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Investor Stonepeak will have noncontrolling interest if deal approved

Dominion Energy announced Thursday it has reached an agreement with investment firm Stonepeak to sell a 50% noncontrolling stake in the Coastal Virginia Offshore Wind commercial project off the Virginia Beach coast for nearly $3 billion.

If the sale is approved by the Virginia State Corporation Commission and the North Carolina Utilities Commission, as well as federal regulatory agencies, Richmond-based Dominion will retain full operational control of construction and operations of the $9.8 billion CVOW project, which has received final federal approvals and is expected to start construction in May. The deal is expected to close by the end of this year, according to Dominion’s news release.

“The Coastal Virginia Offshore Wind project continues to proceed on time and on budget and consistent with our previously communicated timing and cost expectations,” Bob Blue, Dominion’s chair, president and CEO, said in a statement Thursday. “A competitive partnership process attracted high-quality interest, resulting in a compelling partner for CVOW. Stonepeak is one of the world’s largest infrastructure investors, with more than $61 billion in assets under management and an extensive track record of investment in large and complex energy infrastructure projects, including offshore wind. Their significant financial participation will benefit both our project and our customers.”

Under the deal announced Thursday, Dominion Energy expects to receive $3 billion — representing 50% of the offshore wind farm’s construction costs through the anticipated closing of the deal by Dec. 31, minus $145 million, the initial withholding amount. If total construction costs remain at the current budget of $9.8 billion or less, excluding financing costs, Dominion will get back $100 million from the withholding amount.

However, if construction costs more than $11.3 billion, the Fortune 500 utility will receive no money back from the withheld $145 million. If the project costs reach $11.3 billion, Stonepeak and Dominion would each contribute 50% of additional capital costs needed to fund construction, but if the project costs between $11.3 billion and $13.7 billion, Stonepeak would not be required to contribute more capital to pay the additional costs, although it has the option to do so, the announcement says.

In terms of structure, Stonepeak would invest in a newly formed subsidiary of Dominion Energy Virginia, which would be a public utility based in Virginia. The transaction is expected to improve Dominion’s estimated 2024 consolidated FFO-to-debt by approximately 1% and reduce the utility’s overall financing needs during construction, according to the announcement Thursday.

McGuireWoods and Morgan Lewis served as Dominion’s legal advisers on the deal, while Citi and Goldman Sachs acted as co-financial advisers for the utility.

The 2.6-gigawatt CVOW, the largest offshore wind farm in the U.S., is expected to power 660,000 homes once it is fully constructed in late 2026. CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach. Vinson & Elkins served as legal adviser to Stonepeak, while Mizuho Securities USA, through its affiliate Greenhill & Co., and Santander US Capital Markets served as co-financial advisers.

Keeping finances solid

In September 2023, during Dominion’s second-quarter earnings report, the utility said it intended to sell a noncontrolling interest in the CVOW to lower risk in the project and solidify the company’s balance sheet. In November 2023, Dominion officials said during its third-quarter earnings call that it was in advanced stages of the process to find a co-investor. The utility also announced in November it had filed an adjustment with the SCC that would lower the levelized cost of electricity estimate for CVOW from $80 to $90 per megawatt hour (MWh) to $77/MWh.

“Dominion’s framework may be somewhat more appealing for an investor to potentially become a part owner of the project,” said Mike Doyle, a senior equity analyst for utilities at Edward Jones, in an interview with Utility Dive last November. However, he added that the lowered price was surprising, given that costs are rising across the U.S. offshore wind industry, as some developers have had to cancel existing power-purchase agreements due to higher project costs.

Speaking with Virginia Business on Thursday, Doyle said he was a little surprised by the Stonepeak deal, “given the state of the offshore wind industry in the United States” and its higher costs, and the cost-sharing agreement between Dominion and the investment firm is unusual. “This [deal] has a little different structure. It probably is more intriguing to the investor.”

The fact that Dominion has remained on budget with the wind farm is significant, Doyle said. “They’re doing better than most.” He also said he doesn’t expect to see any big regulatory difficulties, especially if CVOW’s expenses stay on course. “Virginia is pretty motivated to get this done. Regulators want to see it happen.”

