Dominion Energy and Virginia Power face risks from fluctuating energy commodity prices, interest rates, and foreign currency exchange rates. Regulatory changes, including environmental regulations and rate adjustments, pose significant uncertainty. Potential losses from litigation, operational hazards, and the failure of third-party counterparties are also noted. The companies' investments in projects like the CVOW Commercial Project are subject to delays and cost overruns. Uncertainties surrounding the outcome of regulatory proceedings and legal matters are also present.
Financial Upside
Increased operating revenue from higher rider equity returns, increased capital investments, and favorable weather patterns are potential financial upsides. The absence of certain charges, such as deferred tax liabilities associated with past transactions, and gains on nuclear decommissioning trust funds also contribute to positive financial outcomes. The companies expect to benefit from the sale of a 50% noncontrolling interest in the CVOW Commercial Project. Proceeds from acquisitions and divestitures, and favorable outcomes in regulatory proceedings, are also potential sources of financial upside.
