As highlighted in our February overview of the U.S. energy landscape, electricity demand continues to climb—and with it, energy costs. One of the primary drivers behind this increase is the explosive growth of AI and cryptocurrency data centers, which are placing immense pressure on the power grid.
Natural gas—responsible for generating 40–50% of the nation’s electricity—is experiencing a surge in demand as utilities scramble to meet this new load. TCO Energy Corp reports a dramatic rise in natural gas costs, and pipeline owners are now being forced to expand infrastructure rapidly to support electricity generation needs.
According to a July 2024 Bloomberg report, “AI is already wreaking havoc on global power systems… The rise of artificial intelligence is now turbocharging demand for bigger data centers, transforming the landscape even more and taxing regional energy grids.” TC Energy CEO François Poirier reinforced this sentiment during a Toronto investor meeting, stating:
“In my decades of working with this industry, I’ve never seen such strong prospects for North America’s natural gas power demand… It’s about addition, not just energy transition.” — Calgary Herald
Impact on Ohio Natural Gas Consumers
Ohio residents, particularly those served by Columbia Gas of Ohio, are already feeling the effects of this shift. As of April 1, 2025, Columbia Gas charges have doubled, increasing from NYMEX Settlement + $0.162/ccf to $0.325/ccf.
According to EnergyChoice.Ohio.gov,
“The Retail Price Adjustment is based on results of a February 2025 SCO Auction, which selected seven SCO suppliers for April 2025 through March 2026.”
More than 1.5 million residential and commercial customers will be impacted by this rate adjustment, which applies to the Standard Choice Offer (SCO) program that determines gas delivery rates through competitive auctions. Notably, the $0.325/ccf rate does not include the cost of the gas commodity itself—only the charge to deliver the gas. Consumers are also exposed to price volatility tied to the natural gas index.
With such unprecedented demand growth and infrastructure strain, these price hikes may not be temporary. Many experts believe they are a new normal for utility costs in regions like Ohio.
Customers that are on a variable rate with a utility will see this change in their bill along with any changes in the actual commodity price. But customers that have a fixed rate with a supplier will see this increase as an increase in the delivery part of their bill.
Looking to Offset Rising Utility Bills?
Visit MSI Utilities to explore ways to manage and reduce energy costs. You can also request a free quote to see how much you could save.
For more information on this change read more in the following articles:
https://www.reuters.com/business/energy/tc-energys-first-quarter-profit-misses-estimates-2025-05-01/