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Dominion Energy Announces Agreement to Acquire Offshore Wind Lease from Avangrid for Potential Future Regulated Generation Development

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Dominion Energy Announces Agreement to Acquire Offshore Wind Lease from Avangrid for Potential Future Regulated Generation Development

  • The 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 by the 2030s.
  • Acquisition provides opportunity to deploy additional regulated offshore wind generation to meet unprecedented growth in electricity demand using a comprehensive approach that supports the goals of the Virginia Clean Economy Act
  • Transaction value of ~$160 million consists of an acquisition by lease ($117 million) and reimbursement of associated development costs ($43 million) to Avangrid; the transaction is expected to close in the fourth quarter of 2024
  • No changes to the 2024-2029 investment plan are planned March 1, 2024Investor Day

RICHMOND, Virginia, 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, to be known as CVOW-South, from Avangrid, Inc. (NYSE: AGR), for approximately $160 millionincluding a payment of approximately $3,000 per acre for the lease of nearly 40,000 acres.

If the project is approved by regulators and built, CVOW-South would have 800 MW of capacity, enough to serve 200,000 homes and businesses, and would be connected to the company’s transmission grid. The company does not currently have detailed cost estimates or an in-service date. Those estimates will be developed during future development phases.

Robert M. BlueDominion Energy Chairman and CEO, said:

“With the demand for electricity in our Virginia With acreage expected to double over the next 13 years, Dominion Energy is securing access to power generation resources that enable us to continue to provide the reliable, affordable and increasingly clean energy that powers our customers every day. This transaction provides our company with another potential option to meet this growing demand in a size and timeframe consistent with the regulated business mix, credit and risk profile objectives of the recently completed business review.

“It also allows us to leverage the unique expertise we have gained during the highly successful development and construction to date of the Coastal Virginia Offshore Wind (CVOW) commercial project, reducing project risk to the benefit of customers and shareholders. Virginia “The regulated offshore wind development model is proving to be a way to deliver wind energy on time and on budget, at exceptional relative value for our customers. This is the model we intend to follow for any future offshore wind development.”

Virginia Electric and Power Company is currently constructing the 2.6 GW CVOW, located approximately 25 miles north of the CVOW-South lease. The CVOW continues to remain on schedule and on budget, with an expected in-service date of late 2026. To date, 25 monopiles have been installed since the installation campaign began on May 22, 2024in line with the company’s target of 70 to 100 monopiles during the first of two installation seasons running through the end of October.

The company is aware of the community’s concerns regarding the proposed landing site in Sandbridge, Virginia, and is committed to working closely with the community, the Commonwealth of Virginiaand the City of Virginia Beach as he considers this project.

After receiving the necessary approvals from the Bureau of Ocean Energy Management and the City of Virginia BeachDominion 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 power their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Virginia. The company is committed to delivering reliable, affordable and increasingly clean energy every day and achieving net-zero emissions by 2050. Please visit DominionEnergy.com to learn more.

Prospective 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 the 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 closing conditions, the timely performance by third parties under existing or future contracts, or the occurrence of extreme weather events, as well as other factors detailed from time to time in the company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019. the 31st of December2023. Any forward-looking statements contained in this release speak only as of the date of this release, and the Company undertakes no obligation to provide revisions or update such statements after the date of this release.

SOURCE Dominion Energy