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Choice Utility Seeks To Collaborate On Changes To Default Service For Large Load Customers, Citing PJM's Reliability Backstop Auction
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AEP Ohio is seeking changes to its default service program in light of proposed changes at PJM to blunt the impact of large load customers on the costs borne by other loads -- such through the initiation of a Reliability Backstop Auction (RBA) as directed by the PJM Board, and similar measures proposed by the National Energy Dominance Council within the White House and numerous governors in PJM states
See background on the PJM and governors/White House actions here here and here
AEP Ohio said in its filing that it is seeking a collaborative approach to modifying default service to address large load data center customers, with stakeholder engagement and workshops, but offered the following principles:
1) Data center customers should pay for the generation costs they are causing
during any period they rely on the Standard Service Offer (SSO).
2) Non-data center SSO customers should not pay for the generation costs
driven by data center customers.
3) CRES (Competitive Retail Electric Service) Providers should be the LSE that is assigned RBA costs for any
period of time they are supplying competitive generation service to the
underlying data center load; to the extent AEP Ohio is required to provide
SSO generation supply to data centers and is considered the LSE during
that period, the additional steps below should be followed.
4) Ideally, the multi-year RBA price would follow the data center MWs
being served -- from CRES provider to CRES provider or to the SSO (i.e.,
data centers that do not provide their own generation and, instead, elect to
rely on RBA generation resources should pay the resulting RBA price
assigned to the LSE for the full term of the generation commitment,
regardless of whether they shop and with whom they shop including any
period of relying on the SSO).
5) If for some reason the RBA price does not follow the data center customer
MWs when they return to the SSO, a separate procurement or auction
product should be procured for data center load being served by the SSO
(i.e., so that the data centers can pay the full price of their procurement
without impacting the regular SSO price).
6) Data center customers should provide 180 days advance notice to AEP
Ohio prior to returning to the SSO, in order to implement solutions being
provided in a timely manner.
7) If the data center does not provide sufficient advance notice before
returning to the SSO, spot market purchases will be made during any
period that a separate SSO auction/product can be conducted to serve data
center load.
Due to the speed at which PJM's and the governors' actions are progressing, AEP Ohio said that Principles #5-7 listed above, regarding the notice required for large loads to return to SSO and the pricing for such customers, should be implemented now on an interim basis
AEP Ohio said, "The Company is also concerned in the short term that the impending prospect of
the RBA and principles being finalized could impact shopping decisions and result in
some large load data centers returning to the SSO, thereby causing the SSO price to
increase in magnitude or volatility going forward."
Case 26-0113-EL-ATA
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Seeks Interim Measures Governing Pricing, Notice Requirements For Large Loads Returning To Default Service
February 6, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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