Resilience in Utility Infrastructure: Lessons from Recent Power Outages in West Ashley

In the summer of 2025, a seemingly routine Thursday night in West Ashley, Charleston, South Carolina, turned chaotic when a tree fell onto Dominion Energy's overhead power lines, plunging 1,641 customers into darkness. Traffic lights failed, intersections became gridlocked, and emergency services scrambled to assist. By 10 p.m., crews had restored power to nearly all affected residents, but the incident exposed a critical vulnerability: the fragility of aging utility infrastructure in climate-vulnerable regions.

This event is not an outlier. Climate change is accelerating the frequency and intensity of extreme weather events—from hurricanes to heatwaves—forcing utility companies to confront a reality: resilience is no longer optional. For investors, the question is no longer whether utilities will modernize their grids, but how quickly they can adapt—and which companies will emerge as leaders in this transition.

The Cost of Climate Vulnerability

The West Ashley outages highlight a systemic issue: overhead power lines remain susceptible to environmental disruptions. In 2025, Dominion Energy and Duke Energy—two major players in the Southeast—reported over 10,000 outages combined in their service areas, many caused by tree contact or flooding. These incidents translate to real costs: lost revenue, reputational damage, and rising maintenance expenses.

But the financial stakes are even higher. A 2025 study by the Lawrence Berkeley National Laboratory found that 30 U.S. utilities have filed climate resilience plans, with regulators in 14 states now mandating such strategies. For investors, this signals a shift from reactive to proactive infrastructure investment. Companies that fail to adapt risk underperforming their peers, while those that prioritize resilience stand to gain market share and regulatory favor.

Dominion Energy: A Case Study in Resilience and Earnings Growth

Dominion Energy, which serves over 7 million customers in climate-vulnerable regions like Virginia and South Carolina, has positioned itself as a leader in grid modernization. In 2024, the company reported operating earnings of $2.77 per share despite “worse-than-normal” weather in its service areas. For 2025, it narrowed its guidance to $3.28–$3.52 per share, a 22% increase from 2024, while reaffirming a 5–7% long-term growth target through 2029.

Dominion's resilience strategy includes investments in advanced grid technologies, such as self-healing systems and dynamic line ratings, which optimize conductor performance under extreme heat. The company also plans to spend $15 billion over five years on renewable energy projects, including offshore wind and solar, to diversify its energy mix and reduce reliance on fossil fuels.

Financially, Dominion Energy appears undervalued. Its forward P/E ratio of 17 is below the industry average of 18.52, and its PEG ratio of 1.25 suggests strong growth potential relative to earnings. Analysts project a 36% year-over-year increase in Q2 2025 earnings, driven by higher demand for clean energy and grid modernization.

Duke Energy: Scaling Resilience in the Carolinas

Duke Energy, which operates in North and South Carolina, has taken a more aggressive approach to climate resilience. In 2024, it invested $4 billion in system hardening and plans to spend $75 billion over the next decade. This includes elevating substations to avoid coastal flooding, replacing wood poles with composite materials, and deploying microgrids in high-risk areas.

Duke's Climate Adaptation Flexible Framework—built on hazard mapping, vulnerability assessments, and stakeholder collaboration—has already reduced outage restoration times by 30% in pilot regions. The company's 2025 shareholder meeting highlighted a 50% carbon emission reduction target by 2030, aligning with global decarbonization goals.

Duke Energy's larger scale gives it an edge in capital-intensive resilience projects. With a market cap of $93 billion and a 3.5% dividend yield, it offers a blend of growth and income. However, its higher P/E ratio (19.9) and projected 6.32% revenue growth may appeal to investors prioritizing stability over aggressive earnings expansion.

The Investment Playbook: Balancing Resilience and Returns

For investors, the key is to identify utilities that balance short-term profitability with long-term resilience. Dominion Energy's lower valuation and strong earnings growth make it a compelling play for risk-tolerant investors, while Duke Energy's diversified approach and regulatory tailwinds suit those prioritizing stability.

1. Dominion Energy (D): A “Buy” for its undervalued stock, aggressive earnings guidance, and commitment to renewable energy. Its $3.40 2025 EPS midpoint suggests upside potential, especially if it accelerates grid modernization in high-risk areas.
2. Duke Energy (DUK): A “Hold” for its robust resilience investments but higher valuation. Investors should monitor its 2030 decarbonization targets and regulatory approvals for large-scale projects.

The Bottom Line

The West Ashley outages are a microcosm of a broader challenge: as climate risks intensify, utilities must invest in resilience to protect both infrastructure and profit margins. For investors, the winners will be companies that innovate in grid hardening, renewable integration, and community engagement. Dominion and Duke Energy are both moving in the right direction—but their financial trajectories suggest different risk-reward profiles.

In the end, the lesson from West Ashley is clear: resilience isn't just about avoiding outages—it's about future-proofing a utility's bottom line.