The operator welcomes participants to the Dominion Energy First Quarter Earnings Conference Call and introduces the speakers. The speakers discuss the company's performance and mention that the earnings materials contain forward-looking statements. They also mention that they will be discussing non-GAAP measures and provide a reconciliation to GAAP measures. The first quarter 2024 operating earnings were $0.55 per share, with $0.06 of headwind from weather and positive factors including higher sales and regulated investment growth.

The company's first quarter earnings were $0.78 per share, including a net benefit from discontinued operations and other noncash impacts. The company has affirmed its financial guidance for 2024 and 2025, with expected earnings per share between $2.62 and $2.87 for 2024 and between $3.25 and $3.54 for 2025. They also anticipate a 5-7% annual growth rate through 2029, excluding the impact of RNG 45Z credits, which are only applicable until 2027. The company is no longer providing quarterly earnings guidance.

Dominion Energy has provided an update on their business review initiatives, stating that they have achieved 53% of their targeted debt reduction through various transactions. They are working towards timely closings for the remaining 47%, including the sales of Questar Gas, Wexpro, and Public Service of North Carolina. They expect all regulatory proceedings to conclude and transactions to close by 2024. They have also announced an offshore wind partnership that requires approvals from various regulatory agencies, and all necessary filings have been submitted. This partnership will provide significant benefits for Dominion Energy customers and shareholders.

The business review has resulted in significant improvements to the company's credit profile, leading to positive comments from rating agencies. The company plans to issue common equity and utilize hybrid securities to maintain strong credit ratings. The financial plan is conservative but built to weather challenges. The speaker then turns the call over to Bob, who will discuss the company's safety performance.

The company has seen a significant improvement in their employee OSHA injury recordable rate and commends their colleagues for their focus on safety. The results of their comprehensive business review were announced on March 1 and shareholders have provided their feedback and expectations for the company. The review was thorough and addressed challenges faced in the past. There have been changes made to enhance transparency and align with shareholder interests. The company is fully committed to executing and delivering on their operational and financial guidance.

The speaker is accountable for the execution and delivery of their company's plan and is excited for the next chapter. They provide updates on their offshore wind project, stating that there has been no delay and they expect to begin monopile installation in early May. They also mention a recent motion filed in court, but believe the lawsuit has no merit and expect it to be denied. The project is proceeding as planned and on budget.

The project has received all necessary federal permits and is making good progress with materials and equipment. Monopiles are being delivered and will begin to be installed next week. The first offshore substation topside structure and transition pieces have been completed and delivered. Manufacturing of turbines and cables is on track. DEME has successfully installed the same turbine model that will be used for the project in a previous project, providing valuable lessons for future installation. Onshore construction activities are also on track. A regulatory hearing is scheduled for later this month regarding the project's annual revenue.

The company has updated the expected LCOE for the project to be $73 per megawatt hour, which is lower than the previous estimate due to factors such as an updated REC price forecast. The project has invested $3.5 billion and is on track to spend $6 billion by the end of 2024. 93% of project costs are now fixed, and the remaining contingency is benchmarked competitively. The project is currently 28% complete, and the Charybdis vessel is 85% complete.

The article discusses the successful launch of the vessel Charybdis and its role in supporting the construction of the CVOW project. The vessel's expected delivery timeframe and availability remain unchanged, and a charter agreement has been terminated to potentially accelerate its deployment. This does not have a significant impact on the company's financial plan. Charybdis is important for the growth of the offshore wind industry and has generated strong interest. The article also mentions affordability and regulatory updates, stating that current rates at DEV are 14% below the national average.

In the past year, DESC has made several filings that would result in a 3% reduction in bills for residential customers. Their current rates are 18% below the national average and they have invested $1.6 billion in their system. They expect new rates to be effective in September. In Virginia, there is a growing demand for electricity due to economic growth, electrification, and data center expansion. DEV's sales growth rate is on track with their full-year expectations and they have connected 94 data centers with more planned for the future. Northern Virginia is a leading market for data centers.

The growth of data centers has greatly increased in recent years, leading to a higher demand for electricity and the need for additional infrastructure. Requests for larger data centers and campuses with high electricity demand have become more common. PJM's recent capacity auction planning parameters align with the company's analysis of load growth and the need for more resources. The company is taking steps to ensure the reliability of their system, including accelerating plans for new transmission lines and working with stakeholders to fast-track critical projects. The company's financial plan is driven by the demand, reliability, and needs of their customers.

The speaker discusses the demand growth in the utility industry and the potential for incremental regulated capital investment. They mention their long-term view in their IRPs and their focus on providing reliable energy to customers. They also mention their outstanding safety performance and their offshore wind project. The speaker affirms all financial guidance and addresses a question about data centers and self-generation.

Robert Blue, CEO of Dominion Energy, answers questions about the company's pipeline and how it will mitigate load growth. He also discusses potential rate designs and tariff changes to benefit Virginia customers and address interconnection costs. Dominion Energy has strong relationships with data center customers and is working on alternative rate designs with them. Blue also mentions the importance of transmission investment and expresses confidence in finding solutions that work for customers and shareholders. He briefly touches on resource adequacy and the upcoming capacity auction.

Robert Blue, CEO of a company, discusses their plans for incremental generation spend and the recent update to their Integrated Resource Plan (IRP). He mentions that this could potentially be accretive to their business. Blue also talks about their participation in the PJM capacity market and their decision to return to the auction starting with the 2025-2026 auction. He states that this decision does not change their guidance or operations, and that they anticipate substantial load growth driven by electrification and data centers in the future. Nick Campanella from Barclays asks a question about this update.

In response to a question about the potential impact of HB 5118 on their regulatory footprint in South Carolina, Steven Ridge of Nicholas Campanella discusses the pending legislation and focuses on the company's current priorities in the state, including their electric base rate case and plans for growth capital. He also mentions the progress of their offshore wind project, which is currently ahead of schedule, and potential future contracting opportunities for the ship after the project is completed.

Steven Ridge discusses the assumptions made regarding the ability to contract a vessel to third parties and the timeline for the project. He states that there is no change to the expected completion date of late 2024 or early 2025, and that the termination of the charter will not affect the overall timeline. He also mentions that the company is on track with vessel availability and is building cushion to mitigate unforeseen events. Finally, he mentions that they have not disclosed the number of shares issued through the ATM for this year.

The company has not yet issued any shares of the ATM due to an expired registration statement. They plan to implement the program soon. They are also considering investing in gas storage and combustion turbines to support their growing renewable energy production. In regards to the possibility of supplying power to data centers, the company has nothing new to report since signing an MOU in February of 2023.

The company is working with state agencies and legislators to gain approvals for a project at the Millstone Power facility. They have not factored in any financial assumptions for a co-located data center at the facility. Legislation in Virginia supports nuclear power and the company is considering the potential for SMR development in the state. However, they will only pursue this if it aligns with their business risk profile and is beneficial for customers.

The speaker discusses the company's exploration of SMRs, which are dispatchable and nonemitting, but admits that there is still a ways to go. They then answer questions about data centers, stating that ramp times have been accelerating and that they expect 15 to be connected this year. They do not have specifics on how long it will take for these data centers to reach full capacity, but note that historically it has taken 4-5 years, but now could be closer to 2-3 years. The speaker also discusses the process of evaluation with data center developers and how their contracts are structured to protect ratepayers.

The State Corporation Commission would need to approve any changes to the current contract minimum demands that are in place for the company. These demands cover the incremental cost of the infrastructure being built. The call has now ended.

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