VA Data Center Cost-Allocation Law

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.

Status
In effect
Took effect
July 1, 2026
Applies to
Investor-owned electric utilities (Dominion Energy, Appalachian Power); indirectly, data-center and other large-load (25 MW+) customers
Enforced by
Virginia State Corporation Commission; Department of Environmental Quality (HB 507)

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.

Who is protected: Virginia residential and small-business utility ratepayers

Legal 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.

Key facts

JurisdictionVirginia
LevelState
StrengthLimited
EnactedMay 18, 2026
CitationVa. 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.
Private right of actionNo, agency enforcement only
Topicsdata-center siting and energy · consumer protection
Bill textVirginia LIS — SB 253 (2026) official bill page (data-center electricity cost allocation)

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Related data-center siting and energy rules elsewhere

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