AES Ohio settlement calls for 1% bill increase, stricter data center controls
A settlement in AES Ohio's electric distribution rate case proposes a 1% bill increase for customers starting in 2027. The agreement also classifies data centers as a separate customer class, requiring them to cover the full cost of transmission upgrades and a share of existing transmission costs. The settlement awaits approval from the Public Utilities Commission of Ohio.
AES Ohio, in collaboration with the Ohio Consumers' Counsel and the city of Dayton, has filed a settlement regarding its three-year electric distribution rate case. If approved, residential customers could see a 1% increase on their bills starting January 1, 2027. Under the proposed agreement, data centers will be reclassified as a distinct customer group, mandating that they pay the full expenses for any necessary transmission upgrades to serve their facilities, as well as contribute a "reasonable share of existing transmission costs."
Maureen Willis, agency director for the Office of the Ohio Consumers' Counsel, stated that the settlement protects residential consumers by limiting rate increases and ensuring data centers bear their fair share of infrastructure costs. AES Ohio President Tom Raga emphasized the agreement as an important milestone reflecting constructive collaboration and accountability. The settlement still requires approval from the Public Utilities Commission of Ohio (PUCO), with an evidentiary hearing scheduled for August 4 in Columbus. Public hearings held in Dayton earlier in July saw numerous residents express outrage over rising electricity costs.