Dominion Energy's Q1 2026 call showed solid execution on its core priorities, with CVOW reaching first power and progressing on schedule/budget. The company is reaffirming its long-term growth guidance and highlighting incremental capex opportunities, including a significant expansion in battery storage driven by new Virginia legislation. Reported Q1 2026 operating EPS of $0.95, beating consensus, and reaffirmed 5-7% long-term EPS growth guidance.
Dominion Energy's Q1 2026 call showed solid execution on its core priorities, with CVOW reaching first power and progressing on schedule/budget. The company is reaffirming its long-term growth guidance and highlighting incremental capex opportunities, including a significant expansion in battery storage driven by new Virginia legislation. Reported Q1 2026 operating EPS of $0.95, beating consensus, and reaffirmed 5-7% long-term EPS growth guidance.
Management affirmed the $65 billion five-year capital plan, highlighted incremental regulated capital opportunities such as grid-scale battery storage expansion in Virginia (20 GW target by 2045), and noted ongoing de-risking of the CVOW project with potential cost offsets…
Management affirmed the $65 billion five-year capital plan, highlighted incremental regulated capital opportunities such as grid-scale battery storage expansion in Virginia (20 GW target by 2045), and noted ongoing de-risking of the CVOW project with potential cost offsets…
CVOW project is 75% complete, has achieved first power, and turbine installation cadence has accelerated to ~2 days per turbine; budget slightly reduced to $11.4B.
Signed Virginia legislation (HB 895/SB 448) requires 20 GW of storage by 2045, signaling a major new regulated capex opportunity and potentially higher growth.
Management mentioned deploying AI tools in the contact center to improve customer service efficiency, but did not discuss AI as a revenue or product opportunity.
Data center demand remains strong with over 50 GW pipeline.. Management reiterated achieving financial commitments, highlighted strong project execution and regulatory progress, and expressed optimism about future growth catalysts.
Management affirmed the $65 billion five-year capital plan, highlighted incremental regulated capital opportunities such as grid-scale battery storage expansion in Virginia (20 GW target by 2045), and noted ongoing de-risking of the CVOW project with potential cost offsets, while maintaining credit targets.
Management reiterated achieving financial commitments, highlighted strong project execution and regulatory progress, and expressed optimism about future growth catalysts.
“Since then, we've been able to ramp the installation rate markedly, including averaging approximately two days per installation for our last four turbines.”
“We estimate that that has the potential to be in the $200-ish million range, which, as I mentioned, would have the potential of being offset by some of the reallocation of transmission costs.”
“The $65 billion five-year capital plan... includes already about $2 billion or about 3% related to battery storage subject to regulatory approval.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2028 | 5%–7% | 6% | MAINTAINED |
Dominion's 10.4 GW of contracted data center load (likely including major hyperscalers like Amazon) reinforces strong, funded demand for power, underpinning the company's growth.
“Large load provisions ensure those customers will fund the infrastructure required for their growth, protecting existing customers from cost shifts and mitigating stranded cost risk.”
… year around the opportunity to recontract Millstone. Turning to data centers on slide four, we now have over 50 gigawatts of data center capacity in various stages of contracting, including approximately 10.4 gigawatts of capacity contracted under electric service agreements. Since our last update, We continue to see accelerating and durable demand from our differentiated, high-quality, low-risk data center customers. Large load provisions ensure those customers will fund the infrastructure required for their growth, protecting existing customers from cost shifts and mitigating stranded cost risk. Quickly on the financing plan and credit. Year-to-date, we have issued approximately $1.2 billion of common equity under the ATM, leaving $400 to $600 million for the remainder of the year, consistent with our Q4 call guidance. As mentioned previously, there is no change to our credit-related targets. Full year 2025 and Q1 LTM FFO to debt metrics are both above 15%. demonstrating our commitment to credit strength. And we continue to de-risk CVOW as we achieve major milestones such as first power in March. In closing, we are off to a good start to the year, aligned with our guidance …
Dominion's utility is a key provider for data center capacity, with contracts that shift infrastructure costs to the customer, benefiting large tech companies planning expansions in Virginia.
“We continue to see accelerating and durable demand from our differentiated, high-quality, low-risk data center customers.”
… opportunities, in our capital update early next year. And as Bob will discuss in his prepared remarks, we expect increasing clarity later this year around the opportunity to recontract Millstone. Turning to data centers on slide four, we now have over 50 gigawatts of data center capacity in various stages of contracting, including approximately 10.4 gigawatts of capacity contracted under electric service agreements. Since our last update, We continue to see accelerating and durable demand from our differentiated, high-quality, low-risk data center customers. Large load provisions ensure those customers will fund the infrastructure required for their growth, protecting existing customers from cost shifts and mitigating stranded cost risk. Quickly on the financing plan and credit. Year-to-date, we have issued approximately $1.2 billion of common equity under the ATM, leaving $400 to $600 million for the remainder of the year, consistent with our Q4 call guidance. As mentioned previously, there is no change to our credit-related targets. Full year 2025 and Q1 LTM FFO to debt metrics are both above 15%. demonstrating our commitment to credit strength. And we continue to …
Dominion's contract pipeline with data center operators (including Digital Realty) indicates strong demand for power in its service area.
