COLUMBUS, OH (WOWO) AEP Ohio says a new data center tariff is working as intended, but critics argue the utility’s original power demand projections were overstated.

In an update to the Public Utilities Commission of Ohio, AEP said projected new data center demand dropped from 30,000 megawatts to about 5,700 megawatts after developers were required to make upfront financial commitments. To provide context, the company noted that peak demand for all Ohio customers has ranged between 8,000 and 10,500 megawatts in recent years.

Under the tariff, data center developers must agree to monthly minimum billing levels and face exit fees if they terminate contracts early. AEP said that when formal engineering studies and service plans were presented, only 5,642 megawatts worth of projects ultimately signed agreements. Combined with previously signed contracts, the company expects roughly 18,000 megawatts of projects to come online by 2035.

AEP Ohio President and COO Marc Reitter said the tariff is designed to protect existing ratepayers by ensuring infrastructure investments align with verified demand.

The Ohio Manufacturers Association disputes that characterization and is challenging the tariff before the Ohio Supreme Court. The group argues AEP’s 30,000-megawatt figure was speculative and not supported by evidence presented to regulators. OMA President Ryan Augsburger said reducing contract totals does not change what AEP reports to regional grid operator PJM Interconnection about future demand.

The dispute centers on whether ratepayers could end up funding infrastructure for projected demand that does not materialize. The case continues before s