SCC Approves Stipulation and Replacement of Performance Standard for Coastal Virginia Offshore Wind Project
DEC 15, 2022
RICHMOND – The State Corporation Commission (SCC) has accepted a replacement for the performance standard in the Commission’s August 5, 2022, final order approving the application for the Coastal Virginia Offshore Wind Project by Dominion Energy Virginia.
In an Order on Reconsideration, the SCC approved a stipulation proposed by Dominion, the Office of the Attorney General’s Division of Consumer Counsel, Walmart, Inc., Appalachian Voices, and the Sierra Club that replaces the performance standard with five elements addressing, among other things, construction cost and carrying cost sharing, operating performance provisions, impact of the federal Inflation Reduction Act, and the scope of the agreement.
In approving the stipulation, the Commission stated that it has not otherwise expanded, or modified approval or cost recovery set forth in the August 5 final order. The SCC further noted that those proposing the stipulation “assert, unanimously in support thereof, that the [ ] Stipulation adequately protects the interests of consumers. In addition, Clean Virginia and the Committee, though not formal parties to the [ ] Stipulation, confirm that they have no opposition to the Commission's approval thereof.”
In its order, the Commission reiterated the significant impact that this project will have on customers’ electric bills. The project likely represents the largest capital investment, and single largest project, in the history of the Company. “[T]he electricity produced by this Project will be among the most expensive sources of power – on both a per kilowatt of firm capacity and a per megawatt-hour basis – in the entire United States,” the SCC stated.
In a concurring opinion, Commissioner Jagdmann wrote that she agrees with the Order on Reconsideration in all respects. She emphasized that the General Assembly is uniquely positioned to align some of the costs of the project that currently will be paid solely by most of Dominion customers with the economic development benefits and clean energy attributes of this project that the operative statutes recognize advantage the Commonwealth more broadly:
Virginia law thus declares that offshore wind is in the public interest and requires consideration of advantages that benefit all Virginians. The General Assembly is uniquely positioned to align general fund appropriations or other funding for this Project. Such public policy determinations by our legislators would help spread the substantial costs of this Project, which currently fall squarely on most of Dominion's customers, among all in the Commonwealth who stand to benefit from the clean energy and economic expansion benefits associated with this Project that the Commission is required by statute to consider.
Contact: Andy Farmer, 804-371-9141
Case Number PUR-2021-00142 - Application of Dominion Energy Virginia for approval and certification of the Coastal Virginia Offshore Wind Project
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