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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark one)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2026

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

 

 

Commission File

Number

 

Exact name of registrants as specified in their charters, address of

principal executive offices and registrants’ telephone number

 

I.R.S. Employer

Identification Number

 

 

 

 

 

001-08489

 

DOMINION ENERGY, INC.

 

54-1229715

 

 

 

 

 

000-55337

 

VIRGINIA ELECTRIC AND POWER COMPANY

 

54-0418825

 

 

 

 

 

 

 

600 East Canal Street

Richmond, Virginia 23219

(804) 819-2284

 

 

 

State or other jurisdiction of incorporation or organization of the registrants: Virginia

 

Securities registered pursuant to Section 12(b) of the Act:

 

Registrant

Trading Symbol

Title of Each Class

Name of Each Exchange

on Which Registered

DOMINION ENERGY, INC.

D

Common Stock, no par value

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Dominion Energy, Inc.

 

Large accelerated filer

 

Accelerated filer

Emerging growth company

Non-accelerated filer

 

Smaller reporting company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Virginia Electric and Power Company

 

Large accelerated filer

 

Accelerated filer

Emerging growth company

Non-accelerated filer

 

Smaller reporting company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Dominion Energy, Inc. Yes ☐ No Virginia Electric and Power Company Yes ☐ No

At July 24, 2026, the latest practicable date for determination, Dominion Energy, Inc. had 879,525,949 shares of common stock outstanding and Virginia Electric and Power Company had 379,927 shares of common stock outstanding. Dominion Energy, Inc. is the sole holder of Virginia Electric and Power Company’s common stock.

This combined Form 10-Q represents separate filings by Dominion Energy, Inc. and Virginia Electric and Power Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Virginia Electric and Power Company makes no representation as to the information relating to Dominion Energy, Inc.’s other operations.

 

VIRGINIA ELECTRIC AND POWER COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS FILING THIS FORM 10-Q UNDER THE REDUCED DISCLOSURE FORMAT.

 

 

 

1


 

COMBINED INDEX

 

 

 

Page

Number

 

Glossary of Terms

3

 

 

 

 

PART I. Financial Information

 

 

 

 

Item 1.

Financial Statements

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

62

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

76

Item 4.

Controls and Procedures

77

 

 

 

 

PART II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

78

Item 1A.

Risk Factors

78

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

82

Item 5.

Other Information

82

Item 6.

Exhibits

83

 

 

 

 

 

2


 

GLOSSARY OF TERMS

The following abbreviations or acronyms used in this Form 10-Q are defined below:

 

Abbreviation or Acronym

 

Definition

2017 Tax Reform Act

 

An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (previously known as The Tax Cuts and Jobs Act) enacted on December 22, 2017

2025 Biennial Review

 

Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the two successive 12-month test periods beginning January 1, 2023 and ending December 31, 2024 and prospective rate base setting for the succeeding annual periods beginning January 1, 2026 and ending December 31, 2027

2026 Series A JSNs

 

Dominion Energy’s 2026 Series A Junior Subordinated Notes due 2056

2026 Series B JSNs

 

Dominion Energy’s 2026 Series B Junior Subordinated Notes due 2056

2027 Biennial Review

 

Future Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the two successive 12-month test periods beginning January 1, 2025 and ending December 31, 2026 and prospective rate base setting for the succeeding annual periods beginning January 1, 2028 and ending December 31, 2029

AEP

 

The legal entity American Electric Power Company, Inc., one or more of its consolidated subsidiaries, or the entirety of American Electric Power Company, Inc. and its consolidated subsidiaries

AFUDC

 

Allowance for funds used during construction

Altavista

 

Altavista biomass power station

AOCI

 

Accumulated other comprehensive income (loss)

ARO

 

Asset retirement obligation

Atlantic Coast Pipeline

 

Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy and Duke Energy

Atlantic Coast Pipeline Project

 

A previously proposed approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina which would have been owned by Dominion Energy and Duke Energy

bcf

 

Billion cubic feet

Bedford

 

A 70 MW solar generation facility in Chesapeake, Virginia

BOEM

 

Bureau of Ocean Energy Management

Brunswick County

 

A 1,376 MW combined-cycle, natural gas-fired power station in Brunswick County, Virginia

CAA

 

Clean Air Act

Canadys Station

 

A proposed 2.2 GW advanced class combined cycle natural gas-fired power station in Colleton County, South Carolina, to be jointly owned by DESC and Santee Cooper

CCR

 

Coal combustion residual

CEO

 

Chief Executive Officer

CERCLA

 

Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as Superfund

CFO

 

Chief Financial Officer

Chesterfield Energy Reliability Center

 

A proposed 944 MW simple-cycle, natural gas-fired power station in Chesterfield County, Virginia

CO2

 

Carbon dioxide

CODM

 

Chief Operating Decision Maker

Companies

 

Dominion Energy and Virginia Power, collectively

Contracted Energy

 

Contracted Energy operating segment

Cooling degree days

 

Units measuring the extent to which the average daily temperature is greater than 65 degrees Fahrenheit, or 75 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 75 degrees, as applicable, and the average temperature for that day

Cove Point

 

Cove Point LNG, LP (formerly known as Dominion Energy Cove Point LNG, LP)

CPCN

 

Certificate of Public Convenience and Necessity

CVOW Commercial Project

 

A proposed 2.6 GW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters adjacent to the CVOW Pilot Project and associated interconnection facilities in and around Virginia Beach, Virginia

CVOW Pilot Project

 

A 12 MW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters

CWA

 

Clean Water Act

 

3


 

DES

 

Dominion Energy Services, Inc.

DESC

 

The legal entity, Dominion Energy South Carolina, Inc., one or more of its consolidated entities or operating segment, or the entirety of Dominion Energy South Carolina, Inc. and its consolidated entities

DGI

 

Dominion Generation, Inc.

Dominion Energy

 

The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than Virginia Power) or operating segments, or the entirety of Dominion Energy, Inc. and its consolidated subsidiaries

Dominion Energy Direct®

 

A dividend reinvestment and open enrollment direct stock purchase plan

Dominion Energy South Carolina

 

Dominion Energy South Carolina operating segment

Dominion Energy Virginia

 

Dominion Energy Virginia operating segment

Dominion Privatization

 

The legal entity Dominion Utility Privatization Holdings, LLC (a joint venture between Dominion Energy and Patriot), one or more of its consolidated subsidiaries, or the entirety of Dominion Utility Privatization Holdings, LLC and its consolidated subsidiaries

DSM

 

Demand-side management

Dth

 

Dekatherm

Duke Energy

 

The legal entity, Duke Energy Corporation, one or more of its consolidated subsidiaries, or the entirety of Duke Energy Corporation and its consolidated subsidiaries

Enel

 

The legal entity Enel S.p.A, one or more of its consolidated subsidiaries (including Enel Green Power S.p.A), or the entirety of Enel S.p.A and its consolidated subsidiaries

EPA

 

U.S. Environmental Protection Agency

EPS

 

Earnings per common share

FERC

 

Federal Energy Regulatory Commission

FirstEnergy

 

The legal entity FirstEnergy Corp., one or more of its consolidated subsidiaries, or the entirety of FirstEnergy Corp. and its consolidated subsidiaries

First NextEra Energy Merger

 

The transaction whereby Merger Sub Corp will merge with and into Dominion Energy with Dominion Energy continuing as the surviving entity pursuant to the terms and subject to the conditions in the NextEra Energy Merger Agreement and the related plan of merger

FTRs

 

Financial transmission rights

GAAP

 

U.S. generally accepted accounting principles

GHG

 

Greenhouse gas

Greensville County

 

A 1,605 MW combined-cycle, natural gas-fired power station in Greensville County, Virginia

GTSA

 

Virginia Grid Transformation and Security Act of 2018

GW

 

Gigawatt

Heating degree days

 

Units measuring the extent to which the average daily temperature is less than 65 degrees Fahrenheit, or 60 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 60 degrees, as applicable, and the average temperature for that day

Hopewell

 

Polyester biomass power station

HSR

 

Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended

IRA

 

An Act to Provide for Reconciliation Pursuant to Title II of Senate Concurrent Resolution 14 of the 117th Congress (also known as the Inflation Reduction Act of 2022) enacted on

August 16, 2022

ISO

 

Independent system operator

Jones Act

 

The Coastwise Merchandise Statute (commonly known as the Jones Act) 46 U.S.C. §55102 regulating U.S. maritime commerce

kV

 

Kilovolt

kVA

 

Kilovolt-ampere

LLC Sub

 

CS Holdco, LLC, a wholly-owned subsidiary of NextEra Energy

MD&A

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Merger Sub Corp

 

WG Development Corp., a wholly-owned subsidiary of NextEra Energy

MGD

 

Million gallons per day

Millstone

 

Millstone nuclear power station

MMBtu

 

Metric Million British thermal unit

Moody’s

 

Moody’s Investors Service

MW

 

Megawatt

MWh

 

Megawatt hour

Natural Gas Rate Stabilization Act

 

Legislation effective February 2005 designed to improve and maintain natural gas service infrastructure to meet the needs of customers in South Carolina

 

4


 

NAV

 

Net asset value

NextEra Energy

 

NextEra Energy, Inc., one or more of its consolidated subsidiaries (including Merger Sub Corp and LLC Sub) or operating segments, or the entirety of NextEra Energy, Inc. and its consolidated subsidiaries

NextEra Energy Merger

 

The First NextEra Energy Merger or First NextEra Energy Merger together with the Second NextEra Energy Merger, as applicable

NextEra Energy Merger Agreement

 

Agreement and Plan of Merger, dated as of May 15, 2026, by and among NextEra Energy and Dominion Energy

NND Project

 

V.C. Summer Units 2 and 3 nuclear development project under which DESC and Santee Cooper undertook to construct two Westinghouse AP1000 Advanced Passive Safety nuclear units in Jenkinsville, South Carolina

North Anna

 

North Anna nuclear power station

North Carolina Commission

 

North Carolina Utilities Commission

NOX

 

Nitrogen oxide

NRC

 

U.S. Nuclear Regulatory Commission

NYSE

 

New York Stock Exchange

Order 1000

 

Order issued by FERC adopting requirements for electric transmission planning, cost allocation and development

OSWP

 

OSW Project LLC, a limited liability company owned by Virginia Power and Stonepeak

ozone season

 

The period May 1 through September 30, as determined on a federal level

Patriot

 

Patriot Utility Privatizations, LLC, a joint venture between Foundation Infrastructure Partners, LLC and John Hancock Life Insurance Company (U.S.A.) and affiliates

PJM

 

PJM Interconnection, LLC

PSD

 

Prevention of significant deterioration

Pumpkinseed

 

A 60 MW solar generation facility in Emporia, Virginia

RGGI

 

Regional Greenhouse Gas Initiative

Rider CCR

 

A rate adjustment clause associated with the recovery of costs related to the removal of CCR at certain power stations

Rider CE

 

A rate adjustment clause associated with the recovery of costs related to certain renewable generation, energy storage and related transmission facilities in Virginia, certain small-scale distributed generation projects and related transmission facilities and, beginning May 2024, power purchase agreements for the energy, capacity, ancillary services and renewable energy credits owned by third parties

Rider CERC

 

A rate adjustment clause associated with the recovery of costs related to the Chesterfield Energy Reliability Center

Rider DIST

 

A rate adjustment clause associated with the recovery of costs related to electric distribution grid transformation projects that the Virginia Commission has approved as authorized by the GTSA, costs of new underground distribution facilities and, effective June 2026, rural broadband capacity projects

Rider GEN

 

A rate adjustment clause associated with the recovery of costs related to Altavista, Hopewell, Southampton, Brunswick County, Greensville County, certain solar facilities and the Virginia LNG Storage Facility

Rider OSW

 

A rate adjustment clause associated with costs incurred to construct, own and operate the CVOW Commercial Project

Rider RGGI

 

A rate adjustment clause associated with the recovery of costs related to the purchase of allowances through the RGGI market-based trading program for CO2

Rider SNA

 

A rate adjustment clause associated with costs relating to the preparation of the applications for subsequent license renewal to the NRC to extend the operating licenses of Surry and North Anna and related projects

Rider T1

 

A rate adjustment clause to recover the difference between revenues produced from transmission rates included in base rates, and the new total revenue requirement developed annually for the rate years effective September 1

ROE

 

Return on equity

RTO

 

Regional transmission organization

Santee Cooper

 

South Carolina Public Service Authority

SCANA

 

The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries, or the entirety of SCANA Corporation and its consolidated subsidiaries

 

5


 

SCANA Combination

 

Dominion Energy’s acquisition of SCANA completed on January 1, 2019 pursuant to the terms of the agreement and plan of merger entered on January 2, 2018 between Dominion Energy and SCANA

SCANA Merger Approval Order

 

Final order issued by the South Carolina Commission on December 21, 2018 setting forth its approval of the SCANA Combination

SEC

 

U.S. Securities and Exchange Commission

Second NextEra Energy Merger

 

The transaction whereby Dominion Energy will, immediately following the First NextEra Energy Merger, merge with and into LLC Sub with LLC Sub continuing as the surviving entity pursuant to the terms and subject to the conditions in the NextEra Energy Merger Agreement and the related plan of merger

Section 232

 

Section 232 of the Trade Expansion Act of 1962

Series C Preferred Stock

 

Dominion Energy’s 4.35% Series C Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share

South Carolina Commission

 

Public Service Commission of South Carolina

Southampton

 

Southampton biomass power station

Standard & Poor’s

 

Standard & Poor’s Ratings Services, a division of S&P Global Inc.

Stonepeak

 

The legal entity Stonepeak Partners, LLC, one or more of its affiliated investment vehicles (including Dunedin Member LLC) or the entirety of Stonepeak Partners, LLC and its affiliated investment vehicles

Summer

 

V.C. Summer nuclear power station

Surry

 

Surry nuclear power station

Valley Link

 

Valley Link Transmission Company, LLC, a limited liability company owned by Dominion Energy, AEP and FirstEnergy, one or more of its consolidated subsidiaries or the entirety of Valley Link Transmission Company, LLC and its consolidated subsidiaries

VCEA

 

Virginia Clean Economy Act of March 2020

VEBA

 

Voluntary Employees’ Beneficiary Association

VIE

 

Variable interest entity

Virginia Commission

 

Virginia State Corporation Commission

Virginia LNG Storage Facility

 

A proposed LNG storage facility in Brunswick and Greensville Counties, Virginia

Virginia Power

 

The legal entity, Virginia Electric and Power Company, one or more of its consolidated subsidiaries or operating segment, or the entirety of Virginia Electric and Power Company and its consolidated subsidiaries

VPFS

 

Virginia Power Fuel Securitization, LLC

 

6


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2026

 

2025

 

2026

 

2025

 

(millions, except per share amounts)

 

 

 

 

 

 

 

 

Operating Revenue

$

4,480

 

$

3,810

 

$

9,499

 

$

7,886

 

Operating Expenses

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

1,315

 

 

946

 

 

2,921

 

 

1,908

 

Purchased electric capacity

 

80

 

 

18

 

 

149

 

 

27

 

Purchased gas

 

53

 

 

43

 

 

196

 

 

190

 

Other operations and maintenance

 

984

 

 

883

 

 

1,969

 

 

1,781

 

Depreciation and amortization

 

615

 

 

580

 

 

1,246

 

 

1,162

 

Other taxes

 

210

 

 

194

 

 

438

 

 

403

 

Impairment of assets and other charges (benefits)

 

894

 

 

50

 

 

859

 

 

96

 

Total operating expenses

 

4,151

 

 

2,714

 

 

7,778

 

 

5,567

 

Income from operations

 

329

 

 

1,096

 

 

1,721

 

 

2,319

 

Other income (expense)

 

678

 

 

442

 

 

681

 

 

452

 

Interest and related charges

 

555

 

 

505

 

 

1,116

 

 

986

 

Income from continuing operations including noncontrolling interests before income
    tax expense

 

452

 

 

1,033

 

 

1,286

 

 

1,785

 

Income tax expense

 

122

 

 

220

 

 

170

 

 

260

 

Net Income From Continuing Operations Including Noncontrolling Interests

 

330

 

 

813

 

 

1,116

 

 

1,525

 

Net Income (Loss) From Discontinued Operations Including Noncontrolling
    Interests
(1)

 

(1

)

 

1

 

 

(2

)

 

 

Net Income Including Noncontrolling Interests

 

329

 

 

814

 

 

1,114

 

 

1,525

 

Noncontrolling Interests

 

(11

)

 

54

 

 

153

 

 

100

 

Net Income Attributable to Dominion Energy

$

340

 

$

760

 

$

961

 

$

1,425

 

Amounts Attributable to Dominion Energy

 

 

 

 

 

 

 

 

Net income from continuing operations

$

341

 

$

759

 

$

963

 

$

1,425

 

Net income (loss) from discontinued operations

 

(1

)

 

1

 

 

(2

)

 

 

Net income attributable to Dominion Energy

$

340

 

$

760

 

$

961

 

$

1,425

 

EPS - Basic

 

 

 

 

 

 

 

 

Net income from continuing operations

$

0.37

 

$

0.88

 

$

1.07

 

$

1.65

 

Net income (loss) from discontinued operations

 

 

 

 

 

 

 

 

Net income attributable to Dominion Energy

$

0.37

 

$

0.88

 

$

1.07

 

$

1.65

 

EPS - Diluted

 

 

 

 

 

 

 

 

Net income from continuing operations

$

0.37

 

$

0.88

 

$

1.07

 

$

1.65

 

Net income (loss) from discontinued operations

 

 

 

 

 

 

 

 

Net income attributable to Dominion Energy

$

0.37

 

$

0.88

 

$

1.07

 

$

1.65

 

 

(1)
Includes income tax expense (benefit) of $ million and $(3) million for the three months ended June 30, 2026 and 2025, respectively, and $ million and $(3) million for six months ended June 30, 2026 and 2025 respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

 

7


 

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2026

 

2025

 

2026

 

2025

 

(millions)

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

$

329

 

$

814

 

$

1,114

 

$

1,525

 

Other comprehensive income (loss), net of taxes:

 

 

 

 

 

 

 

 

Net deferred gains (losses) on derivatives-hedging activities(1)

 

12

 

 

 

 

9

 

 

(16

)

Changes in unrealized net gains (losses) on investment securities(2)

 

(1

)

 

(2

)

 

(1

)

 

9

 

Changes in net unrecognized pension and other postretirement benefit costs
    (credits)
(3)

 

 

 

 

 

 

 

 

Amounts reclassified to net income (loss):

 

 

 

 

 

 

 

 

Net derivative (gains) losses-hedging activities(4)

 

7

 

 

7

 

 

13

 

 

15

 

Net realized (gains) losses on investment securities(5)

 

 

 

2

 

 

 

 

4

 

Net pension and other postretirement benefit costs (credits)(6)

 

(2

)

 

(2

)

 

(3

)

 

(5

)

Total other comprehensive income (loss)

 

16

 

 

5

 

 

18

 

 

7

 

Comprehensive income including noncontrolling interests

 

345

 

 

819

 

 

1,132

 

 

1,532

 

Comprehensive income (loss) attributable to noncontrolling interests

 

(11

)

 

54

 

 

153

 

 

100

 

Comprehensive income attributable to Dominion Energy

$

356

 

$

765

 

$

979

 

$

1,432

 

 

(1) Net of $(4) million and $ million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $(3) million and $5 million tax for the six months ended June 30, 2026 and 2025, respectively.

(2) Net of $ million and $(1) million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $ million and $(8) million tax for the six months ended June 30, 2026 and 2025, respectively.

(3) Net of $ million and $ million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $ million and $ million tax for the six months ended June 30, 2026 and 2025, respectively.

(4) Net of $(2) million and $(3) million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $(4) million and $(5) million tax for the six months ended June 30, 2026 and 2025, respectively.

(5) Net of $ million and $(1) million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $ million and $(1) million tax for the six months ended June 30, 2026 and 2025, respectively.

(6) Net of $1 million and $1 million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $2 million and $1 million tax for the six months ended June 30, 2026 and 2025, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

 

8


 

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

June 30, 2026

 

 

December 31, 2025(1)

 

(millions)

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents(2)

 

$

296

 

 

$

250

 

Customer receivables (less allowance for doubtful accounts of $26 and $31)

 

 

2,773

 

 

 

2,531

 

Tax receivables

 

 

434

 

 

 

434

 

Other receivables (less allowance for doubtful accounts of $3 at both dates)(2)(3)

 

 

301

 

 

 

446

 

Inventories

 

 

2,007

 

 

 

1,957

 

Regulatory assets(2)

 

 

2,125

 

 

 

1,380

 

Derivative assets

 

 

490

 

 

 

335

 

Prepayments(2)

 

 

539

 

 

 

377

 

Other(2)

 

 

482

 

 

 

361

 

Assets held for sale

 

 

265

 

 

 

 

Total current assets

 

 

9,712

 

 

 

8,071

 

Investments

 

 

 

 

 

 

Nuclear decommissioning trust funds

 

 

9,907

 

 

 

9,166

 

Investment in equity method affiliates

 

 

127

 

 

 

132

 

Other(2)

 

 

390

 

 

 

378

 

Total investments

 

 

10,424

 

 

 

9,676

 

Property, Plant and Equipment

 

 

 

 

 

 

Property, plant and equipment(2)

 

 

109,913

 

 

 

106,315

 

Accumulated depreciation and amortization(2)

 

 

(28,175

)

 

 

(27,348

)

Total property, plant and equipment, net

 

 

81,738

 

 

 

78,967

 

Deferred Charges and Other Assets

 

 

 

 

 

 

Goodwill

 

 

4,143

 

 

 

4,143

 

Regulatory assets(2)

 

 

8,465

 

 

 

8,276

 

Other(2)

 

 

7,409

 

 

 

6,724

 

Total deferred charges and other assets

 

 

20,017

 

 

 

19,143

 

Total assets

 

$

121,891

 

 

$

115,857

 

 

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, 2025 has been derived from the audited Consolidated Balance Sheet at that date.

(2) See Note 14 for amounts attributable to VIEs.

(3) See Note 9 for amounts attributable to related parties.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

 

9


 

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

 

 

 

June 30, 2026

 

 

December 31, 2025(1)

 

(millions)

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Securities due within one year(2)

 

$

4,043

 

 

$

2,409

 

Supplemental credit facility borrowings

 

 

200

 

 

 

Short-term debt

 

 

2,462

 

 

 

2,457

 

Accounts payable(2)

 

 

1,242

 

 

 

1,338

 

Accrued interest, payroll and taxes(2)

 

 

1,099

 

 

 

1,244

 

Regulatory liabilities

 

 

609

 

 

 

542

 

Other(2)(3)

 

 

2,219

 

 

 

2,454

 

Liabilities held for sale

 

 

132

 

 

 

 

Total current liabilities

 

 

12,006

 

 

 

10,444

 

Long-Term Debt

 

 

 

 

 

 

Long-term debt

 

 

38,032

 

 

 

36,778

 

Securitization bonds(2)

 

 

794

 

 

 

883

 

Junior subordinated notes

 

 

7,462

 

 

 

5,978

 

Supplemental credit facility borrowings

 

 

 

 

 

 

Other

 

 

431

 

 

 

436

 

Total long-term debt

 

 

46,719

 

 

 

44,075

 

Deferred Credits and Other Liabilities

 

 

 

 

 

 

Deferred income taxes

 

 

8,336

 

 

 

7,885

 

Deferred investment tax credits

 

 

1,500

 

 

 

1,591

 

Regulatory liabilities

 

 

9,422

 

 

 

9,072

 

Other

 

 

10,297

 

 

 

9,373

 

Total deferred credits and other liabilities

 

 

29,555

 

 

 

27,921

 

Total liabilities

 

 

88,280

 

 

 

82,440

 

Commitments and Contingencies (see Note 16)

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Preferred stock (see Note 15)

 

 

991

 

 

 

991

 

Common stock – no par(4)

 

 

25,947

 

 

 

25,892

 

Retained earnings

 

 

2,084

 

 

 

2,318

 

Accumulated other comprehensive loss

 

 

(100

)

 

 

(118

)

Shareholders’ equity

 

 

28,922

 

 

 

29,083

 

Noncontrolling interests

 

 

4,689

 

 

 

4,334

 

Total equity

 

 

33,611

 

 

 

33,417

 

Total liabilities and equity

 

$

121,891

 

 

$

115,857

 

 

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, 2025 has been derived from the audited Consolidated Balance Sheet at that date.

(2) See Note 14 for amounts attributable to VIEs.

(3) See Note 9 for amounts attributable to related parties.

(4) 1.8 billion shares authorized; 880 million shares and 879 million shares outstanding at June 30, 2026 and December 31, 2025, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

 

 

10


 

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

 

QUARTER-TO-DATE

 

 

 

Preferred Stock

 

Common Stock

 

 

 

 

 

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Retained Earnings

 

AOCI

 

Shareholders’
Equity

 

Noncontrolling
Interests

 

Total
Equity

 

(millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

 

1

 

$

991

 

 

853

 

$

24,424

 

$

1,727

 

$

(150

)

$

26,992

 

$

3,357

 

$

30,349

 

Net income including noncontrolling interests

 

 

 

 

 

 

 

 

 

760

 

 

 

 

760

 

 

54

 

 

814

 

Issuance of stock

 

 

 

 

 

 

 

35

 

 

 

 

 

 

35

 

 

 

 

35

 

Stock awards (net of change in unearned
   compensation)

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

 

 

 

10

 

Sale of noncontrolling interest in OSWP

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

 

 

 

(7

)

Contributions from Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324

 

 

324

 

Distributions from OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(78

)

 

(78

)

Preferred stock dividends (see Note 15)

 

 

 

 

 

 

 

 

 

(11

)

 

 

 

(11

)

 

 

 

(11

)

Common stock dividends ($0.6675
   per common share) and distributions

 

 

 

 

 

 

 

 

 

(569

)

 

 

 

(569

)

 

 

 

(569

)

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

5

 

 

5

 

 

 

 

5

 

Other

 

 

 

 

 

 

 

1

 

 

(1

)

 

 

 

 

 

 

June 30, 2025

 

1

 

$

991

 

 

853

 

$

24,463

 

$

1,906

 

$

(145

)

$

27,215

 

$

3,657

 

$

30,872

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

1

 

$

991

 

 

879

 

$

25,931

 

$

2,341

 

$

(116

)

$

29,147

 

$

4,561

 

$

33,708

 

Net income including noncontrolling interests

 

 

 

 

 

 

 

 

 

340

 

 

 

 

340

 

 

(11

)

 

329

 

Issuance of stock

 

 

 

 

 

1

 

 

5

 

 

 

 

 

 

5

 

 

 

 

5

 

Stock awards (net of change in unearned
   compensation)

 

 

 

 

 

 

 

11

 

 

 

 

 

 

11

 

 

 

 

11

 

Contributions from Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

234

 

 

234

 

Distributions from OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(95

)

 

(95

)

Preferred stock dividends (see Note 15)

 

 

 

 

 

 

 

 

 

(11

)

 

 

 

(11

)

 

 

 

(11

)

Common stock dividends ($0.6675
   per common share) and distributions

 

 

 

 

 

 

 

 

 

(587

)

 

 

 

(587

)

 

 

 

(587

)

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

16

 

 

16

 

 

 

 

16

 

Other

 

 

 

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

1

 

June 30, 2026

 

1

 

$

991

 

 

880

 

$

25,947

 

$

2,084

 

$

(100

)

$

28,922

 

$

4,689

 

$

33,611

 

 

 

11


 

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

 

YEAR-TO-DATE

 

 

Preferred Stock

 

Common Stock

 

 

 

 

 

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Retained Earnings

 

AOCI

 

Shareholders’
Equity

 

Noncontrolling
Interests

 

Total
Equity

 

(millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

1

 

$

991

 

 

852

 

$

24,383

 

$

1,641

 

$

(152

)

$

26,863

 

$

2,939

 

$

29,802

 

Net income including noncontrolling
   interests

 

 

 

 

 

 

 

 

 

1,425

 

 

 

 

1,425

 

 

100

 

 

1,525

 

Issuance of stock

 

 

 

 

 

1

 

 

70

 

 

 

 

 

 

70

 

 

 

 

70

 

Stock awards (net of change in
   unearned compensation)

 

 

 

 

 

 

 

16

 

 

 

 

 

 

16

 

 

 

 

16

 

Sale of noncontrolling interest in OSWP

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

 

 

 

(7

)

Contributions from Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

724

 

 

724

 

Distributions from OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(106

)

 

(106

)

Preferred stock dividends (see
   Note 15)

 

 

 

 

 

 

 

 

 

(22

)

 

 

 

(22

)

 

 

 

(22

)

Common stock dividends ($1.335
   per common share) and
   distributions

 

 

 

 

 

 

 

 

 

(1,138

)

 

 

 

(1,138

)

 

 

 

(1,138

)

Other comprehensive income (loss), net of
   tax

 

 

 

 

 

 

 

 

 

 

 

7

 

 

7

 

 

 

 

7

 

Other

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

 

 

 

1

 

June 30, 2025

 

1

 

$

991

 

 

853

 

$

24,463

 

$

1,906

 

$

(145

)

$

27,215

 

$

3,657

 

$

30,872

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

1

 

$

991

 

 

879

 

$

25,892

 

$

2,318

 

$

(118

)

$

29,083

 

$

4,334

 

$

33,417

 

Net income including noncontrolling
   interests

 

 

 

 

 

 

 

 

 

961

 

 

 

 

961

 

 

153

 

 

1,114

 

Issuance of stock

 

 

 

 

 

1

 

 

38

 

 

 

 

 

 

38

 

 

 

 

38

 

Stock awards (net of change in
   unearned compensation)

 

 

 

 

 

 

 

17

 

 

 

 

 

 

17

 

 

 

 

17

 

Contributions from Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

370

 

 

370

 

Distributions from OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(168

)

 

(168

)

Preferred stock dividends (see
   Note 15)

 

 

 

 

 

 

 

 

 

(22

)

 

 

 

(22

)

 

 

 

(22

)

Common stock dividends ($1.335
   per common share) and
   distributions

 

 

 

 

 

 

 

 

 

(1,174

)

 

 

 

(1,174

)

 

 

 

(1,174

)

Other comprehensive income (loss), net of
   tax

 

 

 

 

 

 

 

 

 

 

 

18

 

 

18

 

 

 

 

18

 

Other

 

 

 

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

1

 

June 30, 2026

 

1

 

$

991

 

 

880

 

$

25,947

 

$

2,084

 

$

(100

)

$

28,922

 

$

4,689

 

$

33,611

 

 

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

 

12


 

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Six Months Ended June 30,

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

1,114

 

 

$

1,525

 

Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization (including nuclear fuel)

 

 

1,394

 

 

 

1,316

 

Deferred income taxes

 

 

316

 

 

 

192

 

Deferred investment tax credits (benefits)

 

 

(14

)

 

 

(19

)

Impairment of assets and other charges (benefits)

 

 

856

 

 

 

97

 

Net (gains) losses on nuclear decommissioning trust funds and other investments

 

 

(350

)

 

 

(173

)

Other adjustments

 

 

(53

)

 

 

(12

)

Changes in:

 

 

 

 

 

 

Accounts receivable

 

 

44

 

 

 

(8

)

Inventories

 

 

(44

)

 

 

(56

)

Deferred fuel and purchased gas costs, net

 

 

(804

)

 

 

(553

)

Prepayments and deposits, net

 

 

(339

)

 

 

(99

)

Accounts payable

 

 

33

 

 

 

14

 

Accrued interest, payroll and taxes

 

 

(144

)

 

 

(89

)

Net realized and unrealized changes related to derivative activities

 

 

348

 

 

 

481

 

Pension and other postretirement benefits

 

 

(113

)

 

 

(141

)

Other operating assets and liabilities

 

 

213

 

 

 

(46

)

Net cash provided by operating activities

 

 

2,457

 

 

 

2,429

 

Investing Activities

 

 

 

 

 

 

Plant construction and other property additions (including nuclear fuel)

 

 

(5,799

)

 

 

(6,216

)

Acquisition of solar development projects

 

 

(8

)

 

 

(10

)

Proceeds from sales of securities

 

 

2,308

 

 

 

1,694

 

Purchases of securities

 

 

(2,394

)

 

 

(1,748

)

Contributions to equity method affiliates

 

 

(3

)

 

 

(17

)

Other

 

 

(95

)

 

 

(88

)

Net cash used in investing activities

 

 

(5,991

)

 

 

(6,385

)

Financing Activities

 

 

 

 

 

 

Issuance (repayment) of short-term debt, net

 

 

5

 

 

 

1,275

 

364-day term loan facility borrowings

 

 

1,250

 

 

 

 

Issuance of long-term debt

 

 

4,475

 

 

 

4,200

 

Repayment of long-term debt

 

 

(1,313

)

 

 

(750

)

Repayment of securitization bonds

 

 

(85

)

 

 

(80

)

Supplemental credit facility borrowings

 

 

1,000

 

 

 

 

Supplemental credit facility repayments

 

 

(800

)

 

 

 

Proceeds from sale of noncontrolling interest in OSWP

 

 

 

 

 

(88

)

Contributions from Stonepeak to OSWP

 

 

370

 

 

 

724

 

Distributions from OSWP to Stonepeak

 

 

(168

)

 

 

(106

)

Issuance of common stock

 

 

38

 

 

 

70

 

Common dividend payments

 

 

(1,174

)

 

 

(1,138

)

Other

 

 

(40

)

 

 

(103

)

Net cash provided by financing activities

 

 

3,558

 

 

 

4,004

 

Increase (decrease) in cash, restricted cash and equivalents

 

 

24

 

 

 

48

 

Cash, restricted cash and equivalents at beginning of period

 

 

343

 

 

 

365

 

Cash, restricted cash and equivalents at end of period

 

$

367

 

 

$

413

 

 

See Note 2 for disclosure of supplemental cash flow information.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

 

13


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue(1)

 

$

3,421

 

 

$

2,712

 

 

$

7,117

 

 

$

5,477

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases(1)

 

 

1,071

 

 

 

729

 

 

 

2,443

 

 

 

1,498

 

Purchased electric capacity

 

 

78

 

 

 

17

 

 

 

143

 

 

 

24

 

Other operations and maintenance:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliated suppliers

 

 

143

 

 

 

125

 

 

 

301

 

 

 

259

 

Other

 

 

473

 

 

 

428

 

 

 

994

 

 

 

904

 

Depreciation and amortization

 

 

415

 

 

 

396

 

 

 

838

 

 

 

794

 

Other taxes

 

 

98

 

 

 

92

 

 

 

205

 

 

 

189

 

Impairment of assets and other charges (benefits)

 

 

268

 

 

 

50

 

 

 

154

 

 

 

96

 

Total operating expenses

 

 

2,546

 

 

 

1,837

 

 

 

5,078

 

 

 

3,764

 

Income from operations

 

 

875

 

 

 

875

 

 

 

2,039

 

 

 

1,713

 

Other income (expense)

 

 

127

 

 

 

80

 

 

 

154

 

 

 

106

 

Interest and related charges(1)

 

 

262

 

 

 

251

 

 

 

521

 

 

 

494

 

Income before income tax expense

 

 

740

 

 

 

704

 

 

 

1,672

 

 

 

1,325

 

Income tax expense

 

 

154

 

 

 

115

 

 

 

299

 

 

 

205

 

Net Income Including Noncontrolling Interests

 

 

586

 

 

 

589

 

 

 

1,373

 

 

 

1,120

 

Noncontrolling Interests

 

 

(11

)

 

 

