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Virginia Natural Gas names chief admin officer

Virginia Natural Gas has named Shannon Pierce as its vice president of strategy and chief administrative officer, the Virginia Beach-based utility announced Monday.

Pierce, a native of Surry, most recently served as vice president of growth and chief external affairs officer at SouthStar Energy Services, a subsidiary of VNG’s parent company, Southern Company Gas. She was based in Atlanta but will move to Virginia Beach in her new role.

She will report directly to VNG President Robert Duvall.

“We are truly grateful to welcome Shannon Pierce into our VNG family as our vice president of strategy and chief administrative officer. We are deeply appreciative of her vast experience and steadfast dedication to our community, which complements our mission and values,” Duvall said in a statement.

Pierce began her career as a lawyer for McGuireWoods in Richmond and joined Southern Gas in 2004. Her community engagement includes memberships in the Virginia State Bar, the Energy Bar Association and the American Association of Blacks in Energy.

She earned her undergraduate and law degrees from the University of Virginia and serves on the board of managers for the university’s alumni association.

REC promotes principal engineering manager

Rappahannock Electric Cooperative has named Lee Brock as its principal engineering manager, the Fredericksburg-based utility announced Tuesday,

In the new role, Brock will lead and coordinate engineering, design and construction for REC’s large-scale power projects and focus on response and service to new members in the large commercial and industrial space. Her team will also work closely with REC’s economic development team to ensure consistent response and processes for smooth transition from project concept to completion.

“With Ms. Brock’s transition into this new role supporting REC’s service projects, we have a winning team to support economic growth in the communities we serve, maintain member focus from initial application through project completion, and ensuring grid health and reliability,” said John Arp, REC’s chief engineering and grid operations officer.

Brock previously served as REC’s managing director for engineering and power supply. In that role, her responsibilities included leadership and oversight of the electrical system planning, engineering and technical services, ensuring the successful implementation of the cooperative’s strategic plan while carrying out REC’s mission of providing reliable electric service.

Brock has a bachelor’s degree in electrical engineering from the Stevens Institute of Technology and has 43 years of experience in the electric utility industry. Prior to coming to REC in 1995, she worked for 15 years for Atlantic City Electric Co. in New Jersey as an electrical engineer in the bulk power planning, distribution planning and technical services departments.

REC provides electric service to more than 174,000 connections in parts of 22 Virginia counties. It operates and maintains more than 18,000 miles of power lines through its service area, which ranges from the Blue Ridge Mountains to the Chesapeake Bay.

Dominion Energy promotes exec to CFO

Richmond-based Dominion Energy Inc. has promoted Steven D. Ridge to chief financial officer and senior vice president, replacing James R. Chapman, who will leave the company, the Fortune 500 utility announced Friday.

Currently vice president of investor relations, Ridge will start his new role later this month and will be responsible for corporate and financial planning, investor relations, tax, treasury, mergers and acquisitions and asset management. He joined Dominion in 2014 and was previously an executive director in the energy investment banking group at J.P. Morgan Chase & Co. in New York.

“At Dominion Energy, we have remarkable bench strength. Steven Ridge is a great example of that. After nearly a decade in energy investment banking, Steven joined Dominion Energy and has spent the past eight years in leadership roles in mergers and acquisitions, corporate strategy, financial management and investor relations,” Dominion Chair, President and CEO Robert M. Blue said in a statement. “During much of that time he worked closely with Jim Chapman and me, along with the rest of our senior leadership team. For the past year, he has been successfully leading our western gas operations that serve nearly 1.2 million customers. He has a wealth of experience in finance, is well-known to many of our investors, and is a strong, capable leader.”

Ridge earned a bachelor’s degree in economics from Brigham Young University and a master’s degree in international economics and finance from Brandeis University.

Chapman, the departing CFO, has been in his role since 2018 and before that was senior vice president of mergers and acquisitions and treasurer since 2016. He started at Dominion in 2013.

“During his tenure, Jim has adeptly overseen a rapid transition to an asset mix largely defined by state-regulated utility operations and a capital plan aimed at decarbonization in support of public policy goals and our commitment to net-zero emissions by 2050,” Blue said. “He has served the company well, and we wish him good fortune in the next chapter of his career.”

Also on Friday, Dominion announced its third-quarter earnings. Operating earnings for the three months that ended Sept. 30 were $944 million, compared to $918 million for the same period last year.

