Dominion Energy Q1 2025 Earnings Report

Dominion Energy EPS Results

• Actual EPS: $0.93
• Consensus EPS: $0.82
• Beat/Miss: Beat by +$0.11
• One Year Ago EPS: $0.55

Dominion Energy Revenue Results

• Actual Revenue: $4.08 billion
• Expected Revenue: $3.95 billion
• Beat/Miss: Beat by +$124.01 million
• YoY Revenue Growth: +12.20%

Dominion Energy Announcement Details

• Quarter: Q1 2025
• Date: 5/1/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, May 1, 2025
• Conference Call Time: 11:00AM ET

Dominion Energy (NYSE:D) produces and distributes energy in the United States. It operates through three operating segments: Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.8 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The Dominion Energy South Carolina segment generates, transmits, and distributes electricity to approximately 0.8 million customers in the central, southern, and southwestern portions of South Carolina; and distributes natural gas to approximately 0.4 million residential, commercial, and industrial customers in South Carolina. The Contracted Energy segment is involved in the nonregulated long-term contracted renewable electric generation and renewable natural gas facility. As of December 31, 2023, the company's portfolio of assets included approximately 29.5 gigawatt of electric generating capacity; 10,600 miles of electric transmission lines; 79,300 miles of electric distribution lines; and 94,800 miles of gas distribution mains and related service facilities. The company was formerly known as Dominion Resources, Inc. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.

Dominion Energy Q1 2025 Earnings Call Transcript

Presentation

[Operator]

At the conclusion of today's presentation, we will open the floor for questions. Instructions will be given for the procedure to follow if you would like to ask a question at that time. I would now like to turn the call over to David McFarland, Vice President, Investor Relations and Treasurer.

[David McFarland, Vice President, Investor Relations and Treasurer at Dominion Energy]

Good morning, and thank you for joining Dominion Energy's first quarter twenty twenty five earnings call. Earnings materials, including today's prepared remarks, contain forward looking statements and estimates that are subject to various risks and uncertainties. Please refer to our SEC filings, including our most recent annual report on Form 10 ks and our quarterly reports on Form 10 Q for a discussion of factors that may cause results to differ from management's estimates and expectations. This morning, we will discuss some measures of our company's performance that differ from those recognized by GAAP. Reconciliation of our non GAAP measures to the most directly comparable GAAP financial measures, which we can calculate, are contained in the earnings release kit.

[David McFarland, Vice President, Investor Relations and Treasurer at Dominion Energy]

I encourage you to visit our Investor Relations website to review webcast slides as well as the earnings release kit. Joining today's call are Bob Blue, Chair, President and Chief Executive Officer Stephen Ridge, Executive Vice President and Chief Financial Officer and Diane Leopold, Executive Vice President and Chief Operating Officer. I will now turn the call over to Stephen.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Thank you, David, and good morning, everyone. Since the conclusion of the business review, we've communicated three priorities: one, consistently achieving our financial commitments two, continued on time achievement of major construction milestones for the Coastal Virginia offshore wind project and three, achieving constructive regulatory outcomes that demonstrate our ability to work cooperatively with regulators and stakeholders to deliver results that benefit both customers and shareholders.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

By fulfilling these goals, we empower our employees to deliver on our critical mission: to provide the reliable, affordable, and increasingly clean energy that powers our customers every day. On today's call, we'll address each of these areas, starting with achieving our financial commitments. As shown on slide three, we're off to a strong start to the year, with first quarter operating earnings of $0.93 per share, which includes $0.03 of better than normal weather, dollars $0.02 of RNG 45Z income, dollars $0.02 of better than expected sales, strong rider investment growth, and a combination of O and M and tax timing helps that we expect to normalize through the rest of the year. First quarter GAAP results were $0.75 per share. We are affirming all financial guidance provided on our fourth quarter earnings call, including 2025 operating earnings per share of $3.28 to $3.52 per share, inclusive of RNG 45Z income, with a midpoint of $3.4 As a reminder, a summary of all adjustments between operating and GAAP results is included in Schedule II of the Earnings Release Kit.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Additionally, a summary of all drivers for earnings relative to the prior year period is included in Schedule IV of the earnings release kit. Turning to our financing plan as shown on slide four. We've sold approximately $1,000,000,000 of forward settled common equity under our existing ATM program at a weighted average price of approximately $57 and expect to complete $200,000,000 of DRIP related equity issuance by year end. This is consistent with our 2025 common equity guidance. We view this level of steady equity issuance under existing programs in the context of our sizable growth capital spending program as appropriate to keep our consolidated credit metrics within the guidelines for our strong credit ratings category.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