54

 

 

 

153

 

 

 

100

 

Net Income Attributable to Virginia Power

 

$

597

 

 

$

535

 

 

$

1,220

 

 

$

1,020

 

 

(1)
See Note 18 for amounts attributable to affiliates.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

 

14


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

586

 

 

$

589

 

 

$

1,373

 

 

$

1,120

 

Other comprehensive income (loss), net of taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred gains (losses) on derivatives-hedging activities(1)

 

 

1

 

 

 

2

 

 

 

(1

)

 

 

(5

)

Changes in unrealized net gains (losses) on investment securities(2)

 

 

 

 

 

(2

)

 

 

 

 

 

 

Amounts reclassified to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Net derivative (gains) losses-hedging activities(3)

 

 

 

 

 

 

 

 

(1

)

 

 

 

Total other comprehensive income (loss)

 

 

1

 

 

 

 

 

 

(2

)

 

 

(5

)

Comprehensive income including noncontrolling interests

 

 

587

 

 

 

589

 

 

 

1,371

 

 

 

1,115

 

Comprehensive income (loss) attributable to noncontrolling interests

 

 

(11

)

 

 

54

 

 

 

153

 

 

 

100

 

Comprehensive income attributable to Virginia Power

 

$

598

 

 

$

535

 

 

$

1,218

 

 

$

1,015

 

 

(1)
Net of $ million and $ million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $1 million and $2 million tax for the six months ended June 30, 2026 and 2025, respectively.
(2)
Net of $ million and $ million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $ million and $ million tax for the six months ended June 30, 2026 and 2025, respectively.
(3)
Net of $ million and $ million tax for the three months ended June 30, 2026 and 2025, respectively, and net of $ million and $ million tax for the six months ended June 30, 2026 and 2025, respectively.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

 

15


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

June 30, 2026

 

 

December 31, 2025(1)

 

(millions)

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents(2)

 

$

193

 

 

$

170

 

Customer receivables (less allowance for doubtful accounts of $19 and $25)

 

 

2,193

 

 

 

1,930

 

Other receivables (less allowance for doubtful accounts of $3 at both dates)(2)

 

 

193

 

 

 

252

 

Affiliated receivables

 

 

132

 

 

 

35

 

Inventories (average cost method)

 

 

1,291

 

 

 

1,250

 

Derivative assets(3)

 

 

310

 

 

 

212

 

Regulatory assets(2)

 

 

1,670

 

 

 

1,110

 

Other(2)(3)

 

 

153

 

 

 

166

 

Total current assets

 

 

6,135

 

 

 

5,125

 

Investments

 

 

 

 

 

 

Nuclear decommissioning trust funds

 

 

5,273

 

 

 

4,864

 

Other(2)

 

 

6

 

 

 

4

 

Total investments

 

 

5,279

 

 

 

4,868

 

Property, Plant and Equipment

 

 

 

 

 

 

Property, plant and equipment(2)

 

 

84,120

 

 

 

80,121

 

Accumulated depreciation and amortization(2)

 

 

(19,763

)

 

 

(19,157

)

Total property, plant and equipment, net

 

 

64,357

 

 

 

60,964

 

Deferred Charges and Other Assets

 

 

 

 

 

 

Regulatory assets(2)

 

 

4,583

 

 

 

4,526

 

Other(2)(3)

 

 

4,197

 

 

 

3,760

 

Total deferred charges and other assets

 

 

8,780

 

 

 

8,286

 

Total assets

 

$

84,551

 

 

$

79,243

 

 

(1)
Virginia Power’s Consolidated Balance Sheet at December 31, 2025 has been derived from the audited Consolidated Balance Sheet at that date.
(2)
See Note 14 for amounts attributable to VIEs.
(3)
See Note 18 for amounts attributable to affiliates.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

 

16


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

 

 

 

June 30, 2026

 

 

December 31, 2025(1)

 

(millions)

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Securities due within one year(2)

 

$

1,967

 

 

$

1,366

 

Short-term debt

 

 

992

 

 

 

675

 

Accounts payable(2)

 

 

824

 

 

 

821

 

Payables to affiliates

 

 

162

 

 

 

216

 

Affiliated current borrowings

 

 

1,398

 

 

 

1,173

 

Accrued interest, payroll and taxes(2)

 

 

483

 

 

 

450

 

Regulatory liabilities

 

 

439

 

 

 

374

 

Other(2)(3)

 

 

1,705

 

 

 

1,900

 

Total current liabilities

 

 

7,970

 

 

 

6,975

 

Long-Term Debt

 

 

 

 

 

 

Long-term debt

 

 

21,430

 

 

 

20,651

 

Securitization bonds(2)

 

 

794

 

 

 

883

 

Other

 

 

201

 

 

 

194

 

Total long-term debt

 

 

22,425

 

 

 

21,728

 

Deferred Credits and Other Liabilities

 

 

 

 

 

 

Deferred income taxes

 

 

5,343

 

 

 

4,921

 

Deferred investment tax credits

 

 

611

 

 

 

616

 

Regulatory liabilities

 

 

6,863

 

 

 

6,530

 

Other(3)

 

 

7,777

 

 

 

6,934

 

Total deferred credits and other liabilities

 

 

20,594

 

 

 

19,001

 

Total liabilities

 

 

50,989

 

 

 

47,704

 

Commitments and Contingencies (see Note 16)

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Common stock – no par(4)

 

 

12,937

 

 

 

12,487

 

Other paid-in capital

 

 

999

 

 

 

999

 

Retained earnings

 

 

14,907

 

 

 

13,687

 

Accumulated other comprehensive income

 

 

30

 

 

 

32

 

Shareholder’s equity

 

 

28,873

 

 

 

27,205

 

Noncontrolling interests

 

 

4,689

 

 

 

4,334

 

Total equity

 

 

33,562

 

 

 

31,539

 

Total liabilities and equity

 

$

84,551

 

 

$

79,243

 

 

(1)
Virginia Power’s Consolidated Balance Sheet at December 31, 2025 has been derived from the audited Consolidated Balance Sheet at that date.
(2)
See Note 14 for amounts attributable to VIEs.
(3)
See Note 18 for amounts attributable to affiliates.
(4)
500,000 shares authorized; 379,927 and 373,881 shares outstanding at June 30, 2026 and December 31, 2025, respectively.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

 

17


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

 

QUARTER-TO-DATE

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Other Paid-In Capital

 

 

Retained Earnings

 

 

AOCI

 

 

Shareholder's Equity

 

 

Noncontrolling
 Interests

 

 

Total Equity

 

(millions, except for shares)

 

(thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

 

 

324

 

 

$

8,987

 

 

$

1,006

 

 

$

12,622

 

 

$

23

 

 

$

22,638

 

 

$

3,357

 

 

$

25,995

 

Net income including
    noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

535

 

 

 

 

 

 

535

 

 

 

54

 

 

 

589

 

Issuance of stock to
    Dominion Energy

 

30

 

 

 

2,100

 

 

 

 

 

 

 

 

 

 

 

 

2,100

 

 

 

 

 

 

2,100

 

Sale of noncontrolling
    interest in OSWP

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

Contributions from
    Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324

 

 

 

324

 

Distributions from
    OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(78

)

 

 

(78

)

Other comprehensive
    income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

June 30, 2025

 

 

354

 

 

$

11,087

 

 

$

999

 

 

$

13,156

 

 

$

23

 

 

$

25,265

 

 

$

3,657

 

 

$

28,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

374

 

 

$

12,487

 

 

$

999

 

 

$

14,310

 

 

$

29

 

 

$

27,825

 

 

$

4,561

 

 

$

32,386

 

Net income including
    noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

597

 

 

 

 

 

 

597

 

 

 

(11

)

 

 

586

 

Issuance of stock to
    Dominion Energy

 

 

6

 

 

 

450

 

 

 

 

 

 

 

 

 

 

 

 

450

 

 

 

 

 

 

450

 

Contributions from
    Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

234

 

 

 

234

 

Distributions from
    OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(95

)

 

 

(95

)

Other comprehensive
    income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

 

 

 

 

 

1

 

June 30, 2026

 

 

380

 

 

$

12,937

 

 

$

999

 

 

$

14,907

 

 

$

30

 

 

$

28,873

 

 

$

4,689

 

 

$

33,562

 

 

 

 

 

18


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

 

YEAR-TO-DATE

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Other Paid-In Capital

 

 

Retained
Earnings

 

 

AOCI

 

 

Shareholder's
Equity

 

 

Noncontrolling
Interests

 

 

Total Equity

 

(millions, except for shares)

 

(thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

324

 

 

$

8,987

 

 

$

1,006

 

 

$

12,136

 

 

$

28

 

 

$

22,157

 

 

$

2,939

 

 

$

25,096

 

Net income including
    noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

1,020

 

 

 

 

 

 

1,020

 

 

 

100

 

 

 

1,120

 

Issuance of stock to
    Dominion Energy

 

30

 

 

 

2,100

 

 

 

 

 

 

 

 

 

 

 

 

2,100

 

 

 

 

 

 

2,100

 

Sale of noncontrolling
    interest in OSWP

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

Contributions from
    Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

724

 

 

 

724

 

Distributions from
    OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(106

)

 

 

(106

)

Other comprehensive
    income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

(5

)

 

 

 

 

 

(5

)

June 30, 2025

 

 

354

 

 

$

11,087

 

 

$

999

 

 

$

13,156

 

 

$

23

 

 

$

25,265

 

 

$

3,657

 

 

$

28,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

374

 

 

$

12,487

 

 

$

999

 

 

$

13,687

 

 

$

32

 

 

$

27,205

 

 

$

4,334

 

 

$

31,539

 

Net income including
    noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

1,220

 

 

 

 

 

 

1,220

 

 

 

153

 

 

 

1,373

 

Issuance of stock to
    Dominion Energy

 

6

 

 

 

450

 

 

 

 

 

 

 

 

 

 

 

 

450

 

 

 

 

 

 

450

 

Contributions from
    Stonepeak to OSWP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

370

 

 

 

370

 

Distributions from
    OSWP to Stonepeak

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(168

)

 

 

(168

)

Other comprehensive
    income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

 

 

 

 

 

(2

)

June 30, 2026

 

 

380

 

 

$

12,937

 

 

$

999

 

 

$

14,907

 

 

$

30

 

 

$

28,873

 

 

$

4,689

 

 

$

33,562

 

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

 

19


 

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Six Months Ended June 30,

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

1,373

 

 

$

1,120

 

Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization (including nuclear fuel)

 

 

921

 

 

 

879

 

Deferred income taxes

 

 

303

 

 

 

176

 

Deferred investment tax credits (benefits)

 

 

(5

)

 

 

(12

)

Impairment of assets and other charges (benefits)

 

 

152

 

 

 

97

 

Net (gains) losses on nuclear decommissioning trust funds and other investments

 

 

(48

)

 

 

(24

)

Other adjustments

 

 

(60

)

 

 

(45

)

Changes in:

 

 

 

 

 

 

Accounts receivable

 

 

(83

)

 

 

(57

)

Affiliated receivables and payables

 

 

(151

)

 

 

(103

)

Inventories

 

 

(36

)

 

 

(44

)

Prepayments and deposits, net

 

 

 

 

 

(53

)

Deferred fuel expenses, net

 

 

(649

)

 

 

(502

)

Accounts payable

 

 

106

 

 

 

113

 

Accrued interest, payroll and taxes

 

 

33

 

 

 

53

 

Net realized and unrealized changes related to derivative activities

 

 

189

 

 

 

93

 

Other operating assets and liabilities

 

 

336

 

 

 

143

 

Net cash provided by operating activities

 

 

2,381

 

 

 

1,834

 

Investing Activities

 

 

 

 

 

 

Plant construction and other property additions

 

 

(4,769

)

 

 

(5,103

)

Purchases of nuclear fuel

 

 

(63

)

 

 

(120

)

Acquisition of solar development projects

 

 

(7

)

 

 

(10

)

Proceeds from sales of securities

 

 

1,583

 

 

 

923

 

Purchases of securities

 

 

(1,652

)

 

 

(966

)

Other

 

 

(46

)

 

 

(39

)

Net cash used in investing activities

 

 

(4,954

)

 

 

(5,315

)

Financing Activities

 

 

 

 

 

 

Issuance (repayment) of short-term debt, net

 

 

317

 

 

 

795

 

Issuance (repayment) of affiliated current borrowings, net

 

 

225

 

 

 

(323

)

Issuance of long-term debt

 

 

2,150

 

 

 

1,250

 

Repayment of long-term debt

 

 

(750

)

 

 

(350

)

Repayment of securitization bonds

 

 

(85

)

 

 

(80

)

Proceeds from sale of noncontrolling interest in OSWP

 

 

 

 

 

(88

)

Contributions from Stonepeak to OSWP

 

 

370

 

 

 

724

 

Distributions from OSWP to Stonepeak

 

 

(168

)

 

 

(106

)

Issuance of common stock

 

 

450

 

 

 

2,100

 

Common dividend payments to parent

 

 

 

 

 

(407

)

Other

 

 

86

 

 

 

(22

)

Net cash provided by financing activities

 

 

2,595

 

 

 

3,493

 

Increase in cash, restricted cash and equivalents

 

 

22

 

 

 

12

 

Cash, restricted cash and equivalents at beginning of period

 

 

231

 

 

 

206

 

Cash, restricted cash and equivalents at end of period

 

$

253

 

 

$

218

 

See Note 2 for disclosure of supplemental cash flow information.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

 

20


COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

Note 1. Nature of Operations

Dominion Energy, headquartered in Richmond, Virginia, provides primarily regulated electricity service in Virginia, North Carolina and South Carolina through its subsidiaries, Virginia Power and DESC, and is one of the nation’s leading developers and operators of regulated offshore wind and solar power and the largest producer of carbon-free electricity in New England. Dominion Energy also has nonregulated operations that include long-term contracted electric generation operations.

Virginia Power is a regulated public utility that generates, transmits and distributes electricity for sale in Virginia and North Carolina. Virginia Power is a member of PJM, an RTO, and its electric transmission facilities are integrated into PJM. All of Virginia Power’s stock is owned by Dominion Energy.

Dominion Energy manages its daily operations through three primary operating segments: Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy. Virginia Power manages its daily operations through one primary operating segment: Dominion Energy Virginia. The Companies each also report a Corporate and Other segment. See Note 20 for further discussion on the Companies’ operating segments.

Proposed Merger

In May 2026, Dominion Energy entered into the NextEra Energy Merger Agreement pursuant to which the Companies will become wholly-owned subsidiaries of NextEra Energy upon closing of the NextEra Energy Merger, which is expected in the second half of 2027, contingent upon receipt of regulatory approvals and the satisfaction of other closing conditions as discussed below. Under the terms of the NextEra Energy Merger Agreement, at closing each outstanding share of Dominion Energy common stock, other than shares to be cancelled as described in the NextEra Energy Merger Agreement, will be converted into the right to receive (i) its pro rata share of an aggregate amount equal to $360 million in cash, without interest, and (ii) 0.8138 shares of NextEra Energy common stock. The terms of the NextEra Energy Merger Agreement require Dominion Energy to redeem any outstanding Series C Preferred Stock, assuming closing occurs after January 2027, and call for redemption any outstanding variable denomination floating rate demand notes, also referred to as Dominion Energy Reliability InvestmentSM. In addition, Dominion Energy expects to settle any outstanding forward sales contracts under its at-the-market program prior to closing. The NextEra Energy Merger Agreement requires the Companies to obtain the consent of NextEra Energy, which consent cannot be unreasonably withheld, for certain activities, such as the payment by Dominion Energy of dividends in excess of $0.6675 per share each quarter, the issuance of debt or equity securities in excess of a specific amount and certain acquisitions or dispositions.

The completion of the NextEra Energy Merger is subject to customary closing conditions, including, among others, approval by the holders of Dominion Energy common stock of the NextEra Energy Merger Agreement and the applicable plan of merger, approval by NextEra Energy shareholders of the issuance of NextEra Energy common stock in connection with the NextEra Energy Merger, expiration or termination of the applicable waiting period under the HSR, receipt of specified regulatory approvals, including the obtaining by Dominion Energy and NextEra Energy of consents and approvals required from the (i) FERC, (ii) NRC (iii) Virginia Commission, (iv) North Carolina Commission and (v) South Carolina Commission, approval for listing on the NYSE of the NextEra Energy common stock to be issued in the NextEra Energy Merger, continued effectiveness of the registration statement on Form S-4 filed by NextEra Energy in connection with the NextEra Energy Merger, accuracy of the parties’ representations and warranties, compliance with covenants, and the absence of a material adverse effect on either Dominion Energy or NextEra Energy. In July 2026, Dominion Energy and NextEra Energy filed for review and approval with FERC, the NRC and the Virginia, North Carolina and South Carolina Commissions. The filings with the Virginia, North Carolina and South Carolina Commissions included proposals for an aggregate amount of $2.25 billion of customer rate credits, including approximately $1.78 billion to customers in Virginia, for utility customers allocated based on usage and payable over two years following closing along with an aggregate increase in charitable commitments of $10 million per year for five years following closing with such amounts to be funded by NextEra Energy.

The NextEra Energy Merger Agreement contains customary termination rights for each of Dominion Energy and NextEra Energy, including if the NextEra Energy Merger has not been consummated by November 2027, subject to extension to August 2028 in certain circumstances, if either of the required shareholder approvals is not obtained, or due to certain breaches of the NextEra Energy Merger Agreement. In certain circumstances in connection with or following termination of the NextEra Energy Merger Agreement, Dominion Energy will be required to pay NextEra Energy a termination fee of $2.24 billion. In comparable circumstances, NextEra Energy will be required to pay Dominion Energy a termination fee of $6.52 billion. In other specified circumstances where the NextEra Energy Merger Agreement is terminated due to the failure of one or more specified conditions relating to or involving certain regulatory matters, NextEra Energy will be required to pay Dominion Energy a termination fee of $4.83 billion.

Note 2. Significant Accounting Policies

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

 

21


 

 

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, 2025.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at June 30, 2026, their results of operations and changes in equity for the three and six months ended June 30, 2026 and 2025 and their cash flows for the six months ended June 30, 2026 and 2025. Such adjustments are normal and recurring in nature unless otherwise noted.

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, expenses and cash flows for the periods presented. Actual results may differ from those estimates.

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.

The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Information for quarterly periods is affected by seasonal variations in sales, rate changes, electric fuel and other energy-related purchases, purchased gas expenses and other factors.

Certain amounts in the Companies’ 2025 Consolidated Financial Statements have been reclassified to conform to the 2026 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, 2025, with the exception of the items described below.

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, 2026 and 2025:

 

 

 

Cash, Restricted
Cash and
Equivalents
at End of Period

 

 

Cash, Restricted
Cash and
Equivalents
at Beginning of Period

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

December 31, 2025

 

 

December
31, 2024

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash
    equivalents

 

$

296

 

 

$

344

 

 

$

250

 

 

$

310

 

Restricted cash and
   equivalents
(1)(2)

 

 

71

 

 

 

69

 

 

 

93

 

 

 

55

 

Cash, restricted
   cash and
   equivalents
   shown in the
   Consolidated
   Statements of
   Cash Flows

 

$

367

 

 

$

413

 

 

$

343

 

 

$

365

 

Virginia Power

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash
    equivalents

 

$

193

 

 

$

157

 

 

$

170

 

 

$

160

 

Restricted cash and
   equivalents
(1)(2)

 

 

60

 

 

 

61

 

 

 

61

 

 

 

46

 

Cash, restricted
   cash and
   equivalents
   shown in the
   Consolidated
   Statements of
   Cash Flows

 

$

253

 

 

$

218

 

 

$

231

 

 

$

206

 

 

(1)
Includes $45 million, $51 million, $51 million and $41 million at VPFS attributable to VIEs at June 30, 2026, June 30, 2025, December 31, 2025 and December 31, 2024, respectively.
(2)
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,

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

Significant noncash investing
   and financing activities:

 

 

 

 

 

 

Accrued capital expenditures

 

$

1,175

 

 

$

871

 

Leases(1)

 

 

340

 

 

 

37

 

 

(1)
Includes $41 million and $25 million of financing leases entered in during the six months ended June 30, 2026 and 2025, respectively, and $299 million and $12 million of operating leases entered in during the six months ended June 30, 2026 and 2025, respectively.

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

 

Six Months Ended June 30,

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

Significant noncash investing
   and financing activities:

 

 

 

 

 

 

Accrued capital expenditures

 

$

1,032

 

 

$

685

 

Leases(1)

 

 

426

 

 

 

29

 

 

 

22


 

 

(1)
Includes $35 million and $22 million of financing leases entered in during the six months ended June 30, 2026 and 2025, respectively, $297 million and $7 million of operating leases entered in during the six months ended June 30, 2026 and 2025, respectively, and $94 million for modifications of operating leases during the six months ended June 30, 2026.

Asset Retirement Obligations

In the second quarter of 2026, Dominion Energy revised its estimated cash flow projections associated with the recovery of spent nuclear fuel costs for its AROs associated with the decommissioning of Millstone, which resulted in a decrease of $208 million. Dominion Energy recorded a benefit associated with Millstone Unit 1 of $195 million ($142 million after-tax) within impairment of assets and other charges (benefits) in its Consolidated Statements of Income (reflected in the Corporate and Other segment) for both the three and six months ended June 30, 2026.

Also in the second quarter of 2026, Dominion Energy revised its estimated cash flow projections for its AROs to reflect updated information concerning two facilities related to CCR remediation. As a result, Dominion Energy recorded a $203 million increase to its AROs with a corresponding increase to regulatory assets.

Note 3. Operating Revenue

The Companies’ operating revenue consists of the following:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulated electric sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

1,523

 

 

$

1,347

 

 

$

3,370

 

 

$

2,916

 

 

$

1,164

 

 

$

991

 

 

$

2,656

 

 

$

2,215

 

Commercial

 

 

983

 

 

 

956

 

 

 

2,163

 

 

 

1,842

 

 

 

732

 

 

 

719

 

 

 

1,686

 

 

 

1,394

 

High load(1)

 

 

814

 

 

 

422

 

 

 

1,450

 

 

 

805

 

 

 

814

 

 

 

422

 

 

 

1,450

 

 

 

805

 

Industrial

 

 

199

 

 

 

178

 

 

 

384

 

 

 

341

 

 

 

83

 

 

 

68

 

 

 

160

 

 

 

134

 

Government and other retail

 

 

318

 

 

 

302

 

 

 

717

 

 

 

610

 

 

 

302

 

 

 

285

 

 

 

683

 

 

 

576

 

Wholesale

 

 

46

 

 

 

38

 

 

 

114

 

 

 

81

 

 

 

34

 

 

 

29

 

 

 

93

 

 

 

66

 

Nonregulated electric sales

 

 

255

 

 

 

238

 

 

 

692

 

 

 

610

 

 

 

43

 

 

 

42

 

 

 

75

 

 

 

65

 

Regulated gas sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

50

 

 

 

45

 

 

 

234

 

 

 

217

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

32

 

 

 

28

 

 

 

84

 

 

 

81

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

8

 

 

 

5

 

 

 

16

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulated gas transportation and storage

 

 

10

 

 

 

10

 

 

 

21

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

Other regulated revenue

 

 

136

 

 

 

99

 

 

 

136

 

 

 

143

 

 

 

131

 

 

 

95

 

 

 

126

 

 

 

134

 

Other nonregulated revenues(2)(3)(4)

 

 

82

 

 

 

50

 

 

 

166

 

 

 

109

 

 

 

23

 

 

 

9

 

 

 

45

 

 

 

22

 

Total operating revenue from
    contracts with customers

 

 

4,456

 

 

 

3,718

 

 

 

9,547

 

 

 

7,803

 

 

 

3,326

 

 

 

2,660

 

 

 

6,974

 

 

 

5,411

 

Other revenues(2)(5)

 

 

24

 

 

 

92

 

 

 

(48

)

 

 

83

 

 

 

95

 

 

 

52

 

 

 

143

 

 

 

66

 

Total operating revenue

 

$

4,480

 

 

$

3,810

 

 

$

9,499

 

 

$

7,886

 

 

$

3,421

 

 

$

2,712

 

 

$

7,117

 

 

$

5,477

 

 

(1)
Represents customers in Virginia, including certain data centers, with actual or anticipated forecast demand of 25 MW or higher and annual load factor of 75% or higher.
(2)
See Note 18 for amounts attributable to affiliates.
(3)
Includes sales of renewable energy credits of $27 million and $5 million for the three months ended June 30, 2026 and 2025, respectively, and $50 million and $15 million for the six months ended June 30, 2026 and 2025, respectively, at Dominion Energy and $6 million and $2 million for the three months ended June 30, 2026 and 2025, respectively, and $11 million and $6 million for the six months ended June 30, 2026 and 2025, respectively, at Virginia Power.
(4)
Includes revenue from transition services agreements of $21 million and $24 million for the three months ended June 30, 2026 and 2025, respectively, and $48 million and $51 million for the six months ended June 30, 2026 and 2025, respectively, at Dominion Energy.
(5)
Includes alternative revenue of $90 million and $60 million for the three months ended June 30, 2026 and 2025, respectively, and $136 million and $82 million for the six months ended June 30, 2026 and 2025, respectively, at both Dominion Energy and Virginia Power.

Neither Dominion Energy nor Virginia Power have any amounts for revenue to be recognized in the future on multi-year contracts in place at June 30, 2026.

At June 30, 2026 and December 31, 2025, Dominion Energy’s contract liability balances were $38 million and $45 million, respectively. At June 30, 2026 and December 31, 2025, Virginia Power’s contract liability balances were $32 million and $38 million, respectively. The Companies’ contract liabilities are recorded in other current liabilities and other deferred credits and other liabilities in the Consolidated Balance Sheets.

The Companies recognize revenue as they fulfill their obligations to provide service to their customers. During the six months ended June 30, 2026 and 2025, Dominion Energy recognized revenue of $45 million and $50 million, respectively, from the beginning contract liability balances. During the six months ended June 30, 2026 and 2025, Virginia Power recognized $38 million and $46 million, respectively, from the beginning contract liability balances.

 

23


 

 

Note 4. Income Taxes

Other than the following matters, there have been no significant developments regarding the Companies’ provision for income taxes, tax-related assets and liabilities and/or unrecognized tax benefits disclosed in Note 5 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

For continuing operations including noncontrolling interests for the six months ended June 30, 2026, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:

 

 

Dominion Energy

 

 

 

Virginia Power

 

 

(millions, except percentages)

 

Amount

 

 

Rate

 

 

 

Amount

 

 

Rate

 

 

U.S. federal statutory tax

 

$

270

 

 

 

21.0

 

%

 

$

351

 

 

 

21.0

 

%

State and local income taxes, net of federal income tax effect(1)

 

 

53

 

 

 

4.1

 

 

 

 

66

 

 

 

4.0

 

 

Tax credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Production tax credits(2)

 

 

(91

)

 

 

(7.1

)

 

 

 

(34

)

 

 

(2.0

)

 

   Investment tax credit amortization

 

 

(44

)

 

 

(3.4

)

 

 

 

(23

)

 

 

(1.4

)

 

Nontaxable or nondeductible items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Regulatory deferrals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Reversal of excess deferred income taxes

 

 

(33

)

 

 

(2.6

)

 

 

 

(23

)

 

 

(1.4

)

 

      AFUDC—equity

 

 

(15

)

 

 

(1.2

)

 

 

 

(16

)

 

 

(1.0

)

 

   Absence of tax on noncontrolling interest

 

 

(29

)

 

 

(2.1

)

 

 

 

(29

)

 

 

(1.8

)

 

Other adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Qualified nuclear decommissioning trust net gains (losses)

 

 

61

 

 

 

4.8

 

 

 

 

10

 

 

 

0.6

 

 

   Other

 

 

(2

)

 

 

(0.3

)

 

 

 

(3

)

 

 

(0.1

)

 

Effective tax(3)

 

$

170

 

 

 

13.2

 

%

 

$

299

 

 

 

17.9

 

%

(1)
State taxes in Virginia make up the majority (greater than 50%) of the tax effect in this category.
(2)
Dominion Energy production tax credits include a $50 million income tax benefit for the clean energy fuel production tax credit.
(3)
The Companies had no adjustments related to the following disclosure categories: foreign tax effects, effects of changes in tax law or rates enacted in the current period and effects of cross-border tax laws.

 

For continuing operations, including noncontrolling interests for the six months ended June 30, 2025, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:

 

 

 

Dominion Energy

 

 

Virginia Power

 

U.S. federal statutory tax rate

 

21.0%

 

 

21.0%

 

Increases (reductions) resulting from:

 

 

 

 

 

 

State taxes, net of federal benefit

 

 

4.7

 

 

 

4.4

 

Investment tax credits

 

 

(2.5

)

 

 

(0.8

)

Production tax credits(1)

 

 

(4.9

)

 

 

(4.1

)

Reversal of excess deferred income taxes

 

 

(1.7

)

 

 

(1.7

)

Qualified nuclear decommissioning trust net gains (losses)

 

 

2.0

 

 

 

 

Remeasurements and settlements of uncertain tax positions

 

 

(1.6

)

 

 

 

AFUDC—equity

 

 

(0.8

)

 

 

(1.0

)

Absence of tax on noncontrolling interest

 

 

(1.6

)

 

 

(2.3

)

Other, net

 

 

(0.1

)

 

 

(0.1

)

Effective tax rate

 

 

14.5

%

 

 

15.4

%

 

(1)
Dominion Energy and Virginia Power production tax credits include a $40 million income tax benefit for the nuclear production tax credit. Dominion Energy production tax credits also include a $27 million income tax benefit for the clean fuel production tax credit.

During the second quarter of 2026, Dominion Energy determined that it is expected to be subject to the corporate alternative minimum tax in 2026 and recorded a corporate alternative minimum tax liability of $21 million, net of tax credit utilization, along with corresponding deferred tax assets related to corporate alternative minimum tax credit carryforwards, which management expects to fully utilize in future periods. The ultimate impact of the corporate alternative minimum tax remains subject to pending guidance and interpretations, which could materially impact the Companies’ results of operations, financial condition and/or cash flows.

During the second quarter of 2026, Dominion Energy entered into an agreement with a third party and completed the transfer of tax credits generated in 2025 for which it received cash proceeds of $45 million. In July 2026, Dominion Energy entered into a separate agreement with a third party and completed the transfer of tax credits generated in 2025 for which it received cash proceeds of $21 million.

 

 

24


 

 

Note 5. Earnings Per Share

The following table presents the calculation of Dominion Energy’s basic and diluted EPS:

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Dominion Energy from continuing operations

 

$

341

 

 

$

759

 

 

$

963

 

 

$

1,425

 

Preferred stock dividends (see Note 15)

 

 

(11

)

 

 

(11

)

 

 

(22

)

 

 

(22

)

Net income attributable to Dominion Energy from continuing operations - Basic & Diluted

 

 

330

 

 

 

748

 

 

 

941

 

 

 

1,403

 

Net income (loss) attributable to Dominion Energy from discontinued operations - Basic &
   Diluted

 

$

(1

)

 

$

1

 

 

$

(2

)

 

$

 

Average shares of common stock outstanding - Basic

 

 

879.5

 

 

 

852.9

 

 

 

879.2

 

 

 

852.5

 

Net effect of dilutive securities(1)

 

 

2.6

 

 

 

0.3

 

 

 

1.9

 

 

 

0.2

 

Average shares of common stock outstanding - Diluted

 

 

882.1

 

 

 

853.2

 

 

 

881.1

 

 

 

852.7

 

EPS from continuing operations - Basic

 

$

0.37

 

 

$

0.88

 

 

$

1.07

 

 

$

1.65

 

EPS from discontinued operations - Basic

 

 

 

 

 

 

 

 

 

 

 

 

EPS attributable to Dominion Energy - Basic

 

$

0.37

 

 

$

0.88

 

 

$

1.07

 

 

$

1.65

 

EPS from continuing operations - Diluted

 

$

0.37

 

 

$

0.88

 

 

$

1.07

 

 

$

1.65

 

EPS from discontinued operations - Diluted

 

 

 

 

 

 

 

 

 

 

 

 

EPS attributable to Dominion Energy - Diluted

 

$

0.37

 

 

$

0.88

 

 

$

1.07

 

 

$

1.65

 

 

(1)
Dilutive securities for three months ended June 30, 2026, consists of forward sales agreements entered into in the second and third quarters of 2025 and first and second quarters of 2026 (applying the treasury stock method). Dilutive securities for six months ended June 30, 2026, consists of forward sales agreements entered into in the second and third quarters of 2025 and the second quarter of 2026 and certain forward sales agreements entered into the first quarter of 2026 (applying the treasury stock method). Additionally, dilutive securities for 2025 consists of forward sales agreements entered into in the first and second quarters of 2025 and certain forward sales agreements entered into in the fourth quarter of 2024 (applying the treasury stock method).

Certain of the forward sales agreements entered into in the first quarter of 2026 were potentially dilutive securities but were excluded from the calculation of diluted EPS from continuing operations for the six months ended June 30, 2026, as the dilutive stock price threshold was not met. The forward sales agreements entered into in the third quarter of 2024 and certain of the forward sales agreements entered into in the fourth quarter of 2024 were potentially dilutive securities but were excluded from the calculation of diluted EPS from continuing operations for the three and six months ended June 30, 2025, as the dilutive stock price threshold was not met.

 

 

25


 

 

Note 6. Accumulated Other Comprehensive Income (Loss)

Dominion Energy

The following tables present Dominion Energy’s changes in AOCI (net of tax) and reclassifications out of AOCI by component:

 

 

 

Total Derivative-Hedging Activities(1)

 

 

Investment Securities

 

 

Pension and other postretirement benefit costs(2)

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

(179

)

 

$

 

 

$

24

 

 

$

(155

)

Beginning balance, tax

 

 

45

 

 

 

 

 

 

(6

)

 

 

39

 

Beginning balance, net of tax

 

 

(134

)

 

 

 

 

 

18

 

 

 

(116

)

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

12

 

 

 

(1

)

 

 

 

 

 

11

 

Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

 

 

 

Interest and related charges

 

 

9

 

 

 

 

 

 

 

 

 

9

 

Other income (expense)

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

   Total

 

 

9

 

 

 

 

 

 

(3

)

 

 

6

 

Income tax expense (benefit)

 

 

(2

)

 

 

 

 

 

1

 

 

 

(1

)

Total, net of tax

 

 

7

 

 

 

 

 

 

(2

)

 

 

5

 

Net current period other comprehensive income (loss)

 

 

19

 

 

 

(1

)

 

 

(2

)

 

 

16

 

Ending balance, net of tax

 

 

(115

)

 

 

(1

)

 

 

16

 

 

 

(100

)

Ending balance, tax

 

 

39

 

 

 

 

 

 

(5

)

 

 

34

 

Ending balance

 

$

(154

)

 

$

(1

)

 

$

21

 

 

$

(134

)

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

(240

)

 

$

1

 

 

$

35

 

 

$

(204

)

Beginning balance, tax

 

 

61

 

 

 

2

 

 

 

(9

)

 

 

54

 

Beginning balance, net of tax

 

 

(179

)

 

 

3

 

 

 

26

 

 

 

(150

)

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

 

 

 

Interest and related charges

 

 

10

 

 

 

 

 

 

 

 

 

10

 

Other income (expense)

 

 

 

 

 

3

 

 

 

(3

)

 

 

 

   Total

 

 

10

 

 

 

3

 

 

 

(3

)

 

 

10

 

Income tax expense (benefit)

 

 

(3

)

 

 

(1

)

 

 

1

 

 

 

(3

)

Total, net of tax

 

 

7

 

 

 

2

 

 

 

(2

)

 

 

7

 

Net current period other comprehensive income (loss)

 

 

7

 

 

 

 

 

 

(2

)

 

 

5

 

Ending balance, net of tax

 

 

(172

)

 

 

3

 

 

 

24

 

 

 

(145

)

Ending balance, tax

 

 

58

 

 

 

 

 

 

(8

)

 

 

50

 

Ending balance

 

$

(230

)

 

$

3

 

 

$

32

 

 

$

(195

)

 

(1)
Comprised entirely of interest rate derivative hedging activities.
(2)
Comprised entirely of prior service cost.

