Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q4 2022 Earnings Presentation
49 slides from Dominion Energy's earnings presentation, Feb 8, 2023
Slide 1: Q4 2022 earnings call
Q4 2022 earnings call February 8, 2023
Slide 2: Important note for investors
Important note for investors This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Dominion Energy. The statements relate to, among other things, expectations, estimates and projections concerning the busine
Slide 3: Delivering value to our stakeholders
Delivering value to our stakeholders Committed to safe, reliable, affordable and sustainable energy OSHA incidents¹ Reliable – SAIDI³ Residential electric customer rate (cents per kWh)5 (68%) (13%) 22.2 1.65 140 134 19.5 (10%) (10%) 128 122 15.6 15.6 120 14.3 14.0 14.1 1.04 0.52 0.46 0.41 2006 - 202
Slide 4: 2022 year in review: Advancing our regulated decarbonization and resiliency strategy
Dominion Energy 2022 year in review: Advancing our regulated decarbonization and resiliency strategy Update Commission approved: Advancing: Offshore wind including onshore transmission Solar and energy storage (CE-3) DEV Nuclear subsequent license renewal Electric transmission (data centers)
Slide 5: Business review: Proceeding with pace and with purpose
Dominion Energy Business review Proceeding with pace and with purpose Q3 call commentary: Commitments Q4 call commentary: Priorities Premier state-regulated utility profile Durable, high-quality, and predictable long-term earnings growth profile + consistent execution Industry-leading regula
Slide 6: Virginia legislative session timeline
Dominion Energy Virginia legislative session Timeline February 25: Scheduled adjournment sine die of General Assembly March 27: Deadline for Governor action on legislation¹ April 12: Reconvened session in General Assembly Mid-May: Deadline for Governor action on legislation passed/amended du
Slide 7: Operating earnings per share
Operating earnings per share Actual versus guidance ($ per share) Fourth quarter 2022 Full-year 2022³ $4.18 $4.11 $4.10 $1.13 $4.03 $1.06 $1.06 Favorable weather $0.98 impact on utility earnings: $0.01 Actual¹ Weather Guidance¹ Actual¹ Weather Guidance¹ normal² normal² ¹ See fourth quarter 2022 Earn
Slide 8: Operating earnings per share
Operating earnings per share Actual and guidance ($ per share) $1.18 $1.12 Q1 2023 (YoY drivers) ▲ Regulated investment $0.97 ▲ Sales ▲ Millstone margins ▼ Interest expense ▼ DEV margins ▼ Pension ▼ Depreciation ▼ Solar ITC ▼ O&M/tax timing ▼ Return to normal weather Q1 '22 Guidance Q1 '23¹ ¹ See th
Slide 9: Regulated electric sales growth
Regulated electric sales growth 2022 weather normal sales growth¹ Regulated electric sales trends Robust commercial load growth driven by Data Residential Commerical Industrial Govt/Other Total Centers 10.2% Customer growth remains strong across our Virginia 3.4% 1.4% and South Carolina service
Slide 10: Business Review timeline
Dominion Energy Business Review timeline Dominion Energy Business Review update Virginia legislative session Q2 2023 Q3 2023 (Up to mid-May) Dominion Energy Investor day 10
Slide 11: Dominion Energy Virginia: PJM DOM zone summer peak load
Dominion Energy Virginia PJM DOM Zone summer peak load (GW)¹ 31.6 2023 load forecast report projects an average 10-year summer load growth of 5% per year 2023: ~30% increase vs 2021 load forecast 2023: 3.5 GW increase vs 2022 load forecast 24.7 2022: 2.6 GW increase vs 2021 load forecast 21.2 2020 2
Slide 12: Dominion Energy Virginia: Regulated offshore wind
Dominion Energy Virginia: Regulated offshore wind Project update Approved settlement to remove performance guarantee and replace it with protections for customers related to certain increases in construction costs above the Project’s budget¹ Draft environmental impact statement (DEIS) published
