Dominion Energy, Inc. (D, NYSE)
Industry: Utilities - Regulated Electric
Annual report, fiscal year 2018


## We are






## CONTENTS

IFC Company Profile

6 CEO Letter

15 Consolidated Financial Highlights

16 Dominion Energy Performance Charts

18 Dominion Energy Businesses

20 Dominion Energy Operating and Service Areas

22 GAAP Reconciliations

23 Directors and Officers

24 Shareholder Information

Nearly 7.5 million customers in 18 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable and safe energy and is one of the nation's largest producers and transporters of energy with about $100 billion of assets providing electric generation, transmission and distribution, as well as natural gas storage, transmission, distribution and import/export services. The company expects to cut generating fleet carbon dioxide emissions 80 percent by 2050 and reduce methane emissions from its gas assets 50 percent by 2030. \( ^{*} \)  Please visit www.DominionEnergy.com to learn more.

* Important note: Carbon and methane emissions reduction targets apply only to the Power Generation Group and Gas Infrastructure Group, respectively. The company expects to update its targets to include the Southeast Energy Group later this year.

Our statements about the future are subject to various risks and uncertainties. For factors that could cause actual results to differ from expected results, see Item 1A. Risk Factors, Forward-Looking Statements in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the year ended Dec. 31, 2018.

Shareholders receiving this Summary Annual Report in connection with our 2019 Annual Meeting of Shareholders should read it together with our 2018 Annual Report on Form 10-K. This Summary Annual Report includes only financial and operating highlights and should not be considered a substitute for our full financial statements, inclusive of footnotes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K. A copy of the Form 10-K, including the full financial statements, accompanies this Summary Annual Report and may also be obtained free of charge through our website at www.DominionEnergy.com or by writing to our Corporate Secretary at PO. Box 26532, Richmond, Virginia 23261-6532.



We are

REVITALIZING OUR COMMUNITIES



We are

PROTECTING
THE PLANET



We are

COMMITTED TO A
DIVERSE WORKFORCE
AND SUPPLIER BASE



We are

MEETING OUR
CUSTOMERS'
ENERGY NEEDS
EVERY DAY





Dominion Energy








## COMMITTED TO DELIVERING
CLEAN ENERGY

Everyone deserves a clean planet. And everyone has a role to play in protecting our environment. We are doing our part by rapidly moving away from fuel sources such as coal and investing heavily in low- and no-carbon energy such as natural gas, nuclear, solar and wind.



50%

of Dominion Energy’s total 2018 production at its generating facilities from non-carbon-emitting sources

Solar
Nine States

Since 2013 we have invested more than $3.5 billion in renewables and have increased our total solar generation portfolio, including third-party generating capacity for our customers, from 41 megawatts to nearly 2,600. This past year we brought online 136 megawatts of solar generation at six facilities, and we are planning to add another 3,000 megawatts of new solar or wind in Virginia by 2022.




Offshore Wind
Virginia Beach, Va.



Carbon-Free
Nuclear Power
Surry County, Va.

Our carbon-free nuclear fleet will continue to play a central role in reducing and preventing carbon emissions. Our four nuclear stations provide enough energy to power 1.5 million homes in the Southeast, mid-Atlantic and New England.
In August, we announced the launch of our Coastal Virginia Offshore Wind pilot project – only the second such project in the country, and the first owned by an electric utility. We expect it to enter service in 2020.

## We are

## REDUCING
CARBON
EMISSIONS

Last year we met our goal of reducing carbon dioxide emissions at our power generating facilities by nearly 50 percent since 2005. So we are committing your company to continue this progress to meet an 80 percent reduction in carbon emissions at our power generation fleet by 2050.



We are

# LOWERING METHANE EMISSIONS: A SUSTAINABLE ENERGY FUTURE

We recognize the urgent need to reduce greenhouse-gas emissions. And because different results require different ways of doing things, sustainability and innovation must go hand-in-hand. We are using a mix of new technologies and existing ones to reduce methane emissions from our gas infrastructure 50 percent by 2030.



Gas
Infrastructure
Multiple States
Your company safely and reliably delivers natural gas over its pipeline system to 3.4 million Dominion Energy gas utility customers and to several manufacturing and industrial customers and other gas utilities. We plan to spend billions of dollars over the next decade to expand and modernize that network of pipes and compressor stations to make it safer and cleaner — and meet demand growth.




Grid
Transformation
Virginia
Smart meters, intelligent grid devices, burying vulnerable lines, automated control systems and tighter security will harden the grid, making it safer and more resilient.

## We are

## SECURING OUR
ENERGY FUTURE

Today’s evolving challenges include ensuring that power and gas delivery remains free from interruptions caused by accidents, weather, security threats or a lack of up-to-the-moment information. To tackle such issues, we have developed a comprehensive strategy — and we are working with our regulators to implement it.



Cove Point
Lusby, Md.

In April 2018, we began commercial operations of the $4.1 billion Cove Point liquefaction project. The facility, situated on the western shore of the Chesapeake Bay, liquefies natural gas for export to countries such as India and Japan that need new natural gas supplies to fuel their economies and promote cleaner air.



## DEAR INVESTORS:

For longer than a century, our stakeholders have relied on Dominion Energy to provide stability in a changing world. By living our core values — as they are embedded in our corporate culture — we have provided safe, reliable and affordable energy to meet the needs of our customers and communities, as well as the expectations of our investors.

We are proud of this legacy — but we know that our company’s distinguished past will not guarantee a prosperous future. We live in a rapidly evolving world. We are determined not only to respond to that evolution, but to drive it forward.



Thomas F. Farrell, II

Chairman, President and CEO



In 2018 we formally added a core value to our existing values of Safety, Ethics, Excellence and One Dominion Energy: Embrace Change.

Welcoming – in fact, propelling – change has been a part of our culture since the company’s earliest days, when our corporate ancestors built canals for commercial trade and operated electric streetcars as a form of public transportation. Today, we conduct vastly different enterprises. But the goals of transformation, adaptability and growth remain key parts of our DNA. We will succeed because we are resourceful, reliable and resilient.

## Resourceful

Resourcefulness requires the ability to use a company’s resources at hand. And one cannot be fully or successfully resourceful without a culture rooted in safety. Operate safely, and everything else follows.

Since 2010 your company has cut its injury rate in half. We had our best safety year ever in 2018, with just 89 OSHA recordable injuries in 32 million hours worked by our employees. This equates to an OSHA recordable incident rate of 0.55, eclipsing our company’s 2017 record of 0.60. This achievement is the product of a vigorous and sustained effort across our entire company.

As an energy provider, your company has a proud history of safety but also of building and acquiring assets and businesses to grow and serve more customers. Since 2007, Dominion Energy’s total assets have increased by $50 billion, more than doubling our asset base. We have added new service areas in Idaho, North Carolina, South Carolina, Utah and Wyoming, and now operate in 18 states.

Part of this growth included our combination with Cayce, S.C.-based SCANA Corporation, on Jan. 1, 2019. Dominion Energy is now a company with nearly 7.5 million utility and retail customer accounts, and more than 200,000 miles of electric wires and gas pipelines.

