PUCO sets process to protect AEP Ohio customers from potential data center energy costs

COLUMBUS, OHIO – Yesterday the Public Utilities Commission of Ohio (PUCO) issued an order directing AEP Ohio to implement measures to protect other customers from potentially being impacted from data center customers’ effects on energy prices.

“We continue to implement safeguards to ensure that other customers are not impacted by costs to serve large loads like data centers,” observed PUCO Chair Jenifer French. “Ohio is fully committed to protecting customers from added costs related to data center buildout. Today’s action builds upon the PUCO’s efforts to create separate rate classes for data center customers, and the commitments under the Ratepayer Protection Pledge.”

Read more about data centers and electricity in Ohio

Data center customers will be required to provide AEP Ohio with 180-day notice of their intent to return to default service, known as the Standard Service Offer (SSO). Upon receiving notice, AEP Ohio will procure energy to serve the customer through separate stand-alone auctions or spot-market purchases, with the entirety of the cost assigned to the data center customer. This ensures that the costs to serve the data center customer do not impact other customers also on AEP Ohio’s default rate.

Ohio law allows electricity and natural gas customers to choose their own energy supplier. In the event a customer does not choose its own energy supplier, the local utility (e.g. AEP Ohio) is required to provide this service. To do so, distribution utilities conduct wholesale auctions to serve the load of all customers not enrolled with a retail energy supplier, or their local government aggregation program.

Learn more about how default energy prices are set

A copy of yesterday’s finding and order is available on the PUCO website at PUCO.ohio.gov by clicking on the link to “Docketing Information System” and searching for case 26-113-EL-ATA.