Earnings Call Transcript
DOMINION ENERGY, INC (D)
Earnings Call Transcript - D Q3 2025
Operator, Operator
Good morning, everyone. Welcome to the Dominion Energy Third Quarter 2025 Earnings Conference Call. I would now like to turn the call over to Mr. David McFarland, Vice President, Investor Relations and Treasurer. Please go ahead, sir.
David McFarland, Vice President, Investor Relations and Treasurer
Good morning, and thank you for joining Dominion Energy's Third Quarter 2025 Earnings Call. Earnings materials, including today's prepared remarks, contain forward-looking statements and estimates that are subject to various risks and uncertainties. Please refer to our SEC filings, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q for a discussion of factors that may cause results to differ from management's estimates and expectations. This morning, we will discuss some measures of our company's performance that differ from those recognized by GAAP. Reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measures, which we can calculate, are contained in the earnings release kit. I encourage you to visit our Investor Relations website to review webcast slides as well as the earnings release kit. Joining today's call are Bob Blue, Chair President and Chief Executive Officer; Steven Ridge, Executive Vice President and Chief Financial Officer; and other members of senior management. I will now turn the call over to Steven.
Steven Ridge, Executive Vice President and Chief Financial Officer
Thank you, David, and good morning, everyone. Since the conclusion of the business review last year, we've focused on three principal priorities: first, consistent achievement of our financial commitments; second, continued on-time achievement of major construction milestones for the Coastal Virginia Offshore Wind project; and third, constructive achievement of regulatory outcomes that demonstrate our ability to work cooperatively with regulators and stakeholders to deliver results that benefit both customers and shareholders. As we successfully execute against these priorities, we empower our employees to provide the reliable, affordable, and increasingly clean energy that powers our customers every day, and we position ourselves to deliver on the commitments we made to our investors at the conclusion of the business review. We believe that continued execution against these commitments will deliver compelling value for our shareholders. I'll address our financial results, and then Bob will address CVOW and regulatory progress. As shown on Slide 3, third quarter operating earnings were $1.06 per share, which includes $0.03 of RNG 45Z credits and $0.06 due to worse than normal weather. Relative to third quarter 2024, positive factors for the quarter included $0.06 from regulated investment growth, $0.08 from increased sales, $0.05 from our DESC rate case settlement in 2024, and $0.03 from higher margins at Contracted Energy. Third quarter results also included worse weather, higher DD&A and higher financing costs. A summary of all drivers for earnings relative to the prior year period is included in Schedule 4 of the Earnings Release Kit. Third quarter GAAP results were $1.16 per share. A summary of all adjustments between operating and GAAP results is included in Schedule 2 of the Earnings Release Kit. Turning now to guidance. With 9 months of 2025 financial results reported, we're narrowing our full-year guidance range to $3.33 to $3.48 per share, inclusive of RNG 45Z earnings while preserving the original guidance midpoint of $3.40. On last quarter's call, I highlighted sales and weather as noteworthy tailwinds through 6 months of the year. Over the last 4 months, we've seen weather reverse. And through 10 months of the year, now represents a small headwind of approximately $0.02. Continued strength from commercial and residential sales combined with other initiatives gives us confidence in our ability to deliver full-year results at or above the midpoint of our guidance, assuming normal weather for the last 2 months of the year. We've provided year-over-year drivers for the fourth quarter in the appendix of today's materials for your reference. Finally, we are reaffirming all other existing financial guidance. Turning to Slide 4, we've completed our 2025 financing plan. And as mentioned on prior calls, we are taking steps to further derisk future ATM equity. We remain focused on balance sheet conservatism, and there is no change to our previously communicated credit-related targets. Finally, we'll provide a comprehensive capital investment forecast update through 2030 on our fourth quarter earnings call, which will take place in early 2026. We expect incremental opportunities to deploy regulated capital on behalf of our customers, with a timing bias towards the back end of the plan. As always, we will look at incremental capital through the lenses of customer affordability, system reliability, balance sheet conservatism, and our low-risk profile. In conclusion, I am highly confident in our ability to deliver on our financial plan. We've built our plan to be appropriately but also not unreasonably conservative to weather unforeseen challenges that may occur. And with that, I'll turn the call over to Bob.
