The Public Utilities Commission of Ohio (PUCO) has directed AEP Ohio, the state's wires-only transmission utility, to take further measures to protect ratepayers across the state from the impact of data centers on energy prices.

Earlier this month, PUCO granted AEP Ohio’s request to implement new protections for Ohio ratepayers.

The ruling will require data center companies to provide AEP Ohio with 180 days' notice before joining the grid. According to PUCO, the notice period will allow it to find enough energy to serve the data center through stand-alone auctions or quick purchases. The data center customer will be expected to cover all the costs associated with the new generation.

“Ohio is fully committed to protecting customers from added costs related to data center buildout,” PUCO chair Jenifer French said. “Today’s action builds upon the PUCO’s efforts to create separate rate classes for data center customers, and the commitments under the Ratepayer Protection Pledge.”

The new measures add to AEP Ohio’s already existing data center tariff, which was approved in July 2025. The tariff set a clear 25MW threshold for rate class applicability, with customers who fall into this designation required to cover a take-or-pay structure requiring payment for 85 percent of contracted capacity, regardless of actual consumption.

The impact of the tariff has already been noticeable, leading to the utility’s data center pipeline being slashed by more than half.

In addition to the rate class, last month, Ohio Governor Mike DeWine joined 22 other governors in signing President Trump’s voluntary Ratepayer Protection Pledge. The pledge, which now has more than 200 signatories, seeks to ensure that US ratepayers are not saddled with the costs associated with the buildout of AI data centers.

Ohio is one of the larger data center markets in the US, with more than 180 active facilities, most clustered around the city of Columbus.