# EDGAR Filing Document

**Accession Number:** 0000091882
**File Stem:** 0001193125-26-200284
**Filing Date:** 2026-5
**Character Count:** 114701
**Document Hash:** 7fee3d7e587664ad0fda16a2b8dd77da
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-200284.hdr.sgml**: 20260501

**ACCESSION NUMBER**: 0001193125-26-200284

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 80

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260501

**DATE AS OF CHANGE**: 20260501

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DOMINION ENERGY SOUTH CAROLINA, INC.
- **CENTRAL INDEX KEY:** 0000091882
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC & OTHER SERVICES COMBINED [4931]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 570248695
- **STATE OF INCORPORATION:** SC
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-03375
- **FILM NUMBER:** 26930300

**BUSINESS ADDRESS:**
- **STREET 1:** 400 OTARRE PARKWAY
- **CITY:** CAYCE
- **STATE:** SC
- **ZIP:** 29033
- **BUSINESS PHONE:** 803-217-9000

**MAIL ADDRESS:**
- **STREET 1:** 220 OPERATION WAY
- **STREET 2:** MAIL CODE B123
- **CITY:** CAYCE
- **STATE:** SC
- **ZIP:** 29033

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOUTH CAROLINA ELECTRIC & GAS CO
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

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**FORM** 10-Q

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☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **March 31,** 2026

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _____ to _____**

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---

| | | |
|:---|:---|:---|
|  |  | **I.R.S. Employer** |
| **Commission File Number** | **Exact name of registrant as specified in its charter** | **Identification Number** |
| 001-3375 | DOMINION ENERGY SOUTH CAROLINA, INC. | 57-0248695 |
|  | south carolina |  |
|  | *(State or other jurisdiction of incorporation or organization)* |  |
|  | 220 OPERATION WAY |  |
|  | CAYCE**,** **South Carolina** | 29033 |
|  | *(Address of principal executive offices)* | *(Zip Code)* |
|  | **(**804**)** 819-2284 |  |
|  | *(Registrants' telephone number)* |  |

---

**Securities registered pursuant to Section 12(b) of the Act:**

**None**

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. 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). Yes ☒ No ☐

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.

Large accelerated filer ☐ Accelerated filer ☐ Emerging growth company ☐ <br> 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. At April 24, 2026, Dominion Energy South Carolina, Inc. had outstanding 40,296,147 shares of common stock, all of which were held by SCANA Corporation, a wholly-owned subsidiary of Dominion Energy, Inc.

**Dominion Energy South Carolina, Inc. 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.** 

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<u>**TABLE OF CONTENTS**</u> 

---

| | | |
|:---|:---|:---|
|  |  | Page |
|  | [<u>Glossary of Terms</u>](#glossary_of_terms) | 3 |
| [**<u>PART I. FINANCIAL INFORMATION</u>**](#part_i_financial_information) | [**<u>PART I. FINANCIAL INFORMATION</u>**](#part_i_financial_information) |  |
| Item 1. | [<u>Financial Statements</u>](#item_1_financial_statements) | 5 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_analysis_f) | 26 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4__controls_and_procedures) | 29 |
| [**<u>PART II. OTHER INFORMATION</u>**](#part_ii_or_information) | [**<u>PART II. OTHER INFORMATION</u>**](#part_ii_or_information) |  |
| Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 30 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 30 |
| Item 5. | [<u>Other Information</u>](#item_5_other_information) | 30 |
| Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 31 |

---

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**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 | &nbsp;&nbsp;&nbsp;&nbsp;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 |
| AFUDC | Allowance for funds used during construction |
| AOCI | Accumulated other comprehensive income (loss) |
| ARO | Asset retirement obligation |
| bcf | Billion cubic feet |
| BTA | Best technology available  |
| CAA | Clean Air Act |
| CCR | Coal combustion residual |
| CEO | Chief Executive Officer |
| CERCLA | &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as Superfund |
| CFO | Chief Financial Officer |
| CO2 | Carbon dioxide |
| CODM | Chief Operating Decision Maker |
| Cooling degree days | &nbsp;&nbsp;&nbsp;&nbsp;Units measuring the extent to which the average daily temperature is greater than 75 degrees Fahrenheit, calculated as the difference between 75 degrees and the average temperature for that day |
| CUA | Capacity Use Area |
| CWA | Clean Water Act |
| DES | Dominion Energy Services, Inc. |
| DESC | &nbsp;&nbsp;&nbsp;&nbsp;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 |
| Dominion Energy | &nbsp;&nbsp;&nbsp;&nbsp;The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than DESC) or operating segments, or the entirety of Dominion Energy, Inc. and its consolidated subsidiaries |
| &nbsp;&nbsp;&nbsp;Dominion Energy South Carolina | Dominion Energy South Carolina operating segment<br>|
| DSM | Demand-side management |
| Dth | Dekatherm |
| ELG Rule | Effluent limitations guidelines for the steam electric power generating category |
| EPA | U.S. Environmental Protection Agency |
| FERC | Federal Energy Regulatory Commission |
| Fuel Company | South Carolina Fuel Company, Inc. |
| GAAP | U.S. generally accepted accounting principles |
| GENCO | South Carolina Generating Company, Inc. |
| GHG | Greenhouse gas |
| Heating degree days | &nbsp;&nbsp;&nbsp;&nbsp;Units measuring the extent to which the average daily temperature is less than 60 degrees Fahrenheit, calculated as the difference between 60 degrees and the average temperature for that day |
| MD&A | Management's Discussion and Analysis of Financial Condition and Results of Operations |
| MGD | Million gallons per day |
| MWh | Megawatt hour |
| &nbsp;&nbsp;&nbsp;Natural Gas Rate Stabilization Act | &nbsp;&nbsp;&nbsp;&nbsp;Legislation effective February 2005 designed to improve and maintain natural gas service infrastructure to meet the needs of customers in South Carolina |
| NND Project | &nbsp;&nbsp;&nbsp;&nbsp;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 |

---

------

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| | |
|:---|:---|
| **Abbreviation or Acronym** | **Definition** |
| Order 1000 | &nbsp;&nbsp;&nbsp;&nbsp;Order issued by FERC adopting requirements for electric transmission planning, cost allocation and development |
| PSD | Prevention of significant deterioration |
| Santee Cooper | South Carolina Public Service Authority |
| SCANA | &nbsp;&nbsp;&nbsp;&nbsp;The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries (other than DESC) or the entirety of SCANA Corporation and its consolidated subsidiaries |
| SCANA Combination | &nbsp;&nbsp;&nbsp;&nbsp;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 |
| &nbsp;&nbsp;&nbsp;SCANA Merger Approval Order | &nbsp;&nbsp;&nbsp;&nbsp;Final order issued by the South Carolina Commission on December 21, 2018 setting forth its approval of the SCANA Combination |
| SCDES | South Carolina Department of Environmental Services |
| SEC | U.S. Securities and Exchange Commission |
| &nbsp;&nbsp;&nbsp;South Carolina Commission | Public Service Commission of South Carolina |
| Summer | V. C. Summer nuclear power station |
| Toshiba Settlement | &nbsp;&nbsp;&nbsp;Settlement Agreement dated as of July 27, 2017, by and among Toshiba Corporation (parent company of Westinghouse Electric Company LLC), DESC and Santee Cooper |
| VIE | Variable interest entity |
| Virginia Power  | &nbsp;&nbsp;&nbsp;The legal entity, Virginia Electric and Power Company, a wholly-owned subsidiary of Dominion Energy, one or more of its consolidated subsidiaries or operating segment, or the entirety of Virginia Electric and Power Company and its consolidated subsidiaries |

---

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**PART I. FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**Dominion Energy South Carolina, Inc.**

**Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| (millions) | **March 31, 2026** | December 31, 2025 |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Utility plant in service | $**17656** | $17505 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization | **(6086)** | (6015) |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction work in progress | **865** | 725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nuclear fuel, net of accumulated amortization | **193** | 196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utility plant, net ($821 and $823 related to VIEs) | **12628** | 12411 |
| **Nonutility Property and Investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonutility property, net of accumulated depreciation | **18** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held in trust, nuclear decommissioning | **287** | 291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonutility property and investments, net | **305** | 307 |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | **3** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer, net of allowance for uncollectible accounts of $8 and $5 | **424** | 459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliated and related party | **12** | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **97** | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories (at average cost): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fuel | **96** | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas storage | **29** | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Materials and supplies | **253** | 240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments | **93** | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative assets<sup>(1)</sup> | **121** | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets | **445** | 273 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **13** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets ($95 and $118 related to VIEs) | **1586** | 1424 |
| **Deferred Debits and Other Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative assets<sup>(1)</sup> | **328** | 359 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets | **3276** | 3280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliated receivables | **32** | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **84** | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred debits and other assets ($34 and $32 related to VIEs) | **3720** | 3765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**18239** | $17907 |

---

*(1) See Note 12 for amounts attributable to affiliates.*

See Notes to Consolidated Financial Statements.

