Amend competitive retail electric service law

(136th General Assembly)

(Substitute
House Bill Number 15)

AN
ACT

To amend sections 122.6511,
3313.372, 3313.373, 4905.03, 4906.01, 4906.03, 4906.06, 4906.07,
4906.10, 4909.04, 4909.05, 4909.052, 4909.06, 4909.07, 4909.08,
4909.15, 4909.156, 4909.173, 4909.174, 4909.18, 4909.19, 4909.191,
4909.42, 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, 4933.81, 4935.04, 5727.01,
5727.111, and 5727.75; to enact sections 122.161, 3313.377, 3313.378,
4903.27, 4905.23, 4905.311, 4905.321, 4905.331, 4909.041, 4909.042,
4909.159, 4909.181, 4909.192, 4909.193, 4909.421, 4928.041, 4928.101,
4928.102, 4928.103, 4928.104, 4928.105, 4928.149, 4928.1410, 4928.73,
4928.83, 4928.86, 4929.221, 4929.222, and 5727.76; and to repeal
sections 3706.40, 3706.41, 3706.43, 3706.431, 3706.45, 3706.46,
3706.49, 3706.491, 3706.55, 3706.551, 3706.59, 3706.63, 3706.65,
4906.105, 4928.143, 4928.148, 4928.47, and 4928.642 of the Revised
Code to amend the competitive retail electric service law, modify
taxation of certain public utility property, and repeal parts of H.B.
6 of the 133rd General Assembly.

Be
it enacted by the General Assembly of the State of Ohio:

Section
1.
That
sections 122.6511, 3313.372, 3313.373, 4905.03, 4906.01, 4906.03,
4906.06, 4906.07, 4906.10, 4909.04, 4909.05, 4909.052, 4909.06,
4909.07, 4909.08, 4909.15, 4909.156, 4909.173, 4909.174, 4909.18,
4909.19, 4909.191, 4909.42, 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, 4933.81,
4935.04, 5727.01, 5727.111, and 5727.75 be amended and sections
122.161, 3313.377, 3313.378, 4903.27, 4905.23, 4905.311, 4905.321,
4905.331, 4909.041, 4909.042, 4909.159, 4909.181, 4909.192, 4909.193,
4909.421, 4928.041, 4928.101, 4928.102, 4928.103, 4928.104, 4928.105,
4928.149, 4928.1410, 4928.73, 4928.83, 4928.86, 4929.221, 4929.222,
and 5727.76 of the Revised Code be enacted to read as follows:

Sec.
122.161.
(A)
As used in this section:

(1)
"Subdivision" means a municipal corporation, township, or
county.

(2)
"Legislative authority" means the legislative authority of
a municipal corporation, a board of the township trustees, or a board
of county commissioners.

(3)
"Subdivision's territory" means, in the case of a municipal
corporation, the territory of the municipal corporation; in the case
of a township, the unincorporated territory of the township; or, in
the case of a county, the unincorporated territory of the county.

(4)
"Brownfield" has the same meaning as in section 122.6511 of
the Revised Code.

(5)
"Former coal mine" means a location that was, but is no
longer, used in connection with the extraction of coal from its
natural deposit in the earth.

(6)
"Qualifying property" has the same meaning as in section
5727.76 of the Revised Code.

(B)
A legislative authority may adopt and certify to the director of
development an ordinance or resolution requesting that the director
designate the site of a brownfield or former coal mine within the
subdivision's territory as a priority investment area. The ordinance
or resolution shall describe the boundaries of the proposed area and
shall specify that qualifying property in the priority investment
area shall be exempt from taxation for five years pursuant to section
5727.76 of the Revised Code.

The
director, upon receipt of that certification, shall designate the
proposed area as a priority investment area if the director
determines that the area meets the designation standards set forth in
rules adopted by the director. Those standards shall specify that the
director must prioritize the designation of areas negatively impacted
by the decline of the coal industry.

The
director shall notify the legislative authority of the director's
decision within ninety days after receiving the certified ordinance
or resolution. If the director does not issue a decision within those
ninety days, the request for designation shall be considered approved
by operation of law.

(C)
The director of development shall immediately notify the public
utilities commission, the power siting board, and the tax
commissioner if the director approves the designation of a priority
investment area under division (B) of this section or if the
designation is approved by operation of law.

Sec.
122.6511.
(A)
As used in this section and section 122.6512 of the Revised Code:

(1)
"Brownfield" means an abandoned, idled, or under-used
industrial, commercial, or institutional property where expansion or
redevelopment is complicated by known or potential releases of
hazardous substances or petroleum.

(2)
"Lead entity" means a county, township, municipal
corporation, port authority, conservancy district, park district or
other similar park authority, county land reutilization corporation,
or organization for profit.

(3)
"Remediation" means any action to contain, remove, or
dispose of hazardous substances or petroleum at a brownfield.
"Remediation" includes the acquisition of a brownfield,
demolition performed at a brownfield, and the installation or upgrade
of the minimum amount of infrastructure that is necessary to make a
brownfield operational for economic development activity.

(4)
"County land reutilization corporation" has the same
meaning as in section 1724.01 of the Revised Code.

(5)
"Priority investment area eligible project" means some or
all of the following activities necessary or conducive for
generating, transporting, storing, or transmitting electricity at the
site of a brownfield or former coal mine located in a priority
investment area designated under section 122.161 of the Revised Code:

(a)
Environmental or cultural resource site assessments;

(b)
The monitoring, remediation, cleanup, or containment of land to
remove any condition or substance regulated by state or federal
environmental laws or regulations, including hazardous substances,
hazardous wastes, solid wastes, or petroleum;

(c)
The demolition and removal of existing structures, grading, or other
site work necessary to make a site or certain real property that
includes a brownfield or former coal mine usable for economic
development;

(d)
The development of a remediation and reuse plan;

(e)
The development or operation of a site for energy generation or
battery storage.

(B)(1)
There is hereby created the brownfield remediation program to award
grants for
priority
investment area eligible projects and
the
remediation of brownfield sites throughout Ohio. The program shall be
administered by the director of development pursuant to this section
and rules adopted pursuant to division (B)(2) of this section.

(2)
The director shall adopt rules, under Chapter 119. of the Revised
Code, for the administration of the program. The rules shall include
provisions for determining project and project sponsor eligibility,
program administration, and any other provisions the director finds
necessary.

(3)
The director shall not award a grant exceeding ten million dollars to
a priority investment area eligible project. Grants for such projects
may not be used for the construction or operation of electric
generating infrastructure.

(C)(1)
There is hereby created in the state treasury the brownfield
remediation fund. The fund shall consist of moneys appropriated to it
by the general assembly, and investment earnings on moneys in the
fund shall be credited to the fund.

The
director shall reserve funds from each appropriation to the fund to
each county in the state. The amount reserved shall be one million
dollars per county, or, if an appropriation is less than eighty-eight
million dollars, a proportionate amount to each county. Amounts
reserved pursuant to this section are reserved for one calendar year
from the date of the appropriation. After one calendar year, the
funds shall be available pursuant to division (D) of this section.

(2)
A lead entity may submit an initial grant application for the use of
funds reserved under division (C)(1) of this section to the director.
The lead entity may later submit an amended application to the
director, and the director may accept and approve that application
for use of funds up to the amount reserved for that county.

(D)
Funds from an appropriation not reserved under division (C)(1) of
this section shall be available for grants to projects located
anywhere in the state, and grants from those funds shall be awarded
to qualifying projects on a first-come, first-served basis.

(E)
The amendments to this section by
this
act
H.B.
315 of the 135th general assembly
apply
to new projects that are applied for and awarded funding by the
director of development on and after
the
effective date of this amendment
July
1, 2025
.
Projects that are applied for or were applied for under this section
prior to
that
date
July
1, 2025,
shall
be governed by this section as it existed prior to
that
date
July
1, 2025
.

Sec.
3313.372.
(A)
As used in this section, "energy conservation measure"
means an installation or modification of an installation in, or
remodeling of, a building, to reduce energy consumption. It includes:

(1)
Insulation of the building structure and systems within the building;

(2)
Storm windows and doors, multiglazed windows and doors, heat
absorbing or heat reflective glazed and coated window and door
systems, additional glazing, reductions in glass area, and other
window and door system modifications that reduce energy consumption;

(3)
Automatic energy control systems;

(4)
Heating, ventilating, or air conditioning system modifications or
replacements;

(5)
Caulking and weatherstripping;

(6)
Replacement or modification of lighting fixtures to increase the
energy efficiency of the system without increasing the overall
illumination of a facility, unless such increase in illumination is
necessary to conform to the applicable state or local building code
for the proposed lighting system;

(7)
Energy recovery systems;

(8)
Cogeneration systems that produce steam or forms of energy such as
heat, as well as electricity, for use primarily within a building or
complex of buildings;

(9)

Solar
panels;

(10)

Any
other modification, installation, or remodeling approved by the Ohio
facilities construction commission as an energy conservation measure.

(B)
A board of education of a city, exempted village, local, or joint
vocational school district may enter into an installment payment
contract for the purchase and installation of energy conservation
measures. The provisions of such installment payment contracts
dealing with interest charges and financing terms shall not be
subject to the competitive bidding requirements of section 3313.46 of
the Revised Code, and shall be on the following terms:

(1)
Not less than one-fifteenth of the costs thereof shall be paid within
two years from the date of purchase.

(2)
The remaining balance of the costs thereof shall be paid within
fifteen years from the date of purchase.

The
provisions of any installment payment contract entered into pursuant
to this section shall provide that all payments, except payments for
repairs and obligations on termination of the contract prior to its
expiration, shall not exceed the calculated energy, water, or waste
water cost savings, avoided operating costs, and avoided capital
costs attributable to the one or more measures over a defined period
of time. Those payments shall be made only to the extent that the
savings described in this division actually occur. The energy
services company shall warrant and guarantee that the energy
conservation measures shall realize guaranteed savings and shall be
responsible to pay an amount equal to any savings shortfall.

An
installment payment contract entered into by a board of education
under this section shall require the board to contract in accordance
with division (A) of section 3313.46 of the Revised Code for the
installation, modification, or remodeling of energy conservation
measures unless division (A) of section 3313.46 of the Revised Code
does not apply pursuant to division (B)(3) of that section, in which
case the contract shall be awarded through a competitive selection
process pursuant to rules adopted by the facilities construction
commission.

An
installment payment contract entered into by a board of education
under this section may include services for measurement and
verification of energy savings associated with the guarantee. The
annual cost of measurement and verification services shall not exceed
ten per cent of the guaranteed savings in any year of the installment
payment contract.

(C)
If a board of education determines that a surety bond is necessary to
secure energy, water, or waste water cost savings guaranteed in a
contract entered into by the board of education under this section,
the energy services company shall provide a surety bond that
satisfies all of the following requirements:

(1)
The penal sum of the surety bond for the first guarantee year shall
equal the amount of savings included in the annual guaranteed savings
amount that is measured and calculated in accordance with the
measurement and verification plan included in the contract, but may
not include guaranteed savings that are not measured or that are
stipulated in the contract. The annual guaranteed savings amount
shall include only the savings guaranteed in the contract for the
one-year term that begins on the first day of the first savings
guarantee year and may not include amounts from subsequent years.

(2)
The surety bond shall have a term of not more than one year unless
renewed. At the option of the board of education, the surety bond may
be renewed for one or two additional terms, each term not to exceed
one year. The surety bond may not be renewed or extended so that it
is in effect for more than three consecutive years.

In
the event of a renewal, the penal sum of the surety bond for each
renewed year shall be revised so that the penal sum equals the annual
guaranteed savings amount for such renewal year that is measured and
calculated in accordance with the measurement and verification plan
included in the contract, but may not include guaranteed savings that
are not measured or that are stipulated in the contract. Regardless
of the number of renewals of the bond, the aggregate liability under
each renewed bond may not exceed the penal sum stated in the renewal
certificate for the applicable renewal year.

(3)
The surety bond for the first year shall be issued within thirty days
of the commencement of the first savings guarantee year under the
contract.

In
the event of renewal, the surety shall deliver to the board of
education a renewal certificate reflecting the revised penal sum
within thirty days of the board of education's request. The board of
education shall deliver the request for renewal not less than thirty
days prior to the expiration date of the surety bond then in
existence. A surety bond furnished pursuant to section 153.54 of the
Revised Code shall not secure obligations related to energy, water,
or waste water cost savings as referenced in division (C) of this
section.

(D)
The board may issue the notes of the school district signed by the
president and the treasurer of the board and specifying the terms of
the purchase and securing the deferred payments provided in this
section, payable at the times provided and bearing interest at a rate
not exceeding the rate determined as provided in section 9.95 of the
Revised Code. The notes may contain an option for prepayment and
shall not be subject to Chapter 133. of the Revised Code. In the
resolution authorizing the notes, the board may provide, without the
vote of the electors of the district, for annually levying and
collecting taxes in amounts sufficient to pay the interest on and
retire the notes, except that the total net indebtedness of the
district without a vote of the electors incurred under this and all
other sections of the Revised Code, except section 3318.052 of the
Revised Code, shall not exceed one per cent of the district's tax
valuation. Revenues derived from local taxes or otherwise, for the
purpose of conserving energy or for defraying the current operating
expenses of the district, may be applied to the payment of interest
and the retirement of such notes. The notes may be sold at private
sale or given to the energy services company under the installment
payment contract authorized by division (B) of this section.

