Ohio PUCO Approves AEP Data Center Rates, Lifts Moratorium

The Public Utilities Commission of Ohio (PUCO) has approved new rate structures specifically for data centers served by AEP Ohio, ending the previous moratorium on connecting new data centers. The ruling requires large data centers to pay for at least 85% of their predicted monthly energy consumption, ensuring they contribute to the infrastructure costs necessary to support their significant power demands and protecting other customers from bearing these costs. This settlement, supported by AEP Ohio, the Ohio Consumers’ Counsel, and other stakeholders, also requires financial viability proof and collateral from data centers or their sponsors, with obligations lasting up to 12 years including a ramp-up period. The Data Center Coalition, representing companies like Google and Amazon, opposed the agreement, arguing it could deter investment by increasing costs and regulatory burdens. AEP Ohio emphasized that the new framework aligns energy demand with infrastructure investments, supporting Ohio’s growing tech sector and maintaining data storage capabilities in the U.S. The decision aims to balance protecting residential and small business customers from unfair cost burdens while allowing data centers to continue operating in Ohio.