(The Center Square) – Virginia regulators have approved Dominion Energy’s 2024 long-term energy plan but raised serious concerns about rising costs and whether new projects are truly needed to meet future electricity demand, particularly from the commonwealth’s fast-growing data center industry.
In a final order issued Tuesday, the State Corporation Commission found Dominion’s Integrated Resource Plan legally sufficient as required by law. However, the commission made clear this does not mean it approves the size, cost or specifics of any future infrastructure. Regulators warned that Dominion’s proposals could significantly impact customer bills and directed the company to provide more transparent, cost-effective alternatives in upcoming plans.
Among the commission’s directives, Dominion must include side-by-side modeling of a least-cost plan and a plan that complies with the Virginia Clean Economy Act. Each version must be modeled both with and without projected electricity demand from data centers. The commission also ordered Dominion to extend its planning horizon from 15 to 20 years and improve access to its modeling data for stakeholders and officials across the commonwealth.
The order calls for stricter energy efficiency goals as well. The commission rejected Dominion’s proposed savings targets of 2.1% to 2.7% and instead set new requirements of 3% in 2026, 4% in 2027, and 5% in 2028. Regulators also directed the company to assess additional battery storage, include a scenario in which Virginia rejoins the Regional Greenhouse Gas Initiative, and model long-duration storage technologies as they become viable.
Environmental groups echoed the commission’s concerns, saying Dominion’s plan relies too heavily on gas and leaves communities at risk. In a joint statement, the Southern Environmental Law Center and Appalachian Voices said the order confirms the plan was flawed and warned it could lead to more pollution and high bills. “Dominion may attempt to proceed with an ‘accepted’ plan, but the Commission has recognized it is the product of a flawed process,” said SELC senior attorney Nate Benforado.
Conservative policy groups have also weighed in. The Thomas Jefferson Institute warned that the commonwealth is running out of baseload power to meet peak demand and argued that policies supporting intermittent wind and solar energy could increase reliance on imports. In a recent report, the group said rapid growth in data centers and artificial intelligence infrastructure is accelerating demand and putting pressure on the grid.
“Virginia is quickly running out of sufficient baseload power to support its demand,” the report said. The group supports repealing or scaling back the Virginia Clean Economy Act, which phases out coal and natural gas over time.
While the IRP does not authorize specific projects, it guides Dominion’s decisions on future generation and transmission. That includes power plants, transmission lines and grid upgrades that can lead to rate increases. Regulators made clear that approval of the plan does not mean approval of those future costs.
