The state of Virginia is one of the first in the nation to align its broadband goals (universal access by 2028) with efforts to modernize its electrical infrastructure, bringing high-speed internet to rural communities. PEW reported that Virginia’s Utility Leverage Program launched as a pilot in 2019, and “provides a mechanism for investor-owned utilities to lease fiber capacity to ISPs in unserved areas” across the state.
The program focuses on the middle-mile connections, enabling ISPs and municipalities to build out the last-mile to homes and businesses that lack access. This approach also allows the Virginia Telecommunications Initiative, the state’s permanent grant program for last-mile connections, to fund more projects.
The state’s two major investor-owned power providers, Dominion Energy and Appalachian Power, participated in a pilot program to “increase scheduled fiber deployments that were part of already-planned smart grid modernization projects.” This strategy is the most cost-effective methodology for laying the middle-mile based on reports and feasibility studies conducted by the utilities.
From the pilot program, S.B. 1413/H.B. 2304 was enacted, allowing Dominion Energy and Appalachian Power to lease excess middle-mile capacity in unserved areas to private ISPs. The legislation prohibits electric providers from providing last-mile connections to consumers, removing the annual limit on project costs, and requiring that utilities begin construction within 18 months of project approval and submit yearly progress reports.
As a result of the trial, both Dominion and Appalachian Power have laid hundreds of miles of fiber in underserved areas of the state, partnering with various ISPs along the way. PEW reported that Virginia had connected 429,000 homes and businesses to high-speed internet since 2017, with 233,493 additional broadband connections required to achieve universal access.
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