Latest news with #CoastalVirginiaOffshoreWind
Yahoo
3 hours ago
- Business
- Yahoo
Here's what proposed clean energy tax cuts could mean for Virginia
Environmental groups in Virginia are worried some clean energy projects may be at risk of losing important tax credits if federal energy credits remain on the chopping block as part of President Donald Trump's massive tax cut bill. The bill is 'a disaster for Hampton Roads' and could be a 'serious blow' to jobs and economic development, said Blair St. Ledger-Olson, director of advocacy and campaigns for the Virginia League of Conservation Voters. 'Rolling these tax credits back harms the region's opportunity to be an anchor in the offshore wind supply chain, revitalize our port infrastructure and be a national leader in the clean energy transition, not to mention threatening the environmental progress we've fought so hard to achieve,' St. Ledger-Olson said. The House passed the One Big Beautiful Bill Act last month, and the Senate is now poised to take up the proposal and make its own suggestions. The House version repeals or gives earlier deadlines to clean energy tax credits passed in the 2022 Inflation Reduction Act during former President Joe Biden's term. Biden's climate law has been considered important for the clean energy transition, but the House bill effectively ends much of the law's incentives for renewable energy such as wind and solar power. Dominion Energy's Coastal Virginia Offshore Wind project, under construction off the coast of Virginia Beach, is a 2.6-gigawatt wind farm eligible for some of the IRA's tax credits like the Production Tax Credit or Investment Tax Credit. The IRA provides a 30% tax credit for offshore wind projects that began construction before 2026. The cost of the project has already risen from $9.8 billion to $10.7 billion and tariffs could add another $500 million to the cost. If the tax credits are restored, spokesperson Jeremy Slayton said they will 'substantially lower costs' for customers. The project did not receive any grant funding through the IRA, Slayton said. For solar projects, it's currently unclear which specific projects could be at risk. Robin Dutta, executive director of the Chesapeake Solar and Storage Association, said the only solar and storage projects that could be eligible for the Investment Tax Credit are projects that have already begun construction, or projects that begin construction within 60 days of the bill being signed into law. In addition to those parameters, projects must be completed by 2028. It also prevents residential solar projects financed through leases, which Dutta said are popular in Virginia, from getting the Investment Tax Credit at all. 'In general, any project that is awaiting zoning approval at a county is at risk. Larger projects that are waiting for their utility interconnection studies and grid upgrades to be completed are at risk of not completing construction by this deadline. No residential projects would qualify for a tax credit after 2025, if the current language becomes law. So, overall, the risk is to projects in the early stages of development.' Dutta said jobs at risk right now are business development and sales jobs, but once the existing pipeline of projects is built, the installers wouldn't have as many systems to build as they currently do. One project that business executives say will not be affected by the tax credits reductions is the undersea cable manufacturing facility being built in Chesapeake by LS Greenlink USA. The company touts more than $99 million in federal tax credits to help reduce costs. But Patrick Shim, managing director for LS Cable and System, told The Virginian-Pilot that the credits are safe from cuts under the new federal bill. LS Greenlink USA received 48C credits, which are not at risk. The 48C credits, known as the Qualifying Advanced Energy Project Credit, were created in 2009 and expanded under the Inflation Reduction Act. The US Department of Energy reports that 48C is 'a tax credit for investments in advanced energy projects … and is intended to build clean energy supply chains, drive investments and lower costs in energy communities.' The Port of Virginia was awarded $380 million through the IRA to move from fossil fuels to electric equipment, with a goal of eliminating all emissions by 2040. The money is a grant rather than tax credits. The Port did not respond to a request for comment about whether it received any tax credits through IRA. Scientists say a record amount of seaweed hit the Caribbean and nearby areas in May Schwarzenegger tells environmentalists dismayed by Trump to 'stop whining' and get to work Jockey's Ridge State Park: A half-century on the Outer Banks sand Wildfires