Ohio manufacturers wary of where data center tariff leaves Dayton-area electric customers
The Ohio Manufacturers Association is concerned that AES Ohio's proposed data center tariffs, as influenced by Public Utilities Commission of Ohio staff, will not fully cover the costs of grid upgrades required by data centers. They argue this will shift over $1.3 billion in costs to other customers, contradicting the tariff's intended purpose. AES Ohio maintains that existing customers are protected and benefit from new infrastructure.
The Ohio Manufacturers Association (OMA) has raised concerns with the Public Utilities Commission of Ohio (PUCO) regarding a proposed data center tariff by AES Ohio, fearing it will expose Dayton-area electric customers to higher costs. The OMA argues that the tariff, as proposed by PUCO staff, will not adequately cover the estimated $837.5 million in initial transmission project costs, which would lead to $2.77 billion in guaranteed revenue requirements for AES Ohio over time. The association calculates that the data centers would only provide about $1.4 billion in guaranteed transmission payments, leaving over $1.3 billion at risk for other customers.
David O’Neill, OMA spokesman, stated that a data center tariff should make data centers pay the full cost of grid upgrades they cause, asserting the current proposal fails to do so. Ryan Augsburger, OMA President, criticized the disparity between AES Ohio's 40 years of guaranteed recovery and data centers' 12-year payment obligation, calling it a "cost shift dressed up as a tariff."
In contrast, AES Ohio maintains that existing customers are protected from data center costs and benefit from the stronger, more reliable infrastructure that supports economic development. The utility claims that minimum load charges and term limits shield existing customers from incremental costs while ensuring large-load customers contribute to transmission costs.
The OMA is specifically monitoring two data center projects in AES Ohio's service territory, located in Piqua and near Marysville, and emphasizes that manufacturers seek fair ratemaking principles where the cost-causer bears the cost, rather than special treatment.