Consumer Alert:
Data Center Costs – Who should pay the costs of serving these power-hungry consumers? 

Public Meeting: 10 a.m. January 3, 2025
PUCO Case: 24-0508-EL-ATA

Ohio’s electricity demand may be surging, if the growing number of massive data centers operated by tech giants like Amazon, Facebook, Google, and Microsoft commit to Ohio. These data centers, along with cryptocurrency mining operations, consume vast amounts of energy while contributing few local jobs. The Ohio Consumers' Counsel (OCC) is working to ensure that everyday Ohioans do not bear the costs required to meet this unprecedented demand.

The Public Utilities Commission of Ohio (PUCO) will hold a public hearing 10 a.m. Friday, January 3, 2025 to gather public input on proposals for how AEP will collect the costs of serving these data centers. The OCC is calling for the tech giants—whose operations are driving the demand for upgrades—to cover these costs, not Ohio’s residential utility customers.  While business growth is essential for Ohio’s economy, residential utility customers should not have to subsidize the utility investment needed to serve these consumers. 

There are two proposed settlements in this case:

• OCC-Supported Pro-Consumer Settlement: Has strong consumer protections to ensure data centers bear the full cost of service.
• Tech Giants' Pro-Industry Settlement: Proposes lowering the bill for data centers, with the costs passed on to other consumers, including residential consumers.

The five PUCO Commissioners will decide which path to take: protecting Ohio utility customers or catering to the needs of these multi-billion dollar corporations.

ADDITIONAL BACKGROUND:

Here are additional details on the competing settlements:

Settlement with Strong Consumer Protections:
In a unique collaboration, OCC has partnered with AEP and other stakeholders to craft a landmark agreement designed to protect utility consumers from bearing the costs of serving  power-hungry data centers. If approved by the PUCO Commissioners, this pro-consumer settlement will help shield consumers from unfair costs. Also signing this settlement were PUCO Staff, Ohio Partners for Affordable Energy, The Ohio Energy Group, and Walmart.

Link to OCC-supported settlement: https://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=5977c990-79bf-426a-94a8-e633637d3783

Settlement Favoring Tech Giants at Consumers' Expense:
A competing settlement, supported by a coalition of data centers led by Amazon, favors industry players like Amazon, Google, Microsoft, and Facebook. This pro-industry proposal would lower costs for these tech giants while shifting expenses to other consumers. Among its provisions are shorter contractual commitments for data centers, reduced exit fees, and lower demand charges for data centers.

Link to settlement supported by Amazon, Google, Facebook and others: https://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=b606099c-9ae1-4c0e-a79b-1bb039e8c0f4

ADDITIONAL LINKS: