West Virginia ratepayers are expected to pay the brunt of the doubling cost of an interstate high-voltage transmission line used to power data centers, according to a report.
The portion of the Mid-Atlantic Resiliency Link (MARL) being constructed by NextEra Energy is slated to cost $960 million — much higher than the $441 million approved by regional transmission operator PJM in December 2023, according to a Tuesday report by the Institute for Energy Economics and Financial Analysts (IEEFA).
The information provided by NextEra serves as the core of IEEFA’s analysis, which estimates that West Virginia electricity customers will pay the total cost burden over the project’s 40-year life. (RELATED: Federal Govt Finally Sells Vacant ‘ROB’ Building That’s Been Empty Since Biden Left Office)
STONE RIDGE, VIRGINIA – JULY 17: In an aerial view, an Amazon Web Services data center is shown situated near single-family homes on July 17, 2024 in Stone Ridge, Virginia. (Photo by Nathan Howard/Getty Images)
IEEFA believes West Virginia energy consumers will be expected to pay $572 million, or over three times IEEFA’s initial 2025 estimate of $185 million, despite NextEra having no customers in the state.
PJM plans for data center loads to stretch into the early 2030s, potentially resulting in an even higher demand for new transmission lines into data center hotspots like Northern Virginia, IEEFA report predicted. The group noted that ratepayers will likely bear the brunt of the costs.
Although NextEra has applied for a certificate to construct its portion of the MARL line through West Virginia, it is not alone. FirstEnergy is slated to build another portion of the project but it has not yet filed its application to the state, according to the report.
When finished, the line would pass through Pennsylvania, West Virginia, Maryland and Virginia before reaching data centers in Northern Virginia, according to IEEFA.
A February Politico poll shows that the biggest determinants of support for data centers rely on how much extra ratepayers would be expected to pay and the centers’ proximity to residential areas.
NextEra Energy has not responded to the Daily Caller’s request for comment as of publication.