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Investments (Tables)
Nov. 18, 2019
Equity and Fixed Income Securities, Insurance Contracts and Cash Equivalents in Decommissioning Trust Funds
Decommissioning Trust Securities
Dominion Energy holds equity and fixed income securities, insurance contracts and cash equivalents in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Dominion Energy’s decommissioning trust funds are summarized below:
 
          Amortized          
Cost
 
  
Total
        Unrealized        
Gains
 
  
Total
  Unrealized  
Losses
 
  
Fair
      Value      
 
(millions)
  
 
  
 
  
 
  
 
September 30, 2019
   
     
     
     
 
Equity securities:
(1)
    
     
     
     
 
U.S.
 
$
1,787
 
  
$
2,169
 
  
$
(30
)
 
$
3,926
 
Fixed income securities:
(2)
  
 
 
  
 
 
  
 
 
  
 
 
Corporate debt instruments
 
 
442
 
  
 
30
 
  
 
—
 
  
 
472
 
Government securities
 
 
1,082
 
  
 
44
 
  
 
(4
)
 
 
1,122
 
Common/collective trust funds
 
 
105
 
  
 
4
 
  
 
—
 
  
 
109
 
Insurance contracts
 
 
210
 
  
 
—
 
  
 
—
 
  
 
210
 
Cash equivalents and other
(3)
  
 
21
 
  
 
—
 
  
 
—
 
  
 
21
 
                                 
Total
 
$
3,647
 
  
$
2,247
 
  
$
(34
)
 (4)
  
$
5,860
 
                                 
December 31, 2018
   
     
     
     
 
Equity securities:
(1)
    
     
     
     
 
U.S.
  $
1,741
    $
1,640
    $
(51
 )   $
3,330
 
Fixed income securities:
(2)
    
     
     
     
 
Corporate debt instruments
   
435
     
5
     
(9
 )    
431
 
Government securities
   
1,092
     
17
     
(12
 )    
1,097
 
Common/collective trust funds
   
76
     
—
     
—
     
76
 
Cash equivalents and other
   
4
     
—
     
—
     
4
 
                                 
Total
  $
3,348
    $
1,662
    $
(72
 )
 (4)
   $
4,938
 
                                 
(1)
Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.
(2)
Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability.
(3)
Includes pending sales of securities of $
3
million at September 30, 2019.
(4)
The fair value of securities in an unrealized loss position was $
277
million and $
833
million at September 30, 2019 and December 31, 2018, respectively.
Unrealized Gain Loss on Equity
The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy’s nuclear decommissioning trusts is summarized below:
 
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
  
            2019            
 
  
            2018            
    
            2019            
    
            2018            
  
(millions)
 
 
  
   
 
  
 
  
 
Net gains recognized during the period
 
$
40
 
   $
243
   
 
 
  
$
         610
 
   $
267
 
Less: Net gains recognized during the period on securities sold during the period
 
 
(17
)
   
(7
 )  
 
 
  
 
(61
)
   
(42
 )
                                         
Unrealized gains recognized during the period on securities still held at September 30, 2019 and 2018
(1)
  
$
23
 
   $
236
   
 
 
  
$
549
 
   $
225
 
                                         
(1)
Included in other income and the nuclear decommissioning trust regulatory liability.
Investments Classified by Contractual Maturity Date
The fair value of Dominion Energy’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at September 30, 2019 by contractual maturity is as follows:
 
                Amount                
 
(millions)
  
 
Due in one year or less
 
$
212
 
Due after one year through five years
 
 
412
 
Due after five years through ten years
 
 
360
 
Due after ten years
 
 
719
 
         
Total
 
$
1,703
 
         
Marketable Securities
Presented below is selected information regarding Dominion Energy’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.
 
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
  
            2019            
 
  
            2018            
    
            2019            
    
            2018            
  
(millions)
  
 
  
 
  
 
  
 
  
 
Proceeds from sales
 
$
429
 
   $
457
     
   
$
       1,311
 
   $
1,301
 
Realized gains
(1)
  
 
53
 
    
24
     
   
 
152
 
    
96
 
Realized losses
(1)
  
 
25
 
    
18
     
   
 
75
 
    
60
 
(1)
Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.
Other-Than-Temporary Impairment Losses
Dominion Energy recorded other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds as follows:
 
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
  
      2019      
 
  
      2018      
    
      2019      
 
  
      2018      
  
(millions)
  
 
  
 
  
