D - Earnings call transcript Q3 2019

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Operator

Good morning and welcome to the Dominion Energy Third Quarter Earnings Conference Call. At this time, each of your lines is in a listen-only mode. At the conclusion of today’s presentation, we will open the floor for questions. [Operator Instructions] I would now like to turn the call over to Steven Ridge, Vice President, Investor Relations.

Steven Ridge

Good morning and welcome. disclosures. visit kit, Relations this a remarks additional to the to morning’s you and release earnings presentation quarterly encourage our website Investor view prepared I that accompanies after The today’s regarding Investor quarter’s results. will Relations be this call answer any team to questions available

are including refer that Quarterly to recent filings, our and to materials our and to remarks our Annual may and XX-Q management's for factors Form differ of cause most Form on our prepared SEC Reports contain Earnings various XX-K Reports statements estimates risks forward-looking forecasts, today discussion estimates from subject Please and expectations. projections, may on uncertainties. including a that results

measures comparable to calculate This which non-GAAP of release performance our able our Company's from GAAP we to are in GAAP, contained morning, kit. some that most the financial reconciliation we measures will measures, directly of earnings the those discuss are differ recognized by

are Chapman, other Chief the Tom well and as management Farrell, members President, President, Joining and as Officer team. Vice today's Financial executive Executive call Treasurer Chairman, Jim of Officer; Executive Chief

the now I turn will to over call Jim.

James Chapman

and good morning. Steve Thanks

Before wanted investment mid-point from highlight range, through guidance of Energy’s above I Day in with Investor I our were which the our the quarterly results key were of themes, walk messaging all Dominion consistent to which the March.

communities, At the highest and employees, our our shareholders. to delivered our exceptional customers, level, we our value

to our two-thirds states. our key customers We do state around whose Approximately, energy operations comes affordable, this utility center customers. sustainable providing our and regulated operating by of reliable, income from five

of for our account storage rest utility-centered operating the Our FERC demand for and of customers transmission income. most

the billion our invest of customers income. our to customers. comprise Together, XXXX, XXXX benefit growth will and programs operating the systems these total that $XX capital we improve these strengthen, From plan modernize, regulated approximately of XX% sustainability through regulated-like of to in and

and on three by this our employees. being stewards safety in the focusing live we extensively environment, of do will more of and relentlessly communities nearly remarks. with these by touch responsible topics we work by the on Further, engaging his XX,XXX in which Tom

we Finally, our consistently by and guidance financial are that results dividend do within growth. for this earnings delivering

As an in long-term results operating also at consecutive quarterly range midpoint or share guidance of the weather-normalized growth that earnings or per our of normalizing. XXth this we quarter delivering quarter’s guidance. above are above are quarter the the consecutive also today, And annual range represent being of the example, and without weather our XXth reaffirming and

we third earnings increased segments Turning our now utility per by of our to today reported Strong share. share X, better-than-normal earnings weather, $X.XX operating aided of was quarter $X.XX $X.XX XXXX compared quarterly to share. $X.XX across per results performance about Slide on range to per by which guidance

is were the operating of above for earnings the weather, quarter for Adjusted per normal guidance our midpoint also share, which $X.XX range.

GAAP of were earnings milestones reconciliation On last be call. for per since summarized found several earnings operating Schedule share, X, we've the Slide can achieved $X.XX reported kit. release of to X on the earnings a our quarter earnings

under electricity Contract Utilities X. with October on Carbon the sell began First Zero to Millstone Power Connecticut

Millstone’s hour. recognizes and Millstone contract, region. incorporated state for megawatt is of into per the million which the impact at a tremendous output of of Under the existing for will XX-year attributes and the value per environmental representing fixed year, sell hours XX% of other $XX.XX electricity plant’s megawatt our the financial contract, guidance X price the This

be capacity prudent to to existing the continue the Note employ the the plant via contract entire we program. not hedging a contract, the expected plant output continue not compensated For does regional will as covered cover to strategy. that by capacity is

and security. to thank and economy, safeguard the ensures the the electric energy collaborative plant, DEEP, We’re who PURA, environment, in to and utilities it viability financial Governor's ongoing employment, pleased as wish the state's work fashion with this we and of office, a agreement thoughtful the

constructive Next, operations commission we for achieve with complete on month. across various a to we in state-level settlement regulatory continue In reached electric proceedings. staff a to ROE our nearly the our rates be course effective results with and state X.XX% interim North based Carolina, normal this

