GAHANNA,
Ohio, May 13, 2024 /PRNewswire/ -- AEP
Ohio, an American Electric Power (Nasdaq: AEP) company, today filed
with the Public Utilities Commission of Ohio in docket 24-508-EL-ATA a proposal that
would create a new rate category for data center customers and
cryptocurrency mining/mobile data center operations.
The proposed rate structure would require new data centers with
loads greater than 25 megawatts (MW) and
cryptocurrency mining operations/mobile data centers
with loads greater than 1 MW to agree to meet certain requirements
before facilities are constructed to serve them.
"Demand for computing power from data centers, which require
enormous amounts of electricity, is being fueled by artificial
intelligence and other new technologies. AEP Ohio is seeing
unprecedented demand from data center customers, especially in the
Central Ohio area. While we see no
concerns serving current or new residential and existing commercial
or industrial customers, we need to ensure that the right long-term
investments are made to the electric grid," said Marc Reitter, AEP Ohio president and chief
operating officer. "We need accurate plans and solid commitments
from large data center customers so the right facilities are built
at the right time. This will help us keep Ohio open for business for all industries,
while making sure customers aren't paying for unused
infrastructure."
Under the proposal, data centers would be required to make a
10-year commitment to pay for a minimum of 90% of the energy they
say they need each month – even if they use less.
Data center development has rapidly expanded in AEP Ohio's
service territory, especially in the Central Ohio region. Electricity demand in
Central Ohio, driven largely by
data centers, is already expected to more than double by 2030
making demand in the region roughly equal to that of Manhattan. Adding additional large users will
require investment in new extra-high voltage transmission lines to
bring more power into the region. These lines can take 7-10 years
to plan and construct.
"AEP Ohio has helped the state of Ohio attract thousands of new jobs and
billions of dollars in investment because over the decades, AEP has
built an extensive network of transmission lines to deliver the
power these customers need," Reitter added. "This is one of the
reasons data center developers targeted Central Ohio, and they continue to request
large amounts of power. We need to ensure they can follow through
with their commitments as significant new investments are made to
serve them."
The new rate structure provides AEP Ohio and its customers with
the certainty needed to develop long-term plans and offers data
center and cryptocurrency mining customers a clear
understanding of their obligations as customers.
AEP Ohio is based in Gahanna,
Ohio, and is a unit of American Electric Power. AEP Ohio
provides electricity to 1.5 million customers. News and information
about AEP Ohio can be found at AEPOhio.com.
At American Electric Power, based in Columbus, Ohio, we understand that our
customers and communities depend on safe, reliable and affordable
power. Our nearly 17,000 employees operate and maintain more than
40,000 miles of transmission lines, the nation's largest electric
transmission system, and more than 225,000 miles of distribution
lines to deliver power to 5.6 million customers in 11 states. AEP
also is one of the nation's largest electricity producers with
approximately 29,000 megawatts of diverse generating capacity,
including nearly 6,000 megawatts of renewable energy. AEP is
investing $43 billion over the next
five years to make the electric grid cleaner and more reliable. We
are on track to reach an 80% reduction in carbon dioxide emissions
from 2005 levels by 2030 and have a goal to achieve net zero by
2045. AEP is recognized consistently for its focus on
sustainability, community engagement and inclusion. AEP's family of
companies includes utilities AEP Ohio, AEP Texas, Appalachian Power
(in Virginia and West Virginia), AEP Appalachian Power (in
Tennessee), Indiana Michigan
Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. For more
information, visit aep.com.
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SOURCE AEP Ohio