POLICY: AEP Ohio touts ‘right-sized load’ as data center pipeline shrinks further under new tariff
- Utility has signed 5,642 MW of data center ESAs since new tariff took effect
- Pipeline reduced from 30 GW
- Total data center ESAs nearly 18 GW
AEP Ohio is telling regulators that its new data center tariff has successfully “right-sized” a once-swollen pipeline of speculative projects, cutting more than 30 GW of proposed load down to 5,642 MW of signed and financially committed agreements.
In a February 12 letter to the Public Utilities Commission of Ohio (PUCO), AEP Ohio said that after completing the four-step intake process under its Schedule DCT tariff, 5,642 MW of data center projects signed Electric Service Agreements (ESAs). Of that total, 4,842 MW is located in Central Ohio and 800 MW elsewhere in the service territory, with projected in-service dates by 2030.
The figure marks a sharp decline from the more than 30 GW of initial queue interest the utility had previously cited. When the tariff first took effect last summer, prospective developers submitted formal load study requests for 13,022.7 MW across 36 sites, including 9,807.7 MW in Central Ohio.
Under the DCT process, customers were required to submit load study requests within 45 days and pay a one-time fee, after which AEP conducted clustered studies, developed service plans and presented contracts requiring substantial financial commitments before signatures.
The company added that this modified load will now be used for PJM transmission planning.
The DCT tariff was approved by PUCO in July 2025 following intense debate.
As previously reported by NPM, the tariff targets hyperscale data centers exceeding 25 MW and requires a mandatory 12-year contract, a four-year ramp-up with escalating minimum demand charges, early termination penalties equal to three years of payments, and collateral equal to 50% of minimum charges unless strict credit standards are met.
The measure followed AEP’s 2023 moratorium on new data center interconnections, citing grid constraints and ballooning projections. Tech companies and the Data Center Coalition had pushed for shorter contracts and more flexible ramp provisions, but regulators sided with the utility’s stricter approach.
Prior to the tariff taking effect, AEP had already signed ESAs totaling 12,219 MW. Combined with the 5,642 MW secured under Schedule DCT, the utility now has 17,861 MW of data center load under agreement, though it said that total will continue to evolve as new requests are processed.
*This story was originally published exclusively for NPM subscribers.
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