Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2025

As permitted by the rules and regulations of the SEC, the Companies’ accompanying unaudited Consolidated Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at June 30, 2025, their results of operations and changes in equity for the three and six months ended June 30, 2025 and 2024 and their cash flows for the six months ended June 30, 2025 and 2024. Such adjustments are normal and recurring in nature unless otherwise noted.

Estimates

The Companies make certain estimates and assumptions in preparing their Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from those estimates.

Consolidation

The Companies’ accompanying unaudited Consolidated Financial Statements include, after eliminating intercompany transactions and balances, their accounts, those of their respective majority-owned subsidiaries and non-wholly-owned entities in which they have a controlling financial interest. For certain partnership structures, income is allocated based on the liquidation value of the underlying contractual arrangements. Stonepeak’s 50% ownership interest in OSWP is reflected as noncontrolling interest in the Companies’ Consolidated Financial Statements.

Reclassifications

Certain amounts in the Companies’ 2024 Consolidated Financial Statements and Notes have been reclassified to conform to the 2025 presentation for comparative purposes; however, such reclassifications did not affect the Companies’ net income, total assets, liabilities, equity or cash flows.

Amounts disclosed for Dominion Energy are inclusive of Virginia Power, where applicable. There have been no significant changes from Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, with the exception of the items described below.

Revision of Previously Issued Consolidated Financial Statements

During the second quarter of 2025, the Companies identified misstatements in their previously issued consolidated financial statements related to income taxes associated with investments held within their qualified nuclear decommissioning trusts, primarily a net understatement of deferred income taxes associated with unrealized gains and losses (reflected in the Corporate and Other segment and attributable to Contracted Energy and Dominion Energy Virginia). The Companies assessed the impacts of the misstatements from both quantitative and qualitative perspectives and determined that the related impacts were not material to any of the Companies' previously issued consolidated financial statements.

As a result, the Companies will revise their previously issued consolidated financial statements. Accordingly, all consolidated financial information contained in these consolidated financial statements and the accompanying notes has been revised to reflect the correction. The Companies will present the revision of their previously issued consolidated financial statements for the years ended December 31, 2024 and 2023 in connection with the future filing of their Annual Report on Form 10-K for the year ended December 31, 2025. Additionally, the Companies will present the revision of their previously issued consolidated financial statements for the three months ended March 31, 2025 and for the three and nine months ended September 30, 2024 in connection with future filings of their Quarterly Reports on Form 10-Q.

The following tables detail the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Statements of Income and Statements of Comprehensive Income for the periods presented:


	Dominion Energy
	Quarter-to-Date							Year-to-Date
Period Ended June 30, 2024	As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
(millions, except per share amounts)
Other income (expense)	$	238	$	5		$	243	$	357		$	9		$	366
Interest and related charges		469		1			470		1,043			2			1,045
Income from continuing operations including noncontrolling interests before income tax expense		574		4			578		952			7			959
Income tax expense		91		21			112		146			62			208
Net Income From Continuing Operations Including Noncontrolling Interests		483		(17	)		466		806			(55	)		751
Net Income Including Noncontrolling Interests		580		(17	)		563		1,021			(55	)		966
Net Income Attributable to Dominion Energy		580		(17	)		563		1,021			(55	)		966
Amounts Attributable to Dominion Energy
Net income from continuing operations		483		(17	)		466		806			(55	)		751
Net income attributable to Dominion Energy		580		(17	)		563		1,021			(55	)		966
EPS - Basic
Net income from continuing operations		0.54		(0.02	)		0.52		0.90			(0.06	)		0.84
Net income attributable to Dominion Energy		0.66		(0.02	)		0.64		1.16			(0.06	)		1.10
EPS - Diluted
Net income from continuing operations		0.54		(0.02	)		0.52		0.90			(0.06	)		0.84
Net income attributable to Dominion Energy		0.66		(0.02	)		0.64		1.16			(0.06	)		1.10
Comprehensive Income
Changes in unrealized net gains (losses) on investment securities(1)		7		(2	)		5		(19	)		2			(17	)
Total other comprehensive income (loss)		13		(2	)		11		6			2			8
Comprehensive income including noncontrolling interests		593		(19	)		574		1,027			(53	)		974
Comprehensive income attributable to Dominion Energy		593		(19	)		574		1,027			(53	)		974

(1)

As previously reported, net of $(2) million and $8 million tax for the three and six months ended June 30, 2024, respectively. As revised, net of $(4) million ($(2) million adjustment) and $10 million ($2 million adjustment) tax for the three and six months ended June 30, 2024, respectively.


