UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-K

(Mark One)☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019

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 I.R.S. Employer

Identification Number

001-08489 DOMINION ENERGY, INC. 54-1229715

000-55337 VIRGINIA ELECTRIC AND POWER COMPANY 54-0418825

001-37591 DOMINION ENERGY GAS HOLDINGS, LLC 46-3639580

VIRGINIA(State or other jurisdiction of incorporation or organization)

120 TREDEGAR STREETRICHMOND, VIRGINIA

(Address of principal executive offices)

23219

(Zip Code)

 (804) 819-2000

(Registrants’ telephone number)   Securities registered pursuant to Section 12(b) of the Act:

Registrant TradingSymbol Title of Each Class

Name of Each Exchangeon Which Registered

DOMINION ENERGY, INC. D Common Stock, no par value New York Stock Exchange DRUA 2016 Series A 5.25% Enhanced Junior Subordinated Notes New York Stock Exchange

DOMINION ENERGY GASHOLDINGS, LLC

DCUE 2019 Series A Corporate Units2014 Series C 4.6% Senior Notes

New York Stock ExchangeNew York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:VIRGINIA ELECTRIC AND POWER COMPANY

Common Stock, no par valueDOMINION ENERGY GAS HOLDINGS, LLCLimited Liability Company Membership Interests

Indicate by check mark whether the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act.Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐ Dominion Energy Gas Holdings, LLC Yes ☒ No ☐Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.Dominion Energy, Inc. Yes ☐ No ☒ Virginia Electric and Power Company Yes ☐ No ☒ Dominion Energy Gas Holdings, LLC Yes ☐ No ☒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 ☐ Dominion Energy Gas Holdings, LLC 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 (§232.405of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐ Dominion Energy Gas Holdings, LLC Yes ☒ No ☐Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 theExchange Act.

Dominion Energy, Inc.Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐ Virginia Electric and Power Company

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐

Dominion Energy Gas Holdings, LLCLarge accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐

Emerging growth 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 financialaccounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act).Dominion Energy, Inc. Yes ☐ No ☒ Virginia Electric and Power Company Yes ☐ No ☒ Dominion Energy Gas Holdings, LLC Yes ☐ No ☒The aggregate market value of Dominion Energy, Inc. common stock held by non-affiliates of Dominion Energy was approximately $62.0 billion based on the closing price of

Dominion Energy’s common stock as reported on the New York Stock Exchange as of the last day of Dominion Energy’s most recently completed second fiscal quarter. DominionEnergy is the sole holder of Virginia Electric and Power Company common stock. At February 14, 2020, Dominion Energy had 838,000,325 shares of common stock outstanding andVirginia Power had 274,723 shares of common stock outstanding. Dominion Energy Questar Corporation, a wholly-owned subsidiary of Dominion Energy, Inc., holds all of themembership interests of Dominion Energy Gas Holdings, LLC.

DOCUMENT INCORPORATED BY REFERENCEPortions of Dominion Energy’s 2020 Proxy Statement are incorporated by reference in Part III.

This combined Form 10-K represents separate filings by Dominion Energy, Inc., Virginia Electric and Power Company and Dominion Energy Gas Holdings,LLC. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Virginia Electric and Power Company and DominionEnergy Gas Holdings, LLC make no representations as to the information relating to Dominion Energy, Inc.’s other operations.VIRGINIA ELECTRIC AND POWER COMPANY AND DOMINION ENERGY GAS HOLDINGS, LLC MEET THE CONDITIONS SET FORTH IN GENERALINSTRUCTION I(1)(a) AND (b) OF FORM 10-K AND ARE FILING THIS FORM 10-K UNDER THE REDUCED DISCLOSURE FORMAT.

Dominion Energy, Inc., Virginia Electric andPower Company and Dominion Energy Gas Holdings, LLCitemnumber

    Pagenumber

  Glossary of Terms   3     

Part i  1.   Business   81A.   Risk Factors   281B.   Unresolved Staff Comments   362.   Properties   373.   Legal Proceedings   424.   Mine Safety Disclosures   42

  Information about our Executive Officers   43     

Part ii  5.   Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities   446.   Selected Financial Data   457.   Management’s Discussion and Analysis of Financial Condition and Results of Operations   467A.   Quantitative and Qualitative Disclosures About Market Risk   668.   Financial Statements and Supplementary Data   699.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure   1969A.   Controls and Procedures   1969B.   Other Information   199     

Part iii  10.   Directors, Executive Officers and Corporate Governance   20011.   Executive Compensation   20012.   Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters   20013.   Certain Relationships and Related Transactions, and Director Independence   20014.   Principal Accountant Fees and Services   201     

Part iV  15.   Exhibits and Financial Statement Schedules   20216.   Form 10-K Summary   209 2

Glossary of Terms The following abbreviations or acronyms used in this Form 10-K are defined below:

abbreviation or acronym   Definition2016 Equity Units   Dominion Energy’s 2016 Series A Equity Units issued in August 2016, initially in the form of 2016 Series A Corporate

Units, consisting of a stock purchase contract and a 1/40 interest in RSNs issued by Dominion Energy2019 Equity Units   Dominion Energy’s 2019 Series A Equity Units issued in June 2019, initially in the form of 2019 Series A Corporate

Units, consisting of a stock purchase contract and a 1/10 interest in a share of the Series A Preferred Stock2017 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, 20172020 Proxy Statement   Dominion Energy 2020 Proxy Statement, File No.  001-08489ABO   Accumulated benefit obligationACE Rule   Affordable Clean Energy RuleAFUDC   Allowance for funds used during constructionAlign RNG   Align RNG, LLC, a joint venture between Dominion Energy and Smithfield Foods, Inc.AMI   Advanced Metering InfrastructureAOCI   Accumulated other comprehensive income (loss)ARO   Asset retirement obligationAtlantic Coast Pipeline   Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy, Duke and SouthernAtlantic Coast Pipeline Project   An approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina which will

be owned by Dominion Energy, Duke and Southern to be constructed and operated by DETIBACT   Best available control technologybcf   Billion cubic feetbcfe   Billion cubic feet equivalentBear Garden   A 590 MW combined-cycle, natural gas-fired power station in Buckingham County, VirginiaBlue Racer   Blue Racer Midstream, LLC, a joint venture between Caiman Energy II, LLC and FR BR Holdings, LLC effective

December 2018BP   BP Wind Energy North America Inc.Brookfield   Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management Inc.Brunswick County   A 1,376 MW combined-cycle, natural gas-fired power station in Brunswick County, VirginiaCAA   Clean Air ActCAISO   California ISOCAO   Chief Accounting OfficerCCR   Coal combustion residualCEA   Commodity Exchange ActCEO   Chief Executive OfficerCEP   Capital Expenditure Program, as established by House Bill 95, Ohio legislation enacted in 2011, deployed by East Ohio

to recover certain costs associated with capital investmentCERCLA   Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as SuperfundCFO   Chief Financial OfficerCGN Committee   Compensation, Governance and Nominating Committee of Dominion Energy’s Board of DirectorsCNG   Consolidated Natural Gas CompanyCO 2   Carbon dioxideColonial Trail West   A 142 MW utility-scale solar power station located in Surry County, VirginiaCompanies   Dominion Energy, Virginia Power and Dominion Energy Gas, collectivelyContracted Generation   Contracted Generation operating segmentCOO   Chief Operating OfficerCooling 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, asapplicable, and the average temperature for that day

Cove Point   Dominion Energy Cove Point LNG, LPCove Point LNG Facility   An LNG import/export and storage facility, including the Liquefaction Facility, located on the Chesapeake Bay in Lusby,

MarylandCove Point Pipeline   A 136 mile natural gas pipeline that connects the Cove Point LNG Facility to interstate natural gas pipelinesCPCN   Certificate of Public Convenience and NecessityCWA   Clean Water ActDCP   The legal entity, Dominion Cove Point, LLC (formerly known as Dominion Cove Point, Inc.), one or more of its

consolidated subsidiaries, or the entirety of Dominion Cove Point, LLC and its consolidated subsidiaries

3

abbreviation or acronym   DefinitionDECG   Dominion Energy Carolina Gas Transmission, LLCDECGS   Dominion Energy Carolina Gas Services, Inc.DEQPS   Dominion Energy Questar Pipeline Services, Inc.DES   Dominion Energy Services, Inc.DESC   The legal entity, Dominion Energy South Carolina, Inc. (formerly known as South Carolina Electric & Gas Company),

one or more of its consolidated entities or operating segment, or the entirety of Dominion Energy South Carolina, Inc.and its consolidated entities

DETI   Dominion Energy Transmission, Inc.DGI   Dominion Generation, Inc.DGP   Dominion Gathering and Processing, Inc.DMLPHCII   Dominion MLP Holding Company II, LLC (formerly known as Dominion MLP Holding Company II, Inc.)Dodd-Frank Act   The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010DOE   U.S. Department of EnergyDominion Energy   The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than Virginia Power and

