Ohio House Bill HB15 Latest Draft

                            As Introduced
136th General Assembly
Regular Session	H. B. No. 15
2025-2026
Representative Klopfenstein
A B I LL
To amend sections 4906.04, 4928.01, 4928.05, 
4928.08, 4928.14, 4928.141, 4928.142, 4928.144, 
4928.17, 4928.20, 4928.23, 4928.231, 4928.232, 
4928.34, 4928.542, 4928.64, 4928.645, 4929.20, 
5727.01, 5727.031, 5727.06, 5727.11, 5727.111, 
and 5727.15; to enact sections 4928.041, 
4928.081, 4928.101, 4928.102, 4928.103, 
4928.149, 4929.201, 4929.221, 4929.222, 4933.51,
4933.52, 4933.54, 4933.56, 4933.58, and 4933.59;
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, 4928.143, 4928.148, and 4928.642 of the
Revised Code to amend the competitive retail 
electric service law, make changes regarding 
electric company property taxation, 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 4906.04, 4928.01, 4928.05, 
4928.08, 4928.14, 4928.141, 4928.142, 4928.144, 4928.17, 
4928.20, 4928.23, 4928.231, 4928.232, 4928.34, 4928.542, 
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4928.64, 4928.645, 4929.20, 5727.01, 5727.031, 5727.06, 5727.11,
5727.111, and 5727.15 be amended and sections 4928.041, 
4928.081, 4928.101, 4928.102, 4928.103, 4928.149, 4929.201, 
4929.221, 4929.222, 4933.51, 4933.52, 4933.54, 4933.56, 4933.58,
and 4933.59 of the Revised Code be enacted to read as follows:
Sec. 4906.04. 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 constitutes the 
construction of a major utility facility that requires a 
certificate. 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
any terms, conditions, and modifications contained therein. A 
certificate may only be issued pursuant to Chapter 4906. of the 
Revised Code.
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.
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; 
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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. 
(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 
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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, 
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. 
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(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 
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 
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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. 
(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. 
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(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 
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 
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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. 
(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 
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customer-generator's 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 
interconnection.
(32) "Self-generator" means an entity in this state that 
owns or hosts on its premises 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 facility is installed or operated by the 
owner or by an agent under a contract. 
(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 
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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 
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 
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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; 
(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 
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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, 
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 
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solid oxide fuel cell; 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 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 
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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. 
(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 
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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. 
(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 either 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. 
(39) "Smart grid" means capital improvements to an 
electric distribution utility's distribution infrastructure that
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improve reliability, efficiency, resiliency, or reduce energy 
demand or use, including, but not limited to, advanced metering 
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.
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(43) "Green energy" means any energy generated by using an
energy resource that does one or more of the following:
(a) Releases reduced air pollutants, thereby reducing 
cumulative air emissions;
(b) Is more sustainable and reliable relative to some 
fossil fuels.
"Green energy" includes energy generated by using natural 
gas as a resource.
(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 
division (A) of section 4928.04 of the Revised Code. Otherwise, 
the service component shall be deemed a noncompetitive retail 
electric service. 
Sec. 4928.041.  	(A) Except as provided in sections 4928.141 
and 4928.142 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 
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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. 
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 
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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.
(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.
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(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 
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.
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(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 
"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 
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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
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. 4928.081.  	The public utilities commission and the  
electric distribution utilities and competitive retail electric 
service suppliers that elect to participate in the consumer 
choice billing program are subject to the requirements 
established for that program under sections 4933.51 to 4933.59 
of the Revised Code.
Sec. 4928.101.  	(A) As used in this section and section  
4928.102 of the Revised Code:
(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 
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633 H. B. No. 15 Page 23
As Introduced
demand for the customer-managed meters.
(B) The consumer protections described in section 4928.10 
of the Revised Code and the rules adopted pursuant to that 
section apply to small commercial customers and to all other 
customers as set forth in the rules.
Sec. 4928.102.  	(A) 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 rate to be charged upon the contract's conversion 
to a variable rate;
(4) The public utilities commission web site that, as a 
comparison tool, lists rates offered by competitive retail 
electric service suppliers;
(5) A statement explaining that appearing on each 
customer's bill is a price-to-compare notice that lists the 
utility's standard service offer price. 
(B) The notices shall be sent by standard United States 
mail 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.
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661 H. B. No. 15 Page 24
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(2) The supplier shall send the second notice not earlier 
than forty-five days, and not later than thirty days, prior to 
the expiration of the fixed rate.
(C) A competitive retail electric service supplier shall 
provide an annual notice, by standard United States mail, 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.
(D) 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 (C) of this section. The 
rules, at a minimum, shall include the following requirements 
regarding the notices required under divisions (A) to (C) 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.
(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 4928.102 of the Revised Code is 
not subject to sections 121.95 to 121.953 of the Revised Code.
Sec. 4928.103.  	(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 
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As Introduced
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) 
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.
