State regulators on Wednesday signed off on an agreement struck between AEP Ohio and Intel to provide power to Intel’s $28 billion project in Licking County.
“Adequate and reliable electric service is a crucial component to Ohio’s manufacturing sector, as demonstrated by Intel’s historic investment in Ohio,” Jenifer French, chair of the Public Utilities Commission of Ohio, said in a statement.
AEP and Intel asked state regulators a month ago to approve the agreement the two sides reached in which AEP will provide up to 500 megawatts of electricity to the 1,000-acre site, an amount of power so vast that it is enough to run 450,000 homes.
The electricity will run the two factories and other operations around the plants in New Albany.
Neither company has said how much Intel will pay AEP for the electricity.
The companies made the filing under a provision in state law that allows for a “reasonable arrangement” that supports Intel’s investment and, along with it, promotes economic development and job growth in Ohio. In return, Intel pays a modified rate for electricity.