WEC Energy favored over Dominion for better growth and regulatory terms in data center tariffs.

WEC Energy Group is now preferred over Dominion due to a more attractive risk/reward profile and favorable regulatory developments in Wisconsin. The strict VLC Tariff passed by the Wisconsin Public Service Commission ensures data centers pay for development costs, accelerating approvals and securing long-term contracts that support strong earnings growth. WEC targets 8% annual earnings growth and a 3.4% dividend yield, offering an 11.4% total return potential with below-average risk. Meanwhile, Dominion's merger arbitrage with NextEra Energy has mostly played out, making its valuation less appealing compared to WEC. Investors see WEC as a better opportunity amid growing data center demand and regulatory clarity.