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 estimate that over the life of the commercial project, the net average monthly bill impact will be less than $4 for the typical residential customer after accounting for fuel cost savings and the value of the wind energy’s renewable attributes. Qualifying low-income customers will be exempt from this additional monthly charge. Costs could be further reduced as technology matures and a U.S.-based supply chain anchored in Hampton Roads is developed.


The turbines will be located approximately 27 miles off the coast of Virginia Beach. That distance and the curvature of the Earth will make it difficult to see the turbines clearly from shore. The 14-megawatt turbines installed for the commercial project will be slightly more than 800 feet tall, or nearly 200 feet taller than the 6-megawatt turbines used for the pilot project. A detailed visual assessment was completed and included in the Construction and Operations Plan submitted to the Bureau of Ocean Energy Management in December 2020. As development and permitting of the project continues, the company will create additional visual simulations and assessments regarding the visibility of the project from the shoreline.


When fully constructed in 2026, the CVOW commercial project, anchored in Hampton Roads, will deliver up to 8.8 million megawatts per year of clean, renewable wind energy to the grid — powering up to 660,000 Virginia homes — and will avoid as much as 5 million tons of carbon dioxide emissions annually — the equivalent of planting more than 80 million trees or removing 1 million non-electric cars from the road for a year.


Our initial estimate, based on the mature European market experience, is nearly $7.8 billion. A key to managing costs will be the development of a robust U.S. supply chain. We will work tirelessly toward the development of a U.S.-based supply chain anchored in Hampton Roads.

We estimate that over the life of the commercial project, the net average monthly bill impact will be less than $4 for the typical residential customer after accounting for fuel cost savings and the value of the wind energy’s renewable attributes. Qualifying low-income customers will be exempt from this additional monthly charge.

The Virginia Clean Economy Act includes language designed to contain the cost of the project, which is subject to regulatory scrutiny from the Virginia State Corporation Commission. We are also required under the law to submit status reports to the Commission on at least a quarterly basis during the project’s construction to provide updates on our progress and performance to the construction timeline and budget.


The exact quantity of turbines to be deployed is subject to final project site conditions and the design layout of the wind farm, but it will likely be up to 180 turbines.


In our Q4 2020 Earnings Call held February 12, 2021, we announced plans to invest $37 billion in solar and offshore wind through 2035 and an additional $7 billion in energy storage.


Dominion Energy remains focused on providing safe, reliable and affordable energy for its customers. All electric generation projects, including CVOW, are subject to a thorough and exhaustive review and approval by the Virginia State Corporation Commission.


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.


As Dominion Energy brings more renewable energy online for our Virginia customers, we will displace existing resources and reduce fuel expenses. Our Renewable Portfolio Standard Development Plan anticipates at least one-third of the costs of new renewable resources over the next 60 years will be offset by fuel and capacity savings.


For the CVOW pilot project, we have a contract with Siemens Gamesa. In the future, we plan to train Dominion Energy employees, who will take on the responsibility of maintaining these turbines to minimize costs. We anticipate approximately 150 full-time employees will be engaged in the operation of CVOW when construction is completed in 2026.


Dominion Energy has studied historical data regarding the intensity of storms impacting the wind energy areas for both the pilot and commercial project. The two pilot turbines currently operating offshore — and the up to 180 planned for the commercial project — are designed to withstand temperatures, wind and waves in excess of any recorded weather events in the project area. The evaluation included a significant study of available information about winter storm and hurricane wind and wave activity in the Atlantic Ocean over the past century.


Dominion Energy submitted its Construction and Operations Plan (COP) to Bureau of Ocean Energy Management (BOEM) on December 17, 2020. The next step for BOEM is to review the COP and provide Dominion Energy a Completeness and Sufficiency Determination. Once this Determination is provided, BOEM will issue a Notice of Intent (NOI) to prepare an Environmental Impact Statement (EIS) for the COP. We anticipate the BOEM process to take about two years after CVOW NOI is issued.


The Notice of Intent begins the Environmental Impact Statement review process and opens a 30-day public comment period during which time federal agencies will conduct scoping meetings and accept comments to inform the preparation of the EIS.


BOEM’s determination that the COP is complete and its issuance of the NOI is the beginning of the federal National Environmental Policy Act (NEPA) review and analysis, for which BOEM is the lead agency. BOEM will coordinate with the relevant federal, state and local agencies and affected Indian Tribes during the review process.

The Notice of Intent (NOI) is published in the Federal register to inform the public of the upcoming environmental analysis and describes how the public can become involved in the preparation of the Environmental Impact Statement.

The Draft Environmental Impact Statement (DEIS) is likely to be published 12-15 months after the NOI, in August 2022. The DEIS will be published for public review and comment.

Agencies involved in the DEIS will consider the provided comments and conduct further analysis, if necessary. A Final Environmental Impact Statement (FEIS) is issued and made public about 6-8 months after the DEIS, scheduled for May 2023.

A Record of Decision (ROD) is issued approximately 30 days after the publication of the FEIS, scheduled for June 2023, and provides the agency’s decisions regarding the permit requested. For example, BOEM will issue a ROD regarding approval of the COP, and the Army Corps will issue a ROD regarding permits under the Clean Water Act.

A Facility Design Report (FDR) and Fabrication & Installation Report (FIR) and will be submitted shortly after the ROD is issued. The FDR includes specific details on the design of the facilities outlined in an approved COP. The FIR describes how the equipment will be fabricated and installed in accordance with the FDR design criteria, the approved COP and generally accepted industry standards. BOEM has 60 days to review and approve or provide objections to the report.

Project manufacturing, construction and installation can begin after approval of the FDR/FIR.


The NEPA process will include a thorough environmental analysis of the CVOW project, across a dozen federal agencies, as well as extensive engagement with Tribes; environmental and fisheries groups; and community members. In addition, Dominion Energy will work with state agencies and localities to carefully analyze potential impacts to the land, air and water quality, wildlife and other resources.