Robert Blue, Chair President and Chief Executive Officer
Thank you, Steve, and good morning, everyone. I'll begin with safety on Slide 5. Through September, our OSHA recordable rate was 0.28%, continuing the positive trend from the last 3 years. Continuing to reduce workplace injuries is one way we can honor the memory of our colleague, Ryan Barwick, who we lost in an accident earlier this year. We must continue to focus relentlessly on improving our safety performance. Now I'll turn to updates around the execution of our growth plan. I'll start with the Coastal Virginia Offshore Wind project. Slide 6 highlights what makes CVOW such an important and unique generation resource. The project is now two-thirds complete and just a few months away from delivering much-needed electricity to our customers. Slide 7 shows our major equipment progress. We successfully completed 100% of monopile installation one month prior to the conclusion of the piling season. I am very pleased with this tremendous milestone for the project. We've installed 63 transition pieces to date with all 176 transition pieces now fabricated. Turbine fabrication remains on schedule. Earlier this week, we installed the second offshore substation jacket and will place the accompanying topside shortly. The third and final offshore substation is nearly complete and will be installed in the first quarter of next year. Turning to timing on Slide 10, we now expect first turbine installation to occur late next month and continue to expect first power to be delivered to our customers in late first quarter of next year, approximately 5 months from now. As a reminder, we'll be energizing strings of turbines throughout 2026. There is no change to our current expectation of project completion by the end of 2026. However, given delays with Charybdis, we have significantly reduced the schedules weather and vessel maintenance contingency, which could push a few of the final turbines into early 2027. We'll continue to refine and update this assumption as we observe actual turbine installation cadence similar to what occurred with monopiles, which went more quickly than expected. Project costs now stand at $11.2 billion, which includes unused contingency of $206 million, down about $15 million from last quarter. Excluding tariff impacts, costs for project components have remained in line with the prior update. The updated cost this quarter reflects the accelerated recognition of steel tariffs through the end of 2026, whereas we were previously recognizing all tariff costs on a quarter-by-quarter basis. Through September, the project has invested approximately $8.2 billion. The remaining project costs attributable to Dominion are expected to be approximately $1.5 billion. On Slide 11, we've continued to provide an update to our potential tariff exposure across discrete tariff categories and illustrative duration. We're showing the impact of country-specific tariffs through project construction at the end of 2026. Please note that changes to tariff policy could impact these estimates. Unfixed costs include project management costs, fuel for vessels, and changes to tariffs and network upgrades, if any. Estimated network upgrade costs assigned by PJM to CVOW in the most recent decision point came down modestly. We expect this inaugural process to conclude by year-end and do not expect a material change to network upgrade costs. We'll then execute and submit our generator interconnection agreement at PJM and FERC under the very standard finalization protocol, as is in place for all new generating sources. We expect the process to conclude in March, which will be the final step to first power. As a result of this project cost increase, we recorded a modest charge this quarter, about $50 million after-tax included on Schedule 2 for costs not expected to be recovered from customers in accordance with the cost-sharing settlement with Virginia regulators and our 50% cost-sharing partnership agreement with Stonepeak. These cost and risk-sharing arrangements continue to work as intended to protect customers and shareholders. Further on costs, we'll file with our quarterly status report and our 2026 CVOW rider filing with the State Corporation Commission today. As shown on Slide 12, the project's LCOE has been updated to $84, up from last quarter, driven primarily by lower forecasted REC prices. Keep in mind that REC sales are credited against the levelized cost of energy as value delivered to customers and the value of REC will change year-to-year based on market dynamics at the time. However, importantly, the LCOE compares favorably to other generation resources and is well below the statutory amount. It's also in line with the LCOE range provided at the time of the original filing in November 2021. The project is now forecasted to represent an average residential customer monthly bill credit of $0.63 over the life of the project. Under the rider proposal filed today, we're forecasting a revenue requirement for the 2026 rate year, which begins in September 2026, of $665 million. This customer-beneficial real-time cash recovery provides important financial support for this regulated investment during construction. If approved, the rider proposal filed today would result in residential customers seeing a decline in their monthly bill in September, as the project begins to generate electricity