WEBVTT 00:00:00.000 --> 00:00:03.040 Welcome back to the Deep Dive. Today we are taking 00:00:03.040 --> 00:00:06.519 on a true heavyweight of the American energy 00:00:06.519 --> 00:00:09.279 landscape. Our mission here is to really dig 00:00:09.279 --> 00:00:12.099 into the source material and we have a huge stack 00:00:12.099 --> 00:00:14.939 of research and reports to give you a complete 00:00:14.939 --> 00:00:17.519 kind of nuanced understanding of Dominion Energy. 00:00:17.719 --> 00:00:20.219 And it is a colossal firm. I mean, we're talking 00:00:20.219 --> 00:00:22.079 about an operational footprint that stretches 00:00:22.079 --> 00:00:24.679 from the mid -Atlantic states, you know, right 00:00:24.679 --> 00:00:27.300 across to the Rocky Mountains. And a history 00:00:27.300 --> 00:00:30.079 that spans all the way back to the colonial era, 00:00:30.120 --> 00:00:32.880 which is just wild to think about for a modern 00:00:32.880 --> 00:00:35.640 energy company. It's absolutely essential to 00:00:35.640 --> 00:00:38.740 grasp. that history and scale. Because, you know, 00:00:38.780 --> 00:00:41.119 Dominion is more than just another utility company. 00:00:41.420 --> 00:00:44.920 It's foundational infrastructure. It's headquartered 00:00:44.920 --> 00:00:47.140 in Richmond, Virginia. And it used to be called 00:00:47.140 --> 00:00:49.979 Dominion Resources up until, what, 2017 when 00:00:49.979 --> 00:00:51.880 they did a rebranding. Right. And when we start 00:00:51.880 --> 00:00:54.259 looking at their core services, it's not a simple 00:00:54.259 --> 00:00:56.600 picture. It's not uniform at all. They're fundamentally 00:00:56.600 --> 00:00:59.320 this dual fuel company. But their geographic 00:00:59.320 --> 00:01:01.640 presence for each of those fuels is completely 00:01:01.640 --> 00:01:04.909 different. That's precisely it. So they are the 00:01:04.909 --> 00:01:07.689 regulated electric utility for huge parts of 00:01:07.689 --> 00:01:09.310 Virginia, North Carolina and South Carolina. 00:01:09.390 --> 00:01:11.409 That's kind of their home turf for electricity. 00:01:11.609 --> 00:01:13.290 Yeah. But then you look at their natural gas 00:01:13.290 --> 00:01:16.250 distribution network and the map just explodes. 00:01:16.549 --> 00:01:19.769 I mean, their gas operations cover Utah, Idaho, 00:01:20.010 --> 00:01:23.430 Wyoming, West Virginia, Ohio, Pennsylvania, the 00:01:23.430 --> 00:01:27.269 Carolinas again and Georgia. It's this vast interconnected 00:01:27.269 --> 00:01:30.090 web that, you know, it makes them indispensable 00:01:30.090 --> 00:01:32.650 to millions of people. Okay, let's just jump 00:01:32.650 --> 00:01:34.450 right into that scale because the numbers here 00:01:34.450 --> 00:01:37.650 are frankly staggering and they immediately tell 00:01:37.650 --> 00:01:40.109 you why this company has the influence that it 00:01:40.109 --> 00:01:42.189 does. We're talking about Dominion serving more 00:01:42.189 --> 00:01:45.230 than 5 million retail energy customers. And that's 00:01:45.230 --> 00:01:47.170 across the Midwest, the Mid -Atlantic, the Northeast. 00:01:47.329 --> 00:01:49.379 It's a huge swath of the country. And if you 00:01:49.379 --> 00:01:50.900 want to put that reach into a financial context, 00:01:51.040 --> 00:01:53.599 I was looking at the 2019 snapshot. Their revenue 00:01:53.599 --> 00:01:57.900 clocked in at $16 .572 billion. Which is huge, 00:01:57.959 --> 00:01:59.280 but that's not even the most telling number. 00:01:59.340 --> 00:02:01.000 No. The really mind -blowing figure is their 00:02:01.000 --> 00:02:05.620 total assets. U .S., $103 .823 billion. $103 00:02:05.620 --> 00:02:08.599 billion in assets? I mean, what does a number 00:02:08.599 --> 00:02:11.080 like that even mean for us, the customer, or 00:02:11.080 --> 00:02:13.560 for, you know, the regulatory environment? Well, 00:02:13.580 --> 00:02:15.780 it means a couple of things. First and foremost, 00:02:15.900 --> 00:02:18.909 it means market stability. This massive asset 00:02:18.909 --> 00:02:20.729 base, we're talking power plants, pipelines, 00:02:20.990 --> 00:02:22.789 storage facility, the actual physical stuff. 00:02:23.389 --> 00:02:25.849 That's what underpins their entire status. Right. 00:02:26.150 --> 00:02:28.430 It's why they're a component of the S &P 500 00:02:28.430 --> 00:02:31.569 and maybe even more significantly, the Dow Jones 00:02:31.569 --> 00:02:34.250 Utility Average, the DJUA. So for anyone who 00:02:34.250 --> 00:02:36.810 might not be familiar with the DJUA, what does 00:02:36.810 --> 00:02:39.629 being included in that specific index signify? 00:02:39.650 --> 00:02:43.099 What's the signal there? The DJUA is basically 00:02:43.099 --> 00:02:46.199 the all -star team of the largest, most stable 00:02:46.199 --> 00:02:49.039 utility companies in the United States. So inclusion 00:02:49.039 --> 00:02:50.879 tells the investment world that this company 00:02:50.879 --> 00:02:53.699 is seen as a bedrock, something super stable. 00:02:53.819 --> 00:02:55.620 A safe bet, almost. Exactly. It's characterized 00:02:55.620 --> 00:02:57.780 by consistent regulated returns and much lower 00:02:57.780 --> 00:03:00.879 volatility compared to, say, a tech stock. I 00:03:00.879 --> 00:03:03.139 mean, when a company has over $100 billion in 00:03:03.139 --> 00:03:05.979 physical revenue -generating assets, it creates 00:03:05.979 --> 00:03:08.639 this kind of moat of stability that very few 00:03:08.639 --> 00:03:11.219 companies can even challenge. And it gives them 00:03:11.219 --> 00:03:14.479 the financial muscle to absorb huge shocks, right? 00:03:14.580 --> 00:03:16.539 Like we'll talk about this later, but they can 00:03:16.539 --> 00:03:19.099 handle the cancellation of a multibillion dollar 00:03:19.099 --> 00:03:21.900 infrastructure project and just keep going. Keep 00:03:21.900 --> 00:03:24.379 going without missing a beat. So, yeah, you really 00:03:24.379 --> 00:03:27.759 cannot discuss the modern U .S. grid or the natural 00:03:27.759 --> 00:03:30.259 gas infrastructure without talking about Dominion 00:03:30.259 --> 00:03:33.620 and that gargantuan asset base. That's the foundation 00:03:33.620 --> 00:03:36.280 for everything they do from their physical operations 00:03:36.280 --> 00:03:39.689 all the way to their very complex. political 00:03:39.689 --> 00:03:42.250 engagement. Which makes understanding that physical 00:03:42.250 --> 00:03:45.530 footprint even more critical. So let's move from 00:03:45.530 --> 00:03:47.169 the balance sheet to what's actually out there 00:03:47.169 --> 00:03:49.490 on the ground and on the wires. Okay. Section 00:03:49.490 --> 00:03:52.449 two of our deep dive is really dedicated to measuring 00:03:52.449 --> 00:03:55.129 this incredible physical infrastructure that 00:03:55.129 --> 00:03:57.810 Dominion Energy manages. When you talk about 00:03:57.810 --> 00:04:00.189 total generation capability, we're starting at 00:04:00.189 --> 00:04:04.740 27 ,000 megawatts of power. And that 27 ,000 00:04:04.740 --> 00:04:07.159 megawatt capacity is spread across a really diverse 00:04:07.159 --> 00:04:09.840 fleet. You've got nuclear, natural gas, coal, 00:04:10.099 --> 00:04:12.919 renewables, and it's all connected by a truly 00:04:12.919 --> 00:04:15.319 massive grid network. So if you want to visualize 00:04:15.319 --> 00:04:19.100 that scale, Dominion maintains 6 ,000 miles of 00:04:19.100 --> 00:04:21.399 high voltage electric transmission lines. Right, 00:04:21.459 --> 00:04:24.699 the big ones. But then you have the 54 ,000 miles 00:04:24.699 --> 00:04:26.899 of distribution lines. So what's the key distinction 00:04:26.899 --> 00:04:28.720 there for our listeners? That distinction is 00:04:28.720 --> 00:04:30.930 just... it's paramount to understanding how the 00:04:30.930 --> 00:04:33.970 grid actually works. Think of the 6 ,000 miles 00:04:33.970 --> 00:04:36.689 of transmission lines as the interstate highways 00:04:36.689 --> 00:04:38.750 for energy. Okay, that's a good analogy. These 00:04:38.750 --> 00:04:42.310 lines move bulk power at extremely high voltages 00:04:42.310 --> 00:04:45.649 over huge distances. They link the major power 00:04:45.649 --> 00:04:48.129 plants, your nuclear stations, your big wind 00:04:48.129 --> 00:04:51.029 farms, to the major substations that are near 00:04:51.029 --> 00:04:53.370 population centers. They are the backbone of 00:04:53.370 --> 00:04:55.730 the system. And the distribution lines, the other 00:04:55.730 --> 00:04:58.610 54 ,000 miles. Those are the local streets, the 00:04:58.610 --> 00:05:01.430 neighborhood roads. These lines take the power 00:05:01.430 --> 00:05:03.689 from those big substations, they step the voltage 00:05:03.689 --> 00:05:05.629 way down, and then they deliver it that last 00:05:05.629 --> 00:05:08.389 mile to your home, to your business, to the stoplight 00:05:08.389 --> 00:05:10.360 on the corner. So the fact that the distribution 00:05:10.360 --> 00:05:12.620 network is nine times longer than the transmission 00:05:12.620 --> 00:05:15.519 network. It tells you just how deeply integrated 00:05:15.519 --> 00:05:18.800 Dominion is into the daily life of every single 00:05:18.800 --> 00:05:21.370 customer they serve. It's everywhere. Now let's 00:05:21.370 --> 00:05:23.410 flip over to the gas side, which, as we mentioned, 00:05:23.509 --> 00:05:25.870 covers a much, much wider geography. Yeah, their 00:05:25.870 --> 00:05:28.129 natural gas infrastructure is just as extensive. 