Data centers must pay for transmission infrastructure
Virginia's State Corporation Commission has ordered that data centers must directly cover the cost of transmission infrastructure built exclusively to serve them, a decision expected to save residential ratepayers hundreds of millions of dollars. This policy, stemming from a filing by the Governor's office, directs Dominion Energy to develop a cost assignment mechanism for large-load users. Meanwhile, a hearing for a proposed substation at the Plaza 500 site in Fairfax County, intended for a future data center, is scheduled for September 24.
The Virginia State Corporation Commission (SCC) has issued a significant ruling mandating that data centers bear the cost of transmission infrastructure specifically constructed to serve their operations. This decision, finalized on July 31, is projected to save Virginia families and small businesses hundreds of millions of dollars, according to Governor Abigail Spanberger.
The Governor's office had advocated for this policy in response to a rate hike request from Dominion Energy, arguing that data centers, not residential customers, should be responsible for these infrastructure costs. Virginia's Chief Energy Officer Josephus Allmond emphasized the importance of the ruling, stating that it ensures data centers directly pay for the transmission costs they incur.
The SCC's order directs Dominion Energy to develop a policy for assigning the costs of high-voltage transmission lines and substations to data centers and other large-load users. This comes after the SCC approved a transmission line last year for a future data center at the Plaza 500 site on Edsall Road. A proposed substation for this specific project in Fairfax County is scheduled for a hearing with the Fairfax County Planning Commission on September 24.
Governor Spanberger has committed to collaborating with state lawmakers to ensure data centers adhere to strict environmental standards, pay their equitable share, and address community concerns.