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Stocks slip from records amid trade, tech earnings news

Summary

  • and fell as investors reacted to trade and tech news.
  • Trump, Xi meeting offers stability but no major trade breakthroughs.
  • and shares dropped despite strong earnings reports.
  • , Eli Lilly gained, while tumbled on weaker outlook

 

NEW YORK (AP) — The U.S. stock market is pulling back from its record heights on Thursday, as Wall Street sifts through mixed developments on everything from the war to profits for Big Tech behemoths.

The S&P 500 fell 0.7% and edged further from its all-time high set on Tuesday, even though slightly more stocks climbed in the index than dropped. The Industrial Average was up 6 points, or less than 0.1%, with an hour remaining in trading. The Nasdaq composite sank 1.2% from its record set the day before.

Stock markets elsewhere in the world were mixed, coming off a much anticipated meeting between the leaders of the world’s two largest economies. U.S. President Donald Trump hailed his talk with ‘s leader, Xi Jinping, as a “12” on a scale of zero to 10, and Trump said he would cut tariffs on China. But while the talks may offer some stability for the near term, major tensions remain between the two countries.

Plus, stocks had already run to records earlier this week on expectations for potentially big improvements coming out the Trump-Xi talks.

“The result was fine, but fine isn’t good enough given the expectations going in,” said Brian Jacobsen, chief economist at Annex Wealth Management. “The results were more like small gestures instead of a grand bargain.”

Also feeling the burden of high expectations were some of Wall Street’s most influential stocks.

Meta Platforms dropped 11.4%, cutting into what had been a 28.4% jump for the year so far, and was the heaviest weight on the S&P 500. Analysts said investors were likely perturbed by how much Facebook’s parent company said it’s planning to spend in 2026. Companies across the industry have been on an investment spree to build out their artificial-intelligence capabilities, and the concern is whether it will all pay off.

Microsoft sank 3.4% even though it reported stronger profit and revenue for the latest quarter than analysts expected. Analysts pointed to how it also expects to spend more on investments in 2026 than in 2025, while growth for its Azure business may have fallen a bit short of some investors’ expectations.

On the winning side of Big Tech was Alphabet. Shares of Google’s parent company climbed 3.3% after its profit and revenue for the latest quarter easily topped analysts’ expectations.

How such companies do matters incredibly for investors. The trio of Alphabet, Meta and Microsoft alone account for 14.5% of the total value of all the companies in the S&P 500 index, which dictates the movements for many 401(k) accounts. That means movements for them and a handful of other Big Tech companies can easily overshadow what hundreds of other stocks are doing.

Elsewhere on Wall Street, Chipotle Mexican Grill tumbled 17.2% after the restaurant chain pointed to pressures weighing on its customers, particularly younger ones and those who aren’t making high incomes. CEO Scott Boatwright said that households making less than $100,000 are dining out less often because of concerns about the economy and inflation.

He pointed specifically to 25- to 35-year-old customers, who are feeling the weight of unemployment, increased student loan repayments and slower growth with respect to inflation, and he said he thinks restaurants across the industry are seeing something similar. Chipotle cut its forecast for an important underlying measure of sales growth this year.

Eli Lilly, meanwhile, rose 4.6% after delivering stronger profit and revenue for the latest quarter than analysts expected. It credited strong growth for its blockbuster Mounjaro and Zepbound drugs for diabetes and obesity, and it raised its full-year forecasts for revenue and profit.

In the bond market, Treasury yields held relatively steady as traders continue to pare expectations that the  will cut its main interest rate in December.

Traders are still betting on it as likely, according to data from CME Group, but no longer as a near certainty. That’s after Fed Chair Jerome Powell admonished markets the day before, saying a December cut “is not a foregone conclusion — far from it.”

The Fed has lowered its main interest rate twice this year in hopes of boosting the slowing job market. But officials have also said they may have to halt cuts if inflation accelerates beyond its still-high level, because lower rates can worsen inflation.

The yield on the 10-year Treasury rose to 4.09% from 4.08% late Wednesday and from 3.99% the day before Powell’s warning.

In stock markets abroad, indexes dipped by 0.5% in France and by less than 0.1% in Germany after the European Central Bank decided not to move its main interest rate.

Tokyo’s Nikkei 225 edged up by less than 0.1% after the Bank of Japan likewise held rates steady.

