The Virginia State Corporation Commission (SCC) has ordered data centers to bear the full cost of transmission infrastructure built exclusively for their facilities, a decision expected to save Virginia families, small businesses, and other ratepayers hundreds of millions of dollars. This ruling follows a rare intervention by Governor Abigail Spanberger, who urged state regulators to protect Virginians from shouldering these new energy costs.
Governor Spanberger's administration filed with the SCC last month, advocating for data centers and other large-load users to be assigned the costs of these projects. "I am proud that after my administration urged state regulators to protect Virginia families and small businesses from shouldering the cost of new transmission infrastructure meant to serve data centers, the SCC listened," said Governor Abigail Spanberger. She added that the order "makes sure that data centers are paying the full cost of the transmission infrastructure their developments require."
Chief Energy Officer Josephus Allmond emphasized the decision's importance, stating, "Instead of spreading transmission costs caused directly by data centers across all ratepayers, now data centers will pay for those costs directly." Senator Schuyler VanValkenburg, along with 19 other state legislators, also supported the Governor's stance, noting, "This protects Virginians from higher utility bills and assigns the cost where it belongs."
Governor Spanberger highlighted her administration's focus on making energy more affordable, particularly "at a time when so many families are feeling the squeeze of rising prices due to the Trump Administration’s reckless actions." She affirmed her commitment to ensuring data centers "pay their fair share, adhere to strict environmental standards, and listen to the concerns of local communities," referencing recent legislation signed to tax data centers on energy consumption and enforce stricter environmental requirements.