- 40,000-acre lease, currently known as Kitty Hawk North Wind,
will be renamed CVOW-South and could support 800 MW of offshore
wind generation capacity in the 2030s
- Acquisition provides optionality to deploy additional
regulated offshore wind generation to serve unprecedented electric
demand growth using all-of-the-above approach supportive of goals
of Virginia Clean Economy Act
- Transaction value of ~$160
million consists of lease acquisition ($117 million) and associated development cost
reimbursement ($43 million) to
Avangrid; transaction expected to close in fourth quarter of
2024
- No change to 2024-2029 capital plan provided at March 1, 2024, investor day
RICHMOND, Va., July 8, 2024
/PRNewswire/ -- Virginia Electric and Power Company, a wholly owned
subsidiary of Dominion Energy, Inc. (NYSE: D), today announced that
it has agreed to acquire the Kitty Hawk North Wind offshore wind
lease and associated developments, which will be known
as CVOW-South, from Avangrid, Inc. (NYSE: AGR), for
approximately $160 million, inclusive
of a payment of about $3,000 per acre
for the nearly 40,000-acre lease.
If approved by regulators and constructed, CVOW-South would have
a capacity of 800 MW, enough capacity to serve 200,000 homes and
businesses, and the project would connect to the company's
transmission grid. The company does not have detailed cost or
in-service date estimates at this time. Such estimates would
be developed during future development phases.
Robert M. Blue, chair, president
and chief executive officer of Dominion Energy, said:
"With electric demand in our Virginia territory projected to double in the
next 13 years, Dominion Energy is securing access to power
generation resources that ensure we continue to provide the
reliable, affordable, and increasingly clean energy that powers our
customers every day. This transaction gives our company another
potential option to meet that growing demand in a size and on a
timeframe that is consistent with the regulated business mix,
credit, and risk profile objectives of the recently concluded
business review.
"It also allows us to leverage the unique expertise we've gained
during the very successful development and construction to date of
the Coastal Virginia Offshore Wind (CVOW) commercial project, which
reduces project risk to the benefit of customers and
shareholders. The Virginia
model for regulated offshore wind development is proving to be an
enabler of on-time and on-budget wind generation at exceptional
relative value for our customers and is the model we would intend
to pursue for any future offshore wind development."
Virginia Electric and Power Company is constructing the 2.6-GW
CVOW, located about 25 miles north of the CVOW-South lease. CVOW
continues to be on-time and on-budget with in-service expected by
the end of 2026. To date, 25 monopiles have been installed since
the installation campaign began on May 22,
2024, consistent with the company's target of 70-100
monopiles during the first of two installation seasons that run
through the end of October.
The company is aware of the community concerns regarding the
proposed landing site in Sandbridge, Va., and is committed to
working closely with the community, the Commonwealth of
Virginia, and the City of Virginia Beach as it considers this
project.
After receipt of necessary approvals from the Bureau of Ocean
Energy Management and the City of
Virginia Beach, Dominion Energy and Avangrid expect to close
the transaction in the fourth quarter of 2024.
About Dominion Energy
More than 4.5 million
customers in 13 states energize their homes and businesses
with electricity or natural gas from Dominion Energy (NYSE: D),
headquartered in Richmond, Va. The company is committed
to providing reliable, affordable, and increasingly clean
energy every day and to achieving Net Zero emissions by
2050. Please visit DominionEnergy.com to learn more.
Forward-Looking Language
This release contains
certain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including with
respect to the anticipated completion of the CVOW commercial
project and closing of the acquisition, and future capacity, of
CVOW-South, which are subject to various risks and
uncertainties. Factors that could cause actual results to
differ from expectations include, but are not limited to, the
ability to obtain or maintain the effectiveness of required
regulatory approvals or other consents or approvals, the
ability, in the case of CVOW-South, to satisfy other conditions to
closing, timely performance by third parties under existing or
future contracts, or the occurrence of severe weather events, as
well as other factors detailed from time to time in the reports the
company files with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended
December 31, 2023. Any
forward-looking statements in this release speak only as of the
date of this release, and the company assumes no obligation to
provide any revisions to, or update, these statements after the
date of this release.
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SOURCE Dominion Energy