Touhill leaving Arlington Economic Development

Arlington Director Ryan Touhill is leaving his job on Nov. 7, the Chamber of Commerce confirmed Thursday.

Kate Ange, who joined AED as deputy director in September 2023, will be acting director when Touhill departs to become community and economic development director for Phoenix, Arizona.

Touhill joined AED in November 2022, coming from the Alexandria Economic Development Partnership, where he was senior vice president and chief of staff. There, he helped with the successful campaign to land Amazon.com’s HQ2 East Coast headquarters.

At AED, he and his team helped secure CoStar’s headquarters relocation from Washington, D.C., announced in February 2024.

He also helped launch the Arlington Innovation Fund, which helps support local tech startups. Recipients have included SportAI, which provides analytics for fantasy sports and sports betting, and GenLogs, an AI company specializing in ground freight supply chains.

Lately, amid the Trump administration’s cuts to the federal workforce and federal contracting spending, Touhill has been working to help spread the word about assistance and resources for those who have been laid off.

Katharine "Kate" Ange. Photo courtesy Arlington Economic Development.
Katharine “Kate” Ange. Photo courtesy .

“Ryan Touhill’s thoughtful, methodical approach and collaborative partnership have been tremendously impactful,” Kate Bates, president and CEO of the Arlington Chamber, said in a statement. “He established a clear vision for AED through a strategic plan and defined key performance indicators to measure progress, leaving a strong foundation for the department to build on. I am confident that Deputy Director Kate Ange and the leadership team will continue to advance this work with the same dedication and strategic focus.”

will “soon begin” recruitment for the AED permanent director role, according to a Friday news release.

In a LinkedIn post, Touhill wrote, “I am excited to begin a new chapter in my economic development and public service journey … with the City of . … Over nearly 20 years of living, learning, working, and serving in Northern Virginia, I had the privilege of working with exceptional individuals. Together, we collaborated on projects small and large, helping to drive positive change in the communities we served. Many of you offered your guidance, mentorship, and friendship which often helped me navigate my career and work. I am very grateful for your generosity and will carry those experiences forward as I serve a new community.”

Farmers welcome China soybean deal but remain cautious

Summary

  • agrees to buy at least 25M metric tons of U.S. annually.
  • Farmers say the deal helps but doesn’t solve high production costs.
  • China will lift retaliatory and resume buying U.S. sorghum.
  • Analysts say the deal benefits Trump’s rural voter base ahead of elections.

OMAHA, Neb. (AP) — American farmers welcomed China’s promise to buy some of their soybeans, but they cautioned this won’t solve all their problems as they continue to deal with soaring prices for fertilizer, tractors, repair parts and seeds.

The Chinese promise to buy at least 25 million metric tons of soybeans annually for next three years will bring their purchases back in line with where they were before President  launched his  with China in the spring. But the 12 million metric tons that China plans to buy between now and January is only about half the typical annual volume.

“This is a very good thing. I’m very grateful,” said Iowa farmer Robb Ewoldt, who is a director with the United Soybean Board. “I don’t want to sound like a ungrateful farmer, but it doesn’t cure everything in the short term.”

Missouri farmer Bryant Kagay said it’s somewhat “crazy” that everyone is getting so excited about this deal when all it does is get farmers back to where they were before this trade war began.

“I don’t know why you would go to war on trade if you didn’t expect you could get a better outcome in the end,” said Kagay, who is part owner of Kagay Farms in Amity, Missouri,

Deal will help farmers

Secretary said China also agreed to remove all its retaliatory tariffs on American ag products, which should open the door for sales of other crops and beef. Plus, China promised to resume buying U.S. sorghum, which is another crop largely used for animal feed that depends on that market. More than half the sorghum and soybean crops are exported every year with much of that going to China.

Having these promises from China should make it easier for farmers to get the loans they need heading into next year, but Ewoldt said “I hope the administration doesn’t think that this solves everything in the next 6 to 8 months or ten months.”

Trump had promised to offer farmers a significant aid package this fall to help them survive the trade war with China, but it’s been put on hold because of the ongoing government shutdown. Rollins said that aid package is still in the works, but she promised the administration is ready to “step in the gap” and address any sort of harm the trade war has caused farmers.

“We’ll see what the market does and we will be ready to continue to step in if in fact, we believe it’s necessary,” Rollins said.

