Earlier this month, Public Utilities Commission of Ohio (PUCO) Chairwoman Jennifer French briefed the Ohio Senate on the state of our grid. Her testimony made clear that although demand is higher than ever, Ohio’s energy future has never been brighter.
According to Chairwoman French, the Commission added 700 MW of solar, 2,000 MW of behind-the-meter power, and received almost 3,000 MW in applications for new gas generation. That’s more gas generation than we’ve seen in two decades, and it’s coming online at the perfect time. PUCO estimates data centers and other large-load industrial projects will increase electricity demand by 56% over the next 20 years.
Market-driven approaches to meeting this demand that respect conservative, limited government principles are already taking shape. AES Ohio’s proposed transition to private ownership is a powerful example. For a utility serving communities like Dayton and the surrounding region, the ability to focus on long-term infrastructure investments, rather than short-term shareholder pressures, could make a real difference in reliability and cost stability.
On paper, the deal makes financial sense. To stay a step ahead of soaring energy demand, AES must invest in new generation and transmission yesterday. As a public company, AES currently lacks flexible financing options to modernize and stabilize the grid without sacrificing its shareholder dividends, raising customer rates, or risking outages. Access to private capital eases short-term profitability pressures, allowing AES to pursue disciplined, multi-year investment strategies focused on protecting customer rates, not padding stock prices.
Balance sheets aside, this agreement is, at its core, about creating long-term value for Ohio’s working families. Ratepayer protections – including continued regulatory oversight, commitment to maintaining strong, local leadership, and clear assurances that no new costs will be passed on to customers – are built into the purchase. The $33 billion acquisition would be entirely equity funded avoiding risky borrowed money tactics, with investors paying the full cost of the acquisition without passing transaction fees, advisory costs, or premiums on to consumers. AES Ohio would maintain its existing financial structure and credit rating, and PUCO would continue to provide oversight to ensure accountability and transparency.
For decades, AES Ohio hasn’t just kept the lights on, they’ve kept businesses open and Ohioans employed. Since 2014, AES Ohio’s economic development initiatives have supported 3,700 jobs in West Central Ohio and contributed to regional initiatives like Dayton Development Coalition and One Columbus. Under new ownership, AES Ohio will gain the capital to expand and upgrade its 1,690-mile transmission network, creating well-paying job opportunities for union linemen and skilled tradesmen. Bringing more honest, blue-collar jobs to our historically manufacturing-dominant state will help rebuild our middle class and deepen the Midwest values we cherish.
As our communities compete for new jobs, advanced manufacturing, and data center investment – all of which depend on abundant, reliable, and affordable power – market-driven solutions like AES Ohio’s acquisition make sure our grid can keep up. By leveraging private capital, limiting risk to taxpayers, and prioritizing long-term stability over short-term gains, this acquisition puts Ohio on target to meet demand and lead the nation.
If we’re serious about Ohio being a state that protects household budgets, supports job creation, and strengthens working families, smart investment in our energy infrastructure isn’t something to run from, it’s the right path forward.
