Tag Archives: CVOW

First Lawsuit Over Whales and Wind Dismissed

Vineyard Wind 1, Nantucket and Martha’s Vineyard. Click for larger view.

By Steve Haner

A federal district judge in Massachusetts has rejected an effort to stop an offshore wind project near Nantucket Island on the basis of danger to whales, apparently the first court test of similar claims being raised against wind turbine proposals along the U.S. eastern seaboard, including here in Virginia.

On May 17, U.S. District Judge Indira Talwani granted a motion for summary judgement to the federal agency that approved the Vineyard Wind One project. With a planned 84 turbines, the project is about half the size of Dominion Energy Virginia’s planned project off Virginia Beach. Both are just the first phases of larger planned buildouts. Continue reading

Dominion Seeks Permit to Harass 100s of Whales

Click for larger view. BOEM map of Right Whale density noting offshore wind lease areas. Dominion’s CVOW and Avangrid’s Kitty Hawk Wind are the southernmost mapped.

By David Wojick

The National Oceanic and Atmospheric Administration is taking public comments on a massive proposal to harass large numbers of whales and other marine mammals off Virginia by building a huge offshore wind complex. There is supposed to be an Environmental Impact Statement (EIS) for the proposed harassment, but it is not there with the proposal.

We are told it is elsewhere, but after searching we find that it simply does not exist. Like a shell game where the pea has been palmed, there is nothing to be found. Continue reading

CVOW on Schedule and Budget, Utility Reports

Dominion’s proposed offshore wind project.

by Steve Haner

Dominion Energy Virginia’s first wave of offshore wind remains on schedule, and within the announced capital cost of $9.8 billion; and the cost per unit of the energy from the turbines will be lower than initially projected, the utility reported last week.

Details? Well, many of those are secrets. Much of the brief report the utility filed with State Corporation Commission remains redacted, with large blocks covered by black ink. The redacted data involves reports from an affiliate corporation, Blue Ocean Energy Marine LLC. There apparently is also another document “filed under seal under separate cover.”

Finally, Dominion refers to an Excel file that includes all the data on the new levelized cost of energy (LCOE) calculations which was posted to a shared eRoom. The password is available only to the SCC and case parties who signed non-disclosure agreements, reports the SCC’s communications director in response to a query about access for Bacon’s Rebellion.

Among the interesting items which are on the record: Continue reading

SCC Agrees Dominion Must Own Most Wind, Solar

Dominion wins one for the shareholders.

By Steve Haner

The State Corporation Commission has rejected arguments that the Virginia Clean Economy Act would allow Virginia’s dominant electric utility to get more than 35% of its new wind, solar and battery power from third party suppliers. Dominion Energy Virginia is guaranteed by law (actually, required is the better word) to own 65% of those assets directly.

The ruling was issued today in the Commission’s final order on Dominion’s most recent application for additional solar and battery assets, most of which were approved.  The question has lingered through several recent cases since the General Assembly passed VCEA in 2020, with various stakeholders arguing that the third-party assets are usually cheaper for consumers and impose less risk from failure.

The lower cost of those alternative approaches was highlighted in this case and discussed earlier on Bacon’s Rebellion. Dominion had rejected several cheaper third-party choices in compiling its plan. That earlier story also touched on the dispute over whether the 35% referenced in the statute was a ceiling or a floor.  The SCC looked at the plain wording of the law in effect and declared it really is a target that cannot be ignored or exceeded. To wit:

This particular law is written as follows: “… and 35 percent of such generating capacity procured shall be from [third party-owned resources], with the remainder, in the aggregate, being from construction or acquisition by (Dominion.) As written, the above says “35%” – neither something more nor something less – “shall” be from third party-owned resources.

Continue reading

Youngkin Energy Reforms Killed Without Votes

By Steve Haner

Governor Glenn Youngkin’s proposal to ensure that any future wave of wind turbines built off Virginia must follow a real competitive bid process ended up dead as a beached whale. The General Assembly didn’t just kill his proposed amendment during its reconvened session April 12, it refused to even take up the matter.

Both the Republican-controlled House of Delegates and Democrat-controlled Senate voted to “pass by” the substitutes. The substitutes then died when the motion to adjourn was approved at the end of the day. Such a motion is often used to avoid a recorded vote loaded with political risk.

