Dominion Energy’s 2.6-gigawatt Coastal Virginia Offshore Wind project now carries an $11.7 billion price tag, up $288 million from the April estimate, with completion pushed to the end of 2027 from early next year. The increase arrives alongside a proposed merger with NextEra Energy that would create the largest regulated utility in the United States, and a second quarter where net income fell to $340 million from $760 million a year earlier.
The wind project math
Dominion attributed the cost revision to three line items in its 10-Q: revised network upgrade costs assigned by PJM Interconnection, tariffs imposed by the Trump administration in April, and updated turbine installation projections. The company said the project is 81 percent complete and that operational turbines are delivering more than 450 megawatts. Chief Executive Robert Blue reiterated the claim that CVOW will save customers about $5 billion on fuel during its first decade of operation, a figure the company has cited on previous calls without providing the underlying model.
The merger timeline
Dominion said it will begin seeking state and federal approvals for the NextEra transaction next quarter and targets financial close by the end of 2027. The combined entity would serve 10 million customers and control a 130-gigawatt large-load interconnection pipeline, of which Dominion’s portion has grown 11 percent since December. The Virginia State Corporation Commission has set an accelerated six-month review with hearings scheduled for November 17. Jefferies analyst Julien Dumoulin-Smith predicted the parties would attempt a settlement before those hearings begin.
The analyst view
Dumoulin-Smith called the latest wind delay and cost increase discouraging but not a major surprise for investors. He noted the Virginia regulatory review will give the market a strong view on whether the transaction can be approved within the next few months. Blue framed the project’s progress optimistically on the earnings call, stating that every component type is in service and functioning as expected and that Dominion has delivered maximum available power from CVOW at the request of system operators during recent demand peaks.
Asset sales and earnings drag
The company agreed in May to sell a portfolio of nonregulated solar assets in its Contracted Energy segment to Enel for $140 million. Dominion cited rising offshore wind costs, charges related to nonregulated assets, higher fuel costs, and its June reentry into the PJM capacity market as drags on second-quarter earnings. The source text ends mid-sentence on the Enel transaction; no break fee, condition, or premium to undisturbed price was disclosed for the merger, and the company’s stated rationale for both the merger and the wind project’s fuel savings remains a claim, not a verified result.