(E)
Debt incurred under this section shall not be included in the
calculation of the net indebtedness of a school district under
section 133.06 of the Revised Code.

(F)
No school district board shall enter into an installment payment
contract under division (B) of this section unless it first obtains a
report of the costs of the energy conservation measures and the
savings thereof as described under division (G)(1) of section 133.06
of the Revised Code as a requirement for issuing energy securities,
makes a finding that the amount spent on such measures is not likely
to exceed the amount of money it would save in energy costs and
resultant operational and maintenance costs as described in that
division, except that that finding shall cover the ensuing fifteen
years, and the facilities construction commission determines that the
district board's findings are reasonable and approves the contract as
described in that division.

The
district board shall monitor the savings and maintain a report of
those savings, which shall be submitted to the commission in the same
manner as required by division (G) of section 133.06 of the Revised
Code in the case of energy securities.

(G)
A board of education may apply to the Ohio facilities construction
commission for a loan from the school energy performance contracting
loan fund, established by section 3313.378 of the Revised Code, for
purposes of paying for all or part of an installment contract under
division (B) of this section.

Sec.
3313.373.
(A)
As used in this section:

(1)
"Energy saving measure" means both of the following:

(a)
The acquisition and installation, by purchase, lease, lease purchase,
lease with an option to buy, or installment purchase, of an energy
conservation measure as defined in section 3313.372 of the Revised
Code and any attendant architectural and engineering consulting
services.

(b)
Architectural and engineering consulting services related to energy
conservation.

(2)
"Shared-savings contract" means a contract for one or more
energy savings measures, which contract provides that all payments,
except payments for maintenance and repairs and obligations on
termination of the contract prior to its expiration, are to be a
stated percentage of calculated savings of energy costs attributable
to the energy saving measure over a defined period of time and are to
be made only to the extent that such savings occur. A contract that
requires any additional capital investment or contribution of funds,
other than funds available from state or federal energy grants, or
that is for an initial term of longer than ten years is not a
shared-savings contract.

(B)
The board of education of a city, local, exempted village, or joint
vocational school district may enter into a shared-savings contract
with any person experienced in the design and implementation of
energy saving measures for buildings owned or rented by the board.
Such contract is not subject to section 3313.46 of the Revised Code.
If the contract is for a term extending beyond the fiscal year, it
shall be considered to be a continuing contract within the meaning of
division (D) of section 5705.41 of the Revised Code. A board of
education entering into an installment contract under this section
shall also comply with section 3313.372 of the Revised Code.

(C)
In the case of a shared-savings contract running beyond the fiscal
year in which it is entered into, the board shall include in its
annual appropriations measure for each subsequent year any amounts
payable under shared-savings contracts during such year and shall
furnish the certification required by section 5705.44 of the Revised
Code, but the failure of a board to make such an appropriation or
furnish the certificates referred to in division (D) of section
5705.41, or 5705.412 or 5705.44 of the Revised Code, shall not affect
the validity of the shared-savings contract or the board's
obligations under the contract.

(D)
A board of education may apply to the Ohio facilities construction
commission for a loan from the school energy performance contracting
loan fund, established by section 3313.378 of the Revised Code, for
purposes of paying for all or part of a shared-savings contract under
this section.

Sec.
3313.377.
(A)
As used in this section:

(1)
"Energy conservation measure" has the same meaning as in
section 3313.372 of the Revised Code.

(2)
"Energy saving measure" has the same meaning as in section
3313.373 of the Revised Code.

(B)
The Ohio facilities construction commission may issue a loan from
funds in the school energy performance contracting loan fund created
in section 3313.378 of the Revised Code to a board of education of a
city, exempted village, local, or joint vocational school district
that applies for a loan under section 3313.372 or 3313.373 of the
Revised Code.

(C)
Nothing in this section prohibits a board of education that receives
a loan under this section from utilizing any other energy efficiency
program.

(D)
The terms of a loan issued under this section shall be as follows:

(1)
Two per cent annual interest on the loan;

(2)
The full loan amount, plus interest, shall be repaid in not more than
ten years from the issuance of the loan;

(3)
Repayment on the loan begins six months after the installation of the
energy conservation measures is complete or the implementation of
energy savings measures is completed;

(4)
Any other provision considered appropriate by the commission.

(E)
All repayment amounts for any loans issued under this section shall
be made to the commission. The commission shall deposit all repayment
amounts received in the school energy performance contracting loan
fund created in section 3313.378 of the Revised Code.

(F)
If the commission enters into an agreement with a board for a loan
under this section, the commission shall promptly direct the
treasurer of state to remit money from the school energy performance
contracting loan fund to the board as provided in the terms of the
agreement.

(G)
The commission shall adopt rules to implement this section, including
a loan application.

Sec.
3313.378.
(A)
The school energy performance contracting loan fund is created in the
custody of the treasurer of state, but is not part of the state
treasury. The money in the fund shall be used for purposes of funding
loans issued under section 3313.377 of the Revised Code. The fund
shall consist of the funds transferred from the solar generation
fund, repayments of loans from this fund, interest on amounts in the
school energy performance contracting loan fund, and any
appropriations, grants, or gifts made to the fund.

(B)
The fund shall be administered by the Ohio facilities construction
commission, and the commission shall request the treasurer of state
to create the account for the fund. The treasurer of state shall
distribute the money in the fund in accordance with directions
provided by the commission.

Sec.
4903.27.
For
all cases involving an application pursuant to section 4909.18 of the
Revised Code, the public utilities commission shall not permit any
new discovery beginning not later than two hundred fifteen days after
the application is determined to be complete.

Sec.
4905.03.
As
used in this chapter, any person, firm, copartnership, voluntary
association, joint-stock association, company, or corporation,
wherever organized or incorporated, is:

(A)
A telephone company, when engaged in the business of transmitting
telephonic messages to, from, through, or in this state;

(B)
A for-hire motor carrier, when engaged in the business of
transporting persons or property by motor vehicle for compensation,
except when engaged in any of the operations in intrastate commerce
described in divisions (B)(1) to (9) of section 4921.01 of the
Revised Code, but including the carrier's agents, officers, and
representatives, as well as employees responsible for hiring,
supervising, training, assigning, or dispatching drivers and
employees concerned with the installation, inspection, and
maintenance of motor-vehicle equipment and accessories;

(C)
An electric light company, when engaged in the business of supplying
electricity for light, heat, or power purposes to consumers within
this state, including supplying electric transmission service for
electricity delivered to consumers in this state, but excluding a
regional transmission organization approved by the federal energy
regulatory commission
;

.

An
electric light company does not include a self-generator or
mercantile customer self-power system.

(D)
A gas company, when engaged in the business of supplying artificial
gas for lighting, power, or heating purposes to consumers within this
state or when engaged in the business of supplying artificial gas to
gas companies or to natural gas companies within this state, but a
producer engaged in supplying to one or more gas or natural gas
companies, only such artificial gas as is manufactured by that
producer as a by-product of some other process in which the producer
is primarily engaged within this state is not thereby a gas company.
All rates, rentals, tolls, schedules, charges of any kind, or
agreements between any gas company and any other gas company or any
natural gas company providing for the supplying of artificial gas and
for compensation for the same are subject to the jurisdiction of the
public utilities commission.

(E)
A natural gas company, when engaged in the business of supplying
natural gas for lighting, power, or heating purposes to consumers
within this state. Notwithstanding the above, neither the delivery
nor sale of Ohio-produced natural gas or Ohio-produced raw natural
gas liquids by a producer or gatherer under a public utilities
commission-ordered exemption, adopted before, as to producers, or
after, as to producers or gatherers, January 1, 1996, or the delivery
or sale of Ohio-produced natural gas or Ohio-produced raw natural gas
liquids by a producer or gatherer of Ohio-produced natural gas or
Ohio-produced raw natural gas liquids, either to a lessor under an
oil and gas lease of the land on which the producer's drilling unit
is located, or the grantor incident to a right-of-way or easement to
the producer or gatherer, shall cause the producer or gatherer to be
a natural gas company for the purposes of this section.

All
rates, rentals, tolls, schedules, charges of any kind, or agreements
between a natural gas company and other natural gas companies or gas
companies providing for the supply of natural gas and for
compensation for the same are subject to the jurisdiction of the
public utilities commission. The commission, upon application made to
it, may relieve any producer or gatherer of natural gas, defined in
this section as a gas company or a natural gas company, of compliance
with the obligations imposed by this chapter and Chapters 4901.,
4903., 4907., 4909., 4921., and 4923. of the Revised Code, so long as
the producer or gatherer is not affiliated with or under the control
of a gas company or a natural gas company engaged in the
transportation or distribution of natural gas, or so long as the
producer or gatherer does not engage in the distribution of natural
gas to consumers.

Nothing
in division (E) of this section limits the authority of the
commission to enforce sections 4905.90 to 4905.96 of the Revised
Code.

(F)
A pipe-line company, when engaged in the business of transporting
natural gas, oil, or coal or its derivatives through pipes or tubing,
either wholly or partly within this state, but not when engaged in
the business of the transport associated with gathering lines, raw
natural gas liquids, or finished product natural gas liquids;

(G)
A water-works company, when engaged in the business of supplying
water through pipes or tubing, or in a similar manner, to consumers
within this state;

(H)
A heating or cooling company, when engaged in the business of
supplying water, steam, or air through pipes or tubing to consumers
within this state for heating or cooling purposes;

(I)
A messenger company, when engaged in the business of supplying
messengers for any purpose;

(J)
A street railway company, when engaged in the business of operating
as a common carrier, a railway, wholly or partly within this state,
with one or more tracks upon, along, above, or below any public road,
street, alleyway, or ground, within any municipal corporation,
operated by any motive power other than steam and not a part of an
interurban railroad, whether the railway is termed street,
inclined-plane, elevated, or underground railway;

(K)
A suburban railroad company, when engaged in the business of
operating as a common carrier, whether wholly or partially within
this state, a part of a street railway constructed or extended beyond
the limits of a municipal corporation, and not a part of an
interurban railroad;

(L)
An interurban railroad company, when engaged in the business of
operating a railroad, wholly or partially within this state, with one
or more tracks from one municipal corporation or point in this state
to another municipal corporation or point in this state, whether
constructed upon the public highways or upon private rights-of-way,
outside of municipal corporations, using electricity or other motive
power than steam power for the transportation of passengers,
packages, express matter, United States mail, baggage, and freight.
Such an interurban railroad company is included in the term
"railroad" as used in section 4907.02 of the Revised Code.

(M)
A sewage disposal system company, when engaged in the business of
sewage disposal services through pipes or tubing, and treatment
works, or in a similar manner, within this state.

As
used in division (E) of this section, "natural gas"
includes natural gas that has been processed to enable consumption or
to meet gas quality standards or that has been blended with propane,
hydrogen, biologically derived methane gas, or any other artificially
produced or processed gas.

As
used in this section, "gathering lines" has the same
meaning as in section 4905.90 of the Revised Code, and "raw
natural gas liquids" and "finished product natural gas
liquids" have the same meanings as in section 4906.01 of the
Revised Code.

As
used in this section, "self-generator" has the same meaning
as in section 4928.01 of the Revised Code, and "mercantile
customer self-power system" has the same meaning as in section
4928.73 of the Revised Code.

Sec.
4905.23.
(A)
As used in this section, "base load electric generating
facility" means an electric generating plant and associated
facilities located in this state that primarily uses a nonrenewable
fuel source to generate electricity, including natural gas and
nuclear reaction, and that is not owned or operated by a public
utility, municipal corporation, or electric cooperative.

(B)
No person shall enter into a settlement to abandon, close, or shut
down either of the following:

(1)
A base load electric generating facility;

(2)
A generating plant owned or operated by a public utility.

Sec.
4905.311.
(A)
As used in this section, "electric distribution utility"
has the same meaning as in section 4928.01 of the Revised Code.

(B)
Notwithstanding any provision of the Revised Code to the contrary, an
electric distribution utility may supply behind the meter electric
generation service, provided that any behind the meter electric
generation facilities that the utility intends to use to supply such
service were filed with the public utilities commission under section
4928.47 of the Revised Code, as that section existed prior to its
repeal by H.B. 15 of the 136th General Assembly, no later than March
31, 2025.

(C)
No electric distribution utility shall recover any of the following
costs through any rate, charge, or recovery from retail electric
service customers that are not receiving behind the meter electric
generation service from the utility:

(1)
Costs associated with supplying behind the meter electric generation
service;

(2)
Costs associated with any behind the meter electric generation
service facility;

(3)
Stranded costs associated with the closing of any behind the meter
electric generation service facility or an end-use customer of the
behind the meter electric generation service ceasing operations.