Dominion Energy Gas) or operating segments, or the entirety of Dominion Energy, Inc. and its consolidatedsubsidiaries

Dominion Energy Direct ®   A dividend reinvestment and open enrollment direct stock purchase planDominion Energy Gas   The legal entity, Dominion Energy Gas Holdings, LLC, one or more of its consolidated subsidiaries or operating

segment, or the entirety of Dominion Energy Gas Holdings, LLC and its consolidated subsidiariesDominion Energy Gas

Restructuring  The acquisition of DCP and DMLPHCII from, and the disposition of East Ohio and DGP to, Dominion Energy by

Dominion Energy Gas on November 6, 2019Dominion Energy Midstream   The legal entity, Dominion Energy Midstream Partners, LP, one or more of its consolidated subsidiaries, or the entirety

of Dominion Energy Midstream Partners, LP and its consolidated subsidiariesDominion Energy Questar   The legal entity, Dominion Energy Questar Corporation, one or more of its consolidated subsidiaries (other than

Dominion Energy Gas, effective November 2019), or the entirety of Dominion Energy Questar Corporation and itsconsolidated subsidiaries

Dominion Energy QuestarCombination

  Dominion Energy’s acquisition of Dominion Energy Questar completed on September 16, 2016 pursuant to the terms ofthe agreement and plan of merger entered on January 31, 2016

Dominion Energy QuestarPipeline

  Dominion Energy Questar Pipeline, LLC, one or more of its consolidated subsidiaries, or the entirety of DominionEnergy Questar Pipeline, LLC and its consolidated subsidiaries

Dominion Energy SouthCarolina

  Dominion Energy South Carolina operating segment

Dominion Energy Virginia   Dominion Energy Virginia operating segmentDSM   Demand-side managementDth   DekathermDuke   The legal entity, Duke Energy Corporation, one or more of its consolidated subsidiaries, or the entirety of Duke Energy

Corporation and its consolidated subsidiariesEagle Solar   Eagle Solar, LLC, a wholly-owned subsidiary of DGIEast Ohio   The East Ohio Gas Company, doing business as Dominion Energy OhioEastern Market Access

Project  Project to provide 150,000 Dths/day of transportation service to help meet demand for natural gas for Washington Gas

Light Company, a local gas utility serving customers in D.C., Virginia and MarylandEnergy Choice   Program authorized by the Ohio Commission which provides energy customers with the ability to shop for energy

options from a group of suppliers certified by the Ohio CommissionEPA   U.S. Environmental Protection AgencyEPACT   Energy Policy Act of 2005EPS   Earnings per shareERISA   Employee Retirement Income Security Act of 1974ESAExcess Tax Benefits

  Endangered Species ActBenefits of tax deductions in excess of the compensation cost recognized for stock-based compensation

Export Customers   ST Cove Point, LLC, a joint venture of Sumitomo Corporation and Tokyo Gas Co., LTD., and GAIL Global (USA) LNG,LLC

Fairless   Fairless power stationFASB   Financial Accounting Standards BoardFERC   Federal Energy Regulatory CommissionFILOT   Fee in lieu of taxesFitch   Fitch Ratings Ltd.Four Brothers   Four Brothers Solar, LLC, a limited liability company owned by Dominion Energy and Four Brothers Holdings, LLC, a

subsidiary of GIP effective August 2018Fowler Ridge   Fowler I Holdings LLC, a wind-turbine facility joint venture with BP in Benton County, IndianaFTRs   Financial transmission rightsGAAP   U.S. generally accepted accounting principlesGal   GallonGas Distribution   Gas Distribution operating segmentGas Transmission & Storage   Gas Transmission & Storage operating segment

4

abbreviation or acronym   DefinitionGENCO   South Carolina Generating Company, Inc.GHG   Greenhouse gasGIP   The legal entity, Global Infrastructure Partners, one or more of its consolidated subsidiaries (including, effective August

2018, Four Brothers Holdings, LLC, Granite Mountain Renewables, LLC and Iron Springs Renewables, LLC) oroperating segments, or the entirety of Global Infrastructure Partners and its consolidated subsidiaries

Granite Mountain   Granite Mountain Holdings, LLC, a limited liability company owned by Dominion Energy and Granite MountainRenewables, LLC, a subsidiary of GIP effective August 2018

Green Mountain   Green Mountain Power CorporationGreenHat   GreenHat Energy, LLCGreensville County   A 1,588 MW combined-cycle, natural gas-fired power station in Greensville County, VirginiaGTSA   Virginia Grid Transformation and Security Act of 2018Heating 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 theaverage temperature for that day

Hope   Hope Gas, Inc., doing business as Dominion Energy West VirginiaIdaho Commission   Idaho Public Utilities CommissionIRCA   Intercompany revolving credit agreementIron Springs   Iron Springs Holdings, LLC, a limited liability company owned by Dominion Energy and Iron Springs Renewables, LLC,

a subsidiary of GIP effective August 2018Iroquois   Iroquois Gas Transmission System, L.P.IRS   Internal Revenue ServiceISO   Independent system operatorISO-NE   ISO New EnglandJuly 2016 hybrids   Dominion Energy’s 2016 Series A Enhanced Junior Subordinated Notes due 2076June 2006 hybrids   Dominion Energy’s 2006 Series A Enhanced Junior Subordinated Notes due 2066Kewaunee   Kewaunee nuclear power stationkV   KilovoltLIBOR   London Interbank Offered RateLIFO   Last-in-first-out inventory methodLiquefaction Facility   A natural gas export/liquefaction facility at the Cove Point LNG FacilityLNG   Liquefied natural gasLTIP   Long-term incentive programManchester   Manchester power stationMassachusetts Municipal   Massachusetts Municipal Wholesale Electric CompanyMATS   Utility Mercury and Air Toxics Standard Rulemcf   Thousand cubic feetmcfe   Thousand cubic feet equivalentMD&A   Management’s Discussion and Analysis of Financial Condition and Results of OperationsMGD   Million gallons a dayMillstone   Millstone nuclear power stationMillstone 2019 power

purchase agreements  Power purchase agreements with Eversource Energy and The United Illuminating Company for Millstone to provide

nine million MWh per year of electricity for ten yearsMoody’s   Moody’s Investors ServiceMtpa   Million metric tons per annumMW   MegawattMWh   Megawatt hourNatural 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 CarolinaNAV   Net asset valueNedPower   NedPower Mount Storm LLC, a wind-turbine facility joint venture between Dominion Energy and Shell WindEnergy, Inc.

in Grant County, West VirginiaNEIL   Nuclear Electric Insurance LimitedNERC   North American Electric Reliability CorporationNG   Collectively, North East Transmission Co., Inc. and National Grid IGTS Corp.NGL   Natural gas liquidNJNR   NJNR Pipeline CompanyNND 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 CarolinaNorth Anna   North Anna nuclear power stationNorth Carolina Commission   North Carolina Utilities CommissionNO X   Nitrogen oxideNRC   U.S. Nuclear Regulatory Commission

5

abbreviation or acronym   DefinitionNRG   The legal entity, NRG Energy, Inc., one or more of its consolidated subsidiaries (including, effective November 2016

through August 2018, Four Brothers Holdings, LLC, Granite Mountain Renewables, LLC and Iron SpringsRenewables, LLC) or operating segments, or the entirety of NRG Energy, Inc. and its consolidated subsidiaries

NSPS   New Source Performance StandardsNYSE   New York Stock ExchangeOctober 2014 hybrids   Dominion Energy’s 2014 Series A Enhanced Junior Subordinated Notes due 2054ODEC   Old Dominion Electric CooperativeOhio Commission   Public Utilities Commission of OhioOrder 1000   Order issued by FERC adopting requirements for electric transmission planning, cost allocation and developmentPHMSA   Pipeline and Hazardous Materials Safety AdministrationPIR   Pipeline Infrastructure Replacement program deployed by East OhioPJM   PJM Interconnection, L.L.C.ppb   Parts-per-billionPredecessor   Dominion Energy as the predecessor for accounting purposes for the period of Dominion Energy’s ownership of DCP

and DMLPHCII until the completion of the Dominion Energy Gas RestructuringPREP   Pipeline Replacement and Expansion Program, a program of replacing, upgrading and expanding natural gas utility

infrastructure deployed by HopePSD   Prevention of significant deteriorationPSNC   Public Service Company of North Carolina, Incorporated, doing business as Dominion Energy North CarolinaPURA   Connecticut’s Public Utility Regulatory AuthorityQuestar Gas   Questar Gas Company, doing business as Dominion Energy Utah, Dominion Energy Wyoming and Dominion Energy

