Richmond, Va.-based Dominion Energy Inc. announced a cost increase for its Coastal Virginia offshore wind (CVOW) project that will raise the total cost of the project to $10.7 billion from $9.8 billion (excluding financing costs). We expect this cost increase will lead the company to take a charge of $100 million when it reports its fourth-quarter 2024 results. The cost increase primarily stems from higher network upgrade costs assigned to the CVOW project by PJM (the regional electric grid operator), mostly reflecting the generator interconnect process, and higher onshore electrical interconnection costs. We expect this development will have a modest impact on Dominion?s financial measures, including weakening its funds from operations (FFO) to debt by about 10 basis points from
