PUCO denies appeal, allowing AEP to charge data centers differently
This rendering shows the location of the new AIMR-2C, or Artificial Intelligence and Machine Learning Research Center Capability Project, adjacent to the main entrance of building 653 at Wright-Patterson Air Force Base, Dayton, Ohio. (Erica J Harrah/Air Force Research Laboratory)
American Electric Power can charge data centers differently for the power they use, thanks to a ruling by the Public Utilities Commission of Ohio.
In May 2024, American Electric Power sought approval for a tariff specific to data centers. The idea of a special tariff wasn’t necessarily a new one, as the electric provider has various tariffs for different entities, including automakers, churches, and schools.
In July, the Public Utilities Commission of Ohio approved a request that requires large new data center customers to pay for at least 85% of the energy they are subscribed to use. They would still be on the hook for the amount even if they actually use less.
The Public Utilities Commission of Ohio staff, the Ohio Consumers’ Counsel, the Ohio Energy Group and others joined AEP Ohio in support of the idea. The additional charge would cover the costs of infrastructure needed to bring electricity to those facilities, AEP said in a July release.
AEP “demonstrated in the record that within the next five years, AEP Ohio grid’s reliability and stability—including voltage outages and violations—will be challenged by an influx of data centers, which involves upwards of an additional 30,000 MW added to the grid by 2030,” PUCO said in its July ruling. “As such, any arrangement assigning less than the proper share of costs on these data center parties that could disrupt the Ohio grid would be in direct contradiction of cost causation.”
Unsurprisingly, AEP lauded the ruling, saying it was necessary to keep up with growing energy demand, which is already under pressure.
“We are glad the PUCO agrees that it is critical to align data centers’ demand for energy with the infrastructure costs needed to support their growth in Ohio,” Marc Reitter, AEP Ohio president and chief operating officer, said in a release at the time. “This infrastructure will support Ohio’s growing tech sector and help secure America’s data storage and processing facilities here in the U.S.”
However, the Data Center Coalition, Ohio Blockchain Council, Ohio Manufacturers’ Association Energy Group, One Power Company, and Amazon Data Services filed an appeal for a rehearing.
“The Commission finds that several arguments are nearly identical to those raised in post-hearing briefing and that the applications for rehearing do not identify any error demonstrating that our prior consideration of this matter was inadequate, against the manifest weight of the evidence, or otherwise unlawful and unreasonable,” PUCO said in its ruling, handed down last week.
The Ohio Capital Journal reported that the Ohio Consumer’s Counsel, in a press release, lauded the commission for making data centers “pay their own way.”
