AEP Ohio for Cannabis Facilities: Delivery Classes, Demand Charges, SSO, and CRES Billing

Service area and grid operator

AEP Ohio (Ohio Power Company) is the largest Ohio electric distribution utility by territory, serving Columbus and central Ohio plus much of eastern, southern, and northwestern Ohio including Canton, Zanesville, Athens, and Lima [aep-ohio-rates]. The territory sits entirely in PJM [oh-energychoice-glossary]. Delivery, metering, and outages are AEP Ohio's responsibility and are regulated by the Public Utilities Commission of Ohio.

Central Ohio holds several Level I and Level II cultivators under the Division of Cannabis Control licensing framework, plus a growing dispensary count after S.B. 56 [oh-lsc-sb56-final-analysis]. Franklin County facilities are overwhelmingly AEP Ohio accounts.

Delivery classes and what puts you in one

The September 2026 Ohio Power Company Tariff Book organizes non-residential distribution as follows [aep-ohio-rates]:

Schedule	Description	Typical cannabis account
GS-1	Small, non-demand	Dispensaries, small offices
GS-2	Demand-metered secondary	Mid-sized grows, processors
GS-3	Larger secondary or primary	Level I and II cultivators
GS-4	Transmission-level	Very large industrial loads

GS-2 and above pay a per-kW distribution demand charge on billed demand [aep-ohio-rates]. Pull class thresholds, ratchet language, and current $/kW from the tariff book before budgeting. AEP Ohio publishes a monthly tariff book and rate bill-calculation spreadsheet on its rates page [aep-ohio-rates].

Placement follows measured peak demand and service voltage. A dispensary peaking under the GS-1 threshold pays primarily per kWh. A Level II cultivator with 400 kW of lighting plus HVAC lands on GS-2 or GS-3 with full demand billing.

Demand charge structure

For demand-metered accounts, the monthly peak 15-minute demand drives the per-kW distribution line [aep-ohio-rates]. Confirm ratchet and minimum-demand provisions on the current tariff sheet.

Assume 420 kW billing demand on GS-2. Every dollar per kW on the distribution demand line is $420 per month on that charge alone, before energy, riders, and supply. Summer dehumidification peaks often set billing demand even when lighting schedule is flat. See demand charges explained.

Primary voltage service may be available on GS-3 for larger loads. Review transformer ownership and primary service requirements with AEP Ohio during buildout.

Default supply and the Price to Compare

Customers who do not choose a CRES provider receive the Standard Service Offer, procured through PUCO-supervised wholesale auctions and reset every June 1 [oh-energychoice-glossary]. The Price to Compare on the PUCO Apples to Apples chart is the benchmark for comparing supplier offers [oh-energychoice-glossary].

All AEP Ohio customers are in PJM. Capacity and NITS pass-throughs in SSO prices were sharply higher in the 2026/27 delivery year [oh-energychoice-glossary]. A CRES contract must specify whether those components are bundled or passed through.

Commercial offers above small-business size are quoted individually [oh-energychoice-glossary]. Large cultivators should benchmark against trailing twelve-month supply cost or competitive bids.

CRES supply and billing options

Any commercial customer may enroll with a PUCO-certified CRES provider [oh-energychoice-glossary]. The supplier submits enrollment; AEP Ohio processes it on the next meter read. Delivery charges stay the same [oh-energychoice-glossary].

Consolidated AEP Ohio billing with the CRES supply charge on the same bill is the common arrangement today. H.B. 15 allows CRES direct billing in future years [oh-energychoice-glossary].

Efficiency programs

AEP Ohio's Efficient Products for Business program offers fixed per-unit incentives for qualifying efficient equipment, with some lighting, HVAC, and refrigeration measures shifted to Incentive NOW point-of-sale rebates through participating distributors [aep-ohio-efficient-products]. Ohio's H.B. 6 (2019) ended the statewide efficiency mandate, so offerings are narrower than in neighboring states [aep-ohio-efficient-products]. Confirm DLC-listed horticultural LED eligibility before purchase.

The Ohio Energy Loan Fund offers low-interest loans for projects that cut use by at least 15% with a required audit [oh-energy-loan-fund].

Interconnection and metering notes

Facilities in buildout should coordinate service size, transformer placement, and metering voltage with AEP Ohio before energizing. Demand-metered service requires an interval-capable meter. Request interval data once the account is running to support CRES bidding and peak management. See interval data and AMI meters.

Columbus corridor buildout pressure

Franklin County Level I and Level II expansions after S.B. 56 concentrate load in AEP Ohio territory [oh-lsc-sb56-final-analysis]. Substation capacity in industrial parks south of I-70 is finite. Early coordination with AEP on primary service and dual-feed options avoids re-engineering after canopy expansion.

Competitive supplier landscape

The PUCO certifies CRES providers statewide [oh-energychoice-glossary]. AEP Ohio accounts compare offers against the AEP Ohio Apples to Apples column, not FirstEnergy values. Brokers should present three to five certified suppliers with identical pass-through assumptions.

Outage planning for continuous cultivation

AEP Ohio owns delivery reliability regardless of CRES supply choice [oh-energychoice-glossary]. Level I grows with 18-hour photoperiods need backup generation or load-shed plans for extended outages. See backup generators for cannabis facilities. Critical-load panels that separate HVAC and lighting reduce restart spikes when power returns, protecting the monthly billing demand peak.

