Tag Archives: CVOW

Offshore Wind Risks Stressed in SCC Briefs

The footprint for Dominion’s Coastal Virginia Offshore Wind project, 27 miles off Virginia Beach.

by Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy. First of two articles, with the second coming tomorrow.  

Virginia’s State Corporation Commission has now received a series of legal briefs offering opinions on what steps, under the law, it can take to protect Dominion Energy Virginia consumers from the massive risks facing its proposed offshore wind facility. Those risks range from cost overruns to poor energy output to failure.

All the parties asked responded that the SCC did have some authority to act and somewhat shift the risk. The utility had a more limited view. But the legal question is truly secondary, and the real question is whether two judges will take actions to protect consumers when their elected representatives openly and knowingly left them so exposed. Continue reading

Hurricanes: Dominion’s Big Bet With Our Money

By David Wojick

My regular readers know that I have been fussing about the threat of hurricanes destroying proposed Atlantic coast offshore wind arrays. The issue arises because the offshore wind industry is based in Europe, which does not get hurricanes. My focus has been Dominion’s massive project off Virginia, but the whole East Coast is hurricane alley.

Now I have found some research that actually quantifies the threat and it is very real. It looks like wind generators will have to be redesigned specifically to withstand hurricanes. In fact, that work is underway. In the meantime we should not be building conventional offshore wind towers. Continue reading

Youngkin Now All-In on Offshore Wind

Gov. Glenn Youngkin

by Steve Haner

Governor Glenn Youngkin’s media spokesperson has told the Associated Press that not only is he committed to the current Dominion Energy Virginia offshore wind project, now under State Corporation Commission review, he is also willing to consider additional turbines off Virginia’s coast.

The Republican had campaigned a year ago expressing concerns for the consumer price impact of the mandatory renewable energy conversions in the Virginia Clean Economy Act of 2020.  The offshore wind proposal, currently slated to cost $10 billion for just the first tranche, is the largest driver of that expected consumer cost increase.  Continue reading

What the Wind Project Costs You and Who Pays

The annual revenue required from Virginia customers to finance Dominion Energy Virginia’s offshore wind installation. It peaks at about $800 million in 2027, driving the amount to be collected on monthly bills. Source: SCC Testimony. Click for larger view.

by Steve Haner

If the project goes as planned, the consumer cost for Dominion Energy Virginia’s offshore wind installation will rapidly rise to a peak in 2027 and then descend annually over the following 20 years. If it produces power for 30 years, in the final phase the revenue related to the project will exceed the remaining capital costs.

What is this going to cost Dominion’s captive ratepayers?  There is also a related but often ignored question: which of those customers did the Virginia General Assembly exempt from those costs, effectively bumping up the price to those not exempt? Continue reading

Miyares Wins Partial Transparency Victory

Jason Miyares, Attorney General of Virginia

by Steve Haner

Attorney General Jason Miyares (R) was partially successful in his efforts to challenge much of the secrecy shielding key data in Dominion Energy Virginia’s application to build its planned offshore wind facility, with some useful precedents set for the future.

Just before the hearings on the application began last week, a State Corporation Commission hearing examiner accepted the Attorney General’s office’s motion in part and rejected it in part. As a result, several portions of the SCC staff testimony have been filed again with dozens of previously redacted sections now open. Continue reading

Youngkin Endorses Dominion Wind Project

by Steve Haner

Republican Governor Glenn Youngkin’s administration has filed a letter with the State Corporation Commission asking the regulators to approve the Dominion Energy Virginia application to build a 176-turbine Coastal Virginia Offshore Wind (CVOW) project.

