DOMINION ENERGY INC

Previous wording

Risks and uncertainties that may impact the Companies’ ability to develop and 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;

Current wording

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;

Previous wording

The expected timing and likelihood of the completion of either or both of the PSNC and Questar Gas Transactions, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals;

Current wording

The expected timing and likelihood of the completion of the PSNC Transaction, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals;

Previous wording

Net income attributable to Dominion Energy decreased 31%, primarily due to the closing of the East Ohio Transaction, increased unrealized losses on economic hedging activities and the impact of 2023 Virginia legislation, partially offset by an increase in net investment earnings on nuclear decommissioning trust funds.

Current wording

Net income attributable to Dominion Energy decreased 2%, primarily due to the closing of the East Ohio Transaction and the impact of 2023 Virginia legislation, partially offset by an increase in sales to electric utility customers attributable to weather and the absence of outages at Millstone.

Previous wording

A $26 million net increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges at Virginia Power.

Current wording

A $26 million net increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges at Virginia Power prior to March 2024; and

Previous wording

A $383 million net decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($351 million);

Current wording

A $70 million net decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($63 million);

Previous wording

Other operations and maintenance increased 15%, primarily due to an increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income ($25 million), an increase in storm damage and restoration costs in Virginia Power’s service territory ($21 million), an increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation ($20 million), an increase in costs associated with the business review completed in March 2024 ($15 million) and an increase in outage costs at Virginia Power ($15 million).

Current wording

A $15 million increase in costs associated with the business review completed in March 2024;

Previous wording

Depreciation and amortization remained substantially consistent as the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and a decrease in amortization associated with Virginia Power non-fuel riders ($35 million) were substantially offset by an increase in RGGI-related amortization ($92 million), which is offset in operating revenue and does not impact net income.

Current wording

Depreciation and amortization increased 2%, primarily due to an increase in RGGI-related amortization ($87 million), which is offset in operating revenue and does not impact net income, partially offset by the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and a decrease in amortization associated with Virginia Power non-fuel riders ($19 million).

Previous wording

Net income from discontinued operations including noncontrolling interests decreased 59%, primarily due to a loss on the closing of the East Ohio Transaction ($108 million), an impairment associated with the Questar Gas Transaction ($78 million), the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($57 million), charges for employee benefit items related to the East Ohio Transaction ($33 million) and the absence of earnings from operations following the closing of the East Ohio Transaction ($26 million), partially offset by the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($78 million), lower tax expense associated with the PSNC and Questar Gas Transactions ($25 million), the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($25 million) and the absence of unrealized losses on interest rate derivatives for economic hedging of debt secured by Dominion Energy’s interest in Cove Point ($19 million).

Current wording

Net income from discontinued operations including noncontrolling interests decreased 52%, primarily due to the absence of earnings from operations following the closing of the East Ohio Transaction ($96 million), the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($67 million), the absence of unrealized gains on interest rate derivatives for economic hedging of debt secured by Dominion Energy’s interest in Cove Point ($37 million) and higher tax expense associated with the PSNC Transaction ($14 million), partially offset by the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($79 million), the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($28 million), a gain upon the closing of the Questar Gas Transaction ($17 million) and the absence of an impairment charge of certain nonregulated solar assets ($11 million).

Previous wording

A $43 million increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season;

Current wording

A $171 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($128 million) and an increase in heating degree days during the heating season ($43 million);

Previous wording

A $102 million decrease from the combination of certain riders into base rates at Virginia Power as a result of 2023 Virginia legislation; and

Current wording

A $187 million decrease from the combination of certain riders into base rates at Virginia Power as a result of 2023 Virginia legislation;

Previous wording

Electric fuel and other energy-related purchases decreased 6%, primarily due to lower commodity costs for electric utilities ($50 million) and a decrease in the use of purchased renewable energy credits at Virginia Power ($12 million), which are offset in operating revenue and do not impact net income.

Current wording

Electric fuel and other energy-related purchases decreased 4%, primarily due to lower commodity costs for electric utilities ($89 million) and a decrease in the use of purchased renewable energy credits at Virginia Power ($20 million), which are offset in operating revenue and do not impact net income.

Previous wording

Interest and related charges increased 20%, primarily due to net debt issuances in 2023 ($64 million), higher interest rates on variable rate debt and cash flow interest rate swaps ($14 million), higher interest rates on commercial paper and long-term debt ($13 million), charges incurred due to early debt repayments associated with the business review completed in March 2024 ($12 million) and premiums paid in 2024 compared to premiums received in 2023 on interest rate derivatives ($10 million), partially offset by lower unrealized losses in 2024 compared to 2023 associated with freestanding derivatives ($15 million).