in early 2026. Progress on CVOW continues to go very well, and there's every reason for our customers and policymakers to be excited by the timely delivery of much-needed low-cost electricity from this critical generating resource. Let me pivot to discuss Charybdis, our American-made Jones Act-compliant wind turbine installation vessel, which has been a challenge. I am extremely disappointed that Charybdis has again not met expectations. I recognize the importance of executing consistently against any commitment, and we failed to deliver regarding Charybdis. We built Charybdis to derisk our installation process. We continue to believe that it will represent a strategic advantage, providing enhanced schedule certainty, which ultimately translates into cost certainty. The vessel successfully completed sea trials, received sign-offs, and arrived in Portsmouth, Virginia in September. Upon arrival, Siemens Gamesa successfully completed all necessary modifications for turbine handling and installation. Simultaneously, punch list items were identified that require remediation prior to the vessel being cleared to begin turbine load-out and installation. While all major systems are operating well, there are a variety of quality assurance level items that require addressing, and those tasks are currently underway to ensure that the vessel can commence work as quickly as it is safely able to do so. It's become clear that while the ship's design and construction methods are consistent with global best practices, we didn't properly account in our timing estimate for the risk inherent in being the first Jones Act-compliant wind turbine installation vessel to be built and regulated in the United States. The vessel is expected to be cleared to load and install turbines in November. As a reminder, unlike monopile installations, there are no time of year or time of day restrictions on installing turbines. Finally, any modest delay beyond November will not impact first power timing in late first quarter of 2026. One final note on Charybdis: project costs continue to be approximately $715 million. Moving now to data centers on Slide 14, we continue to see robust demand from data centers. We now have approximately 47 gigawatts in various stages of contracting as of September 2025, which compares to around 40 gigawatts as of December 2024, an increase of 7 gigawatts or 17%. As a reminder, these contracts are broken into substation engineering letters of authorization, construction letters of authorization, and electrical service agreements. As customers move from the first to the last, the cost commitment and obligation by the customer increase. We're currently studying over 28 gigawatts of data center demand within the substation engineering letters of authorization stage, which means the customer has requested the company to begin the necessary engineering review for new infrastructure required for service. This compares to approximately 26 gigawatts as of December 2024 and represents a roughly 7% increase. There are also now about 9 gigawatts of data center demand that have executed construction letters of authorization, which are contracts that enable construction of the required distribution and substation electric infrastructure to begin. This compares to just over 5 gigawatts in December 2024 and represents an approximately 73% increase. Should a customer in this stage elect to discontinue a project, they're obligated to reimburse the company for its investment to date. Finally, we now have nearly 10 gigawatts in electric service agreements or ESA, representing contracts for electric service between Dominion Energy and a customer. This has increased by nearly a gigawatt or 12% since December 2024 as well. By signing an ESA, the customer is committing to consume a certain level of electricity annually, often with ramp schedules where the contracted usage grows over time. We welcome these customers to our system and recognize the vital contribution data centers make to national, state, and community success. We're developing resources across distribution, transmission, and generation to ensure we meet this critical need on a timely basis, while also taking active steps to safeguard all of our customers from the risk of paying more than their fair share for reliable and affordable electric service. Data center demand should and can be a win-win for our state, our customers, and our company. Turning to Slide 15, let me share a few additional business updates. First, on the biannual review proceeding and the proposed large load tariff, post-hearing briefs were filed last week. We anticipate a final order by the end of November. Next, on the transmission side, we submitted project proposals in the latest PJM open window process that closed in August. This year's reliability open window represents the largest proposed investment by Dominion Energy since PJM began its open window process. While final project selections by PJM won't be made until Q1 2026, there is a robust need for new transmission across the region, and we expect this open window to reflect that. Recall that in last year's open window, Dominion was awarded around 100 projects totaling nearly $3 billion. On the generation front, we've announced a number of updates in recent weeks. SCC hearings for the Chesterfield Energy Reliability Center, an approximately 1 gigawatt natural gas-fired