Appalachian Power says other customers are not expected to pay for the $264 million in grid upgrades for Google's Botetourt data center
Appalachian PowerElectric utility serving Google's data center campus in Botetourt County, Virginia, in a statement to Cardinal News
Appalachian Power said the revenue from Google's new load at its Botetourt County data center campus is expected to cover the cost of the transmission line and substation upgrades, which it estimates at $264 million, so other customers are not expected to pay more.
“In this case, the project adds a large new customer load, which is expected to bring in enough additional revenue to cover the cost of the transmission line and substation upgrades. Because the added revenue is expected to offset those costs, other customers are not expected to pay more because of this work”
Reporting
Where this statement fits
Should Google have to pay the full cost of shared grid upgrades its data centers trigger?
On January 12, 2026, Google told Senators Elizabeth Warren, Chris Van Hollen and Richard Blumenthal that it pays for all the electricity its data centers use and that it, not local residents, pays for new grid infrastructure required for its growth. On January 22, Warren said that paying an electricity bill is different from fully covering the infrastructure upgrade costs of Google's data centers. An October 2026 report by the three senators said the companies, including Google, commit to paying for infrastructure that serves only their facilities but not the full cost of wider network upgrades. In June 2026, testimony filed for Google in a Virginia utility case recommended letting large customers voluntarily pay the full upfront cost of the substations that serve them. On July 31, Virginia regulators ordered Dominion Energy to develop a policy assigning data centers the cost of the transmission that connects them, and Appalachian Power says revenue from Google's new load in Botetourt County will cover $264 million in upgrades. The dispute is over whether Google should pay the full cost of the shared grid upgrades its data centers trigger, rather than leaving part of that cost with other customers.
Source and context
Reporting
About this source
Cardinal News report on Appalachian Power's application to the Virginia State Corporation Commission for grid upgrades to serve Google's data center campus in Botetourt County, including a statement from the utility.
Before the quotation
Cardinal News reported that Appalachian Power's September 4 application to the Virginia State Corporation Commission estimates that upgrading transmission lines and substations to serve Google's data center campus at the Botetourt Center at Greenfield will cost $264 million, and puts Google's peak demand at about 300 megawatts. The utility's statement opens: "At a high level, customer rates are based on the cost of providing service and the amount of electricity customers use".
After the quotation
Cardinal News adds that Appalachian Power recovers some of its other transmission investments through a charge on customers' monthly bills of nearly $400 million a year, and that its application cited the White House Ratepayer Protection Pledge.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The case asks whether Google should pay the full cost of the shared grid upgrades its data centers trigger, rather than leaving part of that cost with other customers. Appalachian Power says Google's added load "is expected to bring in enough additional revenue to cover the cost" of the upgrades, so that "other customers are not expected to pay more because of this work". That denies that the Botetourt upgrades will leave costs with other customers, so we labeled it Denied. The closest competing label is Defended or excused; it loses because the utility does not argue that shifting the cost would be acceptable, only that it is not expected to happen.
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- Appalachian Power says other customers are not expected to pay for the $264 million in grid upgrades for Google's Botetourt data center
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The Dispute Index. "Appalachian Power says other customers are not expected to pay for the $264 million in grid upgrades for Google's Botetourt data center". First published: 2026-10-11. Last updated: 2026-10-11. https://disputeindex.com/events/5580-appalachian-power-said-the-revenue-from-google-s