10-Q 1 d-10q_20190331.htm 10-Q d-10q_20190331.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 March 31, 2019

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.

 

 

54-1229715

 

 

 

 

 

000-55337

 

VIRGINIA ELECTRIC AND POWER COMPANY

 

 

54-0418825

 

 

 

 

 

001-37591

 

DOMINION ENERGY 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 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  

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

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.  

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.  

Dominion Energy Gas Holdings, LLC

 

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 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  

 

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

DCUD

DRUA

Common Stock, no par value

2016 Series A 6.75% Corporate Units

2016 Series A 5.25% Enhanced Junior Subordinated Notes

New York Stock Exchange

New York Stock Exchange

New York Stock Exchange

DOMINION ENERGY GAS

HOLDINGS, LLC

 

2014 Series C 4.6% Senior Notes

New York Stock Exchange

 


 

At April 12, 2019, the latest practicable date for determination, Dominion Energy, Inc. had 802,364,338 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.

 

 

 

 

2


 

COMBINED INDEX

 

 

 

 

3


 

GLOSSARY OF TERMS

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

 

Abbreviation or Acronym

 

Definition

2016 Equity Units

 

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

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

AFUDC

 

Allowance for funds used during construction

AMI

 

Advanced Metering Infrastructure

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

Bankruptcy Court

 

U.S. Bankruptcy Court for the Southern District of New York

bcf

 

Billion cubic feet

Blue Racer

 

Blue Racer Midstream, LLC, a joint venture between Caiman Energy II, LLC and FR BR Holdings, LLC effective December 2018

CAA

 

Clean Air Act

CAISO

 

California Independent System Operator

CCR

 

Coal combustion residual

CEO

 

Chief Executive Officer

CEP

 

Capital Expenditure Program, as established by House Bill 95, Ohio legislation enacted in 2011, deployed by East Ohio to recover certain costs associated with capital investment

CERCLA

 

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

CFO

 

Chief Financial Officer

CO2

 

Carbon dioxide

Colonial Trail West

 

An approximately 142 MW proposed utility-scale solar power station located in Surry County, Virginia

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, 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

 

Dominion Energy Cove Point LNG, LP

Cove Point Holdings

 

Cove Point GP Holding Company, LLC

CPCN

 

Certificate of Public Convenience and Necessity

CWA

 

Clean Water Act

DECG

 

Dominion Energy Carolina Gas Transmission, LLC

DES

 

Dominion Energy Services, Inc.

DESC

 

Dominion Energy South Carolina, Inc. (formerly known as South Carolina Electric & Gas Company), its consolidated subsidiaries or operating segments, or the entirety of Dominion Energy South Carolina, Inc. and its consolidated subsidiaries

4


 

Abbreviation or Acronym

 

Definition

DETI

 

Dominion Energy Transmission, Inc.

DGI

 

Dominion Generation, Inc.

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 and Dominion Energy Gas) or operating segments, or the entirety of Dominion Energy, Inc. and its consolidated subsidiaries

Dominion Energy Gas

 

The legal entity, Dominion Energy 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, one or more of its consolidated subsidiaries, Cove Point Holdings, Iroquois GP Holding Company, LLC, DECG and Dominion Energy Questar Pipeline, or the entirety of Dominion Energy Midstream Partners, LP and its consolidated subsidiaries

Dominion Energy Questar Pipeline

 

Dominion Energy Questar Pipeline, LLC, one or more of its consolidated subsidiaries, or the entirety of Dominion Energy Questar Pipeline, LLC and its consolidated subsidiaries

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, doing business as Dominion Energy Ohio

EPA

 

U.S. Environmental Protection Agency

EPS

 

Earnings per share

FASB

 

Financial Accounting Standards Board

FERC

 

Federal Energy Regulatory Commission

FILOT

 

Fee in lieu of taxes

Four Brothers

 

Four Brothers Solar, LLC, a limited liability company owned by Dominion Energy and Four Brothers Holdings, LLC, a subsidiary of GIP effective August 2018

FTRs

 

Financial transmission rights

GAAP

 

U.S. generally accepted accounting principles

Gal

 

Gallon

Gas Infrastructure

 

Gas Infrastructure Group operating segment

GHG

 

Greenhouse gas

GIP

 

The legal entity, Global Infrastructure Partners, one or more of its consolidated subsidiaries (including, effective August 2018, Four Brothers Holdings, LLC, Granite Mountain Renewables, LLC, and Iron Springs Renewables, LLC) or operating segments, or the entirety of Global Infrastructure Partners and its consolidated subsidiaries

Granite Mountain

 

Granite Mountain Holdings, LLC, a limited liability company owned by Dominion Energy and Granite Mountain Renewables, LLC, a subsidiary of GIP effective August 2018

GreenHat

 

GreenHat Energy, LLC

GTSA

 

Virginia Grid Transformation and Security Act of 2018

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

Hope

 

Hope Gas, Inc., doing business as Dominion Energy West Virginia

5


 

Abbreviation or Acronym

 

Definition

Iron Springs

 

Iron Springs Holdings, LLC, a limited liability company owned by Dominion Energy and Iron Springs Renewables, LLC, a subsidiary of GIP effective August 2018

Iroquois

 

Iroquois Gas Transmission System, L.P.

