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VIRGINIA - Data centers will have to pay for transmission infrastructure built exclusively to serve their facilities under a new order from Virginia’s State Corporation Commission.
What the SCC ordered
The order assigns the cost of certain new transmission projects directly to data centers and other large-load customers whose developments require the infrastructure.
Previously, those expenses could be spread across a broader group of utility customers, including households and small businesses, according to the governor’s office.
The release did not include the full text of the SCC order or specify which current and future projects will be affected.
Why the administration pushed for the change
Gov. Abigail Spanberger’s administration filed comments with the SCC last month urging regulators to prevent Virginia ratepayers from covering infrastructure costs generated directly by data center development.
Chief Energy Officer Josephus Allmond submitted the filing on behalf of the administration.
"This order — which is projected to save Virginians hundreds of millions of dollars — makes sure that data centers are paying the full cost of the transmission infrastructure their developments require," Spanberger said.
Potential effect on utility customers
The governor’s office said the decision will protect families, small businesses and other ratepayers from hundreds of millions of dollars in transmission expenses.
The release did not provide a detailed calculation showing how much an individual household could save or how the order may affect future data center projects.
Allmond said the costs will now be assigned to the large customers responsible for creating the need for the infrastructure rather than being distributed across all ratepayers.
Support from state lawmakers
Sen. Schuyler VanValkenburg and 19 other Virginia lawmakers sent a letter to the SCC supporting the administration’s position.
"I’m glad the SCC agreed with the Governor and much of the General Assembly and required data centers to pay for their own transmission," VanValkenburg said. "This protects Virginians from higher utility bills and assigns the cost where it belongs."
Other data center measures
Spanberger’s office said the governor has also signed legislation addressing data center energy consumption, environmental requirements for backup generators and the authority of local governments to evaluate proposed projects.
The release did not provide the bill numbers or detailed implementation timelines for those measures.
The Source: This article was written using information from the Office of Virginia Gov. Abigail Spanberger.