 

26


 

 

 

 

Total Derivative-Hedging Activities(1)

 

 

Investment
Securities

 

 

Pension and other postretirement benefit costs(2)

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

(183

)

 

$

 

 

$

26

 

 

$

(157

)

Beginning balance, tax

 

 

46

 

 

 

 

 

 

(7

)

 

 

39

 

Beginning balance, net of tax

 

 

(137

)

 

 

 

 

 

19

 

 

 

(118

)

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

9

 

 

 

(1

)

 

 

 

 

 

8

 

     Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

Interest and related charges

 

 

17

 

 

 

 

 

 

 

 

 

17

 

Other income (expense)

 

 

 

 

 

 

 

 

(5

)

 

 

(5

)

   Total

 

 

17

 

 

 

 

 

 

(5

)

 

 

12

 

Income tax expense (benefit)

 

 

(4

)

 

 

 

 

 

2

 

 

 

(2

)

Total, net of tax

 

 

13

 

 

 

 

 

 

(3

)

 

 

10

 

Net current period other comprehensive income (loss)

 

 

22

 

 

 

(1

)

 

 

(3

)

 

 

18

 

Ending balance, net of tax

 

 

(115

)

 

 

(1

)

 

 

16

 

 

 

(100

)

Ending balance, tax

 

 

39

 

 

 

 

 

 

(5

)

 

 

34

 

Ending balance

 

$

(154

)

 

$

(1

)

 

$

21

 

 

$

(134

)

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

(229

)

 

$

(19

)

 

$

38

 

 

$

(210

)

Beginning balance, tax

 

 

58

 

 

 

9

 

 

 

(9

)

 

 

58

 

Beginning balance, net of tax

 

 

(171

)

 

 

(10

)

 

 

29

 

 

 

(152

)

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

(16

)

 

 

9

 

 

 

 

 

 

(7

)

      Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

Interest and related charges

 

 

20

 

 

 

 

 

 

 

 

 

20

 

Other income (expense)

 

 

 

 

 

5

 

 

 

(6

)

 

 

(1

)

   Total

 

 

20

 

 

 

5

 

 

 

(6

)

 

 

19

 

Income tax expense (benefit)

 

 

(5

)

 

 

(1

)

 

 

1

 

 

 

(5

)

Total, net of tax

 

 

15

 

 

 

4

 

 

 

(5

)

 

 

14

 

Net current period other comprehensive income (loss)

 

 

(1

)

 

 

13

 

 

 

(5

)

 

 

7

 

Ending balance, net of tax

 

 

(172

)

 

 

3

 

 

 

24

 

 

 

(145

)

Ending balance, tax

 

 

58

 

 

 

 

 

 

(8

)

 

 

50

 

Ending balance

 

$

(230

)

 

$

3

 

 

$

32

 

 

$

(195

)

(1) Comprised entirely of interest rate derivative hedging activities.

(2) Comprised entirely of prior service cost.

 

 

27


 

 

Virginia Power

The following tables present Virginia Power’s changes in AOCI (net of tax) and reclassifications out of AOCI by component:

 

 

 

Total Derivative-Hedging Activities(1)

 

 

Investment Securities

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

39

 

 

$

 

 

$

39

 

Beginning balance, tax

 

 

(10

)

 

 

 

 

 

(10

)

Beginning balance, net of tax

 

 

29

 

 

 

 

 

 

29

 

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

1

 

 

 

 

 

 

1

 

     Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

 

 

          Interest and related charges (benefit)

 

 

 

 

 

 

 

 

 

            Total

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Total, net of tax

 

 

 

 

 

 

 

 

 

Net current period other comprehensive income (loss)

 

 

1

 

 

 

 

 

 

1

 

Ending balance, net of tax

 

 

30

 

 

 

 

 

 

30

 

Ending balance, tax

 

 

(10

)

 

 

 

 

 

(10

)

Ending balance

 

$

40

 

 

$

 

 

$

40

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

28

 

 

$

1

 

 

$

29

 

Beginning balance, tax

 

 

(7

)

 

 

1

 

 

 

(6

)

Beginning balance, net of tax

 

21

 

 

2

 

 

23

 

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

2

 

 

 

(2

)

 

 

 

Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

         Total

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Total, net of tax

 

 

 

 

 

 

 

 

 

Net current period other comprehensive income (loss)

 

 

2

 

 

 

(2

)

 

 

 

Ending balance, net of tax

 

 

23

 

 

 

 

 

 

23

 

Ending balance, tax

 

 

(8

)

 

 

1

 

 

 

(7

)

Ending balance

 

$

31

 

 

$

(1

)

 

$

30

 

 

(1)
Comprised entirely of interest rate derivative hedging activities.

 

 

28


 

 

 

 

Total Derivative-Hedging Activities(1)

 

 

Investment
Securities

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

43

 

 

$

 

 

$

43

 

Beginning balance, tax

 

 

(11

)

 

 

 

 

 

(11

)

Beginning balance, net of tax

 

 

32

 

 

 

 

 

 

32

 

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

(1

)

 

 

 

 

 

(1

)

     Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

 

 

           Interest and related charges

 

 

(1

)

 

 

 

 

 

(1

)

           Other income (expense)

 

 

 

 

 

 

 

 

 

              Total

 

 

(1

)

 

 

 

 

 

(1

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Total, net of tax

 

 

(1

)

 

 

 

 

 

(1

)

Net current period other comprehensive income (loss)

 

 

(2

)

 

 

 

 

 

(2

)

Ending balance, net of tax

 

 

30

 

 

 

 

 

 

30

 

Ending balance, tax

 

 

(10

)

 

 

 

 

 

(10

)

Ending balance

 

$

40

 

 

$

 

 

$

40

 

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

38

 

 

$

(1

)

 

$

37

 

Beginning balance, tax

 

 

(10

)

 

 

1

 

 

 

(9

)

Beginning balance, net of tax

 

 

28

 

 

 

 

 

 

28

 

Other comprehensive income (loss) before
    reclassifications: gains (losses)

 

 

(5

)

 

 

 

 

 

(5

)

Amounts reclassified from AOCI: (gains) losses

 

 

 

 

 

 

 

          Total

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Total, net of tax

 

 

 

 

 

 

 

 

 

Net current period other comprehensive income (loss)

 

 

(5

)

 

 

 

 

 

(5

)

Ending balance, net of tax

 

 

23

 

 

 

 

 

 

23

 

Ending balance, tax

 

 

(8

)

 

 

1

 

 

 

(7

)

Ending balance

 

$

31

 

 

$

(1

)

 

$

30

 

(1) Comprised entirely of interest rate derivative hedging activities.

 

 

29


 

 

 

Note 7. Fair Value Measurements

The Companies’ fair value measurements are made in accordance with the policies discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. See Note 8 for additional information about the Companies’ derivatives and hedge accounting activities.

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, implied price volatilities and credit spreads are considered unobservable.

The following table presents the Companies’ quantitative information about Level 3 fair value measurements at June 30, 2026. The range and weighted-average are presented in dollars for market price inputs and percentages for price volatility and credit spreads.

 

 

 

 

 

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

 

Valuation
Techniques

 

Unobservable
Input

 

Fair Value
(millions)

 

 

Range

 

Weighted -average(1)

 

 

Fair Value
(millions)

 

 

Range

 

Weighted -average(1)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

 

Discounted cash flow

 

Market price (per Dth)(3)

 

$

61

 

 

(2) - 12

 

 

3

 

 

$

61

 

 

(2) - 3

 

 

(1

)

FTRs

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

278

 

 

2 - 32

 

 

15

 

 

 

278

 

 

2 - 32

 

 

15

 

Electricity

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

288

 

 

30 - 124

 

 

59

 

 

 

 

 

 

 

 

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

 

Option model

 

Market price (per Dth)(3)

 

 

375

 

 

2 - 20

 

 

4

 

 

 

9

 

 

3 - 20

 

 

8

 

 

 

 

 

 

Credit spread(4)

 

 

 

 

0% - 3%

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

Price volatility(5)

 

 

 

 

3% - 80%

 

 

65

%

 

 

 

 

20% - 74%

 

 

50

%

Total assets

 

 

 

 

 

 

$

1,002

 

 

 

 

 

 

 

$

348

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTRs

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

33

 

 

(9) - 32

 

 

15

 

 

 

33

 

 

(9) - 32

 

 

15

 

Electricity

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

39

 

 

34 -187

 

 

67

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

$

72

 

 

 

 

 

 

 

$

33

 

 

 

 

 

 

 

(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
(4)
Represents credit spreads unrepresented in published markets.
(5)
Represents volatilities unrepresented in published markets.

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

 

Significant Unobservable Inputs

 

Position

 

Change to Input

 

Impact on Fair Value Measurement

Market price

 

Buy

 

Increase (decrease)

 

Gain (loss)

Market price

 

Sell

 

Increase (decrease)

 

Loss (gain)

Price volatility

 

Buy

 

Increase (decrease)

 

Gain (loss)

Price volatility

 

Sell

 

Increase (decrease)

 

Loss (gain)

 

Nonrecurring Fair Value Measurements

See Note 10 for information regarding impairment charges recorded by Dominion Energy associated with certain nonregulated solar generation facilities and nonregulated renewable natural gas facilities.

 

30


 

 

Recurring Fair Value Measurements

The following table presents the Companies’ assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

3

 

 

$

121

 

 

$

1,002

 

 

$

1,126

 

 

$

3

 

 

$

68

 

 

$

348

 

 

$

419

 

Interest rate

 

 

 

 

 

51

 

 

 

 

 

 

51

 

 

 

 

 

 

34

 

 

 

 

 

 

34

 

Foreign currency exchange rate

 

 

 

 

 

2

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

6,833

 

 

 

 

 

 

 

 

 

6,833

 

 

 

3,512

 

 

 

 

 

 

 

 

 

3,512

 

International

 

 

193

 

 

 

 

 

 

 

 

 

193

 

 

 

101

 

 

 

 

 

 

 

 

 

101

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

 

 

 

139

 

 

 

 

 

 

139

 

 

 

 

 

 

127

 

 

 

 

 

 

127

 

Government securities

 

 

131

 

 

 

231

 

 

 

 

 

 

362

 

 

 

96

 

 

 

131

 

 

 

 

 

 

227

 

Private debt funds – liquid investments

 

 

 

 

 

419

 

 

 

 

 

 

419

 

 

 

 

 

 

237

 

 

 

 

 

 

237

 

Cash equivalents and other

 

 

48

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,208

 

 

$

963

 

 

$

1,002

 

 

$

9,173

 

 

$

3,712

 

 

$

599

 

 

$

348

 

 

$

4,659

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

320

 

 

$

72

 

 

$

392

 

 

$

 

 

$

10

 

 

$

33

 

 

$

43

 

Interest rate

 

 

 

 

 

61

 

 

 

 

 

 

61

 

 

 

 

 

 

60

 

 

 

 

 

 

60

 

Foreign currency exchange rate

 

 

 

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Total liabilities

 

$

 

 

$

389

 

 

$

72

 

 

$

461

 

 

$

 

 

$

78

 

 

$

33

 

 

$

111

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

87

 

 

$

642

 

 

$

729

 

 

$

 

 

$

49

 

 

$

208

 

 

$

257

 

Interest rate

 

 

 

 

 

201

 

 

 

 

 

 

201

 

 

 

 

 

 

197

 

 

 

 

 

 

197

 

Foreign currency exchange rate

 

 

 

 

 

28

 

 

 

 

 

 

28

 

 

 

 

 

 

28

 

 

 

 

 

 

28

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

6,215

 

 

 

 

 

 

 

 

 

6,215

 

 

 

3,154

 

 

 

 

 

 

 

 

 

3,154

 

International

 

 

168

 

 

 

 

 

 

 

 

 

168

 

 

 

96

 

 

 

 

 

 

 

 

 

96

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

 

 

 

10

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

Government securities

 

 

418

 

 

 

74

 

 

 

 

 

 

492

 

 

 

332

 

 

 

 

 

 

 

 

 

332

 

Cash equivalents and other

 

 

46

 

 

 

 

 

 

 

 

 

46

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,847

 

 

$

400

 

 

$

642

 

 

$

7,889

 

 

$

3,582

 

 

$

274

 

 

$

208

 

 

$

4,064

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

201

 

 

$

15

 

 

$

216

 

 

$

 

 

$

13

 

 

$

 

 

$

13

 

Interest rate

 

 

 

 

 

19

 

 

 

 

 

 

19

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Foreign currency exchange rate

 

 

 

 

 

10

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Total liabilities

 

$

 

 

$

230

 

 

$

15

 

 

$

245

 

 

$

 

 

$

31

 

 

$

 

 

$

31

 

 

(1)
Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $2.0 billion and $2.3 billion for Dominion Energy, inclusive of $1.1 billion and $1.3 billion at Virginia Power, at June 30, 2026 and December 31, 2025, respectively, of assets measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

 

31


 

 

The following table presents the net change in the Companies’ assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

512

 

 

$

269

 

 

$

627

 

 

$

384

 

 

$

134

 

 

$

26

 

 

$

208

 

 

$

68

 

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

(20

)

 

 

(3

)

 

 

(30

)

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased electric capacity

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

Electric fuel and other energy-related purchases

 

 

240

 

 

 

143

 

 

 

252

 

 

 

118

 

 

 

244

 

 

 

143

 

 

 

244

 

 

 

116

 

Purchased gas

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in regulatory assets/liabilities

 

 

245

 

 

 

150

 

 

 

163

 

 

 

43

 

 

 

181

 

 

 

145

 

 

 

100

 

 

 

113

 

Settlements

 

 

(254

)

 

 

(153

)

 

 

(296

)

 

 

(149

)

 

 

(244

)

 

 

(143

)

 

 

(241

)

 

 

(126

)

Purchases

 

 

210

 

 

 

8

 

 

 

221

 

 

 

8

 

 

 

 

 

 

8

 

 

 

11

 

 

 

8

 

Ending balance

 

$

930

 

 

$

414

 

 

$

930

 

 

$

414

 

 

$

315

 

 

$

179

 

 

$

315

 

 

$

179

 

 

Dominion Energy had $(20) million and $(30) million of unrealized gains (losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three and six months ended June 30, 2026, respectively, and $(3) million and $10 million of unrealized gains (losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three and six months ended June 30, 2025, respectively. Virginia Power had no unrealized gains and losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for both the three and six months ended June 30, 2026 and 2025.

 

Fair Value of Financial Instruments

Substantially all of the Companies’ financial instruments are recorded at fair value, with the exception of the instruments described below, which are reported at historical cost. Estimated fair values have been determined using available market information and valuation methodologies considered appropriate by management. The carrying amount of cash, restricted cash and equivalents, customer and other receivables, affiliated receivables, short-term debt, affiliated current borrowings, payables to affiliates and accounts payable are representative of fair value because of the short-term nature of these instruments. For the Companies’ financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Carrying
Amount

 

 

Estimated
Fair
Value
(1)

 

 

Carrying
Amount

 

 

Estimated
Fair
Value
(1)

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

41,786

 

 

$

39,944

 

 

$

23,178

 

 

$

21,725

 

Securitization
    bonds
(3)

 

 

970

 

 

 

974

 

 

 

970

 

 

 

974

 

Junior subordinated
    notes
(2)

 

 

7,462

 

 

 

7,682

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

38,897

 

 

$

37,481

 

 

$

21,800

 

 

$

20,593

 

Securitization
    bonds
(3)

 

 

1,054

 

 

 

1,076

 

 

 

1,054

 

 

 

1,076

 

Junior subordinated
    notes
(2)

 

 

5,978

 

 

 

6,217

 

 

 

 

 

 

 

 

(1)
Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.
(2)
Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. There were no fair value hedges associated with fixed-rate debt at June 30, 2026 and December 31, 2025.
(3)
Carrying amount includes current portions included in securities due within one year.

 

32


 

 

Note 8. Derivatives and Hedge Accounting Activities

The Companies’ accounting policies, objectives and strategies for using derivative instruments and cash collateral or other instruments under master netting or similar arrangements are discussed in Notes 2 and 7 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. See Note 7 for additional information about fair value measurements and associated valuation methods for derivatives. See Note 17 for additional information regarding credit-related contingent features for the Companies’ derivative instruments.

 

Balance Sheet Presentation

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

 

 

 

Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet

 

 

Virginia Power 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

$

789

 

 

$

34

 

 

$

 

 

$

755

 

 

$

406

 

 

$

34

 

 

$

 

 

$

372

 

Exchange

 

 

52

 

 

 

49

 

 

 

 

 

 

3

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

51

 

 

 

9

 

 

 

 

 

 

42

 

 

 

34

 

 

 

9

 

 

 

 

 

 

25

 

Foreign currency exchange rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

2

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

 

 

 

 

 

 

Total derivatives, subject to a master
   netting or similar arrangement

 

$

894

 

 

$

94

 

 

$

 

 

$

800

 

 

$

445

 

 

$

45

 

 

$

 

 

$

400

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

$

464

 

 

$

4

 

 

$

 

 

$

460

 

 

$

239

 

 

$

4

 

 

$

 

 

$

235

 

Exchange

 

 

48

 

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

201

 

 

 

5

 

 

 

 

 

 

196

 

 

 

197

 

 

 

4

 

 

 

 

 

 

193

 

Foreign currency exchange rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

28

 

 

 

8

 

 

 

 

 

 

20

 

 

 

28

 

 

 

8

 

 

 

 

 

 

20

 

Total derivatives, subject to a master
   netting or similar arrangement

 

$

741

 

 

$

65

 

 

$

 

 

$

676

 

 

$

464

 

 

$

16

 

 

$

 

 

$

448

 

 

(1)
Excludes derivative assets of $285 million and $217 million at Dominion Energy and $10 million and $18 million at Virginia Power at June 30, 2026 and December 31, 2025, respectively, which are not subject to master netting or other similar arrangements.

 

33


 

 

 

 

 

Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet

 

 

Virginia Power 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

$

91

 

 

$

34

 

 

$

 

 

$

57

 

 

$

38

 

 

$

34

 

 

$

 

 

$

4

 

Exchange

 

 

295

 

 

 

49

 

 

 

246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

61

 

 

 

9

 

 

 

 

 

 

52

 

 

 

60

 

 

 

9

 

 

 

 

 

 

51

 

Foreign currency exchange rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

8

 

 

 

2

 

 

 

 

 

 

6

 

 

 

8

 

 

 

2

 

 

 

 

 

 

6

 

Total derivatives, subject to a master
  netting or similar arrangement

 

$

455

 

 

$

94

 

 

$

246

 

 

$

115

 

 

$

106

 

 

$

45

 

 

$

 

 

$

61

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

$

38

 

 

$

4

 

 

$

 

 

$

34

 

 

$

6

 

 

$

4

 

 

$

 

 

$

2

 

Exchange

 

 

173

 

 

 

48

 

 

 

125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

19

 

 

 

5

 

 

 

 

 

 

14

 

 

 

8

 

 

 

4

 

 

 

 

 

 

4

 

Foreign currency exchange rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

10

 

 

 

8

 

 

 

 

 

 

2

 

 

 

10

 

 

 

8

 

 

 

 

 

 

2

 

Total derivatives, subject to a master
  netting or similar arrangement

 

$

240

 

 

$

65

 

 

$

125

 

 

$

50

 

 

$

24

 

 

$

16

 

 

$

 

 

$

8

 

 

(1)
Excludes derivative liabilities of $6 million and $5 million at Dominion Energy and $5 million and $7 million at Virginia Power at June 30, 2026 and December 31, 2025, respectively, which are not subject to master netting or other similar arrangements.

Volumes

The following table presents the volume of the Companies’ derivative activity at June 30, 2026. 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.

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Current

 

 

Noncurrent

 

 

Current

 

 

Noncurrent

 

Natural Gas (bcf):

 

 

 

 

 

 

 

 

 

 

 

 

Fixed price(1)

 

 

38

 

 

 

 

 

 

31

 

 

 

 

Basis(1)

 

 

295

 

 

 

1,878

 

 

 

148

 

 

 

240

 

Electricity (MWh in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Fixed price

 

 

9

 

 

 

34

 

 

 

 

 

 

 

FTRs

 

 

85

 

 

 

 

 

 

85

 

 

 

 

Interest rate(2) (in millions)

 

$

900

 

 

$

8,471

 

 

$

 

 

$

7,400

 

Foreign currency exchange rate(2) (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Danish Krone

 

292 kr.

 

 

   kr.

 

 

292 kr.

 

 

   kr.

 

Euro

 

128

 

 

 

 

128

 

 

 

 

(1)
Includes options.
(2)
Maturity is determined based on final settlement period.

 

34


 

 

AOCI

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in the Companies’ Consolidated Balance Sheets at June 30, 2026:

 

 

 

Dominion Energy

 

Virginia Power

 

 

AOCI After-Tax

 

 

Amounts Expected to be
Reclassified to Earnings
During the Next 12 Months
After-Tax

 

 

Maximum Term (months)

 

AOCI After-Tax

 

 

Amounts Expected to be
Reclassified to Earnings
During the Next 12 Months
After-Tax

 

 

Maximum Term (months)

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate

 

$

(115

)

 

$

(13

)

 

402

 

$

30

 

 

$

9

 

 

402

Total

 

$

(115

)

 

$

(13

)

 

 

 

$

30

 

 

$

9

 

 

 

 

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest rate payments) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in interest rates.

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of the Companies’ derivatives and where they are presented in their Consolidated Balance Sheets:

 

 

Dominion Energy

 

Virginia Power

 

 

Assets

 

Liabilities

 

Assets

 

Liabilities

 

(millions)

 

 

 

 

 

 

 

 

At June 30, 2026

 

 

 

 

 

 

 

 

Current derivatives not under cash flow hedge accounting

 

 

 

 

 

 

 

 

Commodity

$

486

 

$

218

 

$

308

 

$

42

 

Interest rate

 

2

 

 

 

 

 

 

 

Foreign currency exchange rate

 

2

 

 

8

 

 

2

 

 

8

 

Current derivatives under cash flow hedge accounting

 

 

 

 

 

 

 

 

Interest rate

 

 

 

 

 

 

 

 

Total current derivatives(1)

$

490

 

$

226

 

$

310

 

$

50

 

Noncurrent derivatives not under cash flow hedge accounting

 

 

 

 

 

 

 

 

Commodity

$

640

 

$

174

 

$

111

 

$

1

 

Interest rate

 

12

 

 

1

 

 

 

 

 

Foreign currency exchange rate

 

 

 

 

 

 

 

 

Noncurrent derivatives under cash flow hedge accounting

 

 

 

 

 

 

 

 

Interest rate

 

37

 

 

60

 

 

34

 

 

60

 

Total noncurrent derivatives(2)

 

689

 

 

235

 

 

145

 

 

61

 

Total derivatives

$

1,179

 

$

461

 

$

455

 

$

111

 

At December 31, 2025

 

 

 

 

 

 

 

 

Current derivatives not under cash flow hedge accounting

 

 

 

 

 

 

 

 

Commodity

$

295

 

$

98

 

$

172

 

$

12

 

Interest rate

 

 

 

3

 

 

 

 

 

Foreign currency exchange rate

 

25

 

 

10

 

 

25

 

 

10

 

Current derivatives under cash flow hedge accounting

 

 

 

 

 

 

 

 

Interest rate

 

15

 

 

 

 

15

 

 

 

Total current derivatives(1)

$

335

 

$

111

 

$

212

 

$

22

 

Noncurrent derivatives not under cash flow hedge accounting

 

 

 

 

 

 

 

 

Commodity

$

434

 

$

118

 

$

85

 

$

1

 

Interest rate

 

2

 

 

7

 

 

 

 

 

Foreign currency exchange rate

 

3

 

 

 

 

3

 

 

 

Noncurrent derivatives under cash flow hedge accounting

 

 

 

 

 

 

 

 

Interest rate

 

184

 

 

9

 

 

182

 

 

8

 

Total noncurrent derivatives(2)

 

623

 

 

134

 

 

270

 

 

9

 

Total derivatives

$

958

 

$

245

 

$

482

 

$

31

 

 

(1) The Companies’ current derivative liabilities are presented in other current liabilities in their Consolidated Balance Sheets.

(2) The Companies’ noncurrent derivative assets and liabilities are presented in other deferred charges and other assets and other deferred credits and other liabilities, respectively, in their Consolidated Balance Sheets.

 

 

 

35


 

 

The following tables present the gains and losses on the Companies’ derivatives, as well as where the associated activity is presented in their Consolidated Balance Sheets and Statements of Income.

 

 

 

Dominion Energy

 

 

Virginia Power

 

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)

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate(3)

 

$

16

 

 

$

(9

)

 

$

24

 

 

$

1

 

 

$

 

 

$

23

 

Total

 

$

16

 

 

$

(9

)

 

$

24

 

 

$

1

 

 

$

 

 

$

23

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate(3)

 

$

 

 

$

(10

)

 

$

28

 

 

$

2

 

 

$

 

 

$

28

 

Total

 

$

 

 

$

(10

)

 

$

28

 

 

$

2

 

 

$

 

 

$

28

 

Six Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate(3)

 

$

12

 

 

$

(17

)

 

$

(12

)

 

$

(2

)

 

$

1

 

 

$

(13

)

Total

 

$

12

 

 

$

(17

)

 

$

(12

)

 

$

(2

)

 

$

1

 

 

$

(13

)

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate(3)

 

$

(21

)

 

$

(20

)

 

$

(72

)

 

$

(7

)

 

$

 

 

$

(73

)

Total

 

$

(21

)

 

$

(20

)

 

$

(72

)

 

$

(7

)

 

$

 

 

$

(73

)

 

(1)
Amounts deferred into AOCI have no associated effect in the Companies’ 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 the Companies’ Consolidated Statements of Income.
(3)
Amounts recorded in the Companies’ Consolidated Statements of Income are classified in interest and related charges.

 

 

 

Amount of Gain (Loss) Recognized in Income on Derivatives(1)(2)

 

Derivatives not designated as hedging instruments

 

Dominion Energy

 

 

Virginia Power

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

(78

)

 

$

23

 

 

$

(203

)

 

$

(16

)

 

$

 

 

$

(9

)

 

$

 

 

$

(19

)

Purchased gas

 

 

(3

)

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased electric capacity

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

 

Electric fuel and other energy-related purchases

 

 

231

 

 

 

139

 

 

 

275

 

 

 

105

 

 

 

233

 

 

 

137

 

 

 

261

 

 

 

101

 

Interest rate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and related charges

 

 

37

 

 

 

(13

)

 

 

48

 

 

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

187

 

 

$

149

 

 

$

115

 

 

$

79

 

 

$

233

 

 

$

128

 

 

$

254

 

 

$

82

 

 

(1)
Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Companies’ Consolidated Statements of Income.
(2)
Excludes amounts related to foreign currency exchange rate derivatives that are deferred to regulatory assets/liabilities that will begin to amortize as
the CVOW Commercial Project is placed in service.

 

36


 

 

Note 9. Investments

Equity and Debt Securities

Rabbi Trust Securities

Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $199 million and $181 million at June 30, 2026 and December 31, 2025, respectively.

Decommissioning Trust Securities

The Companies maintain nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants as summarized below:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Amortized
Cost

 

 

Total
Unrealized
Gains

 

 

Total
Unrealized
Losses

 

 

Allowance
for Credit
Losses

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Total
Unrealized
Gains

 

 

Total
Unrealized
Losses

 

 

Allowance
for Credit
Losses

 

 

Fair
Value

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1,081

 

 

$

5,658

 

 

$

(3

)

 

 

 

 

$

6,736

 

 

$

596

 

 

$

2,961

 

 

$

(3

)

 

 

 

 

$

3,554

 

International

 

 

43

 

 

 

148

 

 

 

 

 

 

 

 

 

191

 

 

 

26

 

 

 

75

 

 

 

 

 

 

 

 

 

101

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government
   securities

 

 

318

 

 

 

1

 

 

 

(1

)

 

$

 

 

 

318

 

 

 

226

 

 

 

1

 

 

 

 

 

$

 

 

 

227

 

Corporate debt
   instruments

 

 

126

 

 

 

1

 

 

 

 

 

 

 

 

 

127

 

 

 

126

 

 

 

1

 

 

 

 

 

 

 

 

 

127

 

Private debt funds(3)

 

 

2,199

 

 

 

28

 

 

 

 

 

 

 

 

 

2,227

 

 

 

1,244

 

 

 

16

 

 

 

 

 

 

 

 

 

1,260

 

Insurance
   contracts
(4)

 

 

253

 

 

 

 

 

 

 

 

 

 

 

 

253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents
   and other
(5)

 

 

55

 

 

 

 

 

 

 

 

 

 

 

 

55

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Total

 

$

4,075

 

 

$

5,836

 

 

$

(4

)

(6)

$

 

 

$

9,907

 

 

$

2,222

 

 

$

3,054

 

 

$

(3

)

(6)

$

 

 

$

5,273

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1,107

 

 

$

5,052

 

 

$

(2

)

 

 

 

 

$

6,157

 

 

$

602

 

 

$

2,620

 

 

$

(2

)

 

 

 

 

$

3,220

 

International

 

 

44

 

 

 

122

 

 

 

 

 

 

 

 

 

166

 

 

 

27

 

 

 

69

 

 

 

 

 

 

 

 

 

96

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government
   securities

 

 

448

 

 

 

 

 

 

 

 

$

 

 

 

448

 

 

 

332

 

 

 

 

 

 

 

 

$

 

 

 

332

 

Private debt funds(3)

 

 

2,143

 

 

 

 

 

 

 

 

 

 

 

 

2,143

 

 

 

1,213

 

 

 

 

 

 

 

 

 

 

 

 

1,213

 

Insurance
   contracts
(4)

 

 

245

 

 

 

 

 

 

 

 

 

 

 

 

245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents
   and other
(5)

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

3

 

Total

 

$

3,994

 

 

$

5,174

 

 

$

(2

)

(6)

$

 

 

$

9,166

 

 

$

2,177

 

 

$

2,689

 

 

$

(2

)

(6)

$

 

 

$

4,864

 

 

(1)
Unrealized gains and losses on equity securities are included in other income (expense) 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. Changes in allowance for credit losses are included in other income (expense).
(3)
These private debt funds are generally structured without an explicit termination date. The Companies’ withdrawal and redemption rights begin after an initial multiyear lock-up period. Unless otherwise elected, distributions of income, profits and capital are generally reinvested in the underlying funds. The Companies may elect to receive a portion of future income as cash distributions, subject to fund liquidity restrictions. Generally, the Companies’ interests can be sold in the secondary markets subject to the approval of the general partner. Secondary markets tend to be less liquid especially during periods of market stress.
(4)
Includes company owned life insurance contracts measured at cash surrender value.
(5)
Dominion Energy includes pending sales of securities of $7 million and pending purchases of securities of $40 million at June 30, 2026 and December 31, 2025, respectively. Virginia Power includes pending sales of securities of $4 million and $3 million at June 30, 2026, and December 31, 2025, respectively.
(6)
Dominion Energy’s fair value of securities in an unrealized loss position was $192 million and $48 million at June 30, 2026 and December 31, 2025, respectively. Virginia Power’s fair value of securities in an unrealized loss position was $120 million and $3 million at June 30, 2026 and December 31, 2025, respectively.

 

37


 

 

The portion of unrealized gains and losses that relates to equity securities held within the Companies’ nuclear decommissioning trusts is summarized below:

 

Dominion Energy

 

 

Quarter-to-Date

 

Year-to-Date

 

Period Ended June 30,

2026

 

2025

 

2026

 

2025

 

(millions)

 

 

 

 

 

 

 

 

Net gains (losses) recognized during
   the period

$

885

 

$

535

 

$

626

 

$

296

 

Less: Net (gains) losses recognized
   during the period on securities
   sold during the period

 

(2

)

 

10

 

 

5

 

 

16

 

Unrealized gains (losses) recognized
   during the period on securities still
   held at period end
(1)

$

883

 

$

545

 

$

631

 

$

312

 

 

(1)
Included in other income (expense) and the nuclear decommissioning trust regulatory liability.



Virginia Power

 

 

Quarter-to-Date

 

Year-to-Date

 

Period Ended June 30,

2026

 

2025

 

2026

 

2025

 

(millions)

 

 

 

 

 

 

 

 

Net gains (losses) recognized during
   the period

$

472

 

$

274

 

$

346

 

$

153

 

Less: Net (gains) losses recognized
   during the period on securities
   sold during the period

 

(2

)

 

7

 

 

1

 

 

11

 

Unrealized gains (losses) recognized
   during the period on securities still
   held at period end
(1)

$

470

 

$

281

 

$

347

 

$

164

 

 

 

(1)
Included in other income (expense) and the nuclear decommissioning trust regulatory liability.

The fair value of the Companies’ fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2026 by contractual maturity is as follows:

 

 

Dominion Energy

 

Virginia Power

 

(millions)

 

 

 

 

Due in one year or less

$

3

 

$

1

 

Due after one year through five years

 

568

 

 

349

 

Due after five years through ten years

 

100

 

 

82

 

Due after ten years

 

193

 

 

158

 

Total

$

864

 

$

590

 

 

Presented below is selected information regarding the Companies’ equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.

 

Dominion Energy

 

 

Quarter-to-Date

 

Year to Date

 

Period Ended June 30,

2026

 

2025

 

2026

 

2025

 

(millions)

 

 

 

 

 

 

 

 

Proceeds from sales

$

1,530

 

$

763

 

$

2,308

 

$

1,694

 

Realized gains(1)

 

25

 

 

7

 

 

32

 

 

18

 

Realized losses(1)

 

25

 

 

22

 

 

42

 

 

42

 

 

(1)
Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

 

 



Virginia Power

 

 

Quarter-to-Date

 

Year to Date

 

Period Ended June 30,

2026

 

2025

 

2026

 

2025

 

(millions)

 

 

 

 

 

 

 

 

Proceeds from sales

$

1,031

 

$

355

 

$

1,583

 

$

923

 

Realized gains(1)

 

19

 

 

5

 

 

24

 

 

14

 

Realized losses(1)

 

19

 

 

14

 

 

28

 

 

29

 

 

(1)
Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Equity Method Investments

There have been no significant changes to the equity method investments included in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025 except as described below.

Atlantic Coast Pipeline

A description of Dominion Energy’s investment in Atlantic Coast Pipeline, including events that led to the cancellation of the Atlantic Coast Pipeline Project in July 2020, is included in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. Dominion Energy expects it could incur additional losses from Atlantic Coast Pipeline as it completes wind-down activities. While Dominion Energy is unable to precisely estimate the amounts to be incurred by Atlantic Coast Pipeline, the portion of such amounts attributable to Dominion Energy is not expected to be material to Dominion Energy’s results of operations, financial position or statement of cash flows. As a result of its share of equity losses exceeding its investment, Dominion Energy’s Consolidated Balance Sheets at June 30, 2026 and December 31, 2025 include a liability of $3 million and $4 million, respectively, presented in other current liabilities and reflecting Dominion Energy’s obligations to Atlantic Coast Pipeline related to AROs.