00:05:28.189 --> 00:05:31.410 It includes 14 ,000 miles of transmission, gathering, 00:05:31.569 --> 00:05:33.589 and storage pipelines. I mean, that's enough 00:05:33.589 --> 00:05:36.509 to wrap around half the globe. Wow. And to secure 00:05:36.509 --> 00:05:38.689 that network, they also own a significant amount 00:05:38.689 --> 00:05:41.769 of the actual reserves underground, 1 .2 trillion 00:05:41.769 --> 00:05:44.149 cubic feet equivalent of natural gas and oil 00:05:44.149 --> 00:05:47.550 reserves. That scale ensures they are a foundational 00:05:47.550 --> 00:05:50.470 pillar in energy delivery across a whole bunch 00:05:50.470 --> 00:05:52.230 of states, particularly the ones that really 00:05:52.230 --> 00:05:54.750 depend on natural gas for heating and for industry. 00:05:55.240 --> 00:05:58.079 This brings us to a couple of nationally strategic 00:05:58.079 --> 00:06:01.300 assets. These are often flashpoints for controversy, 00:06:01.560 --> 00:06:03.920 but they are absolute game changers for regional 00:06:03.920 --> 00:06:06.939 energy security. First, Dominion operates the 00:06:06.939 --> 00:06:09.279 nation's largest natural gas storage facility. 00:06:09.519 --> 00:06:12.439 What defines largest in this context? It's about 00:06:12.439 --> 00:06:15.120 sheer capacity and operational flexibility. That 00:06:15.120 --> 00:06:18.560 one facility holds more than 975 billion cubic 00:06:18.560 --> 00:06:21.319 feet of storage capacity. So almost a trillion 00:06:21.319 --> 00:06:23.899 cubic feet of natural gas. Almost a trillion. 00:06:24.319 --> 00:06:27.600 And this gas is just held ready, waiting to be 00:06:27.600 --> 00:06:30.399 deployed into the network instantly. Why is having 00:06:30.399 --> 00:06:32.800 that much storage so critical? What does it let 00:06:32.800 --> 00:06:35.759 them do? It's all about reliability and price 00:06:35.759 --> 00:06:39.079 management. This massive capacity allows Dominion 00:06:39.079 --> 00:06:41.939 and its partners to manage the big seasonal swings 00:06:41.939 --> 00:06:45.519 in demand. especially during extreme cold snows 00:06:45.519 --> 00:06:48.000 like a polar vortex, which can really strain 00:06:48.000 --> 00:06:49.959 supply chains. Right, when everyone cranks up 00:06:49.959 --> 00:06:52.899 the heat at once. Exactly. It provides this crucial 00:06:52.899 --> 00:06:55.240 buffer, making sure they can stabilize prices 00:06:55.240 --> 00:06:57.480 and maintain the flow of gas across their vast 00:06:57.480 --> 00:07:00.240 distribution network. It prevents major system 00:07:00.240 --> 00:07:03.339 failures during those peak demand moments. This 00:07:03.339 --> 00:07:06.379 capability is a core element of national energy 00:07:06.379 --> 00:07:08.480 reliability for that whole mid -Atlantic region. 00:07:08.699 --> 00:07:12.019 Okay. And the second major strategic asset, Cove 00:07:12.019 --> 00:07:15.500 Point. The Liquefied Natural Gas, or LNG, a terminal 00:07:15.500 --> 00:07:17.920 on the Chesapeake Bay. This is cited as one of 00:07:17.920 --> 00:07:20.339 the nation's largest and busiest facilities of 00:07:20.339 --> 00:07:22.819 its kind. Yeah, and Copoint has this fascinating 00:07:22.819 --> 00:07:25.939 and kind of evolving history that really reflects 00:07:25.939 --> 00:07:28.980 the radical shifts in U .S. energy policy over 00:07:28.980 --> 00:07:31.279 the last couple of decades. It was originally 00:07:31.279 --> 00:07:33.379 built as an import terminal. To bring foreign 00:07:33.379 --> 00:07:35.579 gas in. Right, to bring it into the U .S. back 00:07:35.579 --> 00:07:37.839 when our domestic supply was tight. But because 00:07:37.839 --> 00:07:40.420 of the American shale gas revolution, its role 00:07:40.420 --> 00:07:42.629 has completely flipped on its head. So now it's 00:07:42.629 --> 00:07:45.029 an export terminal. Heavily utilized for export. 00:07:45.449 --> 00:07:47.949 While it still handles some imports, its primary 00:07:47.949 --> 00:07:50.350 job now is to take domestically produced natural 00:07:50.350 --> 00:07:53.610 gas, chill it down into a liquid form, and then 00:07:53.610 --> 00:07:56.329 load it onto these massive tankers for transport 00:07:56.329 --> 00:07:58.850 to international markets. So its very presence 00:07:58.850 --> 00:08:02.050 immediately links the local utility supply in 00:08:02.050 --> 00:08:05.149 Virginia or Maryland directly to global LNG prices 00:08:05.149 --> 00:08:07.949 and demands. Precisely. It turns Dominion into 00:08:07.949 --> 00:08:10.389 a key gateway for global energy supply dynamics 00:08:10.389 --> 00:08:13.170 right into the U .S. Northeast and Mid -Atlantic 00:08:13.170 --> 00:08:15.300 markets. It just demonstrates. their role not 00:08:15.300 --> 00:08:18.199 just as a regional utility, but as an essential 00:08:18.199 --> 00:08:21.560 facilitator of global energy trade. Okay, let's 00:08:21.560 --> 00:08:24.220 move to their corporate structure. Dominion has 00:08:24.220 --> 00:08:26.720 four main operating segments that really define 00:08:26.720 --> 00:08:29.240 how they approach their business. And looking 00:08:29.240 --> 00:08:31.620 at these gives us some insight into their profit 00:08:31.620 --> 00:08:36.299 streams and their risk exposure. Let's start 00:08:36.299 --> 00:08:39.120 with the biggest one, Dominion Generation. This 00:08:39.120 --> 00:08:41.200 is the engine room. It's the massive core of 00:08:41.200 --> 00:08:44.960 the corporation. Dominion Generation, it generates 00:08:44.960 --> 00:08:48.019 the electricity for two primary uses. The first 00:08:48.019 --> 00:08:50.320 is for regulated sales in their core states, 00:08:50.500 --> 00:08:52.519 you know, Virginia and North Carolina, where 00:08:52.519 --> 00:08:54.120 the rates are set by state commissions. Okay, 00:08:54.179 --> 00:08:56.240 the predictable part. The predictable part. The 00:08:56.240 --> 00:08:58.259 second is for wholesale markets, where they sell 00:08:58.259 --> 00:09:00.620 power into the competitive markets all across 00:09:00.620 --> 00:09:03.200 the Northeast and Midwest. So this segment is 00:09:03.200 --> 00:09:05.730 characterized by... huge capital expenditures, 00:09:05.950 --> 00:09:08.169 but it also provides the bulk of the power that 00:09:08.169 --> 00:09:10.110 runs the whole system. Then you have the direct 00:09:10.110 --> 00:09:13.429 regulated utility arms, Dominion Virginia and 00:09:13.429 --> 00:09:15.990 North Carolina Power. And this is your classic 00:09:15.990 --> 00:09:17.909 utility segment. It manages the transmission 00:09:17.909 --> 00:09:20.730 and distribution, those 6 ,000 miles of interstates 00:09:20.730 --> 00:09:23.230 and 54 ,000 miles of local roads we talked about, 00:09:23.330 --> 00:09:25.730 delivering electricity to customers. And the 00:09:25.730 --> 00:09:29.529 crucial word here is regulated. Absolutely. Their 00:09:29.529 --> 00:09:31.490 profits in this segment are highly dependent 00:09:31.490 --> 00:09:34.289 on the outcomes of regulatory hearings with state 00:09:34.289 --> 00:09:36.590 commissions. It's all about approved rates and 00:09:36.590 --> 00:09:38.370 how much they're allowed to spend on infrastructure. 00:09:38.730 --> 00:09:42.269 It's stable, low -risk revenue, completely unlike 00:09:42.269 --> 00:09:44.250 the potentially volatile wholesale generation 00:09:44.250 --> 00:09:46.970 market. The third segment is just branded Dominion 00:09:46.970 --> 00:09:49.509 Energy, but this one seems to cover a broader 00:09:49.509 --> 00:09:52.950 set of gas and specialized services, and it includes 00:09:52.950 --> 00:09:56.330 a kind of surprising detail. A solar funding 00:09:56.330 --> 00:09:58.549 entity? Yeah, this is where you really see that 00:09:58.549 --> 00:10:00.950 dual fuel strategy codified. It covers the natural 00:10:00.950 --> 00:10:03.570 gas distribution, transmission, storage, all 00:10:03.570 --> 00:10:05.970 across their multi -state footprint. But what's 00:10:05.970 --> 00:10:07.710 really interesting, like you said, is the inclusion 00:10:07.710 --> 00:10:10.610 of the solar funding entity. It's called Tredegar 00:10:10.610 --> 00:10:13.850 Solar Fund I, LLC, and it's parked right in this 00:10:13.850 --> 00:10:16.529 segment. Why would they put the solar funding 00:10:16.529 --> 00:10:19.309 entity here and not with the main electric generation 00:10:19.309 --> 00:10:21.990 unit? Is it some kind of a hedge? It feels like 00:10:21.990 --> 00:10:24.740 strategic diversification. and maybe insulation. 