Dominion offshore wind project cost rises nearly $300M
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- Dominion Energy estimates its 2.6-GW Coastal Virginia Offshore Wind (CVOW) project will cost about $11.7 billion, a $288 million increase from its April estimate driven by revised PJM Interconnection network upgrade costs, Trump administration tariffs imposed in April, and updated turbine installation projections.
- Dominion Energy pushed CVOW's full completion to the end of 2027 from a prior projection of early 2026, though CEO Robert Blue said the project is 81% complete and operating turbines are collectively producing more than 450 MW.
- Dominion Energy reported Q2 net income of $340 million, down from $760 million in Q2 2025, with rising offshore wind costs, nonregulated asset charges, higher fuel costs, and Dominion Virginia's June reentry into the PJM capacity market cited as drags on earnings.
- Dominion Energy will begin seeking state and federal approvals next quarter for its proposed merger with NextEra Energy, with financial close possible by the end of 2027 — the combined company would be the country's largest regulated utility, serving 10 million customers with a 130-GW large-load interconnection pipeline.
- NextEra Energy and Dominion face an unusually accelerated six-month Virginia State Corporation Commission review with hearings scheduled to begin November 17; Jefferies analyst Julien Dumoulin-Smith predicted the parties will attempt to reach a settlement before then.
- Dominion Energy agreed in May to sell a portfolio of nonregulated solar assets to Enel for $140 million (expected to close by end of 2026) and is also seeking buyers for nonregulated renewable natural gas assets before their anticipated retirement.
- Dominion Energy warned that one reactor at its 2,106-MW Millstone nuclear plant in Connecticut could retire by 2035 without a long-term power purchase contract past 2029, and expects Connecticut to decide soon on Millstone's zero-carbon energy procurement bid, which the company estimates would save ratepayers $900 million over 10 years.
Why it matters: Dominion's offshore wind overrun and year-long delay raise pressure on the company as it seeks approval for its NextEra merger to create the nation's largest regulated utility serving 10 million customers. Q2 net income fell to $340 million from $760 million a year earlier, and Virginia regulators will conduct an unusually accelerated six-month review beginning November 17.
