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Economic Moat

Dominion Energy has a narrow economic moat

Legal protection for Dominion Energy’s local electricity networks keeps rival distributors from serving the same customers. Building competing wires alongside its existing system would also be costly and unlikely to pay off, while regulated rates give Dominion a way to recover approved costs and earn a profit.

What protects Dominion Energy from competitors

Efficient Scale

Dominion’s established electricity networks serve defined areas in Virginia, North Carolina and South Carolina. These local markets are best served by a shared network: a newcomer building parallel wires would face substantial costs while dividing the same customer base, making entry economically unattractive.

Intangible Assets

State rules prohibit competing electricity distributors within Dominion’s service territories in Virginia, North Carolina and South Carolina. This legal protection prevents rivals from taking its delivery customers simply by offering a lower price.

What could weaken Dominion Energy's moat

2 risks to watch

One for each source of the moat: what could happen and how it would weaken it