Dominion offshore wind project cost rises nearly $300M
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- CVOW cost rose $288M to approximately $11.7B, driven by PJM network upgrade revisions, Trump administration tariffs imposed in April, and updated turbine installation projections, per Dominion's Q2 SEC filing.
- Dominion Energy pushed CVOW completion to end of 2027, from its previous projection of early 2026.
- Dominion posted Q2 net income of $340M, down from $760M a year earlier, with offshore wind cost increases and nonregulated asset charges weighing on earnings.
- Dominion–NextEra merger moves into state and federal review next quarter, with Virginia State Corporation Commission hearings starting Nov. 17 and a target financial close by end of 2027; the combined company would have 10M customers and a 130-GW large-load interconnection pipeline.
- CVOW is 81% complete and producing more than 450 MW from operational turbines; CEO Robert Blue said the project should save customers $5B in fuel over its first 10 years.
- Dominion agreed to sell a nonregulated solar portfolio to Enel for $140M, expected to close by end of 2026, and plans to divest its nonregulated renewable natural gas assets before their retirement dates.
- Millstone nuclear plant in Connecticut: one of two reactors could retire by 2035 without a new long-term contract past 2029; Connecticut is expected to decide soon on Millstone's zero-carbon procurement bid, which Dominion says would save ratepayers $900M over 10 years.
Why it matters: Dominion's CVOW budget now sits at $11.7B and completion has slipped to end of 2027, meaning Virginia customers will wait longer for the $5B in fuel savings Blue is still projecting on earnings calls. The $288M increase reflects how Trump-era tariffs and PJM grid interconnection upgrade costs are directly inflating the bill for the country's largest US offshore wind buildout.
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