(D)
No electric distribution utility shall offer direct, associated
inducements for contracting with the utility for any behind the meter
electric generation service.

(E)
The public utilities commission shall periodically audit all electric
distribution utilities that provide any behind the meter electric
generation service to ensure compliance with this section.

Sec.
4905.321.
(A)
Notwithstanding section 4905.32 of the Revised Code, all revenues
collected from customers by a public utility as part of a rider or
rates that are later found to be unreasonable, unlawful, or otherwise
improper by the supreme court shall be subject to refund from the
date of the issuance of the supreme court's decision until the date
when, on remand, the public utilities commission makes changes to the
rider or rates to implement the supreme court's decision.

(B)
The commission shall order the payment of the refunds described in
division (A) of this section in a manner designed to allocate the
refunds to customer classes in the same proportion as the charges
were originally collected.

(C)
The commission shall determine how to allocate any remaining funds
described in division (A) of this section that cannot be refunded for
whatever reason.

(D)
The commission shall order the payment of the funds described in
division (A) of this section and shall determine how to allocate any
remaining funds that cannot be refunded not more than thirty days
after the date of the issuance of the supreme court's decision.

Sec.
4905.331.
(A)
As used in this section:

(1)
"Electric distribution utility" has the same meaning as in
section 4928.01 of the Revised Code.

(2)
"Electric service" means any service involved in supplying
or arranging for the supply of electricity to ultimate consumers in
this state. "Electric service" includes "retail
electric service" as defined in section 4928.01 of the Revised
Code.

(3)
"Proceeding" includes a proceeding relating to electric
service under Chapters 4909. and 4928. of the Revised Code.

(B)
No electric distribution utility or its affiliate may do either of
the following to induce any party to a public utilities commission
proceeding to enter into a settlement of a matter pending before the
commission:

(1)
Make a cash payment to that party;

(2)
Enter into any agreement or any financial or private arrangement with
that party that is not made part of the public case record.

(C)
Notwithstanding division (B) of this section, the commission may do
any of the following:

(1)
Reasonably allocate costs among rate schedules;

(2)
Reasonably design rates within a rate schedule;

(3)
Approve reasonable rates designed for particular customers or classes
of customers;

(4)
Approve a resolution of a proceeding under section 4905.26 of the
Revised Code;

(5)
Approve payments to any governmental entity, nonprofit organization,
or other association for implementing low-income weatherization
service programs, subject to the following conditions:

(a)
The payments are at a rate that is reasonably tailored to the costs
of providing the programs.

(b)
The payments are for programs that are subject to an existing or new
audit procedure.

(c)
The payments are not for low-income weatherization education
programs.

Sec.
4906.01.
As
used in Chapter 4906. of the Revised Code:

(A)
"Person" means an individual, corporation, business trust,
association, estate, trust, or partnership or any officer, board,
commission, department, division, or bureau of the state or a
political subdivision of the state, or any other entity.

(B)(1)
"Major utility facility" means:

(a)
Electric generating plant and associated facilities designed for, or
capable of, operation at a capacity of fifty megawatts or more;

(b)
An electric transmission line and associated facilities of a design
capacity of one hundred kilovolts or more;

(c)
A gas pipeline that is greater than five hundred feet in length, and
its associated facilities, is more than nine inches in outside
diameter and is designed for transporting gas at a maximum allowable
operating pressure in excess of one hundred twenty-five pounds per
square inch.

(2)
"Major utility facility" does not include any of the
following:

(a)
Gas transmission lines over which an agency of the United States has
exclusive jurisdiction;

(b)
Any solid waste facilities as defined in section 6123.01 of the
Revised Code;

(c)
Electric distributing lines and associated facilities as defined by
the power siting board;

(d)
Any manufacturing facility that creates byproducts that may be used
in the generation of electricity as defined by the power siting
board;

(e)
Gathering lines, gas gathering pipelines, and processing plant gas
stub pipelines as those terms are defined in section 4905.90 of the
Revised Code and associated facilities;

(f)
Any gas processing plant as defined in section 4905.90 of the Revised
Code;

(g)
Natural gas liquids finished product pipelines;

(h)
Pipelines from a gas processing plant as defined in section 4905.90
of the Revised Code to a natural gas liquids fractionation plant,
including a raw natural gas liquids pipeline, or to an interstate or
intrastate gas pipeline;

(i)
Any natural gas liquids fractionation plant;

(j)
A production operation as defined in section 1509.01 of the Revised
Code, including all pipelines upstream of any gathering lines;

(k)
Any compressor stations used by the following:

(i)
A gathering line, a gas gathering pipeline, a processing plant gas
stub pipeline, or a gas processing plant as those terms are defined
in section 4905.90 of the Revised Code;

(ii)
A natural gas liquids finished product pipeline, a natural gas
liquids fractionation plant, or any pipeline upstream of a natural
gas liquids fractionation plant; or

(iii)
A production operation as defined in section 1509.01 of the Revised
Code.

(C)
"Commence to construct" means any clearing of land,
excavation, or other action that would adversely affect the natural
environment of the site or route of a major utility facility, but
does not include surveying changes needed for temporary use of sites
or routes for nonutility purposes, or uses in securing geological
data, including necessary borings to ascertain foundation conditions.

(D)
"Certificate" means a certificate of environmental
compatibility and public need issued by the power siting board under
section 4906.10 of the Revised Code or a construction certificate
issued by the board under rules adopted under
division

divisions

(E)

or
(F)
to
(H)

of section 4906.03 of the Revised Code.

(E)
"Gas" means natural gas, flammable gas, or gas that is
toxic or corrosive.

(F)
"Natural gas liquids finished product pipeline" means a
pipeline that carries finished product natural gas liquids to the
inlet of an interstate or intrastate finished product natural gas
liquid transmission pipeline, rail loading facility, or other
petrochemical or refinery facility.

(G)
"Large solar facility" means an electric generating plant
that consists of solar panels and associated facilities with a single
interconnection to the electrical grid that is a major utility
facility.

(H)
"Large wind farm" means an electric generating plant that
consists of wind turbines and associated facilities with a single
interconnection to the electrical grid that is a major utility
facility.

(I)
"Natural gas liquids fractionation plant" means a facility
that takes a feed of raw natural gas liquids and produces finished
product natural gas liquids.

(J)
"Raw natural gas" means hydrocarbons that are produced in a
gaseous state from gas wells and that generally include methane,
ethane, propane, butanes, pentanes, hexanes, heptanes, octanes,
nonanes, and decanes, plus other naturally occurring impurities like
water, carbon dioxide, hydrogen sulfide, nitrogen, oxygen, and
helium.

(K)
"Raw natural gas liquids" means naturally occurring
hydrocarbons contained in raw natural gas that are extracted in a gas
processing plant and liquefied and generally include mixtures of
ethane, propane, butanes, and natural gasoline.

(L)
"Finished product natural gas liquids" means an individual
finished product produced by a natural gas liquids fractionation
plant as a liquid that meets the specifications for commercial
products as defined by the gas processors association. Those products
include ethane, propane, iso-butane, normal butane, and natural
gasoline.

(M)
"Advanced transmission technologies" means software or
hardware technologies that increase the capacity, efficiency,
reliability, or safety of an existing or new electric transmission
system, including grid-enhancing technologies such as dynamic line
rating, advanced power flow controllers, and topology optimization;
advanced conductors; and other technologies designed to reduce
transmission congestion, or increase the capacity, efficiency,
reliability, or safety of an existing or new electric transmission
system.

(N)
"Advanced conductor" means a conductor with a direct
current electrical resistance that is at least ten per cent lower
than existing conductors of a similar diameter on the electric
transmission system while simultaneously increasing the energy
carrying capacity by at least seventy-five per cent.

Sec.
4906.03.
The
power siting board shall:

(A)
Require such information from persons subject to its jurisdiction as
it considers necessary to assist in the conduct of hearings and any
investigations or studies it may undertake;

(B)
Conduct any studies or investigations that it considers necessary or
appropriate to carry out its responsibilities under this chapter;

(C)
Adopt rules establishing criteria for evaluating the effects on
environmental values of proposed and alternative sites, and projected
needs for electric power, and such other rules as are necessary and
convenient to implement this chapter, including rules governing
application fees, supplemental application fees, and other reasonable
fees to be paid by persons subject to the board's jurisdiction. The
board shall make an annual accounting of its collection and use of
these fees and shall issue an annual report of its accounting, in the
form and manner prescribed by its rules, not later than the last day
of June of the year following the calendar year to which the report
applies.

(D)
Approve, disapprove, or modify and approve applications for
certificates;

(E)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board may adopt rules to provide for an accelerated review of an
application for a construction certificate for construction of a
major utility facility related to a coal research and development
project as defined in section 1555.01 of the Revised Code, or to a
coal development project as defined in section 1551.30 of the Revised
Code, submitted to the Ohio coal development office for review under
division (B)(7) of section 1551.33 of the Revised Code. Applications
for construction certificates for construction of major utility
facilities for Ohio coal research and development shall be filed with
the board on the same day as the proposed facility or project is
submitted to the Ohio coal development office for review.

The
board shall render a decision on an application for a construction
certificate within ninety days after receipt of the application and
all of the data and information it may require from the applicant. In
rendering a decision on an application for a construction
certificate, the board shall only consider the criteria and make the
findings and determinations set forth in divisions (A)(2), (3), (5),
and (7) and division (B) of section 4906.10 of the Revised Code.

(F)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board shall adopt rules to provide for an accelerated review of an
application for a construction certificate for any of the following:

(1)
An electric transmission line that is:

(a)
Not more than two miles in length;

(b)
Primarily needed to attract or meet the requirements of a specific
customer or specific customers;

(c)
Necessary to maintain reliable electric service as a result of the
retirement or shutdown of an electric generating facility located
within the state; or

(d)
A rebuilding of an existing transmission line.

(2)
An electric generating facility that uses waste heat or natural gas
and is primarily within the current boundary of an existing
industrial or electric generating facility;

(3)
A gas pipeline that is not more than five miles in length or is
primarily needed to meet the requirements of a specific customer or
specific customers.

The
board shall adopt rules that provide for the automatic certification
to any entity described in this division when an application by any
such entity is not suspended by the board, an administrative law
judge, or the chairperson or executive director of the board for good
cause shown, within ninety days of submission of the application. If
an application is suspended, the board shall approve, disapprove, or
modify and approve the application not later than ninety days after
the date of the suspension.

(G)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board shall adopt rules to provide for the accelerated review of an
application for a construction certificate for any of the following
that are located in a priority investment area designated and
approved under section 122.161 of the Revised Code:

(1)
An electric generating plant and associated facilities;

(2)
An electric transmission line and associated facilities;

(3)
Gas pipeline infrastructure.

The
chairperson of the board, not later than forty-five days after
receipt of an application submitted under division (G) of this
section, shall determine if it complies with all application
requirements set by the public utilities commission by rule. If the
chairperson does not issue a determination within the time period
required by this division, the application shall be deemed in
compliance by operation of law.

The
board shall render a decision on an application submitted under this
division not later than forty-five days after the application is
determined in compliance with all requirements set by the commission.
If the board does not render a decision within forty-five days, the
application shall be considered approved by operation of law, and the
board shall issue a certificate to the applicant.

The
board shall adopt rules to implement this division, including rules
that prioritize applications for construction on areas negatively
impacted by the decline of the coal industry.

(H)
Notwithstanding sections 4906.06 to 4906.14 of the Revised Code, the
board shall adopt rules to provide for the accelerated review of an
application for a construction certificate for a major utility
facility if at the time the application is filed the construction
will be located on the following:

(1)
In whole, on property owned by, or under a lease with a term of
twenty-five years or more with, the applicant;

(2)
In whole or in part, on an easement or right-of-way;

(3)
On any combination of such property, easement, or right-of-way
described in divisions (H)(1) and (2) of this section.

No
accelerated application shall be granted under the rules adopted
under division (H) of this section for construction of a major
utility facility, in whole or in part, on property under a lease or
an easement or right-of-way, if additional consent for construction
on the property, easement, or right-of-way is required by any person
or entity other than the power siting board.

The
board shall render a decision on an application submitted under this
division not later than sixty days after receipt of the application.
If the board does not render a decision within sixty days, the
application shall be considered approved by operation of law, and the
board shall issue a certificate to the applicant.

Sec.
4906.06.
(A)
An applicant for a certificate shall file with the office of the
chairperson of the power siting board an application, in such form as
the board prescribes, containing the following information:

(1)
A description of the location and of the major utility facility;

(2)
A summary of any studies that have been made by or for the applicant
of the environmental impact of the facility;

(3)
A statement explaining the need for the facility;

(4)
A statement of the reasons why the proposed location is best suited
for the facility;

(5)
A statement of how the facility fits into the applicant's forecast
contained in the report submitted under section 4935.04 of the
Revised Code;

(6)
Such other information as the applicant may consider relevant or as
the board by rule or order may require. Copies of the studies
referred to in division (A)(2) of this section shall be filed with
the office of the chairperson, if ordered, and shall be available for
public inspection.