	Virginia Power
	Quarter-to-Date							Year-to-Date
Period Ended June 30, 2024	As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
(millions)
Other income (expense)	$	38	$	1		$	39	$	101		$	2		$	103
Interest and related charges		204		—			204		394			—			394
Income before income tax expense		596		1			597		1,189			2			1,191
Income tax expense		117		3			120		245			8			253
Net Income Including Noncontrolling Interests		479		(2	)		477		944			(6	)		938
Net Income Attributable to Virginia Power		479		(2	)		477		944			(6	)		938
Comprehensive Income
Changes in unrealized net gains (losses) on investment securities(1)		1		(1	)		—		(4	)		—			(4	)
Total other comprehensive income (loss)		4		(1	)		3		7			—			7
Comprehensive income including noncontrolling interests		483		(3	)		480		951			(6	)		945
Comprehensive income attributable to Virginia Power		483		(3	)		480		951			(6	)		945

(1)

As previously reported, net of $- million and $1 million tax for the three and six months ended June 30, 2024, respectively. As revised, net of $(1) million ($(1) million adjustment) and $1 million ($- million adjustment) tax for the three and six months ended June 30, 2024, respectively.

The following table details the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Balance Sheets for the periods presented:


	Dominion Energy									Virginia Power
December 31, 2024	As Previously Reported			Adjustments			As Revised			As Previously Reported		Adjustments			As Revised
(millions)
Deferred income taxes	$	6,412		$	723		$	7,135		$	4,045	$	431		$	4,476
Regulatory liabilities - noncurrent		9,196			(435	)		8,761			6,574		(435	)		6,139
Other deferred credits and other liabilities		8,426			102			8,528			6,214		61			6,275
Total deferred credits and other liabilities		25,409			390			25,799			17,559		57			17,616
Total liabilities		72,223			390			72,613			43,234		57			43,291
Retained earnings		2,035			(394	)		1,641			12,194		(58	)		12,136
Accumulated other comprehensive income (loss)		(156	)		4			(152	)		27		1			28
Shareholders' equity		27,253			(390	)		26,863			22,214		(57	)		22,157
Total equity		30,192			(390	)		29,802			25,153		(57	)		25,096

The following table details the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Statements of Equity for the periods presented:


	Dominion Energy									Virginia Power
Three Months Ended June 30, 2024	As Previously Reported			Adjustments			As Revised			As Previously Reported		Adjustments			As Revised
(millions)
Retained earnings
Balance at March 31, 2024	$	2,091		$	(342	)	$	1,749		$	11,757	$	(49	)	$	11,708
Net income including noncontrolling interests		580			(17	)		563			479		(2	)		477
Balance at June 30, 2024		2,083			(359	)		1,724			12,236		(51	)		12,185
Accumulated other comprehensive income (loss)
Balance at March 31, 2024		(180	)		5			(175	)		19		2			21
Other comprehensive income (loss), net of tax		13			(2	)		11			4		(1	)		3
Balance at June 30, 2024		(167	)		3			(164	)		23		1			24
Shareholders' equity
Balance at March 31, 2024		27,457			(337	)		27,120			21,876		(47	)		21,829
Net income including noncontrolling interests		580			(17	)		563			479		(2	)		477
Other comprehensive income (loss), net of tax		13			(2	)		11			4		(1	)		3
Balance at June 30, 2024		27,073			(356	)		26,717			22,359		(50	)		22,309
Total equity
Balance at March 31, 2024		27,457			(337	)		27,120			21,876		(47	)		21,829
Net income including noncontrolling interests		580			(17	)		563			479		(2	)		477
Other comprehensive income (loss), net of tax		13			(2	)		11			4		(1	)		3
Balance at June 30, 2024		27,073			(356	)		26,717			22,359		(50	)		22,309


	Dominion Energy									Virginia Power
Six Months Ended June 30, 2024	As Previously Reported			Adjustments			As Revised			As Previously Reported		Adjustments			As Revised
(millions)
Retained earnings
Balance at December 31, 2023	$	2,229		$	(304	)	$	1,925		$	11,541	$	(45	)	$	11,496
Net income including noncontrolling interests		1,021			(55	)		966			944		(6	)		938
Balance at June 30, 2024		2,083			(359	)		1,724			12,236		(51	)		12,185
Accumulated other comprehensive income (loss)
Balance at December 31, 2023		(173	)		1			(172	)		16		1			17
Other comprehensive income (loss), net of tax		6			2			8			7		—			7
Balance at June 30, 2024		(167	)		3			(164	)		23		1			24
Shareholders' equity
Balance at December 31, 2023		27,567			(303	)		27,264			21,657		(44	)		21,613
Net income including noncontrolling interests		1,021			(55	)		966			944		(6	)		938
Other comprehensive income (loss), net of tax		6			2			8			7		—			7
Balance at June 30, 2024		27,073			(356	)		26,717			22,359		(50	)		22,309
Total equity
Balance at December 31, 2023		27,567			(303	)		27,264			21,657		(44	)		21,613
Net income including noncontrolling interests		1,021			(55	)		966			944		(6	)		938
Other comprehensive income (loss), net of tax		6			2			8			7		—			7
Balance at June 30, 2024		27,073			(356	)		26,717			22,359		(50	)		22,309

