Day two of the North Carolina Utilities Commission (NCUC)’s large load technical conference kicked off with a presentation from Dominion Energy. Data centers bring massive annual revenue for Dominion in Virginia—home to the largest data center market in the world—where the utility has been serving the growing industry for more than a decade. Approximately 25 percent of Dominion’s utility sales in Virginia are currently from data centers, and the company expects this number to double by 2035.
Whereas Duke Energy’s focus in North Carolina is integrated system planning, Dominion described a different approach that has evolved due to the sheer volume of large load work. Dominion has segmented its large-load operations, managing key account functions, economic development, and forecasting for data centers and other major customers through a separate process outside of the corporate center. This structure allows the utility to tailor service offerings, timelines, and infrastructure investments to the rapid demand growth from large buyers, and to form partnerships that help track granular data, illuminate risks, and mitigate problems before they begin.
Dominion has also developed a three-contract structure to ensure that time and resources aren’t wasted on speculative projects. This process includes financial assurances and agreements to ensure that an end user is in place when it comes time to initiate service. The utility recently proposed implementing high load tariffs like minimum demand charges or take-or-pay contracts, which would help ensure fair cost allocation and prevent stranded assets in future development. While such proposals are still part of an open proceeding, the bottom line stands: it’s essential to confirm, prior to development, that data centers will remain firmly established and uphold their financial commitment for years to come.