RICHMOND, Va. (WRIC) — Dominion Energy has reached an agreement with Virginia to limit how much of the cost of an ambitious new offshore wind project can be passed on to its customers.

Attorney General Jason Miyares and environmental groups Appalachian Vocies and the Sierra Club all pushed for the restrictions, which Dominion agreed to in an apparent compromise.

The stipulation, which must still gain final approval from the State Corporation Commission, limits the costs passed on to customers in three major ways.

First, it sets a hard limit on the total amount of construction costs that can be passed on to residents in the form of increased rates. Dominion has projected that the project will cost $9.8 billion, and under the new agreement, if they go more than $500 million over budget, part of those costs will be assumed by the company.

Cost sharing breakdown as outlined in the new agreement.

Second, dominion agreed to abide by performance standards, setting an operating expectation of 42% of total capacity. The project is rated to produce 2,587 Megawatts, meaning if actual production drops below 1,086 Megawatts, the company will have to “provide a detailed explanation of the factors contributing to any deficiency.”

If the SCC finds the drop in production was a result of “unreasonable or imprudent actions,” it could then make Dominion shoulder the costs of the reduced capacity.

Finally, if Dominion seeks any funding for the project under President Joe Biden’s Inflation Reduction Act, the company will have to credit the money against their overall construction costs — essentially passing the money on to residents by reducing power bills.

“I am pleased that we have achieved consumer protections never seen before in modern Virginia history,” Attorney General Miyares said in a statement on Friday.

If the project goes severely over-budget, hitting the high-water mark of $13.7 billion, it could be brought back before the SCC to re-assess the project’s viability.

“For the first time Dominion has significant skin in the game to ensure that the project is delivered on budget,” Miyares said. “Should the project run materially over budget, it will come out of Dominion’s pocket, not consumers’.”

Miyares also thanked the Sierra Club, Appalachian Voices and Walmart for working with his office on the agreement with Dominion.

You can view the entire proposed agreement here.