Dominion Energy, a major U.S. utility company, announced today that it is making strides in the search for potential co-investors in its Coastal Virginia Offshore Wind (CVOW) project. This offshore wind initiative, boasting a capacity of 2.6 GW, has attracted significant interest from potential partners. Dominion Energy aims to sell a non-controlling interest in the project as a strategic step to reduce risk. The ongoing business review, which includes this process, is anticipated to conclude by the end of 2023 or early 2024.
Dominion reiterated that the development of the CVOW project remains on schedule and within budget. The project is expected to yield substantial savings for customers, with an estimated reduction of over USD 3 billion (approximately EUR 2.8 billion) in fuel costs during the first decade of operation.
Robert M. Blue, Chairman, President, and CEO of Dominion Energy, emphasized the progress in identifying a non-controlling equity financing partner for the project. Blue stated, “The process has driven considerable interest from attractive and high-quality potential counterparties. A properly structured partnership with the right counterparty is an attractive option, but only if the terms of a potential transaction make sense for our customers and shareholders.”
The announcement comes as Dominion reported a third-quarter 2023 GAAP net profit of USD 163 million, equivalent to USD 0.17 per share, a decrease from USD 778 million, or USD 0.91 per share, in the same period the previous year. Non-GAAP operating earnings for the third quarter of 2023 also declined to USD 667 million, or USD 0.77 per share, compared to USD 847 million, or USD 0.99 per share, for the same period in 2022.
For the fourth quarter of 2023, Dominion anticipates operating earnings of around USD 0.35 per share, assuming normal weather conditions in its utility service areas.