Virginia Senate Advances Bill for Data Centers to Offset Dominion Energy Costs
A Virginia Senate committee has advanced a bill that would require data centers to cover certain infrastructure costs, thereby reducing electric bills for other Dominion Energy customers. The legislation, proposed by Sen. Louise Lucas, aims to have data centers pay for capacity costs and new substations, potentially increasing their monthly bills by 16%, while reducing residential bills by 3% to 3.5%. If enacted, the changes would take effect on January 1, 2027, and must be approved by the State Corporation Commission.
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The Virginia Senate Commerce and Labor Committee has passed a bill requiring data centers to bear certain costs to lower electric bills for other Dominion Energy customers. Proposed by Sen. Louise Lucas, the bill allows the State Corporation Commission (SCC) to decide if data centers should pay capacity costs for peak electricity demand and the costs of new substations.
If approved, data centers’ bills could increase by 16%, while residential bills would decrease by 3% to 3.5%, equating to a $5.52 reduction for typical users. The bill applies only to Dominion's service area and includes provisions extending low-income customer assistance programs. The SCC's approval is necessary for the changes, which would take effect January 1, 2027.
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