Slide 13: Dominion Energy Virginia: Regulated offshore wind
Dominion Energy Virginia: Regulated offshore wind Installed cost risk profile: Fixed costs as percentage of total project costs¹ Major offshore equipment released for % Fixed 0% 90%+ fabrication Onshore construction contracting Fixed costs Rider by Q1 2023 application submitted; Currently ~80% f
Slide 14: Select business updates
Select business updates Attractive customer growth Filed 2023 IRP: Accelerated coal retirements and renewable energy Dominion Energy South Coal only generation retired by year-end 2030 Carolina Proposed: 6 GW+ of solar and battery storage (2026+) Proposed: natural gas generation (2030+)
Slide 15: Summary
Summary Safety remains our top priority as our first core value Delivered 2022 financial results in-line with our guidance Executing an industry-leading regulated decarbonization and resiliency investment opportunity to benefit of all stakeholders Settlement approved by SCC for Coastal Virgi
Slide 16: Appendix
Appendix W Dominion Energy’
Slide 17: Operating segments
Operating segments Summary State-regulated utility operations Dominion Energy Dominion Energy Contracted Gas Distribution Virginia South Carolina Assets O CT VA H ID W O States of operation Y SC H Southeastern UT NC & Mid- UT Atlantic U.S. NC 2022 operating ~57% ~20% ~14% ~10% earnings contribution
Slide 18: Components of investment base
Components of investment base Percentage of total investment base¹ Coal: 6% Contracted Assets: 9% Gas Distribution: 17% Other DESC: 16% Electric transmission/distribution: 57% 36% zero-carbon + DEV: 58% 31% of total 21% wires investment base: Nuclear: 12% zero- Virginia electric carbon Renewable²: 9
Slide 19: Net Zero
Environment Material emissions reductions as zero-carbon generation displaces emitting technologies Owned generation dispatch (MWh) Enterprise-wide CO2e¹ by fuel type² Coal Gas Zero-carbon 44%↓ 45% 49% ~70%— 70% 99% 80%↓ Net Zero 4% zero & low emitting 40% 47% 29% 10% Baseline 2021A 2035E 2050E 2005
Slide 20: Dominion Energy Virginia regulatory summary
Dominion Energy Virginia Regulatory summary Electric Dominion VA base Transmission VA riders Energy Other rider North Carolina Rate base ~$10.0¹ ~$8.82 ~$9.2³ ~$1.74 ~$2.15 ($B) Common 52.3%7 52.7%8 52.3%7 52.0%9 N/A equity % Allowed 9.35%6 11.4%10 9.35%11 9.75% N/A ROE Wholesale/ Authority VaSCC FE
Slide 21: Dominion Energy Gas Distribution regulatory summary
Dominion Energy Gas Distribution Regulatory summary Utah and Ohio Wexpro North Carolina Wyoming Rate base $4.24 $2.6 $0.4 $2.0 ($B) Common 51.3% 51.1%1 100.0%² 51.6% equity % Allowed 10.4% 9.6%1 7.2% – 19.0%² 9.6% ROE Customers 1.2M 1.2M –³ 0.6M Note: Excludes RNG development 1 Weighted average of U
Slide 22: Dominion Energy South Carolina regulatory summary
Dominion Energy South Carolina Regulatory summary Electric Gas CCR Rate base $6.5¹ $1.0¹ $1.5 ($B) Common 51.6%² 53.93%³ 52.8% equity % Allowed 9.5%² 10.25%³ 9.9% ROE Customers 0.8M 0.4M – ¹ September 30, 2022 ² Approved SC PSC Order 2021-570 ³ Approved SC PSC Order 2022-686 22
Slide 23: Dominion Energy South Carolina Capital Cost Rider
Dominion Energy South Carolina Capital Cost Rider (“CCR”) The capital cost rider was approved under terms of the South Carolina PSC merger approval in late 2018 Allows recovery of and return on ~$2.8B of New Nuclear Development costs Disallowed recovery/permanently impaired the other ~$2 billion
Slide 24: Dominion Energy Virginia: Experienced partners
Dominion Energy Virginia: Regulated offshore wind Experienced partners Wind turbine Offshore Transport & Monopiles Transition pieces generators substations install Note: Illustration not to scale 24
Slide 25: Northern Virginia largest data center market
