Schedule DCT
Upon approval of the proposed tariff filing, AEP Ohio will provide a link to its tariff book.
Existing Data Centers and Data Centers Less Than 25 MW
Data center customers already taking electric service (or under contract to do so) are currently "grandfathered" from compliance with the DCT, but that status is subject to change in the Company's pending base distribution rate case.
Future data centers less than 25 MW (affiliated data center load is aggregated for this purpose) are not subject to the Schedule DCT. These data center customers requesting less than 25 MW should complete the intake form and a member of the team will be in touch.
Mandatory Process for Customers Interested in Moving Forward with Data Center Projects in AEP Ohio Service Territory
To apply for AEP Ohio to serve your data center, you will need to complete the intake form. Additional information will be needed for projects that ultimately move forward, and customers will need to provide detailed load information at a future date. Examples of this detailed load information include the Load Dynamic NERC questionnaire y Appendix B.2: End-User Connection form of the AEP Transmission Interconnection requirements. The final plan of service will be subject to RTO review and approval.
This process is mandatory. If you currently want to pursue new electric service to a data center as defined in the DCT, and as detailed in the Important Tariff Information section below, customers have 45 days from the effective date of the tariff to request a load study and pay the study fee. Customers currently in AEP Ohio's Central Ohio data center queue must submit a study request and pay the fee within 45 days of the effective date of Schedule DCT or lose their spot in the queue.
Study fees will apply as follows:
MW Capacity Request |
Study Fee |
>25 MW to < 50 MW |
$10,000 |
50 MW to < 100 MW |
$50,000 |
100 MW and greater |
$100,000 |
Important Tariff Information
Load Ramp Period
The "load ramp period" will not exceed four years and the contract capacity will be no less than:
- In Year 1: 50% contract capacity
- In Year 2: 65% contract capacity
- In Year 3: 80% contract capacity
- In Year 4: 90% contract capacity
Contract Term
The initial term of the contract will equal the Load Ramp Period (no greater than four years) plus eight years. If regional transmission upgrades are needed, the in-service date estimate will be high-level and contingent on numerous factors outside of AEP Ohio's control. If electric infrastructure is not in place to serve the customer by the estimated in-service date, the customer may petition the Commission for an adjustment to the contract term based on the facts and circumstances presented at the time (but the contract term will otherwise remain).
Collateral Requirement
For purposes of the collateral requirement under this section of Schedule DCT, "customer" shall include both the customer and the customer's financial sponsor as long as the sponsor is a co-signer on the contract with AEP Ohio.
Minimum Demand Charges
Monthly billing demand would be no less than the greater of:
- 85% of the customer's highest previously established monthly billing demand during the past 11 months; or
- percentage of the customer's contract capacity according to the following schedule: for customers with 25,001 kW to 75,000 kW of total contract capacity: minimum demand is 15,000 kW plus 85% of any capacity above 25,000 kW; or with more than 75,000 kW of total contract capacity, minimum demand is 57,500 kW plus 100% of any capacity above 75,000 kW. However, the minimum demand cannot exceed 85% of the total contract capacity.
Assigning Retail Capacity to Another Customer
If a customer wishes to reduce its contract capacity under Schedule DCT during the term of the contract, it may request that AEP Ohio assign up to 25% of its contract capacity to another Schedule DCT customer in lieu of paying some or all of its exit fee associated with the reallocated capacity. If a successful assignment is made, the assigning customer would be relieved of its contractual obligations going forward relating to the reallocated capacity and shall continue to be responsible for any remaining unused contract capacity. The assigning customer cannot sign up for replacement capacity until a reasonable period after assigning capacity passes or circumstances demonstrably change. Consistent with any applicable legal or regulatory requirements, AEP Ohio will make a good faith effort to accommodate this request so long as all the following conditions are met:
- The receiving customer signs an ESA for the reallocated capacity under Schedule DCT;
- AEP Ohio determines that the transfer is electrically feasible;
- The receiving customer pays for all equipment and any other incremental costs required to transfer the reallocated capacity;
- The receiving customer satisfies all collateral requirements under Schedule DCT;
- Transferring the reallocated capacity would not result in any stranded investment being recovered from other ratepayers (or, if it would, the assigning customer pays for the full cost of the stranded equipment); and
- Both parties attest in writing to AEP Ohio that no money or other compensation beyond covering the cost items listed above in this paragraph is exchanged or provided as consideration for the reallocated capacity.
