Dominion Energy, Inc. (NYSE: D) is back in the spotlight on Tuesday, December 23, 2025, after a sharp, policy-driven selloff tied to offshore wind — and a partial rebound as investors weigh how “temporary” the disruption may be.
By late U.S. trading, Dominion Energy stock traded around $58.18, up about 1.7% on the day (after opening near $56.99), as volume ran above 5 million shares.
That bounce comes one day after the Trump administration suspended leases for five major offshore wind projects under construction on the U.S. East Coast, including Dominion’s flagship Coastal Virginia Offshore Wind (CVOW) buildout — a move that triggered broad sector weakness and renewed questions about regulatory risk in U.S. renewables. [1]
Why Dominion Energy stock is moving today
1) Washington’s offshore wind “pause” hits Dominion’s biggest growth project
According to Reuters, the U.S. Department of the Interior suspended leases for five large offshore wind projects under construction after the Pentagon raised concerns that turbine blades and highly reflective towers could create radar interference, complicating threat detection. [2]
The affected projects include: Vineyard Wind 1, Revolution Wind, Sunrise Wind, Empire Wind 1, and Dominion’s Coastal Virginia Offshore Wind. [3]
While the government framed the action as a national-security response, the decision immediately became a market catalyst. Dominion shares fell Monday as the news hit, with outlets reporting the stock down roughly 3%–6% on the day, depending on the reference point and timing. [4]
2) Dominion’s response emphasizes “grid reliability” and data center demand
Dominion pushed back hard, arguing that CVOW is tied directly to grid reliability and to Virginia’s demand growth from military installations and data centers supporting AI workloads. Reuters reported Dominion saying the suspension threatens reliability for Virginia customers and explicitly referencing AI data centers. [5]
Local outlet WHRO reported Dominion described the federal directive as a 90‑day suspension of work, and included the company’s warning that stopping CVOW “for any length of time” risks reliability, jobs, and energy inflation. [6]
What this means for CVOW: scale, timeline, and what’s at risk
CVOW is not a small optional pilot. It is widely described as the largest offshore wind project of its kind in the U.S., and it is already well advanced.
Key project details reported across major outlets include:
- Capacity: about 2,600 megawatts (MW) [7]
- Buildout: expected to include 176 turbines [8]
- Impact: projected to power roughly 660,000 homes [9]
- Status: described as nearly 70% complete in AP coverage [10]
- Schedule: Barron’s reported completion expected by end of 2026, after more than a decade of development [11]
The immediate investor question is whether the “pause” functions like a brief procedural stop — or whether it becomes a prolonged delay that increases costs, pushes schedules, and adds uncertainty to long-dated cash flows.
Analysts split on duration: “weeks to months” vs “temporary and manageable”
The cautious case: delays can get expensive fast
A MarketWatch analysis warned the offshore wind pause could last “weeks to months,” with the potential for significant costs and delays and likely legal fights from stakeholders seeking injunctions. The piece also cited concern from policy-focused analysts over the uncertainty created by direct federal intervention mid‑construction. [12]
From a stock-market perspective, this scenario matters because utilities like Dominion often rely on predictable regulatory treatment to recover large capital projects over long time periods. Any pause that shifts timelines can ripple into financing needs, construction costs, and rate-case negotiations.
The constructive case: CVOW is already embedded in rates and guidance
A separate thread of commentary argues the market may be over-penalizing Dominion for a disruption that could prove temporary — and, crucially, already accounted for in how the project is being financed and recovered.
Seeking Alpha reported that Goldman Sachs analysts expect the stop‑work order to have a temporary effect and see limited impact on Dominion’s financial outlook, noting that CVOW is already accounted for in rates and that 2025 guidance remains unchanged (per their commentary). [13]
Barron’s also noted Evercore ISI remained optimistic about the project’s eventual completion, citing regulatory structures that mean customers are already funding the project; Evercore maintained an “In Line” rating and a $67 price target (as summarized by Barron’s). [14]
Dominion Energy stock forecast: where Wall Street targets cluster for 2026
Despite the political shock, consensus forecasts on Dominion remain relatively steady — and mostly point to modest upside from current levels.
