Rep. Sean Patrick Brennan Objects to FirstEnergy/AEG Proposal

COLUMBUS – State Representative Sean Patrick Brennan (D–Parma) today voiced strong opposition to the newly proposed $1.1 billion transmission plan filed by FirstEnergy and American Electric Power (AEP), echoing the concerns raised by the Office of the Ohio Consumers’ Counsel (OCC) in its formal protest to the Federal Energy Regulatory Commission (FERC).

The OCC warns the proposal would shift as much as 60 percent of the project’s costs onto “all Ohio consumers,” even though the surge in electricity demand is being driven largely by anticipated data centers and artificial intelligence (AI) facilities—not residential customers.

“Ohio families should not be forced to subsidize massive infrastructure costs created by AI growth and data center expansion,” said Rep. Brennan. “If big-tech development is driving the increased load on our grid, then those responsible must pay their fair share. I fully support the Consumers’ Counsel’s effort to protect everyday Ohioans from yet another unjustified rate hike.”

According to OCC, grid operator PJM Interconnection verified the 60 percent cost-shift at its February Board of Managers meeting and in subsequent filings to FERC, on top of additional undisclosed “supplemental” projects that could further increase costs the public has not yet been allowed to examine.

The joint venture, “Grid Growth Ohio,” seeks to build four new 765 kV transmission lines and one 345 kV line across the state as part of a larger “Ohio Seven-Year Solution.” In return, AEP and FirstEnergy are requesting what OCC calls an excessive 10.8% return on equity, full cost recovery for construction work in progress, and guaranteed reimbursement for “prudently incurred abandonment.”

“The proposed return on equity goes far beyond what FERC typically allows and well beyond what companies of similar risk receive,” added Rep. Brennan. “There’s no justification for asking Ohioans to underwrite inflated profits while shouldering the financial risks these corporations want to avoid.”

OCC also notes that Ohio has already put in place policies to protect consumers from shouldering the cost of data center development—including AEP’s own PUCO-approved rate structure for Central Ohio’s Silicon Heartland. The new proposal ignores those protections and threatens to undermine them.

“The OCC is absolutely right to demand FERC investigate whether these transmission projects are being built for AI growth rather than for the benefit of everyday consumers,” said Rep. Brennan. “If these forecasts don’t pan out, Ohioans could be stuck paying for infrastructure that was overbuilt and unnecessary. That’s unacceptable.”

The OCC further cautions that Grid Growth’s undisclosed supplemental projects have not been vetted by FERC, PJM, or PUCO, meaning their need, cost-effectiveness, and consumer impact remain unknown.

“The total impact on Ohio consumers is almost certainly higher than what FirstEnergy and AEP have disclosed,” continued Rep. Brennan. “Given the lack of transparency, the excessive ROE request, and the evident risk-shifting to Ohio families, FERC must halt or suspend this proposal.”

The Consumers’ Counsel is urging FERC to either reject the filing outright or delay the May 6 effective date for the maximum five-month review period to allow for fact-finding, evidentiary hearings, and potential settlement discussions.

“I stand firmly with Ohio’s residential ratepayers and with the Consumers’ Counsel,” concluded Rep. Brennan. “FERC should reject or fully scrutinize this proposal to ensure that Ohioans are not exploited to subsidize Big Data.”