Our Company

2018 Commitments

What you should know
At Dominion Energy, actions speak louder. We don’t just make promises, we keep them — and then document how we performed, so there is never any doubt.

Commitments and Performance: 2018


Our Company

Category 2018 Commitment 2018 Performance
Values, Ethics & Compliance To continue to reinforce the importance of ethics, employees will complete annual training in ethics and compliance. In addition, employees will certify annually that any potential compliance items have been reported or are already being addressed. The annual code of ethics and business conduct training was completed by 98 percent of employees. The annual compliance survey was completed by 8,330 — or 52 percent of — employees (the survey was sent only sent to non-union employees). It was completed by 100 percent of executive officers. The ethical culture was reinforced in new employee orientation and in new leader and existing leadership development programs.
Governance & Risk Oversight The Board of Directors will receive an annual report on our sustainability targets, strategy and progress. In January 2018, the Board was updated on the sustainability targets for 2018 and provided an overview of the company’s strategy.

The Board was provided a sustainability update in September 2018, during which the company’s strategy was discussed, including increasing disclosures with respect to the company’s environmental performance through participation in the various CDP surveys, the Climate Report and EEI and AGA metrics, among other reports. The Board was informed that the company was on track to meet the targets established in the March 2018 Sustainability and Corporate Responsibility Report and was working on establishing future targets.

In December 2018, the Sustainability and Corporate Responsibility Committee was updated on the status of performance against 2018 targets and informed of 2019 targets.
Governance & Risk Oversight Employees will complete annual training to educate them in their role as the first defense in cybersecurity. In addition, internal and third party-led exercises to evaluate cybersecurity defenses will be performed. We will conduct four cybersecurity drills in 2018. These are conducted with both internal resources and external parties, including other utilities, regulatory agencies and law enforcement.

We will conduct four independent vulnerability scans in 2018. These scans are conducted by third parties to identify any public-facing cyber vulnerabilities. We will conduct six penetration tests in 2018. These tests are targeted testing of vulnerabilities of our external and internal systems. We target enterprise and industrial control systems, with remediation of any issues found as a high priority.

We will conduct North American Electric Reliability Critical Infrastructure Protection (NERC CIP) program Cyber Vulnerability Assessments at 65 locations in 2018. We aim to remain in the top quartile of BitSight assessments, a third-party organization that conducts external cyber assessment and scoring of major companies. We revise the cyber security strategic plan and prioritize cyber security investments based on these external assessments, threat intelligence and our assessment of risk.
Employees were trained on two major cyber security topics: phishing and data protection. In addition, we published 36 security awareness articles on the company Intranet for all employees to see. We conducted drills exercising the communication between internal cybersecurity operations, physical security and incident command; response to attack on company assets involving many areas of the company; and communication response with industry groups. After each drill we identified lessons learned and made appropriate changes to our response plan. Our four vulnerability scans were concluded on schedule and no critical findings were identified. We executed eight penetration tests in 2018. We tested a wide range of company assets from industrial control systems to our new standard workstation. These tests identified several areas to address and many critical items have already been closed. The NERC CIP CVAs were completed at the end of the year. A few minor items were identified and are currently being addressed. Our Bitsight score remains strong and now includes the companies recently merged with Dominion Energy.

Clean Energy

Category 2018 Commitment 2018 Performance
Innovation We will continue to reward innovation to create a culture in which employees are encouraged to experiment. Retaining the attributes that have made us successful, we will place even more emphasis on innovation and customer focus. We are committed to looking out for disruptions to our industry and partnering with start-ups to infuse energy into our employees and processes. Within Dominion Energy, a number of initiatives were put in place to create a culture of innovation. Full-time innovation leads known as “Innovation Guides” were established in each business unit. An employee volunteer program known as “Innovation Accelerators” was piloted to provide local, on-the-ground support to employee innovators. Sixteen innovation crowdsourcing challenges were completed. An Innovation Summer Summit was held in Richmond for 125 employees. The company’s inaugural Innovation Expo hosted 500 employees. The Chairman’s Excellence Awards for Innovation were awarded at the Expo. The event also showcased employee innovations and new technologies from outside vendors. The first company-wide “New Idea Competition” was held and culminated in a live “Shark Tank”-style pitch competition. Innovation efforts were highlighted on both an internal and external website. We began employee skill-building efforts in the form of design thinking and innovation sprint workshops. Finally, multiple immersive innovation experiences were executed to expose leaders and individual contributors to the speed of change and innovation occurring in the energy sector.