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719 H. B. No. 15 Page 26
As Introduced
(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
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,
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749 H. B. No. 15 Page 27
As Introduced
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 
is first authorized 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 . No electric 
security plan that extends approved before the effective date of
the amendments to this section bythis act shall extend beyond 
December 31, 2008, shall continue to be in effect for the 
subject electric distribution utility for the duration the 
termination date of the plan's term. 
(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. 
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780 H. B. No. 15 Page 28
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(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 
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 
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808 H. B. No. 15 Page 29
As Introduced
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 
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 
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837 H. B. No. 15 Page 30
As Introduced
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 
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 
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867 H. B. No. 15 Page 31
As Introduced
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 
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 
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896 H. B. No. 15 Page 32
As Introduced
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, 
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.
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925 H. B. No. 15 Page 33
As Introduced
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 
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 
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956 H. B. No. 15 Page 34
As Introduced
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 
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 
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986 H. B. No. 15 Page 35
As Introduced
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 
system for distribution service.
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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(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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1046 H. B. No. 15 Page 37
As Introduced
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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1077 H. B. No. 15 Page 38
As Introduced
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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1107 H. B. No. 15 Page 39
As Introduced
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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1138 H. B. No. 15 Page 40
As Introduced
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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1169 H. B. No. 15 Page 41
As Introduced
(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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1198 H. B. No. 15 Page 42
As Introduced
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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1227 H. B. No. 15 Page 43
As Introduced
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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1258 H. B. No. 15 Page 44
As Introduced
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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1289 H. B. No. 15 Page 45
As Introduced
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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1317 H. B. No. 15 Page 46
As Introduced
(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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1346 H. B. No. 15 Page 47
As Introduced
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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1375 H. B. No. 15 Page 48
As Introduced
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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1405 H. B. No. 15 Page 49
As Introduced
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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1434 H. B. No. 15 Page 50
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(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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1462 H. B. No. 15 Page 51
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(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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1492 H. B. No. 15 Page 52
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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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1521 H. B. No. 15 Page 53
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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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1550 H. B. No. 15 Page 54
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(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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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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1610 H. B. No. 15 Page 56
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(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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1640 H. B. No. 15 Page 57
As Introduced
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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1672 H. B. No. 15 Page 58
As Introduced
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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As Introduced
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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1730 H. B. No. 15 Page 60
As Introduced
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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1759 H. B. No. 15 Page 61
As Introduced
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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1787 H. B. No. 15 Page 62
As Introduced
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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1809 H. B. No. 15 Page 63
As Introduced
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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1814 H. B. No. 15 Page 64
As Introduced
(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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1843 H. B. No. 15 Page 65
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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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1873 H. B. No. 15 Page 66
As Introduced
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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1904 H. B. No. 15 Page 67
As Introduced
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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1935 H. B. No. 15 Page 68
As Introduced
(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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1964 H. B. No. 15 Page 69
As Introduced
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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1994 H. B. No. 15 Page 70
As Introduced
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. 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, 
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2024 H. B. No. 15 Page 71
As Introduced
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 
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
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2054 H. B. No. 15 Page 72
As Introduced
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 
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 
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2085 H. B. No. 15 Page 73
As Introduced
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.
(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. 4929.201.  	The public utilities commission and the  
natural gas companies and competitive retail natural gas 
suppliers that elect to participate in the consumer choice 
billing program are subject to the requirements established for 
that program under sections 4933.51 to 4933.59 of the Revised 
Code.
Sec. 4929.221.  	(A) If a competitive retail natural gas  
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2115 H. B. No. 15 Page 74
As Introduced
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 rate to be charged upon the contract's conversion 
to a variable rate;
(4) The public utilities commission web site that, as a 
comparison tool, lists rates offered by competitive retail 
natural gas service suppliers;
(5) A statement explaining that appearing on each 
customer's bill is a price-to-compare notice that lists the 
natural gas company's default rate for natural gas charged to 
customers who decide not to shop for a competitive supplier. 
(B) The notices shall be sent by standard United States 
mail 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 thirty days prior to the
expiration of the fixed rate.
(C) A competitive retail natural gas service supplier 
shall provide an annual notice, by standard United States mail, 
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2143 H. B. No. 15 Page 75
As Introduced
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.
(D) 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 (C) of this section. The 
rules, at a minimum, shall include the following requirements 
regarding the notices required under divisions (A) to (C) 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. 
(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 4929.221 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 
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2172 H. B. No. 15 Page 76
As Introduced
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. 4933.51.  	As used in sections 4933.51 to 4933.59 of  
the Revised Code:
(A) "Applicant" means a supplier that has applied for 
certification under the consumer choice billing program 
established under sections 4933.51 to 4933.59 of the Revised 
Code.
(B) "Consumer" means a residential, commercial, or 
industrial customer of retail electric service or retail natural
gas service.
(C) "Competitive retail electric service" and "electric 
distribution utility" have the same meanings as in section 
4928.01 of the Revised Code.
