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Bill

SB 960

Electric utilities; data center cost allocation.

2025 Regular Session Introduced by Ian Lovejoy and 3 co-sponsors

SB 960 failed to establish cost allocation rules for data center electricity consumption in Virginia, leaving utility rate responsibilities between data centers and other customers unresolved.

Failed to Pass from conference
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Bill Summary · SB 960

Legislative bill overview

SB 960 addresses how electric utilities allocate costs associated with data center operations in Virginia. The bill establishes cost allocation frameworks to determine what portion of utility infrastructure and operational expenses should be borne by data centers versus other customer classes. This mechanism affects rate-setting and financial responsibility between different user categories on the electrical grid.

Why is this important

Data centers consume enormous amounts of electricity and require substantial grid infrastructure investment, creating tensions over fair cost distribution. Virginia's growing tech sector and data center industry make this cost allocation question economically significant for both utility profitability and competitiveness in attracting or retaining data center operations. The outcome directly impacts electricity rates for residential and commercial customers, as cost shifts between groups redistribute financial burdens.

Potential points of contention

  • Cost-shifting concerns: Debate over whether data centers should pay proportional costs or subsidized rates to attract economic development versus concerns that other ratepayers absorb unfair burdens
  • Grid infrastructure investment: Disagreement on whether utilities should pass through full infrastructure upgrade costs to data centers or distribute them across all customers
  • Competitive positioning: Tension between making Virginia attractive to data center investment versus protecting existing utility financial models and rate structures for traditional customers

Compiled from official sources — confirm details with the bill’s official record.

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