VPIRG urges strict renewable procurement, peak limits for data centers in H.727 testimony

Ben Andrew Walsh, testifying for the Vermont Public Interest Research Group (VPIRG) on Feb. 26 before the House Energy and Digital Infrastructure Committee, recommended H.727 use a contract-based enforcement approach to ensure data centers purchase 100% new renewable energy and do not increase Vermonts peak demand.

Walsh told the committee that a 20-megawatt data center (the scale referenced in H.727 as introduced) is small compared with current industry averages and growing projects; he cited industry analysis putting the typical data center at roughly 40 MW today and projecting about 60 MW by 2028. "A 20-megawatt data center is roughly the same electric usage on an annual basis as 35,000 EVs," Walsh said, noting that figure is an approximate comparison to help the committee gauge scale.

Why it matters: Walsh said data centers have unusually high load factors (he cited roughly 80% from utilities in large-deployment territories), which means they operate near capacity far more of the time than residential loads. That sustained demand can raise the system peak and drive regional transmission and capacity costs for all customers.

What VPIRG proposed: Rather than a tariff, Walsh recommended language that would require a "large load service" contract with a utility. Under his suggested approach:

- Data center contracts would require 100% of their purchased electricity to come from "new" renewable resources meeting a tier-4-like definition (new generation built since about 2010 in New England or adjacent regions). The Public Utility Commission (PUC) would review and enforce contract compliance.

- The contract construct would be separate from Vermonts Renewable Energy Standard; utilities would still have to meet RES obligations and the data center would have a higher, parallel requirement.

- To avoid timing and market disruption, Walsh suggested the PUC have contract-by-contract discretion on how much of the required renewable mix must be in‑state (tier 2), pointing out that a strict in‑state mandate for a very large facility could demand more new in‑state solar than Vermont currently builds in a year.

Peak and efficiency protections: Walsh urged explicit requirements to prevent increases in Vermonts coincident peak (the hour when ISO New England and Vermont peak together). Possible measures include curtailment protocols, several hours of on-site battery storage, or other enforceable arrangements with utilities and the PUC. He also recommended stronger energy-efficiency standards and incentives to capture waste heat for local thermal networks.

Equity and fees: Walsh argued data centers should pay existing energy-efficiency charges rather than receive waivers or special carve-outs; he opposed proposals that would let large new loads avoid those charges or receive other preferential treatment.

Self-managed utilities: Walsh warned against allowing facilities to become self-managed utilities (a construct some large industrial sites have explored), which could enable avoidance of statutory obligations. "Rather than rewriting the law," he said, "let them be a customer with a contract or else they cant escape these requirements by being a self-managed utility."

Committee response and next steps: Members asked whether utilities could source enough new renewables quickly; Walsh said timelines and capacity make it challenging but not impossible and that the PUC's discretion and multi-year development timelines for large projects provide runway. The committee asked witnesses to submit written redlines and supporting testimony; Walsh and other witnesses said they would provide draft language and reports to staff for follow-up.