Data centers
Demand Driver
Data center growth, concentrated in Loudoun County, VA, drives significant demand increase and requires major transmission/generation investment.
Relevance 92·Dependency 75·Confidence 95
Source evidence
“The proposed infrastructure projects and investment commitments are intended to address both continued customer growth and increases in electricity consumption which are primarily driven by new and larger data center customers.”
South Carolina Commission
Revenue Exposure
DESC electric and gas distribution revenue is based primarily on rates established by the South Carolina Commission.
Relevance 90·Dependency 85·Confidence 95
Source evidence
“Revenue provided by DESC's electric distribution operations is based primarily on rates established by the South Carolina Commission.”
CVOW total project cost estimate includes $0.6 billion of tariffs on equipment from Mexico, Canada, EU and steel-containing equipment; ~$0.2 billion subject of Feb 20, 2026 Supreme Court ruling.
Relevance 90·Dependency 60·Confidence 95
Source evidence
“Such amount is inclusive of approximately $0.2 billion associated with tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries”
Data centers
Revenue Exposure
Significant accelerated electricity demand growth from new data centers, concentrated primarily in Loudoun County, Virginia, is a disclosed demand/risk factor.
Relevance 90·Dependency 50·Confidence 95
Source evidence
“Risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers”
Federal and state cost-of-service rate regulation
Regulatory Exposure
Regulated electric and gas operations reflect rate regulation: regulatory assets/liabilities and probable ratemaking disallowances drive earnings, including the 2025 CVOW charge.
Relevance 85·Dependency 80·Confidence 90
Source evidence
“When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets.”
large industrial customers
Demand Driver
Approval to serve two large industrial customers will require new transmission investment, driving DESC load growth and capex.
Relevance 80·Dependency 55·Confidence 90
Source evidence
“DESC received approval from the South Carolina Commission to provide electric services to two large industrial customers which will require development of new electric transmission facilities.”
Stonepeak
Manufacturing Dependency
Stonepeak owns 50% noncontrolling interest in the CVOW Commercial Project; DEV's capital plan is presented net of Stonepeak reimbursements, creating a funding partnership dependency.
Relevance 78·Dependency 60·Confidence 90
Source evidence
“Dominion Energy Virginia's capital plan for 2026 through 2030 includes spending approximately $55 billion, net of reimbursements from Stonepeak”
Renewable energy / clean energy transition
Revenue Exposure
Strategy centers on zero-carbon and renewable generation including utility-scale solar, CVOW Commercial Project and nuclear license extensions.
Relevance 75·Dependency 60·Confidence 85
Source evidence
“Renewable generation facilities are expected to include significant investments in utility-scale solar and the CVOW Commercial Project.”
DESC electric transmission revenue is based on a FERC-approved formula rate mechanism under its open access transmission tariff.
Relevance 75·Dependency 60·Confidence 92
Source evidence
“Revenue provided by such electric transmission operations is based on a FERC-approved formula rate mechanism under DESC's open access transmission tariff or based on retail rates established by the South Carolina Commission.”
Environmental and climate change regulation
Legal Exposure
Tightened GHG limits, more extensive permitting, climate compliance costs, and litigation exposure for remedial activities are disclosed forward-looking risk factors.
Relevance 75·Dependency 60·Confidence 90
Source evidence
“Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities”
FERC regulates wholesale sales/transmission, market-based rate authority, affiliate restrictions and securities issuance by DESC; NERC reliability standards carry fines up to $1.6 million per day per violation.
Relevance 70·Dependency 65·Confidence 90
Source evidence
“Entities that violate standards will be subject to fines of up to $1.6 million per day, per violation and can also be assessed non-monetary penalties”
Virginia Power's PJM membership creates exposure to obligations from other participants' defaults and to PJM-assigned network upgrade costs (as reflected in CVOW cost revisions).
Relevance 70·Dependency 60·Confidence 90
Source evidence
“Risks associated with Virginia Power's membership and participation in PJM, including risks related to obligations created by the default of other participants”
Availability of natural gas (and nuclear fuel, purchased power) is disclosed as a factor affecting electric generation, transmission and distribution and gas distribution services.
Relevance 70·Dependency 50·Confidence 90
Source evidence
“The availability of nuclear fuel, natural gas, purchased power or other materials utilized by the Companies to provide electric generation, transmission and distribution and/or gas distribution services to their customers”
Industrial, commercial and residential customers
Demand Driver
Demand depends on industrial, commercial and residential growth or decline in service areas and on customer growth/usage patterns, moderated by conservation and distributed generation.
Relevance 65·Dependency 55·Confidence 85
Source evidence
“including industrial, commercial and residential growth or decline in the Companies' service areas, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns”
coal
Raw Material Dependency
Coal supplied 23% of DESC 2025 output, obtained through contracts with suppliers in eastern Kentucky, Tennessee, Virginia and West Virginia expiring through 2026.
Relevance 65·Dependency 45·Confidence 92
Source evidence
“DESC primarily obtains coal through short-term and long-term contracts with suppliers located in eastern Kentucky, Tennessee, Virginia and West Virginia that will expire at various times through 2026.”
Appalachian area and Marcellus and Utica regions
Supplier Dependency
Virginia Power's gas supply includes purchases from local producers in the Appalachian area and Marcellus and Utica regions.
Relevance 60·Dependency 50·Confidence 88
Source evidence
“purchases from local producers in the Appalachian area and Marcellus and Utica regions”
Alternative and distributed generation
Competitive Exposure
Self-generation, distributed generation technologies, and market alternatives for large commercial and industrial customers are disclosed as competitive threats.
Relevance 60·Dependency 40·Confidence 90
Source evidence
“potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies”