The letter was on Department of Energy letterhead and signed by that agency’s director, John Warren, a holdover from the Democratic Ralph Northam administration. Continue reading

Miyares Challenges Secrecy in Dominion Wind Case

The Luxembourg-flagged Vole Au Vent is seen here installing one of Dominion Energy’s two experimental wind turbines 27 miles off the Virginia coast.

by Steve Haner

Virginia Attorney General Jason Miyares (R) has moved to open to public inspection much of the secret data and analysis about Dominion Energy Virginia’s proposed Coastal Virginia Offshore Wind project. His petition filed with the State Corporation Commission April 29 comes about two weeks before formal hearings on the application begin in mid-May. Continue reading

SCC Asked for Hearing on Secret Renewables Costs

by Steve Haner

Appalachian Power Company has asked the State Corporation Commission to schedule a separate hearing on Attorney General Jason Miyares’ motion to break the seal on exhibits in its application for new renewable energy sources.

Miyares’ April 6 motion was first reported by Bacon’s Rebellion, in a story on Appalachian’s pending application for approval of the projects and of its overall plan for complying with the Virginia Clean Economy Act (VCEA). Appalachian’s response motion was filed April 13, claiming irreparable harm to its stockholders if the actual line-by-line project cost projections were revealed to its customers.

Although some of these discrete items may appear innocuous on their own, collectively they would enable a savvy party to discern the price paid for the facility, which is competitively sensitive.

What do they say in swanky restaurants? If you have to ask the price, you cannot afford it. Revelations could be politically sensitive, as well, given the partisan divide on the VCEA itself. Continue reading

SCC Staff: Dominion May Exceed Wind Cost Cap

A schematic from the application for the proposed 14.7 megawatt turbines for the CVOW, with measurements. Click for larger view.

by Steve Haner

A similar article was published this morning by the Thomas Jefferson Institute for Public Policy.

Testimony filed by the State Corporation Commission staff on April 8 opened a slight possibility that the Commission could reject Dominion Energy Virginia’s proposed $10 billion Coastal Virginia Offshore Wind project off Virginia Beach. It all depends on how the SCC decides to calculate the CVOW’s levelized cost of energy (LCOE), the dollar cost of every megawatt hour of electricity it produces plus the transmission costs.

When the 2020 General Assembly adopted the Virginia Clean Economy Act and related legislation, it set a cap on that key LCOE measure, which is used to compare the costs of various methods of making electricity.

If the utility failed to stay under the LCOE cap, the SCC would have the authority to reject the proposal as imprudent and unreasonable. If the project remains below the cap, legislators mandated approval by the SCC, despite any other doubts about its prudence and without considering less expensive alternatives.

The cap set was $125 per megawatt hour, after deducting the value of the very large tax credits granted for wind projects under federal law. In the application it filed late last year to build the facility, Dominion estimated the LCOE (after the tax credits) at about $83 per megawatt hour. But Katya Kuleshova of the SCC’s Division of Public Utility Regulation challenged several of the assumptions in her testimony and noted that if the assumptions prove wrong, that number rises substantially. Continue reading

AG Expert: Wind Project Unneeded, Accounting Off

Exhibit submitted by Office of the Attorney General showing the excessive generation Dominion Energy will have compared to its expected demand, funded by ratepayers. The black line in the middle is the projected customer demand. Click for larger view.

by Steve Haner

There is no justification for Dominion’s $10 billion offshore wind project other than that the General Assembly has ordered it, a witness for Virginia’s Attorney General has testified. The utility doesn’t need its electricity, doesn’t need its renewable energy attributes, and is ignoring lower cost alternatives if it does need generation in the future. Further, its claims of economic benefit are based on faulty assumptions.

Virginia’s Attorney General Jason Miyares is the customers’ main representative at the table as the State Corporation Commission reviews this pending application. By law the AG office serves as Consumer Counsel in these matters.  Despite all the concerns raised in his expert’s review, Miyares is not recommending that the SCC reject the project.

In fact, as mentioned in an earlier Richmond Times-Dispatch review of the case testimony, no party so far has recommended that the SCC reject it. That was noted by a triumphant Dominion spokesman at the end of the newspaper’s story when it might properly have been the headline.