 

Hitachi Energy plans $37M expansion in Halifax County

Hitachi Energy Ltd. will invest $37 million to expand its operation in Halifax County, creating 165 jobs, Gov. Glenn Youngkin announced Wednesday.

The technology company will add 26,000 square feet to its existing facility in the county to make space for a new production line of large transformers to support the utility and renewable energy markets.

The existing facility opened in 1968 to service the distribution transformer market and in 2008, the plant added the capability to produce medium power transformers in addition to distribution transformers. The site has two buildings: the distribution transformer factory, which is 517,000 square feet and the power transformer factory, which is 90,000 square feet. The 26,000-square-foot addition will be to the power transformer factory.

The facility currently produces both distribution transformers and power transformers. Following the expansion, Hitachi will be able to produce larger power transformers that operate at higher voltages.

“These latest investments in the facility and equipment are intended to support the establishment of an additional 26,000 square feet of production space for addressing the increased demands of renewable power generation, among other fast-growing markets. The 26,000 square feet. will be added to an existing building devoted to the production of power transformers, a Hitachi spokesperson told Virginia Business.

“Hitachi Energy’s ambitious expansion in Halifax County represents a strong commitment and tremendous vote of confidence in the commonwealth of Virginia as a great place to do business,” Youngkin said in a statement. “Hitachi Energy has been an important, long-standing employer in Southern Virginia for nearly 50 years, and we are thrilled the company will create additional good-paying jobs in the community.”

The company’s North American headquarters are in Raleigh, North Carolina, and it has 4,600 employees in the region, with more than 720 in Virginia and 370 in Halifax County. The 165 new jobs will be in skilled manufacturing, but the company also has staff in a variety of other functions at the facility.

Hitachi serves customers in the utility, industry and infrastructure sectors. The company’s global headquarters is in Switzerland and it employs about 38,000 people across 90 countries.

“We are pleased to see global manufacturers like Hitachi Energy expanding their footprint in Southern Virginia,” Virginia Port Authority CEO and Executive Director Stephen A. Edwards said in a statement. “As The Port of Virginia moves forward on its goal of becoming carbon-neutral [by 2040], we look forward to providing a supply chain solution for a company that will deliver a sustainable energy future for all. When we work with like-minded businesses like Hitachi, we see opportunities to grow and learn.”

The Virginia Economic Development Partnership worked with Halifax County and the Halifax County Industrial Development Authority to secure the project for Virginia. Youngkin approved a $511,500 grant from the Commonwealth’s Opportunity Fund to assist Halifax County with the project. The Virginia Tobacco Region Revitalization Commission also approved a grant for $220,000 from the Tobacco Region Opportunity Fund for the project.

Hitachi is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone grant program, as well as state benefits from the Virginia Enterprise Zone program, administered by the Virginia Department of Housing and Community Development. Funding and services to support Hitachi Energy’s employee training activities will be provided through VEDP’s Virginia Jobs Investment Program.

Charlotte County approves Va.’s largest solar farm

The largest solar project in Charlotte County — and Virginia, according to Dominion Energy Inc. — was approved by the county’s Board of Supervisors in July.

Reston-based utility-scale solar developer SolUnesco LLC received a conditional-use permit to build the $800 million to $1.6 billion Randolph Solar project in the southern part of the county. SolUnesco plans to sell the solar farm to Dominion, which would construct and operate the facility. It is expected to generate 800 megawatts — enough energy to power 200,000 homes. Dominion hopes to break ground in 2025 and bring the project online in 2027.

SolUnesco signed agreements with more than 150 landowners who collectively own more than 1,000 parcels that make up the site of the planned solar farm. About 4,500 of the 21,000 acres will be fenced in, surrounding the solar panels and equipment, which will sit on roughly 3,000 acres.

The project was a topic of debate in Charlotte for the past year. SolUnesco submitted the application for the project in June 2021 and spent the next year working with county officials to make the project more acceptable.

SolUnesco has received approval for seven other solar projects, all of which have been sold to energy companies, including Dominion, which acquired three of the properties. Two of the seven projects SolUnesco previously sold are already operating in Henry and Greensville counties, generating 20 megawatts and 60 megawatts, respectively. The five other solar farms are in various stages of development in Albemarle, Charlotte, Gloucester, Mecklenburg and Orange counties.

Over Randolph Solar’s 35-year lifespan, Charlotte County will receive about $314 million in payments and fees associated with the project, according to County Administrator Daniel Witt. It’s a sizeable amount for a county with a typical annual budget range of $26 million to $38 million, excluding public schools funding.

