D

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended March 31, 2026, for Dominion Energy, Inc. and its wholly-owned subsidiary, Virginia Electric and Power Company (Virginia Power). Dominion Energy operates primarily as a regulated utility in Virginia, North Carolina, and South Carolina, alongside nonregulated generation operations. The filing includes a restatement of prior period financials (Q1 2025) to correct income tax misstatements related to nuclear decommissioning trust investments.

Key Financial Metrics (Q1 2026)

Material Changes vs. Prior Period (Q1 2025)

• Revenue Growth: Consolidated operating revenue increased 23% to $5.019 billion, driven by higher fuel-related revenue ($558 million), non-fuel rider recoveries ($257 million), and the 2025 Biennial Review rate increase ($140 million). This was partially offset by severe weather impacts ($57 million) and market price decreases at Millstone ($65 million).
• Net Income Decline: Net income attributable to Dominion Energy decreased 7% to $621 million (from $665 million). The decline was primarily due to increased interest charges ($80 million), unrealized losses on economic hedging, and an impairment charge on nonregulated solar facilities ($78 million). These were partially offset by higher rider equity returns and a benefit from reduced unrecoverable costs on the CVOW Commercial Project.
• Virginia Power Performance: Virginia Power net income increased 28% to $623 million, driven by higher rider equity returns, the 2025 Biennial Review, and a significant reduction in charges for unrecoverable CVOW costs.
• Impairment Activity: Dominion Energy recorded a $78 million impairment charge for nonregulated solar facilities classified as held for sale. Conversely, it recognized a $117 million benefit related to the CVOW Commercial Project due to revised cost estimates.

Guidance, Outlook, and Risks

• CVOW Commercial Project: The estimated total project cost is approximately $11.4 billion. Management expects the majority of turbines to be in service by end of 2026. However, revised Section 232 tariffs enacted in April 2026 could increase project costs by $0.2 billion to $0.3 billion. A potential charge for these unrecoverable costs is expected in Q2 2026.
• Outlook: No material changes to the 2026 full-year outlook were announced. Dominion Energy anticipates issuing between $6.0 billion and $9.5 billion of long-term debt in 2026 to fund capital expenditures and refinance maturing debt.
• Regulatory Matters: Virginia Power filed a base rate case in North Carolina in April 2026. In Virginia, an appeal of the 2025 Biennial Review order is pending before the Supreme Court of Virginia.
• Environmental & Legal: The company faces potential costs related to EPA Effluent Limitations Guidelines and CCR regulations, though rate recovery mechanisms are expected to mitigate impacts. Dominion Energy expects to evaluate nonregulated renewable natural gas facilities for impairment in Q2 2026, with a potential pre-tax charge of up to $850 million.

Investor Verification Checklist

• CVOW Cost Recovery: Verify the impact of the April 2026 Section 232 tariff revisions on the $11.4 billion project cost and the timing of the expected Q2 2026 charge for unrecoverable costs.
• Impairment Risks: Monitor the Q2 2026 evaluation of nonregulated renewable natural gas facilities, which could result in an impairment charge of up to $850 million.
• Restatement Impact: Confirm that the Q1 2025 comparative figures have been adjusted for the income tax misstatement related to nuclear decommissioning trust investments.
• Debt Issuance: Track the execution of the anticipated $6.0 billion to $9.5 billion long-term debt issuance plan for 2026.
• Regulatory Appeals: Follow the status of the appeal regarding the Virginia 2025 Biennial Review order filed in March 2026.