Dominion Energy Announces Closing of Sale of Public Service Company of North Carolina

Rhea-AI Summary

Dominion Energy (NYSE: D) has closed the sale of Public Service Company of North Carolina to Enbridge Inc. for approximately $3.2 billion. This marks the final transaction in a series of three gas utility sales to Enbridge, announced in September 2023, with a total enterprise value of about $14 billion. The sale is part of Dominion Energy's comprehensive business review, which has resulted in $18 billion in debt reduction and improved balance sheet.

CEO Robert M. Blue highlighted the successful closure of three separate transactions within 12 months, emphasizing employee protections for nearly 3,500 workers. Dominion Energy is also on track to close a deal selling a 50% noncontrolling interest in the Coastal Virginia Offshore Wind project to Stonepeak, expected to yield an additional $3 billion in debt reduction by year-end.

Positive

• Closed sale of Public Service Company of North Carolina for $3.2 billion
• Completed $14 billion worth of gas utility sales to Enbridge
• Achieved $18 billion in debt reduction through business review
• On track for additional $3 billion debt reduction from Coastal Virginia Offshore Wind project sale

Negative

• Divestment of profitable gas utilities may impact future revenue streams

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• Final of three gas utility closings as part of Enbridge transactions announced in September 2023
• Another major milestone in successful conclusion of company's top-to-bottom business review

RICHMOND, Va., Oct. 1, 2024 /PRNewswire/ -- Dominion Energy, Inc. (NYSE: D), today announced closure of the sale of its Gastonia, N.C.-based natural gas utility, Public Service Company of North Carolina, Incorporated, to Enbridge Inc. (TSX: ENB) (NYSE: ENB) for approximately $3.2 billion, including assumed indebtedness and adjusted for customary closing items.

Public Service Company of North Carolina serves about 600,000 natural gas utility customer accounts in North Carolina.

This is the last of three separate transactions as part of an agreement the company and Enbridge announced on Sept. 5, 2023, whereby Dominion Energy would sell its Ohio-, Utah-, and North Carolina-based gas utilities for a total enterprise value, inclusive of assumed debt, of approximately $14 billion. Previous transactions closed in March and May.

Robert M. Blue, chair, president and chief executive officer of Dominion Energy, said:

"Before announcing our intention to sell our high-performing gas distribution companies to Enbridge, we negotiated significant employee protections for nearly 3,500 outstanding workers who have set the standard for industry reliability, environmental and safety performance, customer service, and community engagement and who have now joined Enbridge. We're proud of that, and we're also proud of the fact that we were able to work collaboratively with Enbridge and regulators in five states to close three separate transactions in 12 months.

"Today's announcement represents another major milestone in the successful conclusion of a year-long, top-to-bottom business review that so far has resulted in $18 billion in debt reduction and improved our balance sheet to fund the projects necessary to fulfill the company's incredibly important mission to provide the reliable, affordable, and increasingly clean energy that powers our customers every day."

Dominion Energy is on track to close on its agreement to sell a 50% noncontrolling interest in the Coastal Virginia Offshore Wind commercial project to Stonepeak by year-end, as previously announced, which would result in an additional $3 billion in debt reduction.

About Dominion Energy 
Dominion Energy (NYSE: D), headquartered in Richmond, Va., provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 400,000 customers in South Carolina. The company is one of the nation's leading developers and operators of offshore wind and solar power and the largest producer of carbon-free electricity in New England. The company's mission is to provide the reliable, affordable, and increasingly clean energy that powers its customers every day. Please visit DominionEnergy.com to learn more.

Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the anticipated closing of Dominion Energy's sale of a 50% noncontrolling interest in the Coastal Virginia Offshore Wind commercial project (CVOW). These statements are subject to various risks and uncertainties. Factors that could cause actual results or outcomes to differ from those stated in any forward-looking statement include, but are not limited to, the parties' ability to obtain required regulatory approvals and consents and to satisfy the other conditions to closing the sale of a noncontrolling interest in CVOW on a timely basis or at all, as well as certain other factors identified from time to time in the reports Dominion Energy files with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec. 31, 2023. Any forward-looking statement in this release speaks only as of the date of this release, and Dominion Energy assumes no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this release.

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SOURCE Dominion Energy

FAQ

What was the value of Dominion Energy's (D) sale of Public Service Company of North Carolina?

Dominion Energy (D) sold Public Service Company of North Carolina to Enbridge for approximately $3.2 billion, including assumed indebtedness and adjusted for customary closing items.

How much debt reduction has Dominion Energy (D) achieved through its business review?

Dominion Energy (D) has achieved $18 billion in debt reduction through its comprehensive business review, with an additional $3 billion expected from the sale of a stake in the Coastal Virginia Offshore Wind project.

When did Dominion Energy (D) announce the agreement to sell its gas utilities to Enbridge?

Dominion Energy (D) announced the agreement to sell its Ohio-, Utah-, and North Carolina-based gas utilities to Enbridge on September 5, 2023.

How many customer accounts did Public Service Company of North Carolina serve?

Public Service Company of North Carolina served about 600,000 natural gas utility customer accounts in North Carolina.