Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 8. Fair Value Measurements

The Companies’ fair value measurements are made in accordance with the policies discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024. See Note 9 for additional information about the Companies’ derivatives and hedge accounting activities.

The Companies enter into certain physical and financial forwards, futures and options, which are considered Level 3 as they have one or more inputs that are not observable and are significant to the valuation. The discounted cash flow method is used to value Level 3 physical and financial forwards and futures contracts. An option model is used to value Level 3 physical options. The discounted cash flow model for forwards and futures calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. The inputs into the option models are the forward market prices, implied price volatilities, risk-free rate of return, the option expiration dates, the option strike prices, the original sales prices and volumes. For Level 3 fair value measurements, certain forward market prices and implied price volatilities are considered unobservable.

The following table presents the Companies’ quantitative information about Level 3 fair value measurements at March 31, 2025. The range and weighted-average are presented in dollars for market price inputs and percentages for price volatility.

			Dominion Energy				Virginia Power
	Valuation Techniques	Unobservable Input	Fair Value (millions)		Range	Weighted -average(1)	Fair Value (millions)		Range	Weighted -average(1)
Assets
Physical and financial forwards:
Natural gas(2)	Discounted cash flow	Market price (per Dth)(3)	$	11	(2)-5	(1)	$	11	(2)-4	(1)
FTRs	Discounted cash flow	Market price (per MWh)(3)		19	(4)-8	4		19	(4)-8	4
Electricity	Discounted cash flow	Market price (per MWh)(3)		178	29-117	48
Physical options:
Natural gas(2)	Option model	Market price (per Dth)(3)		76	3-8	4
		Price volatility(4)			11%-74%	44%
Total assets			$	284			$	30
Liabilities
Physical and financial forwards:
Natural gas(2)	Discounted cash flow	Market price (per Dth)(3)	$	2	(2)-4	(1)	$	2	(2)-4	(1)
FTRs	Discounted cash flow	Market price (per MWh)(3)		2	(6)-6	2		2	(6)-6	2
Electricity	Discounted cash flow	Market price (per MWh)(3)		11	30-117	55
Total liabilities			$	15			$	4

(1)Averages weighted by volume.

(2)Includes basis.

(3)Represents market prices beyond defined terms for Levels 1 and 2.

(4)Represents volatilities unrepresented in published markets.

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

Significant Unobservable Inputs	Position	Change to Input	Impact on Fair Value Measurement
Market price	Buy	Increase (decrease)	Gain (loss)
Market price	Sell	Increase (decrease)	Loss (gain)
Price volatility	Buy	Increase (decrease)	Gain (loss)
Price volatility	Sell	Increase (decrease)	Loss (gain)

Recurring Fair Value Measurements

The following table presents the Companies’ assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

	Dominion Energy								Virginia Power
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
March 31, 2025
Assets
Derivatives:
Commodity	$	—	$	117	$	284	$	401	$	—	$	33	$	30	$	63
Interest rate		—		654		—		654		—		40		—		40
Foreign currency exchange rate		—		9		—		9		—		9		—		9
Investments(1):
Equity securities:
U.S.		5,186		2		—		5,188		2,662		2		—		2,664
International		162		—		—		162		97		—		—		97
Fixed income:
Corporate debt instruments		—		522		—		522		—		299		—		299
Government securities		150		1,650		—		1,800		91		961		—		1,052
Cash equivalents and other		29		—		—		29		—		—		—		—
Total assets	$	5,527	$	2,954	$	284	$	8,765	$	2,850	$	1,344	$	30	$	4,224
Liabilities
Derivatives:
Commodity	$	—	$	135	$	15	$	150	$	—	$	41	$	4	$	45
Interest rate		—		204		—		204		—		17		—		17
Foreign currency exchange rate		—		121		—		121		—		121		—		121
Total liabilities	$	—	$	460	$	15	$	475	$	—	$	179	$	4	$	183
December 31, 2024
Assets
Derivatives:
Commodity	$	—	$	95	$	399	$	494	$	—	$	45	$	70	$	115
Interest rate		—		875		—		875		—		230		—		230
Foreign currency exchange rate		—		30		—		30		—		30		—		30
Investments(1):
Equity securities:
U.S.		5,403		2		—		5,405		2,769		2		—		2,771
International		165		—		—		165		99		—		—		99
Fixed income:
Corporate debt instruments		—		518		—		518		—		294		—		294
Government securities		138		1,605		—		1,743		85		939		—		1,024
Cash equivalents and other		29		—		—		29		—		—		—		—
Total assets	$	5,735	$	3,125	$	399	$	9,259	$	2,953	$	1,540	$	70	$	4,563
Liabilities
Derivatives:
Commodity	$	—	$	108	$	15	$	123	$	—	$	31	$	2	$	33
Interest rate		—		197		—		197		—		—		—		—
Foreign currency exchange rate		—		192		—		192		—		192		—		192
Total liabilities	$	—	$	497	$	15	$	512	$	—	$	223	$	2	$	225

(1)Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $209 million and $212 million of assets at Dominion Energy, inclusive of $75 million and $76 million at Virginia Power, at March 31, 2025 and December 31, 2024, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

The following table presents the net change in the Companies’ assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

	Dominion Energy						Virginia Power
Period Ended March 31,	2025			2024			2025			2024
(millions)
Beginning balance	$	384		$	86		$	68		$	(116	)
Total realized and unrealized    gains (losses):
Included in earnings:
Operating revenue		13			(8	)
Electric fuel and other energy- related purchases		(25	)		(121	)		(27	)		(119	)
Discontinued operations		—			(1	)
Included in regulatory assets/     liabilities		(107	)		131			(32	)		77
Settlements		4			76			17			100
Purchases		—			27			—			20
Ending balance	$	269		$	190		$	26		$	(38	)

Dominion Energy had $13 million and $(8) million of unrealized gains (losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three months ended March 31, 2025 and 2024, respectively. Virginia Power had no unrealized gains or losses for the three months ended March 31, 2025 and 2024.

Fair Value of Financial Instruments

Substantially all of the Companies’ financial instruments are recorded at fair value, with the exception of the instruments described below, which are reported at historical cost. Estimated fair values have been determined using available market information and valuation methodologies considered appropriate by management. The carrying amount of cash, restricted cash and equivalents, customer and other receivables, affiliated receivables, short-term debt, affiliated current borrowings, payables to affiliates and accounts payable are representative of fair value because of the short-term nature of these instruments. For the Companies’ financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

	Dominion Energy				Virginia Power
	Carrying Amount		Estimated Fair Value(1)		Carrying Amount		Estimated Fair Value(1)
(millions)
March 31, 2025
Long-term debt(2)	$	37,306	$	35,292	$	20,461	$	19,010
Securitization bonds(3)		1,217		1,231		1,217		1,231
Junior subordinated notes(2)		3,222		3,337
December 31, 2024
Long-term debt(2)	$	34,533	$	32,167	$	19,224	$	17,578
Securitization bonds(3)		1,217		1,218	$	1,217	$	1,218
Junior subordinated notes(2)		3,223		3,372

(1)Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2)Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. There were no fair value hedges associated with fixed-rate debt at March 31, 2025 and December 31, 2024.

(3)Carrying amount includes current portions included in securities due within one year.