Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) project has weathered most of the issues facing offshore wind, but the company said during its first-quarter earnings call May 1 that the project faces risks from President Donald Trump’s tariffs.

The project is 55% complete and months away from the first delivery of energy to customers in 2026, and is on track for 100% completion that year, Dominion CEO Robert Blue said.

“It represents the fastest and most economical way to deliver almost 3 GW of electricity to Virginia’s grid to support America’s AI and cyber preeminence and the largest data center market in the world; to support U.S. shipbuilding at customers like Huntington Ingalls — the largest military ship building company in the United States and one of our largest customers — and support some of the country’s largest and most important military and defense installations,” Blue said.

The project’s components are being or already have been assembled, and Dominion has taken delivery on many already, with its Jones Act-compliant vessel, the Charybdis, nearly complete and heading to the construction site off the southern coast of Virginia in the next two months to support turbine installation this summer.

“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,” Blue said.

So far, components already have cost an extra $4 million, of which Dominion is responsible for $1 million. But that could grow to as much as $510 million, with the firm responsible for $128 million. It already has filed updated costs with Virginia’s State Corporation Commission that show a $123 million impact from tariffs and Dominion responsible for $31 million, with a final project cost estimate of $10.8 billion.

“The updated project cost of $10.8 billion is expected to increase residential customer bills by an average of 4 cents a month over the life of the project,” Blue said.

Generally, the impact of tariffs on Dominion’s business seems manageable, with Blue saying it already had updated its supply-chain practices after the COVID-19 pandemic.

“We think about increasing inventory and ordering thresholds to address longer lead times, ensure that we have multiple sources of supply where it’s appropriate,” Blue said. “We have been placing some orders ahead of tariff effective dates to mitigate cost increases where it’s possible.”

The other big issue facing Dominion is continued growth in Data Center Alley in northern Virginia, the largest data center market in the world. Blue reported no slowdown of interest in adding new facilities to that market.

Dominion recently asked for a rate increase from the SCC, which also included a proposed new customer class for large loads like data centers that requires them to agree to pay for at least 14 years of power consumption, even if they use less. (See Citing Inflation and Load Growth, Dominion asks Virginia for Higher Rates.)

The new rate class applies to customers who use at least 25 MW, and it would apply to 139 separate consumers, of which 131 are data centers, Blue said. The changes are meant to ensure they pay their fair share and that other customers face fewer risks around stranded assets.

“We’ve talked with the data center customers,” Blue said. “We talked with them in preparing this proposed new tariff. I’m sure there will be further conversations during the case, but I think I can say confidently they understand what we’re looking to accomplish here, and the conversations have been very constructive.”