In Thursday’s fourth-quarter and full-year earnings report, Dominion reported $2 billion in net income for the calendar year 2023, up from $1.3 billion in 2022, and $14.39 billion in revenue for last year.

At start of trading Thursday, Dominion’s stock was at $45.62 a share, reaching a high of $46.96 before 10 a.m. and then fell to $44.88 before noon. As of 12:45 p.m., it was back up at $45.47 a share, a 1.78% decrease.

Stonepeak, which has 56 investments in 61 countries, specializes in infrastructure investments. In 2022, the firm raised about $14 billion, including $100 million from the Virginia Retirement System, to invest in assets such as telecommunications towers and warehouses. According to Stonepeak’s website, the firm invested in Dominion Midstream Partners, a limited partnership formed by Dominion to build its portfolio of natural gas assets, beginning in December 2016. In January 2019, Stonepeak realized its investment in Dominion, the site says.

Rob Kupchak, Stonepeak’s senior managing director, said in a statement, “Having previously partnered with Dominion Energy, we look forward to extending our relationship through CVOW, which is a fitting addition to our global renewables strategy given its potential to provide meaningful renewable capacity to the U.S., advanced stage of development, and downside-protected fundamentals. Dominion Energy’s impressive track record building and operating large-scale infrastructure projects paired with Stonepeak’s experience successfully constructing offshore wind assets gives us confidence in CVOW’s path forward, and we are excited to partner with Dominion in delivering this critical renewable energy generation resource to its customers.”

Different from other partnerships

This deal goes against the trend seen in owner partnerships of other offshore wind farms along the East Coast, said Timothy Fox, a managing director with Washington, D.C.-based research firm ClearView Energy Partners.

“I would call this partnership an outlier,” he said, “because we’re seeing the splitting of projects among companies rather than a partnership,” like BP and Norway-based Equinor’s division of two offshore wind projects off New York that they had previously been 50-50 partners in. Similarly, New England utility Eversource Energy sold its 50% stake in two offshore wind projects off the New York coast to Global Infrastructure Partners, exiting its partnership with Ørsted, earlier this month.

A likely reason that Dominion Energy is bucking this trend by gaining a partner is “because Virginia’s regulatory structure is unique among the states pursuing offshore wind,” Fox said.

“Virginia policy allows the incumbent utility to develop the project and get a cost-of-service return, basically guaranteeing they get a percent return on their investment,” he said. “And the ratepayers in Virginia pay Dominion for the project, and a return. That’s not the case for any other project along the East Coast,” projects which are being developed by independent project developers who have greater risk.

Along with Dominion’s business model as the developer and power offtaker from the CVOW project, its delivery timeline guarantees likely helped seal the deal, according to Atin Jain, a senior associate with BloombergNEF.

“In tough market conditions, certainty trumps everything else. Dominion’s assurance of ‘on-budget’ and ‘on-time’ delivery for the Coastal Virginia Offshore Wind project likely did the trick in getting the deal rolling,” Jain said in a statement.

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One non-profit found private wells near Naval Air Station Oceana with "'unsafe levels' of PFAS," but it's not high enough to trigger Department of Defense support.

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VIRGINIA BEACH, Va. — Thousands of drinking water samples near more than 60 military bases showed unsafe levels of "forever chemicals" — including Naval Air Station Oceana in Virginia Beach.

The non-profit Environmental Working Group (EWG) analyzed Department of Defense data and found that military bases across the country are contaminating private drinking water wells with PFAS.

The group found 13 private wells near Naval Air Station Oceana with levels the EPA now deems unsafe, but it's not high enough to trigger Department of Defense support.

PFAS, or Per- and poly-fluoroalkyl substances, are chemicals used in hundreds of everyday products, including non-stick pans, some cosmetics and water-resistant clothing.

Firefighter says 'forever chemicals' have affected his health: 'This stuff is nasty'

For people like retired Air Force Firefighter Kevin Ferrara, the substances hid in firefighting foams on military bases.

