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COLUMBUS, Ohio -- Ohio’s manufacturers are asking the state Supreme Court to reverse a decision that makes data centers pay more to connect to the electric grid. In their appeal, the Ohio Manufacturers’ Association Energy Group called American Electric Power’s new pricing plan a “flagrant and unlawful effort to discriminate against certain customers based on their end use of energy rather than the cost to serve them.” State regulators approved the plan, known as a tariff, earlier this year, with support from the Ohio Consumers’ Counsel, the Ohio Energy Group, and Ohio Partners for Affordable Energy. Gov. Mike DeWine also praised the order, saying it would protect regular Ohioans “from paying more than they should for new infrastructure.” But manufacturers see it differently. They say the ruling “greenlights utility discrimination and sets a precedent that could be used to hammer manufacturers and weaken Ohio’s economic edge.” “This fight isn’t about one rule,” OMA President Ryan Augsburger said in a statement. “It’s about fairness, justice, and restoring balance for the future of Ohio manufacturing.” Ohio’s energy crossroads The Public Utilities Commission decided in July that new data centers drawing 25 megawatts or more would cover 85% of their costs instead of the 60% for traditional industrial customers. OMA pushed for facilities drawing more than 50 megawatts at a single location, and only if the utility could prove there was a genuine strain on the transmission system. It argued that AEP failed to provide clear evidence that data centers were putting extra pressure on the grid. The PUCO disagreed. It chose the utility’s surcharge model and denied a rehearing request in September. No matter who wins this fight, the debate about who should pay for Ohio’s growing energy needs will continue. The Ohio Business Roundtable predicts the state’s electricity demand could grow by 50% over the next decade — not because there are more people, but because of the surge in data centers and new technology businesses. This summer, Ohioans saw their power bills jump by 10% to 15%, and experts say another increase could hit next year.
