Detailed Narrative
Coastal Virginia Offshore Wind (CVOW) Project Update
The CVOW project is now over 70% complete and remains on track for delivery of first power to the grid by the end of March. Key milestones achieved include the installation of 176 monopiles faster than expected, over 70% of transition pieces installed, and the third and final offshore substation installed. The project budget stands at $11.5 billion, including $155 million in unused contingency. The company is reviewing the Supreme Court tariff ruling for potential impacts on the budget.
Accelerating Data Center Demand and Capital Plan Expansion
Dominion Energy is observing accelerating electric demand growth, particularly from data centers, with over 48 gigawatts in various stages of contracting as of December 2025. This high-quality demand, based on meter-level historical data and long-term relationships, has led to a 30% increase in the 5-year total capital estimate, from $50 billion to approximately $65 billion. Over 90% of this increase is at Dominion Energy Virginia, with nearly two-thirds eligible for recovery under rider mechanisms, driving a 10% compounded annual growth rate of the investment base.
Customer Affordability and Operational Efficiency
The company maintains a strong focus on customer affordability, with current customer rates at Dominion Energy Virginia (DEV) and Dominion Energy South Carolina (DESC) 4% and 12% lower than the national average, respectively. Typical residential rates are expected to increase by a compound annual growth rate of around 2.6% at DEV and 2.8% at DESC. Dominion Energy also demonstrates a proven track record of operational efficiency, ranking among the most efficient companies in the industry based on FERC data, and continuously works to improve O&M costs.
Financing Strategy for Expanded Capital Plan
The expanded $65 billion 5-year capital plan is supported by a thoughtful financing approach. Nearly 60% of investing cash flows and projected dividends will be satisfied by internally generated operating cash flows. Approximately 10% will come from net hybrid issuance, 10% from common equity issued via DRIP and ATM programs, and the remaining 20% from long- and short-term debt. This plan is designed to support robust credit expectations and maintain strong investment-grade ratings.
Regulatory and Transmission Project Developments
The Virginia State Corporation Commission approved large load provisions to ensure fair cost allocation and mitigate stranded asset risk. The SCC also approved the Certificate for the Chesterfield Energy Reliability Center, an approximately 1 gigawatt gas-fired facility expected to cost $1.5 billion and be in service in 2029. PJM awarded Dominion Energy a portfolio of transmission projects totaling over $5 billion, with various in-service dates through 2032. Dominion Energy South Carolina filed an electric rate case application to support $1.4 billion invested in its system since 2023.
Millstone Nuclear Power Station Performance and Future
Millstone Nuclear Power Station continues to be a critical asset, providing over 90% of Connecticut's carbon-free electricity. In 2025, the facility achieved a capacity factor of over 91%. While 55% of its output is under a fixed-price contract through late 2029, the remaining output is derisked by a hedging program. Millstone is eligible for the Connecticut Department of Energy and Environmental Protection's zero carbon energy RFP, with bids due in March, and the company is also evaluating supporting incremental data center activity in Connecticut.