Virginia Data Centers Must Pay for New Transmission Infrastructure
The Virginia State Corporation Commission has ruled that data centers and other large-load users must directly cover the cost of new high-voltage transmission lines built to serve their facilities. This decision shifts the financial burden from general utility ratepayers, including households and small businesses, to the data centers. Governor Abigail Spanberger's administration had urged the SCC to make this ruling, which her office states will save Virginians hundreds of millions of dollars.
The Virginia State Corporation Commission (SCC) has issued a ruling mandating that data centers, along with other large-load users, directly bear the cost of new high-voltage transmission lines constructed to serve their operations. This decision marks a significant shift from previous policy, where the costs for such transmission infrastructure were distributed among a broad base of utility users, including residential customers and small businesses.
The ruling followed an appeal from Virginia Governor Abigail Spanberger's administration last month, which advocated for the protection of Virginia families and small businesses from these infrastructure costs. Governor Spanberger expressed pride in the SCC's decision, asserting that it would save ratepayers hundreds of millions of dollars. Her stance was supported by Senator Schuyler VanValkenburg and 19 other state legislators who endorsed her efforts in a letter to the SCC.
Governor Spanberger's office highlighted her ongoing commitment to making energy more affordable for Virginians and addressing community needs. This ruling comes after the Governor recently signed legislation imposing taxes on data centers' energy consumption, enforcing stricter environmental regulations on backup generators, and providing local authorities with more tools to evaluate the potential impacts of data center projects.