Posted on October 31, 2022
Dominion Energy Virginia and the Virginia Office of the Attorney General have filed a settlement agreement in Dominion Energy’s pending petition to the State Corporation Commission of Virginia (SCC). The petition had asked the SCC to reconsider the performance guarantee included in the final order approving the development of the 2.6 GW Coastal Virginia Offshore Wind (CVOW) project to be constructed 27 miles off the coast of Virginia Beach. If approved by the SCC, the agreement will resolve the pending petition and ensure continued investment in CVOW.
In August, the SCC approved the project, with a final order that included a performance requirement.
In a filing with the commission on September 29, the company said that performance requirement “will prevent the project from moving forward and the company will be forced to terminate all development and construction activities.”
The new agreement substitutes the previously ordered performance guarantee with a cost-sharing approach for unforeseen costs that exceed the project budget, as well as enhanced SCC review of operating performance. Instead of having to guarantee future energy production levels, the company will provide a detailed explanation of the factors contributing to any shortfall in energy output from projected amounts in a future SCC proceeding.
“I appreciate the thoughtful effort of all parties in reaching a constructive agreement to allow the project to continue moving forward,” said Bob Blue, Dominion Energy chair, president & and chief executive officer.
Development of the project has continued uninterrupted to maintain the project’s schedule, which calls for construction to be completed in late 2026.
“Given the now-significantly de-risked status of the project’s development and given its continued on-budget status, we feel that this settlement reflects a balanced sharing of financial impacts in what we currently see as unlikely scenarios of material delays or cost overruns,” said Blue.