Randolph Solar won’t be the first solar project in Charlotte. Twitty’s Creek Solar, a 134-acre, 15-megawatt project, has been operating since December 2020. Developed by Holocene Clean Energy, Twitty’s Creek is owned by Alchemy Renewable Energy. Another Holocene project, the 105-acre, 5-megawatt Red House Solar, became operational this summer.

Charlotte has approved three more projects: Moody Creek Solar, a 1,653-acre, 150-megawatt project from SolUnesco; Courthouse Solar, a 1,318-acre, 167-megawatt solar farm; and Tall Pines Solar, a 240-megawatt, 2,086-acre project.

Washington Gas gifts Virginia Tech $430,000 for STEM education

Washington Gas gifted Virginia Tech $430,000 to help increase pathways into higher education in STEM disciplines, the university announced Monday.

“Washington Gas is honored to partner with Virginia Tech and promote STEM education across the commonwealth of Virginia. Together, our program will help shape future generations of students and workers exploring energy in school studies or as an occupation,” Washington Gas President Blue Jenkins said in a statement.

The two entities will provide professional learning programs for career and technical education and other science, technology, engineering and math teachers and administrators. The programs will help them develop and implement 10 energy-focused high school courses in their school divisions. Eight of the new courses were designed by representatives from the energy industry, community colleges, nonprofits, James Madison University and Virginia Tech under the Virginia Department of Education’s leadership.

Students can participate in any two or more of the courses to prepare for college engineering programs while achieving industry certifications.

Tech’s Center for the Enhancement of Engineering Diversity and its School of Education will support the STEM outreach program. The program builds on Tech’s Qualcomm Thinkabit Lab in Northern Virginia, which has hosted more than 20,000 students and teachers since 2016.

“The Washington Gas leaders have already helped to expand our programs and outreach. We know the outcomes and impacts over the next three years will only grow,” said Jim Egenrieder, founding director of the Virginia Tech Thinkabit Lab and the leader of the College of Engineering’s STEM education outreach in the D.C. area, in a statement. “

Tech has also begun developing energy-related tech modules for elementary and middle school and developed new STEM initiatives and youth leadership programs supporting Alexandria, Arlington, Falls Church and Fairfax County schools.

Dominion Energy to sell W.Va. utility for $690M

Dominion Energy Inc. announced Friday it had signed a definitive agreement to sell its West Virginia natural gas utility to Washington, D.C.-based financial services company Ullico Inc.’s infrastructure business for $690 million.

The sale of Hope Gas Inc., also known as Dominion Energy West Virginia (DEWV), is expected to close later this year.

“For nearly 125 years, Dominion Energy West Virginia has provided reliable and affordable natural gas safely to the people and businesses of the Mountain State,” Dominion Energy Chair, President and CEO Robert M. Blue said in a statement. “DEWV is a valuable business with tremendous employees. The business and its people will fit extremely well with Ullico’s commitment to safety and their mission to serve American workers and customers.”

Clarksburg, West Virginia-based DEWV has about 300 people and serves 111,000 West Virginia customers. The utility has 3,200 miles of gas distribution pipelines and more than 2,000 miles of gathering pipelines.

Ullico Inc.’s infrastructure business plans to integrate the utility with Hearthstone Utilities Inc., its portfolio company that owns and operates gas utilities in Indiana, Maine, Montana, North Carolina and Ohio. Hearthstone will move its headquarters to West Virginia.

“We are excited about the opportunity to continue to build on and invest in this important and valuable West Virginia company,” Hearthstone President and CEO Morgan O’Brien said in a statement. “Our vision is to grow the business and expand the footprint within the state, including to underserved communities.”

Dominion Energy will continue to own and operate Mount Storm Power Station in Mount Storm, West Virginia.

Dominion plans energy storage facility for Chesterfield

One of the state’s largest energy storage facilities is on track to open in Chesterfield County this year, as Dominion Energy Inc. works to achieve state-mandated clean energy goals.

The Dry Bridge Energy Storage project will feature row after row of installations that resemble shipping containers, each housing batteries that collectively have the capacity to store 20 megawatts of energy.

It’s part of Dominion’s effort to meet the state’s requirement that the utility generate all its electricity for use in the commonwealth from clean energy sources by 2045.

The Virginia State Corporation Commission is reviewing Dominion’s application for a certificate of public convenience and necessity, while the utility hopes to complete permitting requirements with Chesterfield County officials early this year, according to Dominion spokesman Jeremy L. Slayton.

