---
title: "Tariff: what it means · The AI Compute Race · DRYBURGH"
source: https://dryburgh.com/vol1/glossary/tariff
description: "Tariff: The word has two senses in the chapters. A trade tariff is a tax on imports, and a utility's tariff is its published schedule of rates and terms."
---

# Tariff

What does “Tariff” mean?

TariffThe word has two senses in the chapters. A trade tariff is a tax on imports, and a utility’s tariff is its published schedule of rates and terms. *Chapter 6.*

From *The AI Compute Race*. [Read the book](https://dryburgh.com/vol1#buy)

## Where the book uses it

- [Chapter 6 — Firm, Around-the-Clock](https://dryburgh.com/vol1/notes/chapter-6)Where the electricity comes from: grid queues, transformers, turbines and the firm power a datacenter needs every hour of the year, on calendars the buildout does not control.

## Sources that use it

- AEP Ohio, “New process advances 5.6 GW of data center projects,” 13 February 2026 (the page’s own title is “AEP Ohio Updates PUCO on Data Center Load: Figures Show Tariff is Working”; its figures as of 12 February 2026: of about 30,000 MW requested before the tariff, “13,022.7 MW asked and paid for a study,” 5,642 MW signed after the tariff took effect beside “12,219 MW of data center contracts signed before the tariff went into effect,” 17,861 MW in all “scheduled to come online progressively through 2035”) [In the Sources](https://dryburgh.com/vol1/sources/company#aep-ohio-funnel)
- Federal Energy Regulatory Commission, order in PJM Interconnection, L.L.C., Docket No. ER26-3515-000, 197 FERC ¶ 61,019, “Order Accepting Tariff Revisions in Part and Rejecting Tariff Revisions in Part,” issued 9 October 2026 (“In this order, we accept PJM’s proposed Tariff revisions to establish a definition of Large Load and a Large Load Registry, effective October 12, 2026, as requested”; “We reject PJM’s remaining proposed Tariff revisions”; “establishing the threshold to qualify as a Large Load at a cumulative peak of 50 MW strikes a just and reasonable balance”; “Although we are rejecting PJM’s proposal, PJM may consider refiling an alternative proposal under FPA section 205”; Commissioner Rosner concurring). [In the Sources](https://dryburgh.com/vol1/sources/filing#ferc-er26-3515-oct26)
- Federal Energy Regulatory Commission, PJM Interconnection, L.L.C., Docket No. ER26-1556-000, Order Accepting Tariff Revisions, 195 FERC ¶ 61,076, 28 April 2026, effective 29 April 2026 (“we accept the proposed Tariff revisions, effective April 29, 2026,” extending “the existing price cap of approximately $325/MW-day (UCAP) and price floor of approximately $175/MW-day (UCAP) to all RPM auctions for the 2028/2029 and 2029/2030 Delivery Years”; PJM’s Board had decided on 12 February 2026 “to seek an extension of the current price collar,” citing the Statement of Principles Regarding PJM of the National Energy Dominance Council and the thirteen governors, and PJM filed on 27 February 2026) [In the Sources](https://dryburgh.com/vol1/sources/filing#ferc-pjm-collar-order-apr26)
- Indiana Utility Regulatory Commission, final order in Cause No. 46097, Indiana Michigan Power Company’s petition to modify its Industrial Power Tariff, approved 19 February 2025 (a settlement every party signed: on 22 November 2024 I&M filed the Stipulation and Settlement Agreement “on behalf of itself, the OUCC, and all intervenors” — the Citizens Action Coalition, Amazon Data Services, the Data Center Coalition, Google and Microsoft — as unopposed; Settlement Agreement Attachment A fixes the monthly billing demand for a Large Load Customer at “in no event less than the greater of (a) 80 percent of the Large Load Customer’s contract capacity specified for the applicable time period of the Contract Term; or (b) 80 percent of the Large Load Customer’s highest previously established Monthly Billing Demand during the past 11 months”; I&M had proposed a 90 percent minimum and a 150 MW threshold, “the DCC proposed 70% on production demand; 60% for the OSS/PJM Rider, and Amazon and Google proposed 60%”, and the OUCC and CAC backed the utility’s figure; the order also directs semi-annual Large Load Customer reports, the first within six months, and holds their contents confidential as trade secret). [In the Sources](https://dryburgh.com/vol1/sources/filing#iurc-46097-feb25)
- Joint Petition for Reopening or Rehearing, in the Application of Wisconsin Electric Power Company for Approval of its Very Large Customer and Bespoke Resources Tariffs, Public Service Commission of Wisconsin docket 6630-TE-113, received 10 June 2026 (PSC REF# 593736; citing the “Affidavit of Julia Robin in Support of Joint Petition for Reopening or Rehearing on behalf of Oracle Corporation”; Oracle Corporation the “ultimate parent company of Oracle America Cloud Services LLC, the customer who will take service under the proposed tariffs for phase 1 of the Lighthouse data center in Port Washington”; read from Midwest Environmental Advocates’ copy, 34 pages, on 11 October 2026; “neither Oracle nor its subsidiary meets the Tangible Net Worth or liquidity tests”; a tenth of the security “currently estimated at approximately $700 million at its highest level”; Oracle’s rating BBB). [In the Sources](https://dryburgh.com/vol1/sources/filing#psc-wi-oracle-petition-jun26)