"This stuff is nasty," Ferrara said. "We were literally slathered in it as we did our fire training."

Because those chemicals are extremely difficult to break down, the level in your blood can build up.

Ferrara said because of that, he’s now dealing with Type 2 diabetes, high cholesterol, sleep apnea and nerve damage. Some of his colleagues are diagnosed with cancer.

"PFAS exposure… we didn’t expect that," he said. "I think we’re only scratching the surface of what impacts it has on the human body."

Now, the EWG said contamination from military bases has seeped into the drinking water of nearby neighborhoods.

"That contamination finds the path of least resistance and ends up in our local communities," Ferrara said.

Jared Hayes with EWG said looking through Department of Defense data, they found 63 military bases showed "unsafe" levels of forever chemicals in thousands of drinking water samples near the bases, including Naval Air Station Oceana.

"Once they get into the water, they can spread out from the bases to surrounding areas and they can get into these drinking water wells," Hayes said. "From there, seeped into the soil and groundwater contaminating more than 450 sites that we know of so far across the country."

He said the groundwater at Dam Neck Naval Base revealed high levels of PFAS, as well.

"The Dam Neck Naval base in your area back in 2022, revealed that there were 18 different types of PFAS compounds found in the groundwater on base," Hayes said. "Just one type of PFOS, one of the most well-known PFAS chemicals, was found at over 30,000 ppt in the groundwater."

Defense Dept. adheres to PFAS standards advocates say are outdated, dangerous

Previously, the Environmental Protection Agency (EPA) has said anything above 70 parts per trillion is a dangerous level, but Hayes said it's "an outdated EPA health advisory standard that was first developed in 2016."

Now, the EPA has proposed federal limits that would limit toxic PFAS chemicals to the lowest level that tests can detect: 4 parts per trillion. They say it's a move that will save thousands of lives and prevent serious illnesses, including cancer.

The Department of Defense (DOD) is still operating under the guidelines of 70 parts per trillion. Any number above 70 found in a private well will trigger the agency to provide bottled water.

"The DOD is waiting until the regulatory limit is set and made into law, but in the meantime, people are drinking water that is considered to be unsafe," said Hayes.

According to Ferrara, his doctors say all of that exposure has caused a high level of PFAS in his blood.

"To date, I have 22.8 nanograms per milliliter of PFAS in my blood. It doesn't sound like a lot until you convert it to parts per trillion. Then it becomes 28,800 parts per trillion. You compare that to the EPA's new lifetime health advisory in drinking water of only 4 parts per trillion, that's a huge difference," he said.

Because of that risk of exposure, the Centers for Disease Control (CDC) is now recommending doctors have a discussion with patients to see what their exposure might be and if blood testing would be beneficial.

"Once they're in the body, they don't break down," said Hayes.

What are our military bases in Hampton Roads doing in the meantime?

In early February, leaders from Norfolk Naval Shipyard encouraged people living nearby to let them test their private well water.

"We’ve sampled on base here, we just haven’t sampled off base. So in this local area, this is the first time we’ve gone to the public to ask to sample the private drinking water wells around the base," said Jim Mosman, the Commanding Officer of Norfolk Naval Shipyard.

In a statement from the DoD, a spokesperson says the department is committed to addressing PFAS releases.

"DoD supports EPA working toward regulatory standards for PFAS that help ensure a consistent approach that applies to everyone. In anticipation of the final standard that EPA expects to publish in the next few months, the Department is assessing what actions DoD can take to be prepared to incorporate EPA’s final regulatory standard into our current cleanup process, such as reviewing our existing data and conducting additional sampling where necessary. The Department is expanding ongoing investigations to determine where PFAS has migrated off-base above the proposed levels and working to determine when public or private wells may have been impacted," said a spokesperson in a statement.

"It’s the Navy’s top priority right now to ensure that we are mitigating any exposures in our surrounding communities," said Cecilia Landin, with the Naval Facilities Command Mid-Atlantic Environmental Restoration Program.

But Hayes said cleanup of the chemicals needs to happen now.

