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Constellation Opposes Utilities' Proposed Data Center Tariff That Would Require Data Centers To Be Served By Competitive Retail Suppliers
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Constellation Energy Generation, LLC and Constellation NewEnergy, Inc.
(collectively "Constellation") have opposed a proposed data center tariff from the FirstEnergy Ohio utilities which would, as filed, require that data centers receive generation supply service from a competitive retail electric service (CRES) provider
The FirstEnergy Ohio EDCs' data center tariff (Schedule DCT) does not include any provisions related to default service, but the FirstEnergy Ohio EDCs have said that the EDCs will file another proposed tariff to govern the procurement of default service supplies for data centers whose retail provider defaults.
See background on the proposed data center tariff in ECM's prior story here
Constellation objected to the lack of availability of a form of a standard service offer (SSO) to data centers
Constellation said that, "Ohio law ... mandates the availability of the SSO to Ohio consumers as well and
does not limit its availability to just certain classes of customers."
Constellation said, "R.C. 4928.041. R.C.
4828.142(A)(1) mandates that the electric distribution utilities ('EDUs') establish a SSO price for
retail electric generation service that is delivered to the utility under a market-rate offer through a
competitive bidding process. The proposed tariff falls short on satisfying these legal requirements
because the tariff only allows the data center customers to be supplied by a CRES provider and
does not require that the SSO be provided if a supplier fails to provide retail electric generation
service to a customer."
"The Commission should require Schedule DCT to ensure that the SSO will be provided to
the data center customers upon a supplier’s default. The Commission should also require that the
tariff confirm the SSO, if provided to data center customers, will be procured through a competitive
bidding process," Constellation said
In separately filed comments, PUC of Ohio Staff generally supported the FirstEnergy EDCs' proposed data center tariff, subject to additional Staff recommendations to ensure that costs are not assigned to or shifted to other customers, with Staff's proposed changes not related to the SSO or generation service
In separately filed comments, the Retail Energy Supply Association (RESA) said that, "RESA generally supports the framework proposed by FirstEnergy and believes the
requirement to take service from a CRES provider is a critically important element of the
overall proposal."
RESA added, "FirstEnergy’s narrative discussion in support of the proposed tariff also indicates
that '[t]he Companies are preparing another application proposing terms for procuring
standard service offer supply for data centers whose CRES provider defaults.' RESA
looks forward to participating in that future proceeding to ensure that the competitive
market can continue providing retail electric generation service to all data center
customers and in a way that supports the competitive market framework without creating
undue risk premiums for other default service customers."
In separately filed comments, IGS Energy also supported FirstEnergy Ohio's proposed requirement that data center customers take
generation service from a CRES provider rather than from the SSO.
To the extent a default service is required for data centers, IGS Energy again proposed (as it has done at AEP Ohio) a market-based Supplier of Last Resort (SOLR) monthly referral program for data center customers who lack a generation supplier
The SOLR would exist as a product of
the retail energy market. Like other shopping customers, eligible data center customers would have the
opportunity to shop with a CRES provider and would also have access to detailed service rates that
would be presented in a standardized format from SOLRs who choose to participate in
the SOLR program and who are registered with FirstEnergy Ohio, IGS said
If the data center customer
does not select a SOLR, "the customer would go through a round robin process and be
assigned to a SOLR’s standard monthly rate product," IGS proposed
IGS also said that PUCO should require FirstEnergy Ohio to commit to
customer-level RBO [PJM Reliability Backstop Obligation] assignment for Schedule DCT [data center] accounts to ensure that PJM
Reliability Backstop Procurement costs are properly allocated to the Load Serving Entities
Case 26-697-EL-ATA
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August 7, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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