00:10:25.120 --> 00:10:28.779 By placing the solar fund in this broader Dominion 00:10:28.779 --> 00:10:31.000 Energy segment, which often handles more of the 00:10:31.000 --> 00:10:33.480 market -based activities, it lets them treat 00:10:33.480 --> 00:10:35.639 those solar investments potentially differently 00:10:35.639 --> 00:10:38.200 than their regulated electric utility investments. 00:10:38.580 --> 00:10:40.700 So it gives them flexibility. A lot of flexibility. 00:10:40.899 --> 00:10:43.220 It might let them pursue solar projects that 00:10:43.220 --> 00:10:45.340 wouldn't immediately fit into the tight regulated 00:10:45.340 --> 00:10:49.299 return structures of, say, Virginia Power. So 00:10:49.299 --> 00:10:52.059 it acts as a strategic carve -out for financing 00:10:52.059 --> 00:10:55.700 new renewable initiatives outside of that traditional 00:10:55.700 --> 00:10:58.590 utility framework. And finally, we have the historical 00:10:58.590 --> 00:11:01.269 segment, Dominion Exploration and Production. 00:11:01.629 --> 00:11:03.529 Yeah, and this one serves as a really critical 00:11:03.529 --> 00:11:06.129 marker of their corporate evolution. They used 00:11:06.129 --> 00:11:08.190 to have a massive presence here. They were one 00:11:08.190 --> 00:11:10.470 of the largest independent gas and oil operators 00:11:10.470 --> 00:11:12.649 in the country. But the key takeaway is that 00:11:12.649 --> 00:11:14.610 the majority of this oil and gas exploration 00:11:14.610 --> 00:11:18.009 subsidiary was strategically sold off by 2007. 00:11:18.370 --> 00:11:20.509 That couldn't have been a small or easy decision. 00:11:20.850 --> 00:11:23.659 Oh, it was a defining moment. A clear choice 00:11:23.659 --> 00:11:26.379 where the company decided to shift focus completely 00:11:26.379 --> 00:11:29.700 away from the high -risk, volatile business of 00:11:29.700 --> 00:11:32.480 exploration. You know, finding and drilling for 00:11:32.480 --> 00:11:34.879 oil and gas. And they moved toward what? Toward 00:11:34.879 --> 00:11:38.559 the regulated, infrastructure -heavy, lower -risk 00:11:38.559 --> 00:11:42.620 businesses. Generation, transmission, storage, 00:11:42.659 --> 00:11:45.860 and retail delivery. This repositioning fundamentally 00:11:45.860 --> 00:11:48.519 changed the company's risk profile and its whole 00:11:48.519 --> 00:11:50.919 identity, creating the regulated behemoth we 00:11:50.919 --> 00:11:53.860 know today. That shift brings us perfectly into 00:11:53.860 --> 00:11:55.779 the history, because to really understand this 00:11:55.779 --> 00:11:58.960 modern multibillion dollar entity, you have to 00:11:58.960 --> 00:12:01.279 appreciate just how deep its corporate roots 00:12:01.279 --> 00:12:03.580 run. I mean, this company's history doesn't just 00:12:03.580 --> 00:12:05.639 span a few decades. We are talking about a timeline 00:12:05.639 --> 00:12:07.820 that goes back way before the American Civil 00:12:07.820 --> 00:12:10.240 War. It's a remarkable timeline. It starts in 00:12:10.240 --> 00:12:12.480 the colonial era. The corporate genesis, you 00:12:12.480 --> 00:12:16.000 could say, is in 1787. The Virginia General Assembly 00:12:16.000 --> 00:12:18.120 created something called the Appomattox Trustees, 00:12:18.440 --> 00:12:20.740 and their first job wasn't energy at all. It 00:12:20.740 --> 00:12:23.029 was commerce. They are supposed to promote navigation 00:12:23.029 --> 00:12:25.370 along the Appomattox River. Managing early trade 00:12:25.370 --> 00:12:28.370 routes, basically. Exactly. And, you know, commerce 00:12:28.370 --> 00:12:31.389 quickly leads to industrialization. So in 1795, 00:12:31.669 --> 00:12:34.370 these trustees formed the Upper Appomattox Company. 00:12:34.610 --> 00:12:36.529 And here the purpose starts to shift a little 00:12:36.529 --> 00:12:39.210 bit. They're building dams along the river, not 00:12:39.210 --> 00:12:41.529 just for navigation, but to harness power for 00:12:41.529 --> 00:12:44.149 industrial use, mainly mills. Our sources mark 00:12:44.149 --> 00:12:47.830 1795 as the actual operational beginning of the 00:12:47.830 --> 00:12:50.179 company's history. So those water rights, those 00:12:50.179 --> 00:12:52.500 early dams, they passed through various hands 00:12:52.500 --> 00:12:55.320 until 1901 and they land with the Virginia Passenger 00:12:55.320 --> 00:12:57.960 and Power Company. Right. But the true inflection 00:12:57.960 --> 00:13:01.039 point, the shift to modern power, came in 1909. 00:13:01.460 --> 00:13:04.259 A guy named Frank J. Gould founded the Virginia 00:13:04.259 --> 00:13:06.679 Railway and Power Company and he promptly bought 00:13:06.679 --> 00:13:08.659 the Virginia Passenger and Power Company. And 00:13:08.659 --> 00:13:11.220 that acquisition, that was the signal. That was 00:13:11.220 --> 00:13:13.840 the death knell of the old water power era and 00:13:13.840 --> 00:13:16.200 the full pivot toward electric utilities and, 00:13:16.279 --> 00:13:18.799 for a time, streetcar operations. Which sets 00:13:18.799 --> 00:13:21.399 the stage for what our sources call the VEPCO 00:13:21.399 --> 00:13:24.940 era. This is a defining period from 1925 to 1983. 00:13:25.840 --> 00:13:28.080 VEPCO, the Virginia Electric and Power Company, 00:13:28.179 --> 00:13:31.019 was established in 1925. And for decades, it 00:13:31.019 --> 00:13:33.779 operated as a classic regulated monopoly. And 00:13:33.779 --> 00:13:36.779 as VEPCO, the company really established its 00:13:36.779 --> 00:13:39.820 territorial dominance. There was a major consolidation 00:13:39.820 --> 00:13:43.299 in 1940 when VEPCO doubled its service territory 00:13:43.299 --> 00:13:45.379 by merging with the Virginia Public Service Company. 00:13:45.559 --> 00:13:48.590 This created a regional giant. And then a critical 00:13:48.590 --> 00:13:51.549 moment in 1944, they divested all their transit 00:13:51.549 --> 00:13:54.129 operations. A huge moment. They completely shed 00:13:54.129 --> 00:13:56.590 the responsibility of running buses and streetcars 00:13:56.590 --> 00:13:59.470 to focus purely on power generation and delivery. 00:14:00.269 --> 00:14:02.230 That's the moment that cemented their identity 00:14:02.230 --> 00:14:05.470 as a pure utility provider. So this regulatory 00:14:05.470 --> 00:14:07.789 environment, this regulated monopoly, it gave 00:14:07.789 --> 00:14:10.710 VEPCO immense power, but it also kind of restricted 00:14:10.710 --> 00:14:13.629 its growth potential, right? By the late 70s, 00:14:13.629 --> 00:14:15.289 the company was starting to look for ways to 00:14:15.289 --> 00:14:17.490 expand beyond the tight regulatory oversight 00:14:17.490 --> 00:14:19.889 of the state corporation commission in Virginia. 00:14:20.129 --> 00:14:22.289 Yeah, that pressure led to a major branding and 00:14:22.289 --> 00:14:25.470 structural change. By 1980, VEPCO started branding 00:14:25.470 --> 00:14:28.110 itself as Virginia Power and North Carolina Power 00:14:28.110 --> 00:14:30.620 for its operations in the... those states. And 00:14:30.620 --> 00:14:33.360 this internal rebranding was really the precursor 00:14:33.360 --> 00:14:35.980 to the massive corporate shift, the reorganization 00:14:35.980 --> 00:14:38.600 in 1983 into the holding company, Dominion Resources. 00:14:38.980 --> 00:14:42.460 OK, so why was that shift to a holding company 00:14:42.460 --> 00:14:45.100 so crucial? A holding company's structure is 00:14:45.100 --> 00:14:48.120 a complete game changer. It allows a parent company 00:14:48.120 --> 00:14:51.519 to own multiple diverse subsidiaries. Some can 00:14:51.519 --> 00:14:54.059 be regulated, like Virginia Power, and others 00:14:54.059 --> 00:14:56.440 can be totally non -regulated, like energy trading 00:14:56.440 --> 00:14:59.480 or exploration. So it allowed Dominion to diversify 00:14:59.480 --> 00:15:02.200 its revenue streams. Exactly. Mitigate regulatory 00:15:02.200 --> 00:15:05.100 risk across different states and pursue growth 00:15:05.100 --> 00:15:07.559 opportunities that were just impossible under 00:15:07.559 --> 00:15:10.000 the constraints of the old single -state regulated 00:15:10.000 --> 00:15:14.059 VEPCO model. And that diversification, that fueled 00:15:14.059 --> 00:15:16.360 their strategic growth through the 80s and 90s. 00:15:16.440 --> 00:15:19.539 They expanded into both regulated and non -regulated 00:15:19.539 --> 00:15:22.580 energy, domestically and internationally. And 00:15:22.580 --> 00:15:24.379 our sources really emphasize that during this 00:15:24.379 --> 00:15:27.080 time, they established themselves as a world 00:15:27.080 --> 00:15:29.559 -class operator of nuclear power stations. Yeah, 00:15:29.600 --> 00:15:32.100 that reputation for operational excellence, especially 00:15:32.100 --> 00:15:34.600 in something as complex as nuclear, it gave them 00:15:34.600 --> 00:15:37.059 huge credibility and leverage for further expansion. 