Dominion Energy has increased the cost estimate for its Coastal Virginia Offshore Wind (CVOW) project by $120 million due to tariff-related impacts, the company said in its latest construction update.
Chief executive Bob Blue said actual tariff costs incurred so far total $4 million, but if current policy remains in place through the end of the second quarter, the cost would rise to around $120 million.
If unchanged through project completion in late 2026, cumulative tariff exposure could reach $500 million, of which Dominion’s share would be about $130 million.
“We made our quarterly offshore wind construction update filing with the Virginia State Corporation Commission today, in which we increased total project cost by about $120 million, which aligns with our estimate of actual incurred plus projected tariff costs through the end of the second quarter,” said Blue.
The $10.8 billion, 2.6GW project remains on schedule, with first power expected in early 2026 and full commissioning by year-end.
Blue said the cost of components excluding tariffs remains unchanged, and that the project’s unused contingency fund stands at $222 million.
He added that the levelised cost of energy remains competitive at $62/MWh, inclusive of renewable energy credits.
Dominion has a 50% cost-sharing partnership with Stonepeak, and a regulatory settlement limits cost recovery from customers.
Under the settlement, the updated project cost will increase residential customer bills by just $0.04 per month over the life of the project.
“Let me be clear, CVOW remains one of the most affordable sources of energy for our customers,” Blue said.