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

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.

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

(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.