Dominion Privatization

At June 30, 2026 and December 31, 2025, Dominion Privatization had $13 million and $10 million of borrowings outstanding, respectively, related to its credit facility with Dominion Energy, reflected in other receivables in Dominion Energy’s Consolidated Balance Sheet.

 

 

Note 10. Property, Plant and Equipment

CVOW Commercial Project – Estimated Total Project Cost

As discussed in Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, Virginia Power is constructing the CVOW Commercial Project. Installation of the final turbines comprising the 2.6 GW project is expected to be completed by the end of 2027. The estimated total project cost is approximately $11.7 billion (excluding financing costs and including $0.1 billion of contingency) which reflects revised network upgrade costs assigned by PJM to the CVOW Commercial Project, an estimated impact of certain tariffs

 

38


 

 

which became effective in April 2026 and updated turbine installation projections as well as previously included estimated impacts of a temporary suspension of work order, certain tariffs including those which became effective during 2025, the impact of the U.S. Supreme Court’s ruling in late February 2026 and tariffs which became effective in late February 2026. The Companies’ projected impact of tariffs on expected total project cost is subject to change due to the inherent uncertainty associated with which tariffs, if any, may be in effect and the associated requirements and rates of such tariffs.

The expected total project cost reflects a decrease of approximately $0.4 billion, relative to both Virginia Power’s January and May 2026 construction update filings, associated with a revision to projected onshore electrical interconnection costs and network upgrade costs allocated by PJM to the CVOW Commercial Project. The expected total project cost also reflects an increase of approximately $0.4 billion, relative to both Virginia Power’s January and May 2026 construction update filings, $0.3 billion of which is associated with updated projections for turbine installations reflecting weather and other conditions with the remainder associated with other factors experienced, including increased fuel costs, during installations completed through July 2026. In addition, the expected total project cost reflects an increase of approximately $0.2 billion, relative to Virginia Power’s May 2026 construction update filing, associated with revised Section 232 tariffs enacted in April 2026 on equipment expected to be delivered from April 2026 through the end of 2027 that contains steel, aluminum and/or copper products, including the associated impact such revised tariffs had on tariffs enacted in late February 2026 on equipment expected to be delivered from February 2026 through July 2026 that originates from Mexico, Canada, a European Union member or other applicable countries. Relative to Virginia Power’s January 2026 construction update filing, the expected impact of tariffs is a net increase of approximately $0.1 billion as the increase discussed above related to April 2026 revision of Section 232 tariffs is partially offset by the reversal of approximately $0.2 billion associated with tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries that were the subject of a U.S. Supreme Court’s ruling in late February 2026, and the estimated impact of new tariffs subsequently enacted in late February 2026 on equipment expected to be delivered from February 2026 through July 2026 that originates from Mexico, Canada, a European Union member or other applicable countries. The actual tariffs to be incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component.

As a result of the revised total project cost estimates and cost sharing mechanism, for the three and six months ended June 30, 2026 Virginia Power recorded a net charge for costs not expected to be recovered from customers of $246 million and $129 million, respectively, within impairments of assets and other charges (benefits), which includes $123 million and $64 million, respectively, attributable to noncontrolling interests, and an associated income tax benefit of $32 million and $17 million, respectively. For the three and six months ended June 30, 2025 Virginia Power recorded a charge for costs not expected to be recovered from customers of $51 million and $96 million, respectively, within impairment of assets and other charges (benefits), which includes $26 million and $48 million, respectively, attributable to noncontrolling interests, and an associated income tax benefit of $6 million and $12 million, respectively. All such amounts are reflected in the Corporate and Other segment in the Companies’ Consolidated Statements of Income. See Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025 for more information on the cost sharing mechanism in the Virginia Commission’s December 2022 order and Stonepeak’s 50% noncontrolling interest in the CVOW Commercial Project.

The estimated total project cost above reflects the Companies’ best estimate of the remaining construction costs, including contingency of approximately 7% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond the Companies’ control, including but not limited to fuel for transportation and installation, the impact of applicable tariffs including any potential impact of Section 232 investigations, costs to maintain necessary permits, approvals and authorizations, any additional suspension of work orders, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife, actual network upgrade costs allocated by PJM, adverse weather and/or any severe weather events. Any additional increase in such costs in excess of the contingency included in the estimated total project cost would be subject to the cost sharing mechanisms discussed above and could have a material impact on the Companies’ future financial condition, results of operations and/or cash flows.

Nonregulated Solar Generation Facilities

In March 2026, Dominion Energy committed to a plan to sell certain nonregulated solar generation facilities within its Contracted Energy segment. As a result of meeting the requirements to be classified as held for sale, Dominion Energy recorded an impairment charge of $78 million ($60 million after-tax) in impairment of assets and other charges (benefits) in its Consolidated Statement of Income (reflected in the Corporate and Other segment) for the three months ended March 31, 2026 to adjust the net assets associated with such facilities to their estimated fair value less cost to sell, using a market approach, of $500 million. In May 2026, Dominion Energy entered into an agreement with Enel to sell certain of these nonregulated solar generation facilities within its Contracted Energy segment for $140 million in cash, subject to customary closing adjustments. The transaction is expected to close by the end of 2026, contingent on clearance or approval under the HSR and by FERC as well as other customary closing and regulatory conditions. In July 2026, the Federal Trade Commission granted early termination of the waiting period under the HSR. At June 30, 2026, the carrying

 

39


 

 

amounts of major classes of assets held for sale are composed primarily of $262 million of net property, plant and equipment, as well as operating lease assets and a valuation allowance for assets held for sale with the carrying amount of major classes of liabilities held for sale composed primarily of deferred investment tax credits and operating lease liabilities. Also during the second quarter of 2026, Dominion Energy determined that it no longer had the intent to sell the remaining nonregulated solar generation facilities included in the March plan and reclassified their respective balances from held for sale to held and used at the lower of their original carrying amounts before the asset was classified as held for sale, adjusted for any depreciation expense not recognized while they were classified as held for sale, or their fair value. The balances primarily included property, plant and equipment, operating lease assets, deferred investment tax credits and operating lease liabilities.

Nonregulated Renewable Natural Gas Facilities

In April 2026, Dominion Energy commenced an evaluation of its long-term intentions for its nonregulated renewable natural gas facilities within Contracted Energy. In connection with that evaluation, Dominion Energy expects that it is more likely than not that the nonregulated renewable natural gas facilities will be sold before the end of their useful lives and therefore evaluated the associated long-lived assets for recoverability during the second quarter of 2026. Using a probability-weighted approach, Dominion Energy determined Contracted Energy’s nonregulated renewable natural gas facilities were impaired and recorded a charge of $820 million ($640 million after-tax) in impairment of assets and other charges (benefits) in its Consolidated Statement of Income (reflected in the Corporate and Other segment) for the three and six months ended June 30, 2026 to adjust the property, plant and equipment, net of associated deferred investment tax credits, down to its estimated fair value of $468 million. The fair value was estimated using an income approach. The valuation is considered a Level 3 fair value measurement due to the use of significant judgmental and unobservable inputs, including projected timing and amount of future cash flows and discount rates reflecting risks inherent in the future cash flows and market prices.

 

40


 

 

Note 11. Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:

 

Dominion Energy

 

 

Virginia Power

 

 

June 30,
2026

 

December 31,
2025

 

 

June 30,
2026

 

December 31,
2025

 

(millions)

 

 

 

 

 

 

 

 

 

Regulatory assets:

 

 

 

 

 

 

 

 

 

Deferred cost of fuel used in electric generation(1)

$

1,209

 

$

213

 

 

$

1,015

 

$

174

 

Securitized cost of fuel used in electric generation(2)

 

133

 

 

125

 

 

 

133

 

 

125

 

Riders OSW and CE(3)

 

51

 

 

23

 

 

 

51

 

 

23

 

Other deferred rider costs for Virginia electric utility(4)

 

157

 

 

445

 

 

 

157

 

 

445

 

Ash pond and landfill closure costs(5)

 

125

 

 

164

 

 

 

125

 

 

164

 

Deferred nuclear refueling outage costs(6)

 

107

 

 

101

 

 

 

107

 

 

101

 

NND Project costs(7)

 

138

 

 

138

 

 

 

 

 

 

Other

 

205

 

 

171

 

 

 

82

 

 

78

 

Regulatory assets-current

 

2,125

 

 

1,380

 

 

 

1,670

 

 

1,110

 

Unrecognized pension and other postretirement benefit costs(8)

 

510

 

 

527

 

 

 

 

Riders OSW and CE(3)

 

442

 

 

287

 

 

 

442

 

 

287

 

Other deferred rider costs for Virginia electric utility(4)

 

526

 

 

338

 

 

 

526

 

 

338

 

Interest rate hedges(9)

 

165

 

 

165

 

 

 

 

 

AROs and related funding(10)

 

397

 

 

385

 

 

 

 

 

 

NND Project costs(7)

 

1,603

 

 

1,672

 

 

 

 

 

 

CCR remediation, ash pond and landfill closure costs(5)

 

3,093

 

 

2,868

 

 

 

2,530

 

 

2,510

 

Deferred cost of fuel used in electric generation(1)

 

153

 

 

391

 

 

 

153

 

 

391

 

Securitized cost of fuel used in electric generation(2)

 

779

 

 

868

 

 

 

779

 

 

868

 

Other

 

797

 

 

775

 

 

 

153

 

 

132

 

Regulatory assets-noncurrent

 

8,465

 

 

8,276

 

 

 

4,583

 

 

4,526

 

Total regulatory assets

$

10,590

 

$

9,656

 

 

$

6,253

 

$

5,636

 

Regulatory liabilities:

 

 

 

 

 

 

 

 

 

Deferred cost of fuel used in electric generation(1)

 

 

 

3

 

 

 

 

 

3

 

Provision for future cost of removal and AROs(11)

 

101

 

 

101

 

 

 

101

 

 

101

 

Reserve for rate credits to electric utility customers(12)

 

26

 

 

34

 

 

 

 

 

 

Income taxes refundable through future rates(13)

 

116

 

 

110

 

 

 

77

 

 

77

 

Monetization of guarantee settlement(14)

 

67

 

 

67

 

 

 

 

 

 

Derivatives(15)

 

255

 

 

158

 

 

 

219

 

 

135

 

Other

 

44

 

 

69

 

 

 

42

 

 

58

 

Regulatory liabilities-current

 

609

 

 

542

 

 

 

439

 

 

374

 

Income taxes refundable through future rates(13)

 

2,788

 

 

2,854

 

 

 

1,998

 

 

2,046

 

Provision for future cost of removal and AROs(11)

 

1,966

 

 

1,950

 

 

 

1,349

 

 

1,346

 

Nuclear decommissioning trust(16)

 

2,756

 

 

2,494

 

 

 

2,756

 

 

2,494

 

Monetization of guarantee settlement(14)

 

468

 

 

501

 

 

 

 

 

 

Interest rate hedges(9)

 

447

 

 

461

 

 

 

447

 

 

461

 

Reserve for rate credits to electric utility customers(12)

 

117

 

 

128

 

 

 

 

 

 

Overrecovered other postretirement benefit costs(17)

 

223

 

 

209

 

 

 

 

 

 

Derivatives(15)

 

251

 

 

228

 

 

 

 

 

31

 

Other

 

406

 

 

247

 

 

 

313

 

 

152

 

Regulatory liabilities-noncurrent

 

9,422

 

 

9,072

 

 

 

6,863

 

 

6,530

 

Total regulatory liabilities

$

10,031

 

$

9,614

 

 

$

7,302

 

$

6,904

 

 

(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, which are being amortized into electric fuel and other energy-related purchases. See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.
(3)
Deferred balances for Riders OSW and CE include amounts for shortfall or excess in energy sales, capacity revenue, renewable energy credits and production tax credits as such customer benefit amounts are included as a component, including an equity return, of the revenue requirements associated with each rate adjustment clause. In addition, the deferred Rider OSW balance at June 30, 2026 and December 31, 2025 includes $10 million and $4 million, respectively, for future decommissioning activities respectively.
(4)
Reflects deferrals under Virginia Power’s electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects.
(5)
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, 2025.

 

41


 

 

(6)
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.
(7)
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.
(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 and 23 years for Dominion Energy and Virginia Power, respectively at June 30, 2026.
(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)
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.
(16)
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.
(17)
Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

At June 30, 2026, Dominion Energy and Virginia Power regulatory assets include $6.2 billion and $4.1 billion, respectively, on which they do not expect to earn a return during the applicable recovery period. With the exception of certain items discussed above, the majority of these expenditures are expected to be recovered within the next two years.

 

 

42


 

 

Note 12. Regulatory Matters

Regulatory Matters Involving Potential Loss Contingencies

As a result of issues generated in the ordinary course of business, the Companies are involved in various regulatory matters. Certain regulatory matters may ultimately result in a loss; however, as such matters are in an initial procedural phase, involve uncertainty as to the outcome of pending reviews or orders, and/or involve significant factual issues that need to be resolved, it is not possible for the Companies to estimate a range of possible loss. For regulatory 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 regulatory process such that the Companies are able to estimate a range of possible loss. For regulatory matters 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. Any estimated range is based on currently available information, involves elements of judgment and significant uncertainties and may not represent the Companies’ maximum possible loss exposure. The circumstances of such regulatory matters will change from time to time and actual results may vary significantly from the current estimate. For current matters not specifically reported below, management does not anticipate that the outcome from such matters would have a material effect on the Companies’ financial position, liquidity or results of operations.

Other Regulatory Matters

Other than the following matters, there have been no significant developments regarding key legislation affecting operations or key regulatory developments disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Virginia Regulation - Updates to Key Legislation Affecting Operations

Virginia 2020 Legislation

Renewable generation: In April 2026, the Governor of Virginia signed into law legislation which deems 16.0 GW of short-duration energy storage by the end of 2045, including 4.0 GW by the end of 2030, and 4.0 GW of long-duration energy storage by the end of 2045, including 2.0 GW by the end of 2035, which includes up to 800 MW for any one project which may include new or expanded pumped storage facilities, to be in the public interest.

Carbon trading program: In April 2026, the Governor of Virginia signed into law legislation that requires Virginia to establish and maintain a market-based carbon trading program consistent with RGGI, effective July 2026. All costs of the carbon trading program are recoverable through an environmental rider. In June 2026, the Governor of Virginia signed into law legislation that requires 45 percent of all revenue collected by Virginia pursuant to the market-based trading program be remitted to certain electric utilities, including Virginia Power, who will be subsequently required to distribute such funds to residential and certain commercial customers.

Virginia Regulation - Recent Developments

2025 Biennial Review

In November 2025, the Virginia Commission approved a base rate increase of $566 million effective January 2026 with an incremental base rate increase of $210 million effective January 2027. The Virginia Commission also authorized an ROE of 9.80% for Virginia Power that will be applied to Virginia Power’s riders prospectively and that will also be utilized to measure base rate earnings for the 2027 Biennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025 for additional information. In March 2026, an appeal of the Virginia Commission’s order was filed with the Supreme Court of Virginia. This matter is pending.

Virginia Fuel Expenses

In May 2026, Virginia Power filed its annual fuel factor with the Virginia Commission to recover an estimated $2.7 billion in Virginia jurisdictional projected fuel expense for the rate year beginning July 1, 2026 and a projected $1.1 billion under-recovered balance as of June 30, 2026. The projected under-recovered balance is comprised of $1.0 billion in projected and $66 million in actual under-recovered amounts from the rate years ended June 30, 2026 and 2025, respectively. Virginia Power proposed two alternatives to recover these under-collected fuel costs. The first option reflects recovery of the total $3.8 billion fuel cost requirement over the July 2026 through June 2027 fuel period and results in an increase in Virginia Power’s fuel revenues of $1.9 billion when applied to projected kilowatt-hour sales for the period. The second option proposed by Virginia Power incorporates its May 2026 application to the Virginia Commission for approval of a financing order to securitize up to the projected $1.0 billion under-recovered balance associated with the rate year ended June 30, 2026 as permitted under legislation enacted in Virginia in May 2026 authorizing Virginia Power to petition the Virginia Commission on or before July 2026 for approval of a financing order for certain deferred fuel costs. Under this option, Virginia Power proposed implementation of a rate to recover its projected current period fuel costs and the $66 million associated with under-recovered amounts from the rate year ended June 30, 2025 only effective July 2026 on an interim basis, while suspending implementation of the $1.0 billion associated with projected under-recovered amounts from the rate year ended June 30, 2026 pending the Virginia Commission’s consideration of the securitization petition. If approved by the Virginia Commission, the securitization option results in a net increase in Virginia Power’s fuel revenues for the rate year of approximately $702 million. In June 2026, the Virginia Commission ordered that, in accordance with Virginia Power’s second proposed option, the rate associated with the projected current period fuel costs and the $66 million associated with under-recovered amounts from the rate year ended June 30, 2025 be implemented effective July 2026 on an interim basis. In May 2026, in accordance

 

43


 

 

with legislation enacted in Virginia in May 2026 discussed above, Virginia Power filed an application with the Virginia Commission for approval of a financing order to securitize the projected $1.0 billion under-recovered fuel balance from the rate year ended June 30, 2026 through the issuance of one or more tranches of bonds with tenors up to approximately ten years, but no longer than approximately 15 years. These matters are pending.

Virginia Power Equity Application

In March 2026, Virginia Power requested approval from the Virginia Commission to issue and sell to Dominion Energy up to $5.1 billion of authorized but unissued shares of its common stock, no par value, through the end of 2029 to maintain adequate credit metrics and efficient access to capital markets while funding necessary capital expenditures. In May 2026, the Virginia Commission granted Virginia Power approval to issue up to $3.6 billion of authorized but unissued shares of its common stock, through the end of 2029.

Renewable Generation Projects

In October 2025, Virginia Power filed a petition with the Virginia Commission for CPCNs to construct or acquire and operate six utility-scale projects totaling approximately 845 MW of solar generation and two energy storage projects totaling approximately 155 MW as part of its efforts to meet the renewable generation development targets under the VCEA. The projects include Bedford and Pumpkinseed, which were constructed and have been operated as non-jurisdictional generation facilities. The remaining projects are expected to, as of October 2025, cost approximately $2.9 billion, excluding financing costs, and be placed into service between 2028 and 2030. In April 2026, the Virginia Commission approved CPCNs to construct or acquire and operate four utility-scale projects totaling approximately 532 MW of solar generation and one energy storage project totaling approximately 80 MW. The projects include Bedford and Pumpkinseed with the remaining projects approved in the April 2026 order expected to, as of October 2025, cost approximately $1.5 billion, excluding financing costs, and be placed into service between 2028 and 2029. Virginia Power is reviewing the order and assessing its options.

GTSA Filing

In March 2026, Virginia Power filed a petition with the Virginia Commission for approval of Phase IV, covering 2027 through 2029, of its plan for electric distribution grid transformation projects as authorized by the GTSA. The plan proposes to continue the mainfeeder hardening project on 41 additional feeders in 2027 through 2029, proposes the continued implementation of and investment in previously approved voltage island mitigation projects and voltage optimization enablement work and continued deployment of its previously approved telecommunications plan and select vegetation management programs. Virginia Power also requests approval for one new project, a stepdown conversion pilot program designed to proactively upgrade parts of the distribution system to a higher voltage, eliminating the need for 24 overhead 500 kVA and 333 kVA stepdown transformers. For Phase IV, the total proposed capital investment is $983 million and the proposed operations and maintenance investment is $125 million. This matter is pending.

 

Riders

Other than the following matters, there have been no significant developments regarding the significant riders associated with various Virginia Power projects disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

 

Rider Name

 

Application
Date

 

Approval
Date

 

Rate Year
Beginning

 

Total Revenue
Requirement
(millions)
(1)

 

 

Increase (Decrease)
from Previous
(millions)

 

Rider CCR

 

April 2026

 

Pending

 

January 2027

 

$

217

 

 

$

51

 

Rider CE(2)

 

October 2025

 

April 2026

 

May 2026

 

 

280

 

 

 

98

 

Rider CERC

 

March 2026

 

Pending

 

January 2027

 

 

70

 

 

 

34

 

Rider DIST(3)

 

August 2025

 

May 2026

 

June 2026

 

 

327

 

 

 

60

 

Rider GEN

 

June 2026

 

Pending

 

April 2027

 

 

430

 

 

 

119

 

Rider GEN

 

June 2026

 

Pending

 

April 2028

 

 

408

 

 

 

(22

)

Rider OSW

 

October 2025

 

July 2026

 

September 2026

 

 

670

 

 

 

31

 

Rider RGGI(4)

 

June 2026

 

Pending

 

March 2027

 

 

1,179

 

 

N/A

 

Rider SNA

 

October 2025

 

July 2026

 

September 2026

 

 

233

 

 

 

26

 

Rider T1(5)

 

May 2026

 

Pending

 

September 2026

 

 

1,539

 

 

 

196

 

 

(1)
In addition, Virginia Power has riders associated with other projects with an aggregate total revenue requirement of approximately $45 million at June 30, 2026 and pending applications associated with such riders, which if approved, would result in an annual revenue requirement increase of approximately $20 million.
(2)
As approved, associated with four solar generation projects, including Bedford and Pumpkinseed (non-jurisdictional generation facilities with an aggregate recorded cost of $251 million at September 30, 2025), one energy storage project, 10 purchased power agreements and certain costs associated with expanding solar and storage facilities in addition to previously approved Rider CE projects.
(3)
The total revenue requirement for Rider DIST includes $120 million for certain previously approved electric distribution grid transformation projects, $172 million for previously approved phases and proposed phase nine of certain new underground distribution facilities and $35 million for certain previously approved rural broadband capacity projects. Virginia Power recognized a charge of $24 million ($18 million after-tax) recorded primarily in impairment of assets and other charges (benefits) in the Companies’ Consolidated Statements of Income (reflected in the Corporate and Other segment) for the three and six months ended June 30, 2026, for the disallowance of certain strategic undergrounding costs previously incurred in connection with

 

44


 

 

this final order. In addition, effective June 2026, the rider associated with rural broadband capacity projects was consolidated into Rider DIST and separate collection of rates under the rural broadband rider ceased.
(4)
In June 2026, Virginia Power filed a petition to update and reinstate Rider RGGI to recover RGGI compliance costs incurred beginning July 2026 and those projected to occur through February 2028, with rate recovery from March 2027 through February 2028. In its petition, Virginia Power proposed an alternative mitigation approach which, if approved, would spread the recovery of costs over a two-year period and result in a total revenue requirement of $940 million for the rate year beginning March 2027.
(5)
Consists of $540 million for the transmission component of Virginia Power’s base rates and $999 million for Rider T1.

Electric Transmission Projects

Other than the following matters, there have been no significant developments regarding the significant Virginia Power electric transmission projects disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

 

Description and Location of Project

 

Application
Date

 

Approval
Date

 

Type of
Line

 

Miles of
Lines

 

Cost Estimate
(millions)
(1)

 

Construct new Culpeper Technology transmission lines, substations and related
    projects in the Counties of Culpeper, Orange and Fauquier and the Town of
    Culpeper, Virginia

 

February 2025

 

March 2026

 

230 kV

 

13

 

$

255

 

Construct new Golden-Mars transmission lines and related projects in Loudoun
    County, Virginia

 

March 2025

 

June 2026

(2)

500-
230 kV

 

11

 

 

515

 

Partial rebuild Chesterfield-Lanexa transmission lines in the Counties of Henrico,
    Charles City and New Kent, Virginia

 

September 2025

 

March 2026

 

230-
115 kV

 

58

 

$

150

 

Construct Morrisville-Wishing Star transmission lines and related projects in the
    Counties of Fauquier, Prince William and Loudoun, Virginia

 

February 2026

 

Pending

 

500-
230 kV

 

45

 

 

875

 

Rebuild Charlottesville-Gordonsville transmission lines and related projects in the
    County of Albermarle and the City of Charlottesville, Virginia

 

April 2026

 

Pending

 

230 kV

 

16

 

$

100

 

Construct Firehouse transmission lines, substation and related projects in the
    County of Loudoun, Virginia

 

May 2026

 

Pending

 

230 kV

 

1

 

 

65

 

Construct Aspen-Doubs and Goose Creek-Woodside transmission lines,
    rebuild Doubs-Goose Creek transmission line and related projects in the
    County of Loudoun, Virginia

 

May 2026

 

Pending

 

500 kV

 

9

 

$

200

 

Construct new Allman Station switching station and related projects in the City
     of Fredericksburg, Virginia

 

May 2026

 

Pending

 

230 kV

 

1

 

 

100

 

Install underbuilt transmission lines on existing 500 kV Elmont-Ladysmith line
     support structures and related projects in the Counties of Hanover and
     Caroline, Virginia

 

June 2026

 

Pending

 

230 kV

 

26

 

$

60

 

 

(1)
Represents the cost estimate included in the application except as updated in the approval if applicable. In addition, Virginia Power had one other transmission project applied for and currently pending approval with an aggregate cost estimate of approximately $20 million.
(2)
In July 2026, appeals were filed with the Supreme Court of Virginia. This matter is pending.

 

North Carolina Regulation - Recent Developments

Base Rate Case

In April 2026, Virginia Power filed its base rate case with the North Carolina Commission. Virginia Power proposed a non-fuel, base rate increase of $37 million effective December 1, 2026 on an interim basis subject to refund, with any permanent rates ordered by the North Carolina Commission effective March 1, 2027. The base rate increase was proposed to recover the significant investments in generation, transmission and distribution infrastructure for the benefit of North Carolina customers. Virginia Power presented an earned ROE of 7.53% based upon a fully-adjusted test period, compared to its authorized return of 9.95%, and proposed ROE of 10.50%. In addition, Virginia Power requested permission to establish a rider to recover certain costs associated with the CVOW Commercial Project. This matter is pending.

South Carolina Regulation - Recent Developments

Electric Base Rate Case

In January 2026, DESC filed its retail electric base rate case and schedules with the South Carolina Commission. DESC proposed a non-fuel, base rate increase of $331 million, partially offset by a net decrease in storm damage and DSM components of $9 million. If approved, the overall proposed rate increase of $322 million, or 12.7%, would be effective on and after the first billing cycle of July 2026. The base rate increase was proposed to recover the continued investment in assets and operating resources required to serve DESC’s rapidly expanding customer base and evolving customer needs, while maintaining the safety, reliability, resiliency and efficiency of its system, and to meet increasingly stringent reliability, security and environmental requirements. DESC presented an ROE of 4.78% based upon a fully-adjusted test period. The proposed rates would provide for an earned ROE of 10.50% compared to the currently authorized ROE of 9.94%.

In May 2026, DESC, the South Carolina Office of Regulatory Staff and other parties of record filed a stipulation agreement with the South Carolina Commission for approval. The stipulation agreement provides for a non-fuel, base rate increase of $219 million prior to the effect of South Carolina Commission-ordered DSM reductions effective on and after the first billing cycle of July 2026 and an authorized ROE of 9.99%. In addition, the stipulation agreement includes that DESC will provide to residential customers a one-time refund and other customer assistance, resulting in after-tax charges of

 

45


 

 

$5 million reflected in Dominion Energy’s Consolidated Statements of Income for both the three and six months ended June 30, 2026. In July 2026, the South Carolina Commission issued an order approving the stipulation agreement.

Cost of Fuel

DESC’s retail electric rates include a cost of fuel component approved by the South Carolina Commission which may be adjusted periodically to reflect changes in the price of fuel purchased by DESC. In February 2026, DESC filed with the South Carolina Commission a proposal to increase the total fuel cost component of retail electric rates. DESC’s proposed adjustment is designed to recover DESC’s current base fuel costs, including its existing under-collected balance, over the 12-month period beginning with the first billing cycle of May 2026. In addition, DESC proposed to update its variable environmental and avoided capacity cost component. The net effect is a proposed annual increase of $36 million. In March 2026, DESC, the South Carolina Office of Regulatory Staff and another party filed a settlement agreement with the South Carolina Commission for approval to make certain adjustments to the February 2026 filing that would result in an inconsequential change to the proposed annual increase. In April 2026, the South Carolina Commission approved the settlement agreement, with rates effective with the first billing cycle of May 2026.

Electric DSM Programs

DESC has approval for a DSM rider through which it recovers expenditures related to its DSM programs. In January 2026, DESC filed an application with the South Carolina Commission seeking approval to recover $54 million of costs and net lost revenues associated with these programs, along with an incentive to invest in such programs. DESC requested that rates be effective with the first billing cycle of May 2026. In April 2026, the South Carolina Commission approved the request, effective with the first billing cycle of May 2026.

Canadys Station

In December 2025, DESC and Santee Cooper filed an application with the South Carolina Commission for approval of a CPCN to jointly construct and operate Canadys Station. Upon completion, DESC and Santee Cooper will each own a 50% undivided interest in the generating station and its electrical output. The application included an expected total cost of approximately $5 billion, excluding financing costs, with costs split equally between the joint owners for the proposed 2.2 GW facility. In addition, the application seeks approval for the construction of a new 230 kV switchyard and related transmission facilities which are expected to cost approximately $100 million, to be jointly owned by DESC and Santee Cooper, with costs split between the joint owners based on a formula reflecting shared use. In June 2026, the South Carolina Commission approved the request. The related facilities are expected to be placed into service in 2033. The estimated cost and project timelines are subject to refinement through the permitting process and the negotiation of contracts for major construction suppliers.

Electric - Transmission Project

In July 2026, DESC filed an application with the South Carolina Commission requesting approval of a CPCN to reconductor five existing corridor lines currently connected to its Jasper substation in Jasper County, South Carolina, consisting of a total of 84 miles of 230 kV transmission lines with an estimated total project cost of approximately $110 million. This matter is pending.

Natural Gas Rates

In June 2026, DESC filed with the South Carolina Commission its monitoring report for the 12-month period ended March 31, 2026 with a total revenue requirement of $676 million. This revenue requirement represents a $22 million base rate increase under the terms of the Natural Gas Rate Stabilization Act effective with the first billing cycle of November 2026. This matter is pending.

 

Note 13. Leases

Other than the items discussed below, there have been no significant changes regarding the Companies’ leases as described in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

During the second quarter of 2026, Virginia Power recorded a right-of-use asset and offsetting lease obligation upon commencement of an operating lease for an energy storage facility with a term of approximately 15 years. At June 30, 2026, Virginia Power’s Consolidated Balance Sheet includes $273 million of other deferred charges and other assets for its right-of-use asset and $273 million of operating lease liabilities comprised of $9 million presented in other current liabilities and $264 million presented in other deferred credits and other liabilities related to this lease.

Dominion Energy’s Consolidated Statements of Income include $5 million and $9 million for the three and six months ended June 30, 2026, respectively, and $5 million and $9 million for the three and six months ended June 30, 2025, respectively, of rental revenue included in operating revenue. Dominion Energy’s Consolidated Statements of Income include $3 million and $7 million for the three and six months ended June 30, 2026, respectively, and $4 million and $5 million for the three and six months ended June 30, 2025, respectively, of depreciation expense included in depreciation and amortization related to facilities subject to power purchase agreements under which Dominion Energy is the lessor.

 

Note 14. Variable Interest Entities

There have been no significant changes regarding the entities the Companies consider VIEs as described in Note 16 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

 

46


 

 

Virginia Power

Virginia Power purchased shared services from DES, an affiliated VIE, of $166 million and $142 million for the three months ended June 30, 2026 and 2025, respectively, and $351 million and $297 million for the six months ended June 30, 2026 and 2025, respectively. Virginia Power’s Consolidated Balance Sheets include amounts due to DES of $51 million and $46 million at June 30, 2026 and December 31, 2025, respectively, recorded in payables to affiliates.

As described in Note 18 of the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, Virginia Power formed VPFS in October 2023, a wholly-owned special purpose subsidiary which is considered to be a VIE, for the sole purpose of securitizing certain of Virginia Power’s under-recovered deferred fuel balance through the issuance of senior secured deferred fuel cost bonds. The Companies’ Consolidated Balance Sheets include balances for VPFS as follows:

 

 

June 30, 2026

 

 

December 31, 2025

 

(millions)

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Prepayments(1)

 

$

1

 

 

$

1

 

Regulatory assets-current

 

 

133

 

 

 

125

 

Other current assets(2)

 

 

45

 

 

 

51

 

Regulatory assets-noncurrent

 

 

779

 

 

 

868

 

    Total assets

 

$

958

 

 

$

1,045

 

Liabilities

 

 

 

 

 

 

Securities due within one
    year

 

$

176

 

 

$

171

 

Accrued interest, payroll
    and taxes

 

 

8

 

 

 

9

 

Securitization bonds

 

 

794

 

 

 

883

 

    Total liabilities

 

$

978

 

 

$

1,063

 

 

(1)
Prepayments are presented in other current assets in Virginia Power’s Consolidated Balance Sheets.
(2)
See Note 2 for additional information about restricted cash and equivalents at VPFS.

As described in Note 10 of the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, in October 2024 Virginia Power completed the sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak through the sale of an interest in OSWP, which is considered to be a VIE. The Companies’ Consolidated Balance Sheets include balances for OSWP as follows:

 

 

 

June 30, 2026

 

 

December 31, 2025

 

(millions)

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

162

 

 

$

149

 

Other receivables

 

 

101

 

 

 

 

Regulatory assets-current

 

 

5

 

 

 

15

 

Other investments

 

 

1

 

 

 

 

Property, plant and
    equipment

 

 

9,234

 

 

 

8,799

 

Accumulated depreciation
    and amortization

 

 

(20

)

 

 

 

Regulatory assets-noncurrent

 

 

269

 

 

 

150

 

Other deferred charges and
    other assets

 

 

23

 

 

 

9

 

       Total assets

 

$

9,775

 

 

$

9,122

 

Liabilities

 

 

 

 

 

 

Accounts payable

 

$

3

 

 

$

2

 

Accrued interest, payroll
    and taxes

 

 

4

 

 

 

2

 

Other current liabilities

 

 

20

 

 

 

16

 

Asset retirement obligations-
    noncurrent
(1)

 

 

429

 

 

 

220

 

       Total liabilities

 

$

456

 

 

$

240

 

 

(1)
Asset retirement obligations-noncurrent are presented in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

 

Note 15. Significant Financing Transactions

Credit Facilities and Short-term Debt

The Companies use short-term debt to fund working capital requirements and as a bridge to long-term debt financings. The levels of borrowing may vary significantly during the course of the year, depending upon the timing and amount of cash requirements not satisfied by cash from operations. In addition, Dominion Energy utilizes cash and letters of credit to fund collateral requirements. Collateral requirements are impacted by capital projects, commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties. Other than the items discussed below, there have been no significant changes regarding the Companies’ credit facilities and short-term debt as described in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Dominion Energy

Dominion Energy’s short-term financing is primarily supported by its joint revolving credit facility.

 

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At June 30, 2026, Dominion Energy’s commercial paper and letters of credit outstanding, as well as its capacity available under the credit facility discussed above and its supplemental revolving credit facility, were as follows:

 

 

Facility
Limit

 

Outstanding
Commercial
Paper

 

Outstanding
Letters of
Credit

 

Facility
Capacity
Available

 

(millions)

 

 

 

 

 

 

 

 

Joint revolving credit
   facility
(1)

$

7,000

 

$

2,087

 

$

4

 

$

4,909

 

Supplemental revolving
  credit facility
(2)

 

1,000

 

 

 

 

 

 

1,000

 

Total

$

8,000

 

$

2,087

 

$

4

 

$

5,909

 

 

(1)
This credit facility matures in April 2031 in accordance with the extension exercised by the borrowers in April 2026, with the potential to be further extended by the borrowers to April 2032, and can be used by the borrowers under the credit facility to support bank borrowings and the issuance of commercial paper, as well as to support up to a combined $3.0 billion of letters of credit, for working capital and other general corporate purposes.
(2)
This credit facility, entered into in April 2026 with certain lenders, matures in April 2028, with the potential to be extended by Dominion Energy to April 2029, contains a maximum allowed total debt to total capital ratio consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility and can be used to support bank borrowings and the issuance of commercial paper.