IdahoRCC   Replacement Capital CovenantRegulation Act   Legislation effective July 1, 2007, that amended the Virginia Electric Utility Restructuring Act and fuel factor statute,

which legislation is also known as the Virginia Electric Utility Regulation Act, as amended in 2015 and 2018RGGI   Regional Greenhouse Gas InitiativeRICO   Racketeer Influenced and Corrupt Organizations ActRider B   A rate adjustment clause associated with the recovery of costs related to the conversion of three of Virginia Power’s

coal-fired power stations to biomassRider BW   A rate adjustment clause associated with the recovery of costs related to Brunswick CountyRider E   A rate adjustment clause associated with the recovery of costs related to certain capital projects at Virginia Power’s

electric generating stations to comply with federal and state environmental laws and regulationsRider GV   A rate adjustment clause associated with the recovery of costs related to Greensville CountyRider R   A rate adjustment clause associated with the recovery of costs related to Bear GardenRider S   A rate adjustment clause associated with the recovery of costs related to the Virginia City Hybrid Energy CenterRider 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 1Rider U   A rate adjustment clause associated with the recovery of costs of new underground distribution facilitiesRider US-2   A rate adjustment clause associated with the recovery of costs related to Woodland Solar, Scott Solar and Whitehouse

SolarRider US-3   A rate adjustment clause associated with the recovery of costs related to Colonial Trail West and Spring Grove 1Rider US-4   A rate adjustment clause associated with the recovery of costs related to Sadler SolarRider W   A rate adjustment clause associated with the recovery of costs related to Warren CountyRiders C1A, C2A and C3A   Rate adjustment clauses associated with the recovery of costs related to certain DSM programs approved in DSM

casesROE   Return on equityROIC   Return on invested capitalRSN   Remarketable subordinated noteRTEP   Regional transmission expansion planRTO   Regional transmission organizationSadler Solar   An approximately 100 MW proposed utility-scale solar power station located in Greensville County, VirginiaSAFSTOR   A method of nuclear decommissioning, as defined by the NRC, in which a nuclear facility is placed and maintained in a

condition that allows the facility to be safely stored and subsequently decontaminated to levels that permit release forunrestricted use

SAIDI   System Average Interruption Duration Index, metric used to measure electric service reliabilitySantee Cooper   South Carolina Public Service AuthoritySBL Holdco   SBL Holdco, LLC, a wholly-owned subsidiary of DGISCANA   The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries, or the entirety of SCANA

Corporation and its consolidated subsidiaries

6

abbreviation or acronym   DefinitionSCANA 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 SCANASCANA Merger Approval

Order  Final order issued by the South Carolina Commission on December 21, 2018 setting forth its approval of the SCANA

CombinationSCDHEC   South Carolina Department of Health and Environmental ControlSCDOR   South Carolina Department of RevenueScott Solar   A 17 MW utility-scale solar power station in Powhatan County, VirginiaSEC   U.S. Securities and Exchange CommissionSEMI   SCANA Energy Marketing, Inc.September 2006 hybrids   Dominion Energy’s 2006 Series B Enhanced Junior Subordinated Notes due 2066SERC   Southeast Electric Reliability CouncilSeries A Preferred Stock   Dominion Energy’s 1.75% Series A Cumulative Perpetual Convertible Preferred Stock, without par value, with a

liquidation preference of $1,000 per shareSeries B Preferred Stock   Dominion Energy’s 4.65% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, without par

value, with a liquidation preference of $1,000 per shareSO 2   Sulfur dioxideSouth Carolina Commission   Public Service Commission of South CarolinaSouthern   The legal entity, The Southern Company, one or more of its consolidated subsidiaries, or the entirety of The Southern

Company and its consolidated subsidiariesSpring Grove 1   An approximately 98 MW proposed utility-scale solar power station located in Surry County, VirginiaStandard & Poor’s   Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc.Summer   V.C. Summer nuclear power stationSunEdison   The legal entity, SunEdison, Inc., one or more of its consolidated subsidiaries, or the entirety of SunEdison, Inc. and its

consolidated subsidiariesSurry   Surry nuclear power stationTerra Nova Renewable

Partners  A partnership comprised primarily of institutional investors advised by J.P. Morgan Asset Management—Global Real

AssetsThree Cedars   Granite Mountain and Iron Springs, collectivelyTransCanada   The legal entity, TransCanada Corporation, one or more of its consolidated subsidiaries or operating segments, or the

entirety of TransCanada Corporation and its consolidated subsidiariesTSR   Total shareholder returnUtah Commission   Utah Public Service CommissionVDEQ   Virginia Department of Environmental QualityVEBA   Voluntary Employees’ Beneficiary AssociationVIE   Variable interest entityVirginia City Hybrid Energy

Center 

A 610 MW baseload carbon-capture compatible, clean coal powered electric generation facility in Wise County, VirginiaVirginia Commission   Virginia State Corporation CommissionVirginia 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 subsidiariesVOC   Volatile organic compoundsWarren County   A 1,350 MW combined-cycle, natural gas-fired power station in Warren County, VirginiaWECTEC   WECTEC Global Project Services, Inc. (formerly known as Stone & Webster, Inc.), a wholly-owned subsidiary of

WestinghouseWest Virginia Commission   Public Service Commission of West VirginiaWestinghouse   Westinghouse Electric Company LLCWexpro   The legal entity, Wexpro Company, one or more of its consolidated subsidiaries, or the entirety of Wexpro Company

and its consolidated subsidiariesWexpro Agreement   An agreement which sets forth the rights of Questar Gas to receive certain benefits from Wexpro’s operations, including

cost-of-service gasWexpro II Agreement   An agreement with the states of Utah and Wyoming modeled after the Wexpro Agreement that allows for the addition of

properties under the cost-of-service methodology for the benefit of Questar Gas customersWhitehouse Solar   A 20 MW utility-scale solar power station in Louisa County, VirginiaWhite River Hub   White River Hub, LLCWoodland Solar   A 19 MW utility-scale solar power station in Isle of Wight County, VirginiaWrangler   Wrangler Retail Gas Holdings, LLC, a partnership between Dominion Energy and Interstate Gas Supply Inc.Wyoming Commission   Wyoming Public Service Commission

7

Part I

8

Item 1. BusinessGENERALDominion Energy , headquartered in Richmond, Virginia and incorporatedin Virginia in 1983, is one of the nation’s largest producers and transportersof energy. Dominion Energy’s strategy is to be a leading sustainableprovider of electricity, natural gas and related services to customersprimarily in the eastern and Rocky Mountain regions of the U.S. As ofDecember 31, 2019, Dominion Energy’s portfolio of assets includesapproximately 30,700 MW of electric generating capacity, 10,400 miles ofelectric transmission lines, 85,000 miles of electric distribution lines,14,600 miles of natural gas transmission, gathering and storage pipelinesand 103,400 miles of gas distribution pipeline, exclusive of service lines.As of December 31, 2019, Dominion Energy serves more than 7 millionutility and retail energy customers and operates one of the nation’s largestunderground natural gas storage systems, with approximately 1 trillioncubic feet of storage capacity.

In January 2019, Dominion Energy completed the SCANA Combinationin a stock-for-stock merger valued at $13.4 billion. SCANA, whichoperates as a wholly-owned subsidiary of Dominion Energy, is primarilyengaged in the generation, transmission and distribution of electricity in thecentral, southern and southwestern portions of South Carolina and in thedistribution of natural gas in North Carolina and South Carolina. DESC, awholly-owned subsidiary of SCANA, is consolidated by Dominion Energyand remains an SEC registrant. However, its Form 10-K is filed separatelyand is not combined herein.

Dominion Energy continues to focus on expanding and improving itsregulated and long-term contracted electric and natural gas businesseswhile transitioning to a cleaner energy future. The $26 billion growthcapital plan for 2019 through 2023 includes a focus on upgrading theelectric system in Virginia through investments in additional renewablegeneration facilities, strategic undergrounding and energy conservationprograms. Renewable generation facilities are expected to includeinvestments in utility-scale solar and offshore wind projects. In addition,Dominion Energy is currently seeking, or intends to seek, licenseextensions for its regulated nuclear power stations in Virginia. Otherdrivers for the growth capital expenditure plan include agriculture-waste-to-energy initiatives, the replacement of gas distribution pipeline, theconstruction of infrastructure to handle the increase in natural gasproduction from the Marcellus and Utica Shale formations, includinginvesting in Atlantic Coast Pipeline which is focused on constructing anapproximately 600-mile natural gas pipeline running from West Virginiathrough Virginia to North Carolina, to increase natural gas supplies in theregion. Dominion Energy also plans to continue upgrading its gas andelectric transmission and distribution networks while also meetingenvironmental requirements and standards set by various regulatorybodies.

