Virginia Governor Presses Regulators to Charge Data Centers for Transmission Costs
Virginia Governor Abigail Spanberger has asked the State Corporation Commission to place the cost of data-center-driven transmission projects on the facilities themselves, according to Inside Climate News, in a case argued through a filing by her chief energy officer.
Her administration is pushing a "but for" test, one that would make data centers cover the transmission lines and substations their projects require, Inside Climate News reported.
The disputed charge, Rider T-1, sits at $11.79 a month for a typical residential customer. Dominion has acknowledged that shifting to a dedicated data center rate class would cut that residential increase to $0.94.
Dominion currently earns a return on equity of 11.4 percent on transmission and 9.8 percent on its base rates, according to Inside Climate News.
During a case on its 2024 long-term planning document, Dominion testified it had estimated an additional $7.59 billion in transmission line investment coming online through 2031. Data centers accounted for 68 percent of that need, either on their own or shared with other customers, leaving 32 percent unrelated to them.
Source: insideclimatenews.org (opens in a new tab)1 sourcePermalink