As Passed by the House
136th General Assembly
Regular Session Sub. H. B. No. 15
2025-2026
Representative Klopfenstein
Cosponsors: Representatives Brennan, Dovilla, Rogers, Thomas, D., Williams,
Abdullahi, Barhorst, Bird, Brownlee, Click, Creech, Daniels, Dean, Demetriou,
Fischer, Glassburn, Grim, Gross, Hall, D., Hall, T., Hiner, Holmes, John, King,
Kishman, Lampton, Lawson-Rowe, Lear, Lorenz, Mathews, A., Mathews, T.,
McClain, Miller, J., Miller, M., Mohamed, Newman, Piccolantonio, Plummer, Rader,
Ray, Ritter, Robb Blasdel, Roemer, Salvo, Sigrist, Somani, Stewart, Synenberg,
Thomas, C., Troy, Upchurch, Willis, Young
To amend sections 122.6511, 4905.03, 4906.01,
4906.02, 4906.03, 4906.04, 4906.06, 4906.07,
4906.10, 4906.201, 4909.04, 4909.05, 4909.052,
4909.06, 4909.07, 4909.08, 4909.15, 4909.156,
4909.173, 4909.174, 4909.18, 4909.19, 4909.42,
4928.01, 4928.02, 4928.05, 4928.08, 4928.14,
4928.141, 4928.142, 4928.144, 4928.151, 4928.17,
4928.20, 4928.23, 4928.231, 4928.232, 4928.34,
4928.542, 4928.64, 4928.645, 4929.20, 4933.81,
4935.04, 5727.01, 5727.111, and 5727.75; to
enact new section 4906.105 and sections 1.66,
122.161, 4903.27, 4905.321, 4905.331, 4909.041,
4909.042, 4909.159, 4909.181, 4909.192,
4909.193, 4928.041, 4928.101, 4928.102,
4928.149, 4928.73, 4928.83, 4928.86, 4929.221,
4929.222, 4934.01, 4934.011, 4934.04, 4934.05,
4934.06, 4934.07, 4934.071, 4934.072, 4934.08,
4934.09, 4934.10, 4934.11, 4934.12, 4934.13,
4934.14, 4934.17, 4934.18, 4934.20, 4934.21,
4934.23, 4934.25, 4934.26, 4934.27, 4934.35,
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4934.36, 4934.37, 4934.38, and 5727.76; and to
repeal sections 3706.40, 3706.41, 3706.43,
3706.431, 3706.45, 3706.46, 3706.49, 3706.491,
3706.55, 3706.551, 3706.59, 3706.63, 3706.65,
4906.105, 4928.143, 4928.148, 4928.47, and
4928.642 of the Revised Code to amend the
competitive retail electric service law, modify
taxation of certain public utility property, and
repeal parts of H.B. 6 of the 133rd General
Assembly.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.6511, 4905.03, 4906.01,
4906.02, 4906.03, 4906.04, 4906.06, 4906.07, 4906.10, 4906.201,
4909.04, 4909.05, 4909.052, 4909.06, 4909.07, 4909.08, 4909.15,
4909.156, 4909.173, 4909.174, 4909.18, 4909.19, 4909.42,
4928.01, 4928.02, 4928.05, 4928.08, 4928.14, 4928.141, 4928.142,
4928.144, 4928.151, 4928.17, 4928.20, 4928.23, 4928.231,
4928.232, 4928.34, 4928.542, 4928.64, 4928.645, 4929.20,
4933.81, 4935.04, 5727.01, 5727.111, and 5727.75 be amended and
new section 4906.105 and sections 1.66, 122.161, 4903.27,
4905.321, 4905.331, 4909.041, 4909.042, 4909.159, 4909.181,
4909.192, 4909.193, 4928.041, 4928.101, 4928.102, 4928.149,
4928.73, 4928.83, 4928.86, 4929.221, 4929.222, 4934.01,
4934.011, 4934.04, 4934.05, 4934.06, 4934.07, 4934.071,
4934.072, 4934.08, 4934.09, 4934.10, 4934.11, 4934.12, 4934.13,
4934.14, 4934.17, 4934.18, 4934.20, 4934.21, 4934.23, 4934.25,
4934.26, 4934.27, 4934.35, 4934.36, 4934.37, 4934.38, and
5727.76 of the Revised Code be enacted to read as follows:
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Sec. 1.66. As used in the Revised Code, unless the
context requires otherwise, all measures of electricity
described in watts, kilowatts, megawatts, or any derivative
thereof means such electricity expressed in alternating current.
Sec. 122.161. (A) As used in this section:
(1) "Subdivision" means a municipal corporation, township,
or county.
(2) "Legislative authority" means the legislative
authority of a municipal corporation, a board of the township
trustees, or a board of county commissioners.
(3) "Subdivision's territory" means, in the case of a
municipal corporation, the territory of the municipal
corporation; in the case of a township, the unincorporated
territory of the township; or, in the case of a county, the
unincorporated territory of the county.
(4) "Brownfield" has the same meaning as in section
122.6511 of the Revised Code.
(5) "Former coal mine" means a location that was, but is
no longer, used in connection with the extraction of coal from
its natural deposit in the earth.
(6) "Qualifying property" has the same meaning as in
section 5727.76 of the Revised Code.
(B) A legislative authority may adopt and certify to the
director of development an ordinance or resolution requesting
that the director designate the site of a brownfield or former
coal mine within the subdivision's territory as a priority
investment area. The ordinance or resolution shall describe the
boundaries of the proposed area and shall specify that
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qualifying property in the priority investment area shall be
exempt from taxation for five years pursuant to section 5727.76
of the Revised Code.
The director, upon receipt of that certification, shall
designate the proposed area as a priority investment area if the
director determines that the area meets the designation
standards set forth in rules adopted by the director. Those
standards shall specify that the director must prioritize the
designation of areas negatively impacted by the decline of the
coal industry.
The director shall notify the legislative authority of the
director's decision within ninety days after receiving the
certified ordinance or resolution. If the director does not
issue a decision within those ninety days, the request for
designation shall be considered approved by operation of law.
(C) The director of development shall immediately notify
the public utilities commission, the power siting board, and the
tax commissioner if the director approves the designation of a
priority investment area under division (B) of this section or
if the designation is approved by operation of law.
Sec. 122.6511. (A) As used in this section and section
122.6512 of the Revised Code:
(1) "Brownfield" means an abandoned, idled, or under-used
industrial, commercial, or institutional property where
expansion or redevelopment is complicated by known or potential
releases of hazardous substances or petroleum.
(2) "Lead entity" means a county, township, municipal
corporation, port authority, conservancy district, park district
or other similar park authority, county land reutilization
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corporation, or organization for profit.
(3) "Remediation" means any action to contain, remove, or
dispose of hazardous substances or petroleum at a brownfield.
"Remediation" includes the acquisition of a brownfield,
demolition performed at a brownfield, and the installation or
upgrade of the minimum amount of infrastructure that is
necessary to make a brownfield operational for economic
development activity.
(4) "County land reutilization corporation" has the same
meaning as in section 1724.01 of the Revised Code.
(5) "Priority investment area eligible project" means some
or all of the following activities necessary or conducive for
generating, transporting, storing, or transmitting electricity
at the site of a brownfield or former coal mine located in a
priority investment area designated under section 122.161 of the
Revised Code:
(a) Environmental or cultural resource site assessments;
(b) The monitoring, remediation, cleanup, or containment
of land to remove any condition or substance regulated by state
or federal environmental laws or regulations, including
hazardous substances, hazardous wastes, solid wastes, or
petroleum;
(c) The demolition and removal of existing structures,
grading, or other site work necessary to make a site or certain
real property that includes a brownfield or former coal mine
usable for economic development;
(d) The development of a remediation and reuse plan;
(e) The development or operation of a site for energy
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generation or battery storage.
(B)(1) There is hereby created the brownfield remediation
program to award grants for priority investment area eligible
projects and the remediation of brownfield sites throughout
Ohio. The program shall be administered by the director of
development pursuant to this section and rules adopted pursuant
to division (B)(2) of this section.
(2) The director shall adopt rules, under Chapter 119. of
the Revised Code, for the administration of the program. The
rules shall include provisions for determining project and
project sponsor eligibility, program administration, and any
other provisions the director finds necessary.
(3) The director shall not award a grant exceeding ten
million dollars to a priority investment area eligible project.
(C)(1) There is hereby created in the state treasury the
brownfield remediation fund. The fund shall consist of moneys
appropriated to it by the general assembly, and investment
earnings on moneys in the fund shall be credited to the fund.
The director shall reserve funds from each appropriation
to the fund to each county in the state. The amount reserved
shall be one million dollars per county, or, if an appropriation
is less than eighty-eight million dollars, a proportionate
amount to each county. Amounts reserved pursuant to this section
are reserved for one calendar year from the date of the
appropriation. After one calendar year, the funds shall be
available pursuant to division (D) of this section.
(2) A lead entity may submit an initial grant application
for the use of funds reserved under division (C)(1) of this
section to the director. The lead entity may later submit an
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amended application to the director, and the director may accept
and approve that application for use of funds up to the amount
reserved for that county.
(D) Funds from an appropriation not reserved under
division (C)(1) of this section shall be available for grants to
projects located anywhere in the state, and grants from those
funds shall be awarded to qualifying projects on a first-come,
first-served basis.
(E) The amendments to this section by this act H.B. 315 of
the 135th general assembly apply to new projects that are
applied for and awarded funding by the director of development
on and after the effective date of this amendment July 1, 2025.
Projects that are applied for or were applied for under this
section prior to that date July 1, 2025, shall be governed by
this section as it existed prior to that dateJuly 1, 2025.
Sec. 4903.27. For all cases involving an application
pursuant to section 4909.18 of the Revised Code, the public
utilities commission shall not permit any new discovery
beginning not later than two hundred fifteen days after the
application is determined to be complete.
Sec. 4905.03. As used in this chapter, any person, firm,
copartnership, voluntary association, joint-stock association,
company, or corporation, wherever organized or incorporated, is:
(A) A telephone company, when engaged in the business of
transmitting telephonic messages to, from, through, or in this
state;
(B) A for-hire motor carrier, when engaged in the business
of transporting persons or property by motor vehicle for
compensation, except when engaged in any of the operations in
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intrastate commerce described in divisions (B)(1) to (9) of
section 4921.01 of the Revised Code, but including the carrier's
agents, officers, and representatives, as well as employees
responsible for hiring, supervising, training, assigning, or
dispatching drivers and employees concerned with the
installation, inspection, and maintenance of motor-vehicle
equipment and accessories;
(C) An electric light company, when engaged in the
business of supplying electricity for light, heat, or power
purposes to consumers within this state, including supplying
electric transmission service for electricity delivered to
consumers in this state, but excluding a regional transmission
organization approved by the federal energy regulatory
commission; .
An electric light company does not include a self-
generator or mercantile customer self-power system.
(D) A gas company, when engaged in the business of
supplying artificial gas for lighting, power, or heating
purposes to consumers within this state or when engaged in the
business of supplying artificial gas to gas companies or to
natural gas companies within this state, but a producer engaged
in supplying to one or more gas or natural gas companies, only
such artificial gas as is manufactured by that producer as a by-
product of some other process in which the producer is primarily
engaged within this state is not thereby a gas company. All
rates, rentals, tolls, schedules, charges of any kind, or
agreements between any gas company and any other gas company or
any natural gas company providing for the supplying of
artificial gas and for compensation for the same are subject to
the jurisdiction of the public utilities commission.
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(E) A natural gas company, when engaged in the business of
supplying natural gas for lighting, power, or heating purposes
to consumers within this state. Notwithstanding the above,
neither the delivery nor sale of Ohio-produced natural gas or
Ohio-produced raw natural gas liquids by a producer or gatherer
under a public utilities commission-ordered exemption, adopted
before, as to producers, or after, as to producers or gatherers,
January 1, 1996, or the delivery or sale of Ohio-produced
natural gas or Ohio-produced raw natural gas liquids by a
producer or gatherer of Ohio-produced natural gas or Ohio-
produced raw natural gas liquids, either to a lessor under an
oil and gas lease of the land on which the producer's drilling
unit is located, or the grantor incident to a right-of-way or
easement to the producer or gatherer, shall cause the producer
or gatherer to be a natural gas company for the purposes of this
section.
All rates, rentals, tolls, schedules, charges of any kind,
or agreements between a natural gas company and other natural
gas companies or gas companies providing for the supply of
natural gas and for compensation for the same are subject to the
jurisdiction of the public utilities commission. The commission,
upon application made to it, may relieve any producer or
gatherer of natural gas, defined in this section as a gas
company or a natural gas company, of compliance with the
obligations imposed by this chapter and Chapters 4901., 4903.,
4907., 4909., 4921., and 4923. of the Revised Code, so long as
the producer or gatherer is not affiliated with or under the
control of a gas company or a natural gas company engaged in the
transportation or distribution of natural gas, or so long as the
producer or gatherer does not engage in the distribution of
natural gas to consumers.
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Nothing in division (E) of this section limits the
authority of the commission to enforce sections 4905.90 to
4905.96 of the Revised Code.
(F) A pipe-line company, when engaged in the business of
transporting natural gas, oil, or coal or its derivatives
through pipes or tubing, either wholly or partly within this
state, but not when engaged in the business of the transport
associated with gathering lines, raw natural gas liquids, or
finished product natural gas liquids;
(G) A water-works company, when engaged in the business of
supplying water through pipes or tubing, or in a similar manner,
to consumers within this state;
(H) A heating or cooling company, when engaged in the
business of supplying water, steam, or air through pipes or
tubing to consumers within this state for heating or cooling
purposes;
(I) A messenger company, when engaged in the business of
supplying messengers for any purpose;
(J) A street railway company, when engaged in the business
of operating as a common carrier, a railway, wholly or partly
within this state, with one or more tracks upon, along, above,
or below any public road, street, alleyway, or ground, within
any municipal corporation, operated by any motive power other
than steam and not a part of an interurban railroad, whether the
railway is termed street, inclined-plane, elevated, or
underground railway;
(K) A suburban railroad company, when engaged in the
business of operating as a common carrier, whether wholly or
partially within this state, a part of a street railway
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As Passed by the House
constructed or extended beyond the limits of a municipal
corporation, and not a part of an interurban railroad;
(L) An interurban railroad company, when engaged in the
business of operating a railroad, wholly or partially within
this state, with one or more tracks from one municipal
corporation or point in this state to another municipal
corporation or point in this state, whether constructed upon the
public highways or upon private rights-of-way, outside of
municipal corporations, using electricity or other motive power
than steam power for the transportation of passengers, packages,
express matter, United States mail, baggage, and freight. Such
an interurban railroad company is included in the term
"railroad" as used in section 4907.02 of the Revised Code.
(M) A sewage disposal system company, when engaged in the
business of sewage disposal services through pipes or tubing,
and treatment works, or in a similar manner, within this state.
As used in division (E) of this section, "natural gas"
includes natural gas that has been processed to enable
consumption or to meet gas quality standards or that has been
blended with propane, hydrogen, biologically derived methane
gas, or any other artificially produced or processed gas.
As used in this section, "gathering lines" has the same
meaning as in section 4905.90 of the Revised Code, and "raw
natural gas liquids" and "finished product natural gas liquids"
have the same meanings as in section 4906.01 of the Revised
Code.
As used in this section, "self-generator" has the same
meaning as in section 4928.01 of the Revised Code, and
"mercantile customer self-power system" has the same meaning as
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in section 4928.73 of the Revised Code.
Sec. 4905.321. (A) Notwithstanding section 4905.32 of the
Revised Code, all revenues collected from customers by a public
utility as part of a rider or rates that are later found to be
unreasonable, unlawful, or otherwise improper by the supreme
court shall be subject to refund from the date of the issuance
of the supreme court's decision until the date when, on remand,
the public utilities commission makes changes to the rider or
rates to implement the supreme court's decision.
(B) The commission shall order the payment of the refunds
described in division (A) of this section in a manner designed
to allocate the refunds to customer classes in the same
proportion as the charges were originally collected.
(C) The commission shall determine how to allocate any
remaining funds described in division (A) of this section that
cannot be refunded for whatever reason.
(D) The commission shall order the payment of the funds
described in division (A) of this section and shall determine
how to allocate any remaining funds that cannot be refunded not
more than thirty days after the date of the issuance of the
supreme court's decision.
Sec. 4905.331. (A) As used in this section:
(1) "Electric distribution utility" has the same meaning
as in section 4928.01 of the Revised Code.
(2) "Electric service" means any service involved in
supplying or arranging for the supply of electricity to ultimate
consumers in this state. "Electric service" includes "retail
electric service" as defined in section 4928.01 of the Revised
Code.
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As Passed by the House
(3) "Proceeding" includes a proceeding relating to
electric service under Chapters 4909. and 4928. of the Revised
Code.
(B) No electric distribution utility or its affiliate may
do either of the following to induce any party to a public
utilities commission proceeding to enter into a settlement of a
matter pending before the commission:
(1) Make a cash payment to that party;
(2) Enter into any agreement or any financial or private
arrangement with that party that is not made part of the public
case record.
(C) Notwithstanding division (B) of this section, the
commission may do any of the following:
(1) Reasonably allocate costs among rate schedules;
(2) Reasonably design rates within a rate schedule;
(3) Approve reasonable rates designed for particular
customers or classes of customers;
(4) Approve a resolution of a proceeding under section
4905.26 of the Revised Code;
(5) Approve payments to any governmental entity, nonprofit
organization, or other association for implementing low-income
weatherization service programs, subject to the following
conditions:
(a) The payments are at a rate that is reasonably tailored
to the costs of providing the programs.
(b) The payments are for programs that are subject to an
existing or new audit procedure.
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(c) The payments are not for low-income weatherization
education programs.
Sec. 4906.01. As used in Chapter 4906. of the Revised
Code:
(A) "Person" means an individual, corporation, business
trust, association, estate, trust, or partnership or any
officer, board, commission, department, division, or bureau of
the state or a political subdivision of the state, or any other
entity.
(B)(1) "Major utility facility" means:
(a) Electric generating plant and associated facilities
designed for, or capable of, operation at a capacity of fifty
megawatts or more;
(b) An electric transmission line and associated
facilities of a design capacity of one hundred sixty kilovolts
or more;
(c) A gas pipeline that is greater than five hundred feet
in length, and its associated facilities, is more than nine
inches in outside diameter and is designed for transporting gas
at a maximum allowable operating pressure in excess of one
hundred twenty-five pounds per square inch.
(2) "Major utility facility" does not include any of the
following:
(a) Gas transmission lines over which an agency of the
United States has exclusive jurisdiction;
(b) Any solid waste facilities as defined in section
6123.01 of the Revised Code;
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(c) Electric distributing lines and associated facilities
as defined by the power siting board;
(d) Any manufacturing facility that creates byproducts
that may be used in the generation of electricity as defined by
the power siting board;
(e) Gathering lines, gas gathering pipelines, and
processing plant gas stub pipelines as those terms are defined
in section 4905.90 of the Revised Code and associated
facilities;
(f) Any gas processing plant as defined in section 4905.90
of the Revised Code;
(g) Natural gas liquids finished product pipelines;
(h) Pipelines from a gas processing plant as defined in
section 4905.90 of the Revised Code to a natural gas liquids
fractionation plant, including a raw natural gas liquids
pipeline, or to an interstate or intrastate gas pipeline;
(i) Any natural gas liquids fractionation plant;
(j) A production operation as defined in section 1509.01
of the Revised Code, including all pipelines upstream of any
gathering lines;
(k) Any compressor stations used by the following:
(i) A gathering line, a gas gathering pipeline, a
processing plant gas stub pipeline, or a gas processing plant as
those terms are defined in section 4905.90 of the Revised Code;
(ii) A natural gas liquids finished product pipeline, a
natural gas liquids fractionation plant, or any pipeline
upstream of a natural gas liquids fractionation plant; or
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(iii) A production operation as defined in section 1509.01
of the Revised Code.
(C) "Commence to construct" means any clearing of land,
excavation, or other action that would adversely affect the
natural environment of the site or route of a major utility
facility, but does not include surveying changes needed for
temporary use of sites or routes for nonutility purposes, or
uses in securing geological data, including necessary borings to
ascertain foundation conditions.
(D) "Certificate" means a certificate of environmental
compatibility and public need issued by the power siting board
under section 4906.10 of the Revised Code or a construction
certificate issued by the board under rules adopted under
division divisions (E) or (F)to (H) of section 4906.03 of the
Revised Code.
(E) "Gas" means natural gas, flammable gas, or gas that is
toxic or corrosive.
(F) "Natural gas liquids finished product pipeline" means
a pipeline that carries finished product natural gas liquids to
the inlet of an interstate or intrastate finished product
natural gas liquid transmission pipeline, rail loading facility,
or other petrochemical or refinery facility.
(G) "Large solar facility" means an electric generating
plant that consists of solar panels and associated facilities
with a single interconnection to the electrical grid that is a
major utility facility.
(H) "Large wind farm" means an electric generating plant
that consists of wind turbines and associated facilities with a
single interconnection to the electrical grid that is a major
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utility facility.
(I) "Natural gas liquids fractionation plant" means a
facility that takes a feed of raw natural gas liquids and
produces finished product natural gas liquids.
(J) "Raw natural gas" means hydrocarbons that are produced
in a gaseous state from gas wells and that generally include
methane, ethane, propane, butanes, pentanes, hexanes, heptanes,
octanes, nonanes, and decanes, plus other naturally occurring
impurities like water, carbon dioxide, hydrogen sulfide,
nitrogen, oxygen, and helium.
(K) "Raw natural gas liquids" means naturally occurring
hydrocarbons contained in raw natural gas that are extracted in
a gas processing plant and liquefied and generally include
mixtures of ethane, propane, butanes, and natural gasoline.
(L) "Finished product natural gas liquids" means an
individual finished product produced by a natural gas liquids
fractionation plant as a liquid that meets the specifications
for commercial products as defined by the gas processors
association. Those products include ethane, propane, iso-butane,
normal butane, and natural gasoline.
(M) "Advanced transmission technologies" means software or
hardware technologies that increase the capacity, efficiency,
reliability, or safety of an existing or new electric
transmission system, including grid-enhancing technologies such
as dynamic line rating, advanced power flow controllers, and
topology optimization; advanced conductors; and other
technologies designed to reduce transmission congestion, or
increase the capacity, efficiency, reliability, or safety of an
existing or new electric transmission system.
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As Passed by the House
(N) "Advanced conductor" means a conductor with a direct
current electrical resistance that is at least ten per cent
lower than existing conductors of a similar diameter on the
electric transmission system while simultaneously increasing the
energy carrying capacity by at least seventy-five per cent.
Sec. 4906.02. (A)(1) There is hereby created within the
public utilities commission the power siting board, composed of
the chairperson of the public utilities commission, the director
of environmental protection, the director of health, the
director of development, the director of natural resources, the
director of agriculture, and a representative of the public who
shall be an engineer and shall be appointed by the governor,
from a list of three nominees submitted to the governor by the
office of the consumers' counsel, with the advice and consent of
the senate and shall serve for a term of four years. The
chairperson of the public utilities commission shall be
chairperson of the board and its chief executive officer. The
chairperson shall designate one of the voting members of the
board to act as vice-chairperson who shall possess during the
absence or disability of the chairperson all of the powers of
the chairperson. All hearings, studies, and consideration of
applications for certificates shall be conducted by the board or
representatives of its members.
In addition, the board shall include four legislative
members who may participate fully in all the board's
deliberations and activities except that they shall serve as
nonvoting members. The speaker of the house of representatives
shall appoint one legislative member, and the president of the
senate and minority leader of each house shall each appoint one
legislative member. Each such legislative leader shall designate
an alternate to attend meetings of the board when the regular
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legislative member appointed by the legislative leader is unable
to attend. Each legislative member and alternate shall serve for
the duration of the elected term that the legislative member is
serving at the time of appointment. A quorum of the board is a
majority of its voting members.
The representative of the public and, notwithstanding
section 101.26 of the Revised Code, legislative members of the
board or their designated alternates, when engaged in their
duties as members of the board, shall be paid at the per diem
rate of step 1, pay range 32, under schedule B of section 124.15
of the Revised Code and shall be reimbursed for the actual and
necessary expenses they incur in the discharge of their official
duties.
(2) In all cases involving an application for a
certificate or a material amendment to an existing certificate
for a utility facility, as defined in section 303.57 of the
Revised Code, the board shall include two voting ad hoc members,
as described in section 4906.021 of the Revised Code.
(B) The chairperson shall keep a complete record of all
proceedings of the board, issue all necessary process, writs,
warrants, and notices, keep all books, maps, documents, and
papers ordered filed by the board, conduct investigations
pursuant to section 4906.07 of the Revised Code, and perform
such other duties as the board may prescribe.
(C) The chairperson of the public utilities commission may
assign or transfer duties among the commission's staff and may
also hire technical or legal staff as full-time employees of the
board. Such technical or legal staff shall be funded through
application fees or, if necessary, an additional fee assessment
on applicants for a certificate . However, the board's authority
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538 Sub. H. B. No. 15 Page 20
As Passed by the House
to grant certificates under section 4906.10 of the Revised Code
shall not be exercised by any officer, employee, or body other
than the board itself.
(D)(1) The chairperson may call to the chairperson's
assistance, temporarily, any employee of the environmental
protection agency, the department of natural resources, the
department of agriculture, the department of health, or the
department of development, for the purpose of making studies,
conducting hearings, investigating applications, or preparing
any report required or authorized under this chapter. Such
employees shall not receive any additional compensation over
that which they receive from the agency by which they are
employed, but they shall be reimbursed for their actual and
necessary expenses incurred while working under the direction of
the chairperson. All contracts for special services are subject
to the approval of the chairperson.
(2) Subject to controlling board approval, the board may
contract for the services of any expert or analyst, other than
an employee described in division (D)(1) of this section, for
the purposes of carrying out the board's powers and duties as
described in Chapter 4906. of the Revised Code. Any such expert
or analyst shall be compensated from the application fee, or if
necessary, supplemental application fees assessed in accordance
with division (F) of section 4906.06 of the Revised Code.
(E) The board's offices shall be located in those of the
public utilities commission.
Sec. 4906.03. The power siting board shall:
(A) Require such information from persons subject to its
jurisdiction as it considers necessary to assist in the conduct
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of hearings and any investigations or studies it may undertake;
(B) Conduct any studies or investigations that it
considers necessary or appropriate to carry out its
responsibilities under this chapter;
(C) Adopt rules establishing criteria for evaluating the
effects on environmental values of proposed and alternative
sites, and projected needs for electric power, and such other
rules as are necessary and convenient to implement this chapter,
including rules governing application fees, supplemental
application fees, and other reasonable fees to be paid by
persons subject to the board's jurisdiction. The board shall
make an annual accounting of its collection and use of these
fees and shall issue an annual report of its accounting, in the
form and manner prescribed by its rules, not later than the last
day of June of the year following the calendar year to which the
report applies.
(D) Approve, disapprove, or modify and approve
applications for certificates;
(E) Notwithstanding sections 4906.06 to 4906.14 of the
Revised Code, the board may adopt rules to provide for an
accelerated review of an application for a construction
certificate for construction of a major utility facility related
to a coal research and development project as defined in section
1555.01 of the Revised Code, or to a coal development project as
defined in section 1551.30 of the Revised Code, submitted to the
Ohio coal development office for review under division (B)(7) of
section 1551.33 of the Revised Code. Applications for
construction certificates for construction of major utility
facilities for Ohio coal research and development shall be filed
with the board on the same day as the proposed facility or
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As Passed by the House
project is submitted to the Ohio coal development office for
review.
The board shall render a decision on an application for a
construction certificate within ninety days after receipt of the
application and all of the data and information it may require
from the applicant. In rendering a decision on an application
for a construction certificate, the board shall only consider
the criteria and make the findings and determinations set forth
in divisions (A)(2), (3), (5), and (7) and division (B) of
section 4906.10 of the Revised Code.
(F) Notwithstanding sections 4906.06 to 4906.14 of the
Revised Code, the board shall adopt rules to provide for an
accelerated review of an application for a construction
certificate for any of the following:
(1) An electric transmission line that is:
(a) Not more than two miles in length;
(b) Primarily needed to attract or meet the requirements
of a specific customer or specific customers;
(c) Necessary to maintain reliable electric service as a
result of the retirement or shutdown of an electric generating
facility located within the state; or
(d) A rebuilding of an existing transmission line.
(2) An electric generating facility that uses waste heat
or natural gas and is primarily within the current boundary of
an existing industrial or electric generating facility;
(3) A gas pipeline that is not more than five miles in
length or is primarily needed to meet the requirements of a
specific customer or specific customers.
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625 Sub. H. B. No. 15 Page 23
As Passed by the House
The board shall adopt rules that provide for the automatic
certification to any entity described in this division when an
application by any such entity is not suspended by the board, an
administrative law judge, or the chairperson or executive
director of the board for good cause shown, within ninety days
of submission of the application. If an application is
suspended, the board shall approve, disapprove, or modify and
approve the application not later than ninety days after the
date of the suspension.
(G) Notwithstanding sections 4906.06 to 4906.14 of the
Revised Code, the board shall adopt rules to provide for the
accelerated review of an application for a construction
certificate for any of the following that are located in a
priority investment area designated and approved under section
122.161 of the Revised Code:
(1) An electric generating plant and associated
facilities;
(2) An electric transmission line and associated
facilities;
(3) Gas Pipeline infrastructure.
The board shall render a decision on an application
submitted under this division not later than forty-five days
after receipt of the application. If the board does not render a
decision within forty-five days, the application shall be
considered approved by operation of law, and the board shall
issue a certificate to the applicant.
The board shall adopt rules to implement this division,
including rules that prioritize applications for construction on
areas negatively impacted by the decline of the coal industry.
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As Passed by the House
(H) Notwithstanding sections 4906.06 to 4906.14 of the
Revised Code, the board shall adopt rules to provide for the
accelerated review of an application for a construction
certificate for a major utility facility if at the time the
application is filed the construction will be located, in whole,
on property owned by the applicant; in whole or in part, on an
easement or right-of-way; or on any combination of such
property, easement, or right-of-way.
No accelerated application shall be granted under the
rules adopted under division (H) of this section for
construction of a major utility facility, in whole or in part,
on an easement or right-of-way, if additional consent for
construction on the easement or right-of-way is required by any
person or entity other than the power siting board.
The board shall render a decision on an application
submitted under this division not later than ninety days after
receipt of the application. If the board does not render a
decision within ninety days, the application shall be considered
approved by operation of law, and the board shall issue a
certificate to the applicant.
Sec. 4906.04. (A) No person shall commence to construct a
major utility facility in this state without first having
obtained a certificate for the facility. The replacement of an
existing facility with a like facility, as determined by the
power siting board, shall not constitute construction of a major
utility facility. Such replacement of a like facility is not
exempt from any other requirements of state or local laws or
regulations. Any facility, with respect to which such a
certificate is required, shall thereafter be constructed,
operated, and maintained in conformity with such certificate and
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684 Sub. H. B. No. 15 Page 25
As Passed by the House
any terms, conditions, and modifications contained therein. A
certificate may only be issued pursuant to Chapter 4906. of the
Revised Code.
(B) A certificate may be transferred, subject to the
approval of the board, to a person who agrees to comply with the
terms, conditions, and modifications contained therein.
(C) Notwithstanding division (A) of this section, the
rebuilding or replacement of an existing transmission line that
is one mile or more in length constitutes construction of a
major utility facility.
Sec. 4906.06. (A) An applicant for a certificate has the
burden of proof and shall file with the office of the
chairperson of the power siting board an application, in such
form as the board prescribes, containing the following
information:
(1) A description of the location and of the major utility
facility;
(2) A summary of any studies that have been made by or for
the applicant of the environmental impact of the facility;
(3) A statement explaining the need for the facility;
(4) A statement of the reasons why the proposed location
is best suited for the facility;
(5) A statement of how the facility fits into the
applicant's forecast contained in the report submitted under
section 4935.04 of the Revised Code;
(6) Such other information as the applicant may consider
relevant or as the board by rule or order may require. Copies of
the studies referred to in division (A)(2) of this section shall
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712 Sub. H. B. No. 15 Page 26
As Passed by the House
be filed with the office of the chairperson, if ordered, and
shall be available for public inspection.
(7) For an electric transmission line, a summary of any
studies that have been made by or for the applicant of cost-
effective advanced transmission technologies that maximize the
value, expand the capacity, or improve the reliability of the
facility.
The application shall be filed not more than five years
prior to the planned date of commencement of construction. The
five-year period may be waived by the board for good cause
shown.
