Analyst inquired about the expectation for the Virginia regulatory procedural schedule to remain as is, given headlines suggesting a desire for extended review.

Management expects the procedural schedule to hold, noting that the Virginia SCC staff is accustomed to statutory deadlines and has not indicated a need for more time. They believe the current timeframe is sufficient given the commission's expertise. “the SEC staff indicated -- the SEC is used to working with statutory deadlines and they did not directly asked, didn't indicate they needed more time or more resources. We also happen to believe the current time frame is sufficient...”

Analyst asked about a recent transmission line fault causing data centers to use backups and if this indicates a need for incremental grid strengthening (transmission, storage).

Management confirmed a transmission line fault occurred and data centers shifted to backup power. They stated that planners and system operators handled the event well and that significant investments have already been made in the transmission system. They will continue to collaborate with customers and implement mitigating items. “We don't feel like there is significant investments that need to be made because we've been doing that in the grid, but we do believe there will continue to be other mitigating items that we'll implement.”

Analyst asked for a timeline or color on when to expect more proposals to meet Virginia's battery investment mandate.

Management indicated that a technical conference in the fall will discuss deployment feasibility, and the upcoming IRP will incorporate updated perspectives on accelerating battery deployment. They expect to ramp up quickly, developing expertise and supply chain pipelines similar to solar. “there will be a technical conference this fall, where we'll go through -- it will be sponsored by the commission permitting and feasibility technical analyses around the ability for us to deploy battery more quickly.”

Dominion Energy (D) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Utilities· Jul 31, 2026

Source: earnings call transcript

Executive summary

Dominion Energy Q2 FY26 — CVOW Project Progress and Data Center Demand Drive Performance

Dominion Energy delivered strong Q2 FY26 operating earnings, driven by robust data center demand and effective grid management. The Coastal Virginia Offshore Wind project is 81% complete and already generating over 450 MW, though its final completion timeline and cost estimate have been adjusted. The company is also progressing with its proposed merger with NextEra Energy and advancing new generation capacity to meet growing demand.

Highlights

Q2 operating earnings of $0.79 per share, including $0.03 of RNG 45Z credits, positioning for strong full-year results.
Completed common equity program for 2026, consistent with ATM guidance.
FFO to debt metrics above 15% for full-year 2025 and Q2 LTM, demonstrating commitment to credit targets.
CVOW project 81% complete, with 31 turbines (over 450 MW) installed and generating power, significantly derisking the project.
Strong sales in service areas driven by economic growth and data center expansion, with 9 of top 10 peak days occurring this year.

Concerns

CVOW project cost estimate increased by approximately 2% to $11.65 billion due to schedule adjustments and miscellaneous costs.
Final CVOW turbine installation timeline adjusted by 6 months to year-end 2027 due to weather, vessel maintenance, loadout times, and challenging jacking operations.
A transmission line fault caused data centers to shift to backup power, indicating potential grid disruption issues.

Guidance & targets

Category	Target	Timeline	Confidence
Operating earnings guidance	reaffirmed high materiality	FY26	High
Credit targets guidance	reaffirmed high materiality	FY26	High
Dividend guidance	reaffirmed high materiality	long-term	High
Long-term growth guidance	reaffirmed high materiality	long-term	High

Orderbook & backlog

Data Center Capacity Pipeline 53 GW current

In various stages of contracting, including approximately 12 GW contracted under electric service agreements (ESAs). Added over 5 GW of contracts since end of last year.

Deals & partnerships

NextEra Energy Combination of two world-class utilities.

Joint proxy statement on Form S-4 filed. State and federal regulatory applications filed with Virginia SCC, North Carolina Utilities Commission, Public Service Commission of South Carolina, FERC, and NRC. Virginia SCC procedural schedule set for evidentiary hearings beginning November 17. South Carolina PSC proposed schedule for hearing December 8, final order by January 29, 2027.

Capital programs

Coastal Virginia Offshore Wind (CVOW) Project underway $11.65 billion

Spent to date: 81% complete

Funding: financing partner

Benefit:over 450 MW currently generating power

Updated project cost estimate from $11.4 billion (inclusive of $123 million unused contingency) to $11.65 billion, an increase of approximately 2%. This includes $228 million for tariff costs, a $502 million reduction for network upgrade reallocation, $234 million for miscellaneous costs, and $288 million for a 6-month schedule extension. The $11.65 billion still includes $123 million of unused contingency.

New Natural Gas Combined Cycle Plants announced, air permits filed

Benefit:nearly 5 GW

Air permits filed for Kennady station in South Carolina and Mount Storm in West Virginia. These are incremental projects to the current capital plan, part of an acceleration of capital towards the back end of the plan.

Battery Investment Program underway $2 billion

Part of the current 5-year forecast, representing about 3% of the total 5-year capital plan, driven by Virginia legislative mandates for accelerated deployment.

