The paragraph is the introduction to Dominion Energy's First Quarter 2025 Earnings Conference Call. The operator welcomes participants and informs them that their lines are in listen-only mode until the Q&A session. David McFarland, Vice President of Investor Relations and Treasurer, then introduces the call, mentioning that earnings materials, which include forward-looking statements, are available. He advises participants to review SEC filings for risk factors and clarifies that some performance measures discussed differ from GAAP standards. He directs listeners to their Investor Relations website for additional resources. Key executives joining the call include Bob Blue, Steven Ridge, and Diane Leopold. Steven Ridge then takes over the presentation.

The article discusses the company's focus on three main priorities: meeting financial commitments, achieving milestones in the Coastal Virginia Offshore Wind project, and working with regulators for beneficial outcomes. The first quarter showed strong operating earnings of $0.93 per share, with GAAP results at $0.75 per share. The company is maintaining its financial guidance, expecting 2025 operating earnings per share between $3.28 and $3.52. Additionally, the company has raised around $1 billion through forward-settled common equity and plans to issue $200 million more in equity by year-end, aligning with its 2025 equity guidance.

The paragraph discusses Dominion Energy's activities and outlook. It mentions steady equity issuance in line with growth spending to maintain strong credit ratings, with no changes to credit-related targets. The company reports approximately 40 gigawatts of data center capacity in various contract stages and no slowing demand from data center customers. The financial plan remains conservatively built to handle unforeseen challenges. Additionally, the company reflects on a tragic safety incident involving an employee's death, emphasizing safety as a core value. Updates on the Coastal Virginia Offshore Wind project indicate it is 55% complete, with the first electricity delivery expected in early 2026 and full completion by the end of the following year.

The project aims to deliver nearly 3 gigawatts of electricity to Virginia's grid, supporting AI, cyber advancements, shipbuilding, and military installations. It enjoys bipartisan support from various stakeholders and has created around 2,000 jobs, generating $2 billion in economic activity. The project aligns with American energy goals and is backed by Virginia law and regulatory approvals. Progress includes 100% of transition pieces rolled, 86% welded, and 50% completed, with final installations expected by October. More than 80% of monopiles are completed, several already installed, with deliveries ongoing. The first offshore substation was installed in March, with two more expected by fall.

The paragraph outlines the progress of Siemens Gamesa's wind turbine project, with significant advancements in the fabrication of 176 turbines, including completed sections for 28 towers and ongoing production of 45 more. There are also 36 completed nacelles and 28 cast blades. The installation vessel, Charybdis, is on track to reach Virginia soon for turbine installation this summer. The project's costs, excluding tariffs, remain stable, with an unused contingency of $222 million. It discusses the uncertainty of tariff impacts on the project's final costs, noting current incurred tariff costs of $4 million, potentially rising to $120 million by the end of the second quarter, and possibly up to $500 million by 2026 if current policies persist. Dominion Energy's share could be $130 million, but future tariff changes could alter these estimates.

The paragraph discusses the updated cost and financial implications of an offshore wind project by Dominion Energy. The project's total cost has increased by $120 million, resulting in a minor unrecoverable charge absorbed due to cost-sharing arrangements with regulators and partner Stonepeak. Consequently, the project's cost is expected to raise residential bills by $0.04 monthly while maintaining a competitive cost per megawatt hour compared to other energy sources. Additionally, Dominion's recent regulatory filing seeks its first base rate increase since 1992, emphasizing the company's historically lower rate increases compared to inflation and proposing a new rate class for high energy users like data centers, aiming to ensure fair cost distribution.

The paragraph outlines Dominion Energy Virginia's energy initiatives, including a 14-year contract commitment to pay for requested power and plans to construct a gas-fired electric facility, the Chesterfield Energy Reliability Center, scheduled for 2029 completion with an estimated cost of $1.5 billion. The company is also tracking energy legislation in South Carolina focused on future generation, permitting reform, and investment recovery. Additionally, the Millstone facility in Connecticut performs well, supplying over 90% of the state's carbon-free electricity, with a significant portion under a fixed-price contract. Dominion is also engaging in New England to support nuclear power procurement. Overall, Dominion is achieving positive outcomes in its regulated service areas.

The paragraph discusses the company's plans to support incremental data center activity in Connecticut through collaboration with stakeholders. It highlights the retirement of Diane Leopold, acknowledging her contributions to the company over 36 years and expressing gratitude for her service. The speaker summarizes their focus on achieving financial commitments, completing the Coastal Virginia Offshore Wind project on time, and maintaining constructive regulatory outcomes. They emphasize their commitment to delivering reliable and affordable power. The floor is then opened for questions.

In this paragraph, Nick Campanella poses a question regarding the potential impact of tariffs on the delivery of turbines and other components for the CVOW project, asking about the confidence in suppliers meeting delivery schedules. Bob Blue responds by expressing confidence in their suppliers, particularly highlighting Siemens Gamesa's progress, which started on time and is producing as expected. Diane Leopold adds that all necessary raw materials have been purchased and are currently in fabrication, with Siemens Gamesa slightly ahead of schedule. Additionally, the tariff impacts have been disclosed, with no changes anticipated in terms of delivery schedules or capabilities.

The team, including the speaker, recently visited facilities related to nacelles and blades, noting that everything is on track or slightly ahead of schedule with deliveries expected in the coming weeks. Nick Campanella inquires about the start of the monopile installation season and its expected run rate in the coming months. Bob Blue confirms that monopile installation has started, highlighting the previous four months' achievements and suggesting that a pace of installing about 25 monopiles a month is achievable, though weather-dependent. Nick also congratulates Diane Leopold on her retirement. The operator then moves to the next question from James Kennedy, who asks about the permitting process for CVOW, particularly in light of the Empire Wind order, seeking more assurance from Bob Blue at the state and federal levels.