And 1 more: [search the Sources](https://dryburgh.com/vol1/sources).

## Related terms

- [Capital recovery](https://dryburgh.com/vol1/glossary/capital-recovery)
- [Backstop](https://dryburgh.com/vol1/glossary/backstop)
- [Batch Zero](https://dryburgh.com/vol1/glossary/batch-zero)
- [Behind the meter](https://dryburgh.com/vol1/glossary/behind-the-meter)
- [Beignet](https://dryburgh.com/vol1/glossary/beignet)
- [Bridge power](https://dryburgh.com/vol1/glossary/bridge-power)
- [Capacity auction](https://dryburgh.com/vol1/glossary/capacity-auction)
- [Combined-cycle](https://dryburgh.com/vol1/glossary/combined-cycle)
- [Curtailment](https://dryburgh.com/vol1/glossary/curtailment)
- [Demand response](https://dryburgh.com/vol1/glossary/demand-response)
- [Early-termination fee](https://dryburgh.com/vol1/glossary/early-termination-fee)
- [ERCOT](https://dryburgh.com/vol1/glossary/ercot)

From the glossary of The AI Compute Race.

- [Campuses](https://dryburgh.com/vol1/ledger)
- [Tests](https://dryburgh.com/vol1/tests)
- [Scorecard](https://dryburgh.com/vol1/scorecard)
- [Data](https://dryburgh.com/vol1/data/releases)
- [Chapter by chapter](https://dryburgh.com/vol1/companion)
- [The record at a glance](https://dryburgh.com/vol1/observatory)
- [The machine](https://dryburgh.com/vol1/machine)
- [One campus, four futures](https://dryburgh.com/vol1/hyperion)
- [Glossary](https://dryburgh.com/vol1/glossary)
- [People](https://dryburgh.com/vol1/people)
- [Sources](https://dryburgh.com/vol1/sources)
- [Notes](https://dryburgh.com/vol1/notes)
- [Where the book was wrong](https://dryburgh.com/vol1/corrections)
- [Where its sources were wrong](https://dryburgh.com/corrections?book=vol1)
- [The Paper](https://dryburgh.com/vol1/paper)
- [Consent](https://dryburgh.com/vol1/consent)
- [Who builds and pays](https://dryburgh.com/vol1/parties)

*The AI Compute Race: Five Races, One Machine* is a book by Lee S. Dryburgh, the first volume of THE COMPUTE ECONOMY, published by Dryburgh, an imprint of Contestra OÜ, Tallinn, Estonia; its record closes on 8 November 2026.

[About the book](https://dryburgh.com/vol1)[Tell me when it is out](https://dryburgh.com/vol1#notify)