Over the past decade, Dominion Energy has transitioned to a moreregulated, less volatile earnings mix as evidenced by its capital investmentsin regulated infrastructure, including the SCANA Combination andDominion Energy Questar Combination, and in infrastructure with outputsold under long-term purchase agreements, as well as the divestiture ofinterests in certain merchant generating facilities and natural gas gatheringand processing investments. Dominion Energy expects approximately 95%of

earnings from its primary operating segments to come from regulated andlong-term contracted businesses. Dominion Energy’s nonregulatedoperations include merchant generation and natural gas retail energymarketing operations. Dominion Energy’s operations are conductedthrough various subsidiaries, including Virginia Power and DominionEnergy Gas.

Virginia Power , headquartered in Richmond, Virginia and incorporatedin Virginia in 1909 as a Virginia public service corporation, is a wholly-owned subsidiary of Dominion Energy and a regulated public utility thatgenerates, transmits and distributes electricity for sale in Virginia andNorth Carolina. In Virginia, Virginia Power conducts business under thename “Dominion Energy Virginia” and primarily serves retail customers.In North Carolina, it conducts business under the name “Dominion EnergyNorth Carolina” and serves retail customers located in the northeasternregion of the state, excluding certain municipalities. In addition, VirginiaPower sells and transmits electricity at wholesale prices to rural electriccooperatives, municipalities and into wholesale electricity markets. All ofVirginia Power’s stock is owned by Dominion Energy.

Dominion Energy Gas, a limited liability company formed in September2013, is a wholly-owned subsidiary of Dominion Energy and a holdingcompany. Following the Dominion Energy Gas Restructuring, DominionEnergy Gas serves as the intermediate parent company for DominionEnergy’s FERC-regulated interstate natural gas transmission pipeline andunderground storage systems in the eastern and Rocky Mountain regions ofthe U.S., as well as for the Cove Point LNG Facility. Dominion EnergyGas’ principal operating subsidiaries include DETI, DECG, DominionEnergy Questar Pipeline and a controlling 75% interest in Cove Point. Inaddition, Dominion Energy Gas holds a 50% noncontrolling partnershipinterest in Iroquois, a FERC-regulated interstate natural gas pipeline. All ofDominion Energy Gas’ membership interests are owned by DominionEnergy.

Amounts and information disclosed for Dominion Energy are inclusiveof Virginia Power and/or Dominion Energy Gas, where applicable.

EMPLOYEESAt December 31, 2019, Dominion Energy had approximately 19,100 full-time employees, of which approximately 5,400 are subject to collectivebargaining agreements, including approximately 6,000 full-time employeesat Virginia Power, of which approximately 2,500 are subject to collectivebargaining agreements and approximately 1,400 full-time employees atDominion Energy Gas, of which approximately 700 are subject tocollective bargaining agreements.

WHERE YOU CAN FIND MORE INFORMATION ABOUT THECOMPANIESThe Companies file their annual, quarterly and current reports, proxystatements and other information with the SEC. Their SEC filings areavailable to the public over the Internet at the SEC’s website athttp://www.sec.gov.

The Companies make their SEC filings available, free of charge,including the annual report on Form 10-K, quarterly

9

reports on Form 10-Q, current reports on Form 8-K and any amendments tothose reports, through Dominion Energy’s website,http://www.dominionenergy.com, as soon as reasonably practicable afterfiling or furnishing the material to the SEC. Information contained onDominion Energy’s website, including but not limited to reports mentionedin Environmental Strategy , is not incorporated by reference in this report.

ACQUISITIONS AND DISPOSITIONSThe following are significant acquisitions and divestitures by theCompanies during the last five years.

PENDING ACQUISITION OF INTEREST IN ATLANTIC COAST PIPELINE ANDPIVOTAL LNG, INC.In February 2020, Dominion Energy entered into agreements with Southernto acquire its 5% membership interest in Atlantic Coast Pipeline and its100% ownership interest in Pivotal LNG, Inc., for approximately $175million in aggregate, plus certain purchase price adjustments. See Note 9 tothe Consolidated Financial Statements for additional information.

ACQUISITION OF SCANAIn January 2019, Dominion Energy and SCANA completed astock-for-stock merger valued at $13.4 billion, inclusive of SCANA’soutstanding debt, which totaled $6.9 billion at closing. SCANA operates asa wholly-owned subsidiary of Dominion Energy. See Note 3 to theConsolidated Financial Statements for additional information.

PURCHASE OF DOMINION ENERGY MIDSTREAM UNITSIn January 2019, Dominion Energy acquired all outstanding partnershipinterests of Dominion Energy Midstream not owned by Dominion Energythrough the issuance of 22.5 million shares of Dominion Energy commonstock. See Note 20 to the Consolidated Financial Statements for additionalinformation.

DOMINION ENERGY GAS RESTRUCTURINGIn November 2019, Dominion Energy Gas finalized a restructuringwhereby Dominion Energy’s wholly-owned subsidiaries, DCP andDMLPHCII, were contributed to Dominion Energy Gas. In addition,Dominion Energy Gas’ wholly-owned subsidiaries, East Ohio and DGP,were distributed to Dominion Energy. This restructuring was accounted forby Dominion Energy Gas as a reorganization of entities under commoncontrol. See Note 3 to the Consolidated Financial Statements for additionalinformation.

SALE OF INTEREST IN COVE POINTIn December 2019, Dominion Energy completed the sale of a 25%noncontrolling interest in Cove Point to Brookfield in exchange for cashconsideration of $2.1 billion, subject to working capital adjustments. SeeNote 3 to the Consolidated Financial Statements for additional information.

ACQUISITION OF INTEREST IN WRANGLERIn December 2019, Dominion Energy acquired a 20% noncontrollinginterest in Wrangler, a partnership with Interstate Gas Supply, Inc., alongwith $301 million in cash as part of its initial contribution of certain retailenergy marketing operations. See Note 9 to the Consolidated FinancialStatements for additional information.

SALE OF CERTAIN MERCHANT GENERATION FACILITIESIn December 2018, Dominion Energy completed the sale of Fairless andManchester for total consideration of $1.2 billion, subject to customaryclosing adjustments. See Note 10 to the Consolidated Financial Statementsfor additional information.

SALE OF INTEREST IN BLUE RACERIn December 2018, Dominion Energy completed the sale of its 50% limitedpartner interest in Blue Racer for total consideration of $1.2 billion. Inaddition, the purchaser agreed to pay additional consideration contingentupon the achievement of certain financial performance milestones of BlueRacer from 2019 through 2021. See Note 9 to the Consolidated FinancialStatements for additional information.

ACQUISITION OF DOMINION ENERGY QUESTARIn September 2016, Dominion Energy completed the Dominion EnergyQuestar Combination for total consideration of $4.4 billion and DominionEnergy Questar became a wholly-owned subsidiary of Dominion Energy.

ACQUISITION OF WHOLLY-OWNED MERCHANT SOLAR PROJECTSIn 2019, Dominion Energy completed the acquisition of various merchantsolar projects in North Carolina, South Carolina and Virginia. Theseprojects are expected to cost a total of approximately $425 million onceconstructed, including the initial acquisition cost, and generateapproximately 241 MW combined.

Throughout 2017, Dominion Energy completed the acquisition of variousmerchant solar projects in California, North Carolina and Virginia for$356 million. The projects cost $541 million to construct, including theinitial acquisition cost, and generate 259 MW.

Throughout 2016, Dominion Energy completed the acquisition of variousmerchant solar projects in North Carolina, South Carolina and Virginia for$32 million. The projects cost $421 million to construct, including theinitial acquisition cost, and generate 221 MW.

Throughout 2015, Dominion Energy completed the acquisition of variousmerchant solar projects in California and Virginia for $381 million. Theprojects cost $588 million to construct, including the initial acquisitioncost, and generate 182 MW.

See Note 3 and Note 10 to the Consolidated Financial Statements foradditional information.

ACQUISITION OF VIRGINIA POWER SOLAR PROJECTSIn 2019, Virginia Power entered into agreements to acquire various solardevelopment projects in Virginia. Four of these projects closed in 2019 andthe fifth closed in January 2020 with a total expected cost of approximately$765 million once constructed, including initial acquisition costs, and willgenerate approximately 448 MW combined.

In 2018, Virginia Power entered into agreements to acquire various solardevelopment projects in North Carolina and Virginia. These projects closedin 2019 with a total cost of $297 million, including initial acquisition costs,and generate 175 MW combined.

In 2017, Virginia Power entered into agreements to acquire various solardevelopment projects in North Carolina. The projects closed in 2018 and2019 with a total cost of $282 million, including initial acquisition costs,and generate 155 MW combined.

10

See Note 10 to the Consolidated Financial Statements for additionalinformation.

SALE OF CERTAIN RETAIL ENERGY MARKETING ASSETSIn October 2017, Dominion Energy entered into an agreement to sellcertain assets associated with its nonregulated retail energy marketingoperations for total consideration of $143 million, subject to customaryapprovals and certain adjustments. In December 2017, the first phase of theagreement closed for $79 million. In October 2018, the second phase of theagreement closed for $63 million. Pursuant to the agreement, DominionEnergy entered into a commission agreement with the buyer upon the firstclosing in December 2017, under which the buyer will pay a commission inconnection with the right to use Dominion Energy’s brand in marketingmaterials and other services over a ten-year term. See Note 10 to theConsolidated Financial Statements for additional information.

