Dominion Energy

Dominion operates monopoly electric utilities with exclusive territories in Virginia, North Carolina and South Carolina. This efficient scale and the regulatory compact create high barriers to entry and durable customer captivity, reinforced by critical transmission and distribution networks and nuclear/offshore wind resources.

We assess moat components as follows: Efficient scale 85/100 (regulated monopoly, large T&D footprint, PJM projects awarded), Intangible/regulatory relationships 70/100 (constructive but exacting oversight with defined ROEs and rate mechanisms), Switching costs 75/100 (customers cannot practically switch providers; self-generation and DERs remain partial substitutes), Cost advantage 55/100 (scale helps, but fuel mix and project execution can erode advantages), Network effects 30/100. Weighted, this yields ~73. Risks to moat durability include: distributed energy resources, federal policy volatility that temporarily paused offshore wind in Dec 2025, and potential adverse rate outcomes if data center cost allocation is challenged.

Recent actions such as a dedicated high-usage rate class and PJM-approved transmission projects support moat persistence.