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PUCO Provides 2025 End of Year Review
“Data centers continued to be a hot topic, specifically related to electricity use to operate the facilities and the resulting rates. To help keep residential and other commercial customers from seeing spikes on their bills, we issued a precedent-setting decision requiring data centers to pay a fair share for the infrastructure they cause to be built. We are also seeing many new data centers seek to build behind the meter power plants to service the facility without adding additional strain to the electric grid.”
“Throughout the year the PUCO staff also dug into cases related to FirstEnergy and the investigations surrounding its involvement in the passing of House Bill 6 during the 133rd General Assembly. The PUCO issued orders that required the company to provide restitution to consumers and pay civil forfeitures.”
State legislature makes changes to the competitive retail electric service law and more in House Bill 15.
In House Bill 15, signed into law in May 2025 by Governor Mike DeWine, the PUCO and OPSB were required to amend aspects related to the review of applications for distribution rate cases, oversee competitive energy markets, and review large scale energy infrastructure. In addition, HB 15 requires each electric distribution utility to publish an annual reliability report. Many of the required changes are in the rulemaking process and will become effective in 2026.
To learn more about the various parts of HB 15 that impact utilities, please read the following:
HB 15 Part 1
HB 15 Part 2
Reliability Report
Some utility related highlights include:
AES Ohio – A settlement agreement was reached that reduced the increase of rates asked for by AES, maintained the current customer charge and eliminated reconnection fees.
Learn more about the settlement.
AEP Ohio – AEP Ohio had two notable cases that the PUCO provided decisions on during 2025. First, in July the PUCO authorized AEP Ohio to implement a distribution automation circuit reconfiguration project. This project would see equipment installed that would detect power outages and automatically reroute power to minimize customer impact.
The second case saw the PUCO direct AEP Ohio to file new tariffs that would apply to rates for data centers. In the first of its kind case, the tariffs would require data centers to pay for certain costs related to projected energy use so that other customer classes are held harmless from the increase in infrastructure and electric generation necessary for the centers.
Read more about the circuit upgrades and data center tariffs.
Duke Energy Ohio – The PUCO authorized an electric security plan for Duke Energy Ohio. In the approved plan, the PUCO eliminated the 3-year bids to minimize price volatility, the development of a distribution capacity hosting map to lead to more efficient grid planning and the implementation of an energy efficiency program to help low-income customers lower energy usage. Learn more about Duke’s ESP.
Enbridge Gas Ohio – The PUCO issued an order to lower distribution rates as opposed to the increase Enbridge Gas Ohio requested in its original filing. Bill impacts have not yet been fully established due to necessary tariff approval. Read more about the decision on Enbridge’s rate increase request.
FirstEnergy – Originally asking for $190 million in increases for distribution rates, the PUCO provided an approximate $34 million annual increase. This order is set to lower annual revenues for two of the operating companies and increase rates for one. Learn more about FirstEnergy’s rate increase.
PUCO issued penalties against FirstEnergy related to House Bill 6 investigation
After many months of discovery and hearings, the PUCO ruled that FirstEnergy violated Ohio law, PUCO regulations and PUCO orders in relationship to the passage of Amended Substitute House Bill 6 from the 133rd General Assembly. In November, the PUCO ordered FirstEnergy to provide restitution to Ohio customers of more than $180 million. In addition, the company was ordered to pay civil forfeitures of over $60 million.
Read more about the cases and orders.
