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Posts Tagged ‘Dominion Energy’

Court denies Dominion’s request for a temporary restraining order

Posted in energy policy, Offshore Wind, Regulation, tagged , , , , on December 31, 2025| Leave a Comment »

District Judge Jamar Walker rejected Dominion Energy’s request for an immediate temporary restraining order (TRO) that would allow work on the suspended offshore wind projects to resume immediately.

The December 28 court ruling is consistent with the Department of the Interior’s position that the TRO request be converted to a request for a preliminary injunction. Interior had argued that a preliminary injunction motion could likely be resolved by mid-to-late-January.

The Government also asserted that more time is needed to submit the classified information that is central to the dispute.

Thoughts on this case: A respected colleague recalled this advice from Don Hodel, a widely admired Secretary of the Interior during the Reagan administration: “For all its faults, a contract is a contract, great men and great nations keep their word.”

Another colleague reminded me of the offshore North Carolina oil and gas leases that were suspended in the 1990s. The companies sued the Federal government for breach of contract, and the U.S. Supreme Court ruled 8-1 on June 26, 2000, in Mobil Oil Exploration & Producing Southeast Inc. v. United States, that the government must repay the lessees.

If the suspended Atlantic wind leases are cancelled, the govt would presumably have to compensate lessees for lease purchase and development expenditures. The costs to the Federal govt would be enormous – in the tens of $billions.

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Dominion Energy vs. Dept. of the Interior et al

Posted in energy policy, Offshore Wind, Regulation, tagged , , , , , on December 30, 2025| Leave a Comment »

Dominion’s suit challenging the Coastal Virginia Offshore Wind suspension order is attached.

Summary: “BOEM’s order sets forth no rational basis, cannot be reconciled with BOEM’s own regulations and prior issued lease terms and approvals, is arbitrary and capricious, is procedurally deficient, violates the Outer Continental Shelf Lands Act (“OCSLA”), and infringes upon constitutional principles that limit actions by the Executive Branch. This Court must therefore vacate the Order and enjoin BOEM from taking further action with respect to that Order.”

Key points raised by Dominion:

  • Dominion Energy Virginia (DEV) has spent approximately $8.9 billion to develop CVOW to date, which is over two-thirds of the total projected cost of $11.2 billion.
  • BOEM and Interior afforded DEV no advance warning or due process regarding the Order for CVOW.
  • The Order alleges no CVOW violation or deficiency.
  • The Order points to unnamed “national security threats” based on a November 2025 “additional assessment regarding the national security implications of offshore wind projects” by DoD, “including the rapid evolution of relevant adversary technologies and the resulting direct impacts to national security from offshore wind projects” generally.
  • The Order deems this information “new” and “classified” without any justification or detail. Moreover, as BOEM and DoD should know, certain DEV officials have security clearances to receive and review classified information, yet never were afforded such an opportunity prior to issuance of the Order.
  • DEV is suffering more than $5 million per day in losses solely for costs relating to vessel services associated with the Order. DEV is also incurring losses related to additional storage costs for the significant amount of equipment, idle workforce, contractual penalties, and additional costs.
  • BOEM’s Order comprises a single page, identifies no specific concerns, and provides no supporting documentation.
  • Agencies are required to consider costs and benefits in their decision-making
  • Agencies are required to consider alternatives in their decision-making.
  • The CVOW Order unlawfully deprives DEV of a property interest without due process.