(B) Each application shall be accompanied by proof of
service of a copy of such application on the chief executive
officer of each municipal corporation and county, and the head
of each public agency charged with the duty of protecting the
environment or of planning land use, in the area in which any
portion of such facility is to be located.
(C) Each applicant within fifteen days after the date of
the filing of the application shall give public notice to
persons residing in the municipal corporations and counties
entitled to receive notice under division (B) of this section,
by the publication of a summary of the application in newspapers
of general circulation in such area. Proof of such publication
shall be filed with the office of the chairperson.
(D) Inadvertent failure of service on, or notice to, any
of the persons identified in divisions (B) and (C) of this
section may be cured pursuant to orders of the board designed to
afford them adequate notice to enable them to participate
effectively in the proceeding. In addition, the board, after
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741 Sub. H. B. No. 15 Page 27
As Passed by the House
filing, may require the applicant to serve notice of the
application or copies thereof or both upon such other persons,
and file proof thereof, as the board considers appropriate.
(E) An application for an amendment of a certificate shall
be in such form and contain such information as the board
prescribes. Notice of such an application shall be given as
required in divisions (B) and (C) of this section.
(F) Each application for certificate or an amendment shall
be accompanied by the application fee prescribed by board rule.
All application fees, supplemental application fees, and other
fees collected by the board shall be deposited in the state
treasury to the credit of the power siting board fund, which is
hereby created. The chairperson shall administer and authorize
expenditures from the fund for any of the purposes of this
chapter. If the chairperson determines that moneys credited to
the fund from an applicant's fee are not sufficient to pay the
board's expenses associated with its review of the application,
the chairperson shall request the approval of the controlling
board to assess a supplemental application fee upon an applicant
to pay anticipated additional expenses associated with the
board's review of the application or an amendment to an
application. If the chairperson finds that an application fee
exceeds the amount needed to pay the board's expenses for review
of the application, the chairperson shall cause a refund of the
excess amount to be issued to the applicant from the fund.
(G) The chairperson shall determine whether an application
is in compliance with this section not more than forty-five days
after the application is filed. If the chairperson does not
issue a determination within the time period required by this
division, the application is deemed in compliance by operation
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771 Sub. H. B. No. 15 Page 28
As Passed by the House
of law.
Sec. 4906.07. (A) Upon the receipt of an application
complying with section 4906.06 of the Revised Code, the power
siting board shall promptly fix a date for a public hearing
thereon, not less than sixty forty-five nor more than ninety
sixty days after such receipt, and shall conclude the proceeding
as expeditiously as practicable.
(B) On an application for an amendment of a certificate,
the board shall hold a hearing in the same manner as a hearing
is held on an application for a certificate if the proposed
change in the facility would result in any material increase in
any environmental impact of the facility or a substantial change
in the location of all or a portion of such facility other than
as provided in the alternates set forth in the application.
(C) The chairperson of the power siting board shall cause
each application filed with the board to be investigated and
shall, not less than fifteen days prior to the date any
application is set for hearing submit a written report to the
board and to the applicant. A copy of such report shall be made
available to any person upon request. Such report shall set
forth the nature of the investigation, and shall contain
recommended findings with regard to division (A) of section
4906.10 of the Revised Code and shall become part of the record
and served upon all parties to the proceeding.
Sec. 4906.10. (A) The power siting board shall render a
decision upon the record either granting or denying the
application as filed, or granting it upon such terms,
conditions, or modifications of the construction, operation, or
maintenance of the major utility facility as the board considers
appropriate. The certificate shall be subject to sections
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801 Sub. H. B. No. 15 Page 29
As Passed by the House
4906.101, 4906.102, and 4906.103 of the Revised Code and
conditioned upon the facility being in compliance with standards
and rules adopted under section 4561.32 and Chapters 3704.,
3734., and 6111. of the Revised Code. An applicant may withdraw
an application if the board grants a certificate on terms,
conditions, or modifications other than those proposed by the
applicant in the application.
The board shall not grant a certificate for the
construction, operation, and maintenance of a major utility
facility, either as proposed or as modified by the board, unless
it finds and determines all of the following:
(1) The basis of the need for the facility if the facility
is an electric transmission line or gas pipeline;
(2) The nature of the probable environmental impact;
(3) That the facility represents the minimum adverse
environmental impact, considering the state of available
technology and the nature and economics of the various
alternatives, and other pertinent considerations;
(4) In the case of an electric transmission line or
generating facility, that the facility is consistent with
regional plans for expansion of the electric power grid of the
electric systems serving this state and interconnected utility
systems and , that the facility will serve the interests of
electric system economy and reliability , and, in the case of an
electric transmission line, that the facility must consider
implementing cost-effective advanced transmission technologies
to maximize the value, expand capacity, or improve the
reliability of the facility ;
(5) That the facility will comply with Chapters 3704.,
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830 Sub. H. B. No. 15 Page 30
As Passed by the House
3734., and 6111. of the Revised Code and all rules and standards
adopted under those chapters and under section 4561.32 of the
Revised Code. In determining whether the facility will comply
with all rules and standards adopted under section 4561.32 of
the Revised Code, the board shall consult with the office of
aviation of the division of multi-modal planning and programs of
the department of transportation under section 4561.341 of the
Revised Code.
(6) That the facility will serve the public interest,
convenience, and necessity;
(7) In addition to the provisions contained in divisions
(A)(1) to (6) of this section and rules adopted under those
divisions, what its impact will be on the viability as
agricultural land of any land in an existing agricultural
district established under Chapter 929. of the Revised Code that
is located within the site and alternative site of the proposed
major utility facility. Rules adopted to evaluate impact under
division (A)(7) of this section shall not require the
compilation, creation, submission, or production of any
information, document, or other data pertaining to land not
located within the site and alternative site.
(8) That the facility incorporates maximum feasible water
conservation practices as determined by the board, considering
available technology and the nature and economics of the various
alternatives. ;
(9) For certificate proceedings involving an electric
transmission line and associated facilities, including those
proceedings that qualify for accelerated review under section
4906.03 of the Revised Code, in addition to the provisions
contained in divisions (A)(1) to (8) of this section and rules
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860 Sub. H. B. No. 15 Page 31
As Passed by the House
adopted under those divisions:
(a) That other alternatives to the transmission project
were considered and that the project is the most cost effective
and best suited alternative;
(b) That the project will be competitively bid or, if not,
will be comparable in cost had the project been competitively
bid;
(c) That the project has been considered in the context of
the utility's larger transmission plan;
(d) That the project could not be addressed through the
construction or replacement of a distribution line or facility;
(e) That the project has been considered in the context of
the regional transmission planning process of PJM
interconnection regional transmission organization, L.L.C.;
(f) That the project could not have been deferred or
redesigned to achieve the same operational result at a lower
overall cost.
(B) If the board determines that the location of all or a
part of the proposed facility should be modified, it may
condition its certificate upon that modification, provided that
the municipal corporations and counties, and persons residing
therein, affected by the modification shall have been given
reasonable notice thereof.
(C) A copy of the decision and any opinion issued
therewith shall be served upon each party.
(D) The board shall render a decision under this section
not later than one hundred eighty days after the date the
application is determined to be complete. If the board does not
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888 Sub. H. B. No. 15 Page 32
As Passed by the House
render a decision within the time period required by this
division, the application shall be deemed approved by operation
of law, and the board shall issue a certificate to the
applicant.
Sec. 4906.105. Within sixty days after the completion of a
certificated facility, the applicant shall file the following
information in the certificate proceeding:
(A) A copy of the as-built drawings for the entire
facility;
(B) The final facility rating or nameplate capability for
the facility;
(C) The final cost for the entire facility and an
explanation for deviations from any cost estimate included with
the certificate application.
Sec. 4906.201. (A) An electric generating plant that
consists of wind turbines and associated facilities with a
single interconnection to the electrical grid that is designed
for, or capable of, operation at an aggregate capacity of fifty
megawatts or more is subject to the minimum setback requirements
established in rules adopted by the power siting board under
division (B)(2) of section 4906.20 of the Revised Code.
(B)(1) For any existing certificates and amendments
thereto, including to repower operational projects, and existing
certification applications that have been found by the
chairperson to be in compliance with division (A) of section
4906.06 of the Revised Code before the effective date of the
amendment of this section by H.B. 59 of the 130th general
assembly, September 29, 2013, the distance shall be seven
hundred fifty feet instead of one thousand one hundred twenty-
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917 Sub. H. B. No. 15 Page 33
As Passed by the House
five feet.
(2) Any amendment made to an existing certificate issued
after the effective date of the amendment of this section by
H.B. 483 of the 130th general assembly, September 15, 2014,
establishing the setback distance of one thousand one hundred
twenty-five feet, shall be subject to the setback provision of
this section as amended by that act. The amendments to this
section by that act shall not be construed to limit or abridge
any rights or remedies in equity or under the common law.
(3) Nothing in this section limits the applicability of
the county commission review process under section 303.58 of the
Revised Code.
Sec. 4909.04. (A) The public utilities commission, for the
purpose of ascertaining the reasonableness and justice of rates
and charges for the service rendered by public utilities or
railroads, or for any other purpose authorized by law, may
investigate and ascertain the value of the property of any
public utility or railroad in this state used or useful for the
service and convenience of the public, using the same criteria
that are set forth in section sections 4909.042 and 4909.05 of
the Revised Code. At the request of the legislative authority of
any municipal corporation, the commission, after hearing and
determining that such a valuation is necessary, may also
investigate and ascertain the value of the property of any
public utility used and useful for the service and convenience
of the public where the whole or major portion of such public
utility is situated in such municipal corporation.
(B) To assist the commission in preparing such a
valuation, every public utility or railroad shall:
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As Passed by the House
(1) Furnish to the commission, or to its agents, as the
commission requires, maps, profiles, schedules of rates and
tariffs, contracts, reports of engineers, and other documents,
records, and papers, or copies of any of them, in aid of any
investigation and ascertainment of the value of its property;
(2) Grant to the commission or its agents free access to
all of its premises and property and its accounts, records, and
memoranda whenever and wherever requested by any such authorized
agent;
(3) Cooperate with and aid the commission and its agents
in the work of the valuation of its property in such further
particulars and to such extent as the commission requires and
directs.
(C) The commission may make all rules which seem necessary
to ascertain the value of the property and plant of each public
utility or railroad.
Sec. 4909.041. As used in sections 4909.041, 4909.042, and
4909.05 of the Revised Code:
(A) A "lease purchase agreement" is an agreement pursuant
to which a public utility leasing property is required to make
rental payments for the term of the agreement and either the
utility is granted the right to purchase the property upon the
completion of the term of the agreement and upon the payment of
an additional fixed sum of money or title to the property vests
in the utility upon the making of the final rental payment.
(B) A "leaseback" is the sale or transfer of property by a
public utility to another person contemporaneously followed by
the leasing of the property to the public utility on a long-term
basis.
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975 Sub. H. B. No. 15 Page 35
As Passed by the House
Sec. 4909.042. (A) With respect to an electric light
company that chooses to file a forecasted test period under
section 4909.18 of the Revised Code, the public utilities
commission shall prescribe the form and details of the valuation
report of the property of the utility. Such report shall include
all the kinds and classes of property, with the value of each,
owned, held, or projected to be owned or held during the test
period, by the utility for the service and convenience of the
public.
(B) Such report shall contain the following facts in
detail:
(1) The original cost of each parcel of land owned in fee
and projected to be owned in fee and in use during the test
period, determined by the commission; and also a statement of
the conditions of acquisition, whether by direct purchase, by
donation, by exercise of the power of eminent domain, or
otherwise;
(2) The actual acquisition cost, not including periodic
rental fees, of rights-of-way, trailways, or other land rights
projected to be held during the test period, by virtue of
easements, leases, or other forms of grants of rights as to
usage;
(3) The original cost of all other kinds and classes of
property projected to be used and useful during the test period,
in the rendition of service to the public. Such original costs
of property, other than land owned in fee, shall be the cost, as
determined to be reasonable by the commission, to the person
that first dedicated or dedicates the property to the public use
and shall be set forth in property accounts and subaccounts as
prescribed by the commission;
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1005 Sub. H. B. No. 15 Page 36
As Passed by the House
(4) The cost of property constituting all or part of a
project projected to be leased to or used by the utility during
the test period, under Chapter 165., 3706., 6121., or 6123. of
the Revised Code and not included under division (B)(3) of this
section exclusive of any interest directly or indirectly paid by
the utility with respect thereto whether or not capitalized;
(5) In the discretion of the commission, the cost to a
utility, in an amount determined to be reasonable by the
commission, of property constituting all or part of a project
projected to be leased to the utility during the test period,
under a lease purchase agreement or a leaseback and not included
under division (B)(3) of this section exclusive of any interest
directly or indirectly paid by the utility with respect thereto
whether or not capitalized;
(6) The proper and adequate reserve for depreciation, as
determined to be reasonable by the commission;
(7) Any sums of money or property that the utility is
projected to receive during the test period, as total or partial
defrayal of the cost of its property;
(8) The valuation of the property of the utility, which
shall be the sum of the amounts contained in the report pursuant
to divisions (B)(1) to (5) of this section, less the sum of the
amounts contained in the report pursuant to divisions (B)(6) and
(7) of this section.
(C) The report shall show separately the property
projected to be used and useful to or held by the utility during
the test period, and such other items as the commission
considers proper. The commission may require an additional
report showing the extent to which the property is projected to
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1034 Sub. H. B. No. 15 Page 37
As Passed by the House
be used and useful during the test period. Such reports shall be
filed in the office of the commission for the information of the
governor and the general assembly.
(D) Any financial information required to be submitted by
an electric light company under this section shall be provided
from the company's full books. The commission shall ensure
appropriate protections against the disclosure of the company's
trade secrets or proprietary information.
Sec. 4909.05. As used in this section:
(A) A "lease purchase agreement" is an agreement pursuant
to which a public utility leasing property is required to make
rental payments for the term of the agreement and either the
utility is granted the right to purchase the property upon the
completion of the term of the agreement and upon the payment of
an additional fixed sum of money or title to the property vests
in the utility upon the making of the final rental payment.
(B) A "leaseback" is the sale or transfer of property by a
public utility to another person contemporaneously followed by
the leasing of the property to the public utility on a long-term
basis.
(C) The With respect to every public utility, other than
an electric light company that chooses to file a forecasted test
period under section 4909.18 of the Revised Code, the public
utilities commission shall prescribe the form and details of the
valuation report of the property of each public utility or
railroad in the state. Such report shall include all the kinds
and classes of property, with the value of each, owned, held,
or, with respect to a natural gas, water-works, or sewage
disposal system company, projected to be owned or held as of the
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1063 Sub. H. B. No. 15 Page 38
As Passed by the House
date certain, by each public utility or railroad used and
useful, or, with respect to a natural gas, water-works, or
sewage disposal system company, projected to be used and useful
as of the date certain, for the service and convenience of the
public. Such
(B) Such report shall contain the following facts in
detail:
(1) The original cost of each parcel of land owned in fee
and in use, or, with respect to a natural gas, water-works, or
sewage disposal system company, projected to be owned in fee and
in use as of the date certain, determined by the commission; and
also a statement of the conditions of acquisition, whether by
direct purchase, by donation, by exercise of the power of
eminent domain, or otherwise;
(2) The actual acquisition cost, not including periodic
rental fees, of rights-of-way, trailways, or other land rights
held, or, with respect to a natural gas, water-works, or sewage
disposal system company, projected to be held as of the date
certain, by virtue of easements, leases, or other forms of
grants of rights as to usage;
(3) The original cost of all other kinds and classes of
property used and useful, or, with respect to a natural gas,
water-works, or sewage disposal system company, projected to be
used and useful as of the date certain, in the rendition of
service to the public. Subject to section 4909.052 of the
Revised Code, such original costs of property, other than land
owned in fee, shall be the cost, as determined to be reasonable
by the commission, to the person that first dedicated or
dedicates the property to the public use and shall be set forth
in property accounts and subaccounts as prescribed by the
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1093 Sub. H. B. No. 15 Page 39
As Passed by the House
commission. To the extent that the costs of property comprising
a coal research and development facility, as defined in section
1555.01 of the Revised Code, or a coal development project, as
defined in section 1551.30 of the Revised Code, have been
allowed for recovery as Ohio coal research and development costs
under section 4905.304 of the Revised Code, none of those costs
shall be included as a cost of property under this division.
(4) The cost of property constituting all or part of a
project leased to or used by the utility, or, with respect to a
natural gas, water-works, or sewage disposal system company,
projected to be leased to or used by the utility as of the date
certain, under Chapter 165., 3706., 6121., or 6123. of the
Revised Code and not included under division (C)(3)(B)(3) of
this section exclusive of any interest directly or indirectly
paid by the utility with respect thereto whether or not
capitalized;
(5) In the discretion of the commission, the cost to a
utility, in an amount determined to be reasonable by the
commission, of property constituting all or part of a project
leased to the utility, or, with respect to a natural gas, water-
works, or sewage disposal system company, projected to be leased
to the utility as of the date certain, under a lease purchase
agreement or a leaseback and not included under division (C)(3)
(B)(3) of this section exclusive of any interest directly or
indirectly paid by the utility with respect thereto whether or
not capitalized;
(6) The cost of the replacement of water service lines
incurred by a water-works company under section 4909.173 of the
Revised Code and the water service line replacement
reimbursement amounts provided to customers under section
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1123 Sub. H. B. No. 15 Page 40
As Passed by the House
4909.174 of the Revised Code;
(7) The proper and adequate reserve for depreciation, as
determined to be reasonable by the commission;
(8) Any sums of money or property that the company may
have received, or, with respect to a natural gas, water-works,
or sewage disposal system company, is projected to receive as of
the date certain, as total or partial defrayal of the cost of
its property;
(9) The valuation of the property of the company, which
shall be the sum of the amounts contained in the report pursuant
to divisions (C)(1)(B)(1) to (6) of this section, less the sum
of the amounts contained in the report pursuant to divisions (C)
(7)(B)(7) and (8) of this section.
(C) The report shall show separately the property used and
useful to such public utility or railroad in the furnishing of
the service to the public, the property held by such public
utility or railroad for other purposes, and the property
projected to be used and useful to or held by a natural gas,
water-works, or sewage disposal system company as of the date
certain, and such other items as the commission considers
proper. The commission may require an additional report showing
the extent to which the property is used and useful, or, with
respect to a natural gas, water-works, or sewage disposal system
company, projected to be used and useful as of the date certain.
Such reports shall be filed in the office of the commission for
the information of the governor and the general assembly.
Sec. 4909.052. Subject to a finding that such costs are
just and reasonable, the public utilities commission in
evaluating a petition submitted under section 4905.481 of the
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1152 Sub. H. B. No. 15 Page 41
As Passed by the House
Revised Code shall accept the original cost, reported under
division (C)(3) (B)(3) of section 4909.05 of the Revised Code,
of the acquisition of a municipal water-works or sewage disposal
system company that is acquired by a large water-works or sewage
disposal system company, provided that the original cost is
determined according to all of the following requirements:
(A) The acquiring company has three appraisals performed
on the property of the company being acquired.
(B) The three appraisals are performed by three
independent utility-valuation experts mutually selected by the
acquiring company and the company being acquired from the list
maintained under section 4909.054 of the Revised Code.
(C) The average of the three appraisals is used as the
fair market value of the company being acquired.
(D) Each utility-valuation expert does all of the
following:
(1) Determines the fair market value of the company to be
acquired by establishing the amount for which the company would
be sold in a voluntary transaction between a willing buyer and a
willing seller under no obligation to buy or sell;
(2) Determines the fair market value in compliance with
the uniform standards of professional appraisal practice;
(3) Employs the cost, market, and income approach to
independently quantify the future benefits of the company to be
acquired;
(4) Incorporates the assessment described in division (D)
(5) of this section into the appraisal under the cost, market,
and income approach;
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1180 Sub. H. B. No. 15 Page 42
As Passed by the House
(5) Engages one engineer who is licensed to prepare an
assessment of the tangible assets of the company to be acquired.
The original source of funding for any part of the tangible
assets shall not be relevant to the determination of the value
of those assets.
(E) The lesser of the purchase price or the fair market
value, described in division (C) of this section, is reported as
the original cost under division (C)(3) (B)(3) of section
4909.05 of the Revised Code of the company to be acquired.
Sec. 4909.06. The investigation and report required by
section section 4909.042 or 4909.05 of the Revised Code shall
show, when the public utilities commission deems it necessary,
the amounts, dates, and rates of interest of all bonds
outstanding against each public utility or railroad, the
property upon which such bonds are a lien, the amounts paid for
them, and, the original capital stock and the moneys received by
any such public utility or railroad by reason of any issue of
stock, bonds, or other securities. Such report shall also show
the net and gross receipts of such public utility or railroad
and the method by which moneys were expended or paid out and the
purpose of such payments. The commission may prescribe the
procedure to be followed in making the investigation and
valuation, the form in which the results of the ascertainment of
the value of each public utility or railroad shall be submitted,
and the classifications of the elements that constitute the
ascertained value. Such investigation shall also show the value
of the property of every public utility or railroad as a whole,
and if such property is in more than one county, the value of
its property in each of such counties.
"Valuation" and "value," as used in this section, may
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1210 Sub. H. B. No. 15 Page 43
As Passed by the House
include, with :
(A) With respect to a public utility that is a natural
gas, water-works, or sewage disposal system company, projected
valuation and value as of the date certain, if applicable
because of a future date certain under section 4909.15 of the
Revised Code;
(B) With respect to an electric light company that chooses
to file a forecasted test period under section 4909.18 of the
Revised Code, the valuation and value during the forecasted test
period.
Sec. 4909.07. The public utilities commission, during the
making of the valuation provided for in sections 4909.04 to
4909.13 of the Revised Code, and after its completion, shall in
like manner keep itself informed through its engineers, experts,
and other assistants of all extensions, improvements, or other
changes in the condition and value of the property of all public
utilities or railroads and shall ascertain the value of such
extensions, improvements, and changes. The commission shall, as
is required for the proper regulation of such public utilities
or railroads, revise and correct its valuations of property,
showing such revisions and corrections as a whole and as to each
county. Such revisions and corrections shall be filed in the
same manner as original reports.
"Valuation" and "value," as used in this section, may
include, with :
(A) With respect to a public utility that is a natural
gas, water-works, or sewage disposal system company, projected
valuation and value as of the date certain, if applicable
because of a future date certain under section 4909.15 of the
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1239 Sub. H. B. No. 15 Page 44
As Passed by the House
Revised Code;
(B) With respect to an electric light company that chooses
to file a forecasted test period under section 4909.18 of the
Revised Code, the valuation and value during the forecasted test
period.
Sec. 4909.08. When the public utilities commission has
completed the valuation of the property of any public utility or
railroad and before such valuation becomes final, it shall give
notice by registered letter to such public utility or railroad,
and if a substantial portion of said public utility or railroad
is situated in a municipal corporation, then to the mayor of
such municipal corporation, stating the valuations placed upon
the several kinds and classes of property of such public utility
or railroad and upon the property as a whole and give such
further notice by publication or otherwise as it shall deem
necessary to apprise the public of such valuation. If, within
thirty days after such notification, no protest has been filed
with the commission, such valuation becomes final. If notice of
protest has been filed by any public utility or railroad, the
commission shall fix a time for hearing such protest and shall
consider at such hearing any matter material thereto presented
by such public utility, railroad, or municipal corporation, in
support of its protest or by any representative of the public
against such protest. If, after the hearing of any protest of
any valuation so fixed, the commission is of the opinion that
its inventory is incomplete or inaccurate or that its valuation
is incorrect, it shall make such changes as are necessary and
shall issue an order making such corrected valuations final. A
final valuation by the commission and all classifications made
for the ascertainment of such valuations shall be public and are
prima-facie evidence relative to the value of the property.
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1270 Sub. H. B. No. 15 Page 45
As Passed by the House
"Valuation" and "value," as used in this section, may
include, with :
(A) With respect to a public utility that is a natural
gas, water-works, or sewage disposal system company, projected
valuation and value as of the date certain, if applicable
because of a future date certain under section 4909.15 of the
Revised Code;
(B) With respect to an electric light company that chooses
to file a forecasted test period under section 4909.18 of the
Revised Code, the valuation and value during the forecasted test
period.
Sec. 4909.15. (A) The public utilities commission, when
fixing and determining just and reasonable rates, fares, tolls,
rentals, and charges, shall determine:
(1) The (1)(a) With respect to a public utility that is a
natural gas, water-works, or sewage disposal system company, or
that is an electric light company that chooses not to file a
forecasted test period under section 4909.18 of the Revised
Code, the valuation as of the date certain of the property of
the public utility that is used and useful or, with respect to a
natural gas, water-works, or sewage disposal system company, is
projected to be used and useful as of the date certain, in
rendering the public utility service for which rates are to be
fixed and determined. The
(b) With respect to an electric light company that chooses
to file a forecasted test period under section 4909.18 of the
Revised Code, the valuation of the property of the utility that
is projected to be used and useful during the forecasted test
period in rendering the public utility service for which rates
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1299 Sub. H. B. No. 15 Page 46
As Passed by the House
are to be fixed and determined.
(c) The valuation so determined under division (A)(1) of
this section for any public utility shall be the total value as
set forth in division (C)(9)(B)(8) of section 4909.042 of the
Revised Code and division (B)(9) of section 4909.05 of the
Revised Code, and a reasonable allowance for materials and
supplies and a reasonable allowance for cash working capital as
determined by the commission.
The commission, in its discretion, may include in the
valuation a reasonable allowance for construction work in
progress but, in no event, may such an allowance be made by the
commission until it has determined that the particular
construction project is at least seventy-five per cent complete.
In determining the percentage completion of a particular
construction project, the commission shall consider, among other
relevant criteria, the per cent of time elapsed in construction;
the per cent of construction funds, excluding allowance for
funds used during construction, expended, or obligated to such
construction funds budgeted where all such funds are adjusted to
reflect current purchasing power; and any physical inspection
performed by or on behalf of any party, including the
commission's staff.
A reasonable allowance for construction work in progress
shall not exceed ten per cent of the total valuation as stated
in this division, not including such allowance for construction
work in progress.
Where the commission permits an allowance for construction
work in progress, the dollar value of the project or portion
thereof included in the valuation as construction work in
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1328 Sub. H. B. No. 15 Page 47
As Passed by the House
progress shall not be included in the valuation as plant in
service until such time as the total revenue effect of the
construction work in progress allowance is offset by the total
revenue effect of the plant in service exclusion. Carrying
charges calculated in a manner similar to allowance for funds
used during construction shall accrue on that portion of the
project in service but not reflected in rates as plant in
service, and such accrued carrying charges shall be included in
the valuation of the property at the conclusion of the offset
period for purposes of division (C)(9) of section 4909.05 of the
Revised Code.
From and after April 10, 1985, no allowance for
construction work in progress as it relates to a particular
construction project shall be reflected in rates for a period
exceeding forty-eight consecutive months commencing on the date
the initial rates reflecting such allowance become effective,
except as otherwise provided in this division.
The applicable maximum period in rates for an allowance
for construction work in progress as it relates to a particular
construction project shall be tolled if, and to the extent, a
delay in the in-service date of the project is caused by the
action or inaction of any federal, state, county, or municipal
agency having jurisdiction, where such action or inaction
relates to a change in a rule, standard, or approval of such
agency, and where such action or inaction is not the result of
the failure of the utility to reasonably endeavor to comply with
any rule, standard, or approval prior to such change.
In the event that such period expires before the project
goes into service, the commission shall exclude, from the date
of expiration, the allowance for the project as construction
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1358 Sub. H. B. No. 15 Page 48
As Passed by the House
work in progress from rates, except that the commission may
extend the expiration date up to twelve months for good cause
shown.
In the event that a utility has permanently canceled,
abandoned, or terminated construction of a project for which it
was previously permitted a construction work in progress
allowance, the commission immediately shall exclude the
allowance for the project from the valuation.
In the event that a construction work in progress project
previously included in the valuation is removed from the
valuation pursuant to this division, any revenues collected by
the utility from its customers after April 10, 1985, that
resulted from such prior inclusion shall be offset against
future revenues over the same period of time as the project was
included in the valuation as construction work in progress. The
total revenue effect of such offset shall not exceed the total
revenues previously collected.
In no event shall the total revenue effect of any offset
or offsets provided under division (A)(1) of this section exceed
the total revenue effect of any construction work in progress
allowance.
(2) A fair and reasonable rate of return to the utility on
the valuation as determined in division (A)(1) of this section;
(3) The dollar annual return to which the utility is
entitled by applying the fair and reasonable rate of return as
determined under division (A)(2) of this section to the
valuation of the utility determined under division (A)(1) of
this section;
(4) The cost to the utility of rendering the public
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1387 Sub. H. B. No. 15 Page 49
As Passed by the House
utility service for the test period used for the determination
under division (C)(1) of this section , less the total of any
interest on cash or credit refunds paid, pursuant to section
4909.42 of the Revised Code, by the utility during the test
period.
(a) Federal, state, and local taxes imposed on or measured
by net income may, in the discretion of the commission, be
computed by the normalization method of accounting, provided the
utility maintains accounting reserves that reflect differences
between taxes actually payable and taxes on a normalized basis,
provided that no determination as to the treatment in the rate-
making process of such taxes shall be made that will result in
loss of any tax depreciation or other tax benefit to which the
utility would otherwise be entitled, and further provided that
such tax benefit as redounds to the utility as a result of such
a computation may not be retained by the company, used to fund
any dividend or distribution, or utilized for any purpose other
than the defrayal of the operating expenses of the utility and
the defrayal of the expenses of the utility in connection with
construction work.
(b) The amount of any tax credits granted to an electric
light company under section 5727.391 of the Revised Code for
Ohio coal burned prior to January 1, 2000, shall not be retained
by the company, used to fund any dividend or distribution, or
utilized for any purposes other than the defrayal of the
allowable operating expenses of the company and the defrayal of
the allowable expenses of the company in connection with the
installation, acquisition, construction, or use of a compliance
facility. The amount of the tax credits granted to an electric
light company under that section for Ohio coal burned prior to
January 1, 2000, shall be returned to its customers within three
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1418 Sub. H. B. No. 15 Page 50
As Passed by the House
years after initially claiming the credit through an offset to
the company's rates or fuel component, as determined by the
commission, as set forth in schedules filed by the company under
section 4905.30 of the Revised Code. As used in division (A)(4)
(b) of this section, "compliance facility" has the same meaning
as in section 5727.391 of the Revised Code.
(B) The commission shall compute the gross annual revenues
to which the utility is entitled by adding the dollar amount of
return under division (A)(3) of this section to the cost, for
the test period used for the determination under division (C)(1)
of this section, of rendering the public utility service under
division (A)(4) of this section.
(C)(1) Except as provided in division (D) of this section,
the revenues and expenses of the utility shall be determined
during a test period . The utility may as follows:
(a) Electric light companies may propose a forecasted test
period. If the company proposes a forecasted test period, the
company shall propose annual base rates for three consecutive
twelve-month periods in a single forecasted test period
application.
During the first twelve-month period, the company shall
propose a reasonably forecasted rate base during a thirteen-
month average, revenues, and expenses for the first twelve
months that new base rates will be in effect.
During the second twelve-month period, the base rate
revenue requirement shall be adjusted for the return of, and
return on, incremental rate base additions approved by the
commission in the initial application. During the third twelve-
month period, the base rate revenue requirement shall be
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1447 Sub. H. B. No. 15 Page 51
As Passed by the House
adjusted for the return of and return on incremental rate base
additions approved by the commission in the initial application.
For each twelve-month period, forecasted plant investment,
forecasted revenues, and forecasted expenses versus actual
investment, actual revenues, and actual expenses shall be trued
up via a cost recovery mechanism approved by the commission.
Each true-up process shall include an adjustment to actual
for the rate of return that the company is authorized to earn on
the actual investments made. The company shall provide the
commission with actual financial information during the true-up
process to ensure accuracy. As part of the true-up process, the
commission shall include only rate base components that have
been found by the commission to be used and useful in rendering
public utility service.
At the end of the last test period, the company shall file
for a rate case under section 4909.18 of the Revised Code.
(b) All utilities, except for electric light companies
that choose to file under division (C)(1)(a) of this section,
shall propose a test period for this determination that is any
twelve-month period beginning not more than six months prior to
the date the application is filed and ending not more than nine
months subsequent to that date. The test period for determining
revenues and expenses of the utility shall be the test period
proposed by the utility, unless otherwise ordered by the
commission.
(2) The For utilities filing under division (C)(1)(b) of
this section, the date certain shall be not later than the date
of filing, except that it shall be, for a natural gas, water-
works, or sewage disposal system company, not later than the end
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1476 Sub. H. B. No. 15 Page 52
As Passed by the House
of the test period.