Current wording

Interest and related charges increased 19%, primarily due to net issuances of long-term debt ($83 million), higher unrealized losses in 2024 compared to 2023 associated with freestanding derivatives ($31 million), higher interest rates on variable rate debt and cash flow interest rate swaps ($14 million), higher interest rates on commercial paper and long-term debt ($13 million), charges incurred due to early debt repayments associated with the business review completed in March 2024 ($12 million), premiums paid in 2024 compared to premiums received in 2023 on interest rate derivatives ($10 million) and an increase in borrowings under the 364-day term loan facilities ($9 million).

Previous wording

Income tax expense decreased 24%, primarily due to lower pre-tax income.

Current wording

Income tax expense decreased 16%, primarily due to lower pre-tax income ($39 million) and a nuclear production tax credit ($17 million).

Previous wording

Net income increased 31%, primarily due to the absence of amortization associated with the 2021 Triennial Review, an increase in net investment earnings on nuclear decommissioning trust funds and an increase in sales to electric utility customers from weather and other customer-related factors, partially offset by a net decrease from riders primarily from 2023 Virginia legislation.

Current wording

Net income increased 43%, primarily due to the absence of amortization associated with the 2021 Triennial Review and an increase in sales to electric utility customers attributable to weather and other customer-related factors, partially offset by a net decrease from riders primarily from 2023 Virginia legislation.

Previous wording

Depreciation and amortization remained substantially consistent as the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and a decrease in amortization associated with non-fuel riders ($35 million) were substantially offset by an increase in RGGI-related amortization ($92 million), which is offset in operating revenue and does not impact net income.

Current wording

Depreciation and amortization increased 3%, primarily due to an increase in RGGI-related amortization ($87 million), which is offset in operating revenue and does not impact net income, partially offset by the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and a decrease in amortization associated with non-fuel riders ($19 million).

Previous wording

Interest and related charges increased 5%, primarily due to an increase in long-term debt borrowings ($44 million), partially offset by a decrease in principal on commercial paper and intercompany borrowings with Dominion Energy ($34 million).

Current wording

Interest and related charges increased 12%, primarily due to an increase in long-term debt borrowings ($41 million), partially offset by a decrease in principal on commercial paper and intercompany borrowings with Dominion Energy ($29 million).

Previous wording

Income tax expense increased 32%, primarily due to higher pre-tax income.

Current wording

Income tax expense increased 36%, primarily due to higher pre-tax income ($44 million), partially offset by a nuclear production tax credit ($17 million).

Previous wording

A $30 million increase in sales to electric utility retail customers from an increase in heating degree days during the heating season;

Current wording

A $119 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($89 million) and an increase in heating degree days during the heating season ($30 million);

Previous wording

Electric fuel and other energy-related purchases decreased 12%, primarily due to lower commodity costs for electric utilities ($75 million) and a decrease in the use of purchased renewable energy credits ($12 million), which are offset in operating revenue and do not impact net income.

Current wording

Electric fuel and other energy-related purchases decreased 7%, primarily due to lower commodity costs for electric utilities ($73 million) and a decrease in the use of purchased renewable energy credits ($20 million), which are offset in operating revenue and do not impact net income.

Previous wording

Other operations and maintenance increased 20%, primarily due to an increase in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income ($25 million), an increase in storm damage and restoration costs ($21 million), an increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation ($20 million) and an increase in outage costs ($15 million).

Current wording

A $29 million increase in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;

Previous wording

Impairment of assets and other charges decreased 69%, primarily due to the absence of the impairment of a corporate office building ($91 million) and a benefit from the establishment of a regulatory asset associated with previously incurred storm damage and restoration costs in connection with the settlement of the 2023 Biennial Review ($17 million), partially offset by a charge in connection with a settlement of an agreement ($47 million).

Current wording

Impairment of assets and other charges decreased $47 million, primarily due to the absence of a charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023 ($36 million) and a benefit from the establishment of a regulatory asset associated with previously incurred storm damage and restoration costs in connection with the settlement of the 2023 Biennial Review ($11 million).

Previous wording

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 attributable to Dominion Energy:

Current wording

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:

Previous wording

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 21 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 March 31, 2024, this primarily included $114 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions, including the loss on sale associated with the East Ohio Transaction, as well as an impairment charge associated with the Questar Gas Transaction, and a $34 million after-tax loss for derivative mark-to-market changes.

Current wording

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 21 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, 2024, this primarily included $81 million net income from discontinued operations, primarily associated with operations included in the PSNC and Questar Gas Transactions. For the six months ended June 30, 2024, this primarily included $195 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions, including the loss on sale associated with the East Ohio Transaction, as well as an impairment charge associated with the Questar Gas Transaction, a $34 million after-tax loss for derivative mark-to-market changes and $25 million in after-tax costs associated with the business review completed in March 2024.