Kurt Campbell, a former deputy secretary of state in the Biden administration and now chairman of The Asia Group, said it’s not surprising that Trump negotiated these soybean purchases because they will benefit one of his core constituencies in rural America.

“Its key deliverables appear to be things that matter greatly to President Trump in the short term, notably progress on fentanyl and increased sales of soybeans from congressional districts that matter to the Republican party,” Campbell said.

China is the biggest soybean market

China is the world’s largest buyer of soybeans. It had been consistently buying about one quarter of the American crop in recent years. China bought more than $12.5 billion worth of the nearly $24.5 billion worth of U.S. soybeans that were exported last year.

China quit buying American soybeans this year after Trump imposed his tariffs. Yet it had been steadily shifting more of its purchases to Brazil and other South American nations over the past decade.

Last year, Brazilian beans accounted for more than 70% of China’s imports, while the U.S. share fell to 21%, World Bank data shows. Argentina and other South American countries also are selling more to China, which has diversified to boost food security.

Getting back to normal trade

Farmer Caleb Ragland, who is president of the American Soybean Association trade group, said this agreement lays the foundation for restoring China’s traditional purchases of 25 million to 30 million metric tons of American soybeans.

“This is a meaningful step forward to reestablishing a stable, long-term trading relationship that delivers results for farm families and future generations,” said Ragland, who farms near Magnolia, Kentucky.

Indiana farmer Brent Bible said this deal with China sounds good— as long as they actually do what they promised, unlike what happened with the  China signed with the United States in 2020 after Trump’s initial trade war. The COVID-19 pandemic disrupted trade between the two nations just as the agreement went into effect. In 2022, U.S. farm exports to China hit a record, but then fell.

“If we see actionable purchases and follow through by China, then it’s great,” Bible said.

Virginia Beach maritime contractor to hire 86 workers

Virginia Beach maritime government contractor Anchor Innovation plans to add 86 jobs as part of an , announced Thursday.

Founded in 2002, Anchor Innovation is a service-disabled, veteran-owned contractor providing marine maintenance and support to the , including vessel repairs and upgrades.

Anchor Innovation plans to invest $213,000 on the expansion, which includes leasing additional boatyard space and opening a new 1,800-square-foot office in the city’s area. The new location will house administrative functions, such as human resources, payroll and finance, freeing up more workshop space for technical staff and project work, according to a news release.

The governor’s office did not provide a timeline for the expansion and hiring. Anchor Innovation and the governor’s office did not immediately return requests for comment.

“Anchor Innovation’s expansion is a powerful example of Virginia’s entrepreneurial spirit and the strength of Hampton Roads’ veteran community,” Youngkin said in a statement. “With hundreds of thousands of service members and veterans calling this region home, has become one of the best places in the nation for veterans to start and grow a business. Anchor’s continued success is proof that Virginia leads the way in creating jobs, growing businesses, and honoring those who served.”

Anchor Innovation Chief Growth Officer Mark Olson said the company is accelerating its ability to recruit, train and retain talent and working to scale up its infrastructure amid recent growth in areas such as unmanned surface vessels and advanced maritime technologies.

The Virginia Partnership collaborated with Virginia Beach’s city government to secure the expansion.

 

China delays rare earth export limits in trade deal

Summary

  • agrees to delay rare earth for one year.
  • The move offers short-term relief amid tensions.
  • U.S. invests $400M to expand domestic rare earth production.
  • Analysts urge allies to use the window to diversify supply chains.

China’s promise to delay its newest restrictions on the export of the that are crucial to many high-tech products for one year as part of a  President secured creates an opportunity for the U.S. and its allies to bolster their own production and processing capabilities. But it will be hard to undercut China’s stranglehold on the market.

The restrictions China imposed on rare earths this year have been a key issue in the trade talks between Beijing and Washington. Trump responded angrily to China’s latest rules with a threat to impose an additional 100% tariff on all Chinese imports, but he has since dropped that demand as part of this agreement.

This week’s deal will delay the regulations that would have required foreign companies to get special approval to export items that contain even small traces of rare earths elements sourced from China even if those products were made elsewhere by foreign companies, but it doesn’t eliminate restrictions that were imposed in the spring after Trump imposed his .

These are needed in a broad range of products, from jet engines, radar systems, electric vehicles and robots to consumer electronics including laptops and phones. China accounts for nearly 70% of the world’s rare earths mining. It also controls roughly 90% of global rare earths processing.

