Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease Assets and Liabilities Recorded in Consolidated Balance Sheets

At December 31, 2019, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:

	December 31, 2019
(millions)
Dominion Energy
Lease assets:
Operating lease assets(1)	$	499
Finance lease assets(2)		140
Total lease assets	$	639
Lease liabilities:
Operating lease liabilities(3)	$	59
Finance lease liabilities(4)		29
Total lease liabilities—current		88
Operating lease liabilities(5)		442
Finance lease liabilities		105
Total lease liabilities—noncurrent		547
Total lease liabilities	$	635
Virginia Power
Operating lease assets(1)	$	212
Finance lease assets(2)		19
Total lease assets	$	231
Lease liabilities:
Operating lease liabilities(3)	$	30
Finance lease liabilities(4)		3
Total lease liabilities—current		33
Operating lease liabilities(5)		180
Finance lease liabilities		16
Total lease liabilities—noncurrent		196
Total lease liabilities	$	229
Dominion Energy Gas
Operating lease assets(1)	$	37
Finance lease assets(2)		6
Total lease assets	$	43
Lease liabilities:
Operating lease liabilities(3)	$	6
Finance lease liabilities(4)		1
Total lease liabilities—current		7
Operating lease liabilities(5)		29
Finance lease liabilities		5
Total lease liabilities—noncurrent		34
Total lease liabilities	$	41

(1) Included in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets.

(2) Included in property, plant and equipment in the Companies’ Consolidated Balance Sheets, net of $27 million, $4 million and $1 million of accumulated amortization at Dominion Energy, Virginia Power and Dominion Energy Gas, respectively, at December 31, 2019.

(3) Included in other current liabilities in the Companies’ Consolidated Balance Sheets.

(4) Included in securities due within one year in the Companies’ Consolidated Balance Sheets.

(5) Included in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

Summary of Total Lease Cost

For the year ended December 31, 2019, total lease cost associated with the Companies’ leasing arrangements consisted of the following:

	Year Ended December 31, 2019
(millions)
Dominion Energy
Finance lease cost:
Amortization	$	20
Interest		4
Operating lease cost		87
Short-term lease cost		30
Variable lease cost		6
Total lease cost	$	147
Virginia Power
Operating lease cost	$	41
Short-term lease cost		13
Variable lease cost		2
Total lease cost	$	56
Dominion Energy Gas
Operating lease cost	$	7
Short-term lease cost		7
Total lease cost	$	14

Cash Paid for Amounts Included in Measurement of Lease Liabilities

For the year ended December 31, 2019, 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:

	Year Ended December 31, 2019
(millions)
Dominion Energy
Operating cash flows for finance leases	$	4
Operating cash flows for operating leases		121
Financing cash flows for finance leases		20
Virginia Power
Operating cash flows for operating leases		56
Dominion Energy Gas
Operating cash flows for operating leases		14

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

At December 31, 2019, the weighted average remaining lease term and weighted discount rate for the Companies’ finance and operating leases were as follows:

	December 31, 2019
Dominion Energy
Weighted average remaining lease term—finance leases		5 years
Weighted average remaining lease term—operating leases		21 years
Weighted average discount rate—finance leases		3.84	%
Weighted average discount rate—operating leases		4.47	%
Virginia Power
Weighted average remaining lease term—finance leases		6 years
Weighted average remaining lease term—operating leases		20 years
Weighted average discount rate—finance leases		4.12	%
Weighted average discount rate—operating leases		4.29	%
Dominion Energy Gas
Weighted average remaining lease term—finance leases		6 years
Weighted average remaining lease term—operating leases		11 years
Weighted average discount rate—finance leases		4.08	%
Weighted average discount rate—operating leases		4.37	%

Scheduled Maturities of Lease Liabilities

The Companies’ lease liabilities have the following maturities:

Maturity of Lease Liabilities	Dominion Energy						Virginia Power						Dominion Energy Gas
	Operating			Finance			Operating			Finance			Operating			Finance
(millions)
2020	$	72		$	34		$	34		$	4		$	7		$	2
2021		65			31			30			4			6			1
2022		55			29			24			4			5			1
2023		45			26			19			3			4			1
2024		36			19			14			3			3			1
After 2024		582			9			205			4			20			1
Total undiscounted lease payments		855			148			326			22			45			7
Present value adjustment		(377	)		(14	)		(139	)		(3	)		(10	)		(1	)
Present value of lease liabilities	$	478		$	134		$	187		$	19		$	35		$	6