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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 381
2025-2026
Senator Weinstein
Cosponsors: Senators Craig, DeMora,
Blackshear, Smith
To
enact sections 4908.01, 4908.02, 4908.021, 4908.022, 4908.023,
4908.03, 4908.031, 4908.032, 4908.033, 4908.034, 4908.04, 4908.041,
4908.042, 4908.05, 4908.051, 4908.052, 4908.053, and 4908.06 of the
Revised Code
to
require the Public Utility Commission's approval of agreements to
interconnect data centers to the electrical grid.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 4908.01, 4908.02, 4908.021, 4908.022, 4908.023, 4908.03,
4908.031, 4908.032, 4908.033, 4908.034, 4908.04, 4908.041, 4908.042,
4908.05, 4908.051, 4908.052, 4908.053, and 4908.06 of the Revised
Code be enacted to read as follows:
Sec.
4908.01.
As
used in this chapter:
(A)
"Commission" means the public utilities commission.
(B)(1)
"Data center" means a centralized facility that meets both
of the following:
(a)
Is used primarily or exclusively for electronic information services,
such as the management, storage, processing, and dissemination of
electronic data and information, including the mining of
cryptocurrency, through the use of computer systems, servers,
networking equipment, and related components;
(b)
Has an aggregate monthly maximum demand of greater than twenty-five
thousand kilowatt hours.
(2)
"Data center" includes facilities that have load that is
portable or distributable, including structures that are not affixed
to the ground or that are easily removed from a location.
(C)
"Electric distribution utility" has the same meaning as in
section 4928.01 of the Revised Code.
(D)
"Electric grid" means the interconnected network for
delivering electricity to consumers in this state, consisting of
electric generation facilities, transmission lines, and distribution
systems.
(E)
"Interconnection service" means the physical connection of
a facility to an interconnection service provider's system for the
purpose of electrical power transfer.
(F)
"Interconnection service provider" means an electric
distribution utility or an entity that owns or controls transmission
facilities in this state.
Sec.
4908.02.
On
and after the effective date of this section, no person shall
formally apply for interconnection service with an interconnection
service provider for the purpose of powering a data center prior to
applying for and receiving interconnection approval from the
commission.
Sec.
4908.021.
The
application for interconnection approval shall be in a form
prescribed by the commission.
Sec.
4908.022.
The
commission may charge an application fee to applicants for
interconnection approval for a data center, as necessary to carry out
the requirements of this chapter.
Sec.
4908.023.
Nothing
in this chapter shall be construed as prohibiting a person from
engaging in informal, pre-application activities in relation to
interconnection service.
Sec.
4908.03.
The
commission, upon receipt of an application for interconnection
approval for a data center, shall hire an independent entity to
review the application and forecast the impact of the data center's
interconnection to the electric grid.
Sec.
4908.031.
The
forecast required under section 4908.03 of the Revised Code shall
examine and project the data center's impact on all of the following
in this state:
(A)
Electric utility rates;
(B)
Resiliency;
(C)
Resource adequacy;
(D)
Transmission constraints;
(E)
Risk of forced outages or load shedding during peak conditions;
(F)
Projected demand versus available capacity over both a five-year and
a ten-year period.
Sec.
4908.032.
(A)
Except as provided in division (B) of this section, the person
selected to conduct the forecast shall complete the forecast and
submit a report of the person's findings not later than two hundred
seventy days after the person has been selected to conduct the
forecast.
(B)
A person selected to conduct the forecast may request, and the
commission may authorize, an extension of ninety days beyond the
deadline imposed in division (A) of this section.
Sec.
4908.033.
(A)
A person hired to conduct the forecast required under section 4908.03
of the Revised Code may use any data made available to the person by
the regional transmission organization approved by the federal energy
regulatory commission and having the responsibility for maintaining
reliability in all or part of this state, including existing
forecasts, capacity accreditation, and reliability metrics.
(B)(1)
A person hired to conduct the forecast may request information from
both the applicant and any related interconnection service provider
as necessary to properly develop the forecast.
(2)(a)
An interconnection service provider may provide such information to
the forecaster as it feels appropriate to assist the forecaster in
developing the forecast.
(b)
Nothing in this section shall be construed as requiring an
interconnection service provider to divulge proprietary or otherwise
confidential information.
Sec.
4908.034.