00:15:37.440 --> 00:15:40.120 Particularly in the gas market, the early 2000s 00:15:40.120 --> 00:15:43.200 saw two enormous... gas acquisitions that completely 00:15:43.200 --> 00:15:45.240 redefined their portfolio. The first one was 00:15:45.240 --> 00:15:47.960 in 2000, the purchase of Consolidated Natural 00:15:47.960 --> 00:15:50.899 Gas Company, or CNG, out of Pittsburgh. This 00:15:50.899 --> 00:15:53.559 was monumental. It brought in massive new natural 00:15:53.559 --> 00:15:55.559 gas service territories reaching these energy 00:15:55.559 --> 00:15:57.500 intensive markets in the Northeast. And they 00:15:57.500 --> 00:16:00.240 quickly followed that up in 2001 by buying Louis 00:16:00.240 --> 00:16:03.240 Dreyfus Natural Gas Company, which further boosted 00:16:03.240 --> 00:16:05.320 their gas delivery network and added reserves. 00:16:05.720 --> 00:16:07.740 So within just two years, Dominion transformed 00:16:07.740 --> 00:16:10.740 from being a primarily East Coast electric utility 00:16:10.740 --> 00:16:14.779 to a major national dual fuel provider of both 00:16:14.779 --> 00:16:17.419 electricity and natural gas. The strategy seemed 00:16:17.419 --> 00:16:20.419 clear on everything from the wellhead to the 00:16:20.419 --> 00:16:22.919 light switch. Yeah. But that model changed really 00:16:22.919 --> 00:16:26.200 rapidly with the 2007 refocus. After rebranding 00:16:26.200 --> 00:16:29.080 everything simply as Dominion in 2000, they made 00:16:29.080 --> 00:16:30.919 this definitive choice to get out of most of 00:16:30.919 --> 00:16:33.399 the Houston -based natural gas and oil exploration 00:16:33.399 --> 00:16:35.919 and production business. This decision, it really 00:16:35.919 --> 00:16:38.179 does require a deeper look because it seems to 00:16:38.179 --> 00:16:40.600 reveal the modern Dominion identity. I think 00:16:40.600 --> 00:16:43.500 so. Yeah. They chose to shed the high risk and 00:16:43.500 --> 00:16:45.779 the massive capital expenditure that comes with 00:16:45.779 --> 00:16:47.860 exploration and production. You know, the business 00:16:47.860 --> 00:16:50.860 of finding and drilling for fuel. And instead... 00:16:51.049 --> 00:16:54.769 They decided to focus on the regulated infrastructure 00:16:54.769 --> 00:16:57.870 heavy delivery side of things. Generation, transmission, 00:16:58.169 --> 00:17:00.990 storage, retail sales. All the places where returns 00:17:00.990 --> 00:17:03.889 are predictable and essentially guaranteed by 00:17:03.889 --> 00:17:06.509 regulators. So what was the scale of that strategic 00:17:06.509 --> 00:17:08.490 divestiture? We're not talking about a small 00:17:08.490 --> 00:17:11.670 sale here. Not at all. It was a massive, complex 00:17:11.670 --> 00:17:14.529 sale that generated nearly $13 billion in pre 00:17:14.529 --> 00:17:17.250 -tax proceeds. The sheer magnitude is impressive. 00:17:17.609 --> 00:17:20.309 Our sources detailed that the reserves were sold 00:17:20.309 --> 00:17:23.049 in these separate, complex deals to four different 00:17:23.049 --> 00:17:25.630 types of entities. Onshore U .S. reserves went 00:17:25.630 --> 00:17:28.730 to Lowe's Corporation and XTO Energy. Their Gulf 00:17:28.730 --> 00:17:30.970 of Mexico reserves went to the Italian multinational 00:17:30.970 --> 00:17:33.670 energy company, ENI. And their Canadian reserves 00:17:33.670 --> 00:17:36.819 were sold to two Canadian trusts. That transaction 00:17:36.819 --> 00:17:38.640 wasn't just a business sale. It was a wholesale 00:17:38.640 --> 00:17:41.099 repositioning of their risk management strategy 00:17:41.099 --> 00:17:44.519 on a global scale. And this restructuring, it 00:17:44.519 --> 00:17:46.660 really established the template for their future. 00:17:47.019 --> 00:17:50.259 Just constant strategic calibration through major 00:17:50.259 --> 00:17:52.920 mergers and divestitures. It's continued right 00:17:52.920 --> 00:17:55.940 up to the present day. Absolutely. In 2016, they 00:17:55.940 --> 00:17:58.480 acquired Questar Corporation, giving them a big 00:17:58.480 --> 00:18:00.380 presence in the western U .S., including parts 00:18:00.380 --> 00:18:03.759 of Utah and Wyoming. Then in 2019, they completed 00:18:03.759 --> 00:18:06.519 the acquisition of Scana Corporation, bolstering 00:18:06.519 --> 00:18:08.900 their presence in the Carolinas. But the truly 00:18:08.900 --> 00:18:11.220 fascinating part is the speed of the divestiture 00:18:11.220 --> 00:18:13.420 game that followed. It's this pattern of buy 00:18:13.420 --> 00:18:20.819 and then sell. This is coarse. And announces 00:18:20.819 --> 00:18:23.380 plans to sell a massive portfolio of its natural 00:18:23.380 --> 00:18:25.839 gas transmission and storage assets. To Berkshire 00:18:25.839 --> 00:18:28.119 Hathaway, of all companies, for an estimated 00:18:28.119 --> 00:18:30.940 $10 billion. Wow. So that was the first major 00:18:30.940 --> 00:18:33.160 step in shedding that gas identity they had just 00:18:33.160 --> 00:18:35.480 spent two decades building up. Exactly. And the 00:18:35.480 --> 00:18:38.180 trend just kept going. In early 2022, they sold 00:18:38.180 --> 00:18:40.079 Dominion Energy West Virginia to Hearthstone 00:18:40.079 --> 00:18:43.960 Utilities for $690 million. It now operates as 00:18:43.960 --> 00:18:46.789 Hope Gas. And this all culminated in the most 00:18:46.789 --> 00:18:50.450 dramatic recent shift, the September 2023 agreement 00:18:50.450 --> 00:18:53.410 with Enbridge. This deal was massive. It signaled 00:18:53.410 --> 00:18:55.630 a near complete exit from being a major national 00:18:55.630 --> 00:18:58.609 gas utility. Enbridge agreed to acquire three 00:18:58.609 --> 00:19:01.829 of Dominion's core gas entities, East Ohio Gas, 00:19:02.089 --> 00:19:04.650 Questar Gas, which Dominion had just bought in 00:19:04.650 --> 00:19:07.450 2016, and Public Service Company of North Carolina, 00:19:07.670 --> 00:19:10.549 for a total enterprise value of $14 billion. 00:19:11.470 --> 00:19:14.210 So when you chart that timeline, acquiring major 00:19:14.210 --> 00:19:16.869 gas assets in the early 2000s, consolidating 00:19:16.869 --> 00:19:18.910 them and then systematically selling off most 00:19:18.910 --> 00:19:22.150 of that portfolio between 2020 and 2023 for billions 00:19:22.150 --> 00:19:24.569 of dollars. It demonstrates a very focused, very 00:19:24.569 --> 00:19:27.230 strategic intention to de -risk and lean heavily 00:19:27.230 --> 00:19:29.529 back toward their core regulated electric utility 00:19:29.529 --> 00:19:31.769 business in the East. It's a full circle journey. 00:19:32.299 --> 00:19:34.680 That history of constant strategic shifts inevitably 00:19:34.680 --> 00:19:37.079 leads us to the present challenge. How does a 00:19:37.079 --> 00:19:39.539 company built on coal, nuclear, and gas pivot 00:19:39.539 --> 00:19:42.299 toward a mandated renewable future? Let's look 00:19:42.299 --> 00:19:45.019 at their current energy mix using 2022 data to 00:19:45.019 --> 00:19:46.720 see the scale of the transition they have to 00:19:46.720 --> 00:19:48.839 make. Yeah, the breakdown shows you exactly how 00:19:48.839 --> 00:19:51.619 much work lies ahead. The largest source of generation, 00:19:51.920 --> 00:19:55.599 by far, is natural gas. It accounts for a dominant 00:19:55.599 --> 00:19:59.579 48%. Nuclear power is the second largest at 23%. 