This combination, valued at $13.4 billion, took a year to complete, with seven federal and state approvals received. South Carolina regulators agreed to a Dominion Energy proposal in which electric customers at South Carolina Electric & Gas Company (SCE&G) will benefit over the long term from nearly $4.5 billion in Dominion Energy-funded refunds, write-downs and assumption of financial obligations related to two nuclear reactors in Jenkinsville, S.C., that will not be completed.

The approvals reduced monthly bills for SCE&G electric customers, and provided rate credits for gas customers of SCE&G and Public Service Company of North Carolina (PSNC Energy). For the Carolinas, this means stability and greater dependability. For Dominion Energy, it means owning and operating stable, regulated utilities serving high-growth areas of the Sun Belt that are now part of our new Southeast Energy Group (SEG) operating segment. We expect SEG to produce operating earnings accretion of approximately 10 cents per share in 2019.*

SCE&G and PSNC Energy have had combined customer growth of 11.3 percent over the past five years, and now serve 1.7 million utility customer accounts.

## LNG Leadership: A Low-Carbon, Clean Future

In July, U.S. Energy Secretary Rick Perry joined us in Lusby, Md., to celebrate our Cove Point liquefaction project that supports the transport of clean U.S. natural gas to energy-deficient places around the world through our customers in India and Japan. With liquefied natural gas (LNG) from our facility, these countries can reduce their carbon emissions and power their economies. As of Feb. 1, 2019, 50 tankers had taken LNG from Cove Point.




We are

## GIVING BACK TO
OUR COMMUNITIES

We want to make the world a better place. One way we do that is by contributing to the communities we serve — and beyond. In 2018 we directed almost $35 million to worthy causes.

We provided energy assistance to more than 30,000 households facing hard times; made grants to more than 1,500 arts, cultural, educational, human-needs and other organizations; and matched more than 5,000 employee donations to nonprofit groups. In addition, our employees gave 126,000 hours of their time to volunteer efforts that benefit veterans in need and protect our planet, among other things.

At $4.1 billion, Cove Point liquefaction is the largest infrastructure project in Dominion Energy’s – and Maryland’s – history, in real dollars, and is expected to produce approximately $700 million annually in earnings before interest, taxes, depreciation and amortization.

The facility also provides a critical service for a handful of natural gas local distribution companies (LDCs) in the mid-Atlantic. Those utilities withdraw gas – which has been delivered by pipeline, liquefied, and stored in our tanks – when constraints exist on their systems, helping alleviate service interruptions and supply-and-demand-related price spikes for their customers.

## Atlantic Coast Pipeline

Last year we began constructing the Atlantic Coast Pipeline (ACP), representing an investment estimated between $7 billion and $7.5 billion for Dominion Energy and its partners. ACP was developed with best-in-class design and is being built with the strongest environmental protections and the most stringent regulatory oversight of any pipeline in the mid-Atlantic region’s history. While the project has been approved by the Federal Energy Regulatory Commission (FERC), construction is temporarily on hold while other federal permits are resolved.

The pipeline is critical to the economic vitality, environmental health and energy security of Virginia and North Carolina. It will allow public utilities in the region to continue the transition from coal to cleaner natural gas and renewables. It will also provide the infrastructure urgently needed for economic growth in a pipeline-constrained region where major industries are having their natural gas service shut off on the coldest days and new industries wishing to locate there are being turned away.




80%

TARGETED CARBON
EMISSIONS REDUCTION FOR
OUR GENERATION FLEET,
2005–2050

50%

INCREASE IN ENERGY EFFICIENCY
SAVINGS IN NATURAL GAS
BUSINESSES THROUGH 2025

* Non-GAAP measures. See p. 22 for Reconciliation of Reported Earnings to Operating Earnings.

** Non-GAAP measures. See p. 22 for GAAP Reconciliation of 2019 Operating Earnings Per Share Guidance and Contribution From Southeast Energy Group.

## Reliable

We turned in robust financial performance in 2018 – while keeping energy affordable for our customers: Our electric rates in Virginia and the Carolinas are substantially below East Coast and national averages. We earned recognition from The Wall Street Journal as the best-managed electric and gas utility company, and from G.I. Jobs as one of the most military-friendly companies in the U.S.

Earnings under Generally Accepted Accounting Principles (GAAP) were $3.74 per share in 2018, down from $4.72 per share in 2017.

From last year’s letter, you know we expected operating earnings per share growth of at least 10 percent in 2018, and Dominion Energy met that goal. Your company reported 2018 operating earnings of $4.05 per share, up from $3.60 per share in 2017.*

In 2019, we expect operating earnings between $4.05 and $4.40 per share, \(*\) which represents, at the midpoint, 5.6 percent year-over-year growth to 2018's weather-normalized results. \(*\) We expect continued earnings growth through 2020 that will allow us to achieve the 6 to 8 percent compounded annual growth rate guidance range we provided in early 2017.

Your company also returned $3.34 per share to you in dividends, a 10 percent increase over the 2017 dividend rate. Subject to quarterly declaration and determination by the Board of Directors, Dominion Energy expects to pay $3.67 per share in dividends in 2019, another anticipated 10 percent increase.

Dominion Energy’s total shareholder return in 2018 was -7.6 percent, largely as a result of a 12 percent drop in our share price in the month following a policy revision from FERC limiting the ability of master limited partnerships (MLPs) such as Dominion Energy Midstream Partners to recover an income tax allowance.

We believe that investing in Dominion Energy is a solid, long-term proposition. Your company’s total shareholder return growth, over the past 10 years, including dividends, of 201.3 percent is 48 percentage points higher than that of the Philadelphia Utility Sector Index.

## Big Projects to Big Programs

Reliability in our operations depends on planning future investments in new technology to strengthen and improve our systems.

We have begun a shift from big projects to big programs, offering a substantial demonstration of our ability to evolve. While we have no intention of abandoning major infrastructure investments when market conditions warrant them, we are now turning our attention to more programmatic enterprises.

In 2018, we began a 10-year, up to $3 billion upgrade program for the electric grid in Virginia, made possible by the Commonwealth’s Grid Transformation and Security Act of 2018. We expect that effort to enable us to move forward in multiple areas — from cleaner energy to smarter, stronger systems:

We have committed to have an additional 3,000 megawatts of new solar and wind – enough to power 750,000 homes – under development or in operation by the beginning of 2022. This is incremental to the nearly 1,800 megawatts of company-owned or -partnered solar generating capacity that had entered service by the end of 2018.



We are

# TRANSFORMING
OUR NATURAL
GAS BUSINESS



We are launching an historic, industry-leading initiative to reduce methane emissions in our natural gas infrastructure businesses by 50 percent over the next decade. This initiative will prevent more than 430,000 metric tons of methane from entering the atmosphere — the equivalent of taking 2.3 million cars off the road for a year or planting nearly 180 million trees.

To get there, we are taking steps such as reducing or eliminating venting during maintenance and inspection; replacing older equipment with new, lower-emissions equipment; and expanding leak-detection and repair programs across our entire system.

Examples include our program to replace natural gas-powered pumps at gas-producing wells with solar-powered pumps, which reduces emissions at these facilities by more than 90 percent, and our innovative use of Zero Emissions Vacuum and Compression (ZEVAC \( ^{\circledR} \) ) technology that captures methane before maintenance or inspection and recycles it for use in other parts of the system.
We are working with our regulators at the State Corporation Commission of Virginia (SCC) to move forward with a five-year, approximately $470 million plan to deploy 2.1 million smart meters to give our customers more control over how and when they use energy.