In Utah, expect early rate business first has post-merger which distribution our year. base gas we proceeding, next conclude its filed will

month. Finally, we ROE later proceeding our Virginia of this expect resolution

currently base of to X%. will plus returns The adders X.X% near-term, of updated billion of approximately impact ROE $X in earning the rate up rider

earnings every per We XX $X.XX $X.XX by change per estimate that point and basis rider year. impact share between near-term would ROE in

the complete new to to expect year. this we the end our transition by Next, of operating segment

reminder, a manage are and we to report customer closely way reorganizing X, and shown profile. we as align segments operating As with the and regulatory our their on more Slide

quarter early XXXX to and in results our fourth our earnings During year, guidance we call with expect full-year next XXXX these updated provide segments. conformity

structure the of accessible make highlight company will will As more nature businesses. that believe reporting new of premium discussed our and previously, we each our this

of Turning X. XX, previously to reached On announced permanent in we agreement a with with an intention establish asset. for of investor part to communicated Point as participate capital our affiliated we facility, financial to a equity Slide structure that Brookfield October an that the recapitalization Cove

included contracts billion, program, annual which implied common the five-year the coming completion of just guidance with operational development robust impact regulated and of $X.XX Dominion’s $X including: billion value capital our on the a This no in existing the cost accomplishes are nearly low-growth Dominion’s earnings, our March from with described Day. transaction, reducing annuity at value of or intrinsic from compared growth time enterprise highlighting financing equity levels in redeploying through the facility into the to existing created liquefaction customer the construction employees, of capital objectives, full needs several control over financial efforts key impacts of Investor years at area earnings type preserving a growth already an

finalize transaction, the equity the facility’s intend we later two, XXX% the long-term to parent-level of year, this the to expected which close, debt. proceeds addresses will debt the long-term step capital of upon related of one near in to attractively use as asset future. portion structure is Immediately This we retire

during quickly improve reducing took sheet credit, major we profile. our Moving balance steps business also our while to XXXX to risk

credit will for expect full-year of existing debt charges be that supportive in normalize our credit related metrics XXXX ratios merger our We ratings the with mid-teens. coverage

earnings Moving guidance operating out to Slide on X.

towards assume bottom As variations usual, or earnings cause ranges which from the weather operating guidance be of top to these results our ranges. could the normal

growth guidance across utility electric the capacity as the of refueling Group, the include improvement impact of from commitment programs, fourth the the regulated and initiating factors of For initiatives. Southeast $X.XX net expense to we're absence from last contribution investment $X.XX Zero gas O&M Carbon compared Contract, year the share. Millstone and outage, Positive quarter, per Millstone to Energy of

This sale, to Negative XXXX return our $X.XX to weather. factors midpoint as compared issuances, to no with impact the the last per guidance. normal asset share share quarter original implies of to and guidance of a of year to narrowing guidance $X.XX change fourth include range full-year XXXX our

X% and our and midpoint EPS narrowing we today, plus the operating XXth of the guidance approximately EPS reiterating reported to of range growth Before operating are long-term above XXXX confirming our thereafter. at Tom, I our normalized range. EPS turn it let me for full-year our year, midpoint we of or weather consecutive X% quarter summarize We're expectation guidance over and it next

to call the Tom. turn now I'll over

Thomas Farrell

Thank you, good morning. and Jim

First, performance years. have first that the record a value. few reminder safety last in core that I'm setting the report we safety pleased consistent our is achieved our to with year-to-date is results

the over trend that continuing of last on focused XXXX. We're two months

remarks. his to mentioned Turning X, Slide now address will I in topics the Jim

governance ago, it of and our best latest industries delivers match corporate on and stakeholder embraces as First three ESG information social to disclosure it most the report Sustainability workforce practices, Development we it Nations sustainability and weeks Board engagement, includes Standards transparency. responsibility on report. initiative corporate metrics to-date released well and Sustainable our complete the as commitment Accounting United standards company's comprehensive Global and the It's and the the that Goals. and reporting

million XXXX, than We've the XXX,XXX Dominion In XX% the the rate XXXX of to Key in report decade, the XX% from from from $XX XXX also one XXXX highlights metric raised a XX% nearly is XXX,XXX has company Dominion service. and to emissions social by our hiring entering veteran. planting The of volunteered assets hires contributed in its than betterment which than more more is tons dioxide diverse prevented community atmosphere every infrastructure equivalent trees. carbon in employees million in five new reduced gas and hours more methane since has XXXX. past include

by XXXX, XX,XXX to buses in XX,XXX Virginia for bus the effort In will electric largest emission the diesel our be August, XXX% innovative nation. from of we the road. school the removing Service replace initiative This Electric cars Utility territory in plans reductions in aims the approximately of announced powered equivalent which school

to out not use. then and The vehicle buses to release demand during grid grid are technology allows bus batteries store of the energy of in when periods high the the

become last we natural partnership gas are largest Finally, Foods expanding announced the nation. week, Smithfield in our that with renewable XX:XX supplier we the

are combined XX off the thatreduces will next are the capture our emissions planting total, years new greenhouse XX cars equivalent taking doubling that In RNG XXX,XXX road gas which to to us we over allow to trees. investment million billion $X.X or

our shareholders and of we will from United sustainable and the most efforts. States and innovative benefit companies are one energy our We in that the believe customers

we XX, important several in have initiatives Slide underway Turning to Virginia.

