New Ohio Substation Ready, But Intel’s Delays Leave It Powerless

Columbus, Ohio — American Electric Power (AEP) of Ohio will complete its Green Chapel Station substation by August, but it currently lacks customers to supply power.

This 500-megawatt facility was designed to power Intel‘s upcoming chip factories in Licking County. The first Intel factory was originally set to open this year, but delays have shifted that timeline. With no factory operations ready, AEP Ohio cannot recover its construction costs immediately upon project completion.

To address the financial impact of these delays, AEP and Intel have petitioned the Public Utilities Commission of Ohio. The request, filed on June 5, seeks to modify their previously approved agreement, allowing AEP to charge Intel for any excess construction costs stemming from the delays.

AEP Ohio spokeswoman Laura Arenschield characterized the filing as largely a formality. “AEP Ohio is committed to economic development in Ohio, and we’re committed to providing Intel the power it needs to bring this project to life,” she said in an email.

The original agreement, established in 2024, outlined that AEP would supply energy to Intel’s 1,000-acre site, enough to power approximately 450,000 homes. Intel, in turn, is set to pay a modified rate for this electricity, though specific figures were not disclosed.

According to the latest filing, AEP’s construction of the substation is under budget at $84.7 million, compared to the projected $95.1 million. Intel will be responsible for any excess costs should the overall expenses exceed initial estimates, highlighting their financial responsibility amidst the delays.

Intel’s investment in the new factories, estimated at $28 billion, marks the largest industrial investment in Ohio’s history and is expected to create numerous jobs, including a substantial payroll of $405 million annually. The factories faced setbacks, originally expected to be operational this year now projected for 2030 or 2031.

As discussions unfold, both companies are eager to adapt to the evolving landscape and ensure the agreement aligns with their commitments and ongoing developments.