(D) A natural gas, water-works, or sewage disposal system
company Utilities filing under division (C)(1)(b) of this
section may propose adjustments to the revenues and expenses to
be determined under division (C)(1) of this section for any
changes that are, during the test period or the twelve-month
period immediately following the test period, reasonably
expected to occur. The natural gas, water-works, or sewage
disposal system company utility shall identify and quantify,
individually, any proposed adjustments. The commission shall
incorporate the proposed adjustments into the determination if
the adjustments are just and reasonable.
(E) When the commission is of the opinion, after hearing
and after making the determinations under divisions (A) and (B)
of this section, that any rate, fare, charge, toll, rental,
schedule, classification, or service, or any joint rate, fare,
charge, toll, rental, schedule, classification, or service
rendered, charged, demanded, exacted, or proposed to be
rendered, charged, demanded, or exacted, is, or will be, unjust,
unreasonable, unjustly discriminatory, unjustly preferential, or
in violation of law, that the service is, or will be,
inadequate, or that the maximum rates, charges, tolls, or
rentals chargeable by any such public utility are insufficient
to yield reasonable compensation for the service rendered, and
are unjust and unreasonable, the commission shall:
(1) With due regard among other things to the value of all
property of the public utility actually used and useful for the
convenience of the public as determined under division (A)(1) of
this section, excluding from such value the value of any
franchise or right to own, operate, or enjoy the same in excess
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1506 Sub. H. B. No. 15 Page 53
As Passed by the House
of the amount, exclusive of any tax or annual charge, actually
paid to any political subdivision of the state or county, as the
consideration for the grant of such franchise or right, and
excluding any value added to such property by reason of a
monopoly or merger, with due regard in determining the dollar
annual return under division (A)(3) of this section to the
necessity of making reservation out of the income for surplus,
depreciation, and contingencies, and;
(2) With due regard to all such other matters as are
proper, according to the facts in each case,
(a) Including a fair and reasonable rate of return
determined by the commission with reference to a cost of debt
equal to the actual embedded cost of debt of such public
utility,
(b) But not including the portion of any periodic rental
or use payments representing that cost of property that is
included in the valuation report under divisions (C)(4)(B)(4)
and (5) of section 4909.042 of the Revised Code and divisions
(B)(4) and (5) of section 4909.05 of the Revised Code, fix and
determine the just and reasonable rate, fare, charge, toll,
rental, or service to be rendered, charged, demanded, exacted,
or collected for the performance or rendition of the service
that will provide the public utility the allowable gross annual
revenues under division (B) of this section, and order such just
and reasonable rate, fare, charge, toll, rental, or service to
be substituted for the existing one. After such determination
and order no change in the rate, fare, toll, charge, rental,
schedule, classification, or service shall be made, rendered,
charged, demanded, exacted, or changed by such public utility
without the order of the commission, and any other rate, fare,
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1536 Sub. H. B. No. 15 Page 54
As Passed by the House
toll, charge, rental, classification, or service is prohibited.
(F) Upon application of any person or any public utility,
and after notice to the parties in interest and opportunity to
be heard as provided in Chapters 4901., 4903., 4905., 4907.,
4909., 4921., and 4923. of the Revised Code for other hearings,
has been given, the commission may rescind, alter, or amend an
order fixing any rate, fare, toll, charge, rental,
classification, or service, or any other order made by the
commission. Certified copies of such orders shall be served and
take effect as provided for original orders.
Sec. 4909.156. In fixing the just, reasonable, and
compensatory rates, joint rates, tolls, classifications,
charges, or rentals to be observed and charged for service by
any public utility, the public utilities commission shall, in
action upon an application filed pursuant to section 4909.18 of
the Revised Code, require a public utility to file a report
showing the proportionate amounts of the valuation of the
property of the utility, as determined under section 4909.042 or
4909.05 of the Revised Code, and the proportionate amounts of
the revenues and expenses of the utility that are proposed to be
considered as attributable to the service area involved in the
application.
"Valuation," as used in this section, may include , with :
(A) With respect to a public utility that is a natural
gas, water-works, or sewage disposal system company, projected
valuation as of the date certain, if applicable because of a
future date certain under section 4909.15 of the Revised Code ;
(B) With respect to an electric light company that chooses
to file a forecasted test period under section 4909.18 of the
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1565 Sub. H. B. No. 15 Page 55
As Passed by the House
Revised Code, the valuation and value during the forecasted test
period.
Sec. 4909.159. An electric light company proposing a
forecasted test period under division (C)(1)(a) of section
4909.15 of the Revised Code shall provide any financial
information required by that section from the company's full
books. The public utilities commission shall ensure appropriate
protections against the disclosure of the company's trade
secrets or proprietary information.
Sec. 4909.173. (A) As used in this section and section
4909.174 of the Revised Code:
(1) "Customer-owned water service line" means the water
service line connected to the water-works company's water
service line at the curb of a customer's property.
(2) "Water-works company" means an entity defined under
division (G) of section 4905.03 of the Revised Code that is a
public utility under section 4905.02 of the Revised Code.
(B) A water-works company may do any of the following:
(1) Replace lead customer-owned water service lines
concurrently with a scheduled utility main replacement project,
an emergency replacement, or company-initiated lead water
service line replacement program;
(2) Replace lead customer-owned water service lines when
mandated or ordered to replace such lines by law or a state or
federal regulatory agency;
(3) Replace customer-owned water service lines of other
composition when mandated or ordered to replace such lines by
law or a state or federal regulatory agency.
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1593 Sub. H. B. No. 15 Page 56
As Passed by the House
(C) If a water-works company replaces customer-owned water
service lines under this section, then the company shall include
the cost of the replacement of the water service lines,
including the cost of replacement of both company side and
customer-owned water service lines and the cost to evaluate
customer-owned water service lines of unknown composition, in
the valuation report of the property of the company as required
under division (C)(6)(B)(6) of section 4909.05 of the Revised
Code for inclusion in a rate case under this chapter.
(D) The water service customer who is responsible for the
customer-owned water service line that was replaced under this
section shall hold legal title to the replaced water service
line.
Sec. 4909.174. (A) A water-works company shall reimburse a
customer who replaces the customer's customer-owned water
service line, if both of the following occur:
(1) The company confirms that the customer-owned water
service line was composed of lead or other composition that was
mandated or ordered to be replaced by law or a state or federal
regulatory agency;
(2) The customer submits the reimbursement request to the
company not later than twelve months after the completion of the
water line replacement.
(B) A water-works company that provides a reimbursement to
a customer under this section shall include the reimbursement
amount in the valuation report of the property of the company as
required under division (C)(6)(B)(6) of section 4909.05 of the
Revised Code for inclusion in a rate case under this chapter.
Sec. 4909.18. Any public utility desiring to establish any
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1622 Sub. H. B. No. 15 Page 57
As Passed by the House
rate, joint rate, toll, classification, charge, or rental, or to
modify, amend, change, increase, or reduce any existing rate,
joint rate, toll, classification, charge, or rental, or any
regulation or practice affecting the same, shall file a written
application with the public utilities commission. Except for
actions under section 4909.16 of the Revised Code, no public
utility may issue the notice of intent to file an application
pursuant to division (B) of section 4909.43 of the Revised Code
to increase any existing rate, joint rate, toll, classification,
charge, or rental, until a final order under this section has
been issued by the commission on any pending prior application
to increase the same rate, joint rate, toll, classification,
charge, or rental or until two hundred seventy-five days after
filing such application, whichever is sooner. Such application
shall be verified by the president or a vice-president and the
secretary or treasurer of the applicant. Such application shall
contain a schedule of the existing rate, joint rate, toll,
classification, charge, or rental, or regulation or practice
affecting the same, a schedule of the modification amendment,
change, increase, or reduction sought to be established, and a
statement of the facts and grounds upon which such application
is based. If such application proposes a new service or the use
of new equipment, or proposes the establishment or amendment of
a regulation, the application shall fully describe the new
service or equipment, or the regulation proposed to be
established or amended, and shall explain how the proposed
service or equipment differs from services or equipment
presently offered or in use, or how the regulation proposed to
be established or amended differs from regulations presently in
effect. The application shall provide such additional
information as the commission may require in its discretion. If
the commission determines that such application is not for an
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1654 Sub. H. B. No. 15 Page 58
As Passed by the House
increase in any rate, joint rate, toll, classification, charge,
or rental, the commission may permit the filing of the schedule
proposed in the application and fix the time when such schedule
shall take effect. If it appears to the commission that the
proposals in the application may be unjust or unreasonable, the
commission shall set the matter for hearing and shall give
notice of such hearing by sending written notice of the date set
for the hearing to the public utility and publishing notice of
the hearing one time in a newspaper of general circulation in
each county in the service area affected by the application. At
such hearing, the burden of proof to show that the proposals in
the application are just and reasonable shall be upon the public
utility. After such hearing, the commission shall, where
practicable, issue an appropriate order within six months from
the date the application was filed.
If the commission determines that said application is for
an increase in any rate, joint rate, toll, classification,
charge, or rental there shall also, unless otherwise ordered by
the commission, be filed with the application in duplicate the
following exhibits:
(A) A report of its property used and useful, or, with
respect to a natural gas, water-works, or sewage disposal system
company, projected to be used and useful , as of the date
certain, or during the forecasted test period, if the
application is filed under division (C)(1)(a) of section 4909.15
of the Revised Code, in rendering the service referred to in
such application, as provided in section sections 4909.042 and
4909.05 of the Revised Code;
(B) A complete operating statement of its last fiscal
year, showing in detail all its receipts, revenues, and incomes
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1684 Sub. H. B. No. 15 Page 59
As Passed by the House
from all sources, all of its operating costs and other
expenditures, and any analysis such public utility deems
applicable to the matter referred to in said application;
(C) A statement of the income and expense anticipated
under the application filed;
(D) A statement of financial condition summarizing assets,
liabilities, and net worth;
(E) Such other information as the commission may require
in its discretion.
Sec. 4909.181. (A) As used in this section, "electric
distribution utility" has the same meaning as in section 4928.01
of the Revised Code.
(B) Not later than December 31, 2029, and at least every
three years thereafter, each electric distribution utility shall
file a rate case application regarding distribution service
under section 4909.18 of the Revised Code.
Sec. 4909.19. (A) Upon the filing of any application for
increase provided for by section 4909.18 of the Revised Code the
public utility shall forthwith publish notice of such
application, in a form approved by the public utilities
commission, once a week for two consecutive weeks in a newspaper
published and in general circulation throughout the territory in
which such public utility operates and directly affected by the
matters referred to in said application. The notice shall
include instructions for direct electronic access to the
application or other documents on file with the public utilities
commission. The first publication of the notice shall be made in
its entirety and may be made in a preprinted insert in the
newspaper. The second publication may be abbreviated if all of
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1713 Sub. H. B. No. 15 Page 60
As Passed by the House
the following apply:
(1) The abbreviated notice is at least one-fourth of the
size of the notice in the first publication.
(2) At the same time the abbreviated notice is published,
the notice in the first publication is posted in its entirety on
the newspaper's web site, if the newspaper has a web site, and
the commission's web site.
(3) The abbreviated notice contains a statement of the web
site posting or postings, as applicable, and instructions for
accessing the posting or postings.
(B) The commission shall determine a format for the
content of all notices required under this section, and shall
consider costs and technological efficiencies in making that
determination. Defects in the publication of said notice shall
not affect the legality or sufficiency of notices published
under this section provided that the commission has
substantially complied with this section, as described in
section 4905.09 of the Revised Code.
(C) The commission shall at once cause an investigation to
be made of the facts set forth in said application and the
exhibits attached thereto, and of the matters connected
therewith. Within a reasonable time as determined by the
commission one hundred eighty days after the filing of such
application is determined to be complete , a written report shall
be made and filed with the commission, a copy of which shall be
sent by certified mail to the applicant, the mayor of any
municipal corporation affected by the application, and to such
other persons as the commission deems interested. If no
objection to such report is made by any party interested within
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1742 Sub. H. B. No. 15 Page 61
As Passed by the House
thirty days after such filing and the mailing of copies thereof,
the commission shall fix a date within ten days for the final
hearing upon said application, giving notice thereof to all
parties interested. At such hearing the commission shall
consider the matters set forth in said application and make such
order respecting the prayer thereof as to it seems just and
reasonable.
If objections are filed with the commission, the
commission shall cause a pre-hearing conference to be held
between all parties, intervenors, and the commission staff in
all cases involving more than one hundred thousand customers.
If objections are filed with the commission within thirty
days after the filing of such report, the application shall be
promptly set down for hearing of testimony before the commission
or be forthwith referred to an attorney examiner designated by
the commission to take all the testimony with respect to the
application and objections which may be offered by any
interested party. The commission shall also fix the time and
place to take testimony giving ten days' written notice of such
time and place to all parties. The taking of testimony shall
commence on the date fixed in said notice and shall continue
from day to day until completed. The attorney examiner may, upon
good cause shown, grant continuances for not more than three
days, excluding Saturdays, Sundays, and holidays. The commission
may grant continuances for a longer period than three days upon
its order for good cause shown. At any hearing involving rates
or charges sought to be increased, the burden of proof to show
that the increased rates or charges are just and reasonable
shall be on the public utility.
When the taking of testimony is completed, a full and
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1772 Sub. H. B. No. 15 Page 62
As Passed by the House
complete record of such testimony noting all objections made and
exceptions taken by any party or counsel, shall be made, signed
by the attorney examiner, and filed with the commission. Prior
to the formal consideration of the application by the commission
and the rendition of any order respecting the prayer of the
application, a quorum of the commission shall consider the
recommended opinion and order of the attorney examiner, in an
open, formal, public proceeding in which an overview and
explanation is presented orally. Thereafter, the commission
shall make such order respecting the prayer of such application
as seems just and reasonable to it.
In all proceedings before the commission in which the
taking of testimony is required, except when heard by the
commission, attorney examiners shall be assigned by the
commission to take such testimony and fix the time and place
therefor, and such testimony shall be taken in the manner
prescribed in this section. All testimony shall be under oath or
affirmation and taken down and transcribed by a reporter and
made a part of the record in the case. The commission may hear
the testimony or any part thereof in any case without having the
same referred to an attorney examiner and may take additional
testimony. Testimony shall be taken and a record made in
accordance with such general rules as the commission prescribes
and subject to such special instructions in any proceedings as
it, by order, directs.
Sec. 4909.192. When considering an application to increase
rates under section 4909.18 of the Revised Code, the public
utilities commission may approve the following:
(A) Nondiscriminatory programs available for all energy-
intensive customers to implement economic development, job
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1802 Sub. H. B. No. 15 Page 63
As Passed by the House
growth, job retention, or interruptible rates that enhance
distribution and transmission grid reliability and promote
economic development.
(B) Nondiscriminatory programs available for all
mercantile customers, as defined in section 4928.01 of the
Revised Code, that align retail rate recovery with how
transmission costs are incurred by or charged to the electric
distribution utility, as defined in section 4928.01 of the
Revised Code, or programs that allow customers to be billed
directly for transmission service by a competitive retail
electric service provider.
Sec. 4909.193. The public utilities commission shall
determine whether an application filed under section 4909.18 of
the Revised Code is complete not more than forty-five days after
the application is filed. If the commission does not issue a
determination within the time period required by this section,
the application shall be deemed complete by operation of law.
Sec. 4909.42. If the proceeding on an application filed
with the public utilities commission under section 4909.18 of
the Revised Code by any public utility requesting an increase on
any rate, rate mechanism, joint rate, toll, classification,
charge, or rental or requesting a change in a regulation or
practice affecting the same has not been concluded and an
opinion and an order entered pursuant to section 4909.19 of the
Revised Code at the expiration of two hundred seventy-five days
from the date of filing the application is deemed complete, an
the public utility may request a temporary increase not to
exceed the proposed increase , and any party to the proceeding
may request a temporary decrease, which shall go into effect
upon the filing of a bond or a letter of credit by the public
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1832 Sub. H. B. No. 15 Page 64
As Passed by the House
utilityand remain in effect until modified in accordance with
the commission's order based upon the merits of the application .
The bond or letter of credit shall be filed with the commission
and shall be payable to the state for the use and benefit of the
customers affected by the proposed increase or change
Not later than three hundred sixty days from the date an
application is determined complete, the commission shall issue
an order to approve, deny, or modify an application filed under
section 4909.18 of the Revised Code. If the commission does not
issue an order within three hundred sixty days after the
application is determined complete, the application shall be
deemed approved by operation of law. A temporary increase or
decrease under this section shall not exceed the midpoint of the
rates recommended in the staff report filed pursuant to section
4909.19 of the Revised Code and shall be subject to
reconciliation and refund .
An affidavit attached to the bond or letter of credit must
be signed by two of the officers of the utility, under oath, and
must contain a promise on behalf of the utility to refund any
amounts collected by the utility over the rate, joint rate,
toll, classification, charge, or rental, as determined in the
final order of the commission. All refunds shall include
interest at the rate stated in section 1343.03 of the Revised
Code. The refund shall be in the form of a temporary reduction
in rates following the final order of the commission, and shall
be accomplished in such manner as shall be prescribed by the
commission in its final order. The commission shall exercise
continuing and exclusive jurisdiction over such refunds.
If the public utilities commission has not entered a final
order within five hundred forty-five days from the date of the
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As Passed by the House
filing of an application for an increase in rates under section
4909.18 of the Revised Code, a public utility shall have no
obligation to make a refund of amounts collected after the five
hundred forty-fifth day which exceed the amounts authorized by
the commission's final order.
Nothing in this section shall be construed to mitigate any
duty of the commission to issue a final order under section
4909.19 of the Revised Code.
Sec. 4928.01. (A) As used in this chapter:
(1) "Ancillary service" means any function necessary to
the provision of electric transmission or distribution service
to a retail customer and includes, but is not limited to,
scheduling, system control, and dispatch services; reactive
supply from generation resources and voltage control service;
reactive supply from transmission resources service; regulation
service; frequency response service; energy imbalance service;
operating reserve-spinning reserve service; operating reserve-
supplemental reserve service; load following; back-up supply
service; real-power loss replacement service; dynamic
scheduling; system black start capability; and network stability
service.
(2) "Billing and collection agent" means a fully
independent agent, not affiliated with or otherwise controlled
by an electric utility, electric services company, electric
cooperative, or governmental aggregator subject to certification
under section 4928.08 of the Revised Code, to the extent that
the agent is under contract with such utility, company,
cooperative, or aggregator solely to provide billing and
collection for retail electric service on behalf of the utility
company, cooperative, or aggregator.
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As Passed by the House
(3) "Certified territory" means the certified territory
established for an electric supplier under sections 4933.81 to
4933.90 of the Revised Code.
(4) "Competitive retail electric service" means a
component of retail electric service that is competitive as
provided under division (B) of this section.
(5) "Electric cooperative" means a not-for-profit electric
light company that both is or has been financed in whole or in
part under the "Rural Electrification Act of 1936," 49 Stat.
1363, 7 U.S.C. 901, and owns or operates facilities in this
state to generate, transmit, or distribute electricity, or a
not-for-profit successor of such company.
(6) "Electric distribution utility" means an electric
utility that supplies at least retail electric distribution
service and does not own or operate an electric generating
facility.
(7) "Electric light company" has the same meaning as in
section 4905.03 of the Revised Code and includes an electric
services company, but excludes any self-generator to the extent
that it consumes electricity it so produces, sells that
electricity for resale, or obtains electricity from a generating
facility it hosts on its premises.
(8) "Electric load center" has the same meaning as in
section 4933.81 of the Revised Code.
(9) "Electric services company" means an electric light
company that is engaged on a for-profit or not-for-profit basis
in the business of supplying or arranging for the supply of only
a competitive retail electric service in this state. "Electric
services company" includes a power marketer, power broker,
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1921 Sub. H. B. No. 15 Page 67
As Passed by the House
aggregator, or independent power producer but excludes an
electric cooperative, municipal electric utility, governmental
aggregator, or billing and collection agent.
(10) "Electric supplier" has the same meaning as in
section 4933.81 of the Revised Code.
(11) "Electric utility" means an electric light company
that has a certified territory and is engaged on a for-profit
basis either in the business of supplying at least a
noncompetitive retail electric service in this state or in the
businesses of supplying both a noncompetitive and a competitive
retail electric service in this state . "Electric utility"
excludes a municipal electric utility or a billing and
collection agent.
(12) "Firm electric service" means electric service other
than nonfirm electric service.
(13) "Governmental aggregator" means a legislative
authority of a municipal corporation, a board of township
trustees, or a board of county commissioners acting as an
aggregator for the provision of a competitive retail electric
service under authority conferred under section 4928.20 of the
Revised Code.
(14) A person acts "knowingly," regardless of the person's
purpose, when the person is aware that the person's conduct will
probably cause a certain result or will probably be of a certain
nature. A person has knowledge of circumstances when the person
is aware that such circumstances probably exist.
(15) "Level of funding for low-income customer energy
efficiency programs provided through electric utility rates"
means the level of funds specifically included in an electric
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1950 Sub. H. B. No. 15 Page 68
As Passed by the House
utility's rates on October 5, 1999, pursuant to an order of the
public utilities commission issued under Chapter 4905. or 4909.
of the Revised Code and in effect on October 4, 1999, for the
purpose of improving the energy efficiency of housing for the
utility's low-income customers. The term excludes the level of
any such funds committed to a specific nonprofit organization or
organizations pursuant to a stipulation or contract.
(16) "Low-income customer assistance programs" means the
percentage of income payment plan program, the home energy
assistance program, the home weatherization assistance program,
and the targeted energy efficiency and weatherization program.
(17) "Market development period" for an electric utility
means the period of time beginning on the starting date of
competitive retail electric service and ending on the applicable
date for that utility as specified in section 4928.40 of the
Revised Code, irrespective of whether the utility applies to
receive transition revenues under this chapter.
(18) "Market power" means the ability to impose on
customers a sustained price for a product or service above the
price that would prevail in a competitive market.
(19) "Mercantile customer" means a commercial or
industrial customer if the electricity consumed is for
nonresidential use and the customer consumes more than seven
hundred thousand kilowatt hours per year or is part of a
national account involving multiple facilities in one or more
states.
(20) "Municipal electric utility" means a municipal
corporation that owns or operates facilities to generate,
transmit, or distribute electricity.
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1979 Sub. H. B. No. 15 Page 69
As Passed by the House
(21) "Noncompetitive retail electric service" means a
component of retail electric service that is noncompetitive as
provided under division (B) of this section.
(22) "Nonfirm electric service" means electric service
provided pursuant to a schedule filed under section 4905.30 of
the Revised Code or pursuant to an arrangement under section
4905.31 of the Revised Code, which schedule or arrangement
includes conditions that may require the customer to curtail or
interrupt electric usage during nonemergency circumstances upon
notification by an electric utility.
(23) "Percentage of income payment plan arrears" means
funds eligible for collection through the percentage of income
payment plan rider, but uncollected as of July 1, 2000.
(24) "Person" has the same meaning as in section 1.59 of
the Revised Code.
(25) "Advanced energy project" means any technologies,
products, activities, or management practices or strategies that
facilitate the generation or use of electricity or energy and
that reduce or support the reduction of energy consumption or
support the production of clean, renewable energy for
industrial, distribution, commercial, institutional,
governmental, research, not-for-profit, or residential energy
users, including, but not limited to, advanced energy resources
and renewable energy resources. "Advanced energy project" also
includes any project described in division (A), (B), or (C) of
section 4928.621 of the Revised Code.
(26) "Regulatory assets" means the unamortized net
regulatory assets that are capitalized or deferred on the
regulatory books of the electric utility, pursuant to an order
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2008 Sub. H. B. No. 15 Page 70
As Passed by the House
or practice of the public utilities commission or pursuant to
generally accepted accounting principles as a result of a prior
commission rate-making decision, and that would otherwise have
been charged to expense as incurred or would not have been
capitalized or otherwise deferred for future regulatory
consideration absent commission action. "Regulatory assets"
includes, but is not limited to, all deferred demand-side
management costs; all deferred percentage of income payment plan
arrears; post-in-service capitalized charges and assets
recognized in connection with statement of financial accounting
standards no. 109 (receivables from customers for income taxes);
future nuclear decommissioning costs and fuel disposal costs as
those costs have been determined by the commission in the
electric utility's most recent rate or accounting application
proceeding addressing such costs; the undepreciated costs of
safety and radiation control equipment on nuclear generating
plants owned or leased by an electric utility; and fuel costs
currently deferred pursuant to the terms of one or more
settlement agreements approved by the commission.
(27) "Retail electric service" means any service involved
in supplying or arranging for the supply of electricity to
ultimate consumers in this state, from the point of generation
to the point of consumption. For the purposes of this chapter,
retail electric service includes one or more of the following
"service components": generation service, aggregation service,
power marketing service, power brokerage service, transmission
service, distribution service, ancillary service, metering
service, and billing and collection service.
(28) "Starting date of competitive retail electric
service" means January 1, 2001.
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2038 Sub. H. B. No. 15 Page 71
As Passed by the House
(29) "Customer-generator" means a user of a net metering
system.
(30) "Net metering" means measuring the difference in an
applicable billing period between the electricity supplied by an
electric service provider and the electricity generated by a
customer-generator that is fed back to the electric service
provider.
(31) "Net metering system" means a facility for the
production of electrical energy that does all of the following:
(a) Uses as its fuel either solar, wind, biomass, landfill
gas, or hydropower, or uses a microturbine or a fuel cell;
(b) Is located on a customer-generator's premises;
(c) Operates in parallel with the electric utility's
transmission and distribution facilities;
(d) Is intended primarily to offset part or all of the
customer-generator's annual requirements for electricity. For an
industrial customer-generator with a net metering system that
has a capacity of less than twenty megawatts and uses wind as
energy, this means the net metering system was sized so as to
not exceed one hundred per cent of the customer-generator's
annual requirements for electric energy at the time of
interconnectionelectric energy.
(32) "Self-generator" means an entity in this state that
owns or hosts on its premises property the entity controls an
electric generation facility that produces electricity primarily
for the owner's consumption and that may provide any such excess
electricity to another entity, whether the and that meet all the
following:
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2066 Sub. H. B. No. 15 Page 72
As Passed by the House
(a) The facility is installed or operated by the owner or
by an agent a third party under a contract, including a lease,
purchase power agreement, or other service contract;
(b) The facility connects directly to the owner's side of
the electric meter;
(c) The facility delivers electricity to the owner's side
of the electric meter without the use of an electric
distribution utility's or electric cooperative's distribution
system or transmission system .
(33) "Rate plan" means the standard service offer in
effect on the effective date of the amendment of this section by
S.B. 221 of the 127th general assembly, July 31, 2008.
(34) "Advanced energy resource" means any of the
following:
(a) Any method or any modification or replacement of any
property, process, device, structure, or equipment that
increases the generation output of an electric generating
facility to the extent such efficiency is achieved without
additional carbon dioxide emissions by that facility;
(b) Any distributed generation system consisting of
customer cogeneration technology;
(c) Clean coal technology that includes a carbon-based
product that is chemically altered before combustion to
demonstrate a reduction, as expressed as ash, in emissions of
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or
sulfur trioxide in accordance with the American society of
testing and materials standard D1757A or a reduction of metal
oxide emissions in accordance with standard D5142 of that
society, or clean coal technology that includes the design
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2095 Sub. H. B. No. 15 Page 73
As Passed by the House
capability to control or prevent the emission of carbon dioxide,
which design capability the commission shall adopt by rule and
shall be based on economically feasible best available
technology or, in the absence of a determined best available
technology, shall be of the highest level of economically
feasible design capability for which there exists generally
accepted scientific opinion;
(d) Advanced nuclear energy technology consisting of
generation III technology as defined by the nuclear regulatory
commission; other, later technology; or significant improvements
to existing facilities;
(e) Any fuel cell used in the generation of electricity,
including, but not limited to, a proton exchange membrane fuel
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or
solid oxide fuel cell;
(f) Advanced solid waste or construction and demolition
debris conversion technology, including, but not limited to,
advanced stoker technology, and advanced fluidized bed
gasification technology, that results in measurable greenhouse
gas emissions reductions as calculated pursuant to the United
States environmental protection agency's waste reduction model
(WARM);
(g) Demand-side management and any energy efficiency
improvement;
(h) Any new, retrofitted, refueled, or repowered
generating facility located in Ohio, including a simple or
combined-cycle natural gas generating facility or a generating
facility that uses biomass, coal, modular nuclear, or any other
fuel as its input;
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2124 Sub. H. B. No. 15 Page 74
As Passed by the House
(i) Any uprated capacity of an existing electric
generating facility if the uprated capacity results from the
deployment of advanced technology.
"Advanced energy resource" does not include a waste energy
recovery system that is, or has been, included in an energy
efficiency program of an electric distribution utility pursuant
to requirements under section 4928.66 of the Revised Code.
(35) "Air contaminant source" has the same meaning as in
section 3704.01 of the Revised Code.
(36) "Cogeneration technology" means technology that
produces electricity and useful thermal output simultaneously.
(37)(a) "Renewable energy resource" means any of the
following:
(i) Solar photovoltaic or solar thermal energy;
(ii) Wind energy;
(iii) Power produced by a hydroelectric facility;
(iv) Power produced by a small hydroelectric facility,
which is a facility that operates, or is rated to operate, at an
aggregate capacity of less than six megawatts;
(v) Power produced by a run-of-the-river hydroelectric
facility placed in service on or after January 1, 1980, that is
located within this state, relies upon the Ohio river, and
operates, or is rated to operate, at an aggregate capacity of
forty or more megawatts;
(vi) Geothermal energy;
(vii) Fuel derived from solid wastes, as defined in
section 3734.01 of the Revised Code, through fractionation,
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2151 Sub. H. B. No. 15 Page 75
As Passed by the House
biological decomposition, or other process that does not
principally involve combustion;
(viii) Biomass energy;
(ix) Energy produced by cogeneration technology that is
placed into service on or before December 31, 2015, and for
which more than ninety per cent of the total annual energy input
is from combustion of a waste or byproduct gas from an air
contaminant source in this state, which source has been in
operation since on or before January 1, 1985, provided that the
cogeneration technology is a part of a facility located in a
county having a population of more than three hundred sixty-five
thousand but less than three hundred seventy thousand according
to the most recent federal decennial census;
(x) Biologically derived methane gas;
(xi) Heat captured from a generator of electricity,
boiler, or heat exchanger fueled by biologically derived methane
gas;
(xii) Energy derived from nontreated by-products of the
pulping process or wood manufacturing process, including bark,
wood chips, sawdust, and lignin in spent pulping liquors.
"Renewable energy resource" includes, but is not limited
to, any fuel cell used in the generation of electricity,
including, but not limited to, a proton exchange membrane fuel
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or
solid oxide fuel cell; a linear generator; wind turbine located
in the state's territorial waters of Lake Erie; methane gas
emitted from an abandoned coal mine; waste energy recovery
system placed into service or retrofitted on or after the
effective date of the amendment of this section by S.B. 315 of
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2180 Sub. H. B. No. 15 Page 76
As Passed by the House
the 129th general assembly, September 10, 2012, except that a
waste energy recovery system described in division (A)(38)(b) of
this section may be included only if it was placed into service
between January 1, 2002, and December 31, 2004; storage facility
that will promote the better utilization of a renewable energy
resource; or distributed generation system used by a customer to
generate electricity from any such energy.
"Renewable energy resource" does not include a waste
energy recovery system that is, or was, on or after January 1,
2012, included in an energy efficiency program of an electric
distribution utility pursuant to requirements under section
4928.66 of the Revised Code.
(b) As used in division (A)(37) of this section,
"hydroelectric facility" means a hydroelectric generating
facility that is located at a dam on a river, or on any water
discharged to a river, that is within or bordering this state or
within or bordering an adjoining state and meets all of the
following standards:
(i) The facility provides for river flows that are not
detrimental for fish, wildlife, and water quality, including
seasonal flow fluctuations as defined by the applicable
licensing agency for the facility.
(ii) The facility demonstrates that it complies with the
water quality standards of this state, which compliance may
consist of certification under Section 401 of the "Clean Water
Act of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and
demonstrates that it has not contributed to a finding by this
state that the river has impaired water quality under Section
303(d) of the "Clean Water Act of 1977," 114 Stat. 870, 33
U.S.C. 1313.
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2210 Sub. H. B. No. 15 Page 77
As Passed by the House
(iii) The facility complies with mandatory prescriptions
regarding fish passage as required by the federal energy
regulatory commission license issued for the project, regarding
fish protection for riverine, anadromous, and catadromous fish.
(iv) The facility complies with the recommendations of the
Ohio environmental protection agency and with the terms of its
federal energy regulatory commission license regarding watershed
protection, mitigation, or enhancement, to the extent of each
agency's respective jurisdiction over the facility.