burning across central Canada force more people to evacuate Volunteers needed for Clean the Bay Day in Suffolk Democrats have sounded the alarm over the massive tax cut and immigration bill, which also drastically cuts funding for Medicaid and other social services programs. But some Republicans have also pushed back on some spending cuts included in the House proposal, including the energy tax credit cuts. Rep. Jen Kiggans, Virginia Beach Republican, voted to approve the budget bill but noted the legislation 'isn't perfect.' Specifically, she pointed to the abrupt end to tax credits and financial support of renewable energy projects as an issue. She said she hopes further changes are made to protect these funding opportunities while the bill is in the Senate. 'These changes jeopardize local jobs, limit community access to affordable energy, and undercut innovation — especially in regions like ours, where energy resilience and national defense go hand in hand,' she said in a statement. Senate Republicans Lisa Murkowski of Alaska, John Curtis of Utah, Thom Tillis of North Carolina and Jerry Moran of Kansas wrote to Senate leadership urging a reconsideration of cuts of tax credits. 'A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy,' the senators wrote in an April 10 letter. Virginia's Democratic Sens. Mark Warner and Tim Kaine said in a joint statement the House bill would jeopardize investment and raise energy costs for Virginians. 'Rolling back these investments would not only endanger these jobs but also hinder our progress toward a more sustainable and affordable energy future,' the statement reads. 'We must protect the investments that are creating jobs and lowering costs for Virginians. The Republican plan puts our economic future at risk.'
E&E News
20-05-2025
- Business
- E&E News
Virginia Republican bucks her party, Trump on offshore wind
VIRGINIA BEACH, Virginia — A House Republican from a swing district here has been one of the most vocal in her party to support the imperiled offshore wind industry and green energy tax credits — while many in the GOP are seeking to hobble both. Rep. Jen Kiggans, whose seat is a top target for Democrats, has long championed the 176-turbine Dominion Energy-operated offshore wind project, dubbed Coastal Virginia Offshore Wind. It is more than halfway complete and on track to power 660,000 homes. The company says it stands to reap hundreds of millions of dollars in tax credits in the coming years. 'I'm protective of what I have going on here,' Kiggans said at an April event that brought together a host of officials and energy industry executives. Advertisement 'I am who I am as the representative of a district who has an offshore wind project, that has some solar panel projects that is in a Commonwealth where we believe in 'all of the above.'' Kiggans has raised her profile in recent weeks as the leader of a group of Republicans fighting to protect some renewable energy tax credits from the Democrats' 2022 climate law from elimination in the GOP's budget reconciliation package. The group suggested 'three thoughtful changes,' though did not seek to reverse a phase-out of wind credits. And while she has stopped short of saying she'd tank the wider tax cut, energy and security spending package, Kiggans has talked directly to House Speaker Mike Johnson (R-La.) about her concerns. Last week, however, she seemed to acknowledge that the best hope for saving many of the Inflation Reduction Act's tax credits likely rests with the Senate. And even deeper cuts might be in the offing after hard-liners said recently they had reached a rough understanding with Johnson. Kiggans, a 53-year-old former Navy helicopter pilot and nurse, has won praise from the right-leaning group Citizens for Responsible Energy Solutions (CRES), whose president has called her a 'strong advocate.' Most other Republican support for wind has wound down. Indeed, many in her party have blasted offshore wind, citing a newfound concern for whales and other maritime species. A leader of the congressional offshore wind caucus even denounced the industry during his failed reelection campaign. More recently, Trump ordered permits to be reviewed for projects and placed a stop-work order on a New York wind project that is 30 percent complete. And Dominion said that tariffs the administration slapped on steel has raised the cost of the project by $4 million. Kiggans, who remains a member of the wind caucus, has not wavered. Two days after Trump — on his first day in office — issued an executive order targeting offshore wind approvals, Kiggans testified at the House Ways and Means Committee in support of the industry and clean energy tax credits. She cited economic growth, jobs and the fact that the wind project would benefit the Navy, which has a base in Norfolk, just outside her district. 