As the energy giant transitions away from fossil fuels and toward greater reliance on solar and offshore wind energy production, storing excess energy will be a necessity. “Storage is key because the wind isn’t always blowing [and] the sun isn’t always shining,” Slayton says.

While Dry Bridge will be its biggest energy storage facility so far, the 20 megawatts will barely put a dent in the state-mandated 2,700 megawatts of storage Dominion must achieve by 2035. In addition to Dry
Bridge, a planned Loudoun County facility will offer 50 megawatts of storage, and various smaller pilot projects will total 16 megawatts.

That leaves 2,614 megawatts of battery storage to go. Meeting that goal would require a massive increase in storage technology, leaving many to wonder if lawmakers set an unattainable goal.

During a September 2021 gubernatorial debate, Gov.-elect Glenn Youngkin said he wouldn’t have signed the 2020 Virginia Clean Economy Act, adding that energy executives didn’t think it was feasible.

Mike Doyle, a senior equity analyst at Edward Jones specializing in utilities, says utility-scale battery storage is relatively new technology. Advocates for expanding the state’s capacity are banking on the batteries becoming more efficient during the next decade. And, he says, “that’s typically what we see with technology, whether personal computers or things on the utility side.”

Still, Doyle says, Dominion must balance expanding battery storage capacity with the cost passed on to customers.

“If the costs don’t come down or technology doesn’t improve as much and it starts impacting customers’ rates more than it is comfortable for regulators in Virginia, you could see it slowed down,” Doyle says.

Dominion reports increases in diverse hiring over past 5 years

Dominion Energy Inc. released its first public diversity, equity and inclusion report on Friday, reporting increases in gender and racial diversity among employees hired between 2016 and 2020.

With a goal of reaching 40% in diverse workforce representation — meaning hires of women and non-white people — by 2026, the Richmond-based utility giant, which employs 17,000, aims to increase the percentage by 1% each year. Currently, 34.6% of its workforce is diverse, with a 2.7% increase from 2016 to 2020, according to the report.

Between 2016 and 2020, Dominion’s hiring of diverse employees increased by 13.4%, from 36.1% to 49.6%. During the same period, the company recorded increases in the following demographics:

  • 10.4% for women
  • 3.4% for Black employees
  • 2.8% for Hispanic employees
  • 1.4% for other, non-white races
  • 0.1% for Asian employees

According to the report, Dominion increased diversity at the leadership and executive levels, noting that 71% of Chair, President and CEO Robert “Bob” Blue’s direct reports are diverse. In 2020, amid widespread social justice protests sparked by the police killing of George Floyd in Minneapolis, Dominion pledged a six-year, $25 million commitment to support 11 Historically Black Colleges and Universities (HBCUs) in states served by the utility. They include Hampton University, Norfolk State University, Virginia State University and Virginia Union University in Virginia. Dominion also created a $10 million scholarship fund for Black students and other underrepresented minorities in its service area. The Hampton Roads area was one of three regions that will receive $5 million in a two-year social justice grants initiative; Dominion contributed $2 million toward the fund.

In addition to hiring, Dominion pledged that the utility’s non-diverse prime contractors award at least 20% of all subcontracts to diverse suppliers; over the past five years, the company has averaged 10.4% growth per year in spending with diverse vendors, the report says. Also, Dominion started eight employee resource groups (ERGs) for Black, Asian and Latinx employees, as well as groups for women, LGBTQ+ employees, veterans, disabled workers and young professionals, focusing on building community and recruiting, among other goals.

“We’ve come a long way on diversity, equity and inclusion,” Blue said in a statement. “And we have more work to do. Our vision is to become the most sustainable energy company in the country, and we are in this for the long haul.”

Dominion offshore wind farm cost climbs to $9.8B

Dominion Energy Inc.’s offshore wind farm will cost about $2 billion more than expected, the Richmond-based Fortune 500 utility’s chair, president and CEO, Bob Blue, said during a third quarter earnings call Friday.

Instead of the previously estimated $7.8 billion, the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) commercial project will cost approximately $9.8 billion, Blue said, attributing the roughly 25% cost increase to rising commodities expenses and general cost pressures across a number of industries right now amid mounting inflation. Additionally, Blue cited costs associated with the need to build about 17 miles of new transmission lines and other onshore infrastructure associated with the project.