(D) "Competitive retail natural gas supplier" and "natural
gas company" have the same meanings as in section 4929.01 of the
Revised Code.
(E) "Supplier" means a supplier of competitive retail 
electric service or a competitive retail natural gas supplier.
Sec. 4933.52.  	(A) There is created the consumer choice  
billing program, which shall be administered by the public 
utilities commission. The purpose of the program is to do the 
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2200 H. B. No. 15 Page 77
As Introduced
following:
(1) Permit suppliers to offer consumers consolidated 
billing of retail electric services or retail natural gas 
services for all electric or natural gas charges, including an 
electric distribution utility's or natural gas company's 
distribution and transmission charges;
(2) Enhance consumer protections for consumers who select 
a supplier and elect to be billed by that supplier for all 
charges for electric service or natural gas service;
(3) Increase competition in supplier marketplaces;
(4) Develop direct and transparent relationships between 
consumers and suppliers.
(B) The commission shall adopt rules to authorize consumer
choice billing and accomplish the purposes described in division
(A) of this section.
Sec. 4933.54.  	(A) The public utilities commission shall  
adopt rules to implement the consumer choice billing program 
created under section 4933.52 of the Revised Code. The rules 
shall require a supplier to do the following:
(1) Apply for a new or amended certification under section
4928.08 or 4929.20 of the Revised Code, as applicable, that also
authorizes the supplier's participation in the consumer choice 
billing program;
(2) If the applicant is applying for an amended 
certification, maintain a current, valid certification under 
section 4928.08 or 4929.20 of the Revised Code and, prior to 
offering or providing consumer choice billing, submit to the 
commission a statement affirming that the applicant will not 
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2228 H. B. No. 15 Page 78
As Introduced
offer or provide consumer choice billing without such 
certification and commission authorization to provide such 
billing under the program;
(3) Maintain the following, in addition to meeting 
applicable financial assurances required under section 4928.08 
or 4929.20 of the Revised Code:
(a) If the applicant is a competitive retail electric 
supplier, bonding or financial assurances with the commission 
for sales of electricity in the amount of two hundred fifty 
thousand dollars or ten per cent of the applicant's annual gross
receipts, whichever is greater;
(b) If the applicant is a competitive retail natural gas 
supplier, bonding or financial assurances with each natural gas 
company in the service territory where the applicant provides 
service;
(c) Bonding or financial assurances with each electric 
distribution utility and natural gas company where the applicant
plans to offer consumer choice billing in an amount equal to the
sum of the two highest months of utility receivables in the 
previous twelve months.
(4)(a) Certify that the applicant has not had its 
certification under section 4928.08 or 4929.20 revoked during 
the previous five-year period;
(b) Certify that, for bills that include supplier charges 
and electric distribution utility or natural gas company 
charges, the applicant will comply with the standards for 
billing practices and minimum service requirements under 
sections 4928.10 and 4929.22 of the Revised Code, as applicable;
(c) Demonstrate that the applicant is able to meet the 
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2257 H. B. No. 15 Page 79
As Introduced
demands of increased consumer service and dispute resolution 
functions, including the operation of call centers, support of 
complex billing requirements, responsible execution of 
collections functions, quality assurance, and recordkeeping 
necessary to handle electric distribution utility and natural 
gas company charges that contribute to potential electric or 
natural gas service disconnections;
(d) Attest to the applicant's ability to comply with 
applicable requirements related to payment plans for utility 
service and to assist consumers with other payment plan options 
by employing new or existing consumer assistance programs prior 
to initiating the process for service termination;
(e) Agree to purchase the receivables for regulated 
charges of an electric distribution utility or natural gas 
distribution company, as applicable;
(f) Agree to timely inform the commission of any material 
change or the cancellation of the bonding or assurances required
under division (A)(3) of this section;
(g) Agree to comply with Ohio administrative rules 
regarding standards of conduct for suppliers and disclosures, 
marketing, and sales practice requirements for suppliers.
(B) The commission also shall adopt rules that do the 
following:
(1) Establish a process for an applicant to petition the 
commission for authorization to provide consumer choice billing 
through a third party if the applicant meets the qualifications 
under divisions (A)(3) and (4) of this section;
(2) Authorize a mechanism to create a bypassable billing 
service charge that:
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2286 H. B. No. 15 Page 80
As Introduced
(a) Is wholly based on the fully unbundled direct and 
indirect costs of an electric distribution utility's or a 
natural gas company's billing system;
(b) Guarantees the recovery of all prudent investments in 
billing infrastructure;
(c) May be imposed only after a commission-imposed 
prudency review that occurs prior to the implementation of 
consumer choice billing.