First, design, next key last BOEM Ocean which received scheduled under installation we the Offshore approvals enter pilot year. service from our and Energy late project, Bureau fabrication of Management and to regarding construction month XX-megawatt Wind, the of is

support offshore experience challenge on Northam’s utility invaluable more obtained to and Energy order knowledge accelerate lock we embark State's Order life as pilot construction That in permitting agencies provided scale will direction system, our on Dominion X.X Number from embrace. Executive programs regarding the clear future we Governor the of develop and wind gigawatts the policymakers a we renewables The operations the timeline as with sustainable recent to as be challenge our to XX. of well energy and to

the XXX XX offshore project installation Virginia largest will to together be the each. megawatts Beach service Our XXXX, The enter phases bring the intention Coast online United wind is three in and the in will miles is of of and which taken three States. phases XXXX in located XXXX off

to Commission. Dominion approval Projects State the will cost subject by Virginia recovery regulated Corporation Virginia owned and by be developed with Energy,

of Our current estimates work the will $X.X pilot. billion, ramp-up XXXX. through provided cost expenditures investment Total $XXX in of offshore current Investor and the to to reduce which most to capital for customer Day in five-year in five-year the interest billion we plan wind capital latter XXXX our anticipate significant at inclusive for hard with part additional million of place Preliminary savings. $X plan identifies we take our the

with policymakers, United Efforts to establish of year. closely working center Construction late States include wind the to offshore as regulators and of for to We is the Operations the work development underway other Ocean forward Survey look next and targeted Plan, stakeholders which Virginia industry. the BOEM and submittal presently

We programs will Offshore many for for past the investments with of filed second complement make January. details already cyber the we by of accordance one to Grid just benefit physical execute Security security and continue make investments additional the the we SEC continue to Transmission and of Transformation the to this wind on as telecommunication and phase progress. Act. Grid in weeks ago, Four our a approved we available is customers investment that

customers XXXX, a developed calls several as will from customers over over of investment and with through implementation thorough and This of benefit of input cost analysis. through second which as new new months, well series phase to programs $XXX for enhance technologies, stakeholders third-party past service million a the capital

will in and driving Commonwealth, gas that range vehicle significant all investments economic analysis providing to the growth while increasing deliver down benefit customers -- reductions a areas, emissions, in electric savings concluded That also owners. across driving planned wide to of greenhouse the

manage new This as meters, energy phase of nearly customer customers smart to platform well installation the use. as their allows digitally information one includes million a which

expected thereafter. about in with months determination prudency is determinations recovery six Our

over billion XX-year Overall, a programs we total investment transformation grid period. to $X expect our nearly

we with country. announced will use, renewable previously an roughly make Virginia the XX% Finally, largest enough the annual combined the the produce energy announced of to is of procurement that which two in state agreement state weeks energy ago, Commonwealth with renewable contracts government’s power

megawatts XXX the new balance the will will to output To Agreement. accomplish solar the and megawatts farm. third-party Dominion approximately wind sell long-term facilities from of Purchase a the state owned Power The under own come of this,

by service made resources XXXX. With in these in are megawatts halfway fulfilling we or to commitment and wind projects, have Northam nearly of the solar to development we under Virginia X,XXX Governor

Slide XX, have summary related to Turning to we GTSA. provided capital of investment the brief a

that state As significant have policymakers you implementing crucial been in our by for successfully programs can as are state. identified steps taking see, we

Over in with approximately last approved $XXX investment several additional has pending capital SEC the an approval. billion months, $X.X the of million filed

Virginia's third environmental upgrades rider nearly statewide for approved the Since Commission of to took in was generating last the $XXX our election During units. that related E the request Rider recovery ago, quarter, path common Commonwealth statutory million puts power. on bipartisan place which basis, certain have that to and on a years the a modernized continue of two firmly and delivery low affordable carbon resilient policymakers supported sustainable legislation

the and and XXXX. solutions in XXXX ash in comprehensive include Transformation and Act Notable world Security Grid examples coal broadband

they as intend today. priorities, keep we on the rates execute policy to vigilant we As impacts. these and fuel competitive in just remain We future, reasonable are customer of

