Ohio utility advocate seeks probe into data center electricity costs

The Ohio Consumers’ Counsel (OCC), a state consumer advocacy group, is urging the Public Utilities Commission of Ohio (PUCO) to conduct a full hearing and investigate concerns that data centers may be avoiding their fair share of electricity transmission costs, with these burdens potentially shifting to residential customers. This call follows PUCO's approval in March of increased transmission charges requested by AEP Ohio, which began affecting consumer bills in April, adding over $7.90 to the average monthly household bill. Maureen Willis, agency director of the OCC, expressed the group's concern for transparency and affordability, citing PUCO's own admission that cost shifting could be an issue. While PUCO staff decided to review the allocation process and monitor data center growth's impact, OCC believes this is insufficient and a full public hearing is necessary, especially as customers are already paying the increased rates. AEP Ohio, the utility involved, stated its commitment to protecting residential customers from data center growth costs, pointing to a data center tariff approved last summer. This tariff requires large data centers to pay for at least 85% of their contracted electricity capacity for up to 12 years. The OCC supports this tariff, but it is currently under appeal to the Ohio Supreme Court by the Ohio Manufacturers’ Association, which has labeled it "discriminatory." PUCO has 150 days to respond to the OCC's rehearing application, with a similar request pending for a case involving First Energy. The controversy highlights ongoing concerns about rising electricity costs for Ohio residents.