Temporary relief

Neha Mukherjee, a rare earths analyst at Benchmark Mineral Intelligence, said the one-year delay in China’s new rare earth export controls that were announced earlier this month provides some short-term relief that will allow exports to return to a more normal level, but it doesn’t change the broader strategic picture, and it’s important for America and its allies to continue investing in the industry.

“This move appears more tactical than structural, a pause to stabilize trade relations with the U.S. rather than a policy reversal,” Mukherjee said. “This is a temporary window for the U.S. and allies to accelerate diversification before controls likely return.”

The White House has made it a priority to revive and expand the domestic critical minerals industry while also seeking supplies of these elements from allies. The Pentagon agreed to invest $400 million in rare-earth producer and promised to ensure every magnet made at its massive new plant is bought and set a minimum price for its neodymium and praseodymium products for a decade.

The West is making progress

Ian Lange, who is an economics professor who focuses on rare earths at the Colorado School of Mines, said he thinks the U.S. and its allies can make significant progress in a year’s time to lessen China’s dominance of the rare earths market.

There are a number of promising efforts already underway. Noveon will continue to produce rare earth magnets at its plant in Texas, and MP Materials and USA Rare Earth are both scheduled to begin producing magnets at their plants over the next year. And starting next year MP also plans to begin processing the heavy rare earths China had restricted in the spring at the only operating U.S. rare earths mine in Mountain Pass, California.

And Lange said that other efforts to recycle rare earths and begin producing them as byproducts at existing steel and zirconium mines may also start to pay off. The United States’ recent agreement with Australia will also help provide additional materials to counter China.

China has shown little sign of being willing to allow rare earth exports to defense contractors, which is concerning given the national security implications. But military demand for rare earths is relatively small, so America might be able to supply its needs by prioritizing rare earths from other sources for use in fighter jets, guided missiles and nuclear submarines.

Investing in the industry is a priority

Industry executives have said this needs to be the “Manhattan Project moment” for rare earths if the United States is ever to break China’s grip over them.

“We’re moving into overtime with China and they currently have the ball on our 10-yard line. Our best defensive move is to tie together our global refining and supply partnerships with allies and swiftly invest in innovation in the United States,” said Wade Senti, president of the U.S. permanent magnet company AML.

Noveon Magnetics CEO Scott Dunn said the details of “how China implements this suspension will matter greatly, and with the deal limited to one year, it’s clear the U.S. must use this window to strengthen domestic capabilities and reduce long-term exposure to geopolitical risk.”

Lange said he is optimistic overall because the United States isn’t starting from zero, and if these efforts continue at their current pace, America should be much better off in a year even if some of the things the government is investing in will take several years to become a reality.

“Because in a year, we don’t really care what they do. We’ve got an independent . At least I don’t think we’re too far from that,” Lange said.

Botetourt hires new economic development director

Botetourt County announced Thursday that it has hired Kyle Rosner as its new director of .

He began working in the new position on Monday, Oct. 27. Rosner succeeds Ken McFadyen, who left in May to become Alleghany County’s county administrator. The county’s most recent major economic development win was a 312-acre Google data center planned for the Botetourt Center at Greenfield industrial park, announced in June.

“ is a leader among Virginia localities, and I’m honored to be a part of the team,” said Rosner in a statement. “I look forward to continuing the county’s long track record of innovative and successful approaches to a strong and diverse economy.”

A native of Frederick County, Rosner has a bachelor’s degree in political science and history from Radford University.  Before joining Botetourt, he was a senior adviser at the National Telecommunications and Information Administration, where he worked on the $42 billion Broadband Equity, Access and Deployment (BEAD) grant program. Before that, he was director of government affairs for All Points Broadband. He also worked for Gov. Ralph Northam as the state’s deputy broadband adviser.

“Kyle will be able to bolster the efforts of Botetourt to focus services to business and industry already in Botetourt and to help press ahead with technology advancements and small business development,” said County Administrator Gary Larrowe in a statement. “We are excited to have Kyle augment Team BoCo as we grow investment and employment opportunities.”

 

Fortune 500 retailer CarMax lays off 350 employees

Fortune 500 used car , headquartered in , is laying off about 350 employees nationally, including 55 workers in Virginia.

Of the 55 affected employees in Virginia, 25 are in the area, the nation’s largest used car retailer said in an email Thursday.

