How Is Dominion Energy’s Revenue Growth Faring?
Dominion’s revenue growth
US utilities have been experiencing flat electricity demand growth for the last several years, driven by increasing energy efficiency initiatives. Utilities (XLU) (VPU) are thus expanding in renewables, midstream, and gas. Dominion Energy’s revenues from gas operations increased after its Questar acquisition last year. Its Cove Point Liquefaction facility and Atlantic Coast Pipeline are expected to be in service in the near future and could significantly support Dominion’s top line.
It should be noted that midstream operations generally offer a much higher growth rate than the low single-digit growth rate offered by the electricity segment.
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Prior to the Questar acquisition, Dominion Energy’s revenue growth was trending downward until 2016. In the last five years, its average year-over-year revenue growth rate was flat to negative.
Dominion Virginia Power
Like many other utilities in the country, Dominion Energy has been focusing on expanding its customer base, which has positively impacted its revenues. Dominion Virginia Power, Dominion Energy’s principal utility in Virginia, expanded its customer base more than 1% in the last few years, which is marginally higher than the industry average.