electric generating facility, concluded in September, and post-hearing briefs were filed this week in line with previous testimony. We expect an order in December. On October 15, we filed our next set of utility-scale solar and storage projects with the SEC, representing about $2.9 billion of new investment. The filing included approximately 845 megawatts of utility-scale solar and 155 megawatts of storage projects, which will further derisk our growth program. Also on October 15, we filed our 2025 Virginia Integrated Resource Plan, which presented several possible generation build portfolios with additional resource capacity across both renewable and dispatchable generation technologies in response to continued robust load growth in our service territory. The IRP update demonstrates a continuation of our focus on an all-of-the-above approach to ensuring reliability, affordability, and increasingly clean generation. On customer affordability, as shown on Slide 16, our current residential electric rates at DEV and DESC are 9% and 11% below the U.S. average, respectively. Based on the build plans proposed in both states' latest IRPs, both will maintain customer bill growth rates through the forecast periods below current electricity inflation levels. In conclusion, we've summarized key highlights from today's call on Slide 17. We realize how important it is to meet the commitments we provided at the conclusion of the business review. We are 100% execution-focused. We will deliver for our customers, our employees, and our shareholders. With that, we're ready to take your questions.
Operator, Operator
Thank you, Mr. Blue. Ladies and gentlemen, the floor is now open for your questions. We'll go first this morning, Shar Pourreza of Wells Fargo.
Shahriar Pourreza, Analyst
Good morning, everyone. Thank you for having me back. Bob, regarding the elections, there’s a strong possibility that the gubernatorial process may change parties. Governor Youngkin has shown strong support for CVOW and the biannual process. How should we account for any risks if we see this change? Could we potentially wake up one day to find the Trump administration blocking this project due to a lack of alignment with the Republican governor? Have you had a chance to speak with Spanberger? I'd appreciate any insights on the political landscape.
Robert Blue, Chair President and Chief Executive Officer
Yes, Shar, thanks a lot for that question. Let's start with the fact that every statewide candidate running, regardless of party, supports CVOW, and that's consistent with the bipartisan support that this project has gotten at every level, federal, state, and local government, including congressional leadership. And if you think about it, there are really good reasons for that. It's the fastest way to get 2.6 gigawatts on the grid that's going to serve AI and technology companies, defense security installations. It's critical to important infrastructure upgrades at the Oceana Naval Air Station. If you stop it now, it causes energy inflation. So it's not surprising that we're seeing bipartisan support at all levels of government and we expect that to continue after the election.
Shahriar Pourreza, Analyst
Got it. Okay. Perfect. And then just lastly on Charybdis. Can you just give us a little bit of a sense, if you can, on just the nature of the punchlist for the project? And when do you kind of expect the quality assurance items that you obviously highlighted to be completed, which are underway?
Robert Blue, Chair President and Chief Executive Officer
Yes, that's a great question. Let me provide some context and outline where we currently stand. This is the first Jones Act-compliant wind turbine installation vessel built in the U.S. and under U.S. regulatory oversight. The vessel is quite large, measuring 472 feet in length and 184 feet in width, with a weight of 27,000 tons. It has several complex systems, including a 2,200-ton capacity crane and a jacking system that can create a 40-meter air gap beneath the hull when raised. All these systems, including the crane, jacking system, and dynamic positioning system, are functioning well. Earlier this month, local regulators conducted a standard new-to-zone inspection when the vessel arrived in Portsmouth, which revealed two main areas of concern. The first dealt with the material condition of certain components, mainly in the ship's electrical systems, and the second was the requirement for documentation confirming that our systems adhere to U.S. approved codes and standards. This led to a punch list of around 200 items that must be resolved before we can start loading turbines. The ship is divided into 63 zones, and our teams, including qualified marine electricians, are performing detailed surveys to document or immediately address discrepancies. So far, we have completed over 4,000 inspections across 69 electrical systems, which includes 1,400 cable inspections. Our team, consisting of 200 people working around the clock, has successfully closed out about 120 of the original 200 punch list items. It’s important to highlight that not all punch list items have the same complexity; some will take longer to resolve. However, we are making substantial progress. Given the current work pace and our team's commitment, I am very confident that we will resolve all punch list items and be ready to begin operations in November.
