Dominion Energy Submits Application for Coastal Virginia Offshore Wind with Virginia State Corporation Commission

Rhea-AI Summary

Dominion Energy has filed plans with the Virginia State Corporation Commission for the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project, the largest offshore wind initiative in the U.S. This project aims to provide clean energy for up to 660,000 homes and represents a $9.8 billion investment. Expected benefits include approximately 900 jobs during construction and 1,100 jobs post-operation, along with significant tax revenues and economic benefits. Customer costs are projected to be around $4 per month, influenced by federal tax credits and operational savings.

Positive

• Investment of $9.8 billion for the CVOW project.
• Potential to create approximately 900 jobs during construction and 1,100 jobs during operation.
• Expected annual economic benefits of $143 million during construction and nearly $210 million during operation.
• Estimated local and state tax revenue generation of $5 million per year during construction and $11 million per year during operation.

Negative

• None.

RICHMOND, Va., Nov. 5, 2021 /PRNewswire/ -- Dominion Energy continues to advance the largest offshore wind project in the United States by filing plans later today with the Virginia State Corporation Commission for approval to construct the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) commercial project, which will generate enough clean energy to power up to 660,000 homes.

The filing keeps the project on schedule and builds on recent economic development announcements, such as the Siemens Gamesa Renewable Energy turbine blade factory at the Portsmouth Marine Terminal and Dominion Energy's investment in the only U.S. flagged offshore wind turbine installation vessel, that establish Virginia as a leader in this rapidly growing new industry.

Economic benefits from offshore wind will continue to grow.  According to a study performed by Virginia-based Mangum Economics and commissioned by the Hampton Roads Alliance, the CVOW commercial project could create approximately 900 jobs, generate $5 million per year in local and state tax revenue and $143 million in economic benefits annually during construction. During operation, the CVOW commercial project could result in 1,100 jobs, generate $11 million per year in local and state tax revenue and almost $210 million in economic benefits annually. 

The project represents an investment of $9.8 billion.  Customer costs will be reduced by applicable federal tax credits and offshore wind will have no fuel costs over the life of the project.  Over this time, the net average cost of the project to a typical residential customer is estimated at approximately $4 per month, though this figure will initially be less and will vary from year-to-year. All of the project's costs are subject to approval by the State Corporation Commission which will also consider the applicable tax credits of more than $1 billion and expected fuel costs savings of more than $3 billion for the project's first ten years.  

"Our customers expect reliable, affordable, and clean energy and we intend to deliver.  In addition to solar, storage and nuclear, offshore wind is a key component of our strategy and a game changer for the Hampton Roads economy," said Robert M. Blue, Dominion Energy Chair, President and CEO. "CVOW is making Virginia the hub for this new industry.  Virginia will host the first offshore wind turbine blade factory in the United States and be the home port for the only Jones Act compliant offshore wind installation vessel."

As part of the filing, Dominion Energy is also requesting State Corporation Commission approval to build approximately 17 miles of new transmission lines and other onshore infrastructure needed to deliver the clean, renewable energy generated offshore to homes and businesses across Virginia. A proposed transmission interconnection route is presented along with alternatives for the Commission to consider.

Dominion Energy identified the route options after a thorough study and meaningful engagement with Virginia Beach and Chesapeake officials, Virginia and federal agencies and land managers, and the local communities, including historically underrepresented communities and Native American tribes. The proposed route would be the shortest of the potential routes and would impact private property the least, with 92 percent of the route located within the former Southeastern Parkway and Greenbelt corridor, owned primarily by the City of Virginia Beach and/or collocated with existing Dominion Energy transmission line corridors.

About Dominion Energy
More than 7 million customers in 16 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050. Please visit DominionEnergy.com to learn more.

This news release includes certain "forward-looking information." Examples include information as to expectations, beliefs, plans, goals, objectives and future financial or other performance or assumptions concerning matters discussed in this release. Our business is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond our ability to control or estimate precisely.  We have identified and will in the future identify in our SEC Reports on Forms 10-K and 10-Q a number of factors that could cause actual results to differ from those in the forward-looking statements. We refer you to those discussions for further information. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made.

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SOURCE Dominion Energy

FAQ

What is the Coastal Virginia Offshore Wind project by Dominion Energy?

The Coastal Virginia Offshore Wind (CVOW) project is a 2.6-gigawatt offshore wind initiative aimed at generating clean energy to power up to 660,000 homes.

When did Dominion Energy file plans for the CVOW project?

Dominion Energy filed plans for the CVOW project on November 5, 2021.

How much will the CVOW project cost?

The Coastal Virginia Offshore Wind project represents an investment of $9.8 billion.

What economic benefits are expected from the CVOW project?

The CVOW project is expected to create approximately 900 jobs during construction and 1,100 jobs during operation, with significant annual economic benefits.

What will be the average customer cost for the CVOW project?

The estimated net average cost for a typical residential customer is approximately $4 per month, influenced by federal tax credits and operational efficiencies.