    Dominion’s weakest argument follows (bad State legislation shouldn’t dictate Federal energy policy):

    CVOW is critical to Virginia’s legislative clean energy directive and DEV’s commitment to achieving net-zero emissions. The VCEA requires the transition of Virginia’s electric grid to 100 percent non-carbon producing energy generation by 2045. Va. Code § 56-585.5. The VCEA also states that the construction of Virginia offshore wind facilities is in the public interest. Va. Code § 56-585.1:11 (C)(1).

      dominion-power-vs-bureau-of-ocean-engery-managementDownload

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      Excellent piece on the directed suspension of the nearly completed Virginia Wind project

      Posted in energy policy, Offshore Wind, tagged , , , , on December 23, 2025| Leave a Comment »

      Excerpts from an excellent opinion piece by Derrick Max of the Thomas Jefferson Institute for Public Policy:

      Coastal Virginia Offshore Wind (CVOW) is no ordinary renewable project. It was created by legislative command. The 2020 Virginia Clean Economy Act (VCEA) declared Dominion’s 2.6-gigawatt wind farm “in the public interest,” effectively tying the hands of the State Corporation Commission and guaranteeing Dominion full cost recovery and profit. The risk doesn’t sit with shareholders — it sits with Virginia’s ratepayers.

      The Thomas Jefferson Institute opposed that structure from the start. We warned that forcing captive customers to underwrite an unproven, high-cost project located in a hurricane prone region would expose Virginians to escalating bills with little accountability. Yet when a group recently asked the federal government to shut CVOW down, we declined to join. Why? Because government shouldn’t pick winners and losers — not when it mandates projects, and not when it stops them. Especially when a project is in its final stretch and no economic analysis of such a decision has been completed (or shared). 

      Virginia’s offshore wind story shows how risky it is when government drives energy decisions by decree. One administration mandates a massive buildout; the next halts it over security fears. Businesses can’t plan around that. Ratepayers shouldn’t have to pay for it.

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      Encouraging New Year’s energy news: the world’s first commercial nuclear fusion plant is coming to Virginia

      Posted in climate, decommissioning, energy, Wind Energy, tagged , , , , , , on January 3, 2025| Leave a Comment »

      Virginia Mercury photo: Gov. Youngkin makes the announcement
      • Commonwealth Fusion Systems (CFS) will independently finance, build, own, and operate a grid-scale fusion power plant in Chesterfield County, Virginia.
      • Dominion Energy will provide non-financial collaboration, including development and technical expertise as well as leasing rights for the proposed site.
      • This pioneering plant will generate 400 MW of continuous energy on 25 acres (total site is 100 acres). By comparison, Dominion Energy’s offshore wind project, which will include 176 turbines and 3 offshore substations, will intermittently produce (on average) 1092 MW (2600 MW x 0.42 capacity factor).
      • Gov. Youngkin emphasized that the project will be financed entirely by CFS, with no costs passed on to Dominion Energy ratepayers. (Good news for us Dominion Energy customers! 😀)
      Fusion technology works by combining hydrogen isotopes — deuterium extracted from water and tritium from lithium — under extreme heat and pressure, using powerful magnets to fuse the elements. The process generates heat, which boils water to create steam that spins a turbine, producing electricity. The byproduct is helium.

      Why BOE, and most everyone else, likes nuclear fusion:

      • Clean and sustainable power source.
      • Unlike traditional nuclear power plants that rely on fission, fusion replicates the energy-producing process of the sun.
      • Modest space requirements.
      • Generates four times more energy per kilogram of fuel than fission and nearly four million times more energy than burning oil or coal.
      • No radioactive waste
      • Safe energy source; no risk of a meltdown event
      • Nuclear Regulatory Commission has determined that fusion technology, unlike fission, does not require a federal license.

      Tempering the optimism a bit, the plant won’t be operational until the early 2030’s. As we all know, there could (will likely) be delays. CFS is currently building a demonstration plant in Massachusetts that will use their SPARC “tokamok” technology.

      The implications of advanced nuclear technology, not only the holy grail of fusion energy, but also modular fission reactors, for intermittent wind and solar power are substantial. Ultradeep geothermal is on a similar timeframe, and could also supersede wind and solar.

      The logic behind costly offshore wind projects is therefore questionable, and the regulators better make sure that the decommissioning of these facilities is fully funded. The most likely long-term scenario is for natural gas to continue meeting most power generation needs as the nuclear and ultradeep geothermal alternatives are phased in.

      More about fusion. Most of you can start at Level 3. 😉

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