Operator, Operator
We'll go next now to Nick Campanella at Barclays.
Nicholas Campanella, Analyst
One follow-up on the ship, just after you get this punch list done, I just wanted to confirm, there's no other approvals needed across offshore wind supply chain, the boat or with federal government that would allow you to install turbines, that's just really getting past this punch list?
Robert Blue, Chair President and Chief Executive Officer
Yes, once we get through the punch list, we're ready to go.
Nicholas Campanella, Analyst
Great. Can I just ask about the capital plan comments then? I know you're going to be updating things in the fourth quarter. I think you talked a little bit about the bias of that capital plan update being more back-end weighted, if I heard you correctly. But on the funding, you did derisk equity for '26 and '27 here. What's the balance sheet capacity to kind of absorb higher CapEx at this point? And should we still expect equity in '26 and '27 on the next pro forma plan?
Steven Ridge, Executive Vice President and Chief Financial Officer
Yes, we discussed the update we will provide in the fourth quarter call, likely in February of '26. I anticipate that by then we will see increased capital plans in distribution, transmission, and generation that reflect our IRP filings, which include substantial increases in generation capacity. For instance, the South Carolina CCGT project is now authorized, and we are seeking approval to build it with Santee Cooper; this capital investment was not part of our recent update. We've also discovered opportunities for additional generation in Virginia, much of which has not yet been included. Regarding transmission, we have favorable conditions with the PJM open window, and we are fortunate to have numerous quality opportunities to deploy regulated capital that benefits our customers. We will provide a comprehensive update early next year. Concerning our balance sheet, I am pleased with its status. After our business review, we indicated we would be at 15% FFO to debt starting in 2025, and we are still tracking toward that. This gives us a buffer of about 100 basis points compared to our downgrade threshold at Moody's and 200 basis points at S&P. Moody's will likely be slightly below that 15% due to their methodology compared to our simpler metric for FFO to debt. We are in a solid position and have taken steps to reduce risk related to our planned ATM. When we update the capital plan early next year, we will also provide insights into our financing needs. We have effectively utilized ATM and hybrid equity, both of which are cost-competitive. We will explore all available options to source capital from the most advantageous sources, ensuring we finance our business growth while maintaining balance sheet conservatism and providing value to our shareholders.
Operator, Operator
We'll go next now to Steve Fleishman of Wolfe Research.
Steven Fleishman, Analyst
Yes, just one other question on the Charybdis. Just want to confirm there's nothing related to the government shutdown or any political stuff that's affecting the timing, it's just this punch list?
Robert Blue, Chair President and Chief Executive Officer
That's it, Steve. There is nothing related to the government shutdown or anything else.
Steven Fleishman, Analyst
And then once we start seeing turbines come in. Can you give us a sense of cadence there? My recollection is maybe the first set a little slower, but then it gets into a cadence. So can you maybe talk a little bit about what we should be looking for on turbine cadence?
Robert Blue, Chair President and Chief Executive Officer
I think you described it accurately. Regarding monopiles, we initially moved a bit slowly but eventually found our rhythm. We will provide updates on the installation pace as we progress. Expect the initial installations to be slower, but we will increase our speed as we continue. We will keep you informed about our turbine installation progress.