(7)
For an electric transmission line, a summary of any studies that have
been made by or for the applicant of cost-effective advanced
transmission technologies that maximize the value, expand the
capacity, or improve the reliability of the facility.

The
application shall be filed not more than five years prior to the
planned date of commencement of construction. The five-year period
may be waived by the board for good cause shown.

(B)
Each application shall be accompanied by proof of service of a copy
of such application on the chief executive officer of each municipal
corporation and county, and the head of each public agency charged
with the duty of protecting the environment or of planning land use,
in the area in which any portion of such facility is to be located.

(C)
Each applicant within fifteen days after the date of the filing of
the application shall give public notice to persons residing in the
municipal corporations and counties entitled to receive notice under
division (B) of this section, by the publication of a summary of the
application in newspapers of general circulation in such area. Proof
of such publication shall be filed with the office of the
chairperson.

(D)
Inadvertent failure of service on, or notice to, any of the persons
identified in divisions (B) and (C) of this section may be cured
pursuant to orders of the board designed to afford them adequate
notice to enable them to participate effectively in the proceeding.
In addition, the board, after filing, may require the applicant to
serve notice of the application or copies thereof or both upon such
other persons, and file proof thereof, as the board considers
appropriate.

(E)
An application for an amendment of a certificate shall be in such
form and contain such information as the board prescribes. Notice of
such an application shall be given as required in divisions (B) and
(C) of this section.

(F)
Each application for certificate or an amendment shall be accompanied
by the application fee prescribed by board rule. All application
fees, supplemental application fees, and other fees collected by the
board shall be deposited in the state treasury to the credit of the
power siting board fund, which is hereby created. The chairperson
shall administer and authorize expenditures from the fund for any of
the purposes of this chapter. If the chairperson determines that
moneys credited to the fund from an applicant's fee are not
sufficient to pay the board's expenses associated with its review of
the application, the chairperson shall request the approval of the
controlling board to assess a supplemental application fee upon an
applicant to pay anticipated additional expenses associated with the
board's review of the application or an amendment to an application.
If the chairperson finds that an application fee exceeds the amount
needed to pay the board's expenses for review of the application, the
chairperson shall cause a refund of the excess amount to be issued to
the applicant from the fund.

(G)
The chairperson shall determine whether an application is in
compliance with this section not more than forty-five days after the
application is filed. If the chairperson does not issue a
determination within the time period required by this division, the
application is deemed in compliance by operation of law.

Sec.
4906.07.
(A)
Upon the receipt of an application complying with section 4906.06 of
the Revised Code, the power siting board shall promptly fix a date
for a public hearing thereon, not less than
sixty

forty-five

nor
more than
ninety

sixty

days
after such receipt, and shall conclude the proceeding as
expeditiously as practicable.

(B)
On an application for an amendment of a certificate, the board shall
hold a hearing in the same manner as a hearing is held on an
application for a certificate if the proposed change in the facility
would result in any material increase in any environmental impact of
the facility or a substantial change in the location of all or a
portion of such facility other than as provided in the alternates set
forth in the application.

(C)
The chairperson of the power siting board shall cause each
application filed with the board to be investigated and shall, not
less than fifteen days prior to the date any application is set for
hearing submit a written report to the board and to the applicant. A
copy of such report shall be made available to any person upon
request. Such report shall set forth the nature of the investigation,
and shall contain recommended findings with regard to division (A) of
section 4906.10 of the Revised Code and shall become part of the
record and served upon all parties to the proceeding.

Sec.
4906.10.
(A)
The power siting board shall render a decision upon the record either
granting or denying the application as filed, or granting it upon
such terms, conditions, or modifications of the construction,
operation, or maintenance of the major utility facility as the board
considers appropriate. The certificate shall be subject to sections
4906.101, 4906.102, and 4906.103 of the Revised Code and conditioned
upon the facility being in compliance with standards and rules
adopted under section 4561.32 and Chapters 3704., 3734., and 6111. of
the Revised Code. An applicant may withdraw an application if the
board grants a certificate on terms, conditions, or modifications
other than those proposed by the applicant in the application.

The
board shall not grant a certificate for the construction, operation,
and maintenance of a major utility facility, either as proposed or as
modified by the board, unless it finds and determines all of the
following:

(1)
The basis of the need for the facility if the facility is an electric
transmission line or gas pipeline;

(2)
The nature of the probable environmental impact;

(3)
That the facility represents the minimum adverse environmental
impact, considering the state of available technology and the nature
and economics of the various alternatives, and other pertinent
considerations;

(4)
In the case of an electric transmission line or generating facility,
that the facility is consistent with regional plans for expansion of
the electric power grid of the electric systems serving this state
and interconnected utility systems

and
,

that
the facility will serve the interests of electric system economy and
reliability
,
and, in the case of an electric transmission line, that the facility
must consider implementing cost-effective advanced transmission
technologies to maximize the value, expand capacity, or improve the
reliability of the facility
;

(5)
That the facility will comply with Chapters 3704., 3734., and 6111.
of the Revised Code and all rules and standards adopted under those
chapters and under section 4561.32 of the Revised Code. In
determining whether the facility will comply with all rules and
standards adopted under section 4561.32 of the Revised Code, the
board shall consult with the office of aviation of the division of
multi-modal planning and programs of the department of transportation
under section 4561.341 of the Revised Code.

(6)
That the facility will serve the public interest, convenience, and
necessity;

(7)
In addition to the provisions contained in divisions (A)(1) to (6) of
this section and rules adopted under those divisions, what its impact
will be on the viability as agricultural land of any land in an
existing agricultural district established under Chapter 929. of the
Revised Code that is located within the site and alternative site of
the proposed major utility facility. Rules adopted to evaluate impact
under division (A)(7) of this section shall not require the
compilation, creation, submission, or production of any information,
document, or other data pertaining to land not located within the
site and alternative site.

(8)
That the facility incorporates maximum feasible water conservation
practices as determined by the board, considering available
technology and the nature and economics of the various alternatives.

(B)
If the board determines that the location of all or a part of the
proposed facility should be modified, it may condition its
certificate upon that modification, provided that the municipal
corporations and counties, and persons residing therein, affected by
the modification shall have been given reasonable notice thereof.

(C)
A copy of the decision and any opinion issued therewith shall be
served upon each party.

(D)
The board shall render a decision under this section not later than
one hundred fifty days after the date the application is determined
to be complete. If the board does not render a decision within the
time period required by this division, the application shall be
deemed approved by operation of law, and the board shall issue a
certificate to the applicant.

Sec.
4909.04.
(A)
The public utilities commission, for the purpose of ascertaining the
reasonableness and justice of rates and charges for the service
rendered by public utilities or railroads, or for any other purpose
authorized by law, may investigate and ascertain the value of the
property of any public utility or railroad in this state used or
useful for the service and convenience of the public, using the same
criteria that are set forth in
section

sections
4909.042 and
4909.05
of the Revised Code. At the request of the legislative authority of
any municipal corporation, the commission, after hearing and
determining that such a valuation is necessary, may also investigate
and ascertain the value of the property of any public utility used
and useful for the service and convenience of the public where the
whole or major portion of such public utility is situated in such
municipal corporation.

(B)
To assist the commission in preparing such a valuation, every public
utility or railroad shall:

(1)
Furnish to the commission, or to its agents, as the commission
requires, maps, profiles, schedules of rates and tariffs, contracts,
reports of engineers, and other documents, records, and papers, or
copies of any of them, in aid of any investigation and ascertainment
of the value of its property;

(2)
Grant to the commission or its agents free access to all of its
premises and property and its accounts, records, and memoranda
whenever and wherever requested by any such authorized agent;

(3)
Cooperate with and aid the commission and its agents in the work of
the valuation of its property in such further particulars and to such
extent as the commission requires and directs.

(C)
The commission may make all rules which seem necessary to ascertain
the value of the property and plant of each public utility or
railroad.

Sec.
4909.041.
As
used in sections 4909.041, 4909.042, and 4909.05 of the Revised Code:

(A)
A "lease purchase agreement" is an agreement pursuant to
which a public utility leasing property is required to make rental
payments for the term of the agreement and either the utility is
granted the right to purchase the property upon the completion of the
term of the agreement and upon the payment of an additional fixed sum
of money or title to the property vests in the utility upon the
making of the final rental payment.

(B)
A "leaseback" is the sale or transfer of property by a
public utility to another person contemporaneously followed by the
leasing of the property to the public utility on a long-term basis.

Sec.
4909.042.
(A)
With respect to an electric light company that chooses to file a
forecasted test period under section 4909.18 of the Revised Code, the
public utilities commission shall prescribe the form and details of
the valuation report of the property of the utility. Such report
shall include all the kinds and classes of property, with the value
of each, owned, held, or projected to be owned or held during the
test period, by the utility for the service and convenience of the
public.

(B)
Such report shall contain the following facts in detail:

(1)
The original cost of each parcel of land owned in fee and projected
to be owned in fee and in use during the test period, determined by
the commission; and also a statement of the conditions of
acquisition, whether by direct purchase, by donation, by exercise of
the power of eminent domain, or otherwise;

(2)
The actual acquisition cost, not including periodic rental fees, of
rights-of-way, trailways, or other land rights projected to be held
during the test period, by virtue of easements, leases, or other
forms of grants of rights as to usage;

(3)
The original cost of all other kinds and classes of property
projected to be used and useful during the test period, in the
rendition of service to the public. Such original costs of property,
other than land owned in fee, shall be the cost, as determined to be
reasonable by the commission, to the person that first dedicated or
dedicates the property to the public use and shall be set forth in
property accounts and subaccounts as prescribed by the commission;

(4)
The cost of property constituting all or part of a project projected
to be leased to or used by the utility during the test period, under
Chapter 165., 3706., 6121., or 6123. of the Revised Code and not
included under division (B)(3) of this section exclusive of any
interest directly or indirectly paid by the utility with respect
thereto whether or not capitalized;

(5)
In the discretion of the commission, the cost to a utility, in an
amount determined to be reasonable by the commission, of property
constituting all or part of a project projected to be leased to the
utility during the test period, under a lease purchase agreement or a
leaseback and not included under division (B)(3) of this section
exclusive of any interest directly or indirectly paid by the utility
with respect thereto whether or not capitalized;

(6)
The proper and adequate reserve for depreciation, as determined to be
reasonable by the commission;

(7)
Any sums of money or property that the utility is projected to
receive during the test period, as total or partial defrayal of the
cost of its property;

(8)
The valuation of the property of the utility, which shall be the sum
of the amounts contained in the report pursuant to divisions (B)(1)
to (5) of this section, less the sum of the amounts contained in the
report pursuant to divisions (B)(6) and (7) of this section.

(C)
The report shall show separately the property projected to be used
and useful to or held by the utility during the test period, and such
other items as the commission considers proper. The commission may
require an additional report showing the extent to which the property
is projected to be used and useful during the test period. Such
reports shall be filed in the office of the commission for the
information of the governor and the general assembly.

(D)
Any financial information required to be submitted by an electric
light company under this section shall be provided from the company's
full books. The commission shall ensure appropriate protections
against the disclosure of the company's trade secrets or proprietary
information.

Sec.
4909.05.
As
used in this section:

(A)

A
"lease purchase agreement" is an agreement pursuant to
which a public utility leasing property is required to make rental
payments for the term of the agreement and either the utility is
granted the right to purchase the property upon the completion of the
term of the agreement and upon the payment of an additional fixed sum
of money or title to the property vests in the utility upon the
making of the final rental payment.

(B)
A "leaseback" is the sale or transfer of property by a
public utility to another person contemporaneously followed by the
leasing of the property to the public utility on a long-term basis.

(C)
The
With
respect to every public utility, other than an electric light company
that chooses to file a forecasted test period under section 4909.18
of the Revised Code, the
public
utilities commission shall prescribe the form and details of the
valuation report of the property of each public utility or railroad
in the state. Such report shall include all the kinds and classes of
property, with the value of each, owned, held, or, with respect to a
natural gas, water-works, or sewage disposal system company,
projected to be owned or held as of the date certain, by each public
utility or railroad used and useful, or, with respect to a natural
gas, water-works, or sewage disposal system company, projected to be
used and useful as of the date certain, for the service and
convenience of the public.
Such

(B)
Such
report
shall contain the following facts in detail:

(1)
The original cost of each parcel of land owned in fee and in use, or,
with respect to a natural gas, water-works, or sewage disposal system
company, projected to be owned in fee and in use as of the date
certain, determined by the commission; and also a statement of the
conditions of acquisition, whether by direct purchase, by donation,
by exercise of the power of eminent domain, or otherwise;

(2)
The actual acquisition cost, not including periodic rental fees, of
rights-of-way, trailways, or other land rights held, or, with respect
to a natural gas, water-works, or sewage disposal system company,
projected to be held as of the date certain, by virtue of easements,
leases, or other forms of grants of rights as to usage;

(3)
The original cost of all other kinds and classes of property used and
useful, or, with respect to a natural gas, water-works, or sewage
disposal system company, projected to be used and useful as of the
date certain, in the rendition of service to the public. Subject to
section 4909.052 of the Revised Code, such original costs of
property, other than land owned in fee, shall be the cost, as
determined to be reasonable by the commission, to the person that
first dedicated or dedicates the property to the public use and shall
be set forth in property accounts and subaccounts as prescribed by
the commission. To the extent that the costs of property comprising a
coal research and development facility, as defined in section 1555.01
of the Revised Code, or a coal development project, as defined in
section 1551.30 of the Revised Code, have been allowed for recovery
as Ohio coal research and development costs under section 4905.304 of
the Revised Code, none of those costs shall be included as a cost of
property under this division.

