Ohio Energy Regulators have determined that data centers will be subject to the new special rate class and will face penalties if they fail to meet their commitments. According to an article by Dan Gearino of Inside Climate News, the action is the result of a proposal by Columbus-based utility American Electric Power (AEP).
As Gearino explains, “the ruling recognizes that data centers pose different types of risk and increased risk,” the Ohio Utilities Commission said in its 5-0 decision. “The ruling attempts to prevent “very speculative” projects that agree on electricity use, but will never come to fruition. Currently, data centers need to pay at least 85% of the energy they sign up to sign up, regardless of their actual usage. “This provision will help cover the costs of building infrastructure that will help with new developments.”
Experts say these rules are necessary because they require grid updates that will ultimately be paid by all customers, whether or not the data center is actually built. “Ideally, regulations mean that some of the most speculative data center plans will not reach the stage where they will enter into power contracts with the utility, which will make AEPs easier to plan their future needs.”
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