ASSIGNMENT OF TOWER RENTAL PORTFOLIOVirginia Power rents space on certain of its electric transmission towers tovarious wireless carriers for communications antennas and otherequipment. In March 2017, Virginia Power sold its rental portfolio toVertical Bridge Towers II, LLC for $91 million in cash. See Note 10 to theConsolidated Financial Statements for additional information.

ACQUISITION OF NON-WHOLLY-OWNED MERCHANT SOLAR PROJECTSIn 2015, Dominion Energy acquired 50% of the units in Four Brothers andThree Cedars from SunEdison for $107 million. In November 2016, NRGacquired the 50% of units in Four Brothers and Three Cedars previouslyheld by SunEdison. In August 2018, NRG’s ownership in Four Brothersand Three Cedars was transferred to GIP. The facilities began commercialoperations in the third quarter of 2016, with generating capacity of 530MW, at a cost of $1.1 billion.

SALE OF INTEREST IN MERCHANT SOLAR PROJECTSIn September 2015, Dominion Energy signed an agreement to sell anoncontrolling interest (consisting of 33% of the equity interests) in all ofits then wholly-owned merchant solar projects, 24 solar projects totaling425 MW, to SunEdison. In December 2015, the sale of interest in 15 of thesolar projects closed for $184 million with the sale of interest in theremaining projects completed in January 2016 for $117 million. Uponclosing, SunEdison sold its interest in these projects to Terra NovaRenewable Partners.

DOMINION ENERGY MIDSTREAM ACQUISITION OF INTEREST IN IROQUOISIn September 2015, Dominion Energy Midstream acquired from NG andNJNR a 25.93% noncontrolling partnership interest in Iroquois. Theinvestment was recorded at $216 million based on the value of DominionEnergy Midstream’s common units at closing. The common units issued toNG and NJNR have been reflected as noncontrolling interest in DominionEnergy and Dominion Energy Gas’ Consolidated Financial Statements.

ACQUISITION OF DECGIn January 2015, Dominion Energy completed the acquisition of 100% ofthe equity interests of DECG from SCANA for $497 million in cash, asadjusted for working capital.

ASSIGNMENTS OF SHALE DEVELOPMENT RIGHTSIn December 2013, Dominion Energy Gas closed on agreements withnatural gas producers to convey over time approximately 100,000 acres ofMarcellus Shale development rights underneath several natural gas storagefields. The agreements provided for payments to Dominion Energy Gas,subject to customary adjustments, of up to approximately $200 millionover a period of nine years, and an overriding royalty interest in gasproduced from that acreage. In March 2015, Dominion Energy Gas and anatural gas producer closed on an amendment to a December 2013agreement, which included the immediate conveyance of approximately9,000 acres of Marcellus Shale development rights and a two-yearextension of the term of the original agreement. The conveyance ofdevelopment rights resulted in the recognition of $43 million of previouslydeferred revenue. In April 2016, Dominion Energy Gas and the natural gasproducer closed on an amendment to the agreement, which included theimmediate conveyance of a 32% partial interest in the remainingapproximately 70,000 acres. This conveyance resulted in the recognition ofthe remaining $35 million of previously deferred revenue. In August 2017,Dominion Energy Gas and a natural gas producer signed an amendment tothe agreement, which included the finalization of contractual matters onprevious conveyances, the conveyance of Dominion Energy Gas’remaining 68% interest in approximately 70,000 acres and the eliminationof Dominion Energy Gas’ overriding royalty interest in gas produced fromall acreage. As a result of this amendment, Dominion Energy Gas receivedtotal consideration of $130 million, with $65 million received in November2017 and $65 million received in September 2018 in connection with thefinal conveyance.

In March 2015, Dominion Energy Gas conveyed to a natural gasproducer approximately 11,000 acres of Marcellus Shale developmentrights underneath one of its natural gas storage fields and received proceedsof $27 million and an overriding royalty interest in gas produced from theacreage.

In September 2015, Dominion Energy Gas closed on an agreement with anatural gas producer to convey approximately 16,000 acres of Utica andPoint Pleasant Shale development rights underneath one of its natural gasstorage fields. The agreement provided for a payment to Dominion EnergyGas, subject to customary adjustments, of $52 million and an overridingroyalty interest in gas produced from the acreage.

In November 2014, Dominion Energy Gas closed on an agreement with anatural gas producer to convey over time approximately 24,000 acres ofMarcellus Shale development rights underneath one of its natural gasstorage fields. The agreement provided for payments to Dominion EnergyGas, subject to customary adjustments, of approximately $120 million overa period of four years, and an overriding royalty interest in gas producedfrom the acreage. In January 2018, Dominion Energy Gas and the naturalgas producer closed on an amendment to the agreement, which included theconveyance of Dominion Energy Gas’ remaining 50% interest inapproximately 18,000 acres and the elimination of Dominion Energy Gas’overriding royalty interest in gas produced from all acreage for proceeds of$28 million.

11

See Note 10 to the Consolidated Financial Statements for additionalinformation on certain of these sales of Marcellus and Utica acreage.

OPERATING SEGMENTSIn December 2019, Dominion Energy strategically realigned its segmentswhich resulted in the formation of five primary operating segments:Dominion Energy Virginia, Gas Transmission & Storage, Gas Distribution,Dominion Energy South Carolina and Contracted Generation. DominionEnergy also reports a Corporate and Other segment, which includes itscorporate, service companies and other functions (including unallocateddebt). In addition, Corporate and Other includes specific items attributableto Dominion Energy’s other operating segments that are not included inprofit measures evaluated by executive management in assessing thesegments’ performance or in allocating resources.

Virginia Power manages its daily operations through its primaryoperating segment: Dominion Energy Virginia. It also reports a Corporateand Other segment that primarily includes specific items attributable to itsoperating segments that are not included in profit measures evaluated byexecutive management in assessing the segment’s performance or inallocating resources.

Dominion Energy Gas manages its daily operations through its primaryoperating segment: Gas Transmission & Storage. It also reports aCorporate and Other segment that primarily includes specific itemsattributable to its operating segment that are not included in profit measuresevaluated by executive management in assessing the segment’sperformance or in allocating resources and the effect of certain itemsrecorded at Dominion Energy Gas as a result of Dominion Energy’s basisin the net assets contributed.

While daily operations are managed through the operating segmentspreviously discussed, assets remain wholly-owned by the Companies andtheir respective legal subsidiaries.

A description of the operations included in the Companies’ primaryoperating segments is as follows:

Primary Operating Segment  Description of Operations  

DominionEnergy   

VirginiaPower   

Dominion Energy Gas 

Dominion EnergyVirginia  Regulated electric distribution  

X   X

   Regulated electric transmission   X   X    Regulated electric generation fleet (1)   X   X  

GasTransmission &Storage

 Regulated gas transmission and storage

(2)

  X     X

 LNG terminalling and storage   X     X  Nonregulated retail energy marketing   X    

Gas Distribution  Regulated gas distribution and storage (3)   X     Dominion EnergySouth Carolina  Regulated electric distribution  

X  

   Regulated electric transmission   X      Regulated electric generation fleet   X      Regulated gas distribution and storage   X    

ContractedGeneration  Merchant electric generation fleet  

X  

  (1) Includes Virginia Power’s nonjurisdictional generation operations. (2) Includes gathering and processing activities. (3) Includes Wexpro’s natural gas development and production operations. Dominion Energy VirginiaThe Dominion Energy Virginia Operating Segment is substantiallycomposed of Virginia Power’s regulated electric transmission, distribution(including customer service) and generation (regulated electric utility andits related energy supply) operations, which serve approximately2.6 million residential, commercial, industrial and governmental customersin Virginia and North Carolina.

Virginia Power’s growth capital plan includes spending approximately$16 billion from 2019 through 2023 to upgrade or add new transmissionlines, distribution lines, substations, and other facilities, as well as maintainexisting and construct new generation capacity to meet growing electricitydemand within its service territory in order to maintain reliability andregulatory compliance. The proposed infrastructure projects and investmentcommitments are intended to address both continued customer growth andincreases in electricity consumption which are primarily driven by new andlarger data center customers, as well as support its Subsequent LicenseRenewal projects as it is seeking 20-year license extensions for theregulated nuclear fleet in Virginia. See Properties and EnvironmentalStrategy for additional information on this and other utility projects.

Virginia Power has also created a ten-year plan to transform its electricgrid into a smarter, stronger and greener grid. This plan will address thestructural limitations of Virginia Power’s distribution grid in a systematicmanner in order to recognize and

12

accommodate fundamental changes and requirements in the energyindustry. The objective is to address both customer and system needs by(i) achieving even higher levels of reliability and resiliency against naturaland man-made threats, (ii) leveraging technology to enhance the customerexperience and improve the operation of the system and (iii) safely andeffectively integrating new utility-scale renewable generation and storageas well as customer–level distributed energy resources such as rooftop solarand battery storage. In 2019, the Virginia Commission approved a portionof this plan.

