- Proposed agreement balances stakeholder interests; keeps the project on schedule, on budget
- If approved, significant customer benefits include protection from unforeseen increases in construction costs above the project’s budget & enhanced SCC review of performance in lieu of a performance guarantee
- Customer-focused regulated utility framework allows Dominion Energy to prioritize reliability, affordability for customers while making investments in clean, fuel-free energy projects
Richmond, Va., Oct. 28, 2022 /PRNewswire/ — Dominion Energy Virginia, the Office of the Attorney General, Walmart, Sierra Club and Appalachian Voices today filed a settlement agreement in the company’s pending petition to the State Corporation Commission of Virginia (SCC) to reconsider the performance guarantee included in the Final Order approving the development of the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project to be constructed 27 miles off the coast of Virginia Beach. If approved by the SCC, the agreement would resolve the pending petition and provide significant customer benefits.
The settlement agreement provides a balanced and reasonable approach that supports continued investment in CVOW to meet the Commonwealth’s public policy and economic development priorities and the needs of Dominion Energy Virginia’s 2.7 million customers representing more than 5 million people and businesses.
CVOW’s schedule calls for construction to be completed in late 2026, when it can generate enough clean energy to power up to 660,000 homes. The August 5, 2022 Order from the SCC affirmed that CVOW meets all Virginia statutory requirements for rider cost recovery and the issuance of a Certificate of Public Convenience and Necessity for the onshore infrastructure. The settlement agreement substitutes the previously ordered performance guarantee with a cost-sharing approach for unforeseen costs that exceed the project budget, as well as enhanced Commission review of operating performance.
The settlement agreement aligns with the customer-focused, state regulated utility framework in Virginia. That framework has resulted in nation-leading decarbonization goals, customer rates lower than national and relevant regional averages, and high levels of reliability for customers, made possible by a state regulatory model that embraces long-term planning, a diversity of generation sources, and resiliency safeguards.