As Introduced
136th General Assembly
Regular Session H. B. No. 66
2025-2026
Representatives Brennan, Dean
Cosponsors: Representatives Rader, Synenberg, Sigrist, Troy, Russo, McNally,
Sweeney, Denson, Baker, Brewer, Upchurch, Jarrells, Abdullahi
A B I L L
To amend section 4928.01 and to repeal section
4928.148 of the Revised Code to repeal the
legacy generation resource provisions of H.B. 6
of the 133rd General Assembly and provide
customers refunds.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 4928.01 of the Revised Code be
amended to read as follows:
Sec. 4928.01. (A) As used in this chapter:
(1) "Ancillary service" means any function necessary to
the provision of electric transmission or distribution service
to a retail customer and includes, but is not limited to,
scheduling, system control, and dispatch services; reactive
supply from generation resources and voltage control service;
reactive supply from transmission resources service; regulation
service; frequency response service; energy imbalance service;
operating reserve-spinning reserve service; operating reserve-
supplemental reserve service; load following; back-up supply
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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.
(7) "Electric light company" has the same meaning as in
section 4905.03 of the Revised Code and includes an electric
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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 a noncompetitive
retail electric service in this state or in the businesses of
supplying both a noncompetitive and a competitive retail
electric service in this state. "Electric utility" excludes a
municipal electric utility or a billing and collection agent.
(12) "Firm electric service" means electric service other
than nonfirm electric service.
(13) "Governmental aggregator" means a legislative
authority of a municipal corporation, a board of township
trustees, or a board of county commissioners acting as an
aggregator for the provision of a competitive retail electric
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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
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
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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.
(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
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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
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
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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
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
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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
sulfur trioxide in accordance with the American society of
testing and materials standard D1757A or a reduction of metal
oxide emissions in accordance with standard D5142 of that
society, or clean coal technology that includes the design
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capability to control or prevent the emission of carbon dioxide,
which design capability the commission shall adopt by rule and
shall be based on economically feasible best available
technology or, in the absence of a determined best available
technology, shall be of the highest level of economically
feasible design capability for which there exists generally
accepted scientific opinion;
(d) Advanced nuclear energy technology consisting of
generation III technology as defined by the nuclear regulatory
commission; other, later technology; or significant improvements
to existing facilities;
(e) Any fuel cell used in the generation of electricity,
including, but not limited to, a proton exchange membrane fuel
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or
solid oxide fuel cell;
(f) Advanced solid waste or construction and demolition
debris conversion technology, including, but not limited to,
advanced stoker technology, and advanced fluidized bed
gasification technology, that results in measurable greenhouse
gas emissions reductions as calculated pursuant to the United
States environmental protection agency's waste reduction model
(WARM);
(g) Demand-side management and any energy efficiency
improvement;
(h) Any new, retrofitted, refueled, or repowered
generating facility located in Ohio, including a simple or
combined-cycle natural gas generating facility or a generating
facility that uses biomass, coal, modular nuclear, or any other
fuel as its input;
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(i) Any uprated capacity of an existing electric
generating facility if the uprated capacity results from the
deployment of advanced technology.
"Advanced energy resource" does not include a waste energy
recovery system that is, or has been, included in an energy
efficiency program of an electric distribution utility pursuant
to requirements under section 4928.66 of the Revised Code.
(35) "Air contaminant source" has the same meaning as in
section 3704.01 of the Revised Code.
(36) "Cogeneration technology" means technology that
produces electricity and useful thermal output simultaneously.
(37)(a) "Renewable energy resource" means any of the
following:
(i) Solar photovoltaic or solar thermal energy;
(ii) Wind energy;
(iii) Power produced by a hydroelectric facility;
(iv) Power produced by a small hydroelectric facility,
which is a facility that operates, or is rated to operate, at an
aggregate capacity of less than six megawatts;
(v) Power produced by a run-of-the-river hydroelectric
facility placed in service on or after January 1, 1980, that is
located within this state, relies upon the Ohio river, and
operates, or is rated to operate, at an aggregate capacity of
forty or more megawatts;
(vi) Geothermal energy;
(vii) Fuel derived from solid wastes, as defined in
section 3734.01 of the Revised Code, through fractionation,
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biological decomposition, or other process that does not
principally involve combustion;
(viii) Biomass energy;
(ix) Energy produced by cogeneration technology that is
placed into service on or before December 31, 2015, and for
which more than ninety per cent of the total annual energy input
is from combustion of a waste or byproduct gas from an air
contaminant source in this state, which source has been in
operation since on or before January 1, 1985, provided that the
cogeneration technology is a part of a facility located in a
county having a population of more than three hundred sixty-five
thousand but less than three hundred seventy thousand according
to the most recent federal decennial census;
(x) Biologically derived methane gas;
(xi) Heat captured from a generator of electricity,
boiler, or heat exchanger fueled by biologically derived methane
gas;
(xii) Energy derived from nontreated by-products of the
pulping process or wood manufacturing process, including bark,
wood chips, sawdust, and lignin in spent pulping liquors.
