PUCO issues safeguard from data center effects on AEP Ohio energy prices

The Public Utilities Commission of Ohio (PUCO) has issued an order mandating AEP Ohio implement new measures to shield residential and commercial customers from potential energy price increases caused by data center operations. PUCO Chair Jenifer French emphasized the commission's ongoing commitment to protecting consumers from costs associated with serving large loads. This action expands upon previous PUCO initiatives, including the establishment of distinct rate classes for data centers and adherence to the Ratepayer Protection Pledge.

Under the new directive, data center customers are now required to provide AEP Ohio with a 180-day notice should they intend to revert to the utility's default Standard Service Offer (SSO). Upon receiving such notification, AEP Ohio is instructed to secure the necessary energy for these customers through dedicated stand-alone auctions or spot-market purchases. This process ensures that the entire cost of serving these large data center loads is exclusively borne by the data center customer, thereby preventing any financial impact on other customers utilizing AEP Ohio's default rate.

The order operates within Ohio's existing energy framework, which permits electricity and natural gas customers to select their own energy suppliers. For customers who do not choose a retail supplier, the local utility, such as AEP Ohio, is obligated to provide default service. This is typically managed through wholesale auctions designed to meet the energy demands of all customers not enrolled with a retail energy provider or a local government aggregation program.