Dominion Energy, Inc. · NYSE:D
Dominion Energy — Corporate Update (November 2023)
25 slides from Dominion Energy's corporate update, Nov 3, 2023
Slide 1: Coastal Virginia Offshore Wind Project Update
Coastal Virginia Offshore Wind Project Update November 3, 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: Regulated offshore wind: Status update
Dominion Energy Virginia Regulated offshore wind: Status update Timeline ✓ Expected construction completion: End of 2026 (no change) ✓ September 29: Final Environmental Impact Statement issued Permitting ✓ October 30: Record of Decision signed (commencement of onshore construction) ✓ July 2023: 2022
Slide 4: Regulated offshore wind: Status update (continued)
Dominion Energy Virginia Regulated offshore wind: Status update (continued) ▪ LCOE (updated)¹: $77/MWh³ compared to previous range of $80 to $90/MWh ▪ Legislative prudency cap (no change): $125/MWh4 LCOE sensitivity table LCOE impact to $77/MWh Current assumption¹ (+/-) $100M of capital costs +/- $0
Slide 5: Status update (continued): Charybdis installation vessel
Dominion Energy Virginia Regulated offshore wind: Status update (continued) ▪ Completion status (updated): 77% compared to previous update of 74% ▪ Expected completion date (no change): Late 2024/early 2025 ▪ Later than planned; still supportive of CVOW schedule inclusive of any 3rd party charter ag
Slide 6: Regulated offshore wind construct substantially de-risks project
Regulated offshore wind Regulated construct substantially de-risks project Virginia’s differentiated approach and unique regulatory structure creates a best-in-class offshore wind risk profile ▪ Thoughtful approach taken by Virginia legislators and regulators to develop a framework for our regulated
Slide 7: First monopiles for CVOW arrive at Portsmouth Marine Terminal
Dominion Energy Virginia Regulated offshore wind: First monopiles for CVOW arrive at Portsmouth Marine Terminal “It was such an honor to celebrate the highly anticipated delivery of the first foundations for the Coastal Virginia Offshore Wind project. Our ‘All of the Above’ energy approach is increa
Slide 8: Continues to meet project milestones
Regulated offshore wind Continues to meet project milestones Attractive leasehold location ✓ Nov. 2013 ~113k-acre leasehold acquired via auction for $1.6M ▪ Minimal overlap with shipping ✓ Fall 2019 Filed 3 requests with PJM for onshore transmission ▪ No proximal OSW leaseholds ▪ Limited fishing ind
Slide 9: Continues to meet project milestones (continued)
Regulated offshore wind Continues to meet project milestones (continued) Last turbine installed / 100% First project COD turbine 20% installed complete 75% First monopile Last transition installed¹ and first piece installed cable laid ROD Last monopile 50% First 8 monopiles published installed¹ comp
Slide 10: Installed cost risk profile: Fixed costs
Regulated offshore wind Installed cost risk profile: Fixed costs¹ ▪ Expect to spend ~$3B by year-end 2023 % Fixed 0% 92% ▪ Remaining costs to be fixed include some onshore costs, certain commodities – consisting mainly of Fixed costs² the fuel for transportation and installation, and other project o
Slide 11: Substantial cash flow improvement once in service
Regulated offshore wind Substantial cash flow improvement once in service Summary and timeline of capital costs Illustrative project level cash flow improvement3 ($M) 1,500 Tax Depreciation ~$0.9B ~$0.1B ~$9.8B (~5-yr tax life) ~$2.6B 1,000 Return of investment >$1.2B FFO (~30-yr operating ~$3.2B as
Slide 12: OSW track record: Successful pilot project
Regulated offshore wind OSW track record: Successful pilot project Operational pilot project serves as proof of concept ▪ Two 6 MW SGRE Wind Turbines ▪ 27 miles off the coast of Virginia Project Beach description ▪ Power up to 3,000 homes ▪ Capital Cost: ~$0.3B (under budget) ▪ Completed October 202
Slide 13: Pilot project operations update
Regulated offshore wind Pilot project operations update Net capacity factor by month (2021 – 2023) 100% Project to date (3 year) net capacity factor of 46% with 97% availability factor 90% 2023 YTD¹ net capacity factor of 47% with 97% availability factor 80% 70% 60% 50% 46% 40% 30% 20% 10% 0% Jan Fe
