Dominion offshore wind project cost rises nearly $300M

Dominion Energy says its Coastal Virginia Offshore Wind project will now cost about $11.7 billion, nearly $300 million more than the company estimated in April. Dominion blames higher grid connection charges set by PJM Interconnection (the regional grid operator), tariffs the Trump administration imposed in April, and updated estimates for installing the turbines. The company also pushed back its finish date, now expecting all work done by the end of 2027 instead of early 2027 as previously planned. Dominion serves utility customers in Virginia and South Carolina, so this project affects electricity supply and pricing in that region rather than nationwide.

Despite the delay and cost increase, Dominion says the project is 81% complete, with turbines already installed that can generate more than 450 megawatts of power. The company still expects the wind farm to save customers about $5 billion in fuel costs over its first decade of operation.

Separately, Dominion is moving ahead with a proposed merger with NextEra Energy that would create the largest regulated utility company in the country. If it closes, Dominion says customers would get $2.25 billion in credits. The company will start seeking state and federal approval for the deal next quarter, with Virginia regulators reviewing it on an unusually fast six-month timeline. None of this changes what a homeowner needs to do right now, but it is worth watching if you get power from Dominion, since rising project costs and the pending merger could eventually show up in utility bills or rate cases.