Dominion Energy Virginia has filed a settlement agreement as part of a petition to reconsider the performance guarantee for its Coastal Virginia Offshore Wind project.
The company has been seeking to renegotiate a performance guarantee in the order approving the project, designed to protect consumers would not see increased costs if the project under-produces.
Dominion had previously warned that the provision could jeopardise the 2.6GW CVOW project.
The document was filed alongside the Office of the Attorney General, Walmart, Sierra Club and Appalachian Voices to the State Corporation Commission of Virginia (SCC).
The settlement agreement substitutes the previously ordered performance guarantee with a cost-sharing approach for unforeseen costs that exceed the project budget, as well as enhanced Commission review of operating performance.
This, the company said, provides a balanced approach that supports continued investment in CVOW to meet Virginia’s public policy and economic development priorities along with the needs of Dominion Energy Virginia’s 2.7m customers.
If approved by the SCC, the agreement would resolve the pending petition.
CVOW’s schedule calls for construction to be completed in late 2026.
“I appreciate the thoughtful effort of all parties in reaching a constructive agreement to allow the project to continue moving forward,” said Bob Blue, Dominion Energy chair, president and CEO.
“Since the August Order, we have further mitigated some of the project’s development risks that strengthen our confidence of remaining on-time and on-budget.”
These include continuing to work closely with the Bureau of Ocean Energy Management and other stakeholders to support the project’s timeline, as well as making advanced engineering and design in preparation of immediate release of major equipment for fabrication.
The company has also advanced procurement and other pre-construction activities for the onshore scope of work; and completed an independent project review and construction readiness assessment, along with a comprehensive assessment of schedule and cost.
“Development of the project has continued uninterrupted to maintain the project’s schedule. We expect over 90% of the project costs, excluding contingency, to be fixed by the end of the first quarter in 2023 as compared to about 75% today, further de-risking the project and its budget,” Blue added.