(The Center Square) – A former utility regulator says Virginia residents could face higher electricity costs if data centers are not more clearly billed for the infrastructure their growing energy use requires.
As part of Dominion Energy’s current rate case, which includes a proposal to create a new GS-5 rate class for large energy users like data centers, the Piedmont Environmental Council is asking state regulators to adopt stronger protections for households and small businesses.
The case, listed as PUR-2025-00058, is part of the SCC’s regular review of Dominion’s base rates and how the company charges different types of customers.
It comes at a time when large data centers are using more power than ever before to support cloud computing, artificial intelligence and other digital services.
State regulators approved Dominion’s long-term energy plan in July, but noted at the time that rising data center demand could lead to higher costs for customers.
PEC said it appreciates Dominion’s proposal to create a new rate class for high-energy users like data centers but argued the step doesn’t go far enough. The group submitted expert witness testimony urging regulators to “demand better and set the bar higher.”
Former SCC deputy director Gregory Abbott filed written testimony supporting PEC’s position.
Abbott said Dominion does not currently track or report how much it costs to serve data center customers, who are instead grouped into broader commercial rate classes.
Without that information, he said, “it is impossible to reach a definitive conclusion that High Load data center customers are paying their full cost of service.”
His testimony also explained that Dominion’s current rate design spreads many system costs across all customer types, even when only one group is driving the need for new infrastructure.
Without changes to how costs are divided, he said, regular customers could end up paying for facilities built primarily to serve data centers.
He called the case a “case of first impression” because of how much demand is coming from one type of customer. Dominion’s planning documents show that data center energy demand could triple the system’s peak load in the coming years.
PEC is asking the SCC to go beyond Dominion’s plan by requiring longer contracts, better cost tracking, and a new way of dividing infrastructure costs across customer types.
Public comments can be submitted through the SCC’s website until Aug. 26.