We anticipate deploying automated control systems and other smart-grid devices to not only speed the restoration process during outages by quickly identifying and isolating the causes but also help protect the grid against cyber and physical attacks. And

We will propose at least $870 million worth of energy-conservation programs over the next decade.

Along with the grid transformation program, we expect continued growth in our regulated gas businesses:

Up to $350 million per year to replace pipelines at our gas LDCs in Ohio, Utah and West Virginia that improve safety and reliability, and reduce methane emissions.

Up to $250 million per year beginning in 2021 to modernize and improve the resiliency of our gas transmission system, which would also make our service safer for our neighbors, more dependable for our customers and cleaner for our planet. And

A two-year investment of approximately $450 million in gas transmission and distribution network expansions to better serve our customers.

As we work through the integration process with SEG, we will determine any additional growth and reliability projects beyond the approximately $400 million in projects already identified for 2019 and include them in our capital plans going forward.

## Resilient

We aim to be resilient and adaptable to changing market and regulatory conditions. For instance, since 2014, we have told investors that Dominion Energy Midstream would provide a unique and valuable source of low-cost capital to support our robust regulated capital investment programs. However, in March 2018, FERC unexpectedly revised long-standing policy regarding how assets owned by MLPs can recover income taxes in rates. As a result, MLP equity capital markets, including our MLP, lost nearly $30 billion of market capitalization in less than two weeks.

In response, we were among the very first companies to petition FERC to reconsider its decision, and we took a number of steps to defend the MLP structure — including continuing to grow the distribution to Dominion Energy Midstream unitholders. Yet when it became clear that the MLP structure was going to continue to be challenged, we made a decision to acquire all Dominion Energy Midstream units and merge the MLP into Dominion Energy, much like several other sponsor-owned MLPs. We completed the $1.6 billion merger in January 2019.

At the same time we moved expeditiously to alter our financing strategy for 2018 that had been affected by the FERC policy revision and by the effects of federal tax reform on our regulated businesses' cash flows. We reduced parent-level debt by approximately $8 billion through non-core assets sales, equity issuances and asset-level financing. These steps allowed us to achieve our parent-level leverage targets two years early, and resulted in the affirmation of our existing ratings by credit ratings agencies.



## ACP: A Needed Pipeline





The 600-mile Atlantic Coast Pipeline project is expected to deliver cleaner, lower-cost and more reliable energy supplies from West Virginia to consumers across Virginia and North Carolina. The project is essential to the energy security, economic vitality and environmental health of the region — and federal regulators agree.

Construction was halted in late 2018 when a federal court issued an injunction regarding a federal permit. We believe the issue can be resolved to recommence construction in the third quarter of 2019.

## A Bright Future

Reasons for optimism at Dominion Energy crowd the horizon. They include the shift toward electric cars and trucks, which will increase demand for electricity and also for extensive recharging infrastructure that Dominion Energy is well-positioned to provide.

In 2018 we embraced our mission to drive forward with renewed zeal — and with impressive results. We set new records in safety and operations, and new targets for environmental performance. We launched a variety of ventures in emerging markets. We embarked on ambitious programs to transform the electric grid, grow our renewable-energy fleet, and make our gas business cleaner and more sustainable.

Through internal initiatives, we are overhauling business practices and supply-chain management. These efficiency and cost-cutting efforts can save hundreds of millions of dollars, enabling us to keep our services affordable and price-competitive in an increasingly dynamic energy marketplace.

## Transitioning to Cleaner Energy

Our grid transformation program will enable a more seamless integration of renewable energy and distributed generation such as rooftop solar. It is just one of many ways Dominion Energy is moving swiftly to cleaner, low-carbon or zero-carbon energy.

We have made tremendous progress.

In 2017, the last year of available data, your company’s carbon emissions from power generating facilities were reduced by 27 million metric tons from 2005. And our gas infrastructure businesses have been highly focused on reducing methane emissions. These businesses have already prevented 4.5 million metric tons of  \( CO_{2} \) -equivalent emissions since 2010.

So we have set new targets. We intend to reduce our carbon emissions at our generation facilities by 55 percent by 2030 and commit to an 80 percent reduction in carbon emissions by 2050.* Both targets are based on a 2005 baseline year. We also intend to lower methane emissions from our natural gas businesses 50 percent by 2030 (as measured against a 2010 baseline).*

By the end of 2018, our legacy gas transmission and distribution companies had joined a variety of voluntary methane-reduction and -reporting initiatives such as Natural Gas Star, EPA Methane Challenge and the ONE Future Coalition, and they have committed to a 50 percent increase in energy efficiency savings by 2025.

We are achieving these environmental targets by shifting from coal-fired generation to natural gas, replacing older and less-efficient gas infrastructure, and moving briskly into renewable energy. In the past five years we have expanded our nearly non-existent solar portfolio to one that ranks fourth among investor-owned utilities — and we are aiming even higher. Many of you have asked for cleaner energy. We have been listening, and we are responding.

In December we began operating the $1.3 billion, 1,588-megawatt Greensville County Power Station, a combined-cycle natural gas plant that boasts some of the most environmentally stringent permits and places itself among the most efficient gas-powered generating facilities in the nation.

In August we took another big step toward a clean-energy future when we filed for approval of our Coastal Virginia Offshore Wind project — a two-turbine, 12-megawatt venture that would be only the second offshore wind project in the nation, and the first owned and operated by a U.S. electric utility. Virginia regulators approved the $300 million project in November, and we expect it to enter service in late 2020.



The gas infrastructure side of our business is also intensifying its efforts to transition to a lower carbon future. We are modernizing our pipeline infrastructure and services to support the greater use of renewables and the electrification of homes and transportation. To combat climate change, we are reducing methane emissions from our natural gas infrastructure. We are expanding energy-efficiency programs and integrating more renewable natural gas into our system to shrink our customers' environmental footprint. And we are investing in innovative gas delivery methods that do not require significant new infrastructure but do encourage more customers to switch from higher-carbon fuels. For example, we are pursuing opportunities in Utah to reposition our 24 natural gas vehicle fueling stations to allow renewable natural gas and support large commercial natural gas vehicle fleets, as well as school-bus fleets that are using nearly-zero NOx natural gas engines.

These steps are not just good for our planet; they benefit our customers and shareholders, too. A diverse energy mix protects consumers against price spikes that might affect one particular fuel source — and buffers the company against market fluctuations, political upheavals and regulatory intervention.

## Maintaining Carbon-Free Nuclear Option

Dominion Energy’s four-station, seven-unit, 6,000-megawatt nuclear fleet provides safe, round-the-clock carbon-free electric generation. Our country’s clean-energy future relies on the continued performance of the more than 90 reactors in operation today throughout our nation.

To that end, Dominion Energy has notified the Nuclear Regulatory Commission (NRC) of our intent to relicense the Surry and North Anna stations for additional 20-year terms, ensuring that our Virginia customers will continue to benefit from this non-emitting source of energy for decades to come. We filed the Surry application in October 2018 and expect to file the North Anna application in 2020. The company is also considering a license renewal at the 971-megawatt V.C. Summer station in South Carolina. We operate the facility and own two-thirds of its capacity.

