Dominion Energy continues to keep affordable and reliable energy as our focus as we build out cleaner energy sources and drive down emissions. With respect to the retail cost of electricity overall in our Virginia service area, we estimate customers will see an increase of about 3% annually through 2030 based on information in Dominion Energy Virginia’s 2020 Integrated Resource Plan.
Pursuant to the Virginia Clean Economy Act (VCEA), the Virginia legislature has determined that the costs of the CVOW commercial project should be presumed reasonable and prudent to the extent its levelized cost of energy does not exceed 1.4 times that of a simple cycle gas turbine. In terms of customer bills, we estimate that over the life of the CVOW commercial project the average impact will be less than $4 a month for the typical residential customer, after netting out fuel cost savings and the value of the renewable attributes. The VCEA also includes provisions to exempt our most financially vulnerable customers from paying for the CVOW project.
Additionally, the VCEA requires Dominion Energy to provide the State Corporation Commission with reports on the offshore wind facility’s construction progress, including performance to construction timeline and budget, on no less than a quarterly basis throughout the construction period. The Commission retains ongoing authority to review the reasonableness and prudence of any increases in the total projected cost of the project during its construction period.