(A)
The full cost of a forecast required under section 4908.03 of the
Revised Code shall be borne by the related applicant.
(B)
The commission shall not approve an application for interconnection
until the full cost of the forecast has been paid by the applicant.
Sec.
4908.04.
(A)
Upon receipt of a forecast report required under section 4908.032 of
the Revised Code, the commission shall review the report and assess
whether or not it is in the public's interest to allow the data
center to interconnect to the electric grid.
(B)
The commission's assessment shall include a determination of whether
or not the data center's interconnection will result in a material
degradation of the electric grid's reliability or an increase in
residential electric utility rates.
Sec.
4908.041.
Not
later than sixty days after receipt of a forecast required under
section 4908.03 of the Revised Code, the commission shall do one of
the following:
(A)
If the commission determines the agreement is in the public's best
interest, interconnection will not result in a material degradation
of the electric grid's reliability, and interconnection will not
result in a material increase in residential electrical rates,
approve the application for interconnection, in which case the
applicant may seek to obtain interconnection with an interconnection
service provider;
(B)
If the commission determines the agreement is not in the public's
best interest, interconnection will result in a material degradation
of the electric grid's reliability, or interconnection will result in
a material increase in residential electrical rates, do either of the
following:
(1)
Deny the application for interconnection, in which case the applicant
is prohibited from seeking interconnection with an interconnection
service provider;
(2)
Make a conditional approval of the application for interconnection,
in which case the applicant may apply for interconnection with an
interconnection service provider in accordance with sections 4908.05
to 4908.053 of the Revised Code.
Sec.
4908.042.
If
the commission issues a conditional approval of an application for
interconnection under division (B)(2) of section 4908.041 of the
Revised Code, the commission shall issue a determination stating
those issues or areas of concern that are to be addressed in an
interconnection agreement between the applicant and an
interconnection service provider.
Sec.
4908.05.
An
applicant that has received a conditional interconnection approval
under division (B)(2) of section 4908.041 of the Revised Code and an
interconnection service provider shall not ratify or enter into an
interconnection agreement prior to submitting the proposed agreement
to the commission for review and approval.
Sec.
4908.051.
The
commission shall review each proposed interconnection agreement
submitted under section 4908.05 of the Revised Code to determine if
the agreement is in the public's best interest, if interconnection
will result in a material degradation of the electric grid's
reliability, and if interconnection will result in a material
increase in residential electrical rates.
Sec.
4908.052.
(A)
If the commission finds that a proposed interconnection agreement
submitted to the commission under section 4908.05 of the Revised Code
is in the public interest, will not result in a material degradation
of the electric grid's reliability, and will not result in a material
increase in residential electrical rates, the commission shall
approve the agreement, and the associated parties may enter into the
agreement.
(B)
If the commission finds that a proposed interconnection agreement is
not in the public interest, will result in a material degradation of
the electric grid's reliability, or will result in a material
increase in residential electrical rates, the commission shall not
approve the proposed agreement and shall issue a determination
specifying those ways in which the agreement is opposed to the public
interest and instructing the person seeking interconnection service
and the interconnection service provider to develop new terms for the
agreement.
(C)
The commission shall not approve an interconnection agreement that
does not require the owner of a data center to bear the entire cost
of any infrastructure changes necessary to do either of the
following:
(1)
Facilitate the interconnection of the data center to the electric
grid;
(2)
Ensure reliability on the grid after the data center has been
interconnected.
Sec.
4908.053.
If
a proposed agreement is not approved under division (B) of section
4908.052 of the Revised Code, the applicant may submit a modified
agreement consistent with the commission determination under that
section and reapply for interconnection approval pursuant to the
requirements of sections 4908.05 to 4908.052 of the Revised Code. An
applicant may reapply until either of the following occur:
(A)
The applicant withdraws the application for interconnection approval.
(B)
The commission determines that the interconnection agreement in
question is in the public interest, will not result in a material
degradation of the electric grid's reliability, and will not result
in a material increase in residential electrical rates, in which case
the commission shall approve the agreement, and the applicant and
interconnection service provider may enter into the interconnection
agreement.
Sec.
4908.06.
The
commission may adopt rules as necessary to carry out the provisions
of this chapter.
Section
2.
This
act shall be entitled and may be cited as the Ohio Power
Responsibility and Fairness Act.