Commission orders Dominion to develop data center cost plan
Virginia's State Corporation Commission has ordered Dominion Energy to develop a plan by this fall to shift more transmission infrastructure costs to data centers and other large electricity users. This directive is part of a final order related to Dominion's annual request to recover transmission expenses. Governor Abigail Spanberger's administration praised the decision, stating it ensures data centers pay their full share of infrastructure costs.
The Virginia State Corporation Commission (SCC) has issued a final order directing Dominion Energy to develop a plan to reallocate transmission infrastructure costs, potentially shifting a greater burden to data centers and other high-demand electricity consumers. Under the July 31 order, Virginia Electric and Power Company, which operates as Dominion Energy Virginia, must submit proposed amendments to its line-extension policy within 90 days and provide a status update on a broader cost assignment approach within 120 days. The company is also required to collaborate with Old Dominion Electric Cooperative and other distributors to devise a symmetrical cost assignment method, with an update due by November 28.
The SCC's decision, made as part of its final order on Dominion's annual Rider T1 transmission expense recovery request, aims to ensure that large-load customers responsible for new transmission infrastructure pay their fair share. While the order does not immediately impose new charges on data centers, it sets the stage for Dominion's future proposals, which will undergo separate review. Governor Abigail Spanberger's administration lauded the order as a victory for ratepayers, emphasizing that it ensures data centers contribute fully to the transmission infrastructure their developments necessitate. The administration had advocated for stricter tests to identify projects driven by large customer demand, such as those in the GS-5 class (25 megawatts or more), which includes many large data centers.