 

In addition to the credit facilities mentioned above, Dominion Energy’s credit facilities and agreements also consist of the following:

An agreement entered into with a financial institution in March 2023, which it expects to allow it to issue up to $100 million in letters of credit. At both June 30, 2026 and December 31, 2025, $26 million in letters of credit were issued and outstanding under this agreement, respectively.
An agreement entered into with a financial institution in June 2024, subsequently amended in January 2025, which it expects to allow it to issue up to a combined $275 million in letters of credit at either Dominion Energy or Virginia Power. At June 30, 2026 and December 31, 2025, Dominion Energy had $101 and $102 million in letters of credit issued and outstanding under this agreement, including $79 and $81 million for Virginia Power, respectively.
An agreement entered into with a financial institution in January 2025, subsequently amended in January 2026, which it expects to allow it to issue up to a combined $250 million in letters of credit, with $50 million available exclusively to Dominion Energy and $200 million available exclusively to Virginia Power. At June 30, 2026 and December 31, 2025, Dominion Energy had $250 million and $150 million in letters of credit issued and outstanding under this agreement, including $200 million and $100 million for Virginia Power, respectively. In July 2026, this agreement was amended under which Dominion Energy expects to allow it to issue up to a combined $450 million in letters of credit, with $50 million available exclusively to Dominion Energy and $400 million available exclusively to Virginia Power.
An agreement entered into with a financial institution in
September 2025, subsequently amended in December 2025, which it expects to allow it to issue up to $
500 million in letters of credit with $100 million available exclusively to Dominion Energy and $400 million available exclusively to Virginia Power. At June 30, 2026 and December 31, 2025, Dominion Energy had $351 million and $379 million, respectively, in letters of credit issued and outstanding under this agreement, all of which was issued and outstanding for Virginia Power.

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM as disclosed in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. At June 30, 2026 and December 31, 2025, Dominion Energy’s Consolidated Balance Sheets include $375 million and $422 million, respectively, with respect to such notes presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

In February 2026, Dominion Energy entered into an approximately $1.3 billion 364-day term loan facility as described in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. During the six months ended June 30, 2026, Dominion Energy borrowed approximately $1.3 billion under this facility with the proceeds used to repay existing debt and for general corporate purposes. At June 30, 2026, Dominion Energy had approximately $1.3 billion outstanding under this facility presented within securities due within one year in its Consolidated Balance Sheet. In July 2026, Dominion Energy repaid $300 million borrowed under this facility.

Virginia Power

Virginia Power’s short-term financing is supported through its access as co-borrower to Dominion Energy’s $7.0 billion joint revolving credit facility.

At June 30, 2026, Virginia Power’s share of commercial paper and letters of credit outstanding under the joint revolving credit facility with Dominion Energy and DESC was as follows:

 

 

Facility
Limit

 

Outstanding
Commercial
Paper

 

Outstanding
Letters of
Credit

 

(millions)

 

 

 

 

 

 

Joint revolving credit
   facility
(1)

$

7,000

 

$

992

 

$

1

 

 

 

(1)
The full amount of the facility is available to Virginia Power, less any amounts outstanding to co-borrowers Dominion Energy and DESC. The sub-limit for Virginia Power is set pursuant to the terms of the facility but can be changed at the option of the borrowers multiple times per year. At June 30, 2026, the sub-limit for Virginia Power was $4.0 billion. If Virginia Power has liquidity needs in excess of its current sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from

 

48


 

 

Dominion Energy. This credit facility matures in April 2031 in accordance with the extension exercised by the borrowers in April 2026, with the potential to be further extended by the borrowers to April 2032, and can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $3.0 billion (or the sub-limit, whichever is less) of letters of credit, for working capital and other general corporate purposes.

In addition to the credit facility mentioned above, Virginia Power’s credit facilities and agreements also consist of the following:

An agreement entered into with a financial institution in March 2023, most recently amended in June 2026, which it expects to allow it to issue up to $450 million in letters of credit. At June 30, 2026 and December 31, 2025, $422 million and $281 million, respectively, in letters of credit were issued and outstanding under this agreement.
An agreement entered into with a financial institution in June 2024, subsequently amended in January 2025, which it expects to allow it to issue up to a combined $275 million in letters of credit at either Dominion Energy or Virginia Power. At June 30, 2026 and December 31, 2025, Virginia Power had $79 million and $81 million, out of Dominion Energy’s total $101 million and $102 million, respectively, in letters of credit issued and outstanding under this agreement.
An agreement entered into with a financial institution in January 2025, subsequently amended in January 2026, which it expects to allow Dominion Energy to issue up to a combined $250 million in letters of credit, with $50 million available exclusively to Dominion Energy and $200 million available exclusively to Virginia Power. At June 30, 2026 and December 31, 2025, Virginia Power had $200 million and $100 million, respectively, in letters of credit issued and outstanding under this agreement. In July 2026, this agreement was amended under which Virginia Power expects to allow Dominion Energy to issue up to a combined $450 million in letters of credit, with $50 million available exclusively to Dominion Energy and $400 million available exclusively to Virginia Power.
An agreement entered into with a financial institution in September 2025, subsequently amended in December 2025, which it expects to allow Dominion Energy to issue up to $500 million in letters of credit with $100 million available exclusively to Dominion Energy and $400 million available exclusively to Virginia Power. At June 30, 2026 and December 31, 2025, Virginia Power had $351 million and $379 million, respectively, in letters of credit issued and outstanding under this agreement.
Agreements entered into with financial institutions in September 2025, which it expects to allow it to issue up to $2.0 billion in letters of credit. At June 30, 2026 and December 31, 2025, Virginia Power had $1.2 billion and $1.0 billion, respectively, in letters of credit issued and outstanding under these agreements.
An agreement entered into with a financial institution in July 2026, which it expects to allow it to issue up to $250 million in letters of credit.

Long-term Debt

Unless otherwise noted, the proceeds of long-term debt issuances were used for general corporate purposes and/or to repay short-term debt.

In February 2026, Dominion Energy borrowed $500 million under the Sustainability Revolving Credit Agreement as described in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, with the proceeds used to support environmental sustainability and social investment initiatives, which was repaid in March 2026. In May 2026, Dominion Energy borrowed $500 million under this agreement with the proceeds used to support environmental sustainability and social investment initiatives. Dominion Energy repaid $300 million in June 2026. At June 30, 2026, Dominion Energy had $200 million outstanding under this facility presented within current supplemental credit facility borrowings in its Consolidated Balance Sheet which Dominion Energy repaid in July 2026. At December 31, 2025, Dominion Energy had no borrowings outstanding under this facility. In April 2026, the facility was amended to, among other things, extend the maturity date from April 2028 to April 2029, with the potential to be further extended by Dominion Energy to April 2031. There were no changes to the key financial covenants.

In March 2026, Virginia Power issued $1.3 billion of 4.95% senior notes and $850 million of 5.70% senior notes that mature in 2036 and 2056, respectively.

In June 2026, Dominion Energy issued $825 million of 5.35% senior notes that mature in 2036.

In June 2026, Dominion Energy issued $1.5 billion of junior subordinated notes, consisting of $1.0 billion of 2026 Series A JSNs and $500 million of 2026 Series B JSNs that both mature in 2056. The 2026 Series A JSNs will bear interest at 6.150% until December 15, 2031. The interest rate will reset every five years beginning December 15, 2031 to equal the then-current five-year U.S. Treasury rate plus a spread of 1.869%, provided that the interest rate will not reset below 6.150%. The 2026 Series B JSNs will bear interest at 6.250% until December 15, 2036. The interest rate will be reset every five years beginning on December 15, 2036 to equal the then-current five-year U.S. Treasury rate plus a spread of 1.702%, provided that the interest rate will not reset below 6.250%. Dominion Energy may defer interest payment on the 2026 Series A JSNs or 2026 Series B JSNs on one or more occasions for up to 10 consecutive years. If interest payments on the 2026 Series A JSNs or the 2026 Series B JSNs are deferred, Dominion Energy may not, subject to certain limited exceptions, declare or pay any dividends or other distributions on, or redeem, repurchase or otherwise acquire any of its capital stock during the deferral period. Also, during the deferral period, Dominion Energy may not make any payments on or redeem or repurchase any debt securities or make any payments under any guarantee of debt that, in each case, is equal or junior in right of payment to the 2026 Series A JSNs and the 2026 Series B JSNs.

 

49


 

 

Preferred Stock

Dominion Energy is authorized to issue up to 20 million shares of preferred stock, which may be designated into separate classes. At both June 30, 2026 and December 31, 2025, Dominion Energy had issued and outstanding 1.0 million shares of the Series C Preferred Stock.

Dominion Energy recorded dividends on the Series C Preferred Stock of $11 million ($10.875 per share) for both the three months ended June 30, 2026 and 2025 and $22 million ($21.750 per share) for both the six months ended June 30, 2026 and 2025, respectively. There have been no significant changes to Dominion Energy’s Series C Preferred Stock as described in Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Issuance of Common Stock

Dominion Energy recorded, net of fees and commissions, $38 million from the issuance of one million shares of common stock for the six months ended June 30, 2026 and $70 million from the issuance of one million shares of common stock for the six months ended June 30, 2025, through various programs, including Dominion Energy Direct® and employee savings plans as described in Note 20 to the Consolidated Financial Statements to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. In May 2026, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans.

In June 2026, Virginia Power issued 6,046 shares of its common stock to Dominion Energy for $450 million with the proceeds utilized to reduce the aggregate amount outstanding under its intercompany credit facility with Dominion Energy. Virginia Power issued the shares pursuant to a Virginia Commission order authorizing the issuance of up to $3.6 billion of common stock through the end of 2029 in order to maintain adequate credit metrics and efficient access to capital markets while funding necessary capital expenditures, as discussed in Note 13.

In June 2025, Virginia Power issued 30,006 shares of its common stock to Dominion Energy for $2.1 billion with the proceeds utilized to reduce the aggregate amount outstanding under its intercompany credit facility with Dominion Energy. Virginia Power issued the shares pursuant to a Virginia Commission order discussed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

At-the-Market Programs

May 2024 At-the-Market Program

In May 2024, Dominion Energy entered into sales agency agreements to effect sales under an existing at-the-market program. During the third quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 2.4 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $59.91 per share. Except in certain circumstances, Dominion Energy can elect physical, cash or net settlement of the forward sale agreements. There have been no significant changes regarding this at-the-market program as described in Note 20 to the Consolidated Financial Statements to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

February 2025 At-the-Market Program

In February 2025, Dominion Energy entered into sales agency agreements to effect sales under a new at-the-market program as described in Note 20 to the Consolidated Financial Statements to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. During the second quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 11.0 million shares of its common stock expected to be settled in the fourth quarter of 2026 at a weighted-average initial forward price of $55.83 per share. During the third quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 9.6 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $61.11 per share. In December 2025, Dominion Energy provided notice to elect physical settlement of approximately 5.4 million shares under these forward sales agreements, and in December 2025 settled the agreements at a weighted-average final forward price of $60.44 per share.

In October 2025, Dominion Energy increased the maximum amount of capacity available under this at-the-market program by $1.8 billion.

During the first quarter of 2026, Dominion Energy entered into forward sale agreements for approximately 3.2 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $62.96 per share. During the second quarter of 2026, Dominion Energy entered into forward sale agreements for approximately 7.9 million shares of its common stock expected to be settled by the fourth quarter of 2026 at a weighted-average initial forward price of $67.88 per share. Except in certain circumstances, Dominion Energy can elect physical, cash or net settlement of the forward sale agreements.

Repurchase of Common Stock

In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock, with $0.9 billion available at June 30, 2026.

Dominion Energy did not repurchase any shares of common stock during the six months ended June 30, 2026, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which do not count against its stock repurchase authorization.

Dividend Restrictions

As discussed in Note 1, Dominion Energy may be required to obtain the consent of NextEra Energy related to the payment of dividends in excess of $0.6675 per share each quarter. There have been no other significant changes to dividend restrictions affecting the Companies described in Note 21, to

 

50


 

 

the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

 

Note 16. 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.

Environmental Matters

The Companies are subject to costs resulting from a number of federal, state and local laws and regulations designed to protect human health and the environment. These laws and regulations affect future planning and existing operations. They can result in increased capital, operating and other costs as a result of compliance, remediation, containment and monitoring obligations.

Air

The CAA, as amended, is a comprehensive program utilizing a broad range of regulatory tools to protect and preserve the nation’s air quality. At a minimum, state-established regulatory programs are required to meet applicable requirements of the CAA. However, states may choose to develop regulatory programs that are more restrictive. Many of the Companies’ facilities are subject to the CAA’s permitting and other requirements.

Ozone Standards

The EPA published final non-attainment designations for the October 2015 ozone standards in June 2018 with states required to develop plans to address the new standard. Certain states in which the Companies operate have developed plans, and had such plans approved or partially approved by the EPA, which are not expected to have a material impact on the Companies’ results of operations or cash flows. In March 2023, the EPA issued a final rule specifying an interstate federal implementation plan to comply with certain aspects of planning for the 2015 ozone standards which was applicable in August 2023 for certain states, including Virginia. The interstate federal implementation plan imposes tighter NOX emissions limits during the ozone season and includes provisions for the use of allowances to cover such emissions. Unless and until implementation plans for the 2015 ozone standards are fully developed and approved and in effect for all states in which the Companies operate, the Companies are unable to predict whether or to what extent the new rules will ultimately require additional controls. The expenditures required to implement additional controls could have a material impact on the Companies’ results of operations, financial condition and/or cash flows.

Carbon Regulations

In August 2016, the EPA issued a draft rule proposing to reaffirm that a source’s obligation to obtain a PSD or Title V permit for GHGs is triggered only if such permitting requirements are first triggered by non-GHG, or conventional, pollutants that are regulated by the New Source Review program, and exceed a significant emissions rate of 75,000 tons per year of CO2 equivalent emissions. Until the EPA ultimately takes final action on this rulemaking, the Companies cannot predict the impact to their results of operations, financial condition and/or cash flows.

Water

The CWA, as amended, is a comprehensive program requiring a broad range of regulatory tools including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms. The Companies must comply with applicable aspects of the CWA programs at their operating facilities.

Regulation 316(b)

In October 2014, the final regulations under Section 316(b) of the CWA that govern existing facilities and new units at existing facilities that employ a cooling water intake structure and that have flow levels exceeding a minimum threshold became effective. The rule establishes a national standard for impingement based on seven compliance options, but forgoes the creation of a single technology standard for entrainment. Instead, the EPA has delegated entrainment technology decisions to state regulators. State regulators are to make

 

51


 

 

case-by-case entrainment technology determinations after an examination of five mandatory facility-specific factors, including a social cost-benefit test, and six optional facility-specific factors. The rule governs all electric generating stations with water withdrawals above two MGD, with a heightened entrainment analysis for those facilities over 125 MGD. Dominion Energy and Virginia Power currently have 14 and eight facilities, respectively, that are subject to the final regulations. Dominion Energy is also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to eight hydroelectric facilities, including three Virginia Power facilities. The Companies anticipate that they may have to install impingement control technologies at certain of these stations that have once-through cooling systems. The Companies are currently evaluating the need or potential for entrainment controls under the final rule as these decisions will be made on a case-by-case basis after a thorough review of detailed biological, technological and cost benefit studies. DESC is conducting studies and implementing plans as required by the rule to determine appropriate intake structure modifications at certain facilities to ensure compliance with this rule. While the impacts of this rule could be material to the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

Effluent Limitations Guidelines

In September 2015, the EPA released a final rule to revise the Effluent Limitations Guidelines for the Steam Electric Power Generating Category. The final rule established updated standards for wastewater discharges that apply primarily at coal and oil steam generating stations. Affected facilities are required to convert from wet to dry or closed cycle coal ash management, improve existing wastewater treatment systems and/or install new wastewater treatment technologies in order to meet the new discharge limits. In April 2017, the EPA granted two separate petitions for reconsideration of the Effluent Limitations Guidelines final rule and stayed future compliance dates in the rule. Also in April 2017, the U.S. Court of Appeals for the Fifth Circuit granted the EPA’s request for a stay of the pending consolidated litigation challenging the rule while the EPA addresses the petitions for reconsideration. In September 2017, the EPA signed a rule to postpone the earliest compliance dates for certain waste streams regulations in the Effluent Limitations Guidelines final rule from November 2018 to November 2020; however, the latest date for compliance for these regulations was December 2023. In October 2020, the EPA released the final rule that extended the latest dates for compliance with individual facilities’ compliance dates that would vary based on circumstances and the determination by state regulators and may range from 2021 to 2028. In May 2024, the EPA released a final rule revising the 2015 and 2020 Effluent Limitations Guidelines, establishing more stringent standards for wastewater discharges for the Steam Electric Power Generating Category, which apply primarily to wastewater discharges at coal and oil steam generating stations. In December 2025, the EPA released a final rule that among other things, extended the deadlines promulgated in the May 2024 final rule. Individual facilities’ compliance dates will vary based on circumstances and the determination by state regulators and may range from 2029 to 2034. Dominion Energy expects to complete wastewater treatment technology retrofits and modifications at its Williams generating station, with a similar project at its Wateree generation station under evaluation, to meet the requirements with the existing regulatory framework in South Carolina providing rate recovery mechanisms for costs of the projects. 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, 2025, the Companies recorded an increase to their AROs in connection with the expected compliance costs associated with the EPA’s May 2024 final rule concerning CCR. The Companies expect that such AROs would satisfy any AROs that would have otherwise been necessary for compliance with the EPA’s May 2024 Effluent Limitations Guidelines, as amended by the December 2025 final rule. Dominion Energy is currently unable to estimate what costs, if any, may be required in addition to the project for the Williams generating station, a potential project at the Wateree generating station and the recorded AROs to meet the requirements to operate certain facilities past 2034. However, Dominion Energy expects that while such costs for facility improvements, if required, could be material to the Companies’ financial condition and/or cash flows, the existing regulatory frameworks in Virginia and South Carolina provide rate recovery mechanisms that could substantially mitigate any such impacts.

Waste Management and Remediation

The operations of the Companies are subject to a variety of state and federal laws and regulations governing the management and disposal of solid and hazardous waste, and release of hazardous substances associated with current and/or historical operations. The CERCLA, as amended, and similar state laws, may impose joint, several and strict liability for cleanup on potentially responsible parties who owned, operated or arranged for disposal at facilities affected by a release of hazardous substances. In addition, many states have created programs to incentivize voluntary remediation of sites where historical releases of hazardous substances are identified and property owners or responsible parties decide to initiate cleanups.

From time to time, the Companies may be identified as a potentially responsible party in connection with the alleged release of hazardous substances or wastes at a site. Under applicable federal and state laws, the Companies could be responsible for costs associated with the investigation or remediation of impacted sites, or subject to contribution claims by other responsible parties for their costs incurred at such sites. The Companies also may identify, evaluate and remediate other potentially impacted sites under voluntary state programs. Remediation costs may be subject to reimbursement under the Companies’ insurance policies, rate recovery mechanisms, or both. Except as described below, the Companies do not believe these matters will have a material

 

52


 

 

effect on results of operations, financial condition and/or cash flows.

Dominion Energy has determined that it is associated with former manufactured gas plant sites, including certain sites associated with Virginia Power. At four sites associated with Dominion Energy, remediation work has been substantially completed under federal or state oversight. Where required, the sites are following state-approved groundwater monitoring programs. Dominion Energy has proposed remediation plans for one site at Virginia Power and expects to commence remediation activities in 2027 depending on receipt of final permits and approvals. At both June 30, 2026 and December 31, 2025, Dominion Energy had $53 million of reserves recorded including $48 million recorded at Virginia Power. Dominion Energy is associated with three additional sites, including two associated with Virginia Power, which are not under investigation by any state or federal environmental agency nor the subject of any current or proposed plans to perform remediation activities. Due to the uncertainty surrounding such sites, the Companies are unable to make an estimate of the potential financial statement impacts.

 

Other Legal Matters

The Companies are defendants in a number of lawsuits and claims involving unrelated incidents of property damage and personal injury. Due to the uncertainty surrounding these matters, the Companies are unable to make an estimate of the potential financial statement impacts; however, they could have a material impact on results of operations, financial condition and/or cash flows.

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. At June 30, 2026, Dominion Energy had issued the following subsidiary guarantees:

 

 

 

 

Maximum
Exposure

 

(millions)

 

 

 

Commodity transactions(1)

 

$

3,162

 

Nuclear obligations(2)

 

 

190

 

Solar(3)

 

 

85

 

Other(4)

 

 

360

 

Total(5)(6)(7)

 

$

3,797

 

 

(1)
Guarantees related to commodity commitments of certain subsidiaries. These guarantees were provided to counterparties in order to facilitate physical and financial transaction related commodities and services.
(2)
Guarantees primarily related to certain DGI subsidiaries regarding all aspects of running a nuclear facility.
(3)
Includes guarantees to facilitate the development of solar projects.
(4)
Guarantees related to other miscellaneous contractual obligations such as leases, environmental obligations, construction projects and insurance programs. Due to the uncertainty of workers’ compensation claims, the parental guarantee has no stated limit.
(5)
Excludes Dominion Energy’s performance guarantees with no stated limits associated with Dominion Privatization’s agreements to provide utility services to the U.S. government on military installations.
(6)
In December 2020, Dominion Energy signed an agreement with a lessor to complete construction of and lease a Jones Act compliant offshore wind installation vessel. In September 2025, the vessel was delivered and the five-year lease term commenced. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional term, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the outstanding project costs or (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the outstanding project costs, Dominion Energy may be required to make a payment to the lessor equal to the recorded lease balance.
(7)
In July 2016, Dominion Energy signed an agreement with a lessor to construct and lease a new corporate office property in Richmond, Virginia and commenced an initial five-year lease term in August 2019, with certain options at the end of the term to extend the lease, purchase or sell the property. In July 2024, the agreement was amended to reflect Dominion Energy’s election to extend the lease term through July 2029. At the end of the lease term, Dominion Energy can (i) extend the term of the lease for at least one year, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the project costs or (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the project costs, Dominion Energy may be required to make a payment to the lessor equal to the recorded lease balance.

In addition, Dominion Energy had issued an additional $20 million of guarantees at June 30, 2026, primarily to support third parties. No amounts related to these guarantees have been recorded.

In 2025, Dominion Energy entered into two guarantee agreements to support a portion of Valley Link’s financing obligations under a $180 million revolving credit facility and up to $120 million of letters of credit. Dominion Energy’s obligation under these guarantees is only triggered if a Valley

 

53


 

 

Link project is cancelled and Valley Link cannot pay outstanding balances related to the cancelled project. Dominion Energy’s maximum potential loss exposure under the terms of the guarantees is limited to 30% of outstanding borrowings, an equal percentage to Dominion Energy’s ownership in Valley Link. At June 30, 2026 and December 31, 2025, Valley Link had borrowed $85 million and $41 million, respectively, against the revolving credit facility and had $90 million outstanding letters of credit at both dates. No amounts related to these guarantees has been recorded at Dominion Energy.

Dominion Energy also had issued three guarantees at June 30, 2026 related to Cove Point, previously an equity method investment, in support of terminal services and transportation. Two of the Cove Point guarantees have a cumulative maximum exposure of $1.9 billion while the other one guarantee has no maximum limit. No amounts related to these guarantees have been recorded.

Additionally, at June 30, 2026, Dominion Energy had purchased $560 million of surety bonds, including $471 million at Virginia Power, and authorized the issuance of letters of credit by financial institutions, as discussed in Note 15, to facilitate commercial transactions by its subsidiaries with third parties. Under the terms of surety bonds, the Companies are obligated to indemnify the respective surety bond company for any amounts paid.

 

Note 17. Credit Risk

The Companies’ accounting policies for credit risk are discussed in Note 24 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. Virginia Power’s largest customer comprised 12% and 10% of its operating revenue for the three months ended June 30, 2026 and 2025, respectively, and 13% and 9% of its operating revenue for the six months ended June 30, 2026 and 2025, respectively, and 14% and 10% of its customer receivables at June 30, 2026 and December 31, 2025, respectively.

At June 30, 2026, Dominion Energy’s credit exposure totaled $832 million, primarily related to price risk management activities. Of this amount, investment grade counterparties, including those internally rated, represented 99%. No single counterparty, whether investment grade or non-investment grade, exceeded $450 million of exposure. At June 30, 2026, Virginia Power’s exposure related to wholesale customers totaled $15 million. Of this amount, investment grade counterparties, including those internally rated, represented 81%. No single counterparty, whether investment grade or non-investment grade, exceeded $7 million of exposure.

Credit-Related Contingent Provisions

Certain of Dominion Energy and Virginia Power’s derivative instruments contain credit-related contingent provisions. These provisions require Dominion Energy and Virginia Power to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered, Dominion Energy would have been required to post additional collateral to its counterparties of $42 million at June 30, 2026 with none related to Virginia Power, and $29 million at December 31, 2025 for Dominion Energy with none related to Virginia Power. The collateral that would be required to be posted includes the impacts of any offsetting asset positions and any amounts already posted for derivatives, non-derivative contracts and derivatives elected under the normal purchases and normal sales exception, per contractual terms. Dominion Energy and Virginia Power had no amounts of collateral posted at June 30, 2026 or December 31, 2025 related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with cash. There were no letters of credit posted as collateral at June 30, 2026 or December 31, 2025 for either Dominion Energy or Virginia Power. The aggregate fair value of all derivative instruments with credit related contingent provisions that are in a liability position and not fully collateralized with cash for Dominion Energy was $42 million at June 30, 2026 with none related to Virginia Power, and $29 million at December 31, 2025 for Dominion Energy with none related to Virginia Power, which does not include the impact of any offsetting asset positions.

See Note 8 for additional information about derivative instruments.

 

Note 18. Related-Party Transactions

Dominion Energy’s transactions with equity method investments are described in Note 9. Virginia Power engages in related-party transactions primarily with other Dominion Energy subsidiaries (affiliates). Virginia Power’s receivable and payable balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. Virginia Power is included in Dominion Energy’s consolidated federal income tax return and, where applicable, combined income tax returns for Dominion Energy are filed in various states. A discussion of Virginia Power’s significant related-party transactions follows.

Virginia Power transacts with affiliates for certain quantities of natural gas and other commodities in the ordinary course of business. Virginia Power also enters into certain commodity derivative contracts with affiliates. Virginia Power uses these contracts, which are principally comprised of forward commodity purchases, to manage commodity price risks associated with purchases of natural gas. At June 30, 2026, Virginia Power’s derivative assets and liabilities with affiliates were $11 million and $10 million, respectively. At December 31, 2025, Virginia Power’s derivative assets and liabilities with affiliates were $22 million and $12 million, respectively. See Note 8 for additional information.

Virginia Power participates in certain Dominion Energy benefit plans described in Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on

 

54


 

 

Form 10-K for the year ended December 31, 2025. At June 30, 2026 and December 31, 2025, amounts due to Dominion Energy associated with the Dominion Energy Pension Plan and included in other deferred credits and other liabilities in the Consolidated Balance Sheets were $658 million and $594 million, respectively. At June 30, 2026 and December 31, 2025, Virginia Power’s amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan and included in other deferred charges and other assets in the Consolidated Balance Sheets were $759 million and $729 million, respectively.

DES and other affiliates provide accounting, legal, finance and certain administrative and technical services to Virginia Power. In addition, Virginia Power provides certain services to affiliates, including charges for facilities and equipment usage.

The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES to Virginia Power on the basis of direct and allocated methods in accordance with Virginia Power’s services agreements with DES. Where costs incurred cannot be determined by specific identification, the costs are allocated based on the proportional level of effort devoted by DES resources that is attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable.

Presented below are Virginia Power’s significant transactions with DES and other affiliates:

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Commodity purchases from
    affiliates

 

$

134

 

 

$

147

 

 

$

813

 

 

$

513

 

Services provided by
    affiliates
(1)(2)

 

 

230

 

 

 

196

 

 

 

479

 

 

 

405

 

Services provided to affiliates

 

 

5

 

 

 

3

 

 

 

9

 

 

 

7

 

 

(1)
Includes capitalized expenditures of $87 million and $71 million for the three months ended June 30, 2026 and 2025, respectively, and $178 million and $146 million for the six months ended June 30, 2026 and 2025, respectively.
(2)
Excludes amounts related to Virginia Power's operating lease with an affiliated entity as discussed below.

Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. There were $1.4 billion and $1.2 billion in short-term demand note borrowings from Dominion Energy at June 30, 2026 and December 31, 2025, respectively. Virginia Power had no outstanding borrowings, net of repayments, under the Dominion Energy money pool for its nonregulated subsidiaries at both June 30, 2026 and December 31, 2025. Interest charges related to Virginia Power’s borrowings from Dominion Energy were $14 million and $22 million for the three months ended June 30, 2026 and 2025, respectively, and $25 million and $36 million for the six months ended June 30, 2026 and 2025, respectively.

In the second quarter of both 2026 and 2025, Virginia Power issued common stock to Dominion Energy as discussed in Note 16.

In September 2025, Virginia Power commenced a 20-month operating lease with an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel. At June 30, 2026, Virginia Power’s Consolidated Balance Sheet reflects Virginia Power’s expected use of the vessel through the end of 2027 and includes $210 million of other deferred charges and other assets for its right-of-use asset and $213 million of affiliated lease payables comprised of $140 million presented in other current liabilities and $73 million presented in other deferred credits and other liabilities. At December 31, 2025, Virginia Power’s Consolidated Balance Sheet reflects $185 million of other deferred charges and other assets for its right-of-use asset and $188 million of affiliated lease payables comprised of $141 million presented in other current liabilities and $47 million presented in other deferred credits and other liabilities. For the three and six months ended June 30, 2026, Virginia Power capitalized $36 million and $72 million, respectively, of such affiliated lease cost associated with the CVOW Commercial Project.

 

 

Note 19. Employee Benefit Plans

Net Periodic Benefit (Credit) Cost

The service cost component of net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Dominion Energy’s Consolidated Statements of Income. The non-service cost components of net periodic benefit (credit) cost are reflected in other income (expense) in Dominion Energy’s Consolidated Statements of Income. The components of Dominion Energy’s provision for net periodic benefit (credit) cost are as follows:

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

19

 

 

$

19

 

 

$

38

 

 

$

38

 

 

$

3

 

 

$

2

 

 

$

5

 

 

$

5

 

Interest cost

 

 

107

 

 

 

109

 

 

 

215

 

 

 

217

 

 

 

14

 

 

 

15

 

 

 

27

 

 

 

29

 

Expected return on plan assets

 

 

(158

)

 

 

(169

)

 

 

(317

)

 

 

(338

)

 

 

(44

)

 

 

(40

)

 

 

(87

)

 

 

(80

)

Amortization of prior service (credit) cost

 

 

1

 

 

 

 

 

 

1

 

 

 

 

 

 

(6

)

 

 

(7

)

 

 

(11

)

 

 

(13

)

Net periodic benefit (credit) cost

 

$

(31

)

 

$

(41

)

 

$

(63

)

 

$

(83

)

 

$

(33

)

 

$

(30

)

 

$

(66

)

 

$

(59

)

 

55


 

 

Employer Contributions

During the three and six months ended June 30, 2026, Dominion Energy made $5 million and $10 million, respectively, of contributions to its qualified defined benefit pension plans. Dominion Energy expects to make $24 million of minimum required contributions to its qualified defined benefit pension plans in 2026. Dominion Energy is not required to make any contributions to its VEBAs associated with its other postretirement plans in 2026. Dominion Energy considers voluntary contributions from time to time, either in the form of cash or equity securities.

 

 

Note 20. Operating Segments

The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:

 

Primary Operating Segment

 

Description of Operations

 

Dominion
Energy

 

Virginia
Power

Dominion Energy
   Virginia

 

Regulated electric distribution

 

X

 

X

 

 

Regulated electric transmission

 

X

 

X

 

 

Regulated electric generation
   fleet
(1)

 

X

 

X

Dominion Energy
   South Carolina

 

Regulated electric distribution

 

X

 

 

 

 

Regulated electric transmission

 

X

 

 

 

 

Regulated electric generation
   fleet

 

X

 

 

 

 

Regulated gas distribution
   and storage

 

X

 

 

Contracted Energy(2)

 

Nonregulated electric
   generation fleet

 

X

 

 

 

(1)
Includes Virginia Power’s non-jurisdictional solar generation operations.
(2)
Includes renewable natural gas and offshore wind installation vessel operations.

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources, including the net impact of the operations reflected as discontinued operations, which includes a noncontrolling interest in Atlantic Coast Pipeline, as discussed in Note 9 of this report as well as Note 9 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2025.

Dominion Energy’s CODM is the CEO. The Dominion Energy CODM uses net income (loss) as the primary profit or loss measure at each segment. The Dominion Energy CODM considers budget-to-actual variances on a quarterly basis when making decisions about allocating operating and capital resources to each segment, when assessing the performance of each segment and when determining the compensation of certain employees.

In the six months ended June 30, 2026, Dominion Energy reported after-tax net expenses of $760 million in the Corporate and Other segment, including $598 million of after-tax net expenses for specific items with $607 million of after-tax net expenses attributable to its operating segments. In the six months ended June 30, 2025, Dominion Energy reported after-tax net expenses of $102 million in the Corporate and Other segment, including $27 million of after-tax net expenses for specific items with $7 million of after-tax net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2026 primarily related to the impact of the following items:

A $820 million ($640 million after-tax) charge for the impairment of nonregulated renewable natural gas facilities, attributable to Contracted Energy;
$141 million ($106 million after-tax) of net unrealized losses related to economic hedging activities, attributable to Contracted Energy;
A $116 million ($86 million after-tax) loss associated with severe weather events, attributable to Dominion Energy Virginia;
A $78 million ($60 million after-tax) charge associated with certain nonregulated solar generation facilities, attributable to Contracted Energy;
$65 million ($48 million after-tax) net charges for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project, attributable to Dominion Energy Virginia; and
A $24 million ($18 million after-tax) charge for the disallowance of certain strategic undergrounding costs, attributable to Dominion Energy Virginia; partially offset by
$341 million ($221 million after-tax) of gains related to investments in nuclear decommissioning trust funds, attributable to:
Contracted Energy ($190 million after-tax); and
Dominion Energy Virginia ($31 million after-tax); and
A $195 million ($142 million after-tax) benefit related to the revision of AROs for Millstone Unit 1, attributable to Contracted Energy.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2025 primarily related to the impact of the following items:

A $106 million ($79 million after-tax) loss associated with severe weather events, attributable to Dominion Energy Virginia; and

 

56


 

 

A $48 million ($36 million after-tax) charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project, attributable to Dominion Energy Virginia; partially offset by
A $156 million ($87 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:
Contracted Energy ($74 million after-tax); and
Dominion Energy Virginia ($13 million after-tax); and
A $26 million ($19 million after-tax) net unrealized gain related to economic hedging activities, attributable to Contracted Energy.

