Significant Accounting Policies

3 Months Ended

Mar. 31, 2025

Note 2. Significant Accounting Policies

As permitted by the rules and regulations of the SEC, the Companies’ accompanying unaudited Consolidated Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at March 31, 2025 and results of operations, changes in equity and cash flows for the three months ended March 31, 2025 and 2024. Such adjustments are normal and recurring in nature unless otherwise noted.

The Companies make certain estimates and assumptions in preparing their Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from those estimates.

The Companies’ accompanying unaudited Consolidated Financial Statements include, after eliminating intercompany transactions and balances, their accounts, those of their respective majority-owned subsidiaries and non-wholly-owned entities in which they have a controlling financial interest. For certain partnership structures, income is allocated based on the liquidation value of the underlying contractual arrangements. Stonepeak’s 50% ownership interest in OSWP is reflected as noncontrolling interest in the Companies’ Consolidated Financial Statements.

The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Information for quarterly periods is affected by seasonal variations in sales, rate changes, electric fuel and other energy-related purchases, purchased gas expenses and other factors.

Certain amounts in the Companies’ 2024 Consolidated Financial Statements and Notes have been reclassified to conform to the 2025 presentation for comparative purposes; however, such reclassifications did not affect the Companies’ net income, total assets, liabilities, equity or cash flows.

Amounts disclosed for Dominion Energy are inclusive of Virginia Power, where applicable. There have been no significant changes from Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, with the exception of the items described below.

Cash, Restricted Cash and Equivalents

Restricted Cash and Equivalents

The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within the Companies’ Consolidated Balance Sheets to the corresponding amounts reported within the Companies’ Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024:


	Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period
	March 31, 2025		March 31, 2024		December 31, 2024		December 31, 2023
(millions)
Dominion Energy
Cash and cash equivalents(1)	$	355	$	306	$	310	$	217
Restricted cash and equivalents(2)(3)(4)		122		30		55		84
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	477	$	336	$	365	$	301
Virginia Power
Cash and cash equivalents	$	180	$	119	$	160	$	90
Restricted cash and equivalents(3)(4)		114		6		46		—
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	294	$	125	$	206	$	90

(1)

At March 31, 2024 and December 31, 2023, Dominion Energy had $41 million and $33 million, respectively, of cash and cash equivalents included in assets held for sale.

(2)

At both March 31, 2024 and December 31, 2023, Dominion Energy had $4 million of restricted cash and equivalents included in current assets held for sale with the remaining balances presented within other assets in Dominion Energy’s Consolidated Balance Sheets.

(3)

Includes $108 million, $41 million and $6 million at VPFS attributable to VIEs at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

(4)

Unless otherwise noted, restricted cash and equivalents balances are presented within other current assets in the Companies’ Consolidated Balance Sheets.

Supplemental Cash Flow Information

The following table provides supplemental disclosure of cash flow information related to Dominion Energy:


Three Months Ended March 31,	2025		2024
(millions)
Significant noncash investing and financing activities:(1)
Accrued capital expenditures	$	1,037	$	753
Leases(2)		68		161

(1)

See Note 3 for noncash financing activities related to debt assumed with the closing of the East Ohio Transaction.

(2)

Includes $11 million and $26 million of financing leases at March 31, 2025 and 2024, respectively, and $57 million and $135 million of operating leases at March 31, 2025 and 2024, respectively.

The following table provides supplemental disclosure of cash flow information related to Virginia Power:


Three Months Ended March 31,	2025		2024
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	851	$	566
Leases(1)		50		142

(1)

Includes $9 million and $22 million of financing leases at March 31, 2025 and 2024, respectively, and $41 million and $120 million of operating leases at March 31, 2025 and 2024, respectively.