Virginia Bills Shift Utility Costs, Extend Burial Program

Summary

Virginia bills aim to lower utility bills by shifting costs, extending power line burial program.

Why this matters

This legislation impacts energy costs, infrastructure investment, and financial responsibilities for data centers and consumers.

Lawmakers in Virginia’s General Assembly are advancing two bills that aim to lower consumer utility bills by transferring certain costs to data centers. The House approved Senate Bill 253, proposed by Sen. L. Louise Lucas, D-Portsmouth, while the Senate Finance Committee moved forward with House Bill 1393, sponsored by Del. Destiny LeVere Bolling, D-Henrico.

Supporters argue the bills could save residential customers $5.52 monthly, but critics warn that extending the power line burial program included in the legislation might hike bills in the long term. This burial program, part of Dominion Energy’s initiatives, adds $4.88 to monthly bills. SB 253 proposes increasing the program’s cost cap and extending its timeline to 2033.

If the measure is approved by the State Corporation Commission (SCC), data centers would assume various infrastructure costs, potentially providing short-term savings for other consumers. Dominion supports this change, suggesting data centers will contribute more to the costs over several years.

Consumer advocates argue that the SCC should have the authority to decide on these measures. The Virginia Poverty Law Center points out that it is sometimes more cost-effective to repair poles than to bury lines.

The power line burial program, which began in 2014, is set to end in 2028. Its extension is estimated to cost $3.8 billion and benefit a limited number of customers. While lawmakers argue it reduces storm outages, the SCC’s previous criticism highlights a need for cost-effectiveness analysis.

The General Assembly session is scheduled to conclude on March 14, at which point the bills will likely be reconciled before being sent to Gov. Abigail Spanberger for approval, amendment, or veto.

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