Ohio lawmakers introduce bills to curb rising electric costs
Ohio lawmakers have introduced new bills aimed at capping rising energy costs for consumers, which are partly attributed to the proliferation of data centers in the state. One state bill proposes a one-year freeze on rate increases, while a federal bill would require states to consider new rate structures for large energy consumers like data centers. These efforts seek to address the financial burden on Ohioans without hindering data center growth necessary for AI and national security.
Ohio lawmakers are moving to address rising energy costs for consumers, with new state and federal legislation introduced this month. State Representative Desiree Tims (D-Dayton) put forward House Bill 970, which would prevent the Public Utilities Commission of Ohio (PUCO) from approving any new rate increases for a year and prohibit new 'riders' or additional charges on bills.
Simultaneously, U.S. Senator Jon Husted (R-Ohio) introduced the Ratepayer Protection Act, a federal bill requiring states to consider implementing standards and restrictions for connecting large projects, such as data centers, to the electrical grid. This comes as high electricity costs have become a major concern for Ohioans, with many linking the spikes to the nearly 200 data center projects in the state, which significantly increase energy demand. AEP Ohio, a utility provider, confirmed that increased demand from data centers has driven up generation costs, which are then passed on to consumers.
While H.B. 970 aims to temporarily pause rate hikes, it does not directly address the underlying demand from data centers. Senator Husted's bill, if passed, would give states and utilities boards two years to develop recommendations for restricting large energy users and offsetting costs for consumers, potentially by requiring them to pay for their own generation and transmission. These legislative efforts follow Gov. Mike DeWine's indefinite pause on Ohio’s tax exemptions for data centers and ongoing debates over new restrictions for major projects in the Statehouse.