00:19:59.579 --> 00:20:02.259 And then legacy coal, it still represents a significant 00:20:02.259 --> 00:20:05.539 chunk, 18 % of total production. So if you combine 00:20:05.539 --> 00:20:07.740 those three traditional sources, gas, nuclear 00:20:07.740 --> 00:20:10.779 and coal, you get over 89 % of Dominion's generation 00:20:10.779 --> 00:20:14.500 capacity in 2022, all reliant on sources that 00:20:14.500 --> 00:20:16.920 either produce carbon emissions or, you know, 00:20:16.940 --> 00:20:20.180 generate complex long -term waste products. Right, 00:20:20.299 --> 00:20:22.539 which leaves hydroelectricity and other renewables 00:20:22.539 --> 00:20:26.380 together totaling just 11%. That 11 % is the 00:20:26.380 --> 00:20:29.420 current reality, but their stated strategy suggests 00:20:29.420 --> 00:20:32.220 a pretty significant, if challenging, future 00:20:32.220 --> 00:20:34.819 shift. That's right. Our sources note the company 00:20:34.819 --> 00:20:36.859 is actively developing a pretty robust strategy 00:20:36.859 --> 00:20:39.099 that's focused on renewable energy, primarily 00:20:39.099 --> 00:20:41.940 wind and biomass, alongside these comprehensive 00:20:41.940 --> 00:20:44.500 conservation and efficiency programs. The intent 00:20:44.500 --> 00:20:46.819 is clear. They want to minimize the company's 00:20:46.819 --> 00:20:48.980 environmental footprint and meet future energy 00:20:48.980 --> 00:20:51.319 demand. But the physical infrastructure transition, 00:20:51.559 --> 00:20:54.900 that takes time and immense capital. This strategic 00:20:54.900 --> 00:20:57.680 shift, it really gained legislative force in 00:20:57.680 --> 00:21:00.319 2018 with the launch of the grid transformation 00:21:00.319 --> 00:21:03.299 program. This is authorized under Virginia state 00:21:03.299 --> 00:21:05.980 law, the Grid Transformation and Security Act 00:21:05.980 --> 00:21:08.740 signed by Governor Ralph Northam. And this legislation 00:21:08.740 --> 00:21:12.700 wasn't just symbolic. It authorized massive expanded 00:21:12.700 --> 00:21:14.980 investments that were necessary to modernize 00:21:14.980 --> 00:21:17.980 the entire electric grid. The act paved the way 00:21:17.980 --> 00:21:21.000 for huge spending on smart grid technology, on 00:21:21.000 --> 00:21:23.480 enhancing grid security, and most importantly 00:21:23.480 --> 00:21:25.900 for the renewable mandate. It set an ambitious 00:21:25.900 --> 00:21:28.779 goal. Which was? Building 3 ,000 megawatts worth 00:21:28.779 --> 00:21:31.220 of new solar and wind energy by the year 2022. 00:21:31.680 --> 00:21:35.019 It committed to Minion. via a state mandate to 00:21:35.019 --> 00:21:37.539 aggressively pursuing modernization and expanded 00:21:37.539 --> 00:21:39.759 renewables capacity. However, infrastructure 00:21:39.759 --> 00:21:41.720 development is always fraught with political 00:21:41.720 --> 00:21:44.299 and financial risk, and we have a very high -profile 00:21:44.299 --> 00:21:46.859 example of a failure in their expansion strategy 00:21:46.859 --> 00:21:49.519 in the Atlantic Coast Pipeline. Oh, the ACP. 00:21:49.680 --> 00:21:52.980 It was intended to be a flagship project, a planned 00:21:52.980 --> 00:21:56.240 600 -mile natural gas pipeline, a joint venture 00:21:56.240 --> 00:21:59.140 with Duke Energy. It was designed to transport 00:21:59.140 --> 00:22:01.880 critical natural gas supplies from West Virginia 00:22:01.880 --> 00:22:04.720 South to population centers in Virginia and North 00:22:04.720 --> 00:22:07.519 Carolina. The industry saw it as crucial for 00:22:07.519 --> 00:22:10.099 regional energy transport. They broke ground 00:22:10.099 --> 00:22:13.180 in May 2018. But the moment construction began, 00:22:13.500 --> 00:22:16.759 it faced this intense... sustained opposition 00:22:16.759 --> 00:22:19.000 from a coalition of environmental and community 00:22:19.000 --> 00:22:21.519 heritage groups. They were arguing about the 00:22:21.519 --> 00:22:23.700 round's impact, about property rights, environmental 00:22:23.700 --> 00:22:25.980 damage, you name it. And that opposition proved 00:22:25.980 --> 00:22:28.440 to be relentless and ultimately fatal for the 00:22:28.440 --> 00:22:30.880 project. It was. They filed lawsuit after lawsuit, 00:22:31.019 --> 00:22:32.920 challenging every single permit and regulatory 00:22:32.920 --> 00:22:34.980 approval. The project was officially canceled 00:22:34.980 --> 00:22:37.720 in July 2020. And the reason they gave was the 00:22:37.720 --> 00:22:40.240 economic reality. Soaring cost increases due 00:22:40.240 --> 00:22:42.079 to the persistent legal challenges, primarily 00:22:42.079 --> 00:22:44.500 from those environmental groups. So this cancellation, 00:22:44.819 --> 00:22:47.480 a multibillion dollar project being scrapped 00:22:47.480 --> 00:22:50.880 because of legal hurdles, it really demonstrates 00:22:50.880 --> 00:22:53.819 the immense power of organized community and 00:22:53.819 --> 00:22:56.819 environmental opposition against major energy 00:22:56.819 --> 00:22:59.359 infrastructure in the U .S. It really does. Yet. 00:22:59.630 --> 00:23:01.950 Almost at the same time, Dominion has been forging 00:23:01.950 --> 00:23:04.049 ahead with one of the most ambitious renewable 00:23:04.049 --> 00:23:07.250 projects in the entire country, a project that 00:23:07.250 --> 00:23:10.329 is a cornerstone of their future identity, the 00:23:10.329 --> 00:23:14.410 Coastal Virginia Offshore Wind, or CVOW project. 00:23:14.930 --> 00:23:17.650 CVOW is colossal. It's situated off the coast 00:23:17.650 --> 00:23:19.950 of Virginia. And when it's fully completed, it 00:23:19.950 --> 00:23:23.269 is designed to add more than 2 ,600 megawatts 00:23:23.269 --> 00:23:25.250 of clean energy to the grid. And to understand 00:23:25.250 --> 00:23:27.349 the physical scale here, they are planning to 00:23:27.349 --> 00:23:30.670 install 220 massive wind turbines capable of 00:23:30.670 --> 00:23:34.250 powering 650 ,000 homes at peak operation. It's 00:23:34.250 --> 00:23:36.329 a monster project. But this isn't just a big 00:23:36.329 --> 00:23:39.109 wind farm. It holds this historical and regulatory 00:23:39.109 --> 00:23:41.809 significance that sets it apart. Our sources 00:23:41.809 --> 00:23:43.809 highlight that this is the country's second offshore 00:23:43.809 --> 00:23:46.329 wind project, but crucially, it's the first utility 00:23:46.329 --> 00:23:48.930 -scale project of its kind to be installed in 00:23:48.930 --> 00:23:51.069 federal waters. Right. It's sited roughly 27 00:23:51.069 --> 00:23:53.410 miles offshore. What's the significance of it 00:23:53.410 --> 00:23:55.890 being in federal waters? It means navigating 00:23:55.890 --> 00:23:58.470 a radically different and far more complex regulatory 00:23:58.470 --> 00:24:02.259 environment than nearshore state waters. So Dominion 00:24:02.259 --> 00:24:04.559 is moving very carefully. They've already placed 00:24:04.559 --> 00:24:07.240 two pilot turbines to demonstrate proof of concept, 00:24:07.359 --> 00:24:10.680 and the plan is for the entire 220 -turbine fleet 00:24:10.680 --> 00:24:14.220 to be fully operational by 2026. This project 00:24:14.220 --> 00:24:16.799 is absolutely central to their clean energy transformation 00:24:16.799 --> 00:24:19.759 narrative. It's one of the largest planned investments 00:24:19.759 --> 00:24:22.220 in the company's entire history. And the commitment 00:24:22.220 --> 00:24:24.359 to this project is so deep that they are even 00:24:24.359 --> 00:24:26.839 building the specialized machinery that's necessary 00:24:26.839 --> 00:24:29.519 for the installation, which allows them to circumvent 00:24:29.519 --> 00:24:32.400 reliance on foreign fleets. That's a fascinating 00:24:32.400 --> 00:24:34.799 logistical detail, and it reflects a huge commitment. 00:24:35.160 --> 00:24:38.319 In December 2020, the keel was laid for the Charybdis. 00:24:38.660 --> 00:24:42.519 It's a novel Jones Act -compliant offshore WTIV 00:24:42.519 --> 00:24:45.339 that's a wind turbine installation vessel, and 00:24:45.339 --> 00:24:47.819 it's under construction at Keppel Amphel Shipyards 00:24:47.819 --> 00:24:50.599 in Texas. For our listeners, what does Jones 00:24:50.599 --> 00:24:53.779 Act compliant mean for this vessel and for Dominion 00:24:53.779 --> 00:24:56.960 strategy? OK, so the Jones Act mandates that 00:24:56.960 --> 00:24:59.799 any goods transported between U .S. ports must 00:24:59.799 --> 00:25:01.900 be carried on ships that are built, owned and 00:25:01.900 --> 00:25:05.220 operated by U .S. citizens. Building the Charybdis 00:25:05.220 --> 00:25:09.039 to comply with the Jones Act is an enormous multimillion 00:25:09.039 --> 00:25:11.319 dollar investment. And it shows their long term 00:25:11.319 --> 00:25:14.210 strategic commitment. Exactly. It means they 00:25:14.210 --> 00:25:17.369 won't be reliant on expensive waivers or the 00:25:17.369 --> 00:25:19.769 limited number of foreign -flagged vessels to 00:25:19.769 --> 00:25:22.970 build the CVOW project. By building their own 00:25:22.970 --> 00:25:25.529 vessel, they are solidifying their position not 00:25:25.529 --> 00:25:27.819 just as a power producer, but as an integral 00:25:27.819 --> 00:25:30.180 part of the emerging U .S. offshore wind supply 00:25:30.180 --> 00:25:32.859 chain. It creates a significant competitive advantage. 