AEP Ohio Proposal on Data Centers to Protect Ohio Consumers Adopted by PUCO

Rhea-AI Summary

AEP Ohio (Nasdaq: AEP) has received approval from the Public Utilities Commission of Ohio (PUCO) for its proposal regarding data center energy requirements. The ruling establishes new financial obligations for data centers to support necessary infrastructure costs.

Under the approved plan, large data centers must pay for 85% of their subscribed energy capacity regardless of actual usage. The requirements will be in place for 12 years, including a 4-year ramp-up period. The plan includes a sliding scale for smaller facilities and requires proof of financial viability from data center owners. The agreement also outlines a process to end the moratorium on new Central Ohio data center agreements.

Positive

• None.

Negative

• 12-year commitment period may limit flexibility for future adjustments
• Exit fees for project cancellation could deter some potential data center developments

GAHANNA, Ohio, July 9, 2025 /PRNewswire/ -- AEP Ohio today recognized a ruling by the Public Utilities Commission of Ohio that addresses the power needs of Ohio's growing data center industry while protecting AEP Ohio's other customers.

The ruling approves a request made by AEP Ohio in May 2024 to establish enhanced financial obligations that data centers must undertake to support infrastructure that serves them. The staff of the Public Utilities Commission of Ohio (PUCO), the Ohio Consumers' Counsel, the Ohio Energy Group and others had joined AEP Ohio in the filing. The financial requirements are designed to protect other customers from shouldering the costs of grid improvements required to meet data centers' energy demands.

"We are glad the PUCO agrees that it is critical to align data centers' demand for energy with the infrastructure costs needed to support their growth in Ohio," said Marc Reitter, AEP Ohio president and chief operating officer. "This infrastructure will support Ohio's growing tech sector and help secure America's data storage and processing facilities here in the U.S."

AEP Ohio's proposal approved today by the PUCO requires large new data center customers to pay for a minimum of 85% of the energy they are subscribed to use – even if they actually use less – to cover the costs of infrastructure needed to bring electricity to those facilities. The plan creates a sliding scale that allows small and mid-sized data centers more flexibility. It also requires data center owners to provide proof they are financially viable and able to meet those requirements. The terms also include an exit fee if a project is canceled or unable to meet the obligations over the term of the electric service agreement contract.

The requirements would be in place for 12 years, including a 4-year ramp-up period.

The agreement also outlines a process to end the moratorium on new Central Ohio data center agreements, which AEP Ohio had instituted to protect the grid and the company's other customers while the PUCO considered these new rules.

"I am grateful for the collaboration of all the parties involved in this filing, which ultimately brings clarity and certainty for infrastructure planning," Reitter said. "We are looking forward to ending the moratorium and continuing to support development of more data centers in our service territory."

AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. AEP Ohio provides electricity to 1.5 million customers across 61 counties. News and information about AEP Ohio can be found at AEPOhio.com.

At American Electric Power (Nasdaq: AEP), based in Columbus, Ohio, we understand that our customers and communities depend on safe, reliable and affordable power. Our nearly 17,000 employees operate and maintain more than 40,000 miles of transmission lines, the nation's largest electric transmission system, and more than 225,000 miles of distribution lines to deliver power to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 29,000 megawatts of diverse generating capacity, including nearly 6,000 megawatts of renewable energy. AEP is investing $43 billion over the next five years to make the electric grid cleaner and more reliable. We are on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and have a goal to achieve net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.

 

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SOURCE AEP Ohio

FAQ

What are the new requirements for data centers approved by PUCO for AEP Ohio?

Large data centers must pay for 85% of their subscribed energy capacity regardless of actual usage, with requirements lasting 12 years including a 4-year ramp-up period. The plan includes financial viability requirements and exit fees for early termination.

How will AEP Ohio's new data center policy protect regular customers?

The policy ensures data centers, not regular customers, bear the costs of infrastructure needed to support their operations by requiring minimum payment commitments and proof of financial viability.

When will AEP Ohio lift its moratorium on new Central Ohio data center agreements?

The approved agreement includes a process to end the moratorium, though specific timing was not disclosed in the announcement.

What is AEP Ohio's current customer base and service area?

AEP Ohio serves 1.5 million customers across 61 counties in Ohio.

What are AEP's renewable energy and carbon reduction goals?

AEP aims to achieve an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and reach net zero by 2045. The company currently has nearly 6,000 megawatts of renewable energy capacity.