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Federal regulators pause PJM power auction as Ohio ratepayer safeguards remain stalled
A federal delay has put off PJM Interconnection’s planned auction to secure additional electricity amid demand growth attributed largely to data centers. Ohio lawmakers have yet to pass proposed protections against shifting those costs onto household and other ratepayers.
COLUMBUS, Ohio — Federal regulators have delayed a planned PJM Interconnection auction to secure additional electricity resources, citing concerns that the process could leave ordinary customers paying costs tied to data-center demand before states establish stronger ratepayer protections.
PJM, which coordinates electricity supply across 13 states including Ohio, had planned to begin the so-called backstop procurement auction this week. The effort was intended to address a widening gap between electricity demand and supply, which PJM has linked largely to data centers.
Ohio Rep. Tristan Rader, a Lakewood Democrat, said the delay gives states time to put safeguards in place. He argued that Ohio’s failure to adopt data-center rules contributed to the problem, while noting that the Federal Energy Regulatory Commission intervened before the auction could proceed.
FERC Commissioner David Rosner has said states need to play an active role in protecting ratepayers. Ohio’s House Bill 646 would have placed data centers in a separate rate class overseen by the Public Utilities Commission of Ohio, but the measure stalled in June amid disagreement over tax incentives for the facilities.
Rader said the utilities commission is working within the limits of its authority and that legislative action is needed. Had lawmakers adopted the bill earlier, he suggested, the auction might have moved forward.
House Speaker Matt Huffman, a Lima Republican, said lawmakers should revisit ratepayer protections this year if possible or in early January. He said large electricity users should not be able to consume supply in a way that drives up costs for everyone else, emphasizing that Ohioans need affordable, reliable electricity.
Sen. Kent Smith, an Euclid Democrat, questioned whether the full bill could pass and proposed separating its ratepayer protections from the broader energy-policy debate. Rep. Adam Holmes, a Nashport Republican, said a narrower approach might be needed, although he noted PJM’s new electricity prices are not scheduled to take effect until 2028.
Democrats also pressed to revisit the bill when lawmakers returned to Columbus for an emergency session on suspending the state gas tax. Senate President Rob McColley, a Napoleon Republican, limited the session’s debate to the tax issue and rejected calls from environmental groups for a data-center moratorium. He said Gov. Mike DeWine had effectively signaled a pause by declining to grant sales-tax exemptions for data centers through the end of the year, while pledging to address concerns.