Previous wording

For the three months ended March 31, 2023, this primarily included $281 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, a $68 million after-tax charge associated with the impairment of a corporate office building and a $45 million after-tax loss for derivative mark-to-market changes.

Current wording

For the three months ended June 30, 2023, this primarily included $168 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, and a $36 million after-tax gain for derivative mark-to-market changes. For the six months ended June 30, 2023, this primarily included $449 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point and a $68 million after-tax charge associated with the impairment of a corporate office building.

Previous wording

Includes cash outflows of $17 million for energy efficiency programs in Virginia for both the three months ended March 31, 2024 and 2023 and $5 million and $4 million for DSM programs in South Carolina for the three months ended March 31, 2024 and 2023, respectively.

Current wording

Includes cash outflows of $40 million and $41 million for energy efficiency programs in Virginia for the six months ended June 30, 2024 and 2023, respectively, and $12 million and $11 million for DSM programs in South Carolina for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

Net cash provided by Dominion Energy’s operating activities decreased $115 million, inclusive of a $487 million increase from discontinued operations. Net cash provided by continuing operations decreased $602 million primarily due to higher net prepayments and deposits ($283 million) and a decrease from changes in working capital ($373 million).

Current wording

Net cash provided by Dominion Energy’s operating activities decreased $356 million, inclusive of a $93 million increase from discontinued operations. Net cash provided by continuing operations decreased $449 million primarily due to higher net prepayments and deposits ($367 million), lower deferred fuel and purchased gas cost recoveries ($135 million), an increase in interest payments driven by higher interest rates and borrowings ($97 million) and a decrease from changes in working capital ($94 million), partially offset by a $244 million increase primarily due to higher operating cash flows from electric utility operations driven by weather and riders.

Previous wording

Net cash from Dominion Energy’s investing activities increased $3.7 billion, primarily due to net proceeds from the East Ohio Transaction ($4.3 billion) and an increase in distributions from equity method affiliates ($126 million), partially offset by an increase in plant construction and other property additions ($549 million) and higher acquisitions of solar development projects ($150 million).

Current wording

Net cash from Dominion Energy’s investing activities increased $6.3 billion, primarily due to net proceeds from the East Ohio and Questar Gas Transactions ($7.2 billion) and an increase in distributions from equity method affiliates ($125 million), partially offset by an increase in plant construction and other property additions ($884 million) and higher acquisitions of solar development projects ($175 million).

Previous wording

Net cash from Dominion Energy’s financing activities decreased $5.2 billion, primarily due to a $6.3 billion decrease due to net repayments on 364-day term loan facilities in 2024 versus net issuances in 2023, net repayments of short-term debt ($453 million) and the absence of supplemental credit facility borrowings in 2023 ($450 million), partially offset by a $2.0 billion increase due to net issuances of long-term debt in 2024 versus net repayments in 2023.

Current wording

Net cash from Dominion Energy’s financing activities decreased $6.1 billion, primarily due to a $7.3 billion decrease due to net repayments on 364-day term loan facilities in 2024 versus net issuances in 2023, net repayments of short-term debt ($1.9 billion), net repayment of the supplemental credit facility ($450 million) and the partial repurchase of the Series B Preferred Stock ($440 million), partially offset by a $4.1 billion increase due to net issuances of long-term debt in 2024 versus net repayments in 2023.

Previous wording

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, 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 three months ended March 31, 2024.

Current wording

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, 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, 2024.

Previous wording

Dominion Energy maintains a $6.0 billion joint revolving credit facility which provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives.

Current wording

Dominion Energy maintains a $6.0 billion joint revolving credit facility which provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives. At June 30, 2024, Dominion Energy had $3.3 billion of unused capacity under its joint revolving credit facility. See Note 16 to the Consolidated Financial Statements in this report for the balances of commercial paper and letters of credit outstanding.

Previous wording

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 Investment SM. 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 March 31, 2024, Dominion Energy’s Consolidated Balance Sheets include $462 million presented within short-term debt, with a weighted-average interest rate of 5.50%. The proceeds are used for general corporate purposes and to repay debt.

Current wording

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 Investment SM. 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, 2024, Dominion Energy’s Consolidated Balance Sheet included $480 million presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

Previous wording

In March 2024, Dominion Energy repaid $1.8 billion of its $2.25 billion 364-day term loan facility entered into in October 2023, using after-tax proceeds received in connection with the East Ohio Transaction. Subsequently in March 2024, Dominion Energy requested and received a $500 million increase to the amount of the facility and concurrently borrowed $500 million with the proceeds used for general corporate purposes. The debt is scheduled to mature in October 2024. The agreement contains certain mandatory early repayment provisions, including that any after-tax proceeds in connection with the PSNC and Questar Gas Transactions be applied to any outstanding borrowings under this facility. At March 31, 2024, Dominion Energy’s Consolidated Balance Sheet includes $976 million with respect to such facility presented within securities due within one year. The maximum allowed total debt to total capital ratio under this facility is consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.

