AEP Ohio settlement calls for data centers to pay for majority use of energy they’ll use

AEP Ohio filed a proposed settlement agreement Oct. 23 with Ohio regulators to address the power needs of the state’s growing data center industry.

The agreement, which is subject to review and approval by the Public Utilities Commission of Ohio (PUCO), would require large new data center customers to pay for a minimum of 85 percent of the energy they say they need each month — even if they use less — to cover the cost of infrastructure needed to bring electricity to those facilities.

“Ohio’s economic success in bringing data centers to our state comes with immense demands for electricity, and we have to meet those efficiently and responsibly,” said Marc Reitter, AEP Ohio president and chief operating officer. “The agreement insulates our other customers — including residents, small businesses, manufacturers and other industries — from the impact of the necessary infrastructure improvements.”

PUCO staff, the Ohio Consumers’ Counsel (OCC), the Ohio Energy Group (OEG), Ohio Partners for Affordable Energy, and Walmart joined AEP Ohio in the filing.

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