#00225
Case study of
#00220 Create a large-load tariff class with minimum take, long contract term and exit fees
Implementer
Public Utilities Commission of Ohio, on application by AEP Ohio
Timeline
Since Jul 9, 2025
Location
Description
The Public Utilities Commission of Ohio approved a dedicated tariff for data centre customers on 9 July 2025. Customers at or above 25 MW must pay for at least 85% of contracted capacity regardless of actual consumption, over a 12-year minimum term with a four-year ramp, with exit fees equal to three years of minimum charges plus collateral and creditworthiness requirements. After the tariff took effect, AEP's large-load forecast fell by half — a take-or-pay obligation made speculative and duplicate interconnection requests expensive, and roughly half of the apparent demand evaporated once someone had to pay to hold a place in the queue. The instrument is a rate case requiring only regulatory approval, with no new legislation. Amazon, Google, Meta, Microsoft and the Ohio Manufacturers' Association opposed the tariff as discriminatory; the commission rejected rehearing and a state supreme court appeal was signalled.
Metrics
5Lessons learned
Sources
3Documented Jul 28, 2026