See below for a press release from NRDC and Evergreen Collaborative, regarding “ a new independent analysis from Synapse Energy Economics finds that state leaders can take immediate steps that could cut the average Virginia household’s power bill by 18 percent, saving $712 per year by 2030.” How can these savings be achieved, even in the face of rapid electricity demand growth from data centers? The analysis highlights “four concrete steps leaders can take right now”:
- “Build more clean energy by accelerating siting and interconnection reforms to clear PJM’s backlog.
- Require large data centers to supply their own clean, affordable power so households aren’t stuck with the bill.
- Reform monopoly utility business models to curb excess profits by rewarding cost control and reliability instead of capital spending.
- Bolster the grid using modern electrification technologies.”
I watched the press conference – at which LG-elect Ghazala Hashmi spoke – a little while ago (hopefully there will be video available). Among other things, Hashmi said “ utilities and Big Tech need to come to the table as partners, with a renewed focus on delivering clean, affordable, reliable energy that will benefit – not burden — ratepayers across the commonwealth.” And the representatives from NRDC and Synapse Energy Economics stressed that Virginia can meet growing power demand via clean energy – wind, solar, storage, efficiency – alone, without the need for any new fossil fuel power plants, and quite possibly without the need for new nuclear power capacity either. Which, of course, directly contradicts the Virginia State Corporation Commission’s recent, “short-sighted decision to approve Chesterfield Gas Plant” (hopefully that plant will NOT get an air permit (the Virginia Department of Environmental Quality will decide this on Wednesday, Dec. 10, at 5 p.m.).
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Virginia Leaders Can Act Now to Blunt Rising Energy Bills, New Analysis Finds
As Virginia residents face steeply rising electricity bills, a new independent analysis from Synapse Energy Economics finds that state leaders can take immediate steps that could cut the average Virginia household’s power bill by 18 percent, saving $712 per year by 2030. The report comes on the heels of an election in which Virginia voters decisively chose Governor-elect Abigail Spanberger and other leaders who centered energy affordability and the cost-of-living crisis in their campaigns, giving them a clear mandate to act.
The modeling shows that soaring data center growth—set to more than double Virginia’s projected energy demand over the next decade—is already straining the grid and driving up utility bills. Federal efforts by the Trump administration to stall clean energy development and roll back federal investments are compounding those pressures. And PJM Interconnection, Virginia’s grid operator, takes more than five years to approve new projects, leaving a massive backlog of mostly clean energy that could come online quickly and cheaply. These delays leave the state relying on older, expensive, unreliable fossil plants at the very moment demand is surging.
State regulators just approved Dominion Energy’s request for a rate increase, much of which was driven by the state’s fast-growing data center industry—and raised the guaranteed profit the monopoly utility earns on every dollar it invests. But with targeted action, Virginia leaders can blunt those increases and set the state on a more affordable path.
Read the full report here.
The analysis outlines four concrete steps leaders can take right now to turn the tide on rising energy costs:
- Build more clean energy by accelerating siting and interconnection reforms to clear PJM’s backlog.
- Require large data centers to supply their own clean, affordable power so households aren’t stuck with the bill.
- Reform monopoly utility business models to curb excess profits by rewarding cost control and reliability instead of capital spending.
- Bolster the grid using modern electrification technologies.
According to Synapse’s modeling, these combined actions would reduce household electricity costs 18% by 2030 and deliver an estimated $8.3 billion in statewide savings.
“Virginia is at the center of the nation’s data center boom, and voters made clear they want leaders who won’t let that drive their bills even higher,” said Evergreen Collaborative Senior Power Sector Lead Charles Harper. “Requiring data centers to bring their own clean power, speeding up clean energy deployment, reigning in utility excess, and holding PJM accountable are practical steps state leaders can take right now to lower bills and deliver real energy savings for Virginians.”
“Gov.-elect Spanberger rightly ran on delivering meaningful relief to household budgets and ending years of assaults on clean air and public safety,” said Natural Resources Defense Council’s Virginia Director Walton Shepherd. “Virginians support the clean energy path that lawmakers have already laid out. Now it is time to build on that progress under Spanberger’s clear-eyed policy leadership, and utilities and Big Tech need to come to the table as partners, with a renewed focus on delivering clean, affordable, reliable energy that will benefit – not burden — ratepayers across the commonwealth.”
“Virginians have been clear: they want a more affordable Commonwealth. Families are feeling the strain every time they open an energy bill, but we have real, practical solutions to bring those costs down,” said Lieutenant Governor-elect Ghazala Hashmi. “If we ensure data centers pay their fair share, speed up the connection of affordable clean energy, and strengthen our grid, we can lower bills and build a more resilient energy system for everyone. I’m looking forward to working together to restore Virginia’s leadership on energy affordability.”
As a new administration and General Assembly prepare to take office, Virginia has a pivotal opportunity to deliver immediate relief for families and businesses and set the stage for lasting reform. These recommendations offer practical steps to cut household costs and strengthen the grid with clean, cheap energy. They also lay the groundwork for deeper reforms that restore accountability and build a fairer, affordable, and resilient energy system.
A fact sheet detailing these interventions and their benefits can be found here.
Find this release online here.
