2017 and 2016, respectively, and net of $25 million and $67 million tax for the six months ended June 30, 2017 and 2016, respectively.

(4)

Net of $2 million and $5 million tax for the three months ended June 30, 2017 and 2016, respectively, and net of $18 million and $6 million tax for the six months ended June 30, 2017 and 2016, respectively.

(5)

Net of $(10) million and $(6) million tax for the three months ended June 30, 2017 and 2016, respectively, and net of $(18) million and $(12) million tax for the six months ended June 30, 2017 and 2016, respectively.

(6)

Net of $--- million tax for both the three months ended June 30, 2017 and 2016,and net of $(1) million and $--- million tax for the six months ended June 30, 2017 and 2016, respectively.

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

 

 

 

8


DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

June 30, 2017

 

 

December 31, 2016(1)

 

(millions)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

260

 

 

$

261

 

Customer receivables (less allowance for doubtful accounts of $32 and $18)

 

 

1,242

 

 

 

1,523

 

Other receivables (less allowance for doubtful accounts of $2 at both dates)

 

 

153

 

 

 

183

 

Inventories

 

 

1,469

 

 

 

1,524

 

Other

 

 

787

 

 

 

757

 

Total current assets

 

 

3,911

 

 

 

4,248

 

Investments

 

 

 

 

 

 

 

 

Nuclear decommissioning trust funds

 

 

4,735

 

 

 

4,484

 

Investment in equity method affiliates

 

 

1,808

 

 

 

1,561

 

Other

 

 

315

 

 

 

298

 

Total investments

 

 

6,858

 

 

 

6,343

 

Property, Plant and Equipment

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

72,163

 

 

 

69,556

 

Accumulated depreciation, depletion and amortization

 

 

(20,415

)

 

 

(19,592

)

Total property, plant and equipment, net

 

 

51,748

 

 

 

49,964

 

Deferred Charges and Other Assets

 

 

 

 

 

 

 

 

Goodwill

 

 

6,399

 

 

 

6,399

 

Regulatory assets

 

 

2,487

 

 

 

2,473

 

Other

 

 

2,499

 

 

 

2,183

 

Total deferred charges and other assets

 

 

11,385

 

 

 

11,055

 

Total assets

 

$

73,902

 

 

$

71,610

 

(1)

Dominion Energy’s Consolidated Balance Sheet at December 31, 2016 has been derived from the audited Consolidated Balance Sheet at that date.

 

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

9


DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

 

 

 

June 30, 2017

 

 

December 31, 2016(1)

 

(millions)

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Securities due within one year

 

$

4,050

 

 

$

1,709

 

Short-term debt

 

 

2,833

 

 

 

3,155

 

Accounts payable

 

 

695

 

 

 

1,000

 

Accrued interest, payroll and taxes

 

 

725

 

 

 

798

 

Regulatory liabilities

 

 

106

 

 

 

163

 

Other

 

 

1,093

 

 

 

1,290

 

Total current liabilities

 

 

9,502

 

 

 

8,115

 

Long-Term Debt

 

 

 

 

 

 

 

 

Long-term debt

 

 

24,799

 

 

 

24,878

 

Junior subordinated notes

 

 

3,980

 

 

 

2,980

 

Remarketable subordinated notes

 

 

1,376

 

 

 

2,373

 

Total long-term debt

 

 

30,155

 

 

 

30,231

 

Deferred Credits and Other Liabilities

 

 

 

 

 

 

 

 

Deferred income taxes and investment tax credits

 

 

9,099

 

 

 

8,602

 

Regulatory liabilities

 

 

2,803

 

 

 

2,622

 

Other

 

 

5,138

 

 

 

5,200

 

Total deferred credits and other liabilities

 

 

17,040

 

 

 

16,424

 

Total liabilities

 

 

56,697

 

 

 

54,770

 

Commitments and Contingencies (see Note 15)

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Common stock – no par(2)

 

 

8,717

 

 

 

8,550

 

Retained earnings

 

 

6,938

 

 

 

6,854

 

Accumulated other comprehensive loss

 

 

(682

)

 

 

(799

)

Total common shareholders' equity

 

 

14,973

 

 

 

14,605

 

Noncontrolling interests

 

 

2,232

 

 

 

2,235

 

Total equity

 

 

17,205

 

 

 

16,840

 

Total liabilities and equity

 

$

73,902

 

 

$

71,610

 

(1)

Dominion Energy’s Consolidated Balance Sheet at December 31, 2016 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

1 billion shares authorized; 630 million shares and 628 million shares outstanding at June 30, 2017 and December 31, 2016, respectively.

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

 

 

10


DOMINION ENERGY, INC.

CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

 

 

 

Common Stock

 

 

Dominion Energy Shareholders

 

 

Total

Common

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Retained Earnings

 

 

AOCI

 

 

Shareholders'

Equity

 

 

Noncontrolling

Interests

 

 

Total

Equity

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,  2015

 

 

596

 

 

$

6,680

 

 

$

6,458

 

 

$

(474

)

 

$

12,664

 

 

$

938

 

 

$

13,602

 

Net income including noncontrolling interests

 

 

 

 

 

 

 

 

 

 

976

 

 

 

 

 

 

 

976

 

 

 

17

 

 

 

993

 

Contributions from SunEdison to Four Brothers

   and Three Cedars

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

162

 

 

 

162

 

Sale of interest in merchant solar projects

 

 

 

 

 

 

22

 

 

 

 

 

 

 

 

 

 

 

22

 

 

 

117

 

 

 

139

 

Purchase of Dominion Energy Midstream

   common units

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(11

)

 

 

(13

)

Issuance of common stock

 

 

21

 

 

 

1,458

 

 

 

 

 

 

 

 

 

 

 

1,458

 

 

 

 

 

 

 

1,458

 

Stock awards (net of change in unearned

   compensation)

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

 

6

 

Dividends and distributions

 

 

 

 

 

 

 

 

 

 

(849

)

 

 

 

 

 

 

(849

)

 

 

(23

)

 

 

(872

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

(19

)

 

 

 

 

 

 

(19

)

Other

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

(4

)

June 30, 2016

 

 

617

 

 

$

8,160

 

 

$

6,585

 

 

$

(493

)

 

$

14,252

 

 

$

1,200

 

 

$

15,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

628

 

 

$

8,550

 

 

$

6,854

 

 

$

(799

)

 

$

14,605

 

 

$

2,235

 

 

$

16,840

 

Net income including noncontrolling interests

 

 

 

 

 

 

 

 

 

 

1,022

 

 

 

 

 

 

 

1,022

 

 

 

69

 

 

 

1,091

 

Contributions from NRG to Four Brothers and

   Three Cedars

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

9

 

Issuance of common stock

 

 

2

 

 

 

156

 

 

 

 

 

 

 

 

 

 

 

156

 

 

 

 

 

 

 

156

 

Stock awards (net of change in unearned

   compensation)

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

11

 

Dividends and distributions

 

 

 

 

 

 

 

 

 

 

(949

)

 

 

 

 

 

 

(949

)

 

 

(82

)

 

 

(1,031

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

 

 

117

 

 

 

 

 

 

 

117

 

Other

 

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

11

 

 

1

 

 

 

12

 

June 30, 2017

 

 

630

 

 

$

8,717

 

 

$

6,938

 

 

$

(682

)

 

$

14,973

 

 

$

2,232

 

 

$

17,205

 

 

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

 

 

11


DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

</

Six Months Ended June 30,

 

2017

 

 

2016

 

(millions)

 

 

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

1,091

 

 

$

993

 

Adjustments to reconcile net income including noncontrolling interests to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization (including nuclear fuel)

 

 

1,088

 

 

 

853

 

Deferred income taxes and investment tax credits

 

 

406

 

 

 

275

 

Proceeds from assignment of tower rental portfolio

 

 

91

 

 

 

 

Gains on the sales of assets and equity method investment in Iroquois

 

 

 

 

 

(45

)

Contribution to pension plan

 

 

(75

)

 

 

 

Other adjustments

 

 

(72

)

 

 

(27

)

Changes in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

307

 

 

 

82

 

Inventories

 

 

21

 

 

 

(3

)

Deferred fuel and purchased gas costs, net

 

 

(79

)

 

 

114

 

Prepayments

 

 

32

 

 

 

55

 

Accounts payable

 

 

(211

)

 

 

(92

)

Accrued interest, payroll and taxes

 

 

(73

)

 

 

46

 

Margin deposit assets and liabilities

 

 

54

 

 

 

(13

)

Other operating assets and liabilities

 

 

(228

)

 

 

(220

)

Net cash provided by operating activities

 

 

2,352

 

 

 

2,018

 

Investing Activities

 

 

 

 

 

 

 

 

Plant construction and other property additions (including nuclear fuel)

 

 

(2,748

)

 

 

(3,150

)

Acquisition of solar development projects

 

 

(280

)

 

 

(10

)

Proceeds from sales of securities

 

 

1,119

 

 

 

709

 

Purchases of securities

 

 

(1,156

)

 

 

(752

)

Restricted cash and cash equivalents

 

 

(3

)

 

 

(500

)

Contributions to equity method affiliates

 

 

(252

)

 

 

(76

)

Other

 

 

4

 

 

 

54

 

Net cash used in investing activities

 

 

(3,316

)

 

 

(3,725

)

Financing Activities

 

 

 

 

 

 

 

 

Repayment of short-term debt, net

 

 

(322

)

 

 

(72

)

Repayment and repurchase of short-term notes

 

 

 

 

 

(600

)

Issuance of long-term debt

 

 

2,730

 

 

 

1,930