We remain focused on balance sheet conservatism, and there is no change to our previously communicated credit related targets. Turning briefly to data centers. As a reminder from our fourth quarter update, we have approximately 40 gigawatts of data center capacity in various stages of contracting, including what is now approximately 10 gigawatts of capacity contracted under electric service agreements. Since our last call, we have not observed any evidence of slowing demand from data center customers across our service area. In conclusion, I'll reiterate that I'm highly confident in our ability to deliver on our financial plan.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

The financial guidance has been built to be appropriately but also not unreasonably conservative to weather unforeseen challenges that may come our way. With that, I'll turn

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

the call over to Bob. Thank you, Steven. Turning to safety performance. Our Dominion Energy family experienced tragedy on March 31 when Ryan Barwick, a material fuel handler at Water East Station in Eastover, South Carolina, died after being severely injured while unloading a railcar. We are deeply saddened by the loss of our dedicated colleague, and our thoughts and prayers continue to be with his family, friends, coworkers, and community.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Safety is our first core value. It's at the heart of our corporate culture, and we will continue to improve until we achieve the only acceptable safety statistic, zero injuries. Next, on our Coastal Virginia offshore wind project, I'd like to start with a few project highlights on slide five. The project is 55% complete, months away from first delivery of electricity to customers in early twenty twenty six and on schedule for full completion at the end of next year. It represents the fastest and most economical way to deliver almost three gigawatts of electricity to Virginia's grid to support America's AI and cyber preeminence in the largest data center market in the world, to support US shipbuilding at customers like Huntington Ingalls, the largest military shipbuilding company in The United States and one of our largest customers, and support some of the country's largest and most important military and defense installations.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

It has robust bipartisan support from Virginia government and congressional leaders, local communities, military and defense interests, the commercial marine industry, as well as civic, educational, environmental, labor, and community partners. It's created approximately 2,000 direct and indirect American jobs and generated $2,000,000,000 in American economic activity. And finally, it's supported by Virginia law and approved by the state corporation commission and federal agencies. In summary, this project is consistent with the goal of securing American energy dominance and is part of our comprehensive all of the above energy strategy to affordably meet growing energy needs. Since our last update, work has continued at pace.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

As shown on slide 100% of the project's 176 transition pieces have been rolled, 86% have been successfully steel welded, and 50% are now complete, including the 59 that we have successfully installed since we began that work on December 31. We expect the final transition piece to be completed in October. More than 80% of the project's 176 monopiles have been completed and successfully delivered to Virginia, including the 78 that were installed during the last installation season. We expect deliveries of the final 32 monopiles to continue steadily in the coming weeks. The first offshore substation was installed on March 10, with the remaining two offshore substations on track to be delivered this summer and installed in the fall.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Siemens Gamesa is making excellent and on time progress in the fabrication of the project's 176 wind turbines. The sections for 28 full towers have been completed with 45 additional towers currently in production. In addition, 36 nacelles are complete or awaiting final testing, and 28 blades have been fully cast. Finally, as shown on Slide 10, Charybdis, our made in America Jones Act compliant installation vessel, is expected to enter service and begin making its way to Virginia in the next four to eight weeks, on schedule to support turbine installation this summer as planned. Before I turn to tariff exposure, I'd like to highlight that the costs for project components, excluding tariff impacts, have remained in line with the prior update.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

The project's current unused contingency is unchanged from our last update at $222,000,000 which now represents about 6% of remaining project costs. Now let me address tariff exposure. It's difficult to fully assess the impact tariffs may have to the project's final cost as actual costs incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component. As a result of this ongoing uncertainty, we've provided potential tariff exposure across discrete tariff categories and illustrative durations on Slide 11. First, through the end of the first quarter, the project had incurred actual tariff costs of $4,000,000 Second, if current tariff policy were to continue through the end of the second quarter, that number would increase to about $120,000,000 Finally, if current tariff policy were to continue through the end of twenty twenty six when the project is expected to fully enter service, cumulative tariff impact would be expected to be approximately $500,000,000 For the avoidance of doubt, the corresponding amount borne by Dominion Energy would be about $130,000,000 Of course, changes to future tariff policy could affect these estimates.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