In addition, we have also received regulatory approval for our Millstone nuclear units in Connecticut to compete in zero-carbon energy auctions — a recognition of nuclear power’s increasingly important role in a low-carbon energy future. This development is one step toward enabling a more stable revenue stream for the station in coming years.

## New Energy Sources, New Businesses

Late last year, Dominion Energy’s Gas Infrastructure Group partnered with REV LNG to form Niche LNG, a new joint venture that will help customers in pipeline-constrained regions switch from heating and fuel oil to cleaner natural gas. LNG produces one-third less carbon emissions than oil and is delivered to customers by truck, rail or barge without having to build new pipelines.

We also launched an exciting new partnership with Smithfield Foods — known as Align Renewable Natural Gas — to capture methane from up to 90 percent of Smithfield’s hog farms in North Carolina, Utah and Virginia, and convert it into clean, renewable natural gas to generate electricity, heat homes, and power local industries. We are also exploring the potential for wider-scale use across the country.

These are just a few of the many ways we are harnessing the power of innovation to meet the needs of our customers, reduce their environmental footprint, and position our company for sustainable growth in the changing energy landscape.
Nearly

1 in 5

new hires
is a veteran






We are

# MAKING IT A PRIORITY
TO RECRUIT AND RETAIN
MILITARY VETERANS

Nearly one in five new hires has served in America’s armed forces. That is no accident: We work hard to bring veterans into our company and keep them here. Our efforts include the Troops to Energy Jobs program, a veterans’ Employee Resource Group, and generous military-leave and salary-differential benefits for those called to active duty or training. Experience has taught us that veterans bring a skillset any company would cherish – from diligence, safety awareness and a mission-oriented focus to perseverance, problem-solving and an aptitude for leading diverse groups.
We have provided utility bill assistance to more than 2,300 veterans



## Becoming More Sustainable

Investor and customer interest plays a big role in our transition to cleaner energy, but that transition also fits into a broader vision of meeting the needs of today without diminishing the ability to meet the needs of tomorrow.

We look at “sustainability” as more than environmental and social issues. A sustainable company is one that lasts and can adapt to many challenges.

Sustainability means growing shareholder value through clean energy projects and innovation. It also means, importantly, being environmentally and socially responsible, customer-focused, a valued and trusted community partner and an employer of choice. We do not want Dominion Energy to be the biggest energy company, just the best.

To move that vision forward, your Board of Directors established a Sustainability and Corporate Responsibility Committee overseeing the company’s performance as a sustainable organization and responsible corporate citizen. With board oversight, we are focusing on providing greater transparency with an overarching goal of improving performance on environmental, social and governance (ESG) matters.



We are

# BUILDING A BRIGHTER FUTURE
IN SCANA'S COMMUNITIES

On Jan. 1, 2019, your company officially merged with SCANA Corporation, an energy company supplying electric power and natural gas to about 2.1 million customer accounts in the Carolinas and Georgia.

The company’s electric and gas utilities in North Carolina and South Carolina – SCE&G and PSNC Energy – have experienced combined customer growth of more than 11 percent in the past five years. Indeed, PSNC Energy, which serves the fast-growing Raleigh and Asheville areas and the Charlotte suburbs, has nearly 580,000 customer accounts in a state ranked No. 1 for business by Forbes magazine in 2018.

We plan to continue the company’s storied tradition of providing safe, reliable utility service in the Carolinas. And we plan to do so while maintaining – even improving – the excellent customer service to which SCE&G and PSNC Energy’s customers are accustomed.

We plan on aiding economic development efforts in the Carolinas by keeping electric and gas bills affordable and by working with current and prospective employers to show them how we can provide them with on-demand energy. And through philanthropic giving, which will increase SCANA's community giving by $1 million per year over the next five years, we expect to focus on education, environmental stewardship and community needs.

Operating safely, reliably and efficiently and being a valued, trusted community partner will improve the quality of life in SCANA’s neighborhoods and contribute to a brighter energy future there.



Utility Customer Growth
(at SCE&G and PSNC Energy)



SAIDI (Electric reliability)
Average minutes out, excluding
major events at SCE&G

731,000

ELECTRIC UTILITY
CUSTOMER ACCOUNTS
IN SOUTH CAROLINA

957,000

GAS UTILITY CUSTOMER ACCOUNTS IN THE CAROLINAS

1,330MW

PORTFOLIO OF ZERO-CARBON POWER GENERATION CAPACITY



IS BECOMING



~$100B

in total assets for Dominion Energy post-merger, providing energy services in 18 states






## Consolidated Financial Highlights

<table><tr><td>Year ended December 31,</td><td>2018</td><td>2017</td><td>% Change</td></tr><tr><td>FINANCIAL RESULTS (millions)</td><td></td><td></td><td></td></tr><tr><td>Operating revenue</td><td>$ 13,366</td><td>$ 12,586</td><td>6.2%</td></tr><tr><td>Operating expenses</td><td>9,765</td><td>8,649</td><td>12.9%</td></tr><tr><td>Amounts attributable to Dominion Energy:</td><td></td><td></td><td></td></tr><tr><td>Reported earnings</td><td>2,447</td><td>2,999</td><td>-18.4%</td></tr><tr><td>Operating earnings (non-GAAP)*</td><td>2,651</td><td>2,289</td><td>15.8%</td></tr><tr><td>DATA PER COMMON SHARE</td><td></td><td></td><td></td></tr><tr><td>Reported earnings</td><td>$ 3.74</td><td>$ 4.72</td><td>-20.8%</td></tr><tr><td>Operating earnings (non-GAAP)*</td><td>4.05</td><td>3.60</td><td>12.5%</td></tr><tr><td>Dividends paid</td><td>3.340</td><td>3.035</td><td>10.0%</td></tr><tr><td>Market value (intraday high)</td><td>81.67</td><td>85.30</td><td>-4.3%</td></tr><tr><td>Market value (intraday low)</td><td>61.53</td><td>70.87</td><td>-13.2%</td></tr><tr><td>Market value (year-end)</td><td>71.46</td><td>81.06</td><td>-11.8%</td></tr><tr><td>Book value (year-end)</td><td>29.53</td><td>26.59</td><td>11.1%</td></tr><tr><td>Market to book value (year-end)</td><td>2.42</td><td>3.05</td><td>-20.7%</td></tr><tr><td>FINANCIAL POSITION (millions)</td><td></td><td></td><td></td></tr><tr><td>Total assets</td><td>$ 77,914</td><td>$ 76,585</td><td>1.7%</td></tr><tr><td>Total debt</td><td>35,175</td><td>37,324</td><td>-5.8%</td></tr><tr><td>Common shareholders&#x27; equity</td><td>20,107</td><td>17,142</td><td>17.3%</td></tr><tr><td>Equity market capitalization</td><td>48,658</td><td>52,249</td><td>-6.9%</td></tr><tr><td>CASH FLOWS (millions)</td><td></td><td></td><td></td></tr><tr><td>Net cash provided by operating activities</td><td>$ 4,773</td><td>$ 4,502</td><td></td></tr><tr><td>Net cash used in investing activities</td><td>(2,358)</td><td>(5,942)</td><td></td></tr><tr><td>Net cash provided by (used in) financing activities</td><td>(2,209)</td><td>1,303</td><td></td></tr><tr><td>OTHER STATISTICS (shares in millions)</td><td></td><td></td><td></td></tr><tr><td>Common shares outstanding-average, diluted</td><td>$ 654.9</td><td>$ 636.0</td><td></td></tr><tr><td>Common shares outstanding-year-end</td><td>680.9</td><td>644.6</td><td></td></tr><tr><td>Number of full-time employees</td><td>16,017</td><td>16,200</td><td></td></tr></table>

* Non-GAAP financial measures. See page 22 for GAAP Reconciliations.



