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
The settlement agreement aligns with the customer-focused, state regulated utility framework in
'I appreciate the thoughtful effort of all parties in reaching a constructive agreement to allow the project to continue moving forward,' said
'Since the August Order, we have further mitigated some of the project's development risks that strengthen our confidence of remaining on-time and on-budget. We have: Continued to work closely with
'Development of the project has continued uninterrupted to maintain the project's schedule. We expect over 90% of the project costs, excluding contingency, to be fixed by the end of the first quarter in 2023 as compared to about 75% today, further de-risking the project and its budget.
'We have a lot of work ahead as we continue to build on our long record of completing projects on-time and on-budget while safely delivering affordable, reliable, and clean energy to our customers. Offshore wind is expected to alleviate pressure on customer fuel rates for 30 years once the project is in-service. Our customers expect reliable, affordable energy - and offshore wind is key for accomplishing that mission.'
The company has previously announced its third-quarter 2022 earnings call will take place at
CVOW represents a clean-energy investment of approximately
As a renewable energy resource, offshore wind turbines have no fuel costs, which is especially beneficial considering the recent rise in fuel costs across the country. The project is expected to save
Offshore wind's economic development and jobs benefits are transformative for
In addition to the
In the context of the project's current capital investment of
The company has further voluntarily agreed that shareholders will be responsible for 100% of any prudently incurred costs in the range of
There is no voluntary cost-sharing agreement for any costs that exceed
The company will not be required to guarantee future energy production levels or factors beyond its control as was outlined in the August Order. Instead, 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.
The company will also ensure that customers receive the benefits of the Inflation Reduction Act, which could provide potential additional customer savings.
'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,' added Blue.
In addition to solar, energy storage, and nuclear, offshore wind is a key component to
About
About 7 million customers in 15 states energize their homes and businesses with electricity or natural gas from
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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