The 350 cut roles were in the Customer Experience Center (CEC) team and followed an internal review of that team, according to CarMax. Customer Experience Center employees assist customers as they buy and sell cars, including supporting customers with shopping and financing over the phone and online.

“We recently conducted a comprehensive review of our CECs and have determined that the reorganization of the CECs will help us best serve our customers and strengthen our business for the future,” CarMax said in a statement. “After implementing several processes and technological improvements to streamline our customer communication support function, we are now able to realign key work areas, resulting in the consolidation of some teams.”

The company said it is offering support to affected employees, including severance, career support services and the opportunity to apply for open internal roles.

As of this past summer, CarMax had about 30,000 employees, including 3,300 in Virginia. The company has more than 250 stores in 41 states.

In summer 2024, CarMax laid off approximately 415 employees nationwide, including 14 employees in the Richmond region and approximately 400 drivers, according to the Richmond Times-Dispatch. The company said a review determined it needed fewer drivers with its updated logistics staffing model and eliminated 15 product delivery associate roles following a reorganization of the product department.

Founded in 1993 as a subsidiary of electronics retailer Circuit City, CarMax reported more than $26 billion in fiscal 2025 revenue.

For the second quarter of its fiscal 2026 year, CarMax reported total revenues of $6.59 billion, down 6% from the second quarter of fiscal 2025. For the previous six months, though, CarMax had $14.14 billion in total revenues, down 0.1% from the first six months of fiscal 2025.

In the second quarter, CarMax’s combined retail and wholesale used vehicle sales numbered 338,031, down 4.1% year-over-year.

“While this was a challenging quarter, we remain confident in our long-term strategy and the strength of the earnings model that we have built,” CarMax President and CEO Bill Nash said in a statement.

As of 2:39 p.m. Thursday, CarMax shares were trading for $42.34, down from $41.43 at open and $42.46 from the previous day’s close.

The company’s selling, general and administrative expenses in the quarter decreased 1.6% to $601.1 million compared to fiscal 2025’s second quarter.

Nash also said, “We will continue to drive SG&A efficiency, targeting at least $150 million in incremental SG&A reductions over the next 18 months.”

In September 2024, the company announced that it would be naming sponsor for the Richmond Flying Squirrels’ new ballpark, set to open in spring 2026. Dubbed CarMax Park, the baseball stadium is expected to cost about $110 million, and CarMax’s contribution was not disclosed.

Youngkin-Senate university dispute heard by Virginia Supreme Court

Summary:

  • A Fairfax County Circuit judge ruled in favor of Virginia Democratic senators to block the seating of eight rejected university board members in August
  • Representing three rectors, the attorney general’s office asks to vacate preliminary injunction

The ongoing battle between the governor and Virginia Senate Democrats over university board control continued Thursday, this time within the confines of the , where the state attorney general’s office argued that a Fairfax County Circuit judge’s decision in favor of the Senate Democrats should be vacated.

On July 29, Fairfax County Circuit Court Judge Jonathan Frieden issued a preliminary injunction, ruling for the nine Virginia Senate Democrats who sued the rectors of , Virginia Military Institute and the to block the universities from seating disputed gubernatorial board appointees, who include former Ken Cuccinelli, former state Secretary of Commerce and Trade Caren Merrick and others with significant conservative political and business connections.

In a June meeting, the Democrat-controlled committee voted 8-4 to reject ‘s eight appointees he had nominated in May to the three universities’ boards. This year, the committee has rejected 22 Youngkin picks for the three boards, voting on party lines.

Frieden’s ruling said that if the lawmakers’ votes to reject the appointees were nullified, that would constitute “irreparable harm” to the legislators’ rights, and he affirmed that the Senate Privileges & Elections Committee has the right to speak for the entire Virginia General Assembly when it is not in session.

Virginia Attorney General ‘ petition, filed Aug. 12, asks that the Supreme Court of Virginia vacate the injunction. His office, represented Thursday by Virginia Solicitor General Kevin Gallagher, has argued that the entire General Assembly must be called to vote on the matter if the Privileges & Elections Committee wishes to reject gubernatorial appointees outside of regular session. Miyares also argues that the rectors were not the correct parties to be sued.

Two of the seven justices hearing the case Thursday in asked multiple questions of Gallagher, who was named the state’s solicitor general in August after serving as principal deputy solicitor general.

