Power company’s data center tariffs before Ohio Supreme Court

The Supreme Court of Ohio is currently considering tariffs imposed by American Electric Power Ohio on data centers and cryptocoin mining operations. These tariffs are designed to offset the substantial energy demand and infrastructural stress that the industry places on the power grid. The Ohio Manufacturers’ Energy Group has formally appealed the Public Utilities Commission of Ohio’s approval of these tariffs, labeling the decision as “unjust, unreasonable, and unlawful.” The group argues that the tariffs, which include an 85% minimum energy demand charge over 12-year contract terms with associated exit penalties, are discriminatory. They contend that determinations about energy costs should be based on the end-use of consumers, rather than the specific industry. Some of the state's economists, including Aswin Prabhakar of the Buckeye Institute, support this perspective, cautioning that such tariffs could deter data centers from choosing Ohio, viewing them as a signal that the state's largest electric utility perceives promising customers as liabilities rather than opportunities. This framework, they argue, negatively impacts efficient pricing, grid reliability, and Ohio's competitive position for data center development.