(v) The facility complies with provisions of the
"Endangered Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531
to 1544, as amended.
(vi) The facility does not harm cultural resources of the
area. This can be shown through compliance with the terms of its
federal energy regulatory commission license or, if the facility
is not regulated by that commission, through development of a
plan approved by the Ohio historic preservation office, to the
extent it has jurisdiction over the facility.
(vii) The facility complies with the terms of its federal
energy regulatory commission license or exemption that are
related to recreational access, accommodation, and facilities
or, if the facility is not regulated by that commission, the
facility complies with similar requirements as are recommended
by resource agencies, to the extent they have jurisdiction over
the facility; and the facility provides access to water to the
public without fee or charge.
(viii) The facility is not recommended for removal by any
federal agency or agency of any state, to the extent the
particular agency has jurisdiction over the facility.
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2239 Sub. H. B. No. 15 Page 78
As Passed by the House
(c) The standards in divisions (A)(37)(b)(i) to (viii) of
this section do not apply to a small hydroelectric facility
under division (A)(37)(a)(iv) of this section.
(38) "Waste energy recovery system" means any of the
following:
(a) A facility that generates electricity through the
conversion of energy from either of the following:
(i) Exhaust heat from engines or manufacturing,
industrial, commercial, or institutional sites, except for
exhaust heat from a facility whose primary purpose is the
generation of electricity;
(ii) Reduction of pressure in gas pipelines before gas is
distributed through the pipeline, provided that the conversion
of energy to electricity is achieved without using additional
fossil fuels.
(b) A facility at a state institution of higher education
as defined in section 3345.011 of the Revised Code that recovers
waste heat from electricity-producing engines or combustion
turbines and that simultaneously uses the recovered heat to
produce steam, provided that the facility was placed into
service between January 1, 2002, and December 31, 2004;
(c) A facility that produces steam from recovered waste
heat from a manufacturing process and uses that steam, or
transfers that steam to another facility, to provide heat to
another manufacturing process or to generate electricity.
(39) "Smart grid" means capital improvements to an
electric distribution utility's distribution infrastructure that
improve reliability, efficiency, resiliency, or reduce energy
demand or use, including, but not limited to, advanced metering
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2268 Sub. H. B. No. 15 Page 79
As Passed by the House
and automation of system functions.
(40) "Combined heat and power system" means the
coproduction of electricity and useful thermal energy from the
same fuel source designed to achieve thermal-efficiency levels
of at least sixty per cent, with at least twenty per cent of the
system's total useful energy in the form of thermal energy.
(41) "Legacy generation resource" means all generating
facilities owned directly or indirectly by a corporation that
was formed prior to 1960 by investor-owned utilities for the
original purpose of providing power to the federal government
for use in the nation's defense or in furtherance of national
interests, including the Ohio valley electric corporation.
(42) "Prudently incurred costs related to a legacy
generation resource" means costs, including deferred costs,
allocated pursuant to a power agreement approved by the federal
energy regulatory commission that relates to a legacy generation
resource, less any revenues realized from offering the
contractual commitment for the power agreement into the
wholesale markets, provided that where the net revenues exceed
net costs, those excess revenues shall be credited to customers.
Such costs shall exclude any return on investment in common
equity and, in the event of a premature retirement of a legacy
generation resource, shall exclude any recovery of remaining
debt. Such costs shall include any incremental costs resulting
from the bankruptcy of a current or former sponsor under such
power agreement or co-owner of the legacy generation resource if
not otherwise recovered through a utility rate cost recovery
mechanism.
(43)(a)(41)(a) "Green energy" means any energy generated
by using an energy resource that does one or more of the
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2298 Sub. H. B. No. 15 Page 80
As Passed by the House
following:
(i) Releases reduced air pollutants, thereby reducing
cumulative air emissions;
(ii) Is more sustainable and reliable relative to some
fossil fuels.
(b) "Green energy" includes energy generated using the
following:
(i) Natural gas as a resource;
(ii) Nuclear reaction.
(42) "Energy storage" means electrical generation and
storage performed by a distributed energy system connected
battery.
(43) "Linear generator" means an integrated system
consisting of oscillators, cylinders, electricity conversion
equipment, and associated balance of plant components that meet
the following criteria:
(a) Converts the linear motion of oscillators directly
into electricity without the use of a flame or spark;
(b) Is dispatchable with the ability to vary power output
across all loads;
(c) Can operate on multiple fuel types including renewable
fuels such as hydrogen, ammonia, and biogas.
(B) For the purposes of this chapter, a retail electric
service component shall be deemed a competitive retail electric
service if the service component is competitive pursuant to a
declaration by a provision of the Revised Code or pursuant to an
order of the public utilities commission authorized under
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2325 Sub. H. B. No. 15 Page 81
As Passed by the House
division (A) of section 4928.04 of the Revised Code. Otherwise,
the service component shall be deemed a noncompetitive retail
electric service.
Sec. 4928.02. It is the policy of this state to do the
following throughout this state:
(A) Ensure the availability to consumers of adequate,
reliable, safe, efficient, nondiscriminatory, and reasonably
priced retail electric service;
(B) Ensure the availability of unbundled and comparable
retail electric service that provides consumers with the
supplier, price, terms, conditions, and quality options they
elect to meet their respective needs;
(C) Ensure diversity of electricity supplies and
suppliers, by giving consumers effective choices over the
selection of those supplies and suppliers and by encouraging the
development of distributed and small generation facilities;
(D) Encourage innovation and market access for cost-
effective supply- and demand-side retail electric service
including, but not limited to, demand-side management, time-
differentiated pricing, waste energy recovery systems, smart
grid programs, and implementation of advanced metering
infrastructure;
(E) Encourage cost-effective and efficient access to
information regarding the operation of the transmission and
distribution systems of electric utilities in order to promote
both effective customer choice of retail electric service and
the development of performance standards and targets for service
quality for all consumers, including annual achievement reports
written in plain language;
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2354 Sub. H. B. No. 15 Page 82
As Passed by the House
(F) Ensure that an electric utility's transmission and
distribution systems are available to a customer-generator or
owner of distributed generation, so that the customer-generator
or owner can market and deliver the electricity it produces;
(G) Recognize the continuing emergence of competitive
electricity markets through the development and implementation
of flexible regulatory treatment;
(H) Ensure effective competition in the provision of
retail electric service by avoiding anticompetitive subsidies
flowing from a noncompetitive retail electric service to a
competitive retail electric service or to a product or service
other than retail electric service, and vice versa, including by
prohibiting the recovery of any generation-related costs through
distribution or transmission rates;
(I) Ensure retail electric service consumers protection
against unreasonable sales practices, market deficiencies, and
market power;
(J) Provide coherent, transparent means of giving
appropriate incentives to technologies that can adapt
successfully to potential environmental mandates;
(K) Encourage implementation of distributed generation
across customer classes through regular review and updating of
administrative rules governing critical issues such as, but not
limited to, interconnection standards, standby charges, and net
metering;
(L) Protect at-risk populations, including, but not
limited to, when considering the implementation of any new
advanced energy or renewable energy resource;
(M) Encourage the education of small business owners in
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2383 Sub. H. B. No. 15 Page 83
As Passed by the House
this state regarding the use of, and encourage the use of,
energy efficiency programs and alternative energy resources in
their businesses;
(N) Facilitate the state's effectiveness in the global
economy.
(O) Encourage cost-effective, timely, and efficient access
to and sharing of customer usage data with customers and
competitive suppliers to promote customer choice and grid
modernization.
(P) Ensure that a customer's data is provided in a
standard format and provided to third parties in as close to
real time as is economically justifiable in order to spur
economic investment and improve the energy options of individual
customers.
(Q) Encourage the development of community energy
facilities, as defined in section 4934.01 of the Revised Code,
for the benefit of customers in this state and to facilitate
participation by customers with the facilities.
(R) Establish a community energy pilot program, pursuant
to sections 4934.04 to 4934.17 and 4934.25 to 4934.27 of the
Revised Code.
(S) Establish program evaluations and consumer protections
ensuring community energy subscribers are effectively and
equitably receiving savings from participating in the community
energy pilot program.
In carrying out this policy, the commission shall consider
rules as they apply to the costs of electric distribution
infrastructure, including, but not limited to, line extensions,
for the purpose of development in this state.
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2412 Sub. H. B. No. 15 Page 84
As Passed by the House
Sec. 4928.041. (A) Except as provided in section 4905.31
or Chapter 4928. of the Revised Code, no electric utility shall
provide a competitive retail electric service in this state if
that service was deemed competitive or otherwise legally
classified as competitive prior to the effective date of this
section.
(B) The standard service offer under section 4928.141 of
the Revised Code shall continue to be provided to consumers in
this state by electric utilities.
Sec. 4928.05. (A)(1) On and after the starting date of
competitive retail electric service, a A competitive retail
electric service supplied by an electric utility or electric
services company, or by an electric utility consistent with
section 4928.141 of the Revised Code, shall not be subject to
supervision and regulation by a municipal corporation under
Chapter 743. of the Revised Code or by the public utilities
commission under Chapters 4901. to 4909., 4933., 4935., and
4963. of the Revised Code, except sections 4905.10 and 4905.31,
division (B) of section 4905.33, and sections 4905.35 and
4933.81 to 4933.90; except sections 4905.06, 4935.03, 4963.40,
and 4963.41 of the Revised Code only to the extent related to
service reliability and public safety; and except as otherwise
provided in this chapter. The commission's authority to enforce
those excepted provisions with respect to a competitive retail
electric service shall be such authority as is provided for
their enforcement under Chapters 4901. to 4909., 4933., 4935.,
and 4963. of the Revised Code and this chapter. Nothing in this
division shall be construed to limit the commission's authority
under sections 4928.141 to , 4928.142, and 4928.144 of the
Revised Code.
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2442 Sub. H. B. No. 15 Page 85
As Passed by the House
On and after the starting date of competitive retail
electric service, a (2) A competitive retail electric service
supplied by an electric cooperative shall not be subject to
supervision and regulation by the commission under Chapters
4901. to 4909., 4933., 4935., and 4963. of the Revised Code,
except as otherwise expressly provided in sections 4928.01 to
4928.10 and 4928.16 of the Revised Code.
(2) On and after the starting date of competitive retail
electric service, a (B)(1) A noncompetitive retail electric
service supplied by an electric utility shall be subject to
supervision and regulation by the commission under Chapters
4901. to 4909., 4933., 4935., and 4963. of the Revised Code and
this chapter, to the extent that authority is not preempted by
federal law. The commission's authority to enforce those
provisions with respect to a noncompetitive retail electric
service shall be the authority provided under those chapters and
this chapter, to the extent the authority is not preempted by
federal law. Notwithstanding Chapters 4905. and 4909. of the
Revised Code, commission authority under this chapter shall
include the authority to provide for the recovery, through a
reconcilable rider on an electric distribution utility's
distribution rates, of all transmission and transmission-related
costs, including ancillary and congestion costs, imposed on or
charged to the utility by the federal energy regulatory
commission or a regional transmission organization, independent
transmission operator, or similar organization approved by the
federal energy regulatory commission.
The commission shall adopt, for each electric distribution
utility that provides customers with a standard service offer in
compliance with sections 4928.141 and 4928.142 of the Revised
Code, a bypassable cost recovery mechanism relating to
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2473 Sub. H. B. No. 15 Page 86
As Passed by the House
transmission, ancillary, congestion, or any related service
required for such standard service offer that includes
provisions for the recovery of any cost of such service that the
electric distribution utility incurs pursuant to the standard
service offer.
(2) The commission shall exercise its jurisdiction with
respect to the delivery of electricity by an electric utility in
this state on or after the starting date of competitive retail
electric service so as to ensure that no aspect of the delivery
of electricity by the utility to consumers in this state that
consists of a noncompetitive retail electric service is
unregulated.
On and after that starting date, a (3) A noncompetitive
retail electric service supplied by an electric cooperative
shall not be subject to supervision and regulation by the
commission under Chapters 4901. to 4909., 4933., 4935., and
4963. of the Revised Code, except sections 4933.81 to 4933.90
and 4935.03 of the Revised Code. The commission's authority to
enforce those excepted sections with respect to a noncompetitive
retail electric service of an electric cooperative shall be such
authority as is provided for their enforcement under Chapters
4933. and 4935. of the Revised Code.
(B) Nothing in this chapter affects the authority of the
commission under Title XLIX of the Revised Code to regulate an
electric light company in this state or an electric service
supplied in this state prior to the starting date of competitive
retail electric service.
Sec. 4928.08. (A) This section applies to an electric
cooperative, or to a governmental aggregator that is a municipal
electric utility, only to the extent of a competitive retail
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2503 Sub. H. B. No. 15 Page 87
As Passed by the House
electric service it provides to a customer to whom it does not
provide a noncompetitive retail electric service through
transmission or distribution facilities it singly or jointly
owns or operates.
(B) (B)(1) No electric utility, electric services company,
electric cooperative, or governmental aggregator shall provide a
competitive retail electric service to a consumer in this state
on and after the starting date of competitive retail electric
service without first being certified by the public utilities
commission regarding its managerial, technical, and financial
capability to provide that service and providing a financial
guarantee sufficient to protect customers and electric
distribution utilities from default. Certification shall be
granted pursuant to procedures and standards the commission
shall prescribe in accordance with division (C) of this section,
except that certification or certification renewal shall be
deemed approved thirty days after the filing of an application
with the commission unless the commission suspends that approval
for good cause shown. In the case of such a suspension, the
commission shall act to approve or deny certification or
certification renewal to the applicant not later than ninety
days after the date of the suspension.
(2) The public utilities commission shall establish rules
to require an electric services company to maintain financial
assurances sufficient to protect customers and electric
distribution utilities from default. Such rules also shall
specifically allow an electric distribution utility to set
reasonable standards for its security and the security of its
customers through financial requirements set in its tariffs.
(3) As used in division (B)(2) of this section, an
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2533 Sub. H. B. No. 15 Page 88
As Passed by the House
"electric services company" has the same meaning as in section
4928.01 of the Revised Code, but excludes a power broker or
aggregator.
(C) Capability standards adopted in rules under division
(B) of this section shall be sufficient to ensure compliance
with the minimum service requirements established under section
4928.10 of the Revised Code and with section 4928.09 of the
Revised Code. The standards shall allow flexibility for
voluntary aggregation, to encourage market creativity in
responding to consumer needs and demands, and shall allow
flexibility for electric services companies that exclusively
provide installation of small electric generation facilities, to
provide ease of market access. The rules shall include
procedures for biennially renewing certification.
(D) The commission may suspend, rescind, or conditionally
rescind the certification of any electric utility, electric
services company, electric cooperative, or governmental
aggregator issued under this section if the commission
determines, after reasonable notice and opportunity for hearing,
that the utility, company, cooperative, or aggregator has failed
to comply with any applicable certification standards or has
engaged in anticompetitive or unfair, deceptive, or
unconscionable acts or practices in this state.
(E) No electric distribution utility on and after the
starting date of competitive retail electric service shall
knowingly distribute electricity, to a retail consumer in this
state, for any supplier of electricity that has not been
certified by the commission pursuant to this section.
(F) Notwithstanding any provision of section 121.95 of the
Revised Code to the contrary, a regulatory restriction contained
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2563 Sub. H. B. No. 15 Page 89
As Passed by the House
in a rule adopted under section 4928.08 of the Revised Code is
not subject to sections 121.95 to 121.953 of the Revised Code.
Sec. 4928.101. (A) As used in this section:
(1) "Small commercial customer" means any customer that
receives electric service pursuant to a nonresidential tariff if
the customer's demand for electricity does not exceed twenty-
five kilowatts within the last twelve months.
(2) "Small commercial customer" excludes any customer that
does one or both of the following:
(a) Manages multiple electric meters and, within the last
twelve months, the electricity demand for at least one of the
meters is twenty-five kilowatts or more;
(b) Has, at the customer's discretion, aggregated the
demand for the customer-managed meters.
(B) If a competitive retail electric service supplier
offers a residential or small commercial customer a contract for
a fixed introductory rate that converts to a variable rate upon
the expiration of the fixed rate, the supplier shall send two
notices to each residential and small commercial customer that
enters into such a contract. Each notice shall provide all of
the following information to the customer:
(1) The fixed rate that is expiring under the contract;
(2) The expiration date of the contract's fixed rate;
(3) The public utilities commission web site that, as a
comparison tool, lists rates offered by competitive retail
electric service suppliers;
(4) A statement explaining that appearing on each
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2590 Sub. H. B. No. 15 Page 90
As Passed by the House
customer's bill is a price-to-compare notice that lists the
utility's standard service offer price.
(C) The second notice shall include all the requirements
as stated in division (B) of this section and shall also
identify the initial rate to be charged upon the contract's
conversion to a variable rate.
(D) The notices shall be sent by standard United States
mail or electronically with a customer's verifiable consent as
follows:
(1) The supplier shall send the first notice not earlier
than ninety days, and not later than sixty days, prior to the
expiration of the fixed rate.
(2) The supplier shall send the second notice not earlier
than forty-five days, and not later than fifteen days, prior to
the expiration of the fixed rate.
(E) A competitive retail electric service supplier shall
provide an annual notice, by standard United States mail or
electronically with a customer's verifiable consent, to each
residential and small commercial customer that has entered into
a contract with the supplier that has converted to a variable
rate upon the expiration of the contract's fixed introductory
rate. The notice shall inform the customer that the customer is
currently subject to a variable rate and that other fixed rate
contracts are available.
(F) Not later than one hundred fifty days after the
effective date of this section, the commission shall adopt rules
in order to implement divisions (B) to (E) of this section. The
rules, at a minimum, shall include the following requirements
regarding the notices required under divisions (B) to (E) of
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2619 Sub. H. B. No. 15 Page 91
As Passed by the House
this section:
(1) To use clear and unambiguous language in order to
enable the customer to make an informed decision;
(2) To design the notices in a way to ensure that they
cannot be confused with marketing materials.
(G) Notwithstanding any provision of section 121.95 of the
Revised Code to the contrary, a regulatory restriction contained
in a rule adopted under section 4928.101 of the Revised Code is
not subject to sections 121.95 to 121.953 of the Revised Code.
Sec. 4928.102. (A) As used in this section, "customer
account information" means a unique electric distribution
utility number or other customer identification number used by
the utility to identify a customer and the customer's account
record.
(B) The public utilities commission shall adopt rules to
ensure that an electric distribution utility processes a
customer's change in competitive retail electric supplier by
using customer account information. A customer who consents to a
change of supplier shall not be required to provide customer
account information to the supplier if the customer provides a
valid form of government-issued identification issued to the
customer or a sufficient alternative form of identification that
allows the supplier to establish the customer's identity
accurately.
(C) Notwithstanding any provision of section 121.95 of the
Revised Code to the contrary, a regulatory restriction contained
in a rule adopted under this section is not subject to sections
121.95 to 121.953 of the Revised Code.
Sec. 4928.14. The (A) Except as provided in division (C)
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2648 Sub. H. B. No. 15 Page 92
As Passed by the House
of this section, the failure of a supplier to provide retail
electric generation service to customers within the certified
territory of an electric distribution utility shall result in
the supplier's customers, after reasonable notice, defaulting to
the utility's standard service offer under sections 4928.141 ,
and 4928.142, and 4928.143 of the Revised Code until the
customer chooses an alternative supplier. A
(B) A supplier is deemed under this section to have failed
to provide such retail electric generation service if the
commission finds, after reasonable notice and opportunity for
hearing, that any of the following conditions are met:
(A) (1) The supplier has defaulted on its contracts with
customers, is in receivership, or has filed for bankruptcy.
(B) (2) The supplier is no longer capable of providing the
service.
(C) (3) The supplier is unable to provide delivery to
transmission or distribution facilities for such period of time
as may be reasonably specified by commission rule adopted under
division (A) of section 4928.06 of the Revised Code.
(D) (4) The supplier's certification has been suspended,
conditionally rescinded, or rescinded under division (D) of
section 4928.08 of the Revised Code.
(C) If an electric distribution utility has an electric
security plan that was approved under section 4928.143 of the
Revised Code as that section existed prior to the amendments to
this section by this act, the failure of a supplier to provide
retail electric generation service to customers within the
certified territory of that utility shall result in the
supplier's customers, after reasonable notice, defaulting to the
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2677 Sub. H. B. No. 15 Page 93
As Passed by the House
utility's standard service offer under that electric security
plan until the customer chooses an alternative supplier or until
the utility's standard service offer is authorized under section
4928.142 of the Revised Code.
Sec. 4928.141. (A) Beginning January 1, 2009, an (A)(1) An
electric distribution utility shall provide consumers, on a
comparable and nondiscriminatory basis within its certified
territory, a standard service offer of all competitive retail
electric services necessary to maintain essential electric
service to consumers, including a firm supply of electric
generation service. To that end, the electric distribution
utility shall apply to the public utilities commission to
establish the standard service offer in accordance with section
4928.142 or 4928.143 of the Revised Code and, at its discretion,
may apply simultaneously under both sections, except that the
utility's first standard service offer application at minimum
shall include a filing under section 4928.143 of the Revised
Code. Only Except as provided in division (A)(2) of this
section, a standard service offer authorized in accordance with
section 4928.142 or 4928.143 of the Revised Code, shall serve as
the utility's standard service offer for the purpose of
compliance with this section ;, and that standard service offer
shall serve as the utility's default standard service offer for
the purpose of section 4928.14 of the Revised Code.
Notwithstanding the foregoing provision, the rate
(2) An electric distribution utility's electric security
plan of an electric distribution utility that was approved under
section 4928.143 of the Revised Code as that section existed
prior to the amendments to this section by this act shall
continue for the purpose of the utility's compliance with this
division (A)(1) of this section until a standard service offer
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2708 Sub. H. B. No. 15 Page 94
As Passed by the House
is first authorized to be effective under section 4928.142 or
4928.143 of the Revised Code, and, as applicable, pursuant to
division (D) of section 4928.143 of the Revised Code, any rate .
Each security plan that extends approved before the effective
date of the amendments to this section by this act shall extend
beyond December 31, 2008, shall continue to be in effect for the
subject electric distribution utility for the duration of the
plan's termthrough the final standard service offer auction
delivery period approved by the public utilities commission
under the plan as of the effective date of the amendments to
this section by this act and thereafter shall terminate .
(3) A standard service offer under section 4928.142 or
4928.143 of the Revised Code shall exclude any previously
authorized allowances for transition costs, with such exclusion
being effective on and after the date that the allowance is
scheduled to end under the utility's rate electric security
plan.
(B) The commission shall set the time for hearing of a
filing under section 4928.142 or 4928.143 of the Revised Code,
send written notice of the hearing to the electric distribution
utility, and publish notice in a newspaper of general
circulation in each county in the utility's certified territory.
The commission shall adopt rules regarding filings under those
sections the section.
Sec. 4928.142. (A) For the purpose of complying with
section 4928.141 of the Revised Code and subject to division (D)
of this section and, as applicable, subject to the rate plan
requirement requirements of division (A) of section 4928.141 of
the Revised Code, an electric distribution utility may shall
establish a standard service offer price for retail electric
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2738 Sub. H. B. No. 15 Page 95
As Passed by the House
generation service that is delivered to the utility under a
market-rate offer.
(1) The market-rate offer shall be determined through a
competitive bidding process that provides for all of the
following:
(a) Open, fair, and transparent competitive solicitation;
(b) Clear product definition;
(c) Standardized bid evaluation criteria;
(d) Oversight by an independent third party that shall
design the solicitation, administer the bidding, and ensure that
the criteria specified in division divisions (A)(1)(a) to (c) of
this section are met;
(e) Evaluation of the submitted bids prior to the
selection of the least-cost bid winner or winners.
No generation supplier shall be prohibited from
participating in the bidding process.
(2) The public utilities commission shall modify rules, or
adopt new rules as necessary, concerning the conduct of the
competitive bidding process and the qualifications of bidders,
which rules shall foster supplier participation in the bidding
process and shall be consistent with the requirements of
division (A)(1) of this section.
(B) Prior to initiating a competitive bidding process for
a market-rate offer under division (A) of this section, the
electric distribution utility shall file an application with the
commission. An electric distribution utility may file its
application with the commission prior to the effective date of
the commission rules required under division (A)(2) of this
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2766 Sub. H. B. No. 15 Page 96
As Passed by the House
section, and, as the commission determines necessary, the
utility shall immediately conform its filing to the rules upon
their taking effect.
An application under this division shall detail the
electric distribution utility's proposed compliance with the
requirements of division (A)(1) of this section and with
commission rules under division (A)(2) of this section and
demonstrate that all of the following requirements are met:
(1) The electric distribution utility or its transmission
service affiliate belongs to at least one regional transmission
organization that has been approved by the federal energy
regulatory commission; or there otherwise is comparable and
nondiscriminatory access to the electric transmission grid.
(2) Any such regional transmission organization has a
market-monitor function and the ability to take actions to
identify and mitigate market power or the electric distribution
utility's market conduct; or a similar market monitoring
function exists with commensurate ability to identify and
monitor market conditions and mitigate conduct associated with
the exercise of market power.
(3) A published source of information is available
publicly or through subscription that identifies pricing
information for traded electricity on- and off-peak energy
products that are contracts for delivery beginning at least two
years from the date of the publication and is updated on a
regular basis.
The commission shall initiate a proceeding and, within
ninety days after the application's filing date, shall determine
by order whether the electric distribution utility and its
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2795 Sub. H. B. No. 15 Page 97
As Passed by the House
market-rate offer meet all of the foregoing requirements. If the
finding is positive, the electric distribution utility may shall
initiate its competitive bidding process. If the finding is
negative as to one or more requirements, the commission in the
order shall direct the electric distribution utility regarding
how any deficiency may shall be timely remedied in a timely
manner to the commission's satisfaction ; otherwise, the electric
distribution utility shall withdraw the application. However, if
such remedy is made and the subsequent finding is positive and
also if the electric distribution utility made a simultaneous
filing under this section and section 4928.143 of the Revised
Code, the utility shall not initiate its competitive bid until
at least one hundred fifty days after the filing date of those
applications.
(C) Upon the completion of the competitive bidding process
authorized by divisions (A) and (B) of this section , including
for the purpose of division (D) of this section , the commission
shall select the least-cost bid winner or winners of that
process, and such selected bid or bids, as prescribed as retail
rates by the commission, shall be the electric distribution
utility's standard service offer unless the commission, by order
issued before the third calendar day following the conclusion of
the competitive bidding process for the market rate offer,
determines that one or more of the following criteria were not
met:
(1) Each portion of the bidding process was
oversubscribed, such that the amount of supply bid upon was
greater than the amount of the load bid out.
(2) There were four or more bidders.
(3) At least twenty-five per cent of the load is bid upon
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2825 Sub. H. B. No. 15 Page 98
As Passed by the House
by one or more persons other than the electric distribution
utility.
All costs incurred by the electric distribution utility as
a result of or related to the competitive bidding process or to
procuring generation service to provide the standard service
offer, including the costs of energy and capacity and the costs
of all other products and services procured as a result of the
competitive bidding process, shall be timely recovered through
the standard service offer price, and, for that purpose, the
commission shall approve a reconciliation mechanism, other
recovery mechanism, or a combination of such mechanisms for the
utility.
(D) The first application filed under this section by an
electric distribution utility that, as of July 31, 2008,
directly owns, in whole or in part, operating electric
generating facilities that had been used and useful in this
state shall require that a portion of that the utility's
standard service offer load for the first five years of the
market rate offer be competitively bid under division (A) of
this section as follows: ten per cent of the load in year one,
not more than twenty per cent in year two, thirty per cent in
year three, forty per cent in year four, and fifty per cent in
year five. Consistent with those percentages, the commission
shall determine the actual percentages for each year of years
one through five. The standard service offer price for retail
electric generation service under this first application shall
be a proportionate blend of the bid price and the generation
service price for the remaining standard service offer load,
which latter price shall be equal to the electric distribution
utility's most recent standard service offer price, adjusted
upward or downward as the commission determines reasonable,
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2856 Sub. H. B. No. 15 Page 99
As Passed by the House
relative to the jurisdictional portion of any known and
measurable changes from the level of any one or more of the
following costs as reflected in that most recent standard
service offer price:
(1) The electric distribution utility's prudently incurred
cost of fuel used to produce electricity;
(2) Its prudently incurred purchased power costs;
(3) Its prudently incurred costs of satisfying the supply
and demand portfolio requirements of this state, including, but
not limited to, renewable energy resource and energy efficiency
requirements;
(4) Its costs prudently incurred to comply with
environmental laws and regulations, with consideration of the
derating of any facility associated with those costs.
In making any adjustment to the most recent standard
service offer price on the basis of costs described in division
(D) of this section, the commission shall include the benefits
that may become available to the electric distribution utility
as a result of or in connection with the costs included in the
adjustment, including, but not limited to, the utility's receipt
of emissions credits or its receipt of tax benefits or of other
benefits, and, accordingly, the commission may impose such
conditions on the adjustment to ensure that any such benefits
are properly aligned with the associated cost responsibility.
The commission shall also determine how such adjustments will
affect the electric distribution utility's return on common
equity that may be achieved by those adjustments. The commission
shall not apply its consideration of the return on common equity
to reduce any adjustments authorized under this division unless
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2885 Sub. H. B. No. 15 Page 100
As Passed by the House
the adjustments will cause the electric distribution utility to
earn a return on common equity that is significantly in excess
of the return on common equity that is earned by publicly traded
companies, including utilities, that face comparable business
and financial risk, with such adjustments for capital structure
as may be appropriate. The burden of proof for demonstrating
that significantly excessive earnings will not occur shall be on
the electric distribution utility.
Additionally, the commission may adjust the electric
distribution utility's most recent standard service offer price
by such just and reasonable amount that the commission
determines necessary to address any emergency that threatens the
utility's financial integrity or to ensure that the resulting
revenue available to the utility for providing the standard
service offer is not so inadequate as to result, directly or
indirectly, in a taking of property without compensation
pursuant to Section 19 of Article I, Ohio Constitution. The
electric distribution utility has the burden of demonstrating
that any adjustment to its most recent standard service offer
price is proper in accordance with this division.
(E) Beginning in the second year of a blended price under
division (D) of this section and notwithstanding any other
requirement of this section, the commission may alter
prospectively the proportions specified in that division to
mitigate any effect of an abrupt or significant change in the
electric distribution utility's standard service offer price
that would otherwise result in general or with respect to any
rate group or rate schedule but for such alteration. Any such
alteration shall be made not more often than annually, and the
commission shall not, by altering those proportions and in any
event, including because of the length of time, as authorized
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2916 Sub. H. B. No. 15 Page 101
As Passed by the House
under division (C) of this section, taken to approve the market
rate offer, cause the duration of the blending period to exceed
ten years as counted from the effective date of the approved
market rate offer. Additionally, any such alteration shall be
limited to an alteration affecting the prospective proportions
used during the blending period and shall not affect any
blending proportion previously approved and applied by the
commission under this division.
(F) An electric distribution utility that has received
commission approval of its first application under division (C)
of this section shall not, nor ever shall be authorized or
required by the commission to, file an application under section
4928.143 of the Revised Code .
Sec. 4928.144. The public utilities commission by order
may authorize any just and reasonable phase-in of any electric
distribution utility rate or price established under sections
4928.141 to 4928.143 and 4928.142 of the Revised Code, and
inclusive of carrying charges, as the commission considers
necessary to ensure rate or price stability for consumers. If
the commission's order includes such a phase-in, the order also
shall provide for the creation of regulatory assets pursuant to
generally accepted accounting principles, by authorizing the
deferral of incurred costs equal to the amount not collected,
plus carrying charges on that amount. Further, the order shall
authorize the collection of those deferrals through a
nonbypassable surcharge on any such rate or price so established
for the electric distribution utility by the commission.
Sec. 4928.149. No electric distribution utility may use
any electric energy storage system to participate in the
wholesale market, if the utility purchased or acquired that
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2946 Sub. H. B. No. 15 Page 102
As Passed by the House
system for distribution service.