“I’m having trouble, frankly, understanding,” said Justice Wesley G. Russell Jr., positing that if a Senate committee votes to reject a board appointee, the matter would be automatically finished, since that person would not receive a floor vote under current rules. “How can that possibly not be a refusal?”

Justice Stephen R. McCullough chimed in, asking why the second legislative body — in this case, the House of Delegates — would hold a vote on an appointment that failed to pass the Senate, noting the “fluid” nature of state legislative sessions, where bills are often reworded and deals are struck quickly.

Gallagher argued that the state legislature can reconsider a nomination — or any legislation rejected by a committee — if it is passed by the other legislative body, a common occurrence during regular session of the General Assembly but not when it is out of session.

Representing the state senators, Mark Stancil of Willkie Farr & Gallagher also fielded questions from Russell, who, referring to the 28 senators not serving on the committee, asked Stancil, “Were the other 28 members of the Senate denied their right to vote?”

“Absolutely not,” Stancil answered.

Although the lawsuit was expedited in Fairfax County Circuit Court to allow Frieden to rule on the preliminary injunction before George Mason’s board met Sept. 1, it’s uncertain when the state’s high court will issue an opinion.

It could come “next week … or [in] the next three months,” said Sen. Louise Lucas, one of the nine senators who are plaintiffs in the case. She and several other senators from both parties attended Thursday’s hearing just steps away from the Virginia State Capitol. This week, Democratic state lawmakers have been engaged in an attempt to redraw the state’s U.S. House of Representatives districts to counteract Republican redistricting in Texas, Missouri and North Carolina.

Lucas, D-Portsmouth and the senate’s president pro tempore, said she felt optimistic about her side’s chances with the state Supreme Court. “I liked the questions from the court,” she said.

Senate Majority Leader Scott Surovell said that he doesn’t anticipate a speedy ruling by the justices, and noted that a preliminary injunction is “usually the end of the case.”

He added that George Mason’s board, which currently does not have enough confirmed members to meet the definition of a quorum, has nonetheless voted on motions via its executive committee — an action Surovell says he opposes and that faculty critics have called “rogue.”

On Oct. 15, the five-member executive committee met virtually and approved a motion to create a foundation for funding the university’s Scalia School in a unanimous vote, along with other action items. Surovell said Thursday that the state legislature cannot remove or impeach a confirmed board member, but the governor has that power.

The office of the state attorney general declined to comment on the hearing Thursday.

BWXT wins $174M naval contract

BWX Technologies, a -based manufacturer of components and fuel, announced Thursday that it has been awarded a $174 million contract from the U.S. Naval Nuclear Propulsion Program to manufacture naval nuclear reactor fuel.

The contract was awarded on Sept. 10. Through the agreement, subsidiary , based in Erwin, Tennessee, will manufacture and deliver fuel for the program, which is a joint Navy–Department of effort responsible for the design, construction, operation and oversight of the nuclear reactors that power the submarines and aircraft carriers.

The NFS facility processes highly enriched uranium to manufacture fuel for naval nuclear reactors. BWXT said that the site has been involved in the manufacture of nuclear fuel for the U.S. Navy for over 60 years.

BWXT said its fuel and reactors power the U.S. Navy’s Ohio-, Virginia-, Seawolf-, Los Angeles- and Columbia-class submarines, as well as the Nimitz and Ford class aircraft carriers.

Work is underway on the contract, which is expected to be completed in summer 2026.

“The U.S. Navy recently celebrated its 250th anniversary, and BWXT is proud to be powering our world-class fleet right now and into the future,” said Gary Camper, president for BWXT’s nuclear operations group, in a statement. “The team at NFS demonstrates the level of quality and commitment needed each day to fuel the Navy’s global mission of maintaining freedom and security.”

In July, the U.S. Naval Nuclear Propulsion Program awarded BWXT contracts totaling approximately $2.6 billion for the manufacture of naval nuclear reactor components. That award was in addition to the $2.1 billion in contracts that the program awarded to BWXT in February for nuclear reactor component manufacturing and material procurement for Columbia- and Virginia-class submarines, as well as Ford-class aircraft carriers.

A Fortune 1000 company, BWXT manufactures and supplies nuclear components and fuel. It has nearly 10,000 employees across 20 major operating sites in the United States, Canada and the United Kingdom.

