Dominion Energy

Dominion Energy, Inc.

Company type	Public company
Industry	Energy
Founded	1909
Founder	Frank Jay Gould
Headquarters	Richmond, Virginia , United States
Area served	Virginia, North Carolina, South Carolina, Utah, Idaho, Wyoming, West Virginia, Ohio, Pennsylvania, Georgia, Indiana, Illinois, Connecticut, Rhode Island
Products	Electric power generation and distribution, natural gas distribution and transmission
Website	www.dominionenergy.com

Dominion Energy, Inc., commonly referred to as Dominion, is a U.S.-based energy company with its main office located in Richmond, Virginia. The company provides electric power in select areas of Virginia, North Carolina, and South Carolina, while delivering natural gas to customers in states such as Utah, Idaho, Wyoming, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina, and Georgia. Additionally, Dominion manages power generation facilities situated in Indiana, Illinois, Connecticut, and Rhode Island.

In September 2016, Dominion broadened its operations in the Western United States by acquiring Questar Corporation, which serves regions within Utah and Wyoming. Later, in January 2019, Dominion finalized the purchase of SCANA Corporation, enhancing its market position in the Southeastern energy sector.

Overview

Dominion’s assets encompass 27,000 megawatts of electricity generation capacity, extensive electric transmission and distribution networks, and a vast array of natural gas pipelines that include transmission, gathering, and storage systems. The company also holds substantial reserves equivalent to natural gas and oil. Among its notable facilities is the country’s largest natural gas storage site, boasting a capacity exceeding . Its Cove Point liquefied natural gas (LNG) terminal on the Chesapeake Bay stands as one of the most significant and active import terminals nationwide. Dominion caters to over 5 million retail energy consumers spanning the Midwest, mid-Atlantic, and Northeast regions.

In 2017, Dominion earned the #238 spot on the Fortune 500 list. A corporate chronicle titled Dominion’s First Century: A Legacy of Service was released in 2010.

Generation statistics

During 2022, Dominion’s electricity generation mix consisted of approximately 18% coal, 23% nuclear power, 48% natural gas, with the remaining 11% derived from hydroelectricity and other renewable sources. The company is actively pursuing a growth strategy centered on increasing its portfolio of renewable energy—mainly through wind and biomass—while promoting conservation and efficiency measures aimed at fulfilling future energy needs and minimizing environmental impact.

History

Dominion's origins extend back to the Colonial period, stemming from earlier enterprises engaged in canal and river barge transportation, street lighting, railroads, and electric trolley systems.

In 1787, the Virginia General Assembly established the Appomattox Trustees with the goal of enhancing navigation on the Appomattox River. By 1795, these trustees had created the Upper Appomattox Company to construct dams for industrial purposes, representing an early chapter in Dominion’s development. Water rights were transferred to the Virginia Passenger & Power Company by 1901.

The immediate predecessor of Dominion, Virginia Railway & Power Company, was founded by Frank Jay Gould in 1909 and quickly absorbed Virginia Passenger & Power. It was renamed Virginia Electric and Power Company (VEPCO) in 1925 and functioned as a regulated monopoly. VEPCO expanded its service area significantly in 1940 through a merger with Virginia Public Service Company and divested its transit operations in 1944. The company adopted the brands "Virginia Power" and "North Carolina Power" for their respective markets in 1980. In 1983, it reorganized under a holding company structure named Dominion Resources.

By 1985, Dominion had divided its distribution responsibilities between Virginia Power (serving Virginia and West Virginia’s Greenbrier Valley) and North Carolina Power. The company broadened its footprint in Northern Virginia in 1986 by acquiring distribution rights from Potomac Electric Power Company. In 1987, Dominion sold its West Virginia assets to Utilicorp United, although it retained ownership of the Mount Storm Power Station. These holdings were eventually integrated into FirstEnergy through subsequent transactions.

During the 1980s and 1990s, Dominion grew its presence in both regulated and deregulated energy sectors domestically and abroad, establishing a reputation as a prominent nuclear power plant operator.

In 2000, Dominion expanded its natural gas services into Northeastern U.S. markets by acquiring Consolidated Natural Gas Company (CNG). The following year, it further augmented its portfolio by purchasing Louis Dreyfus Natural Gas Company. That same year marked the consolidation of its brand identity under the unified Dominion name.

