After a shareholder vote Wednesday, Dominion Energy will issue a report on how it is responding to the risk of stranded natural gas assets as the global response to climate change intensifies.
“The risks are very high right now when it comes to climate change,” said Freeda Cathcart, the Virginia shareholder who put forward the proposal, during the company’s annual shareholder meeting at Norfolk State University.
Stranded assets are infrastructure that has been built but becomes useless or redundant before ratepayers have finished paying it off. Environmental groups and some investors are concerned that as utilities shift away from fossil fuels, companies nationwide could be left on the hook for costs related to gas plants and pipelines shuttered before the end of their useful life.
In its 2022 proxy statement, a document that outlines matters up for shareholder vote, Dominion’s board of directors wrote that “the company is not investing in natural gas infrastructure in a manner that may lead to stranded assets.”