PUCO orders AEP Ohio to set protections for Ohioans against data center energy costs
The Public Utilities Commission of Ohio (PUCO) has ordered AEP Ohio to implement protections for customers against energy costs associated with data centers. This move aims to ensure that costs related to large data center energy use do not impact other customers' rates. Data centers will now need to provide a 180-day notice if they intend to return to default service, with AEP Ohio procuring energy for them through separate auctions, assigning all costs directly to the data centers.
The Public Utilities Commission of Ohio (PUCO) issued an order on Wednesday, mandating that AEP Ohio establish safeguards to protect its customers from the energy costs incurred by large data centers. PUCO Chair Jenifer French stated that these measures are crucial to prevent other customers from bearing the financial impact of serving high-load facilities like data centers. This action builds upon previous efforts to create distinct rate classes for data center customers and uphold the Ratepayer Protection Pledge.
The new order requires data centers to give AEP Ohio 180 days' notice before returning to default service or Standard Service Offer (SSO). Upon receiving such notification, AEP Ohio will procure the necessary energy for these customers through separate auctions or spot-market purchases. The entire cost of this energy acquisition will be borne by the data center, ensuring that it does not affect the default rates of other AEP Ohio customers. This initiative aligns with Ohio law, which allows electricity and natural gas customers to choose their energy supplier, but mandates local utilities to provide service if no alternative supplier is selected.