DOMINION ENERGY INC

Previous wording

Changes to regulated electric rates collected by the Companies and regulated gas distribution, transportation and storage rates collected by Dominion Energy;

Current wording

Changes to regulated electric rates collected by the Companies and regulated gas distribution rates collected by Dominion Energy;

Previous wording

Risks associated with entities in which Dominion Energy shares ownership with third parties, including risks that result from lack of sole decision making authority, disputes that may arise between Dominion Energy and third party participants and difficulties in exiting these arrangements;

Current wording

Risks associated with entities in which Dominion Energy shares 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 Dominion Energy and third party participants and difficulties in exiting these arrangements;

Previous wording

The impact of operational hazards, including adverse developments with respect to pipeline and plant safety or integrity, equipment loss, malfunction or failure, operator error and other catastrophic events;

Current wording

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;

Previous wording

Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, changes in supplies of natural gas delivered to Dominion Energy’s pipeline system, 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;

Current wording

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;

Previous wording

Net income attributable to Dominion Energy decreased 20%, primarily due to the closing of the East Ohio Transaction, the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point, increased unrealized losses on economic hedging activities and the impact of 2023 Virginia legislation, 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, an increase in sales to electric utility customers attributable to weather, the absence of amortization associated with the 2021 Triennial Review and fewer outages at Millstone.

Current wording

Net income attributable to Dominion Energy increased 28%, primarily due to the absence of a charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale, an increase in net investment earnings on nuclear decommissioning trust funds, the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale, higher rider equity returns reflecting increased capital investments at Virginia Power, an increase in sales to electric utility customers attributable to weather and the absence of amortization associated with the 2021 Triennial Review. These increases were partially offset by the closing of the East Ohio Transaction, the absence of a gain and equity method earnings from the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point, increased unrealized losses on economic hedging activities and the impact of 2023 Virginia legislation.

Previous wording

A $453 million net decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($414 million);

Current wording

A $101 million increase associated with market prices affecting Millstone, including economic hedging impacts of realized and unrealized gains on freestanding derivatives ($91 million);

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 prior to March 2024; and

Current wording

A $10 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.

Previous wording

A $61 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power effective March 2024; and

Current wording

A $135 million net decrease in fuel-related revenue as a result of a decrease 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 effective March 2024;

Previous 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.

Current wording

Electric fuel and other energy-related purchases decreased 13%, primarily due to lower commodity costs for electric utilities ($159 million), partially offset by an increase in the use of purchased renewable energy credits at Virginia Power ($19 million), which are offset in operating revenue and do not impact net income.

Previous wording

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

Current wording

A $24 million increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;

Previous wording

A $14 million increase in outage costs; and

Current wording

A $14 million increase in materials and supplies expense; and

Previous wording

A $20 million increase in salaries, wages and benefits;

Current wording

A $20 million decrease in bad debt expense; and

Previous wording

An $18 million increase in storm damage and restoration costs in Virginia Power’s service territory; and

Current wording

A $19 million decrease in storm damage and restoration costs in Virginia Power’s service territory.

Previous 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).

Current wording

Depreciation and amortization decreased 18%, primarily due to the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and the absence of RGGI-related amortization ($36 million) and a decrease in amortization associated with Virginia Power non-fuel riders ($13 million), both of which are offset in operating revenue and do not impact net income.

Previous wording

Interest and related charges increased 19%, primarily due to lower unrealized gains in 2024 compared to 2023 associated with freestanding derivatives ($46 million) and net issuances of long-term debt ($58 million), partially offset by a decrease in borrowings under the 364-day term loan facilities ($30 million).

Current wording

Lower unrealized gains in 2024 compared to 2023 associated with freestanding derivatives ($219 million);

Previous 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).

Current wording

Charges incurred due to early debt repayments associated with the business review completed in March 2024 ($13 million).

Previous 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).

Current wording

Net income from discontinued operations including noncontrolling interests increased 98%, primarily due to the absence of charges reflecting the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale ($939 million), the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($54 million) and the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($19 million), partially offset by the absence of a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point ($348 million), the absence of earnings from operations following the closing of the East Ohio Transaction ($87 million) and Questar Gas Transaction ($32 million), the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($39 million) and a loss on the closing of the PSNC Transaction ($30 million).

Previous 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);

Current wording

A $150 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($107 million) and an increase in heating degree days during the heating season ($43 million);

Previous wording

A $100 million increase from fewer outages at Millstone, including the relative effect of the absence of a planned outage ($72 million) and fewer unplanned outages ($28 million);

Current wording

An $85 million increase from fewer outages at Millstone, including the relative effect of the absence of a planned outage ($73 million) and fewer unplanned outages ($12 million);

Previous wording

A $52 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

Current wording

A $62 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;

Previous 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);

Current wording

A $352 million net decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($323 million);

Previous wording

A $17 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power effective March 2024.

Current wording

A $196 million net decrease in fuel-related revenue as a result of a decrease 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 effective March 2024;

Previous wording

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

Current wording

A $184 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 2%, primarily due to lower commodity costs for electric utilities, 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, which are offset in operating revenue and do not impact net income.

