Virginia regulator approves Dominion’s planned offshore wind farm (NYSE:D)

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Dominion Energy (NYSE:D) said on Friday that Virginia regulators approved its application to build the 2.6 GW Coastal Virginia Offshore Wind project and recover the cost from ratepayers.

Dominion (D) said the Coastal Wind project will generate enough clean energy to power as many as 660K homes and represents a ~$9.8B clean energy investment and as the largest project of its kind in the US

The Virginia State Corporation Commission order includes approval for 17 miles of new transmission lines and other onshore infrastructure; the project will be constructed 27 miles off the coast of Virginia Beach.

The company expects the project will save Virginia ratepayers more than $3B during its first 10 years in operation, with savings potentially doubling to nearly $6B if current commodity market pressure trends continue.

Dominion (D) is pleased with the approval but is “reviewing the specifics of the order, particularly the performance requirement.”

Dominion Energy (D) is a “steady performer but features a very high P/E ratio with negative free cash flow,” Mike Zaccardi wrote in a bearish analysis published earlier this summer on Seeking Alpha.

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