Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dominion Energy Inc (D, Financial) has successfully sold approximately $1 billion of forward settled common equity under its existing ATM program, aligning with its 2025 common equity guidance.
• The Coastal Virginia Offshore Wind project is progressing well, with 55% completion and on track for full completion by the end of next year, creating approximately 2,000 jobs and generating $2 billion in economic activity.
• Dominion Energy Inc (D) has maintained strong demand from data center customers, with no evidence of slowing demand across its service area.
• The company has achieved constructive outcomes in all of its regulated service areas, contributing to the success of South Carolina's economy and maintaining reliable service in Virginia.
• Dominion Energy Inc (D) reported a strong first quarter performance, with earnings modestly above expectations, driven by better-than-expected sales and favorable weather conditions.

Negative Points

• The Coastal Virginia Offshore Wind project faces potential tariff exposure, with cumulative tariff impacts potentially reaching $500 million if current policies continue through 2026.
• Dominion Energy Inc (D) recorded a modest charge this quarter for costs not expected to be recovered from customers, related to the offshore wind project.
• Residential sales showed slight weakness in the first quarter, although the company does not expect this trend to continue.
• The company faces uncertainty regarding the impact of tariffs on its solar and storage projects, although it considers these impacts manageable.
• There is ongoing uncertainty around the final cost of PJM network upgrades, with final numbers expected in July.

Q & A Highlights

Q: Can you provide insights on the impact of tariffs on the Coastal Virginia Offshore Wind project and your confidence in suppliers meeting delivery schedules? A: Robert Blue, CEO, stated that suppliers, including Siemens Gamesa, are performing well and meeting their schedules. Diane Leopold, COO, added that all raw materials are purchased, and fabrication is on track or ahead of schedule. Tariff impacts have been disclosed, and there are no changes to delivery schedules.

Q: What is the status of monopile installations, and what run rate do you expect? A: Robert Blue, CEO, confirmed that monopile installation season has started, with a continuation of steady offshore progress. The expected pace is about 25 monopiles per month, weather permitting.

Q: How are you managing tariff impacts across your business, particularly for solar and storage projects? A: Robert Blue, CEO, explained that tariff impacts are manageable due to a diversified supply chain and sourcing from U.S. suppliers. Efforts include increasing inventory and placing orders ahead of tariff effective dates to mitigate costs.

Q: Can you elaborate on the new rate class for high energy users proposed in the Virginia biennial review filing? A: Robert Blue, CEO, described the new rate class for customers with demand of 25 megawatts or greater, focusing on minimum demand charges. The proposal includes a 14-year contract period to ensure customers pay their fair share and reduce stranded asset risks.

Q: How did the first quarter earnings compare to expectations, and what are the key drivers? A: Steven Ridge, CFO, noted that Q1 earnings were modestly above expectations, driven by better-than-expected weather and sales, regulatory rider investment growth, and interest expense savings. The company remains focused on achieving its financial guidance.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.