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Dominion May Deep Six Proposed Offshore Wind Farm

August 28, 2022 by Wayne Creed 4 Comments

RICHMOND, Va. (AP) — A ratepayer protection that state regulators included in a recent order approving Dominion Energy Virginia’s application to build and recover the costs of a massive offshore wind farm would force the utility to scrap the project, Dominion said in a filing this week.

The State Corporation Commission granted approval this month for the 176-turbine, multibillion-dollar project off Virginia Beach. Dominion immediately raised concerns about the commission’s inclusion of a performance guarantee for the wind farm and in a petition Monday asked the regulators to reconsider that element of their order.

Dominion “shares the Commission’s concern, as expressed in the Final Order, that the Project be constructed and operated in a way that reasonably mitigates risk for its customers. The Commission’s unprecedented imposition of an involuntary performance guarantee condition on its approvals, however, is untenable,” the filing said. “As ordered, it will prevent the Project from moving forward, and the Company will be forced to terminate all development and construction activities.”

The commission’s Aug. 5 order included three “consumer protections,” including the performance guarantee, or performance standard.

The State Corporation Commission ordered that beginning with the commercial operation and extending through the life of the project, customers will be “held harmless” for any shortfall in energy production below an annual net capacity factor of 42%, measured on a three-year rolling average. Capacity factor is a measure of how often a generating facility runs during a period of time.

Such a performance standard will protect customers who are paying for the project “from also having to pay for replacement energy if the Project does not generate the amount of electricity upon which Dominion bases its request and its cost estimates,” the commission said in its order.

Dominion argued in its petition that the commission lacks the authority to impose such a performance guarantee and that doing so would be contrary to the intent of the General Assembly, which helped pave the way for the project in 2020 with an overhaul of the state’s energy law.

The utility also argued the performance standard is unreasonably broad in scope and would hold it responsible for events far out of its control, such as “acts of war or terror, catastrophic weather events or changes in weather patterns.”

Filed Under: Bottom, Environment, News

Comments

  1. Daniel Burke says

    August 28, 2022 at 5:34 pm

    This may be a good time to invest in coal😉

    Reply
    • Publius Americanus says

      August 30, 2022 at 4:51 pm

      Explain?

      Reply
  2. Stan Dykstra says

    August 29, 2022 at 1:37 pm

    The technology is still so sketchy that Dominion is unwilling to risk the expense unless they can pass their mistake on to the consumer.

    Reply
  3. Doug Luther says

    September 1, 2022 at 2:33 pm

    It’s a total failure. The wind is an unreliable source of energy.
    Ask yourself this question. How long will it take for one windmill, to produce enough energy to paid for itself?
    The only money to be made will be the company that produces the materials to build it and install it … China.

    Reply

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