Dominion Energy (NYSE: D) is one of the largest regulated electric utilities in the United States. As a regulated entity, it has to get its spending plans approved by the government. That can, sometimes, lead to unexpected outcomes given the inherently political nature of the government. One of Dominion's biggest projects just got a huge curveball, and investors need to watch the related developments carefully.

At one point in its life, Dominion Energy owned oil wells, but it sold those assets to focus on regulated and fee-based businesses. Then it sold its fee-driven midstream pipeline assets so it could focus on just regulated utility operations. The goal was to provide investors with a low-risk business model that could support a growing and fairly attractive dividend. Today, the company is basically an ordinary utility.

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