(4)
The cost of property constituting all or part of a project leased to
or used by the utility, or, with respect to a natural gas,
water-works, or sewage disposal system company, projected to be
leased to or used by the utility as of the date certain, under
Chapter 165., 3706., 6121., or 6123. of the Revised Code and not
included under division
(C)(3)
(B)(3)

of this section exclusive of any interest directly or indirectly paid
by the utility with respect thereto whether or not capitalized;

(5)
In the discretion of the commission, the cost to a utility, in an
amount determined to be reasonable by the commission, of property
constituting all or part of a project leased to the utility, or, with
respect to a natural gas, water-works, or sewage disposal system
company, projected to be leased to the utility as of the date
certain, under a lease purchase agreement or a leaseback and not
included under division
(C)(3)
(B)(3)

of this section exclusive of any interest directly or indirectly paid
by the utility with respect thereto whether or not capitalized;

(6)
The cost of the replacement of water service lines incurred by a
water-works company under section 4909.173 of the Revised Code and
the water service line replacement reimbursement amounts provided to
customers under section 4909.174 of the Revised Code;

(7)
The proper and adequate reserve for depreciation, as determined to be
reasonable by the commission;

(8)
Any sums of money or property that the company may have received, or,
with respect to a natural gas, water-works, or sewage disposal system
company, is projected to receive as of the date certain, as total or
partial defrayal of the cost of its property;

(9)
The valuation of the property of the company, which shall be the sum
of the amounts contained in the report pursuant to divisions

(C)(1)
(B)(1)

to (6) of this section, less the sum of the amounts contained in the
report pursuant to divisions
(C)(7)
(B)(7)

and (8) of this section.

(C)

The
report shall show separately the property used and useful to such
public utility or railroad in the furnishing of the service to the
public, the property held by such public utility or railroad for
other purposes, and the property projected to be used and useful to
or held by a natural gas, water-works, or sewage disposal system
company as of the date certain, and such other items as the
commission considers proper. The commission may require an additional
report showing the extent to which the property is used and useful,
or, with respect to a natural gas, water-works, or sewage disposal
system company, projected to be used and useful as of the date
certain. Such reports shall be filed in the office of the commission
for the information of the governor and the general assembly.

Sec.
4909.052.
Subject
to a finding that such costs are just and reasonable, the public
utilities commission in evaluating a petition submitted under section
4905.481 of the Revised Code shall accept the original cost, reported
under division
(C)(3)

(B)(3)

of
section 4909.05 of the Revised Code, of the acquisition of a
municipal water-works or sewage disposal system company that is
acquired by a large water-works or sewage disposal system company,
provided that the original cost is determined according to all of the
following requirements:

(A)
The acquiring company has three appraisals performed on the property
of the company being acquired.

(B)
The three appraisals are performed by three independent
utility-valuation experts mutually selected by the acquiring company
and the company being acquired from the list maintained under section
4909.054 of the Revised Code.

(C)
The average of the three appraisals is used as the fair market value
of the company being acquired.

(D)
Each utility-valuation expert does all of the following:

(1)
Determines the fair market value of the company to be acquired by
establishing the amount for which the company would be sold in a
voluntary transaction between a willing buyer and a willing seller
under no obligation to buy or sell;

(2)
Determines the fair market value in compliance with the uniform
standards of professional appraisal practice;

(3)
Employs the cost, market, and income approach to independently
quantify the future benefits of the company to be acquired;

(4)
Incorporates the assessment described in division (D)(5) of this
section into the appraisal under the cost, market, and income
approach;

(5)
Engages one engineer who is licensed to prepare an assessment of the
tangible assets of the company to be acquired. The original source of
funding for any part of the tangible assets shall not be relevant to
the determination of the value of those assets.

(E)
The lesser of the purchase price or the fair market value, described
in division (C) of this section, is reported as the original cost
under division
(C)(3)

(B)(3)

of
section 4909.05 of the Revised Code of the company to be acquired.

Sec.
4909.06.
The
investigation and report required by
section

section
4909.042 or
4909.05
of the Revised Code shall show, when the public utilities commission
deems it necessary, the amounts, dates, and rates of interest of all
bonds outstanding against each public utility or railroad, the
property upon which such bonds are a lien, the amounts paid for them,
and, the original capital stock and the moneys received by any such
public utility or railroad by reason of any issue of stock, bonds, or
other securities. Such report shall also show the net and gross
receipts of such public utility or railroad and the method by which
moneys were expended or paid out and the purpose of such payments.
The commission may prescribe the procedure to be followed in making
the investigation and valuation, the form in which the results of the
ascertainment of the value of each public utility or railroad shall
be submitted, and the classifications of the elements that constitute
the ascertained value. Such investigation shall also show the value
of the property of every public utility or railroad as a whole, and
if such property is in more than one county, the value of its
property in each of such counties.

"Valuation"
and "value," as used in this section, may include
,
with
:

(A)
With
respect
to
a
public utility that is
a
natural gas, water-works, or sewage disposal system company,
projected valuation and value as of the date certain, if applicable
because of a future date certain under section 4909.15 of the Revised
Code
;

(B)
With respect to an electric light company that chooses to file a
forecasted test period under section 4909.18 of the Revised Code, the
valuation and value during the forecasted test period
.

Sec.
4909.07.
The
public utilities commission, during the making of the valuation
provided for in sections 4909.04 to 4909.13 of the Revised Code, and
after its completion, shall in like manner keep itself informed
through its engineers, experts, and other assistants of all
extensions, improvements, or other changes in the condition and value
of the property of all public utilities or railroads and shall
ascertain the value of such extensions, improvements, and changes.
The commission shall, as is required for the proper regulation of
such public utilities or railroads, revise and correct its valuations
of property, showing such revisions and corrections as a whole and as
to each county. Such revisions and corrections shall be filed in the
same manner as original reports.

"Valuation"
and "value," as used in this section, may include
,
with
:

(A)
With
respect
to a
public
utility that is a
natural
gas, water-works, or sewage disposal system company, projected
valuation and value as of the date certain, if applicable because of
a future date certain under section 4909.15 of the Revised Code
;

(B)
With respect to an electric light company that chooses to file a
forecasted test period under section 4909.18 of the Revised Code, the
valuation and value during the forecasted test period
.

Sec.
4909.08.
When
the public utilities commission has completed the valuation of the
property of any public utility or railroad and before such valuation
becomes final, it shall give notice by registered letter to such
public utility or railroad, and if a substantial portion of said
public utility or railroad is situated in a municipal corporation,
then to the mayor of such municipal corporation, stating the
valuations placed upon the several kinds and classes of property of
such public utility or railroad and upon the property as a whole and
give such further notice by publication or otherwise as it shall deem
necessary to apprise the public of such valuation. If, within thirty
days after such notification, no protest has been filed with the
commission, such valuation becomes final. If notice of protest has
been filed by any public utility or railroad, the commission shall
fix a time for hearing such protest and shall consider at such
hearing any matter material thereto presented by such public utility,
railroad, or municipal corporation, in support of its protest or by
any representative of the public against such protest. If, after the
hearing of any protest of any valuation so fixed, the commission is
of the opinion that its inventory is incomplete or inaccurate or that
its valuation is incorrect, it shall make such changes as are
necessary and shall issue an order making such corrected valuations
final. A final valuation by the commission and all classifications
made for the ascertainment of such valuations shall be public and are
prima-facie evidence relative to the value of the property.

"Valuation"
and "value," as used in this section, may include
,
with
:

(A)
With
respect
to a
public
utility that is a
natural
gas, water-works, or sewage disposal system company, projected
valuation and value as of the date certain, if applicable because of
a future date certain under section 4909.15 of the Revised Code
;

(B)
With respect to an electric light company that chooses to file a
forecasted test period under section 4909.18 of the Revised Code, the
valuation and value during the forecasted test period
.

Sec.
4909.15.
(A)
The public utilities commission, when fixing and determining just and
reasonable rates, fares, tolls, rentals, and charges, shall
determine:

(1)
The
(1)(a)
With respect to a public utility that is a natural gas, water-works,
or sewage disposal system company, or that is an electric light
company that chooses not to file a forecasted test period under
section 4909.18 of the Revised Code, the
valuation
as of the date certain of the property of the public utility

that is

used and useful or, with respect to a natural gas, water-works, or
sewage disposal system company,
is

projected
to be used and useful as of the date certain, in rendering the public
utility service for which rates are to be fixed and determined.

The

(b)
With respect to an electric light company that chooses to file a
forecasted test period under section 4909.18 of the Revised Code, the
valuation of the property of the utility that is projected to be used
and useful during the forecasted test period in rendering the public
utility service for which rates are to be fixed and determined.

(c)
The
valuation
so determined

under division (A)(1) of this section for any public utility

shall be the total value as set forth in division
(C)(9)
(B)(8)
of section 4909.042 of the Revised Code and division (B)(9)

of section 4909.05 of the Revised Code, and a reasonable allowance
for materials and supplies and
a
reasonable allowance for
cash
working capital as determined by the commission.

The
commission, in its discretion, may include in the valuation a
reasonable allowance for construction work in progress but, in no
event, may such an allowance be made by the commission until it has
determined that the particular construction project is at least
seventy-five per cent complete.

In
determining the percentage completion of a particular construction
project, the commission shall consider, among other relevant
criteria, the per cent of time elapsed in construction; the per cent
of construction funds, excluding allowance for funds used during
construction, expended, or obligated to such construction funds
budgeted where all such funds are adjusted to reflect current
purchasing power; and any physical inspection performed by or on
behalf of any party, including the commission's staff.

A
reasonable allowance for construction work in progress shall not
exceed ten per cent of the total valuation as stated in this
division, not including such allowance for construction work in
progress.

Where
the commission permits an allowance for construction work in
progress, the dollar value of the project or portion thereof included
in the valuation as construction work in progress shall not be
included in the valuation as plant in service until such time as the
total revenue effect of the construction work in progress allowance
is offset by the total revenue effect of the plant in service
exclusion. Carrying charges calculated in a manner similar to
allowance for funds used during construction shall accrue on that
portion of the project in service but not reflected in rates as plant
in service, and such accrued carrying charges shall be included in
the valuation of the property at the conclusion of the offset period
for purposes of division (C)(9) of section 4909.05 of the Revised
Code.

From
and after April 10, 1985, no allowance for construction work in
progress as it relates to a particular construction project shall be
reflected in rates for a period exceeding forty-eight consecutive
months commencing on the date the initial rates reflecting such
allowance become effective, except as otherwise provided in this
division.

The
applicable maximum period in rates for an allowance for construction
work in progress as it relates to a particular construction project
shall be tolled if, and to the extent, a delay in the in-service date
of the project is caused by the action or inaction of any federal,
state, county, or municipal agency having jurisdiction, where such
action or inaction relates to a change in a rule, standard, or
approval of such agency, and where such action or inaction is not the
result of the failure of the utility to reasonably endeavor to comply
with any rule, standard, or approval prior to such change.

In
the event that such period expires before the project goes into
service, the commission shall exclude, from the date of expiration,
the allowance for the project as construction work in progress from
rates, except that the commission may extend the expiration date up
to twelve months for good cause shown.

In
the event that a utility has permanently canceled, abandoned, or
terminated construction of a project for which it was previously
permitted a construction work in progress allowance, the commission
immediately shall exclude the allowance for the project from the
valuation.

In
the event that a construction work in progress project previously
included in the valuation is removed from the valuation pursuant to
this division, any revenues collected by the utility from its
customers after April 10, 1985, that resulted from such prior
inclusion shall be offset against future revenues over the same
period of time as the project was included in the valuation as
construction work in progress. The total revenue effect of such
offset shall not exceed the total revenues previously collected.

In
no event shall the total revenue effect of any offset or offsets
provided under division (A)(1) of this section exceed the total
revenue effect of any construction work in progress allowance.

(2)
A fair and reasonable rate of return to the utility on the valuation
as determined in division (A)(1) of this section;

(3)
The dollar annual return to which the utility is entitled by applying
the fair and reasonable rate of return as determined under division
(A)(2) of this section to the valuation of the utility determined
under division (A)(1) of this section;

(4)
The cost to the utility of rendering the public utility service for
the test period used for the determination under division (C)(1) of
this section
,
less the total of any interest on cash or credit refunds paid,
pursuant to section 4909.42 of the Revised Code,

by the utility during the test period.