Rejection of the amendments, first discussed here, leaves Youngkin (R) free to veto the underlying bill (actually two identical bills, one in each chamber), but his argument was not with the underlying bills themselves. He was just trying to weaken Dominion Energy Virginia’s control over the wind development process, which has led to Virginia building the first and only $10 billion project with all the cost and risk on its ratepayers. At this point, any second phase will likely be the same.

The gubernatorial amendment on competitive bidding for offshore wind was injecting a new issue in the last stage of the 2023 session. Youngkin offered other amendments which constituted repeat efforts to pass things rejected during the regular part of the session. They met the same fate, some also by motions to pass by supported by his own party. Continue reading

Youngkin Seeks Bids on Future Offshore Wind

Dominion’s proposed offshore wind project. Phase two, similar in size, would build out to the east.

By Steve Haner

Governor Glenn Youngkin (R) has proposed a stronger requirement in state law that any second wave of offshore wind serving Virginia be subjected to a competitive procurement process, rather than simply allowing Dominion Energy Virginia to build it with all the costs and risks imposed on its customers.

The planned 176-turbine Coastal Virginia Offshore Wind (CVOW) project now under federal environmental review remains the only such project in the United States which is being developed directly by a monopoly utility. Other projects involve third-party developers raising the capital and taking on much of the financial risk for the multi-billion-dollar investments, then selling the power to utilities.

This is just one of several consumer-oriented amendments Youngkin proposed on a series of energy bills, to be voted on at the General Assembly’s reconvened session April 12. Should the Assembly reject his amendments, his option then is to either sign or veto the bill as it passed in February.

The financial and operational risk imposed on ratepayers by direct utility ownership of the wind farm was the focus of debate before the State Corporation Commission (SCC) finally authorized the project, now estimated to cost $10 billion. A method to shift some of the risk to the company’s shareholders if power output fell below projections was initially accepted but then abandoned by the regulators. Continue reading

Wojick On Whales IV: Deaths Spiked with Surveys

A Humpback carcass that washed up in New Jersey recently. Photo: Marine Mammal Stranding Center

By David Wojick

The recent deaths of seven whales off New Jersey, mostly humpbacks, drew national media attention. The National Oceanic and Atmospheric Administration’s Fisheries Directorate is responsible for whales. An outrageous statement by their spokesperson got me to do some research on humpback whale deaths.

The results are appalling. The evidence seems clear that offshore wind development is killing whales by the hundreds.

Here is the statement as reported in the press:

“NOAA said it has been studying what it calls ‘unusual mortality events’ involving 174 humpback whales along the East Coast since January 2016. Agency spokesperson Lauren Gaches said that period pre-dates offshore wind preparation activities in the region.” Gaches is NOAA Fisheries press chief.

The “unusual mortality” data are astounding. Basically, the humpback death rate roughly tripled starting in 2016 and continued high thereafter. You can see it here.  That data is just for humpback whales, with a dramatic acceleration in particular between 2016 and 2020. Continue reading

Is Unnamed Partner on Wind Project Driving This New Dominion Regulation Rewrite?

The late Lt. Gov. Henry Howell (D) and Virginia’s most famous campaign slogan.

By Steve Haner

Without fanfare and without awakening the drowsy Capitol press corps, Dominion Energy Virginia dropped in legislation last week to set up a partnership on its most massive capital investment, the Coastal Virginia Offshore Wind project.

Just who that partner might be, what if any benefits that provides to Dominion’s 2.6 million Virginia customers, or whether it instead adds cost and risk for them, remains unexplained. The bill does describe the equity investor as “non-controlling,” leaving the utility in charge. Continue reading

Consumers Be Wary When Energy Elephants Dance

By Steve Haner

First published this morning  by the Thomas Jefferson Institute for Public Policy. 

The Virginia House of Delegates is expected to vote this week to exempt certain Virginia manufacturers, which ones to be determined later, from the coming wave of energy costs created by Virginia’s rapid transition to unreliable forms of power generation. Continue reading

SCC Drops Wind Energy Performance Standard

The 14.7 megawatt turbines to be used in CVOW. Click for larger view.

by Steve Haner

The Virginia State Corporation Commission (SCC) has abandoned its push for an offshore wind performance standard fiercely opposed by Dominion Energy Virginia. It agreed instead to some capital cost limitations for its project that the utility has endorsed . 

