COLUMBUS, Ohio — Ohio Consumers’ Counsel Maureen Willis testified before the Ohio House Energy Committee yesterday in strong support of House Bill 706, a legislative effort to ensure that the state’s explosive tech infrastructure growth does not come at the financial expense of everyday families.
The bill establishes baseline consumer protections regarding the extraordinary electricity demand generated by data centers. If passed, HB 706 would ensure that tech companies driving up infrastructure costs—rather than residential households and small businesses—are held financially accountable.
“We can welcome investment, support innovation, and compete for economic growth, while also protecting Ohio families already struggling with rising utility bills,” Willis said in a statement. “That balance matters.”
The Data Center Dilemma: Who Pays the Bill?
Ohio is currently experiencing unprecedented growth in electricity demand, primarily fueled by massive data centers built to power the internet and artificial intelligence. While this digital boom generates local jobs and tax revenue, it creates an immense burden on the state’s electrical grid.
Testifying on behalf of the Office of the Ohio Consumers’ Counsel (OCC)—which is marking its 50th anniversary representing 4.5 million residential utility consumers—Willis told lawmakers that the core principle of the legislation is simple: costs must follow cost causation.
The OCC warned that without regulatory intervention, Ohio consumers risk being stuck with “stranded” utility costs. If utility companies build out massive power grids, substations, and transmission lines exclusively to serve data centers, everyday residential consumers could be forced to pick up the tab if those tech companies later scale back operations, delay projects, or vacate the state entirely.
The OCC also dismissed arguments that specialized data center tariffs constitute unlawful discrimination, noting that data centers are fundamentally distinct from traditional factories or industrial facilities due to their immense size, near-constant power usage, and unique reliance on major grid overhauls.
What House Bill 706 Does
HB 706 builds upon the existing data center tariff framework utilized by the Public Utilities Commission of Ohio (PUCO). The proposed legislation locks in minimum protections, including:
- Mandatory long-term grid commitments from data center operators.
- Required financial assurances from tech firms to mitigate extraordinary infrastructure costs.
- Strict protections against shifting corporate utility costs onto small businesses and households.
- Clearer legal frameworks regarding cost allocations and stranded asset protections.
OCC Outlines Steps to Toughen the Legislation
While fully backing House Bill 706, Willis and the OCC recommended two critical amendments to close potential loopholes and strengthen consumer defenses:
- Narrowing the Grandfather Clause: The OCC warns against broadly exempting existing projects from the rules. For example, if the estimated 12,000 megawatts of data center capacity in the AEP Ohio service territory is entirely exempted, the watchdog group warns “the exception may swallow the rule.” They advise that consumer protections should apply to all data center customers, old and new alike.
- Requiring Credible Power Supply Plans: Data center operators should be legally required to prove exactly how their immense power demand will be met. The OCC argues companies must demonstrate a mix of long-term power purchase agreements, dedicated generation, battery storage, or demand flexibility to ensure they do not undermine grid reliability or affordability for the general public.
House Bill 706 remains under active consideration by the Ohio House Energy Committee.
