Virginia · plain-English answer
Why is my Virginia electric bill so high?
You're not imagining it. The average Virginia residential electricity price rose 27% in 6 years — from 12.07¢/kWh in 2019 to 15.28¢/kWh in 2025. Here's what's behind it, and the one part you can actually fix.
Most of that nominal rise is inflation — in real (inflation-adjusted) terms, Virginia prices are up only about 0% so far. The bigger pressure is still building (see the grid costs below). (Source: U.S. Bureau of Labor Statistics (CPI-U).)
How much of your Virginia bill is the data-center surge?
Virginia is in the PJM grid, where capacity costs jumped largely because of data-center demand. PJM estimates this adds about 1.5%–5% to customer bills. Enter your monthly bill to see that as dollars:
How we calculated this
We take PJM's own published estimate that recent capacity-cost increases add about 1.5%–5% to customer bills, and apply that range to the bill amount you enter — entirely in your browser. It's an estimate, not a precise figure: your exact share depends on your utility and usage, and PJM attributes a large part (not all) of the capacity increase to data centers. Source: PJM Interconnection (as of 2025-07).
Why data centers are driving this:
Virginia (Loudoun County) is the world's data-center capital. PJM's forecast shows more than 20,000 MW of data-center load growth in the Dominion zone by 2037 — up from about 5,700 MW projected just three years earlier. — PJM 2025 Long-Term Load Forecast (2025-12).
Data centers account for about 94% of PJM's projected peak-load growth between 2024 and 2030 (roughly +32 GW). — PJM 2025 Long-Term Load Forecast (2025-12).
PJM's capacity-auction price hit a record cap (~$333/MW-day) for the third auction in a row, and its market monitor attributed roughly 40% of those costs to data centers. — PJM Independent Market Monitor (Monitoring Analytics); Utility Dive (2025-07).
US data centers used about 4.4% of all US electricity in 2023, up from 1.9% in 2018. — LBNL / US DOE — 2024 United States Data Center Energy Usage Report (2024-12).
Data centers are projected to reach 6.7%–12% of total US electricity by 2028. — LBNL / US DOE — 2024 United States Data Center Energy Usage Report (2024-12).
What is "PJM" and its "capacity market"? (plain English)
PJM is the independent operator that runs the high-voltage power grid for 13 states and Washington, D.C. — including yours. Think of it as air-traffic control for electricity: it doesn't own power plants or your wires, but it makes sure enough electricity is flowing across the whole region every second of the day. The wholesale costs PJM sets get passed through your utility into your bill.
The capacity market is a separate, once-a-year auction PJM runs. Instead of paying for electricity you use, it pays power plants just to promise they'll be ready on the few hottest or coldest days when demand peaks. That promise is called "capacity." It's like paying a backup generator a retainer to stay on standby — you pay even in months you never need it.
Why it matters now: when PJM expects demand to jump, those standby payments spike. Demand is jumping largely because of data centers, and PJM's recent capacity auctions hit record highs three times in a row. Utilities pass that cost straight to customers — which is a big reason bills across all five states we cover are rising. Sources: PJM; PJM Independent Market Monitor (Monitoring Analytics).
Other reasons your Virginia bill may be high
Utility rate cases at the VA SCC
Beyond grid costs, utilities raise delivery rates through cases at the Virginia State Corporation Commission. We track them in plain English. See Virginia rate cases & utilities →
Common questions
- Why is my Virginia electric bill so high in 2025?
- Virginia residential electricity prices have risen 27% since 2019 — from about 12.07¢ to 15.28¢ per kWh. The biggest drivers are higher PJM grid costs (capacity prices hit record highs, largely from data-center demand), which flow into Dominion and Appalachian Power's regulated rates.
- Why did my electricity rate seem to double?
- In Virginia you can't choose a competitive supplier, so a true doubling is unusual — it's most often a big jump in usage (a heat wave, a new appliance) rather than the rate itself. Compare your kWh this month to the same month last year, which is printed on your bill.
- What is the standard electricity rate in Virginia right now?
- Your utility's standard rate is the regulated rate. If a supplier charges more than that, you're overpaying for the same electricity.
- What can I do about a high electric bill?
- You can't switch suppliers in Virginia, but you can watch the rate cases at the SCC (and sign up for alerts so an increase doesn't surprise you), file a public comment on a proposed increase, and reduce usage during peak periods. We track every Virginia rate case in plain English.
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