March 23, 2026

NEWS: Lawmakers largely fail to protect Virginians from rising electric bills and data center impacts, Governor can still act

FOR IMMEDIATE RELEASE

CONTACT:

Brennan Gilmore, Clean Virginia Executive Director

[email protected]

March 23, 2026

Lawmakers largely  fail to protect Virginians from rising electric bills and data center impacts, Governor can still act

RICHMOND, VA – The 2026 General Assembly session unfolded as Virginians opened record-high electric bills and with national attention focused on whether Democratic leaders could deliver on their promises for affordability. While the session saw frequent debate on rising electric bills and the rapid expansion of data centers, the legislature chose not to act on many major reforms to protect families and small businesses from rising costs.

“Lawmakers had a clear opportunity and mandate to hold powerful interests accountable and provide real relief to Virginians,” said Brennan Gilmore, executive director of Clean Virginia. “Instead, reforms to protect families and small businesses from subsidizing the massive energy demands of the world’s wealthiest corporations were left on the table, while other decisions will make energy bills even harder to afford.”

Lawmakers introduced several proposals aimed at improving oversight of Virginia’s regulatory system, protecting customers from subsidizing data center energy demand and addressing the influence of money in politics. The legislature made some progress, advancing a performance-based regulation study process with potential to shift the outsized influence of utility profits on energy policy (SB 251 / HB 903 championed by Senate Majority Leader Scott Surovell (D – SD 34) and Delegate Rip Sullivan (D – HD 6)). However, most pro-consumer proposals did not pass, including:

  • Fair Share Energy Act (SB 339 / HB 658): These bills, carried by Senator Perry (D – SD 31) and Delegate Maldonado (D – HD 20), would have ensured that the costs of new energy infrastructure built to serve large industrial users are not shifted onto residential customers and small businesses. Senator Perry’s bill passed the Senate unanimously but died in the House.
  • Appalachian Power Customer Protection Act (SB 691 / HB 1075): These bills, carried by Senator Suetterlein (R – SD 4) and Delegate Rasoul (D – HD 38), would have strengthened oversight of Appalachian Power Company by ensuring its profit is determined fairly and protecting customers from paying for uneconomic decisions made by the utility.
  • No New Gas for Big Tech (SB 619 / HB 155): These bills, carried by Senator Srinivasan (D – SD 32) and Delegate Thomas (D – HD 21), would have required new large-load facilities to prove they will not increase electricity costs for households and small businesses, threaten grid reliability or conflict with Virginia’s clean energy goals before connecting to the power grid. Senator Srinivasan’s bill passed the Senate 23-16 but also died in the House.
  • Energy Bill Integrity Act (SB 761): This bill, carried by Senator Jones (D – SD 15), would have prevented regulated utility monopolies from charging customers for activities unrelated to providing electric service, such as political contributions, lobbying, luxury expenses and advertising.
  • Clean Campaigns Act (SB 584): This bill, carried by Senator Salim (D – SD 37), would have set reasonable contribution limits for the amount of money any entity may donate to any one candidate, and ban political contributions and independent expenditures from foreign-influenced corporations.
  • Power Without Politics Act (SB 502): This bill, carried by Senator Roem (D – SD 30), would have prohibited regulated utility monopolies from contributing to the political campaigns of the lawmakers who regulate them.

At the same time, lawmakers approved measures that will add to customer bills, including extending Dominion Energy’s Strategic Underground Program (SUP) from 2028 to 2033 (SB 253). The program is already projected to cost the average residential customer $4.88 per month in 2026, with customers continuing to pay these charges into at least the mid-2040s, locking in decades of additional costs.

Lawmakers also left Richmond without agreeing to a state budget due to disagreement over Virginia’s sales and use tax exemption for data centers. Originally expected to cost only a few million dollars when first adopted, this tax giveaway to the wealthiest corporations in the world has ballooned to roughly $1.9 billion each year. Those lost revenues could support essential services such as affordable childcare, healthcare access, school modernization, teacher pay raises and tax relief for working families. 

Now, Clean Virginia is calling on the governor to use the veto session to change course.

”The General Assembly missed its chance to deliver real relief, and it’s up to Governor Spanberger to step in, reject policies that increase costs and push for solutions that reduce the immediate financial burden on households,” Gilmore said.

While legislation to better harness the grid and expand cheap renewables promises some relief in the long-term, the twin drivers of Virginia’s energy affordability crisis – data center demand and inflated utility profit – remain largely unaddressed and must be tackled comprehensively and urgently. 

“As long as monopoly utilities are allowed to over-earn and corporate money continues to drive policies, families will pay the price,” Gilmore said.

Several other key reforms did pass through the General Assembly that Clean Virginia urges the Governor to sign. While these reforms will largely not translate to immediate bill relief, they support long-term efforts for a better-managed electric grid, including:

  • Fuel Cost Risk Management (SB 505 / HB 1256): These bills, carried by Senator Deeds (D – SD 11) and Delegate Shin (D – HD 8), direct the SCC to analyze a shared risk approach to fuel management with potential to lower energy bills.
  • Energy Storage Expansion (SB 488 / HB 895): These bills, carried by Senator Bagby (D – SD 14) and Delegate Sullivan (D – HD 6), will make it easier for more battery storage to connect to the electric grid. This can lower costs over time by reducing reliance on volatile fossil fuels and avoiding the need for costly new transmission lines and gas plants.
  • Grid Optimization (SB 621 / HB 434): These bills, carried by Senator Srinivasan (D – SD 32) and Delegate LeVere Bolling (D – HD 80), seek to improve the use of the electric grid that we have already built by developing strong performance metrics and evaluating utilization. This can save customers money in the long run by preventing the construction of unnecessary grid infrastructure.

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Clean Virginia is a 501(c)4 independent advocacy organization with an associated Political Action Committee, Clean Virginia Fund. Clean Virginia works to fight corruption in Virginia politics in order to promote clean and affordable energy. We are motivated by the core belief that our democracy should serve everyday Virginians over special interests.