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PUC Approves Creation of New Rate Class For Large Loads
In a press release the Virginia’s State Corporation Commission announced that it had approved a new rate class GS-5 that will comprise customers demanding 25 megawatts or more. The new rate class will be effective beginning January 1, 2027. press release
The new rate class is aimed at curtailing the risk posed by data centers, requiring 14-year contracts as part of Dominion Energy’s biennial review. This new rate class would apply to utility customers which consume more than 25 MW and have a monthly load factor of more than 75%.
In addition, to help insulate ratepayers from the costs around the rapid build-out and construction of infrastructure to support businesses such as data centers, certain large-scale customers will be required to pay a minimum of 85% of contracted distribution and transmission demand, and 60% of generation demand, among other requirements.
In a related matter in Duke’s rate case the Commission’s final order, also acknowledged concerns that the rate hike was subsidizing data centers, but said it concluded that Dominion was ultimately subject to “many of the same inflationary, economic, and policy impacts that have affected other segments of the economy.”