Sec. 4928.151. The public utilities commission shall adopt
and enforce rules prescribing a uniform, statewide policy
regarding electric transmission and distribution line extensions
and requisite substations and related facilities that are
requested by nonresidential customers of electric utilities, so
that, on and after the effective date of the initial rules so
adopted, all such utilities apply the same policies and charges
to those customers. Initial rules shall be adopted not later
than six months after the effective date of this section . The
rules shall address the just and reasonable allocation to and
utility recovery from the requesting customer or other customers
of the utility of all costs of any such line extension and any
requisite substation or related facility, including, but not
limited to, the costs of necessary technical studies, operations
and maintenance costs, and capital costs, including a return on
capital costs. The rules shall also include the following:
(A) Require nonresidential customers to be responsible for
the actual cost of necessary technical studies regarding the
customer's requested transmission and distribution line
extensions;
(B) Require the utility to give nonresidential customers
taking service at greater than thirty-four thousand volts the
option to self-build any such transmission and distribution line
extensions and related facilities that are dedicated to the
nonresidential customer's new service. Related facilities may
include any requisite substation, switching station, breaker
station, or other related system upgrades. If the nonresidential
customer elects to self-build, the customer is responsible for
one hundred per cent of the costs and shall build the system to
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2976 Sub. H. B. No. 15 Page 103
As Passed by the House
the utility's published engineering and construction standards
using contractors that have been approved by the utility. Such
standards are subject to approval by the public utilities
commission, and the utility shall publish such standards and
approved contractors on a public web site. A nonresidential
customer who elects to self-build the line extension and related
facilities shall transfer ownership and operation of the
facilities to the utility to own, operate, and maintain the
facility.
(C) Require nonresidential customers that take service at
greater than thirty-four thousand volts and do not elect to
self-build to provide credit support or reimbursement to the
utility for one hundred per cent of the utility's costs of any
such line extension and any requisite substations and related
facilities, including the costs of necessary technical studies,
operations and maintenance costs, and capital costs, including a
return on capital costs.
Sec. 4928.17. (A) Except as otherwise provided in sections
4928.141 or 4928.142 or 4928.143 or 4928.31 to 4928.40 of the
Revised Code and beginning on the starting date of competitive
retail electric service , no electric utility shall engage in
this state, either directly or through an affiliate, in the
businesses of supplying a noncompetitive retail electric service
and supplying a competitive retail electric service, or in the
businesses of supplying a noncompetitive retail electric service
and supplying a product or service other than retail electric
service, unless the utility implements and operates under a
corporate separation plan that is approved by the public
utilities commission under this section, is consistent with the
policy specified in section 4928.02 of the Revised Code, and
achieves all of the following:
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3007 Sub. H. B. No. 15 Page 104
As Passed by the House
(1) The plan provides, at minimum, for the provision of
the competitive retail electric service or the nonelectric
product or service through a fully separated affiliate of the
utility, and the plan includes separate accounting requirements,
the code of conduct as ordered by the commission pursuant to a
rule it shall adopt under division (A) of section 4928.06 of the
Revised Code, and such other measures as are necessary to
effectuate the policy specified in section 4928.02 of the
Revised Code.
(2) The plan satisfies the public interest in preventing
unfair competitive advantage and preventing the abuse of market
power.
(3) The plan is sufficient to ensure that the utility will
not extend any undue preference or advantage to any affiliate,
division, or part of its own business engaged in the business of
supplying the competitive retail electric service or nonelectric
product or service, including, but not limited to, utility
resources such as trucks, tools, office equipment, office space,
supplies, customer and marketing information, advertising,
billing and mailing systems, personnel, and training, without
compensation based upon fully loaded embedded costs charged to
the affiliate; and to ensure that any such affiliate, division,
or part will not receive undue preference or advantage from any
affiliate, division, or part of the business engaged in business
of supplying the noncompetitive retail electric service. No such
utility, affiliate, division, or part shall extend such undue
preference. Notwithstanding any other division of this section,
a utility's obligation under division (A)(3) of this section
shall be effective January 1, 2000.
(B) The commission may approve, modify and approve, or
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3037 Sub. H. B. No. 15 Page 105
As Passed by the House
disapprove a corporate separation plan filed with the commission
under division (A) of this section. As part of the code of
conduct required under division (A)(1) of this section, the
commission shall adopt rules pursuant to division (A) of section
4928.06 of the Revised Code regarding corporate separation and
procedures for plan filing and approval. The rules shall include
limitations on affiliate practices solely for the purpose of
maintaining a separation of the affiliate's business from the
business of the utility to prevent unfair competitive advantage
abuse of market power by virtue of that relationship. The rules
also shall include an opportunity for any person having a real
and substantial interest in the corporate separation plan to
file specific objections to the plan and propose specific
responses to issues raised in the objections, which objections
and responses the commission shall address in its final order.
Prior to commission approval of the plan, the commission shall
afford a hearing upon those aspects of the plan that the
commission determines reasonably require a hearing. The
commission may reject and require refiling of a substantially
inadequate plan under this section.
(C) The commission shall issue an order approving or
modifying and approving a corporate separation plan under this
section, to be effective on the date specified in the order,
only upon findings that the plan reasonably complies with the
requirements of division (A) of this section and will provide
for ongoing compliance with the policy specified in section
4928.02 of the Revised Code. However, for good cause shown, the
commission may issue an order approving or modifying and
approving a corporate separation plan under this section that
does not comply with division (A)(1) of this section but
complies with such functional separation requirements as the
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3068 Sub. H. B. No. 15 Page 106
As Passed by the House
commission authorizes to apply for an interim period prescribed
in the order, upon a finding that such alternative plan will
provide for ongoing compliance with the policy specified in
section 4928.02 of the Revised Code.
(D) Any party may seek an amendment to a corporate
separation plan approved under this section, and the commission,
pursuant to a request from any party or on its own initiative,
may order as it considers necessary the filing of an amended
corporate separation plan to reflect changed circumstances.
(E) No electric distribution utility shall sell or
transfer any generating asset it wholly or partly owns at any
time without obtaining prior commission approval.
Sec. 4928.20. (A) The legislative authority of a municipal
corporation may adopt an ordinance, or the board of township
trustees of a township or the board of county commissioners of a
county may adopt a resolution, under which , on or after the
starting date of competitive retail electric service, it may
aggregate in accordance with this section the retail electrical
loads located, respectively, within the municipal corporation,
township, or unincorporated area of the county and, for that
purpose, may enter into service agreements to facilitate for
those loads the sale and purchase of electricity. The
legislative authority or board also may exercise such authority
jointly with any other such legislative authority or board. For
customers that are not mercantile customers, an ordinance or
resolution under this division shall specify whether the
aggregation will occur only with the prior, affirmative consent
of each person owning, occupying, controlling, or using an
electric load center proposed to be aggregated or will occur
automatically for all such persons pursuant to the opt-out
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3098 Sub. H. B. No. 15 Page 107
As Passed by the House
requirements of division (D) of this section. The aggregation of
mercantile customers shall occur only with the prior,
affirmative consent of each such person owning, occupying,
controlling, or using an electric load center proposed to be
aggregated. Nothing in this division, however, authorizes the
aggregation of the retail electric loads of an electric load
center, as defined in section 4933.81 of the Revised Code, that
is located in the certified territory of a nonprofit electric
supplier under sections 4933.81 to 4933.90 of the Revised Code
or an electric load center served by transmission or
distribution facilities of a municipal electric utility.
(B) If an ordinance or resolution adopted under division
(A) of this section specifies that aggregation of customers that
are not mercantile customers will occur automatically as
described in that division, the ordinance or resolution shall
direct the board of elections to submit the question of the
authority to aggregate to the electors of the respective
municipal corporation, township, or unincorporated area of a
county at a special election on the day of the next primary or
general election in the municipal corporation, township, or
county. The legislative authority or board shall certify a copy
of the ordinance or resolution to the board of elections not
less than ninety days before the day of the special election. No
ordinance or resolution adopted under division (A) of this
section that provides for an election under this division shall
take effect unless approved by a majority of the electors voting
upon the ordinance or resolution at the election held pursuant
to this division.
(C) Upon the applicable requisite authority under
divisions (A) and (B) of this section, the legislative authority
or board shall develop a plan of operation and governance for
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3129 Sub. H. B. No. 15 Page 108
As Passed by the House
the aggregation program so authorized. Before adopting a plan
under this division, the legislative authority or board shall
hold at least two public hearings on the plan. Before the first
hearing, the legislative authority or board shall publish notice
of the hearings once a week for two consecutive weeks in a
newspaper of general circulation in the jurisdiction or as
provided in section 7.16 of the Revised Code. The notice shall
summarize the plan and state the date, time, and location of
each hearing.
(D) No legislative authority or board, pursuant to an
ordinance or resolution under divisions (A) and (B) of this
section that provides for automatic aggregation of customers
that are not mercantile customers as described in division (A)
of this section, shall aggregate the electrical load of any
electric load center located within its jurisdiction unless it
in advance clearly discloses to the person owning, occupying,
controlling, or using the load center that the person will be
enrolled automatically in the aggregation program and will
remain so enrolled unless the person affirmatively elects by a
stated procedure not to be so enrolled. The disclosure shall
state prominently the rates, charges, and other terms and
conditions of enrollment. The stated procedure shall allow any
person enrolled in the aggregation program the opportunity to
opt out of the program every three years, without paying a
switching fee. Any such person that opts out before the
commencement of the aggregation program pursuant to the stated
procedure shall default to the standard service offer provided
under section 4928.14 or division (D) of section 4928.35 of the
Revised Code until the person chooses an alternative supplier.
(E)(1) With respect to a governmental aggregation for a
municipal corporation that is authorized pursuant to divisions
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3160 Sub. H. B. No. 15 Page 109
As Passed by the House
(A) to (D) of this section, resolutions may be proposed by
initiative or referendum petitions in accordance with sections
731.28 to 731.41 of the Revised Code.
(2) With respect to a governmental aggregation for a
township or the unincorporated area of a county, which
aggregation is authorized pursuant to divisions (A) to (D) of
this section, resolutions may be proposed by initiative or
referendum petitions in accordance with sections 731.28 to
731.40 of the Revised Code, except that:
(a) The petitions shall be filed, respectively, with the
township fiscal officer or the board of county commissioners,
who shall perform those duties imposed under those sections upon
the city auditor or village clerk.
(b) The petitions shall contain the signatures of not less
than ten per cent of the total number of electors in,
respectively, the township or the unincorporated area of the
county who voted for the office of governor at the preceding
general election for that office in that area.
(F) A governmental aggregator under division (A) of this
section is not a public utility engaging in the wholesale
purchase and resale of electricity, and provision of the
aggregated service is not a wholesale utility transaction. A
governmental aggregator shall be subject to supervision and
regulation by the public utilities commission only to the extent
of any competitive retail electric service it provides and
commission authority under this chapter.
(G) This section does not apply in the case of a municipal
corporation that supplies such aggregated service to electric
load centers to which its municipal electric utility also
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3189 Sub. H. B. No. 15 Page 110
As Passed by the House
supplies a noncompetitive retail electric service through
transmission or distribution facilities the utility singly or
jointly owns or operates.
(H) A governmental aggregator shall not include in its
aggregation the accounts of any of the following:
(1) A customer that has opted out of the aggregation;
(2) A customer in contract with a certified electric
services company;
(3) A customer that has a special contract with an
electric distribution utility;
(4) A customer that is not located within the governmental
aggregator's governmental boundaries;
(5) Subject to division (C) of section 4928.21 of the
Revised Code, a customer who appears on the "do not aggregate"
list maintained under that section.
(I) Customers that are part of a governmental aggregation
under this section shall be responsible only for such portion of
a surcharge under section 4928.144 of the Revised Code that is
proportionate to the benefits, as determined by the commission,
that electric load centers within the jurisdiction of the
governmental aggregation as a group receive. The proportionate
surcharge so established shall apply to each customer of the
governmental aggregation while the customer is part of that
aggregation. If a customer ceases being such a customer, the
otherwise applicable surcharge shall apply. Nothing in this
section shall result in less than full recovery by an electric
distribution utility of any surcharge authorized under section
4928.144 of the Revised Code. Nothing in this section shall
result in less than the full and timely imposition, charging,
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3218 Sub. H. B. No. 15 Page 111
As Passed by the House
collection, and adjustment by an electric distribution utility,
its assignee, or any collection agent, of the phase-in-recovery
charges authorized pursuant to a final financing order issued
pursuant to sections 4928.23 to 4928.2318 of the Revised Code.
(J) On behalf of the customers that are part of a
governmental aggregation under this section and by filing
written notice with the public utilities commission, the
legislative authority that formed or is forming that
governmental aggregation may elect not to receive standby
service within the meaning of division (B)(2)(d) of section
4928.143 of the Revised Code from an electric distribution
utility in whose certified territory the governmental
aggregation is located and that operates under an approved
electric security plan under that section. Upon the filing of
that notice, the electric distribution utility shall not charge
any such customer to whom competitive retail electric generation
service is provided by another supplier under the governmental
aggregation for the standby service. Any such consumer that
returns to the utility for competitive retail electric service
shall pay the market price of power incurred by the utility to
serve that consumer plus any amount attributable to the
utility's cost of compliance with the renewable energy resource
provisions of section 4928.64 of the Revised Code to serve the
consumer. Such market price shall include, but not be limited
to, capacity and energy charges; all charges associated with the
provision of that power supply through the regional transmission
organization, including, but not limited to, transmission,
ancillary services, congestion, and settlement and
administrative charges; and all other costs incurred by the
utility that are associated with the procurement, provision, and
administration of that power supply, as such costs may be
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3249 Sub. H. B. No. 15 Page 112
As Passed by the House
approved by the commission. The period of time during which the
market price and renewable energy resource amount shall be so
assessed on the consumer shall be from the time the consumer so
returns to the electric distribution utility until the
expiration of the electric security plan. However, if that
period of time is expected to be more than two years, the
commission may reduce the time period to a period of not less
than two years.
(K) The commission shall adopt rules and issue orders in
proceedings under sections 4928.141 and 4928.142 of the Revised
Code to encourage and promote large-scale governmental
aggregation in this state. For that purpose, the commission
shall conduct an immediate review of any rules it has adopted
for the purpose of this section that are in effect on the
effective date of the amendment of this section by S.B. 221 of
the 127th general assembly, July 31, 2008. Further, within the
context of an electric security plan under section 4928.143 of
the Revised Code, the The commission shall consider the effect
on large-scale governmental aggregation of any nonbypassable
generation charges, however collected, that would be established
under that plan, except any nonbypassable generation charges
that relate to any cost incurred by the review each application
filed under section 4928.142 of the Revised Code by an electric
distribution utility , to ensure that the deferral of which has
been authorized by the commission prior to the effective date of
application and the amendment of this section by S.B. 221 of the
127th general assembly, July 31, 2008 resulting market rate
offer shall not contain any rate, price, term, condition, or
provision that would have an adverse effect on large-scale
governmental aggregation in this state .
Sec. 4928.23. As used in sections 4928.23 to 4928.2318 of
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3280 Sub. H. B. No. 15 Page 113
As Passed by the House
the Revised Code:
(A) "Ancillary agreement" means any bond insurance policy,
letter of credit, reserve account, surety bond, swap
arrangement, hedging arrangement, liquidity or credit support
arrangement, or other similar agreement or arrangement entered
into in connection with the issuance of phase-in-recovery bonds
that is designed to promote the credit quality and marketability
of the bonds or to mitigate the risk of an increase in interest
rates.
(B) "Assignee" means any person or entity to which an
interest in phase-in-recovery property is sold, assigned,
transferred, or conveyed, other than as security, and any
successor to or subsequent assignee of such a person or entity.
(C) "Bond" includes debentures, notes, certificates of
participation, certificates of beneficial interest, certificates
of ownership or other evidences of indebtedness or ownership
that are issued by an electric distribution utility or an
assignee under a final financing order, the proceeds of which
are used directly or indirectly to recover, finance, or
refinance phase-in costs and financing costs, and that are
secured by or payable from revenues from phase-in-recovery
charges.
(D) "Bondholder" means any holder or owner of a phase-in-
recovery bond.
(E) "Financing costs" means any of the following:
(1) Principal, interest, and redemption premiums that are
payable on phase-in-recovery bonds;
(2) Any payment required under an ancillary agreement;
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3308 Sub. H. B. No. 15 Page 114
As Passed by the House
(3) Any amount required to fund or replenish a reserve
account or another account established under any indenture,
ancillary agreement, or other financing document relating to
phase-in-recovery bonds;
(4) Any costs of retiring or refunding any existing debt
and equity securities of an electric distribution utility in
connection with either the issuance of, or the use of proceeds
from, phase-in-recovery bonds;
(5) Any costs incurred by an electric distribution utility
to obtain modifications of or amendments to any indenture,
financing agreement, security agreement, or similar agreement or
instrument relating to any existing secured or unsecured
obligation of the electric distribution utility in connection
with the issuance of phase-in-recovery bonds;
(6) Any costs incurred by an electric distribution utility
to obtain any consent, release, waiver, or approval from any
holder of an obligation described in division (E)(5) of this
section that are necessary to be incurred for the electric
distribution utility to issue or cause the issuance of phase-in-
recovery bonds;
(7) Any taxes, franchise fees, or license fees imposed on
phase-in-recovery revenues;
(8) Any costs related to issuing or servicing phase-in-
recovery bonds or related to obtaining a financing order,
including servicing fees and expenses, trustee fees and
expenses, legal, accounting, or other professional fees and
expenses, administrative fees, placement fees, underwriting
fees, capitalized interest and equity, and rating-agency fees;
(9) Any other similar costs that the public utilities
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3337 Sub. H. B. No. 15 Page 115
As Passed by the House
commission finds appropriate.
(F) "Financing order" means an order issued by the public
utilities commission under section 4928.232 of the Revised Code
that authorizes an electric distribution utility or an assignee
to issue phase-in-recovery bonds and recover phase-in-recovery
charges.
(G) "Final financing order" means a financing order that
has become final and has taken effect as provided in section
4928.233 of the Revised Code.
(H) "Financing party" means either of the following:
(1) Any trustee, collateral agent, or other person acting
for the benefit of any bondholder;
(2) Any party to an ancillary agreement, the rights and
obligations of which relate to or depend upon the existence of
phase-in-recovery property, the enforcement and priority of a
security interest in phase-in-recovery property, the timely
collection and payment of phase-in-recovery revenues, or a
combination of these factors.
(I) "Financing statement" has the same meaning as in
section 1309.102 of the Revised Code.
(J) "Phase-in costs" means costs, inclusive of carrying
charges incurred before, on, or after the effective date of this
section March 22, 2012, authorized by the commission before, on,
or after the effective date of this section March 22, 2012, to
be securitized or deferred as regulatory assets in proceedings
under section 4909.18 of the Revised Code , sections 4928.141 to
4928.143, 4928.142, or 4928.144 of the Revised Code, or section
4928.14 of the Revised Code as it existed prior to July 31,
2008, or section 4928.143 of the Revised Code as it existed
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3366 Sub. H. B. No. 15 Page 116
As Passed by the House
prior to the effective date of the amendments to this section by
this act pursuant to a final order for which appeals have been
exhausted. "Phase-in costs" excludes the following:
(1) With respect to any electric generating facility that,
on and after the effective date of this section March 22, 2012,
is owned, in whole or in part, by an electric distribution
utility applying for a financing order under section 4928.231 of
the Revised Code, costs that are authorized under division (B)
(2)(b) or (c) of section 4928.143 of the Revised Code as that
section existed prior to the effective date of the amendments to
this section by this act ;
(2) Costs incurred after the effective date of this
section March 22, 2012, related to the ongoing operation of an
electric generating facility, but not environmental clean-up or
remediation costs incurred by an electric distribution utility
because of its ownership or operation of an electric generating
facility prior to the effective date of this section March 22,
2012, which such clean-up or remediation costs are imposed or
incurred pursuant to federal or state law , rules, or regulations
and for which the commission approves or approved recovery in
accordance with section 4909.18 of the Revised Code , sections
4928.141 to 4928.143, 4928.142, or 4928.144 of the Revised Code,
or section 4928.14 of the Revised Code as it existed prior to
July 31, 2008, or section 4928.143 of the Revised Code as it
existed prior to the effective date of the amendments to this
section by this act.
(K) "Phase-in-recovery property" means the property,
rights, and interests of an electric distribution utility or an
assignee under a final financing order, including the right to
impose, charge, and collect the phase-in-recovery charges that
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3396 Sub. H. B. No. 15 Page 117
As Passed by the House
shall be used to pay and secure the payment of phase-in-recovery
bonds and financing costs, and including the right to obtain
adjustments to those charges, and any revenues, receipts,
collections, rights to payment, payments, moneys, claims, or
other proceeds arising from the rights and interests created
under the final financing order.
(L) "Phase-in-recovery revenues" means all revenues,
receipts, collections, payments, moneys, claims, or other
proceeds arising from phase-in-recovery property.
(M) "Successor" means, with respect to any entity, another
entity that succeeds by operation of law to the rights and
obligations of the first legal entity pursuant to any
bankruptcy, reorganization, restructuring, or other insolvency
proceeding, any merger, acquisition, or consolidation, or any
sale or transfer of assets, regardless of whether any of these
occur as a result of a restructuring of the electric power
industry or otherwise.
Sec. 4928.231. (A) An electric distribution utility may
apply to the public utilities commission for a financing order
that authorizes the following:
(1) The issuance of phase-in-recovery bonds, in one or
more series, to recover uncollected phase-in costs;
(2) The imposition, charging, and collection of phase-in-
recovery charges, in accordance with the adjustment mechanism
approved by the commission under section 4928.232 of the Revised
Code, and consistent with the commission's authority regarding
governmental aggregation as provided in division (I) of section
4928.20 of the Revised Code, to recover both of the following:
(a) Uncollected phase-in costs;
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3425 Sub. H. B. No. 15 Page 118
As Passed by the House
(b) Financing costs.
(3) The creation of phase-in-recovery property under the
financing order.
(B) The application shall include all of the following:
(1) A description of the uncollected phase-in costs that
the electric distribution utility seeks to recover through the
issuance of phase-in-recovery bonds;
(2) An estimate of the date each series of phase-in-
recovery bonds are expected to be issued;
(3) The expected term during which the phase-in costs
associated with the issuance of each series of phase-in-recovery
bonds are expected to be recovered;
(4) An estimate of the financing costs, as described in
section 4928.23 of the Revised Code, associated with the
issuance of each series of phase-in-recovery bonds;
(5) An estimate of the amount of phase-in-recovery charges
necessary to recover the phase-in costs and financing costs set
forth in the application and the calculation for that estimate,
which calculation shall take into account the estimated date or
dates of issuance and the estimated principal amount of each
series of phase-in-recovery bonds;
(6) For phase-in-recovery charges not subject to
allocation according to an existing order, a proposed
methodology for allocating phase-in-recovery charges among
customer classes, including a proposed methodology for
allocating such charges to governmental aggregation customers
based upon the proportionate benefit determination made under
division (I) of section 4928.20 of the Revised Code;
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3453 Sub. H. B. No. 15 Page 119
As Passed by the House
(7) A description of a proposed adjustment mechanism for
use as described in division (A)(2) of this section;
(8) A description and valuation of how the issuance of the
phase-in-recovery bonds, including financing costs, will both
result in cost savings to customers and mitigate rate impacts to
customers when compared to the use of other financing mechanisms
or cost-recovery methods available to the electric distribution
utility;
(9) Any other information required by the commission.
(C) The electric distribution utility may restate or
incorporate by reference in the application any information
required under division (B)(9) of this section that the electric
distribution utility filed with the commission under section
4909.18 or sections 4928.141 to 4928.144 of the Revised Code or
, section 4928.14 of the Revised Code as it existed prior to
July 31, 2008, or section 4928.143 of the Revised Code as it
existed prior to the amendments to this section by this act .
Sec. 4928.232. (A) Proceedings before the public utilities
commission on an application submitted by an electric
distribution utility under section 4928.231 of the Revised Code
shall be governed by Chapter 4903. of the Revised Code, but only
to the extent that chapter is not inconsistent with this section
or section 4928.233 of the Revised Code. Any party that
participated in the proceeding in which phase-in costs were
approved under section 4909.18 or sections 4928.141 to 4928.144
of the Revised Code or , section 4928.14 of the Revised Code as
it existed prior to July 31, 2008, or section 4928.143 of the
Revised Code as it existed prior to the amendments to this
section by this act shall have standing to participate in
proceedings under sections 4928.23 to 4928.2318 of the Revised
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3483 Sub. H. B. No. 15 Page 120
As Passed by the House
Code.
(B) When reviewing an application for a financing order
pursuant to sections 4928.23 to 4928.2318 of the Revised Code,
the commission may hold such hearings, make such inquiries or
investigations, and examine such witnesses, books, papers,
documents, and contracts as the commission considers proper to
carry out these sections. Within thirty days after the filing of
an application under section 4928.231 of the Revised Code, the
commission shall publish a schedule of the proceeding.
(C)(1) Not later than one hundred thirty-five days after
the date the application is filed, the commission shall issue
either a financing order, granting the application in whole or
with modifications, or an order suspending or rejecting the
application.
(2) If the commission suspends an application for a
financing order, the commission shall notify the electric
distribution utility of the suspension and may direct the
electric distribution utility to provide additional information
as the commission considers necessary to evaluate the
application. Not later than ninety days after the suspension,
the commission shall issue either a financing order, granting
the application in whole or with modifications, or an order
rejecting the application.
(D)(1) The commission shall not issue a financing order
under division (C) of this section unless the commission
determines that the financing order is consistent with section
4928.02 of the Revised Code.
(2) Except as provided in division (D)(1) of this section,
the commission shall issue a financing order under division (C)
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3512 Sub. H. B. No. 15 Page 121
As Passed by the House
of this section if, at the time the financing order is issued,
the commission finds that the issuance of the phase-in-recovery
bonds and the phase-in-recovery charges authorized by the order
results in, consistent with market conditions, both measurably
enhancing cost savings to customers and mitigating rate impacts
to customers as compared with traditional financing mechanisms
or traditional cost-recovery methods available to the electric
distribution utility or, if the commission previously approved a
recovery method, as compared with that recovery method.
(E) The commission shall include all of the following in a
financing order issued under division (C) of this section:
(1) A determination of the maximum amount and a
description of the phase-in costs that may be recovered through
phase-in-recovery bonds issued under the financing order;
(2) A description of phase-in-recovery property, the
creation of which is authorized by the financing order;
(3) A description of the financing costs that may be
recovered through phase-in-recovery charges and the period over
which those costs may be recovered;
(4) For phase-in-recovery charges not subject to
allocation according to an existing order, a description of the
methodology and calculation for allocating phase-in-recovery
charges among customer classes, including the allocation of such
charges, if any, to governmental aggregation customers based
upon the proportionate benefit determination made under division
(I) of section 4928.20 of the Revised Code;
(5) A description of the adjustment mechanism for use in
the imposition, charging, and collection of the phase-in-
recovery charges;
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3541 Sub. H. B. No. 15 Page 122
As Passed by the House
(6) The maximum term of the phase-in-recovery bonds;
(7) Any other provision the commission considers
appropriate to ensure the full and timely imposition, charging,
collection, and adjustment, pursuant to an approved adjustment
mechanism, of the phase-in-recovery charges described in
divisions (E)(3) to (5) of this section.
(F) The commission may, in a financing order, afford the
electric distribution utility flexibility in establishing the
terms and conditions for the phase-in-recovery bonds to
accommodate changes in market conditions, including repayment
schedules, interest rates, financing costs, collateral
requirements, required debt service and other reserves, and the
ability of the electric distribution utility, at its option, to
effect a series of issuances of phase-in-recovery bonds and
correlated assignments, sales, pledges, or other transfers of
phase-in-recovery property. Any changes made under this section
to terms and conditions for the phase-in-recovery bonds shall be
in conformance with the financing order.
(G) A financing order may provide that the creation of
phase-in-recovery property shall be simultaneous with the sale
of that property to an assignee as provided in the application
and the pledge of the property to secure phase-in-recovery
bonds.
(H) The commission shall, in a financing order, require
that after the final terms of each issuance of phase-in-recovery
bonds have been established, and prior to the issuance of those
bonds, the electric distribution utility shall determine the
resulting phase-in-recovery charges in accordance with the
adjustment mechanism described in the financing order. These
phase-in-recovery charges shall be final and effective upon the
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3571 Sub. H. B. No. 15 Page 123
As Passed by the House
issuance of the phase-in-recovery bonds, without further
commission action.
Sec. 4928.34. (A) The public utilities commission shall
not approve or prescribe a transition plan under division (A) or
(B) of section 4928.33 of the Revised Code unless the commission
first makes all of the following determinations:
(1) The unbundled components for the electric transmission
component of retail electric service, as specified in the
utility's rate unbundling plan required by division (A)(1) of
section 4928.31 of the Revised Code, equal the tariff rates
determined by the federal energy regulatory commission that are
in effect on the date of the approval of the transition plan
under sections 4928.31 to 4928.40 of the Revised Code, as each
such rate is determined applicable to each particular customer
class and rate schedule by the commission. The unbundled
transmission component shall include a sliding scale of charges
under division (B) of section 4905.31 of the Revised Code to
ensure that refunds determined or approved by the federal energy
regulatory commission are flowed through to retail electric
customers.
(2) The unbundled components for retail electric
distribution service in the rate unbundling plan equal the
difference between the costs attributable to the utility's
transmission and distribution rates and charges under its
schedule of rates and charges in effect on the effective date of
this section, based upon the record in the most recent rate
proceeding of the utility for which the utility's schedule was
established, and the tariff rates for electric transmission
service determined by the federal energy regulatory commission
as described in division (A)(1) of this section.
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3601 Sub. H. B. No. 15 Page 124
As Passed by the House
(3) All other unbundled components required by the
commission in the rate unbundling plan equal the costs
attributable to the particular service as reflected in the
utility's schedule of rates and charges in effect on the
effective date of this section.
(4) The unbundled components for retail electric
generation service in the rate unbundling plan equal the
residual amount remaining after the determination of the
transmission, distribution, and other unbundled components, and
after any adjustments necessary to reflect the effects of the
amendment of section 5727.111 of the Revised Code by Sub. S.B.
No. 3 of the 123rd general assembly.
(5) All unbundled components in the rate unbundling plan
have been adjusted to reflect any base rate reductions on file
with the commission and as scheduled to be in effect by December
31, 2005, under rate settlements in effect on the effective date
of this section. However, all earnings obligations,
restrictions, or caps imposed on an electric utility in a
commission order prior to the effective date of this section are
void.
(6) Subject to division (A)(5) of this section, the total
of all unbundled components in the rate unbundling plan are
capped and shall equal during the market development period,
except as specifically provided in this chapter, the total of
all rates and charges in effect under the applicable bundled
schedule of the electric utility pursuant to section 4905.30 of
the Revised Code in effect on the day before the effective date
of this section, including the transition charge determined
under section 4928.40 of the Revised Code, adjusted for any
changes in the taxation of electric utilities and retail
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3631 Sub. H. B. No. 15 Page 125
As Passed by the House
electric service under Sub. S.B. No. 3 of the 123rd General
Assembly, the universal service rider authorized by section
4928.51 of the Revised Code, and the temporary rider authorized
by section 4928.61 of the Revised Code. For the purpose of this
division, the rate cap applicable to a customer receiving
electric service pursuant to an arrangement approved by the
commission under section 4905.31 of the Revised Code is, for the
term of the arrangement, the total of all rates and charges in
effect under the arrangement. For any rate schedule filed
pursuant to section 4905.30 of the Revised Code or any
arrangement subject to approval pursuant to section 4905.31 of
the Revised Code, the initial tax-related adjustment to the rate
cap required by this division shall be equal to the rate of
taxation specified in section 5727.81 of the Revised Code and
applicable to the schedule or arrangement. To the extent such
total annual amount of the tax-related adjustment is greater
than or less than the comparable amount of the total annual tax
reduction experienced by the electric utility as a result of the
provisions of Sub. S.B. No. 3 of the 123rd general assembly,
such difference shall be addressed by the commission through
accounting procedures, refunds, or an annual surcharge or credit
to customers, or through other appropriate means, to avoid
placing the financial responsibility for the difference upon the
electric utility or its shareholders. Any adjustments in the
rate of taxation specified in section 5727.81 of the Revised
Code section shall not occur without a corresponding adjustment
to the rate cap for each such rate schedule or arrangement. The
department of taxation shall advise the commission and self-
assessors under section 5727.81 of the Revised Code prior to the
effective date of any change in the rate of taxation specified
under that section, and the commission shall modify the rate cap
to reflect that adjustment so that the rate cap adjustment is
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3663 Sub. H. B. No. 15 Page 126
As Passed by the House
effective as of the effective date of the change in the rate of
taxation. This division shall be applied, to the extent
possible, to eliminate any increase in the price of electricity
for customers that otherwise may occur as a result of
establishing the taxes contemplated in section 5727.81 of the
Revised Code.
(7) The rate unbundling plan complies with any rules
adopted by the commission under division (A) of section 4928.06
of the Revised Code.
(8) The corporate separation plan required by division (A)
(2) of section 4928.31 of the Revised Code complies with section
4928.17 of the Revised Code and any rules adopted by the
commission under division (A) of section 4928.06 of the Revised
Code.
(9) Any plan or plans the commission requires to address
operational support systems and any other technical
implementation issues pertaining to competitive retail electric
service comply with any rules adopted by the commission under
division (A) of section 4928.06 of the Revised Code.
