Virginia's Senate Bill (SB) 1265 has become law, eliminating some of subsidiary Virginia Electric Power Co.'s (VEPCO) riders, and we estimate will lower parent Dominion Energy Inc.'s (DEI) EBITDA by about $350 million. The law is effective July 1, 2023. As such, we affirmed our ratings on Dominion Energy Inc., including our 'BBB+' issuer-credit rating on the company, but revised our rating outlook on Dominion Energy and its rated subsidiaries to negative from stable. The negative outlook reflects our base case expectations that DEI's financial measures will consistently weaken to below our downgrade threshold of funds from operations (FFO) to debt of 13% because of SB 1265, absent sufficient counter measures by DEI that strengthens its balance sheet. The negative
