No parties to the monthslong proceeding had opposed the approval of the project, which will help the utility boost the proportion of its generation that comes from renewable resources. But many had raised concerns about affordability and possible risks to the utility's captive ratepayers.
In its Friday order, the
The commission’s order also approved facilities that will connect the wind farm to the existing transmission system.
The project, which will be located about 27 miles off the coast, has an expected capital cost of
“We applaud the SCC for greenlighting new offshore wind power in
Regarding costs, the SCC order said that over the wind farm's projected 35-year lifetime, including the construction and its 30-year projected useful life, a typical residential customer is expected to see an average monthly bill increase of
“To be clear, total Project costs, including financing costs, less investment tax credits, are estimated to be approximately
Dominion said in a news release that because offshore wind turbines have no fuel costs, the project is expected to save
The consumer protections in the commission's order include a requirement that Dominion file a notice within 30 calendar days if it finds that the total project costs are expected to exceed the current estimate or if the final turbine installation is expected to be delayed beyond
The SCC also ordered that beginning with the commercial operation and extending through the life of the project, customers will be “held harmless” for any shortfall in energy production below a certain threshold.
Such a performance standard will protect customers who are paying for the project “from also having to pay for replacement energy if the Project does not generate the amount of electricity upon which Dominion bases its request and its cost estimates," the order said.
The order goes on to warn that the performance standard, however, will not protect customers from cost overruns, or if the project is abandoned.
Commissioner
The 2020 Virginia Clean Economy Act, a sweeping overhaul of the state’s energy policy enacted by
Friday’s decision came after months of voluminous filings in the case and a multiday evidentiary hearing in May.
The company already has a two-turbine pilot project up and running. The 2.6-gigawatt, utility-scale project's schedule calls for construction to be complete in 2026. Dominion expects the project to generate enough clean energy to power up to 660,000 homes.
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