This paragraph introduces the Dominion Energy Second Quarter Earnings Conference Call and provides an overview of the call. It also mentions that the call will include discussion of non-GAAP financial measures and introduces the executives that will be speaking on the call. Additionally, it mentions that the company reported second quarter operating earnings of $0.53 per share and that they are on pace to have the best safety year in the company's history.

The speaker is pleased with the progress they are making in their business review and have been engaging with their shareholders to ensure an optimal result. They have committed to providing rate relief to customers, improving operating earnings quality, and maintaining the current dividend. They are also working to allocate billions of dollars of annual investment to benefit customers and capital providers in the state of Virginia.

In the second quarter of 2023, operating earnings were $0.53 per share. Bob discussed cost control and customer service standards, and the company announced an agreement to sell their remaining interest in Cove Point, which will generate $3.3 billion of cash after tax to reduce debt. This transaction is expected to close later this year and is highly credit accretive.

In the second quarter of the year, the guidance was revised from $0.58 to $0.68 per share to $0.44 to $0.50 per share due to mild weather and unplanned outages at Millstone. The outages were assessed by new Chief Nuclear Officer Eric Carr and the results of the quarter included higher sales and lower O&M, higher interest expense, lower DEV margins, higher depreciation, and the absence of solar investment tax credits. The net income for the quarter was $0.69 per share, which included positive non-cash mark-to-market impact of economic hedging activities and unrealized gains in the value of the Nuclear Decommissioning Trust Funds.

The company is not providing full year 2023 earnings guidance due to the pending Business Review. For the third quarter of 2023, they expect operating earnings to be between $0.72 and $0.87 per share, a decrease from last year's $1.11 per share. This is due to higher interest expense, the $350 million rider revenue reduction, the removal of Cove Point from operating earnings, the elimination of solar investment tax credits, and lower interest expense from parent debt retirement. The company also emphasizes the importance of meeting any post review financial targets, and they describe the long term scope and duration of their resiliency and decarbonization capital investment opportunity as very much intact.

PJM discussed electric load projections that forecast a 5% growth in the DOM zone for the next 10 years. This growth is reflected in the increased sales in Virginia over the last 12 months. Last week, PJM registered new summer peak demand records on consecutive days. The intersection of demand growth and strong policy support is an opportunity for the company, customers, and capital providers. PJM's commitment to credit remains unchanged and they are looking for efficient sources of capital to improve their balance sheet and fund their investments while minimizing the need for external equity financing.

The Virginia rate reform legislation, which became effective on July 1, provides significant bill relief for Dominion Energy customers and supports the long term stability of the utility segment. This legislation provides the certainty needed to fund and execute critical energy investments, resulting in a $14 reduction to the typical residential customer monthly bill. Half of this reduction comes from the cessation of riders and the other half from a downward adjustment to the component of electric rates that recovers the cost of power station fuel and purchase power.

The Delaware Electric Cooperative (DEV) has submitted a fuel securitization proposal and a biannual review filing to the commission, which would avoid an abrupt rate increase of $15 per month for typical residential customers. DEV has an exceptionally reliable and affordable service, with 99.9% average reliability delivered at rates 22% below the national average and a typical residential bill that has grown by only 1.2% year-over-year since 2010. The commission is expected to make a final order by March 3 of next year. DEV has also been working closely with the Bureau of Ocean Energy Management on an offshore wind project, which is on time and on budget, and the SEC has approved an updated offshore wind rider with an annual revenue requirement of $271 million for jurisdictional customers.

The project is progressing as expected and costs are more than 90% fixed. The company has invested around $1.7 billion and expects that to grow to $3 billion by year end. The expected LCOE is now at the low end of $80 to $90 per megawatt range. The installation vessel is 74% complete and is expected to be finished by the end of 2026. The company has also seen strong regulatory outcomes related to nuclear life extension, clean energy, and grid transformation. Finally, they are working on infrastructure upgrade projects for data center customers and a 500 kV transmission line with an expected in service date of late 2025.

Dominion Energy has submitted a number of projects to the PJM transmission planning process in order to ensure the electric grid in Virginia is reliable and resilient. In addition, electric rates for residential customers in South Carolina are 9% below the national average. The company is also in the process of completing testimony and hearings in a natural gas general rate case, and has implemented a fuel adjustment to eliminate under collections. Lastly, strong economic development is driving customer growth in North Carolina and Utah, and the company has six RNG projects currently injecting gas. Overall, the company reported operating earnings of $0.53 per share, is executing on decarbonization and resiliency investments, and is on schedule and on budget with its offshore wind project.

Bob Blue, CEO of Dominion Energy, is focused on creating long-term value for shareholders and is ready to answer questions. Shar Pourreza asked if there are any changes to expectations for the Investor Day, to which Bob replied that there have been no changes and that all questions will be answered. Shar then asked about any interest in the offshore wind stake option and Bob replied that they are reviewing it as part of the business review but he could not update any further. Lastly, Shar asked about the quantum of the Millstone unit outage this fall and Bob could not provide any further details.

Steven Ridge explains that there is nothing unusual about the planned outage for the fourth quarter and that there were no fundamental issues discovered that would require massive amounts of capital investment. He also states that at the Investor Day in the third quarter, they will provide clear direction on their company's post review earnings and earnings growth outlook. 2023 is a transition year for the company.

Bob Blue states that people are generally positive about the rate reduction in Virginia, and that their regulatory outcomes have been strong over the last few years, with reliability, rates, and clean energy programs all being approved. He also notes that their rates are substantially below the national average, which bodes well for their future regulators. Carly Davenport then asks if PJM's peak forecasts capture the growth that they are seeing in Virginia.

Bob Blue of Virginia Electric discussed their electric sales growth forecasts for 2023 and beyond. He mentioned that there is strong demand growth this year and that there is no evidence of this growth abating. He also discussed their nuclear life extension program, which will include an investment of $4 billion, with the initial $1.2 billion being used for projects such as the installation of carbon fiber inlay piping.

The speaker is telling the listener to disconnect their lines and to enjoy their day.

This summary was generated with AI and may contain some inaccuracies.