The Shadow
RICHMOND, VA (VR) — After Governor Abigail Spanberger urged state regulators to protect Virginians from shouldering new energy costs, the State Corporation Commission (SCC) ordered data centers to cover the cost of transmission infrastructure built exclusively for those facilities — saving Virginia families, small businesses, and other ratepayers hundreds of millions of dollars.
The recent order comes after Governor Spanberger last month — in a filing by her administration with the SCC on behalf of Virginia ratepayers — took rare action by a Virginia Governor and called on the commission to assign costs of these projects to data centers and other large-load users.
“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. “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.”
Governor Spanberger continued, “Particularly at a time when so many families are feeling the squeeze of rising prices due to the Trump Administration’s reckless actions, we are taking real steps to address rising energy costs for Virginians. I will continue to work with the General Assembly and take action to make sure data centers pay their fair share, adhere to strict environmental standards, and listen to the concerns of local communities.”
Chief Energy Officer Josephus Allmond, under Governor Spanberger’s direction, submitted the filing with the SCC urging state regulators to shield Virginians from increased energy costs.
“It is hard to understate the importance of this decision from the SCC for Virginia families and businesses,” said Chief Energy Officer Josephus Allmond. “Instead of spreading transmission costs caused directly by data centers across all ratepayers, now data centers will pay for those costs directly. The Spanberger Administration remains laser-focused on ensuring data centers are paying their fair share and commends the Commission for this vanguard decision.”
Senator Schuyler VanValkenburg, along with 19 other state legislators, wrote a letter to the State Corporation Commission endorsing Governor Spanberger’s efforts to ensure data centers pay their fair share for transmission infrastructure.
“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,” said Senator Schuyler VanValkenburg. “This protects Virginians from higher utility bills and assigns the cost where it belongs.”
Since taking office in January, Governor Spanberger has remained relentlessly focused on making energy more affordable for Virginians and listening to the needs of local communities. The Governor recently signed first-of-its-kind legislation to tax data centers on their energy consumption, enforce stricter environmental requirements on backup generators, and give local leaders more tools to assess potential impacts of data center projects.