Revenue provided by electric distribution and generation operations isbased primarily on rates established by the Virginia and North CarolinaCommissions. Approximately 84% of revenue comes from serving Virginiajurisdictional customers. Base rates for the Virginia jurisdiction are setusing a modified cost-of-service rate model, and are generally designed toallow an opportunity to recover the cost of providing utility service andearn a reasonable return on investments used to provide that service.Variability in earnings is driven primarily by changes in rates, weather,customer growth and other factors impacting consumption such as theeconomy and energy conservation, in addition to operating andmaintenance expenditures. Electric operations continue to focus onimproving service and experience levels while striving to reduce costs andlink investments to operational results. SAIDI performance results,excluding major events, were 138 minutes for the three-year averageending 2019, up from the previous three-year average of 134 minutes. Thisincrease is primarily due to increased storm activity.

Earnings may reflect variations in the timing or nature of expenses ascompared to those contemplated in current rates, such as labor and benefitcosts, capacity expenses, the timing, duration and costs of scheduled andunscheduled outages as well as the customer’s ability to choose ageneration service provider. The cost of fuel and purchased power isgenerally collected through fuel cost-recovery mechanisms established byregulators and does not materially impact net income. The cost of newgeneration facilities is generally recovered through rate adjustment clausesin Virginia. Variability in earnings from rate adjustment clauses reflectschanges in the authorized ROE and the carrying amount of these facilities,which are largely driven by the timing and amount of capital investments,as well as depreciation. See Note 13 to the Consolidated FinancialStatements for additional information.

Revenue provided by Virginia Power’s electric transmission operations isbased primarily on rates approved by FERC. The profitability of thisbusiness is dependent on its ability, through the rates it is permitted tocharge, to recover costs and earn a reasonable ROIC. Variability inearnings primarily results from changes in rates and the timing of propertyadditions, retirements and depreciation.

Virginia Power is a member of PJM, an RTO, and its electrictransmission facilities are integrated into PJM wholesale electricitymarkets. Consistent with the increased authority given to NERC byEPACT, Virginia Power’s electric transmission operations are committedto meeting NERC standards, modernizing its infrastructure and maintainingsuperior system reliability.

COMPETITIONThere is no competition for electric distribution service within VirginiaPower’s service territory in Virginia and North Carolina

and no such competition is currently permitted. Historically, since itselectric transmission facilities are integrated into PJM and electrictransmission services are administered by PJM, there was no competitionin relation to transmission service provided to customers within the PJMregion. However, competition from non-incumbent PJM transmissionowners for development, construction and ownership of certaintransmission facilities in Virginia Power’s service territory is permittedpursuant to Order 1000, subject to state and local siting and permittingapprovals. This could result in additional competition to build and owntransmission infrastructure in Virginia Power’s service area in the futureand could allow Dominion Energy to seek opportunities to build and ownfacilities in other service territories. Additionally, there is somecompetition for Virginia Power’s generation operations for Virginiajurisdictional electric utility customers that meet certain size requirementsor that seek to purchase 100% renewable energy from competitivesuppliers. See Electric under State Regulations in Regulation for moreinformation. Currently, North Carolina does not offer retail choice toelectric customers.

Virginia Power’s non-jurisdictional operations are not currently subjectto significant competition as the output from these facilities is primarilysold under long-term power purchase agreements with terms generallyranging from 16 to 25 years. However, in the future, such operations maycompete with other power generation facilities to serve certain large-scalecustomers after the power purchase agreements expire.

REGULATIONVirginia Power’s electric distribution and generation operations, includingthe rates it may charge to jurisdictional customers, as well as wholesaleelectric transmission rates, tariffs and terms of service, are subject toregulation by the Virginia and North Carolina Commissions as well asFERC, the NRC, the EPA, the DOE and the Army Corps of Engineers. SeeState Regulations and Federal Regulations in Regulation, Future Issuesand Other Matters in Item 7 MD&A and Notes 13 and 23 to theConsolidated Financial Statements for additional information.

PROPERTIESFor a description of existing facilities see Item 2. Properties.

As a part of PJM’s RTEP process, PJM authorized the following materialreliability projects (including Virginia Power’s estimated cost): • Mt. Storm-to-Valley ($290 million); • Gainesville-to-Haymarket ($170 million); • Idylwood -to-Tysons ($125 million); • Glebe substation and North Potomac Yard terminal stationunderground ($125 million);

• Remington/Gordonsville/Pratts Area Improvement (includingRemington-to-Gordonsville, and new Gordonsville substationtransformer) ($115 million);

• Idylwood substation ($105 million); • Harmony Village-to-White Stone ($105 million); • Elmont-to-Ladysmith ($90 million); • Lanexa-to-Northern Neck ($90 million); • Loudoun-to-Ox ($70 million); • Mt. Storm substation ($70 million); • Bristers-to-Chancellor ($65 million); and • Dooms-to-Valley ($65 million).

13

Virginia Power is investing in transmission substation physical securityand expects to invest an additional $125 million to $175 million through2024 to strengthen its electrical system to better protect critical equipment,enhance its spare equipment process and create multiple levels of security.

Virginia legislation provides for the recovery of costs, subject toapproval by the Virginia Commission, for Virginia Power to moveapproximately 4,000 miles of electric distribution lines underground. Theprogram is designed to reduce restoration outage time by moving VirginiaPower’s most outage-prone overhead distribution lines underground, has anannual investment cap of approximately $175 million and is expected to becompleted by 2028. The Virginia Commission has approved four phases ofthe program encompassing approximately 1,350 miles of converted linesand $545 million in capital spending (with $523 million recoverablethrough Rider U).

Virginia Power is developing, financing and constructing new generationcapacity to meet growing electricity demand within its service territory.Significant projects under construction or development are set forth below:• Virginia Power plans to acquire or construct certain solar facilities in

Virginia and North Carolina. See Notes 10 and 13 to the ConsolidatedFinancial Statements for more information.

• Virginia Power continues to consider the construction of a third nuclearunit at a site located at North Anna. See Future Issues and OtherMatters in Item 7 for more information on this project.

• Virginia Power is considering the construction of an approximately$2 billion hydroelectric pumped storage facility in Southwest Virginia.

• Virginia Power has announced an approximately $400 million project toreplace approximately 1,500 diesel buses with electric buses at schooldistricts in Virginia by 2025.

• In November 2018, Virginia Power received approval from the VirginiaCommission for its petition seeking a prudency determination asprovided in the GTSA with respect to the proposed Coastal VirginiaOffshore Wind Pilot project, consisting of two 6 MW wind turbinegenerators located approximately 27 miles off the coast of VirginiaBeach, Virginia in federal waters, and for a CPCN, for the generationtie line connecting the generators to shore. This project is expected tocost approximately $300 million and to be placed into service by theend of 2020.

• In September 2019, Virginia Power filed an application with PJM forthe Coastal Virginia Offshore Wind Commercial project to interconnect2,640 MW of wind energy between 2024 and 2026 off the coast ofVirginia as an expansion of the Coastal Virginia Offshore Wind Pilotproject, expected to increase the total cost of the project by up toapproximately $8 billion.

• Virginia Power is considering the construction of simple cyclecombustion turbines in Virginia. These projects are expected to beplaced in service beginning 2023.

See Note 13 to the Consolidated Financial Statements for more

information.

SOURCES OF ENERGY SUPPLYVirginia Power uses a variety of fuels to power its electric generation fleetand purchases power for utility system load requirements and to satisfyphysical forward sale requirements. Some of these agreements have fixedcommitments and are included as

contractual obligations in Future Cash Payments for ContractualObligations and Planned Capital Expenditures in Item 7. MD&A.

Presented below is a summary of Virginia Power’s actual system outputby energy source:

Source   2019   2018    2017                        

Natural gas   41%    33%    32%Nuclear (1)   29     29      32 Purchased power, net   17     19      14 Coal (2)   8     13      17 Renewable/hydro (3)   5     5      5 Oil   —     1      — Total   100%   100%   100% (1) Excludes ODEC’s 11.6% ownership interest in North Anna. (2) Excludes ODEC’s 50.0% ownership interest in the Clover power station. (3) Includes solar and biomass. Nuclear Fuel —Virginia Power primarily utilizes long-term contracts tosupport its nuclear fuel requirements. Worldwide market conditions arecontinuously evaluated to ensure a range of supply options at reasonableprices which are dependent on the market environment. Currentagreements, inventories and spot market availability are expected tosupport current and planned fuel supply needs. Additional fuel is purchasedas required to ensure optimal cost and inventory levels.

