Dominion Energy Q3 Earnings Call Highlights

Key Points

• Strong third-quarter results: Dominion Energy reported operating earnings of $1.28 per share and now expects full-year results in the top half of its original guidance range, while reaffirming its dividend, credit and long-term growth outlook.
• Demand and investment are accelerating: Weather-normal electric sales rose 3.4%, while Dominion’s data-center pipeline exceeded 54 gigawatts, including more than 12 GW under electric service agreements. Its Virginia resource plan also adds 4 GW of solar and 2 GW of battery storage.
• Major strategic projects remain on track: The Coastal Virginia Offshore Wind project is 85% complete and remains within its $11.65 billion budget, while Dominion and NextEra continue regulatory proceedings targeting completion of their proposed combination in the second half of 2027.

Dominion Energy NYSE: D reported third-quarter operating earnings of $1.28 per share, including $0.05 per share from renewable natural gas 45Z tax credits and $0.05 per share from better-than-normal weather. GAAP earnings were $1.30 per share for the quarter.

Chief Financial Officer Steven Ridge said year-to-date operating results benefited from stronger-than-budgeted sales, favorable weather, higher-than-expected 45Z credit income and what he described as strong financial and operational execution. The company now expects full-year results to land in the top half of its original guidance range, while reaffirming its existing credit, dividend and long-term growth guidance.

Sales Growth and Data Center Demand

Dominion said weather-normal electric sales across Dominion Energy Virginia and Dominion Energy South Carolina grew 3.4% over the trailing 12 months. All 10 of the Dominion Zone's summer peak-demand days occurred in 2026, while Dominion Energy South Carolina recorded a new all-time electric peak in August.

The company also cited continued demand from data center customers in Virginia. Dominion now has more than 54 gigawatts of data center capacity in various stages of contracting, including more than 12 GW under electric service agreements. The total contracted pipeline has increased by more than 6 GW, or 13%, since the end of 2025.

Ridge said the utility is using a large-load framework approved by the Virginia State Corporation Commission to require such customers to pay their share of investments needed to serve their growth, while seeking to protect existing customers from cost shifting and mitigate stranded-cost risk.

During the quarter, the Virginia State Corporation Commission approved Dominion's fuel securitization financing petition covering a balance of about $900 million. The company said the financing is intended to help mitigate near-term fuel-related impacts on customer bills.

NextEra Combination Moves Through Regulatory Process

Chair, President and Chief Executive Officer Bob Blue said Dominion and NextEra Energy continue to target closing their proposed combination in the second half of 2027, with required federal approvals having been filed and continuing to progress.

Blue said the companies in September announced an enhanced Virginia benefits package that would:

• Double the duration of residential bill credits.
• Expand energy bill assistance by $100 million.
• Create a $100 million workforce development fund.
• Commit to creating at least 1,000 new jobs in Virginia.
• Build a shareholder-funded co-headquarters tower in Richmond.
• Support Virginia companies through a $1 billion annual, five-year Virginia Supplier Program.

In Virginia, Dominion has received testimony from parties to the case and plans to submit rebuttal testimony by Nov. 2. Evidentiary hearings are scheduled to begin Nov. 17, with a final order due Jan. 11. Blue said the State Corporation Commission will evaluate whether adequate public service at just and reasonable rates would be impaired or jeopardized by the transaction.

He said the companies believe their proposal exceeds the applicable “no harm” standard by providing customer affordability measures, employment commitments and development of needed energy resources. Asked about conditions proposed by commission staff, Blue noted that some of the 57 conditions reflected commitments the companies had already voluntarily offered, but declined to discuss specific issues ahead of rebuttal testimony.

In South Carolina, rebuttal testimony is due Nov. 18 and hearings begin Dec. 8, with a final order expected by Jan. 29, 2027. North Carolina hearings are set to begin Feb. 23, 2027.

Coastal Virginia Offshore Wind Project Reaches 85% Completion

Dominion said its Coastal Virginia Offshore Wind project, or CVOW, is approximately 85% complete. Fabrication of all nacelles, towers and blades has been completed, and the company has installed 44 turbines representing more than 640 megawatts of generating capacity. Installation of the 45th turbine was underway during the call.

The company said turbine installation continues to average roughly two days from jack-up to jack-down. July and August installation pace met expectations, while September and October activity was lower due to weather and maintenance on the Charybdis installation vessel. Blue said the maintenance was completed earlier in October.

Dominion said these developments were among the risks contemplated when it added schedule contingency in the prior quarter. It has used a portion of that contingency but maintained its expectation for project completion by the end of 2027 and energization of the third and final offshore substation by the end of 2026.

The project's budget remains $11.65 billion, including $123 million of unused contingency. Dominion estimates that CVOW will produce about $5 billion in fuel savings for customers over its first 10 years of operations. The company also said the project's levelized cost of energy remains below its statutory threshold and the range contemplated in its original filing.

Blue said the company's project execution approach emphasizes experienced construction teams, established contractors, supply-chain visibility, labor planning and familiarity with permitting processes. He added that installation efficiency has improved as the project has progressed. The first 10 turbines took an average of 69 hours each to install, compared with 45 hours for the following 25 turbines and 38 hours for the nine most recently installed.

Resource Plan Adds Solar and Battery Storage

Dominion filed its Virginia Integrated Resource Plan update in mid-October, outlining potential generation portfolios designed to meet rising customer demand. Compared with the company's preferred plan from the previous year, the update adds and accelerates 4 GW of solar capacity and 2 GW of battery storage.

Under Dominion's preferred plan, monthly residential electric bills are forecast to rise by an average of approximately 2.3% annually, according to Blue. The company said it expects energy storage to assume an increasingly important role as technology advances and system needs change.

Ridge said the updated plan substantially increases planned battery capacity through 2034. Battery capacity from 2030 through 2034 rose to 3.3 GW in the 2026 update from 850 MW in the 2025 plan. He estimated that each gigawatt of battery opportunity represents roughly $2.5 billion to $3 billion in capital investment, although some projects may be structured through power purchase agreements rather than utility-owned assets.

Millstone RFP Decision Expected Later This Year

Dominion also said the Connecticut Department of Energy and Environmental Protection expects to announce a decision later this year on its zero-carbon energy request for proposals involving the Millstone nuclear facility.

Blue said Millstone's existing power purchase agreement is expected to save Connecticut customers more than $245 million in 2026, including $200 million year to date, following more than $200 million in customer savings last year. Based on current forward curves, Dominion expects the agreement to save Connecticut customers more than $900 million across its 10-year term.

The company said it remains focused on achieving a constructive outcome for Millstone and expects to have a clearer sense of the regulatory process by year-end.

About Dominion Energy (NYSE:D)

Dominion Energy, Inc is a regulated energy company headquartered in Richmond, Virginia. Through its utility operations, the company generates, transmits and distributes electricity and provides natural gas distribution services to residential, commercial, industrial and governmental customers, primarily in Virginia and South Carolina.

The company operates a diversified power-generation portfolio that includes nuclear, natural gas, renewable energy and other resources. Its activities also include electricity transmission infrastructure, renewable energy development and natural gas utility operations.

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