COLUMBUS, Ohio — AEP is giving something to get something in a settlement agreement signed by the Ohio Energy Group, Ohio Consumers’ Counsel, Walmart and the Ohio Partners for Affordable Energy.
In a late night filing Wednesday, the power company has shifted from requiring data centers pay 90% of the energy they say the need every month over a 10-year period, to paying 85% over a 12-year period.
The agreement, while supported by the Public Utilities Commission technical staff, has not been approved by the PUCO voting members. That is scheduled for next month.
“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. The agreement insulates our other customers – including residents, small businesses, manufacturers and other industries – from the impact of the necessary infrastructure improvements. Our goal throughout this process has been to provide customers with protections, while keeping Ohio an attractive place to run and grow a business. This proposal provides that balance and was developed with PUCO staff and consumer advocates. I'm grateful for the hard work of all of our stakeholders." said Marc Reitter, AEP Ohio president and chief operating officer.
Google, Meta, Amazon and Microsoft were not part of this latest settlement. They’ve argued against AEP’s increase in upfront costs.
The settlement, if approved, could set a national precedent that helps other states determine how to make tech firms pay for their growing energy consumption.
Data centers are set to more than double the power demand in AEP’s central Ohio region by 2030.
You can read the settlement agreement here.