West Virginia Ratepayers to Bear High Costs of Transmission Line
According to a report, West Virginia residents are likely to face substantial costs associated with a new interstate high-voltage transmission line intended for data centers.
The segment of the Mid-Atlantic Resiliency Link (MARL) being developed by NextEra Energy is projected to cost around $960 million. This figure significantly exceeds the $441 million that was previously approved by the regional transmission operator, PJM, in December 2023, as outlined in a Tuesday analysis from the Institute for Energy Economics and Financial Analysts (IEEFA).
The data provided by NextEra forms the crux of IEEFA’s findings, which suggest that electricity customers in West Virginia will ultimately shoulder the entire financial burden over the lifespan of the project, estimated at 40 years.
IEEFA has increased its projections, indicating that West Virginia energy consumers could be responsible for as much as $572 million—over three times its initial estimate of $185 million for 2025—even though NextEra does not have any customers in the state.
Furthermore, PJM anticipates that demand from data centers will continue through the early 2030s. This could lead to increased necessity for additional transmission lines, especially aimed at hotspots like Northern Virginia, according to the report. The economic implications for ratepayers are seen as significant.
NextEra has sought approval to build its section of the MARL line in West Virginia. However, it is worth noting that FirstEnergy is also tasked with constructing a different part of the project, but has yet to submit its application to the state, as reported.
Upon completion, this transmission line will span across Pennsylvania, West Virginia, Maryland, and Virginia before providing power to data centers in Northern Virginia.
A Politico poll from February indicates that the primary factors influencing public support for the data centers hinge on the additional costs expected for ratepayers and their locations relative to residential neighborhoods.
As of now, NextEra Energy has not yet responded to requests for comments.
