August 8, 2022 — Virginia’s State Corporation Commission has approved Dominion Energy’s application to recover costs for its proposed massive Coastal Virginia Offshore Wind Project — but the $9.8 billion wind farm comes with a significant cost to electric utility ratepayers.
The commission approved a revenue requirement of $78 million for the rate year of Sept. 1, 2022, to Aug. 1, 2023, to be recovered through higher rates for customers in a new clause attached to their monthly bills.
Over the next 35 years, the SCC estimates that a Dominion residential customer using 1,000 kilowatt-hours of electricity per month will see an increase of $4.72 a month, with a peak monthly billing hike of $14.22 in 2027.
The wind farm, planned 27 miles off the Atlantic coast from Virginia Beach, is the largest energy project ever undertaken in Virginia and would be the largest wind project in the country, as well as one of the biggest in the world.
The commission was constrained by the General Assembly from rejecting the project, which the legislature declared two years ago to be in the public interest. But the constitutionally independent regulatory body ordered Dominion to abide by a performance guarantee to protect consumers from additional costs if the farm of 176 wind turbines doesn’t perform as the company predicts.