OH — Power Infrastructure Updated 2026-07-17

Ohio

PJM Natural Gas Data Center PPAs Queue Bottlenecks Transmission Constraints

Last updated: 2026-07-17 (local time).

1) Grid operator and market structure

2) Interconnection queue status and reforms

  • PJM queue reform status: PJM’s cycle-based generation interconnection reform remains the regional framework for generation projects serving Ohio load; PJM’s 2026 Ohio Select Committee testimony described “reformed queue” first-cycle results and additional large-load initiatives. PJM testimony to Ohio Select Committee, 2026-05-27
  • Large-load connection reforms: PJM and stakeholders advanced “connect-and-manage” work in March 2026 for data centers and other large loads. The framework would assign supply shortfalls to entities interconnecting new large-load customers until new generation catches up and could include emergency curtailment procedures. PJM Inside Lines, 2026-03-26
  • Expedited Interconnection Track approved: On June 9, FERC accepted PJM’s two-year EIT in Docket ER26-1563. Beginning with a July 31 effective date, PJM may advance up to 10 shovel-ready generation projects per year outside the normal cycle if they provide at least 250 MW of accredited capacity, have state siting support, and can enter service within three years. FERC, 2026-06-09 PJM effective-documents index, accessed 2026-07-17
  • Federal large-load show-cause proceeding: On June 18, FERC opened a Federal Power Act section 206 proceeding for PJM and its transmission owners, Docket EL26-67-000, requiring them to justify or reform tariff rules for large-load studies, transmission-cost allocation, co-location and behind-the-meter generation, flexible transmission service, and transparency. FERC also required a generation-adequacy informational report within 30 days. This was the opening of a proceeding, not a final tariff rule. FERC, 2026-06-18 FERC PJM docket index, 2026-06-18
  • AEP Ohio data-center queue process: AEP Ohio’s DCT process is mandatory for new data center service requests, with PowerClerk applications, load-study fees for requests >=25,000 kW, and target load-study completion within 45-60 days depending on regional transmission upgrade needs. AEP Ohio Data Center Tariff page, accessed 2026-06-10
  • AEP Ohio 2026 study tranche: After resolving the initial data center queue, AEP Ohio opened a 2026 study tranche beginning March 2, 2026, for applications received by Feb. 28, 2026; applications submitted after Feb. 28 are expected to begin load studies in October 2026. AEP Ohio Data Center Tariff page, accessed 2026-06-10
  • Data-center queue volume in Central Ohio: AEP’s initial post-tariff process reduced pre-tariff expressions of interest exceeding 30,000 MW to 13,022.7 MW of paid study requests and then to 5,642 MW of signed binding contracts under DCT as of Feb. 12, 2026; including 12,219 MW signed before the tariff, AEP reported 17,861 MW of contracted data center projects through 2035. AEP Ohio, 2026-02-13

3) Ratepayer protection mechanisms (PUCO/PUC dockets)

  • AEP Ohio Data Center Tariff (DCT) adopted: PUCO adopted AEP Ohio’s 2024 DCT settlement on July 9, 2025; the compliance tariff became effective July 23, 2025. AEP Ohio Data Center Tariff page, accessed 2026-06-10
  • Docket and tariff authority: AEP Ohio’s Schedule DCT was filed pursuant to PUCO Case No. 24-508-EL-ATA and applies to data centers above 25 MW. PUCO, 2025-07-09
  • Cost responsibility / contract structure: AEP says the tariff requires legal and financial commitments, including an exit fee and other financial safeguards, to reduce the risk that other customers pay for data center infrastructure if a project cancels or underuses reserved capacity. AEP Ohio, 2026-02-13
  • Supreme Court appeal: The Ohio Manufacturers’ Association Energy Group appealed the AEP tariff to the Ohio Supreme Court, arguing the tariff is discriminatory. Merits briefing concluded on March 24, and no merits decision had issued as of July 17. Supreme Court of Ohio, 2026-03-24
  • FirstEnergy proposed Schedule DCT: On June 12, Ohio Edison, Cleveland Electric Illuminating, and Toledo Edison filed the data-center-specific tariff PUCO had ordered. The proposal has no minimum-load threshold; it uses a ramped contract capacity plus a 10-year term, bills at the greater of actual demand or 85% of contract capacity, requires collateral, and excludes new data center load from FirstEnergy’s transmission-billing pilot. It was pending, not approved, as of July 17. Brakey Energy, 2026-07-01
  • AES Ohio proposed data center class: PUCO staff recommended a separate data center tariff in AES Ohio’s pending three-year rate-plan case. The recommendation remained contested and the case was still pending after July 9 and 16 public hearings; no final data center tariff had been adopted by July 17. Ohio Manufacturers’ Association, 2026-05-29 Office of the Ohio Consumers’ Counsel, accessed 2026-07-17
  • Statewide tariff legislation: HB 706 would create statewide minimum requirements for data center customers, including long-term service agreements, load-study and milestone standards, financial assurances, and limits on cost shifting. It remained in the House Energy Committee and was not enacted as of July 17. Ohio House HB 706 status, accessed 2026-07-17 Office of the Ohio Consumers’ Counsel, 2026-06-03

