Case Review: AEP Ohio Data Center Tariff
How the tariff converts requested capacity into load-ramp, minimum-demand, collateral, and exit obligations.
Current tariff structure
- • Schedule DCT applies to a data center with aggregate monthly maximum demand above 25,000 kW.
- • The load-ramp period can last up to four years.
- • The current ramp schedule states 50%, 65%, 80%, and 90% of contract capacity for years one through four.
- • The initial contract term is the load-ramp period plus eight years.
- • The tariff includes study fees, site-control requirements, collateral tests, cancellation obligations, and exit terms.
Model the minimum billing demand
During the load-ramp period, monthly billing demand cannot be less than 85% of the applicable load-ramp contract capacity. After the ramp, the tariff compares prior billing demand with a formula based on total contract capacity.
The formula changes across capacity bands and can aggregate affiliated new loads. Do not replace it with a single utilization assumption. Model the tariff text, the signed electric service agreement, and the actual ramp schedule.
Questions for underwriting
- • What contract capacity applies in each ramp month?
- • Which minimum-demand formula applies to the customer and its affiliates?
- • What charges continue if actual load is below billing demand?
- • What collateral, guarantee, or liquidity test applies?
- • Who pays if the project cancels or delays before energization?
- • Can capacity be reassigned, and what exit payment remains?
- • Which transmission upgrades can move the estimated service date?
Use the tariff as a dated contract input
The tariff changes the fixed-payment and exit-risk analysis for a covered project. It does not prove that the same terms apply in another utility territory, and it does not establish a national tariff trend. Record the tariff version, contract capacity, ramp, and utility service date beside the financial model.
Primary sources
This case review is not legal, tariff, engineering, or investment advice.