That is the headline at this stage of the case. The language inserted into the 2020 Virginia Clean Economy Act by Dominion and its environmentalist allies demands approval of the project without regard to proving necessity, reasonableness or prudence. The law orders the SCC to find the project prudent unless it misses a very high cost target or fails to have a plan to start operation by 2028. (Note, it doesn’t have to be in operation then, merely have a plan.) Continue reading

No Other State Plans Utility-Owned Wind Farms

Clean Virginia’s witness prepared this list of current U.S. offshore wind projects, their owners, size and contract structure. Click for larger view.

by Steve Haner

The table reproduced above may one of the most interesting exhibits submitted to the State Corporation Commission as it considers Dominion Energy Virginia’s offshore wind application. Two things jump out, both highlighted in pre-filed expert testimony sponsored by environmental activist group Clean Virginia.

First, only in Virginia is such a project being financed directly by the captive ratepayers of a monopoly electric utility. Only in Virginia will the turbines be owned by the utility rather than a private investor. Continue reading

Wind Case Spinning Up; Your Comments Sought

Yes, it is that big. Click for larger view, and note the on-shore transmission expansions.

by Steve Haner

In the coming weeks, Virginia’s State Corporation Commission takes up one of the largest utility investments ever undertaken in the Commonwealth, where the cost and the risk will rest squarely on Virginia’s citizens: Dominion Energy Virginia’s $10 billion Coastal Virginia Offshore Wind project.

In applications and appendices filed late last year, probably running to hundreds of thousands of words and hundreds of technical drawings, Dominion outlined its request to build the project 27 statute miles (24 nautical miles) off the mouth of Hampton Roads. The project area covers 176 square miles of seabed. It uses about one square mile for each of the planned 176 turbine towers. Continue reading

Key Data on Dominion Wind Project Still Secret

Cover page blocking public access to the engineering and cost details for Dominion’s proposed $10 billion plus Coastal Virginia Offshore Wind project.

By David Wojick

A previous article published by Bacon’s Rebellion and the Committee for a Constructive Tomorrow challenged the notion that Dominion Energy Virginia can build a huge amount of wind and solar generating capacity and retire all of its fossil-fueled generators with almost none of the enormous storage capacity that is required to make the renewables viable.

This proposed long-term plan does not work and Dominion knows that, but in the short run it can make billions in profit by building the unreliable wind and solar. The disastrous unreliability shows up only in the long run.   Continue reading

What Dominion is Hiding in its Wind Application

The cover page that declares we the ratepayers cannot see how Dominion Energy Virginia has calculated the levelized cost of energy for its $10 billion offshore wind project. The SCC should break this seal and open this document.

by Steve Haner

When an applicant at the State Corporation Commission claims certain information is proprietary, or extraordinarily sensitive, a reader not privy to the full document can at least get an idea what is missing.

What is missing from the application Dominion Energy Virginia recently filed at the SCC, a document so dense and complex it was broken into eleven volumes, with 61 separate documents (here)? (That is not counting the tables of contents.) Here are some of the topics masked from view that turned up in a cursory review (in the order they appear in the documents): Continue reading

Turbine Costs Appear on Dominion Bills in 2022?

Illustration of Dominion’s wind project from its Bureau of Ocean Energy Management documentation.

by Steve Haner

Customers of Dominion Energy Virginia will begin to pay for its planned 176 wind turbines off the coast of Virginia Beach next September, years before the first electricity is produced, if the company’s request for initial project funding is approved by the State Corporation Commission.

As with all such projects now, the bill will be paid through a specific addition to monthly bills, a rate adjustment clause or RAC. The cost for residential customers will work out to $1.45 per 1,000 kilowatt hours, but that is just for the first rate year beginning in 2022. In a news release Friday, the company claimed eventually the “net” cost to residential users would be $4 per 1,000 kWh, but that includes assumptions about future tax benefits and future costs of the alternatives abandoned.

The gross cost to consumers may be buried somewhere in the mound of Dominion documents that now constitute the full application. Or it may be among the items of data which the company seeks to withhold from public view.

On Friday, the record of the case was just a few cover letters and the company’s motion asking the SCC to let it keep much of the key information confidential.  Monday up to 40 (40!) additional documents were posted on the SCC’s case file, full of some details, but reviewing a table of contents one can see example after example of information redacted, in anticipation of SCC approval of the motion for secrecy. Continue reading