As Introduced

136th General Assembly

Regular Session S. B. No. 381

2025-2026

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.

(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;

(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.