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
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).
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
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
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
Legal Proceedings
78
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
82
Item 5.
Other Information
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
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
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
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
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
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
1,033
1,286
1,785
Income tax expense
122
220
170
260
Net Income From Continuing Operations Including Noncontrolling Interests
330
813
1,525
Net Income (Loss) From Discontinued Operations Including Noncontrolling Interests(1)
(1
)
(2
—
Net Income Including Noncontrolling Interests
814
1,114
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
Net income (loss) from discontinued operations
Net income attributable to Dominion Energy
EPS - Basic
0.37
0.88
1.07
1.65
EPS - Diluted
The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(millions)
Net income including noncontrolling interests
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)
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)
13
15
Net realized (gains) losses on investment securities(5)
Net pension and other postretirement benefit costs (credits)(6)
(3
(5
Total other comprehensive income (loss)
16
Comprehensive income including noncontrolling interests
345
819
1,132
1,532
Comprehensive income (loss) attributable to noncontrolling interests
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.
8
CONSOLIDATED BALANCE SHEETS
June 30, 2026
December 31, 2025(1)
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
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
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
8,465
8,276
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.
CONSOLIDATED BALANCE SHEETS—(Continued)
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
Total current liabilities
12,006
10,444
Long-Term Debt
Long-term debt
38,032
36,778
Securitization bonds(2)
794
Junior subordinated notes
7,462
5,978
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
9,422
9,072
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
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
(4) 1.8 billion shares authorized; 880 million shares and 879 million shares outstanding at June 30, 2026 and December 31, 2025, respectively.
10
CONSOLIDATED STATEMENTS OF EQUITY
QUARTER-TO-DATE
Preferred Stock
Common Stock
Shares
Amount
Retained Earnings
Shareholders’Equity
NoncontrollingInterests
Total Equity
March 31, 2025
853
24,424
1,727
(150
26,992
3,357
30,349
Issuance of stock
35
Stock awards (net of change in unearned compensation)
Sale of noncontrolling interest in OSWP
(7
Contributions from Stonepeak to OSWP
324
Distributions from OSWP to Stonepeak
(78
Preferred stock dividends (see Note 15)
Common stock dividends ($0.6675 per common share) and distributions
(569
Other comprehensive income (loss), net of tax
June 30, 2025
24,463
1,906
(145
27,215
3,657
30,872
March 31, 2026
879
25,931
2,341
(116
29,147
4,561
33,708
11
234
(95
(587
880
YEAR-TO-DATE
December 31, 2024
852
24,383
1,641
(152
26,863
2,939
29,802
70
724
(106
(22
Common stock dividends ($1.335 per common share) and distributions
(1,138
December 31, 2025
38
17
370
(168
(1,174
CONSOLIDATED STATEMENTS OF CASH FLOWS
Operating Activities
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
316
192
Deferred investment tax credits (benefits)
(14
(19
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
(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
2,429
Investing Activities
Plant construction and other property additions (including nuclear fuel)
(5,799
(6,216
Acquisition of solar development projects
(10
Proceeds from sales of securities
2,308
1,694
Purchases of securities
(2,394
(1,748
Contributions to equity method affiliates
(17
(88
Net cash used in investing activities
(5,991
(6,385
Financing Activities
Issuance (repayment) of short-term debt, net
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
1,000
Supplemental credit facility repayments
(800
Proceeds from sale of noncontrolling interest in OSWP
Issuance of common stock
Common dividend payments
(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.
Operating Revenue(1)
3,421
2,712
7,117
5,477
Electric fuel and other energy-related purchases(1)
1,071
729
2,443
1,498
143
Other operations and maintenance:
Affiliated suppliers
125
259
473
428
994
904
415
396
838
98
92
205
189
268
154
2,546
1,837
5,078
3,764
875
2,039
1,713
106
Interest and related charges(1)
262
251
521
494
Income before income tax expense
740
704
1,672
1,325
115
299
586
589
1,373
1,120
Net Income Attributable to Virginia Power
597
535
1,220
1,020
The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.
