Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| In so doing, we expect to have; one, improved our qualitative credit profile; two, reduce the proportion of parent debt to total debt; and three, improved our cash covered metrics |
| Strong demographic trends, robust economic growth, increasing electric demand combined with common sense energy policy that promotes reliability, affordability, and the transition to cleaner energy over time, make Virginia, North Carolina, and South Carolina a compelling geographic foundation for our business |
| What I would suggest, as you're thinking about that, the way we think about it is we've demonstrated over the course of the last I don't know, three to four years, our ability to work very constructively with parties and regulatory proceedings of all types |
| South Carolina is expanding and healthy economy provides a backdrop for DESC's sustained electric and gas utility growth |
| So as we think about potential changes to any sort of capital plan that we've shown, and as I've already described, the projects that we have in there in that plan are very real, and we feel very good about them |
| But the regulated capital growth plan, we think is very solid |
| In Virginia, the unique intersection of industry-leading demand growth, strong policy support for resiliency, decarbonization, affordability and economic growth and a durable regulatory model, represents an unprecedented opportunity |
| So that capital plan that we're talking about we feel really good about |
| Impressive growth in the manufacturing sector is supported by pro-business policies and tax incentives |
| So we feel really good, Steve, about the capital plan, the growth plan that we've got |
| Second, we've taken steps to put our regulated utilities on solid financial policy and regulatory footing |
| And -- but then we see very strong rebounding, especially with offshore wind coming in 2026 and 2027 and then staying strong thereafter |
| I believe the reasonable regulatory reform that we supported during the 2023 Virginia General Assembly, taken together with the Virginia Clean Economy Act of 2020l, and the Grid Transformation & Security Act of 2018, positions our company to attract capital to continue to deliver exemplary reliability and resiliency as well as exceptional customer value |
| What we look at is the full value chain of distribution, transmission, and even generation regulated investment that grows rate base that ultimately translates into that durable high-quality earnings growth |
| We've prioritized transparent and consistent communication with the office of regulatory staff, we've delivered excellent reliability and safety metrics, and we've maintained rates well below national averages |
| An exceptional customer experience positions our company to deliver the best results for our shareholders |
| But we're very confident in our ability to earn our earned returns in Virginia -- authorized returns, I'm sorry |
| So looking at all the pieces put together, this was the right mix in our mind of great regulated growth opportunities in these growing states with common sense regulation |
| Further, we've secured a well-capitalized and experienced financing partner on terms that significantly de risk the project for Dominion customers and shareholders |
| That supports our substantial state-regulated capital program and helps us maintain a healthy balance sheet |
| Fifth, we've taken meaningful steps to deliver a robust and sustainable credit profile, inclusive of the sale of our remaining interesting Cove Point and the securitization of deferred fuel and our asset sales that are currently pending regulatory approval and closing, we will have successfully raised a total of 16 billion of after tax proceeds |
| To that end, we remain committed to our 2050 net zero goal and we're proud of the significant progress we've made towards that goal by reducing carbon emissions from our electric business by 47% from 2005 through 2022 |
| We've improved our qualitative business risk profile by narrowing our strategic focus, enhancing the financial footing of our regulated utilities and reducing offshore wind project risk |
| And then sort of put that in the mix with the rest of the operating segments, 5% to 7%, we think lands us in a very good spot |
| And by developing a cushion of 100 to 200 basis points on average at the Moody's and S&P downgrade thresholds, we feel like we've built a very robust cushion to withstand those types of pressures going forward |
| In recent years, we've driven down costs through improved processes, innovative use of technology, other best practice initiatives |
| We've taken steps to stabilize and improve the financial footing of Dominion Energy Virginia, and we've meaningfully reduced the risk of the offshore wind project, subject to regulatory approval |
| And based on the most recent data published by FERC, we have a proven track record of being one of the most efficient companies for the benefit of our customers in the industry |
| We believe the results of the review comprehensively deliver a robust and sustainable, strategic and financial profile |
| Our state-regulated utility model offers investors increased predictability and is enhanced by our concentration in these fast-growing, constructive, and business-friendly states |
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| So again, there are some risks |
| Bob mentioned Millstone pricing, Millstone performance, I'd say interest rates are areas of risk for us |
| Blue As you heard from Susan, we recognize that we must consistently execute against the financial targets we provide you today and in the future |
| Look, could the unhedged part of Millstone number change a little bit, something like that, there might be some risks there, obviously |
| I think seven of the last eight years, we've been below the downgrade threshold, as published at Moody's |
| For the business review to be successful we must now consistently execute |
| As we described in detail on the fourth quarter earnings call, this reflects the illustrative $0.10 impact from a lower expected return on assets or EROA Assumption as a result of a prospective and entirely voluntary evaluation of retirement plan asset derisking |
| Is it around the authorized level, below authorized, above authorized? And then the second, on the effective tax rate slide you gave, so it looks like it dips down to like 14% from 18.5% and 16% |
| Over the last months we have worked methodically to deliver a result that comprehensively and finally addresses foundational concerns that have eroded investor confidence in our company over the last several years |
| Between 2013 and 2023, our typical residential customer rate on average was 12% and 9% lower than the U.S |
| But I was surprised that it doesn't roll down into EPS growth rate |
| Our most recent typical customer rate is 17% and 10%, lower than the national average for those two segments, respectively |
| Sixth, we've taken seriously the feedback we've heard from investors about the dissatisfaction with past earnings quality and planned assumption risk levels |
| On the electric side, we have been under earning |
| So is there some chance that puts a little pressure on earned return in 2024 to 2025, maybe too early to know for sure |
| I mentioned 2025 is going to be our weakest year |
| Finally, our work is not done, far from it |
| But capital is I don't view one that we feel very concerned about in terms of the ability to deliver the capital plan we've laid out today |
| And we're attacking that |
| Notwithstanding how much has been accomplished during the review, the hard work continues |
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