Aggregation
All new loads of affiliated companies and companies with common ownership will be considered in the aggregate for purposes of calculating the minimum demand charge. If there are multiple new facilities at a single location of less than 25 MW, but the aggregate total load is greater than 25 MW, all of those facilities will be subject to Schedule DCT.
Signing Up New Customers
The following process applies to a new facility or expansion of an existing facility under Schedule DCT:
- Customer may request a load study from the Company, so long as it controls the property (own, lease or has an option) and provides a specific location, load ramp and final load. AEP Ohio will charge a one-time fee for each load study from $10,000 to $100,000 to be paid within 45 days or customers will forfeit their spot.
- AEP Ohio will conduct the load study and determine a service plan for each customer in the AEP Ohio Central Ohio queue that timely paid the load study fee. The Company will try to prioritize customers on a "first come, first served" basis and will make reasonable efforts to complete a load study within (i) 60 days if regional transmission upgrades are needed to serve the customer; or (ii) 45 days for all other situations. If regional transmission upgrades are necessary before AEP Ohio can serve the customer, AEP Ohio will group customers from the queue into tranches based on the expected capacity increase associated with each regional upgrade project.
- AEP Ohio will provide an LOA and ESA for signature. The LOA requires customers to reimburse AEP Ohio 100% of the buildout costs if the customer cancels or delays the project by more than 12 months prior to target energization date. Once the project is completed, the LOA obligation will expire. The ESA would include a good faith estimate of energization date of service.
- Customer will have 60 days to sign the LOA and ESA.
AEP Ohio will include the Schedule DCT customer's load in its PJM forecast, and the necessary transmission infrastructure, if any, to serve the customer will be constructed pursuant to the PJM transmission planning process. Once all infrastructure is in place to begin service, AEP Ohio will energize the customer and the contract will begin.
Opportunity for Contract Capacity Reduction
AEP Ohio shall communicate a one-time opportunity to Schedule GS customers whose contract demand exceeds 25 MW the opportunity to reduce their existing contract capacity provided:
- doing so does not create a stranded asset related to plant-in-service that was installed to serve the customer's larger load request, and
- the customer agrees not to request additional capacity at that location for three years after the reduction absent a demonstrated change in circumstances.
Behind-the-Meter Generation
To ensure that the customer's election to net does not result in it exceeding its contract capacity, equipment must be in place and maintained through the term of the ESA to instantaneously curtail load equal to or greater than the BTM generation output, subject to the then-current technical requirements of the transmission provider. If the BTM generation equipment fails and results in the customer exceeding its contract capacity, the Company reserves the right to raise before the Commission any unresolved reliability or safety concerns based on the facts and circumstances presented at that time.
Exit Fees
After the initial term, Contracts shall remain in effect unless terminated by either party by providing written notice to the other party no later than three (3) years prior to the requested date of termination. After the initial term, either party may request a modification to the Contract Capacity by providing written notice to the other party no later than three (3) years prior to the requested modification date. During the initial term of the Contract, the customer will be financially responsible to pay the minimum charges regardless of the customer choosing to curtail, reduce, suspend or terminate service. If after completion of the fifth year of the Contract after the Load Ramp Period the customer chooses to pay an exit fee equal to minimum charges for 36 months after notice of termination, the customer can thereafter terminate the contract. By way of example, a customer with a 3-year Load Ramp Period may pay the exit fee and terminate the contract only after Year 8 of the Contract.
Additional Questions for the AEP Ohio Team
Rates and other important terms and conditions will be more fully described in the Schedule DCT once approved. If you have questions related to the DCT or the registration process, please email us at aepohcapacityreq@aep.com.