The Virginia House of Delegates introduced House Bill No. 2101 on January 8, 2025, aimed at addressing the financial implications of electric utility costs among different customer classifications, particularly concerning data centers. The bill, patroned by Delegate Maldonado, mandates the State Corporation Commission (SCC) to investigate whether non-data center customers are unfairly subsidizing the costs associated with data centers.

The primary objective of HB2101 is to assess the current cost allocation among electric utility customers and determine if it imposes an unreasonable financial burden on those not operating as data centers. If the SCC finds that such subsidies exist, it is required to implement rules to mitigate or eliminate these costs by January 1, 2026. Notably, the bill stipulates that the SCC cannot issue any certificates of public convenience and necessity for projects primarily benefiting data centers after July 1, 2025, until the investigation is complete.

The introduction of this bill has sparked discussions regarding the economic implications for both data centers and other utility customers. Proponents argue that data centers, which have proliferated in Virginia due to favorable business conditions, should bear their fair share of utility costs, thereby alleviating financial pressure on residential and commercial customers. Critics, however, express concerns that restricting data center growth could hinder economic development and job creation in the tech sector.

As the bill progresses through the legislative process, it is expected to face scrutiny and debate, particularly regarding its potential impact on Virginia's burgeoning data center industry. Stakeholders from various sectors are likely to weigh in, emphasizing the need for a balanced approach that supports economic growth while ensuring fair utility pricing for all customers.

In summary, HB2101 represents a significant legislative effort to reevaluate the financial dynamics of electric utility costs in Virginia, with the potential to reshape the landscape for data centers and their impact on the broader customer base. The outcome of the SCC's proceedings could have lasting implications for energy policy and economic development in the Commonwealth.