AEP Ohio Ordered to Protect Customers From Rising Energy Costs Linked to Data Centers
Ohio regulators have ordered AEP Ohio to implement new protections for electric customers, requiring data centers to provide 180 days' notice before connecting to the grid. This measure aims to ensure data centers cover the full cost of their increased electricity demand, preventing these costs from being passed on to other utility customers amidst the state's rapid data center expansion.
The Public Utilities Commission of Ohio (PUCO) has issued an order requiring AEP Ohio to implement new measures designed to protect electric customers from rising energy costs linked to the state's burgeoning data center industry. This week, PUCO approved AEP Ohio's request for regulatory relief, mandating a 180-day notice period for data centers before they connect to the utility's electric grid.
This new requirement allows AEP Ohio sufficient time to procure additional electricity through auctions or short-term purchases, ensuring that the data center customer bears the full cost of the power needed for their operations. This initiative comes as Ohio experiences significant data center growth, with nearly 200 facilities statewide, approximately half located in central Ohio. Residential electric bills in the Columbus area reportedly saw an increase of over 7% in August 2026 compared to the previous year, partly due to higher generation costs.
PUCO Chair Jenifer French emphasized the state's commitment to shielding customers from costs associated with data center development. She stated that this action builds on previous efforts, including separate rate structures for data centers and the nonbinding Ratepayer Protection Pledge, which encourages entities, including data centers, to cover their electricity use costs. Ohio Governor Mike DeWine is among the approximately 300 signatories to this pledge. The latest order aims to establish enforceable protections, balancing economic development with concerns over electricity supply and affordability, ensuring that data centers' expansion does not unduly burden other electric customers.