WHEREAS data centers consume prodigious amounts of electricity — far more than any other industry, AI chips require ten (10) times the electricity of a regular chip;

WHEREAS building the new infrastructure needed to supply this electricity will require massive investments;

WHEREAS in one state alone (Ohio), data centers are requesting an additional of 30,000 megawatts of additional electricity generation — enough electricity for more than 20 million households;

WHEREAS between 2020 and 2024, the data center energy load in central Ohio increased sixfold from 100 to 600 megawatts;

WHEREAS meeting that demand will require new generation capacity:

WHEREAS expensive new transmission lines require a time-consuming building process, taking between seven (7) and ten (10) years to complete;

WHEREAS take or pay agreements are common in the energy, mining, and minerals industries;

WHEREAS AI is now a national priority for this administration;

WHEREAS it is possible the AI bubble will burst, and those facilities will need much less electricity than initially projected,

WHEREAS if the tech companies leave the state or new technologies reduce the amount of power those data centers need in the future;

WHEREAS and the power company spends big on new infrastructure, but the power demand it expected doesn’t materialize;

WHEREAS the costs would be passed along to its other ratepayers, which would place an unfair burden on them.

SECTION 1. Definitions

As used in this section:

(a) “Dispatchable” or on demand power means a source of electricity that is readily available for use on demand and can be dispatched upon request of a power grid operator large electricity customer, or one that can have its power output adjusted according to market needs, except for routine maintenance or repairs;

(b) “Reliable” means a source of electricity that is not subject to intermittent availability, has a performance standard of 80% or greater and only falls below that level during routine maintenance or repairs;

(c) “Electric generation facility” means a facility that uses water, coal, natural gas, or nuclear to generate reliable or dispatchable electricity for provision to customers;

(d) “Large Electric User” is an electric user that needs more than 75 MW of electricity on a regular basis.

(e) “Firm power” includes dispatchable, reliable power generation, as well as battery storage in excess of 24 hours. Firm power does not include power that is not dispatchable.

(f) “Take or pay agreement” is a contractual provision requiring the buyer to make an unconditional payment to the seller. The buyer must either take delivery of the electricity or pay the penalty in the case of default.

SECTION 2. Protecting Electricity Users From Large Electricity Purchasers

(a) The commission shall not authorize or approve the building of a firm electric generation facility as proposed in an integrated resource plan or other submission to the commission, until there is a ten year take or pay agreement for at least 85% of the estimated peak electricity demand of the large electricity user requested.

(b) The take or pay agreement shall incorporate the cost of this newly constructed electric generation facility and any transmission wires needed to transport the generated electricity.

(c) Large electric users are prohibited from receiving lower rates than other industrial electricity users.

(d) The commission shall assess the amount of firm power needed to maintain 115% of the estimated peak demand, including the demand of the prospective major electricity user(s).

(e) The commission shall consider imminent and planned firm power closures in other states of the member RTO as well as in our own state. If other states are not replacing their retired or firm power, or their firm power scheduled for retirement, with an equal or greater amounts of firm power, the commission shall add these shortages to their firm power calculations for all customers.

SECTION 3. Severability

Each section, paragraph, and portion of each paragraph of this Act is severable. If one or more sections, paragraphs, or portions of one or more paragraphs of this Act are held invalid on their face or as applied to particular facts, then the remaining portions and applications of the Act shall be given full effect to the greatest extent practicable.

SECTION 4. Applicability and Effective Date