COLUMBUS, Ohio (WOWO) — Ohio regulators are ordering AEP Ohio to put additional protections in place for electric customers as the state’s rapidly expanding data center industry drives up demand for electricity. The Public Utilities Commission of Ohio approved AEP Ohio’s request for regulatory relief this week and ordered the utility to require data centers to provide at least 180 days’ notice before connecting to the company’s electric grid. The requirement is designed to give AEP Ohio time to secure enough additional electricity to serve large data center customers without shifting those costs onto the utility’s other customers. Under the new process, AEP Ohio can use the 180-day notice period to acquire additional electricity through stand-alone auctions or short-term purchases. PUCO said the data center customer will be responsible for the full cost of obtaining the additional power needed to serve its load. The move comes as Ohio experiences a major expansion in data center development. PUCO says the state is home to nearly 200 data centers, with roughly half located in central Ohio. Data centers require enormous amounts of electricity to operate computer servers and cooling systems. As more facilities connect to the grid, demand for generation capacity increases. That creates a challenge for utilities such as AEP Ohio, which are required to serve customers in their service territories but have limited ability under Ohio law to simply generate additional electricity whenever demand rises. When demand exceeds available supply, utilities can face higher generation costs. Those costs are passed along to customers through their electric bills, even though AEP Ohio does not profit from the generation charges. The issue has become increasingly important for residential customers in central Ohio. PUCO says Columbus-area residential electric bills were more than 7% higher in August 2026 than they were at the same point a year earlier. AEP Ohio previously reported that customers saw an average increase of about $27 per month during the summer of 2025, largely because of higher generation costs. AEP Ohio already has some protections in place for large data center customers according to WCMH. One existing tariff requires qualifying data centers to cover at least 80% of their energy costs. The latest PUCO action goes further by giving AEP Ohio additional time to plan for the electricity demands created by new data center projects. The 180-day notice requirement is intended to prevent a large customer from suddenly appearing on the grid and creating an immediate need for additional power that could affect the broader customer base. PUCO Chair Jenifer French said the state is focused on ensuring the growth of the data center industry does not translate into higher costs for other Ohio customers. “Ohio is fully committed to protecting customers from added costs related to data center buildout,” French said. She said the latest action builds on previous PUCO efforts to establish separate rate structures for data center customers and commitments made through the Ratepayer Protection Pledge. The pledge is a nonbinding commitment under which data centers and other entities agree to work toward covering the costs associated with their electricity use and minimizing the impact on other utility customers. AEP Ohio and Ohio Gov. Mike DeWine are among roughly 300 signatories to the pledge. The pledge was initially associated with data center companies but has since been expanded to include government entities and utility companies. While the pledge does not carry the force of law, state regulators say the latest AEP Ohio requirements are intended to create enforceable protections around the cost of serving large new loads. The issue is expected to remain significant as Ohio competes for additional data center investment. Supporters of the industry point to the economic development and construction activity that can come with large technology facilities. But the electricity required to operate those facilities has raised concerns about who should pay for new generation and grid costs. The latest PUCO order attempts to put more of that financial responsibility on the customers creating the additional demand. For AEP Ohio’s roughly 1.5 million customers, the goal is to prevent the costs associated with new data center development from being spread across the broader customer base. For data center developers, the 180-day requirement means projects will have to give the utility more advance notice before seeking to connect large amounts of new electrical load. The state says that advance planning will allow AEP Ohio to secure the electricity necessary to serve those facilities while making the data center customer responsible for the associated costs. As Ohio’s data center industry continues to grow, regulators are facing the challenge of balancing economic development with concerns over electricity supply and affordability. The latest order is intended to ensure that expansion of the state’s technology infrastructure does not leave ordinary electric customers paying the bill for the additional power required by some of the industry’s largest facilities. The post AEP Ohio Ordered to Protect Customers From Rising Energy Costs Linked to Data Centers appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less