DOMINION ENERGY, INC Q3 FY2024 earnings call

Safety Performance

• Employee OSHA injury recordable rate for the first nine months was 0.44, in line with positive trends.

Hurricane Helene Recovery

• Hurricane Helene caused significant infrastructure damage in South Carolina, with preliminary restoration costs estimated at $100 million to $200 million. Intend to evaluate securitization of deferred costs.

Offshore Wind (CVOW)

• Project proceeding on time and on budget. Completed first monopile installation season, installed 78 monopiles and 4 pen piles, laid first two marine deepwater export cables ahead of schedule. Materials and equipment progress, offshore substations on track, transition pieces assembly and delivery.

Data Centers

• Strong growth in Virginia, connected 14 new data centers year-to-date, expect to connect 16 in 2024. Studying ~8 GW of data center demand in substation engineering stage and ~6 GW in construction authorization stage.

Transmission System Planning

• PJM DOM zone experiencing unprecedented load growth, received 63 construction delivery point requests year-to-date. Submitted project proposals in PJM's open window process with AEP and FirstEnergy.

Generation Updates

• Filed nuclear unit license renewal, utility-scale solar projects, and 2024 Virginia Integrated Resource Plan. Announced MOU with Amazon to explore SMR technology at North Anna. Closed acquisition of offshore wind lease from Avangrid.

Regulatory Outcomes

• Achieved constructive outcomes in regulated service territories, including rate settlements in South Carolina and North Carolina.

There is no detailed breakdown of product segments by revenue contribution provided in the transcript. Key areas mentioned include utility operations, offshore wind, data center growth, etc.

2024 Guidance

• Narrowed full year guidance range to $2.68 to $2.83 per share, preserving midpoint of $2.75. Fourth quarter earnings impacted by higher financing costs and earlier closing of CVOW partnership.

2025-2029 Guidance

• Reaffirmed guidance, including 2025 operating earnings per share between $3.25 and $3.54 (midpoint $3.40) inclusive of RNG 45Z credit income. Forecast 5% to 7% operating earnings annual growth rate through 2029, excluding RNG 45Z credits.

Financing Plan

• Fully achieved 2024 financing plan, continuing to monitor 2025 financing needs and have started 2025 guided ATM issuance.

Risks

• Unforeseen challenges that may affect financial plan execution.
• Storm recovery costs exceeding $100 million and uncertainties around securitization of those costs.
• Regulatory uncertainties in various service territories.
• Project development risks, including first of a kind risk and cost overrun risk for SMR and offshore wind projects.

Q: Shar Pourreza asked about Amazon's interest in offshore wind and details on other SMR conversations.

A: Robert Blue stated focus on SMRs, Virginia's relevance to SMRs, and need to mitigate risks; offshore wind conversations with hyperscalers are premature.

Q: Nick Campanella asked about Millstone, data center additionality, and rate base growth.

A: Robert Blue discussed Millstone uprate possibilities and data center considerations; Steven Ridge added capital plan bias is upward and focus on cash conversion speed.

Q: Ross Fowler asked about South Carolina legislation, storm recovery, and MOU with Amazon.

A: Robert Blue discussed South Carolina legislation and storm recovery cost recovery; Steven Ridge talked about storm cost securitization; Robert Blue mentioned potential special tariffs for SMRs.

Q: Jeremy Tonet asked about CVOW's LCOE, transmission projects, and generation impact on coal plants.

A: Steven Ridge explained LCOE components; Robert Blue discussed transmission project proposals and no immediate coal plant retirements due to load growth.

Q: Anthony Crowdell asked about financial plan evaluation.

A: Steven Ridge stated focus on consistent, predictable earnings and evaluating tailwinds carefully.

Q: Carly Davenport asked about EPA regulations and SMR timing.

A: Robert Blue said IRP accounts for EPA regulations by capacity factor; IRP reflects SMR timing assumptions.