We made our quarterly offshore wind construction update filing with the Virginia State Corporation Commission today in which we increased total project costs by about $120,000,000 which aligns with our estimate of actual incurred plus projected tariff costs through the end of the second quarter, as you see in the table in today's materials. As a result, we recorded a modest charge this quarter for costs not expected to be recovered from customers in accordance with the cost sharing settlement with Virginia regulators and our 50% cost sharing partnership agreement with Stone Peak. The cost sharing and risk sharing continues to work as intended to protect customers and shareholders. As a result of the cost sharing settlement approved by Virginia regulators, the updated project cost of $10,800,000,000 is expected to increase residential customer bills by an average of $04 a month over the life of the project. And the updated project LCOE of $62 per megawatt hour, inclusive of REX, continues to benchmark very favorably with new generation alternatives, including solar, battery and gas fired generation.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Let me be clear. CVOW remains one of the most affordable sources of energy for our customers. Turning to the regulatory landscape, let me provide a brief update on our Virginia biennial review filing, we submitted at the March. The filing highlights Dominion Energy Virginia's reliable and affordable service. If approved, this would be the company's first base rate increase since 1992.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Additionally, over the past decade, the company's residential rates have increased at a rate approximately 40% lower than the rate of inflation. Our filing also reflects a new proposed rate class for high energy users, including data centers, as well as new customer protections to ensure those customers continue to pay their full cost of service and that other customer classes are protected from stranded cost. Protections include a fourteen year contract commitment to pay for their requested power even if they use less than requested. This is consistent with the concerns and recommendations expressed in the JLARC report last year and in line with proposals in other jurisdictions nationwide. The Commission's procedural schedule is shown on slide 13.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Separately, on March 3, Dominion Energy Virginia filed with the State Corporation Commission for a certificate of public convenience and necessity to construct and operate the Chesterfield Energy Reliability Center, a gas fired electric generating facility as part of our all of the above approach to energy supply. The roughly one gigawatt project, if approved, is expected to cost approximately $1,500,000,000 and be placed into service in 2029. The capital for this project was included in our most recent capital update. Turning to South Carolina, where policymakers in the House and Senate continue to evaluate potential energy legislation that addresses future generation needs of the state, permitting reform, and regulated investment recovery. We're appreciative of the significant time spent to date by the legislature on this important topic.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

We see these efforts as supportive of our stated aim to contribute to the success of South Carolina's robust and growing economy. Overall, we continue to achieve constructive outcomes in all of our regulated service areas. Next on Millstone. The facility continues to perform well and provide over 90% of Connecticut's carbon free electricity, and 55% of its output is under a fixed price contract through late twenty twenty nine. The remaining output continues to be significantly derisked by our hedging program.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

As many of you are aware, there's been recent legislative activity in New England, Rhode Island specifically, aimed at authorizing future additional procurements of nuclear power. We've continued to engage with multiple parties there to find the best value for Millstone. In addition to state sponsored procurement, we continue to evaluate the prospect of supporting incremental data center activity as well. We feel strongly that any data center options need to be pursued in a collaborative fashion with stakeholders in Connecticut. We will provide updates as things develop.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Before I conclude my remarks, I'd like to take a moment to recognize Diane Leopold. As she announced late last year, Diane is retiring on June 1. Today will be her last earnings call. Diane is one of the brightest, most dedicated and most capable people in our company and in our industry. Over her thirty six years in the utility business, she's demonstrated best in class performance in virtually all areas of operations, business development, financial planning, and corporate strategy, as well as the construction of several multibillion dollar energy infrastructure projects.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Fortunately, Diane has trained a deep and talented bench to follow in her footsteps. It's been my honor and privilege to work with her for the last twenty years, and I know I speak for Steve and David and the entire Dominion Energy team in thanking her and wishing her well in retirement. With that, let me summarize our remarks on Slide 15 by reiterating where Stephen began the call with a focus on our three priorities: consistently achieving our financial commitments, continued on time achievement of major construction milestones for the Coast Al Virginia offshore wind project and achieving constructive regulatory outcomes that demonstrate our ability to work cooperatively with regulators and stakeholders to deliver results that benefit both customers and shareholders. We're 100% focused on execution. We remain committed to delivering reliable and affordable power for our customers.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

And with that, we're ready to take your questions.

