Dominion Energy’s D shares have rallied 31.9% year to date compared with the Zacks Utility – Electric Power industry’s growth of 24.1%. In the same period, the company has outperformed the broader Zacks Utilities sector and the Zacks S&P 500 Composite.

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Dominion Energy plans to invest $43 billion through 2029 to strengthen its infrastructure and prevent outages. The company is also working to lower emissions from electricity production. Dominion Energy aims to attain net-zero carbon and methane emissions from its electric generation and natural gas infrastructure by 2050.

Dominion Energy’s Price Performance YTD

Image Source: Zacks Investment Research

The chart below indicates that D’s shares are trading above the 50-day and 200-day simple moving average, indicating a bullish trend.

Image Source: Zacks Investment Research

Factors in Favor of Dominion Energy

Dominion Energy’s portfolio realignment and focus on regulated assets are evident from its investments in regulated infrastructure, which will boost its operation term. To focus on its core operation, Dominion Energy divested some of its merchant generation facilities and electric retail energy marketing business.

Recently, Dominion Energy signed a Memorandum of Understanding with Amazon AMZN to explore innovative new development structures for enhancing potential Small Modular Reactor (“SMR”) nuclear development in Virginia. The SMAs will be providing clean energy to customers and meet their need over the long term.

Dominion Energy has a well-chalked-out long-term capital expenditure plan to strengthen and expand its infrastructure. The company plans to invest $43 billion over the long-term to further strengthen its operation. Its long-term objective is to add more battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years.

Dominion Energy is experiencing commercial load growth driven by Data Centers demand. Attractive customer growth across its Virginia and South Carolina service areas is also boosting demand for its services. The initiatives taken by the company to strengthen its electric infrastructure will enable it to meet rising customer demand on a more efficient manner. The company connected 14 new data centers year to date through September and expects to connect an additional 16 data centers in 2024.
 
Dominion Energy has plans to upgrade electric infrastructure by installing smart meters and grid devices, as well as enhance services to customers through the customer information platform. The company is also working on a project of strategic undergrounding of 4,000 miles of distribution lines. These initiatives will increase the resilience of its operation and enable it to serve the expanding customer base more efficiently. It also started the deployment of electricity storage devices, which will support its renewable power projects.