Atlantic Coast Pipeline cost estimates surge to $7 billion

    The Virginia and North Carolina portions of the Atlantic Coast Pipeline route. Image via the Federal Energy Regulatory Commission.

    Steve Haner at Bacon’s Rebellion has a good breakdown of a recent Dominion Energy earnings call in which CEO Tom Farrell said the company’s Atlantic Coast Pipeline’s cost estimates had ballooned to $6.5 to $7 billion.

    Per the transcript, Farrell blamed a Federal Energy Regulatory Commission stop-work order and delays in obtaining permits for the contentious project. Farrell told investors he still expects the pipeline to begin service in late 2019 for “key segments” while the rest of the pipeline will be operational the following year.

    “The returns are going to be very adequate,” Farrell said.

    The news comes as activists spotted Farrell leaving the governor’s office Monday and amid the fallout from Gov. Ralph Northam’s decision to yank two members of the State Air Pollution Control Board who had asked tough questions about a proposed permit for a Buckingham County compressor station that is part of the Atlantic Coast Pipeline.

     

     

     

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    Robert Zullo
    Robert has been winning and losing awards as a reporter and editor for 13 years at weekly and daily newspapers, beginning at Worrall Community Newspapers in Union, N.J., where he was a staff writer and managing editor. He spent five years in south Louisiana covering hurricanes, oil spills and Good Friday crawfish boils as a reporter and city editor for the The Courier and the Daily Comet newspapers in Houma and Thibodaux. He covered Richmond city hall for the Richmond Times-Dispatch from 2012 to 2013 and worked as a general assignment and city hall reporter for the Pittsburgh Post-Gazette from 2013 to 2016. He returned to Richmond in 2016 to cover energy, environment and transportation for the Richmond Times-Dispatch. He grew up in Miami, Fla., and central New Jersey. A former waiter, armored car guard and appliance deliveryman, he is a graduate of the College of William and Mary.