Electricity Tariff Debate Heats Up as AEP Ohio Faces Scrutiny Over Data Center Policy

COLUMBUS, OH – January 10, 2025 — The Public Utilities Commission of Ohio (PUCO) remains at the center of a high-stakes energy debate as it continues hearings on AEP Ohio’s proposed electricity tariff for data centers—an initiative that has drawn mounting criticism and raised questions about grid access, transparency, and future costs for Ohio ratepayers.

At the heart of the controversy is AEP Ohio’s self-imposed, and notably unapproved, moratorium on new data center developments—a move that surprised many and sent ripples through Ohio’s economic development community. Critics argue the utility is attempting to pick winners and losers in its service territory despite its legal obligation to provide non-discriminatory access to all customers.

Recent testimony complicated AEP’s position further, revealing that the company does indeed possess sufficient electric capacity to support new data center projects in certain parts of Ohio. This contradicts the utility’s earlier rationale for halting expansion and has fueled concerns that the moratorium may be driven more by internal policy than by actual system limitations.

The proposed tariff has drawn sharp attention from energy policy analysts and business leaders alike, who warn that its approval could shift billions in unnecessary infrastructure costs onto other customers—including manufacturers, small businesses, and residential users.

As data center development becomes a national priority—especially following President-elect Trump’s recent announcement of multi-billion-dollar private investments into American data infrastructure—Ohio finds itself at a crossroads. The outcome of this case could set precedent not only for other utilities across the state, but for energy regulators nationwide.

PUCO’s ultimate decision is expected to have far-reaching implications for Ohio’s competitiveness, especially as industries increasingly rely on data processing and reliable, affordable energy to fuel growth. Observers say that how the state handles this issue will signal whether Ohio remains open for business—or risks becoming a cautionary tale.

An Amazon data center in New Albany, Ohio.