Dear Coalition Supporters and Friends,
Life is all about perspective. Is the glass half empty, or half full.
Our approach in the tough times – for how to manage what we know is a very long game – is to keep moving forward. However – there are definitely times when trying to hold a perspective that the glass is half full is challenging.
Here is OUR perspective on the SCC judges’ rulings this week:
Caught up by unprecedented data center power demand – a perfect storm is creating instability in our grid, and threats to our air and our water quality – Virginians needed a lifeboat.
The SCC judges threw us a pool noodle.
What the SCC has thrown to ratepayers may keep us treading to stay afloat. But it is NOT ENOUGH.
For ELEVEN years the Coalition to Protect Prince William County has been fighting for fairness; to hold these high energy HOG customers accountable. Our elected leaders and SCC judges have missed key opportunities for consequential change.
The Piedmont Environmental Council, as a regional conservation organization, played a key role in the SCC ratepayer case and provided expert testimony. Here are just a few key takeaways, but we urge you to read the entire press release: Piedmont Environmental Council Reacts to SCC Decisions in the Biennial Rate Case
“The ruling has three important takeaways. The first concerns establishing a distinct rate class for large load users (data centers). The second concerns cost allocation – which determines how regular ratepayers versus large load customers will be charged for the $90 billion – $270 billion in infrastructure capital expense projected by Dominion in its 2025 IRP update. The third concerns the contract framework, which determines how energy contracts with data centers will be structured to ensure ratepayers aren’t on the hook for potential stranded costs related to the build out.
The ruling stipulates:
- New Rate Class: The ruling establishes a new rate class for large-load users — those using at least 25 MW of power. This is a recognition that data centers are responsible for driving the need for future investment in the system. This rate class will apply to all data center contracts going forward and those dating back to 2016.
- Cost Allocation: The Commission has directed Dominion to review its cost allocation and transition away from the current method in the next rate case (2027). Unfortunately, this means there will be no real relief on people’s electric bills anytime soon.
- Contract Framework: The decision requires data centers to enter into 14-year power contracts with Dominion, including fees for early termination. These provisions offer some protections for other customers in the event the data center shifts its operations to another location or goes out of business. PEC urged the SCC to require 20-year contracts, arguing that longer contract terms are necessary to protect residential customers.
“We are disappointed that the Commission did not impose more stringent protections. For example, our expert witness found that, at the end of the 14 year contract period, 61 percent of the capital costs to serve data centers would remain undepreciated and unrecovered,” said Miller. “We are also disappointed that the SCC declined to require data centers to pay for their own transmission lines and other required infrastructure. PEC’s expert witness identified billions of dollars in transmission project costs that are currently allocated to all rate classes even though they only serve data center users. While the SCC signaled that it may consider transmission cost allocation in a future proceeding, these critical issues should have been decided as part of this case.”
“This decision alleviates some financial risk to Virginians, small business owners and farmers for the cost of the infrastructure needed to build out an electrical grid two to three times the size of the one we have today. But the SCC’s decision to continue the current allocation of costs among rate classes for the next two years is still unfair and does not go far enough to protect the average Virginian ratepayer,” said Miller. “During a time when families are struggling to make ends meet, the SCC is asking their constituents to continue to subsidize the energy needs of the richest companies in the world. It doesn’t make sense.”
In practical terms, this ruling results in a significant rate increase for Dominion’s residential customers. Beginning on Jan. 1, 2026, residential customers will face a 7.5% rate increase, followed by additional rate hikes in 2027. Data center companies already receive over $1 billion per year in state sales tax exemptions, and get discounted rates compared to what residential customers pay for electricity…”
SCC Approves New Data Center Rate Class for Dominion | News | loudounnow.com
In their final order, the judges said they heard several concerns from ratepayers.
“Two aspects in particular were often repeated: (1) that the motivating factors underlying the Company’s request for a rate increase that would impact residential customers was designed primarily to subsidize data centers; and (2) that, given the price increases in food, shelter, and consumer goods generally over the last few years, any rate increase at this juncture should be disallowed,” according to the order.