Dominion Energy Virginia Northern Virginia boasts the largest data center market in the world¹ Loudoun County² Data center development in Virginia Data Center Alley Connectivity to world class fiber networks Attractive business climate Access to largest data center workforce (U.S.) Washington
Slide 26: Regulated electric sales by class
Regulated electric sales by class EPS impact for 1% (full year) change in electric sales Dominion Energy Virginia: Dominion Energy South Carolina: Weather normal regulated electric sales (2022A) Weather normal regulated electric sales (2022A) Data centers: 44% ~21% of total DEV volume 37% 35% MBR/SC
Slide 27: Customer-elected rates: MBR/SCR
Dominion Energy Virginia Customer-elected rates: MBR/SCR¹ MBR/SCR are customer elected rate schedules or 2022A 2023E contracts with market-based rates that provide Sales volumes (M MWh) 10.5 11.1 qualifying customers with rates for generation services that reflect pricing in the PJM wholesale mark
Slide 28: Contracted Assets
Contracted Assets 2023E – 2025E Millstone energy position as of December 31, 2022 1% open 16% open 0.2M MWh 39% open 2.7M MWh 6.5M MWh 42% hedged 31% hedged 6.6M MWh 5.2M MWh $51.38 $67.52 15.9M 16.9M 16.5M MWh in MWh in MWh in 2023E¹ 2024E 2025E 57% long-term 53% long-term contracted 54% long-term
Slide 29: Best-in-class O&M control
Best-in-class O&M control Electric non-fuel O&M per sales ($/MWh) $200 Top quartile D¹ Peer² $/MWh Electric non-fuel O&M Lower is better $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 D Ranking: 4th 3rd 3rd 2nd 2nd 1st 2nd 4th 2nd 2nd Note: Source of data is FERC Form 1 for respective annual p
Slide 30: Fuel cost impacts
Fuel cost impacts Actively managing fuel recovery with a focus on customer impacts Latest fuel clause Under-recovered Commentary change as % bill¹ balance (Dec. 2022) 12-M fuel clause to reset to current forecast and true-up prior year DEV – Virginia 7%² $1.6B Adjustment: 36-M recovery of unreco
Slide 31: ESG
ESG W Dominion Energy’
Slide 32: ESG highlights
ESG highlights Select 2022 milestones Broadened Net Zero commitment to also include Scope 2 and 3 emissions¹ Released updated, TCFD-aligned Climate Report, which models potential paths to achieving Net Zero carbon dioxide and methane emissions for Scopes 1, 2 and material categories of Scope 3 b
Slide 33: Industry leading ESG profile
Industry leading ESG profile Committed to safe, reliable, affordable and sustainable energy and achieving net zero by 2050 Core values 70%+ reduction Net Zero 44% Safety, Ethics, Excellence, In OSHA recordable rate Net Zero Scope 1, 2, and 3 Reduction in enterprise- Embrace Change, One since 2006 CO
Slide 34: Environment
Environment Achieving enterprise-wide Net Zero carbon and methane by 2050 Coal capacity (GW) Share of gen. dispatch 47% 8.1 10% 5.4 1% 3.9 <1% 100% Renewable 2.2 2.2 Portfolio Standard 0.6 in VA by 2045 2005A 2022A 2027E 2031E 2035E 2045E 2045E+ DESC proposes to exit coal by the end of 2030 DEV coal
Slide 35: Third-party ESG assessments
Third-party ESG assessments Dominion Energy’s independent 3rd party scoring reflects best-in-class ESG performance “Leadership Dominion Energy Sector average “Leadership band” Lower score = better “Trendsetter” band” A “Leader” 94 A- 83 B B AA 31 25 A CDP—Climate CDP—Water MSCI Sustainalytics
Slide 36: Third-party ESG assessments
Third-party ESG assessments Track record of participation and improvement A A 91 91 91 94 94 A- A- A- A- A- AA AA Scoring methodology B B changed in 2020 A A Lower score = better BBB 33 28 25 F ’17 ’18 ’19 ’20 ‘21 ’18 ’19 ’20 ’21 ‘22 ’18 ’19 ’20 ’21 ‘22 ’18 ’19 ’20 ’21 ‘22 ’18 ’19 ’20 ’21 ‘22 CPA-Zi
Slide 37: Financial and operational supplement
Financial and operational supplement 37
