Key highlights from Dominion Energy Inc (D) Q2 2023 Earnings Concall
- [00:04:48] Dominion announced an agreement to sell its remaining interest in Cove Point, generating approximately $3.3 billion in cash after-tax to reduce debt.
- [00:05:08] D said the sale of Cove Point is seen as an attractive exit and a step towards improving the company’s credit profile.
- [00:15:12] D’s offshore wind project remains on-time and on-budget, consistent with the timelines and estimates previously provided.
- [00:19:56] Shahriar Pourreza with Guggenheim asked if Dominion considers exercising its option to acquire a stake in the Coastal Virginia Offshore Wind project, given the recent decline in offshore wind costs. Robert Blue CEO said Dominion is reviewing its option to acquire a stake in the Coastal Virginia Offshore Wind project as part of its business review, but cannot provide any further updates at this time.
- [00:22:07] Shahriar Pourreza of Guggenheim enquired for more details on the upcoming outage at Millstone Unit 3 and the potential impact on O&M costs and capital investments. Steven Ridge CFO replied that Dominion Energy expects to incur about $0.02 of O&M costs and loss margin in 3Q and 4Q due to the planned outage at Millstone Unit 3. The company does not expect any major capital investments to be required to remediate the issue.
- [00:25:35] Jeremy Tonet at J.P. Morgan asked about the reaction from regulators and stakeholders in Virginia to the rate reduction approved for Dominion Energy. Robert Blue CEO answered that Dominion has a history of positive regulatory outcomes in Virginia, and the recent rate reduction is seen as another example of the company’s commitment to providing safe, reliable, and affordable energy to customers.
- [00:27:08] Carly Davenport from Goldman Sachs asked if PJM’s peak forecast accurately captures the growth that D is seeing in Virginia, and how does that impact D’s forecast for electric sales growth in Virginia going forward. Robert Blue CEO said the company believes that PJM’s sales forecast is accurate and reflects the strong demand growth that the company is seeing from data centers in Virginia.
- [00:28:32] Carly Davenport from Goldman Sachs enquired about the investments included in the initial $1.2 billion nuclear life extension program, and what other potential phases could the program include. Robert Blue CEO said Dominion plans to invest $4 billion in a variety of programs to extend the lifespan of its North Anna and Surry nuclear power plants by 20 years. This includes installing carbon fiber inlay on piping and other projects to improve reliability.