Triangle Business News
by Lauren K. Ohnesorge

Dominion Energy’s top execs aren’t phased by regulators’ demands in North Carolina regarding the 600-mile Atlantic Coast Pipeline.

On a call with analysts Monday, Dominion CEO Tom Farrell II said his company and project partner Duke Energy have “essentially completed the design and engineering, executed the construction contracts and completed 90 percent of materials procurement” for the pipeline. The project is still on track to start construction this year, and to be complete in the second half of 2019, he said.

Farrell told analysts the utilities still expect to receive needed water permits from state regulators by the middle of December – despite recent information requests by North Carolina.

“It’s a very typical process, lots of questions come from the regulators,” Farrell said. “We provide answers, that makes them ask more questions, and we provide more answers. But we’re coming to the end of that process and we expect to have all those permits by the middle part of December and be under way.”

The statements come four days after ACP confirmed that the N.C. Department of Environmental Quality had requested “modifications” to its plans to cross a small number of water bodies in the state. A recent approval by the feds is contingent on the project obtaining state permits, so the pipeline couldn’t move forward without NCDEQ approval. It's the third letter NCDEQ has sent requesting more information on the project.

ACP has 30 days to respond, meaning it has to send documents by Nov. 26. From there, the state has 60 days to review its paperwork, though a decision may not be made until 2018 – potentially delaying the timeline ACP officials have targeted.

ACP officials have said repeatedly that they still expect to obtain all necessary permits and break ground by the end of the year, however.

And they continue to move forward behind the scenes.

Mark McGettrick, chief financial officer of Dominion, said Monday that the partners behind the ACP closed on a financing facility designed to fund about half of the construction costs.

“The first funding of $570 million took place last week to cover a portion of the costs incurred to-date,” said McGettrick.

In the meantime, a Dominion/Duke-funded business group, the EnergySure Coalition, has announced a campaign to promote the pipeline through television, radio, print and digital media. The campaign, according to a press release, will “highlight personal, local stories about the significant economic and environmental benefits that this important infrastructure will bring to the state.”

The release features a quote from Norris Tolson, president and CEO of the Carolina Gateway Partnership. Tolson, in interviews, has said the ACP is critical in recruiting manufacturing jobs to eastern North Carolina.

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