Summary
Dominion Energy, Inc. (D) has filed an 8-K report on February 3, 2025, providing an update on its Coastal Virginia Offshore Wind (CVOW) project. The primary focus of the filing is a revised cost estimate for the project, which has increased from approximately $9.8 billion to $10.7 billion. This escalation is attributed to higher projected onshore electrical interconnection costs and network upgrade costs allocated by PJM, reflecting PJM's December 2024 publication of potential transmission network upgrades and their associated cost allocations. Despite the increased total project cost, Dominion Energy affirms that the project's expected on-time completion at the end of 2026 remains unchanged. The company also highlighted a more favorable projected levelized cost of energy (LCOE) of approximately $62/MWh, down from the initial $80-90/MWh estimate, inclusive of renewable energy credits. Furthermore, the filing notes that the revised total project cost is still within the threshold for the partnership with Stonepeak Partners, LLC, which will contribute 50% of the remaining capital as long as the total project cost, excluding financing, remains below $11.3 billion.
Key Highlights
- 1The total estimated project cost for the Coastal Virginia Offshore Wind (CVOW) project has increased to approximately $10.7 billion, up from $9.8 billion.
- 2The cost increase is driven by higher projected onshore electrical interconnection and network upgrade costs, as per PJM's recent transmission upgrade assessments.
- 3Projected on-time completion remains at the end of 2026, unaffected by the cost revision.
- 4The expected average impact on a typical residential customer bill (1,000 kWh/month) is an increase of 43 cents per month over the project's lifetime, after cost-sharing provisions.
- 5The projected levelized cost of energy (LCOE), including renewable energy credits, has decreased to approximately $62/MWh from the initial $80-90/MWh estimate.
- 6The revised project cost remains within the agreed-upon threshold for the 50% partnership with Stonepeak Partners, LLC, which requires total project costs (excluding financing) to be below $11.3 billion.