"It’s going to cost $8 billion to clean this contamination up," he said. "Frankly, the longer we take to clean it up, the more expensive it’s going to be and the harder it’s going to be."

VIRGINIA BEACH, Va. — Virginia Beach residents Ireland Miller and her mom Georgia Liguid-Miller were thrilled to learn the puppy they adopted in the Fall is a star athlete.

“She’s just so tenacious, and what she wants she gets, and she will work for it," said Ireland.

Especially if it’s a tasty treat! You can tell that Wrigley, the Mini-Pin Chihuahua mix, is a natural athlete.

“What position do you think she would be best at?" News 3's Beverly Kidd asked.

"I would say a forward," said Ireland. "I would say any sport, any team she would definitely be offensive."

No wonder she was drafted to be in the big game this year— the Puppy Bowl!

“She loves the camera, she loves posing," said Miller.

The 9-month-old pooch was picked along with 129 other shelter dogs around the country to compete in Animal Planet’s annual event.

The Pungo family adopted Wrigley from the Southside SPCA in Richmond.

Wrigley was found in rural Farmville, Virginia, in a box with a few of her other siblings.

A foster family in Richmond trained Wrigley to chase toys and run fast until they felt ready to submit her for the Big Game.

The Millers had no idea they had a star on their hands.

“Oh yeah by the way when we say she’s a special dog she was in the puppy bowl," said Ireland. "They filmed the Puppy Bowl. She went up to New York and did the whole process."

“Her stage name is Flea Flicker so maybe that’s her stage persona," Miller added.

Francee Schuma of the Southside SPCA took “Flea Flicker” to New York to watch her take on Team Ruff.

"Flea Flicker is definitely a personality, so I want you to notice her and how she gets all up in with the referee,” said Schuma. "That’s going to be fun for you to see."

While the Puppy Bowl is fun to watch, the game’s mission is to call attention to shelter pet adoption.

“She’s on Team Fluff and we got her roster photo and just excited to see how well she did," said Ireland. "Sorry for everyone else who was playing against her."

The trio will be at a watch party in Richmond cheering on their furry family member.

“Everyone’s so excited, and they’ve made t-shirts," Ireland laughed. “I’m just hoping for her to get a little bit of screen time, some camera time.”

Even though Wrigley was adopted in Richmond, we consider her family Positively Hampton Roads.

You can watch Wrigley 'Flea Flicker' in the Puppy Bowl Sunday Feb. 11 at 2 p.m. on Animal Planet.

VIRGINIA BEACH, Va. — Many questions remain after the car that drove off the Virginia Beach Fishing Pier at the Oceanfront and plunged into the water was retrieved.

On the morning of Friday, Feb. 2, the car was recovered from the ocean floor - a few hundred feet from the Oceanfront boardwalk. During the recovery, police said they also found a dead body.

Police previously said a missing male may be connected to the incident. After a medical examiner identified the body, police confirmed that the man recovered with the car matches the missing persons report.

Here's a timeline of what we've learned so far:

Tuesday, Feb. 6: Police confirm person found in car was a Virginia Beach man

Friday, Feb. 2: Dead body and car recovered, police say

DISCLAIMER: Some viewers may find the content in the video below upsetting

Thursday, Feb. 1: Conditions not suitable for recovery attempt

Wednesday, Jan. 31: Car remains in water

Tuesday, Jan. 30: Missing male could possibly be tied to the incident

“Though we have indicators these cases are related, at this time, we are unable to confirm this missing person is associated with the car that still has to be recovered. The ROV HAS NOT been able to discern if the submerged vehicle has a license plate attached.Once the vehicle is recovered, we will need the local office of the Medical Examiner to confirm identity of any occupant(s). The ongoing recovery efforts remain focused on reuniting any occupant(s) with their loved ones and maintaining the integrity of the investigation.”

Monday, Jan. 29: Police share update and underwater video

"The car is unstable," explained Sgt. Ricardo. "The fear for us is not that it will drift but that one of the divers will get entangled in the car."