[Operator]

We'll take our first question from Nick Campanella with Barclays. Please go ahead. Your line is open.

[Nicholas Campanella, Director at Barclays]

Hey, morning. Thanks for taking my questions. Appreciate all the disclosures.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Good morning, Nick.

[Nicholas Campanella, Director at Barclays]

Good morning. So, hey, I appreciate all the disclosure you kind of given on the CVAL project, especially as it kind of relates to tariffs. As it relates to the turbines and your suppliers, can you is there anything that you can kind of shed light on in terms of your conversation with them that this tariff backdrop is not going to impact their ability to kind of deliver for whether it's in your own conversations or just the delivery dates. You know, I know that you kinda highlighted that Siemens is making a lot of progress, but maybe you can kinda just expand on your your overall confidence level there. Thanks.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

I'll offer a couple of thoughts. And if Diane wants to add in, she should. She was over there just recently. And she promised she would actually answer all the questions today on our last earnings call. But our conversations with our suppliers are that they're all performing extremely well.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Who are most recently started, the one who has most recently started is Siemens Gamesa, and they are hitting their marks. They started on time. They're producing at the pace that we expected. And so we feel very, very confident about our ability to get the materials, the components that we need, and we've disclosed what the tariff impacts would be based on current tariff policy. So really no change to anything in terms of delivery schedules or ability.

[Diane Leopold, Executive VP & COO at Dominion Energy]

The only thing that I would add, all of the raw materials are already purchased. Everything is in fabrication right now. And as Bob talked about, the Siemens Gamesa, which is the most recent equipment that's entering into fabrication, is actually a little bit ahead of schedule. The team, including myself, were in all of those facilities, the nacelles, the blades, all of them, two weeks ago, and everything is heading either on track or a little bit ahead of schedule, and deliveries are going to proceed in the coming weeks.

[Nicholas Campanella, Director at Barclays]

Okay. Great. That's helpful. And, know, just in terms of terms of the monopiles, my understanding is that the season starts today. So just any update on, whether you would be kind of kicking that off immediate immediately and what type of run rate you would expect through the next few months here for monopile installations?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yes. Today is the beginning of monopile installation season, and we're starting today. Just to offer a little context, if you think about the last four months, we've installed 60 transition pieces, an offshore substation and a jacket that supports a deepwater export cable. So restarting monopile installation today is simply a continuation of the steady offshore progress we've been making since the project began. And in terms of run rate, I think we've talked before about the fact that we hit a pace once we sort of got the initial work done last monopile season, we hit a pace of about 25 a month.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

That's a pace we ought to be able to continue. Everything's weather dependent, obviously. But that pace is quite achievable.

[Nicholas Campanella, Director at Barclays]

Okay. Great. And Diane, congrats on your retirement. Thanks so much.

[Diane Leopold, Executive VP & COO at Dominion Energy]

Thanks. Appreciate that.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Thanks, Nick.

[Operator]

We'll take our next question from James Kennedy with Guggenheim Partners. Please go ahead. Your line is open.

[James Kennedy, Vice President at Guggenheim Partners]

Hey, guys. Good morning.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Hi, James.

[James Kennedy, Vice President at Guggenheim Partners]

Maybe just kinda continuing with the CEVA. I just wanted to ask more specifically maybe on the the permitting backdrop. I guess, have you had any conversations or interactions at the the state or federal level that give you a little bit more incremental comfort following the Empire Wind Order? Just any more color on the permitting side. Thank you.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. I mean, James, our interactions with the agencies have continued the same way they have been for months. With a project of this we're fully permitted, as you know. But with a project of this size, we check-in regularly with agencies. We've continued those conversations with them.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

And for the reasons that we outlined in our prepared remarks, we feel very comfortable that this project's gonna continue moving forward.

