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Derivatives and Hedge Accounting Activities (Tables)

12 Months Ended

Dec. 31, 2021

The tables below present Dominion Energy’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

	December 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	153	$	13	$	—	$	140	$	117	$	9	$	—	$	108
Exchange		9		7		—		2		49		24		—		25
Interest rate contracts:
Over-the-counter		323		49		—		274		230		13		—		217
Foreign currency exchange rate contracts:
Over-the-counter		8		—		—		8		—		—		—		—
Total derivatives, subject to a master netting or similar arrangement	$	493	$	69	$	—	$	424	$	396	$	46	$	—	$	350

(1)	Excludes $120 million and $1 million of derivative assets at December 31, 2021 and 2020, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

	December 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	95	$	13	$	54	$	28	$	30	$	9	$	—	$	21
Exchange		374		7		367		—		24		24		—		—
Interest rate contracts:
Over-the-counter		399		49		11		339		431		13		17		401
Total derivatives, subject to a master netting or similar arrangement	$	868	$	69	$	432	$	367	$	485	$	46	$	17	$	422

(1)	Excludes $1 million of derivative liabilities at December 31, 2020 which are not subject to master netting or similar arrangements.

Schedule of Volume of Derivative Activity

The following table presents the volume of Dominion Energy’s derivative activity as of December 31, 2021. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.

	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		34		5
Basis		156		446
Electricity (MWh in millions):
Fixed price		15		31
FTRs		44		—
Interest rate⁽²⁾ (in millions)	$	1,537	$	9,859
Foreign currency exchange rate⁽²⁾ (in millions)	501 kr.		4,581 kr.

(1) Includes options.

(2)	Maturity is determined based on final settlement period.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to losses on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheets at December 31, 2021:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(358	)	$	(40	)	396 months
Total	$	(358	)	$	(40	)

Schedule of Amounts Recorded on Balance Sheet Related to Cumulative Basis Adjustments for Fair Value Hedges

The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges all of which related to discontinued hedging relationships at both December 31, 2021 and 2020, respectively:

	Carrying Amount of the Hedged Asset (Liability)						Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets (Liabilities)
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
(millions)
Long-term debt	$	(352	)	$	(1,153	)	$	(2	)	$	(3	)

Fair Value of Derivatives

Fair Value and Gains and Losses on Derivative Instruments

The following tables present the fair values of Dominion Energy’s derivatives and where they are presented in its Consolidated Balance Sheets:

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At December 31, 2021
ASSETS
Current Assets
Commodity	$	—	$	103	$	103
Interest rate		1		17		18
Foreign currency exchange rate		—		1		1
Total current derivative assets⁽¹⁾		1		121		122
Noncurrent Assets
Commodity		—		179		179
Interest rate		145		160		305
Foreign currency exchange rate		—		7		7
Total noncurrent derivative assets⁽²⁾		145		346		491
Total derivative assets	$	146	$	467	$	613
LIABILITIES
Current Liabilities
Commodity	$	—	$	304	$	304
Interest rate		42		13		55
Total current derivative liabilities⁽³⁾		42		317		359
Noncurrent Liabilities
Commodity		—		165		165
Interest rate		295		49		344
Total noncurrent derivative liabilities⁽⁴⁾		295		214		509
Total derivative liabilities	$	337	$	531	$	868
At December 31, 2020
ASSETS
Current Assets
Commodity	$	—	$	58	$	58
Interest rate		—		9		9
Total current derivative assets⁽¹⁾		—		67		67
Noncurrent Assets
Commodity		—		109		109
Interest rate		66		155		221
Total noncurrent derivative assets⁽²⁾		66		264		330
Total derivative assets	$	66	$	331	$	397
LIABILITIES
Current Liabilities
Commodity	$	—	$	42	$	42
Interest rate		363		10		373
Total current derivative liabilities⁽³⁾		363		52		415
Noncurrent Liabilities
Commodity		—		13		13
Interest rate		19		39		58
Total noncurrent derivative liabilities⁽⁴⁾		19		52		71
Total derivative liabilities	$	382	$	104	$	486

(1)	At December 31, 2021, all current derivative assets are presented in other current assets in Dominion Energy’s Consolidated Balance Sheets. At December 31, 2020, $63 million is included in other current assets and the remainder is recorded in current assets held for sale.

(2)

At December 31, 2021, all noncurrent derivative assets are presented in other deferred charges and other assets in Dominion Energy’s Consolidated Balance Sheets. At December 31, 2020, $330 million is included in other deferred charges and other assets and the remainder is recorded in noncurrent assets held for sale.

(3)	At December 31, 2021, all current derivative liabilities are presented in other current liabilities in Dominion Energy’s Consolidated Balance Sheets. At December 31, 2020, $412 million is included in other current liabilities and the remainder is recorded in current liabilities held for sale.

(4)

At December 31, 2021, all noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy’s Consolidated Balance Sheets. At December 31, 2020, $71 million is included in other deferred credits and other liabilities and the remainder is recorded in noncurrent liabilities held for sale.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables present the gains and losses on Dominion Energy’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Year Ended December 31, 2021
Derivative type and location of gains (losses):
Commodity⁽³⁾:				$	(1	)
Interest rate⁽⁴⁾	$	21			(60	)	$	135
Total	$	21		$	(61	)	$	135
Year Ended December 31, 2020
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	25
Purchased gas					(4	)
Discontinued operations					2
Total commodity	$	—		$	23		$	—
Interest rate:
Interest and related charges				$	(83	)
Discontinued operations					(236	)
Total interest rate	$	(309	)	$	(319	)	$	(332	)
Foreign currency exchange rate⁽⁵⁾		(11	)		(6	)		—
Total	$	(320	)	$	(302	)	$	(332	)
Year Ended December 31, 2019
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	142
Purchased gas					(3	)
Discontinued operations					4
Total commodity	$	125		$	143		$	—
Interest rate:
Interest and related charges				$	(49	)
Discontinued operations					(5	)
Total interest rate	$	(252	)	$	(54	)	$	(255	)
Foreign currency exchange rate⁽⁵⁾		(18	)		(6	)		—
Total	$	(145	)	$	83		$	(255	)

(1)	Amounts deferred into AOCI have no associated effect in Dominion Energy’s Consolidated Statements of Income.

