Detailed Narrative
Coastal Virginia Offshore Wind (CVOW) Project Update
The CVOW project is 55% complete and on track for first electricity delivery in early 2026, with full completion expected by the end of 2026. The project has maintained its $222 million unused contingency, representing about 6% of remaining costs. Key milestones include 100% of transition pieces rolled, 86% steel welded, and 50% complete, with 59 installed. 80% of monopiles are complete and delivered, with 78 installed. The first offshore substation was installed in March, and the remaining two are expected by fall. Siemens Gamesa is progressing well on wind turbine fabrication, with sections for 28 full towers completed and 36 nacelles complete or awaiting testing. The Charybdis installation vessel is expected to enter service and arrive in Virginia within 4-8 weeks.
Data Center Demand and New Tariff Proposal
Dominion Energy continues to experience very high demand from data center customers, with approximately 40 GW of capacity in various stages of contracting, including 10 GW under electric service agreements. The company has not observed any slowing demand. In its Virginia biennial review filing, Dominion proposed a new rate class for high-energy users (25 MW+ demand, 75%+ load factor) including data centers. This class features minimum demand charges (80% for T&D, 60% for generation) and a 14-year contract commitment for new customers, with a 4-year ramp schedule, designed to ensure full cost recovery and protect other customer classes from stranded costs.
Regulatory Landscape and New Generation
The company submitted its Virginia biennial review filing in late March, highlighting reliable and affordable service and proposing its first base rate increase since 1992. Separately, Dominion Energy Virginia filed for a certificate to construct and operate the Chesterfield Energy Reliability Center, a 1 GW gas-fired electric generating facility expected to cost $1.5 billion and be in service by 2029. In South Carolina, policymakers are evaluating energy legislation addressing future generation needs, permitting reform, and regulated investment recovery, which Dominion views as supportive.
Millstone Nuclear Plant and Future Opportunities
The Millstone facility continues to perform strongly, providing over 90% of Connecticut's carbon-free electricity. 55% of its output is under a fixed-price contract through late 2029, with the remaining output hedged. The company is engaging with parties regarding recent legislative activity in Rhode Island aimed at authorizing additional nuclear power procurements. Dominion is also evaluating supporting incremental data center activity in Connecticut, emphasizing a collaborative approach with stakeholders.
Financial Performance and Equity Financing
Dominion reported Q1 operating earnings of $0.93 per share and GAAP earnings of $0.75 per share, affirming its full-year 2025 operating EPS guidance of $3.28 to $3.52. The company has sold approximately $1 billion of forward-settled common equity under its ATM program at a weighted average price of $57 and expects to complete $200 million of DRIP-related equity issuance by year-end, consistent with its 2025 common equity guidance. This strategy aims to maintain strong credit ratings and balance sheet conservatism.
Tariff Exposure on CVOW
The CVOW project has incurred $4 million in actual tariff costs through Q1. If current tariff policy continues through Q2, this would increase to $120 million. The cumulative tariff impact🌐 could reach $500 million by the end of 2026, with Dominion Energy's share being $130 million. The company increased the total project cost by $120 million in its SCC filing, resulting in a modest charge this quarter for costs not expected to be recovered from customers, in line with its cost-sharing settlement.