VIRGINIA ELECTRIC AND POWER COMPANY

Executive Summary

Virginia Electric and Power Company, operating as Dominion Energy Virginia, is a regulated electric utility subsidiary of Dominion Energy, Inc. (NYSE: D). It generates, transmits, and distributes electricity to approximately 2.7 million residential, commercial, and industrial customers across Virginia and northeastern North Carolina. The company’s generation portfolio spans nuclear, natural gas, coal, hydro, solar, and the pioneering Coastal Virginia Offshore Wind project, positioning it as a critical energy infrastructure provider in the mid-Atlantic.

Government Reliance & Contracts

Federal contracts represent a modest but strategically visible portion of revenue. The most notable award is a $100 million utility energy service contract from the Department of Justice (FBI) for the Quantico facility, effective September 2026. This contract underscores federal trust in Dominion’s reliability and security. Beyond this, the utility serves numerous federal installations within its service territory—including military bases (e.g., Fort Belvoir, Naval Station Norfolk), NASA Wallops Flight Facility, and other government campuses—through standard tariffed rates rather than discrete contracts. Overall, federal dollars are not a dominant revenue driver; the company’s financial foundation rests on regulated retail sales to a broad customer base.

Moats & Key Technology

• Regulatory Monopoly: Exclusive franchise rights in its Virginia and North Carolina service areas create a durable, non-competitive moat with returns set by state utility commissions.
• Nuclear Expertise: Ownership and operation of the North Anna and Surry nuclear power stations provide zero-carbon baseload generation, with licenses extended into the 2050s and potential for uprates.
• Offshore Wind Leadership: The 2.6 GW Coastal Virginia Offshore Wind project—the largest in the U.S.—is a first-mover asset that leverages federal tax credits and state clean-energy mandates.
• Grid Modernization: Investments in smart meters, automated distribution, and energy storage enhance reliability and enable integration of distributed energy resources.
• Transmission Scale: A vast network of high-voltage lines connects generation to load centers, with ongoing projects to relieve congestion and support data center growth in Northern Virginia.

Capital & Shadow Backers

Virginia Electric and Power Company is a wholly-owned subsidiary of Dominion Energy, Inc., a publicly traded Fortune 500 company (NYSE: D). As such, it accesses capital through Dominion’s corporate treasury, which raises funds via equity offerings, debt issuances, and retained earnings. Major institutional shareholders of Dominion Energy include The Vanguard Group, BlackRock, and State Street. There are no private shadow backers or venture capital involvement; the utility’s financing is transparent and subject to SEC oversight.

Recent Catalysts

• FBI Quantico Contract (Sept 2026): The $100M award validates the utility’s ability to secure high-profile federal energy service contracts and may open doors to additional government business.
• Coastal Virginia Offshore Wind: Construction is advancing on schedule, with first power expected in 2024 and full operation by 2026, providing a visible growth driver and alignment with the Virginia Clean Economy Act.
• Nuclear License Extensions: Extended operating licenses for North Anna and Surry (to 60 years and beyond) secure long-term carbon-free generation and support potential power uprates.
• Data Center Demand: Dominion’s service territory hosts the world’s largest concentration of data centers; surging load growth drives transmission and generation investment, with rate cases reflecting these capital needs.
• Regulatory Developments: Ongoing rate reviews and compliance with Virginia’s 100% clean energy mandate by 2045 shape capital allocation and earnings visibility.