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PUC Issues Order On Dueling Data Center Tariff Stipulations, Including Stipulation That Includes Proposed Changes To Default Service
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The PUC of Ohio has adopted, with modifications, a non-unanimous stipulation signed by AEP Ohio, Staff of the PUC of Ohio, the Ohio Consumers' Counsel, and several other parties which approves a modified version of AEP Ohio's new tariff applicable to data centers (the "10/23" stipulation)
In doing so, PUCO rejected an earlier stipulation (the "10/10 stipulation") proposed by several parties, including the Data Center Coalition, Amazon, Google, Microsoft, the Retail Energy Supply Association, Constellation, IGS Energy, and other parties.
Notably, the 10/23 stipulation, which was adopted with modifications, did not include any changes to the Standard Service Offer. AEP Ohio had originally proposed certain SSO changes in its initial data center tariff petition, but dropped these proposed changes in the 10/23 stipulation
In contrast, the 10/10 stipulation included a specific term providing that customers served under Schedule EIC (the 10/10 stipulation's proposed tariff for Electricity-Intensive Customers), and all other customers having an existing ESA [electric service agreement] with
Contract Capacity over 25 MW that are part of the 5,000 MW expansion currently
under an ESA, would not be eligible to "return" to the existing default SSO auction product.
However, signatories of the 10/10 stipulation have also described the 10/10 stipulation as creating a "separate SSO procurement" for the relevant large load customers, not explicitly limiting the discussion to service upon the "return" to utility supply.
In the initially proposed tariff, AEP Ohio had originally proposed a separate SSO for data center tariff customers. The structure of the 10/10 stipulation, which was said to modify, not replace, AEP Ohio's originally proposed tariff, suggests that the 10/10 stipulation still envisioned a separate SSO process and unique default service for EIC customers, though signatories have noted certain specifics remained to be developed
PUCO, summarizing PUCO Staff's recitation of the 10/10 stipulation's terms, said that, under the 10/10 stipulation, Schedule EIC customers and existing data center
customers over 25 MW would become ineligible for the current SSO and would be subject to a proposed
new default service program
See full details of the 10/23 and 10/10 stipulations in our prior stories linked below
10/23 Stipulation
10/10 Stipulation
In any case, PUCO rejected any changes to the current SSO in adopting the 10/23 stipulation with modifications, reiterating PUCO's precedent that significant SSO changes should be conducted on a statewide basis, not in a proceeding specific to a single utility
"[T]his proceeding is not appropriate to consider widespread
changes to the SSO," PUCO said
"The Commission recognizes the potential risk of large energy users,
such as data centers, migrating to and from the SSO; and we find that whether necessary
modification should be implemented is a decision best contemplated in a separate
proceeding in the future," PUCO said
"The Commission agrees that a proposal
to materially alter the SSO default process should be analyzed carefully by relevant
intervening parties, some of which are not parties to this proceeding, including the other
three EDUs in the state, and that a full evidentiary record on this topic alone, would be more
appropriate," PUCO said
In terms of the modifications PUCO made to the 10/23 stipulation as part of adopting the 10/23 stipulation, PUCO directed that AEP Ohio shall, upon the effective date of the new data center tariff (Schedule DCT), cease the current moratorium on data center service requests, and shall process the queue of customer service requests.
Additionally, PUCO modified the 10/23 Stipulation's collateral requirements such that the collateral requirements may be met by the data center
customer or the customer’s financial sponsor, so long as the sponsor is a co-signer on the
contract with AEP Ohio.
In adjudicating the competing stipulations, PUCO said that, "the 10/23 Stipulation benefits ratepayers and
the public interest, striking the better balance of various interests between the two
stipulations presented in this proceeding."
PUCO cited testimony from AEP Ohio that the EDC has signed ESAs and/or LOAs for new load to add 4,400 MW of load to central Ohio by 2030 and only 400 MW, or eight percent, of that anticipated load growth is from non-data center customers. Further, AEP Ohio testified that the utility has also received load requests of 30,000 MW from data center customers that have not yet signed an agreement
Citing AEP Ohio testimony, PUCO noted, "Based on a series of studies run by the AEP Ohio Transmission Planning organization, even a fraction of the anticipated 30,000 MW load would result in numerous overload and voltage violations throughout central Ohio."
PUCO said, "we deem that the Company has proven that
there is a real, pending transmission constraint concern that stems from data centers’
significant load growth, and that the 10/23 Stipulation is a proactive solution to address
these challenges."
PUCO said that the 10/10 Stipulation, "does not benefit all ratepayers and nor would it be in the public’s
interest to adopt such terms."
PUCO said that the 10/10 Stipulation, "offers too many opportunities for the energy-intensive data centers to avoid their
responsibility as the main cost-causers for the construction and integration of new AEP Ohio
transmission facilities."
PUCO found that the 10/10 stipulation, with its proposed tariff's applicability threshold of 50 MW (versus the lower 25 MW in the 10/23 stipulation), "allows data centers to avoid long-term contracts, exit fees, higher minimum demand
charges, and minimum load ramps."
In contrast, PUCO cited the benefits of the 10/23 stipulation as including, under the data center tariff, a minimum demand charge
not to exceed 85 percent of total contract capacity, established term limits, exit fees that total
a minimum of three years’ minimum charges, and a gradual ramp-up period
As more fully discussed in our prior story, the Data Center Tariff adopted under PUCO's order will apply to new data centers or expansions of existing data centers which are in excess of 25 MW
With respect to distributed generation at data centers, the adopted 10/23 settlement provides, "Consistent with Ohio Administrative Code Chapter 4901:1-22, Schedule DCT Customers shall enter into an interconnection agreement between the Company [AEP Ohio] and the Customer in advance of connecting any source of power other than the delivery point specified in the Contract. Emergency or backup generation that is not designed to operate in parallel with the Company’s system is not subject to the additional requirements in this section."
If a data center customer uses DG to offset its capacity requirements that would be established under the data center tariff, the adopted 10/23 stipulated tariff provides that, "equipment must be in place and maintained through the term of the Electric Service Agreement to instantaneously curtail load equal to or greater than the behind-the-meter generation output[.]"
The AEP Ohio Data Center Tariff adopted by PUCO includes provisions for collateral required by data centers, exit fees, and capacity re-assignment
Case No. 24-508-EL-ATA
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July 9, 2025
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Reporting by Paul Ring • ring@energychoicematters.com
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