Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

NOTE 15. LEASES

At December 31, 2024 and 2023, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:

	Dominion Energy				Virginia Power
At December 31,	2024		2023		2024		2023
(millions)
Lease assets:
Operating lease assets(1)	$	588	$	578	$	410	$	393
Finance lease assets(2)		267		258		146		104
Total lease assets	$	855	$	836	$	556	$	497
Lease liabilities:
Operating lease liabilities(3)	$	36	$	36	$	22	$	20
Finance lease liabilities(4)		62		60		35		31
Total lease liabilities - current		98		96		57		51
Operating lease liabilities (5)		644		627		399		377
Finance lease liabilities(6)		214		203		110		72
Total lease liabilities - noncurrent		858		830		509		449
Total lease liabilities	$	956	$	926	$	566	$	500

(1)Dominion Energy includes $588 million and $561 million at December 31, 2024 and 2023, respectively, in other deferred charges and other assets, with the remaining balance at December 31, 2023 in 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 $267 million and $244 million at December 31, 2024 and 2023, respectively, in property, plant and equipment in its Consolidated Balance Sheets, net of $199 million and $142 million at December 31, 2024 and 2023, respectively, of accumulated amortization, with the remaining balance at December 31, 2023 in assets held for sale. Virginia Power’s balances are included in property, plant and equipment in its Consolidated Balance Sheets, net of $88 million and $51 million at December 31, 2024 and 2023, respectively, of accumulated amortization.

(3)Dominion Energy includes $36 million and $32 million at December 31, 2024 and 2023, respectively, in other current liabilities, with the remaining balance at December 31, 2023 in 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 $62 million and $57 million at December 31, 2024 and 2023, respectively, in securities due within one year, with the remaining balance at December 31, 2023 in 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 $644 million and $610 million at December 31, 2024 and 2023, respectively, in other deferred credits and other liabilities, with the remaining balance at December 31, 2023 in 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 $214 million and $192 million at December 31, 2024 and 2023, respectively, in other long-term debt, with the remaining balance in 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.

In addition to the amounts disclosed above, Dominion Energy’s Consolidated Balance Sheets at both December 31, 2024 and 2023 includes property, plant and equipment of $382 million related to facilities subject to power purchase agreements under which Dominion Energy is the lessor. There was $38 million and $28 million of accumulated depreciation related to these facilities recorded in Dominion Energy’s Consolidated Balance Sheets at December 31, 2024 and 2023, respectively.

For the years ended December 31, 2024, 2023 and 2022, total lease cost associated with the Companies’ leasing arrangements consisted of the following:

	Dominion Energy						Virginia Power
Year ended December 31,	2024		2023		2022		2024		2023		2022
(millions)
Finance lease cost:
Amortization(1)	$	54	$	50	$	41	$	24	$	24	$	15
Interest(2)		14		13		3		5		4		3
Operating lease cost(3)		81		70		53		60		43		32
Short-term lease cost(4)		22		32		31		16		23		21
Variable lease cost		6		6		4		2		2		1
Total lease cost	$	177	$	171	$	132	$	107	$	96	$	72

(1)Dominion Energy includes $— million, $3 million and $3 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income.

(2)Dominion Energy includes $— million, $1 million and $1 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income.

(3)Dominion Energy includes $— million, $5 million and $6 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income.

(4)Dominion Energy includes $— million, $2 million and $2 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income.

For the years ended December 31, 2024, 2023 and 2022, 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,	2024		2023		2022		2024		2023		2022
(millions)
Operating cash flows for    finance leases	$	14	$	13	$	3	$	5	$	4	$	3
Operating cash flows for    operating leases		106		105		82		74		64		50
Financing cash flows for    finance leases		50		47		32		23		19		12

In addition to the amounts disclosed above, Dominion Energy’s Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022, include $18 million, $21 million and $16 million, respectively, of rental revenue, included in operating revenue and $10 million, $10 million and $34 million, respectively, of depreciation expense, included in depreciation and amortization, related to facilities subject to power purchase agreements under which Dominion Energy is the lessor.

In April 2024, Dominion Energy agreed to pay $47 million in connection with a settlement of an agreement related to the offshore wind installation vessel under development and recorded a charge of $47 million ($35 million after-tax) in the first quarter of 2024 (reflected in the Corporate and Other segment) within impairment of assets and other charges in its Consolidated Statements of Income.

At December 31, 2024 and 2023, 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,	2024			2023			2024			2023
Weighted-average remaining lease term -    finance leases	5 years			5 years			5 years			5 years
Weighted-average remaining lease term -    operating leases	31 years			31 years			32 years			33 years
Weighted-average discount rate -    finance leases		5.61	%		7.14	%		6.71	%		7.28	%
Weighted-average discount rate -    operating leases		4.42	%		4.11	%		5.13	%		4.18	%

The Companies’ lease liabilities have the following maturities:

Maturity of Lease Liabilities	Dominion Energy						Virginia Power
(millions)	Operating			Finance			Operating			Finance
2025	$	41		$	78		$	25		$	43
2026		39			69			23			36
2027		36			64			22			32
2028		35			56			21			26
2029		34			40			20			18
After 2029		1,131			17			740			17
Total undiscounted lease payments		1,316			324			851			172
Present value adjustment		(636	)		(48	)		(430	)		(27	)
Present value of lease liabilities	$	680		$	276		$	421		$	145

Offshore Wind Vessel Leasing Arrangement

In December 2020, Dominion Energy signed an agreement (most recently amended in August 2024) 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 is providing equity and has obtained financing commitments from debt investors, totaling $715 million, to fund the estimated project costs. The completed project is expected to be delivered to the CVOW Commercial Project in the third quarter of 2025. Dominion Energy has been appointed to act as the construction agent for the lessor, during which time Dominion Energy will request cash draws from the lessor and debt investors to fund all project costs, which totaled $598 million as of December 31, 2024. If the project is terminated under certain events of default, Dominion Energy could be required to pay up to 100% of the then funded amount.

The initial lease term will commence once construction is substantially complete and the vessel is delivered and will mature after five years. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional term, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the outstanding project costs, or (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the outstanding project costs, Dominion Energy may be required to make a payment to the lessor for the difference between the outstanding project costs and sale proceeds. Dominion Energy is not considered the owner during construction for financial accounting purposes and, therefore, will not reflect the construction activity in its consolidated financial statements. Dominion Energy expects to recognize a right-of-use asset and a corresponding finance lease liability at the commencement of the

lease term. Dominion Energy will be considered the owner of the leased property for tax purposes, and as a result, will be entitled to tax deductions for depreciation and interest expense.