------

**Dominion Energy South Carolina, Inc.**

**Consolidated Balance Sheets—(Continued)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| (millions) | **March 31, 2026** | December 31, 2025 |
| **CAPITALIZATION AND LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Stock - no par value, 40.3 million shares outstanding at both dates | $**4338** | $4338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | **1209** | 1136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | **(1)** | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total common equity | **5546** | 5473 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | **242** | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | **5788** | 5707 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, net | **4668** | 4667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliated long-term debt | **230** | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance leases | **1** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term debt | **4899** | 4898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capitalization | **10687** | 10605 |
| **Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | **450** | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities due within one year | **1** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | **292** | 232 |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliated and related party payables | **835** | 769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer deposits and customer prepayments | **86** | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes accrued | **79** | 264 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accrued | **90** | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities | **3** | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | **173** | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **211** | 288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | **2220** | 1989 |
| **Deferred Credits and Other Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and investment tax credits | **1602** | 1539 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligations | **1137** | 1123 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement benefits | **117** | 117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities | **1** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | **2317** | 2343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **158** | 190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred credits and other liabilities | **5332** | 5313 |
| Commitments and Contingencies (see Note 10) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capitalization and liabilities | $**18239** | $17907 |

---

See Notes to Consolidated Financial Statements.

------

**Dominion Energy South Carolina, Inc.**

**Consolidated Statements of Comprehensive Income**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| (millions) | **2026** | 2025 |
| **Operating Revenue**<sup>(1)</sup> | $**1149** | $986 |
| **Operating Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fuel used in electric generation | **269** | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchased power<sup>(1)</sup> | **58** | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas purchased for resale | **176** | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operations and maintenance | **123** | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operations and maintenance – affiliated suppliers | **51** | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **149** | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other taxes<sup>(1)</sup> | **89** | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | **915** | 748 |
| Operating income | **234** | 238 |
| Other income (expense), net | **2** | 3 |
| Interest charges, net of AFUDC of $5 and $6<sup>(1)</sup> | **72** | 71 |
| Income before income tax expense | **164** | 170 |
| Income tax expense | **33** | 20 |
| **Net Income and Other Comprehensive Income** | **131** | 150 |
| **Comprehensive Income Attributable to Noncontrolling Interest** | **8** | 8 |
| **Comprehensive Income Available to Common Shareholder** | $**123** | $142 |

---

*(1) See Note 12 for amounts attributable to affiliates.*

See Notes to Consolidated Financial Statements.

------

**Dominion Energy South Carolina, Inc.** 

**Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| (millions) | **2026** | 2025 |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $**131** | $150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes, net | **63** | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **149** | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of nuclear fuel | **5** | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other adjustments | **5** | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in certain assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | **15** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables - affiliated and related party | **(10)** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **6** | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and deposits, net | **(1)** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets | **(199)** | (98) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | **(36)** | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | **16** | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - affiliated and related party | **(1)** | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes accrued | **(185)** | (181) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest accrued | **(4)** | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized changes related to commodity derivative activities | **(4)** | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | **7** | (22) |
| Net cash provided by (used in) operating activities | **(43)** | 54 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property additions and construction expenditures | **(319)** | (297) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from investments and sales or disposals of assets, including asset retirement costs | **(16)** | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments | **(1)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **—** | 1 |
| Net cash used in investing activities | **(336)** | (319) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of debt | **—** | 450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend to parent | **(50)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contribution from parent | **—** | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings, net | **375** | (40) |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings - affiliated, net | **67** | (384) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **(10)** | (4) |
| Net cash provided by financing activities | **382** | 272 |
| Net increase in cash, restricted cash and equivalents | **3** | 7 |
| Cash, restricted cash and equivalents at beginning of period<sup>(1)</sup> | **—** | **—** |
| Cash, restricted cash and equivalents at end of period<sup>(1)</sup> | $**3** | $7 |
| **Supplemental Cash Flow Information** |  |  |
| Significant noncash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued construction expenditures | $**112** | $73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases<sup>(2)</sup> | **—** | 4 |

---

*(1) At March 31, 2026, December 31, 2025, March 31, 2025 and December 31, 2024, there were no restricted cash and equivalents balances.*

*(2) Finance leases entered into, if any, were inconsequential for all periods presented.*

See Notes to Consolidated Financial Statements.

------

**Dominion Energy South Carolina, Inc.**

**Consolidated Statements of Changes in Common Equity**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** |  |  |  |  |
| (millions) | **Shares** | **Amount** | **Retained<br>Earnings** | **AOCI** | **Noncontrolling<br>Interest** | **Total<br>Equity** |
| December 31, 2024 | 40 | $4088 | $689 | $(1) | $206 | $4982 |
| Total comprehensive income available to <br> common shareholder |  |  | 142 |  | 8 | 150 |
| Capital contribution from parent |  | 250 |  |  |  | 250 |
| March 31, 2025 | 40 | $4338 | $831 | $(1) | $214 | $5382 |
| December 31, 2025 | 40 | $4338 | $1136 | $(1) | $234 | $5707 |
| Total comprehensive income available to <br> common shareholder |  |  | **123** |  | **8** | **131** |
| Dividend to parent |  |  | **(50)** |  |  | **(50)** |
| March 31, 2026 | **40** | $**4338** | $**1209** | $**(1)** | $**242** | $**5788** |

---

See Notes to Consolidated Financial Statements.

------

**Dominion Energy South Carolina, Inc.** 

**Notes to Consolidated Financial Statements**

**(Unaudited)**

The following notes should be read in conjunction with the Notes to Consolidated Financial Statements appearing in DESC's Annual Report on Form 10-K for the year ended December 31, 2025.

These are interim financial statements and, due to the seasonality of DESC's business and matters that may occur during the rest of the year, the amounts reported in the Consolidated Statements of Comprehensive Income are not necessarily indicative of amounts expected for the full year. In the opinion of management, the information furnished herein reflects all adjustments which are necessary for a fair statement of the results for the interim periods reported, and such adjustments are of a normal recurring nature unless otherwise noted. In addition, the preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain amounts in DESC's 2025 Consolidated Financial Statements and Notes have been reclassified to conform to the 2026 presentation for comparative purposes; however, such reclassifications did not affect DESC's net income and other comprehensive income, total assets, liabilities, equity or cash flows.

DESC is a wholly-owned subsidiary of SCANA, which is a wholly-owned subsidiary of Dominion Energy.

DESC manages its daily operations through one primary operating segment: Dominion Energy South Carolina. DESC also reports a Corporate and Other segment. See Note 11 for further discussion on DESC's operating segments.

**1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Consolidation and Variable Interest Entities**

DESC has determined that it has a controlling financial interest in each of GENCO and Fuel Company (which are considered to be VIEs) and, accordingly, DESC's Consolidated Financial Statements include, after eliminating intercompany balances and transactions, the accounts of DESC, GENCO and Fuel Company. See Note 2 to the Consolidated Financial Statements included in DESC's Annual Report on Form 10-K for the year ended December 31, 2025 for a description of GENCO and Fuel Company.

