The giant utility Dominion Energy has found itself in a disagreement with state regulators over a proposed performance guarantee for its $10 billion Coastal Virginia Offshore Wind project, one of the largest planned wind farms in the U.S. development pipeline. The clause is enough of a concern for Dominion that it has threatened to scuttle CVOW altogether and walk away – a seismic shock for the budding U.S. offshore wind industry.

Dominion has historically been one of the most committed players in the U.S. offshore wind business. It was an early and enthusiastic entrant, beginning its planning for a small pilot project as early as 2012. The pilot stage was completed in 2020 and is one of only two (small) offshore wind farms operating in the U.S. today.

To build the full-scale 2.6 GW facility, Dominion is buying the only U.S.-built wind turbine installation vessel on the market, the future Charybdis, at a price of half a billion dollars – a financial commitment that no other developer or shipowner has been willing to match yet. Construction on the vessel is already well under way.

However, the Virginia State Corporation Commission (SCC) – a regulator with a broad mandate governing insurance, railroads and utilities – has made a decision that may make CVOW untenable, according to Dominion. The SCC will allow Dominion to bill the cost of CVOW’s development to household ratepayers in the form of a miniscule rider fee – but only if its turbines perform at a 42 percent capacity factor or better in any three-year period. Any shortfalls would be Dominion’s to cover.

Dominion has appealed the decision, describing it as unprecedented and “unlawful.” The firm warns that the guarantee is so broad that it would leave Dominion on the hook for any decline in power output – whether caused by a hurricane, cyberattack, climate change or any other factor.

“The Commission’s unprecedented imposition of an involuntary performance guarantee condition on its approvals, however, is untenable. As ordered, it will prevent the project from moving forward, and the company will be forced to terminate all development and construction activities,” Dominion wrote in an appeal. “As recognized by the Commission, the project is favored by the General Assembly’s support for offshore wind generation as a cornerstone of the Commonwealth’s plan for a clean and reliable energy future.”

The disagreement follows a just few weeks after Dominion celebrated formal approval from the SCC for the project to move forward. The initial order was released August 8, and it noted that there would be some form of performance requirement, but did not give any details – until now.

Dominion’s appeal to the SCC begins a rehearing process, and the company sounded an upbeat note in a statement to local TV media.

“We look forward to completing the Coastal Virginia Offshore Wind Project as a regulated project to build on our long record of affordability and reliability,” a Dominion spokesperson told local media.

On Sunday, U.S. warships made a transit of the Taiwan Strait for the first time since the visit of U.S. Speaker of the House Nancy Pelosi to Taipei in early August.

Pelosi’s diplomatic stopover drew furious rhetoric from Beijing, along with missile test launches, mass naval exercises and warplane flights. By comparison, the transit of two U.S. Navy cruisers through the strait this weekend drew a relatively muted response – less even than China’s typical pushback on American freedom of navigation operations (FONOPs).

USS Antietam and USS Chancellersville were assigned to this transit, and 7th Fleet emphasized that they passed through “waters where high seas freedoms of navigation and overflight apply” with the intent to demonstrate the U.S. commitment to a “free and open Indo-Pacific.”

The PLA responded in a brief statement that it “conducted security tracking and monitoring of the U.S. warships’ passage in the whole course” and had all of their movements “under control” throughout. China’s foreign ministry issued no formal response – a departure from the usual practice of condemnation.

The Global Times, the most overtly nationalistic branch of China’s state media, dismissed Antietam and Chancellorsville as “old ships” and suggested that their presence was not an issue. “As long as the US vessels follow the rules of ‘innocent passage’ to keep low profile and pose no harm, turn off weapons and fire-control radar system, and bring no actual threat to China’s security, the PLA would just follow and monitor,” Global Times wrote.

The U.S. Navy is all too aware of the age of the Ticonderoga class, and it wants to decommission all of them by 2027 – if Congress will allow it.

After more than a decade of effective threat-reducing counter-piracy operations the shipping industry has decided to remove the Indian Ocean High Risk Area (HRA), effective from January 1 next year. No piracy attacks against merchant ships have occurred off Somalia since 2018.

“Threat and risk assessments should still be carried out, and best management practices followed to continue to mitigate the risks presented in a changeable and often complex and potentially threatening environment,” a statement from the world’s top shipping organisations urged.

Piracy incidents around the world were at their lowest levels in nearly 30 years for the first half of this year. According to statistics from the ICC International Maritime Bureau (IMB) the 58 reported incidents of piracy were the lowest for the first half of any year since 1994.

The Gulf of Guinea and the Singapore Straits were the two areas with the highest amount of attacks in the first six months of the year with Somalia barely mentioned.

Source: Splash 247