Steven Fleishman, Analyst
And then off-topic, when we get these PJM open window wins or not, like how should we think about how much of that might already be in your plan or additive? Is it all additive? How should we think about that?
Steven Ridge, Executive Vice President and Chief Financial Officer
Steve, I would say we've adopted fairly cautious assumptions in our future capital plan regarding successes in the PJM open window, as well as possibilities for capital deployment outside of that PJM win, along with organic maintenance and growth capital based on our historical and recent experiences, which suggest that there is potential for gains beyond our expectations. While I cannot specify exactly what that will entail, I can mention that we project about $2.5 billion annually for electric transmission, which has increased significantly compared to 4 or 5 years ago. As we continue to identify opportunities, there may be further potential for growth in that area.
Steven Fleishman, Analyst
Yes, and then last quick one. Just the IRP was interesting on the nuclear, where it looked like at least for now, you actually delayed the SMR new nuclear by 5 years. Could you just talk to what is driving that?
Robert Blue, Chair President and Chief Executive Officer
Yes, Steve. I mean, it's a variety of circumstances. We're taking a look at financing and technology. We're also taking a look at how it fits within everything else that we're projecting to construct. So I mean, we're talking about pretty far out in the first place and now a little farther out with the update. I wouldn't read too much into that.
Operator, Operator
We'll go next now to Paul Zimbardo with Jefferies.
Paul Zimbardo, Analyst
To follow up on CVOW a little bit. To the extent that some of those final turbines do slip into the following year, are there any supply chain, labor or other kind of constraints to be mindful of? And is there any way to think about what a financial impact of that could be?
Robert Blue, Chair President and Chief Executive Officer
There are no supply chain or other issues. As to financial impact, we're talking about a small number of turbines. So it's not a meaningful financial impact.
Steven Ridge, Executive Vice President and Chief Financial Officer
I would just add, as you might suspect, years ago, when we put this plan together, which had us completing all the turbines at the end of 2026, which is actually where we still intend to do, we obviously gave ourselves a little bit of latitude as it relates to what the ultimate timing would be. In fact, I think we're very pleased that here we are some years after that original timeline was produced and we're effectively on target for these dates. We've made accommodations in advance that gave us some cushion to the extent that anything caused us to go anywhere beyond that end of 2026 timeframe. So I think we're very well buttoned up on that, quite frankly, with regard to suppliers and vendors. And so forth. And as Bob mentioned in the prepared remarks, I think one thing that's really important for our stakeholders to recognize is we'll be energizing these turbines throughout 2026 and deploying that rate base effectively and beginning to collect depreciation in our revenue requirement throughout the time period that we're installing through 2026. So the actual impact of a couple of turbines slipping into 2027 is pretty minimal all things considered, which makes it a little bit different, I think, from something that's a bit more chunky; by doing it on a stream, we've effectively dechunkified that revenue stream. And so I think that acts as a fairly significant de-risker or mitigant to the type of risk you might see from a standard power plant where you can't collect anything until everything is ready to go. This is 176 individual power plants that we'll be able to collect on in real-time through 2026 as we deploy strings of turbines.
Paul Zimbardo, Analyst
I like that phrase, dechunkified. One other I had just you called out that you've had some weather and other headwinds year-to-date, but you still expect to be midpoint or better. Could you just go through what some of those positive offsets look like? Sales are coming in stronger, if you go through that, it would be helpful.
Steven Ridge, Executive Vice President and Chief Financial Officer
I'm really pleased with our financial performance so far in 2025. We are currently experiencing a $0.02 weather deficit, but the main factors contributing to our performance have been strong sales from two key areas. First, our data center customers have been ramping up their activity consistently throughout the year. Additionally, over the summer, we observed an increase in usage per residential customer, which is a shift from past trends. Together, these factors have provided a positive boost, giving us confidence in our results. We've also benefited from some true-ups on our riders, which help when we deploy capital more quickly. Overall, strong sales have been the primary driver of our performance.
Operator, Operator
We'll go next now to Carly Davenport with Goldman Sachs.