(a)

Federal,
state, and local taxes imposed on or measured by net income may, in
the discretion of the commission, be computed by the normalization
method of accounting, provided the utility maintains accounting
reserves that reflect differences between taxes actually payable and
taxes on a normalized basis, provided that no determination as to the
treatment in the rate-making process of such taxes shall be made that
will result in loss of any tax depreciation or other tax benefit to
which the utility would otherwise be entitled, and further provided
that such tax benefit as redounds to the utility as a result of such
a computation may not be retained by the company, used to fund any
dividend or distribution, or utilized for any purpose other than the
defrayal of the operating expenses of the utility and the defrayal of
the expenses of the utility in connection with construction work.

(b)
The amount of any tax credits granted to an electric light company
under section 5727.391 of the Revised Code for Ohio coal burned prior
to January 1, 2000, shall not be retained by the company, used to
fund any dividend or distribution, or utilized for any purposes other
than the defrayal of the allowable operating expenses of the company
and the defrayal of the allowable expenses of the company in
connection with the installation, acquisition, construction, or use
of a compliance facility. The amount of the tax credits granted to an
electric light company under that section for Ohio coal burned prior
to January 1, 2000, shall be returned to its customers within three
years after initially claiming the credit through an offset to the
company's rates or fuel component, as determined by the commission,
as set forth in schedules filed by the company under section 4905.30
of the Revised Code. As used in division (A)(4)(b) of this section,
"compliance facility" has the same meaning as in section
5727.391 of the Revised Code.

(B)
The commission shall compute the gross annual revenues to which the
utility is entitled by adding the dollar amount of return under
division (A)(3) of this section to the cost, for the test period used
for the determination under division (C)(1) of this section, of
rendering the public utility service under division (A)(4) of this
section.

(C)(1)
Except as provided in division (D) of this section, the revenues and
expenses of the utility shall be determined during a test period
.
The utility may

as follows:

(a)
Electric light companies may propose a forecasted test period. If the
company proposes a forecasted test period, the company shall propose
annual base rates for three consecutive twelve-month periods in a
single forecasted test period application.

During
the first twelve-month period, the company shall propose a reasonably
forecasted rate base using a thirteen-month average, revenues, and
expenses for the first twelve months that new base rates will be in
effect.

During
the second twelve-month period, the base rate revenue requirement
shall be adjusted for the return of, and return on, incremental rate
base additions approved by the commission in the initial application.
During the third twelve-month period, the base rate revenue
requirement shall be adjusted for the return of and return on
incremental rate base additions approved by the commission in the
initial application.

For
each twelve-month period, forecasted plant investment, forecasted
revenues, and forecasted expenses versus actual investment, actual
revenues, and actual expenses shall be trued up via a cost recovery
mechanism approved by the commission.

Each
true-up process shall include an adjustment to actual for the rate of
return that the company is authorized to earn on the actual
investments made. The company shall provide the commission with
actual financial information during the true-up process to ensure
accuracy. As part of the true-up process, the commission shall
include only rate base components that have been found by the
commission to be used and useful in rendering public utility service.

At
the end of the last test period, the company shall file for a rate
case under section 4909.18 of the Revised Code.

(b)
All utilities, except for electric light companies that choose to
file under division (C)(1)(a) of this section, shall
propose
a test period
for
this determination
that
is any twelve-month period beginning not more than six months prior
to the date the application is filed and ending not more than nine
months subsequent to that date.
The
test period for determining revenues and expenses of the utility
shall be the test period proposed by the utility, unless otherwise
ordered by the commission.

(2)

The

For
utilities filing under division (C)(1)(b) of this section, the
date
certain shall be not later than the date of filing, except that it
shall be, for a natural gas, water-works, or sewage disposal system
company, not later than the end of the test period.

(D)

A
natural gas, water-works, or sewage disposal system company
Utilities
filing under division (C)(1)(b) of this section
may
propose adjustments to the revenues and expenses
to
be determined under division (C)(1) of this section
for
any changes that are, during the test period or the twelve-month
period immediately following the test period, reasonably expected to
occur. The
natural
gas, water-works, or sewage disposal system company
utility

shall
identify and quantify, individually, any proposed adjustments. The
commission shall incorporate the proposed adjustments into the
determination if the adjustments are just and reasonable.

(E)
When the commission is of the opinion, after hearing and after making
the determinations under divisions (A) and (B) of this section, that
any rate, fare, charge, toll, rental, schedule, classification, or
service, or any joint rate, fare, charge, toll, rental, schedule,
classification, or service rendered, charged, demanded, exacted, or
proposed to be rendered, charged, demanded, or exacted, is, or will
be, unjust, unreasonable, unjustly discriminatory, unjustly
preferential, or in violation of law, that the service is, or will
be, inadequate, or that the maximum rates, charges, tolls, or rentals
chargeable by any such public utility are insufficient to yield
reasonable compensation for the service rendered, and are unjust and
unreasonable, the commission shall:

(1)
With due regard among other things to the value of all property of
the public utility
actually
used and useful for the convenience of the public
as
determined under division (A)(1) of this section, excluding from such
value the value of any franchise or right to own, operate, or enjoy
the same in excess of the amount, exclusive of any tax or annual
charge, actually paid to any political subdivision of the state or
county, as the consideration for the grant of such franchise or
right, and excluding any value added to such property by reason of a
monopoly or merger, with due regard in determining the dollar annual
return under division (A)(3) of this section to the necessity of
making reservation out of the income for surplus, depreciation, and
contingencies, and;

(2)
With due regard to all such other matters as are proper, according to
the facts in each case,

(a)
Including a fair and reasonable rate of return determined by the
commission with reference to a cost of debt equal to the actual
embedded cost of debt of such public utility,

(b)
But not including the portion of any periodic rental or use payments
representing that cost of property that is included in the valuation
report under divisions
(C)(4)
(B)(4)
and (5) of section 4909.042 of the Revised Code and divisions (B)(4)

and (5) of section 4909.05 of the Revised Code, fix and determine the
just and reasonable rate, fare, charge, toll, rental, or service to
be rendered, charged, demanded, exacted, or collected for the
performance or rendition of the service that will provide the public
utility the allowable gross annual revenues under division (B) of
this section, and order such just and reasonable rate, fare, charge,
toll, rental, or service to be substituted for the existing one.
After such determination and order no change in the rate, fare, toll,
charge, rental, schedule, classification, or service shall be made,
rendered, charged, demanded, exacted, or changed by such public
utility without the order of the commission, and any other rate,
fare, toll, charge, rental, classification, or service is prohibited.

(F)
Upon application of any person or any public utility, and after
notice to the parties in interest and opportunity to be heard as
provided in Chapters 4901., 4903., 4905., 4907., 4909., 4921., and
4923. of the Revised Code for other hearings, has been given, the
commission may rescind, alter, or amend an order fixing any rate,
fare, toll, charge, rental, classification, or service, or any other
order made by the commission. Certified copies of such orders shall
be served and take effect as provided for original orders.

Sec.
4909.156.
In
fixing the just, reasonable, and compensatory rates, joint rates,
tolls, classifications, charges, or rentals to be observed and
charged for service by any public utility, the public utilities
commission shall, in action upon an application filed pursuant to
section 4909.18 of the Revised Code, require a public utility to file
a report showing the proportionate amounts of the valuation of the
property of the utility, as determined under section
4909.042
or
4909.05
of the Revised Code, and the proportionate amounts of the revenues
and expenses of the utility that are proposed to be considered as
attributable to the service area involved in the application.

"Valuation,"
as used in this section, may include
,
with
:

(A)
With
respect
to a
public
utility that is a
natural
gas, water-works, or sewage disposal system company, projected
valuation as of the date certain, if applicable because of a future
date certain under section 4909.15 of the Revised Code
;

(B)
With respect to an electric light company that chooses to file a
forecasted test period under section 4909.18 of the Revised Code, the
valuation and value during the forecasted test period
.

Sec.
4909.159.
An
electric light company proposing a forecasted test period under
division (C)(1)(a) of section 4909.15 of the Revised Code shall
provide any financial information required by that section from the
company's full books. The public utilities commission shall ensure
appropriate protections against the disclosure of the company's trade
secrets or proprietary information.

Sec.
4909.173.
(A)
As used in this section and section 4909.174 of the Revised Code:

(1)
"Customer-owned water service line" means the water service
line connected to the water-works company's water service line at the
curb of a customer's property.

(2)
"Water-works company" means an entity defined under
division (G) of section 4905.03 of the Revised Code that is a public
utility under section 4905.02 of the Revised Code.

(B)
A water-works company may do any of the following:

(1)
Replace lead customer-owned water service lines concurrently with a
scheduled utility main replacement project, an emergency replacement,
or company-initiated lead water service line replacement program;

(2)
Replace lead customer-owned water service lines when mandated or
ordered to replace such lines by law or a state or federal regulatory
agency;

(3)
Replace customer-owned water service lines of other composition when
mandated or ordered to replace such lines by law or a state or
federal regulatory agency.

(C)
If a water-works company replaces customer-owned water service lines
under this section, then the company shall include the cost of the
replacement of the water service lines, including the cost of
replacement of both company side and customer-owned water service
lines and the cost to evaluate customer-owned water service lines of
unknown composition, in the valuation report of the property of the
company as required under division
(C)(6)
(B)(6)

of section 4909.05 of the Revised Code for inclusion in a rate case
under this chapter.

(D)
The water service customer who is responsible for the customer-owned
water service line that was replaced under this section shall hold
legal title to the replaced water service line.

Sec.
4909.174.
(A)
A water-works company shall reimburse a customer who replaces the
customer's customer-owned water service line, if both of the
following occur:

(1)
The company confirms that the customer-owned water service line was
composed of lead or other composition that was mandated or ordered to
be replaced by law or a state or federal regulatory agency;

(2)
The customer submits the reimbursement request to the company not
later than twelve months after the completion of the water line
replacement.

(B)
A water-works company that provides a reimbursement to a customer
under this section shall include the reimbursement amount in the
valuation report of the property of the company as required under
division
(C)(6)
(B)(6)

of section 4909.05 of the Revised Code for inclusion in a rate case
under this chapter.

Sec.
4909.18.
Any
public utility desiring to establish any rate, joint rate, toll,
classification, charge, or rental, or to modify, amend, change,
increase, or reduce any existing rate, joint rate, toll,
classification, charge, or rental, or any regulation or practice
affecting the same, shall file a written application with the public
utilities commission. Except for actions under section 4909.16 of the
Revised Code, no public utility may issue the notice of intent to
file an application pursuant to division (B) of section 4909.43 of
the Revised Code to increase any existing rate, joint rate, toll,
classification, charge, or rental, until a final order under this
section has been issued by the commission on any pending prior
application to increase the same rate, joint rate, toll,
classification, charge, or rental or until two hundred seventy-five
days after filing such application, whichever is sooner. Such
application shall be verified by the president or a vice-president
and the secretary or treasurer of the applicant. Such application
shall contain a schedule of the existing rate, joint rate, toll,
classification, charge, or rental, or regulation or practice
affecting the same, a schedule of the modification amendment, change,
increase, or reduction sought to be established, and a statement of
the facts and grounds upon which such application is based. If such
application proposes a new service or the use of new equipment, or
proposes the establishment or amendment of a regulation, the
application shall fully describe the new service or equipment, or the
regulation proposed to be established or amended, and shall explain
how the proposed service or equipment differs from services or
equipment presently offered or in use, or how the regulation proposed
to be established or amended differs from regulations presently in
effect. The application shall provide such additional information as
the commission may require in its discretion. If the commission
determines that such application is not for an increase in any rate,
joint rate, toll, classification, charge, or rental, the commission
may permit the filing of the schedule proposed in the application and
fix the time when such schedule shall take effect. If it appears to
the commission that the proposals in the application may be unjust or
unreasonable, the commission shall set the matter for hearing and
shall give notice of such hearing by sending written notice of the
date set for the hearing to the public utility and publishing notice
of the hearing one time in a newspaper of general circulation in each
county in the service area affected by the application. At such
hearing, the burden of proof to show that the proposals in the
application are just and reasonable shall be upon the public utility.
After such hearing, the commission shall, where practicable, issue an
appropriate order within six months from the date the application was
filed.

If
the commission determines that said application is for an increase in
any rate, joint rate, toll, classification, charge, or rental there
shall also, unless otherwise ordered by the commission, be filed with
the application in duplicate the following exhibits:

(A)
A report of its property used and useful, or, with respect to a
natural gas, water-works, or sewage disposal system company,
projected to be used and useful
,

as of the date certain
,
or during the forecasted test period, if the application is filed
under division (C)(1)(a) of section 4909.15 of the Revised Code
,
in rendering the service referred to in such application, as provided
in
section

sections
4909.042 and
4909.05
of the Revised Code;

(B)
A complete operating statement of its last fiscal year, showing in
detail all its receipts, revenues, and incomes from all sources, all
of its operating costs and other expenditures, and any analysis such
public utility deems applicable to the matter referred to in said
application;

(C)
A statement of the income and expense anticipated under the
application filed;

(D)
A statement of financial condition summarizing assets, liabilities,
and net worth;

(E)
Such other information as the commission may require in its
discretion.

