Ohio Data Center Tariff Could Shift $1.3 Billion in Grid Costs to Consumers, Manufacturers Warn

A new expert analysis warns that a proposed data center tariff by AES Ohio could burden Ohio manufacturers, small businesses, and residential ratepayers with over $1.3 billion in electrical grid upgrade costs. The report, filed by the Ohio Manufacturers’ Association Energy Group (OMAEG), contends that the tariff, marketed as customer protection, would instead shield monopoly utilities and tech companies by shifting massive infrastructure bills to everyday Ohioans.

The dispute centers on two large data center projects in AES Ohio's service territory, with an estimated $837.5 million in upfront infrastructure costs. Due to utilities recovering these investments with interest over decades, this balloons to a $2.77 billion revenue requirement for AES Ohio over 40 years. However, the proposed tariff would only obligate data centers to pay for 12 years, creating a significant financial gap for other customers. OMA President Ryan Augsburger stated that this constitutes a "cost shift dressed up as a tariff," arguing that "the customer that causes the cost should pay the cost."

While utilities often cite "minimum demand provisions," OMA's testimony asserts these do not prevent transmission costs from impacting other customer classes and can even worsen the problem by inflating load forecasts. With state lawmakers considering utility-backed data center legislation, OMAEG is urging the Public Utilities Commission of Ohio (PUCO) to reject the current proposal. The association recommends that tech companies be required to pay 100% of their supplemental transmission upgrades upfront. They also call for an independent analysis, cost-of-service studies, and technical workshops before any new rules are enacted, emphasizing that Ohio manufacturers seek fair enforcement of existing ratemaking principles.