Consensus price targets: low‑to‑mid $60s
Two widely followed forecast compilers show a similar “center of gravity”:
- StockAnalysis lists a consensus rating of Hold with an average price target around $64.75 (range $59 to $70). [15]
- MarketBeat also reports a Hold consensus and an average price target of about $64.75, with a similar range. [16]
Meanwhile, a Nasdaq-hosted Fintel summary (published on Nasdaq) reported an average one-year price target around $65.18 with a wider low/high band (about $54.05 to $73.50)—illustrating how vendor methodologies can differ while still landing in roughly the same “mid‑$60s” neighborhood. [17]
Recent notable calls: Barclays lifts target; others stay mixed
Recent analyst notes cited in market summaries include:
- Barclays raised its Dominion price target to $64 from $63 and reiterated Overweight, as part of its utilities outlook. [18]
- JPMorgan maintained an underweight view and cut its target (as reflected in compiled analyst tables). [19]
- BMO Capital Markets trimmed its price objective (reported in market summaries tied to Dominion coverage). [20]
The throughline: even among mixed ratings, Dominion is still being modeled as a utility with recoverable investment and income appeal, not a company facing an existential earnings reset — unless policy actions begin to impair the regulatory ability to earn returns on large projects.
Options and positioning: volatility spike and heavy call buying
A second reason Dominion Energy stock is getting outsized attention is the way traders reacted in derivatives markets.
MarketBeat reported unusually high call option activity on Monday, with investors buying 15,480 call options — roughly a 312% jump versus typical daily call volume — alongside elevated share trading volume. [21]
In practical terms, this kind of activity can reflect two competing behaviors:
- Speculative “buy-the-dip” positioning after a headline-driven selloff, and/or
- Hedging and volatility trading as investors brace for fast-moving policy and legal updates
Either way, it signals that the market expects more headline sensitivity around Dominion in the near term.
A second Dec. 23 catalyst: Dominion’s Chesterfield gas “peaker” plant is on hold
Offshore wind isn’t the only Dominion-linked development hitting headlines on December 23.
Virginia Business reported that Dominion’s proposed Chesterfield Energy Reliability Center — a 944‑MW natural-gas “peaker” plant estimated around $1.47 billion — is on hold while the Virginia State Corporation Commission (SCC) considers a petition for reconsideration filed by opponents (including Appalachian Voices, the NAACP, and Mothers Out Front). [22]
The same report noted:
- The SCC’s reconsideration follows a petition raising concerns about health impacts, customer costs, and whether the plant is necessary under Virginia’s energy needs. [23]
- Virginia’s Department of Environmental Quality approved an air permit, but that does not override the SCC’s current pause. [24]
- The plant is projected to be in operation by June 1, 2029 (per Virginia Business). [25]
This matters for Dominion Energy stock because it underscores the balancing act in its capital plan: meeting surging demand (especially peak demand) while navigating permitting, regulatory scrutiny, and community opposition.
The macro backdrop Dominion keeps pointing to: electricity demand is surging
Dominion’s public messaging is increasingly tied to one dominant theme: load growth.
A Reuters analysis published today highlighted how AI data center electricity demand is pressuring U.S. grids and even keeping older “peaker” plants running longer than planned, especially in the PJM Interconnection region. [26]
That broader demand story is directly relevant to Dominion because Northern Virginia is one of the most data-center-dense regions in the world — and Dominion itself has argued that new “electrons” are needed to support data centers and national-security-linked infrastructure. [27]
Dividend, earnings guidance, and balance sheet: the “utility” part of the thesis
Dominion’s appeal to many long-term shareholders is not just growth projects — it’s also income and predictability.