Amounts reclassified to net income:
Net derivative (gains) losses-hedging activities(3)
587
1,371
1,115
Comprehensive income attributable to Virginia Power
598
1,218
1,015
193
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)
252
Affiliated receivables
Inventories (average cost method)
1,291
Derivative assets(3)
310
212
1,670
1,110
166
6,135
5,125
5,273
4,864
5,279
4,868
84,120
80,121
(19,763
(19,157
64,357
60,964
4,583
4,526
4,197
3,760
8,780
8,286
84,551
79,243
1,967
1,366
992
675
824
821
Payables to affiliates
162
216
Affiliated current borrowings
1,398
1,173
483
450
439
374
1,705
1,900
7,970
6,975
21,430
20,651
201
22,425
21,728
5,343
4,921
611
616
6,863
6,530
Other(3)
7,777
6,934
20,594
19,001
50,989
47,704
12,937
12,487
Other paid-in capital
999
14,907
13,687
Accumulated other comprehensive income
30
32
Shareholder’s equity
28,873
27,205
33,562
31,539
Other Paid-In Capital
Shareholder's Equity
(millions, except for shares)
(thousands)
8,987
1,006
12,622
23
22,638
25,995
Issuance of stock to Dominion Energy
2,100
354
11,087
13,156
25,265
14,310
29
27,825
32,386
380
12,136
28
22,157
25,096
19
921
303
176
152
(48
(24
(60
(45
(83
(57
Affiliated receivables and payables
(151
(36
Deferred fuel expenses, net
(649
(502
113
93
336
2,381
1,834
Plant construction and other property additions
(4,769
(5,103
Purchases of nuclear fuel
(63
(120
1,583
923
(1,652
(966
(39
(4,954
(5,315
317
795
Issuance (repayment) of affiliated current borrowings, net
225
(323
2,150
Common dividend payments to parent
(407
86
2,595
3,493
Increase in cash, restricted cash and equivalents
22
231
206
253
218
20
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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, RestrictedCash andEquivalentsat End of Period
Cash, RestrictedCash andEquivalentsat Beginning of Period
Cash and cash equivalents
344
Restricted cash and equivalents(1)(2)
71
69
55
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows
157
160
60
61
46
Supplemental Cash Flow Information
The following table provides supplemental disclosure of cash flow information related to Dominion Energy:
Significant noncash investing and financing activities:
Accrued capital expenditures
1,175
871
Leases(1)
37
The following table provides supplemental disclosure of cash flow information related to Virginia Power:
1,032
685
426
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:
Quarter-to-Date
Year-to-Date
Period Ended June 30,
Regulated electric sales:
Residential
1,523
1,347
3,370
2,916
1,164
2,656
2,215
Commercial
983
956
2,163
1,842
732
719
1,686
High load(1)
422
1,450
805
Industrial
199
178
384
68
134
Government and other retail
318
302
717
610
285
683
576
Wholesale
114
81
34
66
Nonregulated electric sales
255
238
692
42
75
65
Regulated gas sales:
45
217
84
Regulated gas transportation and storage
Other regulated revenue
136
99
131
95
126
Other nonregulated revenues(2)(3)(4)
109
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)
52
Total operating revenue
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.
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:
(millions, except percentages)
Rate
U.S. federal statutory tax
270
21.0
%
351
State and local income taxes, net of federal income tax effect(1)
4.1
4.0
Tax credits:
Production tax credits(2)
(91
(7.1
(34
(2.0
Investment tax credit amortization
(3.4
(23
(1.4
Nontaxable or nondeductible items:
Regulatory deferrals:
Reversal of excess deferred income taxes
(33
(2.6
AFUDC—equity
(15
(1.2
(1.0
Absence of tax on noncontrolling interest
(29
(2.1
(1.8
Other adjustments:
Qualified nuclear decommissioning trust net gains (losses)
4.8
0.6
(0.3
(0.1
Effective tax(3)
13.2
17.9
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:
U.S. federal statutory tax rate
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
(1.7
2.0
Remeasurements and settlements of uncertain tax positions
(1.6
(2.3
Other, net
Effective tax rate
14.5
15.4
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.
Note 5. Earnings Per Share
The following table presents the calculation of Dominion Energy’s basic and diluted EPS:
(millions, except EPS)
Net income attributable to Dominion Energy from continuing operations
Net income attributable to Dominion Energy from continuing operations - Basic & Diluted
748
941
1,403
Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted
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
EPS from discontinued operations - Basic
EPS attributable to Dominion Energy - Basic
EPS from continuing operations - Diluted
EPS from discontinued operations - Diluted
EPS attributable to Dominion Energy - Diluted
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)
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
Three Months Ended June 30, 2026
Beginning balance
(179
(155
Beginning balance, tax
(6
39
Beginning balance, net of tax
(134
Other comprehensive income (loss) before reclassifications: gains (losses)
Amounts reclassified from AOCI: (gains) losses
Income tax expense (benefit)
Total, net of tax
Net current period other comprehensive income (loss)
Ending balance, net of tax
(115
Ending balance, tax
Ending balance
(154
Three Months Ended June 30, 2025
(240
(204
(9
26
(172
58
(230
(195
Six Months Ended June 30, 2026
(183
(157
(137
(4
Six Months Ended June 30, 2025
(229
(210
(171
(1) Comprised entirely of interest rate derivative hedging activities.
