What’s going on with your power bill and what Ohio’s candidates for governor will do about it
Ohio residents are facing rising utility bills, with data centers identified as a significant factor in increasing energy costs. Gubernatorial candidates Vivek Ramaswamy and Amy Acton have proposed different solutions, including potential moratoriums on data center development and various regulatory changes. State and federal entities are grappling with oversight gaps in transmission projects, which further contribute to consumer expenses.
Ohio utility bills are climbing, a key issue in the upcoming gubernatorial election, with data centers identified as a major contributor to higher energy costs across the state. The Public Utilities Commission of Ohio (PUCO) dashboard shows year-over-year electric bill increases in most metro areas.
Ohio Consumers’ Counsel Maureen Willis explained that data centers have significantly impacted PJM Interconnect’s annual reserve power auctions, contributing to $29.4 billion in higher capacity costs over four auctions. Willis also highlighted a regulatory gap in transmission projects, where the Federal Energy Regulatory Commission (FERC) and PJM lack rigorous review for prudence, need, or cost-effectiveness, leading to utilities passing on billions in expenses to consumers. The Ohio Consumers’ Counsel has filed a complaint with FERC regarding this issue, which remains unaddressed. Locally, PUCO rejected FirstEnergy’s request to reduce reliability standards after the utility billed ratepayers for grid modernization, a decision FirstEnergy has appealed.
Republican gubernatorial candidate Vivek Ramaswamy has proposed increasing energy supply, streamlining permitting, and an “Ohioans-first” data center pledge, including free power for nearby residents and reduced property taxes. He also promised an executive order banning data centers until new legislation can take effect, though experts like former PUCO commissioner Ashley Brown dismissed his plan as unrealistic. Democratic candidate Amy Acton proposes expanding access to affordable energy sources, overhauling PUCO membership, and expanding assistance programs. She also advocated for making data centers pay their own way, curbing tax incentives, and implementing a conditional moratorium on data centers, requiring them to use union labor on brownfields and abandon non-disclosure agreements.