Dominion Resources Offshore Wind 2013
|Company||Dominion Resources, Inc.|
|Subject(s)||Climate Change; Renewables|
|Resolved Clause Summary||Offshore-wind development report|
Virginia Electric and Power Company (Virginia Power), the regulated electric utility wholly owned by Dominion Resources, Inc. (Dominion), has no plan to deploy wind turbines off the coasts of Virginia or North Carolina in the next 15 years (as is evidenced by Virginia Power’s integrated resource plans (IRPs) in those two states) ; and
The U.S. National Renewable Energy Laboratory (NREL) has identified approximately 94 gigawatts (GW) of offshore-wind electricity-generation potential within 50 nautical miles of Virginia’s Atlantic coast and 297.5 GW within 50 nautical miles of North Carolina’s coast; and
Virginia Power (using the business name Dominion Virginia Power) in 2012 advised the federal Bureau of Ocean Energy Management (BOEM) that Virginia Power will bid on leases for wind development off the Virginia coast. A Dominion executive stated in June 2012 that a successful Virginia Power bid will require spending tens of millions of dollars to conduct site surveys, environmental analyses, and other work that a BOEM lease would entail, all within the five-year time frame required under the lease terms.
Virginia Power, in its November 1, 2012 report on renewable energy to the Virginia State Corporation Commission said that “Virginia has a unique offshore wind opportunity” and that “[o]ffshore wind has the potential to provide the largest, scalable renewal resource for Virginia with near-term resource availability of approximately 2000 megawatts.” Virginia Power also acknowledged in that November 2012 report that “there is increasing political momentum in Virginia and throughout the Mid-Atlantic” region for offshore wind development, “driven by its potential for significant economic development and job creation and renewable attributes.”
The public (including the investing public and Virginia Power ratepayers) is increasingly concerned about the devastation caused by climate change. Investors are aware of the connection between climate change and corporate financial performance. Goldman Sachs reported in May, 2009, that “while many companies acknowledge the challenges climate change presents… there are significant differences in the extent to which companies are taking action. Differences in the effectiveness of response across industries create opportunities to lose or establish competitive advantage, which we believe will prove increasingly important to investment performance.”
A leading cause of climate change is man-made carbon emissions from burning fossil fuels. Virginia Power is the largest industrial source of carbon emissions in Virginia, and Dominion and Virginia Power are also responsible for significant carbon emissions in North Carolina and a number of other states.
Shareholders request that Dominion’s board of directors prepare and make available to shareholders by December 31, 2013 a report, prepared at reasonable cost and omitting proprietary information, addressing Dominion’s and Virginia Power’s plans for deploying wind turbines for utility-scale power generation off the Virginia and North Carolina coasts during the years 2014 through 2029. The report should also address Dominion’s and Virginia Power’s plans to buy power from other successful bidders for Virginia and North Carolina offshore-wind development leases.