DESC purchases shared services from DES, an affiliated VIE that provides accounting, legal, finance and certain administrative and technical services to all Dominion Energy subsidiaries, including DESC. DESC has determined that it is not the primary beneficiary of DES as it does not have either the power to direct the activities that most significantly impact its economic performance or an obligation to absorb losses and benefits which could be significant to it. See Note 12 for amounts attributable to affiliates.

**Significant Accounting Policies**

There have been no significant changes from Note 2 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2025.

**2. RATE AND OTHER REGULATORY MATTERS**

**Regulatory Matters Involving Potential Loss Contingencies**

As a result of issues generated in the ordinary course of business, DESC is 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 DESC to estimate a range of possible loss. For regulatory matters that DESC 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 DESC is able to estimate a range of possible loss. For regulatory matters that DESC is 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 DESC's 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 DESC's financial position, liquidity or results of operations.

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**Other Regulatory Matters**

Other than the following matters, there have been no significant developments regarding the pending regulatory matters disclosed in Note 3 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2025.

*Electric – 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 – Other*

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.

DESC utilizes a pension costs rider approved by the South Carolina Commission which is designed to allow recovery of projected pension costs, including under-collected balances or net of over-collected balances, as applicable. The rider is typically reviewed for adjustment every 12 months with any resulting increase or decrease going into effect beginning with the first billing cycle in May. In April 2026, the South Carolina Commission approved DESC's revised request to adjust this rider to increase annual revenue by $1 million, effective with the first billing cycle of May 2026.

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**Regulatory Assets and Regulatory Liabilities**

Rate-regulated utilities recognize in their financial statements certain revenues and expenses in different periods than do other enterprises. As a result, DESC has recorded regulatory assets and regulatory liabilities which are summarized in the following table. Except for NND Project costs and certain other unrecovered costs referenced herein, substantially all regulatory assets are either explicitly excluded from rate base or are effectively excluded from rate base due to their being offset by related liabilities.

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| | | |
|:---|:---|:---|
| (millions) | **March 31, 2026** | December 31, 2025 |
| Regulatory assets: |  |  |
| NND Project costs<sup>(1)</sup> | $**138** | $138 |
| AROs<sup>(2)</sup> | **—** | **—** |
| Deferred employee benefit plan costs<sup>(3)</sup> | **7** | 5 |
| Other unrecovered plant<sup>(4)</sup> | **17** | 18 |
| DSM programs<sup>(5)</sup> | **22** | 23 |
| Cost of fuel and purchased gas under-collections<sup>(6)</sup> | **211** | 39 |
| Other | **50** | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets - current | **445** | 273 |
| NND Project costs<sup>(1)</sup> | **1638** | 1672 |
| AROs<sup>(2)</sup> | **734** | 711 |
| Deferred employee benefit plan costs<sup>(3)</sup> | **95** | 98 |
| Interest rate hedges<sup>(7)</sup> | **166** | 165 |
| Other unrecovered plant<sup>(4)</sup> | **101** | 105 |
| DSM programs<sup>(5)</sup> | **49** | 49 |
| Environmental remediation costs<sup>(8)</sup> | **42** | 42 |
| Deferred storm damage costs<sup>(9)</sup> | **75** | 76 |
| Deferred transmission operating costs<sup>(10)</sup> | **69** | 70 |
| Derivatives<sup>(11)</sup> | **89** | 91 |
| Other<sup>(12)</sup> | **218** | 201 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets - noncurrent | **3276** | 3280 |
| Total regulatory assets | $**3721** | $3553 |
| Regulatory liabilities: |  |  |
| Monetization of guaranty settlement<sup>(13)</sup> | $**67** | $67 |
| Income taxes refundable through future rates<sup>(14)</sup> | **39** | 33 |
| Reserve for refunds to electric utility customers<sup>(15)</sup> | **25** | 34 |
| Derivatives<sup>(11)</sup> | **38** | 30 |
| Other | **4** | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities - current | **173** | 176 |
| Monetization of guaranty settlement<sup>(13)</sup> | **485** | 501 |
| Income taxes refundable through future rates<sup>(14)</sup> | **798** | 808 |
| Asset removal costs<sup>(16)</sup> | **612** | 604 |
| Reserve for refunds to electric utility customers<sup>(15)</sup> | **122** | 128 |
| Derivatives<sup>(11)</sup> | **290** | 294 |
| Other | **10** | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities - noncurrent | **2317** | 2343 |
| Total regulatory liabilities | $**2490** | $2519 |

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*(1) Reflects expenditures associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from electric service customers over a* 20*-year period ending in* 2039*.* 

*(2) Represents uncollected costs, including deferred depreciation and accretion expense, related to legal obligations associated with the future retirement of generation, transmission and distribution properties. The AROs primarily relate to DESC's electric generating facilities, including Summer, and are expected to be recovered over the related property lives and periods of decommissioning which may range up to approximately* 105 *years. In addition, the balance reflects amounts related to the EPA's May 2024 final rule concerning CCR as discussed in Note 10.*

*(3) Employee benefit plan costs have historically been recovered as they have been recorded under GAAP. Deferred employee benefit plan costs represent amounts of pension and other postretirement benefit costs which were accrued as liabilities and treated as regulatory assets pursuant to FERC guidance, and costs deferred pursuant to specific South Carolina Commission regulatory orders. Based on rates currently in effect, DESC expects to recover certain deferred benefit costs through utility rates over average service periods of participating employees, which is approximately* 9 years*. DESC expects to recover other deferred pension costs through utility rates over periods through* 2044*.*

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*(4) Represents the carrying value of coal-fired generating units, including related materials and supplies inventory, retired from service prior to being fully depreciated. DESC is amortizing these amounts through cost of service rates following depreciation amounts that were designed to recover the retired units cost over their previous estimated remaining useful lives, which was estimated to be through* 2025*. Based on current projections of remaining decommissioning costs, projected recovery is expected to extend through* 2039*. In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advanced Metering Infrastructure project, which are being recovered through rates through* 2028*. This amount also includes certain inventory and preliminary survey and investigation charges being amortized through 2026 related to the transition or conversion from coal to gas fired generation at certain facilities. The majority of unamortized amounts are included in rate base and are earning a current return.*

*(5) Primarily represents deferred costs associated with electric demand reduction programs, and such deferred costs are currently being recovered over* three years *through an approved rate rider.*

*(6) Represents amounts under- or over-collected from customers pursuant to the cost of fuel and purchased gas components approved by the South Carolina Commission.*

*(7) Represents settled interest rate derivatives designated as cash flow hedges expected to be amortized to interest expense over the lives of the underlying debt through* 2065*.*

*(8) Reflects amounts associated with the assessment and clean-up of sites currently or formerly owned by DESC. Such remediation costs are expected to be recovered over periods of up to* 24 *years. See Note 10 for additional information.*

*(9) Represents storm restoration costs for which DESC expects to receive future recovery. Pursuant to the settlement agreement approved in DESC's retail electric base rate case in August 2024, for costs incurred prior to September 2024, DESC expects to receive future recovery through customer rates through* 2034 *and for costs incurred effective September 2024, DESC expects to receive future recovery through customer rates of approximately $2 million each year. Unamortized amounts are included in rate base and are earning a current return.*

*(10) Includes deferred depreciation and property taxes associated with certain transmission assets for which DESC expects future recovery from customers through* 2062*. Unamortized amounts are included in rate base and earning a current return.*

*(11) Represents changes in the fair value of derivatives, excluding separately presented interest rate hedges, that following settlement are expected to be recovered from or refunded to customers.*

*(12) Various other regulatory assets are expected to be recovered through rates over varying periods through* 2078*.*

*(13) Represents proceeds related to the monetization of the Toshiba Settlement. In accordance with the SCANA Merger Approval Order, this remaining balance will be refunded to electric customers over a 20-year period ending in 2039, as all previous liens have been satisfied.* 

