Utility Files To Require Data Centers To Take Service From A Competitive Retail Supplier

The FirstEnergy Ohio utilities have filed a proposed data center tariff that would, among other things, require data centers to take generation service from a competitive retail electric provider

The data center tariff would apply to data centers defined as, "a centralized facility used primarily or exclusively for electronic information services such as the management, storage, processing, and dissemination of electronic data and information through the use of computer systems, servers, networking equipment, and related components," including Mobile Data Centers unless specifically provided otherwise in the tariff

The data center tariff (Schedule DCT) provides that, "Customers receiving service under this Schedule shall select competitive service from a CRES Provider."

Schedule DCT does not include any provisions related to default service, but the FirstEnergy Ohio EDCs said that the EDCs will file another proposed tariff to govern the procurement of default service supplies for data centers whose retail provider defaults.

Under the tariff, the FirstEnergy Ohio EDCs and a data center customer would agree on an amount of monthly peak load requirements for each month (Contract Capacity). The tariff allows suspension of service, with Commission approval, if the customer exceeds contract capacity by more than 1,000 kW

Notably, the tariff provides that, with Commission approval, service to any Customer using behind-the-meter generation to serve some or all of its demand that elects not to offset its Contract Capacity with output from its behind-the-meter generation may be suspended by the EDC if Customer usage exceeds its Contract Capacity by more than 1,000 kW

"If the Customer elects to use its behind-the-meter generation to offset the Customer's Contract Capacity (either in initially establishing service or in the context of a subsequent load expansion or behind-the-meter generation expansion at the same site, as reflected in a new or updated Contract Capacity), the following requirements will apply. In order to ensure that the Customer's election does not result in it exceeding its Contract Capacity, 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, subject to the then-current technical requirements of the transmission provider. The Customer will be responsible for all costs of such equipment. If the equipment fails and results in the Customer exceeding its Contract Capacity, the Company [EDC] reserves the right to raise before the Commission any unresolved reliability or safety concerns based on the facts and circumstances presented at that time," the tariff provides

Schedule DCT includes a minimum billing demand of the higher of 85% of contract capacity or actual usage, which applies to all retail charges for the customer’s service voltage, including distribution and transmission

The tariff also addresses issues such as collateral requirements for new load, covering the cost to construct incremental transmission and distribution facilities , and exit fees