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PUC Will Conduct Hearing On Utility's Proposed Data Center Tariff That Includes Alternative Default Service Procurement, Minimum Stay
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An Administrative Law Judge at the Public Utilities Commission of Ohio has ordered that a hearing shall be held on AEP Ohio's proposed data center tariff which includes, among other things, a proposal for a separate default service procurement for data centers, and a minimum stay for customers on such separate default service
Although AEP Ohio's original filing had contemplated that a hearing would be held, with AEP Ohio proposing a hearing date and related schedule, a hearing is not required for tariff approvals, and in reply comments concerning the tariff, AEP Ohio had said that, "the Commission should either grant the Company’s
Application or issue a procedural schedule to conduct a hearing."
The ALJ ordered that an evidentiary hearing shall begin on September 30, 2024. Intervenor testimony is due on August 15, 2024
As more fully described in our prior story here, AEP Ohio is proposing a Data Center Power Tariff (Schedule DCP) that would be applicable to data centers with monthly demand of more than 25 MW, applicable to both new centers as well as expansions of existing load. AEP Ohio is also proposing a Mobile Data Center/Flexible Load Tariff (Schedule MDC/FLT) that would be applicable to Mobile Data Centers with monthly demand that is greater than 1 MW, applicable to both new centers as well as expansions of existing load
As applicable to the retail market, AEP Ohio proposes that customers receiving service under both of the proposed tariffs noted above may select competitive supply service from a retail supplier (CRES), or be supplied by AEP Ohio, either under a special Standard Offer Service (SSO) applicable to data center customers ("Data Center SSO"), or through PJM market purchases
For customers served under Schedule DCP, or under Schedule MDC/FLT and the customer is also above 25,000 kW monthly demand (collectively, "Data Center SSO Customers"), who do not select a CRES provider, AEP Ohio proposes to conduct a separate SSO auction for such customers ("Data Center SSO Auction").
The Data Center SSO Auction would, via RFP, seek six-months of full requirements supply for applicable customers for the following terms: June 1 through November 30 and/or December 1 through May 31
A Data Center SSO Customer would be served through PJM market purchases until such time as the supply under the Data Center SSO Auction begins (either due to the data center commencing operations before the Data Center SSO delivery terms' hard-start dates of June 1 and December 1, or because an auction was not successful in procuring supplies)
Once placed on the Data Center SSO, a Data Center SSO Customer would be required to remain on the Data Center SSO for six months. For a Data Center SSO Customer to switch to a retail supplier, the Data Center SSO Customer would be required to provide notice at least 60 days before the end of the six-month Data Center SSO term. Failure to provide such notice would trigger a further six-month minimum stay under the following six-month Data Center SSO term
Retail suppliers have generally opposed the separate data center SSO procurement as unsupported, and particularly objected to AEP Ohio providing generation service itself (such as via PJM market purchases) as well as to a minimum stay for data center customers on the Data Center SSO
In its initial comments on the tariff, Interstate Gas Supply proposed that, to the extent a backstop is needed to serve data center customers who do not have a retail supplier and PUCO sees the need for an alternative so as to not disrupt the standard SSO, then PUCO should rely on retail suppliers to serve data center customers who haven't yet chosen a retail supplier
IGS Energy proposes that data center customers without a retail supplier would be referred to a retail
supplier that is: (1) registered with AEP, (2) willing to take on the load, and (3) which has a monthly rate
available for the data center customers.
"This referral program would eliminate the need
for both a separate auction to choose a supplier and a minimum stay that restricts the
customer from shopping for six month," IGS Energy said
Case No. 24-508-EL-ATA
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CRES Provider Proposes That Retail Suppliers Serve As Backstop For Data Center Customers
July 11, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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