Pending strong in including replacement customer our across is investor the five-year our with franchise. line Slide Turning distribution CapEx very growth plan billion highlighted continue investment rider XX, day. see programs, gas tracking approximately $X to at under to we our pipeline

regulators Last our annual approved Public reliability will us Utah peaking West And driven approval in received proceed replacing LNG double a Virginia, XXXX. a in recently facility. infrastructure week, in that investment Service plan our we with to regulated investment allow at from to Commission

and service Dorian North South focus customers Coast, over experienced In Carolina, successfully. as In proceed September, the on customers disruptions. integration excellence our electric swept our operational nearly well South of to Hurricane our of Carolina efforts XXX,XXX as East early and as XXX,XXX Carolina up Virginia continued

clock the quickly to around safely conditions crews and hazardous worked power. in restore Our

XX% restored in fact, service all Carolina, our was states, customers three of lost three than including nearly In days. where less power, South in

and for also as need. as supplies, donated our support As purchase Red Carolina, in part North Virginia, the efforts of commitment shelter to we American Cross food to $XXX,XXX South relief the across those to well

decision Atlantic Consistent ACP’s the Coast to the expectations, Circuit pipeline Appalachian the our underneath crossing to States United with which XX. of Supreme Fourth Slide granted next Karl appeal Turning Court on the our Trail. relates

or We will winter arguments schedule next no expect that early Supreme later the final XXXX. June spring late than a with of Court occur decision to year

We’re legal the will be position Circuit’s overturned. confident and that ruling Fourth our in believe

remain the Court available. Supreme but on remains focus Our options appeal, all other

Let me address other two also points.

Regarding biological window. biological opinion reissued opinion that the project’s order prevent in on winter’s the will that four from species the court's this reiterate expect our there last we I being commentary during opinion, felling would a is nothing tree from

AT of if the not reissues even BO from do timing advantage first of the of billion through provided prevents existing us this end billion However, range full to incorporated of the and This appeal. a of including change. expect we cost year, taking which half successful resolution timelines, construction the variety potential window, recommencement cost to $X.X the project early including next estimate $X.X a the Court year, we at Supreme to permit

undertaken past be air compressor to construction XXXX. minor arguments project Buckingham conclude This have station, remain regarding confident by the permit, has an our to Tuesday, States. adapted any adapted to at stringent with as protections station than address United both more and community the in – address extraordinary steps required applicable process the input most for the the controls by to expect XXXX commissioning to early continue full in completed Circuit with of source heard site we appeal law. Department that end the We the of compressor provides Fourth satisfy and

line emissions health will applied standards We meet the environments. even the the most added have and demonstrated populations to station is public measured beyond sensitive fence highest

We next the court within three to the ruling issue months. expect a

that needs customers with since current be will our project to last continued the also project the even more have customers to to of resolved. volumes pipeline this to I'll call, the time Coast significant deliver expect note be advance we Atlantic resolution quarterly cost permit discussions able timeline, We if equitable under regarding increases.

returns. an reach of end that result agreement with satisfactory and expect are rates balance by to principle we project confident this customer the We the in will year,

and critical infrastructure demand common unwavering. Our is customers this sense for energy

year. Turning reporting currently take Generation. CEO Blue changes Power early Bob new will later reflect several Group financial month, leadership structure operating announced responsibility group assume will Delivery will transmission for and and Dominion to to of the the better we Dominion Contracted Slide that effect this Carolina, of and XX, currently and Leopold, last for Gas assume Energy Diane Infrastructure Energy Dominion distribution. gas Energy storage Virginia CEO responsibility South Gas

and the continue will Chapman, addition, In Co-Chief will and Energy Administrative directly Chief for report Chief Reid, Dominion of Operating Dominion President Compliance currently Diane, Diane to Bob Financial of Carter each and will the me. Staff Jim assume Officer become Officer. and Energy title Officer Treasurer to Services. the Bob, Carter Chief and of

well exceptionally months execution strategy dedicated the want in of congratulate to I coming our are years leaders in will Paul play thank many retire to Koonce the These of also roles our his important and for I to who qualified long-term them. service company.

best we release be And will him contributions I today's missed. as summarize the His all in follows. future endeavors. that, wish will With his very

full-year safety to of are leading results matters. to governance social We performance industry to and years, track take consistent innovative our record achieve continue demonstrate that are setting on with we on steps leadership recent environmental,

consecutive range weather earnings, normalized operating achieved the our quarter. and We're original full-year of affirming XXth earnings the guidance per midpoint our our narrowing XXXX share guidance operating We exceeded midpoint. for

next our benefit across the programs progress long-term reiterating EPS thereafter, our We’re and and making X% X% of our to investment year capital growth expectations of approximately we're significant customers. plus

happy questions. answer be your to will We now

Operator

Instructions] open you. Pourreza ahead. from we question the first Guggenheim Please is Partners. We'll Thank floor and [Operator time, with go Shahriar will questions. for that At our this take