'Speak that love language' Last month, Kiggans joined a panel of wind, solar and gas industry executives and state regulators at Tidewater Community College in Virginia Beach for an event hosted by CRES, which has pressed Republicans to support renewable energy. 'Here in Virginia, it's been easy for me to be an advocate for things like clean energy tax credits,' she said. 'Because we have a governor who believes in an all-of-the-above energy approach and has really set a great stage for us,' The second-term lawmaker exudes a no-nonsense attitude. She connects her support for clean energy to her ardent backing of the military, which has a major presence in Virginia's second district. Kiggans often notes that Dominion Energy entered a public-private partnership with the Naval Air Station Oceana, one of two master jet bases in the country. 'I want the energy and an all-of-the-above approach because my defense industry needs it,' she said on stage at the event. 'I think as a country, this is a priority. The world is not safe. We were given a world — that we inherited from the last administration — that in my opinion made the world less safe and we looked weak on the world stage.' Wind turbines off the coast of Virginia associated with the Coastal Virginia Offshore Wind project. | Francis Chung/POLITICO As Kiggans sees it, the 'onus' is on her to speak to those in her party in favor of clean energy. 'I think we know best how to speak that love language to the people who are leading the country right now,' she said. 'So it's important we use our voices.' But her voice is up against Trump, whose administration last month issued a stop-work order on the Empire Wind project off the coast of Long Island. The Norwegian energy company Equinor had said in recent days the project could soon be canceled. The administration reversed course Monday, lifting the order, but concerns persist. Dominion executives don't seem worried. On a recent shareholder earnings call, company CEO Robert Blue said the project was 55 percent complete. He said the first delivery of electricity to customers was on track for early 2026. Of the 176 turbine foundations, 80 percent have been completed. On that call, Chief Financial Officer Steven Ridge said the IRA subsidies will save the company roughly $175 million companywide each year through 2029. But even if the IRA tax credits for wind energy are indeed phased out, Dominion says its massive project will be completed. 'Power demand is growing at historic levels, and no single power source can reliably serve it,' a spokesperson said in an email. 'We need more power generation from every source, including renewables, natural gas and nuclear.' Pushing GOP leaders, Trump Kiggans speaking with reporters in 2023 at the Capitol. | Alex Brandon/AP Kiggans and her colleagues are still hoping to sway Johnson and House leaders, though time is running out. Last week, she and others approached him on the House floor to request a meeting about the IRA. 'It's always nice when we get together and remind Speaker Johnson of how great it is that we're in the majority and who it is that gives him the majority and gives him his job,' she said of the floor discussion. 'It's people like myself in really tough purple districts who have a variety of interests.' Still, Kiggans suggested the fight might be all but over in the House. 'I think our leadership provides some backbone to what the Senate will want to do,' she said of the IRA defenders. 'I think the Senate has a little more of an appetite.' As for the Trump administration, Kiggans says she's made connections with White House officials for other matters and intends to rely on those relationships. 'We can pick up the phone and say, 'Please consider this is important to my district,'' she said. Kiggans has not done that for clean energy projects yet, but she said that 'it's nice to know those communications channels are there for us to use.' Asked if she feared a primary challenger for defending renewable energy, Kiggans waved off the question. 'People can run for office as they want,' she said. 'I wake up every day just trying to do the best job I can for the district with my backgrounds in military, and defense, and health care and being a mom of four.' She continued to suggest if Republicans don't step up, we'll end up with more 'Green New Deals.' 'Republicans would be smart if we were able to lead on this issue because otherwise the other side will come in and lead,' she said. 'And we're not going to like the direction they are going to take it.' Reporters Nico Portuondo and Benjamin Storrow contributed.
