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DOMINION ENERGY, INC 8-K Report, Regulation FD Disclosure (Feb 3, 2025)

Reports
Regulation FD·Other Events·Exhibits & Filings
Filing Date
Filed February 3, 2025
Period End
February 3, 2025
Security
D
In the record · 2016–202610-K1110-Q328-K223

D filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 223 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’19Jan ’19
  2. Leadership change8-K · Jul ’20Jul ’20
  3. Leadership change8-K · Jul ’22Jul ’22
  4. Material agreement8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed February 3, 2025. Cited figures are marked; the original filing is the authoritative source.

Dominion Energy (NYSE: D) disclosed on February 3, 2025 that the total estimated cost of its 2.6 GW Coastal Virginia Offshore Wind (CVOW) project has risen about 9%, from $9.8 billion to $10.7 billiona (inclusive of contingency, excluding financing costs).

The increase is driven almost entirely by higher PJM-assigned network upgrade costs and onshore electrical interconnection costs, which the company says do not affect construction or the schedule. The project remains on track for on-time completion at the end of 2026, and the company estimates the average impact on a typical residential bill (1,000 kWh/month) at about 43 cents per month over the project's life, after cost-sharing. For shareholders, the key mitigant is the November 2024 sale of a 50%b noncontrolling interest in CVOW to Stonepeak.

Under the December 2022 Virginia SCC settlement, costs between $10.3 billionc and $11.3 billion are split 50/50 between customers and project owners, and Stonepeak bears half of the owners' share. Stonepeak will fund about $450 million of the roughly $900 million increase, and Dominion expects an approximately $100 million charge in Q4 2024 results, excluded from operating earnings (non-GAAP). The company also noted that Stonepeak's capital contributions are conditioned on total project cost staying below $11.3 billion, so the $10.7 billion estimate leaves roughly $600 million of headroom before that threshold, and costs above that level shift to Dominion at a higher share.

The levelized cost of energy (LCOE, including renewable energy credits) rose to about $62d/MWh from $56/MWh in November 2024, but remains below the original $80-90/MWh filing estimate and below the $125/MWh (2018 dollars) legislative prudency cap. Dominion reaffirmed its 2025 operating EPS guidance, its 5% to 7% long-term operating EPS growth target through 2029, and its credit guidance, with the Q4 2024 earnings call scheduled for February 12, 2025.

02—Key points

Key Highlights

  1. Total CVOW project cost up about 9% to $10.7B from $9.8B; first increase since the November 2021 budget submission, driven by PJM network upgrade and onshore interconnection costs.
  2. Expected average residential bill impact of about $0.43/month over the project's life (1,000 kWh/month), after cost-sharing mechanisms.
  3. Stonepeak funds 50% of costs up to $11.3B and will fund about $450M of the ~$900M increase; project is about 50% complete with on-time completion at end of 2026 unchanged.
  4. Dominion expects an approximately $100M charge in Q4 2024 results, excluded from operating earnings (non-GAAP), for its share of costs not recoverable from customers.
  5. LCOE including RECs rose to about $62/MWh from $56/MWh, still well below the original $80-90/MWh estimate and the $125/MWh (2018 $) prudency cap.
  6. Contingency of $222M (about 5% of remaining project costs) is up about $100M from the prior update.
  7. Dominion reaffirmed 2025 operating EPS guidance, the 5%-7% long-term operating EPS growth target through 2029, and credit guidance; Q4 2024 earnings call set for February 12, 2025.

03—Questions

Frequently Asked Questions

  1. Why did the CVOW project cost increase, and does it affect the construction schedule?

    The increase reflects higher network upgrade costs assigned by PJM, the regional grid operator, to CVOW as part of the generator interconnection process, plus higher onshore electrical interconnection costs. Dominion states these network upgrades do not affect construction or the timeline, and the project remains on track for on-time completion at the end of 2026.

  2. How much of the cost increase will shareholders absorb?

    Under the December 2022 SCC settlement, costs between $10.3B and $11.3B are split 50/50 between customers and project owners. Dominion and Stonepeak each bear half of the owner share, so Dominion's share of the roughly $900M increase is about $100M, which it expects to record as a Q4 2024 charge excluded from operating earnings. Costs above $11.3B are shared differently, with a larger share falling on shareholders.

  3. What does this mean for customer bills?

    After cost-sharing, Dominion estimates the average impact on a typical residential bill using 1,000 kWh per month at about 43 cents per month over the project's lifetime. The company's net bill impact estimate for CVOW is now about negative $1.01 per month, reflecting customer benefits from energy, capacity and REC value.

  4. Is the project still economically competitive?

    Dominion's updated levelized cost of energy including RECs is about $62/MWh, up from $56/MWh in November 2024 but down from the original $80-90/MWh filing estimate. Dominion says this benchmarks favorably against solar, battery and gas-fired alternatives, and it remains below the $125/MWh (2018 dollars) legislative prudency cap.

  5. Does the cost update change Dominion's financial guidance?

    No. Dominion reaffirmed its existing 2025 operating EPS guidance, its 5% to 7% long-term operating EPS growth target through 2029 (off a 2025 midpoint of $3.30 excluding RNG 45Z), and its credit guidance. The company noted that its updated capital expectations and financing plans will be discussed on the February 12, 2025 earnings call.

04—Continue

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