Slide 14: Supplier overview
Regulated offshore wind Supplier overview Wind turbine Offshore Transport & Monopiles Transition pieces generators substations install Note: Illustration not to scale 14
Slide 15: Supplier overview: Wind turbine generators
Regulated offshore wind Supplier overview: Wind turbine generators Wind turbine Monopiles Transition Offshore Transport & Wind turbine generators update generators pieces substations install ▪ Fixed price contract ▪ Indexed components fixed (steel) ▪ Foreign currency exposure hedged ▪ Nacelle + blad
Slide 16: Supplier overview: Monopiles
Regulated offshore wind Supplier overview: Monopiles Wind turbine Monopiles Transition Offshore Transport & Monopiles update generators pieces substations install ▪ Foundation supply agreement ▪ Fixed price contract ▪ Indexed components fixed (steel) ▪ Foreign currency exposure hedged ▪ Fabrication
Slide 17: Supplier overview: Transition pieces
Regulated offshore wind Supplier overview: Transition pieces Wind turbine Monopiles Transition Offshore Transport & Transition pieces update generators pieces substations install ▪ Transition Piece (TP) Supply Agreement ▪ Fixed price contract ▪ Foreign currency exposure hedged ▪ Fabrication in progr
Slide 18: Supplier overview: Offshore substations
Regulated offshore wind Supplier overview: Offshore substations Wind turbine Monopiles Transition Offshore Transport & Offshore substations update generators pieces substations install ▪ Offshore Substation Agreement (OSS) ▪ Fixed price contract ▪ Foreign currency exposure hedged ▪ Fabrication in pr
Slide 19: Supplier overview: Transport & install
Regulated offshore wind Supplier overview: Transport & install Wind turbine Monopiles Transition Offshore Transport & Transport & install update generators pieces substations install ▪ Balance of Plant Contract (BOP) ▪ Fixed price contract ▪ Indexed components fixed (metals) ▪ Indexed components: ~$
Slide 20: Onshore transmission overview
Regulated offshore wind Onshore transmission overview Project scope ▪ Cable landing location to Harpers State Military switching station Reservation ▪ Transition from 9 to 27 cables underground route ▪ ~5 miles underground route ▪ 230kV gas insulated switchgear (GIS) New Harpers switching station ▪
Slide 21: Onshore transmission update
Regulated offshore wind Onshore transmission update Artist rendering of future substation Key onshore developments ▪ In progress – On time and on budget ▪ Underground cables procured ▪ Underground construction contracts awarded ▪ Substation site prep work awarded ▪ Major substation and switching sta
Slide 22: Charybdis: Dominion Energy's wind turbine installation vessel
Regulated offshore wind Charybdis: Dominion Energy’s wind turbine installation vessel Dominion Energy has invested in the first U.S. Jones Act compliant wind turbine installation vessel ▪ Provides a reliable, U.S. flagged installation solution with the capacity to handle the next generation of large
Slide 23: Approved settlement in Virginia for balanced and reasonable cost-sharing
Regulated offshore wind Approved settlement in Virginia for balanced and reasonable cost-sharing Cost-sharing thresholds Customers Shareholders Capital budget¹ of ~$9.8B 100% 0% $9.8B – $10.3B 100% 0% DEV, OAG, Walmart, Sierra Club, and Appalachian Voices filed a settlement $10.3B – $11.3B 50% 50% a
Slide 24: Pursuing noncontrolling equity financing partner per recent Virginia legislation
Regulated offshore wind Pursuing noncontrolling equity financing partner per recent Virginia legislation Creation of new subsidiary Ratemaking treatment ROE and cap structure “In connection with any project “Notwithstanding the provisions of the “In acting upon any such request for constructed by a
Slide 25: Virginia rider regulatory structure significantly benefits customers
Regulated offshore wind Virginia rider regulatory structure significantly benefits customers Illustrative rate case timeline September 1 September 1 Forward looking rate set for Revenue fluctuates with usage, any delta to Forward looking rate set for next rate year designed to required revenue is de