4) Generation adequacy: projects likely to serve data centers

  • On-site / behind-the-meter gas generation trend: OPSB reported in its 2025 recap that it had issued certificates for four behind-the-meter gas plants at central Ohio data center sites totaling 736 MW. PUCO 2025 End of Year Review, 2026-01-08
  • PowerConneX New Albany Energy Center (EdgeConneX): The City of New Albany reported the OPSB certificate for PowerConneX (Case No. 25-90-EL-BLN) issued July 22, 2025, with construction beginning in September 2025 and commercial operation targeted for late 2026. City of New Albany, accessed 2026-06-10
  • PowerConneX II New Albany Energy Center: EdgeConneX describes PowerConneX II as a 216 MW gas generation project filed with OPSB on June 25, 2025, Case No. 25-302-EL-BGN. EdgeConneX, accessed 2026-06-10
  • Pike County PORTS Technology Campus: DOE announced that SB Energy plans to build 10 GW of new power generation, including at least 9.2 GW of gas generation, to power 10 GW of data center development at the former Portsmouth Gaseous Diffusion Plant; SB Energy also committed to make excess generation and transmission capacity available to the grid. U.S. Department of Energy, 2026-03-20
  • Pike County first phase: Reporting from the March 20, 2026 groundbreaking said the first phase would include an 800 MW data center coming online in roughly two years, with SB Energy leading the project. WOUB Public Media, 2026-03-20
  • MARA / Long Ridge, Hannibal: MARA’s April 30 agreement to acquire the 505 MW Long Ridge combined-cycle gas plant and adjacent 1,600-plus-acre campus for about $1.5 billion would vertically integrate its existing co-located data center with generation. MARA reported 200 MW immediately available and a path to as much as 600 MW of AI/critical-IT load, with initial new capacity targeted for mid-2028; closing remained subject to regulatory approvals. MARA, 2026-04-30