[James Kennedy, Vice President at Guggenheim Partners]

Okay. If if there were a stop work order, can you give

[James Kennedy, Vice President at Guggenheim Partners]

us, like, a general rule of thumb on, like, a daily standby or demobilization cost?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. I think that's a very important question. I appreciate you asking. We'd have to evaluate the specific facts and circumstances at the time, and I, you know, I can't speak to those because I don't know what they are. But if it happened, we would be very transparent in addressing them.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

But we don't think it's gonna be paused for all the reasons I gave in the prepared remarks. It's the fastest way to get 2.6 gigawatts on the grid to serve tech companies, defense and security installations, important American industries like shipbuilding. It's employing 2,000 people. Stopping it would cause energy inflation. Specifically authorized by Virginia law, it has bipartisan support in Virginia, particularly the Hampton Roads congressional delegation.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

So it really doesn't make sense to talk about numbers for a pause or delay. That said, these are prudently made investments. Utilities are entitled to recover prudently incurred costs, and that's certainly true here subject to the cost sharing SEC order, obviously.

[James Kennedy, Vice President at Guggenheim Partners]

Okay. Perfect. And then just

[James Kennedy, Vice President at Guggenheim Partners]

on the tariff scheme itself, the plan has you know, some solar and storage spend as well. I guess just any kind of color as you're thinking about the tariff impacts there and, you know, spend profile, any changes? Thanks.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. I mean, as we think about tariffs across our business, the impacts we're seeing are manageable. We've worked on our supply chain for some time. We have most of our suppliers are the vast majority of the materials that we procure are directly from US suppliers. That is certainly true with diversify our supply chain and drive supply chain resilience.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

A chunk of that would have come out of COVID as we started thinking about that. So we think about increasing inventory and ordering thresholds to address longer lead times, ensure that we have multiple sources of supply where it's appropriate. We have been placing some orders ahead of tariff effective dates to mitigate cost increases where it's possible. So those actions have enabled us to avoid some of the impacts. Obviously, our first objective is to avoid impact and keep costs for customers low.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

So we find tariff costs generally across the business to be manageable.

[James Kennedy, Vice President at Guggenheim Partners]

Excellent. Thanks, guys, and congrats to Diane as well.

[Operator]

And we'll take our next question from Steve Fleishman with Wolfe Research. Please go ahead. Your line is open.

[Steve Fleishman, Managing Director and Senior Analyst at Wolfe Research LLC]

Yeah, sure. Thanks. And, I'll echo congrats to Diane. Job really well done. And, Tom, sorry, no more sneaking junk food during

[Steve Fleishman, Managing Director and Senior Analyst at Wolfe Research LLC]

the day.

[Diane Leopold, Executive VP & COO at Dominion Energy]

Thanks,

[Steve Fleishman, Managing Director and Senior Analyst at Wolfe Research LLC]

So just on the I guess, first on the tariffs, the just so we know in case they change, the are you is the contracts basically shifting most of the tariff basically to you? So if they go higher or they go lower, we can kind of try to gauge the impact. Is that kind of how generally the contracts work?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. That's a fair characterization, Steve.

[Steve Fleishman, Managing Director and Senior Analyst at Wolfe Research LLC]

Okay. And then maybe just also I know it's kind of governor election year. Has any electric topics kind of, including CVOW, kind of been in the political spectrum at all from either side as part of that?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

No. No. There has not been a, in the gubernatorial race thus far, a discussion of CVOW or wind generally. I will say that the lieutenant governor who is the Republican nominee was at our event, I don't know, a year and a half, two years ago when the first monopile arrived in Tidewater at the port. The Democratic nominee, former Congresswoman Abigail Spamburger, has been supportive of offshore wind as well.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

But it hasn't been a topic in the conversation.

[Steve Fleishman, Managing Director and Senior Analyst at Wolfe Research LLC]

Okay. And then I noticed on Chesterfield, the approval of the gas plant, that's 1,000,000,005 for a gigawatt plant, which is starting to look quite cheap right now. Just wanna make sure that's a good number.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yes. That's a good number.

[Steve Fleishman, Managing Director and Senior Analyst at Wolfe Research LLC]

Okay. All right, that's it for me. Thank you.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Thanks, Steve.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Thanks, Steve.