ISO-NE

 

ISO New England, Inc.

Kewaunee

 

Kewaunee nuclear power station

kV

 

Kilovolt

Liquefaction Facility

 

A natural gas export/liquefaction facility at Cove Point

LNG

 

Liquefied natural gas

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

Millstone

 

Millstone nuclear power station

MW

 

Megawatt

MWh

 

Megawatt hour

NAV

 

Net asset value

NGL

 

Natural gas liquid

NND Project

 

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

North Carolina Commission

 

North Carolina Utilities Commission

NOx

 

Nitrogen oxide

NRC

 

U.S. Nuclear Regulatory Commission

NSPS

 

New Source Performance Standards

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

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

PSNC

 

Public Service Company of North Carolina, Incorporated, doing business as Dominion Energy North Carolina

PURA

 

Connecticut’s Public Utility Regulatory Authority

Questar Gas

 

Questar Gas Company, doing business as Dominion Energy Utah, Dominion Energy Wyoming and Dominion Energy Idaho

6


 

Abbreviation or Acronym

 

Definition

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 and 2018

RICO

 

Racketeer Influenced and Corrupt Organizations Act

Rider U

 

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

Rider US-3

 

A rate adjustment clause associated with the recovery of costs related to Colonial Trail West and Spring Grove 1

Riders C1A, C2A and C3A

 

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

ROE

 

Return on equity

Santee Cooper

 

South Carolina Public Service Authority

SBL Holdco

 

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

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 SCANA Merger Agreement

SCANA Merger Agreement

 

Agreement and plan of merger entered on January 2, 2018 between Dominion Energy and SCANA

SCANA Merger Approval Order

 

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

SCDHEC

 

South Carolina Department of Health and Environmental Control

SCDOR

 

South Carolina Department of Revenue

SEC

 

U.S. Securities and Exchange Commission

South Carolina Commission

 

Public Service Commission of South Carolina

Southeast Energy

 

Southeast Energy Group operating segment

Spring Grove 1

 

An approximately 98 MW proposed utility-scale solar power station located in Surry County, Virginia

Standard & Poor’s

 

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

Summer

 

V.C. Summer nuclear power station

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

VDEQ

 

Virginia Department of Environmental Quality

VEBA

 

Voluntary Employees' Beneficiary Association

VIE

 

Variable interest entity

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

WECTEC

 

WECTEC Global Project Services, Inc. (formerly known as Stone & Webster, Inc.), a wholly-owned subsidiary of Westinghouse

Westinghouse

 

Westinghouse Electric Company LLC

West Virginia Commission

 

Public Service Commission of West Virginia

White River Hub

 

White River Hub, LLC

7


 

Abbreviation or Acronym

 

Definition

Wyoming Commission

 

Wyoming Public Service Commission

 

 

 

8


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

(millions, except per share amounts)

 

 

 

 

 

 

 

 

Operating Revenue(1)

 

$

3,858

 

 

$

3,466

 

Operating Expenses

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

791

 

 

 

744

 

Purchased electric capacity

 

 

39

 

 

 

14

 

Purchased gas

 

 

730

 

 

 

340

 

Other operations and maintenance

 

 

1,002

 

 

 

795

 

Depreciation, depletion and amortization

 

 

651

 

 

 

498

 

Other taxes

 

 

292

 

 

 

199

 

Impairment of assets and other charges

 

 

835

 

 

 

1

 

Total operating expenses

 

 

4,340

 

 

 

2,591

 

Income (loss) from operations

 

 

(482

)

 

 

875

 

Other income

 

 

388

 

 

 

100

 

Interest and related charges

 

 

469

 

 

 

314

 

Income (loss) from operations including noncontrolling interests before

   income tax expense

 

 

(563

)

 

 

661

 

Income tax expense

 

 

114

 

 

 

135

 

Net Income (Loss) Including Noncontrolling Interests

 

 

(677

)

 

 

526

 

Noncontrolling Interests

 

 

3

 

 

 

23

 

Net Income (Loss) Attributable to Dominion Energy

 

$

(680

)

 

$

503

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

Net income (loss) attributable to Dominion Energy - Basic

 

$

(0.86

)

 

$

0.77

 

Net income (loss) attributable to Dominion Energy - Diluted

 

 

(0.86

)

 

 

0.77

 

(1)

See Note 10 for amounts attributable to related parties.

