County of Prince William | Occoquan District Supervisor Kenny Boddye
WOODBRIDGE, VA – At the June 23 Board of County Supervisors meeting, Occoquan District Supervisor Kenny Boddye introduced a directive to modernize Prince William County’s Consumer Utility Tax (CUT) by raising the cap for High Energy Use Facilities such as data centers, while eliminating the tax entirely for households.
Prince William County levies the CUT on both electricity and natural gas, but this directive focuses solely on electricity, reflecting the dramatic growth in large‑scale industrial power use over the last 25 years. The County last updated the CUT ordinance in 2001.
The current residential rate is $0.01509 per kWh, capped at $3 per month with a $1.40 minimum; the rate for commercial and industrial users is $0.013487 per kWh, capped at $100 with a $2.29 minimum.
Boddye’s directive instructs staff to evaluate significant increases to the $100 cap for commercial and industrial users consuming more than 5 megawatts per month. Staff will assess caps of $1,000, $5,000, $10,000, and $1,000,000 per meter, while keeping the current $100 cap for other businesses. He also directed staff to apply a portion of new revenue that would generate toward eliminating the residential CUT entirely, giving households immediate energy‑cost relief.
Boddye explained that as it stands today, a small diner and a data center pay the same $100 monthly maximum, despite vast differences in consumption. “Raising the cap for data centers recognizes the reality of today’s energy demands, allowing us to cut costs for households and keep local businesses competitive,” said Boddye.
He emphasize that higher CUT caps for large energy users also drive sustainability. “When major electricity users face realistic caps, they have strong incentives to reduce waste and invest in efficient technology,” he said. “That strengthens our grid and supports long‑term energy goals.”
“This continues my work to shift tax responsibility away from households and small businesses and toward the world’s wealthiest corporations,” Boddye added. “The Computers & Peripherals tax reform I championed was a strong start. Modernizing the Consumer Utility Tax cap for large energy users moves us even further in the right direction.”
Per Boddye’s directive, County staff will return in September with revenue projections, legal review, and analysis of impacts on commercial users. Government buildings, hospitals, religious institutions, and nonprofits remain exempt from the CUT under Virginia Law.