*(14) Includes (i) excess deferred income taxes arising from the remeasurement of deferred income taxes in connection with the enactment of the 2017 Tax Reform Act (certain of which are protected under normalization rules and will be amortized over the remaining lives of related property, and certain of which were amortized to the benefit of customers over prescribed periods as instructed by regulators) and (ii) deferred income taxes arising from investment tax credits, offset by (iii) deferred income taxes that arise from utility operations that have not been included in customer rates (a portion of which relate to depreciation and are expected to be recovered over the remaining lives of the related property which may range up to* 85 *years).* 

*(15) Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited to customers over an estimated* 11*-year period effective February 2019 in connection with the SCANA Merger Approval Order.* 

*(16) Represents estimated net collections through depreciation rates of amounts to be expended for the removal of assets in the future.*

Regulatory assets have been recorded based on the probability of their recovery. All regulatory assets represent incurred costs that may be deferred under GAAP for regulated operations. The South Carolina Commission or FERC has reviewed and approved through specific orders certain of the items shown as regulatory assets. In addition, regulatory assets include, but are not limited to, certain costs which have not been specifically approved for recovery by one of these regulatory agencies. While such costs are not currently being recovered, management believes that they would be allowable under existing rate-making concepts embodied in rate orders or applicable state law and expects to recover these costs through rates in future periods.

**3. OPERATING REVENUE**

DESC's revenue consists of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Three Months Ended March 31,</u>** | **2026** | **2026** | **2025** | **2025** |
| (millions) | Electric | Gas | Electric | Gas |
| Customer class: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $**410** | $**203** | $371 | $151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | **262** | **68** | 228 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | **134** | **10** | 109 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **38** | **14** | 32 | 8 |
| Revenues from contracts with customers | **844** | **295** | 740 | 240 |
| Other revenues | **9** | **1** | 6 |  |
| Total Operating Revenues | $**853** | $**296** | $746 | $240 |

---

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Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has already been received from the customer. DESC had contract liability balances of $6 million and $7 million at March 31, 2026 and December 31, 2025, respectively. During both of the three months ended March 31, 2026 and 2025, DESC recognized revenue of $3 million from the beginning contract liability balances as DESC fulfilled its obligations to provide service to its customers. Contract liabilities are recorded in customer deposits and customer prepayments in the Consolidated Balance Sheets.

Balances and activity related to contract costs deferred as regulatory assets were as follows:

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| | | |
|:---|:---|:---|
|  | Regulatory Assets | Regulatory Assets |
| (millions) | **March 31, 2026** | December 31, 2025 |
| Beginning balance | $**14** | $10 |
| Additional costs | **—** | 4 |
| Amortization | **(1)** |  |
| Ending balance | $**13** | $14 |

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**4. EQUITY**

For all periods presented, DESC's authorized shares of common stock, no par value, were 50 million, of which 40.3 million were issued and outstanding, and DESC's authorized shares of preferred stock, no par value, were 20 million, of which 1,000 shares were issued and outstanding. All outstanding shares of common and preferred stock are held by SCANA.

There have been no material changes to the dividend restrictions affecting DESC described in Note 5 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2025.

During the first quarter of 2025, DESC received equity contributions of $250 million from Dominion Energy. DESC primarily used these funds for working capital needs including reducing short-term debt.

**5. LONG-TERM AND SHORT-TERM DEBT**

DESC's short-term financing is supported through its access as co-borrower to Dominion Energy's $7.0 billion joint revolving credit facility. Other than the items discussed below, there have been no significant changes from Note 6 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2025.

At March 31, 2026, DESC's share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy was as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Maximum Facility Sub-Limit** | **Outstanding<br>Commercial Paper** | **Outstanding<br>Letters of Credit** |
| (millions) |  |  |  |
| Joint revolving credit facility<sup>(1)</sup> | $**1000** | $**450** | $**14** |

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*(1) A maximum of $1.0 billion of the facility is available to DESC, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy and Virginia Power. A sub-limit for DESC is set within the facility limit but can be changed at the option of the co-borrowers multiple times per year. At March 31, 2026, the sub-limit for DESC was $900 million. If DESC has liquidity needs in excess of its sub-limit, the sub-limit may be changed provided that it does not exceed $1.0 billion or such needs may be satisfied through short-term borrowings from Dominion Energy. This credit facility matures in* April 2031 *in accordance with the extension exercised by the borrowers in April 2026, with the potential to be further extended by the borrowers to* April 2032*, and can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $3.0 billion (or the sub-limit, whichever is less) of letters of credit, for working capital and other general corporate purposes. Through May 2026, DESC had $3 million in letters of credit issued and outstanding under this facility.* 

DESC has FERC approval through March 2027 to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act) in amounts not to exceed $1.8 billion outstanding with maturity dates of one year or less. At March 31, 2026, DESC had issued $450 million in commercial paper supported by its joint revolving credit facility with Dominion Energy as disclosed above and had drawn on $464 million of its intercompany credit facility with Dominion Energy, as permitted by this FERC authorization. In addition, GENCO has FERC approval through March 2027 to issue short-term indebtedness not to exceed $300 million outstanding with maturity dates of one year or less. At March 31, 2026, GENCO had drawn on $79 million of its intercompany credit facility with Dominion Energy, as permitted by this FERC authorization.

DESC is obligated with respect to an aggregate of $68 million of industrial revenue bonds which are secured by letters of credit. These letters of credit expire, subject to renewal, in the fourth quarter of 2026.

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DESC, GENCO and Fuel Company each have intercompany credit facilities with Dominion Energy with a maximum capacity of $900 million, $300 million and $400 million, respectively. At March 31, 2026 and December 31, 2025, DESC, GENCO and Fuel Company collectively had borrowings outstanding under these agreements totaling $792 million and $724 million, respectively, which are recorded in affiliated and related party payables in DESC's Consolidated Balance Sheets. Interest charges associated with these agreements were $11 million for both the three months ended March 31, 2026 and 2025.

**6. INCOME TAXES**

Other than the following matters, there have been no significant developments regarding DESC's provision for income taxes, tax-related assets and liabilities and/or unrecognized tax benefits disclosed in Note 7 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 three months ended March 31, 2026, the statutory U.S. federal income tax rate reconciles to DESC's effective income tax rate as follows:

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| | | |
|:---|:---|:---|
|  | **Amount** | **Rate** |
| (millions, except percentages) |  |  |
| U.S. federal statutory tax | $**34** | **21.0%** |
| State and local income taxes, net of federal income tax effect<sup>(1)</sup> | **6** | **3.4** |
| Nontaxable or nondeductible items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory deferrals: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal of excess deferred income taxes | **(7)** | **(4.2)** |
| Other adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **—** | **(0.1)** |
| Effective tax<sup>(2)</sup> | $**33** | **20.1%** |

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*(1) State taxes in South Carolina make up the majority (greater than 50%) of the tax effect in this category.*

*(2) DESC had no adjustments related to the following disclosure categories: foreign tax effects, effects of changes in tax law or rates enacted in the current period, effects of cross-border tax laws and changes in valuation allowances.*

For continuing operations including noncontrolling interests for the three months ended March 31, 2025, the statutory U.S. federal income tax rate reconciles to DESC's effective income tax rate as follows:

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| | |
|:---|:---|
|  | 2025 |
| U.S. statutory rate | 21.0% |
| Increases (reductions) resulting from: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State taxes, net of federal benefit | 10.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of excess deferred income taxes | (2.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds used during construction |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurements and settlements of uncertain tax positions | (17.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (0.2) |
| Effective tax rate | 11.7% |

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**7. DERIVATIVE FINANCIAL INSTRUMENTS**

DESC's accounting policies, objectives and strategies for using derivative instruments are discussed in Note 2 in the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2025. See Note 8 for further information about fair value measurements and associated valuation methods for derivatives.