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

9


 

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

(millions)

 

 

 

 

 

 

 

 

Net income (loss) including noncontrolling interests

 

$

(677

)

 

$

526

 

Other comprehensive income (loss), net of taxes:

 

 

 

 

 

 

 

 

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

 

 

(24

)

 

 

111

 

Changes in unrealized net gains (losses) on investment

   securities(2)

 

 

16

 

 

 

(13

)

Amounts reclassified to net income:

 

 

 

 

 

 

 

 

Net derivative (gains) losses-hedging activities(3)

 

 

(31

)

 

 

8

 

Net realized (gains) losses on investment securities(4)

 

 

 

 

 

1

 

Net pension and other postretirement benefit costs(5)

 

 

8

 

 

 

25

 

Total other comprehensive income (loss)

 

 

(31

)

 

 

132

 

Comprehensive income (loss) including noncontrolling interests

 

 

(708

)

 

 

658

 

Comprehensive income attributable to noncontrolling interests

 

 

3

 

 

 

24

 

Comprehensive income (loss) attributable to Dominion Energy

 

$

(711

)

 

$

634

 

 

(1)

Net of $5 million and $(37) million tax for the three months ended March 31, 2019 and 2018, respectively.

(2)

Net of $(6) million and $4 million tax for the three months ended March 31, 2019 and 2018, respectively.

(3)

Net of $10 million and $(3) million tax for the three months ended March 31, 2019 and 2018, respectively.

(4)

Net of $— million tax for both the three months ended March 31, 2019 and 2018.

(5)

Net of $(14) million and $(1) million tax for the three months ended March 31, 2019 and 2018, respectively.

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

 

10


 

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

March 31, 2019

 

 

December 31, 2018(1)

 

(millions)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

422

 

 

$

268

 

Customer receivables (less allowance for doubtful accounts of $22 and $14)

 

 

2,236

 

 

 

1,749

 

Other receivables (less allowance for doubtful accounts of $4 at both dates)(2)

 

 

203

 

 

 

331

 

Inventories

 

 

1,657

 

 

 

1,418

 

Regulatory assets

 

 

725

 

 

 

496

 

Other

 

 

732

 

 

 

899

 

Total current assets

 

 

5,975

 

 

 

5,161

 

Investments

 

 

 

 

 

 

 

 

Nuclear decommissioning trust funds

 

 

5,580

 

 

 

4,938

 

Investment in equity method affiliates

 

 

1,433

 

 

 

1,278

 

Other

 

 

357

 

 

 

344

 

Total investments

 

 

7,370

 

 

 

6,560

 

Property, Plant and Equipment

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

93,485

 

 

 

76,578

 

Accumulated depreciation, depletion and amortization

 

 

(26,918

)

 

 

(22,018

)

Total property, plant and equipment, net

 

 

66,567

 

 

 

54,560

 

Deferred Charges and Other Assets

 

 

 

 

 

 

 

 

Goodwill

 

 

8,960

 

 

 

6,410

 

Intangible assets, net

 

 

887

 

 

 

670

 

Regulatory assets

 

 

7,575

 

 

 

2,676

 

Operating lease assets

 

 

486

 

 

 

 

Other

 

 

2,234

 

 

 

1,877

 

Total deferred charges and other assets

 

 

20,142

 

 

 

11,633

 

Total assets

 

$

100,054

 

 

$

77,914

 

 

(1)

Dominion Energy’s Consolidated Balance Sheet at December 31, 2018 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 10 for amounts attributable to related parties.

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

11


 

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

 

 

 

March 31, 2019

 

 

December 31, 2018(1)

 

(millions)

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Securities due within one year

 

$

3,080

 

 

$

3,624

 

Credit facility borrowings

 

 

 

 

 

73

 

Short-term debt

 

 

2,412

 

 

 

334

 

Accounts payable

 

 

920

 

 

 

914

 

Accrued interest, payroll and taxes

 

 

957

 

 

 

836

 

Regulatory liabilities

 

 

612

 

 

 

356

 

Other(2)

 

 

1,795

 

 

 

1,510

 

Total current liabilities

 

 

9,776

 

 

 

7,647

 

Long-Term Debt

 

 

 

 

 

 

 

 