00:25:33.180 --> 00:25:34.819 So moving beyond the physical infrastructure 00:25:34.819 --> 00:25:37.140 and the energy mix, we really have to address 00:25:37.140 --> 00:25:39.539 the political reality of operating an entity 00:25:39.539 --> 00:25:42.359 this massive and this heavily regulated. The 00:25:42.359 --> 00:25:44.380 influence of the Dominion Political Action Committee, 00:25:44.579 --> 00:25:46.940 the PACI, particularly in Virginia politics, 00:25:47.180 --> 00:25:49.640 is well documented and very closely watched. 00:25:50.039 --> 00:25:51.839 Yeah, the Pacey's activity really demonstrates 00:25:51.839 --> 00:25:55.859 the necessary and extensive engagement a regulated 00:25:55.859 --> 00:25:58.640 utility has to maintain to secure its business 00:25:58.640 --> 00:26:01.559 model. I mean, the sheer level of financial activity 00:26:01.559 --> 00:26:03.880 is significant. For instance, the Pacey donated 00:26:03.880 --> 00:26:07.779 over $814 ,000 in 2009. And that number climbed 00:26:07.779 --> 00:26:10.920 dramatically. It reached over $1 .27 million, 00:26:11.259 --> 00:26:13.740 contributed to various political candidates and 00:26:13.740 --> 00:26:16.299 committees during the 2016 election cycle alone. 00:26:16.680 --> 00:26:18.480 Now, what's crucial to note is the Pacey's strategy 00:26:18.480 --> 00:26:20.799 with those donations. Historically, it's been 00:26:20.799 --> 00:26:24.559 about bipartisan balance. In 2009, 56 % went 00:26:24.559 --> 00:26:28.000 to Republicans and 41 % went to Democrats. In 00:26:28.000 --> 00:26:30.980 2008, it was nearly a perfect split, 50 % to 00:26:30.980 --> 00:26:33.559 Republicans, 47 % to Democrats. Which is a classic 00:26:33.559 --> 00:26:35.640 characteristic of a regulated monopoly, isn't 00:26:35.640 --> 00:26:38.279 it? It is. They cannot afford to alienate either 00:26:38.279 --> 00:26:40.299 political party. They need good relationships 00:26:40.299 --> 00:26:42.480 with whomever holds power, governors, legislative 00:26:42.480 --> 00:26:44.559 leaders, and critically, the regulators and the 00:26:44.559 --> 00:26:46.400 state corporation commission. They need that 00:26:46.400 --> 00:26:48.539 access to ensure they achieve favorable outcomes. 00:26:48.559 --> 00:26:51.220 comes for rate increases, for approvals for billion 00:26:51.220 --> 00:26:53.339 -dollar infrastructure projects, for asset sales. 00:26:53.539 --> 00:26:55.900 So bipartisan giving just ensures that no matter 00:26:55.900 --> 00:26:58.500 which party controls the statehouse, Dominion 00:26:58.500 --> 00:27:01.980 has access and influence. That's the goal. And 00:27:01.980 --> 00:27:04.259 their political activity extends beyond just 00:27:04.259 --> 00:27:07.180 campaign donations into lobbying for specific 00:27:07.180 --> 00:27:09.759 laws that protect their assets across different 00:27:09.759 --> 00:27:12.880 states. Right. Our sources detail the direct 00:27:12.880 --> 00:27:15.339 lobbying efforts that led to the passage of West 00:27:15.339 --> 00:27:17.279 Virginia's Critical Infrastructure Protection 00:27:17.279 --> 00:27:20.880 Act in 2021. Yeah, and this law created felony 00:27:20.880 --> 00:27:23.680 penalties for trespassing offenses that specifically 00:27:23.680 --> 00:27:27.339 target oil and gas facilities. The language of 00:27:27.339 --> 00:27:29.359 the legislation itself was heavily influenced 00:27:29.359 --> 00:27:32.359 by the industry. The law's sponsor, a guy named 00:27:32.359 --> 00:27:34.819 John Kelly, described the bill as having been 00:27:34.819 --> 00:27:37.759 requested by the natural gas industry. So it's 00:27:37.759 --> 00:27:40.259 very direct. It highlights the successful lobbying 00:27:40.259 --> 00:27:42.579 power Dominion and its peers have in securing 00:27:42.579 --> 00:27:45.220 legal protection for their vast and, frankly, 00:27:45.299 --> 00:27:47.920 vulnerable physical assets. On a different front, 00:27:48.000 --> 00:27:50.200 the company also engages in significant charitable 00:27:50.200 --> 00:27:52.900 and community initiatives. You could see this 00:27:52.900 --> 00:27:55.119 as a necessary effort to build goodwill and support 00:27:55.119 --> 00:27:57.240 in the communities that host all their infrastructure. 00:27:57.579 --> 00:27:59.839 Yeah, this is managed primarily through the Dominion 00:27:59.839 --> 00:28:01.880 Foundation, which acts as the company's social 00:28:01.880 --> 00:28:04.259 investment program. And it provides a substantial 00:28:04.259 --> 00:28:07.890 sum. about $20 million annually to charities 00:28:07.890 --> 00:28:10.710 across the states where Dominion operates. This 00:28:10.710 --> 00:28:12.970 consistency turns the company into a reliable 00:28:12.970 --> 00:28:15.349 institutional partner for regional nonprofits 00:28:15.349 --> 00:28:18.630 and other organizations. And they also make a 00:28:18.630 --> 00:28:21.309 concerted effort to recognize internal commitment. 00:28:21.740 --> 00:28:24.539 They have programs like the Benjamin J. Lambert 00:28:24.539 --> 00:28:27.599 III Volunteer of the Year program, which honors 00:28:27.599 --> 00:28:31.220 top employee volunteers and provides a $1 ,000 00:28:31.220 --> 00:28:34.059 donation to the charity of that individual's 00:28:34.059 --> 00:28:37.200 choice. We saw 12 employees honored in 2016, 00:28:37.500 --> 00:28:39.599 for example. And this commitment to community 00:28:39.599 --> 00:28:42.000 involvement became highly visible during crisis 00:28:42.000 --> 00:28:44.960 moments. During the 2020 COVID -19 pandemic, 00:28:45.500 --> 00:28:47.579 Dominion's response included several immediate 00:28:47.579 --> 00:28:50.119 customer protection measures. They stopped service 00:28:50.119 --> 00:28:52.240 disconnects for non - payment. They helped reconnect 00:28:52.240 --> 00:28:54.880 customers. They waived late fees and reconnection 00:28:54.880 --> 00:28:57.559 fees. And on top of that, their charitable foundation 00:28:57.559 --> 00:29:00.460 directed a million dollars in immediate aid to 00:29:00.460 --> 00:29:02.319 groups fighting the pandemic, like the American 00:29:02.319 --> 00:29:05.079 Red Cross and various local organizations. Right. 00:29:05.160 --> 00:29:07.640 So this blend of corporate action and philanthropic 00:29:07.640 --> 00:29:10.740 support, it really solidifies their role as a 00:29:10.740 --> 00:29:14.720 major, essential, institutional actor during 00:29:14.720 --> 00:29:17.720 any kind of regional emergency. Okay, so operating 00:29:17.720 --> 00:29:20.740 a utility of this scale ensures constant scrutiny. 00:29:20.920 --> 00:29:23.599 And nowhere is this more visible than in the 00:29:23.599 --> 00:29:25.700 major controversies that have defined the last 00:29:25.700 --> 00:29:28.259 couple of decades. Let's turn to the tension 00:29:28.259 --> 00:29:30.740 points, starting with disputes over high -voltage 00:29:30.740 --> 00:29:33.359 transmission lines. These disputes are classic 00:29:33.359 --> 00:29:36.119 examples of reliability versus community concerns. 00:29:36.380 --> 00:29:39.660 A major flashpoint occurred back in 2007 over 00:29:39.660 --> 00:29:42.779 a proposed 500 kV transmission line in northern 00:29:42.779 --> 00:29:45.480 Virginia. Dominion initially planned this really 00:29:45.480 --> 00:29:48.119 controversial route right through protected forests 00:29:48.119 --> 00:29:50.420 and farmland. And to appease the critics, they 00:29:50.420 --> 00:29:52.619 shifted to a southern route that bypassed nature 00:29:52.619 --> 00:29:55.240 preserves and Civil War sites by running it adjacent 00:29:55.240 --> 00:29:58.000 to existing power lines. But even that revised 00:29:58.000 --> 00:30:00.640 route drew some very high level opposition. It 00:30:00.640 --> 00:30:03.900 did. U .S. Congressman Frank Wolf and then Governor 00:30:03.900 --> 00:30:06.720 Tim Kaine remained opposed. And they raised the 00:30:06.720 --> 00:30:09.390 critical question of necessity. They argued that 00:30:09.390 --> 00:30:11.730 Dominion was primarily trying to import cheaper 00:30:11.730 --> 00:30:13.670 electricity from the Midwest for the wholesale 00:30:13.670 --> 00:30:16.329 market, not necessarily serving an immediate, 00:30:16.529 --> 00:30:19.349 critical reliability need for customers in northern 00:30:19.349 --> 00:30:21.650 Virginia. But despite that significant political 00:30:21.650 --> 00:30:24.789 opposition, the proposal was ultimately accepted 00:30:24.789 --> 00:30:27.250 by the state corporation commission, the SEC, 00:30:27.630 --> 00:30:31.589 in October 2008. They affirmed Dominion's need 00:30:31.589 --> 00:30:34.019 for the line. Right. But the follow -up controversy, 00:30:34.299 --> 00:30:37.299 the one about the WNOD Railroad Trail 230 KILV 00:30:37.299 --> 00:30:39.599 drawing, is perhaps even more telling about the 00:30:39.599 --> 00:30:41.539 public's ability to influence these regulatory 00:30:41.539 --> 00:30:44.819 outcomes. This was in February 2008. The SEC 00:30:44.819 --> 00:30:47.000 approved Dominion's plan for an above -ground 00:30:47.000 --> 00:30:49.640 line running 1 .8 miles along a wooded section 00:30:49.640 --> 00:30:52.180 of the beloved WNOD Trail in Loudoun County. 