← Back to selected work

05 / Tariff modeling / Data center power

GRID / OHIO

What a hypothetical 100 MW data center pays under Ohio Power Company’s (AEP Ohio) 2025 data center tariff, and what a supply contract, a market choice or a flexible load changes.

Decision signalGRID-OHIO / MODEL 05
$3.75M$0.83MINDEX + ADDER70 MW BLOCK
$2.64M a yearAdded by the minimum-demand charge when contract demand is 100 MW and the actual peak is 50 MW

An interactive study: tariff calculator, stress sliders, and a searchable assumption register.

$2.64Ma year, minimum-demand charge
77.8%of energy covered by a 70 MW block
$1.09Mlower energy cost in MISO, same load

What does a data center owe for capacity it does not use?

AEP Ohio’s data center tariff, ordered on July 9, 2025 and effective July 23, 2025, ties the bill to contracted demand, not to what a site draws. Minimum ramp commitments of 50%, 65%, 80% and 90% over four years, eight post-ramp years, exit charges and financial assurance mean a developer pays for a commitment even when load falls short.

The study is a historical 2025 counterfactual with illustrative assumptions, not a quote, a forecast or a ranking of sites. It is not affiliated with or endorsed by Ohio Power Company (AEP Ohio).

One facility, 8,760 matched hours, five questions.

A Python cost-to-serve model prices a 100 MW facility hour by hour across 2025, then the site recomputes the tariff and stress cases in the browser.

The five sections
SectionWhat it does
Tariff labRebuilds the primary-service bill at $6.33/kW-month and $138.50 a month. Contract demand above the actual peak adds a charge that does not fall with demand; billed demand is 85 MW for 11 months, then 82.5 MW, assuming a prior 100 MW peak.
ContractsCompares fixed-price, index-plus-adder and block-plus-index supply, with a 70 MW fixed block covering 77.8% of annual energy.
Stress testsMoves gas and capacity prices, and curtails 20% of load in the ten highest system-demand hours.
MarketsPrices the same 788,400 MWh at PJM’s AEP-Dayton Hub and MISO’s Indiana Hub.
EvidenceA searchable register of 47 assumptions, CSV and JSON downloads, and the model’s own caveats.

Partial price protection helps. Capacity and location still matter.

Selected results, 2025 hours
TestResult
Minimum-demand charge, 100 MW contract vs 50 MW peak+$2.64M a year
Gas +30%, PJM, index plus adder+$3.75M a year
Gas +30%, PJM, 70 MW block plus index+$0.83M a year
Capacity price +50%, fixed energy price+$2.74M a year
PJM vs MISO energy price$45.74 vs $44.36/MWh, $1.09M lower in MISO
20% curtailment in 10 peak hours$48,112 (PJM), $46,046 (MISO) gross, before operating costs

The block cuts the gas shock from $3.75M to $0.83M, but it does not touch the capacity charge, and the energy-price gap between hubs is not a ranking of sites. Flexibility’s gross savings are small next to the fixed charges, and the study picks the peak hours with hindsight.

Checked against the Python model it came from.

The browser model is tested against the original Python model: 54 published sensitivity cases, 108 combinations recomputed from the hourly model, and 350 twelve-month tariff paths. A 10,000-trial Monte Carlo (paired seven-day bootstrap, 15% price sigma, 5% load sigma) is shown as a conditional synthetic result, not a calibrated probability. Fixed and block rates are benchmarks held constant under stress, not supplier quotes.

Proceed to phased due diligence, not a construction commitment.

Obtain quotes for a 70 MW block-plus-index structure and a fixed-price alternative, price the signed ramp and minimum-demand obligations before reserving capacity, and compare confirmed energization dates, connection costs and site-specific prices before choosing a location. Confirm service voltage, the current tariff and dated quotes first.

Independent research on public data. The tariff example covers primary service only and excludes riders, taxes, connection costs and exit charges. Not investment or procurement advice.