The Public Utilities Commission of Ohio on July 9 issued an order directing AEP Ohio to file new tariffs applying to data centers.
The Commission adopted a settlement agreement reached by AEP Ohio, PUCO staff, Ohio Consumers’ Counsel and others.
The Commission said it recognized AEP Ohio is faced with unpreceded load growth that requires it to construct significant electric transmission infrastructure to serve data center customers in its territory.
In its order, the Commission noted the settlement safeguards other non-data center customers from cost-shifting risks of underused investments made to serve Ohio’s growing data center industry.
AEP Ohio is ordered to file updated tariffs and lift its moratorium on connecting new data centers as soon as possible. The order is available on the PUCO's website.
Case Background
On May 14, 2024 AEP Ohio filed an application requesting new tariffs related to data center customers.
On Oct. 10, 2024, a settlement agreement was filed by Microsoft, Data Center Coalition, Amazon Data Services, Google, Sidecat, Constellation Energy, Enchanted Rock, Interstate Gas Supply, Ohio Blockchain Council, Ohio Energy Leadership Council, Ohio Manufacturers’ Association Energy Group, One Power and the Retail Energy Supply Association.
On Oct. 23, 2024, a separate settlement agreement was filed by AEP Ohio, PUCO staff, Ohio Consumers’ Counsel, Ohio Energy Group, Walmart and Ohio Partners for Affordable Energy.
An evidentiary hearing took place in December 2024 and January 2025. A public hearing was held in Columbus on Jan. 3, 2025.
AMP, Buckeye Power Submitted Brief in Proceeding
Ohio-based AMP and Buckeye Power on February 28, 2025 submitted a joint post-hearing brief in the proceeding (24-0508-EL-ATA).
AMP is the nonprofit wholesale power supplier and services provider for more than 130 Members in the states of Indiana, Kentucky, Maryland, Michigan, Ohio, Pennsylvania, Virginia, West Virginia; as well as the Delaware Municipal Electric Corporation, a joint action agency with eight Delaware municipal members.
Buckeye Power provides power to the 24 Ohio-based electric cooperatives and Michigan-based Midwest Energy & Communications.
AMP and Buckeye Power said the brief was filed in support, with certain reservations, of the joint stipulation filed on October 23, 2024 (the “Customer Stipulation”), and in opposition to the joint stipulation filed on October 10, 2024 (the “Data Center Stipulation”).
“The Data Center Tariff proposed in the Customer Stipulation represents a reasonable, necessary solution for addressing the unique nature of data center load and the significant transmission cost shifting risks that data centers pose to Ohio retail customers, including the retail members of Ohio’s electric distribution cooperatives and AMP and Buckeye Power said.
More specifically, they noted, among other things, that the Customer Stipulation:
• Includes a demand ratchet that provides more protection against stranded transmission costs than the Data Center Stipulation;
• Provides better and clearer terms associated with the use of behind-the-meter generation;
• Provides stricter contract terms and exit fees that will help ensure that data centers meet their commitments; and
• Contains load substitution terms that are better detailed to avoid stranded costs.
While Buckeye and AMP said they supported the Customer Stipulation as creating necessary incentives to ensure transmission investment is “right-sized,” they also highlighted additional wholesale cost-shifting issues that they said remained unaddressed and said they reserved the right to pursue these issues in an appropriate venue.
