How Virginia is trying to keep data centers off your power bill
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Virginia isn't pausing the data center boom, but lawmakers are trying to keep residents from footing the bill for it.
Why it matters: That's easier said than done.
The big picture: Electricity demand is climbing fast, driven by data centers' expansion into the Richmond area — to the chagrin of many locals.
- The cost of new power plants, transmission lines and grid upgrades ultimately shows up on monthly Dominion Energy bills, which have recently skyrocketed due to a base-rate increase.
The latest: Lawmakers this General Assembly session are in a balancing act of sustaining data center growth while keeping their promises to lower consumer costs.
- However, they stopped short of placing a moratorium on new data centers until 2028 and continued the proposal to next year.
Zoom in: Here are three major data center bills that have cleared "crossover," when bills pass from one chamber to another for consideration.
💰 House Bill 591 would make it a state policy for large data centers to "pay their fair share" of infrastructure costs to limit the effect on ratepayers.
- The intrigue: State budget analysts said this policy could increase data centers' compliance costs and cause some to relocate outside Virginia.
- Former Virginia energy director Glenn Davis told Axios last week that other states are waiting for that to happen so they can scoop the data centers up for themselves.
👀 Senate Bill 253 would shift certain capacity and grid-connection costs from all Dominion customers to "high-load" users like data centers.
- This bill has drawn the most bipartisan support and is the most likely to immediately help ratepayers.
- State regulators estimate it would lower residents' monthly bills by about $5.50, per the Virginia Mercury.
🛠️ Senate Bill 249 could reshape how utilities like Dominion plan for future electricity demand.
- It would push them to consider cheaper grid fixes before locking in expensive projects that customers would pay for long term and would require "maximum transparency" throughout the planning process.
What we're watching: Davis told Axios he recommends Virginians use one simple metric to know if the state's energy policy is working: "Look at your bill."