Shahriar Pourreza

Hey, guys. good morning

Thomas Farrell

morning. Good

Shahriar Pourreza

questions couple So, you a Tom, obviously highlighted of here.

a you I'm if said kind be you of we opportunity right? the thinking on construction bit long, around you're a development little could to guys and And start you it with construction, we've then through offshore huge know terms, how contingencies around wind financing. bit about in talk just go curious could the contract seen as the permitting, vineyard. obviously You maybe with projects cycle highlighted have little

projects are about the I future should cash generating. tranche of the flows projects, they first we self-funding mean, think the with

So a maybe how be of the we outlay? should what about of capital could very large think sort financing

Thomas Farrell

turn rider start time spent we Chapman to amount any rider would this an questions phases. will who on financing. then all seek development, Jim and mention working Paul over can answer the Koonce are I'll further for I'll we approval three expecting enormous of Thanks. it I and on recovery and has

on bought working for the lease variety rights been that six sure BOEM. us run help been right We've in project of since time, the this was to do we've lease plan right make years. And auction had had that and folks right We the working we stakeholders we to a a option, by pilot. XXXX with the ever the

We Commission, we got from it’s have approval the State through been permits the BOEM. BOEM, for Corporation

in keep own is to in from It things is we coastal mind the XX it the miles shore. not that is region for visible the grounds us Virginia, the fishing entire offshore. differentiates of New ot and of One England not and is lease situation entire from the

to the So, what England, it's very but significant over on New level, I'll macro question. the differentiating and aspects turn of your it happen of in Virginia Paul in to what's and answer here balance seen you've from going

Paul Koonce

Shahriar, Tom. morning. Thanks, good

As this Tom been for time. we've mentioned, some quite at

permit about got in time We’ve order the get time in in next the construction. to place the construction and to permit prepared We phase Tom remarks, meet operating year. first ample this expect, file as his BOEM mentioned to

commercial on good identical, operating permit was it. the comment is process a we a project, place now, is the will this through I'll studies, the gone it starting process stakeholders, over to Tom about mentioned, area We the And and the pretty XXXX. work, geotech having, will the that mapping, permit. ask know on of ocean we feel know the well that course the we and take and environmental research The and just that as really work Jim CVOW having financing. be

James Chapman

remarks wind highlighted XXXX our in things, in spending in Yes, detail in two mentioned Tom through of walked plan we $X.X one from his back Shah, billion that our March, we prepared to is existing as plan offshore in some XXXX. in

years larger obviously announcements much XXXX. of majority completion come that. So, XXXX, than are recent going XXXX, The in to dollars increase vast of the those is

and what update in come construct this described, So and the regulatory our plans closer, time but we our over in the comes It's spending come is Tom given majority as just is in of time period. through, will that planning at next to Vepco. horizon already all but current achievable, the the a be walked certainly we details to Paul rest financed the in will

Shahriar Pourreza

that’s it, Got helpful.

there is you time five from wind, seems range point from the sense plan, plus picture when sort it Virginia, shaping in to know your becoming rate a I plan is your growth, the there the is a it's incremental status, a just offshore more more past of Point, VRP, VRP plans guide we around profile, you going, any what in trying and just model Cove your how maybe of between Just wind, is as can offshore of comments how is retirement moving bit way that i.e. little much we're is then have grow, accretion especially is visible. like bigger to the it's of because O&M change supportive the on program a and

in range five definitive layer plus? more in a when there growth is point So, start time of you to can versus a

Paul Koonce

mean, have does you beyond things I a good Look linked our what horizon. job. our offshore five-year Shah, the it's to quite question guidance, into there, one planning that few wind,

it’s billion spending just on earnings walked plan, as changes our through and our I guidance. are There the for earnings $X.X including So, that that’s pilot, no in any the associated front. now I mean in the

it's that of this is talked a run right, that about year earlier next of, a are done and customers. time this on the diminishing full maybe $X.XX We back year to savings rate being given double kind and as dusted that $X.XX to as it, year. On VRP, over you call

this unforeseen that an of headwinds, as in about exposed But majority that's you the offset and XX% as the case. to -- our as that's year, commodity the available update regulated vast being X% still not is. savings is regulated, our that way, business, it business like of we know, not So talked any

And X% weak, our that. to there's business and environment of things. couple gas our is obviously within commodity is a that immune the One earnings, is operating largely

bit processing our We Virginia, mostly which year. a in single of little exposure, of businesses remaining and plant, around little a even have to bit very is smaller from as West go a headwind those this like small that's