Previous wording

Operating revenue increased 10%, primarily reflecting:

Current wording

Other operations and maintenance increased 10%, primarily reflecting:

Previous wording

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

Current wording

A $32 million increase in costs associated with the business review completed in March 2024;

Previous wording

A $39 million net decrease in outage costs due to lower outage costs at Millstone ($53 million) partially offset by higher outage costs at Virginia Power ($14 million).

Current wording

A $38 million net decrease in outage costs due to lower outage costs at Millstone ($51 million) partially offset by higher outage costs at Virginia Power ($13 million).

Previous wording

Depreciation and amortization increased 1%, primarily due to an increase in RGGI-related amortization ($179 million), which is offset in operating revenue and does not impact net income, and various projects being placed into service ($32 million), partially offset by the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($122 million), a decrease in amortization associated with Virginia Power non-fuel riders ($54 million) and revised estimated useful lives at Millstone ($19 million).

Current wording

A $29 million decrease due to revised estimated useful lives at Millstone; and

Previous wording

Impairment of assets and other charges increased 81%, primarily due to a charge for the impairment of certain nonregulated renewable natural gas facilities ($33 million) and an impairment of a corporate office building ($17 million), partially offset by 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).

Current wording

Charges for the impairment of certain nonregulated renewable natural gas facilities ($60 million);

Previous wording

Impairment of assets and other charges decreased 28%, primarily due to a decrease in impairments of corporate office buildings ($74 million) and 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), partially offset by a charge in connection with a settlement of an agreement ($47 million) and a charge for the impairment of certain nonregulated renewable natural gas facilities ($33 million).

Current wording

A charge in connection with a settlement of an agreement ($47 million); and

Previous 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.

Current wording

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).

Previous wording

Transaction ($113 million), an impairment associated with the Questar Gas Transaction ($78 million), charges for employee benefit items related to the East Ohio Transaction ($33 million), the absence of unrealized gains on interest rate derivatives for economic hedging of debt secured by Dominion Energy’s interest in Cove Point ($18 million) and higher tax expense associated with the PSNC Transaction ($16 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 ($157 million), the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($53 million), lower tax expense to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock ($22 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).

Current wording

Net income from discontinued operations including noncontrolling interests increased $274 million, primarily due to the absence of charges reflecting the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale ($939 million), the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($211 million), the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($72 million), lower tax expense to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock ($22 million), a gain upon the closing of the Questar Gas Transaction ($18 million) and the absence of an impairment charge of certain nonregulated solar assets ($11 million), partially offset by the absence of a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point ($348 million), the absence of earnings from operations following the closing of the East Ohio Transaction ($206 million) and Questar Gas Transaction ($39 million), the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($163 million), a loss on the closing of the East Ohio Transaction ($113 million), an impairment associated with the Questar Gas Transaction ($78 million), charges for employee benefit items related to the East Ohio Transaction ($33 million), a loss on the closing of the PSNC Transaction ($30 million) and higher tax expense associated with the PSNC Transaction ($16 million).

Previous wording

Net income increased 37%, 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.

Current wording

Net income increased 37%, primarily due to the absence of amortization associated with the 2021 Triennial Review, higher rider equity returns reflecting increased capital investments and an increase in sales to electric utility customers attributable to weather and other customer-related factors, partially offset by the impact of 2023 Virginia legislation.

Previous wording

A $45 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges effective March 2024; and

Current wording

A $40 million net decrease in fuel-related revenue as a result of a decrease 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 effective March 2024;

Previous wording

A $15 million increase in sales to electric utility retail customers associated with growth.

Current wording

A $15 million decrease due to one-time credits to customers associated with the 2023 Biennial Review; and

Previous 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.

Current wording

Electric fuel and other energy-related purchases decreased 6%, primarily due to lower commodity costs for electric utilities ($64 million), partially offset by an increase in the use of purchased renewable energy credits ($19 million), which are offset in operating revenue and do not impact net income.

Previous wording

A $31 million increase in costs associated with the business review completed in March 2024;

Current wording

A $31 million increase in salaries, wages and benefits and administrative costs;

Previous wording

A $19 million decrease in sales to electric utility retail customers associated with economic and other usage factors.

Current wording

A $19 million decrease in bad debt expense.

Previous 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).

Current wording

Depreciation and amortization decreased 23%, primarily due to the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and the absence of RGGI-related amortization ($36 million) and a decrease in amortization associated with Virginia Power non-fuel riders ($13 million), both of which are offset in operating revenue and do not impact net income.

Previous wording

Interest and related charges increased 9%, primarily due to an increase in long-term debt borrowings ($85 million), partially offset by a decrease in principal on commercial paper and intercompany borrowings with Dominion Energy ($63 million).

Current wording

Interest and related charges increased 11%, primarily due to an increase in long-term debt borrowings ($44 million) and increased interest expense associated with rider deferrals ($15 million), which is offset in operating revenue and does not impact net income, partially offset by a decrease in the outstanding balance of commercial paper and intercompany borrowings with Dominion Energy ($23 million).