The State Corporation Commission (SCC), which regulates public utilities, recently approved a new Dominion Energy-backed $9.8 billion offshore wind farm, the Coastal Virginia Offshore Wind Project (CVOW), 27 miles off the coast of Virginia Beach.
Unsurprisingly, Virginia ratepayers will pay more to “transition” away from fossil fuels as stipulated by the 2020 Virginia Clean Economy Act—Virginia’s “Green New Deal” signed into law by former Governor Ralph Northam (D-VA). Governor Glenn Youngkin (R-VA) has pledged to repeal the VCEA but can’t unless Republicans retake the State Senate next year.
The project’s supporters claim the 176 planned wind turbines will each produce “14.7 megawatts” to power upwards of 660,000 homes.
But there are major problems befalling the project.
Most notably, the CVOW contains a “revenue requirement of $78.702 million for the rate year of September 1, 2022, to August 31, 2023, to be recovered through a new rate adjustment clause (Rider OSW).” The Rider OSW, the SCC noted, will have a base monthly bill increase of $4.72 but a peak monthly bill increase of $14.22.