(2) Comprised entirely of prior service cost.
The following tables present Virginia Power’s changes in AOCI (net of tax) and reclassifications out of AOCI by component:
Interest and related charges (benefit)
40
31
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.
Valuation Techniques
Unobservable Input
Fair Value(millions)
Range
Weighted -average(1)
Assets
Physical and financial forwards:
Natural gas(2)
Discounted cash flow
Market price (per Dth)(3)
(2) - 12
(2) - 3
Market price (per MWh)(3)
278
2 - 32
Electricity
288
30 - 124
59
Physical options:
Option model
375
2 - 20
3 - 20
Credit spread(4)
0% - 3%
Price volatility(5)
3% - 80%
20% - 74%
1,002
Liabilities
(9) - 32
34 -187
67
72
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)
Sell
Loss (gain)
Price volatility
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:
Level 1
Level 2
Level 3
Derivatives:
Commodity
121
1,126
419
Interest rate
51
Foreign currency exchange rate
Investments(1):
Equity securities:
U.S.
6,833
3,512
International
101
Fixed income:
Corporate debt instruments
139
Government securities
362
227
Private debt funds – liquid investments
237
Cash equivalents and other
7,208
9,173
3,712
599
4,659
320
392
389
461
111
87
642
49
208
257
197
6,215
3,154
168
418
74
492
332
6,847
400
7,889
3,582
274
4,064
230
245
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:
512
269
627
Total realized and unrealized gains (losses):
Included in earnings:
Operating revenue
(20
(30
240
118
244
116
Included in regulatory assets/liabilities
150
163
181
145
Settlements
(254
(153
(296
(149
(244
(143
(241
(126
Purchases
221
930
414
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:
CarryingAmount
EstimatedFair Value(1)
Long-term debt(2)
41,786
39,944
23,178
21,725
Securitization bonds(3)
970
974
Junior subordinated notes(2)
7,682
38,897
37,481
21,800
20,593
1,054
1,076
6,217
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 AssetsPresented in theConsolidatedBalance Sheet(1)
FinancialInstruments
CashCollateralReceived
NetAmounts
Commodity contracts:
Over-the-counter
789
755
406
372
Exchange
Interest rate contracts:
Foreign currency exchange rate contracts:
Total derivatives, subject to a master netting or similar arrangement
94
800
445
464
460
239
235
741
676
448
Gross Liabilities Presented in the Consolidated Balance Sheet(1)
Financial Instruments
Cash Collateral Paid
Net Amounts
91
57
295
246
455
173
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.
Current
Noncurrent
Natural Gas (bcf):
Fixed price(1)
Basis(1)
1,878
148
Electricity (MWh in millions):
Fixed price
85
Interest rate(2) (in millions)
900
8,471
7,400
Foreign currency exchange rate(2) (in millions)
Danish Krone
292 kr.
— kr.
Euro
€
128
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:
AOCI After-Tax
Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax
Maximum Term (months)
(13
402
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:
At June 30, 2026
Current derivatives not under cash flow hedge accounting
486
308
Current derivatives under cash flow hedge accounting
Total current derivatives(1)
226
Noncurrent derivatives not under cash flow hedge accounting
640
174
Noncurrent derivatives under cash flow hedge accounting
Total noncurrent derivatives(2)
689
Total derivatives
1,179
At December 31, 2025
172
184
182
623
958
(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.
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.
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)
Derivative type and location of gains (losses):
Interest rate(3)
(21
(72
(73
Amount of Gain (Loss) Recognized in Income on Derivatives(1)(2)
Derivatives not designated as hedging instruments
Commodity:
(203
275
105
233
137
261
Interest rate:
187
79
254
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:
AmortizedCost
Total Unrealized Gains
Total UnrealizedLosses
Allowance for CreditLosses
FairValue
Equity securities:(1)
1,081
5,658
6,736
596
2,961
3,554
191
Fixed income securities:(2)
Private debt funds(3)
2,199
2,227
1,260
Insurance contracts(4)
Cash equivalents and other(5)
4,075
5,836
(6)
2,222
3,054
1,107
5,052
6,157
602
2,620
3,220
2,143
1,213
3,994
5,174
2,177
2,689
The portion of unrealized gains and losses that relates to equity securities held within the Companies’ nuclear decommissioning trusts is summarized below:
Net gains (losses) recognized during the period
885
626
Less: Net (gains) losses recognized during the period on securities sold during the period
Unrealized gains (losses) recognized during the period on securities still held at period end(1)
545
631
312
472
346
470
281
347
164
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:
Due in one year or less
Due after one year through five years
568
349
Due after five years through ten years
Due after ten years
158
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.