(10) The employee assistance plan required by division (A)
(4) of section 4928.31 of the Revised Code sufficiently provides
severance, retraining, early retirement, retention,
outplacement, and other assistance for the utility's employees
whose employment is affected by electric industry restructuring
under this chapter.
(11) The consumer education plan required under division
(A)(5) of section 4928.31 of the Revised Code complies with
former section 4928.42 of the Revised Code and any rules adopted
by the commission under division (A) of section 4928.06 of the
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3692 Sub. H. B. No. 15 Page 127
As Passed by the House
Revised Code.
(12) The transition revenues for which an electric utility
is authorized a revenue opportunity under sections 4928.31 to
4928.40 of the Revised Code are the allowable transition costs
of the utility as such costs are determined by the commission
pursuant to section 4928.39 of the Revised Code, and the
transition charges for the customer classes and rate schedules
of the utility are the charges determined pursuant to section
4928.40 of the Revised Code.
(13) Any independent transmission plan included in the
transition plan filed under section 4928.31 of the Revised Code
reasonably complies with section 4928.12 of the Revised Code and
any rules adopted by the commission under division (A) of
section 4928.06 of the Revised Code, unless the commission, for
good cause shown, authorizes the utility to defer compliance
until an order is issued under division (G) of section 4928.35
of the Revised Code.
(14) The utility is in compliance with sections 4928.01 to
4928.11 of the Revised Code and any rules or orders of the
commission adopted or issued under those sections.
(15) All unbundled components in the rate unbundling plan
have been adjusted to reflect the elimination of the tax on
gross receipts imposed by section 5727.30 of the Revised Code.
In addition, a transition plan approved by the commission
under section 4928.33 of the Revised Code but not containing an
approved independent transmission plan shall contain the express
conditions that the utility will comply with an order issued
under division (G) of section 4928.35 of the Revised Code.
(B) Subject to division (E) of section 4928.17 of the
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3721 Sub. H. B. No. 15 Page 128
As Passed by the House
Revised Code, if If the commission finds that any part of the
transition plan would constitute an abandonment under sections
4905.20 and 4905.21 of the Revised Code, the commission shall
not approve that part of the transition plan unless it makes the
finding required for approval of an abandonment application
under section 4905.21 of the Revised Code. Sections 4905.20 and
4905.21 of the Revised Code otherwise shall not apply to a
transition plan under sections 4928.31 to 4928.40 of the Revised
Code.
Sec. 4928.542. The winning bid or bids selected through
the competitive procurement process established under section
4928.54 of the Revised Code shall meet all of the following
requirements:
(A) Be designed to provide reliable competitive retail
electric service to percentage of income payment plan program
customers;
(B) Reduce the cost of the percentage of income payment
plan program relative to the otherwise applicable standard
service offer established under sections 4928.141 , and 4928.142,
and 4928.143 of the Revised Code;
(C) Result in the best value for persons paying the
universal service rider under section 4928.52 of the Revised
Code.
Sec. 4928.64. (A)(1) As used in this section, "qualifying
renewable energy resource" means a renewable energy resource, as
defined in section 4928.01 of the Revised Code that:
(a) Has a placed-in-service date on or after January 1,
1998;
(b) Is any run-of-the-river hydroelectric facility that
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3750 Sub. H. B. No. 15 Page 129
As Passed by the House
has an in-service date on or after January 1, 1980;
(c) Is a small hydroelectric facility;
(d) Is created on or after January 1, 1998, by the
modification or retrofit of any facility placed in service prior
to January 1, 1998; or
(e) Is a mercantile customer-sited renewable energy
resource, whether new or existing, that the mercantile customer
commits for integration into the electric distribution utility's
demand-response, energy efficiency, or peak demand reduction
programs as provided under division (A)(2)(c) of section 4928.66
of the Revised Code, including, but not limited to, any of the
following:
(i) A resource that has the effect of improving the
relationship between real and reactive power;
(ii) A resource that makes efficient use of waste heat or
other thermal capabilities owned or controlled by a mercantile
customer;
(iii) Storage technology that allows a mercantile customer
more flexibility to modify its demand or load and usage
characteristics;
(iv) Electric generation equipment owned or controlled by
a mercantile customer that uses a renewable energy resource.
(2) For the purpose of this section and as it considers
appropriate, the public utilities commission may classify any
new technology as such a qualifying renewable energy resource.
(B)(1) By the end of 2026, an electric distribution
utility shall have provided from qualifying renewable energy
resources, including, at its discretion, qualifying renewable
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3778 Sub. H. B. No. 15 Page 130
As Passed by the House
energy resources obtained pursuant to an electricity supply
contract, a portion of the electricity supply required for its
standard service offer under section sections 4928.141 and
4928.142 of the Revised Code, and an electric services company
shall have provided a portion of its electricity supply for
retail consumers in this state from qualifying renewable energy
resources, including, at its discretion, qualifying renewable
energy resources obtained pursuant to an electricity supply
contract. That portion shall equal eight and one-half per cent
of the total number of kilowatt hours of electricity sold by the
subject utility or company to any and all retail electric
consumers whose electric load centers are served by that utility
and are located within the utility's certified territory or, in
the case of an electric services company, are served by the
company and are located within this state. However, nothing in
this section precludes a utility or company from providing a
greater percentage.
(2) Subject to section 4928.642 of the Revised Code, the
The portion required under division (B)(1) of this section shall
be generated from renewable energy resources in accordance with
the following benchmarks:
1 2 3
ABy end of year Renewable energy resources Solar energy resources
B 2009 0.25% 0.004%
C 2010 0.50% 0.010%
D 2011 1% 0.030%
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3800 Sub. H. B. No. 15 Page 131
As Passed by the House
E 2012 1.5% 0.060%
F 2013 2% 0.090%
G 2014 2.5% 0.12%
H 2015 2.5% 0.12%
I 2016 2.5% 0.12%
J 2017 3.5% 0.15%
K 2018 4.5% 0.18%
L 2019 5.5% 0.22%
M 2020 5.5% 0%
N 2021 6% 0%
O 2022 6.5% 0%
P 2023 7% 0%
Q 2024 7.5% 0%
R 2025 8% 0%
S 2026 8.5% 0%
(3) The qualifying renewable energy resources implemented
by the utility or company shall be met either:
(a) Through facilities located in this state; or
(b) With resources that can be shown to be deliverable
into this state.
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3805 Sub. H. B. No. 15 Page 132
As Passed by the House
(C)(1) The commission annually shall review an electric
distribution utility's or electric services company's compliance
with the most recent applicable benchmark under division (B)(2)
of this section and, in the course of that review, shall
identify any undercompliance or noncompliance of the utility or
company that it determines is weather-related, related to
equipment or resource shortages for qualifying renewable energy
resources as applicable, or is otherwise outside the utility's
or company's control.
(2) Subject to the cost cap provisions of division (C)(3)
of this section, if the commission determines, after notice and
opportunity for hearing, and based upon its findings in that
review regarding avoidable undercompliance or noncompliance, but
subject to division (C)(4) of this section, that the utility or
company has failed to comply with any such benchmark, the
commission shall impose a renewable energy compliance payment on
the utility or company.
(a) The compliance payment pertaining to the solar energy
resource benchmarks under division (B)(2) of this section shall
be an amount per megawatt hour of undercompliance or
noncompliance in the period under review, as follows:
(i) Three hundred dollars for 2014, 2015, and 2016;
(ii) Two hundred fifty dollars for 2017 and 2018;
(iii) Two hundred dollars for 2019.
(b) The compliance payment pertaining to the renewable
energy resource benchmarks under division (B)(2) of this section
shall equal the number of additional renewable energy credits
that the electric distribution utility or electric services
company would have needed to comply with the applicable
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3834 Sub. H. B. No. 15 Page 133
As Passed by the House
benchmark in the period under review times an amount that shall
begin at forty-five dollars and shall be adjusted annually by
the commission to reflect any change in the consumer price index
as defined in section 101.27 of the Revised Code , but shall not
be less than forty-five dollars. As used in this division,
"consumer price index" means the consumer price index prepared
by the United States bureau of labor statistics (U.S. city
average for urban wage earners and clerical workers: all items,
1982-1984=100), or, if that index is no longer published, a
generally available comparable index.
(c) The compliance payment shall not be passed through by
the electric distribution utility or electric services company
to consumers. The compliance payment shall be remitted to the
commission, for deposit to the credit of the advanced energy
fund created under section 4928.61 of the Revised Code. Payment
of the compliance payment shall be subject to such collection
and enforcement procedures as apply to the collection of a
forfeiture under sections 4905.55 to 4905.60 and 4905.64 of the
Revised Code.
(3) An electric distribution utility or an electric
services company need not comply with a benchmark under division
(B)(2) of this section to the extent that its reasonably
expected cost of that compliance exceeds its reasonably expected
cost of otherwise producing or acquiring the requisite
electricity by three per cent or more. The cost of compliance
shall be calculated as though any exemption from taxes and
assessments had not been granted under section 5727.75 of the
Revised Code.
(4)(a) An electric distribution utility or electric
services company may request the commission to make a force
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3864 Sub. H. B. No. 15 Page 134
As Passed by the House
majeure determination pursuant to this division regarding all or
part of the utility's or company's compliance with any minimum
benchmark under division (B)(2) of this section during the
period of review occurring pursuant to division (C)(2) of this
section. The commission may require the electric distribution
utility or electric services company to make solicitations for
renewable energy resource credits as part of its default service
before the utility's or company's request of force majeure under
this division can be made.
(b) Within ninety days after the filing of a request by an
electric distribution utility or electric services company under
division (C)(4)(a) of this section, the commission shall
determine if qualifying renewable energy resources are
reasonably available in the marketplace in sufficient quantities
for the utility or company to comply with the subject minimum
benchmark during the review period. In making this
determination, the commission shall consider whether the
electric distribution utility or electric services company has
made a good faith effort to acquire sufficient qualifying
renewable energy or, as applicable, solar energy resources to so
comply, including, but not limited to, by banking or seeking
renewable energy resource credits or by seeking the resources
through long-term contracts. Additionally, the commission shall
consider the availability of qualifying renewable energy or
solar energy resources in this state and other jurisdictions in
the PJM interconnection regional transmission organization,
L.L.C., or its successor and the midcontinent independent system
operator or its successor.
(c) If, pursuant to division (C)(4)(b) of this section,
the commission determines that qualifying renewable energy or
solar energy resources are not reasonably available to permit
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3895 Sub. H. B. No. 15 Page 135
As Passed by the House
the electric distribution utility or electric services company
to comply, during the period of review, with the subject minimum
benchmark prescribed under division (B)(2) of this section, the
commission shall modify that compliance obligation of the
utility or company as it determines appropriate to accommodate
the finding. Commission modification shall not automatically
reduce the obligation for the electric distribution utility's or
electric services company's compliance in subsequent years. If
it modifies the electric distribution utility or electric
services company obligation under division (C)(4)(c) of this
section, the commission may require the utility or company, if
sufficient renewable energy resource credits exist in the
marketplace, to acquire additional renewable energy resource
credits in subsequent years equivalent to the utility's or
company's modified obligation under division (C)(4)(c) of this
section.
(5) The commission shall establish a process to provide
for at least an annual review of the renewable energy resource
market in this state and in the service territories of the
regional transmission organizations that manage transmission
systems located in this state. The commission shall use the
results of this study to identify any needed changes to the
amount of the renewable energy compliance payment specified
under divisions (C)(2)(a) and (b) of this section. Specifically,
the commission may increase the amount to ensure that payment of
compliance payments is not used to achieve compliance with this
section in lieu of actually acquiring or realizing energy
derived from qualifying renewable energy resources. However, if
the commission finds that the amount of the compliance payment
should be otherwise changed, the commission shall present this
finding to the general assembly for legislative enactment.
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3926 Sub. H. B. No. 15 Page 136
As Passed by the House
(D) The commission annually shall submit to the general
assembly in accordance with section 101.68 of the Revised Code a
report describing all of the following:
(1) The compliance of electric distribution utilities and
electric services companies with division (B) of this section;
(2) The average annual cost of renewable energy credits
purchased by utilities and companies for the year covered in the
report;
(3) Any strategy for utility and company compliance or for
encouraging the use of qualifying renewable energy resources in
supplying this state's electricity needs in a manner that
considers available technology, costs, job creation, and
economic impacts.
The commission shall begin providing the information
described in division (D)(2) of this section in each report
submitted after September 10, 2012. The commission shall allow
and consider public comments on the report prior to its
submission to the general assembly. Nothing in the report shall
be binding on any person, including any utility or company for
the purpose of its compliance with any benchmark under division
(B) of this section, or the enforcement of that provision under
division (C) of this section.
(E) All costs incurred by an electric distribution utility
in complying with the requirements of this section shall be
bypassable by any consumer that has exercised choice of supplier
under section 4928.03 of the Revised Code.
Sec. 4928.645. (A) An electric distribution utility or
electric services company may use, for the purpose of complying
with the requirements under divisions (B)(1) and (2) of section
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3955 Sub. H. B. No. 15 Page 137
As Passed by the House
4928.64 of the Revised Code, renewable energy credits any time
in the five calendar years following the date of their purchase
or acquisition from any entity, including, but not limited to,
the following:
(1) A mercantile customer;
(2) An owner or operator of a hydroelectric generating
facility that is located at a dam on a river, or on any water
discharged to a river, that is within or bordering this state or
within or bordering an adjoining state, or that produces power
that can be shown to be deliverable into this state;
(3) A seller of compressed natural gas that has been
produced from biologically derived methane gas, provided that
the seller may only provide renewable energy credits for metered
amounts of gas.
(B)(1) The public utilities commission shall adopt rules
specifying that one unit of credit shall equal one megawatt hour
of electricity derived from renewable energy resources, except
that, for a generating facility of seventy-five megawatts or
greater that is situated within this state and has committed by
December 31, 2009, to modify or retrofit its generating unit or
units to enable the facility to generate principally from
biomass energy by June 30, 2013, each megawatt hour of
electricity generated principally from that biomass energy shall
equal, in units of credit, the product obtained by multiplying
the actual percentage of biomass feedstock heat input used to
generate such megawatt hour by the quotient obtained by dividing
the then existing unit dollar amount used to determine a
renewable energy compliance payment as provided under division
(C)(2)(b) of section 4928.64 of the Revised Code by the then
existing market value of one renewable energy credit, but such
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3985 Sub. H. B. No. 15 Page 138
As Passed by the House
megawatt hour shall not equal less than one unit of credit.
Renewable energy resources do not have to be converted to
electricity in order to be eligible to receive renewable energy
credits. The rules shall specify that, for purposes of
converting the quantity of energy derived from biologically
derived methane gas to an electricity equivalent, one megawatt
hour equals 3,412,142 British thermal units.
(2) The rules also shall provide for this state a system
of registering renewable energy credits by specifying which of
any generally available registries shall be used for that
purpose and not by creating a registry. That selected system of
registering renewable energy credits shall allow a hydroelectric
generating facility to be eligible for obtaining renewable
energy credits and shall allow customer-sited projects or
actions the broadest opportunities to be eligible for obtaining
renewable energy credits.
(C) Beginning January 1, 2020, a qualifying solar resource
as defined in section 3706.40 of the Revised Code is not
eligible to obtain a renewable energy credit under this section
for any megawatt hour for which the resource has been issued a
solar energy credit under section 3706.45 of the Revised Code.
(D) Except for compressed natural gas that has been
produced from biologically derived methane gas, energy generated
by using natural gas as a resource is not eligible to obtain a
renewable energy credit under this section.
Sec. 4928.73. (A) As used in this section:
(1) "Mercantile customer member" means a mercantile
customer connected to a mercantile customer self-power system.
(2) "Mercantile customer self-power system" means one or
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4014 Sub. H. B. No. 15 Page 139
As Passed by the House
more electric generation facilities, electric storage
facilities, or both, along with any associated facilities, that
meet all of the following:
(a) Produce electricity primarily for the consumption of a
mercantile customer member or a group of mercantile customer
members;
(b) Connect directly to the mercantile customer member's
side of the electric meter;
(c) Deliver electricity to the mercantile customer
member's side of the electric meter without the use of an
electric distribution utility's or electric cooperative's
distribution system or transmission system;
(d) Is located on either of the following:
(i) A property owned or controlled by a mercantile
customer member or the entity that owns or operates the
mercantile customer self-power system;
(ii) Land adjacent to a mercantile customer member if the
facilities connect directly with the customer.
(B) The mercantile customer self-power system may be owned
or operated by a mercantile customer member, group of mercantile
customer members, or an entity that is not a mercantile customer
member.
(C) A mercantile customer self-power system may provide
electric generation service to one or more mercantile customers.
(D) The public utilities commission shall adopt rules to
implement this section that are applicable to electric
distribution utilities.
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4041 Sub. H. B. No. 15 Page 140
As Passed by the House
(E) Nothing in this section prohibits an electric
distribution utility or an electric cooperative from charging a
mercantile customer for distribution or transmission service
used by a mercantile customer.
Sec. 4928.83. (A) Not later than May 31, 2026, every
electric distribution utility in the state shall develop and
publicly share distribution system hosting capacity maps. The
utility shall ensure that the maps are available on the
utility's web site and shall be updated at least once per
quarter.
(B) The maps described in division (A) of this section
shall include, at a minimum:
(1) Total available distribution hosting capacity,
expressed in megawatts, for new loads;
(2) Separate hosting capacity availability for distributed
energy resources or a separate distributed energy resource
specific map;
(3) Geographic locations and voltage levels of circuits
and substations;
(4) Total, existing, and queued loads or generation
exceeding one megawatt per circuit and substation;
(5) Available substation and circuit capacity expressed in
megawatts.
(C) The public utilities commission shall hold at least
two stakeholder meetings annually to receive input on map
design, data accuracy, and usability. In addition, the
commission shall establish uniform reporting standards to ensure
consistency across all electric distribution utilities. The
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4069 Sub. H. B. No. 15 Page 141
As Passed by the House
commission may also require utilities to include additional data
points as necessary to improve transparency and planning.
(D) Each electric distribution utility shall publish
annual reliability reports, including the following metrics,
identified per circuit:
(1) The system average interruption frequency index,
representing the average number of interruptions per customer;
(2) The customer average interruption duration index,
representing the average interruption duration or average time
to restore service per interrupted customer;
(3) Customers experiencing multiple interruptions, which
identifies customers experiencing at least five interruptions
annually divided by the total number of customers served;
(4) Customers experiencing long interruption durations,
which identifies customers that experienced outages of one or
more hours in duration divided by the total number of customers
served;
(5) Average outage frequency and duration per circuit and
substation;
(6) Identification of circuits and substations with
persistent reliability issues;
(7) Planned and completed upgrades to enhance grid
reliability.
(E) The commission shall review and publish a statewide
reliability report annually, summarizing trends and recommending
grid modernization measures.
Sec. 4928.86. (A) Each entity that owns or controls
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4096 Sub. H. B. No. 15 Page 142
As Passed by the House
transmission facilities located in this state and is not a
regional transmission organization shall create a heat map that
includes both of the following:
(1) For major transmission lines and substations, the
additional power load the lines and substations can take at the
time that the map is created, accounting for all signed electric
service agreements;
(2) The amount of localized generation that can be hosted
on each transmission line.
(B) If a heat map created under this section is not
critical electric infrastructure information, then the entity
that created the map shall publish the map on the entity's web
site.
Sec. 4929.20. (A)(A)(1) No governmental aggregator as
defined in division (K)(1) of section 4929.01 of the Revised
Code or no retail natural gas supplier shall provide a
competitive retail natural gas service on or after thirteen
months following the effective date of this section June 26,
2001, to a consumer in this state without first being certified
by the public utilities commission regarding its managerial,
technical, and financial capability to provide that service and
providing reasonable financial assurances sufficient to protect
customers and natural gas companies from default. In addition, a
retail natural gas supplier may be required to provide a
performance bond sufficient to protect customers and natural gas
companies from default. Certification shall be granted pursuant
to procedures and standards the commission shall prescribe in
accordance with rules adopted under section 4929.10 of the
Revised Code. However, certification or certification renewal
shall be deemed approved thirty days after the filing of an
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4126 Sub. H. B. No. 15 Page 143
As Passed by the House
application with the commission unless the commission suspends
that approval for good cause shown. In the case of such a
suspension, the commission shall act to approve or deny
certification or certification renewal to the applicant not
later than ninety days after the date of the suspension.
(2) The commission shall establish rules to require a
competitive retail natural gas supplier to maintain financial
assurances sufficient to protect customers and natural gas
companies from default. Such rules also shall specifically allow
a natural gas company to set reasonable standards for its
security and the security of its customers through financial
requirements set in its tariffs.
(3) As used in division (A)(2) of this section, "retail
natural gas supplier" has the same meaning as in section 4929.01
of the Revised Code, but excludes a broker or aggregator.
(B) Capability standards adopted in rules pursuant to
division (A) of this section shall be sufficient to ensure
compliance with section 4929.22 of the Revised Code and with the
minimum service requirements established under section 4929.23
of the Revised Code. The standards shall allow flexibility for
voluntary aggregation, to encourage market creativity in
responding to consumer needs and demands. The rules shall
include procedures for biennially renewing certification.
(C)(1) The commission may suspend, rescind, or
conditionally rescind the certification of any retail natural
gas supplier or governmental aggregator issued under this
section if the commission determines, after reasonable notice
and opportunity for hearing, that the retail natural gas
supplier or governmental aggregator has failed to comply with
any applicable certification standards prescribed in rules
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4156 Sub. H. B. No. 15 Page 144
As Passed by the House
adopted pursuant to this section or section 4929.22 of the
Revised Code.
(2) An affected natural gas company may file an
application with the commission for approval of authority to
recover in accordance with division (C)(2) of this section
incremental costs reasonably and prudently incurred by the
company in connection with the commission's continuation,
suspension, rescission, or conditional rescission of a
particular retail natural gas supplier's certification under
division (C)(1) of this section. Upon the filing of such an
application, the commission shall conduct an audit of such
incremental costs as are specified in the application. Cost
recovery shall be through a rider on the base rates of customers
of the company for which there is a choice of supplier of
commodity sales service as a result of revised schedules
approved under division (C) of section 4929.29 of the Revised
Code, a rule or order adopted or issued by the commission under
Chapter 4905. of the Revised Code, or an exemption granted by
the commission under sections 4929.04 to 4929.08 of the Revised
Code. The rider shall take effect ninety days after the date of
the application's filing unless the commission, based on the
audit results and for good cause shown, sets the matter for
hearing. After the hearing, the commission shall approve the
application, and authorize such cost recovery rider effective on
the date specified in the order, only for such incremental costs
as the commission determines were reasonably and prudently
incurred by the company in connection with the continuation,
suspension, rescission, or conditional rescission of a retail
natural gas supplier's certification under division (C)(1) of
this section. Any proceeding under division (C)(2) of this
section shall be governed by Chapter 4903. of the Revised Code.
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4187 Sub. H. B. No. 15 Page 145
As Passed by the House
(D) No natural gas company, on and after thirteen months
following the effective date of this section June 26, 2001,
shall knowingly distribute natural gas, to a retail consumer in
this state, for any governmental aggregator, as defined in
division (K)(1) of section 4929.01 of the Revised Code, or
retail natural gas supplier, that has not been certified by the
commission pursuant to this section.
(E) Notwithstanding any provision of section 121.95 of the
Revised Code to the contrary, a regulatory restriction contained
in a rule adopted under section 4929.20 of the Revised Code is
not subject to sections 121.95 to 121.953 of the Revised Code.
Sec. 4929.221. (A) If a competitive retail natural gas
service supplier offers a residential customer or non-mercantile
commercial customer a contract for a fixed introductory rate
that converts to a variable rate upon the expiration of the
fixed rate, the supplier shall send two notices to each
residential customer and non-mercantile commercial customer that
enters into such a contract. Each notice shall provide all of
the following information to the customer:
(1) The fixed rate that is expiring under the contract;
(2) The expiration date of the contract's fixed rate;
(3) The public utilities commission web site that, as a
comparison tool, lists rates offered by competitive retail
natural gas service suppliers.
(B) The second notice shall include all the information
required under division (A) of this section and shall also
identify the initial rate to be charged upon the contract's
conversion to a variable rate.
(C) The notices shall be sent by standard United States
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4216 Sub. H. B. No. 15 Page 146
As Passed by the House
mail or electronically with a customer's verifiable consent as
follows:
(1) The supplier shall send the first notice not earlier
than ninety days and not later than sixty days prior to the
expiration of the fixed rate.
(2) The supplier shall send the second notice not earlier
than forty-five days and not later than fifteen days prior to
the expiration of the fixed rate.
(D) A competitive retail natural gas service supplier
shall provide an annual notice, by standard United States mail
or electronically with a customer's verifiable consent, to each
residential customer and non-mercantile commercial customer that
has entered into a contract with the supplier that has converted
to a variable rate upon the expiration of the contract's fixed
introductory rate. The notice shall inform the customer that the
customer is currently subject to a variable rate and that other
fixed rate contracts are available.
(E) Not later than one hundred fifty days after the
effective date of this section, the commission shall adopt rules
in order to implement divisions (A) to (D) of this section. The
rules, at a minimum, shall include the following requirements
regarding the notices required under divisions (A) to (D) of
this section:
(1) To use clear and unambiguous language in order to
enable the customer to make an informed decision;
(2) To design the notices in a way to ensure that they
cannot be confused with marketing materials.
(F) Notwithstanding any provision of section 121.95 of the
Revised Code to the contrary, a regulatory restriction contained
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4245 Sub. H. B. No. 15 Page 147
As Passed by the House
in a rule adopted under section 4929.221 of the Revised Code is
not subject to sections 121.95 to 121.953 of the Revised Code.
Sec. 4929.222. (A) As used in this section, "customer
account information" means a unique natural gas company number
or other customer identification number used by the company to
identify a customer and the customer's account record.
(B) The public utilities commission shall adopt rules to
ensure that a natural gas company processes a customer's change
in competitive retail natural gas supplier by using customer
account information. A customer who consents to a change of
supplier shall not be required to provide customer account
information to the supplier if the customer provides a valid
form of government-issued identification issued to the customer
or a sufficient alternative form of identification that allows
the supplier to establish the customer's identity accurately.
(C) Notwithstanding any provision of section 121.95 of the
Revised Code to the contrary, a regulatory restriction contained
in a rule adopted under this section is not subject to sections
121.95 to 121.953 of the Revised Code.
Sec. 4933.81. As used in sections 4933.81 to 4933.90 of
the Revised Code:
(A) "Electric supplier" means any electric light company
as defined in section 4905.03 of the Revised Code, including
electric light companies organized as nonprofit corporations,
but not including municipal corporations or other units of local
government that provide electric service.
(B) "Adequate facilities" means distribution lines or
facilities having sufficient capacity to meet the maximum
estimated electric service requirements of its existing
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4274 Sub. H. B. No. 15 Page 148
As Passed by the House
customers and of any new customer occurring during the year
following the commencement of permanent electric service, and to
assure all such customers of reasonable continuity and quality
of service. Distribution facilities and lines of an electric
supplier shall be considered "adequate facilities" if such
supplier offers to undertake to make its distribution facilities
and lines meet such service requirements and, in the
determination of the public utilities commission, can do so
within a reasonable time.
(C) "Distribution line" means any electric line that is
being or has been used primarily to provide electric service
directly to electric load centers by the owner of such line.
(D) "Existing distribution line" means any distribution
line of an electric supplier which was in existence on January
1, 1977, or under construction on that date.
(E) "Electric load center" means all the electric-
consuming facilities of any type or character owned, occupied,
controlled, or used by a person at a single location, which
facilities have been, are, or will be connected to and served at
a metered point of delivery and to which electric service has
been, is, or will be rendered.
(F) "Electric service" means retail electric service
furnished to an electric load center for ultimate consumption,
but excludes furnishing electric power or energy at wholesale
for resale. In the case of a for-profit electric supplier and
beginning on the starting date of competitive retail electric
service as defined in section 4928.01 of the Revised Code,
"electric service" also excludes a competitive retail electric
service. , and, starting after the effective date of amendments
to this section by H.B. 15 of the 136th General Assembly,
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4304 Sub. H. B. No. 15 Page 149
As Passed by the House
excludes:
(1) Retail electric service provided to a mercantile
customer member by a mercantile customer self-power system
connected to that mercantile customer member as those terms are
defined in section 4928.73 of the Revised Code;
(2) Retail electric service provided to an electric load
center to the extent the center is acting as a self-generator as
defined in section 4928.01 of the Revised Code.
In the case of a not-for-profit electric supplier and
beginning on that competitive retail electric service starting
date, "electric service" also excludes any service component of
competitive retail electric service that is specified in an
irrevocable filing the electric supplier makes with the public
utilities commission for informational purposes only to
eliminate permanently its certified territory under sections
4933.81 to 4933.90 of the Revised Code as to that service
component and further excludes for any new electric load centers
going into service after the effective date of amendments to
this section by H.B. 15 of the 136th general assembly retail
electric service described in divisions (F)(1) and (2) of this
section. The filing shall specify the date on which such
territory is so eliminated. Notwithstanding division (B) of
section 4928.01 of the Revised Code, such a service component
may include retail ancillary, metering, or billing and
collection service irrespective of whether that service
component has or has not been declared competitive under section
4928.04 of the Revised Code. Upon receipt of the filing by the
commission, the not-for-profit electric supplier's certified
territory shall be eliminated permanently as to the service
component specified in the filing as of the date specified in
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4334 Sub. H. B. No. 15 Page 150
As Passed by the House
the filing. As used in this division, "competitive retail
electric service" and "retail electric service" have the same
meanings as in section 4928.01 of the Revised Code.
(G) "Certified territory" means a geographical area the
boundaries of which have been established pursuant to sections
4933.81 to 4933.90 of the Revised Code within which an electric
supplier is authorized and required to provide electric service.
(H) "Other unit of local government" means any
governmental unit or body that may come into existence after
July 12, 1978, with powers and authority similar to those of a
municipal corporation, or that is created to replace or exercise
the relevant powers of any one or more municipal corporations.
Sec. 4934.01. As used in this chapter:
(A) "Bill credit" means the monetary value approved or
revised under section 4934.08 or 4934.09 of the Revised Code by
the public utilities commission for each kilowatt hour of
electricity generated by a community energy facility.
(B) "Certified territory," "electric distribution
utility," and "energy storage" have the same meanings as in
section 4928.01 of the Revised Code.
(C) "Commercial or public sector rooftop" means either of
the following that is located within an electric distribution
utility's certified territory:
(1) The roof of a building located on commercial real
estate as defined in section 1311.85 of the Revised Code;
(2) Any property owned by a public authority as defined in
section 1311.25 of the Revised Code.
(D) "Community energy facility" means a single facility
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4362 Sub. H. B. No. 15 Page 151
As Passed by the House
that does the following:
(1) Generates electricity by means of a solar photovoltaic
device or uses as its fuel either solar, wind, biomass, landfill
gas, or hydroelectric power, or uses a microturbine, natural
gas-fired generator, energy storage system, or a fuel cell;
(2) Meets all of the following requirements:
(a) The facility is located in this state and is directly
connected to an electric distribution utility's distribution
system.
(b) The facility has at least three subscribers.
(c) The facility is located on one parcel of land and,
except as provided in section 4934.011 of the Revised Code,
there is no community energy facility on the same or a
contiguous parcel that is developed, owned, or operated by the
same entity, affiliated entity, or entity under common control.
(d) No subscriber holds more than a forty per cent
proportional interest in the output of the system, which shall
be measured as the sum total of all meters on the subscriber's
property.
(e) Not less than sixty per cent of the facility capacity
shall be subscribed by subscriptions of forty kilowatts or less
based on the average annual demand for the prior twelve-month
period. For purposes of this division, a multi-unit building
served by a single meter shall be considered a single customer
provided the average usage, based on the number of units, is
forty kilowatts or less.
(f) The facility has a nameplate capacity of ten or less
megawatts, or twenty or less megawatts if the facility is on a
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4390 Sub. H. B. No. 15 Page 152
As Passed by the House
distressed site or one or more commercial or public sector
rooftops, as measured at the point of interconnection.
(g) The facility is not under the control of an electric
distribution utility, but may be under the control of an
affiliate of the utility.
(3)(a) If the facility uses either an energy storage
system or natural gas-fired generator, then the energy storage
system or generator is not sized so as to exceed the size of any
co-located facility using solar, wind, biomass, landfill gas, or
hydroelectric power as its fuel.
(b) If the system uses both an energy storage system and
natural gas-fired generator, then the combined nameplate
capacity of the storage system and generator is not sized so as
to exceed the size of any co-located facility using solar, wind,
biomass, landfill gas, or hydroelectric power as its fuel.