Dominion plans more natural gas, solar in 20-year forecast

Summary:

  • has submitted an update to its 2024 integrated resource plan
  • New plan calls for 40% more to 2045 compared to 2024 IRP’s estimate
  • power will make up about half of all new power generated

Virginia’s future could hold more solar and natural gas power generation, according to an integrated resource plan filed by Dominion Energy this month.

Filed Oct. 15 with the Virginia State Corporation Commission, the nonbinding energy production outlook anticipates about 5% annual increase in energy demand over the next 20 years, which would double the state’s demand by 2045. The report also takes into consideration the ‘s requirement that Dominion shift to carbon-free, sources for generation by 2045.

The new plan is an update on last year’s IRP, which called for more offshore wind and solar energy development, as well as the development of small modular reactors that could be active in the 2030s.

The set out three separate scenarios in the 250-page document, although only two are viewed by Dominion as viable options:

  • The company-preferred plan, in which solar, wind and battery storage would make up 54% of Dominion’s capacity mix in 2045; gas and steam would make up 33%, and nuclear energy, 8%;
  • The lowest-cost VCEA-compliant plan without Environmental Protection Agency regulations, in which renewable energy would make up 54% of capacity mix; gas, 29%; nuclear, 7%;
  • The “forced retirements by 2045” plan would lead to 78% renewable energy capacity, 14% nuclear and 4% gas and steam — however, Dominion’s analysis says “the company does not see a viable path towards full retirement of all carbon-emitting resources by 2045.”

The utility also anticipates construction costs for the three plans in the report: $270.4 billion for the “forced retirements” plan; $91.8 billion for the company’s preferred plan; $80.1 billion for the lowest-cost VCEA-compliant plan without EPA regulations. The “forced retirement” plan calls for doubling the number of large-scale nuclear plants and SMRs, contributing to its overall cost, but the 2025 IRP says that this plan is not considered feasible because of customer affordability concerns, capital costs and reliability issues.

According to Dominion spokesperson Tim Eberly, the major — and feasible — changes from the 2024 IRP are a 40% increase in natural gas generation the utility expects to need over the next 20 years, and a reduction in the amount of battery storage. Also, more than half of the utility’s new power generation is expected to be solar.

Although solar and energy storage plants are viewed as operating hand in hand, Eberly explained that power storage is still a relatively young technology. Lithium-ion batteries store power for only four to six hours, and Dominion and other utilities need to be able to store energy over a much longer period of time since solar- and wind-powered generation is intermittent.

To meet future demand for energy, Eberly added, the utility expects it will have to provide about 33 gigawatts of new power over the next 20 years under the company-preferred plan. This will help meet demand produced by the growing data center industry as well as lower Dominion’s purchase of energy produced by third-party sources. Currently about 20% of all Dominion’s power comes from outside sources, and the utility’s goal is to lower that to 4% by 2045.

Natural gas plants are a point of contention for many environmentalists and concerned neighbors, but Dominion officials and others in Virginia view the plants as necessary backup options for peak energy hours if not enough solar and wind energy is being produced to keep the lights on. Under the VCEA, there is a loophole that allows natural gas to be used as a backup energy producer with state approval, but and other Republicans have suggested that the VCEA needs to be changed to allow more natural gas plants to operate past 2045.

Eberly said, however, that the October IRP does not anticipate or project changes to the law, which was passed in 2020, before artificial intelligence and increased home internet use led to much higher energy demands.

Despite all of the calculations, the IRP is just a forecast for Dominion’s coverage region of Virginia and North Carolina, and the region’s energy needs for the next two decades. A second document, Dominion’s sixth annual clean energy report filed with the SCC in October, delineates solar and energy storage projects already approved by localities but waiting for the SCC’s green light. These annual reports are required under the VCEA.

Forthcoming projects in the report include 11 solar and energy storage facilities statewide that would produce 1,400 megawatts of electricity, enough to power 3,500 homes, Eberly said, noting that most of these projects are set to be in operation between 2027 to 2030. Eight are large-scale projects, and more than 1,000 megawatts will be produced by Dominion-owned facilities. The remaining 400 megawatts will come from third-party power purchase agreements, he said. Eberly estimates that the construction of these projects will add about $3.20 to the typical customer’s monthly power bill.

As for concerns about massive prompting higher residential power bills, Eberly said that Dominion is trying to create a customer class just for data centers, an effort to protect residential customers’ wallets.