So headwind, guidance successful our that a that has we this give monetizing of farm-out to But to on like field. well of million earnings. not given that very XXXX. that, available bit clockwork, to kind is today, little blow decade in of materially is choosing We though, the the this to commodity been through pre-tax and end of know, early of farm-out that's resources, XX% you taking storage And acreage a Shar, $XXX mineral program pricing, as the given program we've we’re been transact us And along and that the year. this guidance. we're the announced that $XXX million pricing environment

going to commodity future net environment. farm-out an that pricing improvement when for to, value we're And acreage, going in the hold transactions periods there's in we're

we is in So obviously just what reiterated the that guidance our means midpoint.

farm-out to decision, on any we've transact means that unforeseen our a unforeseen headwind overcome related year. not So previously this to

other that using initiatives decision. to it described, overcome pretty VRP basically savings So savings much and we the as VRP which that is we're would. we

no the guidance, change those are parts. our So to

Shahriar Pourreza

so you thank much. guys, Perfect,

Paul Koonce

you. Thank

Operator

Thank you.

Fleishman next with Wolfe Research. Steve Please take question our from go will We ahead.

Steve Fleishman

Yes, good hi, morning.

Thomas Farrell

Good morning.

Steve Fleishman

Tom. Hey

obviously How is that structure of plan wind different from for so cetera. could or be know bid offshore to that? Could to to about going will to that that the it people it, far any do you approved that your really talk want there other be in done, be try be you regulated So done business. it's et

Thomas Farrell

center the I for Sure. own if the ago Northam embrace. Well, XXX% in guess Coast of it a the his the wind offshore pay along farm Governor lease, of couple months Virginia. only and offshore a this that's construction nobody owns because wind into the industry can lease. developed called farm offshore of we the you help for now that auction, East wind intention of Virginia build that of the we to the else challenge off we're one We it's

recognized policy was in And work that for may to to place we that push went ensure on it back he supports was hard necessary going statements with specifically plan. that that that announcements, regulatory want carry was after he out thing said good he to required those very full public this Virginia there that, or and to our only some it be who whether deployment. the And ahead a

been Although we had we interconnection agreement. PJM working obviously because filed the for

from there's the So fence, on Democrats thing see There we both us, Republicans front carried fruition. are be both and of including political to it sides lot that in process want of a will leaders obviously to of is project, from happen. political a confident out highly public support this this this for

from only it not It have, forward. but there shoreline. confidence So level go we the it, It'll obviously to way we going the Waters. visible in be have offshore on farm high Federal in will wind are long be

you Tidewater, community these concern project the of impacts of have supportive very forward. going visual The is any Virginia going development economic people. Environmental of forward. don't of this So are people supportive In very

level don't guarantees but Steve any high we the confidence have in a of outcome. we obviously, So, very that have

Steve Fleishman

you. Okay, great. Thank

Thomas Farrell

Thank you.

Operator

you. Thank

We America. of Julien will with take ahead. go Dumoulin-Smith our next Please question Bank from

Julien Dumoulin-Smith

team. morning, good Hey,

Thomas Farrell

Good morning.

Julien Dumoulin-Smith

with the out you're it today, and starting question except given of qualify in more SEC the at the on if little perhaps question, talk compliment about that on qualifying you ways the to a And come maybe bit then precisely offshore when just and filings but to all separately, theory, the receiving number. wind you and costs sum you to But more talk last for some longevity should congratulations level? another game pile mitigate here, plans then this and can just following perhaps first promotions the those definitive finding this front, the you of pursue the about plan, plan tax here to credit actually to consumers,

Thomas Farrell

who congratulations. heard Well, just to macro Julien. they over in On the And promotions Koonce. me Paul folks base answer, the let turn you room, are give a macro your the a got I'll and

we We about customer with here them national are to and our now well rates. very the are the ensure for stay below we is intend competitive, very wind stays below all focused that of farm. something averages that And rate this on because regional way averages, customer including It's they concerned construction the to our time. goal

developers, working installers. be very fabricators, with the hard will we So

will we We down which project. go involved as be with will helping can everybody low us ahead, operators we get cost the important to the as ensure as the we be that for

that, I'll to with turn it over So Paul.

