Dominion Energy has sued the Trump administration after a federal order halted work on five offshore wind projects, including the US's largest offshore wind farm in Virginia, citing concerns over national security risks from radar interference. The projects, already under construction, face delays and increased costs, with legal proceedings underway to challenge the order, which is believed to be politically motivated to hinder offshore wind development.
The article highlights the biggest stock movements during midday trading, featuring companies like Dominion Energy, Paramount, Rocket Lab, and Stanley Black & Decker.
The Trump administration halted the Coastal Virginia Offshore Wind project and four other East Coast wind projects citing national security concerns, leading to a drop in shares of Dominion Energy and other developers, and raising concerns about energy reliability and jobs.
Eversource, Connecticut's largest electrical utility, has filed for a rate increase that could raise the average household bill by $38 a month, attributing the spike to a 2019 state deal with Dominion Energy and initiatives adopted during the COVID pandemic. The company has proposed solutions to shield customers from "rate shock," including phasing in the potential rate increase over time and changing the ratemaking methodology to forecast costs and avoid future issues.
Thousands of customers in southeastern Virginia, particularly in Chesapeake and Virginia Beach, lost power due to severe weather on Tuesday, with Dominion Energy reporting over 19,000 outages. The company expects a multi-day restoration effort as the storm, bringing heavy rain, severe thunderstorms, and strong winds, impacts multiple service areas in southeastern Virginia and North Carolina. Dominion Energy provided tips for storm preparation, including downloading their mobile app to report outages, staying away from downed power lines, fully charging devices, properly connecting generators, and preparing food, water, and emergency supplies.
Siemens Gamesa Renewable Energy has canceled its plans for a wind turbine blade production facility in Portsmouth, Virginia, citing the inability to meet development milestones. The $280 million-plus project, which was expected to bring over 300 jobs to the region, has been scrapped. However, Dominion Energy's offshore wind farm project, the largest of its kind in the US, remains unaffected. The cancellation is seen as a setback for Portsmouth's aspirations to become a primary logistics center for the Mid-Atlantic's offshore wind energy industry. Despite this, other recent developments, such as the approval of Dominion Energy's wind farm and a grant for an offshore wind logistics facility in Norfolk, position Hampton Roads as a potential hub for offshore wind manufacturing and job creation.
The Biden administration has approved the construction of the Coastal Virginia Offshore Wind project, which would be the largest offshore wind farm in the United States. The project, to be built by Dominion Energy, would consist of up to 176 wind turbines and have a capacity of 2.6 gigawatts, enough to power over 900,000 homes. However, the offshore wind industry is facing challenges such as rising costs, supply chain delays, and local opposition, leading analysts to predict that only half of the administration's goal of 30 gigawatts of offshore wind power by 2030 will be achieved. Despite these challenges, some projects, including Vineyard Wind in Massachusetts and Ocean Wind in New Jersey, are progressing. The Virginia project has received approval with conditions to mitigate its impact on local fishing areas, wetlands, and whale migration routes.
This week will see a flurry of earnings reports from major companies including Apple, Pfizer, McDonald's, CVS Health, and Dominion Energy. McDonald's is expected to report Q2 earnings with potential signs of caution due to valuation concerns, while Pfizer's results are anticipated to show a decline in EPS and revenue. CVS Health is scheduled to release its Q3 results, and Apple's earnings report may reveal weakened demand in China and disappointing holiday quarter sales. Dominion Energy is set to release its Q3 earnings with anticipated Q/Q growth in adjusted EPS.
Jim Cramer advises against investing in Blackstone due to lack of transparency, recommends avoiding solar stocks like Sunrun, prefers PSA over Extra Space, suggests caution with Fifth Third ahead of regional banks' earnings reports, expresses concerns about Dominion Energy's management and dividends, likes FMC as an agricultural play, advises against BP in favor of independent Permian companies, and warns against investing in Paramount due to its troubled balance sheet.
Dominion Energy has announced agreements to sell its three natural gas distribution companies to Enbridge for a total value of $14 billion. The transactions are expected to be completed by the end of 2024, pending regulatory approvals. The proceeds from the sales, estimated at $8.7 billion after taxes, will be used to retire debt, resulting in improved credit accretion for Dominion Energy. The company plans to conclude its ongoing business review and announce a repositioned outlook in the fourth quarter of 2023.
Dominion Energy and the Metropolitan Washington Airports Authority have broken ground on an 835-acre solar farm near Dulles International Airport, which will be the largest renewable energy project ever built at a U.S. airport. The project is part of Dominion's plan to add 16,000 megawatts of solar capacity by 2035, in compliance with a state law requiring 100% of its non-nuclear energy production to be zero-emission by 2045. However, rural counties in Virginia are pushing back against the solar expansion, citing concerns about the loss of farmland and increased costs. The Dulles project will add 100 megawatts of solar generating capacity and 50 megawatts of battery storage, enough to power about 37,000 homes.
One person was killed and another injured in an overnight home explosion and collapse in Mooresville, North Carolina. The 6,391-square-foot home was a total loss, along with several vehicles. Dominion Energy is investigating the explosion, which occurred at a customer's residence. The cause of the explosion is currently unknown.
Berkshire Hathaway Energy, led by Warren Buffett, has acquired a 50% stake in the Cove Point liquefied natural gas (LNG) facility for $3.3 billion in cash from Dominion Energy. This purchase adds to Berkshire's growing investment in energy infrastructure and grants them control over one of the few functional LNG export facilities in the US. The Cove Point LNG Terminal has a storage capacity of 14.6 billion cubic feet and a daily send-out capacity of 1.8 billion cubic feet. Berkshire Hathaway previously bought a stake in Dominion's gas pipeline and storage assets in 2020.
Dominion Energy has agreed to sell its 50% stake in the Cove Point liquefied natural gas facility in Maryland to a unit of Berkshire Hathaway for $3.3 billion in cash. Upon closing, Berkshire Hathaway Energy will have a 75% ownership stake in the facility. Cove Point provides liquefied natural gas to replace coal-burning power plants and support energy needs in 28 countries. Dominion plans to use the sale proceeds to repay debt and focus on state-regulated utility operations. The transaction is subject to regulatory approval and expected to close by the end of 2023.
