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Subcommittee advances bill directing SCC to study a separate data‑center customer class

2124145 · January 16, 2025

Summary

HB 2084 instructs the State Corporation Commission to examine whether data centers should be placed in a separate customer class; the subcommittee voted 6–4 to report the bill to the full committee.

HB 2084, sponsored by Delegate Shin, directs the State Corporation Commission to conduct a regulatory proceeding to consider a separate customer classification for data centers. The subcommittee reported the bill 6–4 following testimony that ranged from support by conservation and consumer groups to opposition from the data center industry and economic development interests.

Supporters, including Appalachian Voices, the National Parks Conservation Association, the Virginia Poverty Law Center and Clean Virginia, said a distinct data‑center class could help protect residential ratepayers from bearing costs associated with rapid load growth tied to data centers. The JLARC study and delegates’ testimony were cited as evidence that data‑center demand could raise costs for other customers.

Opponents — including the Data Center Coalition, Dominion Energy, the Northern Virginia Technology Council and business groups — said the JLARC study did not recommend legislative direction creating a new customer class and argued regulators are best positioned to review cost allocation and rate design. Witnesses noted the SEC (SCC) had held a recent technical conference and was already positioned to address rate allocation and design without a legislative directive.

The patron and supporters emphasized legislative oversight and asked the SCC to consider public input while developing any classification. After the hearing the subcommittee reported the bill to the full committee 6–4; the committee record indicates the sponsor plans to continue stakeholder engagement and may introduce amendments.

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