TacticScaleWhat Dominion Energy Does & How It Makes Money (D)
Updated October 2026 · reflects Dominion Energy's latest reported financials
Regulated electric and gas utility serving Virginia, North Carolina, and South Carolina. Most of its revenue comes from regulated electricity and gas rates, which state regulators set so the company can recover its costs and earn a return on the power plants and grid it has built.
How Dominion Energy makes money
Most of its revenue comes from regulated electricity and gas rates, which state regulators set so the company can recover its costs and earn a return on the power plants and grid it has built. A smaller part comes from long-term contracts that sell output from its nonregulated renewable power and renewable natural gas assets.
What Dominion Energy does
Dominion Energy, headquartered in Richmond, Virginia, is a regulated U.S. utility with three segments. Dominion Energy Virginia generates, transmits, and distributes electricity to about 2.8 million customers in Virginia and North Carolina. Dominion Energy South Carolina serves about 0.8 million electric customers and about 0.5 million natural gas customers in the central, southern, and southwestern parts of South Carolina. The Contracted Energy segment runs a nonregulated fleet of long-term contracted renewable power plants and renewable natural gas facilities. As of December 31, 2025, the company had about 30.7 GW of generating capacity, 10,800 miles of transmission lines, and 80,400 miles of distribution lines. It was incorporated in 1983 and was formerly called Dominion Resources, Inc. Because most of its revenue comes from regulated rates, its results depend largely on how much it invests in its grid and generation and on the rate decisions of state regulators.
Products & services
- Dominion Energy Virginia (electric utility)
- Dominion Energy South Carolina (electric and gas utility)
- Electric power generation (~30.7 GW capacity)
- Electric transmission and distribution networks
- Natural gas distribution
- Contracted renewable electricity and renewable natural gas
What is Dominion Energy worth?
On an owner-earnings DCF, Dominion Energy's most-likely value is about $9 versus a recent price near $62 (86% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$5) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $62 is above even the optimistic Bull case ($11) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 151.3× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Duke Energy (DUK) · Exelon (EXC) · FirstEnergy (FE) · Chesapeake Utilities (CPK) · The Southern (SO)