Long-term debt

 

 

32,043

 

 

 

26,328

 

Junior subordinated notes

 

 

3,431

 

 

 

3,430

 

Remarketable subordinated notes

 

 

1,387

 

 

 

1,386

 

Total long-term debt

 

 

36,861

 

 

 

31,144

 

Deferred Credits and Other Liabilities

 

 

 

 

 

 

 

 

Deferred income taxes and investment tax credits

 

 

6,108

 

 

 

5,116

 

Regulatory liabilities

 

 

10,799

 

 

 

6,840

 

Asset retirement obligations

 

 

4,985

 

 

 

2,250

 

Operating lease liabilities

 

 

418

 

 

 

 

Other

 

 

3,508

 

 

 

2,869

 

Total deferred credits and other liabilities

 

 

25,818

 

 

 

17,075

 

Total liabilities

 

 

72,455

 

 

 

55,866

 

Commitments and Contingencies (see Note 17)

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Common stock – no par(3)

 

 

20,834

 

 

 

12,588

 

Retained earnings

 

 

7,806

 

 

 

9,219

 

Accumulated other comprehensive loss

 

 

(1,731

)

 

 

(1,700

)

Total common shareholders' equity

 

 

26,909

 

 

 

20,107

 

Noncontrolling interests

 

 

690

 

 

 

1,941

 

Total equity

 

 

27,599

 

 

 

22,048

 

Total liabilities and equity

 

$

100,054

 

 

$

77,914

 

 

(1)

Dominion Energy’s Consolidated Balance Sheet at December 31, 2018 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 10 for amounts attributable to related parties.

(3)

1 billion shares authorized; 802 million shares and 681 million shares outstanding at March 31, 2019 and December 31, 2018, respectively.

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


12


 

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

 

 

 

Common Stock

 

 

Dominion Energy Shareholders

 

 

Total

Common

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Retained Earnings

 

 

AOCI

 

 

Shareholders'

Equity

 

 

Noncontrolling

Interests

 

 

Total

Equity

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

645

 

 

$

9,865

 

 

$

7,936

 

 

$

(659

)

 

$

17,142

 

 

$

2,228

 

 

$

19,370

 

Cumulative-effect of changes in accounting

   principles

 

 

 

 

 

 

(127

)

 

 

1,029

 

 

 

(1,023

)

 

 

(121

)

 

 

127

 

 

 

6

 

Net income including noncontrolling interests

 

 

 

 

 

 

 

 

 

 

503

 

 

 

 

 

 

 

503

 

 

 

23

 

 

 

526

 

Issuance of common stock

 

 

8

 

 

 

580

 

 

 

 

 

 

 

 

 

 

 

580

 

 

 

 

 

 

 

580

 

Sale of Dominion Energy Midstream common

   units - net of offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Stock awards (net of change in unearned

   compensation)

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

3

 

Dividends ($0.835 per common share) and

   distributions

 

 

 

 

 

 

 

 

 

 

(544

)

 

 

 

 

 

 

(544

)

 

 

(31

)

 

 

(575

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

131

 

 

 

131

 

 

 

1

 

 

 

132

 

Other

 

 

 

 

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

1

 

 

 

(4

)

March 31, 2018

 

 

653

 

 

$

10,316

 

 

$

8,924

 

 

$

(1,551

)

 

$

17,689

 

 

$

2,353

 

 

$

20,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

681

 

 

$

12,588

 

 

$

9,219

 

 

$

(1,700

)

 

$

20,107

 

 

$

1,941

 

 

$

22,048

 

Net income (loss) including noncontrolling

   interests

 

 

 

 

 

 

 

 

 

 

(680

)

 

 

 

 

 

 

(680

)

 

 

3

 

 

 

(677

)

Issuance of common stock

 

 

3

 

 

 

247

 

 

 

 

 

 

 

 

 

 

 

247

 

 

 

 

 

 

 

247

 

Acquisition of SCANA

 

 

96

 

 

 

6,818

 

 

 

 

 

 

 

 

 

 

 

6,818

 

 

 

 

 

 

 

6,818

 

Acquisition of public interest in Dominion

   Energy Midstream

 

 

22

 

 

 

1,181

 

 

 

 

 

 

 

 

 

 

 

1,181

 

 

 

(1,221

)

 

 

(40

)

Dividends ($0.9175 per common share) and

   distributions

 

 

 

 

 

 

 

 

 

 

(733

)

 

 

 

 

 

 

(733

)

 

 

(33

)

 

 

(766

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31

)

 

 

(31

)

 

 

 

 

 

 

(31

)

March 31, 2019

 

 

802

 

 

