The Virginia, Maryland & Delaware Association of Electric Cooperatives and the 13 Virginia electric cooperatives we represent congratulate Gov.-elect Abigail Spanberger, Lt. Gov.-elect Ghazala Hashmi, Attorney General-elect Jay Jones, and the newly elected members of the House of Delegates. Among the issues facing the 2026 General Assembly and the new administration are the unprecedented increase in demand for electricity, which is creating a strain on affordability and reliability. Gov.-elect Spanberger herself has recently noted that Virginia is facing both current and looming energy challenges. It is important that Virginia be proactive to minimize the potential for more serious reliability problems in the future.

Electricity demand continues to grow at an unprecedented pace, driven primarily by new large-load customers like hyperscale industrial projects and data centers, which serve our dependence on faster and more interactive computing and digital services.

Studies vary but show a concerning trend that electricity demand in Virginia is projected to more than double. PJM, our regional grid operator, estimates that Virginia demand will go from 23,000 megawatts to more than 46,000 megawatts by 2040. Virginia's Joint Legislative Audit and Review Commission, a legislative policy agency, published a report last year that indicates Virginia demand will reach 41,000 megawatts by 2040. Whatever the data source, the trend is clear.

Electric cooperatives are not-for-profit entities whose model powers economic development and opportunity across Virginia by distributing power to all those in our service territories. We are required by law to serve every home, business and facility in our territories. Over one million people living in homes and working in farms and businesses in Virginia are served by electric cooperatives. One out of every seven Virginians is a member of an electric cooperative. We must ensure there is always enough power available — and the infrastructure to deliver it — so members can count on reliable, affordable electricity every hour of every day.

Virginia’s success in attracting large commercial and industrial development creates jobs and economic growth throughout the commonwealth. Data centers have the potential to bring much-needed investment, revenue and jobs to localities, especially those that have historically been economically disadvantaged. However, without major new investments in generation, transmission and permitting reform, the nation could soon face a critical imbalance between rising demand and available supply, threatening both reliability and affordability.

The commonwealth imports the largest amount of energy of any state in the country, and we rely on a mix of nuclear, hydropower, coal, solar, wind, biomass and natural gas to provide power. Natural gas makes up just over half of Virginia’s total generation. Studies have shown that existing natural gas generation capacity will remain essential to ensure grid reliability through 2050.

Renewable energy sources play a key role in meeting our energy needs. Battery storage technology is needed but not yet widely available to keep the lights on without other types of generation. Traditional on-call power generation is still needed. It will take a balanced combination of all solutions over time to ensure power remains reliable now and for decades to come.

Removing barriers to building new generation within Virginia would help close the gap between supply and demand and reduce the need for costly new long-distance transmission lines to import power from other states. All cooperative member-owners share costs for those transmission projects. We agree with the governor-elect that investing more toward in-state, reliable generation will help keep energy affordable and strengthen grid reliability for communities across the commonwealth.

Virginia’s electric cooperatives are working every day to protect members and keep power reliable, affordable and environmentally responsible. We are focused on:

• Ensuring costs are distributed appropriately to allow our communities to harness the benefits of large-load users while protecting our current member-owners from large rate hikes.
• Removing barriers to new generation and battery storage projects to ensure an affordable and reliable grid.
• Helping member-owners manage energy use through efficiency programs and demand-response tools to reduce energy demand during peak-use periods.

Our association and its members look forward to being a resource for, and working with, the Spanberger administration, General Assembly and other stakeholders to strategically tackle these complex issues for the benefit of all Virginians.

Brian Mosier, CEO of the Virginia, Maryland & Delaware Association of Electric Cooperatives, a trade association representing 16 electric cooperatives in three states. Electric cooperatives are not-for-profit entities, owned by their members, which are tasked with providing reliable and affordable power to every home, farm and business in their service areas.