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PUCO Approves First Energy’s NMB Rider
Says Data Centers Should Not Be Eligible for Rider NMB Pilot, “Except Through Reasonable Arrangement”
In PUCO’s Finding and Order the Commission finds that the application filed by the First Energy utilities Non-Market Based (NMB) Rider should be approved, subject to Staff’s recommendations, for rates effective April 1, 2026.
As background, the Commission had previously approved the NMB Pilot Program, which would allow customers served under the program to be billed directly by PJM or their competitive retail electric service provider and to no longer be subject to the Rider NMB rates. Participation in the NMB Pilot Program would allow these customers an opportunity to control their transmission-related costs by controlling their Network Service Peak Load.
In PUCO’s most recent NMB order the Commission said that “[i]t is once again important to emphasize that Rider NMB is merely a pass-through mechanism, designed to recover non-market-based transmission-related costs imposed on or charged to the Companies by FERC or PJM. In other words, FirstEnergy is an intermediary for the collection of these charges. As that is the case, Staff and OELC correctly observe that the Commission is limited in our jurisdiction to address increasing transmission charges, as these costs, including the main driver of the increases, NITS, are regulated by FERC; however, we can continue to evaluate whether changes in the allocation methodology are warranted. As we have routinely done in the past, the Commission is committed to continuing to engage with FERC on matters that may ultimately impact transmission costs in Ohio.”
“Relatedly, as suggested by Staff, we will also continue to monitor the impact data centers are having on the transmission grid and take whatever measures necessary to ensure customers are being allocated their appropriate costs. In order to facilitate this analysis, we agree that any data center not currently participating in the NMB Pilot Program should not be eligible to be added to the NMB Pilot Program after rates go into effect on April 1, 2026, except through a reasonable arrangement approved by the Commission pursuant to R.C. 4905.31.” {Emphasis Added.}
