Microsoft has filed a notice of appeal with the Virginia Supreme Court over a state regulatory decision that would require Dominion Energy to bill large data center customers directly for certain transmission costs, according to Utility Dive. The move preserves the company's ability to formally challenge the ruling without committing to do so immediately.
The dispute traces back to a July 31 order from the Virginia State Corporation Commission, which directed Dominion to draft an amendment to its line extension policy requiring a mandatory contribution in aid of construction for "direct connect" transmission facilities serving large electricity users. The policy would apply to substations and transmission lines built specifically to connect data centers to the grid. Dominion faces an October deadline to file the amended policy in a follow-on proceeding.
A Microsoft spokesperson said the company has not yet appealed the commission's decision but is "preserving its rights to ensure that any rates ultimately put in place are transparent, fair, and reflect the costs each customer creates." Under Virginia law, Microsoft has until late November to file a formal petition for appeal.
Google, Amazon and Meta also participated in the case. A Google representative said the company views the commission's order as thoughtful and had argued during hearings for voluntary rather than mandatory cost assignments, while supporting a clear line between direct interconnection costs and broader network upgrade costs.
Legal observers who represented environmental groups in the proceeding said the commission's decision appears legally sound, given its narrow focus on infrastructure built specifically to serve large data center loads.
Source: Utility Dive -- https://www.utilitydive.com/news/microsoft-virginia-scc-data-center-transmission/830775/