Current wording

In March 2024, Dominion Energy repaid $1.8 billion of its $2.25 billion 364-day term loan facility entered into in October 2023, using after-tax proceeds received in connection with the East Ohio Transaction. Subsequently in March 2024, Dominion Energy requested and received a $500 million increase to the amount of the facility and concurrently borrowed $500 million with the proceeds used for general corporate purposes. In May 2024, Dominion Energy repaid the full $976 million outstanding under the facility, using after-tax proceeds received in connection with the Questar Gas Transaction. The debt was scheduled to mature in October 2024.

Previous wording

Dominion Energy maintains a $900 million Sustainability Revolving Credit Facility which matures in June 2024 and bears interest at a variable rate. The facility offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. At March 31, 2024, Dominion Energy had $450 million outstanding under this supplemental credit facility, borrowed to support environmental sustainability and social investment initiatives.

Current wording

Dominion Energy maintains a $900 million Sustainability Revolving Credit Facility which, following an amendment in June 2024, matures in June 2025 and bears interest at a variable rate and is described in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023. The facility offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. In May 2024, Dominion Energy used a portion of the proceeds from the issuance of the 2024 EJSNs discussed below to repay the outstanding balance of $450 million under the Sustainability Revolving Credit Facility.

Previous wording

During the three months ended March 31, 2024, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds for senior notes were used for the repayment of existing indebtedness and for general corporate purposes. See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for additional information, including use of proceeds and repayment provisions, on the securitization bonds issued in February 2024.

Current wording

During the six months ended June 30, 2024, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds for senior notes were used for the repayment of existing indebtedness and for general corporate purposes. See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for additional information, including use of proceeds and repayment provisions, on the securitization bonds issued in February 2024. See Note 16 to the Consolidated Financial Statements in this report for additional information, including use of proceeds, on the 2024 EJSNs issued in May 2024.

Previous wording

Dominion Energy anticipates, excluding potential opportunistic financings and the securitization bonds, issuing between approximately $3.0 billion and $4.3 billion of long-term debt during 2024, inclusive of $1 billion issued at Virginia Power as shown above and an expected issuance at PSNC of up to $300 million prior to closing of the PSNC Transaction. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends, after-tax proceeds from the completion of the PSNC and Questar Gas Transactions remaining after the repayment of the 364-day term loan facility, after-tax proceeds from the completion of the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project 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.

Current wording

Dominion Energy anticipates, excluding potential opportunistic financings and the securitization bonds, issuing between approximately $3.0 billion and $4.8 billion of long-term debt during 2024, inclusive of amounts issued through June 30, 2024 as shown in the table above and the issuance of senior notes at PSNC in July 2024 discussed above. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends, after-tax proceeds from the completion of the PSNC Transaction, after-tax proceeds from the completion of the proposed sale of a 50% noncontrolling interest in the CVOW Commercial

Previous wording

The following long-term debt was repaid, repurchased or redeemed during the three months ended March 31, 2024:

Current wording

The following long-term debt was repaid, repurchased or redeemed during the six months ended June 30, 2024:

Previous wording

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. Credit ratings and outlooks as of April 25, 2024 are as follows:

Current wording

As discussed in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, 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. As of June 30, 2024, there have been no changes in Dominion Energy’s credit ratings from those described in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. In June 2024, Standard & Poor’s revised its credit ratings outlook for Dominion Energy from negative to stable and affirmed all other current ratings.

Previous wording

Dominion Energy does not plan to repurchase shares of common stock in 2024, 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.

Current wording

Through June 30, 2024, Dominion Energy has not repurchased and does not plan to repurchase shares of common stock in 2024, 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.

Previous wording

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. In December 2023, Dominion Energy’s Board of Directors established an annual dividend rate for 2024 of $2.67 per share of common stock, consistent with the 2023 rate. Dividends are subject to declaration by the Board of Directors.

Current wording

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 Note 16 to the Consolidated Financial Statements in this report for additional information regarding Dominion Energy’s outstanding preferred stock and associated dividend rates.

Previous wording

Designations as investment grade are based upon minimum credit ratings assigned by Moody’s Investors Service and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 59% of the total net credit exposure.

Current wording

Designations as investment grade are based upon minimum credit ratings assigned by Moody’s Investors Service and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 46% of the total net credit exposure.