Tax and 280E context

Energy is a deductible operating expense for state-licensed operators but federal 280E limits deductibility for plant-touching businesses. Better utility rate outcomes still improve cash flow even when federal deduction is disallowed. See 280E and energy cost control for planning context, not tax advice. State-level electricity expense still flows through operating budgets regardless of federal deductibility treatment.

Confirm any tax treatment with a qualified advisor before modeling cash flow from utility savings.

GS class thresholds and when to request primary service

AEP Ohio splits non-residential delivery into GS-1 (small, non-demand), GS-2 (demand-metered secondary), GS-3 (larger secondary or primary), and GS-4 (largest, transmission-level) [aep-ohio-rates]. Level II cultivators near 15,000 square feet often land on GS-2 or GS-3 once flower rooms energize. Level I sites planning expansion toward 100,000 square feet should model GS-3 or GS-4 at full buildout during the initial service application [oh-lsc-sb56-final-analysis]. Pull current kW thresholds and ratchet language from the September 2026 Ohio Power Company Tariff Book before assuming a one-month peak rolls off next month [aep-ohio-rates].

Columbus metro cannabis footprint

Central Ohio hosts a large share of Ohio's 37 cultivators and many dispensaries after S.B. 56 consolidated licensing [oh-lsc-sb56-final-analysis]. Franklin and surrounding counties are overwhelmingly AEP Ohio territory in PJM [aep-ohio-rates]. Facilities in New Albany, Groveport, and Pataskala industrial corridors compete for three-phase service with other high-load tenants; submit load letters early in the lease negotiation [aep-ohio-rates].

Prescriptive efficiency and Incentive NOW rebates

AEP Ohio Efficient Products for Business offers fixed per-unit incentives for qualifying equipment, with some lighting and HVAC shifted to point-of-sale Incentive NOW rebates through participating distributors [aep-ohio-efficient-products]. Confirm DLC-listed horticultural LED eligibility before purchase because Ohio ended its statewide efficiency mandate in 2020 and measure lists change [aep-ohio-efficient-products]. Custom projects may qualify for the Ohio Energy Loan Fund if they cut use at least 15 percent after an audit [oh-energy-loan-fund].

Groveport and central Ohio industrial load

Columbus suburbs continue to add cannabis-adjacent warehouse and cultivation buildouts on AEP Ohio [oh-lsc-sb56-final-analysis]. Service requests should include phased load schedule: veg only, flower add, expansion to full Level I canopy [oh-lsc-sb56-final-analysis]. AEP may assign GS-2 at initial energization and review upward after twelve months of interval history [aep-ohio-rates]. CRES suppliers price better with that phased forecast than with nameplate lighting wattage alone [oh-energychoice-glossary].

GS-4 and transmission-level considerations

Level I cultivators at full 100,000 square foot expansion may approach GS-4 transmission-level thresholds [oh-lsc-sb56-final-analysis] [aep-ohio-rates]. Engage AEP Ohio account management and your electrical engineer before ordering transformers [aep-ohio-rates]. CRES suppliers may require minimum term and credit support at these load levels [oh-energychoice-glossary]. PJM network charges scale with load factor and zone [oh-energychoice-glossary].

Demand response and cultivator load

Flat lighting load limits demand-response participation value, but HVAC and dehumidification may flex in some programs [aep-ohio-rates]. See demand response programs. Confirm program rules with AEP Ohio before committing production schedules [aep-ohio-rates].

Annual procurement checklist for AEP Ohio accounts

January: download current Ohio Power Company Tariff Book and verify GS class thresholds [aep-ohio-rates]. February: export prior-year interval CSV if available [aep-ohio-rates]. March: review cultivator expansion plans against service size [oh-lsc-sb56-final-analysis]. April: solicit CRES quotes if contract expires before September [oh-energychoice-glossary]. May: compare bids to posted Price to Compare snapshot before June 1 reset [oh-energychoice-glossary]. June: archive Apples to Apples benchmark for your operating company [oh-energychoice-glossary]. July through September: monitor dehumidification peaks against billing demand [noaa-cag-ohio]. October: review rider true-ups on autumn bills [aep-ohio-rates]. November: confirm efficiency program measure lists before capex approvals [aep-ohio-efficient-products]. December: calendar contract notice windows and license compliance dates [oh-dcc-cultivators-processors].

Level I cultivators in Franklin County should coordinate AEP engineering studies with building permit timelines [aep-ohio-rates]. Undersized service causes reclassification after expansion and can trigger minimum demand rules [aep-ohio-rates]. CRES suppliers need realistic phased load forecasts, not nameplate wattage alone [oh-energychoice-glossary]. PJM capacity pass-through language should match across all bids in an RFP [oh-energychoice-glossary].

Confirm GS class after twelve months of interval history if initial witness test used partial load [aep-ohio-rates]. Reclassification mid-contract can shift CRES savings calculations [oh-energychoice-glossary].

Franklin County buildouts should align PUCO complaint contacts with vendor contracts for unauthorized enrollment disputes [oh-energychoice-glossary].

Related reading

• Ohio hub: market overview
• Commercial electricity rates: benchmarks
• How to switch suppliers: enrollment steps