Paul Koonce

Tom. Thanks, about let follow why to up mature, up key the the Julien. minimized. in so comments phases, continue impact we to that the that broke Tom's rates let of continue the Again, think reasons could project just we that's three morning, Good on supply costs down, come so I are one to the costs, chain

safe an Just that to farm of ITC, comment in that don't you anything we We're we're about have costs. as for a this in have of know and year. wind begin for order in you construction treatment harboring, offshore certain looking terms can of at ITC, course qualify to be to timing. harbor to of that, may There that, those do some aware things we but safe

come So to on XXXX. in more we're before that

of not for we can But when file next going meetings this plans application. SEC to prepared tell we're the for filings as say the public We're terms and not Tom I year. application over will file to BOEM to many XXXX. said, we're of conducting be the In going that time course we're you exactly

and assessment, obviously, doing lives, we be As ocean sub-service will we the be marine analysis mapping analysis. environmental doing geotech plant birds, or will and make

out will that think I to you to sort play XXXX. expect be begin that good sort And to see So filing. way of pace in all SEC of will we an a when make might

Julien Dumoulin-Smith

it. to X the too, Phase question you it, just the of this see as much But five-year last window Got will? in if clarify perhaps is how you

Thomas Farrell

billion for $X.X as and March total got we've in mentioned, as five-year walk that's plan in in now we Julien, the number. through our

Julien Dumoulin-Smith

$X That that? is added million to

Thomas Farrell

XXXX, in That’s XXXX, right, XXXX. everything else comes

Julien Dumoulin-Smith

clarify to the on does just enough, Fair right. XX, one the then all order prior Okay, excellent and

applying the that to change that going process? the criteria SEC in be is that

Paul Koonce

is The Paul. interest. offshore GTSA in this is that the public finds Julien, wind

the SEC Now

well that's conduct process that generation test benefit the a a that follow ratepayers, well just when we'll step build we of to the how we they whether is know process known we there's market comes. process they and for and time and certain anytime, that our

Julien Dumoulin-Smith

Thanks for patience guys. the

Thomas Farrell

Thank you.

Operator

Thank you.

from We Greg ahead. with Evercore. Gordon go our question will next take Please

Greg Gordon

it the like on feel I the, commentary that feel hearing you've was comment feel Thanks I'm from ACP, year, on of now Shah’s question you first was, parks in, permit, your negative. you of read but this I one even in It question the looks concerned back less reaction my the of budget? schedule XX I was construction the feel first biological and your school, move felt right? but we should is the because kind guys. the slippage costs scrubbed can I and like kind it, question even you there less. when release, permit turn still could around the to comes if guess like in like On if forecasts be like after

Thomas Farrell

Thanks, Greg. Atlantic life Leopold, spends I'll a Diane? of Coast turn pipeline. it her on the Diane to who working over lot

Diane Leopold

construction. guidance it, capture a contingencies including think to Court, When different to scenarios of at looked this lot looked a we try to when the gave of restart a Yes, you right. when and of earlier lot Supreme going including we we exactly at year, variety haven't outcomes, different we would I

given the of just this we schedule we've the what and incorporated so comfortable cost different within segments at with both well that, at feel we point. for And are looking pipeline,

Greg Gordon

slipped they just they're Can stay why sure else another have make to more Is that of may going being few extra and months? sense you it is careful the a of us that there get remand comply the or give permit something don't on? all the some with nuances

Thomas Farrell

work don't still I is, schedule the to we and is think say imply on we're What that trying cost. the it slipped. does, to permit Greg, even we're think if trying

Greg Gordon

Okay, great. My question… last

Thomas Farrell

it’s I slip. think to going

Greg Gordon

question, driven it. you're sorry offtakers building the with to who This sorry. a is not need negotiations situation. last mainly part utilities. a I of which gas, Okay, my pipe, is the the demand supply that. you It's I'm they if misconstrue why The on push are talked pipe

the being its to utilities seem But way that a the cost that up doesn't are concerned cost to those should with able capacity. investors of share unexpected who it be the taking that capital. overruns, of potentially be you think winds burden increases I are earn this a in positioning pipe such with you the cost

to much unforeseen you'll if you're think what we of on So type be the expect you pipe, successful? delays can of in you the able given and return pipe you that through the talk are, share should how like

Diane Leopold

project Yes, again, for actual the pipeline their This expected as returns a script, fair won't for I returns, with you, demand us very rates fair customer are the for actual that Tom needs. customers security, clearly their And into Leopold need customers the we said, own the this in in will more as with the well I is pipeline. regional comfortable pipeline. much this tell constructive for is driven Diane negotiations to as returns very customers get the for and we’ll get

Greg Gordon

Okay, very much. thank you

Thomas Farrell

Greg. you, Thank

Operator

you. Thank

We will from ahead. Please question Christopher Turnure take with our next go JPMorgan.

Christopher Turnure

Good morning, guys.