[Operator]

We'll take our next question from David Arcario with Morgan Stanley. Please go ahead. Your line is open.

[David Arcaro, Executive Director, Equity Research at Morgan Stanley]

Hi, thanks. Good morning.

[James Kennedy, Vice President at Guggenheim Partners]

Good morning. Hey, David.

[David Arcaro, Executive Director, Equity Research at Morgan Stanley]

Wondering if you could just give maybe a little bit more color on what you're seeing in terms of data center demand. You mentioned that it, has kinda continued from last quarter, but just what is the, interest level, you know, from hyperscalers? Any sense of just the the scale and out and how far out, I guess, are these customers planning and looking to locate in your service territory?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yes. The demand remains very high, David. The I would say that really no change from what we talked about on the last call. We've got a real focus in our service territory on sort of traditional cloud and inference demand from data centers, and there's no let up in their interest. And I guess the way I would characterize the timing is, as has been the case really since we started working with data center customers over a decade ago, giving us the most experience with those customers of anybody in the industry.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

They want to go fast. They always want to go fast. That's their business. It's always been their business. We've been effective at serving them thus far.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Don't see any reason why that's gonna change in the future.

[David Arcaro, Executive Director, Equity Research at Morgan Stanley]

Yep. Got it. And these are and they're, I guess, planning out into the well into the 2030s at this point too just in terms of the, you know, the the megawatts that they're planning and the expansions over time?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. Absolutely. I mean, if you look at just what they'd be ramping into from what they've already committed to, it it takes you to that time frame.

[David Arcaro, Executive Director, Equity Research at Morgan Stanley]

Yes, absolutely. And then separately, just was curious, is there any progress or any further clarity around Milestone and the potential contracting opportunities there?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yes, no real news on Milestone, as we mentioned in the prepared remarks. Rhode Island, there's been legislative activity in Rhode Island. So there's interest, but we don't have an update on timing of when we might take some action with respect to Millstone. As you know, the current contract for 55% of the output goes through August of twenty twenty nine. So we'll continue to work through that, but no news to report today.

[David Arcaro, Executive Director, Equity Research at Morgan Stanley]

Okay, great. Thanks so much.

[Operator]

We'll take our next question from Carly Davenport with Goldman Sachs. Please go ahead. Your line is open.

[Carly Davenport, Vice President, Equity Research at Goldman Sachs]

Hey, good morning. Thanks for taking the questions. Maybe just a quick one on the biennial filing. You referenced before the special rate structure proposed for high energy users. Can you just talk a little bit about that structure and just sort of based on your conversations with data center customers over time on the terms of an agreement, if you feel like that sort of reflects customer appetite in terms of the term length and some of the other specifics.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. So you're talking about the fourteen year contract term?

[Carly Davenport, Vice President, Equity Research at Goldman Sachs]

Yep. Exactly.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. So just broadly, what the filing does is it creates a new rate class for customers with either measured or contracted demand of 25 megawatts or greater and either measured or expected load factor of at least 75%. That's about 100 and this is a contiguous site. That's about 139 customers, about 131 data centers within that. And the sort of focus of that class is on minimum demand charges.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

So the higher of either contracted or actual usage, the minimum demand charge would be 80% for transmission distribution, 60% for generation. And then for new customers, that would be the fourteen year contract period. It's a four year ramp schedule into that. This is just to provide transparency and clarity around those customers, ensuring that sort of addressing the thoughts around ensuring that they're paying their fair share and to reduce the risks of stranded assets. We've already had provisions in place for a lot of that, but this enhances them.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

We've talked with the data center customers. We talked with them in preparing this proposed new tariff. I'm sure there will be further conversations during the case, but I think I can say confidently they understand what we're looking to accomplish here and the conversations have been very constructive.

[Carly Davenport, Vice President, Equity Research at Goldman Sachs]

Great. Appreciate that color. And then maybe just a quick follow-up on the earlier question just on your conversations with data center customers. Are you seeing any change in tone or concern just around the broader economic uncertainty that we've seen and any sort of pause perhaps in some of the new projects that you're expecting to move forward?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

The short answer to that question is no. We're seeing continued appetite for additional data center capacity in our service territory.

