Virginia is abuzz with opinions about new data centers seeking residency in the Commonwealth. But it’s the lack of energy needed to support this digital demand that should be generating all of the talk.
With projected data center expansion, Virginia is expected to double its energy demand in 10 years. This is significant because, as a recent Cardinal News opinion piece points out, Virginia is already importing nearly 40 percent of the state’s electric supply –– in other words, Virginia utility companies can’t produce enough power so they buy and import it from generators in other states.
To generate more power in the state, one of Virginia’s largest electric utility companies has said it will cost them more than $100 billion for new power generation infrastructure, transmission and energy storage. These are costs that will simply be passed down to ratepayers.
Virginians are already feeling the financial pains when paying their energy bills. Look no further than central and southwest Virginia where customers continue to speak out about the energy rate hardships set by their utility company, Appalachian Power.
James Powers of Chilhowie shared with the My Energy Choice campaign that his power bills make him “choose between food or electricity for heat.”
Virginia should be advocating for energy choice, not protecting monopolized utilities that force customers to choose between food or a heated home.
Reprieve could be around the corner with a growing legislative interest to free customers from utility shackles, providing consumers a choice in their energy supply including low, fixed-price and cleaner energy options.
Eight bills have been introduced this session to give residential and commercial energy customers new and expanded energy choices. One of the most talked about in this area was legislation authored by Sens. Travis Hackworth and Todd Pillion that will deliver relief to Appalachian Power customers by offering them new supply options if their rates exceed the state average.
If competition will help break up utility privilege, why stop at only creating competition in certain zip codes?
Bills introduced by Sen. Stella Pekarsky and Del. Michael Jones will allow all residential consumers the ability to choose a 100% renewable energy option offered by competitive energy suppliers. This legislation will deliver competitive rates and help Virginia work toward clean energy goals. The average 2024 green energy offer from retail energy suppliers in Massachusetts was 4.5 cents cheaper than the collective average of the utility rates.
But what about large energy users, such as data centers, that consume immense amounts of energy? Currently, these consumers have barriers in place that limit the ability to shop for alternative energy options. It’s another component of the utility stranglehold.
Fortunately, Sen. Kannan Srinivasan and Del. Alfonso Lopez have stepped up with solutions that will help address capacity concerns and protect consumers from new power generation costs. Their bills will loosen restrictions that bar commercial and industrial customers from shopping for their own energy with a competitive energy supplier.
These legislative actions are a common ground to meet immense energy demands, deliver new 100% renewable energy options that are affordable and protect customers from spikes in utility rates if new power generation is developed.
With utilities purchasing nearly 40 percent of all state energy from the wholesale energy market, and plans to build $100 billion in new infrastructure, it’s the consumer that assumes the financial risk.
All energy users should have a choice in the product they consume and to shop for a price that best meets their budget. They should not be left footing the bill for risky utility investments.
The question everyone should be asking is: if the utility can shop the market, why can’t the customer?
Chris Ercoli is the president and CEO of Retail Energy Advancement League (REAL), a national advocacy organization dedicated to the expansion and modernization of American retail energy markets.