 

The following tables present segment information pertaining to Dominion Energy’s operations:

Three Months Ended June 30,

Dominion Energy Virginia

 

 

Dominion Energy South Carolina

 

 

Contracted Energy

 

 

Corporate
and Other

 

 

Adjustments &
Eliminations

 

 

Consolidated
Total

 

(millions, unless otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from external customers

$

3,410

 

 

$

876

 

 

$

256

 

 

$

(62

)

 

$

 

 

$

4,480

 

Intersegment revenue

 

11

 

 

 

2

 

 

 

43

 

 

 

337

 

 

 

(393

)

 

 

 

Total Operating Revenue

 

3,421

 

 

 

878

 

 

 

299

 

 

 

275

 

 

 

(393

)

 

 

4,480

 

Electric fuel and other energy-related purchases(1)

 

1,077

 

 

 

220

 

 

 

28

 

 

 

(6

)

 

 

(4

)

 

 

1,315

 

Purchased electric capacity(1)

 

78

 

 

 

3

 

 

 

 

 

 

 

 

 

(1

)

 

 

80

 

Purchased gas(1)

 

 

 

 

49

 

 

 

4

 

 

 

 

 

 

 

 

 

53

 

Other operations and maintenance(1)(2)

 

609

 

 

 

169

 

 

 

201

 

 

 

1,258

 

 

 

(359

)

 

 

1,878

 

Depreciation and amortization(1)

 

417

 

 

 

153

 

 

 

40

 

 

 

17

 

 

 

(12

)

 

 

615

 

Other taxes(1)

 

99

 

 

 

83

 

 

 

16

 

 

 

15

 

 

 

(3

)

 

 

210

 

Total Operating Expenses

 

2,280

 

 

 

677

 

 

 

289

 

 

 

1,284

 

 

 

(379

)

 

 

4,151

 

Interest and related charges(1)

 

260

 

 

 

73

 

 

 

27

 

 

 

248

 

 

 

(53

)

 

 

555

 

Income tax expense (benefit)(1)

 

151

 

 

 

26

 

 

 

(21

)

 

 

(34

)

 

 

 

 

 

122

 

Equity in earnings (losses) of equity method investees(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)(3)

 

48

 

 

 

 

 

 

(4

)

 

 

588

 

 

 

11

 

 

 

643

 

Interest income(3)

 

4

 

 

 

3

 

 

 

31

 

 

 

47

 

 

 

(50

)

 

 

35

 

Net Income (Loss) From Discontinued Operations
   Including Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Noncontrolling Interests(3)

 

112

 

 

 

 

 

 

 

 

 

(123

)

 

 

 

 

 

(11

)

Net Income (Loss) Attributable to
   Dominion Energy

 

670

 

 

 

105

 

 

 

31

 

 

 

(466

)

 

 

 

 

 

340

 

Investment in equity method investees(4)

 

 

 

 

 

 

 

92

 

 

 

35

 

 

 

 

 

 

127

 

Total assets (billions)

 

86.0

 

 

 

20.3

 

 

 

11.4

 

 

 

11.2

 

 

 

(7.0

)

 

 

121.9

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from external customers

$

2,710

 

 

$

833

 

 

$

240

 

 

$

27

 

 

$

 

 

$

3,810

 

Intersegment revenue

 

2

 

 

 

3

 

 

 

5

 

 

 

292

 

 

 

(302

)

 

 

 

Total Operating Revenue

 

2,712

 

 

 

836

 

 

 

245

 

 

 

319

 

 

 

(302

)

 

 

3,810

 

Electric fuel and other energy-related purchases(1)

 

729

 

 

 

199

 

 

 

21

 

 

 

 

 

 

(3

)

 

 

946

 

Purchased electric capacity(1)

 

17

 

 

 

2

 

 

 

 

 

 

 

 

 

(1

)

 

 

18

 

Purchased gas(1)

 

 

 

 

43

 

 

 

 

 

 

 

 

 

 

 

 

43

 

Other operations and maintenance(1)(2)

 

531

 

 

 

170

 

 

 

164

 

 

 

363

 

 

 

(295

)

 

 

933

 

Depreciation and amortization(1)

 

396

 

 

 

141

 

 

 

22

 

 

 

21

 

 

 

 

 

 

580

 

Other taxes(1)

 

92

 

 

 

75

 

 

 

15

 

 

 

15

 

 

 

(3

)

 

 

194

 

Total Operating Expenses

 

1,765

 

 

 

630

 

 

 

222

 

 

 

399

 

 

 

(302

)

 

 

2,714

 

Interest and related charges(1)

 

252

 

 

 

70

 

 

 

8

 

 

 

238

 

 

 

(63

)

 

 

505

 

Income tax expense (benefit)(1)

 

110

 

 

 

29

 

 

 

1

 

 

 

80

 

 

 

 

 

 

220

 

Equity in earnings (losses) of equity method investees(3)

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

Other income (expense)(3)

 

39

 

 

 

 

 

 

(1

)

 

 

371

 

 

 

 

 

 

409

 

Interest income(3)

 

5

 

 

 

2

 

 

 

35

 

 

 

55

 

 

 

(63

)

 

 

34

 

Net Income (Loss) From Discontinued Operations
   Including Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Noncontrolling Interests(3)

 

80

 

 

 

 

 

 

 

 

 

(26

)

 

 

 

 

 

54

 

Net Income Attributable to
   Dominion Energy

 

549

 

 

 

109

 

 

 

47

 

 

 

55

 

 

 

 

 

 

760

 

(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Dominion Energy’s CODM.
(2)
Includes impairment of assets and other charges (benefits).
(3)
Items designated are other segment items for each reportable segment.
(4)
Excludes liability to Atlantic Coast Pipeline.

 

57


 

 

 

Six Months Ended June 30,

Dominion Energy Virginia

 

 

Dominion Energy South Carolina

 

 

Contracted Energy

 

 

Corporate
and Other

 

 

Adjustments &
Eliminations

 

 

Consolidated
Total

 

(millions, unless otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from external customers

$

7,178

 

 

$

1,865

 

 

$

601

 

 

$

(145

)

 

$

 

 

$

9,499

 

Intersegment revenue

 

8

 

 

 

5

 

 

 

84

 

 

 

702

 

 

 

(799

)

 

 

 

Total Operating Revenue

 

7,186

 

 

 

1,870

 

 

 

685

 

 

 

557

 

 

 

(799

)

 

 

9,499

 

Electric fuel and other energy-related purchases(1)

 

2,436

 

 

 

423

 

 

 

62

 

 

 

7

 

 

 

(7

)

 

 

2,921

 

Purchased electric capacity(1)

 

143

 

 

 

7

 

 

 

 

 

 

 

 

 

(1

)

 

 

149

 

Purchased gas(1)

 

 

 

 

188

 

 

 

8

 

 

 

 

 

 

 

 

 

196

 

Other operations and maintenance(1)(2)

 

1,257

 

 

 

347

 

 

 

362

 

 

 

1,598

 

 

 

(736

)

 

 

2,828

 

Depreciation and amortization(1)

 

838

 

 

 

302

 

 

 

88

 

 

 

42

 

 

 

(24

)

 

 

1,246

 

Other taxes(1)

 

205

 

 

 

168

 

 

 

33

 

 

 

39

 

 

 

(7

)

 

 

438

 

Total Operating Expenses

 

4,879

 

 

 

1,435

 

 

 

553

 

 

 

1,686

 

 

 

(775

)

 

 

7,778

 

Interest and related charges(1)

 

520

 

 

 

145

 

 

 

52

 

 

 

504

 

 

 

(105

)

 

 

1,116

 

Income tax expense (benefit)(1)

 

330

 

 

 

64

 

 

 

(14

)

 

 

(210

)

 

 

 

 

 

170

 

Equity in earnings (losses) of equity method investees(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)(3)

 

90

 

 

 

(1

)

 

 

(6

)

 

 

510

 

 

 

18

 

 

 

611

 

Interest income(3)

 

10

 

 

 

6

 

 

 

62

 

 

 

91

 

 

 

(99

)

 

 

70

 

Net Income (Loss) From Discontinued Operations
   Including Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Noncontrolling Interests(3)

 

217

 

 

 

 

 

 

 

 

 

(64

)

 

 

 

 

 

153

 

Net Income (Loss) Attributable to
   Dominion Energy

 

1,340

 

 

 

231

 

 

 

150

 

 

 

(760

)

 

 

 

 

 

961

 

Investment in equity method investees(4)

 

 

 

 

 

 

 

92

 

 

 

35

 

 

 

 

 

 

127

 

Capital expenditures

 

4,837

 

 

 

645

 

 

 

309

 

 

 

55

 

 

 

(39

)

 

 

5,807

 

Total assets (billions)

 

86.0

 

 

 

20.3

 

 

 

11.4

 

 

 

11.2

 

 

 

(7.0

)

 

 

121.9

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from external customers

$

5,505

 

 

$

1,782

 

 

$

544

 

 

$

55

 

 

$

 

 

$

7,886

 

Intersegment revenue

 

1

 

 

 

5

 

 

 

8

 

 

 

602

 

 

 

(616

)

 

 

 

Total Operating Revenue

 

5,506

 

 

 

1,787

 

 

 

552

 

 

 

657

 

 

 

(616

)

 

 

7,886

 

Electric fuel and other energy-related purchases(1)

 

1,498

 

 

 

366

 

 

 

50

 

 

 

 

 

 

(6

)

 

 

1,908

 

Purchased electric capacity(1)

 

24

 

 

 

4

 

 

 

 

 

 

 

 

 

(1

)

 

 

27

 

Purchased gas(1)

 

 

 

 

190

 

 

 

 

 

 

 

 

 

 

 

 

190

 

Other operations and maintenance(1)(2)

 

1,090

 

 

 

348

 

 

 

275

 

 

 

767

 

 

 

(603

)

 

 

1,877

 

Depreciation and amortization(1)

 

793

 

 

 

282

 

 

 

44

 

 

 

43

 

 

 

 

 

 

1,162

 

Other taxes(1)

 

189

 

 

 

154

 

 

 

30

 

 

 

36

 

 

 

(6

)

 

 

403

 

Total Operating Expenses

 

3,594

 

 

 

1,344

 

 

 

399

 

 

 

846

 

 

 

(616

)

 

 

5,567

 

Interest and related charges(1)

 

497

 

 

 

141

 

 

 

16

 

 

 

444

 

 

 

(112

)

 

 

986

 

Income tax expense (benefit)(1)

 

243

 

 

 

47

 

 

 

40

 

 

 

(70

)

 

 

 

 

 

260

 

Equity in earnings (losses) of equity method investees(3)

 

 

 

 

 

 

 

(1

)

 

 

(7

)

 

 

 

 

 

(8

)

Other income (expense)(3)

 

74

 

 

 

 

 

 

(8

)

 

 

320

 

 

 

 

 

 

386

 

Interest income(3)

 

12

 

 

 

6

 

 

 

68

 

 

 

100

 

 

 

(112

)

 

 

74

 

Net Income (Loss) From Discontinued Operations
   Including Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling Interests(3)

 

148

 

 

 

 

 

 

 

 

 

(48

)

 

 

 

 

 

100

 

Net Income (Loss) Attributable to
   Dominion Energy

 

1,110

 

 

 

261

 

 

 

156

 

 

 

(102

)

 

 

 

 

 

1,425

 

Capital expenditures

 

5,233

 

 

 

561

 

 

 

396

 

 

 

36

 

 

 

 

 

 

6,226

 

(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Dominion Energy’s CODM.
(2)
Includes impairment of assets and other charges (benefits).
(3)
Items designated are other segment items for each reportable segment.
(4)
Excludes liability to Atlantic Coast Pipeline.

Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation, including amounts related to entities presented within discontinued operations.

 

58


 

 

Virginia Power

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

Virginia Power’s CODM is the CEO. The Virginia Power CODM uses net income (loss) as the primary profit or loss measure at each segment. The Virginia Power CODM considers budget-to-actual variances on a quarterly basis when making decisions about allocating operating and capital resources to each segment, when assessing the performance of each segment and when determining the compensation of certain employees.

In the six months ended June 30, 2026, Virginia Power reported after-tax net expenses of $120 million in the Corporate and Other segment, including $129 million of after-tax net expenses for specific items all of which was attributable to its operating segment. In the six months ended June 30, 2025, Virginia Power reported after-tax net expenses of $90 million in the Corporate and Other segment, including $100 million of after-tax net expenses for specific items all of which was attributable to its operating segment.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2026 primarily related to the impact of the following items:

A $116 million ($86 million after-tax) loss associated with severe weather events;
$65 million ($48 million after-tax) net charges for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project; and
A $24 million ($18 million after-tax) charge for the disallowance of certain strategic undergrounding costs; partially offset by
$53 million ($31 million after-tax) of gains related to investments in nuclear decommissioning trust funds.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2025 primarily related to the impact of the following items:

A $106 million ($79 million after-tax) loss associated with severe weather events; and
A $48 million ($36 million after-tax) charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project; partially offset by
A $23 million ($13 million after-tax) gain related to investments in nuclear decommissioning trust funds.

 

59


 

 

The following tables present segment information pertaining to Virginia Power’s operations:

Three Months Ended June 30,

 

Dominion Energy Virginia

 

 

Corporate and Other

 

 

Consolidated
Total

 

(millions, unless otherwise noted)

 

 

 

 

 

 

 

 

 

2026

 

 

 

 

 

 

 

 

 

Operating Revenue

 

$

3,422

 

 

$

(1

)

 

$

3,421

 

Electric fuel and other energy-related purchases(1)

 

 

1,077

 

 

 

(6

)

 

 

1,071

 

Purchased electric capacity(1)

 

 

78

 

 

 

 

 

 

78

 

Other operations and maintenance(1)(2)

 

 

609

 

 

 

275

 

 

 

884

 

Depreciation and amortization(1)

 

 

417

 

 

 

(2

)

 

 

415

 

Other taxes(1)

 

 

99

 

 

 

(1

)

 

 

98

 

Total Operating Expenses

 

 

2,280

 

 

 

266

 

 

 

2,546

 

Interest and related charges(1)

 

 

261

 

 

 

1

 

 

 

262

 

Income tax expense (benefit)(1)

 

 

151

 

 

 

3

 

 

 

154

 

Other income (expense)(3)

 

 

48

 

 

 

76

 

 

 

124

 

Interest income(3)

 

 

4

 

 

 

(1

)

 

 

3

 

Noncontrolling Interests(3)

 

 

112

 

 

 

(123

)

 

 

(11

)

Net Income (Loss) Attributable to Virginia Power

 

 

670

 

 

 

(73

)

 

 

597

 

Total assets (billions)

 

 

84.6

 

 

 

 

 

 

84.6

 

2025

 

 

 

 

 

 

 

 

 

Operating Revenue

 

$

2,712

 

 

$

 

 

$

2,712

 

Electric fuel and other energy-related purchases(1)

 

 

729

 

 

 

 

 

 

729

 

Purchased electric capacity(1)

 

 

17

 

 

 

 

 

 

17

 

Other operations and maintenance(1)(2)

 

 

531

 

 

 

72

 

 

 

603

 

Depreciation and amortization(1)

 

 

396

 

 

 

 

 

 

396

 

Other taxes(1)

 

 

92

 

 

 

 

 

 

92

 

Total Operating Expenses

 

 

1,765

 

 

 

72

 

 

 

1,837

 

Interest and related charges(1)

 

 

252

 

 

 

(1

)

 

 

251

 

Income tax expense (benefit)(1)

 

 

110

 

 

 

5

 

 

 

115

 

Other income (expense)(3)

 

 

39

 

 

 

36

 

 

 

75

 

Interest income(3)

 

 

5

 

 

 

 

 

 

5

 

Noncontrolling Interests(3)

 

 

80

 

 

 

(26

)

 

 

54

 

Net Income (Loss) Attributable to Virginia Power

 

 

549

 

 

 

(14

)

 

 

535

 

(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Virginia Power’s CODM.
(2)
Includes impairment of assets and other charges (benefits).
(3)
Items designated are other segment items for each reportable segment.

 

 

60


 

 

Six Months Ended June 30,

 

Dominion Energy Virginia

 

 

Corporate and Other

 

 

Consolidated
Total

 

(millions, unless otherwise noted)

 

 

 

 

 

 

 

 

 

2026

 

 

 

 

 

 

 

 

 

Operating Revenue

 

$

7,187

 

 

$

(70

)

 

$

7,117

 

Electric fuel and other energy-related purchases(1)

 

 

2,436

 

 

 

7

 

 

 

2,443

 

Purchased electric capacity(1)

 

 

143

 

 

 

 

 

 

143

 

Other operations and maintenance(1)(2)

 

 

1,257

 

 

 

192

 

 

 

1,449

 

Depreciation and amortization(1)

 

 

838

 

 

 

 

 

 

838

 

Other taxes(1)

 

 

205

 

 

 

 

 

 

205

 

Total Operating Expenses

 

 

4,879

 

 

 

199

 

 

 

5,078

 

Interest and related charges(1)

 

 

521

 

 

 

 

 

 

521

 

Income tax expense (benefit)(1)

 

 

330

 

 

 

(31

)

 

 

299

 

Other income (expense)(3)

 

 

90

 

 

 

54

 

 

 

144

 

Interest income(3)

 

 

10

 

 

 

 

 

 

10

 

Noncontrolling Interests(3)

 

 

217

 

 

 

(64

)

 

 

153

 

Net Income (Loss) Attributable to Virginia Power

 

 

1,340

 

 

 

(120

)

 

 

1,220

 

Capital expenditures

 

 

4,839

 

 

 

 

 

 

4,839

 

Total assets (billions)

 

 

84.6

 

 

 

 

 

 

84.6

 

2025

 

 

 

 

 

 

 

 

 

Operating Revenue

 

$

5,506

 

 

$

(29

)

 

$

5,477

 

Electric fuel and other energy-related purchases(1)

 

 

1,498

 

 

 

 

 

 

1,498

 

Purchased electric capacity(1)

 

 

24

 

 

 

 

 

 

24

 

Other operations and maintenance(1)(2)

 

 

1,090

 

 

 

169

 

 

 

1,259

 

Depreciation and amortization(1)

 

 

793

 

 

 

1

 

 

 

794

 

Other taxes(1)

 

 

189

 

 

 

 

 

 

189

 

Total Operating Expenses

 

 

3,594

 

 

 

170

 

 

 

3,764

 

Interest and related charges(1)

 

 

497

 

 

 

(3

)

 

 

494

 

Income tax expense (benefit)(1)

 

 

243

 

 

 

(38

)

 

 

205

 

Other income (expense)(3)

 

 

74

 

 

 

20

 

 

 

94

 

Interest income(3)

 

 

12

 

 

 

 

 

 

12

 

Noncontrolling Interests(3)

 

 

148

 

 

 

(48

)

 

 

100

 

Net Income (Loss) Attributable to Virginia Power

 

 

1,110

 

 

 

(90

)

 

 

1,020

 

Capital expenditures

 

 

5,233

 

 

 

 

 

 

5,233

 

 

(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Virginia Power’s CODM.
(2)
Includes impairment of assets and other charges (benefits).
(3)
Items designated are other segment items for each reportable segment.

 

 

61


 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

MD&A discusses Dominion Energy’s results of operations, general financial condition and liquidity and Virginia Power’s results of operations. MD&A should be read in conjunction with the Companies’ Consolidated Financial Statements. Virginia Power meets the conditions to file under the reduced disclosure format, and therefore has omitted certain sections of MD&A.

Contents of MD&A

MD&A consists of the following information:

Forward-Looking Statements—Dominion Energy and Virginia Power
Accounting Matters—Dominion Energy
Results of Operations—Dominion Energy and Virginia Power
Segment Results of Operations—Dominion Energy
Outlook—Dominion Energy
Liquidity and Capital Resources—Dominion Energy
Future Issues and Other Matters—Dominion Energy

Forward-Looking Statements

This report contains statements concerning the Companies’ expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In most cases, the reader can identify these forward-looking statements by such words as “path”, “anticipate”, “believe”, “forecast”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “outlook”, “predict”, “project”, “should”, “strategy”, “continue”, “target”, “will”, “potential” or other similar words.

The Companies make forward-looking statements with full knowledge that risks and uncertainties exist that may cause actual results to differ materially from predicted results. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additionally, other factors may cause actual results to differ materially from those indicated in any forward-looking statement. These factors include but are not limited to:

Risks and uncertainties that may impact the ability of the parties to complete the proposed NextEra Energy Merger at all, or within the terms and time frames initially anticipated, including the ability to obtain the requisite approvals of Dominion Energy and NextEra Energy’s shareholders, applicable regulatory approvals and any associated terms and conditions of such approvals and any other events or changes in circumstances that could give rise to the termination of the NextEra Energy Merger Agreement by either party;
The impacts of the proposed NextEra Energy Merger, including certain covenants in the NextEra Energy Merger Agreement, and any related uncertainties and disruptions on the Companies’ business, including on the Companies’ ability to hire and retain employees and/or on the Companies’ relationships with regulators and other governmental agencies, customers, suppliers, vendors and/or other third parties;
Unusual weather conditions and their effect on energy sales to customers and energy commodity prices;
Extreme weather events and other natural disasters, including, but not limited to, hurricanes, high winds, severe storms, earthquakes, flooding, wildfires, climate changes and changes in water temperatures and availability that can cause outages and property damage to facilities;
The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in the Companies’ markets and global supply chains;
Federal, state and local legislative and regulatory developments;
Changes in or interpretations of federal and state tax laws and regulations, including those related to tax credits or other incentives;
Risks of operating businesses in regulated industries that are subject to changing regulatory structures;
Changes to regulated electric rates collected by the Companies and regulated gas distribution rates collected by Dominion Energy;
Changes in rules for RTOs and ISOs in which the Companies join and/or participate, including changes in rate designs, changes in FERC’s interpretation of market rules and new and evolving capacity models;
Risks associated with Virginia Power’s membership and participation in PJM, including risks related to obligations created by the default of other participants;
Risks associated with entities in which the Companies share ownership with third parties, such as Stonepeak’s noncontrolling interest in the CVOW Commercial Project, including risks that result from lack of sole decision-making authority, disputes that may arise between the Companies and third-party participants and difficulties in exiting these arrangements;
Timing and receipt of regulatory approvals necessary for planned construction or growth projects and compliance with conditions associated with such regulatory approvals;
The inability to complete planned construction, conversion or growth projects at all, or with the outcomes or within the terms and time frames initially anticipated, including as a result of increased public involvement, intervention or litigation in such projects;
Risks and uncertainties that may impact the Companies’ ability to construct the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers;
Risks and uncertainties associated with the timely receipt of future capital contributions, including optional capital

 

62


 

 

contributions, if any, from Stonepeak associated with the construction of the CVOW Commercial Project;
Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances;
Cost of environmental strategy and compliance, including those costs related to climate change;
Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities;
Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals;
Unplanned outages at facilities in which the Companies have an ownership interest;
The impact of operational hazards, including adverse developments with respect to plant safety or integrity, equipment loss, malfunction or failure, operator error and other catastrophic events;
Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities;
Changes in operating, maintenance or construction costs;
The availability of nuclear fuel, natural gas, purchased power or other materials utilized by the Companies to provide electric generation, transmission and distribution and/or gas distribution services to their customers;
Domestic terrorism and other threats to the Companies’ physical and intangible assets, as well as cybersecurity threats or incidents;
Additional competition in industries in which the Companies operate, including in electric markets in which Dominion Energy’s nonregulated generation facilities operate and potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies, and availability of market alternatives to large commercial and industrial customers;
Competition in the development, construction and ownership of certain electric transmission facilities in the Companies’ service territory in connection with Order 1000;
Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies;
Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods;
Risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers primarily in Loudoun County, Virginia and the ability to obtain regulatory approvals, environmental and other permits to construct new facilities in a timely manner;
The technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen and/or other clean energy technologies;
Receipt of approvals for, and timing of, closing dates for acquisitions and divestitures;
Impacts of acquisitions, divestitures, transfers of assets to joint ventures or retirements of assets based on asset portfolio reviews;
Adverse outcomes in litigation matters or regulatory proceedings;
Counterparty credit and performance risk;
Fluctuations in the value of investments held in nuclear decommissioning trusts by the Companies and in benefit plan trusts by Dominion Energy;
Fluctuations in energy-related commodity prices and the effect these could have on Dominion Energy’s earnings and the Companies’ liquidity position and the underlying value of their assets;
Fluctuations in interest rates;
Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital;
Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms;
Political and economic conditions, including tariffs, inflation and deflation;
Employee workforce factors, including collective bargaining agreements and labor negotiations with union employees; and
Changes in financial or regulatory accounting principles or policies imposed by governing bodies.

Additionally, other risks that may cause actual results to differ materially from predicted results are set forth in Part I. Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025 and Part II Item 1A. Risk Factors in this report.

The Companies’ forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Companies caution the reader not to place undue reliance on their forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. The Companies undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Accounting Matters

At June 30, 2026, there have been no significant changes with regard to the critical accounting policies and estimates disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. The policies disclosed included the accounting for regulated operations, AROs, income taxes, accounting for derivative

 

63


 

 

contracts and financial instruments at fair value, use of estimates in goodwill impairment testing, use of estimates in long-lived asset impairment testing, and employee benefit plans.

Results of OperationsDominion Energy

Presented below is a summary of Dominion Energy’s consolidated results:

 

 

 

2026

 

 

2025

 

 

$ Change

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

 

 

Net income attributable to Dominion
   Energy

 

$

340

 

 

$

760

 

 

$

(420

)

Diluted EPS

 

 

0.37

 

 

 

0.88

 

 

 

(0.51

)

Year-to-Date

 

 

 

 

 

 

 

 

 

Net income attributable to Dominion
   Energy

 

$

961

 

 

$

1,425

 

 

$

(464

)

Diluted EPS

 

 

1.07

 

 

 

1.65

 

 

 

(0.58

)

 

Overview

Second Quarter 2026 vs. 2025

Net income attributable to Dominion Energy decreased 55%, primarily due to an impairment charge associated with nonregulated renewable natural gas facilities, increased unrealized losses on economic hedging activities and higher interest on long-term debt. These decreases were partially offset by a benefit related to the revision of AROs for Millstone Unit 1, an increase in net investment earnings on nuclear decommissioning trust funds, higher rider equity returns reflecting capital investments at Virginia Power and the impacts of the 2025 Biennial Review at Virginia Power.

Year-to-Date 2026 vs. 2025

Net income attributable to Dominion Energy decreased 33%, primarily due to impairment charges associated with nonregulated renewable natural gas facilities and certain nonregulated solar generation facilities, higher interest on long-term debt and increased unrealized losses on economic hedging activities. These decreases were partially offset by a benefit related to the revision of AROs for Millstone Unit 1, an increase in net investment earnings on nuclear decommissioning trust funds, higher rider equity returns reflecting capital investments at Virginia Power and the impacts of the 2025 Biennial Review at Virginia Power.

Analysis of Consolidated Operations

Presented below are selected amounts related to Dominion Energy’s results of operations:

 

 

 

Second Quarter

 

Year-to-Date

 

 

 

2026

 

 

2025

 

 

$ Change

 

2026

 

2025

 

$ Change

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

4,480

 

 

$

3,810

 

 

$

670

 

$

9,499

 

$

7,886

 

$

1,613

 

Electric fuel and
   other
   energy-related
   purchases

 

 

1,315

 

 

 

946

 

 

 

369

 

 

2,921

 

 

1,908

 

 

1,013

 

Purchased electric
   capacity

 

 

80

 

 

 

18

 

 

 

62

 

 

149

 

 

27

 

 

122

 

Purchased gas

 

 

53

 

 

 

43

 

 

 

10

 

 

196

 

 

190

 

 

6

 

Other operations
   and maintenance

 

 

984

 

 

 

883

 

 

 

101

 

 

1,969

 

 

1,781

 

 

188

 

Depreciation and
   amortization

 

 

615

 

 

 

580

 

 

 

35

 

 

1,246

 

 

1,162

 

 

84

 

Other taxes

 

 

210

 

 

 

194

 

 

 

16

 

 

438

 

 

403

 

 

35

 

Impairment of
   assets and
   other charges

 

 

894

 

 

 

50

 

 

 

844

 

 

859

 

 

96

 

 

763

 

Other income
   (expense)

 

 

678

 

 

 

442

 

 

 

236

 

 

681

 

 

452

 

 

229

 

Interest and
   related charges

 

 

555

 

 

 

505

 

 

 

50

 

 

1,116

 

 

986

 

 

130

 

Income tax
   expense

 

 

122

 

 

 

220

 

 

 

(98

)

 

170

 

 

260

 

 

(90

)

Net income
   (loss) from
   discontinued
   operations
   including
   noncontrolling
   interests

 

 

(1

)

 

 

1

 

 

 

(2

)

 

(2

)

 

 

 

(2

)

Noncontrolling
   interests

 

 

(11

)

 

 

54

 

 

 

(65

)

 

153

 

 

100

 

 

53

 

 

An analysis of Dominion Energy’s results of operations follows:

Second Quarter 2026 vs. 2025

Operating revenue increased 18%, primarily reflecting:

A $312 million net increase in fuel-related revenue as a result of an increase in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power;
A $217 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;
A $142 million increase associated with the 2025 Biennial Review at Virginia Power;
A $33 million increase in sales to electric utility retail customers associated with economic and other usage factors;
$18 million in sales of renewable natural gas and related environmental credits; and
A $15 million increase in sales to electric utility retail customers associated with growth.

These increases were partially offset by:

A $102 million net decrease associated with market prices affecting Millstone, including economic hedging impacts

 

64


 

 

of net realized and unrealized losses on freestanding derivatives ($110 million).

Electric fuel and other energy-related purchases increased 39%, primarily due to higher commodity costs for electric utilities ($316 million) and an increase in the use of purchased renewable energy credits ($60 million), which are offset in operating revenue and do not impact net income.

Purchased electric capacity increased $62 million, primarily due to returning to PJM’s capacity market in June 2025 ($23 million) and an increase related to the 2026 annual PJM capacity market ($20 million).

Other operations and maintenance increased 11%, primarily due to renewable natural gas projects placed in service in late 2025 ($27 million), an increase in salaries, wages and benefits ($25 million) and an increase in outside services ($16 million).

Depreciation and amortization increased 6%, primarily due to various projects being placed into service ($46 million), partially offset by a decrease in amortization associated with non-fuel riders ($15 million), which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges increased $844 million, primarily due to a charge associated with nonregulated renewable natural gas facilities ($820 million), an increase in charges for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($195 million) and the disallowance of certain strategic undergrounding costs ($23 million), partially offset by a benefit related to the revision of AROs for Millstone Unit 1 ($195 million).

Other income increased 53%, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($205 million) and an increase in AFUDC associated with rate-regulated projects ($13 million).

Interest and related charges increased 10%, primarily due to net issuances of long-term debt ($93 million) and an increase in the outstanding balance on variable rate debt ($18 million), partially offset by net unrealized gains in 2026 compared to net unrealized losses in 2025 associated with freestanding derivatives ($49 million).

Income tax expense decreased 45%, primarily due to lower pre-tax income ($115 million), partially offset by higher taxes on earnings within qualified decommissioning trusts ($22 million).

Noncontrolling interests decreased $65 million, due to a decrease in earnings from the CVOW Commercial Project, including the share of increased charges for costs not expected to be recovered from customers.

Year-to-Date 2026 vs. 2025

Operating revenue increased 20%, primarily reflecting:

An $870 million net increase in fuel-related revenue as a result of an increase in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power;
A $474 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;
A $282 million increase associated with the 2025 Biennial Review at Virginia Power;
$34 million in sales of renewable natural gas and related environmental credits;
A $32 million net increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season ($42 million), partially offset by a decrease in cooling degree days during the cooling season ($10 million);
A $31 million increase in sales to electric utility retail customers associated with growth;
A $24 million increase in sales to electric utility retail customers associated with economic and other usage factors;
A $22 million increase attributable to sales at Millstone in the day-ahead energy market; and
A $19 million increase attributable to a service contract with a government entity which commenced in late 2025.

These increases were partially offset by:

A $167 million net decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($202 million); and
A $55 million decrease associated with severe weather events affecting Virginia Power.

Electric fuel and other energy-related purchases increased 53%, primarily due to higher commodity costs for electric utilities ($879 million) and an increase in the use of purchased renewable energy credits ($125 million), which are offset in operating revenue and do not impact net income.

Purchased electric capacity increased $122 million, primarily due to returning to PJM’s capacity market in June 2025 ($59 million), an increase related to the 2026 PJM capacity market ($20 million) and an increase due to the deferral of non-fuel rider costs ($17 million), which is offset in operating revenue and does not impact net income.

Other operations and maintenance increased 11%, primarily reflecting:

$57 million due to renewable natural gas projects placed in service in late 2025;
A $47 million increase in salaries, wages and benefits;
A $28 million increase in outside services;
A $21 million increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income; and
An $18 million increase in outage costs primarily at Virginia Power.

These increases were partially offset by:

A $24 million decrease in storm damage and restoration costs.

 

65


 

 

Depreciation and amortization increased 7%, primarily due to various projects being placed into service ($97 million), partially offset by a decrease in amortization associated with non-fuel riders ($18 million), which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges increased $763 million, primarily due to a charge associated with nonregulated renewable natural gas facilities ($820 million), charges associated with certain nonregulated solar generation facilities ($78 million), an increase in net charges for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($33 million) and the disallowance of certain strategic undergrounding costs ($23 million), partially offset by a benefit related to the revision of AROs for Millstone Unit 1 ($195 million).

Other income increased 51%, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($189 million), an increase in AFUDC associated with rate-regulated projects ($19 million) and an increase related to offshore wind installation vessel operations ($18 million), partially offset by a decrease in non-service components of pension and other postretirement employee benefit plan credits ($16 million).

Interest and related charges increased 13%, primarily due to net issuances of long-term debt ($189 million) and an increase in the outstanding balance on variable rate debt ($25 million), partially offset by net unrealized gains in 2026 compared to net unrealized losses in 2025 associated with freestanding derivatives ($58 million) and decreased interest expense associated with rider deferrals ($23 million), which is offset in operating revenue and does not impact net income.

Income tax expense decreased 35%, primarily due to lower pre-tax income ($119 million), partially offset by higher taxes on earnings within qualified decommissioning trusts ($21 million) and the absence of a benefit associated with the remeasurement of an uncertain tax position ($18 million).

Noncontrolling interests increased 53%, due to an increase in earnings associated with the CVOW Commercial Project, which includes the share of increased charges for costs not expected to be recovered from customers.

 

Results of OperationsVirginia Power

Presented below is a summary of Virginia Power’s consolidated results:

 

 

 

2026

 

 

2025

 

 

$ Change

 

(millions)

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

 

 

Net income attributable to Virginia
   Power

 

$

597

 

 

$

535

 

 

$

62

 

Year-to-Date

 

 

 

 

 

 

 

 

 

Net income attributable to Virginia
   Power

 

$

1,220

 

 

$

1,020

 

 

$

200

 

 

Overview

Second Quarter 2026 vs. 2025

Net income increased 12%, primarily due to higher rider equity returns reflecting capital investments and the impacts of the 2025 Biennial Review.

Year-to-Date 2026 vs. 2025

Net income increased 20%, primarily due to higher rider equity returns reflecting capital investments and the impacts of the 2025 Biennial Review.