EXTERNAL EFFORTS:
  • Instituted resources to scout energy and sustainability startups in Silicon Valley.
  • Awarded “Innovative Company of the Year” in the Plug and Play Technology Center Energy and Sustainability vertical.
  • Sponsored Richmond Inno, a new online media organization dedicated to covering innovation news in Virginia.
  • Founded and implemented the Corporate Innovation Roundtable in the greater Richmond area.
  • Partnered with Randolph-Macon College to initiate a student and professional startup pitch competition.
  • Dominion Energy IT conducted a Design-a-thon in partnership with Major League Hacks and Virginia Commonwealth University to foster university ideas and innovations for a new Dominion Energy app.
  • Sponsored student innovation projects at Virginia Commonwealth University and the University of Virginia.
Investing in Infrastructure We plan to begin construction of the 600-mile Atlantic Coast Pipeline, fully operationalize the Cove Point liquefaction project in Maryland, pursue re-licensing of our carbon-free nuclear fleet and continue investing in renewable energy. We plan to rebuild 120 miles of electric transmission lines. We began construction of the 600-mile Atlantic Coast Pipeline in parts of West Virginia and North Carolina. In April 2018, we brought online the Cove Point liquefaction project in Maryland. In August, we sought permission to construct a pilot offshore wind project in the Atlantic Ocean. In October 2018, we submitted an application to renew the license for Surry Power Station and are working to submit a similar application for North Anna Power Station in 2020. As of mid-year 2018, 128 miles of electric transmission lines were rebuilt.
Clean Energy Diversity & Security The company announced plans to continue to increase our reliance on cleaner generation technologies. In the past five years, we have invested $3.5 billion in renewable generation and grown our solar fleet from zero to approximately 2,600 megawatts in service, in construction or under development. In 2018, we filed for approval of an offshore wind pilot project — the second such project in the United States and the first to be owned by an electric utility.

Environment

Category 2018 Commitment 2018 Performance
Cleaner Air Dominion Energy will increase disclosures around greenhouse gases by participating in the climate CDP reporting on greenhouse gases in 2018. Dominion Energy increased disclosures around greenhouse gases by participating in the climate CDP reporting on greenhouse gases in 2018. The CDP was submitted in August 2018. Additional public disclosures completed include an update to the Methane Management Report and participation in the EEI ESG and AGA ESG sustainability metrics pilots. Dominion Energy ESG metrics from transmission were also disclosed. A Climate Report including a two-degree scenario analysis was posted in November 2018. In addition, our natural gas businesses joined the One Future Coalition and participated in the inaugural report from the Coalition relative to methane leak rate disclosures.
Cleaner Air The company intends to reduce our carbon intensity to 50 percent by 2030 from 2000 levels. Carbon intensity has been reduced by 50 percent since 2000.
Cleaner Air Methane Reductions: Dominion Energy East Ohio and Dominion Energy West Virginia will implement a pipeline replacement program for its main and service lines and commit to replacing at least 1.5 percent of the unprotected steel and cast iron pipes every year by 2021. In 2018, Dominion Energy Ohio and Dominion Energy West Virginia replaced a combined 3 percent, or 191 miles, of the unprotected-steel and cast-iron pipes. A combined 380 miles of unprotected-steel and cast-iron pipe has been replaced since the methane reduction commitment began.
Cleaner Air Methane Reductions: Dominion Energy Wexpro will install instrument air systems (air compressors and air dryers) to 31 end devices at Canyon Creek and Church Buttes, eliminating 46,000 MCF of gas lost and related emissions. Wexpro installed the instrument air compressor at Church Buttes and was operational in October 2018. The compressor installation allowed for 14 different devices to be converted, which will result in 22,326 MCF/year of natural gas loss savings per year. Sundry approvals from the Bureau of Land Management are still pending for the installation at Canyon Creek. Installation is expected in February 2019, which will address 17 different devices and an additional 23,692 MCF of natural gas savings per year.
Clean Water Dominion Energy generation has already reduced its water withdrawals by using low-water-use technologies (for example, dry-cooled condensers) for new generation, and will further reduce water use in the future as we continue to add to our renewable generation portfolio. The Greenville Power Station became operational in 2018. It uses dry-cooled condensers and additional solar generation was also added to the fleet – all of which use low-water-use technology or no water to generate electricity.
Clean Water In 2018, Dominion Energy Wexpro will install a produced water treatment system for water reuse at the Canyon Creek Unit Produced Water Evaporation Facility. In 2018, Dominion Energy Wexpro installed a produced water treatment system at the Canyon Creek Unit Produced Water Evaporation Facility. During commissioning of the system, needed modifications to the system were identified, and a process is underway to make those modifications.
Reducing Waste We will continue our zero-landfill policy by recycling IT equipment that we no longer use. 109,020 pounds of IT equipment were either reused or recycled instead of being sent to a landfill.
Habitat & Wildlife Protection We will continue to implement new design standards that include increased spacing on distribution lines for avian protection, animal guards on exposed equipment and other deterrents to animals coming near equipment. Design standards were implemented by increasing phase spacing on certain energized equipment. In addition, the wildlife guard installation process was streamlined.

