Dominion Energy said tariffs on steel and aluminum, created by President Donald Trump, have added hundreds of millions to the price tag on the company’s Coastal Virginia Offshore Wind project, also known as CVOW. The news comes as Dominion also announced a delay in completion for CVOW, though it's already generating power.
Dominion Energy President Bob Blue said tariffs added nearly $230 million to the multi-billion-dollar project in a second quarter earnings call Friday. The new number comes after a first quarter earnings call said they added about $580 million to the project, bringing the total in tariff fees to about $800 million.
A company spokesperson was unsure if Dominion — or ratepayers — would recoup any of those funds following a U.S. Supreme Court ruling that ended the tariffs. "We will make the most prudent decision that will benefit our customers," the spokesperson added.
But Blue said the company expects to save over $500 million thanks to cost shift efforts by the regional power grid operator for upgrades.
Other changes in costs total $40 million in savings for the more than $11.6 billion project, a new and updated cost figure.
Blue also announced a delay in the project's completion beyond the original estimate of Summer 2027, pointing to weather and vessel maintenance concerns, the loadout of equipment and the longer installation of certain, particularly complicated turbines.
“I’m confident in the updated timeline. But let me take a step back," Blue said. "The strategic value of CVOW hasn’t changed. It remains one of the fastest ways to bring a lot of power to our customers and remains one of the most affordable sources of energy for customers.”
Blue added the project had gained some efficiencies as the supply chain has improved, with much of the project already fabricated. The project is 81% complete. But because it’s basically made up of individual power generating turbines, they’ve gone online as they’ve been completed.
“It’s worth noting the 31 turbines installed to date have a capacity of more than 450 megawatts, rivaling the magnitude of some of our fossil units,” Blue said.
CVOWs completion is now expected by the end of 2027.
Blue also addressed requests by legislators to review a proposed merger between the Richmond-based utility and Florida-based NextEra Energy.
“We think the schedule set forward makes a lot of sense and we don’t think it makes a lot of sense to change the rules in the middle of the game," Blue said.
The timeline for the Virginia State Corporation Commission to review the merger is six months, with a final decision expected before 2027.
Both Republicans and Democrats in the Commonwealth have asked for a special session to extend the review timeline.
