Rep. Sean Patrick Brennan Joins Regional Effort to Protect Ohio Consumers from Higher Electric Bills

COLUMBUS – State Rep. Sean Patrick Brennan (D–Parma) has joined lawmakers from across the Midwest and Mid-Atlantic in calling on PJM Interconnection, the regional electric grid operator that manages the flow of electricity for approximately 65 million people in 13 states and the District of Columbia, to protect consumers from bearing the costs of rapidly expanding data center development.

PJM oversees the wholesale electricity market serving Ohio and much of the eastern United States. While many Ohioans may not recognize the organization’s name, its decisions directly affect electric reliability and can significantly impact the utility bills paid by households and businesses throughout the state.

Rep. Brennan signed a letter from the PJM Legislators Collaborative urging PJM to revise proposed market changes that could force ratepayers to assume financial risks associated with the growth of large electricity users, including data centers that support artificial intelligence, cloud computing, and other digital services.

“Most Ohioans have never heard of PJM, but its decisions can significantly affect what they pay every month for electricity,” Rep. Brennan said. “As lawmakers, we have a responsibility to make sure families and small businesses are not left holding the bag for private corporate investments. Those creating massive new demand on the grid should pay the costs associated with that demand.”

The lawmakers’ letter focuses on PJM’s proposed Reliability Backstop Procurement (RBP) and Connect-and-Manage (CAM) framework. As currently designed, the proposals could require electricity customers to pay for new generation resources based on projected data center demand while leaving ratepayers exposed if those projects fail to materialize or if demand forecasts prove inaccurate.

The concerns come at a time when Ohio consumers are already facing rising electricity costs. Recent PJM capacity auctions have produced historically high prices, with those costs expected to flow through to utility customers in coming years. Energy experts and consumer advocates have increasingly pointed to the rapid growth of data centers as one factor driving demand and putting upward pressure on electricity prices across the PJM region.

The letter urges PJM to:

• Ensure data centers and other large electricity consumers bear the costs associated with serving their demand;
• Protect households and businesses from stranded costs and unnecessary subsidies;
• Properly account for and allocate transmission infrastructure costs;
• Respect state policies regarding reliability and large-load flexibility; and
• Avoid market changes that unnecessarily increase electricity bills.
   

The lawmakers also expressed concern that consumers could be forced to subsidize new power plants and transmission infrastructure built primarily to accommodate private data center expansion. They argue that if forecasts are wrong or projects are canceled, ordinary ratepayers could be left responsible for billions of dollars in costs.

“Ohio families are already struggling with higher costs for groceries, housing, healthcare, and utilities,” Rep. Brennan said. “The last thing they need is to see their electric bills increase because the costs and risks of private data center expansion are being shifted onto the public. Growth should pay for growth. If a corporation wants to build a massive new facility that places extraordinary demands on the grid, it should be responsible for the costs associated with serving that demand.”

The PJM Legislators Collaborative includes state lawmakers from across the PJM region who are working to ensure that electric grid policies prioritize affordability, reliability, and consumer protection as electricity demand continues to grow.

“As a former educator and a state representative, I believe government has a responsibility to stand up for consumers,” Rep. Brennan said. “Reliable electricity is essential, but so is affordability. We can support economic development and technological innovation without asking Ohio families to subsidize some of the wealthiest corporations in the world.”