Ohio Cannabis Extraction and Processing Facility Energy: Chillers, Ovens, and Flat Loads in PJM

How a processor load differs from a grow

A cultivation facility presents a utility with a predictable block: lights on for 12 or 18 hours, HVAC and dehumidification layered on top, and a summer peak that often exceeds winter demand. An extraction lab is messier. Batch equipment creates spikes when chillers, vacuum ovens, and solvent-recovery units start together. C1D1 ventilation runs continuously and sets a baseline kW that never turns off during production hours. The monthly peak might come from a single batch start sequence rather than from lighting.

Ohio holds 46 dual-use processor licenses as of February 18, 2026 under the program restructured by S.B. 56 [oh-lsc-sb56-final-analysis]. Many processors sit in industrial parks served by AEP Ohio or FirstEnergy in central and northern Ohio, with a smaller cluster near Cincinnati on Duke Energy Ohio and Dayton on AES Ohio. All four territories are in PJM with full CRES choice [oh-energychoice-glossary].

Major load components

See extraction facility energy loads for equipment-level detail. In Ohio's climate the dominant lines are:

Load	Behavior	Billing impact
C1D1 exhaust and make-up air	Continuous during production	Sets baseline kW; winter heating on make-up air drives kWh
Recirculating chillers	Cyclical, high starting current	Spike risk if aligned with other equipment
Vacuum ovens	Batch, moderate kW	Adds to peak if ovens start with chillers
Solvent recovery	Continuous moderate load	Flattens load factor between batches
Lab HVAC	Continuous	Moderate kW, year-round

Ohio's 5,689 heating degree days mean make-up air heating is a real winter cost [noaa-cag-ohio]. Summer cooling degree days are only 792, so chiller sensible load is moderate, but humid summers still add latent work on ventilation [noaa-cag-ohio].

Rate class placement

Non-residential service at AEP Ohio runs GS-1 through GS-4 by size and voltage [aep-ohio-rates]. FirstEnergy uses GS, GP, GSU, and GT [fe-toledo-edison-tariff]. A standalone extraction facility with 150 to 300 kW of connected load typically lands on demand-metered secondary service.

Assume a processor near Columbus with 180 kW peak demand (continuous ventilation plus one chiller and two ovens starting together) and 95,000 kWh monthly use. At Ohio's June 2026 commercial average of 13.77 cents/kWh [eia-epm-5-6-a], energy alone is about $13,100 per month. Add per-kW distribution demand on GS-2 (confirm current $/kW on the AEP Ohio tariff) and the delivery side adds several thousand more.

Because extraction loads tend to run flatter than grows once ventilation baseline is established, supply pricing often favors the operator. A CRES supplier can price a fixed contract against a 0.55 to 0.65 load factor rather than the 0.75+ common in cultivation. Compare offers against the SSO Price to Compare, reset every June 1 [oh-energychoice-glossary].

Scheduling process loads around peaks

You cannot turn off C1D1 fans, but you can sequence batch equipment:

1. Start chillers before ovens if the chiller has the longer ramp time.
2. Avoid running solvent-recovery heat and vacuum oven heat in the same 15-minute interval.
3. If the facility has multiple meters or subpanels, consider whether shared service keeps everything on one billing demand.

Interval data from the utility helps identify which batch sequence set the last three months' peaks. See interval data and AMI meters.

Supply contract choices for processors

PJM capacity and NITS pass-throughs were sharply higher in the 2026/27 delivery year [oh-energychoice-glossary]. For a processor with moderate peak but high run hours, a block-and-index contract that covers baseline kWh at a fixed price and lets batch spikes float on index may cost less than a fully fixed contract priced for worst-case demand.

Read early termination and auto-renewal language before signing. Ohio allows early termination fees on CRES contracts [oh-energychoice-glossary].

Power factor and motor loads

Chillers, compressors, and large exhaust fans can pull reactive power. If your bill shows a power factor adjustment, address it during buildout with capacitors or VFDs rather than paying the penalty for years. See power factor penalties.

Co-located processor and cultivator meters

Some Ohio dual-use operators process on the same campus as cultivation. Shared service agreements can consolidate load under one demand meter, which helps load factor for CRES pricing but merges peak events from both operations. Model worst-case simultaneous peaks before choosing single vs dual service [aep-ohio-rates].

PJM pass-through on processor contracts

Processors with 24-hour ventilation baselines benefit from block-and-index products that fix baseline kWh and float spikes [oh-energychoice-glossary]. Confirm whether the CRES quote passes through PJM capacity at market or fixed adder. The 2026/27 delivery year capacity costs were elevated [oh-energychoice-glossary].