(3) Require an electric distribution utility and a natural
gas company to timely furnish necessary billing data to 
suppliers participating in the consumer choice billing program;
(4) Create a standardized form of consumer notice to be 
used when a supplier ceases to provide a particular type of 
billing or other service;
(5) Establish a consumer choice billing working group for 
stakeholders to draft tariff provisions, collect data, design 
business processes, configure electronic transactions, review 
similar consumer choice billing programs in other states, define
a comprehensive consumer choice billing education program to 
support the launch of consumer choice billing in the state, and 
consider any other relevant matters, including the process for 
disconnection or termination of utility service;
(6) Establish an electronic data exchange working group to
develop proposed electronic transactions for an electric 
distribution utility, natural gas company, or supplier to 
exchange necessary consumption, billing, payment, and related 
data;
(7) Prohibit an electric distribution utility or natural 
gas company from requiring a supplier to purchase a consumer's 
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2315 H. B. No. 15 Page 81
As Introduced
arrears from the electric distribution utility or natural gas 
company;
(8) Prohibit an electric distribution utility or natural 
gas company from utilizing consumer information to do the 
following:
(a) Market the standard service offer for electric service
or the standard choice offer for natural gas service;
(b) Research or market other electric distribution utility
or natural gas company services;
(c) Share information the electric distribution utility or
natural gas company acquires through electronic transactions 
that facilitate consumer choice billing with unregulated 
affiliates of the electric distribution utility, natural gas 
company, or any other nongovernmental entity.
(9) Establish the terms and conditions for the following:
(a) A supplier to change a consumer's billing method to or
from consumer choice billing and the corresponding content and 
timing of notifications to consumers;
(b) For a consumer that is on budget billing with an 
electric distribution utility or natural gas company at the time
of the switch to consumer choice billing;
(c) A supplier's purchase of an electric distribution 
utility's or natural gas company's receivables, including 
prioritization for partial payments and a dispute resolution 
process;
(d) Nonpayment by a consumer choice billing consumer, 
including the content of collection notices, purchase of 
arrears, unpaid charges, and limitations.
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2343 H. B. No. 15 Page 82
As Introduced
(10) A consumer choice billing consumer's participation in
the percentage of income assistance program under section 
4928.53 of the Revised Code.
(C) In addition to the penalties described in divisions 
(A)(1) and (2) of section 4933.59 of the Revised Code, the 
commission shall adopt rules to establish fines or other 
penalties for violations of requirements established under 
sections 4933.52 to 4933.58 of the Revised Code.
(D) Notwithstanding any provision of section 121.95 of the
Revised Code to the contrary, a regulatory restriction contained
in a rule adopted under section 4933.54 of the Revised Code is 
not subject to sections 121.95 to 121.953 of the Revised Code.
Sec. 4933.56.  	(A) Not later than forty-five days after the 
effective date of this section, the public utilities commission 
shall issue an order requiring electric distribution utilities 
and natural gas companies to prepare a consumer choice billing 
implementation plan, which shall be subject to commission 
approval. Each electric distribution utility and natural gas 
company shall submit its implementation plan to the commission 
not later than one hundred eighty days after the commission has 
adopted the consumer choice billing rules pursuant to section 
4933.54 of the Revised Code.
The implementation plan shall demonstrate how the electric
distribution utility or natural gas company will meet the 
consumer choice billing requirements established by rule 
pursuant to section 4933.54 of the Revised Code and shall 
include all tariffs, agreements, processes, proposed cost 
recovery mechanisms, and other components that will require 
commission approval in accordance with the commission's consumer
choice billing order.
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2373 H. B. No. 15 Page 83
As Introduced
If necessary, the commission may approve an implementation
plan on an expedited basis.
(B) An electric distribution utility or natural gas 
company shall maintain a record of recoverable consumer choice 
billing costs as regulatory assets. Such regulatory assets shall
be recovered in the utility's or company's next rate case 
application under section 4909.18 of the Revised Code.
Sec. 4933.58.  	Not later than one year after the effective  
date of the consumer choice billing rules adopted pursuant to 
section 4933.54 of the Revised Code, the public utilities 
commission shall issue a consumer choice billing report to the 
standing committees of the house of representatives and the 
senate with primary responsibility for utility legislation. The 
report shall detail the status of the consumer choice billing 
program in the state and shall include the following information
regarding the program:
(A) Statistics for the number of consumers who shop for 
retail electric and natural gas service;
(B) The number and description of consumer complaints;
(C) The number of billing disputes;
(D) The number of service terminations;
(E) Any other information needed to determine whether 
modifications to consumer choice billing qualifications or 
requirements are necessary to improve shopping for retail 
electric and natural gas service in the state.
Sec. 4933.59.  	(A) If a supplier violates a provision of  
the consumer choice billing program under sections 4933.51 to 
4933.58 of the Revised Code, the public utilities commission may
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2401 H. B. No. 15 Page 84
As Introduced
impose any of the following penalties, subject to notice and a 
hearing:
(1) A suspension or revocation of the supplier's 
participation in the consumer choice billing program;
(2) A suspension or revocation of the supplier's 
certification under section 4928.08 or 4928.20 of the Revised 
Code, as applicable;
(3) A fine in an amount determined and imposed by the 
commission, on a supplier for marketing practices that are 
fraudulent, deceptive, or otherwise unlawful.