Dominion plans to build the 180 wind-turbine farm 27 miles off the coast of Virginia Beach, with construction beginning in 2024. When completed in 2026, the wind farm is expected to power 660,000 homes. The wind farm will cost residential customers about $4 per month over the estimated 30-year lifespan of the wind farm, a Dominion spokesperson said.

Dominion submitted its application for the wind farm project to the Virginia State Corporation Commission Friday. As part of the filing, Dominion is also requesting SCC approval to build the 17 miles of new transmission lines and other onshore infrastructure needed to deliver the energy generated by the wind turbines to homes and businesses across Virginia. The route chosen was the shortest of the potential routes and would impact private property the least, the utility maintains, with 92% of the route within the former Southeastern Parkway and Greenbelt corridor, owned primarily by the city of Virginia Beach and/or co-located with existing Dominion Energy transmission line corridors.

Blue also outlined agreements in the competitive bidding process. Five major agreements represent about $6.9 billion, he said, and the remaining project costs are $1.4 billion for onshore transmission facilities and projected system upgrades and another $1.5 billion for other project costs including contingency onshore transmission facilities necessary to interconnect offshore generation components reliably and to maintain the structural integrity and reliability of the transmission system in compliance with mandatory North American Electric Reliability Cooperation (NERC) standards.

“We believe decisions we’re making around onshore engineering configurations will result in the best value for customers,” he said.

Last month, Dominion announced that Siemens Gamesa Renewable Energy S.A., a Spanish wind turbine company, will invest $200 million to build the first U.S. offshore wind turbine blade manufacturing facility at the Port of Virginia’s Portsmouth Marine Terminal. Siemens Gamesa will make 176 14.7-megawatt turbines to be installed in the 112,800-acre commercial lease area.

Dominion also announced other contractors on the project Friday.

“We are moving the CVOW project forward by working with industry leaders as we bring utility scale offshore wind generation to our Virginia customers,” Joshua Bennett, Dominion Energy vice president of offshore wind said in a statement. “These contracts will allow us to manage costs for the benefit of our customers and take advantage of the developing domestic supply chain to deliver on our promise to bring clean-energy jobs to Hampton Roads.”

Germany-based EEW SPC will produce steel pipe and corresponding pipe components to manufacture 176 steel monopile foundations, the largest of which will be 268 feet long and weigh 1,175 tons. EEW SPC will process more than 200,000 tons of steel and production is scheduled to begin in 2023.

Denmark-based Bladt Industries will manufacture 176 transition pieces, which weigh as much as 800 tons and bind the monopile foundation and turbine together while providing physical access to the turbines.

Bladt and Denmark-based Semco Maritime will manufacture components for the three offshore substations, which are multi-story units weighing 4,000 tons each, a topside platform with helicopter landing pad 157 feet above the water and support structures installed in the sea floor.

Belgium and Boston-based DEME Offshore U.S. LLC and Italy-based Prysmian Group, as a consortium, will provide balance of plant services, including the transportation and installation of the foundation and substation components, and install the subsea cables. DEME Offshore U.S. LLC said in a news release that the contract value is up to $1.9 billion.

Prysmian Group will also provide all of the subsea inter-array and export cables that will deliver energy to shore. The cables will be produced in Arco Felice, Italy, and Pikkala, Finland, while the inter-array cables will be manufactured in Nordenham, Germany, Prysmian said in a news release.

The monopile foundations, transition pieces and turbine components will be staged on 72 acres Dominion will lease at Portsmouth Marine Terminal, as part of a 10-year-agreement with the Virginia Port Authority. The lease is valued at $4.4 million annually and has an option for two five-year renewals.

The CVOW wind farm will help Virginia reach its target, mandated by the Virginia Clean Economy Act, of having 100% carbon-free energy production by 2045, and Dominion Energy’s goal of net zero carbon and methane emissions by 2050. President Joe Biden’s administration has set a 2030 target to have installed 30,000 megawatts of U.S. offshore wind power capacity.

The offshore wind project is expected to create 900 jobs and generate $5 million per year in local and state tax revenue and $143 million in economic benefits annually during construction, according to Dominion. During operation, it will create 1,100 jobs, generating $11 million per year in local and state tax revenue and almost $210 million in ancillary economic benefits annually.

In July, the federal Bureau of Ocean Energy Management began its two-year permitting and environmental review of the project.

Dominion announced third-quarter earnings of $654 million and 79 cents per share, compared with a net income of $356 million and 41 cents per share for the same period in 2020. Operating earnings for the three months ending Sept. 30 were $918 million, compared with $916 million for the same period in 2020.