RICHMOND, Va. (WAVY) — A historic agreement has been reached to bring a nearly $10 billion offshore wind project to Virginia.

Virginia Attorney General Jason Miyares announced the agreement Friday regarding the $9.8 billion Coastal Virginia Offshore Wind project in a public filing made with the Virginia State Corporation Commission (SCC).

Access the filing HERE.

Traditionally, Virginia consumers have paid for all of the costs of utility projects. The new agreement changes that in the event of cost overruns with Dominion Energy agreeing to cost sharing and a cost cap on construction expenses, after which it will be responsible for all cost overruns.  

The agreement provides for initial cost sharing between customers and Dominion up to $11.3 billion. If the construction costs fall between $10.3 billion and $11.3 billion, Dominion and consumers will share those additional costs evenly. If the construction costs of the project exceed $11.3 billion, Dominion is required to pay those additional costs in full. 

In the unlikely event that the project’s construction costs exceeds $13.7 billion, the project will be put back before the SCC for a further determination of viability and/or cost allocation. This feature of the agreement protects all stakeholders from catastrophic cost overruns.  

This cost-sharing and cost-cap agreement means that Dominion will potentially have to pay almost $3 billion if the project runs over budget.

The proposed stipulation is subject to final approval by the Commission.