“Over 10.4 gigawatts of capacity contracted under electric service agreements.”
CVOW turbine installation pace has improved to roughly 2 days per turbine, with management seeing a similar productivity curve to monopiles and transition pieces, where pace accelerated dramatically after initial learning. — This operating performance read-through suggests the offshore wind supply chain is stabilizing and costs per megawatt could decline, supporting project economics.
“we're seeing materially positive improvements in the installation cadence as shown on slide seven.”
… is proceeding as planned. Deepwater export cables are installed and inter-array cable installation is on track. All of the remaining cabling is now fabricated. and the majority has landed in Virginia. And we're making excellent progress on turbine fabrication. Over 86% of towers, approximately 69% of the cells, and about 45% of blades have been fabricated. This progress tracks well relative to our schedule. With regard to wind turbine generators, we're seeing materially positive improvements in the installation cadence as shown on slide seven. We affirm our previously communicated timeline for project completion, with the majority of turbines expected to be placed in service by the end of 2026 and the remainder in early 2027 prior to the end of June. As of this morning, we've completed nine turbines. During the first quarter, we successfully calibrated our procedures and equipment and navigated winter weather. Since then, we've been able to ramp the installation rate markedly, including averaging approximately two days per installation for our last four turbines. which supports our existing timeline for project completion. We continue to see paths to optimize the …
Dominion's mention of PJM transmission cost reallocation indicates sector-wide issues that could affect other utilities with generation interconnection projects.
… our quarterly updates. As shown on slide eight, the project budget now stands at $11.4 billion, which is approximately $100 million lower than our last update. We've updated the budget to reflect changes in tariff assumptions as a result of recent judicial and administrative actions. Unused contingency stands at $123 million. Looking forward on project costs, we're monitoring the potential of two recent events. First, certain regional transmission projects were captured in both the PJM transition cycle, which resulted in network upgrade costs allocated to CVAO and the subsequent broader RTEP award package. As a result, we would expect the overall network upgrade cost allocated by the PJM transition cycle across all Generation Q projects, including CVAO, to be reassessed and reduced. Second, recently updated steel and aluminum tariffs, which are pending additional information from suppliers and guidance from the applicable agencies. As shown on slide 9, the project's cost sharing and risk sharing continue to work as intended. to protect customers and shareholders with no change to either LCOE or customer bill impacts. CVAO remains one of the most affordable sources of energy for …
Dominion is citing its project execution track record as a competitive differentiator within the broader utility sector.
CVOW turbine installation pace has improved to roughly 2 days per turbine, with management seeing a similar productivity curve to monopiles and transition pieces, where pace accelerated dramatically after initial learning. — This operating performance read-through suggests the offshore wind supply chain is stabilizing and costs per megawatt could decline, supporting project economics.
… in the installation cadence as shown on slide seven. We affirm our previously communicated timeline for project completion, with the majority of turbines expected to be placed in service by the end of 2026 and the remainder in early 2027 prior to the end of June. As of this morning, we've completed nine turbines. During the first quarter, we successfully calibrated our procedures and equipment and navigated winter weather. Since then, we've been able to ramp the installation rate markedly, including averaging approximately two days per installation for our last four turbines. which supports our existing timeline for project completion. We continue to see paths to optimize the process, resulting in improved installation times. In addition, we're moving into better weather windows for the next several months. Please note the current project budget includes turbine installation schedule contingency for weather delays through July 2027 as needed, including Charybdis charter costs. I'll also reiterate our general rule of thumb. If the project extends beyond July 2027, we estimate that each additional quarter to complete turbine installation would add between $150 million and …
Dominion flagged a risk of new steel & aluminum tariffs adding ~$200M to CVOW costs, but this may be offset by a reallocation of network upgrade costs away from the project, implying net-neutral cost impacts. — This net-neutral scenario reduces the risk of project cost overruns, potentially easing equity funding requirements for Dominion.
Okay, looking forward to it. And then maybe just moving to CVAO, just two questions there. I just wanted to clarify, the PJM upgrade costs, Are they included or not in the figures you're putting out there today? Or is that still downward pressure? And then how are you thinking about the potential 232 steel tariffs? Thanks.
Yeah. Yeah, Nick, another really good question. So today's mark does not reflect the potential for certain transmission costs that were allocated to CVAL being potentially reallocated. And Bob mentioned sort of the process whereby that occurs and why that might occur. So that would be something to watch as we move forward into the year. And then on 232, we're also taking a mark on that, which is we're awaiting some additional interpretive guidance from the agencies. We're evaluating with our partners, many of whom are the importer of record. to completely finalize that. So we estimate that that has the potential to be in the $200-ish million range, which, as I mentioned, would have the potential of being offset by some of the reallocation of transmission costs. We don't have exact precision on how those two will balance, but they seem to be somewhat generally in the same area. So those are the two things to watch going forward.
Dominion is likely to accelerate capital spend on battery storage beyond the current $2B in its 5-year plan, catalyzed by new Virginia legislation (20 GW target by 2045).