[Carly Davenport, Vice President, Equity Research at Goldman Sachs]

Great. Thank you for the time.

[Operator]

We'll take our next question from Anthony Crowdwell with Mizuho. Please go ahead. Your line is open.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

Hey, good morning, team. Just two quick questions. One, I think Slide 20, residential sales. Looks soft this first quarter. Just wondering if you could provide some clarity around that.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

And then I have a follow-up.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Hey, Anthony. It's Steve. Yes. Overall, our LTM Q1 sales are actually have been very good for us. It's trending slightly higher than our annual guidance, largely driven by really strong sales across the commercial segment, which includes data centers but also other commercial customers.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

We don't think that the slight weakness in residential is going to continue for the rest of the year. We'll watch that pretty carefully. But overall, I think we're actually really happy with the direction sales are going, and we'll provide additional information on that as we get through more quarters. But overall, I think the sales picture for our service territories continues to look really strong.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

Great. And if I could follow-up on Carly's question on the biannual review, particularly with the requested the new tariff for the large load customers, You guys have clearly gone through multiple biannual reviews. Is this making approval of this maybe more complicated by introducing a new tariff or from all your meetings prior to filing and talking to the parties that may maybe even helping it out getting the tariff approved?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. I I think it'd be hard to say it's helping it out or making it more complicated. The focus on rate classes and cross subsidies among rate classes is something that has happened since the beginning of rate cases. So not a surprise. I don't think that it would be in this case.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

So I wouldn't say that it really affects the nature of the ability to resolve this case one way or the other.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

Great. Thanks for taking my questions.

[James Kennedy, Vice President at Guggenheim Partners]

Thanks, Anthony.

[Operator]

We'll take our next question from Durgesh Chopra with Evercore ISI. Please go ahead. Your line is open.

[Durgesh Chopra, Managing Director at Evercore ISI]

Hey, good morning, team. Thank you for giving me time. And my prayers also would, you know, to to Ryan's family. Very, very sad to to hear about that incident. Just quickly, Steve, twenty twenty five first quarter EPS came in materially above our expectations.

[Durgesh Chopra, Managing Director at Evercore ISI]

Just you mentioned some commentary around enough conservatism in the guidance. Just kind of thinking through how the first quarter earnings track versus your own expectations for the rest of

[Steven Ridge, Executive VP & CFO at Dominion Energy]

the Yeah. That's a really good question. I'd say very modestly above where we were expecting. Certainly, we didn't have $03 of weather baked in. We also didn't have $02 of better than expected sales baked in, which gets back a little bit to Anthony's question about overall trending for sales growth.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

But, you know, I'd I'd point folks to schedule four where we give a a quarter over quarter growth reconciliation. Let me spend just a second walking through sort of the key drivers. We were at we were at 55 in q one twenty twenty four. Obviously, that was before we had completed the entire business review, but a lot of it was clean. Since then, relative to that quarter, we had about 8¢ of weather help.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

So I mentioned 3¢ of better than normal. We also significantly underperformed weather during the quarter of twenty twenty four, so that's on the schedule. I mentioned sales. We've done about $04 better on sales. We had about $05 of help this quarter from rate cases that occurred later in the year of 2024, so it wouldn't have been captured in the first quarter.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Net net net, we had about $08 of regulatory rider investment growth. And the reason I say net net is because it'll show up as $16 but we sold half of that growth under the non controlling interest on CVOW to Stone Peak. So net is $08 help there. We have about $08 of interest expense help. That's largely the impact of debt repayment, the full sort of force of the debt repayment from the majority of the business review asset sales.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

There's about $06 of tax help quarter over quarter. So two of that has to do with the production tax credit for our nuclear sales. That's just shaping. Two of it had to do with RNG45Z, which we didn't have last year. Two of it had to do with a small South Carolina tax matter.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

There was a resolution in a court case that we ultimately hadn't budgeted, so that was a little bit of an unanticipated help as well. And then there's sort of, you net all that and there's about negative 1¢ of miscellaneous items in there. So I'd say, again, weather, sales, a little better than we expected. We've gotten some timing on tax and O and M that I think will normalize through the rest of the year. So we're sticking right now with our original guidance range, targeting that midpoint of 3.4 And if we get to the point in the future where we feel like we should revise that, we'll go ahead and do that.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

But for now, early in the year, off to a good start. We're very focused on hitting those numbers. And to the extent we have an opportunity to derisk future years as a result of strong 2025 performance, we would think about doing that as well. So we'll have more information as we work through the year, but feeling really good about the plan.

