Dominion Energy Stock Surges After Earnings Beat—How New Power Strategies Could Lower Your Bill

Richmond, Va.—Dominion Energy’s plan to build the 944-megawatt Chesterfield Energy Reliability Center (CERC) has hit a major roadblock after the Virginia State Corporation Commission (SCC) voted this week to suspend its earlier approval while it reviews an appeal filed by environmental and community-justice groups. The challenge, led by Appalachian Voices, the Virginia State Conference NAACP and Mothers Out Front, alleges the SCC failed to weigh pollution impacts on “fenceline” neighborhoods as required under Virginia’s 2020 environmental-justice law. Petitioners also argue Dominion has not met statutory energy-efficiency targets and offered “minimal evidence” to prove the new natural-gas facility is essential to grid reliability. What’s at stake • Project scope: Four fast-start gas “peaker” units designed to cover demand surges beginning in 2029. • Price tag: Roughly $1.3 billion, costs that could flow through to Dominion Energy Virginia customers. • Location: The retired Chesterfield coal plant site, already singled out for disproportionate air-quality burdens. • Reliability claims: Dominion cites PJM Interconnection modeling that forecasts a 2.4-gigawatt capacity shortfall by decade’s end. Why regulators hit pause SCC commissioners said the stay allows time to examine whether the project’s approval process complied with the Virginia Environmental Justice Act and whether cheaper, cleaner alternatives—such as battery storage and offshore wind—could achieve the same reliability goals. A similar pause was requested by the Southern Environmental Law Center after the commission’s initial Nov. 25 order. The partial reversal mirrors action taken Friday by regulators in a companion docket, effectively “un-approving” the plant pending further review. Dominion’s response Company spokesman Jeremy Slayton said the utility “stands behind the SCC’s original findings,” calling CERC “an important part of Virginia’s all-of-the-above strategy to maintain affordable, reliable service as we add 24/7 renewable generation.” Dominion argues the gas units will run infrequently, limiting greenhouse-gas emissions while backing up 5.2 GW of planned solar and offshore wind. Customer impact If the commission ultimately rejects or delays CERC, Dominion may: 1. Accelerate procurement of battery storage and demand-response programs. 2. Seek short-term capacity contracts in PJM’s wholesale market, which could expose ratepayers to volatile prices. 3. Petition for separate rider increases tied to alternative projects, keeping upward pressure on Dominion Energy bills already set to rise 12 percent in 2026. Broader context The pause lands as Dominion Energy (NYSE: D) pursues a 2050 net-zero pledge and as Virginia lawmakers debate revisions to the 2020 Clean Economy Act. Investor sentiment has been mixed; Dominion’s stock is down 8 percent year-to-date amid questions over its capital-spending plan and regulatory risk. Analysts say the SCC’s reconsideration adds uncertainty but could encourage the utility to double down on lower-cost renewables and storage. What’s next • Briefing schedule: Parties have 30 days to file written arguments; oral arguments could follow in early February. • Environmental permit: The Virginia Department of Environmental Quality is still reviewing CERC’s air-permit application and could impose stricter emission controls. • Legislative session: The General Assembly convenes Jan. 8, and several bills aim to tighten rate-recovery rules for new fossil-fuel projects. For Virginia ratepayers and Dominion Energy investors alike, the SCC’s pause signals that the battle over how to keep the lights on in a decarbonizing grid is far from settled.