Columbus data centers could pay more under proposed rate hike for high-usage customers
Columbus Water and Power has submitted a proposed rate structure that would charge high-usage customers, including data centers, additional fees tied to capacity and demand. Officials say the plan is intended to prevent households and smaller businesses from bearing the cost of infrastructure needed by large electricity users, with a public hearing scheduled for Nov. 12.
Columbus Water and Power submitted a proposed rate structure to Columbus City Council by an Oct. 26 deadline. The plan would recover capacity costs through base usage rates, capacity fees and a high-demand surcharge for customers whose electricity demand spikes above normal levels. About 426 customers could qualify under the current model, including data centers that use large amounts of electricity and water.
Councilman Christopher White is supporting the initiative, arguing that high-volume users should pay an appropriate share of the system costs rather than shifting them to residents and small businesses. Deputy Director John Lee said the department is still evaluating the surcharge and expects to discuss it with potentially affected customers. A council public hearing on the proposed rates is scheduled for Nov. 12.