Robert M. Blue
Chair, President and Chief Executive Officer at Dominion Energy
Thank you, David, and good morning, everyone. During 2022, we delivered earnings and dividend growth in line with our guidance, provided safe, reliable and affordable energy, while demonstrating careful environmental stewardship, served our customers and invested in our communities and made meaningful progress on our regulated investment programs focused on decarbonization and resiliency.
I'll begin by highlighting our annual safety performance. As shown on Slide 3, our employee OSHA injury recordable rate continues to compare favorably with the company's long-term historical results, as well as national, industry and regional electric utility averages. However, our ultimate goal has been and continues to be that none of our colleagues get hurt ever.
Next, on reliability, which our customers consistently indicated as their highest priority. In the past year, customers in our electric service areas in Virginia, South Carolina and North Carolina had power 99.9% of the time, excluding major storms. And it's worth noting that Virginia reached record summer peak demand in August, an all-time peak demand in December. As they do time and time again, our colleagues rose to the challenge and kept our system delivering without major or extended interruption during these demanding load conditions. The scale of our team and resiliency of our system were never more evident than during the December winter storm. And we also did not experience any major or extended service disruptions.
Finally, affordability. Our rates continue to be lower than national and regional averages. As we discuss later, we're very focused on ensuring that our customers are not priced out of the significant long-term benefits that will result from our decarbonization and resiliency investment programs. On that same theme, 2022 was a significant year in terms of advancing our regulated decarbonization and resiliency strategy.
In Virginia, the State Corporation Commission approved several rider-eligible investment programs, including our offshore wind project, subsequent license renewals of our four nuclear units, our second clean-energy filing of new solar and energy storage projects in Phase II of our grid transformation program. Additional rider-eligible investments currently under SEC review include new solar and energy storage projects and our third annual clean energy filing and high voltage electric transmission necessary to continue to serve growing customer demand and data center load.
In South Carolina, we achieved our second-best year ever for service reliability. In December, Moody's upgraded Dominion Energy South Carolina's credit rating citing evidence of the company's "improved regulatory and stakeholder relationships". In our Gas Distribution segment, we invested over $300 million, modernizing infrastructure that is safer, more reliable and better for the environment. We completed our LNG peaking supply facility in Utah, and we increased the number of our renewable natural gas projects in operation or under construction to 21.
All told, our nuclear units produced about 50 million megawatt hours of low-cost zero-carbon baseload power. That's roughly 40% of our total generation production as a company. Our fleet's performance continues to be exemplary, especially in periods of extreme weather, during which our stations provide vital stabilizing support to the grid and price stability in their respective regions. Our power purchase agreement in Connecticut saved customers nearly $300 million.
In summary, the regulated decarbonization and resiliency investment opportunity that we've outlined on previous earnings calls will continue to play a key role in driving the long-term growth of the company for years to come. Before transitioning to comments on the business review, let me also highlight progress around our sustainability goals. I'm pleased to report that through 2021, we've reduced Scope 1 carbon emissions from our electric operations by 46% since 2005 and Scope 1 methane emissions from our gas operations by 38% since 2010.
Notwithstanding the strong performance, we recognize the need to look holistically at our company's footprint, which is why during 2022, we expanded our net zero commitment to include all Scope 2 emissions and the material categories of Scope 3 emissions. These new commitments align with our focus on helping our customers and suppliers decarbonize. Finally, we increased the diversity of our workforce to 37%, an increase of nearly 4 percentage points since 2019, while also increasing our procurement spend with diverse suppliers to over $1.3 billion, representing 17% of our supplier spend, an increase of 4 percentage points since 2019.
Now let me turn to the top-to-bottom business review. I'm leading the effort with support from the full management team and in frequent consultation with our Board. We're devoting all necessary resources to ensure that we thoroughly and methodically review every aspect of our business. When we announced the review in November, I indicated that we would be guided by the following principles as shown on Slide 5.
A commitment to our state-regulated utility profile with an industry-leading investment opportunity focused on decarbonization and resiliency, a commitment to our current dividend, a commitment to our current credit profile, and a commitment to shareholder value enhancement and to transparency. None of those principles have changed. We are proceeding with pace and purpose. And as a result, we're able to provide additional commentary on how we believe we should optimally position Dominion Energy at the conclusion of the review to create maximum long-term value for our shareholders.
First, focus on delivering durable, high-quality and predictable long-term earnings growth profile. We recognize the importance of executing consistently against any earnings guidance offered post review. Second, we believe it is critical to position our regulated utilities to earn a fair and competitive return on investment. We know that investors have choices about where they can confidently allocate long-term capital.
Third, we know it is our responsibility to constantly look for ways to optimize the efficiency of our operations without losing sight of the absolute necessity of meeting high customer service standards. In recent years, we've driven down cost through improved processes, innovative use of technology and other best practice initiatives. We've included our O&M performance metrics in the appendix of today's materials. As part of the review, we are evaluating what we can additionally do on costs within the context of the significant operational and cost efficiency we have achieved over the years.
Fourth, we believe that our financial credit metric performance needs strengthening. We want to emerge from the review with the ability over time to consistently meet and exceed our downgrade thresholds even during temporary periods of cost or regulatory pressure. As part of the review, we're analyzing the most efficient sources of capital to fund our growth programs, while seeking to minimize any amount of ongoing external equity financing need.
Finally, we believe it is important to affirm our commitment to the dividend. I'll note here our announcement this morning that the 2023 dividend subject to Board approval will be equal to the 2022 dividend. We believe that it is important to achieve potentially over time, and without reducing the dividend, a payout ratio consistent with our current 65% ratio. Since the announcement, we've spoken with hundreds of equity and fixed income investors and received valuable and direct feedback, much of which has affirmed our focus on these priorities.
Investors have also understandably been focused on the go-forward earnings potential of the company. Given that the review is still underway, we have and will continue to refrain from providing that guidance until the review is complete. I will say that the outcome will be informed by the principles and priorities I just outlined. We will continue to be deliberate in making ourselves available for input from the company's current and prospective capital providers.
Let me now turn to address the Virginia Legislative Session. There is legislation pending that revises our regulatory model. In addition, there is legislation that would, subject to commission approval, provide for a passive equity partner in our offshore wind project. It is too early to predict the outcome of any legislation. We remain engaged with stakeholders in the process.
In terms of timing, as shown on Slide 6, the Virginia General Assembly is scheduled to adjourn on February 25. The Governor then has until March 27 to sign, amend or veto legislation that has passed both chambers. In the case of the Governor amends or vetos a bill, the legislation returns to the General Assembly for what is typically a one-day reconvene session on April 12. At that time, the General Assembly may vote to override a veto or accept or reject amendments proposed by the Governor.
The Governor then has approximately 30 days to act on legislation that has been addressed in the reconvened session. Having a clear and definitive understanding of the future Virginia regulatory contract is a key input for the business review. Therefore, legislation timing will influence the cadence at which we're able to share more details about the business review in the future.
Steven will share some additional thoughts on investor communication in his prepared remarks. I know the business review is of paramount importance to our stakeholders. Let me reiterate my confidence that we're executing a thorough expeditious and comprehensive review with the goal of ensuring that Dominion Energy is best positioned to create significant long-term value for our shareholders, our customers and our employees.
With that, I'll turn it over to Steven to address financial matters before I provide further business updates on the execution of our plan.
