v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

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 September 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)

 

$

64

 

 

(2) - 12

 

 

3

 

 

$

64

 

 

(2) - 2

 

 

(1

)

FTRs

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

15

 

 

1 - 36

 

 

13

 

 

 

15

 

 

1 - 36

 

 

13

 

Electricity

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

351

 

 

37 - 136

 

 

65

 

 

 

 

 

 

 

 

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

 

Option model

 

Market price (per Dth)(3)

 

 

323

 

 

1 - 20

 

 

4

 

 

 

9

 

 

3 - 20

 

 

8

 

 

 

 

 

 

Credit spread(4)

 

 

 

 

0% - 2%

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

Price volatility(5)

 

 

 

 

2% - 80%

 

 

64

%

 

 

 

 

14% - 71%

 

 

47

%

Total assets

 

 

 

 

 

 

$

753

 

 

 

 

 

 

 

$

88

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTRs

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

24

 

 

(19) - 36

 

 

11

 

 

 

24

 

 

(19) - 36

 

 

11

 

Electricity

 

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

91

 

 

36 - 169

 

 

76

 

 

 

 

 

 

 

 

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

 

Option model

 

Market price (per Dth)(3)

 

 

9

 

 

2 - 8

 

 

4

 

 

 

9

 

 

2 - 8

 

 

4

 

 

 

 

 

 

Credit spread(4)

 

 

 

 

1% - 2%

 

 

1

%

 

 

 

 

1% - 2%

 

 

1

%

 

 

 

 

 

Price volatility(5)

 

 

 

 

56% - 79%

 

 

64

%

 

 

 

 

56% - 79%

 

 

64

%

Total liabilities

 

 

 

$

124

 

 

 

 

 

 

 

$

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)

Credit spread

 

Asset

 

Increase (decrease)

 

Loss (gain)

Credit spread

 

Liability

 

Increase (decrease)

 

Gain (loss)

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.

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

1

 

 

$

107

 

 

$

753

 

 

$

861

 

 

$

1

 

 

$

70

 

 

$

88

 

 

$

159

 

Interest rate

 

 

—

 

 

 

547

 

 

 

—

 

 

 

547

 

 

 

—

 

 

 

480

 

 

 

—

 

 

 

480

 

Foreign currency exchange rate

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

6,996

 

 

 

—

 

 

 

—

 

 

 

6,996

 

 

 

3,584

 

 

 

—

 

 

 

—

 

 

 

3,584

 

International

 

 

187

 

 

 

—

 

 

 

—

 

 

 

187

 

 

 

100

 

 

 

—

 

 

 

—

 

 

 

100

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

135

 

 

 

—

 

 

 

135

 

 

 

—

 

 

 

124

 

 

 

—

 

 

 

124

 

Government securities

 

 

146

 

 

 

223

 

 

 

—

 

 

 

369

 

 

 

102

 

 

 

126

 

 

 

—

 

 

 

228

 

Private debt funds – liquid investments

 

 

—

 

 

 

313

 

 

 

—

 

 

 

313

 

 

 

—

 

 

 

177

 

 

 

—

 

 

 

177

 

Cash equivalents and other

 

 

53

 

 

 

—

 

 

 

—

 

 

 

53

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total assets

 

$

7,383

 

 

$

1,327

 

 

$

753

 

 

$

9,463

 

 

$

3,787

 

 

$

979

 

 

$

88

 

 

$

4,854

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

291

 

 

$

124

 

 

$

415

 

 

$

—

 

 

$

13

 

 

$

33

 

 

$

46

 

Interest rate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency exchange rate

 

 

—

 

 

 

9

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

9

 

Total liabilities

 

$

—

 

 

$

300

 

 

$

124

 

 

$

424

 

 

$

—

 

 

$

22

 

 

$

33

 

 

$

55

 

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 $2.1 billion and $2.3 billion for Dominion Energy, inclusive of $1.1 billion and $1.3 billion at Virginia Power, at September 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.

 

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 September 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

930

 

 

$

414

 

 

$

627

 

 

$

384

 

 

$

315

 

 

$

179

 

 

$

208

 

 

$

68

 

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

(54

)

 

 

(24

)

 

 

(84

)

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

Purchased electric capacity

 

 

—

 

 

 

—

 

 

 

(7

)

 

—

 

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

—

 

Electric fuel and other energy-related purchases

 

 

(46

)

 

 

115

 

 

 

206

 

 

 

233

 

 

 

(58

)

 

 

106

 

 

 

186

 

 

 

222

 

Purchased gas

 

 

(3

)

 

 

—

 

 

 

(3

)

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in regulatory assets/liabilities

 

 

(210

)

 

 

33

 

 

 

(47

)

 

 

76

 

 

 

(251

)

 

 

(11

)

 

 

(151

)

 

 

102

 

Settlements

 

 

21

 

 

 

(126

)

 

 

(275

)

 

 

(275

)

 

 

58

 

 

 

(106

)

 

 

(183

)

 

 

(232

)

Purchases

 

 

—

 

 

 

—

 

 

 

221

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

8

 

Sales

 

 

(9

)

 

 

—

 

 

 

(9

)

 

 

—

 

 

 

(9

)

 

 

—

 

 

 

(9

)

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

629

 

 

$

411

 

 

$

629

 

 

$

411

 

 

$

55

 

 

$

168

 

 

$

55

 

 

$

168

 

 

Dominion Energy had $(53) million and $(84) 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 nine months ended September 30, 2026, respectively, and $(24) million and $(14) 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 nine months ended September 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 nine months ended September 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)

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

42,372

 

 

$

38,066

 

 

$

25,115

 

 

$

22,114

 

Securitization
    bonds(3)

 

 

970

 

 

 

960

 

 

 

970

 

 

 

960

 

Junior subordinated
    notes(2)

 

 

7,461

 

 

 

7,312

 

 

 

 

 

 

 

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 September 30, 2026 and December 31, 2025.
(3)
Carrying amount includes current portions included in securities due within one year.