(E) "Community energy organization" means a for-profit or
nonprofit entity that operates one or more community energy
facilities.
(F) "Distressed site" means a site made up of one or more
parcels of land, located within an electric distribution
utility's certified territory where the majority of the acreage
is at least one or more of the following:
(1) A brownfield as defined in section 122.6511 of the
Revised Code;
(2) A parcel that is within an area where an investor may
receive a new markets tax credit under section 45D of the
Internal Revenue Code;
(3) A solid waste facility licensed by the environmental
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4418 Sub. H. B. No. 15 Page 153
As Passed by the House
protection agency under section 3734.02 of the Revised Code;
(4) A parcel of land that is described by division (b)(11)
(B)(iii) of section 45 of the Internal Revenue Code;
(5) Land or structure owned by a metropolitan housing
authority, as described in section 3735.27 of the Revised Code;
(6) Land owned by a county land reutilization corporation
as defined in section 1724.01 of the Revised Code.
(G) "Large industrial customer" means any manufacturer
that uses electricity primarily in a process involving a change
of raw or unfinished materials into another form or product, and
that takes service from an electric distribution utility at
primary voltage, subtransmission voltage, or transmission
voltage.
(H) "Net crediting" means a program offered by an electric
distribution utility under which the electric utility does the
following:
(1) Issues a customer, who is a subscriber, a consolidated
electric bill that includes on the customer's monthly bill the
electric utility charges for electric service, the community
energy subscription charge, and any bill credit;
(2) Remits the customer's subscription fee to the owner or
operator of the community energy organization to which the
customer subscribes.
(I) "Non-ministerial permit" means all necessary and
discretionary governmental permits and approvals to construct a
community energy facility notwithstanding any pending legal
challenge to one or more permits or approvals.
(J) "Subscriber" means any retail electric customer who
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4446 Sub. H. B. No. 15 Page 154
As Passed by the House
meets all of the following:
(1) The customer has a single unique tax identification
number;
(2) The customer has an electric meter on the customer's
property;
(3) The customer resides within the certified territory of
an electric distribution utility;
(4) The customer contracts for a subscription from a
community energy facility located in the same certified
territory as the customer;
(5) The customer is not a large industrial customer or a
mercantile customer as defined in section 4928.01 of the Revised
Code.
(K) "Subscription" means the right to obtain from a
community energy organization an allocation of bill credits for
electricity generated by a community energy facility.
(L) "Unsubscribed electricity" means any electricity
generated by a community energy facility that is not
attributable to a subscription.
Sec. 4934.011. A community energy facility may be placed
on the same parcel or a contiguous parcel of land as a community
energy facility that is developed, owned, or operated by the
same entity, affiliated entity, or entity under common control
if at least one of the following is met:
(A) The parcel or parcels of land are a distressed site or
the facility is on one or more commercial or public sector
rooftops, and the total capacity of all community energy
facilities on the parcel or parcels does not exceed twenty
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4474 Sub. H. B. No. 15 Page 155
As Passed by the House
megawatts.
(B) All of the following are satisfied:
(1) The community energy facility is to be located on a
parcel of land, or multiple parcels of land, that were created
prior to the effective date of this section.
(2) The total capacity of all community energy facilities
on the parcel or parcels of land does not exceed ten megawatts.
(3) Each community energy facility has its own distinct
point of interconnection with the serving electric distribution
utility, including separate and distinct metering and the
ability to be directly connected to or disconnected from the
utility.
(4) The generation components of each community energy
facility are separate, including separate fencing, and not
connected with neighboring facilities other than by the
utility's distribution system.
(5) Each community energy facility shares only non-
operational infrastructure, including access roads, utility
poles, and other features necessary to provide utility and
physical access to each facility.
Sec. 4934.04. The public utilities commission shall
establish a community energy pilot program, as described in
sections 4934.05 to 4934.14 and 4934.25 to 4934.27 of the
Revised Code, consisting of one thousand five hundred megawatts
to be implemented throughout this state.
Sec. 4934.05. (A) The public utilities commission shall
annually certify two hundred fifty megawatts of community energy
facilities, based on nameplate capacity, until one thousand
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4502 Sub. H. B. No. 15 Page 156
As Passed by the House
megawatts from such facilities are certified.
(B) All megawatts certified pursuant to this section shall
be allocated proportionally based on the size of each utility's
retail electric sales published by the energy information
administration.
(C) Any uncertified megawatts for a year carry over to the
subsequent year until all available megawatts are certified.
(D) All megawatts certified pursuant to this section shall
be certified in the order that the certification applications
were received.
(E) If applications for certification exceed the total
capacity available for the year, then the applications shall be
placed on a wait list as determined by the commission. Once
certification of one thousand megawatts for community energy
facilities has occurred, the wait list shall be eliminated.
(F) The commission shall ensure that certification under
this section is separate from a certification process required
under sections 4928.64 to 4928.645 of the Revised Code, or any
related rules in the Ohio Administrative Code.
Sec. 4934.06. (A) The public utilities commission shall
certify five hundred megawatts of community energy facilities,
in addition to the megawatts certified under section 4934.05 of
the Revised Code, which shall be reserved for community energy
facilities constructed exclusively on distressed sites or one or
more commercial or public sector rooftops.
(B) The commission shall ensure that certification under
this section is separate from a certification process required
under sections 4928.64 to 4928.645 of the Revised Code, or any
related rules in the Administrative Code.
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4531 Sub. H. B. No. 15 Page 157
As Passed by the House
(C) After all megawatts are certified pursuant to this
section, a community energy facility on a distressed site or a
commercial or public sector rooftop may be certified from the
megawatts allocated under section 4934.05 of the Revised Code.
Sec. 4934.07. (A) An electric distribution utility with a
community energy facility in its certified territory shall
allocate bill credits for all electricity generated by the
facility that is attributable to a subscription.
(B)(1) A community energy organization may account for
unsubscribed electricity on a monthly basis and accumulate bill
credits for the unsubscribed electricity for a period of up to
twelve months after it was generated.
(2) Bill credits for unsubscribed electricity accumulated
under division (B)(1) of this section shall be allocated to
future subscribers at the direction of the community energy
organization.
(C) At least once annually, a community energy
organization shall furnish to the electric distribution utility
in whose certified territory the community energy facility is
located an allocation for distribution of bill credits to
subscribers for unsubscribed electricity.
(D) A community energy organization shall forfeit, to the
electric distribution utility in whose certified territory the
community energy facility is located, any bill credits for
unsubscribed electricity that are not allocated pursuant to
division (B) of this section.
Sec. 4934.071. (A) As used in this section:
(1) "Regional governmental aggregator" means a regional
council of governments established under Chapter 167. of the
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4560 Sub. H. B. No. 15 Page 158
As Passed by the House
Revised Code with members in at least seventeen counties that is
also a governmental aggregator under section 4928.20 of the
Revised Code.
(2) "Renewable attributes" means any of the following that
are attributable to a community energy facility or the
electricity generated by a facility provided by the federal or
state government or any other legislative authority of a
political subdivision in the state:
(a) Any credits, certificates, benefits, or offsets and
allowances computed on the basis of a community energy
facility's displacement of fossil fuel-derived, or other
conventional, electric generation;
(b) Any renewable energy credits or any other
environmental certificates issued or administered in connection
with electricity generated from a community energy facility;
(c) Any voluntary emission reduction credits obtained, or
obtainable, in connection with the electric generation from a
community energy facility.
(B) A regional governmental aggregator may purchase any
amount of renewable attributes from a community energy facility.
Sec. 4934.072. (A) No large industrial customer or
mercantile customer, as defined in section 4928.01 of the
Revised Code, shall participate in the community energy pilot
program or be charged, directly or indirectly, for any costs
related to the community energy pilot program.
(B) Residential and commercial customers who do not
participate in the community energy pilot program shall not be
charged, directly or indirectly, for any costs related to the
community energy pilot program.
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4589 Sub. H. B. No. 15 Page 159
As Passed by the House
Sec. 4934.08. (A) As used in this section, "retail rate"
means all costs of providing generation service, transmission
service, and distribution service that may be charged by an
electric distribution utility.
(B) A subscriber to a community energy facility shall be
eligible for a bill credit from the subscriber's electric
distribution utility for the proportional output of a community
energy facility attributable to the subscriber.
(C) The public utilities commission shall establish the
bill credit for each subscriber, subject to division (D) of this
section, that is equal to the utility's retail rate on a per-
customer class basis, minus only the utility's base charge for
distribution service approved under Chapter 4909. of the Revised
Code and the utility's distribution riders or other distribution
charges approved under Chapter 4928. of the Revised Code.
(D) When determining the bill credit for each utility, the
commission shall take into account all of the following:
(1) The costs and benefits provided by community energy
facilities participating in the community energy pilot program;
(2) All proposed rules, fees, and charges;
(3) Any other item that the commission determines is
necessary.
Sec. 4934.09. The public utilities commission shall
approve a tariff based on the revised bill credit rate not later
than twelve months after the report under section 4934.37 of the
Revised Code is submitted.
Sec. 4934.10. Any bill credit exceeding a subscriber's
monthly bill amount shall carry forward until fully allocated to
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4617 Sub. H. B. No. 15 Page 160
As Passed by the House
the subscriber's bill or until the termination of the
subscriber's community energy organization subscription.
Sec. 4934.11. No subscriber may obtain a subscription for
electricity generated by a community energy facility
representing more than one hundred per cent of the subscriber's
average annual electricity usage.
Sec. 4934.12. A subscription shall be considered one of
the following:
(A) A consumer transaction subject to Chapter 1345. of the
Revised Code regarding the enrollment of residential subscribers
to obtain an allocation of bill credits;
(B) Goods subject to Chapter 1302. of the Revised Code
regarding the enrollment of nonresidential subscribers to obtain
an allocation of bill credits.
Sec. 4934.13. An electric distribution utility shall
interconnect a community energy facility that is in that
utility's certified territory to its distribution system within
a reasonable time after the facility is constructed and shall
ensure such interconnections are made efficiently, safely, and
in compliance with any applicable federal and state regulations
and standards.
Sec. 4934.14. An electric distribution utility shall not
discriminate against community energy facilities or their
subscribers, which includes adding extraordinary fees and
charges not applied to similar facilities.
Sec. 4934.17. (A) An electric distribution utility may
establish a net crediting program under which the electric
distribution utility shall enter into a net crediting agreement
with a community energy organization. The terms of an agreement
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4646 Sub. H. B. No. 15 Page 161
As Passed by the House
shall specify that authorization by or on behalf of a subscriber
is required before a subscriber may be billed by the electric
distribution utility under the program. An agreement also shall
specify the terms for payments made by the electric distribution
utility to the community energy organization, which terms may
include a net crediting fee of not more than one per cent of the
subscription fee to be deducted from the electric distribution
utility's payment to the community energy organization.
(B) Under a net crediting agreement, an electric
distribution utility shall do the following:
(1) Remit, through an electronic funds transfer, the cash
value of the subscriber's subscription fee, less any net
crediting fee, to the community energy organization not later
than thirty days after the billing period;
(2) Issue electric distribution utility customers who are
subscribers an itemized monthly bill that includes, in addition
to charges described in division (B)(4) of this section, the
subscriber's bill credit for the billing period and the
subscriber's subscription fee;
(3) Process monthly bills for subscribers who participate
in low-income customer assistance programs or budget billing
programs in the same manner as bills for customers who are not
participating in such programs;
(4) Bill for all basic electric services, including
transmission, distribution, and generation charges, consistent
with this section and commission regulations.
Sec. 4934.18. An electric distribution utility that enters
into a net crediting agreement with a community energy
organization shall prioritize payments from a customer who is a
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4675 Sub. H. B. No. 15 Page 162
As Passed by the House
subscriber for each billing period according to this section.
Past due subscriber fees owed to a community energy organization
shall be paid prior to payments to the electric distribution
utility for any arrearages on the customer's electric service
bill. The electric distribution utility shall not apply a
customer's bill credit to a customer's outstanding balance for
electric service for the billing period.
Sec. 4934.20. A nonresidential customer that subscribes to
multiple community energy facilities may participate in the net
crediting program only if each facility is included in a net
crediting agreement under sections 4934.17 to 4934.23 of the
Revised Code.
Sec. 4934.21. The minimum service requirements established
under section 4928.10 of the Revised Code apply to sections
4934.17 to 4934.23 of the Revised Code.
Sec. 4934.23. The public utilities commission shall adopt
rules to implement net crediting programs authorized under
sections 4934.17 to 4934.23 of the Revised Code.
Sec. 4934.25. (A) A community energy organization that
constructs a community energy facility on a distressed site that
is a brownfield, as defined in section 122.6511 of the Revised
Code, shall be eligible to receive a grant awarded by the
department of development from the brownfield remediation
program under section 122.6511 of the Revised Code for costs
associated with construction and remediation.
(B) The department of development shall promulgate rules
for awarding grants described in this section.
Sec. 4934.26. (A) The public utilities commission shall
convene and facilitate an ongoing stakeholder working group to
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4704 Sub. H. B. No. 15 Page 163
As Passed by the House
assist commission staff with effectively and efficiently
promulgating rules for the community energy pilot program.
(B) The working group shall consist of the following:
(1) Electric distribution utilities;
(2) Consumer advocates;
(3) Community energy industry representatives;
(4) Other interested parties.
Sec. 4934.27. Not later than six months after the
effective date of this section, the public utilities commission,
with assistance from the working group established by section
4934.26 of the Revised Code shall promulgate rules to implement
the community energy program, which shall include rules for the
creation and establishment of community energy facilities, and
the following:
(A) The certification of community energy facilities,
which shall include rules for the commission to approve or deny
each facility application within ninety days, unless good cause
is shown for not meeting the deadline, as determined by the
commission;
(B) Prohibit removing a subscriber from the subscriber's
applicable customer class because of the subscriber's
subscription to a community energy facility;
(C) Reasonably allow for the transfer and portability of
subscriptions, including allowing a subscriber to retain a
subscription to a facility if the subscriber moves within the
same electric distribution utility's service territory;
(D) Modify existing interconnection standards, fees, and
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4731 Sub. H. B. No. 15 Page 164
As Passed by the House
processes as needed to facilitate the efficient and cost-
effective interconnection of community energy facilities that
allow an electric distribution utility to recover reasonable
interconnection costs for each facility;
(E) Require each electric distribution utility to
efficiently connect a community energy facility to its
electrical distribution grid and not to discriminate against
facilities or subscribers;
(F) Provide for consumer protection in accordance with
existing laws and regulations, including any protections against
disconnection of service;
(G) Establish robust consumer protections for subscribers,
including at least the following:
(1) A standardized customer disclosure form for
residential subscribers;
(2) Prohibiting upfront sign-on fees or credit checks;
(3) Preventing early termination charges to any subscriber
who unsubscribes.
(H) Allow an electric distribution utility to recover
reasonable costs associated with administering the community
energy pilot program;
(I) Ensure that costs associated with the community energy
pilot program only be recovered from customer classes
participating in the program and that no cross-subsidization of
costs between customer classes occurs;
(J) Ensure facilities qualifying for the community energy
pilot program have a signed interconnection agreement or a
system impact study, as determined by the commission, can
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4759 Sub. H. B. No. 15 Page 165
As Passed by the House
demonstrate site control, and have received all applicable non-
ministerial permits;
(K) Require each community energy organization to send a
notice in a standardized format containing information related
to subscriber enrollment to the electric distribution utility
that services the area where the organization's community energy
facility is sited;
(L) Not later than nine months after the effective date of
this section, require each electric distribution utility to
publish new tariffs or update existing tariffs to implement the
community energy pilot program;
(M) Require a community energy organization to be
responsible for the decommissioning of a community energy
facility pursuant to sections 4934.35 and 4934.36 of the Revised
Code.
Sec. 4934.35. (A) Not later than eighteen months after a
community energy facility has ceased generating electricity, a
community energy organization shall commence decommissioning of
the facility.
(B) The decommissioning described in division (A) of this
section shall include the following, to be mutually agreed to in
writing by the property owner or owners and the organization:
(1) The removal, and potential reuse and recycling, of
solar panels and other community energy equipment, and the
remediation of the site;
(2) The removal of all non-utility-owned equipment,
graveled areas, and access roads;
(3) The replacement of any topsoil that was removed for
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4787 Sub. H. B. No. 15 Page 166
As Passed by the House
the construction of the facility and reseeding of the cleared
area.
(C) Not more than twenty per cent of the total combined
mass of the community energy facility may enter a landfill.
Sec. 4934.36. (A) A community energy organization shall
maintain sufficient financial assurances, in the form of a bond,
through the life of a community energy facility's operation to
provide for decommissioning as described in section 4934.35 of
the Revised Code.
(B) The amount of the bond shall be calculated by a third-
party professional engineer obtained by the organization. Every
five years from the date of the initial assessment, the bond
amount shall be recalculated in the same manner.
(C) The board of county commissioners where the project is
located shall be the obligee of the bond.
Sec. 4934.37. (A) The public utilities commission shall
conduct reviews of the community energy pilot program forty-
eight months after the rules for the program have been
promulgated and submit a report to the general assembly with the
following information:
(1) The number and location of operating community energy
facilities;
(2) The amount of nameplate capacity certified;
(3) The number of subscribers, how much energy was
subscribed to by those subscribers, and the types of customer
classes that subscribed;
(4) Whether savings were achieved by the subscribers.
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4814 Sub. H. B. No. 15 Page 167
As Passed by the House
(B) The commission shall promulgate rules to require
community energy organizations and electric distribution
utilities to provide the commission with a report containing the
relevant information described in division (A) of this section.
Sec. 4934.38. Notwithstanding any provision of section
121.95 of the Revised Code to the contrary, a regulatory
restriction contained in a rule adopted under sections 4934.23,
4934.25, 4934.27, and 4934.37 of the Revised Code is not subject
to sections 121.95 to 121.953 of the Revised Code.
Sec. 4935.04. (A) As used in this chapter:
(1) "Major utility facility" means:
(a) An electric transmission line and associated
facilities of a design capacity of one hundred twenty-five
kilovolts or more;
(b) A gas or natural gas transmission line and associated
facilities designed for, or capable of, transporting gas or
natural gas at pressures in excess of one hundred twenty-five
pounds per square inch.
"Major utility facility" does not include electric, gas,
or natural gas distributing lines and gas or natural gas
gathering lines and associated facilities as defined by the
public utilities commission; facilities owned or operated by
industrial firms, persons, or institutions that produce or
transmit gas or natural gas, or electricity primarily for their
own use or as a byproduct of their operations; gas or natural
gas transmission lines and associated facilities over which an
agency of the United States has certificate jurisdiction;
facilities owned or operated by a person furnishing gas or
natural gas directly to fifteen thousand or fewer customers
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4843 Sub. H. B. No. 15 Page 168
As Passed by the House
within this state.
(2) "Person" has the meaning set forth in section 4906.01
of the Revised Code.
(3) "Advanced transmission technologies" has the same
meaning as in section 4906.01 of the Revised Code.
(B) Each person owning or operating a gas or natural gas
transmission line and associated facilities within this state
over which an agency of the United States has certificate
jurisdiction shall furnish to the commission a copy of the
energy information filed by the person with that agency of the
United States.
(C) Each person owning or operating a major utility
facility within this state, or furnishing gas, natural gas, or
electricity directly to more than fifteen thousand customers
within this state shall furnish a report to the commission for
its review. The report shall be furnished annually, except that
for a gas or natural gas company the report shall be furnished
every three years. The report shall be termed the long-term
forecast report and shall contain:
(1) A year-by-year, ten-year forecast of annual energy
demand, peak load, reserves, and a general description of the
resource planning projections to meet demand;
(2) A range of projected loads during the period;
(3) A description of major utility facilities planned to
be added or taken out of service in the next ten years,
including, to the extent the information is available,
prospective sites for transmission line locations;
(4) For gas and natural gas, a projection of anticipated
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4871 Sub. H. B. No. 15 Page 169
As Passed by the House
supply, supply prices, and sources of supply over the forecast
period;
(5) A description of proposed changes in the transmission
system planned for the next five years;
(6) A month-by-month forecast of both energy demand and
peak load for electric utilities, and gas sendout for gas and
natural gas utilities, for the next two years. The report shall
describe the major utility facilities that, in the judgment of
such person, will be required to supply system demands during
the forecast period. The report from a gas or natural gas
utility shall cover the ten- and five-year periods next
succeeding the date of the report, and the report from an
electric utility shall cover the twenty-, ten-, and five-year
periods next succeeding the date of the report. Each report
shall be made available to the public and furnished upon request
to municipal corporations and governmental agencies charged with
the duty of protecting the environment or of planning land use.
The report shall be in such form and shall contain such
information as may be prescribed by the commission.
Each person not owning or operating a major utility
facility within this state and serving fifteen thousand or fewer
gas or natural gas, or electric customers within this state
shall furnish such information as the commission requires.
(7) For electric transmission, a person shall include an
evaluation and report of the potential use of, or investment in,
one or more advanced transmission technologies to enable the
electric utility to safely, reliably, efficiently, and cost-
effectively meet electric system demand through its major
utility facilities.
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4900 Sub. H. B. No. 15 Page 170
As Passed by the House
The report shall identify which advanced transmission
technologies were considered as a part of the review of the
major utility facilities for the next five years. A person shall
also include a cost evaluation comparing costs of traditional
transmission investments and costs of advanced transmission
technologies for the projects considered on the major utility
facilities applied individually, together, or in sequence. The
report shall also include an advanced transmission technology
congestion mitigation study to cost-effectively maximize the
delivery of energy resources in the near term that:
(a) Identifies locations on the entity's transmission
system where congestion has occurred for a total of fifty hours
per year or more during the last three years or is likely to
occur during the next five years, including due to planned
transmission outages or other factors;
(b) Estimates the frequency of congestion at each location
and the increased cost to ratepayers resulting from the
substitution of higher-priced electricity;
(c) Evaluates the technical feasibility and estimates the
cost of installing one or more advanced transmission
technologies to address each instance of grid congestion
identified in division (C)(7)(a) of this section and projects
the grid-enhancing technology's efficacy in reducing congestion;
(d) Analyzes the cost-effectiveness of installing grid-
enhancing technologies to address each instance of congestion
identified in division (C)(7)(a) of this section by using the
information developed in division (C)(7)(c) of this section to
calculate the payback period of each installation, using a
methodology developed by the commission;
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4929 Sub. H. B. No. 15 Page 171
As Passed by the House
(e) Proposes an implementation plan, including a schedule
and cost estimate, to install grid-enhancing technologies at
each congestion point at which the payback period is less than
or equal to a value determined by the commission, in order to
maximize transmission system capacity, and explains the entity's
current line rating methodology.
(D) The commission shall:
(1) Review and comment on the reports filed under division
(C) of this section, and make the information contained in the
reports readily available to the public and other interested
government agencies;
(2) Compile and publish each year the general locations of
proposed and existing transmission line routes within its
jurisdiction as identified in the reports filed under division
(C) of this section, identifying the general location of such
sites and routes and the approximate year when construction is
expected to commence, and to make such information readily
available to the public, to each newspaper of daily or weekly
circulation within the area affected by the proposed site and
route, and to interested federal, state, and local agencies;
(3) Hold a public hearing upon the showing of good cause
to the commission by an interested party.
If a hearing is held, the commission shall fix a time for
the hearing, which shall be not later than ninety days after the
report is filed, and publish notice of the date, time of day,
and location of the hearing in a newspaper of general
circulation in each county in which the person furnishing the
report has or intends to locate a major utility facility and
will provide service during the period covered by the report.
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4958 Sub. H. B. No. 15 Page 172
As Passed by the House
The notice shall be published not less than fifteen nor more
than thirty days before the hearing and shall state the matters
to be considered.
(4) Require such information from persons subject to its
jurisdiction as necessary to assist in the conduct of hearings
and any investigation or studies it may undertake;
(5) Conduct any studies or investigations that are
necessary or appropriate to carry out its responsibilities under
this section.
(6) Review and evaluate that advanced transmission
technologies were properly reported in accordance with division
(C)(7) of this section and allow stakeholders to provide
comments.
(7) Approve advanced transmission technology congestion
mitigation implementation plans, including cost recovery.
(E)(1) The scope of the hearing held under division (D)(3)
of this section shall be limited to issues relating to
forecasting. The power siting board, the office of consumers'
counsel, and all other persons having an interest in the
proceedings shall be afforded the opportunity to be heard and to
be represented by counsel. The commission may adjourn the
hearing from time to time.
(2) The hearing shall include, but not be limited to, a
review of:
(a) The projected loads and energy requirements for each
year of the period;
(b) The estimated installed capacity and supplies to meet
the projected load requirements.
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4986 Sub. H. B. No. 15 Page 173
As Passed by the House
(F) Based upon the report furnished pursuant to division
(C) of this section and the hearing record, the commission,
within ninety days from the close of the record in the hearing,
shall determine if:
(1) All information relating to current activities,
facilities agreements, and published energy policies of the
state has been completely and accurately represented;
(2) The load requirements are based on substantially
accurate historical information and adequate methodology;
(3) The forecasting methods consider the relationships
between price and energy consumption;
(4) The report identifies and projects reductions in
energy demands due to energy conservation measures in the
industrial, commercial, residential, transportation, and energy
production sectors in the service area;
(5) Utility company forecasts of loads and resources are
reasonable in relation to population growth estimates made by
state and federal agencies, transportation, and economic
development plans and forecasts, and make recommendations where
possible for necessary and reasonable alternatives to meet
forecasted electric power demand;
(6) The report considers plans for expansion of the
regional power grid and the planned facilities of other
utilities in the state;
(7) All assumptions made in the forecast are reasonable
and adequately documented.
(G) The commission shall adopt rules under section 111.15
of the Revised Code to establish criteria for evaluating the
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5014 Sub. H. B. No. 15 Page 174
As Passed by the House
long-term forecasts of needs for gas and electric transmission
service, to conduct hearings held under this section, to
establish reasonable fees to defray the direct cost of the
hearings and the review process, and such other rules as are
necessary and convenient to implement this section.
(H) The hearing record produced under this section and the
determinations of the commission shall be introduced into
evidence and shall be considered in determining the basis of
need for power siting board deliberations under division (A)(1)
of section 4906.10 of the Revised Code. The hearing record
produced under this section shall be introduced into evidence
and shall be considered by the commission in its initiation of
programs, examinations, and findings under section 4905.70 of
the Revised Code, and shall be considered in the commission's
determinations with respect to the establishment of just and
reasonable rates under section 4909.15 of the Revised Code and
financing utility facilities and authorizing issuance of all
securities under sections 4905.40, 4905.401, 4905.41, and
4905.42 of the Revised Code. The forecast findings also shall
serve as the basis for all other energy planning and development
activities of the state government where electric and gas data
are required.
(I)(1) No court other than the supreme court shall have
power to review, suspend, or delay any determination made by the
commission under this section, or enjoin, restrain, or interfere
with the commission in the performance of official duties. A
writ of mandamus shall not be issued against the commission by
any court other than the supreme court.
(2) A final determination made by the commission shall be
reversed, vacated, or modified by the supreme court on appeal,
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5044 Sub. H. B. No. 15 Page 175
As Passed by the House
if, upon consideration of the record, such court is of the
opinion that such determination was unreasonable or unlawful.
The proceeding to obtain such reversal, vacation, or
modification shall be by notice of appeal, filed with the
commission by any party to the proceeding before it, against the
commission, setting forth the determination appealed from and
errors complained of. The notice of appeal shall be served,
unless waived, upon the commission by leaving a copy at the
office of the chairperson of the commission at Columbus. The
court may permit an interested party to intervene by cross-
appeal.
(3) No proceeding to reverse, vacate, or modify a
determination of the commission is commenced unless the notice
of appeal is filed within sixty days after the date of the
determination.
Sec. 5727.01. As used in this chapter:
(A) "Public utility" means each person referred to as a
telephone company, telegraph company, electric company, natural
gas company, pipe-line company, water-works company, water
transportation company, heating company, rural electric company,
railroad company, combined company, or energy company.
(B) "Gross receipts" means the entire receipts for
business done by any person from operations as a public utility,
or incidental thereto, or in connection therewith, including any
receipts received under Chapter 4928. of the Revised Code. The
gross receipts for business done by an incorporated company
engaged in operation as a public utility includes the entire
receipts for business done by such company under the exercise of
its corporate powers, whether from the operation as a public
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5073 Sub. H. B. No. 15 Page 176
As Passed by the House
utility or from any other business.
(C) "Rural electric company" means any nonprofit
corporation, organization, association, or cooperative engaged
in the business of supplying electricity to its members or
persons owning an interest therein in an area the major portion
of which is rural. "Rural electric company" excludes an energy
company.
(D) Any person:
(1) Is a telegraph company when engaged in the business of
transmitting telegraphic messages to, from, through, or in this
state;
(2) Is a telephone company when primarily engaged in the
business of providing local exchange telephone service,
excluding cellular radio service, in this state;
(3) Is an electric company when engaged in the business of
generating, transmitting, or distributing electricity within
this state for use by others, but excludes a rural electric
company or an energy company;
(4) Is a natural gas company when engaged in the business
of supplying or distributing natural gas for lighting, power, or
heating purposes to consumers within this state, excluding a
person that is a governmental aggregator or retail natural gas
supplier as defined in section 4929.01 of the Revised Code;
(5) Is a pipe-line company when engaged in the business of
transporting natural gas, oil, or coal or its derivatives
through pipes or tubing, either wholly or partially within this
state;
(6) Is a water-works company when engaged in the business
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5101 Sub. H. B. No. 15 Page 177
As Passed by the House
of supplying water through pipes or tubing, or in a similar
manner, to consumers within this state;
(7) Is a water transportation company when engaged in the
transportation of passengers or property, by boat or other
watercraft, over any waterway, whether natural or artificial,
from one point within this state to another point within this
state, or between points within this state and points without
this state;
(8) Is a heating company when engaged in the business of
supplying water, steam, or air through pipes or tubing to
consumers within this state for heating purposes;
(9) Is a railroad company when engaged in the business of
owning or operating a railroad either wholly or partially within
this state on rights-of-way acquired and held exclusively by
such company, or otherwise, and includes a passenger, street,
suburban, or interurban railroad company;
(10) Is an energy company when engaged in the business of
generating, transmitting, storing and releasing, or distributing
electricity within this state for use by others solely from an
energy facility with an aggregate nameplate capacity in excess
of two hundred fifty kilowatts.
As used in division (D)(2) of this section, "local
exchange telephone service" means making available or furnishing
access and a dial tone to all persons within a local calling
area for use in originating and receiving voice grade
communications over a switched network operated by the provider
of the service within the area and for gaining access to other
telecommunication services.
(E) "Taxable property" means the property required by
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5130 Sub. H. B. No. 15 Page 178
As Passed by the House
section 5727.06 of the Revised Code to be assessed by the tax
commissioner, but does not include either of the following:
(1) An item of tangible personal property that for the
period subsequent to the effective date of an air, water, or
noise pollution control certificate and continuing so long as
the certificate is in force, has been certified as part of the
pollution control facility with respect to which the certificate
has been issued;
(2) An item of tangible personal property that during the
construction of a plant or facility and until the item is first
capable of operation, whether actually used in operation or not,
is incorporated in or being held exclusively for incorporation
in that plant or facility.
Notwithstanding section 5701.03 of the Revised Code, for
tax year 2006 and thereafter, "taxable property" includes
patterns, jigs, dies, and drawings of an electric company or a
combined company for use in the activity of an electric company.
(F) "Taxing district" means a municipal corporation or
township, or part thereof, in which the aggregate rate of
taxation is uniform.
(G) "Telecommunications service" has the same meaning as
in division (AA) of section 5739.01 of the Revised Code.
(H) "Interexchange telecommunications company" means a
person that is engaged in the business of transmitting
telephonic messages to, from, through, or in this state, but
that is not a telephone company.
(I) "Sale and leaseback transaction" means a transaction
in which a public utility or interexchange telecommunications
company sells any tangible personal property to a person other
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5159 Sub. H. B. No. 15 Page 179
As Passed by the House
than a public utility or interexchange telecommunications
company and leases that property back from the buyer.
(J) "Production equipment" means all taxable steam,
nuclear, hydraulic, renewable resource, clean coal technology,
and other production plant equipment used to generate or store
and release electricity. For tax years prior to 2001,
"production equipment" includes taxable station equipment that
is located at a production plant.
(K) "Tax year" means the year for which property or gross
receipts are subject to assessment under this chapter. This
division does not limit the tax commissioner's ability to assess
and value property or gross receipts outside the tax year.
(L) "Combined company" means any person engaged in the
activity of an electric company or rural electric company that
is also engaged in the activity of a heating company or a
natural gas company, or any combination thereof.