Dominion divested most of its Houston-based oil and gas exploration and production operations in 2007 for nearly $14 billion to concentrate on core electric and gas businesses. This sale included reserves located onshore in the U.S., the Gulf of Mexico, and Canada, although some Appalachian production assets were retained.

In February 2016, Dominion announced it would acquire Questar Corporation, a transaction finalized in September of that year. The company rebranded as Dominion Energy in 2017, introducing a new corporate logo.

In January 2018, Dominion reached an agreement to purchase SCANA Corporation for $7.9 billion; this acquisition was completed in January 2019.

Mid-2018 saw Dominion initiate a "grid transformation program" designed to add 3,000 megawatts of solar and wind capacity by 2022 under Virginia’s Grid Transformation & Security Act—supporting investments in renewable energy and modernizing the electrical grid.

In July 2020, Dominion revealed plans to sell its natural gas transmission and storage assets to Berkshire Hathaway in a deal valued at $10 billion.

By February 2022, Dominion sold its subsidiary Dominion Energy West Virginia to Hearthstone Utilities Inc. for $690 million; Hearthstone continues operating under the name "Hope Gas."

In September 2023, Enbridge agreed to purchase East Ohio Gas, Questar Gas, and Public Service Co. of North Carolina from Dominion for an enterprise value of $14 billion.

Operations

Dominion's business is divided into four primary segments:

Dominion Generation

This division is responsible for producing electricity destined for regulated markets in Virginia and North Carolina, as well as wholesale markets located in the Northeast and Midwest regions. It stands as Dominion’s most substantial operational unit.

Dominion Virginia and North Carolina Power

As a regulated electric utility, this segment manages the transmission and distribution of electricity generated by Dominion’s power facilities across Virginia, North Carolina, Connecticut, and West Virginia.

Dominion Energy

This segment specializes in natural gas distribution, transmission, storage services, producer support, and investments in solar projects such as Tredegar Solar Fund I, LLC.

Dominion Exploration and Production

Previously among the largest independent operators in natural gas and oil exploration and production, Dominion divested most of these assets by 2007 to concentrate on expanding its electric generation, energy distribution, transmission, storage, and retail operations primarily within Virginia, West Virginia, and North Carolina.

Expansion plans

Dominion participated in the Atlantic Coast Pipeline initiative—a 600-mile natural gas pipeline stretching from West Virginia to North Carolina. Although construction began in 2018, the project was terminated in July 2020 due to rising expenses caused by legal opposition from environmental organizations.

The company is advancing the Coastal Virginia Offshore Wind (CVOW) project, a significant offshore wind farm located off the coast of Virginia. This development will introduce over 2,600 megawatts of renewable energy through 220 turbines capable of supplying power to approximately 650,000 households at maximum output. CVOW marks the first offshore wind installation within federal waters, positioned roughly 27 miles from shore. Two initial pilot turbines are operational, with full deployment anticipated by 2026. In December 2020, construction commenced on Charybdis, an offshore wind turbine installation vessel compliant with the Jones Act, being built at Keppel AmFELS shipyards in Texas.

Political activities

The Dominion Political Action Committee (PAC) has actively engaged in Virginia's political landscape, contributing $814,885 in 2009—allocating 56% to Republican candidates and 41% to Democrats—and $539,038 in 2008 with an almost equal distribution. During the 2016 election cycle, the PAC donated more than $1.27 million to various candidates and political committees.

Lobbyists representing Dominion played a key role in enacting West Virginia's 2021 Critical Infrastructure Protection Act, which imposes felony charges for trespassing on oil and gas infrastructure. The legislation was championed by its sponsor as fulfilling requests from the natural gas sector.

Charitable contributions

Annually, Dominion donates around $20 million to charitable organizations through the Dominion Foundation, concentrating on communities within its operational footprint.

The company also administers the Benjamin J. Lambert, III, Volunteer of the Year Program. Celebrating its 33rd year in 2017, this program honors outstanding employee volunteers by awarding $1,000 donations to their selected charities. In 2016, twelve employees from Ohio, Pennsylvania, Virginia, and West Virginia received recognition.

In response to the COVID-19 crisis, Dominion temporarily halted service disconnections due to unpaid bills and waived fees for late payments and reconnections. Additionally, its foundation pledged $1 million to support both national and local efforts addressing the pandemic.

