Dominion Energy Virginia now expects its offshore wind facility, which has returned to full construction activity off the coast of Virginia Beach, will cost $11.5 billion. That is up about $365 million from the last report. 

It really wasn’t that long ago that Bacon’s Rebellion was aghast that the price had reached $8 billion. Oh, those halcyon days of old (2019). 

The utility blames the policies of President Trump for the jump. Some of the additional costs are due to the interruption of construction work by a December 22 stop order from the Department of the Interior, and the rest are due to the price increases caused by tariffs on the imported components.   

“If the current tariffs were to remain in effect through early 2027, the expected project costs for offshore wind and onshore electrical interconnection equipment could increase by an additional approximately $215 million for a total possible tariff exposure of $795 million to the project. Through the end of December 2025, the project had incurred actual tariff costs of $295 million,” Dominion told the State Corporation Commission in its January 30 report.

Completion of the 176-turbine installation is now projected for February 2027, but some power may start to flow soon. That assumes no more interference from the Trump Administration, which may not be finished with efforts to overturn the Biden Administration-issued permits. 

Under the cost-split agreement the utility made with the SCC to get its approvals, most of the cost overruns will be absorbed by the utility and the private investor fund that shares ownership of the facility. Only about $72 million is added to the construction bill to be collected from customers over the coming decades.  — SDH