A national organization representing data centers is not happy with a decision state utility regulators made this week allowing AEP Ohio to charge the industry for power differently than other rate payers.
"We are very disappointed with the Public Utilities Commission of Ohio's decision to adopt AEP Ohio's proposed settlement agreement," said Lucas Fykes, the Data Center Coalition's director of energy policy.
The Public Utilities Commission of Ohio had two competing proposals: an agreement data centers supported and another backed by AEP Ohio and consumer groups.
The PUCO selected a plan that places more stringent, up-front costs on data centers like Amazon Web Services, Meta and Google.
The decision requires data center companies to enter long contracts and to pay for at least 85% of the energy they predict they will use.
Fykes said the industry shouldn't have been singled out. Supporters of the plan warn data centers use so much more energy than other industries, so they do need to be treated differently.
The Ohio Consumers' Counsel argued that without the protections, the data centers could push to add more power capacity and then abandon it if the market changes. The OCC reported that would shift the financial responsibility of the cost to build new transmission lines.
"The decision is a stark departure from solutions enacted in other key data center markets, and more consequentially, is a deviation from the long-established, sound ratemaking principles that have carried both Ohio and the nation through periods of electricity demand growth and flat demand," Fykes stated in an email. "The data center industry is committed to paying its full cost of service. DCC will continue to advocate for evidence-based solutions in Ohio and across the country that support data center development and advance an affordable and reliable electricity grid for all customers."
WOSU has asked the coalition to explain what more favorable solutions are being used in other markets and is waiting for a response.
Bill Michael, senior counsel for the Ohio Consumers' Counsel, said the plan forces the data centers to commit to have skin in the game in exchange for infrastructure investments.
