Henrico’s electric bill is going up by $5M; the county is asking employees to help
Henrico County is facing a $5 million increase in its annual electric bill due to a nearly 25% jump in electricity rates, prompting the county manager to urge employees to conserve energy. This rate hike, affecting numerous governmental entities statewide, is partially attributed to rising fuel costs and data center load growth, with the State Corporation Commission already linking residential increases to data center demand. The county is also considering its 2045 Comprehensive Plan, which will guide future data center growth amidst community opposition.
Henrico County Manager John Vithoulkas informed county employees of a nearly 25% increase in electricity rates, effective July 1, which will add an estimated $5 million to the county's annual electric bill. In response, Vithoulkas urged conservation efforts, including turning off lights and unplugging chargers.
The rate increase applies to all 170 members of the Virginia Energy Purchasing Governmental Association (VEPGA), which negotiates electricity contracts with Dominion Energy. While county officials have not publicly tied the specific VEPGA rate increase to data centers, the Virginia State Corporation Commission (SCC) previously approved a base rate increase for Dominion Energy residential customers, explicitly linking it to data center load growth. The SCC ordered Dominion to shift generation cost allocation to place more responsibility on large customers like data centers.
Henrico's eastern corridor has become a significant data center cluster, with at least 16 facilities and more under construction, including a major expansion by QTS. The county is currently weighing its 2045 Comprehensive Plan, which will manage future growth, including hyperscale data centers, and is scheduled for a Henrico Planning Commission vote on July 9, followed by adoption by the Henrico Board of Supervisors. Community groups, such as Henrico Civic Action, have expressed concerns regarding the rapid pace and scale of data center approvals, particularly in residential and recreational areas.