In a decision released today, the two commissioners accepted in full a stipulation put forward several weeks ago by Dominion, Virginia Attorney General Jason Miyares, Walmart and several environmental groups. Should the capital costs of the project and related transmission lines exceed $10.3 billion, customers will only have to finance a portion of the excess. Beyond $11.3 billion the utility will finance the excess. Continue reading

Virginia Agrees To Compensate Fishing Industry For Damage From Offshore Wind

by Steve Haner

Nine states, including Virginia, have agreed to establish a major compensation fund to pay their private commercial and recreational fishing companies for damages caused by offshore wind turbines.  

Three guesses where the money comes from. The announcement, made December 12, hints at it coming from project developers, but in Virginia of course that is a monopoly utility guaranteed by law to collect all costs from its customers. Dominion Energy Virginia’s planned 176-turbine Coastal Virginia Offshore Wind (CVOW) just got more expensive. In other cases and other states, also expect the bill to end up with energy consumers or taxpayers. Continue reading

Why Does Dominion Fear a Wind Output Promise?

SG 14-222 DD test installation at a Siemens Gamesa land facility. Company photo. Click for closer view and perspective of this giant machine we’re buying.

By Steve Haner

While we await a decision by the State Corporation Commission on competing approaches for protecting consumers from unexpected offshore wind costs, some additional relevant information is worthy of notice. Two items call into question Dominion Energy Virginia’s refusal to assume financial risk for poor turbine performance. Continue reading

Feds: Whales Must Be Protected from Turbines

Two right whales photographed off the Virginia coast last month on their way south toward the calving grounds. U.S. Navy Photo

by Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy.

Soon after a group of opponents to proposed East Coast offshore wind projects hired a law firm with environmental regulation expertise, the federal Bureau of Ocean Energy Management (BOEM) announced a new plan to protect North Atlantic Right Whales and put it out for public comment. Continue reading

SCC Urged To Focus on Wind Construction Risk

by Steve Haner

Advocates made their case Monday for a proposed settlement that offers Virginia consumers some protection from construction cost overruns on Dominion Energy Virginia’s proposed offshore wind project. Not everybody said it was superior to an earlier proposal that protected consumers from future operational failures, but all saw it as unlikely to kill the project.

The earlier approach, placing the risk of operational failure over 30 years on the utility, was going to kill the project, the utility claimed. The utility stood by that threat in the hearing in front of the Virginia State Corporation Commission. But the company is willing to risk its shareholders’ money on its ability to complete the project on time and on budget, its attorney told the Commission.

There was no indication during the hearing when a decision would come. The two judges could leave their original order unchanged or issue a new one based on the proposed agreement between Dominion, Attorney General Jason Miyares (R), two environmental groups and Walmart, one of Dominion’s largest commercial customers.

Other parties, including representatives for major industry and the SCC staff, didn’t sign the stipulation. Nor did they oppose it, and Commissioner Judith Jagdmann polled them one by one.

Two conclusions are evident from the hearing. First, all the parties to the new approach took Dominion’s threat to kill the project at face value and that is what backed them down, including Miyares. He had Deputy Attorney General Steven Popps appear at the hearing, not just consumer section chief Meade Browder, to emphasize his (Miyares’) desire to save the project in a closing statement. Continue reading

East Coast Ocean Wind Projects Faltering

Not an offshore wind project. Just a cool picture from Germany last week.

by Steve Haner

In recent days several proposed offshore wind projects, which unlike Virginia’s are not guaranteed by captive ratepayers, are showing cracks in their pylons.

Multinational developer Avangrid recently told Massachusetts regulators that its proposed 1.2 gigawatt Commonwealth Wind project is no longer economically viable. It seems to be seeking to renegotiate the power purchase agreement for more money because the electricity price it promised in the contract is being eroded by rising costs and interest rates.

Then the developer of a smaller Massachusetts project, 400 megawatt Mayflower Wind, made a similar announcement. An EE News Energy Wire story on both can be found here and included this:

Avangrid’s warning — echoed in part days later by Mayflower Wind, the developer of the state’s other upcoming offshore wind project — is the strongest signal yet that a chilling trend on renewable energy projects may migrate into the offshore wind sector.

Continue reading