Analysis of Consolidated Operations

Presented below are selected amounts related to Virginia Power’s results of operations:

 

 

Second Quarter

 

Year-to-Date

 

 

2026

 

2025

 

$ Change

 

2026

 

2025

 

$ Change

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

$

3,421

 

$

2,712

 

$

709

 

$

7,117

 

$

5,477

 

$

1,640

 

Electric fuel and
   other
   energy-related
   purchases

 

1,071

 

 

729

 

 

342

 

 

2,443

 

 

1,498

 

 

945

 

Purchased electric
   capacity

 

78

 

 

17

 

 

61

 

 

143

 

 

24

 

 

119

 

Other operations
   and maintenance

 

616

 

 

553

 

 

63

 

 

1,295

 

 

1,163

 

 

132

 

Depreciation and
   amortization

 

415

 

 

396

 

 

19

 

 

838

 

 

794

 

 

44

 

Other taxes

 

98

 

 

92

 

 

6

 

 

205

 

 

189

 

 

16

 

Impairment of
   assets and other
   charges
   (benefits)

 

268

 

 

50

 

 

218

 

 

154

 

 

96

 

 

58

 

Other income
   (expense)

 

127

 

 

80

 

 

47

 

 

154

 

 

106

 

 

48

 

Interest and related
   charges

 

262

 

 

251

 

 

11

 

 

521

 

 

494

 

 

27

 

Income tax expense

 

154

 

 

115

 

 

39

 

 

299

 

 

205

 

 

94

 

Noncontrolling
   interests

 

(11

)

 

54

 

 

(65

)

 

153

 

 

100

 

 

53

 

 

An analysis of Virginia Power’s results of operations follows:

Second Quarter 2026 vs. 2025

Operating revenue increased 26%, primarily reflecting:

A $291 million net increase in fuel-related revenue as a result of an increase in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges;
A $217 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;
A $142 million increase associated with the 2025 Biennial Review;
A $19 million increase in sales to electric utility retail customers associated with economic and other usage factors;
A $12 million increase in sales to electric utility retail customers associated with growth; and

 

66


 

 

An $8 million increase attributable to a service contract with a government entity which commenced in late 2025.

Electric fuel and other energy-related purchases increased 47%, primarily due to higher commodity costs for electric utilities ($295 million) and an increase in the use of purchased renewable energy credits ($60 million), which are offset in operating revenue and do not impact net income.

Purchased electric capacity increased $61 million, primarily due to returning to PJM’s capacity market in June 2025 ($23 million) and an increase related to the 2026 annual PJM capacity market ($20 million).

Other operations and maintenance increased 11%, primarily due to an increase in salaries, wages and benefits and administrative costs ($20 million) and an increase in outside services primarily attributable to a service contract with a government entity which commenced in late 2025 ($14 million), partially offset by a decrease in storm damage and restoration costs ($11 million).

Depreciation and amortization increased 5%, primarily due to various projects being placed into service ($32 million), partially offset by a decrease in amortization associated with non-fuel riders ($15 million), which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges increased $218 million, primarily due to an increase in charges for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($195 million) and the disallowance of certain strategic undergrounding costs ($23 million).

Other income increased 59%, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($35 million) and an increase in AFUDC associated with rate-regulated projects ($14 million).

Income tax expense increased 34%, primarily due to higher pre-tax income.

Noncontrolling interests decreased $65 million, due to a decrease in earnings from the CVOW Commercial Project, including the share of increased charges for costs not expected to be recovered from customers.

Year-to-Date 2026 vs. 2025

Operating revenue increased 30%, primarily reflecting:

A $814 million net increase in fuel-related revenue as a result of an increase in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges;
A $474 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;
A $282 million increase associated with the 2025 Biennial Review;
A $38 million net increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season ($43 million), partially offset by a decrease in cooling degree days during the cooling season ($5 million);
A $25 million increase in sales to electric utility retail customers associated with growth;
A $19 million increase attributable to a service contract with a government entity which commenced in late 2025; and
A $10 million increase in sales to customers from non-jurisdictional solar generation facilities.

These increases were partially offset by:

A $55 million decrease associated with severe weather events.

Electric fuel and other energy-related purchases increased 63%, primarily due to higher commodity costs for electric utilities ($823 million) and an increase in the use of purchased renewable energy credits ($125 million), which are offset in operating revenue and do not impact net income.

Purchased electric capacity increased $119 million, primarily due to returning to PJM’s capacity market in June 2025 ($59 million), an increase related to the 2026 annual PJM capacity market ($20 million), an increase due to the deferral of non-fuel rider costs ($17 million), which is offset in operating revenue and does not impact net income, and an increase related to changes in other capacity purchase contracts ($12 million).

Other operations and maintenance increased 11%, primarily due to an increase in salaries, wages and benefits and administrative costs ($65 million), an increase in outside services primarily attributable to a service contract with a government entity which commenced in late 2025 ($26 million), an increase in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income ($21 million) and an increase in outage costs ($16 million), partially offset by a decrease in storm damage and restoration costs ($24 million).

Depreciation and amortization increased 6%, primarily due to various projects being placed into service ($59 million), partially offset by a decrease in amortization associated with non-fuel riders ($18 million), which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges increased 60%, primarily due to an increase in net charges for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($33 million) and the disallowance of certain strategic undergrounding costs ($23 million).

Other income increased 45%, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($29 million) and an increase in AFUDC associated with rate-regulated projects ($20 million).

Interest and related charges increased 5%, primarily due to an increase in long-term debt borrowings ($67 million), partially offset by decreased interest expense associated with rider deferrals ($23 million), which is offset in operating revenue and does not impact net income.

 

67


 

 

Income tax expense increased 46%, primarily due to higher pre-tax income.

Noncontrolling interests increased 53%, due to an increase in earnings associated with the CVOW Commercial Project, which includes the share of increased charges for costs not expected to be recovered from customers.

 

 

Segment Results of Operations

Segment results include the impact of intersegment revenues and expenses, which may result in intersegment profit and loss. Presented below is a summary of contributions by Dominion Energy’s operating segments to net income (loss) attributable to Dominion Energy:

 

 

 

Net Income (Loss) Attributable to
Dominion Energy

 

 

EPS(1)

 

 

 

2026

 

 

2025

 

 

$ Change

 

 

2026

 

 

2025

 

 

$ Change

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy Virginia

 

$

670

 

 

$

549

 

 

$

121

 

 

$

0.76

 

 

$

0.64

 

 

$

0.12

 

Dominion Energy South Carolina

 

 

105

 

 

 

109

 

 

 

(4

)

 

 

0.12

 

 

 

0.13

 

 

 

(0.01

)

Contracted Energy

 

 

31

 

 

 

47

 

 

 

(16

)

 

 

0.03

 

 

 

0.05

 

 

 

(0.02

)

Corporate and Other

 

 

(466

)

 

 

55

 

 

 

(521

)

 

 

(0.54

)

 

 

0.06

 

 

 

(0.60

)

Consolidated

 

$

340

 

 

$

760

 

 

$

(420

)

 

$

0.37

 

 

$

0.88

 

 

$

(0.51

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy Virginia

 

$

1,340

 

 

$

1,110

 

 

$

230

 

 

$

1.53

 

 

$

1.30

 

 

$

0.23

 

Dominion Energy South Carolina

 

 

231

 

 

 

261

 

 

 

(30

)

 

 

0.26

 

 

 

0.31

 

 

 

(0.05

)

Contracted Energy

 

 

150

 

 

 

156

 

 

 

(6

)

 

 

0.17

 

 

 

0.18

 

 

 

(0.01

)

Corporate and Other

 

 

(760

)

 

 

(102

)

 

 

(658

)

 

 

(0.89

)

 

 

(0.14

)

 

 

(0.75

)

Consolidated

 

$

961

 

 

$

1,425

 

 

$

(464

)

 

$

1.07

 

 

$

1.65

 

 

$

(0.58

)

 

(1)
Consolidated results are presented on a diluted EPS basis. The dilutive impacts, primarily consisting of potential shares which had not yet been issued, are included within the results of the Corporate and Other segment. EPS contributions for Dominion Energy’s operating segments are presented utilizing basic average shares outstanding for the period.

Dominion Energy Virginia

Presented below are selected operating statistics related to Dominion Energy Virginia’s operations:

 

 

 

Second Quarter

 

 

Year-to-Date

 

 

 

 

2026

 

 

2025

 

 

% Change

 

 

2026

 

 

2025

 

 

% Change

 

 

Electricity delivered (million MWh)

 

 

24.7

 

 

 

23.7

 

 

 

4

 

%

 

51.2

 

 

 

49.1

 

 

 

4

 

%

Electricity supplied (million MWh):

Utility

 

 

24.7

 

 

 

23.7

 

 

 

4

 

 

 

51.2

 

 

 

49.1

 

 

 

4

 

 

Non-Jurisdictional

 

 

0.6

 

 

 

0.6

 

 

 

 

 

 

0.9

 

 

 

0.9

 

 

 

 

 

Degree days (electric distribution and utility service area):

 

 

Cooling

 

 

594

 

 

 

612

 

 

 

(3

)

 

 

612

 

 

 

632

 

 

 

(3

)

 

Heating

 

 

238

 

 

 

176

 

 

 

35

 

 

 

2,269

 

 

 

2,118

 

 

 

7

 

 

Average electric distribution customer accounts
   (thousands)

 

 

2,829

 

 

 

2,804

 

 

 

1

 

 

 

2,827

 

 

 

2,802

 

 

 

1

 

 

 

68


 

 

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution:

 

 

 

Second Quarter
2026 vs. 2025
Increase (Decrease)

 

 

Year-to-Date
2026 vs. 2025
Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

Weather

 

$

(3

)

 

$

 

 

$

29

 

 

$

0.03

 

Customer usage and other factors

 

 

23

 

 

 

0.03

 

 

 

25

 

 

 

0.03

 

2025 Biennial Review impacts(1)

 

 

105

 

 

 

0.12

 

 

 

210

 

 

 

0.25

 

Rider equity return

 

 

79

 

 

 

0.09

 

 

 

163

 

 

 

0.19

 

Electric capacity

 

 

(34

)

 

 

(0.04

)

 

 

(76

)

 

 

(0.09

)

Storm damage and restoration costs

 

 

(9

)

 

 

(0.01

)

 

 

(14

)

 

 

(0.02

)

Planned outage costs

 

 

(5

)

 

 

(0.01

)

 

 

(12

)

 

 

(0.01

)

Nuclear production tax credit

 

 

(15

)

 

 

(0.02

)

 

 

(31

)

 

 

(0.04

)

Depreciation and amortization

 

 

(11

)

 

 

(0.01

)

 

 

(20

)

 

 

(0.02

)

Salaries, wages and benefits & administrative costs

 

 

(14

)

 

 

(0.02

)

 

 

(48

)

 

 

(0.06

)

Interest expense, net

 

 

8

 

 

 

0.01

 

 

 

7

 

 

 

0.01

 

Other

 

 

(3

)

 

 

 

 

 

(3

)

 

 

0.01

 

Share dilution

 

 

 

 

 

(0.02

)

 

 

 

 

 

(0.05

)

Change in net income contribution

 

$

121

 

 

$

0.12

 

 

$

230

 

 

$

0.23

 

(1)
Includes the impacts of non-jurisdictional customers.

 

Dominion Energy South Carolina

Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations:

 

 

 

Second Quarter

 

 

Year-to-Date

 

 

 

 

2026

 

 

2025

 

 

% Change

 

 

2026

 

 

2025

 

 

% Change

 

 

Electricity delivered (million MWh)

 

 

5.6

 

 

 

5.5

 

 

 

2

 

%

 

10.9

 

 

 

10.8

 

 

 

1

 

%

Electricity supplied (million MWh)

 

 

5.9

 

 

 

5.8

 

 

 

2

 

 

 

11.5

 

 

 

11.3

 

 

 

2

 

 

Degree days (electric distribution service areas):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cooling

 

 

253

 

 

 

269

 

 

 

(6

)

 

 

256

 

 

 

269

 

 

 

(5

)

 

Heating

 

 

10

 

 

 

10

 

 

 

 

 

 

821

 

 

 

853

 

 

 

(4

)

 

Gas distribution throughput (bcf):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

15

 

 

 

15

 

 

 

 

 

 

38

 

 

 

37

 

 

 

3

 

 

Average distribution customer accounts (thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric

 

 

833

 

 

 

819

 

 

 

2

 

 

 

829

 

 

 

813

 

 

 

2

 

 

Gas

 

 

484

 

 

 

471

 

 

 

3

 

 

 

482

 

 

 

469

 

 

 

3

 

 

 

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution:

 

 

 

Second Quarter
2026 vs. 2025
Increase (Decrease)

 

 

Year-to-Date
2026 vs. 2025
Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

Weather

 

$

(4

)

 

$

 

 

$

(5

)

 

$

(0.01

)

Customer usage and other factors

 

 

14

 

 

 

0.02

 

 

 

23

 

 

 

0.03

 

Customer-elected rate impacts

 

 

(1

)

 

 

 

 

 

(2

)

 

 

 

Base rate case & Natural Gas Rate Stabilization Act impacts

 

 

7

 

 

 

0.01

 

 

 

13

 

 

 

0.02

 

Capital cost rider

 

 

(2

)

 

 

 

 

 

(4

)

 

 

 

Depreciation and amortization

 

 

(7

)

 

 

(0.01

)

 

 

(13

)

 

 

(0.02

)

Salaries, wages and benefits & administrative costs

 

 

(4

)

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(2

)

 

 

 

 

 

(4

)

 

 

 

Other

 

 

(5

)

 

 

(0.02

)

 

 

(38

)

 

 

(0.06

)

Share dilution

 

 

 

 

 

(0.01

)

 

 

 

 

 

(0.01

)

Change in net income contribution

 

$

(4

)

 

$

(0.01

)

 

$

(30

)

 

$

(0.05

)

 

Contracted Energy

Presented below are selected operating statistics related to Contracted Energy’s operations:

 

 

 

Second Quarter

 

 

Year-to-Date

 

 

 

 

2026

 

 

2025

 

 

% Change

 

 

2026

 

 

2025

 

 

% Change

 

 

Electricity supplied (million MWh)

 

 

4.2

 

 

 

4.0

 

 

 

5

 

%

 

9.1

 

 

 

8.9

 

 

 

2

 

%

Renewable natural gas supplied (million MMBtu)

 

 

0.5

 

 

 

 

 

N/A

 

 

 

0.9

 

 

 

 

 

N/A

 

 

 

 

69


 

 

Presented below, on an after-tax basis, are the key factors impacting Contracted Energy’s net income contribution:

 

 

 

Second Quarter
2026 vs. 2025
Increase (Decrease)

 

 

Year-to-Date
2026 vs. 2025
Increase (Decrease)

 

 

 

Amount

 

 

EPS

 

 

Amount

 

 

EPS

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

Margin

 

$

28

 

 

$

0.03

 

 

$

78

 

 

$

0.09

 

Planned Millstone outages(1)

 

 

4

 

 

 

 

 

 

4

 

 

 

 

Unplanned Millstone outages(1)

 

 

(3

)

 

 

 

 

 

(3

)

 

 

 

Depreciation and amortization

 

 

(13

)

 

 

(0.02

)

 

 

(32

)

 

 

(0.04

)

Renewable energy investment tax credits

 

 

3

 

 

 

 

 

 

10

 

 

 

0.01

 

Renewable energy production tax credits(2)

 

 

7

 

 

 

0.01

 

 

 

21

 

 

 

0.02

 

Salaries, wages and benefits & administrative costs

 

 

(2

)

 

 

 

 

 

(8

)

 

 

(0.01

)

Interest expense, net

 

 

(17

)

 

 

(0.02

)

 

 

(31

)

 

 

(0.04

)

Other

 

 

(23

)

 

 

(0.02

)

 

 

(45

)

 

 

(0.03

)

Share dilution

 

 

 

 

 

 

 

 

 

 

 

(0.01

)

Change in net income contribution

 

$

(16

)

 

$

(0.02

)

 

$

(6

)

 

$

(0.01

)

 

(1)
Includes earnings impact from outage costs and lower energy margins.
(2)
Includes an increase from renewable natural gas facilities of $6 million and $20 million for the quarter and year-to-date periods, respectively.

Corporate and Other

Presented below are the Corporate and Other segment’s after-tax results:

 

 

 

Second Quarter

 

 

Year-to-Date

 

 

 

2026

 

 

2025

 

 

$ Change

 

 

2026

 

 

2025

 

 

$ Change

 

(millions, except EPS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specific items attributable to operating segments

 

$

(379

)

 

$

125

 

 

$

(504

)

 

$

(607

)

 

$

(7

)

 

$

(600

)

Specific items attributable to Corporate and Other
   segment

 

 

7

 

 

 

(14

)

 

 

21

 

 

 

9

 

 

 

(20

)

 

 

29

 

Net income (expense) from specific items

 

 

(372

)

 

 

111

 

 

 

(483

)

 

 

(598

)

 

 

(27

)

 

 

(571

)

Corporate and other operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(165

)

 

 

(114

)

 

 

(51

)

 

 

(319

)

 

 

(223

)

 

 

(96

)

Equity method investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

5

 

Pension and other postretirement benefit plans

 

 

63

 

 

 

57

 

 

 

6

 

 

 

125

 

 

 

114

 

 

 

11

 

Corporate service company costs

 

 

(11

)

 

 

(11

)

 

 

 

 

 

(27

)

 

 

(25

)

 

 

(2

)

Other

 

 

19

 

 

 

12

 

 

 

7

 

 

 

59

 

 

 

64

 

 

 

(5

)

Net expense from corporate and other operations

 

 

(94

)

 

 

(56

)

 

 

(38

)

 

 

(162

)

 

 

(75

)

 

 

(87

)

Total net income (expense)

 

$

(466

)

 

$

55

 

 

$

(521

)

 

$

(760

)

 

$

(102

)

 

$

(658

)

EPS impact

 

$

(0.54

)

 

$

0.06

 

 

$

(0.60

)

 

$

(0.89

)

 

$

(0.14

)

 

$

(0.75

)

 

Corporate and Other includes specific items attributable to Dominion Energy’s primary operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources. See Note 20 to the Consolidated Financial Statements in this report for discussion of these items in more detail. Corporate and Other also includes items attributable to the Corporate and Other segment. For the three months ended June 30, 2026, this primarily included $21 million after-tax benefit for derivative mark-to-market changes. For the six months ended June 30, 2026, this primarily included $24 million after-tax benefit for derivative mark-to-market changes. For the three months ended June 30, 2025, this primarily included $15 million after-tax loss for derivative mark-to-market changes. For the six months ended June 30, 2025, this primarily included $20 million after-tax loss for derivative mark-to-market changes.

Outlook

At June 30, 2026, there have been no material changes to Dominion Energy’s 2026 outlook as described in Item 7. MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. See Future Issues and Other Matters for a discussion of certain items that may have an impact on Dominion Energy’s 2026 net income on a per share basis.

Liquidity and Capital Resources

Dominion Energy depends on both cash generated from operations and external sources of liquidity to provide working capital and as a bridge to long-term financings. Dominion Energy’s material cash requirements include capital and investment expenditures, repaying short-term and long-term debt obligations and paying dividends on its common and preferred stock.

 

70


 

 

Analysis of Cash Flows

Presented below are selected amounts related to Dominion Energy’s cash flows:

 

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

Cash, restricted cash and equivalents at
   January 1

 

$

343

 

 

$

365

 

Cash flows provided by (used in):

 

 

 

 

 

 

Operating activities(1)

 

 

2,457

 

 

 

2,429

 

Investing activities

 

 

(5,991

)

 

 

(6,385

)

Financing activities

 

 

3,558

 

 

 

4,004

 

Net increase in cash, restricted cash
   and equivalents

 

 

24

 

 

 

48

 

Cash, restricted cash and equivalents at
   June 30

 

$

367

 

 

$

413

 

 

(1)
Includes cash outflows of $31 million and $39 million for energy efficiency programs in Virginia for the six months ended June 30, 2026 and 2025, respectively, and $14 million and $12 million for DSM programs in South Carolina for the six months ended June 30, 2026 and 2025, respectively.

Operating Cash Flows

Net cash provided by Dominion Energy’s operating activities increased $28 million, primarily due to higher operating cash flows from electric utility operations driven by riders and impacts from the 2025 Biennial Review ($754 million), partially offset by lower deferred fuel and purchased gas cost recoveries ($251 million), an increase in interest payments primarily driven by higher borrowings ($231 million) and lower settlements of interest rate swaps ($230 million).

Investing Cash Flows

Net cash used in Dominion Energy’s investing activities decreased $394 million, primarily due to timing of payments for plant construction and other property additions.

Financing Cash Flows

Net cash from Dominion Energy's financing activities decreased $446 million, primarily due to a decrease in net issuances of short-term debt ($1.3 billion), a decrease in capital contributions from Stonepeak to OSWP, net of distributions from OSWP to Stonepeak ($416 million) and a decrease in net issuances of long-term debt ($288 million), partially offset by 364-day term loan facility borrowings ($1.3 billion) and net supplemental credit facility borrowings ($200 million).

Credit Facilities and Short-Term Debt

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, Dominion Energy generally uses proceeds from short-term borrowings, including commercial paper, to satisfy short-term cash requirements not met through cash from operations. The levels of borrowing may vary significantly during the course of the year, depending on the timing and amount of cash requirements not satisfied by cash from operations. There have been no significant changes to Dominion Energy’s use of credit facilities and/or short-term debt during the six months ended June 30, 2026.

Revolving Credit Facilities

Dominion Energy’s short-term financing is primarily supported by its joint revolving credit facility. At June 30, 2026, Dominion Energy had $5.9 billion of unused capacity under its revolving credit facilities. In April 2026, Dominion Energy’s $1.0 billion 364-day revolving credit facility matured. Subsequently, in April 2026, Dominion Energy entered into a $1.0 billion supplemental revolving credit facility which matures in April 2028. This credit facility can be used to support bank borrowings and the issuance of commercial paper. See Note 15 to the Consolidated Financial Statements in this report for the balances of commercial paper and letters of credit outstanding and for additional information on the revolving credit facilities.

Dominion Energy Reliability InvestmentSM Program

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At June 30, 2026, Dominion Energy’s Consolidated Balance Sheet included $375 million presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

Other Facilities

In addition to the primary sources of short-term liquidity discussed above, from time to time Dominion Energy enters into separate supplementary credit facilities or term loans as discussed in Note 15 to the Consolidated Financial Statements in this report. In April 2026, Dominion Energy borrowed the remaining $450 million under its approximately $1.3 billion 364-day term loan facility entered into in February 2026, with the proceeds used for general corporate purposes. In July 2026, Dominion Energy repaid $300 million borrowed under this facility.

Long-Term Debt

Sustainability Revolving Credit Agreement

Dominion Energy maintains a Sustainability Revolving Credit Agreement which is described in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. At June 30, 2026, Dominion Energy had $200 million of borrowings outstanding under this facility with the proceeds used to support environmental sustainability and social investment initiatives, which was repaid in July 2026. See Note 15 to the Consolidated Financial Statements in this report for borrowings and repayments made during the six months ended June 30, 2026.

 

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Issuances and Borrowings of Long-Term Debt

During the six months ended June 30, 2026, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds were used for the repayment of existing indebtedness and for general corporate purposes.

 

Month

Type

Public / Private

Entity

Principal

 

Rate

 

 

Stated Maturity

 

 

 

 

 

 

 

 

(millions)

 

 

 

 

 

 

 

March

Senior notes

Public

Virginia Power

$

1,300

 

 

4.950

 

%

 

2036

March

 

Senior notes

 

Public

 

Virginia Power

 

 

850

 

 

 

5.700

 

%

 

2056

June

 

Senior notes

 

Public

 

Dominion Energy

 

 

825

 

 

 

5.350

 

%

 

2036

June

 

Junior subordinated notes

 

Public

 

Dominion Energy

 

 

1,000

 

 

 

6.150

 

%

(1)

2056

June

 

Junior subordinated notes

 

Public

 

Dominion Energy

 

 

500

 

 

 

6.250

 

%

(1)

2056

Total issuances and borrowings

$

4,475

 

 

 

(1)
Rate subject to periodic reset as described in Note 15 to the Consolidated Financial Statements in this report.

Dominion Energy currently meets the definition of a well-known seasoned issuer under SEC rules governing the registration, communication and offering processes under the Securities Act of 1933, as amended. The rules provide for a streamlined shelf registration process to provide registrants with timely access to capital. This allows Dominion Energy to use automatic shelf registration statements to register any offering of securities, other than those for exchange offers or business combination transactions.

Dominion Energy anticipates, excluding potential opportunistic financings, issuing between approximately $6.0 billion and $9.5 billion of long-term debt during 2026, inclusive of amounts issued through June 30, 2026 as shown in the table above. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures, net of reimbursements from Stonepeak for the CVOW Commercial Project, and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends and any borrowings made from unused capacity of Dominion Energy’s credit facilities discussed above. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

Repayments, Repurchases and Redemptions of Long-Term Debt

Dominion Energy may from time to time reduce its outstanding debt and level of interest expense through redemption of debt securities prior to maturity or repurchases of debt securities in the open market, in privately negotiated transactions, through tender offers or otherwise.

The following long-term debt was repaid, repurchased or redeemed during the six months ended June 30, 2026:

 

Month

Type

 

Entity

Principal (1)

 

 

Rate

Stated Maturity

(millions)

 

 

 

Debt scheduled to mature in 2026

 

 

Multiple

 

$

1,398

 

 

various

Early repurchases and redemptions

 

 

 

 

 

 

 

 

 

 

 

None

 

 

 

 

 

 

 

 

 

 

 

Total repayments, repurchases and redemptions

 

 

 

 

$

1,398

 

 

 

(1)
Total amount redeemed prior to maturity, if any, includes remaining principal plus accrued interest.

 

See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding scheduled maturities of Dominion Energy’s long-term debt, including related average interest rates.

Remarketing of Long-Term Debt

During the six months ended June 30, 2026, Dominion Energy was not required to and did not complete the remarketing of any of its long-term debt. In 2026, Dominion Energy does not expect to remarket any of its tax-exempt bonds.

Credit Ratings

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, Dominion Energy’s credit ratings affect its liquidity, cost of borrowing under credit facilities and collateral posting requirements under commodity contracts, as well as the rates at which it is able to offer its debt securities. The credit ratings for Dominion Energy are affected by its financial profile, mix of regulated and nonregulated businesses and respective cash flows, changes in methodologies used by the rating agencies and event risk, if applicable, such as major acquisitions or dispositions. A credit rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. Ratings are subject to revision or withdrawal at any time by the applicable rating organization. In May 2026, Dominion Energy’s credit ratings were revised as follows: Moody’s affirmed its credit ratings and revised its outlook from negative to positive; Standard & Poor’s affirmed its credit ratings and revised its outlook from stable to positive; and Fitch affirmed its credit ratings and revised its outlook from stable to positive watch. At June 30, 2026, there have been no other changes in Dominion Energy’s credit ratings from those described in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Financial Covenants

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, Dominion Energy is subject to various covenants present in the agreements underlying Dominion Energy’s debt. At June 30, 2026, there

 

72


 

 

have been no material changes to these covenants, nor any events of default under these covenants.

As discussed in Note 15 to the Consolidated Financial Statements of this report, in April 2026, Dominion Energy entered into a new $1.0 billion credit facility, which includes a maximum allowed total debt to total capital ratio that is consistent with the allowed ratio under its joint revolving credit facility.

Common Stock, Preferred Stock and Other Equity Securities

In the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, there is a discussion of Dominion Energy’s existing equity financing programs, including Dominion Energy Direct®. In May 2026, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans. During the six months ended June 30, 2026, Dominion Energy issued $38 million of stock through these programs, net of fees and commissions.

During the third quarter of 2025, Dominion Energy entered into forward sale agreements under its May 2024 at-the-market program for approximately 2.4 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $59.91 per share.

In February 2025, Dominion Energy entered into a new at-the-market-program, and during the second quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 11.0 million shares of its common stock expected to be settled in the fourth quarter of 2026 at a weighted-average initial forward price of $55.83 per share. During the third quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 9.6 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $61.11 per share. In December 2025, Dominion Energy provided notice to elect physical settlement of approximately 5.4 million shares under these forward sales agreements, and in December 2025 settled the agreements at a weighted-average final forward price of $60.44 per share.

In October 2025, Dominion Energy increased the maximum amount of capacity available under its February 2025 at-the-market program by $1.8 billion.

During the first quarter of 2026, Dominion Energy entered into forward sale agreements under its February 2025 at-the-market program for approximately 3.2 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $62.96 per share. During the second quarter of 2026, Dominion Energy entered into forward sale agreements for approximately 7.9 million shares of its common stock expected to be settled by the fourth quarter of 2026 at a weighted-average initial forward price of $67.88 per share. See Note 15 to the Consolidated Financial Statements in this report for additional information.

Through June 30, 2026, Dominion Energy has not repurchased and does not plan to repurchase shares of common stock in 2026, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which does not impact the available capacity under its stock repurchase authorization. See Note 15 to the Consolidated Financial Statements in this report for additional information.

Capital Expenditures

At June 30, 2026, there have been no material changes to Dominion Energy’s expectation for planned capital expenditures as disclosed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Dividends

Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares. See Notes 1 and 15 to the Consolidated Financial Statements in this report for additional information regarding certain dividend restrictions under the NextEra Energy Merger Agreement and Dominion Energy’s outstanding preferred stock and associated dividend rate, respectively.

Subsidiary Dividend Restrictions

At June 30, 2026, there have been no material changes to the subsidiary dividend restrictions disclosed in the Subsidiary Dividend Restrictions section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Collateral and Credit Risk

Collateral requirements are impacted by capital projects, commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties. At June 30, 2026, there have been no material changes to the collateral requirements disclosed in the Collateral and Credit Risk section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a summary of Dominion Energy’s credit exposure at June 30, 2026 for these activities. Gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

 

 

 

Gross Credit
Exposure

 

 

Credit
Collateral

 

 

Net Credit
Exposure

 

(millions)

 

 

 

 

 

 

 

 

 

Investment grade(1)

 

$

471

 

 

$

 

 

$

471

 

Non-investment grade(2)

 

 

1

 

 

 

 

 

 

1

 

No external ratings:

 

 

 

 

 

 

 

 

 

Internally rated—investment grade(3)

 

 

362

 

 

 

10

 

 

 

352

 

Internally rated—non-investment grade(4)

 

 

11

 

 

 

3

 

 

 

8

 

Total(5)

 

$

845

 

 

$

13

 

 

$

832

 

 

(1)
Designations as investment grade are based upon minimum credit ratings assigned by Moody’s and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 56% of the total net credit exposure.
(2)
The five largest counterparty exposures, combined, for this category represented less than 1% of the total net credit exposure.

 

73


 

 

(3)
The five largest counterparty exposures, combined, for this category represented approximately 42% of the total net credit exposure.
(4)
The five largest counterparty exposures, combined, for this category represented approximately 1% of the total net credit exposure.
(5)
Excludes long-term purchase power agreements entered to satisfy legislative or state regulatory commission requirements.

Fuel and Other Purchase Commitments

There have been no material changes outside of the ordinary course of business to Dominion Energy’s fuel and other purchase commitments included in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

Other Material Cash Requirements

In addition to the financing arrangements discussed above, Dominion Energy is party to numerous contracts and arrangements obligating it to make cash payments in future years. Dominion Energy expects current liabilities to be paid within the next twelve months. In addition to the items already discussed, the following represent material expected cash requirements recorded on Dominion Energy’s Consolidated Balance Sheet at June 30, 2026. Such obligations include:

Operating and finance lease obligations – See Note 13 to the Consolidated Financial Statements in this report and Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025;
Regulatory liabilities – See Note 11 to the Consolidated Financial Statements in this report;
AROs – See Note 2 to the Consolidated Financial Statements in this report and Note 14 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025;
Employee benefit plan obligations – See Note 19 to the Consolidated Financial Statements in this report and Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025; and
High load equipment deposits – See Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.

In addition, Dominion Energy is party to contracts and arrangements which may require it to make material cash payments in future years that are not recorded on its Consolidated Balance Sheets. Such obligations include:

Guarantees – See Note 16 to the Consolidated Financial Statements in this report.

Future Issues and Other Matters

See Item 1. Business, Future Issues and Other Matters in MD&A and Notes 13 and 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, Future Issues and Other Matters in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and Notes 1, 12 and 16 to the Consolidated Financial Statements in this report for additional information on the proposed NextEra Energy Merger as well as various environmental, regulatory, legal and other matters that may impact future results of operations, financial condition and/or cash flows.

CVOW Commercial Project

In September 2019, Virginia Power filed applications with PJM for the CVOW Commercial Project and for certain approvals and rider recovery from the Virginia Commission in November 2021. Installation of the final turbines comprising the 2.6 GW project is expected to be completed by the end of 2027. The estimated total project cost is approximately $11.7 billion (excluding financing costs and including $0.1 billion of contingency) which reflects revised network upgrade costs assigned by PJM to the CVOW Commercial Project, an estimated impact of certain tariffs which became effective in April 2026 and updated turbine installation projections as well as previously included estimated impacts of a temporary suspension of work order, certain tariffs including those which became effective during 2025, the impact of the U.S. Supreme Court’s ruling in late February 2026 and tariffs which became effective in late February 2026. The Companies’ projected impact of tariffs on expected total project cost is subject to change due to the inherent uncertainty associated with which tariffs, if any, may be in effect and the associated requirements and rates of such tariffs. Virginia Power’s estimate for the project’s projected levelized cost of energy, including renewable energy credits, is approximately $83/MWh, compared to the initial filing submission of $80-90/MWh.

The expected total project cost reflects a decrease of approximately $0.4 billion, relative to both Virginia Power’s January and May 2026 construction update filings, associated with a revision to projected onshore electrical interconnection costs and network upgrade costs allocated by PJM to the CVOW Commercial Project. The expected total project cost also reflects an increase of approximately $0.4 billion, relative to both Virginia Power’s January and May 2026 construction update filings, $0.3 billion of which is associated with updated projections for turbine installations reflecting weather and other conditions with the remainder associated with other factors experienced, including increased fuel costs, during installations completed through July 2026. In addition, the expected total project cost reflects an increase of approximately $0.2 billion, relative to Virginia Power’s May 2026 construction update filing, associated with revised Section 232 tariffs enacted in April 2026 on equipment expected to be delivered from April 2026 through the end of 2027 that contains steel, aluminum and/or copper products, including the associated impact such revised tariffs had on tariffs enacted in late February 2026 on equipment expected to be delivered from February 2026 through July 2026 that originates from Mexico, Canada, a European Union member or other applicable countries. Relative to Virginia Power’s January 2026 construction update filing, the expected impact of tariffs is a net increase of approximately $0.1 billion as the increase discussed above related to April 2026 revision of Section 232 tariffs is partially offset by the reversal of approximately $0.2 billion associated with tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European

 

74


 

 

Union member or other applicable countries that were the subject of a U.S. Supreme Court’s ruling in late February 2026, and the estimated impact of new tariffs subsequently enacted in late February 2026 on equipment expected to be delivered from February 2026 through July 2026 that originates from Mexico, Canada, a European Union member or other applicable countries. The actual tariffs to be incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component.

The estimated total project cost above reflects the Companies’ best estimate of the remaining construction costs, including contingency of approximately 7% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond the Companies’ control, including but not limited to fuel for transportation and installation, the impact of applicable tariffs including any potential impact of Section 232 investigations, costs to maintain necessary permits, approvals and authorizations, any additional suspension of work orders, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife, actual network upgrade costs allocated by PJM, adverse weather and/or any severe weather events.

