Utilities back House version of data-center bill but seek flexible contract language and clearer agency roles

Ken Nolan, a utility general manager testifying virtually, told the Senate Natural Resources & Energy Committee that his utility supports the House-passed H.727 data-center bill and the provision that large loads be served by retail providers rather than directly to transmission customers.

"We believe that the requirement for data centers to be served by retail service providers is...a key provision," Nolan said, adding that the bill's 20-megawatt threshold is appropriate for Vermont-scale planning.

Why it matters: H.727 would set a regulatory expectation about how large new electric loads (data centers and similar facilities) interconnect to Vermont's grid. Utility witnesses said retail connection better protects existing customers and makes it clearer how costs and system upgrades should be allocated.

Key utility recommendations and technical testimony:

- Threshold and contracts: Ken Nolan said 20 MW is a reasonable threshold for the bill. He asked that the equity-contract language allow flexibility for utilities so contracts can reflect each utility's circumstances rather than creating a prescriptive one-size-fits-all test for the PUC.

- Clear agency roles: Nolan requested the Department of Public Service report recommend clear delineation among the Public Utility Commission (PUC), the Agency of Natural Resources and the Land Use Review Board (Act 250/Act 238 interactions) to avoid blurred lines when large-load approvals overlap environmental and land-use reviews.

- GMP technical brief: A Green Mountain Power representative (identified in committee materials) said "size and location matters" and presented how interconnection studies escalate from distribution (roughly up to 5 MW) to subtransmission (~20 MW range) and then to bulk transmission (115 kV and above). GMP engineers said site capacity varies across the state; preliminary work suggests the Vermont Yankee site could accommodate substantially more load (preliminary estimate up to ~200 MW) because of existing transmission infrastructure, while more remote substations would be more constrained.

- Cost allocation and regulatory triggers: GMP explained that when interconnection requires system upgrades those costs are borne by the interconnecting customer and that regulatory filings (CPG/Act 238/Act 250 or section 248 filings) are typically triggered when physical changes to lines or substations are needed.

Committee concerns: Senators asked how data-center variability or short-duration training loads might affect small local systems and whether existing studies and CPG processes ensure the grid's reliability. GMP and witnesses said these are standard parts of the interconnection and CPG study process and that mitigations (larger wires, dynamic compensation, contractual demand profiles) can be required in those reviews.

What happened next: The committee heard the utility testimony and scheduled further data-center discussion in coming meetings, including follow-up on decommissioning and renewable market reports requested of the PUC. No final legislative action occurred at the hearing.

Representative quotes used with permission: "We support the bill...the requirement for data centers to be served by retail service providers is a key provision," (Ken Nolan). "Size and location matters," (Green Mountain Power representative).