5) Utility/RTO load forecasts that explicitly include data centers

  • PJM 2026 load forecast: PJM’s 2026 Long-Term Load Forecast lowered the near-term forecast relative to the 2025 forecast through 2032, but still projected RTO net energy load growth averaging 5.3% annually over 10 years and individual-zone annualized 10-year growth rates ranging from 0.1% to 8.8%. PJM 2026 Load Forecast Report, 2026-02
  • Ohio-serving zone growth: Policy Matters Ohio’s June 2026 HB 706 testimony cites PJM’s 2026 forecast for summer peak growth of 5.3% per year in the AEP zone and 5.2% in the AES/Dayton zone over the next decade, among the highest rates in PJM. Policy Matters Ohio, 2026-06-02
  • Load forecast accuracy review: PJM’s May 2026 Load Forecast Accuracy Report created a public review of large-load adjustments, including data-center-only monthly peak views and zone-level comparisons for AEP, ATSI, Dayton, and other zones. PJM Load Forecast Accuracy Report, 2026-05
  • AEP Ohio DCT planning link to PJM forecast: AEP Ohio states it will include Schedule DCT customer load in its PJM forecast and that any necessary transmission infrastructure will be constructed through PJM’s transmission planning process. AEP Ohio Data Center Tariff page, accessed 2026-06-10
  • Data-center tariff forecast critique: The Ohio Manufacturers’ Association argued in February 2026 that AEP Ohio’s DCT mechanics could increase PJM large-load forecasts by more than 40% per data center and raise infrastructure-cost signals. Ohio Manufacturers’ Association, 2026-02
  • FirstEnergy Ohio forecast: In an April 28 investor filing, FirstEnergy reported 900 MW of contracted Ohio data center demand in 2026, rising to 2,010 MW by 2031, plus a development pipeline of 1,965 MW by 2031 and 5,000 MW by 2035. The pipeline is not equivalent to binding load, but it indicates up to 7,005 MW of contracted-plus-pipeline Ohio demand by 2035. FirstEnergy SEC filing, 2026-04-28
  • 2028/2029 capacity auction: PJM’s July 14 auction procured 138,318 MW UCAP, or 149,182 MW including fixed-resource-requirement capacity, at the FERC-approved $325/MW-day price cap and an estimated $16.4 billion. It still fell 6,831 MW short of the reliability requirement for the second consecutive auction; PJM attributed the higher peak forecast in part to continued additions of large data center load and said it would file a backstop-procurement proposal in September. PJM, 2026-07-14

6) Behind-the-meter / co-location and direct supply arrangements

  • Behind-the-meter trend in Ohio: OPSB’s 2025 recap confirms multiple data-center-sited behind-the-meter gas plants totaling 736 MW, showing co-located generation is a material path for Ohio data center service. PUCO 2025 End of Year Review, 2026-01-08
  • Pike County co-development model: The SB Energy/SoftBank project pairs data center load with dedicated generation, transmission upgrades, excess capacity commitments, and a stated commitment that the developer pays for new power delivery infrastructure. U.S. Department of Energy, 2026-03-20
  • PJM “bring your own new generation” policy track: PJM’s Ohio Select Committee testimony described a “Bring Your Own New Generation” expedited interconnection track, reliability backstop procurement, and potential curtailment of data centers not bringing new generation. FERC accepted the EIT on June 9, while connect-and-manage, curtailment, and the reliability backstop remained separate proposals or stakeholder work at the July 17 cutoff. PJM testimony to Ohio Select Committee, 2026-05-27 FERC, 2026-06-09

7) Transmission constraints and upgrades affecting data center siting

  • Central Ohio queue and upgrade dependency: AEP Ohio’s DCT process ties new service timelines to load studies and whether regional transmission upgrades are needed, affecting in-service timing and siting feasibility. AEP Ohio Data Center Tariff page, accessed 2026-06-10
  • Pike County transmission upgrades: DOE states SB Energy and AEP Ohio plan $4.2 billion in new electrical transmission infrastructure in southern Ohio, with SB Energy committed to paying for that infrastructure. U.S. Department of Energy, 2026-03-20
  • Van Wert energy infrastructure: QTS says it will fund 100% of the energy infrastructure improvements necessary to support its Van Wert campus and that there will be no cost impact to existing AEP Ohio customers from those improvements. QTS / City of Van Wert, 2026-05-29
  • PJM state cost-allocation recommendations: PJM told Ohio lawmakers that states control retail cost allocation in utility tariffs and can allocate costs away from residential consumers and small businesses toward classes more directly driving supply-demand tightening, including data centers. PJM testimony to Ohio Select Committee, 2026-05-27
  • Federal cost-allocation review: FERC’s EL26-67 show-cause order placed PJM’s wholesale large-load study, transparency, and transmission-cost-allocation rules under formal review, overlapping with but not displacing PUCO’s retail tariff authority. FERC, 2026-06-18

Notes on sources and gaps

  • Direct PUCO docket PDFs: AEP DCT materials are referenced through PUCO/AEP tariff pages and Supreme Court filings; direct PUCO docket PDFs may require interactive access.
  • IRP updates: Ohio does not have a conventional vertically integrated IRP process comparable to regulated monopoly states; the relevant 2026 energy-policy developments found in this refresh are tariff, load-forecast, interconnection, and transmission-cost-allocation proceedings rather than utility IRP orders.