Yahoo
12-05-2025
- Business
- Yahoo
3 High-Yield Utility Stocks to Buy to Create Years of Passive Income
Black Hills is small and boring, but it has a monster 55 year long dividend streak and a 4.4% yield. Dominion offers a high dividend yield today and growth potential in the future. Duke Energy operates in regions with strong growth potential. 10 stocks we like better than Dominion Energy › The utility sector has been a sleepy industry over the years. These companies generate very stable earnings backed by government-regulated rate structures. Because governments set rates, utilities don't grow that fast. However, these companies tend to generate lots of stable income, which gives them money to pay lucrative dividends. Black Hills (NYSE: BKH), Dominion (NYSE: D), and Duke Energy (NYSE: DUK) currently stand out to a few contributors for their high-yielding payouts. Here's why they believe these utility stocks could help you generate years of passive income. Reuben Gregg Brewer (Black Hills): Getting into the elite ranks of Dividend Kings is an impressive feat. It requires a strong business model that gets executed in good times and bad. Black Hills is one of the few utilities that has achieved Dividend King status despite being an industry small fry with a market cap of only around $4.5 billion. But that's not all that sets it apart from the pack today. Black Hills' dividend yield is roughly 4.4%. That is far above the 1.3% or so yield on offer from the S&P 500 Index (SNPINDEX: ^GSPC) and the 2.9% of the average utility. So not only is Black Hills a Dividend King but it also has a relatively attractive yield. What's the catch? There's really no catch. Black Hills is just small and underfollowed. In fact, the utility's customer base has been growing at nearly three times the rate of the U.S. population. That's pretty attractive and suggests that Black Hills should continue to have its investment plans and rates approved by regulators. That, in turn, should allow this Dividend King to live up to its long-term goal of 4% to 6% earnings growth, with dividends likely to grow at a similar rate. To be fair, Black Hills isn't going to be an exciting stock to own. But it is the kind of high yield utility you buy if you want to create years of reliable passive income. Matt DiLallo (Dominion): Dominion Energy provides electricity to millions of customers across Virginia and the Carolinas. Demand for power in those places is surging, driven by economic growth, increased electrification, and data center expansion. Virginia, in particular, is a hotbed of data center developments. The utility is investing heavily to meet the growing demand for power. Dominion expects to invest a staggering $50 billion by 2029 on projects to grow its lower-carbon energy generation capacity and the resiliency of its options. For example, the company and its joint venture partner are spending over $10 billion to build the Coastal Virginia Offshore Wind project, which will help supply renewable energy to meet growing demand in Virginia. Dominion's investments should grow the company's earnings per share at a 5% to 7% annual rate over the next several years. That ever-increasing earnings stream will enable the company to maintain its current dividend level during its heavy investment phase. At a 4.9% yield, the utility can generate a lot of income for investors in the years to come. Meanwhile, as its earnings grow and its dividend payout ratio declines, Dominion can eventually start increasing its dividend. Given the increasing power needs of data centers, the company should have plenty of growth beyond 2029. It should also be able to pay a stable and eventually growing dividend for years to come, making it a top utility to buy if you want to generate a lot of passive income. Neha Chamaria (Duke Energy): Duke Energy recently reiterated its long-term earnings growth targets through 2029, which should also mean bigger dividends for shareholders for years to come. Duke Energy has paid a dividend every year for 99 consecutive years and increased it every year for over a decade now. Duke Energy stock's 3.5% yield may not be among the highest in the utility sector, but its consistent dividend growth has contributed handsomely to shareholder returns over time. In five years, Duke Energy has generated 80% in total returns (with dividends reinvested) and has more than doubled investors' money in the past decade. Also, its dividend yield is twice that of the S&P 500. Duke Energy expects to grow its adjusted earnings per share (EPS) by 5% to 7% through 2029 off its 2025 guidance midpoint and remains committed to growing its dividend while maintaining a target payout ratio of 60% to 70%. I strongly believe the company can meet its goals, given its wide footprint in growing jurisdictions and growth moves. For perspective, Duke Energy is among the largest regulated utilities in the U.S., providing electricity to 8.2 million customers and gas to 1.6 million people. It primarily serves the Southeast and Midwest regions. While some of the states like Florida and the Carolinas are witnessing high population migration, the Midwest is witnessing a boom in data centers. Both factors should work in Duke Energy's favor. Meanwhile, Duke Energy plans to invest $83 billion between 2025 and 2029 to modernize and expand its infrastructure, which should support rate increases. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Matt DiLallo has no position in any of the stocks mentioned. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Black Hills and Dominion Energy. The Motley Fool recommends Dominion Energy and Duke Energy. The Motley Fool has a disclosure policy. 3 High-Yield Utility Stocks to Buy to Create Years of Passive Income was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Journals
07-05-2025
- Business
- Business Journals
Dominion CEO: Trump tariffs could add $500M to cost of gigantic Va. offshore wind farm
Richmond-based Dominion Energy Inc. says the cost of its massive Coastal Virginia Offshore Wind project could balloon by as much as $500 million if the Trump administration's tariffs remain in place through the project's targeted late-2026 completion date. So far, the project — which is being billed as the country's largest offshore wind farm — has incurred $4 million in tariff-related expenses, Dominion CEO Bob Blue said last week on the company's first-quarter earnings call.
Yahoo
06-05-2025
- Business
- Yahoo
Tariffs could add $500M to cost of Virginia Beach offshore wind farm, Dominion tells investors
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways The offshore wind staging area at the Portsmouth Marine Terminal. (Photo courtesy Port of Virginia) By Katherine Hafner/WHRO Dominion Energy expects to pay more to complete the Coastal Virginia Offshore Wind project because of the Trump administration's new taxes on imported goods including monopile foundations and turbine towers. The $10.8 billion offshore wind farm about 30 miles off the Virginia Beach coast will be the nation's largest, consisting of 176 turbines that generate about 2.6 gigawatts of electricity, or enough to power up to 660,000 homes. Dominion CEO Bob Blue told investors last week that if current tariffs continue through construction of the project late next year, the utility would expect about $500 million in added costs. 'Of course, changes to future tariff policy could affect these estimates,' he said. 'It's difficult to fully assess the impact tariffs may have to the project's final cost, as actual costs incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component.' So far, import taxes have increased project costs by about $4 million, Blue said. That's on top of other rising costs Dominion announced earlier this year . The utility said in February that the initial price tag of the project, $9.8 billion, jumped by nearly 10% because of higher costs from building onshore electrical interconnection and network upgrades mandated by the regional electric grid operator. Under a settlement approved by state regulators a few years ago, Dominion is only allowed to surcharge customers for about half of the additional costs. As a result, the utility said the average household in Virginia can expect to pay about 43 more cents per month over the life of the wind farm. To account for an expected $120 million in added tariff costs through the end of the next quarter, Dominion now plans to add another 4 cents to monthly energy bills. 'Let me be clear: CVOW remains one of the most affordable sources of energy for our customers,' Blue said Thursday. He said the company does not anticipate problems with actually receiving materials needed for the wind farm including turbines from Siemens Gamesa, a Spanish-German subsidiary of Siemens Energy that is the world's largest maker of offshore wind turbines. It's just added costs while doing so. Dominion is about halfway through constructing the project and plans to finish on time late next year. It's expected to start generating electricity by early next year. The Virginia offshore wind project is one of only a handful that are fully permitted and under construction along the East Coast, as the Trump administration ramps up efforts to halt the industry . Dominion is also fending off a lawsuit from a coalition of conservative groups that argue federal officials failed to adequately consider the wind farm's potential impacts on endangered whales . The company says its permitting process was rigorous and that several measures are in place to protect whales, including trained observers who watch for marine mammals and 'bubble curtains' to dampen the sound of underwater construction. It's unclear whether the federal government under Trump will continue to defend the Virginia Beach project in court. The government's lawyers are expected to file their latest response to the lawsuit later this summer. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