High voltage lines

Dominion encountered disputes regarding the introduction of new electric power transmission corridors. In 2007, The Washington Post highlighted plans to shift a 500 kV transmission line in Northern Virginia from environmentally sensitive forest and farm areas to a southern route near existing lines, thereby circumventing nature reserves and Civil War landmarks. Although U.S. Representative Frank Wolf (R-VA) and Governor Tim Kaine (D) opposed the plan—questioning its necessity and suggesting it aimed to bring inexpensive Midwestern electricity into the region—Dominion maintained the project was crucial to meet Northern Virginia’s increasing energy demand. The proposal received approval from the State Corporation Commission (SCC) on October 7, 2008.

On February 15, 2008, the SCC authorized a contentious 230 kV overhead transmission line along a wooded stretch of the Washington & Old Dominion Railroad Trail between Leesburg and Clarks Gap in Loudoun County. Dominion justified this by citing the need for reliable power supply. However, shortly thereafter, the Virginia General Assembly unanimously enacted emergency legislation mandating that this segment be installed underground as part of a pilot initiative for subterranean transmission lines. Sponsored by Delegate Joe T. May (R-Loudoun), this legislation exempted the project from additional SCC reviews concerning environmental and historical impacts and was signed into law by Governor Kaine on April 2, 2008.

Wise County power plant

In June 2008, Dominion commenced construction of a 605 MWe coal-fired generating facility in Wise County, Virginia. By December 2009, the project reached approximately half completion, with full operational status anticipated by mid-2012. The company designated it as the "Virginia City Hybrid Energy Center," a name critics have labeled as misleading environmental marketing. Nevertheless, this plant operates under the strictest air quality permit granted to any coal-fired facility in the United States. It is designed to combust up to 20% biomass combined with coal and a minor proportion of waste coal known as gob. Expected annual emissions of carbon dioxide are projected at 5.4 million tons.

Environmental concerns focus on elevated levels of mercury, mitigated through activated carbon injection technology, as well as a fly ash disposal site located near the Clinch River, which serves as a local drinking water source. Additionally, the plant supports ongoing mountaintop removal coal mining practices. Advocates, including Governor Tim Kaine, argue that this facility will lessen Virginia’s dependence on imported electricity. The development generated around 1,000 construction jobs and will sustain approximately 130 permanent positions while contributing $4–7 million annually in tax revenue to economically challenged Wise County. In September 2008, activists affiliated with the Rainforest Action Network staged a blockade at the construction site in protest.

Cove Point LNG import facility

When Dominion’s subsidiary, Dominion Cove Point LNG, planned to resume operations in 2001, local residents voiced apprehensions about its location just three miles from the Calvert Cliffs Nuclear Power Plant, fearing potential hazards from accidents or attacks. They contended that the Federal Energy Regulatory Commission had not thoroughly evaluated these safety risks.

In 2005, Washington Gas alleged that imported natural gas was excessively "hot," meaning it contained fewer heavy hydrocarbons, resulting in hotter combustion that caused pipeline ruptures for customers. Dominion refuted these claims, asserting that expanding service areas supplied with imported gas would not increase leakage incidents within the District of Columbia or surrounding Northern Virginia suburbs.

Environmental performance

In 2010, Dominion Resources was positioned 51st among U.S. companies for airborne pollutant emissions according to the Political Economy Research Institute, achieving a Toxic Score of 16,656. This marked a notable decline compared to its rankings in 2008 (27th place with a score of 58,642) and 2005 (19th place with 117,712).

A legal agreement reached in 2007 between the United States Environmental Protection Agency (EPA) and Dominion Energy concerning Brayton Point mandated the implementation of closed-cycle cooling towers to safeguard aquatic ecosystems in Mount Hope Bay. This settlement resolved an ongoing conflict that originated in 2003. The EPA's National Pollution Discharge Elimination System (NPDES) permit required significant cuts in both thermal discharge and water withdrawal from Mount Hope Bay.

Dominion's 2002 emission disclosures revealed releases exceeding one million pounds each of substances toxic to the gastrointestinal or liver systems, musculoskeletal system, respiratory system, and skin or sensory organs, all suspected to pose health hazards.

See also

• Coastal Virginia Offshore Wind