Serving Customers and Communities

Category 2018 Commitment 2018 Performance
Energy Reliability & Affordability To ensure reliability, we plan to rebuild 120 miles of electric transmission lines in 2018. 128 miles of electric transmission lines were rebuilt to enhance reliability.
Energy Reliability & Affordability 300 miles of electric distribution lines will be placed underground in 2018 to enhance reliability and safety. 300 miles of electric distribution lines were placed underground to enhance reliability and safety.
Energy Reliability & Affordability Annually we will inspect 25 percent of Dominion Energy electric equipment housed in customer-owned vaults to ensure it is working properly. Each year the company is inspecting an average of 30 percent of company electric equipment housed in customer-owned vaults to ensure it is working properly.
Energy Reliability & Affordability Our Western-state operations in Utah, Wyoming and Idaho are committed to spend $95 million in 2018 on aging natural gas infrastructure replacement. This includes high-pressure mains, distribution mains and service lines. Our Western-state operations in Utah, Wyoming and Idaho spent more than $96 million in 2018 on aging natural gas infrastructure replacement (high-pressure mains, distribution mains and service lines).
Energy Reliability & Affordability We will invest $200 million or more annually over the next two decades to upgrade about 5,600 miles of aged bare-steel, cast-iron, wrought-iron and copper pipe in our Ohio pipeline system — reducing methane emissions at the same time. In 2018, Dominion Energy invested $204 million and replaced approximately 167 miles of aged bare-steel, cast-iron, wrought-iron and copper pipe in our Ohio pipeline system. Since the beginning of the Pipeline Infrastructure Replacement program, Dominion Energy has invested nearly $1.6 billion to replace 1,733 miles of pipe.
Energy Reliability & Affordability To ensure affordability, we will grow EnergyShare, which helps all customers, with a special focus on senior citizens, individuals living with disabilities and military veterans. Our 2018 target for EnergyShare is to invest $5 million to help 20,000 families or individuals; participate in 440 outreach events; and weatherize 3,000 homes of low-income customers. $5.65 million was allocated for bill pay assistance on behalf of 19,897 families. Employees participated in 460 outreach events. In addition, 4,372 homes were weatherized.
Energy Reliability & Affordability The ThermWise energy-efficiency programs have a total 2018 budget for energy efficiency of $24.5 million. ThermWise is forecasting over 81,000 customers will participate in the program in 2018. ThermWise is forecasting 1.15 million dekatherms (Dth) of natural gas savings from 2018 programs, which equates to the annual usage of nearly 14,500 customers. It is estimated that more than 70,000 customers participated in the program in 2018 with a natural gas savings of 950,000 Dth. An estimated $23 million was spent for energy-efficiency programs. The savings were equivalent to more than 50,000 tons of CO2 avoided in 2018.
Engaging Communities With stakeholders, improvements to our community engagement processes will be identified and implemented. We also will continue to work closely with landowners to minimize impact to their property as we expand both electric and gas infrastructure. We will continue our outreach efforts for the Atlantic Coast Pipeline. An Environmental Justice Policy was established in 2018 — one of the first in our industry.

Initial implementation phase projects were conducted on a 230 kV electric transmission project in Power Delivery and on a solar project in Power Generation to help inform the implementation guidelines for the policy. Gas distribution and gas transmission projects were also evaluated to help develop these guidelines. Besides consideration of the company’s new policy, recommendations broadly followed these two foundational principles:
  • For projects that require environmental-justice reviews, we will expand our review to better inform our outreach and siting.
  • For projects that do NOT require environmental justice reviews, we will voluntarily consider environmental-justice principles and use associated resources and materials to inform our outreach and siting.
In electric transmission, nearly 300 people attended 27 public events related to a variety of projects. Additionally, we directly mailed project information to 53,000 community members, providing pertinent information and ways that they could provide feedback.

Eleven open houses and 15 community meetings associated with Gas Infrastructure projects were held. The majority of the open houses and meetings were associated with the ACP.
Safety We will maintain and enhance our programs designed to maintain zero work-related fatalities and to lead the industry in eliminating serious injuries. We aim to demonstrate that commitment by achieving and maintaining first-quartile performance in the Southeastern Electric Exchange peer utility benchmark. In 2018, Dominion Energy’s safety performance set a new all-time company low for OSHA-recordable injuries, with no work-related fatalities. The company’s safety performance was in the first quartile in the Southeastern Electric Exchange peer utility benchmark.
Safety Our Western-state gas operations plan to implement a pipeline excavation damage prevention program for safety and to reduce methane emissions. In 2018, our Utah operations enhanced damage prevention by providing personnel to monitor excavation around large distribution lines, leading to a lower damage rate.
Safety As part of our comprehensive pipeline integrity programs we consistently seek ways to go beyond compliance and improve our effectiveness. Dominion Energy conducts reviews for targeted portions of our pipelines each year. And we have proactively committed to replace 50 miles of bare transmission pipeline by 2020 across the Dominion Energy Transmission, Inc., system. As of the end of 2018, 33 miles of bare pipe have been replaced.
Safety Dominion Energy pipelines have partnered with the industry to improve response times. To support this initiative, we have committed to install an additional 250 remote-controlled or automated valves across the Dominion Energy footprint by 2020. As of the end of 2018, 191 remotely controlled valves have been installed.
Safety As another proactive program to improve response times, Dominion Energy has committed to install 20 additional mainline valves on critical areas of our natural gas pipeline systems. As of the end of 2018, 22 mainline valves had been replaced.
Safety We expect to increase the number of storage wells logged to more than 80 percent, with plans to exceed 84 percent in 2018. We logged 84 percent of storage wells in 2018.
Safety By the end of 2019, we will inspect 125,000 wood poles to ensure they meet Dominion Energy’s safe design standards. As of the end of 2018, 117,000 wood poles were inspected to ensure they meet Dominion Energy’s safe design standards, placing us on track to accomplish this two-year target.
Community Development In support of our partnerships with small, local and diverse businesses, we will conduct matchmaking events, pairing local businesses with our own employees, to discuss upcoming opportunities. We will continue to cultivate relationships with local businesses and advocacy organizations to encourage economic growth in our communities. Four diverse-supplier matchmaking events and two luncheons were held in 2018 to develop new partnerships and strengthen existing ones.

As a result of the luncheons, we expanded our partnerships to include 11 new advocacy organizations.

In 2018, diverse spending was up by 7.2 percent over 2017, setting a new company record, and the Supplier Diversity spending goal was extended to leadership across the company.
Community Development In 2018, we plan to invest more than $30 million to support community needs in addition to encouraging and supporting employee volunteerism. Our goal is also to exceed 100,000 hours of employee volunteer time. In 2018, we directed almost $35 million to community needs. Employees volunteered 126,554 hours, surpassing the target of 100,000 hours.

Employee Experience

Category 2018 Commitment 2018 Performance
Attracting Talent Improving Workplaces: To provide a positive work environment for employees, we will strive for Leadership in Energy & Environmental Design (LEED) design construction standards in all new office spaces. Construction is underway or completed for a number of buildings for LEED design standards: 600 Canal Place in Richmond and the Petersburg District Office are under construction in Virginia. Construction was completed for the Greensville, Virginia, Power Station administrative building; the Pleasant Valley Administration Building in Centreville, Virginia; the Hampton, Virginia, Office Building and Garage; the Lima, Ohio, Office Building; and our Oakford Office Building outside of Delmont, Pennsylvania.
Retaining Talent Leaders and employees will complete training in diversity and inclusion. In 2018, 99 percent of all Dominion Energy employees completed a diversity and inclusion session approved by the Office of Diversity & Inclusion. Sessions were offered by Diversity Councils, Employee Resource Groups and the Office of Diversity & Inclusion. There were 164 sessions offered across the Dominion Energy footprint that discussed topics related to workforce diversity, workforce inclusion or cultural awareness; 98.5 percent of employees rated the diversity sessions favorably.

Ninety-nine percent of all Dominion Energy leaders completed a sexual harassment course offered by the company’s Office of Diversity & Inclusion. Sixty-seven sessions were offered across the Dominion Energy footprint; 99.9 percent of leaders rated the sexual harassment sessions favorably.
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