 
  
 
Total other-than-temporary impairment losses
 
$
1
 
   $
8
   
$
1
 
   $
25
 
Losses recognized in other comprehensive income (before taxes)
 
 
(1
)
   
(8
 )  
 
(1
)
   
(25
 )
                                 
Net impairment losses recognized in earnings
 
$
—
 
   $
—
   
$
—
 
   $
—
 
                                 
Virginia Electric and Power Company  
Equity and Fixed Income Securities, Insurance Contracts and Cash Equivalents in Decommissioning Trust Funds Virginia Power’s decommissioning trust funds are summarized below:
 
          Amortized          
Cost
 
  
Total
        Unrealized        
Gains
 
  
Total
    Unrealized    
Losses
 
  
Fair
      Value      
 
(millions)
  
 
  
 
  
 
  
 
September 30, 2019
   
     
     
     
 
Equity securities:
(1)
    
     
     
     
 
U.S.
  
$
890
 
  
$
1,013
 
  
$
(15
)
 
$
1,888
 
Fixed income securities:
(2)
  
 
 
  
 
 
  
 
 
  
 
 
Corporate debt instruments
 
 
257
 
  
 
16
 
  
 
—
 
  
 
273
 
Government securities
 
 
504
 
  
 
17
 
  
 
(1
)
 
 
520
 
Common/collective trust funds
 
 
46
 
  
 
—
 
  
 
—
 
  
 
46
 
Cash equivalents and other
(3)
  
 
11
 
  
 
—
 
  
 
—
 
  
 
11
 
                                 
Total
 
$
1,708
 
  
$
1,046
 
  
$
(16
)
 (4)
  
$
2,738
 
                                 
December 31, 2018
   
     
     
     
 
Equity securities:
(1)
    
     
     
     
 
U.S.
  $
858
    $
751
    $
(24
 )   $
1,585
 
Fixed income securities:
(2)
    
     
     
     
 
Corporate debt instruments
   
224
     
2
     
(5
 )    
221
 
Government securities
   
504
     
7
     
(5
 )    
506
 
Common/collective trust funds
   
51
     
—
     
—
     
51
 
Cash equivalents and other
(3)
    
6
     
—
     
—
     
6
 
                                 
Total
  $
1,643
    $
760
    $
(34
 )
 (4)
   $
2,369
 
                                 
(1)
Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.
(2)
Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability.
(3)
Includes pending sales of securities of $
5
million and $
6
million at September 30, 2019 and December 31, 2018, respectively.
(4)
The fair value of securities in an unrealized loss position was $
164
million and $
404
million at September 30, 2019 and December 31, 2018, respectively.
Unrealized Gain Loss on Equity
The portion of unrealized gains and losses that relates to equity securities held within Virginia Power’s nuclear decommissioning trusts is summarized below:
 
    Three Months Ended September 30,    
    
    Nine Months Ended September 30,    
  
  
2019
 
  
2018
   
2019
 
  
2018
 
(millions)
 
 
  
 
  
 
  
 
Net gains recognized during the period
 
$
30
 
   $
106
   
$
286
 
   $
118
 
Less: Net gains recognized during the period on securities sold during the period
 
 
(7
)
   
(3
 )  
 
(15
)
   
(26
 )
                                 
Unrealized gains recognized during the period on securities still held at September 30, 2019 and 2018
(1)
  
$
23
 
   $
103
   
$
271
 
   $
92
 
                                 
(1)
Included in other income and the nuclear decommissioning trust regulatory liability.
Investments Classified by Contractual Maturity Date
The fair value of Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at September 30, 2019 by contractual maturity is as follows:
 
            Amount            
 
(millions)
 
 
Due in one year or less
 
$
99
 
Due after one year through five years
 
 
183
 
Due after five years through ten years
 
 
180
 
Due after ten years
 
 
377
 
         
Total
 
$
839
 
         
Marketable Securities
Presented below is selected information regarding Virginia Power’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.
 
    Three Months Ended September 30,    
    
    Nine Months Ended September 30,    
  
  
2019
 
  
2018
   
2019
 
  
2018
 
(millions)
 
 
  
 
  
 
  
 
Proceeds from sales
 
$
230
 
   $
237
   
$
677
 
   $
651
 
Realized gains
(1)
  
 
21
 
    
11
   
 
46
 
    
44
 
Realized losses
(1)
  
 
6
 
    
5
   
 
18
 
    
17
 
(1)
Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.