Cash collateral, as presented in the table below, is used to offset derivative assets and liabilities when applicable. Certain of DESC's derivative instruments contain credit-related contingent provisions. These provisions require DESC to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying the instruments that are in a liability position and not fully collateralized with cash were fully triggered at both March 31, 2026 and December 31, 2025, DESC would have been required to post $2 million of additional collateral to its counterparties. The collateral that would be required to be posted includes the impacts of any offsetting asset positions and any amounts already posted for derivatives and non-derivative contracts per contractual terms. DESC had not posted any collateral at March 31, 2026 and December 31, 2025 related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with cash. 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 at both March 31, 2026 and December 31, 2025 was $2 million, which does not include the impact of any offsetting asset positions.

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The tables below present derivative balances by type of financial instrument, if the gross amounts recognized in the Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet |
|  | **Gross<br>Assets<br>Presented in the<br>Consolidated<br>Balance Sheet**<sup>(1)</sup> | **Financial<br>Instruments** | **Cash<br>Collateral<br>Received** | **Net<br>Amounts** | Gross<br>Assets<br>Presented in the<br>Consolidated<br>Balance Sheet<sup>(1)</sup> | Financial<br>Instruments | Cash<br>Collateral<br>Received | Net<br>Amounts |
| (millions) |  |  |  |  |  |  |  |  |
| Interest rate contracts: | Interest rate contracts: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over-the-counter | $**2** | $**—** | $**—** | $**2** | $1 | $— | $— | $1 |
| Commodity contracts: | Commodity contracts: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over-the-counter | **187** | **1** | **—** | **186** | 211 | **—** | **—** | 211 |
| Total derivatives | $**189** | $**1** | $**—** | $**188** | $212 | $— | $— | $212 |

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*(1) Excludes derivative assets of $260 million at both March 31, 2026 and December 31, 2025, which are not subject to master netting or similar arrangements.*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | **Gross Amounts Not Offset in the Consolidated<br>Balance Sheet** | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet | Gross Amounts Not Offset in the Consolidated<br>Balance Sheet |
|  | **Gross<br>Liabilities<br>Presented in the<br>Consolidated<br>Balance Sheet**<sup>(1)</sup> | **Financial<br>Instruments** | **Cash<br>Collateral<br>Paid** | **Net<br>Amounts** | Gross<br>Liabilities<br>Presented in the<br>Consolidated<br>Balance Sheet<sup>(1)</sup> | Financial<br>Instruments | Cash<br>Collateral<br>Paid | Net<br>Amounts |
| (millions) |  |  |  |  |  |  |  |  |
| Interest rate contracts: | Interest rate contracts: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over-the-counter | $**2** | $**—** | $**—** | $**2** | $2 | $— | $— | $2 |
| Commodity contracts: | Commodity contracts: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Over-the-counter | **2** | **1** | **—** | **1** | **—** | **—** | **—** | **—** |
| Total derivatives | $**4** | $**1** | $**—** | $**3** | $2 | $— | $— | $2 |

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*(1) DESC did not have any derivative liabilities at March 31, 2026, which were not subject to master netting or similar arrangements. Excludes derivative liabilities of $1 million at December 31, 2025, which are not subject to master netting or similar arrangements.* 

**Volumes**

The following table presents the volume of derivative activity at March 31, 2026. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions.

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| | | |
|:---|:---|:---|
|  | **Current** | **Noncurrent** |
| Natural Gas (bcf): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basis<sup>(1)</sup> | **48** | **52** |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed price | **13** | **—** |
| Electricity (MWh in millions): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed price | **2** | **21** |
| Interest rate<sup>(2)</sup> (in millions) | $**300** | $**71** |

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*(1) Includes options.* 

*(2) Maturity is determined based on final settlement period.* 

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**Fair Value and Gains and Losses on Derivative Instruments**

The following table presents the fair values of derivatives and where they are presented in the Consolidated Balance Sheets:

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| | | |
|:---|:---|:---|
|  | **Assets** | **Liabilities** |
| (millions) |  |  |
| **At March 31, 2026** |  |  |
| **Current derivatives not under cash flow hedge accounting** |  |  |
| Commodity | $**121** | $**2** |
| Interest rate | **—** | **1** |
| &nbsp;&nbsp;Total current derivatives | $**121** | $**3** |
| **Noncurrent derivatives not under cash flow hedge accounting** |  |  |
| Commodity | $**326** | $**—** |
| Interest rate | **2** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent derivatives | **328** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | $**449** | $**4** |
| **At December 31, 2025** |  |  |
| **Current derivatives not under cash flow hedge accounting** |  |  |
| Commodity | $113 | $1 |
| Interest rate |  | 1 |
| &nbsp;&nbsp;Total current derivatives | $113 | $2 |
| **Noncurrent derivatives not under cash flow hedge accounting** |  |  |
| Commodity | $358 | $— |
| Interest rate | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent derivatives | 359 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | $472 | $3 |

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The following tables present the gains and losses on derivatives, as well as where the associated activity is presented in the Consolidated Balance Sheets and Statements of Comprehensive Income:

**Derivatives in Cash Flow Hedging Relationships**

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| | | |
|:---|:---|:---|
| (millions) | **Increase (Decrease) in Derivatives Subject to Regulatory Treatment**<sup>(1)(2)</sup> | **Increase (Decrease) in Derivatives Subject to Regulatory Treatment**<sup>(1)(2)</sup> |
| **Three Months Ended March 31,** | **2026** | 2025 |
| Derivative type and location of gains (losses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | $**—** | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**—** | $— |

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*(1) Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/ liabilities have no associated effect in the Consolidated Statements of Comprehensive Income.*

*(2) All derivatives in cash flow hedging relationships have settled and are being amortized over the life of the debt.*

**Derivatives Not Designated as Hedging Instruments** 

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| | | |
|:---|:---|:---|
| (millions) | **Amount of Gain (Loss) Recognized in Income on Derivatives**<sup>(1)</sup> | **Amount of Gain (Loss) Recognized in Income on Derivatives**<sup>(1)</sup> |
| **Three Months Ended March 31,** | **2026** | 2025 |
| Derivative type and location of gains (losses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchased power | $**6** | $3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fuel used in electric generation | **11** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas purchased for resale | **5** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate: |  |  |
| Interest charges | **(1)** | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**21** | $2 |

---

*(1) Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Consolidated Statements of Comprehensive Income.*

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**8. FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES**

DESC's fair value measurements are made in accordance with the policies discussed in Note 2 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2025. See Note 7 in this report for further information about DESC's derivatives and hedge accounting activities.

The following table presents DESC's quantitative information about Level 3 fair value measurements at March 31, 2026. The range and weighted-average are presented in dollars for market price inputs and percentages for price volatility.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fair Value<br>(millions)** | **Valuation Techniques** | **Unobservable Input** | **Range** | **Weighted-average**<sup>(1)</sup> |
| **Assets** |  |  |  |  |  |
| Physical forwards: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electricity | $**260** | Discounted cash flow | Market price (per MWh)<br><sup>(3)</sup> | 28-101 | 54 |
| Physical options: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas<sup>(2)</sup> | **176** | Option model | Market price (per Dth)<br><sup>(3)</sup> | 2-11 | 4 |
|  |  |  | Price volatility<br><sup>(4)</sup> | 3% - 74% | 45% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**436** |  |  |  |  |

---

*(1) Averages weighted by volume.* 

*(2) Includes basis.* 

*(3) Represents market prices beyond defined terms for Levels 1 and 2.* 

*(4) Represents volatilities unrepresented in published markets.*

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

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| | | | |
|:---|:---|:---|:---|
| **Significant Unobservable Inputs** | **Position** | **Change to Input** | **Impact on Fair Value Measurement** |
| Market price | Buy | Increase (decrease) | Gain (loss) |
| Market price | Sell | Increase (decrease) | Loss (gain) |
| Price volatility | Buy | Increase (decrease) | Gain (loss) |
| Price volatility | Sell | Increase (decrease) | Loss (gain) |

---

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**Recurring Fair Value Measurements**

The following table presents DESC's assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

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| | | | | |
|:---|:---|:---|:---|:---|
| (millions) | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **At March 31, 2026** |  |  |  |  |
| **Assets** |  |  |  |  |
| Derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity | $**—** | $**11** | $**436** | $**447** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | **—** | **2** | **—** | **2** |
| Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents and other | **46** | **—** | **—** | **46** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**46** | $**13** | $**436** | $**495** |
| **Liabilities** |  |  |  |  |
| Derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity | $**—** | $**2** | $**—** | $**2** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | **—** | **2** | **—** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $**—** | $**4** | $**—** | $**4** |
| **At December 31, 2025** |  |  |  |  |
| **Assets** |  |  |  |  |
| Derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity | $— | $2 | $469 | $471 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate |  | 1 |  | 1 |
| Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents and other | 46 |  |  | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $46 | $3 | $469 | $518 |
| **Liabilities** |  |  |  |  |
| Derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity | $— | $— | $1 | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate |  | 2 |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $— | $2 | $1 | $3 |

---

The following table presents the net change in DESC's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category.

