Across Virginia, electricity demand is rising sharply, especially in areas seeing rapid economic and population growth. The Virginia Department of Energy now projects energy demand will grow by 6.5% annually, a dramatic jump from the historical average of just 1.4%. And the regional grid operator, PJM, forecasts that electricity demand in Virginia could double by 2040.
That kind of acceleration has implications far beyond utility planning. Without meaningful investments in power generation and transmission, Virginia could face supply shortages as soon as next summer. For rural communities already working to expand broadband, attract employers and build housing, this creates real risk.
At Rappahannock Electric Cooperative (REC), we serve more than 182,000 connections across 22 counties, most of them rural. We’ve always taken a proactive approach to reliability and long-term planning — not just because it’s good business, but because it’s our obligation to the members who own us. Their expectations are clear: keep service reliable, affordable and resilient, even as the world around us changes.
We’re also very aware of rising costs and the pressure families are facing. While about 65% of a member’s power bill reflects generation and transmission costs outside of REC’s direct control, we work hard to manage the other 35% — the local distribution system, poles and wires, and day-to-day operations. That means operating efficiently, investing wisely, and seeking grants and outside funding to reduce the burden on members.
Growth brings another layer of responsibility. Our territory is expanding quickly — from residential neighborhoods and small businesses to advanced manufacturing and hyperscale data centers. To manage this growth responsibly, we created Hyperscale Energy Services, an REC affiliate designed to serve large power users with market-based power. This structure ensures that these energy-intensive accounts pay their fair share and do not shift costs onto other members. It’s a model built on fairness and aligned with recommendations from the Joint Legislative Audit and Review Commission (JLARC).
We’re also taking steps to modernize the grid — using technology to prevent outages, identify vulnerabilities, and extend the life of critical infrastructure. Our recent delivery rate proposal for large power users reflects that same commitment: making sure every member benefits from a reliable grid, and that every member contributes appropriately to maintaining it.
At REC, we believe energy is not a background issue — it’s the foundation of economic opportunity and quality of life. That’s especially true in the rural communities we serve.
We’re ready to lead. But Virginia’s energy future requires everyone — utilities, policymakers and economic development leaders — working together with clarity, responsibility and readiness.
Because if electricity becomes the ceiling on what Virginia’s rural communities can achieve, we all lose.
John Hewa is president & CEO of Rappahannock Electric Cooperative.