Bill
SB 381
PUCO must approve data center interconnections via an independent forecast on grid impact, with costs borne by the data center and potential conditional approvals.
Title: Ohio Power Responsibility and Fairness Act
Purpose
- Require the Public Utilities Commission of Ohio (PUCO) to approve interconnection agreements before data centers can interconnect to Ohio’s electric grid.
- Establish a formal, Commission-led process to assess the grid impact and public-interest effects of large data-center interconnections.
Key Provisions and Changes
Definitions
- Data Center: A centralized facility primarily used for electronic information services (including cryptocurrency mining) with a monthly maximum demand > 25,000 kWh. Includes portable or relocatable load.
- Interconnection Service Provider: An electric distribution utility or a entity owning/controlling transmission facilities in Ohio.
- Interconnection Service: The physical connection of a facility to an interconnection provider’s system for power transfer.
- Electric Grid: Ohio’s generation, transmission, and distribution network.
- Commission: Public Utilities Commission of Ohio (PUCO).
Application and Approval Process
- Prohibition on formal interconnection applications: No one may apply for interconnection service for powering a data center until after they receive PUCO interconnection approval.
- Application forms: PUCO will prescribe the form for interconnection approval applications.
- Application fees: PUCO may assess fees to cover the cost of interconnection review.
Independent Forecast and Review
- PUCO must hire an independent entity to review the application and forecast the data center’s impact on the grid.
- Forecast scope includes:
- Electric utility rates, grid resiliency, resource adequacy
- Transmission constraints
- Risk of outages or load shedding during peak conditions
- Projected demand versus capacity over 5-year and 10-year horizons
- Forecaster access to data:
- May use data from regional transmission organizations (RTOs) and existing reliability metrics
- May request information from the applicant and interconnection service provider
- Confidential information may be protected; disclosure not required of proprietary data
- Cost of Forecast: Applicant bears full cost; PUCO may not approve an interconnection until this cost is paid.
PUCO Decision on Interconnection
- Within 60 days of receiving the forecast, PUCO must determine:
- If in public interest and does not degrade grid reliability or raise residential rates → approve interconnection (can proceed to interconnection with an service provider)
- If not in public interest, would degrade reliability, or raise residential rates → deny or issue a conditional approval
- Conditional approval: If granted, PUCO will specify issues to be addressed in the interconnection agreement.
Interconnection Agreements (Conditional Path)
- If conditional approval is issued, the applicant and interconnection service provider must submit to PUCO for review and approval before ratifying or entering the agreement.
- PUCO review of proposed interconnection agreements (to be judged against public interest, grid reliability, and residential rates impacts).
Post-Approval Terms
- If the agreement is approved, the parties may enter the interconnection agreement.
- If not approved, the applicant can modify terms per PUCO’s determinations and reapply.
Cost Responsibility and Infrastructure
- Any interconnection must allocate the owner of the data center the full cost of infrastructure changes necessary to:
- Facilitate interconnection
- Ensure grid reliability after interconnection
Rules and Administration
- PUCO may adopt rules to implement the act.
Effective Name
- The act is titled the Ohio Power Responsibility and Fairness Act.
Impact and Jurisdiction
- Data-center projects in Ohio will face a formal PUCO-led interconnection approval, independent forecasting, and potential cost-bearing requirements for grid-related infrastructure changes.
- Affects large-load data centers (25,000 kWh monthly demand or higher), including those engaging in cryptocurrency mining.
- Shifts interconnection decisions from market/utility processes to a regulated, commission-approved framework with explicit public-interest testing and reliability considerations.
Dates and Timeline
- Not specified in the introduced text beyond the process deadlines (e.g., forecast due within 270 days after selection, with possible 90-day extension).
- Overall process requires PUCO action before interconnection steps can proceed.
Notes
- The bill introduces a centralized, rigorous review to balance data-center growth with grid reliability and residential rate impacts.
- It allows for conditional approvals and iterative re-submission if initial agreements are found not to meet public-interest or reliability thresholds.
Compiled from official sources — confirm details with the bill’s official record.
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