Sec.
4909.181.
(A)
As used in this section, "electric distribution utility"
has the same meaning as in section 4928.01 of the Revised Code.

(B)
Not later than December 31, 2029, and at least every three years
thereafter, each electric distribution utility shall file a rate case
application regarding distribution service under section 4909.18 of
the Revised Code.

Sec.
4909.19.
(A)
Upon the filing of any application for increase provided for by
section 4909.18 of the Revised Code the public utility shall
forthwith publish notice of such application, in a form approved by
the public utilities commission, once a week for two consecutive
weeks in a newspaper published and in general circulation throughout
the territory in which such public utility operates and directly
affected by the matters referred to in said application. The notice
shall include instructions for direct electronic access to the
application or other documents on file with the public utilities
commission. The first publication of the notice shall be made in its
entirety and may be made in a preprinted insert in the newspaper. The
second publication may be abbreviated if all of the following apply:

(1)
The abbreviated notice is at least one-fourth of the size of the
notice in the first publication.

(2)
At the same time the abbreviated notice is published, the notice in
the first publication is posted in its entirety on the newspaper's
web site, if the newspaper has a web site, and the commission's web
site.

(3)
The abbreviated notice contains a statement of the web site posting
or postings, as applicable, and instructions for accessing the
posting or postings.

(B)
The commission shall determine a format for the content of all
notices required under this section, and shall consider costs and
technological efficiencies in making that determination. Defects in
the publication of said notice shall not affect the legality or
sufficiency of notices published under this section provided that the
commission has substantially complied with this section, as described
in section 4905.09 of the Revised Code.

(C)
The commission shall at once cause an investigation to be made of the
facts set forth in said application and the exhibits attached
thereto, and of the matters connected therewith. Within
a
reasonable time as determined by the commission
one
hundred eighty days
after
the
filing
of such
application

is determined to be complete
,
a written report shall be made and filed with the commission, a copy
of which shall be sent by certified mail to the applicant, the mayor
of any municipal corporation affected by the application, and to such
other persons as the commission deems interested. If no objection to
such report is made by any party interested within thirty days after
such filing and the mailing of copies thereof, the commission shall
fix a date within ten days for the final hearing upon said
application, giving notice thereof to all parties interested. At such
hearing the commission shall consider the matters set forth in said
application and make such order respecting the prayer thereof as to
it seems just and reasonable.

If
objections are filed with the commission, the commission shall cause
a pre-hearing conference to be held between all parties, intervenors,
and the commission staff in all cases involving more than one hundred
thousand customers.

If
objections are filed with the commission within thirty days after the
filing of such report, the application shall be promptly set down for
hearing of testimony before the commission or be forthwith referred
to an attorney examiner designated by the commission to take all the
testimony with respect to the application and objections which may be
offered by any interested party. The commission shall also fix the
time and place to take testimony giving ten days' written notice of
such time and place to all parties. The taking of testimony shall
commence on the date fixed in said notice and shall continue from day
to day until completed. The attorney examiner may, upon good cause
shown, grant continuances for not more than three days, excluding
Saturdays, Sundays, and holidays. The commission may grant
continuances for a longer period than three days upon its order for
good cause shown. At any hearing involving rates or charges sought to
be increased, the burden of proof to show that the increased rates or
charges are just and reasonable shall be on the public utility.

When
the taking of testimony is completed, a full and complete record of
such testimony noting all objections made and exceptions taken by any
party or counsel, shall be made, signed by the attorney examiner, and
filed with the commission. Prior to the formal consideration of the
application by the commission and the rendition of any order
respecting the prayer of the application, a quorum of the commission
shall consider the recommended opinion and order of the attorney
examiner, in an open, formal, public proceeding in which an overview
and explanation is presented orally. Thereafter, the commission shall
make such order respecting the prayer of such application as seems
just and reasonable to it.

In
all proceedings before the commission in which the taking of
testimony is required, except when heard by the commission, attorney
examiners shall be assigned by the commission to take such testimony
and fix the time and place therefor, and such testimony shall be
taken in the manner prescribed in this section. All testimony shall
be under oath or affirmation and taken down and transcribed by a
reporter and made a part of the record in the case. The commission
may hear the testimony or any part thereof in any case without having
the same referred to an attorney examiner and may take additional
testimony. Testimony shall be taken and a record made in accordance
with such general rules as the commission prescribes and subject to
such special instructions in any proceedings as it, by order,
directs.

Sec.
4909.191.
(A)
If the public utilities commission, under division (D) of section
4909.15 of the Revised Code, incorporated proposed adjustments to
revenues and expenses into the commission's determination under that
section, the
natural
gas, water-works, or sewage disposal system company
public
utility
shall,
not later than ninety days after actual data for all of the
incorporated adjustments becomes known, submit to the commission
proposed rate or charge adjustments that provide for the
recalculation of rates or charges, reflective of customer-class
responsibility, corresponding to the differences, if any, between the
incorporated adjustments to revenues and expenses and the actual
revenues and expenses associated with the incorporated adjustments.

(B)
If the commission incorporated projected value or valuation of
property into the commission's determination under division

(A)(1)
(A)(1)(a)

of section 4909.15 of the Revised Code, the natural gas, water-works,
or sewage disposal system company shall, not later than ninety days
after data for the actual value or valuation as of the date certain
becomes known, submit to the commission proposed rate or charge
adjustments that provide for the recalculation of rates or charges,
reflective of customer-class responsibility, corresponding to the
differences, if any, between the projected value or valuation
incorporated into the commission's determination and the actual value
or valuation as of the date certain.

(C)
The commission shall review the proposed rate or charge adjustments
submitted under divisions (A) and (B) of this section. The review
shall not include a hearing unless the commission finds that the
proposed rate or charge adjustments may be unreasonable, in which
case the commission may, in its discretion, schedule the matter for a
hearing.

(D)
The commission shall issue, not later than one hundred fifty days
after the date that any proposed rate or charge adjustments are
submitted under division (A) or (B) of this section, a final order on
the proposed rate or charge adjustments. Any rate or charge
adjustments authorized under this division shall be limited to
amounts that are not greater than those consistent with the proposed
adjustments to revenues and expenses that were incorporated into the
commission's determination under division (D) of section 4909.15 of
the Revised Code, and not greater than those consistent with the
incorporated projected value or valuation. In no event shall rate or
charge adjustments authorized under this division be upward.

After
the commission has issued such a final order, the
natural
gas, water-works, or sewage disposal system company
public
utility
,
if applicable, shall submit to the commission proposed reconciliation
adjustments that refund to customers the difference between the
actual revenues collected by the
natural
gas, water-works, or sewage disposal system company,
utility

under the rates and charges determined by the commission under
section 4909.15 of the Revised Code, and the rates or charges
recalculated under the adjustments authorized under this division.
The reconciliation adjustments shall be effective for a twelve-month
period.

(E)
The reconciliation adjustments ordered under division (D) of this
section may be subject to a final reconciliation by the commission.
Any such final reconciliation shall occur after the twelve-month
period described in division (D) of this section.

Sec.
4909.192.
When
considering an application to increase rates under section 4909.18 of
the Revised Code, the public utilities commission may approve the
following:

(A)
Nondiscriminatory programs available for all energy-intensive
customers to implement economic development, job growth, job
retention, or interruptible rates that enhance distribution and
transmission grid reliability and promote economic development.

(B)
Nondiscriminatory programs available for all mercantile customers, as
defined in section 4928.01 of the Revised Code, that align retail
rate recovery with how transmission costs are incurred by or charged
to the electric distribution utility, as defined in section 4928.01
of the Revised Code, or programs that allow customers to be billed
directly for transmission service by a competitive retail electric
service provider.

Sec.
4909.193.
(A)
The public utilities commission shall determine whether an
application for an increase filed under section 4909.18 of the
Revised Code is complete not more than forty-five days after the
application is filed. If the commission does not issue a
determination within the time period required by this section, the
application shall be deemed complete by operation of law.

(B)
For purposes of section 4909.421 of the Revised Code, the date of the
commission order determining that the application is complete, or the
date the application is deemed complete by operation of law, shall be
deemed to be the date of the filing of the application.

Sec.
4909.42.
If

Except
as provided for in section 4909.421 of the Revised Code, if
the
proceeding on an application filed with the public utilities
commission under section 4909.18 of the Revised Code by any public
utility requesting an increase on any rate, joint rate, toll,
classification, charge, or rental or requesting a change in a
regulation or practice affecting the same has not been concluded and
an order entered pursuant to section 4909.19 of the Revised Code at
the expiration of two hundred seventy-five days from the date of
filing the application, an increase not to exceed the proposed
increase shall go into effect upon the filing of a bond or a letter
of credit by the public utility. The bond or letter of credit shall
be filed with the commission and shall be payable to the state for
the use and benefit of the customers affected by the proposed
increase or change.

An
affidavit attached to the bond or letter of credit must be signed by
two of the officers of the utility, under oath, and must contain a
promise on behalf of the utility to refund any amounts collected by
the utility over the rate, joint rate, toll, classification, charge,
or rental, as determined in the final order of the commission. All
refunds shall include interest at the rate stated in section 1343.03
of the Revised Code. The refund shall be in the form of a temporary
reduction in rates following the final order of the commission, and
shall be accomplished in such manner as shall be prescribed by the
commission in its final order. The commission shall exercise
continuing and exclusive jurisdiction over such refunds.

If
the public utilities commission has not entered a final order within
five hundred forty-five days from the date of the filing of an
application for an increase in rates under section 4909.18 of the
Revised Code, a public utility shall have no obligation to make a
refund of amounts collected after the five hundred forty-fifth day
which exceed the amounts authorized by the commission's final order.

Nothing
in this section shall be construed to mitigate any duty of the
commission to issue a final order under section 4909.19 of the
Revised Code.

Sec.
4909.421.
(A)
If the proceeding on an application filed with the public utilities
commission under section 4909.18 of the Revised Code by an electric
light company requesting an increase on any rate, rate mechanism,
joint rate, toll, classification, charge, or rental or requesting a
change in a regulation or practice affecting the same has not been
concluded and an opinion and order entered pursuant to section
4909.19 of the Revised Code at the expiration of two hundred
seventy-five days from the date of the filing of the application, the
company may request a temporary increase, and any party to the
proceeding may request a temporary decrease, which shall go into
effect and remain in effect until modified in accordance with the
commission's order based upon the merits of the application.

(B)
Not later than three hundred sixty days from the date of filing the
application as established by section 4909.193 of the Revised Code,
the commission shall issue an order to approve, deny, or modify an
application filed under section 4909.18 of the Revised Code. If the
commission does not issue an order within three hundred sixty days
after the date of filing of the application, the application shall be
deemed approved by operation of law. A temporary increase or decrease
under this section shall not exceed the midpoint of the rates
recommended in the staff report filed pursuant to section 4909.19 of
the Revised Code and shall be subject to reconciliation and refund.

(C)
Nothing in this section shall be construed to mitigate any duty of
the commission to issue a final order under section 4909.19 of the
Revised Code.

Sec.
4928.01.
(A)
As used in this chapter:

(1)
"Ancillary service" means any function necessary to the
provision of electric transmission or distribution service to a
retail customer and includes, but is not limited to, scheduling,
system control, and dispatch services; reactive supply from
generation resources and voltage control service; reactive supply
from transmission resources service; regulation service; frequency
response service; energy imbalance service; operating
reserve-spinning reserve service; operating reserve-supplemental
reserve service; load following; back-up supply service; real-power
loss replacement service; dynamic scheduling; system black start
capability; and network stability service.

(2)
"Billing and collection agent" means a fully independent
agent, not affiliated with or otherwise controlled by an electric
utility, electric services company, electric cooperative, or
governmental aggregator subject to certification under section
4928.08 of the Revised Code, to the extent that the agent is under
contract with such utility, company, cooperative, or aggregator
solely to provide billing and collection for retail electric service
on behalf of the utility company, cooperative, or aggregator.

(3)
"Certified territory" means the certified territory
established for an electric supplier under sections 4933.81 to
4933.90 of the Revised Code.

(4)
"Competitive retail electric service" means a component of
retail electric service that is competitive as provided under
division (B) of this section.

(5)
"Electric cooperative" means a not-for-profit electric
light company that both is or has been financed in whole or in part
under the "Rural Electrification Act of 1936," 49 Stat.
1363, 7 U.S.C. 901, and owns or operates facilities in this state to
generate, transmit, or distribute electricity, or a not-for-profit
successor of such company.

(6)
"Electric distribution utility" means an electric utility
that supplies at least retail electric distribution service

and does not own or operate an electric generating facility
.

(7)
"Electric light company" has the same meaning as in section
4905.03 of the Revised Code and includes an electric services
company
,
but excludes any self-generator to the extent that it consumes
electricity it so produces, sells that electricity for resale, or
obtains electricity from a generating facility it hosts on its
premises
.

(8)
"Electric load center" has the same meaning as in section
4933.81 of the Revised Code.

