Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease Assets and Liabilities Recorded in Consolidated Balance Sheets

At December 31, 2023 and 2022, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:

	Dominion Energy				Virginia Power
At December 31,	2023		2022		2023		2022
(millions)
Lease assets:
Operating lease assets(1)	$	578	$	473	$	393	$	294
Finance lease assets(2)		258		144		104		82
Total lease assets	$	836	$	617	$	497	$	376
Lease liabilities:
Operating lease liabilities(3)	$	36	$	39	$	20	$	21
Finance lease liabilities(4)		60		46		31		17
Total lease liabilities - current		96		85		51		38
Operating lease liabilities (5)		627		514		377		273
Finance lease liabilities(6)		203		104		72		65
Total lease liabilities - noncurrent		830		618		449		338
Total lease liabilities	$	926	$	703	$	500	$	376

(1)Dominion Energy includes $561 million and $451 million at December 31, 2023 and 2022, respectively, in other deferred charges and other assets, with the remaining balance in noncurrent assets held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in other deferred charges and other assets in its Consolidated Balance Sheets.

(2)Dominion Energy includes $244 million and $127 million at December 31, 2023 and 2022, respectively, in property, plant and equipment in its Consolidated Balance Sheets, net of $142 million and $106 million at December 31, 2023 and 2022, respectively, of accumulated amortization, with the remaining balance in noncurrent assets held for sale. Virginia Power’s balances are included in property, plant and equipment in its Consolidated Balance Sheets, net of $51 million and $33 million at December 31, 2023 and 2022, respectively, of accumulated amortization.

(3)Dominion Energy includes $32 million and $34 million at December 31, 2023 and 2022, respectively, in other current liabilities, with the remaining balance in current liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are in other current liabilities in its Consolidated Balance Sheets.

(4)Dominion Energy includes $57 million and $42 million at December 31, 2023 and 2022, respectively, in securities due within one year, with the remaining balance in current liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in securities due within one year in its Consolidated Balance Sheets.

(5)Dominion Energy includes $610 million and $494 million at December 31, 2023 and 2022, respectively, in other deferred credits and other liabilities, with the remaining balance in noncurrent liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in other deferred credits and other liabilities in its Consolidated Balance Sheets.

(6)Dominion Energy includes $192 million and $91 million at December 31, 2023 and 2022, respectively, in other long-term debt, with the remaining balance in noncurrent liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in other long-term debt in its Consolidated Balance Sheets.

Summary of Total Lease Cost

For the years ended December 31, 2023, 2022 and 2021, total lease cost associated with the Companies’ leasing arrangements consisted of the following:

	Dominion Energy							Virginia Power
Year ended December 31,	2023		2022		2021			2023		2022		2021
(millions)
Finance lease cost:
Amortization(1)	$	50	$	41	$	40		$	24	$	15	$	12
Interest(2)		13		3		(3	)		4		3		1
Operating lease cost(3)		70		53		66			43		32		30
Short-term lease cost(4)		32		31		32			23		21		19
Variable lease cost		6		4		5			2		1		1
Total lease cost	$	171	$	132	$	140		$	96	$	72	$	63

(1)Dominion Energy includes $3 million for each of the years ended December 31, 2023, 2022 and 2021 reflected in discontinued operations in its Consolidated Statements of Income.

(2)Dominion Energy includes $1 million for both the years ended December 31, 2023 and 2022 and less than $1 million for the year ended December 31, 2021 reflected in discontinued operations in its Consolidated Statements of Income.

(3)Dominion Energy includes $5 million, $6 million and $8 million for the years ended December 31, 2023, 2022 and 2021, respectively, reflected in discontinued operations in its Consolidated Statements of Income.

(4)Dominion Energy includes $2 million for each of the years ended December 31, 2023, 2022 and 2021 reflected in discontinued operations in its Consolidated Statements of Income.

Cash Paid for Amounts Included in Measurement of Lease Liabilities

For the years ended December 31, 2023, 2022 and 2021, cash paid for amounts included in the measurement of the lease liabilities consisted of the following amounts, included in the Companies’ Consolidated Statements of Cash Flows:

	Dominion Energy							Virginia Power
Year ended December 31,	2023		2022		2021			2023		2022		2021
(millions)
Operating cash flows for    finance leases	$	13	$	3	$	(3	)	$	4	$	3	$	1
Operating cash flows for    operating leases		105		82		103			64		50		53
Financing cash flows for    finance leases		47		32		40			19		12		12

Weighted Average Remaining Lease Term and Weighted Discounted Rate for Finance and Operating Leases

At December 31, 2023 and 2022, the weighted average remaining lease term and weighted discount rate for the Companies’ finance and operating leases were as follows:

	Dominion Energy						Virginia Power
December 31,	2023			2022			2023			2022
Weighted average remaining lease term -    finance leases	5 years			4 years			5 years			6 years
Weighted average remaining lease term -    operating leases	31 years			29 years			33 years			30 years
Weighted average discount rate -    finance leases		7.14	%		5.77	%		7.28	%		6.12	%
Weighted average discount rate -    operating leases		4.11	%		3.91	%		4.18	%		3.90	%

Scheduled Maturities of Lease Liabilities

The Companies’ lease liabilities have the following maturities:

Maturity of Lease Liabilities	Dominion Energy						Virginia Power
(millions)	Operating			Finance			Operating			Finance
2024	$	45		$	77		$	24		$	37
2025		39			62			21			26
2026		36			54			18			20
2027		33			48			17			17
2028		32			41			17			12
After 2028		930			31			553			10
Total undiscounted lease payments		1,115			313			650			122
Present value adjustment		(451	)		(51	)		(253	)		(19	)
Present value of lease liabilities	$	664		$	262		$	397		$	103