Dominion Energy has increased the estimated cost of its Coastal Virginia Offshore Wind (CVOW) project by $120 million, citing the financial impact of ongoing U.S. tariffs, according to the company’s latest construction update filed with state regulators.
Chief Executive Bob Blue said that while actual tariff expenses to date amount to just $4 million, the projected costs could rise sharply if current trade policies remain unchanged. “If current policy stays in place through the end of the second quarter, that number could grow to about $120 million,” Blue said in a statement.
Dominion warned that the cumulative tariff exposure for the project could reach $500 million by its anticipated completion in late 2026. The company would be responsible for approximately $130 million of that total.
Despite the increase, Dominion said the overall $10.8 billion cost of the 2.6-gigawatt offshore wind development remains on track. The project, one of the largest of its kind in the U.S., is scheduled to deliver its first power in early 2026, with full commissioning expected by the end of that year.
Blue emphasized that the cost of project components, excluding tariffs, has not changed. He also noted that a contingency fund of $222 million remains available to absorb unforeseen expenses. “We made our quarterly offshore wind construction update filing with the Virginia State Corporation Commission today, in which we increased total project cost by about $120 million, which aligns with our estimate of actual incurred plus projected tariff costs through the end of the second quarter,” he said.
The project’s levelised cost of energy is expected to remain competitive at $62 per megawatt-hour, including renewable energy credits.
Dominion is sharing half the project’s cost with private equity firm Stonepeak. A regulatory settlement with the Virginia State Corporation Commission caps the amount that can be recovered from customers, limiting the financial impact on ratepayers. According to the company, the cost update will increase monthly residential electric bills by just four cents over the life of the project.
“Let me be clear, CVOW remains one of the most affordable sources of energy for our customers,” Blue added.
The company continues to monitor the evolving trade policy landscape and says it is engaging with federal officials to manage risks associated with imported wind components.