Carly Davenport, Analyst
Maybe just on the data center update, just any color that you're able to share on the sort of timing to in-service for the 9.8 gigawatts of load that's now under ESA and just how to think about that cadence looking forward?
Robert Blue, Chair President and Chief Executive Officer
Yes. Carly, it's our data center load just continues to grow, and the demand continues to grow. We're actually seeing the opposite, and that's the whole PJM DOM zone is seeing quite a bit of new capacity requests. They continue to choose us because we've got really good fundamentals. We've got great connectivity to global fiber networks. We've got a very business-friendly environment in Virginia. We’ve also got the largest data center workforce in the U.S. and then we've got reliable and affordable electricity, thanks to us. So we've gotten 370 delivery point requests since 2020, which is over 58 gigawatts of capacity, 17 gigawatts of that just in 2025. That's across our service territory and also the co-ops that we serve from a transmission point of view. So we've now communicated firm dates for over 100 delivery point requests, which represents over 25 gigawatts of capacity in the DOM zone. Those energization dates stretch through 2031. So sort of match up with everything that we've been saying already. Typically, from the time of a delivery point request until we have a customer hooked with the meters, it's about 4 to 7 years, and then they ramp in over time from that date. Our sales growth off that 10 gigawatts of ESAs continues steadily just off those ESAs over the coming years.
Carly Davenport, Analyst
Great. That's really helpful. And then maybe just a clarification question on Slide 11. To the extent that costs through the end of '26 on CVOW do trend above that $11.3 billion level, and I recognize what you're outlining here is not materially at that level. Are you still assuming that Stonepeak will continue to contribute incremental capital there? And if so, just what is your sort of confidence level there?
Steven Ridge, Executive Vice President and Chief Financial Officer
Yes, so under the agreement we have with Stonepeak capital between $11.3 billion and $11.8 billion is shared about two-thirds at Dominion and one-third with Stonepeak. That agreement without getting into too many details provides incentives for them effectively to do that, to fund that. So that's what we've assumed. And as you mentioned, it's only a very small amount. I think, in rounding terms, it's even less than the $400 million that we're over through December 31, 2026, on Slide 11.
Operator, Operator
We'll go next now to Jeremy Tonet at JPMorgan.
Jeremy Tonet, Analyst
Happy Halloween.
Robert Blue, Chair President and Chief Executive Officer
Thank you, Jeremy.
Jeremy Tonet, Analyst
Just one last one, if I could, on CVOW here and recognize a lot of progress and a lot of fronts here. But just wanted to turn to the inter-array cable fabrication not as much progress on that side quarter-over-quarter. I'm just wondering if you could touch on that a little bit the drivers.
Robert Blue, Chair President and Chief Executive Officer
It's not necessarily a linear production, Jeremy, but we are totally on track on inter-array cable manufacturing and installation. So I would read nothing into if you're sort of doing the math on how much per month or quarter, anything like that, we are right on track.
Jeremy Tonet, Analyst
Got it. And I just want to come back to the question on nuclear, if I could. And granted, as you said, it's pretty far off at this point. But we have seen the federal government kind of step up with new efforts to support development here. And just wondering if there's anything out there that you would be looking for that you think could materially, I guess, change views on the potential for nuclear's role going forward?
Robert Blue, Chair President and Chief Executive Officer
Well, I mean, our view is we're in the most nuclear-friendly state in Virginia. The policies support here are very strong, and there's public and policymaker support, whether it's the nuclear Navy or the big parts of the supply chain or the reactors that we've been operating safely here in Virginia since the '70s. But I think as we've described before, as we think about new nuclear cost overrun risk being borne by our customers and our shareholders is a concern. First-of-a-kind costs being borne by our customers as a concern, and the balance sheet that we've worked very hard to get in shape and our business risk profile can't change. There are ways to work through that, that's the MOU that we entered into with Amazon. They've expressed some interest in helping finance an SMR at North Anna 3. We continue to work our way through that. But fundamentally, as we think about new nuclear, which could be very beneficial for the state, we need to think about first-of-a-kind cost, cost overrun risk, and our business risk profile.