00:30:52.339 --> 00:30:55.319 The utility insisted it was essential for regional 00:30:55.319 --> 00:30:57.700 power reliability. And the public and legislative 00:30:57.700 --> 00:31:01.250 response was immediate and overwhelming. Less 00:31:01.250 --> 00:31:03.009 than three weeks later, the Virginia General 00:31:03.009 --> 00:31:05.710 Assembly unanimously passed emergency legislation 00:31:05.710 --> 00:31:09.650 HB 1319. This legislation was a direct political 00:31:09.650 --> 00:31:12.569 intervention. Oh, completely. It mandated the 00:31:12.569 --> 00:31:14.650 underground construction of that specific section 00:31:14.650 --> 00:31:17.369 of the line as part of a four -part statewide 00:31:17.369 --> 00:31:20.049 pilot program for subterranean transmission lines. 00:31:20.529 --> 00:31:22.789 That is a real... Yeah, construction began in 00:31:22.789 --> 00:31:26.410 2008 on this 605 -milli -w coal -fired power 00:31:26.410 --> 00:31:28.920 station. And the controversy started before a 00:31:28.920 --> 00:31:31.160 shovel even hit the dirt with the name itself. 00:31:32.180 --> 00:31:33.900 Environmentalists criticized the term hybrid 00:31:33.900 --> 00:31:37.000 energy center as a blatant attempt at, you know, 00:31:37.019 --> 00:31:39.160 greenwashing. Designed to make the plant sound 00:31:39.160 --> 00:31:41.240 environmentally friendly. Right. Even though 00:31:41.240 --> 00:31:43.920 it was designed to burn primarily coal, along 00:31:43.920 --> 00:31:46.259 with up to 20 percent biomass and waste coal 00:31:46.259 --> 00:31:49.240 known as gob. However, the plant also had a critical 00:31:49.240 --> 00:31:52.069 defense. It was acknowledged to possess the most 00:31:52.069 --> 00:31:54.769 stringent air permit for any coal -fired power 00:31:54.769 --> 00:31:57.190 plant in the nation at that time. It required 00:31:57.190 --> 00:31:59.250 the most advanced pollution controls available. 00:31:59.509 --> 00:32:02.450 And that tension is central to the debate because 00:32:02.450 --> 00:32:05.329 while it had strict permits, the sheer volume 00:32:05.329 --> 00:32:08.829 of output still raised massive concerns. Projected 00:32:08.829 --> 00:32:11.069 carbon dioxide emissions were still a staggering 00:32:11.069 --> 00:32:14.019 5 .4 million tons per year. And there were high 00:32:14.019 --> 00:32:16.339 levels of mercury controlled by activated carbon 00:32:16.339 --> 00:32:18.839 injection and critical concern over the location 00:32:18.839 --> 00:32:21.500 of the fly ash dump, which was near the Clinch 00:32:21.500 --> 00:32:24.900 River, a major drinking water source. And furthermore, 00:32:24.960 --> 00:32:28.180 the plant's sustained coal usage continued to 00:32:28.180 --> 00:32:31.019 support controversial extraction methods, including 00:32:31.019 --> 00:32:33.539 mountaintop removal coal mining. It was a whole 00:32:33.539 --> 00:32:36.140 package of concerns. Yet for the local area, 00:32:36.319 --> 00:32:39.299 the plant represented a lifeline. Local supporters, 00:32:39.539 --> 00:32:42.079 including Governor Kaine, argued the plant provided 00:32:42.079 --> 00:32:44.720 critical benefits. Yeah, like reducing Virginia's 00:32:44.720 --> 00:32:47.460 dependency on imported electricity and providing 00:32:47.460 --> 00:32:50.180 a massive economic injection. The construction 00:32:50.180 --> 00:32:53.359 employed 1 ,000 workers. It staffed 130 full 00:32:53.359 --> 00:32:56.000 -time employees. And it was expected to generate 00:32:56.000 --> 00:32:58.859 between $4 and $7 million a year in tax revenue 00:32:58.859 --> 00:33:01.740 for the economically depressed Wise County. It's 00:33:01.740 --> 00:33:04.160 the perfect moment. microcosm of the energy versus 00:33:04.160 --> 00:33:06.660 environment, local economics versus global impact 00:33:06.660 --> 00:33:09.500 debate. It really is. And we should also revisit 00:33:09.500 --> 00:33:12.380 the Cove Point LNG facility. It's a strategic 00:33:12.380 --> 00:33:14.940 asset that generated major safety and technical 00:33:14.940 --> 00:33:17.319 disputes, demonstrating the day to day challenges 00:33:17.319 --> 00:33:20.160 of operating critical infrastructure. Back in 00:33:20.160 --> 00:33:22.299 2001, when the facility was scheduled to reopen 00:33:22.299 --> 00:33:24.859 after being dormant for a while, local residents 00:33:24.859 --> 00:33:27.259 expressed grave concerns about its safety. And 00:33:27.259 --> 00:33:31.039 this was specifically due to its proximity. Only 00:33:31.039 --> 00:33:33.880 three miles to the Calvert Cliffs nuclear power 00:33:33.880 --> 00:33:36.950 plant. Right. Their fear was simple. What kind 00:33:36.950 --> 00:33:39.410 of damage could an attack or an explosion at 00:33:39.410 --> 00:33:42.490 this high volume LNG facility cause to the nearby 00:33:42.490 --> 00:33:44.950 nuclear plant? A cascading failure. Exactly. 00:33:45.309 --> 00:33:47.730 Residents worried that the Federal Energy Regulatory 00:33:47.730 --> 00:33:50.029 Commission hadn't fully considered the cascading 00:33:50.029 --> 00:33:53.309 risks of operating two high risk facilities so 00:33:53.309 --> 00:33:55.529 close together. It just illustrates the inherent 00:33:55.529 --> 00:33:58.150 danger and liability involved in storing and 00:33:58.150 --> 00:34:01.170 handling massive amounts of volatile energy products 00:34:01.170 --> 00:34:04.170 near population centers. Then in 2005, there 00:34:04.170 --> 00:34:06.200 was this really unique technical dispute. known 00:34:06.200 --> 00:34:09.500 as the hot gas controversy. Washington Gas claimed 00:34:09.500 --> 00:34:11.280 that the imported natural gas coming through 00:34:11.280 --> 00:34:14.340 Cove Point was too hot. What does that even mean 00:34:14.340 --> 00:34:16.880 in technical terms and why did it cause problems? 00:34:17.039 --> 00:34:19.360 Okay, so hot gas just means the gas has a higher 00:34:19.360 --> 00:34:22.679 BTU content British thermal unit. It's essentially 00:34:22.679 --> 00:34:24.880 how much heat it produces when it's burned. And 00:34:24.880 --> 00:34:27.780 this was because the imported LNG had fewer heavy 00:34:27.780 --> 00:34:31.079 hydrocarbons than traditional domestic gas. Precisely. 00:34:31.179 --> 00:34:33.840 So Washington Gas alleged that this hotter, more 00:34:33.840 --> 00:34:35.889 volatile gas was causing... problems for its 00:34:35.889 --> 00:34:39.150 customers and, critically, placing undue strain 00:34:39.150 --> 00:34:41.909 on and breaking many of its older mains or pipelines, 00:34:42.170 --> 00:34:45.460 which led to leaks and service disruptions. And 00:34:45.460 --> 00:34:47.420 what was Dominion's response to these claims? 00:34:47.780 --> 00:34:50.239 Well, Dominion vigorously denied that its imported 00:34:50.239 --> 00:34:53.300 gas was the root cause of the breaks. They asserted 00:34:53.300 --> 00:34:55.119 that expanding the service area of this imported 00:34:55.119 --> 00:34:58.059 gas would not lead to additional leaks in D .C. 00:34:58.159 --> 00:35:01.320 or the northern Virginia suburbs. It just showcases 00:35:01.320 --> 00:35:03.519 the immediate regulatory public safety and public 00:35:03.519 --> 00:35:06.300 relations challenges Dominion faces when technical 00:35:06.300 --> 00:35:09.019 issues arise from operating this kind of high 00:35:09.019 --> 00:35:12.250 volume cross -border energy infrastructure. This 00:35:12.250 --> 00:35:13.949 is where it gets really interesting in terms 00:35:13.949 --> 00:35:16.590 of the company's long -term trajectory, looking 00:35:16.590 --> 00:35:19.150 at their environmental performance record. The 00:35:19.150 --> 00:35:21.150 sources we have track a significant improvement 00:35:21.150 --> 00:35:23.829 over time, even while they detail the scale of 00:35:23.829 --> 00:35:26.269 historical problems. Yeah, the data from the 00:35:26.269 --> 00:35:28.250 Political Economy Research Institute demonstrates 00:35:28.250 --> 00:35:31.050 a clear, positive trajectory in reducing their 00:35:31.050 --> 00:35:34.079 environmental impact. Their toxic score, which 00:35:34.079 --> 00:35:36.260 measures airborne pollutants based on pounds 00:35:36.260 --> 00:35:38.820 released, toxicity, and population exposure, 00:35:39.099 --> 00:35:41.139 it dropped substantially. What were the numbers? 