AEP Ohio Partners to Bring $4.2B in New Electric Infrastructure in Appalachian Ohio Without Raising Customer Rates

The U.S. Department of Energy, SB Energy, and AEP Ohio have announced a multi-billion-dollar initiative to develop advanced digital and energy infrastructure in Appalachian Ohio. This investment, totaling $4.2 billion, is specifically earmarked for new 765-kilovolt (kV) electric transmission infrastructure. The primary goal is to support the development of a large 10-gigawatt data center campus planned for the former gaseous diffusion plant site in Piketon, Ohio. AEP Ohio anticipates power delivery to the site starting in 2029. A key aspect of this plan is SB Energy's commitment to fully fund the $4.2 billion transmission upgrades, aiming to prevent increased transmission rates for Ohio customers. Marc Reitter, AEP Ohio president, highlighted the unprecedented electricity demand growth in Ohio, driven largely by data centers, and expressed pride in the collaborative effort to foster economic development in Pike County and the broader Appalachian Ohio region. He emphasized that the new transmission facilities are crucial for powering the project and unlocking significant regional investment, all while protecting ratepayers from associated costs. AEP Ohio, a subsidiary of American Electric Power, is currently undertaking initial route planning for the transmission lines and intends to engage with local communities and landowners for feedback. The Ohio Power Siting Board will oversee the permitting process, which includes mandatory public input, environmental impact studies, and socioeconomic and land use analyses. Both AEP Ohio and SB Energy will provide further project details and their proposed cost-recovery approach to regulators and stakeholders through upcoming regulatory filings.