(M) "Public utility property lessor" means any person,
other than a public utility or an interexchange
telecommunications company, that leases personal property, other
than in a sale and leaseback transaction, to a public utility,
other than a railroad, water transportation, telephone, or
telegraph company if the property would be taxable property if
owned by the public utility. A public utility property lessor is
subject to this chapter only for the purposes of reporting and
paying tax on taxable property it leases to a public utility
other than a telephone or telegraph company. A public utility
property lessor that leases property to a public utility other
than a telephone or telegraph company is not a public utility,
but it shall report its property and be assessed in the same
manner as the utility to which it leases the property.
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5189 Sub. H. B. No. 15 Page 180
As Passed by the House
(N) "Energy resource" means any of the following:
(1) "Renewable energy resource " as defined in section
4928.01 of the Revised Code;
(2) "Clean coal technology " as described in division (A)
(34)(c) of section 4928.01 of the Revised Code;
(3) "Advanced nuclear technology " as described in division
(A)(34)(d) of section 4928.01 of the Revised Code;
(4) "Cogeneration technology " as described in division (A)
(34)(b) of section 4928.01 of the Revised Code ;
(5) Energy storage system .
(O) "Energy conversion equipment" means tangible personal
property connected to a wind turbine tower, connected to and
behind solar radiation collector areas and designed to convert
the radiant energy of the sun into electricity or heat, or
connected to any other property used to generate or store and
release electricity from an energy resource, through which
electricity is transferred to controls, transformers, or power
electronics and to the transmission interconnection point.
"Energy conversion equipment" includes, but is not limited
to, inverters, batteries, switch gears, wiring, collection
lines, substations, ancillary tangible personal property, or any
lines and associated tangible personal property located between
substations and the transmission interconnection point.
(P) "Energy facility" means one or more interconnected
wind turbines, solar panels, energy storage systems, or other
tangible personal property used to generate or store and release
electricity from an energy resource owned by the same person,
including:
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5217 Sub. H. B. No. 15 Page 181
As Passed by the House
(1) All interconnection equipment, devices, and related
apparatus connected to such tangible personal property;
(2) All cables, equipment, devices, and related apparatus
that connect the generators to an electricity grid or to a
building or facility that directly consumes the electricity
produced, that facilitate the transmission of electrical energy
from the generators to the grid, building, or facility, and,
where applicable, that transform voltage before ultimate
delivery of electricity to the grid, building, or facility.
"Energy facility" includes buildings, structures,
improvements, or fixtures exclusively used to house, support, or
stabilize tangible personal property constituting the facility
or that are otherwise necessary for the operation of that
property; and so much of the land on which such tangible
personal property is situated as is required for operation of
the facility and is not devoted to some other use, not to
exceed, in the case of wind turbines, one-half acre for each
wind turbine, and regardless of whether the land is owned by the
owner or lessee of the tangible personal property or by another
person.
(Q) "Nameplate capacity" means the original interconnected
maximum rated alternating current output of a generator or other
electric production equipment under specific conditions
designated by the manufacturer, expressed in the number of
kilowatts or megawatts.
(R) "Energy storage system" means tangible personal
property that permits the storage of energy for future use as
electricity.
Sec. 5727.111. As used in this section, "convert" means to
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5246 Sub. H. B. No. 15 Page 182
As Passed by the House
switch fuel input from one energy source to another and
"repower" means to upgrade or replace older generation
components with new technology to increase efficiency and
reliability. The taxable property of each public utility, except
a railroad company, and of each interexchange telecommunications
company shall be assessed at the following percentages of true
value:
(A) In the case of a rural electric company, one of the
following fifty :
(1) Fifty per cent in the case of its taxable transmission
and distribution property and its or energy conversion equipment
first subject to taxation in this state before tax year 2027;
(2) Seven per cent in the case of its taxable production
or energy conversion equipment , and twenty-five first subject
to taxation in this state for tax year 2027 and thereafter or
any other taxable production equipment that is either converted
or repowered;
(3) Twenty-five per cent for in the case of all its other
taxable property;.
(B) In the case of a telephone or telegraph company,
twenty-five per cent for taxable property first subject to
taxation in this state for tax year 1995 or thereafter for tax
years before tax year 2007, and pursuant to division (H) of
section 5711.22 of the Revised Code for tax year 2007 and
thereafter, and the following for all other taxable property:
(1) For tax years prior to 2005, eighty-eight per cent;
(2) For tax year 2005, sixty-seven per cent;
(3) For tax year 2006, forty-six per cent;
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5274 Sub. H. B. No. 15 Page 183
As Passed by the House
(4) For tax year 2007 and thereafter, pursuant to division
(H) of section 5711.22 of the Revised Code.
(C) Twenty-five per cent in the case of (1) a natural gas
company or (2) a water-works company for taxable property first
subject to taxation in this state for tax year 2017 and
thereafter;.
(D) Eighty-eight per cent in the case of a pipe-line
company, a water-works company for taxable property first
subject to taxation in this state before tax year 2017, or a
heating company;.
(E)(1) For tax year 2005, eighty-eight per cent in the
case of the taxable transmission and distribution property of an
electric company, and twenty-five per cent for all its other
taxable property;
(2) For tax year 2006 and each tax year thereafter, in (E)
In the case of an electric company, eighty-five one of the
following:
(1) Eighty-five per cent in the case of its taxable
transmission and distribution property and energy conversion
equipment and its energy conversion equipment, first subject to
taxation in this state before tax year 2027;
(2) Twenty-five per cent in the case of its other taxable
transmission and distribution property and twenty-four ;
(3) Seven per cent in the case of its taxable production
and energy conversion equipment first subject to taxation in
this state for tax year 2027 and thereafter or any other taxable
production equipment that is either converted or repowered;
(4) Twenty-four per cent for in the case of all its other
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5302 Sub. H. B. No. 15 Page 184
As Passed by the House
taxable property.
(F)(1) Twenty-five per cent in the case of an
interexchange telecommunications company for tax years before
tax year 2007;
(2) Pursuant to division (H) of section 5711.22 of the
Revised Code for tax year 2007 and thereafter.
(G) Twenty-five per cent in the case of a water
transportation company ;.
(H) For tax year 2011 and each tax year thereafter in In
the case of an energy company, twenty-four one of the following:
(1) Eighty-five per cent in the case of its taxable
production equipment, transmission and distribution property
first subject to taxation in this state before tax year 2027;
(2) Twenty-five per cent in the case of its other taxable
transmission and distribution property and eighty-five ;
(3) Seven per cent in the case of its taxable production
or energy conversion equipment first subject to taxation in this
state for tax year 2027 and thereafter or any other taxable
production equipment that is either converted or repowered;
(4) Twenty-four per cent in the case of its other taxable
production equipment;
(5) Eighty-five per cent for in the case of all its other
taxable property.
(I) In the case of a pipeline company, one of the
following:
(1) Eighty-eight per cent of its taxable property first
subject to taxation in this state before tax year 2027;
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5329 Sub. H. B. No. 15 Page 185
As Passed by the House
(2) Twenty-five per cent in the case of all its other
taxable property.
Sec. 5727.75. (A) For purposes of this section:
(1) "Qualified energy project" means an energy project
certified by the director of development pursuant to this
section.
(2) "Energy project" means a project to provide electric
power through the construction, installation, and use of an
energy facility.
(3) "Alternative energy zone" means a county declared as
such by the board of county commissioners under division (E)(1)
(b) or (c) of this section.
(4) "Full-time equivalent employee" means the total number
of employee-hours for which compensation was paid to individuals
employed at a qualified energy project for services performed at
the project during the calendar year divided by two thousand
eighty hours. For the purpose of this calculation, "performed at
the project" includes only hours worked at the qualified energy
project and devoted to site preparation or protection,
construction and installation, and the unloading and
distribution of materials at the project site, but does not
include hours worked by superintendents, owners, manufacturers'
representatives, persons employed in a bona fide executive,
management, supervisory, or administrative capacity, or persons
whose sole employment on the project is transporting materials
or persons to the project site.
(5) "Solar energy project" means an energy project
composed of an energy facility using solar panels to generate
electricity.
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5358 Sub. H. B. No. 15 Page 186
As Passed by the House
(6) "Internet identifier of record" has the same meaning
as in section 9.312 of the Revised Code.
(7) "Applicable year" means the later of the following:
(a) The tax year in which the secretary of the treasury of
the United States, or the secretary's delegate, determines, in
accordance with section 45Y of the Internal Revenue Code, that
the annual greenhouse gas emissions from the production of
electricity in the United States are equal to or less than
twenty-five per cent of the annual greenhouse gas emissions from
the production of electricity in the United States for calendar
year 2022;
(b) Tax year 2029.
(8) "Internal Revenue Code" means the Internal Revenue
Code as of the effective date of this amendment October 3, 2023.
(B)(1) Tangible personal property of a qualified energy
project using renewable energy resources is exempt from taxation
for tax years 2011 through the applicable year if all of the
following conditions are satisfied:
(a) On or before the last day of the tax year preceding
the applicable year, the owner or a lessee pursuant to a sale
and leaseback transaction of the project submits an application
to the power siting board for a certificate under section
4906.20 of the Revised Code, or if that section does not apply,
submits an application for any approval, consent, permit, or
certificate or satisfies any condition required by a public
agency or political subdivision of this state for the
construction or initial operation of an energy project.
(b) Construction or installation of the energy facility
begins on or after January 1, 2009, and before the first day of
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5387 Sub. H. B. No. 15 Page 187
As Passed by the House
the applicable year. For the purposes of this division,
construction begins on the earlier of the date of application
for a certificate or other approval or permit described in
division (B)(1)(a) of this section, or the date the contract for
the construction or installation of the energy facility is
entered into.
(c) For a qualified energy project with a nameplate
capacity of twenty megawatts or greater, a board of county
commissioners of a county in which property of the project is
located has adopted a resolution under division (E)(1)(b) or (c)
of this section to approve the application submitted under
division (E) of this section to exempt the property located in
that county from taxation. A board's adoption of a resolution
rejecting an application or its failure to adopt a resolution
approving the application does not affect the tax-exempt status
of the qualified energy project's property that is located in
another county.
(2) If tangible personal property of a qualified energy
project using renewable energy resources was exempt from
taxation under this section beginning in any of tax years 2011
through the applicable year, and the certification under
division (E)(2) of this section has not been revoked, the
tangible personal property of the qualified energy project is
exempt from taxation for the tax year following the applicable
year and all ensuing tax years if the property was placed into
service before the first day of the tax year following the
applicable year, as certified in the construction progress
report required under division (F)(2) of this section. Tangible
personal property that has not been placed into service before
that date is taxable property subject to taxation. An energy
project for which certification has been revoked is ineligible
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5418 Sub. H. B. No. 15 Page 188
As Passed by the House
for further exemption under this section. Revocation does not
affect the tax-exempt status of the project's tangible personal
property for the tax year in which revocation occurs or any
prior tax year.
(C) Tangible personal property of a qualified energy
project using clean coal technology, advanced nuclear
technology, or cogeneration technology is exempt from taxation
for the first tax year that the property would be listed for
taxation and all subsequent years if all of the following
circumstances are met:
(1) The property was placed into service before January 1,
2021. Tangible personal property that has not been placed into
service before that date is taxable property subject to
taxation.
(2) For such a qualified energy project with a nameplate
capacity of twenty megawatts or greater, a board of county
commissioners of a county in which property of the qualified
energy project is located has adopted a resolution under
division (E)(1)(b) or (c) of this section to approve the
application submitted under division (E) of this section to
exempt the property located in that county from taxation. A
board's adoption of a resolution rejecting the application or
its failure to adopt a resolution approving the application does
not affect the tax-exempt status of the qualified energy
project's property that is located in another county.
(3) The certification for the qualified energy project
issued under division (E)(2) of this section has not been
revoked. An energy project for which certification has been
revoked is ineligible for exemption under this section.
Revocation does not affect the tax-exempt status of the
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5448 Sub. H. B. No. 15 Page 189
As Passed by the House
project's tangible personal property for the tax year in which
revocation occurs or any prior tax year.
(D) Except as otherwise provided in this section, real
property of a qualified energy project is exempt from taxation
for any tax year for which the tangible personal property of the
qualified energy project is exempted under this section.
(E)(1)(a) A person may apply to the director of
development for certification of an energy project as a
qualified energy project on or before the following dates:
(i) The last day of the tax year preceding the applicable
year, for an energy project using renewable energy resources;
(ii) December 31, 2017, for an energy project using clean
coal technology, advanced nuclear technology, or cogeneration
technology.
(b) The director shall forward a copy of each application
for certification of an energy project with a nameplate capacity
of twenty megawatts or greater to the board of county
commissioners of each county in which the project is located and
to each taxing unit with territory located in each of the
affected counties. Any board that receives from the director a
copy of an application submitted under this division shall adopt
a resolution approving or rejecting the application unless it
has adopted a resolution under division (E)(1)(c) of this
section. A resolution adopted under division (E)(1)(b) or (c) of
this section may require an annual service payment to be made in
addition to the service payment required under division (G) of
this section. The sum of the service payment required in the
resolution and the service payment required under division (G)
of this section shall not exceed nine thousand dollars per
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5477 Sub. H. B. No. 15 Page 190
As Passed by the House
megawatt of nameplate capacity located in the county. The
resolution shall specify the time and manner in which the
payments required by the resolution shall be paid to the county
treasurer. The county treasurer shall deposit the payment to the
credit of the county's general fund to be used for any purpose
for which money credited to that fund may be used.
The board shall send copies of the resolution to the owner
of the facility and the director by certified mail or, if the
board has record of an internet identifier of record associated
with the owner or director, by ordinary mail and by that
internet identifier of record. The board shall send such notice
within thirty days after receipt of the application, or a longer
period of time if authorized by the director.
(c) A board of county commissioners may adopt a resolution
declaring the county to be an alternative energy zone and
declaring all applications submitted to the director of
development under this division after the adoption of the
resolution, and prior to its repeal, to be approved by the
board.
All tangible personal property and real property of an
energy project with a nameplate capacity of twenty megawatts or
greater is taxable if it is located in a county in which the
board of county commissioners adopted a resolution rejecting the
application submitted under this division or failed to adopt a
resolution approving the application under division (E)(1)(b) or
(c) of this section.
(2) The director shall certify an energy project if all of
the following circumstances exist:
(a) The application was timely submitted.
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5506 Sub. H. B. No. 15 Page 191
As Passed by the House
(b) For an energy project with a nameplate capacity of
twenty megawatts or greater, a board of county commissioners of
at least one county in which the project is located has adopted
a resolution approving the application under division (E)(1)(b)
or (c) of this section.
(c) No portion of the project's facility was used to
supply electricity before December 31, 2009.
(d) For construction or installation of a qualified energy
project described in division (B)(1)(b) of this section, that
the project is subject to wage requirements described in section
45(b)(7)(A) of the Internal Revenue Code and apprenticeship
requirements described in section 45(b)(8)(A)(i) of the Internal
Revenue Code, provided both of the following apply:
(i) The person applies for such certificate after the
effective date of this amendment October 3, 2023.
(ii) A board of commissioners of at least one county in
which the project is located is required to adopt a resolution
approving the application under division (E)(1)(b) or (c) of
this section.
(3) The director shall deny a certification application if
the director determines the person has failed to comply with any
requirement under this section. The director may revoke a
certification if the director determines the person, or
subsequent owner or lessee pursuant to a sale and leaseback
transaction of the qualified energy project, has failed to
comply with any requirement under this section. Upon
certification or revocation, the director shall notify the
person, owner, or lessee, the tax commissioner, and the county
auditor of a county in which the project is located of the
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5535 Sub. H. B. No. 15 Page 192
As Passed by the House
certification or revocation. Notice shall be provided in a
manner convenient to the director.
(F) The owner or a lessee pursuant to a sale and leaseback
transaction of a qualified energy project shall do each of the
following:
(1) Comply with all applicable regulations;
(2) File with the director of development a certified
construction progress report before the first day of March of
each year during the energy facility's construction or
installation indicating the percentage of the project completed,
and the project's nameplate capacity, as of the preceding
thirty-first day of December. Unless otherwise instructed by the
director of development, the owner or lessee of an energy
project shall file a report with the director on or before the
first day of March each year after completion of the energy
facility's construction or installation indicating the project's
nameplate capacity as of the preceding thirty-first day of
December. Not later than sixty days after June 17, 2010, the
owner or lessee of an energy project, the construction of which
was completed before June 17, 2010, shall file a certificate
indicating the project's nameplate capacity.
(3) File with the director of development, in a manner
prescribed by the director, a report of the total number of
full-time equivalent employees, and the total number of full-
time equivalent employees domiciled in Ohio, who are employed in
the construction or installation of the energy facility;
(4) For energy projects with a nameplate capacity of
twenty megawatts or greater, repair all roads, bridges, and
culverts affected by construction as reasonably required to
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5564 Sub. H. B. No. 15 Page 193
As Passed by the House
restore them to their preconstruction condition, as determined
by the county engineer in consultation with the local
jurisdiction responsible for the roads, bridges, and culverts.
In the event that the county engineer deems any road, bridge, or
culvert to be inadequate to support the construction or
decommissioning of the energy facility, the road, bridge, or
culvert shall be rebuilt or reinforced to the specifications
established by the county engineer prior to the construction or
decommissioning of the facility. The owner or lessee of the
facility shall post a bond in an amount established by the
county engineer and to be held by the board of county
commissioners to ensure funding for repairs of roads, bridges,
and culverts affected during the construction. The bond shall be
released by the board not later than one year after the date the
repairs are completed. The energy facility owner or lessee
pursuant to a sale and leaseback transaction shall post a bond,
as may be required by the Ohio power siting board in the
certificate authorizing commencement of construction issued
pursuant to section 4906.10 of the Revised Code, to ensure
funding for repairs to roads, bridges, and culverts resulting
from decommissioning of the facility. The energy facility owner
or lessee and the county engineer may enter into an agreement
regarding specific transportation plans, reinforcements,
modifications, use and repair of roads, financial security to be
provided, and any other relevant issue.
(5) Provide or facilitate training for fire and emergency
responders for response to emergency situations related to the
energy project and, for energy projects with a nameplate
capacity of twenty megawatts or greater, at the person's
expense, equip the fire and emergency responders with proper
equipment as reasonably required to enable them to respond to
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5595 Sub. H. B. No. 15 Page 194
As Passed by the House
such emergency situations;
(6)(a) Except as otherwise provided in this division, for
projects for which certification as a qualified energy project
was applied for, under division (E) of this section, before the
effective date of this amendment October 3, 2023, maintain a
ratio of Ohio-domiciled full-time equivalent employees employed
in the construction or installation of the energy project to
total full-time equivalent employees employed in the
construction or installation of the energy project of not less
than eighty per cent in the case of a solar energy project, and
not less than fifty per cent in the case of any other energy
project. A person applying for such a qualified energy project
may certify to the director of development that the project will
be voluntarily subject to the wage requirements described in
section 45(b)(7)(A) of the Internal Revenue Code and
apprenticeship requirements described in section 45(b)(8)(A)(i)
of the Internal Revenue Code as authorized in division (F)(6)(b)
of this section. Upon receipt of that certification, the project
shall comply with division (F)(6)(b) of this section rather than
division (F)(6)(a) of this section.
(b) For projects for which certification as a qualified
energy project was applied for, under division (E) of this
section, on or after the effective date of this amendment
October 3, 2023, maintain a ratio of Ohio-domiciled full-time
equivalent employees employed in the construction or
installation of the energy project to total full-time equivalent
employees employed in the construction or installation of the
energy project of not less than seventy per cent in the case of
a solar energy project, and not less than fifty per cent in the
case of any other energy project.
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5625 Sub. H. B. No. 15 Page 195
As Passed by the House
(c) For purposes of divisions (F)(6)(a) and (b) of this
section, in the case of an energy project for which
certification from the power siting board is required under
section 4906.20 of the Revised Code, the number of full-time
equivalent employees employed in the construction or
installation of the energy project equals the number actually
employed or the number projected to be employed in the
certificate application, if such projection is required under
regulations adopted pursuant to section 4906.03 of the Revised
Code, whichever is greater. For all other energy projects, the
number of full-time equivalent employees employed in the
construction or installation of the energy project equals the
number actually employed or the number projected to be employed
by the director of development, whichever is greater. To
estimate the number of employees to be employed in the
construction or installation of an energy project, the director
shall use a generally accepted job-estimating model in use for
renewable energy projects, including but not limited to the job
and economic development impact model. The director may adjust
an estimate produced by a model to account for variables not
accounted for by the model.
(7) For energy projects with a nameplate capacity in
excess of twenty megawatts, establish a relationship with any of
the following to educate and train individuals for careers in
the wind or solar energy industry:
(a) A member of the university system of Ohio as defined
in section 3345.011 of the Revised Code;
(b) A person offering an apprenticeship program registered
with the employment and training administration within the
United States department of labor or with the apprenticeship
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5655 Sub. H. B. No. 15 Page 196
As Passed by the House
council created by section 4139.02 of the Revised Code;
(c) A career-technical center, joint vocational school
district, comprehensive career-technical center, or compact
career-technical center;
(d) A training center operated by a labor organization, or
with a training center operated by a for-profit or nonprofit
organization.
The relationship may include endowments, cooperative
programs, internships, apprenticeships, research and development
projects, and curriculum development.
(8) Offer to sell power or renewable energy credits from
the energy project to electric distribution utilities or
electric service companies subject to renewable energy resource
requirements under section 4928.64 of the Revised Code that have
issued requests for proposal for such power or renewable energy
credits. If no electric distribution utility or electric service
company issues a request for proposal on or before December 31,
2010, or accepts an offer for power or renewable energy credits
within forty-five days after the offer is submitted, power or
renewable energy credits from the energy project may be sold to
other persons. Division (F)(8) of this section does not apply
if:
(a) The owner or lessee is a rural electric company or a
municipal power agency as defined in section 3734.058 of the
Revised Code.
(b) The owner or lessee is a person that, before
completion of the energy project, contracted for the sale of
power or renewable energy credits with a rural electric company
or a municipal power agency.
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5684 Sub. H. B. No. 15 Page 197
As Passed by the House
(c) The owner or lessee contracts for the sale of power or
renewable energy credits from the energy project before June 17,
2010.
(9) Make annual service payments as required by division
(G) of this section and as may be required in a resolution
adopted by a board of county commissioners under division (E) of
this section.
(G) The owner or a lessee pursuant to a sale and leaseback
transaction of a qualified energy project shall make annual
service payments in lieu of taxes to the county treasurer on or
before the final dates for payments of taxes on public utility
personal property on the real and public utility personal
property tax list for each tax year for which property of the
energy project is exempt from taxation under this section. The
county treasurer shall allocate the payment on the basis of the
project's physical location. Upon receipt of a payment, or if
timely payment has not been received, the county treasurer shall
certify such receipt or non-receipt to the director of
development and tax commissioner in a form determined by the
director and commissioner, respectively. Each payment shall be
in the following amount:
(1) In the case of a solar energy project, seven thousand
dollars per megawatt of nameplate capacity located in the county
as of the thirty-first-day of December of the preceding tax
year;
(2) In the case of any other energy project using
renewable energy resources, the following:
(a) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
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5713 Sub. H. B. No. 15 Page 198
As Passed by the House
full-time equivalent employees to total full-time equivalent
employees of not less than seventy-five per cent, six thousand
dollars per megawatt of nameplate capacity located in the county
as of the thirty-first day of December of the preceding tax
year;
(b) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than seventy-five per cent but not less than
sixty per cent, seven thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of
December of the preceding tax year;
(c) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than sixty per cent but not less than fifty
per cent, eight thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of
December of the preceding tax year.
(3) In the case of an energy project using clean coal
technology, advanced nuclear technology, or cogeneration
technology, the following:
(a) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of not less than seventy-five per cent, six thousand
dollars per megawatt of nameplate capacity located in the county
as of the thirty-first day of December of the preceding tax
year;
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5742 Sub. H. B. No. 15 Page 199
As Passed by the House
(b) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than seventy-five per cent but not less than
sixty per cent, seven thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of
December of the preceding tax year;
(c) If the project maintains during the construction or
installation of the energy facility a ratio of Ohio-domiciled
full-time equivalent employees to total full-time equivalent
employees of less than sixty per cent but not less than fifty
per cent, eight thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of
December of the preceding tax year.
(H) The director of development in consultation with the
tax commissioner shall adopt rules pursuant to Chapter 119. of
the Revised Code to implement and enforce this section.
(I) This section and any payments in lieu of taxes made as
required under this section continue to apply and be required
notwithstanding the enactment of H.B. 15 of the 136th general
assembly.
Sec. 5727.76. (A) As used in this section, "qualifying
property" means tangible personal property that is dedicated to
transporting or transmitting electricity or natural gas and that
is placed into service in a priority investment area designated
under section 122.161 of the Revised Code during a time when
that designation is in effect.
(B) Qualifying property shall be exempt from taxation for
the tax year following the year in which the property is placed
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5771 Sub. H. B. No. 15 Page 200
As Passed by the House
into service and for the ensuing four tax years.
Section 2. That existing sections 122.6511, 4905.03,
4906.01, 4906.02, 4906.03, 4906.04, 4906.06, 4906.07, 4906.10,
4906.201, 4909.04, 4909.05, 4909.052, 4909.06, 4909.07, 4909.08,
4909.15, 4909.156, 4909.173, 4909.174, 4909.18, 4909.19,
4909.42, 4928.01, 4928.02, 4928.05, 4928.08, 4928.14, 4928.141,
4928.142, 4928.144, 4928.151, 4928.17, 4928.20, 4928.23,
4928.231, 4928.232, 4928.34, 4928.542, 4928.64, 4928.645,
4929.20, 4933.81, 4935.04, 5727.01, 5727.111, and 5727.75 of the
Revised Code are hereby repealed.
Section 3. That sections 3706.40, 3706.41, 3706.43,
3706.431, 3706.45, 3706.46, 3706.49, 3706.491, 3706.55,
3706.551, 3706.59, 3706.63, 3706.65 , 4906.105, 4928.143,
4928.148, 4928.47, and 4928.642 of the Revised Code are hereby
repealed.
Section 4. Beginning on the effective date of this
section, no electric distribution utility shall collect from its
retail customers in this state any charge that was authorized
under section 4928.148 of the Revised Code prior to the repeal
of that section by this act for retail recovery of prudently
incurred costs related to a legacy generation resource.
Beginning on the effective date of this section, the electric
distribution utility shall not apply for, and the public
utilities commission shall not authorize, any rider or cost
recovery mechanism for a legacy generation resource.
The public utilities commission shall continue any
investigation commenced pursuant to section 4928.148 of the
Revised Code prior to the repeal of that section by this act for
purposes of determining the prudence and reasonableness of the
actions of electric distribution utilities with ownership
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5801 Sub. H. B. No. 15 Page 201
As Passed by the House
interests in the legacy generation resource, including their
decisions related to offering the contractual commitment into
the wholesale markets, and excluding from recovery those costs
that the commission determines imprudent and unreasonable.
Section 5. (A) Beginning on the effective date of this
section, no electric distribution utility shall collect from its
retail customers in the state any charge that was authorized
under section 3706.46 of the Revised Code to meet the revenue
requirement for disbursements from the Solar Generation Fund to
owners or operators of qualifying solar resources that was
required under section 3706.55 of the Revised Code before the
repeal of these sections by this act.
(B) Except as provided for in division (C) of this
section, beginning on the effective date of this section, the
Ohio Air Quality Development Authority is prohibited from
directing the Treasurer of State to remit, and the Treasurer is
prohibited from remitting, any money from the Solar Generation
Fund to owners or operators of qualifying solar resources, which
remittance was permitted under section 3706.55 of the Revised
Code prior to the repeal of that section by this act.
(C) The Ohio Air Quality Development Authority shall
direct the Treasurer of State to remit money from the Solar
Generation Fund to owners or operators of qualifying solar
resources that were operational prior to December 31, 2024, in
the same manner as provided in division (A) of section 3706.55
of the Revised Code, as that section existed prior to the
effective date of its repeal by this act.
(D) Notwithstanding section 4905.32 of the Revised Code,
any amounts remaining in the Solar Generation Fund as of
December 31, 2027, minus the remittances that are required to be
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5831 Sub. H. B. No. 15 Page 202
As Passed by the House
made between that date and January 21, 2028, shall be refunded
to customers in a manner that shall be determined by the
authority in consultation with the public utilities commission.
Section 6. Section 4909.193 as enacted by this act and the
amendments to section 4909.42 of the Revised Code by this act
apply to applications filed under section 4909.18 of the Revised
Code on or after the effective date of this section.
Section 7. (A) The Public Utilities Commission shall
conduct a study to evaluate the potential use or deployment of
advanced transmission technologies, as defined in section
4906.01 of the Revised Code, by public utilities to enable
public utilities to safely, reliably, efficiently, and cost-
effectively meet electric system demand and provide safe,
reliable, and affordable electric utility service to customers.
In conducting the study, the Commission shall do the following:
(1) Evaluate the attributes, functions, costs, and
benefits of various advanced transmission technologies,
including grid-enhancing technologies and advanced conductors;
(2) Evaluate the potential of each of the advanced
transmission technologies studied to be used or deployed by
public utilities to provide safe, reliable, and affordable
electric utility service to customers, considering existing and
planned transmission infrastructure and projected demand growth;
(3) Identify the potential reductions in project costs and
project completion timelines by deploying advanced transmission
technologies, as compared to traditional transmission
infrastructure;
(4) Evaluate potential ways to streamline the deployment
of advanced transmission technologies, including streamlined
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5860 Sub. H. B. No. 15 Page 203
As Passed by the House
processes for permitting, maintenance, and upgrades;
(5) Evaluate other deregulated states' policies and laws
relating to advanced transmission technologies and provide
recommendations in accordance with other states' policies and
laws to enable and encourage adoption of advanced transmission
technologies in this state;
(6) Identify processes or ways that end-use customers,
such as industrial or mercantile customers, can invest and
deploy advanced transmission technologies in partnership with
their respective utility to allow for the more rapid deployment
of such technologies;
(7) Identify how the Commission can support and encourage
the implementation of advanced transmission technologies in Ohio
through future rule-making or other Commission activities;
(8) Evaluate any other aspect of advanced transmission
technologies that the Commission determines will assist
policymakers, public utilities, ratepayers, and other
stakeholders in understanding the potential role of advanced
transmission technologies in the transmission system serving
this state and the region;
(9) Identify opportunities for the Federal Energy
Advocate, as employed under section 4928.24 of the Revised Code,
to support and advocate for the implementation of advanced
transmission technologies at the regional transmission
organization, Federal Energy Regulatory Commission, and other
relevant agencies, commissions or regulatory bodies.
(B) In conducting the study required by this section, the
Commission shall consult with or invite comments from
stakeholders. The Commission shall hold a minimum of two public
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5889 Sub. H. B. No. 15 Page 204
As Passed by the House
workshops to review public comments from stakeholders. The
Commission may incorporate any information or comments received
in its report required in division (C) of this section.
(C) Not later than March 1, 2026, the Commission shall
submit a report that includes the Commission's findings with
respect to the topics outlined in this section. A copy of the
report shall be made available online and sent to all members of
the General Assembly.
Section 8. The amendment by this act of sections 5727.01
and 5727.111 of the Revised Code applies to tax year 2027 and
every tax year thereafter.
Section 9. Section 122.6511 of the Revised Code as
presented in this act takes effect on the later of July 1, 2025,
or the effective date of this section. July 1, 2025, is the
effective date of an earlier amendment to that section by H.B.
315 of the 135th General Assembly.
Section 10. An agreement between an electric distribution
utility and a mercantile customer or group of mercantile
customers for the construction of a customer sited renewable
energy resource that is executed and filed with the public
utilities commission prior to the effective date of H.B. 15 of
the 136th General Assembly shall remain in effect according to
the agreement's terms and be governed by section 4928.47 of the
Revised Code as that section existed prior to being repealed by
H.B. 15 of the 136th General Assembly.
Section 11. The General Assembly, applying the principle
stated in division (B) of section 1.52 of the Revised Code that
amendments are to be harmonized if reasonably capable of
simultaneous operation, finds that the following sections,
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5918 Sub. H. B. No. 15 Page 205
As Passed by the House
presented in this act as composites of the sections as amended
by the acts indicated, are the resulting versions of the
sections in effect prior to the effective date of the sections
as presented in this act:
Section 4906.02 of the Revised Code is presented in this
act as a composite of the section as amended by both H.B. 110
and S.B. 52 of the 134th General Assembly.
Section 4928.01 of the Revised Code is presented in this
act as a composite of the section as amended by both H.B. 308
and H.B. 315 of the 135th General Assembly.
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