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | 2025 |
| (millions) |  |  |
| Beginning balance | $**468** | $370 |
| &nbsp;&nbsp;Total realized and unrealized gains (losses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Included in earnings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchased power | **6** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fuel used in electric generation | **7** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fuel purchased for resale | **3** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Included in regulatory assets/liabilities | **(3)** | (89) |
| &nbsp;&nbsp;Settlements | **(45)** | (14) |
| Ending balance | $**436** | $270 |

---

There are 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 the three months ended March 31, 2026 and 2025.

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**Fair Value of Financial Instruments**

Substantially all of DESC's 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 financial instruments classified within current assets and current liabilities are representative of fair value because of the short-term nature of these instruments. For financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 |
| (millions) | **Carrying Amount** | **Estimated Fair Value**<sup>(1)</sup> | Carrying Amount | Estimated Fair Value<sup>(1)</sup> |
| Long-term debt<sup>(2)</sup> | $**4668** | $**4615** | $4667 | $4702 |
| Affiliated long-term debt<sup>(3)</sup> | **230** | **230** | 230 | 230 |

---

*(1) Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.*

*(2) Carrying amount includes current portions, if any, included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium.*

*(3) Carrying amount includes current portions presented in affiliated and related party payables, as applicable.* 

**9. EMPLOYEE BENEFIT PLANS**

In DESC's Consolidated Statements of Comprehensive Income, the service cost component of net periodic benefit (credit) cost is reflected in other operations and maintenance expense with the non-service cost components reflected in other income (expense). Components of net periodic benefit cost (credit) recorded by DESC were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| (millions) | **Pension Benefits** | **Pension Benefits** | **Other Postretirement Benefits** | **Other Postretirement Benefits** |
| **Three Months Ended March 31,** | **2026** | 2025 | **2026** | 2025 |
| Service cost | $**2** | $2 | $**—** | $— |
| Interest cost | **8** | 9 | **2** | 2 |
| Expected return on assets | **(11)** | (10) | **—** |  |
| Amortization of actuarial losses | **2** | 1 | **—** | (1) |
| Net periodic benefit cost | $**1** | $2 | $**2** | $1 |

---

During the three months ended March 31, 2026, DESC made $1 million of contributions to its qualified pension plan. DESC expects to make $4 million of minimum required contributions to its qualified pension plan in 2026 and expects to receive reimbursement for such contributions from Santee Cooper. DESC recovers current pension costs through either a rate rider that may be adjusted annually for retail electric operations or through cost of service rates for gas operations.

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**10. COMMITMENTS AND CONTINGENCIES**

As a result of issues generated in the ordinary course of business, DESC is involved in legal proceedings before various courts and is 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 DESC to estimate a range of possible loss. For such matters that DESC 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 DESC is able to estimate a range of possible loss. For legal proceedings and governmental examinations that DESC is 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. DESC maintains 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 DESC's 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 DESC's financial position, liquidity or results of operations. DESC's results of operations reflect the following activity primarily related to various personal injury or wrongful death cases. During the three months ended March 31, 2026 and 2025, DESC recorded less than $1 million of benefits and less than $1 million of charges in aggregate, respectively, reflected in other operations and maintenance expense in its Consolidated Statements of Comprehensive Income. DESC had no insurance receivables at March 31, 2026 and at December 31, 2025 had $2 million of insurance receivables reflected in other receivables in its Consolidated Balance Sheets. DESC had $2 million of reserves at both March 31, 2026 and December 31, 2025 reflected in other current liabilities.

**Environmental Matters**

DESC is 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 DESC's facilities are subject to the CAA's permitting and other requirements.

*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, DESC cannot predict the impact to its 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. DESC must comply with applicable aspects of the CWA programs at its 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. DESC has five

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facilities that are subject to the final regulations. DESC is also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to five hydroelectric facilities. DESC anticipates that it may have to install impingement control technologies at certain of these stations that have once-through cooling systems. DESC is 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 DESC's results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC.

*Effluent Limitations Guidelines*

In September 2015, the EPA released a final rule to revise the ELG Rule. 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 final ELG 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 final ELG 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. DESC expects to complete wastewater treatment technology retrofits and modifications at the Williams generating station, with a similar project at the 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 below, DESC recorded adjustments to its AROs in connection with the expected compliance costs associated with the EPA's May 2024 final rule concerning CCR. DESC expects 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. DESC 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, DESC expects that while such costs for facility improvements, if required, could be material to its financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts.

*Capacity Use Area*

In November 2019, a new CUA was established in the counties surrounding the Cope Generating Station (Western Capacity Use Area) under the South Carolina Groundwater Use and Reporting Regulation. Under the regulation any groundwater well in a CUA that withdraws above three million gallons per month must be permitted. The Cope Generating Station is located within this new Western Capacity Use Area. Cope has been using four deep groundwater wells for cooling water and other house loads since 1996. Prior to designation of the new Western Capacity Use Area, the wells at Cope Station were only required to be registered not permitted. As a result of this designation, Cope will need to restore the surface water equipment to operable status to reduce reliance on groundwater wells. This includes completion of 316(b) requirements, (including SCDES BTA determination and modification of the station national pollutant discharge elimination system permit, which was obtained) and extensive inspection, repair and/or replacement of the associated surface water withdrawal equipment which has been idle since 1996. While the impacts of this rule change are potentially material to DESC's results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC.

***Waste Management and Remediation***

The operations of DESC 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.

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From time to time, DESC 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, DESC 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. DESC also may identify, evaluate and remediate other potentially impacted sites under voluntary state programs. Remediation costs may be subject to reimbursement under DESC's insurance policies, rate recovery mechanisms, or both. Except as described below, DESC does not believe these matters will have a material effect on results of operations, financial condition and/or cash flows.

DESC has four decommissioned manufactured gas plant sites in South Carolina that are in various states of investigation, remediation and monitoring under work plans approved by, or under review by, the SCDES or the EPA. DESC has completed the majority of remediation activities at one site and anticipates the remaining activities will be completed in 2026 at an estimated cost of less than $1 million, after which the site will continue to incur ongoing maintenance and monitoring obligations. DESC expects to recover costs arising from the remediation work at all four sites through rate recovery mechanisms and at March 31, 2026, deferred amounts, net of amounts previously recovered through rates and insurance settlements, totaled $32 million and are included in regulatory assets.

***Ash Pond and Landfill Closure Costs***

In April 2015, the EPA enacted a final rule regulating CCR landfills, existing ash ponds that still receive and manage CCRs and inactive ash ponds that do not receive, but still store, CCRs. DESC currently has inactive and existing CCR ponds and CCR landfills subject to the final rule at three different facilities. This rule created a legal obligation for DESC to retrofit or close all of its inactive and existing ash ponds over a certain period of time, as well as perform required monitoring, corrective action, and post-closure care activities as necessary.