Dividend snapshot
Dominion announced a quarterly dividend of $0.6675 per share (66.75 cents), payable Dec. 20, 2025, to shareholders of record Dec. 5, 2025, calling it the company’s 391st consecutive dividend to common shareholders (including predecessor company payments). [28]
Market summaries also commonly describe Dominion’s annualized dividend as about $2.67, with a yield in the mid‑4% range depending on the day’s price. [29]
Latest company guidance and growth outlook
In its third-quarter release, Dominion reported:
- Q3 2025 GAAP net income:$1.16 per share
- Q3 2025 operating (non‑GAAP) earnings:$1.06 per share
- Full-year 2025 operating EPS guidance: narrowed to $3.33–$3.48, midpoint $3.40
- Long-term operating EPS growth guidance:5%–7% through 2029, anchored off the 2025 midpoint (with an “excluding RNG 45Z” reference in its guidance framework) [30]
These are important anchors for any “Dominion Energy stock forecast” discussion, because they frame how the company expects to grow earnings even while funding major infrastructure.
Credit ratings: investment grade, but watch the outlook
Dominion’s investor materials list investment-grade ratings from major agencies, including Moody’s Baa2 and S&P BBB+, with Moody’s showing a negative outlook while S&P and Fitch are shown as stable. [31]
For investors, that mix often translates into a key risk metric: large capital programs (wind, grid, gas reliability) must remain financeable at reasonable rates — and that requires continued regulatory visibility.
What investors should watch next for Dominion Energy (D) stock
Here are the catalysts most likely to move Dominion Energy stock in the weeks ahead:
- Clarity on the offshore wind suspension timeline — whether work resumes quickly or the stoppage expands into a longer review process. [32]
- Any legal action by states, developers, or trade groups challenging the federal move (multiple officials have publicly discussed reviewing options). [33]
- Updates on CVOW cost recovery and schedule — especially if the pause creates measurable cost inflation or pushes the in-service timeline. [34]
- Virginia SCC developments on Dominion’s Chesterfield gas plant reconsideration, which could influence long-term reliability planning and capex timing. [35]
- Financing posture — including any use of equity programs or capital-market tools as Dominion funds its multi-year buildout (recent market reporting referenced an expanded at‑the‑market equity program). [36]
Bottom line: Dominion Energy stock is trading like a “utility with headline risk”
On December 23, 2025, Dominion Energy stock is trying to stabilize after a sudden policy shock aimed at offshore wind — a shock that directly touches its largest renewable construction project.
The bull case is straightforward: CVOW is far along, treated as recoverable in the regulatory framework, and essential to meet surging demand. [37]
The bear case is also clear: even a temporary federal pause increases uncertainty, and utility megaprojects can become far more expensive if timelines slip — especially when politics, permitting, and litigation stack up at the same time. [38]
For now, Wall Street’s aggregated targets still largely sit in the mid‑$60s, implying moderate upside from current trading levels — but the path there depends heavily on how quickly Dominion gets back to building, and how successfully it defends the regulatory underpinnings of its investment plan. [39]
This article is for informational purposes only and does not constitute investment advice.
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.barrons.com, 5. www.reuters.com, 6. www.whro.org, 7. www.barrons.com, 8. www.whro.org, 9. www.whro.org, 10. apnews.com, 11. www.barrons.com, 12. www.marketwatch.com, 13. seekingalpha.com, 14. www.barrons.com, 15. stockanalysis.com, 16. www.marketbeat.com, 17. www.nasdaq.com, 18. www.tipranks.com, 19. stockanalysis.com, 20. www.investing.com, 21. www.marketbeat.com, 22. virginiabusiness.com, 23. virginiabusiness.com, 24. virginiabusiness.com, 25. virginiabusiness.com, 26. www.reuters.com, 27. www.reuters.com, 28. news.dominionenergy.com, 29. www.marketbeat.com, 30. investors.dominionenergy.com, 31. investors.dominionenergy.com, 32. www.reuters.com, 33. www.reuters.com, 34. www.barrons.com, 35. virginiabusiness.com, 36. www.investing.com, 37. seekingalpha.com, 38. www.marketwatch.com, 39. stockanalysis.com
