Dominion Energy plans extensive wind farm offshore in VA

From an Article by Sarah Vogelsong, Virginia Mercury, November 5, 2021

Dominion Energy revised the price tag of its Coastal Virginia Offshore Wind project upward to $9.8 billion from an earlier estimate of $8 billion, company executives announced Friday in an investor call.

Dominion CEO, chair and president Bob Blue attributed the more than 20 percent jump to “commodity and general cost pressures,” as well as the completion of design plans for bringing the power generated by the wind farm to customers onshore in Virginia Beach.

Over the next 30 years, the utility projected the wind project would cost the average Dominion residential customer in Virginia an extra $4 a month, with an initial increase starting September 2022 of approximately $1.45 more per month. During the call, Blue said the project’s increased price tag did not impact those estimates because the company is also projecting that the wind farm will be more productive than originally expected.

On Friday’s investor call, Blue told analysts that $1 billion in federal tax credits for the project could help drive down some of the bill impacts for customers. The company has also said that fuel savings costs are expected to amount to $3 billion over the wind farm’s first 10 years.

Dominion’s plans must be approved by the State Corporation Commission, although provisions of the 2020 Virginia Clean Economy Act declaring the utility’s construction of the project to be “in the public interest” and directing approval of certain costs will largely tie regulators’ hands.

Offshore wind, along with nuclear, is a key cornerstone of the utility’s efforts to decarbonize its electric fleet — the goal of the VCEA as well as Dominion’s own net-zero pledge. The Coastal Virginia Offshore Wind project “is essential to meeting the policy goals set forth in the VCEA and other legislation mandating the development and deployment of renewable generation resources.”

Critics, however, have contended that the language of the VCEA dealing with offshore wind constitutes an unnecessary giveaway to Dominion that will saddle customers with unreasonable costs. One ProPublica-Richmond Times-Dispatch investigation found that a late change to the law requested by Dominion increased the allowable costs associated with the wind project from $7.3 to $9.8 billion.

One 2020 estimate by the SCC found that by 2030, the VCEA could increase customers’ electricity costs by $800 annually. Republicans, fresh from retaking control of the House of Delegates and executive branch in elections Tuesday, on Thursday said one of their priorities would be rolling back Democrats’ climate change policies, of which the VCEA was the most prominent.

Asked about whether Dominion expects a change in energy policy out of Richmond during Friday’s investor call, Blue said that the utility over the past 15 years “has maintained constructive relationships with members of both parties, and we don’t see any reason that would change.”

McAuliffe: Virginia will regulate carbon emissions; ‘the threat of climate change is real’

From an Article by Robert Zullo, Richmond Times – Dispatch, May 16, 2017

Gov. Terry McAuliffe today directed the Virginia Department of Environmental Quality to begin assembling regulations to reduce carbon emissions from Virginia power plants, a move that was celebrated by environmentalists and renewable energy businesses who see the state as a laggard when it comes to solar and wind capacity and energy-efficiency programs.

Virginia Republicans, however, condemned the Democratic governor’s carbon directive as overreach that would raise electric prices and hamper economic growth.

“The threat of climate change is real, and we have a shared responsibility to confront it. Once approved, this regulation will reduce carbon-dioxide emissions from the commonwealth’s power plants and give rise to the next generation of energy jobs,” the governor said in a statement. “As the federal government abdicates its role on this important issue, it is critical for states to fill the void. Beginning today, Virginia will lead the way to cut carbon and lean in on the clean-energy future.”

Though it does not lay out the 30 percent reduction in carbon emissions by 2030 that environmental groups wanted, McAuliffe’s executive directive instructs the DEQ to develop a proposed regulation for the State Air Pollution Control Board to abate, control or limit carbon dioxide from power plants that will “allow for the use of market-based mechanisms and the trading of carbon dioxide allowances through a multi-state trading program.” The proposed regulation is due to be presented to the board by Dec. 31, just before McAuliffe leaves office.

