Regulators approve Dominion offshore wind project

SCC imposes consumer protections including performance guarantee, warns of ratepayer risks

By: Sarah Vogelsong - August 5, 2022 5:38 pm

State regulators on Friday approved plans by Dominion Energy to construct the nation’s largest offshore wind farm in waters off Virginia Beach but imposed several conditions intended to protect ratepayers, including reporting requirements for cost overruns and a performance guarantee.

The hotly anticipated ruling from the Virginia State Corporation Commission gives Dominion the state’s go-ahead to embark on the $9.8 billion project.

“The project is truly distinctive in numerous respects, encompassing cost, size, technology, complexity, ownership, and risk. … No other utility or independent developer has attempted to construct and operate an offshore wind project of this size in the United States,” wrote the commissioners.

But they also cautioned that the Coastal Virginia Offshore Wind project is unique in the risks it will pose to utility ratepayers.

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