"Renewable energy resource" includes, but is not limited
to, any fuel cell used in the generation of electricity,
including, but not limited to, a proton exchange membrane fuel
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or
solid oxide fuel cell; 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
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assembly, September 10, 2012, except that a waste energy
recovery system described in division (A)(38)(b) of this section
may be included only if it was placed into service between
January 1, 2002, and December 31, 2004; storage facility that
will promote the better utilization of a renewable energy
resource; or distributed generation system used by a customer to
generate electricity from any such energy.
"Renewable energy resource" does not include a waste
energy recovery system that is, or was, on or after January 1,
2012, included in an energy efficiency program of an electric
distribution utility pursuant to requirements under section
4928.66 of the Revised Code.
(b) As used in division (A)(37) of this section,
"hydroelectric facility" means a hydroelectric generating
facility that is located at a dam on a river, or on any water
discharged to a river, that is within or bordering this state or
within or bordering an adjoining state and meets all of the
following standards:
(i) The facility provides for river flows that are not
detrimental for fish, wildlife, and water quality, including
seasonal flow fluctuations as defined by the applicable
licensing agency for the facility.
(ii) The facility demonstrates that it complies with the
water quality standards of this state, which compliance may
consist of certification under Section 401 of the "Clean Water
Act of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and
demonstrates that it has not contributed to a finding by this
state that the river has impaired water quality under Section
303(d) of the "Clean Water Act of 1977," 114 Stat. 870, 33
U.S.C. 1313.
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(iii) The facility complies with mandatory prescriptions
regarding fish passage as required by the federal energy
regulatory commission license issued for the project, regarding
fish protection for riverine, anadromous, and catadromous fish.
(iv) The facility complies with the recommendations of the
Ohio environmental protection agency and with the terms of its
federal energy regulatory commission license regarding watershed
protection, mitigation, or enhancement, to the extent of each
agency's respective jurisdiction over the facility.
(v) The facility complies with provisions of the
"Endangered Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531
to 1544, as amended.
(vi) The facility does not harm cultural resources of the
area. This can be shown through compliance with the terms of its
federal energy regulatory commission license or, if the facility
is not regulated by that commission, through development of a
plan approved by the Ohio historic preservation office, to the
extent it has jurisdiction over the facility.
(vii) The facility complies with the terms of its federal
energy regulatory commission license or exemption that are
related to recreational access, accommodation, and facilities
or, if the facility is not regulated by that commission, the
facility complies with similar requirements as are recommended
by resource agencies, to the extent they have jurisdiction over
the facility; and the facility provides access to water to the
public without fee or charge.
(viii) The facility is not recommended for removal by any
federal agency or agency of any state, to the extent the
particular agency has jurisdiction over the facility.
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(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
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
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of at least sixty per cent, with at least twenty per cent of the
system's total useful energy in the form of thermal energy.
(41) "Legacy generation resource" means all generating
facilities owned directly or indirectly by a corporation that
was formed prior to 1960 by investor-owned utilities for the
original purpose of providing power to the federal government
for use in the nation's defense or in furtherance of national
interests, including the Ohio valley electric corporation.
(42) "Prudently incurred costs related to a legacy
generation resource" means costs, including deferred costs,
allocated pursuant to a power agreement approved by the federal
energy regulatory commission that relates to a legacy generation
resource, less any revenues realized from offering the
contractual commitment for the power agreement into the
wholesale markets, provided that where the net revenues exceed
net costs, those excess revenues shall be credited to customers.
Such costs shall exclude any return on investment in common
equity and, in the event of a premature retirement of a legacy
generation resource, shall exclude any recovery of remaining
debt. Such costs shall include any incremental costs resulting
from the bankruptcy of a current or former sponsor under such
power agreement or co-owner of the legacy generation resource if
not otherwise recovered through a utility rate cost recovery
mechanism.
(43) "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
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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.
Section 2. That existing section 4928.01 of the Revised
Code is hereby repealed.
Section 3. That section 4928.148 of the Revised Code is
hereby repealed.
Section 4. (A) Any mechanism for retail recovery of
prudently incurred costs authorized and established pursuant to
division (A) of section 4928.148 of the Revised Code as that
section existed prior to the effective date of this section is
hereby terminated.
(B) Any mechanism for retail recovery of costs for 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, that was authorized under section 4928.143
of the Revised Code, or any other section of the Revised Code,
and that was in effect on or before the effective date of H.B. 6
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of the 133rd General Assembly shall not be revived, reimposed,
reestablished, or in any way reinstituted as a result of this
act, or Public Utilities Commission order, decision, or rule,
and no amount, charge, mechanism, or rider related to such
mechanism may be assessed or collected from customers.
Section 5. Upon the effective date of this section, and
notwithstanding section 4905.32 of the Revised Code and any
other provision in Title XLIX of the Revised Code to the
contrary, the full amount of revenues collected from customers
through an amount, charge, mechanism, or rider established under
section 4928.148 of the Revised Code, as that section existed
prior to the effective date of this section, shall be promptly
refunded to customers from whom the revenues were collected.
Refunds paid to customers shall be allocated to customer classes
in the same proportion as originally collected.
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