Last summer, McAuliffe convened by executive order a working group consisting of cabinet officials and leaders of the state Department of Environmental Quality and Department Mines, Minerals and Energy to develop recommendations on cutting carbon from power plants. The market-based carbon trading aspect was a key component of the group’s report, which was sent to the governor last week.

Dominion Energy, the state’s largest utility, has recently pointed to its own emission reductions, a push toward developing new solar installations and acceptance of carbon regulation as “settled public policy.”

“Dominion has been preparing for carbon regulation for some time now and appreciates being a part of the stakeholder engagement process,” spokesman David Botkins said, adding that the company’s two new gas-fired power plants in Brunswick and Greensville counties are subject to some of the strictest carbon-dioxide limits “on record.”

Environmental groups, who were some of the largest contributors to his 2013 campaign, hailed McAuliffe’s move as strong climate leadership in the face of a March executive order by President Donald Trump aimed at unwinding the Clean Power Plan, former President Barack Obama’s signature regulation aimed at cutting emissions from power plants. Trump’s order was seen as a death blow for the plan, which has been stalled in federal courts.

“This bold action demonstrates that when Washington fumbles and falls, with the right leadership, the states can lead,” said attorney Will Cleveland of the Southern Environmental Law Center in Charlottesville. “Hopefully Gov. McAuliffe’s actions today will inspire policymakers in other states to follow a similar course.”

The Virginia Conservation Network, a consortium of more than 100 environmental groups that includes the law center as well as the Virginia League of Conservation Voters, the Natural Resources Defense Council, the Virginia Chapter of the Sierra Club and Appalachian Voices, called McAuliffe’s directive “the largest step taken in the United States to tackle climate change since President Trump took office.”

“Climate change is one of the most pressing issues of our time, especially when it comes to its devastating impacts on Virginia’s most vulnerable communities,” said Mary Rafferty, the network’s executive director. “It is imperative that every level of government steps up to be a part of the solution.”

The Republican Party of Virginia, however, was less impressed. “Governor McAuliffe’s executive order is the worst kind of virtue signaling,” spokesman David D’Onofrio said. He criticized Obama’s Clean Power Plan as an expensive and ineffectual measure that he said would have reduced global temperatures by .015 degrees while increasing electricity costs by billions.

“If reducing emissions for the entire country gets .015 degrees, how much less would a Virginia-only plan do? D’Onofrio said. “Meanwhile the free market has led to significant year-over-year reduction in CO2 emissions in the U.S. Terry McAuliffe’s decision to ”resist’ common-sense environmental policy will drive up prices for consumers, cost Virginians jobs and make it even more difficult to grow our economy.”

Environmentalists argued that the final Clean Power Plan rule was too soft on Virginia and that opponents greatly overstated the cost of compliance. Dominion itself filed a legal brief in support of the plan, saying that “effects on power plants and customers can be successfully managed” provided that the rule allows market-based compliance measures, such as emissions trading, and allowed states to create flexible timelines.

“The rule is compatible with long-term industry trends influenced by market conditions and prior environmental regulations,” the company wrote.

Channing Martin, chairman of law firm Williams Mullen’s environmental and natural resources section, called the directive an aggressive move for the final year of McAuliffe’s term. “They’re going to have to get cracking to get that thing done,” he said. “It will be a significant rulemaking and it is no question going to be challenged at every opportunity.”

And though Virginia Attorney General Mark Herring issued an opinion last week that the air board can regulate carbon under its existing authority, Martin predicts that the issue will surface again.

“The question will be does the board on its own have the ability to promulgate these regulations or does the General Assembly have to pass legislation to authorize it?” he said. “There’s going to be many parties participating in it and it’s going to result in litigation. If any regulations get enacted it will be after the governor leaves office.”

Virginia House of Delegates Speaker William J. Howell, R-Stafford, who is retiring, said McAuliffe’s directive is “a broad assertion of regulatory authority, Washington-esque in both its nature and scope” that ignores the legislative process.