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Public Utility Commission of Ohio (PUCO) issued a Finding and Order approving AEP Ohio’s Basic Transmission Cost Rider (BTCR).

In the order the Commission finds that “AEP Ohio’s application to update the Basic Transmission Cost Rider or BTCR is consistent with Ohio Adm.Code Chapter 4901:1-36, does not appear to be unjust or unreasonable, and should be approved for rates effective April 1, 2026, subject to Staff recommendations.”

“{¶ 17} As an initial matter, as to comments discussing increasing costs, we emphasize that BTCR is merely a pass-through mechanism to recover non-market-based transmission-related costs imposed on or charged to the Company by FERC or PJM. 2025 BTCR Case, Finding and Order (Mar. 19, 2025) at ¶ 4. As acknowledged by OELC, the Commission is limited in our jurisdiction to address increasing transmission charges, as these costs, including the main driver of the increases, network integration transmission service, 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.”

“For these reasons, we decline to implement annual increase limits or percentage caps as proposed by OCC and OELC, at this time. 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 with Staff that that any data center not currently participating in the BTCR pilot should not be eligible to be added to the BTCR pilot, and any data center currently on the pilot should not be permitted to participate in the pilot or successor programs as of June 1, 2028, except through a reasonable arrangement approved by the Commission pursuant to R.C. 4905.31.”

“The Commission finds that AEP Ohio’s application to update the BTCR is consistent with Ohio Adm.Code Chapter 4901:1-36, does not appear to be unjust or unreasonable, and should be approved for rates effective April 1, 2026, subject to Staff recommendations. The Commission directs the Company to file final tariffs in accordance with this Finding and Order, including utilizing the updated rates detailed in the Staff review and recommendation, subject to further review by the Commission. The Commission notes that all costs or credits included in BTCR may be subject to further adjustments following the audit in the next BTCR update filing. Staff may also file updates incorporating its findings from its continued monitoring efforts and request further Commission action in response to those findings, as necessary. Finally, we find that it is unnecessary to hold a hearing in this matter.”