Sunday, Jan. 28: Car recovery attempted

“At this time, the exact number or identity of occupants remains unknown. The goal of this mission is to safely retrieve the vehicle, reunite all occupants with their loved ones, and maintain the integrity of all evidence.”

Saturday, Jan. 27: Car drives off pier into the water before dawn

This timeline will be updated as we learn more.

If you or someone you know is suicidal or in emotional distress, we encourage you to use the following resources.

The 988 Suicide and Crisis Lifeline

You can call or text 988 if you’re in a suicidal crisis or emotional distress. It’s a national network of local crisis centers that provide free and confidential support. They are available to help 24 hours a day, seven days a week. You can learn more at 988lifeline.org.

Findtreatment.gov

Findtreatment.gov is a confidential and anonymous resource for locating treatment facilities for mental and substance use disorders in the United States and its territories. Visit https://findtreatment.gov/locator to locate treatment options near you.

National Alliance on Mental Illness Helpline

The NAMI HelpLine is a free, nationwide peer-supported service providing information, resource referrals and support to people living with a mental health condition. You can text “HelpLine” to 62640 or call 800-950-6264. Learn more about additional resources at www.nami.org/help.

Open Path Psychotherapy Collective

The Open Path Psychotherapy Collective is a nationwide network of mental health professionals who offer virtual and in-office sessions at a steeply reduced rate to people who qualify. You can learn more at www.openpathcollective.org.

More stories from Virginia Beach

Copyright 2024 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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VIRGINIA BEACH, Va. — We now know more information about the driver who drove off the Virginia Beach Fishing Pier just over a week ago.

On Tuesday, Feb. 6, police confirmed the person who recovered from the ocean with the car that drove off the pier was a 57-year-old man from Virginia Beach.

The new information comes after a medical examiner confirmed the man's identity. Police did not release the man's name.

Police also confirmed that the man had been reported missing by his family.

Before he was identified, VBPD said they believed he might be connected to the incident, since his case had many similarities to the circumstances surrounding the car that was driven into the water.

Reports of a car going off the Virginia Beach Fishing Pier started coming in around 7 a.m. on Jan. 27.

In a viral video viewed more than 12 million times, a car can be seen driving down the pier, not stopping and falling into the water below.

Raw video shows car driving off VB fishing pier

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It was a moment that captured the attention of people around the United States and beyond and drew calls for a focus on mental health.

Then for days, people waited for word on when the car would be recovered and more information about the driver.

The body and car were retrieved the morning of Friday, Feb. 2, six days after the vehicle plunged into the Atlantic Ocean a few hundred feet from the Virginia Beach Oceanfront boardwalk. Poor weather conditions, the car's instability, and diver safety concerns delayed the recovery, police said.

Police said they don't know why the man drove off the pier, but they believe his actions were intentional.

"While we cannot presume to fully know what motivated this individual’s actions, they do appear to have been deliberate," VBPD said.

The incident has prompted mental health discussions in the community. After the incident, tributes and posters about suicide awareness lined the walkway along the pier.

If you or someone you know is suicidal or in emotional distress, we encourage you to use the following resources.

The 988 Suicide and Crisis Lifeline

You can call or text 988 if you’re in a suicidal crisis or emotional distress. It’s a national network of local crisis centers that provide free and confidential support. They are available to help 24 hours a day, seven days a week. You can learn more at 988lifeline.org.

Findtreatment.gov

Findtreatment.gov is a confidential and anonymous resource for locating treatment facilities for mental and substance use disorders in the United States and its territories. Visit https://findtreatment.gov/locator to locate treatment options near you.

National Alliance on Mental Illness Helpline

The NAMI HelpLine is a free, nationwide peer-supported service providing information, resource referrals and support to people living with a mental health condition. You can text “HelpLine” to 62640 or call 800-950-6264. Learn more about additional resources at www.nami.org/help.

Open Path Psychotherapy Collective

The Open Path Psychotherapy Collective is a nationwide network of mental health professionals who offer virtual and in-office sessions at a steeply reduced rate to people who qualify. You can learn more at www.openpathcollective.org.

Copyright 2024 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.