OPERATING EARNINGS (non-GAAP)*

DOLLARS PER SHARE

* Non-GAAP financial measures. See page 22 for GAAP Reconciliations.



YEAR-END STOCK PRICE

DOLLARS PER SHARE

Source: Bloomberg



TARGETED DIVIDEND INCREASE*

DOLLARS PER SHARE

* Dividends are subject to quarterly declaration and determination by the Board of Directors.



## Dominion Energy Performance Charts





47% Reduction in Carbon Emissions — 9% Decrease in Generation (MWh)

Through 2017, Dominion Energy’s power generation fleet has reduced carbon emissions by 47 percent since 2005, based on ownership, which includes assets acquired and divested during this time period.



## DOMINION ENERGY METHANE REDUCTIONS

## Reported to EPA from Natural Gas Businesses

Natural Gas Businesses include: Dominion Energy Transmission; Dominion Gathering & Processing; Dominion Energy Ohio; Dominion Energy Questar Pipeline; Dominion Energy Utah; Dominion Energy Wexpro; Dominion Energy West Virginia; Dominion Energy Cove Point; and Dominion Energy Carolina Gas Transmission.



Existing Reporting Requirements since 2011 ■ New Reporting Requirements in 2016



## We Believe in
Our Core Values



Safety



Ethics



Excellence



Embrace
Change



One Dominion
Energy

From time to time, uncertainty is bound to crop up. If you don’t know what you believe, then you won’t know which way to turn when it does. A moral compass points the way. We have long been guided by our core values of Safety, Ethics, Excellence and One Dominion Energy. In 2018 we added a new value – Embrace Change – to recognize the need for agility and innovation in a world of accelerating transformation.
We have issued a Climate Report detailing the challenges and opportunities of building a low-carbon future, a second, comprehensive Sustainability and Corporate Responsibility Report and industry ESG metrics disclosures. We participated in climate, forestry and water surveys issued by the CDP (formerly the Carbon Disclosure Project). We have set aggressive environmental targets. And we are reinforcing a corporate culture where respect and inclusion are second nature.

## Committed to Our Stakeholders

It is important that our workforce reflects the communities it serves, and independent research proves that diversity benefits the bottom line. Beyond that, it is integral to our core value of ethics: We believe in treating everyone well, no matter where they come from or who they are.

Through energy-assistance programs, corporate direct giving, the Dominion Energy Charitable Foundation and matching gifts, we contributed nearly $35 million to organizations that improve the quality of life in the communities where our employees live and work.

Many facets of our company have changed over the years. Many more are changing now. But our commitment to business fundamentals and to good works never will.

Another practice that will never change is our commitment to our customers. And that commitment does not go unnoticed.

Consider this letter from Leon in Virginia Beach written in January 2018:

Because of unusually heavy snow in our area of the state, we lost power around 1 a.m.... I fully expected to be without electricity for several hours, but the Dominion Energy crew had me up and running again within three hours. That was incredible... If it is possible, please pass along my wife's and my heartfelt gratitude to those individuals — including the line crews — who got us back online so quickly. You should be proud of the excellent customer service these folks provide.

We expect nothing less of our employees, and remain proud of the work they do to keep the furnaces blowing and the lights on.

Dominion Energy is not just an energy company, we are your energy company – and we are determined to remain so through superior service to customers, solid returns for investors, innovation and a fierce devotion to doing the right thing at all times.

We look forward to what this year and the future will bring. We hope you do, too – and, as always, we thank you for investing in Dominion Energy.

Sincerely,



Thomas F. Farrell, II

Chairman, President and CEO



# OUR
BUSINESSES

Dominion Energy operates in 18 states and supplies sustainable, safe, reliable and affordable energy.

## 7.5M

CUSTOMER ACCOUNTS SERVED BY DOMINION ENERGY

## DOMINION ENERGY SAFETY PERFORMANCE \( ^{*} \) 



* Recast to reflect the inclusion of certain incidents of hearing loss that may be work-related and therefore recordable under OSHA regulations
Through Dec. 31, 2018

OHSA recordable injury and OSHA recordable Lost Time/Restricted Duty Incident Rates are calculated using the total number of events reported  \( \times $ 200,000 divided by the total number of work hours.



Operates the company’s diverse-fuel fleet of power stations serving electric utility customers in Virginia and North Carolina and supplying electric power to wholesale markets and to other utilities under long-term power purchase agreements. These power facilities account for 26,000 megawatts of electric generating capacity.

## PRINCIPAL BUSINESS LINES

• Utility power production

• Merchant power production

## 2018 HIGHLIGHTS

• Placed in operation the $1.3 billion, combined-cycle natural gas facility in Greensville County, Va.

• Placed in operation 136 megawatts of solar generation at six solar facilities and signed additional solar agreements representing 415 megawatts.

• Received approval to construct the Coastal Virginia Offshore Wind pilot project.

• Filed an application with the Nuclear Regulatory Commission (NRC) to relicense Surrey Power Station for an additional 20 years.

## 2019 EXPECTATIONS

• Maintain a superior safety record.

• Continue developing and constructing zero-carbon-emitting solar arrays and offshore wind turbines.

• Modify existing coal-fired stations to improve coal-ash disposal processes; and safely store coal ash either onsite or at local landfills.

• Prepare to file an application to relicense the North Anna Power Station in 2020.



## Power Delivery

## 19%

of 2018 Primary
Operating Segment
Earnings

Operates regulated electric transmission and distribution franchises in Virginia and northeastern North Carolina, providing electric service to about 2.6 million customer accounts in the two-state area.

## PRINCIPAL BUSINESS LINES

• Electric transmission.

• Electric distribution.

## 2018 HIGHLIGHTS

- Energized 18 data centers, representing a 38 percent increase in the number of data centers and a 9 percent increase in projected electric demand.

• Placed into service more than $900 million of electric transmission assets.

- Filed the first-ever grid transformation plan with Virginia’s State Corporation Commission (SCC).

• Placed underground the 1,000th mile of outage-prone overhead tap lines.

## 2019 EXPECTATIONS

• Maintain a superior safety record.

- Begin implementing the nearly $100 million telecommunications and physical and cyber security grid transformation plan approved by the SCC, and file another grid transformation application with the commission this summer.

• Place 220 miles of outage-prone overhead tap lines underground.

• Invest more than $700 million in electric transmission projects, including 500-kilovolt and 230-kilovolt rebuilds.

## Gas
Infrastructure

## 40%

of 2018 Primary
Operating Segment
Earnings

Operates one of the nation’s largest natural gas storage systems; 14,800 miles of natural gas transmission, gathering and storage pipelines; natural gas distribution systems serving 2.4 million customer accounts in five states; a liquefied natural gas terminal; and Dominion Energy Solutions. It also includes our partnership in Atlantic Coast Pipeline, LLC.

