Dominion just posted six straight earnings beats while its data center pipeline swells past 53 gigawatts, but Virginia regulators are threatening a freeze that could gut the base-rate growth powering the whole story.
Dominion Energy (NYSE:D | D Price Prediction) is expected to report third-quarter results before the market opens on Friday, October 30. Record data center demand continues raising earnings. At the same time, Virginia officials want a six-year base-rate freeze as the price of the NextEra Energy (NYSE:NEE) merger.
Six Straight Beats Run Into a Political Wall
Last quarter, Dominion posted operating EPS of $0.79 against a $0.68 consensus. That made six beats in a row. Revenue rose 17.6% YoY to $4.48B, and Dominion Energy Virginia’s operating earnings climbed to $670M from $549M on Biennial Review effects and rider equity returns. GAAP results looked worse. Nonregulated impairments of $626M cut net income to $340M.
Management reaffirmed 2026 operating EPS guidance of $3.45 to $3.69. Since then, the politics around the deal with NextEra have hardened. Governor Abigail Spanberger and State Corporation Commission staff oppose the merger. They are demanding a six-year base-rate freeze and tripled customer credits. Even so, shares have gained 14.73% year to date, to $65.20.
Consensus Calls for Double-Digit EPS Growth
Metric Consensus Prior Year YoY Growth Q3 2026 EPS $1.1933 $1.06 12.6% Q3 2026 Revenue $4.80B $4.53B 6.1% FY 2026 EPS $3.5857 $3.42 4.8% FY 2026 Revenue $18.16B $16.5B 10.0%
The Q3 EPS estimate has slipped from $1.2059 60 days ago. Analysts made two downward revisions in the past month.
Freeze Talk and the 53 GW Pipeline Will Set the Tone
Mostly, I’ll be watching how management responds to the freeze demand before Virginia’s formal hearings begin November 17. Rider returns and base-rate increases drove this year’s Virginia gains, and a six-year freeze would cap the base-rate side. In July, Robert Blue pushed back: “We don’t think it makes sense to change the rules in the middle of the game.”
Demand remains the strongest card Dominion holds. The utility has over 53 gigawatts of data center capacity in various stages of contracting, with about 12 gigawatts under electric service agreements. You should track whether that signed figure continues rising, because signed contracts are what turn into rate base.
Offshore wind is the third test. The Coastal Virginia Offshore Wind project was 81% complete, with costs revised to $11.65 billion and final turbine installation pushed back 6 months. Any further decline would matter.
Finally, watch the new resource plan. It proposes nearly 9 GW of new gas plants and only 3.5 GW of battery storage, against Virginia’s 16 GW storage mandate. Dominion has also sued Prince William County after local supervisors blocked a substation overhaul.
A Freeze Would Rewrite the Growth Math
Dominion’s target of 5% to 7% annual EPS growth through 2030 depends on a $64.7B capital plan making regulated returns. The demand is clearly there. What’s uncertain is how much of that spending regulators will let Dominion recover. If management shows a merger path that avoids punishing freeze terms, the rally has support. If those terms stick, the company’s stated lean toward the upper half of its range for 2028 to 2030 becomes much harder to defend.
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Source: 247wallst.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
