CFC Vice President of Corporate Communications Charlie Gloeckner speaks with Rappahannock Electric Cooperative (REC) CEO John Hewa about how the unprecedented growth of data centers is reshaping electric cooperatives and redefining risk management. Hewa highlights unprecedented load forecasts—up to 20 GW of potential new requests in REC’s territory alone—while Virginia faces surging demand, constrained generation and rising transmission pressures. Due to these conditions, REC is pioneering a bold, highly structured approach to protect its legacy members while enabling economic development.
Hewa outlines REC’s dual‑track risk strategy: full cost‑protection on infrastructure through prepayments and securitized contracts and innovative market participation via new affiliate companies designed to isolate financial exposure and serve hyperscale customers directly through PJM. REC’s model also anticipates local generation partnerships with data centers, positioning cooperatives to remain central players rather than yielding ground to third‑party providers.
For cooperative leaders, Hewa’s recommendations are clear: move fast, educate your board, invest in legal and financial expertise early and prepare organizationally for a scale of projects unlike anything in traditional cooperative history. The conversation offers a forward‑looking blueprint for how cooperatives can manage risk, seize opportunity and remain indispensable partners in a rapidly evolving energy landscape.