Michael Barber’s job is to understand how electric rates are set in Virginia, and it’s not easy.
In addition to approving base rates, the State Corporation Commission can apply one of more than two dozen adjustments or riders that allow utilities to charge more.
Rider T-1, for example, applies to transmission lines, and Barber says Dominion is building a lot more of them.
“All these data centers require their own transmission lines to connect to the backbone of the grid. They’re huge," Barber says. "They’re expensive and people have noticed.”
Today, all consumers pay for those lines. Ten years ago, the commission’s staff recommended data centers be responsible for more of the costs, but members of the commission refused to change the rules.
Now, Mike Barber’s employer – the Piedmont Environmental Council -- is asking again.
“The costs for this transmission infrastructure build out, they’re starting to become massive. It’s hard to wrap your head around really. Dominion used to spend between $700 and $800 million per year on transmission and going forward they’re planning to spend about three billion a year.”
If all of the proposed centers are built, Barber says, transmission lines alone will cover an area bigger than Charlottesville – running through forests, farms and people’s backyards. PEC has produced a map so the state and the public can get a better idea of what’s coming.
The commission’s decision on who will pay may not come for months.