(B) A supplier shall be responsible for fraudulent, 
deceptive, or other unlawful marketing acts performed by an 
agent of the supplier. The commission may impose on the supplier
the penalties described in division (A) of this section if the 
agent of a supplier violates a provision of the consumer choice 
billing program under sections 4933.51 to 4933.58 of the Revised
Code.
(C) The commission may impose penalties on an electric 
distribution utility or a natural gas company that violates 
requirements adopted pursuant to section 4933.54 of the Revised 
Code.
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 
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2429 H. B. No. 15 Page 85
As Introduced
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 
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 
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2458 H. B. No. 15 Page 86
As Introduced
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 
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, 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
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2487 H. B. No. 15 Page 87
As Introduced
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 
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 
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2516 H. B. No. 15 Page 88
As Introduced
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 
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 
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
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2545 H. B. No. 15 Page 89
As Introduced
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.
(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.
(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 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.
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2574 H. B. No. 15 Page 90
As Introduced
(P) "Energy facility" means one or more interconnected 
wind turbines, solar panels, or other tangible personal property
used to generate electricity from an energy resource owned by 
the same person, including:
(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.
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2603 H. B. No. 15 Page 91
As Introduced
(R) "Qualifying production equipment" means production 
equipment that is owned by or leased to an electric company or 
energy company or that is owned by or leased to a combined 
company for use in the activity of an electric company.
Sec. 5727.031. (A) A person that is engaged in some other 
primary business to which the supplying of electricity to others
is incidental shall file a report under section 5727.08 of the 
Revised Code as an electric company but shall only report 
therein as taxable property the amounts required in divisions 
(B) and (C) of this section. All time limits and other 
procedural requirements of this chapter for the reporting and 
assessment of property of electric companies apply to persons 
required to file a report under this section. For the purposes 
of this section, "the supplying of electricity to others" shall 
not include donating all of the electricity a person generates 
to a political subdivision of the state.
(B) A person subject to this section shall report the true
value of the boilers, machinery, equipment, and any personal 
property that is used to supply electricity to others , which 
shall be the sum of the following:
(1) The true value of the property that is production 
equipment as it would be determined for an electric company 
under section 5727.11 of the Revised Code multiplied by the per 
cent of the electricity generated in the preceding calendar year
that was not used by the person who generated it; plus
(2) The true value of the property and that is not 
production equipment , as it such true value would be determined 
for an electric company under section 5727.11 of the Revised 
Code, multiplied by the per cent of the electricity generated in
the preceding calendar year that was not used by the person who 
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2633 H. B. No. 15 Page 92
As Introduced
generated it.
(C) The property reported under division (B) of this 
section shall be listed and assessed at an amount equal to the 
sum of the products determined under divisions (C)(1) and (2) of
this section.
(1) Multiply the portion of the true value determined 
under division (B)(1) of this section by the assessment rate in 
section 5727.111 of the Revised Code that is applicable to the 
production equipment of an electric company;
(2) Multiply the portion of product obtained by 
multiplying the true value determined under division (B)(2) (B) 
of this section by the assessment rate in section 5727.111 of 
the Revised Code that is applicable to the taxable property of 
an electric company that is not production equipment .
Sec. 5727.06. (A) Except as otherwise provided by law, the
following constitutes the taxable property of a public utility, 
interexchange telecommunications company, or public utility 
property lessor that shall be assessed by the tax commissioner: 
(1) For tax years before tax year 2006:
(a) In the case of a railroad company, all real property 
and tangible personal property owned or operated by the railroad
company in this state on the thirty-first day of December of the
preceding year;
(b) In the case of a water transportation company, all 
tangible personal property, except watercraft, owned or operated
by the water transportation company in this state on the thirty-
first day of December of the preceding year and all watercraft 
owned or operated by the water transportation company in this 
state during the preceding calendar year;
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2662 H. B. No. 15 Page 93
As Introduced
(c) In the case of all other public utilities and 
interexchange telecommunications companies, all tangible 
personal property that on the thirty-first day of December of 
the preceding year was both located in this state and:
(i) Owned by the public utility or interexchange 
telecommunications company; or
(ii) Leased by the public utility or interexchange 
telecommunications company under a sale and leaseback 
transaction.
(2) For tax years 2006, 2007, and 2008:
(a) In the case of a railroad company, all real property 
used in railroad operations and tangible personal property owned
or operated by the railroad company in this state on the thirty-
first day of December of the preceding year;
(b) In the case of a water transportation company, all 
tangible personal property, except watercraft, owned or operated
by the water transportation company in this state on the thirty-
first day of December of the preceding year and all watercraft 
owned or operated by the water transportation company in this 
state during the preceding calendar year;
(c) In the case of all other public utilities except 
telephone and telegraph companies, all tangible personal 
property that on the thirty-first day of December of the 
preceding year was both located in this state and either owned 
by the public utility or leased by the public utility under a 
sale and leaseback transaction.