Risks & headwinds

CVOW Project Timeline Extension Until year-end 2027

6 months extension, resulting in year-end 2027 completion.

Mitigation:Schedule adjustments based on observed performance, additional contingency for weather/vessel maintenance, and accounting for longer jacking operations at challenging locations. Project is already 81% complete and generating power.

CVOW Project Cost Increase Current

Approximately 2% increase to $11.65 billion (from $11.4 billion).

Mitigation:Approximately 1/3 of the cost increase will be shared with the financing partner. Project remains one of the most affordable energy sources and is expected to generate $5 billion in fuel savings for customers over 10 years.

Grid Disruption from Transmission Fault Last week (prior to call)

A specific transmission line went out of service, causing data centers to use backups.

Mitigation:Ongoing collaboration with data center customers to identify mitigation opportunities; continuous investment in transmission system upgrades; implementing lessons learned.

Regulatory Review of NextEra Merger Ongoing, with hearings scheduled for November/December

Headlines in Virginia suggest some desire for extended review.

Mitigation:Management believes the current time frame is sufficient given the expertise of the Virginia Commission and staff, who are used to statutory deadlines.

What to watch in Q3 FY26

CVOW final turbine installation

Next quarter / Year-end 2026

Current 31 turbines installed, 81% complete, final turbine expected year-end 2027

Target Continued progress on turbine installation, third offshore substation energized

Why it matters

Progress on CVOW installation and substation energization are key derisking milestones and indicators of project execution.

We expect the third and final offshore substation to be energized by year-end, which is especially meaningful because it will signify that approximately half of project investment adjusted for network upgrade costs has achieved in-service status.

Find out whether D delivers this. Inve re-checks your case every morning.

Q&A highlights

Analyst asked about confidence in the updated year-end 2027 timeline for CVOW and any ongoing activities to monitor for further delays.

Management expressed confidence in the updated timeline, emphasizing that the project is substantially derisked with over 450 MW already generating power and half of the investment expected to be in-service by year-end. The revised schedule incorporates lessons learned from actual loadout times, weather contingencies, and challenging jacking operations.

“the final turbine date has moved but the project has been substantially derisked. CVAL is already producing power. It's already benefiting customers. It's already supporting regulatory recovery. We don't have to wait until the last turbine is installed at the end of 2027 to see the value of this project, we can see it now.”

asked by Nicholas Campanella · answered by Robert Blue

2 min read 6 chapters

Detailed narrative

Q2 Financial Performance and Outlook

Dominion Energy reported Q2 operating earnings of $0.79 per share, including $0.03 from RNG 45Z credits, positioning the company for strong full-year results. The company reaffirmed all financial guidance for FY26, including operating EPS, credit targets, dividend, and long-term growth. The common equity program for 2026 has been completed, and FFO to debt metrics remain above 15% for FY25 and Q2 LTM, supporting credit-related targets.

Coastal Virginia Offshore Wind (CVOW) Project Update

The CVOW project is 81% complete, with 31 turbines (over 450 MW) successfully installed and generating power. The third and final offshore substation is expected to be energized by year-end, signifying approximately half of the project investment achieving in-service status.

The project cost estimate has been revised up by 2% to $11.65 billion, and the final turbine installation timeline extended by 6 months to year-end 2027 due to various operational adjustments.

NextEra Energy Combination Progress

The proposed merger with NextEra Energy is progressing, with joint proxy statement and regulatory applications filed with state commissions (Virginia, North Carolina, South Carolina) and federal agencies (FERC, NRC). Procedural schedules have been set, with evidentiary hearings in Virginia starting November 17 and a final order in South Carolina expected by January 29, 2027.

The transaction is expected to provide $2.25 billion in shareholder-funded bill credits to Dominion Energy customers.

Data Center Demand and Grid Reliability

The company is experiencing strong sales growth driven by data center expansion, with over 53 GW of data center capacity in various stages of contracting, including 12 GW under electric service agreements. Recent record peak demand days highlight the need for continued grid investment.

A recent transmission line fault caused some data centers to shift to backup power, prompting ongoing collaboration with customers and internal review of mitigation opportunities.

New Generation Capacity and Regulatory Outcomes

Dominion Energy is advancing new generation capacity, including filing air permits for two new natural gas-fired combined cycle plants (Kennady station in SC and Mount Storm in WV) representing nearly 5 GW. The company achieved a successful settlement in its South Carolina electric rate case, unanimously approved by the Public Service Commission.

Discussions are ongoing regarding the Millstone power station's bid in Connecticut's 0 carbon energy RFP, with the existing PPA expected to save customers over $900 million over its 10-year life.

Battery Storage Mandate

Virginia legislation mandates an acceleration and increase in battery storage targets. The company has $2 billion allocated in its current 5-year forecast for battery investments, representing 3% of the total capital plan. A technical conference this fall will discuss deployment feasibility, and the upcoming IRP will incorporate updated perspectives on accelerating battery deployment.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.