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Bill

SB 191

Electric utilities; data center demand, allocation of costs among customer classes.

2025 Regular Session Introduced by Adam Ebbin and 2 co-sponsors

SB 191 determines how Virginia utilities allocate data center electricity infrastructure costs among residential, commercial, and industrial ratepayers to prevent cross-subsidies or balance economic development.

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Bill Summary · SB 191

Legislative bill overview

SB 191 addresses how Virginia electric utilities allocate costs for serving data centers among different customer classes (residential, commercial, industrial, etc.). The bill establishes a framework for determining whether data center demand costs should be spread across all ratepayers or borne primarily by the data center customers themselves.

Why is this important

Data centers consume enormous amounts of electricity and require significant infrastructure investments from utilities. How these costs are allocated directly affects electricity rates for ordinary residential and small business customers—either they subsidize data center operations through higher rates, or data center operators pay the full cost of service. This is increasingly critical as Virginia attracts major data center investments due to its proximity to major population centers and existing fiber infrastructure.

Potential points of contention

  • Rate equity concerns: Whether residential and small business ratepayers should cross-subsidize large industrial data center customers or if data centers should bear full cost of infrastructure they necessitate
  • Economic development trade-offs: Lower utility costs for data centers attract high-value businesses and jobs, but may shift financial burden to other customer classes
  • Utility revenue impact: How cost allocation affects utility profitability and their ability to invest in grid modernization and renewable energy infrastructure

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

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