(3) For tax year 2009 and each tax year thereafter:
(a) In the case of a railroad company, all real property 
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2690 H. B. No. 15 Page 94
As Introduced
used in railroad operations and tangible personal property owned
or operated by the railroad company in this state on the thirty-
first day of December of the preceding year;
(b) In the case of a water transportation company, all 
tangible personal property, except watercraft, owned or operated
by the water transportation company in this state on the thirty-
first day of December of the preceding year and all watercraft 
owned or operated by the water transportation company in this 
state during the preceding calendar year;
(c) In the case of all other public utilities except 
telephone and telegraph companies, all tangible personal 
property except qualifying production equipment that on the 
thirty-first day of December of the preceding year was both 
located in this state and either owned by the public utility or 
leased by the public utility under a sale and leaseback 
transaction, and that is not exempted from taxation under 
section 5727.75 of the Revised Code;
(d) In the case of a public utility property lessor, all 
personal property except qualifying production equipment that on
the thirty-first day of December of the preceding year was both 
located in this state and leased, in other than a sale and 
leaseback transaction, to a public utility other than a 
railroad, telephone, telegraph, or water transportation company.
The assessment rate used under section 5727.111 of the Revised 
Code shall be based on the assessment rate that would apply if 
the public utility owned the property, and that is not exempted 
from taxation under section 5727.75 of the Revised Code.
(4) For tax years 2005 and 2006, in the case of telephone,
telegraph, or interexchange telecommunications companies, all 
tangible personal property that on the thirty-first day of 
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2720 H. B. No. 15 Page 95
As Introduced
December of the preceding year was both located in this state 
and either owned by the telephone, telegraph, or interexchange 
telecommunications company or leased by the telephone, 
telegraph, or interexchange telecommunications company under a 
sale and leaseback transaction.
(5)(a) For tax year 2007 and thereafter, in the case of 
telephone, telegraph, or interexchange telecommunications 
companies, all tangible personal property shall be listed and 
assessed for taxation under Chapter 5711. of the Revised Code, 
but the tangible personal property shall be valued in accordance
with this chapter using the composite annual allowances and 
other valuation procedures prescribed under section 5727.11 of 
the Revised Code by the tax commissioner for such property for 
tax year 2006, notwithstanding any section of Chapter 5711. of 
the Revised Code to the contrary.
(b) A telephone, telegraph, or interexchange 
telecommunications company subject to division (A)(5)(a) of this
section shall file a combined return with the tax commissioner 
in accordance with section 5711.13 of the Revised Code even if 
the company has tangible personal property in only one county. 
Such a company also is subject to the issuance of a preliminary 
assessment certificate by the tax commissioner under section 
5711.25 of the Revised Code. Such a company is not required to 
file a county supplemental return under section 5711.131 of the 
Revised Code.
(6) In the case of an energy company, for tax year 2011 
and each tax year thereafter, all tangible personal property 
except qualifying production equipment that on the thirty-first 
day of December of the preceding year was both located in this 
state and either owned by the company or leased by the company 
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2750 H. B. No. 15 Page 96
As Introduced
under a sale and leaseback transaction, and that is not exempted
from taxation under section 5727.75 of the Revised Code.
(B) This division applies to tax years before tax year 
2007.
In the case of an interexchange telecommunications 
company, all taxable property shall be subject to the provisions
of this chapter and shall be valued by the commissioner in 
accordance with division (A) of section 5727.11 of the Revised 
Code. A person described by this division shall file the report 
required by section 5727.08 of the Revised Code. Persons 
described in this division shall not be considered taxpayers, as
defined in division (B) of section 5711.01 of the Revised Code, 
and shall not be required to file a return and list their 
taxable property under any provision of Chapter 5711. of the 
Revised Code.
(C) The lien of the state for taxes levied each year on 
the real and personal property of public utilities and 
interexchange telecommunications companies and on the personal 
property of public utility property lessors shall attach thereto
on the thirty-first day of December of the preceding year.
(D) Property that is required by division (A)(3)(b) of 
this section to be assessed by the tax commissioner under this 
chapter shall not be listed by the owner of the property under 
Chapter 5711. of the Revised Code.
(E) The ten-thousand-dollar exemption provided for in 
division (C)(3) of section 5709.01 of the Revised Code does not 
apply to any personal property that is valued under this 
chapter.
(F) The tax commissioner may adopt rules governing the 
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2779 H. B. No. 15 Page 97
As Introduced
listing of the taxable property of public utilities and 
interexchange telecommunications companies and the determination
of true value.
Sec. 5727.11. (A) Except as otherwise provided in this 
section, the true value of all taxable property, except property
of a railroad company, required by section 5727.06 of the 
Revised Code to be assessed by the tax commissioner shall be 
determined by a method of valuation using cost as capitalized on
the public utility's books and records less composite annual 
allowances as prescribed by the commissioner. If the 
commissioner finds that application of this method will not 
result in the determination of true value of the public 
utility's taxable property, the commissioner may use another 
method of valuation.
