Virginia SB 253 / HB 1393 (2026): Data Center Electricity Cost Allocation
Virginia · Va. SB 253 (2026) (Sen. Lucas); companion Va. HB 1393 (2026); related Va. HB 507 (2026, generator air permits). Signed with gubernatorial amendments, May 2026; effective July 1, 2026.
Virginia's 2026 data-center cost-allocation law (SB 253, by Sen. L. Louise Lucas, with companion HB 1393). As amended by Gov. Spanberger and signed in May 2026, it lets the State Corporation Commission (SCC) shift certain electricity costs — PJM capacity-auction purchases and the financing of distribution lines and substations that mainly serve data centers — onto data centers and other very large (25 MW+) customers in their rate class, instead of spreading them across residential bills. The governor's amendments made the cost-shift SCC-discretionary rather than automatic, so the real-world savings depend on future SCC rate cases. The bill also extends Dominion and Appalachian Power low-income weatherization programs.
Technical detail
SB 253 (Sen. L. Louise Lucas) and companion HB 1393, as amended by Gov. Spanberger and signed May 2026. Authorizes the SCC to allocate PJM capacity-auction costs and distribution-infrastructure financing costs to data centers / large-load customers (25 MW+) in their rate class, subject to SCC approval, and extends utility weatherization programs. Gubernatorial amendments converted a mandatory cost-shift into SCC discretion ('take all measures to reasonably ensure' that data-center costs are not subsidized by other customers). A separate measure, HB 507, addresses Tier IV generator air permits.
Who is protected: Virginia residential and small-business utility ratepayers
Who must comply: Investor-owned electric utilities (Dominion Energy, Appalachian Power); indirectly, data-center and other large-load (25 MW+) customers
Key facts
| Jurisdiction | Virginia |
|---|---|
| Level | State |
| Status | In effect |
| Protection strength | Limited protection |
| Effective date | 2026-07-01 |
| Enacted | 2026-05-18 |
| Citation | Va. SB 253 (2026) (Sen. Lucas); companion Va. HB 1393 (2026); related Va. HB 507 (2026, generator air permits). Signed with gubernatorial amendments, May 2026; effective July 1, 2026. |
| Enforced by | Virginia State Corporation Commission; Department of Environmental Quality (HB 507) |
| Private right of action | No — agency enforcement only |
| Topics | data-center siting and energy · consumer protection |
| Last verified | 2026-06-22 |
| Official source | Virginia LIS — SB 253 (2026) official bill page (data-center electricity cost allocation) ↗ |
More AI rules in Virginia
- Virginia FY2026-2028 Biennial Budget: Data Center Electricit · Enacted (not yet in effect)
- Virginia § 15.2-1723.2 (facial recognition by local law enforcement, eff. July 1, 2026) · In effect
- Virginia IVO AI Safety Study (SB 384/HB 797, 2026) · In effect
- VA Data Center Siting Bill (Vetoed) · Vetoed
- VA Data Center Tax Exemption · In effect
- VA warrantless drone ban · In effect
Related data-center siting and energy rules elsewhere
- Superior WI Data Center Moratorium (1-year) · In effect
- Dane County WI Hyperscale Data Center Moratorium · In effect
- Madison WI Data Center Moratorium (1-year) · In effect
- Manitowoc County WI Data Center Moratorium · In effect
- WA SB 5982 (Data Center / Clean Energy) · In effect
- Dayton OH data center moratorium (180-day, Apr 2026) · In effect
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