Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:


	Dominion Energy				Virginia Power
	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024
(millions)
Regulatory assets:
Deferred cost of fuel used in electric generation(1)	$	403	$	38	$	321	$	3
Securitized cost of fuel used in electric generation(2)		119		124		119		124
Deferred rider costs for Virginia electric utility(3)		195		293		195		293
Ash pond and landfill closure costs(4)		112		108		112		108
Deferred nuclear refueling outage costs(5)		63		97		63		80
NND Project costs(6)		138		138
Derivatives(7)		27		8		25		6
Other		175		186		79		83
Regulatory assets-current		1,232		992		914		697
Unrecognized pension and other postretirement benefit costs(8)		483		486		—	—
Deferred rider costs for Virginia electric utility(3)		741		651		741		651
Interest rate hedges(9)		166		167		—	—
AROs and related funding(10)		392		387
NND Project costs(6)		1,742		1,811
CCR remediation, ash pond and landfill closure costs(4)		2,916		2,898		2,569		2,560
Deferred cost of fuel used in electric generation(1)		7	—			7	—
Securitized cost of fuel used in electric generation(2)		955		1,040		955		1,040
Derivatives(7)		35		182		1		148
Other		722		666		130		138
Regulatory assets-noncurrent		8,159		8,288		4,403		4,537
Total regulatory assets	$	9,391	$	9,280	$	5,317	$	5,234
Regulatory liabilities:
Deferred cost of fuel used in electric generation(1)		15		92		15		92
Provision for future cost of removal and AROs(11)		119		119		119		119
Reserve for rate credits to electric utility customers(12)		56		73		—	—
Income taxes refundable through future rates(13)		83		88		64		64
Monetization of guarantee settlement(14)		67		67
Derivatives(7)		176		51		150		30
Other		53		89		39		80
Regulatory liabilities-current		569		579		387		385
Income taxes refundable through future rates(13)		2,941		2,988		2,112		2,168
Provision for future cost of removal and AROs(11)		1,878		1,809		1,278		1,210
Nuclear decommissioning trust(15)		2,224		2,115		2,224		2,115
Monetization of guarantee settlement(14)		535		568
Interest rate hedges(9)		326		406		326		406
Reserve for rate credits to electric utility customers(12)		139		161		—	—
Overrecovered other postretirement benefit costs(16)		196		183
Derivatives(7)		189		248		43		25
Other		157		283		104		215
Regulatory liabilities-noncurrent		8,585		8,761		6,087		6,139
Total regulatory liabilities	$	9,154	$	9,340	$	6,474	$	6,524

(1)

Reflects deferred fuel expenses as well as, beginning in June 2025, deferred electric capacity expenses for the Virginia and North Carolina jurisdictions of Virginia Power’s electric generation operations. Additionally, Dominion Energy includes deferred fuel expenses for the South Carolina jurisdiction of its electric generation operations.

(2)

Reflects under-recovered fuel costs for Virginia Power’s Virginia service territory securitized through the issuance of bonds by VPFS in February 2024. See Notes 13 and 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

(3)

Reflects deferrals under Virginia Power’s electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects.

(4)

Primarily reflects legislation in Virginia which requires any CCR asset located at certain Virginia Power stations to be closed by removing the CCR to an approved landfill or through beneficial reuse. These deferred costs are expected to be collected over a period between 15 and 18 years commencing December 2021 through Rider CCR. Virginia Power is entitled to collect carrying costs on uncollected expenditures once expenditures have been made. In addition, the balance reflects amounts related to the EPA’s May 2024 final rule concerning CCR as discussed in Note 14 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

(5)

Primarily reflects deferred operation and maintenance costs at Virginia Power incurred in connection with the refueling of any nuclear-powered generating plant as required by Virginia legislation. Virginia Power deferred costs will be amortized over the refueling cycle, not to exceed 18 months.

(6)

Reflects expenditures by DESC associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from DESC electric service customers over a 20-year period ending in 2039.

(7)

Represents changes in the fair value of derivatives, excluding separately presented interest rate hedges, that following settlement are expected to be recovered from or refunded to customers.

(8)

Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered or refunded through future rates generally over the expected remaining service period of plan participants by certain of Dominion Energy’s rate-regulated subsidiaries.

(9)

Reflects interest rate hedges recoverable from or refundable to customers. Certain of these instruments are settled and any related payments are being amortized into interest expense over the life of the related debt, which has a weighted-average useful life of approximately 24 years for both Dominion Energy and Virginia Power as of June 30, 2025.

(10)

Represents uncollected costs, including deferred depreciation and accretion expense, related to legal obligations associated with the future retirement of generation, transmission and distribution properties. The AROs primarily relate to DESC’s electric generating facilities, including Summer, and are expected to be recovered over the related property lives and periods of decommissioning which may range up to approximately 105 years.

(11)

Rates charged to customers by Dominion Energy and Virginia Power’s regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

(12)

Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited over an estimated 11-year period effective February 2019, in connection with the SCANA Merger Approval Order.

(13)

Amounts recorded to pass the effect of reduced income taxes from the 2017 Tax Reform Act to customers in future periods, which will primarily reverse at the weighted-average tax rate that was used to build the reserves over the remaining book life of the property, net of amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC equity.

(14)

Reflects amounts to be refunded to DESC electric service customers over a 20-year period ending in 2039 associated with the monetization of a bankruptcy settlement agreement.

(15)

Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses, changes in fair value and taxes thereon, as applicable) for the future decommissioning of Virginia Power’s utility nuclear generation stations, in excess of the related AROs.

(16)

Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.