(B)(1) Except as provided in division (B)(2) of this 
section, the true value of current gas stored underground is the
cost of that gas shown on the books and records of the public 
utility on the thirty-first day of December of the preceding 
year.
(2) For tax year 2001 and thereafter, the true value of 
current gas stored underground is the quotient obtained by 
dividing (a) the average value of the current gas stored 
underground, which shall be determined by adding the value of 
the gas on hand at the end of each calendar month in the 
calendar year preceding the tax year, or, if applicable, the 
last day of business of each month for a partial month, divided 
by (b) the total number of months the natural gas company was in
business during the calendar year prior to the beginning of the 
tax year. With the approval of the tax commissioner, a natural 
gas company may use a date other than the end of a calendar 
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2809 H. B. No. 15 Page 98
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month to value its current gas stored underground.
(C) The true value of noncurrent gas stored underground is
thirty-five per cent of the cost of that gas shown on the books 
and records of the public utility on the thirty-first day of 
December of the preceding year.
(D)(1) Except as provided in division (D)(2) of this 
section, the true value of the production equipment of an 
electric company and the true value of all taxable property of a
rural electric company is the equipment's or property's cost as 
capitalized on the company's books and records less fifty per 
cent of that cost as an allowance for depreciation and 
obsolescence.
(2) The true value of the production equipment of a rural 
electric company or energy conversion equipment of an electric 
company, rural electric company, or energy company purchased, 
transferred, or placed into service after October 5, 1999, is 
the purchase price of the equipment as capitalized on the 
company's books and records less composite annual allowances as 
prescribed by the tax commissioner.
(E) The true value of taxable property, except property of
a railroad company, required by section 5727.06 of the Revised 
Code to be assessed by the tax commissioner shall not include 
the allowance for funds used during construction or interest 
during construction that has been capitalized on the public 
utility's books and records as part of the total cost of the 
taxable property. This division shall not apply to the taxable 
property of an electric company or a rural electric company, 
excluding transmission and distribution property, first placed 
into service after December 31, 2000, or to the taxable property
a person purchases, which includes transfers, if that property 
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2839 H. B. No. 15 Page 99
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was used in business by the seller prior to the purchase.
(F) The true value of watercraft owned or operated by a 
water transportation company shall be determined by multiplying 
the true value of the watercraft as determined under division 
(A) of this section by a fraction, the numerator of which is the
number of revenue-earning miles traveled by the watercraft in 
the waters of this state and the denominator of which is the 
number of revenue-earning miles traveled by the watercraft in 
all waters.
(G) The cost of property subject to a sale and leaseback 
transaction is the cost of the property as capitalized on the 
books and records of the public utility owning the property 
immediately prior to the sale and leaseback transaction.
(H) The cost as capitalized on the books and records of a 
public utility includes amounts capitalized that represent 
regulatory assets, if such amounts previously were included on 
the company's books and records as capitalized costs of taxable 
personal property.
(I) Any change in the composite annual allowances as 
prescribed by the commissioner on a prospective basis shall not 
be admissible in any judicial or administrative action or 
proceeding as evidence of value with regard to prior years' 
taxes. Information about the business, property, or transactions
of any taxpayer obtained by the commissioner for the purpose of 
adopting or modifying the composite annual allowances shall not 
be subject to discovery or disclosure.
Sec. 5727.111. The taxable property of each public 
utility, except a railroad company, and of each interexchange 
telecommunications company shall be assessed at the following 
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2868 H. B. No. 15 Page 100
As Introduced
percentages of true value:
(A) In the case of a rural electric company, fifty per 
cent in the case of its taxable transmission and distribution 
property and its energy conversion equipment, and twenty-five 
per cent for 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;
(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;
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2896 H. B. No. 15 Page 101
As Introduced
(2) For tax year 2006 and each tax year thereafter, in In 
the case of an electric company, eighty-five eighty-nine per 
cent in the case of its taxable transmission and distribution 
property and its energy conversion equipment, and twenty-four 
per cent for all its other 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 Eighty-
nine per cent in the case of an energy company , twenty-four per 
cent in the case of its taxable production equipment, and 
eighty-five per cent for all its other taxable property .
Sec. 5727.15. When all the taxable property of a public 
utility is located in one taxing district, the tax commissioner 
shall apportion the total taxable value thereof to that taxing 
district. 
When taxable property of a public utility is located in 
more than one taxing district, the commissioner shall apportion 
the total taxable value thereof among the taxing districts as 
follows:
(A)(1) In the case of a telegraph, interexchange 
telecommunications, or telephone company that owns miles of wire
in this state, the value apportioned to each taxing district 
shall be the same percentage of the total value apportioned to 
all taxing districts as the miles of wire owned by the company 
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2925 H. B. No. 15 Page 102
As Introduced
within the taxing district are to the total miles of wire owned 
by the company within this state;
(2) In the case of a telegraph, interexchange 
telecommunications, or telephone company that does not own miles
of wire in this state, the value apportioned to each taxing 
district shall be the same percentage of the total value 
apportioned to all taxing districts as the cost of the taxable 
property physically located in the taxing district is of the 
total cost of all taxable property physically located in this 
state.
