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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 706
2025-2026
Representatives Rader, Thomas, D.
Cosponsors: Representatives Brennan,
Brewer, Somani, Cockley, McNally, Synenberg, Kishman, Bryant Bailey,
Abdullahi, Sigrist, Sims, Thomas, C., Fischer, Deeter, Pizzulli,
Manning, Miller, J.
To
enact sections 4934.01, 4934.02, 4934.03, 4934.04, 4934.05, 4934.06,
4934.07, 4934.08, 4934.09, 4934.10, 4934.11
,
and 4934.12
of the Revised Code
to
impose certain minimum requirements on data center customers in the
state.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 4934.01, 4934.02, 4934.03, 4934.04, 4934.05, 4934.06,
4934.07, 4934.08, 4934.09, 4934.10, 4934.11
,
and 4934.12
of the Revised Code be enacted to read as follows:
Sec.
4934.01.
As
used in sections 4934.01 to 4934.09 of the Revised Code:
(A)
"Electric distribution utility" has the same meaning as in
section 4928.01 of the Revised Code.
(B)
"Data center" means a centralized facility that:
(1)
Is used primarily or exclusively for electronic information services
such as the management, storage, processing, and dissemination of
electronic data and information through the use of computer systems,
servers, networking equipment, and related components;
(2)
Has an aggregate monthly maximum demand of greater than twenty-five
thousand kilowatts.
(C)
"Data center customer" means a customer, or group of
affiliated customers, of an electric distribution utility that own or
operate a data center.
Sec.
4934.02.
(A)
An electric distribution utility shall not recover any distribution,
transmission, or generation costs, including financial or operational
risks associated with, or caused by, a data center customer from
other customer classes unless the public utilities commission
determines such recovery is just and reasonable.
(B)
Prior to approving agreements under sections 4934.04 and 4934.05 of
the Revised Code, and any cost recovery mechanism requested by the
electric distribution utility based on those agreements, the
commission shall determine that the approval will not increase rates
for other existing customers. The electric distribution utility has
the burden of proof in any such proceedings for approval of the
agreements and related cost recovery mechanism.
Sec.
4934.03.
An
electric distribution utility shall not provide electric service to,
or make any investments in infrastructure for, a data center customer
that has not complied with the requirements stated in sections
4934.04 to 4934.07 of the Revised Code.
Sec.
4934.04.
(A)
A data center seeking electric service from an electric distribution
utility shall enter into a binding commitment with the utility, which
shall include the following:
(1)
Minimum demand or usage commitments that are in addition to the
requirement described in section 4934.05 of the Revised Code;
(2)
Long-term service agreements;
(3)
Exit fees or liquidated damages;
(4)
Collateral, guarantees, or other financial assets.
(B)
An agreement under this section is subject to approval by the public
utilities commission.
Sec.
4934.05.
(A)
A data center customer shall enter into an agreement with the
electric distribution utility, subject to approval by the public
utilities commission, agreeing to a minimum billing demand sufficient
to support data center customer infrastructure planning and cost
recovery from data center customers. The utility shall determine the
minimum billing demand, contract terms, any ramp periods, additional
financial assistance, and any other terms the utility determines are
necessary to address reliability needs, protect against stranded
asset costs, and to comply with section 4934.02 of the Revised Code.
(B)
Notwithstanding division (A) of this section, the minimum billing
demand for a data center customer that has reached full commercial
capacity shall be not less than eighty-five per cent of contracted
capacity, and the minimum contract term shall be not less than twelve
years, inclusive of any approved load ramp period up to four years.
Sec.
4934.06.
(A)
Prior to commencing construction of any transmission or distribution
facilities dedicated in whole or in part to a data center customer,
the public utilities commission shall require each data center
customer to provide financial assurance to the applicable electric
distribution utility to protect other customer classes from costs
arising from the data center customer prematurely exiting,
downsizing, defaulting, or otherwise disconnecting, or reducing,
electric service contrary to the agreement made under section 4934.05
of the Revised Code and may include the following:
(1)
Exit fees or liquidated damages;
(2)
Letters of credit or cash collateral;
(3)
Parental or affiliate guarantees.
(B)
The financial assurance described in division (A) of this section
shall be adequate to cover the unrecovered net book value of all
dedicated facilities, minimum billing exposure, and any applicable
exit fees.
Sec.
4934.07.
The
financial assurance required under section 4934.06 of the Revised
Code shall be reviewed and adjusted at least biennially by the
electric distribution utility to reflect remaining unrecovered
investment and risk of exit and downsizing or cessation of
operations.
Sec.
4934.08.
The
requirements stated in sections 4934.04 to 4934.07 of the Revised
Code shall be construed as minimum requirements. Nothing in those
sections shall preclude the public utilities commission from imposing
more stringent requirements.
Sec.
4934.09.
Any
exit fees, collateral forfeitures, or unused-capacity payments
collected from a data center customer shall be credited to retail
customers in the next available rate period or deferred as regulatory
liabilities for the benefit of customers. An electric distribution
utility shall not retain such revenues as utility earnings.
Sec.
4934.10.
Not
later than six months after the effective date of this section, the
public utilities commission shall establish uniform statewide
standards governing the following:
(A)
Load study deposits, including nonrefundable components;
(B)
Queue-position forfeitures for failure to meet milestones;
(C)
First-come-first-served or tranche-based processing;
(D)
Aggregation of affiliated projects for queue priority.
Sec.
4934.11.
Notwithstanding
any provision of section 121.95 of the Revised Code to the contrary,
a regulatory restriction contained in a rule adopted under section
4934.10 of the Revised Code is not subject to sections 121.95 to
121.953 of the Revised Code.
Sec.
4934.12.
Nothing
in this chapter is intended to restrict or modify the public
utilities commission's authority under section 4905.31 of the Revised
Code.