Dominion Energy and Duke Energy announced Sunday the cancellation of the Atlantic Coast Pipeline due to ongoing delays and increasing cost uncertainty which threaten the economic viability of the project.

According to a news release, despite last month’s 7-2 victory in favor of the pipeline at the United States Supreme Court, recent developments created a layer of uncertainty and anticipated delays for ACP.

U.S. Senator Joe Manchin (D-WV), Ranking Member of the Senate Energy and Natural Resources Committee, released the following statement on the announcement that the Atlantic Coast Pipeline project has been cancelled.

“I’m disappointed to learn plans to build the Atlantic Coast Pipeline have been cancelled. The Atlantic Coast Pipeline project took meaningful steps to ensure the pipeline was safely constructed and the Appalachian Trail and surrounding areas were protected. The pipeline would have created good paying construction and manufacturing jobs for hard working West Virginians, reinvested in our energy markets increasing our domestic energy supply, and strengthened national security with reliable energy to key military installations. Today’s announcement is yet another reminder of why it is critically important we work together to find a responsible balance between the environment and economy. We must take steps to modernize our nation’s energy policy by passing the bipartisan American Energy Innovation Act.”

The news release goes on to say, a series of legal challenges to the project’s federal and state permits caused significant project cost increases and timing delays. The lawsuits and decisions sought to dramatically rewrite decades of permitting and legal precedent including as implemented by presidential administrations of both political parties. As a result, recent public guidance of project cost has increased to $8 billion from the original estimate of $4.5 to $5.0 billion. In addition, the most recent public estimate of commercial in-service in early 2022 represents a nearly three-and- a-half-year delay with uncertainty remaining.

Thomas F. Farrell, II, Dominion Energy chairman, president, and chief executive officer, and Lynn J. Good, Duke Energy chair, president, and chief executive officer, said:

"We regret that we will be unable to complete the Atlantic Coast Pipeline. For almost six years we have worked diligently and invested billions of dollars to complete the project and deliver the much-needed infrastructure to our customers and communities. Throughout we have engaged extensively with and incorporated feedback from local communities, labor and industrial leaders, government and permitting agencies, environmental interests and social justice organizations. We express sincere appreciation for the tireless efforts and important contributions made by all who were involved in this essential project. This announcement reflects the increasing legal uncertainty that overhangs large-scale energy and industrial infrastructure development in the United States. Until these issues are resolved, the ability to satisfy the country's energy needs will be significantly challenged."

The Atlantic Coast Pipeline was initially announced in 2014 in response to a lack of energy supply and delivery diversification for millions of families, businesses, schools, and national defense installations across North Carolina and Virginia. Robust demand for the project is driven by the regional retirement of coal-fired electric generation in favor of environmentally superior, lower cost natural gas-fired generation combined with widespread growing demand for residential, commercial, defense, and industrial applications of low-cost and low-emitting natural gas. Those needs are as real today as they were at project inception as evidenced by the recently renewed customer subscription of approximately 90 percent of the project’s capacity. The project was also expected to create thousands of construction jobs and millions of dollars in tax revenue for local communities across West Virginia, Virginia and North Carolina.

https://www.wymt.com/2020/07/05/atlantic-coast-pipeline-project-canceled/

(http://www.autoadmit.com/thread.php?thread_id=4577246&forum_id=2#40551862)