The Grid Transformation and Security Act of 2018, enacted by the General Assembly, expressed Virginia’s policy support for the offshore wind pilot project. The Virginia State Corporation Commission approved the pilot project later that year. The cost of these initial two turbines will be covered under the existing rate structure for generation and distribution with no rate increase to our customers.
The Virginia Clean Economy Act of 2020, passed by the General Assembly envisions up to 5,200 megawatts of offshore wind to meet Virginia’s clean energy goals. The CVOW commercial project requires approval from the Virginia State Corporation Commission, just like any other power generating facility. Any costs we would seek to recover from customers are also subject to SCC review.
We expect the typical residential customer using 1,000 kilowatt-hours of electricity a month will see a net average monthly bill impact of approximately $4, though this figure will initially be less and will vary from year to year. The SCC will also consider the applicable tax credits of more than $1 billion and expected fuel costs savings of more than $3 billion for the project’s first ten years. These savings come from wind power displacing traditional generation, such as coal or natural gas, which have associated fuel expenses.