State regulators set to let AES Ohio increase rates, bill data centers differently
State utility regulators in Ohio are considering recommendations to increase electricity rates for AES Ohio customers, which would impact Dayton-area residents. The proposed plan also includes creating a new, separate rate class specifically for data centers to address their growing demand on the state's electric grid. An evidentiary hearing and public hearings are scheduled to gather feedback before a final decision.
Staff members for the Public Utilities Commission of Ohio (PUCO) have recommended approving rate increases for customers of AES Ohio, an electric company serving the Dayton area. If approved, the multi-year plan could raise some Dayton-area electric bills by $2.88 per month for households using 1,000 kilowatt-hours. The recommendations are not yet formally approved, with a 30-day period for companies and stakeholders to file comments, followed by an evidentiary hearing on August 4 and public hearings scheduled for the summer.
The staff report also proposes creating a separate rate class with specific tariffs for data centers, citing their massive demand on Ohio’s electric grid and a projection that national data center energy demand will nearly double between 2025 and 2028. This move is intended to proactively address potential problems and ensure safe, reliable, and affordable service for all customers, preventing issues seen in other service territories like AEP Ohio, which already has a similar data center tariff in place.
AES Ohio, formerly Dayton Power & Light, had initially filed for a “multi-year reliability plan” last October. Mary Ann Kabel, a spokeswoman for AES Ohio, stated the company is reviewing the PUCO staff report and will evaluate its recommendations as part of the ongoing regulatory process. The 383-page report details four new data center classes: secondary DCT, Primary DCT, Primary Substation DCT, and High Voltage DCT. The initiative comes amid concerns in southwest Ohio communities regarding the power and water demands of proposed data centers, which often receive tax breaks.