In December 2016, legislation was enacted that creates a framework for EPA-approved state CCR permit programs. In August 2017, the EPA issued interim guidance outlining the framework for state CCR program approval. The EPA has enforcement authority until state programs are approved. The EPA and states with approved programs both will have authority to enforce CCR requirements under their respective rules and programs. In September 2017, the EPA agreed to reconsider portions of the CCR rule in response to two petitions for reconsideration. In March 2018, the EPA proposed certain changes to the CCR rule related to issues remanded as part of the pending litigation and other issues the EPA is reconsidering. Several of the proposed changes would allow states with approved CCR permit programs additional flexibility in implementing their programs. In July 2018, the EPA promulgated the first phase of changes to the CCR rule. In August 2018, the U.S. Court of Appeals for the D.C. Circuit issued its decision in the pending challenges of the CCR rule, vacating and remanding to the EPA three provisions of the rule. In May 2024, the EPA released a final rule to regulate inactive surface impoundments located at retired generating stations that contained CCR and liquids after October 2015, and certain other inactive or previously closed surface impoundments, landfills or other areas that contain accumulations of CCR. DESC believes that it may have inactive or closed units or areas that could be subject to the final rule at up to seven different stations. As discussed in Note 12 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, DESC recorded adjustments in its AROs in 2024 in connection with this rule. The actual AROs related to CCRs may vary substantially from the estimates used to record the obligation.

**Surety Bonds** 

At March 31, 2026, DESC had purchased $24 million of surety bonds. Under the terms of surety bonds, DESC is obligated to indemnify the respective surety bond company for any amounts paid.

**11. OPERATING SEGMENTS**

The Corporate and Other segment primarily includes specific items attributable to DESC's operating segment that are not included in profit measures evaluated by executive management in assessing the segment's performance or in allocating resources.

DESC's CODM is Dominion Energy's CEO. The CODM uses net income (loss) as the primary profit or loss measure at each segment. The 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 both the three months ended March 31, 2026 and 2025, DESC reported an inconsequential amount of specific items in the Corporate and Other segment.

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The following table presents segment information pertaining to DESC's operations:

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| | | | |
|:---|:---|:---|:---|
| **Three Months Ended March 31,** | **Dominion Energy <br>South Carolina** | **Corporate <br>and Other** | **Consolidated<br>Total** |
| (millions, unless otherwise noted) |  |  |  |
| **2026** |  |  |  |
| **Operating Revenue** | $**1149** | $**—** | $**1149** |
| &nbsp;&nbsp;&nbsp;&nbsp;Fuel used in electric generation<sup>(1)</sup> | **269** | **—** | **269** |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchased power<sup>(1)</sup> | **58** | **—** | **58** |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas purchased for resale<sup>(1)</sup> | **176** | **—** | **176** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operations and maintenance<sup>(1)</sup> | **174** | **—** | **174** |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization<sup>(1)</sup> | **149** | **—** | **149** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other taxes<sup>(1)</sup> | **89** | **—** | **89** |
| **Total Operating Expenses** | **915** | **—** | **915** |
| Other income (expense), net<sup>(2)</sup> | **2** | **—** | **2** |
| Interest charges, net of AFUDC<sup>(1)</sup> | **72** | **—** | **72** |
| Income tax expense (benefit)<sup>(1)</sup> | **38** | **(5)** | **33** |
| **Comprehensive Income Attributable to Noncontrolling Interest**<sup>(2)</sup> | **8** | **—** | **8** |
| **Comprehensive Income Available to Common Shareholder** | **118** | **5** | **123** |
| Capital expenditures | **319** | **—** | **319** |
| Total assets (billions) | **18.2** | **—** | **18.2** |
| **2025** |  |  |  |
| **Operating Revenue** | $986 | $— | $986 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fuel used in electric generation<sup>(1)</sup> | 204 |  | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchased power<sup>(1)</sup> | 22 |  | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas purchased for resale<sup>(1)</sup> | 126 |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operations and maintenance<sup>(1)</sup> | 174 |  | 174 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization<sup>(1)</sup> | 140 |  | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other taxes<sup>(1)</sup> | 82 |  | 82 |
| **Total Operating Expenses** | 748 |  | 748 |
| Other income (expense), net<sup>(2)</sup> | 3 |  | 3 |
| Interest charges, net of AFUDC<sup>(1)</sup> | 71 |  | 71 |
| Income tax expense<sup>(1)</sup> | 18 | 2 | 20 |
| **Comprehensive Income Attributable to Noncontrolling Interest**<sup>(2)</sup> | 8 |  | 8 |
| **Comprehensive Income (Loss) Available (Attributable) to <br> Common Shareholder** | 144 | (2) | 142 |
| Capital expenditures | 297 |  | 297 |

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*(1) The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to DESC's CODM.* 

*(2) Items designated are other segment items for each reportable segment.*

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**12. AFFILIATED AND RELATED PARTY TRANSACTIONS**

DES, on behalf of itself and its parent company, provides the following services to DESC, which are rendered at direct or allocated cost: information systems, telecommunications, customer support, marketing and sales, human resources, corporate compliance, purchasing, financial, risk management, public affairs, legal, investor relations, gas supply and capacity management, strategic planning, general administrative and retirement benefits. Costs for these services include amounts capitalized. Amounts expensed are primarily recorded in other operations and maintenance - affiliated suppliers and other income (expense), net in the Consolidated Statements of Comprehensive Income.

DESC transacts with affiliates for certain quantities of electricity in the ordinary course of business. DESC also enters into certain commodity derivative contracts with affiliates. DESC uses these contracts, which are principally comprised of forward commodity purchases, to manage commodity price risks associated with purchases of electricity. See Note 7 for additional information.

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| (millions) | **2026** | 2025 |
| Direct and allocated costs from DES<sup>(1)</sup> | $**72** | $62 |
| Operating Revenues - Electric from sales to affiliate | **2** | 1 |
| Operating Expenses - Other taxes from affiliate | **4** | 3 |
| Purchases of electricity from solar affiliates | **3** | 3 |

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*(1) Includes capitalized expenditures of $21 million and $19 million for the three months ended March 31, 2026 and 2025, respectively.*

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| | | |
|:---|:---|:---|
| (millions) | **March 31, 2026** | December 31, 2025 |
| Payable to DES | $**22** | $20 |
| Payable to SCANA | **7** | 7 |
| Derivative assets with affiliates<sup>(1)</sup> | **42** | 43 |

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*(1) Includes amounts recorded in current derivative assets of $5 million at both March 31, 2026 and December 31, 2025, and amounts recorded in noncurrent derivative assets of $37 million and $38 million at March 31, 2026 and December 31, 2025, respectively.*

Borrowings from an affiliate are described in Note 5.

**13. OTHER INCOME (EXPENSE), NET**

Components of other income (expense), net are as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| (millions) | **2026** | 2025 |
| Other income | $**4** | $5 |
| Other expense | **(2)** | (2) |
| Other income (expense), net | $**2** | $3 |

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

MD&A discusses DESC's results of operations and should be read in conjunction with DESC's Consolidated Financial Statements. DESC 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Forward-Looking Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Results of Operations

**Forward-Looking Statements**

This report contains statements concerning DESC's 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.

