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

Core Insights - AEP Ohio has received approval from the Public Utilities Commission of Ohio (PUCO) for a ruling that addresses the energy needs of the growing data center industry while ensuring that other customers are not burdened with the associated costs [1][2] Group 1: Ruling Details - The ruling allows AEP Ohio to implement enhanced financial obligations for data centers, requiring them to cover infrastructure costs necessary for their energy demands [2] - Large new data center customers must pay for at least 85% of their subscribed energy usage, regardless of actual consumption, to support infrastructure development [3] - A sliding scale is introduced for small and mid-sized data centers, providing them with more flexibility in meeting these financial obligations [3] Group 2: Implementation and Duration - The financial requirements will be enforced for a period of 12 years, which includes a 4-year ramp-up phase [4] - The ruling also facilitates the end of a moratorium on new data center agreements in Central Ohio, which was previously established to protect the grid and other customers [4] Group 3: Company Background - AEP Ohio serves 1.5 million customers across 61 counties and is a subsidiary of American Electric Power, which operates the largest electric transmission system in the U.S. [5][6] - American Electric Power is investing $43 billion over the next five years to enhance the electric grid's reliability and sustainability, aiming for an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 [6]