A seismic shock – Dominion May End $10B Offshore Wind Project Over Performance Clause

The giant utility Dominion Energy has found itself in a disagreement with state regulators over a proposed performance guarantee for its $10 billion Coastal Virginia Offshore Wind project, one of the largest planned wind farms in the U.S. development pipeline. The clause is enough of a concern for Dominion that it has threatened to scuttle CVOW altogether and walk away, a seismic shock for the budding U.S. offshore wind industry. However, the Virginia State Corporation Commission, a regulator with a broad mandate governing insurance, railroads and utilities, has made a decision that may make CVOW untenable, according to Dominion. The SCC will allow Dominion to bill the cost of CVOW’s development to household ratepayers in the form of a miniscule rider fee, but only if its turbines perform at a 42 percent capacity factor or better in any three-year period. Any shortfalls would be Dominion’s to cover. >click to read< 07:32

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