## PRINCIPAL BUSINESS LINES

• Natural gas transmission and storage

• Natural gas distribution

• Liquefied natural gas services

• Retail energy marketing

## 2018 HIGHLIGHTS

• Placed into service the $4.1 billion Cove Point liquefied natural gas terminal in Maryland.

- Began construction on the $7–$7.5 billion Atlantic Coast Pipeline and the $650–$700 million Supply Header project.

• Completed Dominion Energy Carolina Gas' largest project, the $126 million Charleston project.

• Announced a $250 million partnership with Smithfield Foods to capture methane from hog farming operations and convert it to natural gas for use by utilities and manufacturers.

## 2019 EXPECTATIONS

• Maintain a superior safety record.

• Recommence construction on the Atlantic Coast Pipeline and associated Supply Header project in the third quarter.

• Invest more than $320 million in LDC pipeline replacement programs in three states.

• Develop innovative service enhancements to support increased renewables and promote renewable natural gas.



## OUR OPERATING
AND SERVICE
AREAS

Your company’s businesses are principally based along the Eastern Seaboard and in the western Rockies region of the United States.

PLANNED GROWTH
CAPITAL EXPENDITURES \( ^{*} $ 
2019 ESTIMATED:

## $4.0B

## POWER GENERATION

This operating segment consists of a power generation fleet fueled by nuclear, natural gas, coal, oil, biomass, water, wind and the sun. It provides electricity to utility customers and wholesale power markets, and under long-term contracts with other electric utilities and municipalities.

## SOUTHEAST ENERGY

In 2019, Dominion Energy will begin reporting earnings at a fourth operating segment, the Southeast Energy Group. This segment houses the operating and services companies of SCANA Corporation, which combined with Dominion Energy on Jan. 1, 2019. It includes electric generation, transmission and distribution in

## Our Footprint



## POWER DELIVERY

This operating segment operates about 65,000 miles of electric transmission and distribution lines in West Virginia, Virginia and North Carolina, and serves about 2.6 million electric utility customer accounts in Virginia and North Carolina.

## GAS INFRASTRUCTURE

With assets in the Appalachian Basin, mid-Atlantic, Southeast and western Rockies, this operating segment has natural gas gathering, processing, storage, liquefaction, transmission and distribution facilities in 12 states and provides gas through utility service or competitive supply contracts to approximately 2.7 million customer accounts.

South Carolina; gas distribution in North Carolina and South Carolina; and a competitive and regulated gas supply business principally serving Georgia. Together, the companies managed by the Southeast Energy Group have about 2.1 million customer accounts.




## KEY

□ Electric Distribution
– Electric Transmission Lines (Bulk Delivery/500-Kilovolt Lines)
– Gas Transmission Pipelines
☑ Electric & Natural Gas Distribution (South Carolina)
-- Proposed Atlantic Coast Pipeline
▲ Cove Point LNG Facility
▲ Hastings Facility
☑ Utica Shale Boundary
☑ Marcellus Shale Boundary
☑ Natural Gas Underground Storage Pools
☐ Regulated Gas Distribution
☑ Biomass
☑ Coal
☑ Hydro
☑ Natural Gas
☑ Nuclear
☑ Oil/Gas
☑ Oil
☑ Solar
☑ Wind
☑ Proposed Offshore Wind
★ Richmond, Va.
Corporate Headquarters and Competitive Gas Supply Business
○ Electric and Gas Service/
Base Privatization
☑ Atlanta, Ga.
Competitive & Regulated Gas Supply Business



## Reconciliation of Reported Earnings (GAAP) to Operating Earnings (non-GAAP)

<table><tr><td>(MILLIONS, EXCEPT PER SHARE AMOUNTS)</td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td></tr><tr><td>REPORTED EARNINGS (GAAP)</td><td>$ 1,310</td><td>$ 1,899</td><td>$ 2,123</td><td>$ 2,999</td><td>$ 2,447</td></tr><tr><td>Adjustments to reported earnings¹:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Pre-tax loss (income)</td><td>1,166</td><td>220</td><td>359</td><td>235</td><td>201</td></tr><tr><td>Income tax</td><td>(473)</td><td>(79)</td><td>(135)</td><td>(945)</td><td>3</td></tr><tr><td></td><td>693</td><td>141</td><td>224</td><td>(710)</td><td>204</td></tr><tr><td>OPERATING EARNINGS (non-GAAP)*</td><td>$ 2,003</td><td>$ 2,040</td><td>$ 2,347</td><td>$ 2,289</td><td>$ 2,651</td></tr><tr><td>EARNINGS PER COMMON SHARE - DILUTED:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>REPORTED EARNINGS (GAAP)</td><td>$ 2.24</td><td>$ 3.20</td><td>$ 3.44</td><td>$ 4.72</td><td>$ 3.74</td></tr><tr><td>Adjustments to reported earnings (after-tax)</td><td>1.19</td><td>0.24</td><td>0.36</td><td>(1.12)</td><td>0.31</td></tr><tr><td>OPERATING EARNINGS (non-GAAP)*</td><td>$ 3.43</td><td>$ 3.44</td><td>$ 3.80</td><td>$ 3.60</td><td>$ 4.05</td></tr><tr><td>&#x27;Adjustments to reported earnings are reflected in the following table:</td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td></tr><tr><td>PRE-TAX LOSS (INCOME):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sale of non-core assets</td><td>-</td><td>-</td><td>-</td><td>-</td><td>(759)</td></tr><tr><td>Impairment of gathering and processing assets</td><td>-</td><td>-</td><td>-</td><td>-</td><td>219</td></tr><tr><td>FERC-regulated plant disallowance</td><td>-</td><td>-</td><td>-</td><td>-</td><td>124</td></tr><tr><td>Impact of Virginia rate legislation</td><td>-</td><td>-</td><td>-</td><td>-</td><td>215</td></tr><tr><td>Net (gain) loss on nuclear decommissioning trust funds</td><td>(72)</td><td>(59)</td><td>(34)</td><td>(46)</td><td>170</td></tr><tr><td>Future ash pond and landfill closure costs</td><td>121</td><td>99</td><td>197</td><td>-</td><td>81</td></tr><tr><td>Merger-related transaction and transition costs</td><td>-</td><td>-</td><td>74</td><td>72</td><td>37</td></tr><tr><td>Charges associated with equity method investments in wind-powered generation facilities</td><td>-</td><td>-</td><td>-</td><td>158</td><td>-</td></tr><tr><td>Charges associated with North Anna and offshore wind facilities</td><td>374</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Producer Services repositioning</td><td>319</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Charges associated with liability management exercise</td><td>284</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Other items</td><td>140</td><td>180</td><td>122</td><td>51</td><td>114</td></tr><tr><td></td><td>$ 1,166</td><td>$ 220</td><td>$ 359</td><td>$ 235</td><td>$ 201</td></tr><tr><td>INCOME TAX EXPENSE (BENEFIT):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Tax effect of above adjustments to reported earnings**</td><td>(433)</td><td>(85)</td><td>(123)</td><td>(94)</td><td>(52)</td></tr><tr><td>Remeasurement of deferred tax balances***</td><td>-</td><td>-</td><td>-</td><td>(851)</td><td>46</td></tr><tr><td>Other income tax adjustments</td><td>(40)</td><td>6</td><td>(12)</td><td>-</td><td>9</td></tr><tr><td></td><td>$ (473)</td><td>$ (79)</td><td>$ (135)</td><td>$ (945)</td><td>$ 3</td></tr></table>

* Dominion Energy uses operating earnings as the primary performance measurement of its earnings outlook and results for public communications with analysts and investors. Dominion Energy management believes operating earnings provide a more meaningful representation of the company's fundamental earnings power.

** Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate.

*** Federal tax reform, enacted in December 2017, reduced the corporate income tax rate from 35 percent to 21 percent, effective Jan. 1, 2018. Deferred taxes are required to be measured at the enacted rate in effect when they are expected to reverse. As a result, deferred taxes were remeasured to the 21 percent. For regulated entities, where the reduction in deferred taxes is expected to be recovered or refunded in future rates, the adjustment was recorded to a regulatory asset or liability instead of income tax expense. During 2018, the companies recorded further adjustments to deferred taxes in accordance with recently released tax reform guidance and to revise estimates made at year-end 2017.

## GAAP Reconciliation of 2019 Operating Earnings Per Share Guidance and Contribution From Southeast Energy Group

In providing its full-year 2019 operating earnings per share guidance and its estimated 2019 operating earnings per share contribution from the Southeast Energy Group (SEG), the company notes that there could be differences between expected reported (GAAP) earnings per share and estimated operating earnings per share for matters such as, but not limited to, acquisitions, divestitures, impairment charges, or changes in accounting principles. At this time, Dominion Energy’s management is unable to estimate the aggregate impact, if any, of these items on reported 2019 earnings for the company or for SEG. Accordingly, Dominion Energy is unable to provide a corresponding GAAP equivalent for its estimated 2019 operating earnings per share contribution from the company or SEG.



## Board of Directors \( ^{*} \) 

## James A. Bennett

South Carolina Mid-South
Area Executive,
First-Citizens Bank & Trust

## Helen E. Dragas

President and Chief Executive Officer,
The Dragas Companies
(real estate development firm)

## Adm. James O. Ellis, Jr., U.S. Navy (Ret.)

Former President and
Chief Executive Officer,
Institute of Nuclear Power Operations

## Thomas F. Farrell, II

Chairman, President and
Chief Executive Officer,
Dominion Energy, Inc.

## D. Maybank Hagood

Chairman and Chief Executive Officer,
Southern Diversified Distributors, Inc.
(floor covering distribution and supply)

## John W. Harris

Chairman and Chief Executive Officer,
Lincoln Harris LLC
(real estate consulting firm)

## Ronald W. Jibson

Retired Chairman, President and Chief Executive Officer, Questar Corporation

## Mark J. Kington

Managing Director,
Kington Management, LP
(private investments)

## Joseph M. Rigby

Retired Chairman, President and Chief Executive Officer, Pepco Holdings, Inc.

## Pamela J. Royal, M.D.

President,
Royal Dermatology and
Aesthetic Skin Care, Inc.

## Robert H. Spilman, Jr.

Chairman, President
and Chief Executive Officer,
Bassett Furniture Industries, Incorporated

## Susan N. Story

President and Chief Executive Officer,
American Water Works Company, Inc.

## Michael E. Szymanczyk

Former Chairman and
Chief Executive Officer,
Altria Group, Inc.

* As of March 1, 2019.

## Executive Leadership

## Thomas F. Farrell, II \( ^{*} \) 

Chairman, President and
Chief Executive Officer

## Robert M. Blue \( ^{*} \) 

Executive Vice President and
President & Chief Executive
Officer – Power Delivery Group

## James R. Chapman \( ^{*} \) 

Executive Vice President,
Chief Financial Officer
and Treasurer

## Paul D. Koonce \( ^{*} \) 

Executive Vice President and
President & Chief Executive
Officer – Power Generation Group

## Diane Leopold \( ^{*} \) 

Executive Vice President and
President & Chief Executive
Officer – Gas Infrastructure Group

## Carter M. Reid

Executive Vice President,
Chief Administrative & Compliance
Officer and Corporate Secretary

## P. Rodney Blevins \( ^{*} \) 

President and Chief
Executive Officer –
Southeast Energy Group

## Carlos M. Brown \( ^{*} \) 

Senior Vice President and
General Counsel

## William L. Murray \( ^{*} \) 

Senior Vice President,
Corporate Affairs &
Communications

## Mark O. Webb

Senior Vice President and
Chief Innovation Officer

## Thomas P. Wohlfarth

Senior Vice President,
Regulatory Affairs

## Other Senior Leaders

## Edward H. Baine

Senior Vice President,
Distribution,
Power Delivery Group

## Gerald T. Bischof

Senior Vice President,
Nuclear Operations &
Fleet Performance,
Power Generation Group

## Anne E. Bomar

Senior Vice President,
Gas Transmission
Commercial Services,
Gas Infrastructure Group

## Michele L. Cardiff \( ^{*} \) 

Vice President,
Controller and
Chief Accounting Officer

## Katheryn B. Curtis

Senior Vice President,
Generation,
Power Generation Group

## Michael D. Frederick

Senior Vice President,
Administrative Services

## W. Keller Kissam

President, Electric Operations,
Southeast Energy Group

## Donald R. Raikes

Senior Vice President,
Gas Transmission Operations,
Gas Infrastructure Group

## Paul E. Ruppert

President, Gas Transmission,
Gas Infrastructure Group

## Daniel G. Stoddard

Senior Vice President and
Chief Nuclear Officer

## Craig C. Wagstaff

President, Gas Distribution,
Gas Infrastructure Group



## Shareholder Inquiries, Transfer Agent and Registrar, Dividend Disbursing Agent, Plan Administrator

Broadridge Corporate Issuer Solutions, Inc. (Broadridge), is the transfer agent, registrar and dividend-paying agent for Dominion Energy's common stock and is the administrator for Dominion Energy Direct \( ^{®} \)  Dominion Energy's direct stock purchase and dividend reinvestment plan. Please contact Broadridge for a prospectus and enrollment form.

Personal assistance is available for any inquiries Monday through Friday from 8:00 a.m. to 6:00 p.m. (ET). In addition, automated information is available 24 hours a day through our voice-response system. Registered shareholders may view and manage their account online by visiting http://shareholder.broadridge.com/D/.

Dominion Energy Shareholder Services
c/o Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, New York 11717
1 (800) 552-4034 (toll-free)
shareholder@broadridge.com

Major press releases and other company information may be obtained by visiting our website at www.DominionEnergy.com.

## Common Stock Listing

New York Stock Exchange Trading symbol: D

## Performance Graph

The table and graph below show the five-year cumulative total returns based on an initial investment of $100.00 in Dominion Energy common stock with all dividends reinvested compared with the S&P 500 Index and the S&P 500 Utilities Index.

## Indexed Returns

<table><tr><td></td><td colspan="6">Value of Investment as of Dec. 31 (includes reinvestment of dividends)</td></tr><tr><td></td><td>2013</td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td></tr><tr><td>Dominion Energy</td><td>$100</td><td>$122.99</td><td>$112.24</td><td>$131.90</td><td>$144.95</td><td>$134.16</td></tr><tr><td>S&amp;P 500</td><td>100</td><td>113.69</td><td>115.26</td><td>129.05</td><td>157.22</td><td>150.33</td></tr><tr><td>S&amp;P 500 Utilities</td><td>100</td><td>128.98</td><td>122.73</td><td>142.72</td><td>159.99</td><td>166.57</td></tr></table>

Comparison Of Cumulative Five-Year Total Return



Source: Standard & Poor's



## Photo Captions

Front Cover: We are Dominion Energy. Stacey Ellis, who works in our growing environment and sustainability group, is part of our diverse workforce of 21,300 people with varying backgrounds, talents and interests. But all of us have the same mission: to work as one, producing and delivering safe, reliable, affordable and clean energy to nearly 7.5 million customers across the country.