The following table details the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Statements of Cash Flows for the periods presented:


	Dominion Energy									Virginia Power
Six Months Ended June 30, 2024	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised
(millions)
Net income including noncontrolling interests	$	1,021		$	(55	)	$	966		$	944		$	(6	)	$	938
Operating Activities
Deferred income taxes		(128	)		54			(74	)		296			6			302
Other operating assets and liabilities		(293	)		1			(292	)		(133	)		—			(133	)
Net cash provided by operating activities		2,838			—			2,838			2,434			—			2,434

Cash, Restricted Cash and Equivalents

Restricted Cash and Equivalents

The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within the Companies’ Consolidated Balance Sheets to the corresponding amounts reported within the Companies’ Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024:


	Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period
	June 30, 2025		June 30, 2024		December 31, 2024		December 31, 2023
(millions)
Dominion Energy
Cash and cash equivalents(1)	$	344	$	140	$	310	$	217
Restricted cash and equivalents(2)(3)(4)		69		67		55		84
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	413	$	207	$	365	$	301
Virginia Power
Cash and cash equivalents	$	157	$	41	$	160	$	90
Restricted cash and equivalents(3)(4)		61		45		46		—
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	218	$	86	$	206	$	90

(1)

At June 30, 2024 and December 31, 2023, Dominion Energy had $1 million and $33 million, respectively, of cash and cash equivalents included in assets held for sale.

(2)

At June 30, 2024 and December 31, 2023, Dominion Energy had less than $1 million and $4 million, respectively, of restricted cash and equivalents included in assets held for sale.

(3)

Includes $51 million, $41 million and $40 million at VPFS attributable to VIEs at June 30, 2025, December 31, 2024 and June 30, 2024, respectively.

(4)

Unless otherwise noted, restricted cash and equivalents balances are presented within other current assets in the Companies’ Consolidated Balance Sheets.

Supplemental Cash Flow Information

The following table provides supplemental disclosure of cash flow information related to Dominion Energy:


Six Months Ended June 30,	2025		2024
(millions)
Significant noncash investing and financing activities:(1)
Accrued capital expenditures	$	871	$	929
Leases(2)		37		196

(1)

See Note 3 for noncash financing activities related to debt assumed with the closing of the East Ohio and Questar Gas Transactions.

(2)

Includes $25 million and $51 million of financing leases at June 30, 2025 and 2024, respectively, and $12 million and $145 million of operating leases at June 30, 2025 and 2024, respectively.

The following table provides supplemental disclosure of cash flow information related to Virginia Power:


Six Months Ended June 30,	2025		2024
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	685	$	749
Leases(1)		29		171

(1)

Includes $22 million and $42 million of financing leases at June 30, 2025 and 2024, respectively, and $7 million and $129 million of operating leases at June 30, 2025 and 2024, respectively.

Fair Value Measurements

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.

Commitments and Contingencies

As a result of issues generated in the ordinary course of business, the Companies are involved in legal proceedings before various courts and are periodically subject to governmental examinations (including by regulatory authorities), inquiries and investigations. Certain legal proceedings and governmental examinations involve demands for unspecified amounts of damages, are in an initial procedural phase, involve uncertainty as to the outcome of pending appeals or motions or involve significant factual issues that need to be resolved, such that it is not possible for the Companies to estimate a range of possible loss. For such matters that the Companies cannot estimate, a statement to this effect is made in the description of the matter. Other matters

may have progressed sufficiently through the litigation or investigative processes such that the Companies are able to estimate a range of possible loss. For legal proceedings and governmental examinations that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. The Companies maintain various insurance programs, including general liability insurance coverage which provides coverage for personal injury or wrongful death cases. Any accrued liability is recorded on a gross basis with a receivable also recorded for any probable insurance recoveries. Estimated ranges of loss are inclusive of legal fees and net of any anticipated insurance recoveries. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the Companies’ maximum possible loss exposure. The circumstances of such legal proceedings and governmental examinations will change from time to time and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the Companies’ financial position, liquidity or results of operations.

Guarantees, Surety Bonds and Letters of Credit

Dominion Energy enters into guarantee arrangements on behalf of its consolidated subsidiaries, primarily to facilitate their commercial transactions with third parties. If any of these subsidiaries fail to perform or pay under the contracts and the counterparties seek performance or payment, Dominion Energy would be obligated to satisfy such obligation. To the extent that a liability subject to a guarantee has been incurred by one of Dominion Energy’s consolidated subsidiaries, that liability is included in the Consolidated Financial Statements. Dominion Energy is not required to recognize liabilities for guarantees issued on behalf of its subsidiaries unless it becomes probable that it will have to perform under the guarantees. Terms of the guarantees typically end once obligations have been paid. Dominion Energy currently believes it is unlikely that it would be required to perform or otherwise incur any losses associated with guarantees of its subsidiaries’ obligations.