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Frequent Contributor

Dominion, Duke abandon plans to build $8B Atlantic Coast Pipeline

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Re: Dominion, Duke abandon plans to build $8B Atlantic Coast Pipeline

Pardon this repost from the Utility and Energy threads:

 

Holy Cow!  Look at this headline for a lazy Sunday from the WSJ!

Companies Cancel Atlantic Coast Pipeline After Years of Delays

https://www.wsj.com/articles/companies-cancel-atlantic-coast-pipeline-after-years-of-delays-11593975...

Berkshire and BAM are apparently involved in a deal with Dominion to buy much/most of its midstream business.  Be interesting to see what this does to the dividend.

Makes you wonder if another pipeline will ever be built in the US, other than perhaps in Texas.  What about Line 3 in Minnesota for Enbridge.  Not sorry I'm not involved there.

Edited to add:

They (Dominion) will rebase their dividend and plan paying approximately $2.50 in 2021, compared to my previous forward estimate of $3.76 annually.  This works out to a roughly 33.5% cut.  Though they do expect dividend growth to pick up to 6% or so.

No word from Duke yet.

Truly nothing is safe or sacred these days, it seems.

https://news.dominionenergy.com/2020-07-05-Dominion-Energy-Agrees-to-Sell-Gas-Transmission-Storage-A...

Second edit:

Dominion has a conference call scheduled for tomorrow (Monday 7-6-20) at 9 am Eastern, 8 am Central.

https://investors.dominionenergy.com/events-and-presentations/event-details/2020/Dominion-Energy-Inv...

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Re: Dominion, Duke abandon plans to build $8B Atlantic Coast Pipeline

There was a lot of legal uncertainty.   Dominion had stacked the deck so to speak over the years in VA with moving some regulatory authority of them from the State Corporation Commission to the legislature where they had a lot of influence.  That has changed with the legislature now not in their pocket.  They could see despite battles, there would be a price to pay in other aspects of their business.  

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Re: Dominion, Duke abandon plans to build $8B Atlantic Coast Pipeline


@rumples wrote:

There was a lot of legal uncertainty.   Dominion had stacked the deck so to speak over the years in VA with moving some regulatory authority of them from the State Corporation Commission to the legislature where they had a lot of influence.  That has changed with the legislature now not in their pocket.  They could see despite battles, there would be a price to pay in other aspects of their business.  


I agree. It is not legality because Supreme has already approved. But, the poliitcal evironment has changed and is also changing under our feet as we speak. These companies will not be able to buy the legislators anymore and will not have any control on the politics even with their money.

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Re: Dominion, Duke abandon plans to build $8B Atlantic Coast Pipeline

Yes, I should have chosen my words better, but I was in a rush to watch Masterpiece.  Dominion has gotten a lot of what it has wanted when oversight moved from the SCC to the state legislature.  Now, its filled with members who are publicly refusing their donations; rate increases, rebated to customers, who will pay for burying of thousands of miles of electric lines are on the agenda for the next few years.  Moving their oversight back to the SCC might be better for all; the SCC has three judges who have staggered six year terms who determine most everything when it comes to utilities in VA. 

https://scc.virginia.gov/pages/About-the-SCC

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