Year to Date
Proceeds from sales
1,530
763
Realized gains(1)
Realized losses(1)
1,031
355
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.
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.
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
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
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.
Note 11. Regulatory Assets and Liabilities
Regulatory assets and liabilities include the following:
Regulatory assets:
Deferred cost of fuel used in electric generation(1)
1,209
Securitized cost of fuel used in electric generation(2)
133
Riders OSW and CE(3)
Other deferred rider costs for Virginia electric utility(4)
Ash pond and landfill closure costs(5)
Deferred nuclear refueling outage costs(6)
107
NND Project costs(7)
138
171
Regulatory assets-current
Unrecognized pension and other postretirement benefit costs(8)
510
527
287
526
338
Interest rate hedges(9)
165
AROs and related funding(10)
397
385
1,603
CCR remediation, ash pond and landfill closure costs(5)
3,093
2,868
2,530
2,510
391
779
868
797
775
Regulatory assets-noncurrent
Total regulatory assets
10,590
9,656
6,253
5,636
Regulatory liabilities:
Provision for future cost of removal and AROs(11)
Reserve for rate credits to electric utility customers(12)
Income taxes refundable through future rates(13)
110
Monetization of guarantee settlement(14)
Derivatives(15)
219
135
Regulatory liabilities-current
2,788
2,854
1,998
2,046
1,966
1,950
1,349
1,346
Nuclear decommissioning trust(16)
2,756
2,494
468
501
447
117
Overrecovered other postretirement benefit costs(17)
223
209
228
247
313
Regulatory liabilities-noncurrent
Total regulatory liabilities
10,031
9,614
7,302
6,904
41
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.
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
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
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
ApplicationDate
ApprovalDate
Rate Year Beginning
Total RevenueRequirement(millions)(1)
Increase (Decrease)from Previous(millions)
April 2026
Pending
January 2027
Rider CE(2)
October 2025
May 2026
280
March 2026
Rider DIST(3)
August 2025
June 2026
327
April 2027
430
119
April 2028
408
July 2026
September 2026
670
Rider RGGI(4)
March 2027
N/A
Rider T1(5)
1,539
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
Type of Line
Miles ofLines
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
230 kV
Construct new Golden-Mars transmission lines and related projects in Loudoun County, Virginia
March 2025
(2)
500-230 kV
515
Partial rebuild Chesterfield-Lanexa transmission lines in the Counties of Henrico, Charles City and New Kent, Virginia
September 2025
230-115 kV
Construct Morrisville-Wishing Star transmission lines and related projects in the Counties of Fauquier, Prince William and Loudoun, Virginia
February 2026
Rebuild Charlottesville-Gordonsville transmission lines and related projects in the County of Albermarle and the City of Charlottesville, Virginia
Construct Firehouse transmission lines, substation and related projects in the County of Loudoun, Virginia
Construct Aspen-Doubs and Goose Creek-Woodside transmission lines, rebuild Doubs-Goose Creek transmission line and related projects in the County of Loudoun, Virginia
500 kV
Construct new Allman Station switching station and related projects in the City of Fredericksburg, Virginia
Install underbuilt transmission lines on existing 500 kV Elmont-Ladysmith line support structures and related projects in the Counties of Hanover and Caroline, Virginia
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
$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.
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.
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:
Prepayments(1)
Other current assets(2)
1,045
Securities due within one year
Securitization bonds
978
1,063
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:
Other receivables
Other investments
Property, plant and equipment
9,234
8,799
Accumulated depreciation and amortization
Other deferred charges and other assets
9,775
9,122
Other current liabilities
Asset retirement obligations- noncurrent(1)
429
456
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’s short-term financing is primarily supported by its joint revolving credit facility.
