Dominion Energy Adjusts CVOW Project Costs Due to New Tariffs

Richmond, Virginia — Dominion Energy announced on November 3, 2025, that tariffs imposed by the U.S. government have affected the financial outlook of the Coastal Virginia Offshore Wind (CVOW) project. The company now estimates that the total capital costs for the 2.6 gigawatt (GW) offshore wind farm have risen to approximately $11.2 billion, up from a previous estimate of $10.9 billion. This increase is primarily due to new federal tariffs on imported materials and components critical to construction.

In its third-quarter financial results released on October 31, Dominion indicated that approximately $443 million of the updated costs can be attributed to these tariffs. The company clarified that this amount accounts for actual and projected tariff expenses on materials sourced internationally. As a result, the additional charge to consumer bills is expected to be about $0.63.

Despite these increases, Dominion confirmed that the project cost aligns with its approved prudency threshold, and Virginia’s regulatory protections remain intact. The tariffs include a 30% charge on imports from Mexico, 35% from Canada, and varying charges based on material type from the European Union and other nations. Dominion noted that there is no ‘stacking’ of tariffs for steel imports.

The financial impact is shared under cost-sharing arrangements with partners. Dominion anticipates that its own exposure to tariff expenses could be between $35 million and $218 million. The company emphasized that the share of costs borne by project partners would be based on regulatory mechanisms that govern recovery.

Dominion and Stonepeak jointly own the CVOW project, which will consist of 176 wind turbines located 43 kilometers off the coast of Virginia Beach. In an update on the construction status, Dominion reported that all monopiles and nearly half of the transition pieces have been installed. The arrival of the wind turbine installation vessel Charybdis at Portsmouth Port in September has paved the way for the installation of turbines, set to start this month.

As of now, construction is around 66% complete and remains on schedule. Dominion aims to achieve its first power generation in the first quarter of 2026, with full commercial operations expected by the end of that year. The CVOW project, once operational, will be the largest offshore wind farm in the U.S.