Amazon Affiliate Files for Price Concession

AEP and Vadata, Inc. (an affiliate of Amazon Web Services) filed a joint application for a Unique Economic Development Arrangement as part of Vadata’s plan to build and operate “cloud computing data centers” at three Ohio locations.

The arrangement proposes to significantly discount the amount that Vadata must pay under riders that are calculated on a kWh basis, with the discounts escalating as Vadata develops more data centers, and to exempt Vadata completely from the obligation to pay other riders.

Although the arrangement purports to offer Vadata these incentives without requiring other AEP customers to pay forgone revenue, the arrangement will likely shift revenue responsibility to other customers paying the same riders.

Members of the OMA Energy Group will review the application and determine a position on the matter. Contact Ryan Augsburger to learn more about the OMA Energy Group. 9/14/2017