47
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:
FacilityLimit
OutstandingCommercial Paper
OutstandingLetters of Credit
FacilityCapacity Available
Joint revolving credit facility(1)
7,000
2,087
4,909
Supplemental revolving credit facility(2)
8,000
5,909
In addition to the credit facilities mentioned above, Dominion Energy’s credit facilities and agreements also consist of the following:
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’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:
In addition to the credit facility mentioned above, Virginia Power’s credit facilities and agreements also consist of the following:
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.
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
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
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
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:
MaximumExposure
Commodity transactions(1)
3,162
Nuclear obligations(2)
Solar(3)
Other(4)
360
Total(5)(6)(7)
3,797
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
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
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:
Commodity purchases from affiliates
147
513
Services provided by affiliates(1)(2)
479
405
Services provided to affiliates
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
Service cost
Interest cost
215
Expected return on plan assets
(158
(169
(317
(338
(87
Amortization of prior service (credit) cost
Net periodic benefit (credit) cost
(31
(41
(66
(59
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
DominionEnergy
VirginiaPower
Regulated electric distribution
X
Regulated electric transmission
Regulated electric generation fleet(1)
Regulated electric generation fleet
Regulated gas distribution and storage
Contracted Energy(2)
Nonregulated electric generation fleet
In addition to the operating segments above, the Companies also report a Corporate and Other segment.
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:
The net expenses for specific items attributable to Dominion Energy’s operating segments in 2025 primarily related to the impact of the following items:
56
The following tables present segment information pertaining to Dominion Energy’s operations:
Corporateand Other
Adjustments &Eliminations
ConsolidatedTotal
(millions, unless otherwise noted)
Total revenue from external customers
3,410
876
256
(62
Intersegment revenue
337
(393
Total Operating Revenue
878
1,077
Purchased electric capacity(1)
Purchased gas(1)
Other operations and maintenance(1)(2)
169
1,258
(359
Depreciation and amortization(1)
417
Other taxes(1)
Total Operating Expenses
2,280
677
289
1,284
(379
73
248
Income tax expense (benefit)(1)
151
Equity in earnings (losses) of equity method investees(3)
Other income (expense)(3)
588
643
Interest income(3)
(50
Net Income (Loss) From Discontinued Operations Including Noncontrolling Interests
Noncontrolling Interests(3)
112
(123
Net Income (Loss) Attributable to Dominion Energy
(466
Investment in equity method investees(4)
Total assets (billions)
86.0
20.3
11.4
11.2
(7.0
121.9
2,710
833
292
(302
836
319
531
363
(295
933
141
1,765
630
222
399
371
409
(26
549
7,178
1,865
601
702
(799
7,186
1,870
557
2,436
423
188
1,257
1,598
(736
2,828
88
4,879
1,435
553
(775
520
504
(105
64
90
(64
1,340
(760
Capital expenditures
4,837
645
309
5,807
5,505
1,782
544
(616
5,506
1,787
552
657
366
1,090
767
(603
1,877
793
282
3,594
1,344
846
497
444
(112
243
(70
386
156
(102
5,233
561
6,226
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.
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:
The net expenses for specific items attributable to Virginia Power’s operating segment in 2025 primarily related to the impact of the following items:
The following tables present segment information pertaining to Virginia Power’s operations:
Corporate and Other
3,422
884
266
124
Net Income (Loss) Attributable to Virginia Power
84.6
603
7,187
1,449
144
4,839
1,259
(38
(90
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
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:
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 Operations—Dominion Energy
Presented below is a summary of Dominion Energy’s consolidated results:
$ Change
Second Quarter
(420
Diluted EPS
(0.51
(464
(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:
1,613
369
1,013
Impairment of assets and other charges
844
236
229
130
(98
Net income (loss) from discontinued operations including noncontrolling interests
(65
An analysis of Dominion Energy’s results of operations follows:
Operating revenue increased 18%, primarily reflecting:
These increases were partially offset by:
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.
Operating revenue increased 20%, primarily reflecting:
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:
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 Operations—Virginia Power
Presented below is a summary of Virginia Power’s consolidated results:
Net income attributable to Virginia Power
Net income increased 12%, primarily due to higher rider equity returns reflecting capital investments and the impacts of the 2025 Biennial Review.
Net income increased 20%, primarily due to higher rider equity returns reflecting capital investments and the impacts of the 2025 Biennial Review.
Presented below are selected amounts related to Virginia Power’s results of operations:
709
1,640
342
945
1,295
1,163
An analysis of Virginia Power’s results of operations follows:
Operating revenue increased 26%, primarily reflecting:
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.
Operating revenue increased 30%, primarily reflecting:
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.
Income tax expense increased 46%, primarily due to higher pre-tax income.