Fossil Fuel —Virginia Power primarily utilizes natural gas and coal in itsfossil fuel plants. All recent fossil fuel plant construction involves naturalgas generation.

Virginia Power’s natural gas and oil supply is obtained from varioussources including purchases from major and independent producers in theMid-Continent and Gulf Coast regions, purchases from local producers inthe Appalachian area and Marcellus and Utica regions, purchases from gasmarketers and withdrawals from underground storage fields owned byDominion Energy or third parties. Virginia Power manages a portfolio ofnatural gas transportation contracts (capacity) that provides for reliablenatural gas deliveries to its gas turbine fleet, while minimizing costs.

Virginia Power’s coal supply is obtained through long-term contracts andshort-term spot agreements from domestic suppliers.

Biomass— Virginia Power’s biomass supply is obtained through long-term contracts and short-term spot agreements from local suppliers.

Purchased Power —Virginia Power purchases electricity from the PJMspot market and through power purchase agreements with other suppliers toprovide for utility system load requirements.

SEASONALITYVirginia Power’s earnings vary seasonally as a result of the impact ofchanges in temperature, the impact of storms and other catastrophicweather events, and the availability of alternative sources for heating ondemand by residential and commercial customers. Generally, the demandfor electricity peaks during the summer and winter months to meet coolingand heating needs, respectively. An increase in heating degree days forVirginia Power’s electric utility-related operations does not produce thesame increase in revenue as an increase in cooling degree days, due toseasonal pricing differentials and because alternative heating sources aremore readily available.

NUCLEAR DECOMMISSIONINGVirginia Power has a total of four licensed, operating nuclear reactors atSurry and North Anna in Virginia.

14

Decommissioning involves the decontamination and removal ofradioactive contaminants from a nuclear power station once operationshave ceased, in accordance with standards established by the NRC.Amounts collected from ratepayers are placed into trusts and are investedto fund the expected future costs of decommissioning the Surry and NorthAnna units.

Virginia Power believes that the decommissioning funds and theirexpected earnings for the Surry and North Anna units will be sufficient tocover expected decommissioning costs, particularly when combined withfuture ratepayer collections and contributions to these decommissioningtrusts, if such future collections and contributions are required. This reflectsthe long-term investment horizon, since the units will not bedecommissioned for decades, and a positive long-term outlook for trustfund investment returns. Virginia Power will continue to monitor thesetrusts to ensure they meet the NRC minimum financial assurancerequirements, which may include, if needed, the use of parent companyguarantees, surety bonding or other financial instruments recognized by theNRC.

The estimated cost to decommission Virginia Power’s four nuclear unitsis reflected in the table below and is primarily based upon site-specificstudies completed in 2019. These cost studies are generally completedevery four to five years. The current cost estimates assumedecommissioning activities will begin shortly after cessation of operations,which will occur when the operating licenses expire.

Under the current operating licenses, Virginia Power is scheduled todecommission the Surry and North Anna units during the period 2032 to2078. NRC regulations allow licensees to apply for extension of anoperating license in up to 20-year increments. In 2019, Virginia Powerapplied for renewal of its operating licenses for an additional 20 years forthe two nuclear units at Surry. Under these renewal applications, the twonuclear units will be allowed to generate electricity through 2052 and 2053,if approved. Virginia Power expects to submit a license extensionapplication for the two units at North Anna in 2020. Between the four units,Virginia Power estimates that it could spend approximately $3 billion to$4 billion over the next several years on the relicensing process. Theexisting regulatory framework in Virginia provides rate recoverymechanisms for such costs. The most recent site-specific study completedfor Surry and North Anna was performed in 2019.

The estimated decommissioning costs, funds in trust and current licenseexpiration dates for Surry and North Anna are shown in the followingtable:

 

NRClicense

expirationyear   

Most recent cost 

estimate (2019 

dollars) (1)   

Funds in trusts at 

December 31,2019   

2019 contributions

to trusts (dollars in millions)            

                               

Surry                    Unit 1   2032   $ 803   $ 815   $ — Unit 2   2033   794   803   —

                               

North Anna         Unit 1 (2)   2038   720   651   — Unit 2 (2)   2040   724   612   —

Total     $3,041   $2,881   $—

(1) The cost estimates shown above reflect reductions for the expected future recovery ofcertain spent fuel costs based on Virginia Power’s contracts with the DOE fordisposal of spent nuclear fuel consistent with the reductions reflected in VirginiaPower’s nuclear decommissioning AROs and includes the expectation that 20-yearlicense extensions are approved for all units.

(2) North Anna is jointly owned by Virginia Power (88.4%) and ODEC (11.6%).However, Virginia Power is responsible for 89.26% of the decommissioningobligation. Amounts reflect 89.26% of the decommissioning cost for both of NorthAnna’s units.

Also see Notes 9, 14 and 23 to the Consolidated Financial Statements for

further information about nuclear decommissioning trust investments,AROs and nuclear decommissioning, respectively.

Gas Transmission & storageThe Gas Transmission & Storage Operating Segment of Dominion EnergyGas includes FERC regulated interstate natural gas transmission pipelineand underground storage systems in the eastern and Rocky Mountainregions of the U.S. (primarily through DETI, DECG and Dominion EnergyQuestar Pipeline), LNG import/export and storage (through its 75%controlling interest in Cove Point) as well as a 50% noncontrollingpartnership interest in Iroquois. See Investments below for additionalinformation regarding the Iroquois investment.

The Gas Transmission & Storage Operating Segment of DominionEnergy also includes nonregulated retail natural gas marketing,development of renewable natural gas and LNG infrastructure and itsinvestments in Atlantic Coast Pipeline, Align RNG and Wrangler. SeeInvestments below for additional information regarding the Atlantic CoastPipeline, Align RNG and Wrangler investments.

Gas Transmission & Storage’s growth capital plan includes spendingapproximately $4 billion from 2019 through 2023 to upgrade existing oradd new infrastructure to meet growing energy needs within its serviceterritory and maintain reliability. Demand for natural gas is expected tocontinue to grow as initiatives to transition to gas from more carbon-intensive fuels are implemented. This plan includes Dominion Energy’sportion of spending for the Atlantic Coast Pipeline Project.

Earnings for the Gas Transmission & Storage Operating Segment ofDominion Energy and Dominion Energy Gas primarily result from ratesestablished by FERC. Approximately 94% of Dominion Energy Gas’transmission capacity is subscribed including 91% under long-termcontracts (two years or greater) and 3% on a year-to-year basis. DominionEnergy Gas’ storage services are 100% subscribed with long-termcontracts. Revenues derived from Dominion Energy Gas’ pipelineoperations are primarily from reservation charges for firm transportationand storage services as provided for in their FERC-approved tariffs. Theprofitability of these businesses is dependent on their ability, through therates they are permitted to charge, to recover costs and earn a reasonablereturn on their capital investments.

Additionally, Dominion Energy Gas receives revenue from firmfee-based contractual arrangements, including negotiated rates, for certainLNG storage and terminalling services. The Liquefaction Facility has afirm contracted capacity for LNG loading onto ships of approximately 4.6Mtpa (0.66 bcfe/day)

15

under normal operating conditions and after accounting for maintenancedowntime. Variability in earnings results from changes in operating andmaintenance expenditures, as well as changes in rates and the demand forservices, which are dependent on weather, changes in commodity pricesand the economy.

Dominion Energy’s retail energy marketing operations compete innonregulated energy markets. Dominion Energy has a large concentrationof natural gas customers in markets where utilities have a long-standingcommitment to customer choice.

COMPETITIONGas Transmission & Storage Operating Segment—Dominion Energy andDominion Energy GasDominion Energy Gas’ natural gas transmission operations compete withdomestic and Canadian pipeline companies. Dominion Energy Gas alsocompetes with gas marketers seeking to provide or arrange transportation,storage and other services. Alternative fuel sources, such as oil or coal,provide another level of competition. Although competition is basedprimarily on price, the array of services that can be provided to customersis also an important factor. The combination of capacity rights held oncertain long-line pipelines, a large storage capability and the availability ofnumerous receipt and delivery points along its own pipeline system enableDominion Energy Gas to tailor its services to meet the needs of individualcustomers.

Dominion Energy Gas’ pipeline systems generate a substantial portion oftheir revenue from long-term firm contracts for transportation services andare therefore insulated from competitive factors during the terms of thecontracts. When these long-term contracts expire, Dominion Energy Gas’pipeline system will face competitive pressures from similar facilities thatserve the eastern and Rocky Mountain regions in terms of location, rates,terms of service, and flexibility and reliability of service.

Cove Point’s gas transportation, LNG import and storage operations, aswell as the Liquefaction Facility’s capacity, are contracted primarily underlong-term fixed reservation fee agreements. However, in the future CovePoint may compete with other independent terminal operators as well asmajor oil and gas companies on the basis of terminal location, servicesprovided and price. Competition from terminal operators primarily comesfrom refiners and distribution companies with marketing and trading arms.In addition, the Liquefaction Facility may face competition on a globalscale as international customers explore other options to meet their energyneeds.

