Dominion subsidiary to acquire CVOW-South from Avangrid for $160M

Virginia Electric and Power Company, a wholly owned subsidiary of Dominion Energy (D), announced that it has agreed to acquire the Kitty Hawk North Wind offshore wind lease and associated developments, which will be known as CVOW-South, from Avangrid (AGR), for approximately $160M, inclusive of a payment of about $3,000 per acre for the nearly 40,000-acre lease. If approved by regulators and constructed, CVOW-South would have a capacity of 800 MW, enough capacity to serve 200,000 homes and businesses, and the project would connect to the company’s transmission grid. The company does not have detailed cost or in-service date estimates at this time. Such estimates would be developed during future development phases. The company is aware of the community concerns regarding the proposed landing site in Sandbridge, Va., and is committed to working closely with the community, the Commonwealth of Virginia, and the City of Virginia Beach as it considers this project. After receipt of necessary approvals from the Bureau of Ocean Energy Management and the City of Virginia Beach, Dominion Energy and Avangrid expect to close the transaction in the fourth quarter of 2024.