Slide 38: Dominion Energy Virginia generation portfolio
Dominion Energy Virginia Generation portfolio Summer Summer Summer Cap. Cap. Cap. Plant Location Type (MW) Plant Location Type (MW) Plant Location Type (MW) Surry Surry, VA Nuclear 1676 Roanoke Rapids Roanoke Rapids, NC Water 95 Fort Powhatan Disputanta, VA Solar 150 North Anna Mineral, VA Nuclear 1
Slide 39: Dominion Energy South Carolina generation portfolio
Dominion Energy South Carolina Generation portfolio Summer Fuel Type Summer Cap. (MW) (%) Plant Location Type Cap. (MW) Gas 2,511 44% Jasper CC * Hardeeville, SC Gas 903 Coal 1,704 30% Columbia Energy Center CC * Gaston, SC Gas 519 Hydro 792 14% Urquhart CC Beech Island, SC Gas 458 Nuclear 651 12% M
Slide 40: Contracted Assets generation portfolio
Contracted Assets Generation portfolio Summer Cap. Summer Cap. Summer Plant Location Type Plant Location Type Fuel Type (%) (MW) (MW) Cap. (MW) Millstone Waterford, CT Nuclear 2001 Hecate Cherrydale Cape Charles, VA Solar 20 Nuclear 2,001 67% Hardin I Hardin Co., OH Solar 150 ASFV – Sussex Drive Sto
Slide 41: Customers
Customers State-regulated utilities Segment summary as of 12/31/2022 State summary Three months ended DE Customers December 31 South Carolina 12/31/2022 (M) Gas Distribution ‘20-’22 CAGR 1.2M 3.0M 17% DE Virginia 1.1% 2.7 43% DE South Carolina 2.3% 1.2 Electric 1.5% 0.8 Gas 3.7% 0.4 7.0M state utili
Slide 42: Weather impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2022 YTD Dominion Energy Virginia2 $4 ($10) $10 ($1) $3 Versus normal¹ Dominion Energy South 4 5 (11) 5 4 Carolina3 Gas Distribution4 1 0 0 0 1 Total $9 ($4) ($0) $4 $8 Q1 Q2 Q3 Q4 2022 YTD Dominion Energy Virginia2 $14 ($7) ($6) $21 $21 Versus prior year¹
Slide 43: Weather degree days
Weather Degree days Quarter ended 12/31 Twelve months ended 12/31 2022 2021 2022 2021 Actual 1,346 1,036 3,555 3,210 Heating Normal 1,259 1,267 3,529 3,538 Dominion Energy Virginia Actual 30 87 1,765 1,783 Cooling Electric Normal 65 53 1,783 1,661 Actual 512 383 1,294 1,221 Heating Dominion Energy S
Slide 44: Fixed income: Credit ratings
Fixed income Credit ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ Senior Unsecured Debt Securities Baa2 BBB BBB+ Junior Subordinated Notes Baa3 BBB BBB Enhanced Junior Subordinated Notes Baa3 BBB- BBB- Preferred Stock Ba1 BBB- BBB- Short-Term/Commercial Paper P-2 A-
Slide 45: Fixed income: Credit ratings (cont'd)
Fixed income Credit ratings (cont’d) East Ohio Gas Co. Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Stable Negative DESC Moody’s S&P Fitch Corporate/Issuer Baa1 BBB+ A- First Mortgage Bonds A2 A A+ Short-Term/Commercial Paper P-2 A-2 F2 Outl
Slide 46: Fixed income: Schedule of long-term debt
Fixed income Schedule of long-term debt as of December 31, 2022 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 12/31/2022 Long-term at 12/31/2022 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2023-2052 3.99% $700 $14,435 DE Virginia VEPCO Tax-Exempt Finan
Slide 47: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of December 31, 2022 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2023 2.45% 2019 Series B Private Placement Senior Notes 01/15/23 DEI - - - - 1,000 1,000 2.75% 2013 Series C Senior Notes 03/15/23 VEPCO 70
Slide 48: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of December 31, 2022 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2025 3.30% 2020 Series A Senior Notes 03/15/25 DEI - - - - 400 400 3.10% 2015 Series A Senior Notes 05/15/25 VEPCO 350 - - - - 350 1.30% 20
Slide 49: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of December 31, 2022 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2027 3.60% 2020 Series B Senior Notes 03/15/27 DEI - - - - 350 350 3.50% 2017 Series A Senior Notes 03/15/27 VEPCO 750 - - - - 750 3.75% 20