Gas Transmission & Storage Operating Segment—Dominion EnergyDominion Energy’s retail energy marketing operations compete againstincumbent utilities and other energy marketers in nonregulated energymarkets for natural gas, and provides service to approximately 380,000customer accounts in five states. The heaviest concentration of customersin these markets is located in states where utilities have the advantage oflong-standing commitment to customer choice, primarily Ohio andPennsylvania.

REGULATIONGas Transmission & Storage Operating Segment—Dominion Energy andDominion Energy Gas

Dominion Energy Gas’ natural gas transmission and storage operations, aswell as its LNG import and storage operations are regulated primarily byFERC. See Federal Regulations in Regulation for more information.

PROPERTIESFor a description of existing facilities see Item 2. Properties .

The following significant projects are under construction or developmentto better serve customers or expand its service offerings.

Gas Transmission & Storage Operating Segment—Dominion Energy andDominion Energy GasIn August 2018, DETI executed a binding precedent agreement with acustomer for the West Loop project. The project is expected to costapproximately $95 million and provide 150,000 Dths per day of firmtransportation service from Pennsylvania to Ohio for delivery to a proposedcombined-cycle, natural gas-fired electric power generation facility to belocated in Columbiana County, Ohio. In December 2018, DETI filed anapplication to request FERC authorization to construct, operate andmaintain the project facilities, which are expected to be in service by theend of 2021.

In December 2014, DETI entered into a precedent agreement withAtlantic Coast Pipeline for the Supply Header project, a project to provideapproximately 1,500,000 Dths per day of firm transportation service tovarious customers. Atlantic Coast Pipeline has continued to experiencedelays in obtaining permits necessary for construction and delays inconstruction due to judicial actions. As a result, project cost estimates are$725 million to $775 million, excluding financing costs. Projectconstruction is expected to be completed by the end of 2021 within-service in early 2022.

Gas Transmission & Storage Operating Segment—Dominion EnergyIn November 2019, Dominion Energy entered into an arrangement withVanguard Renewables to convert methane from U.S. dairy farms intoclean, renewable natural gas that can heat homes, power businesses andfuel vehicles. Under this arrangement, Dominion Energy will own theprojects and market the renewable natural gas, and Vanguard Renewableswill design, develop and operate the projects. Dominion Energy plans toinvest $200 million into this project through 2024.

INVESTMENTSGas Transmission & Storage Operating Segment—Dominion Energy andDominion Energy GasIroquois— In September 2015, Dominion Energy, through DominionEnergy Midstream, acquired an additional 25.93% interest in Iroquois. InNovember 2019, following completion of the Dominion Energy GasRestructuring, this 25.93% investment was transferred to Dominion EnergyGas which now holds a 50% interest in Iroquois, with TransCanada holdingthe remaining 50% interest. Iroquois owns and operates a 416-mile FERCregulated interstate natural gas pipeline providing service to local gasdistribution companies, electric utilities and electric power generators, aswell as marketers and other end-users, through interconnecting pipelinesand exchanges. Iroquois’ pipeline extends from the U.S.-Canadian borderat Waddington, New York

16

through the state of Connecticut to South Commack, Long Island, NewYork and continuing on from Northport, Long Island, New York throughthe Long Island Sound to Hunts Point, Bronx, New York. In January 2020,Iroquois filed an application with FERC to expand certain existingcompression stations in New York and Connecticut. The project isexpected to cost approximately $275 million and be placed in service bythe end of 2023. See Note 9 to the Consolidated Financial Statements forfurther information about Dominion Energy’s equity method investment inIroquois.

Gas Transmission & Storage Operating Segment—Dominion EnergyAtlantic Coast Pipeline —In September 2014, Dominion Energy, alongwith Duke and Southern, announced the formation of Atlantic CoastPipeline. The Atlantic Coast Pipeline partnership agreement includesprovisions to allow Dominion Energy an option to purchase additionalownership interest in Atlantic Coast Pipeline to maintain a leadingownership percentage. The members hold the following membershipinterests: Dominion Energy, 48%; Duke, 47%; and Southern, 5%. InFebruary 2020, Dominion Energy entered an agreement to acquireSouthern’s 5% membership interest. Atlantic Coast Pipeline is focused onconstructing an approximately 600-mile natural gas pipeline running fromWest Virginia through Virginia to North Carolina. Atlantic Coast Pipelinehas executed agreements with customers for a substantial majority of thecapacity of the Atlantic Coast Pipeline Project. See Future Issues and OtherMatters in Item 7 for information on estimated project costs and in-servicedate and Note 9 to the Consolidated Financial Statements for furtherinformation about Dominion Energy’s equity method investment inAtlantic Coast Pipeline.

Align RNG —In November 2018, Dominion Energy announced theformation of Align RNG, an equal partnership with Smithfield Foods, Inc.As announced in October 2019, Align RNG expects to invest $500 millionto develop assets to capture methane from hog farms across Virginia, NorthCarolina, Utah, Arizona and California and convert it into pipeline qualitynatural gas.

Wrangler —In September 2019, Dominion Energy, announced theformation of Wrangler, a nonregulated natural gas retail energy marketingbusiness serving Georgia and other southeastern states in the U.S. Wranglerwas created in partnership with Interstate Gas Supply, Inc., with DominionEnergy contributing its nonregulated retail energy marketing operationsand Interstate Gas Supply, Inc. contributing cash. Dominion Energy has a20% noncontrolling ownership interest in Wrangler. See Note 9 to theConsolidated Financial Statements for further information about DominionEnergy’s equity method investment in Wrangler.

SOURCES OF ENERGY SUPPLYDominion Energy and Dominion Energy Gas’ large underground naturalgas storage network and the location of their pipeline systems are asignificant link between the country’s major interstate gas pipelines andlarge markets in the eastern and Rocky Mountain regions of the U.S.Dominion Energy and Dominion Energy Gas’ pipelines are part of aninterconnected gas transmission system, which provides access to suppliesnationwide for local distribution companies, marketers, power generatorsand industrial and commercial customers.

Dominion Energy and Dominion Energy Gas’ underground storagefacilities play an important part in balancing gas supply with consumerdemand and are essential to serving the eastern and Rocky Mountainregions. In addition, storage capacity is an important element in theeffective management of both gas supply and pipeline transmissioncapacity.

The supply of gas to serve Dominion Energy’s retail energy marketingcustomers is procured through Dominion Energy’s energy marketing groupand market wholesalers.

SEASONALITYDue to the nature of Dominion Energy and Dominion Energy Gas’ gastransmission and storage operations, seasonal fluctuations do not have amaterial impact on earnings.

The earnings of Dominion Energy’s retail energy marketing operations,however vary seasonally as a result of the impact of changes intemperature. Generally, the demand for gas peaks during the winter monthsto meet heating needs.

Gas DistributionThe Gas Distribution Operating Segment of Dominion Energy includesDominion Energy’s regulated natural gas sales, transportation, gatheringand distribution operations in Ohio, West Virginia, North Carolina, Utah,southwestern Wyoming and southeastern Idaho (through East Ohio, Hope,PSNC and Questar Gas) which collectively serve approximately 3.0 millionresidential, commercial and industrial customers.

Gas Distribution’s growth capital plan includes spending approximately$4 billion from 2019 through 2023 to upgrade existing or add newinfrastructure to meet growing energy needs within its service territory andmaintain reliability. Planned capital spending is driven by infrastructureneeds from a growing customer base in states with expanding economies,replacing aging assets for reliability and safety and meeting demands fornatural gas to support the transition from more carbon intensive fuels.

Earnings for the Gas Distribution Operating Segment of DominionEnergy primarily result from rates established by the Ohio, West Virginia,North Carolina, Utah, Wyoming and Idaho Commissions. The profitabilityof these businesses is dependent on their ability, through the rates they arepermitted to charge, to recover costs and earn a reasonable return on theircapital investments. Variability in earnings primarily results from changesin operating and maintenance expenditures, as well as changes in rates andthe economy.

COMPETITIONQuestar Gas and Hope do not currently face direct competition from otherdistributors of natural gas for residential and commercial customers in theirservice territories as state regulations in Utah, Wyoming and Idaho forQuestar Gas, and West Virginia for Hope, do not allow customers tochoose their provider at this time. See State Regulations in Regulation foradditional information.

In Ohio, there has been no legislation enacted to require supplier choicefor natural gas distribution consumers. However, East Ohio has offered anEnergy Choice program to residential and commercial customers sinceOctober 2000. East Ohio has since taken various steps approved by theOhio Commission toward exiting the merchant function, includingrestructuring its

17

commodity service and placing Energy Choice-eligible customers in adirect retail relationship with participating suppliers. Further, in April 2013,East Ohio fully exited the merchan