Thomas Farrell

morning. Good

Christopher Turnure

strategy just and Tom, me, Carolina guys on regulatory us that thinking you Carolina of year, I in last your prepared also the now remarks how an could next political environments, and your in latest and on Virginia Virginia. both but update right to South Carolina are political Carolina, in lot or regulatory South South you for environment kind think North about environments of pardon you the from time the And a spent year? give legislation the

Thomas Farrell

guess was process the was plans. the guess then summer the SCANA the through the the Carolina SCANA hot South in, I it because business in cancellation late Cooper’s going I Carolina political year South and the over XXXX. spent merger, relatively a of of expansion it climate announced XXXX We Sure. Santee And and

to closed intention to was stay out to that and of We we and of much said the all process and electric the headlines all rates answered And questions, through policymakers that our transparently, blocking meetings. our be and tackling went electric reduced community. provide gas part whole reliable the went service, the we reasonable at as just both transaction, the very then, through

the the things days. their that's communities neighbor. of loss goal. Things we do new headlines well. Carolina. three extraordinarily That our the including restoration are understand that in prompt got the the the all All South there, back moving of their serve, what's was of community State helps, lights electricity of for customers progressing very our XX% in well exactly of happened in We're we except when along And very out

filing will next in are earning a that rate and we're we we We to it’s everybody will under case year, now known formulating filing be completing May. well Carolina, but South be in and strategy IT regulatory

James Chapman

We before May can file X.

Thomas Farrell

May of XXXX. Before X

North Now Carolina. in I'm sorry,

North have a in file We rate case

or North we but Carolina, agreed relatively and in issues them very all be one small settled constructive environment consider regulatory to economic development have we ROE, got on two, Carolina. environment X.XX%

Christopher Turnure

And if Republican, would talking that the been you've capital change in plans today, shift in of the all some spending that your Virginia, of or at legislature direction? stays about different kind

Thomas Farrell

changes Governors, any in parties long so history with whatever majority our houses, plan. Democratic Republican whatever to the a and leaders, have working expect Republican in of the to two not we Democratic No, leaders Governors,

Christopher Turnure

is question needs then and going my forward. Okay, just on equity second

will next existing mean you think sale external that years? your you the internal this partially in for or will any I in need Point prepared several equity, of But remarks. not Cove addressed stake the

James Chapman

Jim. back Yes, our, to it’s going

ATM. had regulated to analyst of per our through on day $XXX back to DRIP component $XXX shown as spending in support million a our our to million XXXX that of back $XXX and of capital had Going million guidance year March, projection from we equity

So all programs. of the number

as will XXX% financing, guidance the we ATM in offset level of using portion XXXX. prior XXXX Cove year-end $X by parent and pay to we debt I of effectively the proceeds With down those are that billion mentioned, but

midpoint $XXX that goes But zero. taking so that of So the $XXX always million the DRIP is to DRIP, to is $XXX million, to million, on.

remaining So years. the only that those that's active program will for be equity in

Christopher Turnure

Okay, Thank that's you. clear.

James Chapman

Thank you.

Operator

Thank you.

take go ahead. Michael Credit our from next with will Weinstein We question Please Suisse.

Michael Weinstein

guys. Hi,

Thomas Farrell

morning. Good

Michael Weinstein

or at there just On in this the Cove ownership? additional Point stake now good -- of selling in minimum morning. an any Point you're level desired Cove interest is Is point now at

James Chapman

in interest question. for no There's that you our desired outcome. Thank

Michael Weinstein

that discussions the with increases in embedded cost the talks customers, And over current $X.XX agreements? ACP I just Okay. are the think currently billion that's to the in the the in I be agreement wanted above clear

Diane Leopold

anticipated contract, Yes, it's but negotiating anything basically level. current in to the I cost disclose won't the increases up

Michael Weinstein

on this And the what before anything it is you obligate can at face contracts about there of say those at, party point negotiations? each

Diane Leopold

disclose thing. want to that we don't no, No,

Michael Weinstein

suppliers? had the for last think one Virginia have looking can permission you and point, alternative has C&I against some the question Virginia renewable Virginia compete -- just had they is so customers received and utility renewable know tariff, you Okay, I at tariff major has suppliers to have these about own I this guys its renewable in

Thomas Farrell

I will to that question. ask Bob Blue answer

Robert Blue

it’s Bob. And Michael,

our earlier can an for a utility for from this have know provider tariff, tariff as we law, competitive application We pending service a seek in Virginia energy renewable year. service one has filed unless renewable customers XXX% XXX% you

But is was and have raise to hearing significant the closely yesterday not one on and on Commission. proposal that that testimony did by filed filed approved our Corporation the in their modeled earlier not November, the that we objections Commission staff State one

very feel will about good go. we that So where

Michael Weinstein

you. Thank great. Okay,

Thomas Farrell

you. Thank

Operator

This does Thank morning's call. conference you. conclude this

may and your now enjoy lines your disconnect You day.

Dominion Energy (D) 1 Nov 192019 Q3 Earnings call transcript