REC announces the launch of Hyperscale Energy™ Services (HES), a new affiliate company established to provide power supply services to REC’s large data center customers.
Virginia continues to experience rapid growth in energy demand from high-load users, including data centers that drive local investment and innovation. HES was created to meet their specialized needs while ensuring REC’s core membership of over 182,000 connections continues to benefit from stable, reliable, and affordable electric service.
“Hyperscale Energy Services allows REC to maintain the integrity and strength of our cooperative system, while supporting and meeting our obligations for economic growth in our region,” said John Hewa, President and CEO of both REC and HES. “By establishing a dedicated affiliate structure, we are organizing the cooperative’s business so that data center customers are served efficiently and responsibly, with the goal of not shifting risk or cost to our other member-owners.”
As a regulated utility in the Commonwealth of Virginia, REC holds an obligation to serve all customers within its designated service territory — including data centers. Through Hyperscale Energy Services, REC is fulfilling that obligation in a way that supports regional growth while protecting the long-term interests of its cooperative membership. Under this business model, REC will provide the infrastructure for the local delivery system a¦ er the data centers prepay the costs. HES will serve as the entity that procures power for REC on behalf of these large customers in the wholesale power market, which at times can be volatile. The cooperative received approval from the State Corporation Commission (SCC) for the affiliate agreement with HES in February.
To further safeguard REC members, the Cooperative requires data center customers to pay upfront for REC infrastructure investments, ensuring that necessary system upgrades are funded by the users who drive them. In addition, REC recently filed a Large Power Dedicated Facilities (LP-DF) rate for approval from the SCC that ensures power delivery costs are fairly and transparently allocated to these large users.
“REC’s founding principles are based on meeting the needs of our member-owners,” Hewa added. “Hyperscale Energy Services strengthens that mission by ensuring that major new energy demands — like those from the thriving data center industry — are integrated responsibly, without compromising service for the families and small businesses that rely on us every day.”
In concert with Hyperscale Energy Services, REC can strategically manage infrastructure requirements, energy delivery and operational risk for high-demand commercial users — while preserving the cooperative’s long-term ability to serve its members with excellence. To learn more about Hyperscale Energy Services and its role in supporting energy innovation while preserving member value, visit hyperscale.energy.