Testing lab load as a comparison

Testing laboratories licensed by the Division of Cannabis Control draw lower peaks than hydrocarbon extraction but still run HVAC and instrument loads continuously [oh-dcc-cultivators-processors]. Labs on the same industrial park transformer as a processor may share demand billing. Clarify meter ownership in lease exhibits.

Demand response limited value

Ohio ended mandatory efficiency portfolios in 2020 [aep-ohio-efficient-products]. Limited demand response exists for commercial customers but C1D1 ventilation limits curtailment depth. Processors should not count on DR revenue to offset demand charges the way data centers might in other markets. Focus on batch sequencing and CRES fixed-price supply instead [oh-energychoice-glossary].

C1D1 ventilation as the baseline load

Hydrocarbon and ethanol extraction labs run classified ventilation continuously [oh-lsc-sb56-final-analysis]. That baseline kW cannot be shed for demand response. Batch equipment (chillers, ovens, solvent recovery) stacks on top and sets the monthly peak when starts align in the same fifteen-minute interval [fe-toledo-edison-tariff]. Ohio processors numbering 46 dual-use licenses as of February 2026 sit on all four IOU territories [oh-lsc-sb56-final-analysis].

Winter make-up air in Ohio

Ohio's long heating season (5,689 HDD) means preheating make-up air for C1D1 rooms dominates winter kWh [noaa-cag-ohio]. Summer cooling is moderate at 792 CDD, but humid outdoor air still adds latent load in July and August [noaa-cag-ohio]. Schedule maintenance shutdowns in shoulder months when ventilation load is lower [noaa-cag-ohio].

CRES supply for batch-heavy load shapes

Processors with flat ventilation and spiky batch load may fit block-and-index supply products better than pure fixed price [oh-energychoice-glossary]. See the Ohio block-and-index case study and extraction facility energy loads. Compare PJM capacity pass-through treatment on each product type before signing [oh-energychoice-glossary].

Solvent recovery and overnight load

Solvent recovery skids often run overnight, flattening load factor but keeping kWh high [fe-toledo-edison-tariff]. Batch ovens timed to start after chiller ramp can reduce fifteen-minute peaks [fe-toledo-edison-tariff]. Ohio full CRES choice lets processors bid supply immediately unlike Michigan capped markets [oh-energychoice-glossary]. Compare energy broker vs direct supplier for multi-site RFPs [oh-energychoice-glossary].

NEC Article 500 and continuous ventilation

Classified areas require ventilation interlocks that prevent shedding baseline kW [fe-toledo-edison-tariff]. Maintenance windows should be scheduled in shoulder months when heating load on make-up air is lower [noaa-cag-ohio]. Processors numbering 46 statewide compete for industrial service in four IOU territories [oh-lsc-sb56-final-analysis].

Post-S.B. 56 processor licensing

Dual-use processor licenses consolidated under S.B. 56 may co-locate with cultivation at the same address [oh-lsc-sb56-final-analysis]. Combined meter load requires demand-metered service planning from day one [aep-ohio-rates]. Separate submeters for COGS even on one utility meter [fe-toledo-edison-tariff].

Batch load management in four IOU territories

Forty-six dual-use processor licenses split across AEP, FirstEnergy, Duke, and AES [oh-lsc-sb56-final-analysis]. C1D1 ventilation sets continuous baseline kW [fe-toledo-edison-tariff]. Chillers, ovens, and recovery skids create batch spikes [fe-toledo-edison-tariff]. Winter make-up air heating dominates kWh with 5,689 HDD [noaa-cag-ohio].

Ohio allows immediate CRES choice unlike Michigan [oh-energychoice-glossary]. Block-and-index products may fit batch shapes [oh-energychoice-glossary]. Co-located cultivation and processing merge peaks on one meter after S.B. 56 [oh-lsc-sb56-final-analysis].

File queue paperwork when construction loan closes, not at certificate of occupancy [mcl-460-10a].

Compliance and documentation practices

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every June benchmark reset [oh-lsc-sb56-final-analysis]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [oh-energychoice-glossary]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites so board reporting reflects operational reality rather than blended averages [aep-ohio-rates]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [fe-toledo-edison-tariff].

File queue paperwork when construction loan closes, not at certificate of occupancy [mcl-460-10a].

Compliance and documentation practices

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every June benchmark reset [oh-lsc-sb56-final-analysis]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [oh-energychoice-glossary]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [aep-ohio-rates]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [fe-toledo-edison-tariff].

Related reading

• Ohio hub: market overview and utility territories
• Commercial electricity rates: demand charge structure by IOU
• How to switch suppliers: CRES enrollment procedure