00:35:41.440 --> 00:35:46.119 It went from a score of 117 ,712 in 2005, down 00:35:46.119 --> 00:35:50.659 sharply to 58 ,642 in 2008, and then it plummeted 00:35:50.659 --> 00:35:55.190 further to 16 ,656 in 2010. That reduction is 00:35:55.190 --> 00:35:57.550 verifiable proof that their stated commitment 00:35:57.550 --> 00:35:59.989 to environmental improvement is having a tangible 00:35:59.989 --> 00:36:02.550 impact. It's likely driven by compliance requirements 00:36:02.550 --> 00:36:05.070 and technology upgrades. It is, but you can't 00:36:05.070 --> 00:36:06.929 forget the scale of the legacy issues they were 00:36:06.929 --> 00:36:09.510 required to address. The 2002 data, for instance, 00:36:09.710 --> 00:36:12.130 details the release of just immense amounts of 00:36:12.130 --> 00:36:14.429 specific toxic emissions. We're talking over 00:36:14.429 --> 00:36:17.449 1 .1 million pounds of gastrointestinal or liver 00:36:17.449 --> 00:36:20.949 toxicant emissions, 1 .44 million pounds of musculoskeletal 00:36:20.949 --> 00:36:23.469 toxicant emissions, and similar numbers for other... 00:36:23.469 --> 00:36:25.230 suspected hazardous emissions. This historical 00:36:25.230 --> 00:36:27.789 footprint required billions in mandated cleanup 00:36:27.789 --> 00:36:29.989 and upgrades. And a key example of that mandated 00:36:29.989 --> 00:36:32.449 cleanup is the 2007 Brayton Point settlement 00:36:32.449 --> 00:36:35.070 with the EPA. Yeah, that settlement required 00:36:35.070 --> 00:36:37.690 the former Brighton Point Power Station to install 00:36:37.690 --> 00:36:41.630 new closed cycle cooling towers. This massive, 00:36:41.670 --> 00:36:44.090 expensive infrastructure upgrade was required 00:36:44.090 --> 00:36:46.429 specifically to protect aquatic organisms in 00:36:46.429 --> 00:36:49.130 Mount Hope Bay. It resolved a dispute that originated 00:36:49.130 --> 00:36:52.849 way back in 2003 about the plant's thermal discharges 00:36:52.849 --> 00:36:55.949 and water intake practices. It just demonstrates 00:36:55.949 --> 00:36:58.190 that environmental compliance, especially for 00:36:58.190 --> 00:37:01.090 legacy infrastructure, is often measured in hundreds 00:37:01.090 --> 00:37:03.530 of millions of dollars of... mandated capital 00:37:03.530 --> 00:37:06.769 expenditure. Finally, just to bring the sheer 00:37:06.769 --> 00:37:08.909 volatility of grid management right into the 00:37:08.909 --> 00:37:11.369 modern day, we have a recent anecdote that serves 00:37:11.369 --> 00:37:13.429 as a stark reminder of what this infrastructure 00:37:13.429 --> 00:37:16.349 faces. Our sources mention a pretty traumatic 00:37:16.349 --> 00:37:19.210 incident in August 2025 in Mount Pleasant, South 00:37:19.210 --> 00:37:21.909 Carolina. Oh, yeah. Dash cam footage captured 00:37:21.909 --> 00:37:25.219 a lightning strike hitting Dominion. energy infrastructure. 00:37:25.460 --> 00:37:28.079 It just erupted into a massive fireball. And 00:37:28.079 --> 00:37:30.679 that dramatic event, it serves as this stark 00:37:30.679 --> 00:37:32.760 reminder that even with hundreds of billions 00:37:32.760 --> 00:37:36.119 in assets and cutting -edge technology, managing 00:37:36.119 --> 00:37:39.059 a colossal grid means facing the sheer, unpredictable 00:37:39.059 --> 00:37:42.340 volatility of nature. And protecting those critical 00:37:42.340 --> 00:37:44.559 assets from both natural phenomena and intentional 00:37:44.559 --> 00:37:47.119 harm, that's exactly why Dominion successfully 00:37:47.119 --> 00:37:50.119 lobbied for laws like West Virginia's Critical 00:37:50.119 --> 00:37:53.099 Infrastructure Protection Act. The grid is a 00:37:53.099 --> 00:37:56.059 system that's constantly under threat. So after 00:37:56.059 --> 00:37:58.340 all that, what does this all mean for you, the 00:37:58.340 --> 00:38:01.219 well -informed listener? If we synthesize everything 00:38:01.219 --> 00:38:03.679 we've looked at, the story of Dominion Energy 00:38:03.679 --> 00:38:06.639 is this fundamental tension between legacy and 00:38:06.639 --> 00:38:09.059 ambition. I think that's right. Dominion is defined 00:38:09.059 --> 00:38:11.699 by its massive old -school infrastructure, the 00:38:11.699 --> 00:38:13.840 nation's largest natural gas storage facilities, 00:38:14.199 --> 00:38:16.440 the complex nuclear power fleet, and the continued 00:38:16.440 --> 00:38:19.000 reliance on gas and coal for nearly 90 % of its 00:38:19.000 --> 00:38:21.769 generation. That's stability. That's its heritage. 00:38:22.090 --> 00:38:25.550 Exactly. And this enormous legacy is juxtaposed 00:38:25.550 --> 00:38:28.590 against a very public, multibillion -dollar commitment 00:38:28.590 --> 00:38:31.929 to a green future, epitomized by the Coastal 00:38:31.929 --> 00:38:35.329 Virginia Offshore Wind Project. a project that 00:38:35.329 --> 00:38:38.090 requires them to build highly specialized Jones 00:38:38.090 --> 00:38:41.309 Act compliant tools like the TRIBDS vessel just 00:38:41.309 --> 00:38:43.769 to execute the transition. They are simultaneously 00:38:43.769 --> 00:38:47.829 an old school utility behemoth and a leader in 00:38:47.829 --> 00:38:50.690 next generation high stakes infrastructure development. 00:38:50.949 --> 00:38:53.550 And we also see the profound complexity of managing 00:38:53.550 --> 00:38:56.030 a regulated utility that's subject to intense 00:38:56.030 --> 00:38:58.789 multi -state scrutiny. Their political involvement 00:38:58.789 --> 00:39:01.590 is strategic and bipartisan, essential for navigating 00:39:01.590 --> 00:39:04.570 rate cases and infrastructure approval. But they're 00:39:04.570 --> 00:39:07.849 still vulnerable. So vulnerable. They face intense 00:39:07.849 --> 00:39:10.170 local and environmental scrutiny, which we saw 00:39:10.170 --> 00:39:12.230 demonstrated by the successful legislative efforts 00:39:12.230 --> 00:39:14.090 to override their transmission line decisions 00:39:14.090 --> 00:39:16.489 and, of course, the complete cancellation of 00:39:16.489 --> 00:39:18.369 the Atlantic Coast pipeline due to organized 00:39:18.369 --> 00:39:21.269 opposition and the rising costs. This level of 00:39:21.269 --> 00:39:23.250 operational and political complexity requires 00:39:23.250 --> 00:39:26.110 constant, massive strategic adaptation, which 00:39:26.110 --> 00:39:28.130 brings us to the future and our final provocative 00:39:28.130 --> 00:39:31.289 thought. The recent high state's multibillion 00:39:31.289 --> 00:39:33.949 dollar divestiture strategy announced in 2023, 00:39:34.289 --> 00:39:38.469 specifically that $14 billion agreement to sell 00:39:38.469 --> 00:39:41.510 East Ohio Gas, Questar Gas and Public Service 00:39:41.510 --> 00:39:44.269 Company of North Carolina to Enbridge. That is 00:39:44.269 --> 00:39:46.730 monumental. Given that their core electric utility 00:39:46.730 --> 00:39:49.010 services in Virginia and North Carolina remain 00:39:49.010 --> 00:39:51.070 absolutely central to the company's identity 00:39:51.070 --> 00:39:53.809 and their guaranteed revenue, Dominion is consciously 00:39:53.809 --> 00:39:56.590 shedding its role as a major national dual electric 00:39:56.590 --> 00:39:59.920 and gas provider. So the question is, what does 00:39:59.920 --> 00:40:02.300 such a massive strategic streamlining mean for 00:40:02.300 --> 00:40:05.380 Dominion's future regulatory focus? Will this 00:40:05.380 --> 00:40:07.460 shift allow them to just double down on the massive 00:40:07.460 --> 00:40:10.340 capital expenditure required for CVOW and the 00:40:10.340 --> 00:40:12.880 grid modernization program in their core electric 00:40:12.880 --> 00:40:15.199 territories, reducing distractions from these 00:40:15.199 --> 00:40:18.039 non -core gas operations? And more broadly, how 00:40:18.039 --> 00:40:20.280 will that strategic streamlining reshape the 00:40:20.280 --> 00:40:22.519 energy landscape of the U .S. now that these 00:40:22.519 --> 00:40:25.119 critical gas assets are consolidating under competitors 00:40:25.119 --> 00:40:28.070 like Enbridge? That shift in focus and risk profile 00:40:28.070 --> 00:40:29.769 is a question that will define the U .S. energy 00:40:29.769 --> 00:40:31.849 market for the coming decade. Truly fascinating 00:40:31.849 --> 00:40:34.730 transformation to monitor. It is. Thank you for 00:40:34.730 --> 00:40:37.349 joining us for this deep dive into the colossal 00:40:37.349 --> 00:40:40.090 world of Dominion Energy. And thank you for listening.