IFC: Dennis McDade (top) is an electric serviceman in Northern Virginia. He donates his spare time producing videos emphasizing the importance of safety in the workplace and volunteering in the communities Dominion Energy serves. Our employees volunteered 126,000 hours in their communities in 2018, including weatherizing veterans' homes.

Susan Davis (bottom) is an environmental compliance coordinator at our Bath County pumped-hydro facility in western Virginia. Bath County functions as the world’s largest battery, storing water at an upper reservoir until it is released downhill through turbines to generate electricity when the need for energy is at its peak.

Page 1: Gina Rundo (top) is a gas operations supervisor in Ohio. Pictured here, she is showcasing our innovative use of Zero Emissions Vacuum and Compression (ZEVAC \( ^{*} \) ) technology that captures methane before maintenance or inspection and receives it for use in other parts of the system.

(Bottom) Customers depend on Dominion Energy to keep the lights on and the gas flowing so that they may live their lives without additional disruption.

Page 2: Renewables are a growing part of our power generation portfolio. Dominion Energy owns and/or partners on solar facilities in nine states, including the Scott Solar array in Powhatan County, Va. Keith Windle, vice president-Business Development & Merchant Operations, is in charge of adding 3,000 megawatts of solar and wind in Virginia — either in operation or under development — by the end of 2022.

Page 3: The company is a partner in two onshore wind farms — the 264-megawatt NedPower Mount Storm facility in West Virginia and the 300-megawatt Fowler Ridge facility in Indiana. We have received approval to develop a 12-megawatt offshore wind pilot project (top) more than 20 miles off the coast of Virginia Beach. It would enter service in 2020, and provide electricity to 3,000 homes and businesses. Harnessing wind is one way we are committed to low- and zero-carbon energy. We also operate 6,000 megawatts of safe, reliable nuclear capacity in three states, including in Surrey County, Va. We have filed an application with the Nuclear Regulatory Commission to keep the carbon-free Surrey reactors (bottom) operating until past 2050.

Page 4: Jesse Reinhart is a compressor station operator at the Myersville station near Frederick, Md. The two-unit compressor station was part of the $210 million Leidy South project that added pipeline capacity in the mid-Atlantic. The station boasts state-of-the-art environmental controls that significantly reduce methane and nitrogen oxides emissions during station operations.

Page 5: (Top left) Our plan to transform the power grid in Virginia could result in investments of up to $3 billion over the next decade. These investments would make the grid safer and more resilient. We plan to spend approximately $470 million over the next five years to deploy smart meters that would be checked by metering employees such as Royal Funtleroy (pictured) and would give our customers more control over the energy they use.

(Bottom) The $4.1 billion Cove Point liquefaction facility entered service in April 2018. Fifty cargoes have left the pier to deliver low-carbon natural gas worldwide through our customers in India and Japan, meeting energy demand and promoting cleaner air.

Pages 8–9: In 2018, Dominion Energy gave nearly $35 million to community causes through corporate direct giving, programs such as EnergyShare and its philanthropic arm, the Dominion Energy Charitable Foundation. Our employees also volunteer their time to organizations they believe do good in their neighborhoods. Some of these include promoted events such as the Solarbrightons (top, page 8) at children's museums and schools across Virginia that showcase the latest solar projects and give students, local officials and others the chance to learn more about how power is generated from the sun. They also include our volunteers providing air conditioners to neighbors in need (bottom photo, page 8). Our employee volunteers — such as Alexandra Garcia, an engineer at North Anna (Va.) Power Station — also spend their time cleaning up parks in their communities (page 9).
Page 10: Our gas infrastructure delivers clean-burning natural gas over small pipelines to 3.4 million utility customers in seven states and over large pipelines to industrial customers and other utilities. Dominion Energy Transmission, which operates about 4,500 miles of transmission and storage pipelines in six states, has an office in Mamont, Pa., where Jayson Chara (pictured) is a gas transmission operations supervisor.

Page 11: When completed, the Atlantic Coast Pipeline would deliver 1.5 billion cubic feet of natural gas per day to North Carolina and Virginia.

Pages 12–13: Dominion Energy believes military veterans are safety-conscious, civic-minded and diligent — traits energy companies covet. Nearly one in every five new hires is a veteran, and veterans find the culture here similar — with opportunities for mentoring and generous military training leave and salary differential for those employees who join the National Guard and Reserve. We advertise the importance of veterans at Dominion Energy (at left). And we recruit veterans who can help us in our mission to safely and reliably deliver energy to our customers. Matthew Rogers (top right) is an Army veteran who works as a system protection technician, and Gloria Bull (pictured below Rogers) served in the Air Force and now is a project manager for the operations of several of our renewable energy assets.

Page 18: The $1.3 billion, 1,588-megawatt Greensville County Power Station entered service in late 2018 and provides reliable electricity to nearly 400,000 homes and businesses. Over the plant’s estimated 36-year life, it is expected to save our customers $2.1 billion in fuel costs.

Page 19: We are in the process of replacing the 500-kilovolt backbone of our transmission system with new power lines that can transport more electricity more efficiently than the old lines. The Elmont-to-Cunningham replacement (left) consisted of 51 miles and entered service in late 2017. Cove Point (right) is a major employer and taxpayer in southern Maryland.

## Credits

© 2019 Dominion Energy, Inc., Richmond, Virginia

## Design

Ideas On Purpose,
New York, New York
ideasonpurpose.com

## Printing

Worth Higgins & Associates,
Richmond, Virginia
worthhiggins.com

## Photography

Dominion Energy, Inc., front cover; inside front cover (top and bottom); page 1 (top); page 2; page 4; page 5 (top); page 8 (top and bottom); page 10; page 11 (top and bottom); page 13 (top and bottom); page 14 (top); page 18; page 19 (right). Cameron Davidson, page 1 (bottom); page 3 (bottom); page 19 (left). Mark Mitchell, page 3 (top), page 6. Photo courtesy of Keiwit, page 5 (bottom). Doug Buerlein, page 9. Paul Olkowski, page 12. Gary Grieg, page 14 (bottom).



The FSC \( ^{®} \)  trademark identifies products that contain fiber from well-managed forests certified to the FSC forest management standard.



## DominionEnergy.com

Corporate Street Address
Dominion Energy, Inc.
120 Tredegar Street
Richmond, Virginia 23219

Mailing Address
Dominion Energy, Inc.
P.O. Box 26532
Richmond, Virginia
23261-6532

Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Richmond, Virginia

## Additional Information

Copies of Dominion Energy’s Summary Annual Report, Proxy Statement and reports on Form 10-K, Form 10-Q and Form 8-K are available without charge. These items may be viewed by visiting www.DominionEnergy.com, or requests for these items may be made by writing to:

Corporate Secretary
Dominion Energy, Inc.
P.O. Box 26532
Richmond, Virginia
23261-6532