DESC makes 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Unusual weather conditions and their effect on energy sales to customers and energy commodity prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Extreme weather events and other natural disasters, including, but not limited to, hurricanes, high winds, severe storms, earthquakes, flooding, wildfires, climate changes and changes in water temperatures and availability that can cause outages and property damage to facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in DESC's markets and global supply chains;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Federal, state and local legislative and regulatory developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in or interpretations of federal and state tax laws and regulations, including those related to tax credits or other incentives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Risks of operating businesses in regulated industries that are subject to changing regulatory structures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes to regulated rates collected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Timing and receipt of regulatory approvals necessary for planned construction or growth projects and compliance with conditions associated with such regulatory approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The inability to complete planned construction, conversion or growth projects at all, or with the outcomes or within the terms and time frames initially anticipated, including as a result of increased public involvement, intervention or litigation in such projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cost of environmental strategy and compliance, including those costs related to climate change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals;

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

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in operating, maintenance and construction costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The availability of nuclear fuel, natural gas, purchased power or other materials utilized by DESC to provide electric generation, transmission and distribution and/or gas distribution services to its customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Domestic terrorism and other threats to DESC's physical and intangible assets, as well as cybersecurity threats or incidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Additional competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Competition in the development, construction and ownership of certain electric transmission facilities in connection with Order 1000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in demand for services, including industrial, commercial and residential growth or decline in service areas, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adverse outcomes in litigation matters or regulatory proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Counterparty credit and performance risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fluctuations in the value of investments held in nuclear decommissioning and benefit plan trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fluctuations in energy-related commodity prices and the effect these could have on DESC's liquidity position and the underlying value of its assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fluctuations in interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Political and economic conditions, including tariffs, inflation and deflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Employee workforce factors, including collective bargaining agreements and labor negotiations with union employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in financial or regulatory accounting principles or policies imposed by governing bodies.

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 DESC's Annual Report on Form 10-K for the year ended December 31, 2025.

DESC's forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. DESC cautions the reader not to place undue reliance on its forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. DESC undertakes no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

**Results of Operations**

Presented below is a summary of DESC's results:

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| | | | |
|:---|:---|:---|:---|
|  | **First Quarter** | **First Quarter** | **First Quarter** |
| (millions) | **2026** | 2025 | $ Change |
| Net income | $**131** | $150 | $(19) |

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***Overview***

*First Quarter 2026 vs. 2025*

Net income decreased 13%, primarily due to the absence of a benefit associated with the remeasurement of an uncertain tax position.

***Analysis of Consolidated Operations***

Presented below are selected amounts related to DESC's results of operations:

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| | | | |
|:---|:---|:---|:---|
|  | **First Quarter** | **First Quarter** | **First Quarter** |
| (millions) | **2026** | 2025 | $ Change |
| Operating revenues | $**1149** | $986 | $163 |
| Fuel used in electric generation | **269** | 204 | 65 |
| Purchased power | **58** | 22 | 36 |
| Gas purchased for resale | **176** | 126 | 50 |
| Other operations and maintenance | **174** | 174 |  |
| Depreciation and amortization | **149** | 140 | 9 |
| Other taxes | **89** | 82 | 7 |
| Other income (expense), net | **2** | 3 | (1) |
| Interest charges | **72** | 71 | 1 |
| Income tax expense | **33** | 20 | 13 |

---

An analysis of DESC's results of operations follows:

*First Quarter 2026 vs. 2025*

**Operating revenues** increased 17%, primarily reflecting:

• A $149 million increase in fuel-related revenue primarily as a result of an increase in commodity costs and purchased power costs associated with sales to electric utility retail customers ($99 million) and gas utility customers ($50 million); and

• An $8 million increase associated with increased infrastructure cost recovery under the Natural Gas Rate Stabilization Act.

These increases were partially offset by:

• A $5 million decrease in sales to electric retail customers from the capital cost rider; and

• A $5 million decrease in sales to gas utility customers associated with economic and other usage factors.

**Fuel used in electric generation** increased 32%, primarily due to increased fuel costs associated with electric utility retail customers, which are offset in operating revenue and do not impact net income.

**Purchased power** increased $36 million, primarily due to an increase in costs associated with electric utility customers, which are offset in operating revenue and do not impact net income.

**Gas purchased for resale** increased 40%, primarily due to an increase in costs associated with gas utility customers, which are offset in operating revenue and do not impact net income.

**Income tax expense** increased 65%, primarily due to the absence of a benefit associated with the remeasurement of an uncertain tax position.

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**ITEM 4. CONTROLS AND PROCEDURES**

Senior management of DESC, including DESC's CEO and CFO, evaluated the effectiveness of DESC's disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation process, DESC's CEO and CFO have concluded that DESC'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, DESC's internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

From time to time, DESC is party 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 DESC reasonably believes will exceed a specified threshold. Pursuant to the SEC regulations, DESC uses a threshold of $1 million for such proceedings.

See the following for discussions on various legal, environmental and other regulatory proceedings to which DESC is a party, which information is incorporated herein by reference:

• Notes 3 and 12 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2025.

• Notes 2 and 10 to the Consolidated Financial Statements in this report.

**ITEM 1A. RISK FACTORS**

DESC's business is influenced by many factors that are difficult to predict, involve risks and uncertainties that may materially affect actual results and are often beyond its control. A number of these risk factors have been identified in DESC's 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. There have been no material changes with regard to the risk factors previously disclosed in DESC's 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.

**ITEM 5. OTHER INFORMATION**

During the last fiscal quarter, none of DESC's 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.

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**ITEM 6. EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [<u>Amended and Restated Articles of Incorporation, effective April 29, 2019 (Exhibit 3.1, Form 8-K filed April 29, 2019, File No. 1-3375).</u>](https://www.sec.gov/Archives/edgar/data/91882/000009188219000005/amendedrestatedarticles.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | [<u>Amended and Restated Bylaws, effective April 29, 2019 (Exhibit 3.2, Form 8-K filed April 29, 2019, File No. 1-3375)</u>](https://www.sec.gov/Archives/edgar/data/91882/000009188219000005/amendedrestatedbylaws.htm). |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1 | Dominion Energy South Carolina, Inc. agrees to furnish to the U.S. Securities and Exchange Commission upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of its total consolidated assets. |
| &nbsp;&nbsp;&nbsp;&nbsp;31.a | [<u>Certification by Chief Executive Officer of Dominion Energy South Carolina, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).</u>](ck0000091882-ex31_a.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;31.b | [<u>Certification by Chief Financial Officer of Dominion Energy South Carolina, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).</u>](ck0000091882-ex31_b.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.a | [<u>Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Dominion Energy South Carolina, Inc. as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).</u>](ck0000091882-ex32_a.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;101 | The following financial statements from Dominion Energy South Carolina, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed on May 1, 2026, formatted in iXBRL (Inline eXtensible Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Changes in Common Equity, and (v) the Notes to Consolidated Financial Statements. |
| &nbsp;&nbsp;&nbsp;&nbsp;104 | Cover Page Interactive Data File (formatted in iXBRL (Inline eXtensible 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.

---

| | | |
|:---|:---|:---|
|  | **DOMINION ENERGY SOUTH CAROLINA, INC.** | **DOMINION ENERGY SOUTH CAROLINA, INC.** |
|  |  | (Registrant) |
|  | By: | /s/ Gary G. Ratliff, Jr. |
| Date: May 1, 2026 |  | Gary G. Ratliff, Jr. |
|  |  | Vice President, Controller and Chief Accounting Officer |

---

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## Ex-31.A

Exhibit 31.a

I, Edward H. Baine, certify that:

1. I have reviewed this report on Form 10-Q of Dominion Energy South Carolina, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 1, 2026 | /s/ Edward H. Baine |
|  | <br>Edward H. Baine<br>Chief Executive Officer |

---

------

## Ex-31.B

# Exhibit 31.b
I, Steven D. Ridge, certify that:

1. I have reviewed this report on Form 10-Q of Dominion Energy South Carolina, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 1, 2026 | /s/ Steven D. Ridge |
|  | <br>Steven D. Ridge<br>Executive Vice President and<br>Chief Financial Officer |

---

------

## Ex-32.A

# Exhibit 32.a
CERTIFICATION PURSUANT TO<br>18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Dominion Energy South Carolina, Inc. (the "Company"), certify that:

1. the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (the "Report"), of the Company to which this certification is an exhibit fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)).

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of March 31, 2026, and for the period then ended.

---

| |
|:---|
| &nbsp;&nbsp;/s/ Edward H. Baine |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>Edward H. Baine<br>Chief Executive Officer<br>May 1, 2026 |

---

---

| |
|:---|
| &nbsp;&nbsp;/s/ Steven D. Ridge |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>Steven D. Ridge<br>Executive Vice President and<br>Chief Financial Officer<br>May 1, 2026 |

---

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