[Durgesh Chopra, Managing Director at Evercore ISI]

Thanks, Steve. That was very thorough. Sounds like modestly modestly ahead of of your expectations. Okay. Diane, we'll we'll miss you on the on the field trips, Diane.

[Durgesh Chopra, Managing Director at Evercore ISI]

Good luck to you. Thanks.

[Diane Leopold, Executive VP & COO at Dominion Energy]

I'll miss it too. Thanks, Dutigash. And

[Operator]

we'll take our next question from Jeremy Tonet with JPMorgan. Please go ahead. Your line is open.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Hi. Good morning.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Morning, Jeremy.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

And, Diane, echo the comments before me. I wish you well in retirement here.

[Diane Leopold, Executive VP & COO at Dominion Energy]

Thanks, Jeremy.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Maybe just starting off, if you could provide any updates on the outlook for PJM finalizing network cost upgrades. And just wondering if there's any thoughts whether tariffs or general inflation might drive upward cost pressures here?

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Yeah. On the PJM network upgrades, that specific, you're asking? Yeah. I wouldn't expect to see that. And we don't have, additional, information beyond what we provided on the last call.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

As we said then, we had better information than we did before, but not perfect. And that continues to be true now. We'll get the final number in July. And we certainly don't expect it to be either up or down of the magnitude that the shift was the last time. But we'll know more in July.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Got it. Thank you for that. And transferability has been a big focus in the market, whether it's repealed and has impact on plans. Is there any thoughts that you could share there?

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Yeah, Jeremy, at the risk of being too thorough in my response, let me give a little color there. So our plan has on average, from 2025 through 2029, has on average about $175,000,000 of transferred tax credits each year. What really tips us into transferability are the PTCs generated by our share of the offshore wind project. I guess the silver lining with that is that to the extent there were a change in transferability, that makes tax equity a reasonably efficient way of replacing sort of the time value of those tax credits. So we feel pretty good about where we're positioned on that.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Feel like if there were a change, we'd have a pretty effective mitigant, but something we're watching pretty carefully too.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Got it. Thank you very much. And one last one if I could just with regards to thinking about the ATM with regards to derisking 26 equity needs possibly earlier in '25?

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Yeah. We've been aggressive with our financing plan in '25 to take capital raising off the table in a pretty significant way. You can see that from the financing plan. That was the philosophy behind the ATM, is getting in front of it at a pretty attractive price. Without giving sort of specific guidance, it's absolutely something we would continue to think about, is opportunistically finding ways to derisk future financing.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

That could include getting into the market for ATM that would be settled at the end of twenty six, for instance, sooner rather than later. That's an option available to us. It's nice. And so, yeah, your point's well taken. We'll take those steps opportunistically as the market warrants.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Got it.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Thank you for that. I'll leave it there.

[Steven Ridge, Executive VP & CFO at Dominion Energy]

Thanks.

[Operator]

And this concludes our question and answer session. So I'll turn the call back to Bob Blue for closing remarks.

[Robert Blue, President, CEO & Chairman of the Board at Dominion Energy]

Thanks, everybody, for taking the time to join the call today, and enjoy the rest of your day.

[Operator]

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

Participants

Executives

• David McFarland, Vice President, Investor Relations and Treasurer
• Steven Ridge, Executive VP & CFO
• Robert Blue, President, CEO & Chairman of the Board
• Diane Leopold, Executive VP & COO

Analysts

• Nicholas Campanella, Director at Barclays
• James Kennedy, Vice President at Guggenheim Partners
• Steve Fleishman, Managing Director and Senior Analyst at Wolfe Research LLC
• David Arcaro, Executive Director, Equity Research at Morgan Stanley
• Carly Davenport, Vice President, Equity Research at Goldman Sachs
• Anthony Crowdell, Managing Director at Mizuho Financial Group
• Durgesh Chopra, Managing Director at Evercore ISI
• Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan