DOMINION ENERGY, INC

Dominion Energy, Inc. is a public utility holding company whose principal business is the generation, transmission, distribution, and sale of electricity and the transportation, storage, distribution, and sale of natural gas. The company operates in a highly regulated industry, with its electric and gas utility operations subject to regulation by state public service commissions, the Federal Energy Regulatory Commission, and various environmental agencies. The filing describes the company's operations as being conducted through three primary reportable segments: Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy.

The filing does not name specific primary competitors or provide market share data. However, the company's competitive positioning is built on its regulated utility model, which provides a stable, rate-regulated revenue base. The filing notes that Dominion Energy Virginia serves approximately 2.7 million electric customers and Dominion Energy South Carolina serves approximately 800,000 electric customers, indicating a significant customer base in its core service territories.

Dominion Energy generates revenue primarily through the regulated sale of electricity and natural gas to retail and wholesale customers. The business model is predominantly recurring, as revenues are derived from ongoing utility service under rate structures approved by regulators. The filing details that electric operating revenues are generated from residential, commercial, industrial, and wholesale customers, while gas revenues come from residential, commercial, and industrial sales, as well as transportation and storage services. The company also has a Contracted Energy segment that generates revenue from nonregulated generation assets, including nuclear, solar, and renewable natural gas facilities, as well as power purchase agreements.

The Dominion Energy Virginia segment is the company's largest operating segment. For the year ended December 31, 2025, Dominion Energy Virginia reported operating revenues of $14.641 billion ¹. This segment generates electric operating revenues from residential, commercial, industrial, and wholesale customers. In 2025, residential electric revenues were $4.806 billion ², commercial electric revenues were $3.790 billion ³, industrial electric revenues were $1.174 billion ⁴, and wholesale electric revenues were $1.003 billion ⁵. The segment also earns regulated gas revenues, with residential gas revenues of $1.040 billion ⁶, commercial gas revenues of $0.541 billion ⁷, and other gas revenues of $0.131 billion ⁸. The segment's strategic role is as the core regulated utility platform, with significant capital investment in transmission, distribution, and generation projects, including the Coastal Virginia Offshore Wind (CVOW) commercial project.

The Dominion Energy South Carolina segment reported operating revenues of $2.903 billion ⁹ for 2025. This segment provides regulated electric and gas service in South Carolina. The Contracted Energy segment reported operating revenues of $1.149 billion ¹⁰ for 2025. This segment includes nonregulated generation assets such as the Millstone Power Station, solar generation facilities, and renewable natural gas facilities, as well as power purchase agreements. The filing also notes the company's gas distribution operations in Ohio, Pennsylvania, and the Carolinas, and gas transmission and storage operations, including the Cove Point LNG terminal, though the latter was classified as discontinued operations in prior periods.

During 2025, Dominion Energy made significant progress on the Coastal Virginia Offshore Wind (CVOW) commercial project, which is expected to be placed in service by the end of 2026. The company also completed the acquisition of an early-stage generation facility in November 2025 for $0.5 billion ¹¹. In February 2025, the company entered into a new at-the-market (ATM) equity program for the sale of up to $2.0 billion ¹² of common stock. The company also redeemed $1.0 billion ¹³ of Series B Junior Subordinated Notes in August 2025 and $0.5 billion ¹⁴ of Series A Junior Subordinated Notes in October 2025. Additionally, the company entered into a new $1.0 billion ¹⁵ sustainability revolving credit facility in April 2025. The company also completed the sale of its East Ohio Gas, PSNC Gas, and Questar Gas operations to Enbridge in 2024 and 2025, with the transaction closing in stages.

For the year ended December 31, 2025, Dominion Energy reported total operating revenues of $18.693 billion ¹⁶, compared to $19.826 billion ¹⁷ in 2024. Net income attributable to common shareholders was $2.576 billion ¹⁸ in 2025, compared to $2.304 billion ¹⁹ in 2024. Diluted earnings per share were $3.02 ²⁰ in 2025, compared to $2.69 ²¹ in 2024. Operating income was $4.543 billion ²² in 2025, compared to $4.197 billion ²³ in 2024. The company reported cash and cash equivalents of $0.218 billion ²⁴ as of December 31, 2025, and total long-term debt of $28.593 billion ²⁵.

Management provided guidance for 2026 operating earnings per share in the range of $3.36 to $3.66 ²⁶. The company also provided a long-term operating earnings per share growth rate target of 5% to 7% ²⁷ through 2029, off a 2025 base of $3.02 ²⁸.

The primary growth vector discussed in the filing is the Coastal Virginia Offshore Wind (CVOW) commercial project. The filing states that the project is expected to be placed in service by the end of 2026. The total capital cost for the CVOW commercial project is estimated to be approximately $9.8 billion ²⁹, excluding financing costs. The company has entered into a partnership with Stonepeak, which contributed $1.3 billion ³⁰ for a 50% ³¹ noncontrolling equity interest in the project. The filing also discusses the company's capital investment plan, which includes significant spending on transmission and distribution grid modernization, renewable energy generation, and energy storage. The company's regulated utility capital expenditure plan for 2026 through 2029 is expected to total approximately $43 billion ³².

Another growth vector is the expansion of the company's regulated renewable energy portfolio in Virginia. The filing discusses the Virginia Clean Economy Act, which requires Dominion Energy Virginia to achieve a certain percentage of renewable energy generation by 2035 and 2045. The company is investing in utility-scale solar and onshore wind projects, with a target of having up to 5,000 megawatts ³³ of solar and onshore wind in service by 2035. The company also has a target of up to 2,700 megawatts ³⁴ of energy storage in service by 2035.

The filing discusses the company's margin and cost outlook primarily through the lens of regulatory proceedings. The company's electric and gas margins are largely determined by base rate cases and various cost recovery riders. The filing notes that in November 2025, the Virginia State Corporation Commission issued a final order in the 2025 Biennial Review, which will impact future revenues. The company also filed an electric base rate case in South Carolina in January 2026, seeking an increase in annual revenues of $0.125 billion ³⁵. The company expects to continue to manage operations and maintenance expenses, with a focus on productivity improvements and cost control.

The company's operational outlook includes significant capital investment in its electric transmission and distribution infrastructure. The filing details numerous transmission projects under construction, including the rebuild of the Aquia Harbor-Possum Point transmission lines, the construction of new Golden Mars transmission lines, and the construction of new Technology Boulevard transmission lines. The company is also investing in grid modernization and underground distribution facilities. The filing does not provide specific headcount targets but notes that the company had approximately 16,000 ³⁶ employees as of December 31, 2025.

The company's capital allocation strategy is focused on funding its regulated capital expenditure plan, maintaining a strong balance sheet, and returning value to shareholders. The company's capital expenditure plan for 2026 through 2029 is expected to total approximately $43 billion ³⁷. The company has a $2.0 billion ³⁸ at-the-market equity program in place to support equity needs. The company's dividend policy is discussed, with the filing noting that the company paid common dividends of $2.67 ³⁹ per share in 2025. The company also has a share repurchase program, though the filing does not specify a current authorization amount.

A key headwind flagged by management is the regulatory and legislative environment, particularly in Virginia. The filing discusses the 2025 Biennial Review, which resulted in a reduction in the company's allowed return on equity and other adjustments. The company also faces uncertainty related to the timing and outcome of future regulatory proceedings, including the pending electric base rate case in South Carolina. Another headwind is the execution risk associated with the CVOW commercial project, which is a large-scale, complex construction project. The filing notes that the project is subject to risks related to supply chain, weather, and contractor performance.

Additional constraints include environmental regulations, such as the EPA's Effluent Limitations Guidelines for the Steam Electric Power Generating Category and the CCR rule, which require significant capital investment for compliance. The filing also notes the risk of changes in tax laws, including the potential for changes to the Inflation Reduction Act's renewable energy tax credits, which could impact the economics of the company's renewable energy investments. The company also faces risks related to interest rate exposure, as higher interest rates increase borrowing costs and could impact the company's ability to finance its capital plan.

The company faces material risks related to the execution of the Coastal Virginia Offshore Wind (CVOW) commercial project, which has an estimated total capital cost of approximately $9.8 billion ⁴⁰ and is subject to construction, supply chain, and weather risks. Regulatory risk is significant, particularly in Virginia, where the 2025 Biennial Review resulted in a reduction in allowed return on equity, and in South Carolina, where a pending base rate case seeks a $0.125 billion ⁴¹ annual revenue increase. The company has $28.593 billion ⁴² in long-term debt, exposing it to interest rate risk; a 100-basis-point increase in interest rates would increase annual interest expense by approximately $0.286 billion ⁴³. Environmental compliance costs are material, with the company estimating undiscounted ash pond and landfill closure costs of $2.5 billion ⁴⁴ and undiscounted CCR remediation costs of $1.2 billion ⁴⁵. The company also faces risks related to the potential expiration or modification of the Inflation Reduction Act's renewable energy tax credits, which are critical to the economics of its renewable energy investments.

Management's message in the filing emphasizes the company's strategic transformation into a fully regulated, pure-play utility focused on its core service territories in Virginia, South Carolina, and the Carolinas. The key themes are the successful execution of the company's asset divestiture program, the significant progress on the CVOW commercial project, and the company's commitment to a strong balance sheet and investment-grade credit ratings. Management highlights the company's 2026 operating earnings per share guidance of $3.36 to $3.66 ⁴⁶ and the long-term operating earnings per share growth rate target of 5% to 7% ⁴⁷ through 2029. The two or three strategic priorities emphasized are: first, the successful completion and operation of the CVOW commercial project; second, the execution of the company's $43 billion ⁴⁸ regulated capital expenditure plan to modernize the grid and add renewable generation; and third, the continued focus on regulatory outcomes that support the company's financial health and customer affordability.