Dominion Energy's Q1 2025: Key Contradictions Unveiled on Offshore Wind, Data Centers, and Tariff Impacts

Offshore wind project timeline and impact on costs, data center demand and customer interest, impact of tariffs on solar and storage spends, outlook for Millstone and data center colocation, and offshore wind turbine delivery schedules are the key contradictions discussed in Dominion Energy's latest 2025Q1 earnings call.



Financial Performance and Guidance:
- Dominion Energy reported first quarter operating earnings of $0.93 per share, which includes $0.03 of better-than-normal weather and $0.02 of better-than-expected sales.
- The company is affirming its 2025 operating earnings per share guidance of $3.28 to $3.52, with a midpoint of $3.40.
- The strong financial performance was driven by better-than-expected weather, sales, and regulatory rider investment growth.

Offshore Wind Project Progress:
- The Coastal Virginia Offshore Wind (CVOW) project is 55% complete and on schedule, with expected first delivery of electricity in early 2026.
- 100% of the project's 176 transition pieces have been rolled, and 86% have been steel welded.
- The progress is attributed to robust bipartisan support, consistent regulatory approvals, and successful component manufacturing.

Tariff Exposure and Mitigation:
- The CVOW project has incurred $4 million in actual tariff costs, with potential impacts reaching $500 million if current tariff policies continue.
- Despite these challenges, the project maintains a cost-sharing mechanism with a modest contingency of $222 million, representing 6% of remaining costs.
- The company is mitigating tariff impacts through diversified supply chains and proactive management strategies.

Data Center Demand and Growth:
- Dominion Energy has approximately 40 gigawatts of data center capacity in various stages of contracting, with 10 gigawatts already contracted under electric service agreements.
- The company continues to observe strong demand from data center customers, with no evidence of a slowdown.
- This demand is driven by the ongoing growth of cloud and inference services, and the company's experience in serving data center customers.