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PUC Allows Utility To Self-Serve, With PJM Spot Purchases, Data Center Load That Drops To Default Service Without Required 180-Day Notice, Under Interim Policy
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The PUC of Ohio has approved, at AEP Ohio, an interim approach to the return of data center customers to default service, which includes, if needed, AEP Ohio serving the returning load with PJM spot market purchases to the extent the data center load does not provide a 180-day required notice which is intended to allow a separate data center SSO procurement to occur
As discussed further below, PUCO stressed that its action is adopted on an interim basis, and is not meant to more broadly address issues related to data centers and the standard service offer, which remain pending at AEP Ohio, and which also continue to be outstanding issues on a statewide basis as well
On an interim basis, PUCO approved a tariff provision, for customers subject to AEP Ohio's data center tariff only, providing that data center customers shall provide 180 days advance notice to AEP
Ohio prior to returning to the SSO. These special SSO provisions won't apply to customers who are not subject to AEP Ohio's data center tariff
AEP Ohio has said that such 180-day notice will serve to provide adequate time to, "evaluate an appropriate and durable methodology for serving the data
center’s load on a going-forward basis -- whether through a dedicated SSO auction or another
Commission-approved mechanism."
PUCO did not rule on what form of SSO would apply to data centers returning to utility supply upon the expiration of the 180-day advance notice
PUCO did hold that data center customers
seeking to return to the SSO would pay the full cost of any procurement conducted by AEP
Ohio on their behalf
For data center load which returns to utility supply without 180 days' notice, AEP Ohio will serve the load itself (until a specific data center SSO procurement or other PUCO-directed procurement is run), and AEP Ohio will procure the necessary
supplies through PJM spot market purchases.
PUCO said that, "The Commission determines that this framework is sufficiently narrow to
address parties’ concerns about data center customers returning to the SSO and disrupting
other customers on the default SSO".
The Ohio Manufacturers’ Association Energy
Group and Constellation each separately raised concerns about AEP Ohio self-serving any data center load which returns to utility supply without 180 days' notice, arguing that self-serve of load by AEP Ohio, even through PJM market purchases, would impermissibly result in AEP Ohio providing generation service in violation of the restructuring statute
In response, PUCO said that, "the Commission is not persuaded by arguments that AEP Ohio’s
proposal is unlawful, as it does not involve the Company owning or operating generation
and does not involve the procurement for customers from its own resources".
PUCO, of the spot purchases, said as follows: "We also emphasize that this same process
occurs for short-term and balancing situations, albeit rare events."
Several competitive supply parties also raised concern with the 180-day notice required from data centers to return to an SSO (unless the load wishes to be served by spot purchases), and minimum stays generally. A policy that data center default service costs are not to be shifted to other customers inherently contemplates a minimum stay on data center default service to allow the recovery of such costs from the users of such default service
Of these concerns, PUCO said, "we
recognize parties’ concerns that the Interim Request could hinder the competitive market
with its 180-day notice period and the inherent implementation of a minimum stay involved
with that timeframe".
"However, at this time, we find that the Interim Principles, as outlined
by AEP Ohio, are sufficiently tailored for the unique circumstances occurring on the federal
and state level regarding data center customers’ load. Thus, the Interim Principles provide
an administratively efficient, albeit temporary, solution until a federal solution is reached," PUCO said
AEP Ohio had also requested the following relief on an interim basis: "If for some reason the RBA [PJM Reliability Backstop Auction] 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)."
PUCO did not specifically discuss the grant of this request in its order
Addressing all of AEP Ohio's sought interim relief, PUCO said, "Upon review of AEP Ohio’s Interim Principles and submitted comments, the
Commission finds the Company’s request on a temporary basis to be reasonable."
PUCO said as follows: "The Commission thus grants AEP Ohio’s request to implement its Interim
Request consistent with our discussion herein. AEP Ohio is directed to modify its DCT tariff
pages to reflect the Interim Request’s process as contemplated in this Finding and Order."
PUCO ordered, "That AEP Ohio’s request to implement its Interim Request be
granted consistent with this Finding and Order."
PUCO stressed that the interim relief granted to AEP Ohio, "should not be interpreted
as an indicator of the Commission’s long-term position on fair cost allocation for DCT [data center tariff]
customers."
Various parties have requested a statewide proceeding to address default service for data center
customers
Of such requests, PUCO said, "we find that this is not the proper time in this [AEP Ohio tariff] proceeding to
contemplate such efforts".
With the interim issues addressed, PUCO also directed that a further process be set to consider remaining issues concerning AEP Ohio's tariff for data center customer default service, including design, procurement, and the assignment of various PJM capacity obligations to data center customers (through their LSEs)
Case 26-0113-EL-ATA
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August 5, 2026
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Reporting by Paul Ring • ring@energychoicematters.com
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