Jeremy Tonet, Analyst
Got it. So it sounds like backstops on catastrophic risk and just cost overrun risk would be the key thing to pull forward, I guess, the timeline at this point?
Robert Blue, Chair President and Chief Executive Officer
They would be incredibly valuable, yes.
Jeremy Tonet, Analyst
Got it. That's very helpful. Last one, if I could. And then as we think about data center development here and clearly, there's been a focus for you, you guys are well ahead of others here. But equipment availability that stands right now, transformers, transmission equipment, everything for CCGT. Just wondering how long the queues at this point? And how do you think about, I guess, winding that up with more data centers, just given how time on are on both sides at this point for demand?
Robert Blue, Chair President and Chief Executive Officer
If you think about the sort of timeline on components for generation, our IRP that we just filed with the dates that we've got for new generation line up with what we expect timelines for the supply chain. More broadly, I think everyone is experiencing more demand for transformers and other equipment. I think we're advantaged because of our size, because of the long relationships that we have with suppliers. We've been doing a lot of transmission work at this company for quite a while. That puts us in a good place as we try to connect the data center load that we've got. It's a big lift, but we're very much up to the task.
Jeremy Tonet, Analyst
Got it. And just one last one, if I could. Speaking about timeline, if anything for CVOW, if anything flips into '27 here, do you think that would impact, I guess, the '26 guide at this point? Or is that kind of just small at this point and wouldn't really think of it as much of a headwind when it comes to the '26 guide?
Steven Ridge, Executive Vice President and Chief Financial Officer
I feel very confident about our financial plan. We have made it sufficiently conservative without being overly cautious. Therefore, if any challenges arise, I am assured of our capability to fulfill the commitments we've made to our investors following the business review.
Operator, Operator
We'll go next now to Anthony Crowdell at Mizuho.
Anthony Crowdell, Analyst
I want to ask this is my last one three times. Just quickly, is there a cadence of generation needs that you look at in 2 to 3 years, whether it's like a gig a year? How much generation will you be bringing on to the grid as we look towards the back end of your plan?
Robert Blue, Chair President and Chief Executive Officer
Well, I mean, the best way to look at it is we've outlined it in the IRP. So I'm not going to walk through sort of what comes on each year. But I will say we've got 2.6 gigawatts coming on in offshore wind by the end of next year. Chesterfield Energy Reliability Center, which is in front of the commission right now. That's a gig of natural gas peaking that would come on in 2029, and then we've got a cadence roughly of a gig of solar a year. I mean between us and PPAs coming online, plus we've got another, I guess, 0.5 gig-ish 500 megawatts of uprates on our existing gas fleet in Virginia. So it's all in the IRP sort of by year, which is probably the best way to look at it.
Anthony Crowdell, Analyst
Great. No, that's perfect. And then just one follow-up. When Charybdis finally clears to, I guess, begin installation, does the company issue a press release or an 8-K just how best can we track that?
Robert Blue, Chair President and Chief Executive Officer
Well, we've noticed a lot of people track where Charybdis is on the web on one of these vessel finder sites. You'll see it. It won't be at the dock anymore; it will be out at a turbine. I would not anticipate us issuing an 8-K or a press release when it's done because it's another step in the project, a project that is going extremely well. We didn't issue a press release when we started installing other components. We just moved through this efficiently and effectively as we've been doing throughout our offshore wind project.
Operator, Operator
And ladies and gentlemen, this will conclude our question-and-answer session for today. Mr. Blue, I'd like to turn the conference back to you, sir, for any closing comments.
Robert Blue, Chair President and Chief Executive Officer
Thanks, everybody, for taking the time to join the call today. I hope you enjoy the rest of the day and your Halloween.
Operator, Operator
Thank you very much, Mr. Blue. Ladies and gentlemen, that will conclude today's Dominion Energy Third Quarter Earnings Call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.