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:
EPS(1)
0.76
0.64
0.12
0.13
(0.01
0.03
0.05
(0.02
(521
(0.54
0.06
(0.60
Consolidated
1.53
1.30
0.23
0.26
0.31
(0.05
0.17
0.18
(658
(0.89
(0.14
(0.75
Presented below are selected operating statistics related to Dominion Energy Virginia’s operations:
% Change
Electricity delivered (million MWh)
24.7
23.7
51.2
49.1
Electricity supplied (million MWh):
Utility
Non-Jurisdictional
0.9
Degree days (electric distribution and utility service area):
Cooling
594
612
632
Heating
2,269
2,118
Average electric distribution customer accounts (thousands)
2,829
2,804
2,827
2,802
Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution:
Second Quarter2026 vs. 2025Increase (Decrease)
Year-to-Date2026 vs. 2025Increase (Decrease)
Weather
Customer usage and other factors
2025 Biennial Review impacts(1)
0.25
Rider equity return
0.09
0.19
Electric capacity
(0.04
(76
(0.09
Storm damage and restoration costs
Planned outage costs
Nuclear production tax credit
Salaries, wages and benefits & administrative costs
(0.06
Interest expense, net
0.01
Share dilution
Change in net income contribution
Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations:
5.6
5.5
10.9
10.8
Electricity supplied (million MWh)
5.9
5.8
11.5
11.3
Degree days (electric distribution service areas):
Gas distribution throughput (bcf):
Sales
Average distribution customer accounts (thousands):
Electric
829
Gas
484
471
469
Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution:
0.02
Customer-elected rate impacts
Base rate case & Natural Gas Rate Stabilization Act impacts
Capital cost rider
Presented below are selected operating statistics related to Contracted Energy’s operations:
4.2
9.1
8.9
Renewable natural gas supplied (million MMBtu)
0.5
Presented below, on an after-tax basis, are the key factors impacting Contracted Energy’s net income contribution:
Margin
Planned Millstone outages(1)
Unplanned Millstone outages(1)
(32
Renewable energy investment tax credits
Renewable energy production tax credits(2)
(0.03
Presented below are the Corporate and Other segment’s after-tax results:
Specific items attributable to operating segments
(504
(607
(600
Specific items attributable to Corporate and Other segment
Net income (expense) from specific items
(372
(483
(598
(27
(571
Corporate and other operations:
(165
(114
(51
(319
(223
(96
Equity method investments
Pension and other postretirement benefit plans
Corporate service company costs
(25
Net expense from corporate and other operations
(94
(162
(75
Total net income (expense)
EPS impact
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.
Analysis of Cash Flows
Presented below are selected amounts related to Dominion Energy’s cash flows:
Cash, restricted cash and equivalents at January 1
Cash flows provided by (used in):
Operating activities(1)
Investing activities
Financing activities
Net increase in cash, restricted cash and equivalents
Cash, restricted cash and equivalents at June 30
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.
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.
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
Stated Maturity
March
Senior notes
Public
1,300
4.950
2036
850
5.700
2056
June
825
5.350
6.150
(1)
500
6.250
Total issuances and borrowings
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:
Principal (1)
Debt scheduled to mature in 2026
Multiple
various
Early repurchases and redemptions
None
Total repayments, repurchases and redemptions
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
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 CreditExposure
CreditCollateral
Net CreditExposure
Investment grade(1)
Non-investment grade(2)
No external ratings:
Internally rated—investment grade(3)
352
Internally rated—non-investment grade(4)
Total(5)
845
832
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:
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:
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.
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
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.
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.
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.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
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:
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
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
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:
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
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:
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:
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
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
Purchases of Equity Securities
Period
Total Number ofShares (or Units)Purchased(1)
AveragePrice Paidper Share(or Unit)(2)
Total Numberof Shares (orUnits) Purchased as Part of Publicly Announced Plans or Programs
Maximum Number (orApproximate 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
6/1/26 - 6/30/26
64.61
2,230
63.47
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.
ITEM 6. EXHIBITS
Exhibit
Description
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).
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).
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).
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).
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).
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.
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).
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
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).
31.a
Certification by Chief Executive Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.b
Certification by Chief Financial Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
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).
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).
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).
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).
Condensed consolidated earnings statements (filed herewith).
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.
104
Cover Page Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.
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.
July 31, 2026
/s/ Gary G. Ratliff, Jr.
Gary G. Ratliff, Jr.
Vice President, Controller and
Chief Accounting Officer