(B) In the case of a railroad company:
(1) The taxable value of real and personal property not 
used in railroad operations shall be apportioned according to 
its situs;
(2) The taxable value of personal property used in 
railroad operations shall be apportioned to each taxing district
in proportion to the miles of track and trackage rights, 
weighted to reflect the relative use of such personal property 
in each taxing district;
(3) The taxable value of real property used in railroad 
operations shall be apportioned to each taxing district in 
proportion to its relative value in each taxing district.
(C)(1) Prior to tax year 2001, in the case of an electric 
company:
(a) Seventy per cent of the taxable value of all 
production equipment and of all station equipment that is not 
production equipment shall be apportioned to the taxing district
in which such property is physically located; and
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2953 H. B. No. 15 Page 103
As Introduced
(b) The remaining value of such property, together with 
the value of all other taxable personal property, shall be 
apportioned to each taxing district in the per cent that the 
cost of all transmission and distribution property physically 
located in the taxing district is of the total cost of all 
transmission and distribution property physically located in 
this state.
(c) If an electric company's taxable value for the current
year includes the value of any production equipment at a plant 
at which the initial cost of the plant's production equipment 
exceeded one billion dollars, then prior to making the 
apportionments required for that company by division (C)(1)(a) 
and (b) of this section, the tax commissioner shall do the 
following:
(i) Subtract four hundred twenty million dollars from the 
total taxable value of the production equipment at that plant 
for the current tax year.
(ii) Multiply the difference thus obtained by a fraction, 
the numerator of which is the portion of the taxable value of 
that plant's production equipment included in the company's 
total value for the current tax year, and the denominator of 
which is the total taxable value of such equipment included in 
the total taxable value of all electric companies for such year;
(iii) Apportion the product thus obtained to taxing 
districts in the manner prescribed in division (C)(1)(b) of this
section.
(iv) Deduct the amounts so apportioned from the taxable 
value of the company's production equipment at the plant, prior 
to making the apportionments required by divisions (C)(1)(a) and
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2982 H. B. No. 15 Page 104
As Introduced
(b) of this section.
For purposes of division (C)(1)(c) of this section, 
"initial cost" applies only to production equipment of plants 
placed in commercial operation on or after January 1, 1987, and 
means the cost of all production equipment at a plant for the 
first year the plant's equipment was subject to taxation.
(2) For tax year 2001 and thereafter, in the case of an 
electric company:
(a) The taxable value of all production equipment shall be
apportioned to the taxing district in which such property is 
physically located; and
(b) The value of taxable personal property, including 
energy conversion equipment but excluding production equipment, 
shall be apportioned to each taxing district in the proportion 
that the cost of such other taxable personal property physically
located in each taxing district is of the total cost of such 
other taxable personal property physically located in this 
state.
(D) For tax year 2011 and thereafter, in the case of the 
taxable property of an energy company:
(1) The taxable value of all production equipment shall be
apportioned to the taxing district in which such property is 
physically located.
(2) The taxable value of all other taxable property, 
including energy conversion equipment, shall be apportioned to 
each taxing district in the proportion that the cost of such 
other taxable property physically located in each taxing 
district is of the total cost of such other taxable property 
physically located in this state.
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3011 H. B. No. 15 Page 105
As Introduced
(E) (C) In the case of all other public utilities, the 
taxable value of the property to be apportioned shall be 
apportioned to each taxing district in the proportion to  that 
the cost of such property physically located in that taxing 
district is of the entire cost of such property physically 
located within this state.
Section 2. That existing sections 4906.04, 4928.01, 
4928.05, 4928.08, 4928.14, 4928.141, 4928.142, 4928.144, 
4928.17, 4928.20, 4928.23, 4928.231, 4928.232, 4928.34, 
4928.542, 4928.64, 4928.645, 4929.20, 5727.01, 5727.031, 
5727.06, 5727.11, 5727.111, and 5727.15 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, 4928.143, 4928.148, and 
4928.642 of the Revised Code are hereby repealed.
Section 4. (A) Notwithstanding the repeal by this act of 
section 4928.148 of the Revised Code, a rider or cost recovery 
mechanism for a legacy generation resource authorized under an 
electric distribution utility's electric security plan in effect
on the effective date of this section shall remain in effect 
until the termination date of the electric security plan. After 
the termination date of the electric security plan, 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.
(B) 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 
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3041 H. B. No. 15 Page 106
As Introduced
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. 
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. 
Section 5. The amendment by this act of sections 5727.01, 
5727.031, 5727.06, 5727.11, 5727.111, and 5727.15 of the Revised
Code applies to tax years beginning on or after the effective 
date of this section.
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