
by James A. Bacon
Virginia is the biggest importer of electricity in the United States, according to a U.S. Energy Information Administration report released last month. The Old Dominion has surpassed California as the biggest consumer of electricity from other states. Imports into the Land of Nuts and Fruits declined due to heavy investment in rooftop solar and energy efficiency, says the report. By contrast, imports into Virginia have soared between 2019 and 2023 due to growing commercial-sector demand, mainly data centers.
The increase in demand is highly concentrated in Data Center Alley in Loudoun and Prince William counties. I’m all in favor of making Virginia the data-center capital of the world — but not if it means a tax bonanza for Loudoun and Prince William paid for by higher electricity rates for everyone else.
The average retail price of electricity in Virginia in 2023 was 10.8 cents per kilowatt hour. Those weren’t the cheapest electrons in the country, but electric rates were lower than the national average of 12.7 cents per kWh. Lower rates make Virginia more economically competitive for manufacturing and give the commonwealth a cost-of-living advantage.
Surely it is possible to design an electric tariff that meets the energy demands of the data centers without penalizing all Virginians with higher rates. The issues will be complex, so the legislature needs to get moving pronto.
(more…)















