Consumer Council argues for protections from data center costs
Lawmakers in Ohio are considering House Bill 706 to protect consumers from potential costs associated with data center development and extraordinary electricity demand. The Ohio Consumers Council supports this bill, emphasizing the need for data centers to be responsible for infrastructure costs without burdening residential and small business customers. The bill aims to strengthen existing regulations by ensuring data centers secure long-term power agreements or dedicated generation.
The Ohio Consumers Counsel (OCC), represented by Maureen Willis, advocated for House Bill 706 (HB 706) before the Ohio House Energy Committee. The proposed legislation aims to establish protections for residential and small business consumers from the extraordinary electricity demands and potential cost shifts associated with the proliferation of data centers in Ohio. Willis emphasized the importance of balancing economic growth and innovation with safeguarding families against rising utility bills, especially after instances where utility infrastructure built for large customers resulted in costs being passed to consumers when demand decreased or projects were delayed.
HB 706 seeks to strengthen the Public Utilities Commission of Ohio's (PUCO) existing data center tariff by ensuring that data centers are responsible for the costs they generate. The OCC specifically highlighted that data centers, due to their size, constant usage, and need for dedicated substations and transmission upgrades, differ significantly from traditional industrial customers.
The OCC proposes further strengthening HB 706 by narrowing "grandfathering" provisions and requiring data centers to demonstrate how new demand will be met
—through long-term power purchase agreements, dedicated generation, storage, or demand flexibility
—without compromising affordability or reliability for existing consumers. The article notes that data centers have been proposed in locations like Lordstown and Yellow Creek Township in Columbiana County, and several "Valley communities" are pursuing data center moratoriums, though their long-term effectiveness could be challenged by state preemption laws, as seen with past fracking regulations.