Virginia Power commenced major onshore construction activities for the CVOW Commercial Project in November 2023 following the receipt of a record of decision from BOEM in October 2023 for construction. Onshore construction activities to support first power delivery were completed in December 2025 with remaining project activities to support commercial operations anticipated to be completed by mid-2026. Virginia Power commenced major offshore construction activities in May 2024 following the receipt of final approval from BOEM authorizing offshore construction and necessary permits from the U.S. Army Corps of Engineers for offshore construction in January 2024. Virginia Power completed the installation of all monopiles in October 2025 and of all transition pieces in April 2026. The first of three offshore substations was installed in March 2025, with the second installed in November 2025 and the third installed in February 2026. Deepwater cables commenced being laid in late 2024 with the last of nine completed in July 2025. Of the 176 segments of interarray cable, expected to total 260 miles, 113 have been installed through July 2026 with the remaining expected to be laid throughout 2026. Installation commenced on turbines in December 2025 prior to being delayed by the temporary suspension of work order, with 31 of 176 completed through July 2026. The first turbines and associated infrastructure of the CVOW Commercial Project commenced operations in March 2026.

 

 

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ITEM 3. QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

The matters discussed in this Item may contain “forward-looking statements” as described in the introductory paragraphs under Part I., Item 2. MD&A in this report. The reader’s attention is directed to those paragraphs for discussion of various risks and uncertainties that may impact the Companies.

Market Risk Sensitive Instruments and Risk Management

The Companies’ financial instruments, commodity contracts and related financial derivative instruments are exposed to potential losses due to adverse changes in commodity prices, interest rates, foreign currency exchange rates and equity securities prices as described below. Commodity price risk is present in the Companies’ electric operations and Dominion Energy’s natural gas procurement and marketing operations due to the exposure to market shifts in prices received and paid for electricity, natural gas and other commodities. The Companies use commodity derivative contracts to manage price risk exposures for these operations. Interest rate risk is generally related to their outstanding debt and future issuances of debt. In addition, the Companies are exposed to investment price risk through various portfolios of equity and debt securities. The Companies’ exposure to foreign currency exchange rate risk is related to certain fixed price contracts associated with the CVOW Commercial Project which it manages through foreign currency exchange rate derivatives. The contracts include services denominated in currencies other than the U.S. dollar for approximately €2.6 billion and 5.1 billion kr. In addition, certain of the fixed price contracts, approximately €0.7 billion, contain commodity indexing provisions linked to steel.

The following sensitivity analyses estimate the potential loss of future earnings or fair value from market risk sensitive instruments over a selected time period due to a 10% change in commodity prices, interest rates or foreign currency exchange rates.

Commodity Price Risk

To manage price risk, the Companies hold commodity-based derivative instruments held for non-trading purposes associated with purchases and sales of electricity, natural gas and other energy-related products.

The derivatives used to manage commodity price risk are executed within established policies and procedures and may include instruments such as futures, forwards, swaps, options and FTRs that are sensitive to changes in the related commodity prices. For sensitivity analysis purposes, the hypothetical change in market prices of commodity-based derivative instruments is determined based on models that consider the market prices of commodities in future periods, the volatility of the market prices in each period, as well as the time value factors of the derivative instruments. Prices and volatility are principally determined based on observable market prices.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $108 million and $15 million in the fair value of Dominion Energy’s commodity-based derivative instruments at June 30, 2026 and December 31, 2025, respectively.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $154 million and $71 million in the fair value of Virginia Power’s commodity-based derivative instruments at June 30, 2026 and December 31, 2025, respectively.

The impact of a change in energy commodity prices on the Companies’ commodity-based derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net losses from commodity-based financial derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction, such as revenue from physical sales of the commodity.

Interest Rate Risk

The Companies manage their interest rate risk exposure predominantly by maintaining a balance of fixed and variable rate debt. For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in a $17 million and $10 million decrease in earnings at June 30, 2026 and December 31, 2025, respectively. For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in a $10 million and $7 million decrease in earnings at June 30, 2026 and December 31, 2025, respectively.

The Companies also use interest rate derivatives, including forward-starting swaps, interest rate swaps and interest rate lock agreements to manage interest rate risk. At June 30, 2026, Dominion Energy and Virginia Power had $9.4 billion and $7.4 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding in 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. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $294 million and $248 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at June 30, 2026. At December 31, 2025, Dominion Energy and Virginia Power had $10.7 billion and $8.1 billion, respectively, of these interest rate derivatives outstanding in 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. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $459 million and $382 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2025.

 

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The impact of a change in interest rates on the Companies’ interest rate-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from interest rate derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Foreign Currency Exchange Rate Risk

The Companies utilize foreign currency exchange rate swaps to economically hedge the foreign currency exchange risk associated with fixed price contracts related to the CVOW Commercial Project denominated in foreign currencies. At June 30, 2026 and December 31, 2025, Dominion Energy had €0.1 billion and €0.9 billion in aggregate notional amounts of these foreign currency forward purchase agreements outstanding, respectively. A hypothetical 10% increase in the U.S. dollar to Euro exchange rate would have resulted in a decrease of $14 million and $35 million in the fair value of Dominion Energy’s foreign currency swaps at June 30, 2026 and December 31, 2025, respectively.

The impact of a change in exchange rates on the Companies’ foreign currency-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from foreign exchange derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Investment Price Risk

The Companies are subject to investment price risk due to securities held as investments in nuclear decommissioning and rabbi trust funds that are managed by third-party investment managers. These trust funds primarily hold marketable securities that are reported in the Companies’ Consolidated Balance Sheets at fair value.

Dominion Energy recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $747 million, $364 million and $1.1 billion for the six months ended June 30, 2026 and 2025 and the year ended December 31, 2025, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Dominion Energy recorded in AOCI and regulatory liabilities, a net increase in unrealized (losses) gains on debt investments of $— million, $29 million and $41 million for the six months ended June 30, 2026 and 2025 and the year ended December 31, 2025, respectively.

Virginia Power recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $408 million, $189 million and $555 million for the six months ended June 30, 2026 and 2025 and the year ended December 31, 2025, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Virginia Power recorded in AOCI and regulatory liabilities, a net increase in unrealized gains (losses) on debt investments of $1 million, $7 million and $23 million for the six months ended June 30, 2026 and 2025 and the year ended December 31, 2025, respectively.

Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power employees participate in these plans. Differences between actual and expected returns on plan assets are immediately recognized in earnings annually in the fourth quarter of each fiscal year as well as whenever a plan is determined to qualify for a remeasurement. A hypothetical 0.25% decrease in the expected long-term rate of return on plan assets would have a $27 million impact for the year ending December 31, 2026, and would have had a $28 million impact for the year ended December 31, 2025, to the expected returns on plan assets, respectively.

ITEM 4. CONTROLS AND PROCEDURES

Senior management of both Dominion Energy and Virginia Power, including Dominion Energy and Virginia Power’s CEO and CFO, evaluated the effectiveness of each company’s disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation process, each of Dominion Energy and Virginia Power’s CEO and CFO have concluded that each company’s disclosure controls and procedures are effective.

There were no changes that occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, Dominion Energy or Virginia Power’s internal control over financial reporting.

 

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PART II. OTHER INFORMATION

From time to time, the Companies are parties to various legal, environmental or other regulatory proceedings, including in the ordinary course of business. SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Companies reasonably believe will exceed a specified threshold. Pursuant to the SEC regulations, the Companies use a threshold of $1 million for such proceedings.

See the following for discussions on various legal, environmental and other regulatory proceedings to which the Companies are a party, which information is incorporated herein by reference:

Notes 13 and 23 to the Consolidated Financial Statements and Future Issues and Other Matters in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025.
Notes 12 and 16 to the Consolidated Financial Statements and Future Issues and Other Matters in MD&A in this report.

ITEM 1A. RISK FACTORS

The Companies’ businesses are influenced by many factors that are difficult to predict, involve risks and uncertainties that may materially affect actual results and are often beyond their control. A number of these risks and uncertainties have been identified in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025, which should be taken into consideration when reviewing the information contained in this report. Other than the risk factors discussed below, there have been no material changes with regard to the risk factors previously disclosed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2025. For other factors that may cause actual results to differ materially from those indicated in any forward-looking statement or projection contained in this report, see Forward-Looking Statements in MD&A in this report.

Merger Risks

The completion of the NextEra Energy Merger is subject to the receipt of consents, approvals and/or findings from governmental entities, which may impose conditions that could have an adverse effect on NextEra Energy or the Companies or could cause either NextEra Energy or Dominion Energy to abandon the NextEra Energy Merger. NextEra Energy and Dominion Energy are not required to and cannot complete the NextEra Energy Merger until after the applicable waiting period under the HSR expires or terminates and the requisite authorizations, approvals, consents and/or permits are received from the FERC, NRC, Virginia Commission, North Carolina Commission and South Carolina Commission. Any of the relevant governmental entities may oppose the NextEra Energy Merger, fail to approve the NextEra Energy Merger, fail to make required findings in favor of the NextEra Energy Merger, or impose certain requirements or obligations as conditions for their consent, approval or findings or in connection with their review. Regulatory approvals of the NextEra Energy Merger or findings with respect to the NextEra Energy Merger may not be obtained on a timely basis or at all, and such approvals or findings may include conditions that could have an adverse effect on NextEra Energy and/or the Companies, and/or result in the abandonment of the NextEra Energy Merger. No assurance can be given that the parties will obtain the necessary approvals or findings or that any required conditions will not have an adverse effect on NextEra Energy following the NextEra Energy Merger.

Subject to the terms and conditions set forth in the NextEra Energy Merger Agreement, the NextEra Energy Merger Agreement may require NextEra Energy to accept conditions from regulators that could adversely impact NextEra Energy after the NextEra Energy Merger without either of NextEra Energy or Dominion Energy having the right to refuse to close the NextEra Energy Merger on the basis of those regulatory conditions, except that NextEra Energy is generally not required, and Dominion Energy is generally not required to and not permitted to, without NextEra Energy’s prior written consent, take any action or accept any condition that constitutes a “burdensome condition” (as defined in the NextEra Energy Merger Agreement).

No assurance can be provided that these risks will not materialize and either adversely impact the Companies prior to or NextEra Energy after the completion of the NextEra Energy Merger or result in the abandonment of the NextEra Energy Merger and adversely impact the results of operations, cash flows and financial condition of the Companies if the required authorizations, approvals, consents and/or permits are not obtained or received.

The obligations of each of NextEra Energy and Dominion Energy to complete the NextEra Energy Merger are subject to a number of conditions, which, if not fulfilled, or not fulfilled in a timely manner, may delay closing or result in termination of the NextEra Energy Merger Agreement. Completion of the NextEra Energy Merger is contingent upon the satisfaction or waiver of various closing conditions, including (i) approval of the NextEra Energy Merger Agreement and the plan of merger relating to the First NextEra Energy Merger by the holders of a majority of the outstanding shares of Dominion Energy common stock entitled to vote thereon, (ii) approval of the issuance of the shares of NextEra Energy common stock to be issued in the NextEra Energy Merger by the holders of a majority of the votes cast by the holders of the outstanding shares of NextEra Energy common stock entitled to vote thereon in accordance with the rules and regulations of the NYSE, (iii) the expiration or termination of any applicable waiting period under the HSR, (iv) receipt of specified consents of the FERC, NRC, Virginia Commission, North Carolina Commission and South Carolina Commission, in each case, without the imposition, individually or in the aggregate, of a “burdensome condition” (as defined in the NextEra Energy Merger Agreement), (v) the absence of legal restraints prohibiting the First NextEra

 

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Energy Merger, (vi) approval for listing on the NYSE of the shares of NextEra Energy common stock to be issued in the First NextEra Energy Merger, (vii) the continued effectiveness of the registration statement on Form S-4 filed by NextEra Energy in connection with the NextEra Energy Merger, (viii) the accuracy of each party’s representations and warranties (subject to certain materiality and knowledge qualifiers) and compliance by each party with its covenants under the NextEra Energy Merger Agreement in all material respects and (ix) the absence of a material adverse effect with respect to either Dominion Energy or NextEra Energy.

Many of the conditions to closing of the NextEra Energy Merger are not within either NextEra Energy’s or Dominion Energy’s control, and Dominion Energy cannot predict when, or if, these conditions will be satisfied. If any of these conditions are not satisfied or waived prior to the outside date specified in the NextEra Energy Merger Agreement, it is possible that the NextEra Energy Merger Agreement may be terminated. Although NextEra Energy and Dominion Energy have agreed in the NextEra Energy Merger Agreement to use reasonable best efforts, subject to certain limitations, to consummate the NextEra Energy Merger, these and other conditions to the closing of the NextEra Energy Merger may fail to be satisfied. In addition, satisfying the conditions to and completing the First NextEra Energy Merger may take longer and could cost more than NextEra Energy and Dominion Energy expect. Furthermore, the requirements for obtaining the required clearances and approvals could delay the closing of the NextEra Energy Merger for a significant period of time or prevent the NextEra Energy Merger from closing at all. Any delay in completing the NextEra Energy merger may adversely affect the benefits that NextEra Energy and Dominion Energy expect to achieve if the NextEra Energy Merger and the integration of the companies’ respective businesses are completed within the expected timeframe. There can be no assurance that all required regulatory approvals will be obtained prior to the termination date under the NextEra Energy Merger Agreement.

Uncertainties associated with the NextEra Energy Merger may cause a loss of management personnel and other key employees of NextEra Energy or the Companies, which could adversely affect the Companies or the future business and operations of the combined company. NextEra Energy and the Companies are dependent on the experience and industry knowledge of their officers and other key employees to execute their business plans. The combined company’s success after the NextEra Energy Merger will depend in part upon its ability to retain key management personnel and other key employees. Current and prospective employees of NextEra Energy or the Companies may experience uncertainty about their roles within the combined company following the NextEra Energy Merger or other concerns regarding the timing and closing of the NextEra Energy Merger or the operations of the combined company following the NextEra Energy Merger, any of which may have an adverse effect on the ability of NextEra Energy or the Companies to retain or attract key management and other key personnel. In addition, the loss of key personnel of NextEra Energy or the Companies could diminish the anticipated benefits of the NextEra Energy Merger and may make the integration of the companies more difficult. Furthermore, the combined company may have to incur significant costs in identifying, hiring and retaining replacements for departing personnel and may lose significant expertise and talent relating to the business of each of NextEra Energy and the Companies. No assurance can be given that the combined company will be able to retain or attract key management personnel and other key employees of NextEra Energy or the Companies to the same extent that NextEra Energy and the Companies have previously been able to retain or attract their own employees.

The business relationships of NextEra Energy and the Companies may be subject to disruption due to uncertainty associated with the NextEra Energy Merger, which could have a material adverse effect on the results of operations, cash flows and financial position of the Companies pending the NextEra Energy Merger and of the combined company following the NextEra Energy Merger. Parties with which NextEra Energy or the Companies do business may experience uncertainty associated with the NextEra Energy Merger, including with respect to current or future business relationships with NextEra Energy or the Companies. The business relationships of the Companies and NextEra Energy may be subject to disruption as customers, distributors, suppliers, vendors, joint venture partners and other business partners may attempt to delay or defer entering into new business relationships, negotiate changes in existing business relationships or consider entering into business relationships with parties other than NextEra Energy or the Companies prior to or following the NextEra Energy Merger. These disruptions could have a material adverse effect on the results of operations, cash flows and financial position of the Companies, regardless of whether the NextEra Energy Merger is completed, as well as a material adverse effect on the combined company’s ability to realize the expected benefits of the NextEra Energy Merger. The risk, and adverse effect, of any disruption could be exacerbated by a delay in closing of the NextEra Energy Merger or termination of the NextEra Energy Merger Agreement.

The NextEra Energy Merger Agreement subjects the Companies to restrictions on their respective business activities prior to closing of the NextEra Energy Merger. The NextEra Energy Merger Agreement subjects the Companies to restrictions on their respective business activities prior to closing of the NextEra Energy Merger. The NextEra Energy Merger Agreement obligates the Companies to each, among other things, carry on its business in all material respects in the ordinary course of business consistent with past practice and use commercially reasonable efforts to preserve intact its business organization, maintain adequate and comparable insurance coverage, preserve its relationships with its employees, counterparties, customers and suppliers and governmental entities with jurisdiction over it. The NextEra Energy Merger Agreement also restricts the Companies from taking certain corporate actions pending the closing date. These restrictions could prevent the Companies

 

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from pursuing certain business opportunities that arise prior to the effective time and are outside the ordinary course of business.

The NextEra Energy Merger Agreement limits Dominion Energy’s ability to pursue alternatives to the NextEra Energy Merger, may discourage other companies from making a favorable alternative transaction proposal and, in specified circumstances, could require Dominion Energy to pay a termination fee. The NextEra Energy Merger Agreement contains provisions that, subject to certain exceptions, restrict Dominion Energy’s ability to initiate, solicit, knowingly encourage, facilitate or discuss competing third-party proposals to acquire all or a significant part of Dominion Energy, or provide information to a third party that could reasonably be expected to lead to such a proposal. In addition, NextEra Energy generally has an opportunity to offer to modify the terms of the NextEra Energy Merger in response to any superior acquisition proposal that may be made before the Dominion Energy board of directors is permitted to withdraw or qualify its recommendation that holders of Dominion Energy common stock vote to approve the proposals relating to the NextEra Energy Merger. In some circumstances on termination of the NextEra Energy Merger Agreement, Dominion Energy may be required to pay a termination fee.

These provisions could discourage a potential competing acquirer that might have an interest in acquiring all or a significant part of Dominion Energy from considering or proposing such acquisition, even if it were prepared to pay consideration with a higher per share cash or market value than the consideration payable in connection with the NextEra Energy Merger, or might result in a potential competing acquirer proposing to pay a lower price than it might otherwise have proposed to pay because of the added expense of the termination fee that may become payable by Dominion Energy in certain circumstances.

Failure to complete the NextEra Energy Merger could negatively impact Dominion Energy’s stock price and have a material adverse effect on the Companies’ results of operations, cash flows and financial positions. If the NextEra Energy Merger is not completed for any reason, including as a result of failure to obtain all requisite regulatory approvals or if the NextEra Energy shareholders or applicable Dominion Energy shareholders fail to approve the applicable proposals, the ongoing businesses of the Companies may be materially adversely affected and, without realizing any of the benefits of having completed the NextEra Energy Merger, the Companies would be subject to a number of risks, including the following:

the Companies may experience negative reactions from the financial markets, including, in the case of Dominion Energy, negative impacts on its stock price, adverse changes in their credit ratings or outlook, increases in their costs of borrowing or limitations on their ability to access the short- or long-term debt markets;
the Companies may experience negative reactions from regulators or other governmental agencies or government officials;
the Companies may experience negative reactions from their respective customers, distributors, suppliers, vendors, joint venture partners and other business partners;
Dominion Energy will still be required to pay certain significant costs relating to the NextEra Energy Merger, such as legal, accounting, consulting, financial advisor and printing fees;
Dominion Energy may be required to pay a termination fee as required by the NextEra Energy Merger Agreement;
matters relating to the NextEra Energy Merger (including integration planning) require substantial commitments of time and resources by management, which may distract management from ongoing business operations and pursuing other opportunities that could have been beneficial to the Companies; and
litigation may be commenced related to any failure to complete the NextEra Energy Merger or related to any enforcement proceeding commenced against Dominion Energy to perform its obligations pursuant to the NextEra Energy Merger Agreement.

If the NextEra Energy Merger is not completed, the risks described above may materialize and they could have a material adverse effect on the Companies’ results of operations, cash flows, financial position and, in the case of Dominion Energy, its stock price.

Dominion Energy is expected to incur significant transaction costs in connection with the NextEra Energy Merger, which may be in excess of those anticipated. Dominion Energy has incurred and is expected to continue to incur significant non-recurring costs associated with negotiating and completing the NextEra Energy Merger. These costs have been, and will continue to be, substantial and, in many cases, will be borne by Dominion Energy whether or not the NextEra Energy Merger is completed. A substantial majority of non-recurring expenses will consist of transaction costs and include, among others, fees paid to financial, legal, accounting and other advisors, employee retention, severance and benefit costs and filing fees. Additional unanticipated costs may be incurred in connection with the NextEra Energy Merger. While Dominion Energy has assumed that a certain level of expenses would be incurred, there are many factors beyond its control that could affect the total amount or the timing of the expenses.

Further, the NextEra Energy Merger Agreement provides that under specified circumstances, including after receipt of certain alternative acquisition proposals, Dominion Energy may be required to pay NextEra Energy a cash termination fee equal to $2.24 billion. The costs described above and any unanticipated costs and expenses, many of which will be borne by Dominion Energy even if the NextEra Energy Merger is not completed, could have an adverse effect on Dominion Energy’s results of operations and financial condition.

Litigation relating to the NextEra Energy Merger could result in an injunction preventing the closing of the NextEra Energy Merger and/or substantial costs to

 

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Dominion Energy. Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into acquisition, merger, or other business combination agreements. Even if such a lawsuit is without merit, defending against these claims can result in substantial costs and divert management time and resources. An adverse judgment could result in monetary damages, which could have a negative impact on Dominion Energy’s liquidity and financial condition.

Lawsuits against NextEra Energy, Dominion Energy or their respective directors could also seek, among other things, injunctive or other equitable relief, including a request to rescind parts of the NextEra Energy Merger Agreement already implemented and to otherwise enjoin the parties from consummating the NextEra Energy Merger. One of the conditions to the closing is that no law or governmental order is in effect that restrains, enjoins, makes illegal or otherwise prohibits the closing of the NextEra Energy Merger. Consequently, if a plaintiff is successful in obtaining an injunction prohibiting closing, that injunction may delay or prevent the NextEra Energy Merger from being completed within the expected timeframe or at all, which may adversely affect Dominion Energy’s financial condition and operating results. Either NextEra Energy or Dominion Energy may terminate the NextEra Energy Merger Agreement if any governmental order permanently restraining, enjoining or otherwise prohibiting the consummation of the NextEra Energy Merger and the other transactions contemplated by the NextEra Energy Merger Agreement becomes final and nonappealable, so long as the party seeking to terminate the NextEra Energy Merger Agreement has used its reasonable best efforts to prevent the entry of and to remove such governmental order in accordance with the terms of the NextEra Energy Merger Agreement.

There can be no assurance that any of the defendants will be successful in the outcome of any potential future lawsuits. The defense or settlement of any lawsuit or claim that remains unresolved at the time the NextEra Energy Merger is completed may adversely affect the combined company’s results of operations and financial condition.

NextEra Energy may be unable to integrate the business of Dominion Energy (including Virginia Power) successfully or realize the anticipated benefits of the NextEra Energy Merger. The NextEra Energy Merger involves the combination of companies that currently operate as independent public companies. The combination of independent businesses is complex, costly and time consuming, and each of NextEra Energy and Dominion Energy (including Virginia Power) will be required to devote significant management attention and resources to integrating their respective businesses. Potential difficulties that the companies may encounter as part of the integration process include:

the inability to successfully combine the businesses of Dominion Energy (including Virginia Power) with NextEra Energy in a manner that permits NextEra Energy to achieve, on a timely basis or at all, the benefits anticipated to result from the NextEra Energy Merger;
complexities associated with managing the combined businesses, including difficulties addressing differences in operational philosophies and challenges integrating complex systems, technology, networks and other assets of each of the companies in a seamless manner that minimizes any adverse impact on customers, suppliers, employees and other constituencies;
the assumption of contractual obligations with less favorable or more restrictive terms; and
potential unknown liabilities and unforeseen increased expenses or delays associated with the NextEra Energy Merger.

In addition, NextEra Energy and Dominion Energy (including Virginia Power) have previously operated and, until the closing, will continue to operate, independently. It is possible that the integration process could result in:

diversion of the attention of each company’s management; and
the disruption of, or the loss of momentum in, each company’s ongoing businesses or inconsistencies in standards, controls, procedures and policies.

Any of these issues could adversely affect each company’s ability to maintain relationships with customers, suppliers, employees and other constituencies or achieve the anticipated benefits of the NextEra Energy Merger and could reduce each company’s earnings or otherwise adversely affect the business and financial results of NextEra Energy following the NextEra Energy Merger.

The benefits attributable to the NextEra Energy Merger may vary from expectations. NextEra Energy may fail to realize the anticipated benefits expected from the NextEra Energy Merger, which could adversely affect its business, financial condition and operating results. The success of the NextEra Energy Merger will depend, in significant part, on NextEra Energy’s ability to successfully integrate the Companies’ business and realize the anticipated strategic benefits from the combination. The anticipated benefits of the NextEra Energy Merger and the other transactions contemplated by the NextEra Energy Merger Agreement may not be realized fully or at all, or may take longer to realize than expected. Actual operating, technological, strategic and other benefits, if achieved at all, may be less significant than expected or may take longer to achieve than anticipated. If the combined company is not able to achieve these objectives and realize the anticipated benefits expected from the NextEra Energy Merger within the anticipated timing or at all, the combined company’s business, results of operations and financial condition may be adversely affected.

The NextEra Energy Merger may result in a loss of customers, distributors, suppliers, vendors, joint venture partners and other business partners and may result in the modification or termination of existing contracts. Following the NextEra Energy Merger, some of the customers, distributors, suppliers, vendors, joint venture partners and other business partners of NextEra Energy or the Companies may modify, terminate or scale back their current or prospective business relationships with the combined

 

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company. In addition, NextEra Energy and the Companies have contracts with customers, distributors, suppliers, vendors, joint venture partners and other business partners that may require NextEra Energy or the Companies to obtain consents from these other parties in connection with the NextEra Energy Merger, which may not be obtained on favorable terms or at all. If relationships with customers, distributors, suppliers, vendors, joint venture partners and other business partners are adversely affected by the NextEra Energy Merger, or if the combined company loses the benefits of the contracts of NextEra Energy or the Companies, the combined company’s business and financial performance could suffer.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Dominion Energy

Purchases of Equity Securities

 

Period

 

Total Number of
Shares (or Units)
Purchased
(1)

 

 

Average
Price Paid
per Share
(or Unit)
(2)

 

 

Total Number
of Shares (or
Units) Purchased as Part of
Publicly Announced Plans
or Programs

 

 

Maximum Number (or
Approximate Dollar Value)
 of Shares (or Units) that
May Yet Be Purchased under
the Plans or Programs
(3)

4/1/26 - 4/30/26

 

 

604

 

 

$

62.05

 

 

 

 

 

$

0.92 billion

5/1/26 - 5/31/26

 

 

1,494

 

 

 

63.94

 

 

 

 

 

 

0.92 billion

6/1/26 - 6/30/26

 

 

132

 

 

 

64.61

 

 

 

 

 

 

0.92 billion

Total

 

 

2,230

 

 

$

63.47

 

 

 

 

 

$

0.92 billion

 

(1)
Represents shares of common stock that were tendered by employees to satisfy tax withholding obligations on vested restricted stock.
(2)
Represents the weighted-average price paid per share.
(3)
In November 2020, the Dominion Energy Board of Directors authorized the repurchase of up to $1.0 billion of shares of common stock. This repurchase program has no expiration date or price or volume targets and may be modified, suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors.

ITEM 5. OTHER INFORMATION

During the last fiscal quarter, none of the Companies’ directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

 

82


 

 

ITEM 6. EXHIBITS

 

Exhibit

Number

Description

Dominion Energy

Virginia Power

 

 

 

 

 

 

 

2.1

 

Agreement and Plan of Merger, dated as of May 15, 2026, by and among NextEra Energy, Inc., WG Development Corp., CS Holdco, LLC and Dominion Energy, Inc. (Exhibit 2.1, Form 8-K filed May 18, 2026, File No. 1-8489).

 

X

 

 

 

 

 

 

 

 

 

3.1.a

Dominion Energy, Inc. Amended and Restated Articles of Incorporation, dated as of December 17, 2024 (Exhibit 3.1, Form 8-K filed December 17, 2024, File No.1-8489).

X

3.1.b

Virginia Electric and Power Company Amended and Restated Articles of Incorporation, as in effect on October 30, 2014 (Exhibit 3.1.b, Form 10-Q filed November 3, 2014, File No. 1-2255).

X

3.2.a

Dominion Energy, Inc. Bylaws, as amended and restated, effective June 26, 2025 (Exhibit 3.1, Form 8-K filed June 27, 2025, File No. 1-8489).

X

3.2.b

Virginia Electric and Power Company Amended and Restated Bylaws, effective June 1, 2009 (Exhibit 3.1, Form 8-K filed June 3, 2009, File No. 1-2255).

X

4

Dominion Energy, Inc. and Virginia Electric and Power Company agree to furnish to the Securities and Exchange Commission upon request any other instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of any of their total consolidated assets.

X

X

 

 

 

 

 

 

 

4.1

 

Indenture, dated as of June 1, 2015, between Dominion Resources, Inc. and Deutsche Bank Trust Company Americas, as Trustee (Exhibit 4.1, Form 8-K filed June 15, 2015, File No. 1-8489); Second Supplemental Indenture, dated as of September 1, 2015 (Exhibit 4.2, Form 8-K filed September 24, 2015, File No. 1-8489); Sixth Supplemental Indenture, dated as of August 1, 2016 (Exhibit 4.4, Form 8-K filed August 9, 2016, File No. 1-8489); Eleventh Supplemental Indenture, dated as of March 1, 2017 (Exhibit 4.3, Form 10-Q filed May 4, 2017, File No. 1-8489); Fifteenth Supplemental Indenture, dated June 1, 2018 (Exhibit 4.2, Form 8-K, filed June 5, 2018, File No. 1-8489); Sixteenth Supplemental Indenture, dated March 1, 2019 (Exhibit 4.2, Form 8-K filed March 13, 2019, File No. 1-8489); Eighteenth Supplemental Indenture, dated as of March 1, 2020 (Exhibit 4.2, Form 8-K, filed March 19, 2020, File No. 1-8489); Nineteenth Supplemental Indenture, dated as of March 1, 2020 (Exhibit 4.3, Form 8-K, filed March 19, 2020, File No. 1-8489); Twentieth Supplemental Indenture, dated as of April 1, 2020 (Exhibit 4.2, Form 8-K, filed April 3, 2020, File No. 1-8489); Twenty-Second Supplemental Indenture, dated as of April 1, 2021 (Exhibit 4.2, Form 8-K, filed April 5, 2021, File No. 1-8489); Twenty-Third Supplemental Indenture, dated as of April 1, 2021 (Exhibit 4.3, Form 8-K, filed April 5, 2021, File No. 1-8489); Twenty-Fourth Supplemental Indenture, dated as of August 1, 2021 (Exhibit 4.2, Form 8-K filed August 12, 2021, File No. 1-8489); Twenty-Fifth Supplemental Indenture, dated as of August 1, 2022 (Exhibit 4.2, Form 8-K filed August 19, 2022, File No. 1-8489); Twenty-Sixth Supplemental Indenture, dated as of August 1, 2022 (Exhibit 4.3, Form 8-K filed August 19, 2022, File No. 1-8489); Twenty-Seventh Supplemental Indenture, dated as of November 1, 2022 (Exhibit 4.2, Form 8-K filed November 18, 2022, File No. 1-8489); Twenty-Eighth Supplemental Indenture, dated as of March 1, 2025 (Exhibit 4.2, Form 8-K filed March 11, 2025, File No. 1-8489; Twenty-Ninth Supplemental Indenture, dated as of March 1, 2025 (Exhibit 4.3, Form 8-K filed March 11, 2025, File No. 1-8489); Thirtieth Supplemental Indenture, dated as of May 1, 2025 (Exhibit 4.2, Form 8-K filed May 13, 2025, File No. 1-8489); Thirty-First Supplemental Indenture, dated as of June 1, 2026 (Exhibit 4.2, Form 8-K filed June 5, 2026, File No. 1-8489).

 

X

 

 

 

 

 

 

 

 

 

4.2

 

Junior Subordinated Indenture II, dated June 1, 2006, between Dominion Resources, Inc. and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N.A.), as Trustee (Exhibit 4.1, Form 10-Q for the quarter ended June 30, 2006 filed August 3, 2006, File No. 1-8489); Third Supplemental and Amending Indenture, dated as of June 1, 2009 (Exhibit 4.2, Form 8-K filed June 15, 2009, File No. 1-8489); Seventh Supplemental Indenture, dated as of September 1, 2014 (Exhibit 4.3, Form 8-K filed October 3, 2013, File No. 1-8489); Fifteenth Supplemental Indenture, dated June 27, 2019 (Exhibit 4.6, Form 8-K filed June 27, 2019, File No. 1-8489); Sixteenth Supplemental Indenture, dated as of May 1, 2024 (Exhibit 4.3, Form 8-K filed May 20, 2024, File No. 1-8489); Seventeenth Supplemental Indenture, dated as of May 1, 2024 (Exhibit 4.4, Form 8-K filed May 20, 2024, File No. 1-8489); Eighteenth Supplemental Indenture, dated as of November 1, 2024 (Exhibit 4.3, Form 8-K filed November 18, 2024, File No. 1-8489); Nineteenth Supplemental Indenture, dated as of August 1, 2025 (Exhibit 4.3, Form 8-K filed August 6, 2025, File No. 1-8489); Twentieth Supplemental Indenture, dated as of August 1, 2025 (Exhibit 4.4, Form 8-K filed August 6, 2025, File No. 1-8489); Twenty-First Supplemental Indenture, dated as of June 1, 2026 (Exhibit 4.3, Form

 

X

 

 

 

83


 

 

Exhibit

Number

Description

Dominion Energy

Virginia Power

 

 

8-K filed June 16, 2026, File No. 1-8489); Twenty-Second Supplemental Indenture, dated June 1, 2026 (Exhibit 4.4, Form 8-K filed June 16, 2026, File No. 1-8489).

 

 

 

 

 

 

 

 

 

 

 

10.1

 

Fourth Amendment, dated as of April 7, 2026, to the Sustainability Revolving Credit Agreement, dated as of June 9, 2021, among Dominion Energy, Inc., Sumitomo Mitsui Banking Corporation, as Administrative Agent and Sustainability Coordinator, Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Toronto-Dominion Bank, New York Branch, as Joint Lead Arrangers and Joint Bookrunners, and the other lenders named therein (Exhibit 10.1, Form 8-K filed April 8, 2026, File No. 1-8489).

 

X

 

 

 

 

 

 

 

 

 

31.a

Certification by Chief Executive Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

X

31.b

Certification by Chief Financial Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

X

31.c

Certification by Chief Executive Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

X

31.d

Certification by Chief Financial Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

X

32.a

Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Dominion Energy, Inc. as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

X

32.b

Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Virginia Electric and Power Company as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

X

99

Condensed consolidated earnings statements (filed herewith).

X

X

101

The following financial statements from Dominion Energy, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed on July 31, 2026, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. The following financial statements from Virginia Electric and Power Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed on July 31, 2026, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Equity (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.

X

X

104

Cover Page Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.

X

X

 

84


 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

DOMINION ENERGY, INC.

Registrant

 

 

July 31, 2026

/s/ Gary G. Ratliff, Jr.

 

Gary G. Ratliff, Jr.

Vice President, Controller and

Chief Accounting Officer

 

 

 

VIRGINIA ELECTRIC AND POWER COMPANY

Registrant

 

 

July 31, 2026

/s/ Gary G. Ratliff, Jr.

 

Gary G. Ratliff, Jr.

Vice President, Controller and

Chief Accounting Officer

 

 

 

 

85



ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

EX-31.A

EX-31.B

EX-31.C

EX-31.D

EX-32.A

EX-32.B

EX-99

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