$

20,834

 

 

$

7,806

 

 

$

(1,731

)

 

$

26,909

 

 

$

690

 

 

$

27,599

 

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

13


 

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

 

2019

 

 

2018

 

(millions)

 

 

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

 

 

Net income (loss) including noncontrolling interests

 

$

(677

)

 

$

526

 

Adjustments to reconcile net income (loss) including noncontrolling interests to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization (including nuclear fuel)

 

 

734

 

 

 

572

 

Deferred income taxes and investment tax credits

 

 

106

 

 

 

131

 

Provision for refunds and rate credits to electric utility customers

 

 

988

 

 

 

215

 

Impairment of assets and other charges

 

 

835

 

 

 

 

Net (gains) losses on nuclear decommissioning trust funds and other investments

 

 

(271

)

 

 

25

 

Revision to future ash pond and landfill closure costs

 

 

(113

)

 

 

 

Other adjustments

 

 

(11

)

 

 

(56

)

Changes in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

153

 

 

 

47

 

Inventories

 

 

53

 

 

 

104

 

Deferred fuel and purchased gas costs, net

 

 

27

 

 

 

(264

)

Prepayments

 

 

89

 

 

 

(3

)

Accounts payable

 

 

(284

)

 

 

(57

)

Accrued interest, payroll and taxes

 

 

(329

)

 

 

(103

)

Customer deposits

 

 

(35

)

 

 

101

 

Margin deposit assets and liabilities

 

 

93

 

 

 

(33

)

Other operating assets and liabilities

 

 

(187

)

 

 

27

 

Net cash provided by operating activities

 

 

1,171

 

 

 

1,232

 

Investing Activities

 

 

 

 

 

 

 

 

Plant construction and other property additions (including nuclear fuel)

 

 

(1,002

)

 

 

(1,103

)

Cash and restricted cash acquired in the SCANA Combination

 

 

389

 

 

 

 

Acquisition of solar development projects

 

 

(29

)

 

 

(7

)

Proceeds from sales of securities

 

 

506

 

 

 

419

 

Purchases of securities

 

 

(494

)

 

 

(453

)

Proceeds from sales of assets and equity method investments

 

 

154

 

 

 

 

Contributions to equity method affiliates

 

 

(69

)

 

 

(87

)

Other

 

 

(7

)

 

 

48

 

Net cash used in investing activities

 

 

(552

)

 

 

(1,183

)

Financing Activities

 

 

 

 

 

 

 

 

Issuance (repayment) of short-term debt, net

 

 

1,905

 

 

 

(585

)

Issuance of short-term notes

 

 

 

 

 

950

 

Repayment of credit facility borrowings

 

 

(113

)

 

 

 

Issuance of long-term debt

 

 

600

 

 

 

950

 

Repayment of long-term debt, including redemption premiums

 

 

(2,217

)

 

 

(1,180

)

Issuance of common stock

 

 

247

 

 

 

581

 

Common dividend payments

 

 

(733

)

 

 

(544

)

Other

 

 

(72

)

 

 

(72

)

Net cash provided by (used in) financing activities

 

 

(383

)

 

 

100

 

Increase in cash, restricted cash and equivalents

 

 

236

 

 

 

149

 

Cash, restricted cash and equivalents at beginning of period

 

 

391

 

 

 

185

 

Cash, restricted cash and equivalents at end of period

 

$

627

 

 

$

334

 

Supplemental Cash Flow Information

 

 

 

 

 

 

 

 

Significant noncash investing and financing activities:(1)(2)(3)

 

 

 

 

 

 

 

 

Accrued capital expenditures

 

$

201

 

 

$

175

 

(1)

See Note 2 for noncash investing and financing activities related to the adoption of a new accounting standard for leasing arrangements.

(2)

See Note 3 for noncash investing and financing activities related to the SCANA Combination.

(3)

See Note 16 for noncash financing activities related to the acquisition of the public interest in Dominion Energy Midstream.

 

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

14


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

(millions)

 

 

 

 

 

 

 

 

Operating Revenue(1)

 

$

1,965

 

 

$

1,748

 

Operating Expenses

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases(1)

 

 

596

 

 

 

591

 

Purchased electric capacity

 

 

33

 

 

 

14

 

Other operations and maintenance:

 

 

 

 

 

 

 

 

Affiliated suppliers

 

 

86

 

 

 

83

 

Other

 

 

193

 

 

 

316

 

Depreciation and amortization

 

 

304

 

 

 

297

 

Other taxes

 

 

85

 

 

 

83

 

Impairment of assets and other charges

 

 

546

 

 

 

 

Total operating expenses