In the paragraph, Bob Blue discusses the ongoing communication with agencies regarding a large project that is fully permitted, and emphasizes that they are confident it will continue to progress. He addresses the potential financial implications of a stop work order, stating that while specific costs cannot be predicted without knowing the circumstances, any such situation would be transparently addressed. However, he reassures that halting the project would be impractical due to its benefits like adding 2.6 gigawatts to the grid and its support from Virginia lawmakers. Blue also touches on the impact of tariffs on their solar and storage investments, stating that the effects are manageable.

The paragraph discusses a company's efforts to enhance supply chain resilience by diversifying suppliers and managing tariff impacts. Most of their materials are sourced from U.S. suppliers, particularly in solar procurement. They have strategies to increase inventory, order ahead of tariff changes, and maintain cost efficiency for customers. The company finds tariff costs manageable. During a Q&A, Steve Fleishman of Wolfe Research asks if contracts allow the company to handle changes in tariffs, and Bob Blue confirms this. Fleishman also inquires if any electric topics, like the Coastal Virginia Offshore Wind (CVOW) project, have surfaced in the governor election, to which Blue responds that they have not.

The paragraph is a discussion from a conversation involving several people, including Bob Blue and David Arcaro, about infrastructure and energy initiatives. The discussion highlights the bipartisan support for offshore wind initiatives from both Republican and Democratic nominees and mentions the approval of a $1.5 billion gas plant in Chesterfield. David Arcaro from Morgan Stanley asks about data center demand in Bob Blue's service territory. Bob Blue notes that demand from data centers, particularly from hyperscalers focused on cloud and inference, remains very high, with customers eager to move quickly, a trend observed over a decade.

In the paragraph, David Arcaro and Bob Blue discuss energy expansion plans that extend into the 2030s. The conversation touches on potential developments at Millstone, where there is interest but no new updates, particularly regarding contract timing beyond the existing one expiring in 2029. Carly Davenport from Goldman Sachs shifts the focus to a biennial filing concerning a new rate structure for high-energy users, specifically those with a demand of 25 megawatts or more and a load factor of at least 75%. Bob Blue confirms that this structure includes a 14-year contract term.

The paragraph discusses a new tariff proposal for data center customers, focusing on minimum demand charges. The charges will be either 80% for transmission distribution or 60% for generation, based on the higher of contracted or actual usage. New customers will have a 14-year contract with a four-year ramp-up schedule. The proposal aims to ensure customers pay their fair share and reduce the risk of stranded assets. The company has engaged with data center customers during the proposal preparation, and the feedback has been constructive. Despite economic uncertainty, there is still strong demand for additional data center capacity. The conversation then shifts to a question about soft residential sales in the first quarter, which will be addressed by Steven Ridge.

The paragraph discusses the company's strong sales performance in the latest quarter, with sales trending slightly higher than their annual guidance, primarily due to robust sales in the commercial segment, including data centers. Despite observing slight weakness in the residential segment, the company is optimistic about future sales and will monitor the situation closely, providing further updates in upcoming quarters. The discussion then shifts to a biennial review involving a new tariff for large load customers. Bob Blue mentions that the introduction of a new tariff does not necessarily complicate or simplify the approval process, as rate class and cross-subsidy considerations are standard in rate cases. Finally, the paragraph notes a question from Durgesh Chopra at Evercore ISI, expressing condolences for Ryan's family and noting that the EPS for the first quarter of 2025 exceeded expectations.

In the paragraph, Steven Ridge discusses the company's first quarter 2024 earnings, highlighting that results modestly exceeded expectations. Key drivers of this performance included unexpected positive impacts from weather and sales, resulting in $0.03 and $0.02 benefits, respectively. The company achieved $0.55 earnings per share in Q1 2024, aided by $0.08 from weather, $0.04 from improved sales, $0.05 from later rate cases, and $0.08 from regulatory rider investment growth. This growth was reduced to $0.08 because half of it was sold under noncontrolling interest. Additional benefits came from $0.08 of interest expense reduction due to debt repayment and $0.06 from tax benefits, such as production tax credits, RNG adjustments, and other tax matters.

The paragraph discusses an unexpected positive financial impact from a court case resolution that wasn't budgeted, contributing to better-than-expected weather-related sales and tax and O&M timing adjustments. The company plans to maintain its original guidance range with a target midpoint of $3.40, looking to potentially derisk future years based on strong 2025 performance. The team feels optimistic about the current financial plan. Durgesh Chopra acknowledges the thoroughness of the outlook and bids farewell to Diane, who is retiring. Jeremy Tonet from JPMorgan inquires about updates on PJM network cost upgrades and potential cost pressures from tariffs or inflation. Bob Blue responds that no new information beyond previous discussions is available, and they don't anticipate significant changes.

In the conversation, Jeremy Tonet asks about the impact of transferability on market plans and potential tax credit transfers. Steven Ridge explains that their plan anticipates around $175 million in annual transfer tax credits from 2025 to 2029, primarily driven by offshore wind projects. If transferability changes, tax equity could efficiently replace the time value of the credits, so they feel prepared for such potential changes. Regarding equity needs, Ridge mentions they've been proactive with their 2025 financing plan to minimize future capital raising, and they are considering continuing such strategies through opportunistic market actions, possibly even extending them to 2026.

The paragraph describes the conclusion of a conference call. Jeremy Tonet thanks the speaker, Steven Ridge, and the operator announces the end of the question-and-answer session. Bob Blue provides brief closing remarks, thanking everyone for participating and wishing them a good day. The operator then indicates that the conference has officially ended and invites participants to disconnect.

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