(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.

(3)	Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in purchased gas.

(4)	Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in interest and related charges.

(5)	Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in discontinued operations.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
Year Ended December 31,	2021			2020			2019
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	(487	)	$	73		$	41
Purchased gas		(1	)		(20	)		(22	)
Electric fuel and other energy-related purchases		16			(104	)		(46	)
Discontinued operations		—			(11	)		(2	)
Interest rate:
Interest and related charges		97			87			3
Discontinued operations		—			5			—
Foreign currency exchange rate:
Discontinued operations		—			12			—
Total	$	(375	)	$	42		$	(26	)

(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.

Virginia Electric and Power Company

Offsetting Assets

The tables below present Virginia Power’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

	December 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	110	$	8	$	—	$	102	$	111	$	6	$	—	$	105
Exchange		7		7		—		—		1		1		—		—
Interest rate contracts:
Over-the-counter		146		20		—		126		66		7		—		59
Foreign currency exchange rate contracts:
Over-the-counter		8		—		—		8		—		—		—		—
Total derivatives, subject to a master netting or similar arrangement	$	271	$	35	$	—	$	236	$	178	$	14	$	—	$	164

(1)	Excludes $29 million and $3 million of derivative assets at December 31, 2021 and 2020, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

	December 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	84	$	8	$	54	$	22	$	6	$	6	$	—	$	—
Exchange		43		7		36		—		1		1		—		—
Interest rate contracts:
Over-the-counter		337		20		—		317		376		7		—		369
Total derivatives, subject to a master netting or similar arrangement	$	464	$	35	$	90	$	339	$	383	$	14	$	—	$	369

(1)	Excludes $6 million and $22 million of derivative liabilities at December 31, 2021 and 2020, respectively, which are not subject to master netting or similar arrangements.

Schedule of Volume of Derivative Activity

The following table presents the volume of Virginia Power’s derivative activity at December 31, 2021. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.

	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		24		5
Basis		139		440
Electricity (MWh in millions):
Fixed price		6		7
FTRs		44		—
Interest rate⁽²⁾ (in millions)	$	1,000	$	1,750
Foreign currency exchange rate⁽²⁾ (in millions)	501 kr.		4,581 kr.

(1)	Includes options.

(2)	Maturity is determined based on final settlement period.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to losses on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheets at December 31, 2021:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(45	)	$	(2	)	396 months
Total	$	(45	)	$	(2	)

Fair Value of Derivatives

The following tables present the fair values of Virginia Power’s derivatives and where they are presented in its Consolidated Balance Sheets:

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At December 31, 2021
ASSETS
Current Assets
Commodity	$	—	$	74	$	74
Interest rate		1		—		1
Foreign currency exchange rate		—		1		1
Total current derivative assets⁽¹⁾		1		75		76
Noncurrent Assets
Commodity		—		72		72
Interest rate		145		—		145
Foreign currency exchange rate		—		7		7
Total noncurrent derivative assets⁽²⁾		145		79		224
Total derivative assets	$	146	$	154	$	300
LIABILITIES
Current Liabilities
Commodity	$	—	$	92	$	92
Interest rate		42		—		42
Total current derivative liabilities		42		92		134
Noncurrent Liabilities
Commodity		—		41		41
Interest rate		295		—		295
Total noncurrent derivatives liabilities⁽³⁾		295		41		336
Total derivative liabilities	$	337	$	133	$	470
At December 31, 2020
ASSETS
Current Assets
Commodity	$	—	$	22	$	22
Total current derivative assets⁽¹⁾		—		22		22
Noncurrent Assets
Commodity		—		93		93
Interest rate		66		—		66
Total noncurrent derivative assets⁽²⁾		66		93		159
Total derivative assets	$	66	$	115	$	181
LIABILITIES
Current Liabilities
Commodity	$	—	$	28	$	28
Interest rate		362		—		362
Total current derivative liabilities		362		28		390
Noncurrent Liabilities
Commodity		—		1		1
Interest rate		14		—		14
Total noncurrent derivatives liabilities⁽³⁾		14		1		15
Total derivative liabilities	$	376	$	29	$	405

(1)	Current derivative assets are presented in other current assets in Virginia Power’s Consolidated Balance Sheets.

(2)	Noncurrent derivative assets are presented in other deferred charges and other assets in Virginia Power’s Consolidated Balance Sheets.

(3)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power’s Consolidated Balance Sheets.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables present the gains and losses on Virginia Power’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Year Ended December 31, 2021
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	17		$	(3	)	$	130
Total	$	17		$	(3	)	$	130
Year Ended December 31, 2020
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(37	)	$	(2	)	$	(338	)
Total	$	(37	)	$	(2	)	$	(338	)
Year Ended December 31, 2019
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(30	)	$	(1	)	$	(259	)
Total	$	(30	)	$	(1	)	$	(259	)

(1)	Amounts deferred into AOCI have no associated effect in Virginia Power’s Consolidated Statements of Income.

(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.

(3)	Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in interest and related charges.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
Year Ended December 31,	2021			2020			2019
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	(62	)	$	(104	)	$	(45	)
Electric fuel and other energy-related purchases		9			—			—
Total	$	(53	)	$	(104	)	$	(45	)

(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.