Ohio utility regulatory policy changes

The Public Utilities Commission of Ohio (PUCO) has implemented several regulatory measures affecting utility costs and litigation processes.

In early August, PUCO ordered AEP Ohio to establish safeguards to prevent data-center customers from increasing energy prices for other ratepayers. Under this order, data-center users must provide a 180-day notice before reverting to the Standard Service Offer. To protect other customers, AEP Ohio will procure electricity for these large loads through separate auctions or spot-market purchases, with the full cost charged directly to the data-center customer. PUCO Chair Jenifer French stated the commission is committed to “protecting customers from added costs related to data-center buildout.”

Later in August, PUCO adopted new rules regarding how utility rate cases are litigated. These regulations include a 50-page cap on legal arguments, compressed deadlines for filing briefs, and a restriction on the cross-examination of utility witnesses to generally one hour per witness. The Office of the Ohio Consumers’ Counsel (OCC) opposed these changes, arguing they favor monopoly utilities and make it harder to challenge rate hikes by limiting the ability of advocates to present complex evidence.