The concern surrounding general rate increases is understandable, they stated, but added that inflationary pressures impact the company as well.
“As the utility regulator, we are obligated by law to set a revenue requirement that affords the Company an opportunity to recover reasonable and prudent projected costs and earn a reasonable rate of return. In this case, that has resulted in an increase in rates, but not to the extent requested by Dominion,” according to the filing.”
‘Reasonable’? ‘Prudent’?
Is it ‘Reasonable’ and ‘Prudent’ to expect Virginia ratepayers to continue to subsidize billions of dollars in both Generation and Transmission line infrastructure, primarily triggered by the new “rate class” data center customer? Consider this analysis put together by the Coalition: PJM Data Center-Driven Transmission Expansion Projects – 2022 – Present
Don’t forget that graph by the JLARC study that predicts we will need AT LEAST one new gas power plant EVERY 15 months to help meet the load demand of “unconstrained data center growth” (prior to the 2024 Dominion Energy forecast).
AND the SCC judges also approved a massive new gas plant because of data center load demands – Is this ‘Reasonable’ and ‘Prudent’?:
‘The SCC has failed’: State approves $1.47 billion Chesterfield gas plant, related rate hikes for Dominion Energy customers | WRIC ABC 8News
CHESTERFIELD COUNTY, Va. (WRIC) — The Virginia State Corporation Commission (SCC) has approved Dominion Energy’s highly controversial $1.47 billion natural gas plant, as well as a rate hike for customers meant to help fund said development.
On Tuesday, Nov. 25, the SCC — which regulates several businesses and economic interests in Virginia — approved the construction and operation of a natural gas plant that Dominion Energy has dubbed the “Chesterfield Energy Reliability Center” (CERC).”
Possum Point powers up for data centers | News | princewilliamtimes.com
“The plan to modernize gas and steam turbines at Possum Point was shared with the Prince William Board of County Supervisors last month. It was part of a briefing on how Dominion plans to cope with a projected 500% hike in data center power demand by 2039.”
Is it “Reasonable” and “Prudent” to exercise eminent domain over people’s private property for dozens and dozens of new transmission line projects for data center load demand?
Crossed wires over regional power expansion – Virginia Business
“The project is one of several proposals by Dominion Energy to add more high-voltage cables that deliver electricity from generation sources to end users — often data centers, which are increasingly opposed by residents in Northern Virginia and elsewhere.”
“Estimated to cost $852.9 million, the project also would bring in a new 230-kilovolt line in Fauquier, and the Morrisville substation would be expanded.”
“That is the case for the Morrisville to Wishing Star line, which would place monopoles across farmland, to bring more power to Prince William and Loudoun data centers. Piedmont Environmental Council and other regional organizations came out in May to a meeting in Bealeton to oppose the plan.”
While we appreciate the SCC judges taking a critical first step, it is NOT ENOUGH. Virginia ratepayers are adrift, caught in a raging tempest. We need more than a pool noodle: a lighthouse sending out a lifeboat, helping us to navigate to safe land. We need a trusted team in positions of responsibility fighting on our behalf.
We commend our neighbors far and wide for staying engaged. Fighting to make ‘Any Place USA’ a thriving community.
Data centers claim another nursery in western Prince William | Localnews | princewilliamtimes.com
We have a local elected board of supervisors that needs to understand their decisions can help or hurt this growing crisis. With every vote they take to allow bigger and more intrusive data centers, they are directly contributing to the EVER-growing crisis of these threats to their constituents. We need OUR SUPERVISORS to course correct.
Congressman Suhas Subramanyam has scheduled a public forum to challenge the current trajectory:
Subramanyam plans town halls on data centers, energy prices | Loudoun | insidenova.com
“District Dialogue”
Thursday, Dec. 4
7 p.m.
Stone Hill Middle School
23415 Evergreen Ridge Dr, Ashburn, VA 20148 ·
Residents can RSVP for the event here.
——————
Please make a donation to help with our on-going activities.