(9)
"Electric services company" means an electric light company
that is engaged on a for-profit or not-for-profit basis in the
business of supplying or arranging for the supply of only a
competitive retail electric service in this state. "Electric
services company" includes a power marketer, power broker,
aggregator, or independent power producer but excludes an electric
cooperative, municipal electric utility, governmental aggregator, or
billing and collection agent.

(10)
"Electric supplier" has the same meaning as in section
4933.81 of the Revised Code.

(11)
"Electric utility" means an electric light company that has
a certified territory and is engaged on a for-profit basis
either

in
the business of supplying

at least

a noncompetitive retail electric service in this state
or
in the businesses of supplying both a noncompetitive and a
competitive retail electric service in this state
.
"Electric utility" excludes a municipal electric utility or
a billing and collection agent.

(12)
"Firm electric service" means electric service other than
nonfirm electric service.

(13)
"Governmental aggregator" means a legislative authority of
a municipal corporation, a board of township trustees, or a board of
county commissioners acting as an aggregator for the provision of a
competitive retail electric service under authority conferred under
section 4928.20 of the Revised Code.

(14)
A person acts "knowingly," regardless of the person's
purpose, when the person is aware that the person's conduct will
probably cause a certain result or will probably be of a certain
nature. A person has knowledge of circumstances when the person is
aware that such circumstances probably exist.

(15)
"Level of funding for low-income customer energy efficiency
programs provided through electric utility rates" means the
level of funds specifically included in an electric utility's rates
on October 5, 1999, pursuant to an order of the public utilities
commission issued under Chapter 4905. or 4909. of the Revised Code
and in effect on October 4, 1999, for the purpose of improving the
energy efficiency of housing for the utility's low-income customers.
The term excludes the level of any such funds committed to a specific
nonprofit organization or organizations pursuant to a stipulation or
contract.

(16)
"Low-income customer assistance programs" means the
percentage of income payment plan program, the home energy assistance
program, the home weatherization assistance program, and the targeted
energy efficiency and weatherization program.

(17)
"Market development period" for an electric utility means
the period of time beginning on the starting date of competitive
retail electric service and ending on the applicable date for that
utility as specified in section 4928.40 of the Revised Code,
irrespective of whether the utility applies to receive transition
revenues under this chapter.

(18)
"Market power" means the ability to impose on customers a
sustained price for a product or service above the price that would
prevail in a competitive market.

(19)
"Mercantile customer" means a commercial or industrial
customer if the electricity consumed is for nonresidential use and
the customer consumes more than seven hundred thousand kilowatt hours
per year or is part of a national account involving multiple
facilities in one or more states.

(20)
"Municipal electric utility" means a municipal corporation
that owns or operates facilities to generate, transmit, or distribute
electricity.

(21)
"Noncompetitive retail electric service" means a component
of retail electric service that is noncompetitive as provided under
division (B) of this section.

(22)
"Nonfirm electric service" means electric service provided
pursuant to a schedule filed under section 4905.30 of the Revised
Code or pursuant to an arrangement under section 4905.31 of the
Revised Code, which schedule or arrangement includes conditions that
may require the customer to curtail or interrupt electric usage
during nonemergency circumstances upon notification by an electric
utility.

(23)
"Percentage of income payment plan arrears" means funds
eligible for collection through the percentage of income payment plan
rider, but uncollected as of July 1, 2000.

(24)
"Person" has the same meaning as in section 1.59 of the
Revised Code.

(25)
"Advanced energy project" means any technologies, products,
activities, or management practices or strategies that facilitate the
generation or use of electricity or energy and that reduce or support
the reduction of energy consumption or support the production of
clean, renewable energy for industrial, distribution, commercial,
institutional, governmental, research, not-for-profit, or residential
energy users, including, but not limited to, advanced energy
resources and renewable energy resources. "Advanced energy
project" also includes any project described in division (A),
(B), or (C) of section 4928.621 of the Revised Code.

(26)
"Regulatory assets" means the unamortized net regulatory
assets that are capitalized or deferred on the regulatory books of
the electric utility, pursuant to an order or practice of the public
utilities commission or pursuant to generally accepted accounting
principles as a result of a prior commission rate-making decision,
and that would otherwise have been charged to expense as incurred or
would not have been capitalized or otherwise deferred for future
regulatory consideration absent commission action. "Regulatory
assets" includes, but is not limited to, all deferred
demand-side management costs; all deferred percentage of income
payment plan arrears; post-in-service capitalized charges and assets
recognized in connection with statement of financial accounting
standards no. 109 (receivables from customers for income taxes);
future nuclear decommissioning costs and fuel disposal costs as those
costs have been determined by the commission in the electric
utility's most recent rate or accounting application proceeding
addressing such costs; the undepreciated costs of safety and
radiation control equipment on nuclear generating plants owned or
leased by an electric utility; and fuel costs currently deferred
pursuant to the terms of one or more settlement agreements approved
by the commission.

(27)
"Retail electric service" means any service involved in
supplying or arranging for the supply of electricity to ultimate
consumers in this state, from the point of generation to the point of
consumption. For the purposes of this chapter, retail electric
service includes one or more of the following "service
components": generation service, aggregation service, power
marketing service, power brokerage service, transmission service,
distribution service, ancillary service, metering service, and
billing and collection service.

(28)
"Starting date of competitive retail electric service"
means January 1, 2001.

(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 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
property
the entity controls
an
electric generation facility that produces electricity primarily for
the owner's consumption and that may provide any such excess
electricity to another entity,
whether
the
and
that meets all of the following:

(a)
The
facility
is installed or operated by the owner or by
an
agent
a
third party
under
a contract
,
including a lease, purchase power agreement, or other service
contract.

(b)
The facility connects directly to the owner's side of the electric
meter.

(c)
The facility delivers electricity to the owner's side of the electric
meter without the use of an electric distribution utility's or
electric cooperative's distribution system or transmission system
.

(33)
"Rate plan" means the standard service offer in effect on
the effective date of the amendment of this section by S.B. 221 of
the 127th general assembly, July 31, 2008.

(34)
"Advanced energy resource" means any of the following:

(a)
Any method or any modification or replacement of any property,
process, device, structure, or equipment that increases the
generation output of an electric generating facility to the extent
such efficiency is achieved without additional carbon dioxide
emissions by that facility;

(b)
Any distributed generation system consisting of customer cogeneration
technology;

(c)
Clean coal technology that includes a carbon-based product that is
chemically altered before combustion to demonstrate a reduction, as
expressed as ash, in emissions of nitrous oxide, mercury, arsenic,
chlorine, sulfur dioxide, or sulfur trioxide in accordance with the
American society of testing and materials standard D1757A or a
reduction of metal oxide emissions in accordance with standard D5142
of that society, or clean coal technology that includes the design
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;

(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, biological decomposition, or
other process that does not principally involve combustion;

(viii)
Biomass energy;

(ix)
Energy produced by cogeneration technology that is placed into
service on or before December 31, 2015, and for which more than
ninety per cent of the total annual energy input is from combustion
of a waste or byproduct gas from an air contaminant source in this
state, which source has been in operation since on or before January
1, 1985, provided that the cogeneration technology is a part of a
facility located in a county having a population of more than three
hundred sixty-five thousand but less than three hundred seventy
thousand according to the most recent federal decennial census;

(x)
Biologically derived methane gas;

(xi)
Heat captured from a generator of electricity, boiler, or heat
exchanger fueled by biologically derived methane gas;

(xii)
Energy derived from nontreated by-products of the pulping process or
wood manufacturing process, including bark, wood chips, sawdust, and
lignin in spent pulping liquors.

"Renewable
energy resource" includes, but is not limited to, any fuel cell
used in the generation of electricity, including, but not limited to,
a proton exchange membrane fuel cell, phosphoric acid fuel cell,
molten carbonate fuel cell, or solid oxide fuel cell;
a
linear generator;
wind
turbine located in the state's territorial waters of Lake Erie;
methane gas emitted from an abandoned
or
active
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 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 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 any of the following:

(a)
A facility that generates electricity through the conversion of
energy from either of the following:

(i)
Exhaust heat from engines or manufacturing, industrial, commercial,
or institutional sites, except for exhaust heat from a facility whose
primary purpose is the generation of electricity;

(ii)
Reduction of pressure in gas pipelines before gas is distributed
through the pipeline, provided that the conversion of energy to
electricity is achieved without using additional fossil fuels.

(b)
A facility at a state institution of higher education as defined in
section 3345.011 of the Revised Code that recovers waste heat from
electricity-producing engines or combustion turbines and that
simultaneously uses the recovered heat to produce steam, provided
that the facility was placed into service between January 1, 2002,
and December 31, 2004;

(c)
A facility that produces steam from recovered waste heat from a
manufacturing process and uses that steam, or transfers that steam to
another facility, to provide heat to another manufacturing process or
to generate electricity.

(39)
"Smart grid" means capital improvements to an electric
distribution utility's distribution infrastructure that improve
reliability, efficiency, resiliency, or reduce energy demand or use,
including, but not limited to, advanced metering and automation of
system functions.

(40)
"Combined heat and power system" means the coproduction of
electricity and useful thermal energy from the same fuel source
designed to achieve thermal-efficiency levels of at least sixty per
cent, with at least twenty per cent of the system's total useful
energy in the form of thermal energy.

(41)
"Legacy generation resource" means all generating
facilities owned directly or indirectly by a corporation that was
formed prior to 1960 by investor-owned utilities for the original
purpose of providing power to the federal government for use in the
nation's defense or in furtherance of national interests, including
the Ohio valley electric corporation.

(42)
"Prudently incurred costs related to a legacy generation
resource" means costs, including deferred costs, allocated
pursuant to a power agreement approved by the federal energy
regulatory commission that relates to a legacy generation resource,
less any revenues realized from offering the contractual commitment
for the power agreement into the wholesale markets, provided that
where the net revenues exceed net costs, those excess revenues shall
be credited to customers. Such costs shall exclude any return on
investment in common equity and, in the event of a premature
retirement of a legacy generation resource, shall exclude any
recovery of remaining debt. Such costs shall include any incremental
costs resulting from the bankruptcy of a current or former sponsor
under such power agreement or co-owner of the legacy generation
resource if not otherwise recovered through a utility rate cost
recovery mechanism.

(43)(a)

(41)(a)

"Green
energy" means any energy generated by using an energy resource
that does one or more of the following:

(i)
Releases reduced air pollutants, thereby reducing cumulative air
emissions;

(ii)
Is more sustainable and reliable relative to some fossil fuels.

(b)
"Green energy" includes energy generated using the
following:

(i)
Natural gas as a resource;

(ii)
Nuclear reaction.

(42)
"Energy storage" means electrical generation and storage
performed by a distributed energy system connected battery.

(43)
"Linear generator" means an integrated system consisting of
oscillators, cylinders, electricity conversion equipment, and
associated balance of plant components that meet the following
criteria:

(a)
Converts the linear motion of oscillators directly into electricity
without the use of a flame or spark;

(b)
Is dispatchable with the ability to vary power output across all
loads;

(c)
Can operate on multiple fuel types including renewable fuels such as
hydrogen, ammonia, and biogas.

(B)
For the purposes of this chapter, a retail electric service component
shall be deemed a competitive retail electric service if the service
component is competitive pursuant to a declaration by a provision of
the Revised Code or pursuant to an order of the public utilities
commission authorized under 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 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 provisions
with respect to a noncompetitive retail electric service shall be the
authority provided under those chapters and this chapter, to the
extent the authority is not preempted by federal law. Notwithstanding
Chapters 4905. and 4909. of the Revised Code, commission authority
under this chapter shall include the authority to provide for the
recovery, through a reconcilable rider on an electric distribution
utility's distribution rates, of all transmission and
transmission-related costs, including ancillary and congestion costs,
imposed on or charged to the utility by the federal energy regulatory
commission or a regional transmission organization, independent
transmission operator, or similar organization approved by the
federal energy regulatory commission.

The
commission shall adopt, for each electric distribution utility that
provides customers with a standard service offer in compliance with
sections 4928.141 and 4928.142 of the Revised Code, a nonbypassable
cost recovery mechanism relating to transmission, ancillary,
congestion, or any related service required for such standard service
offer that includes provisions for the recovery of any cost of such
service that the electric distribution utility incurs pursuant to the
standard service offer.

(2)

The
commission shall exercise its jurisdiction with respect to the
delivery of electricity by an electric utility in this state
on
or after the starting date of competitive retail electric service
so
as to ensure that no aspect of the delivery of electricity by the
utility to consumers in this state that consists of a noncompetitive
retail electric service is unregulated.

On
and after that starting date, a
(3)
A
noncompetitive
retail electric service supplied by an electric cooperative shall not
be subject to supervision and regulation by the commission under
Chapters 4901. to 4909., 4933., 4935., and 4963. of the Revised Code,
except sections 4933.81 to 4933.90 and 4935.03 of the Revised Code.
The commission's authority to enforce those excepted sections with
respect to a noncompetitive retail electric service of an electric
cooperative shall be such authority as is provided for their
enforcement under Chapters 4933. and 4935. of the Revised Code.

(B)
Nothing in this chapter affects the authority of the commission under
Title XLIX of the Revised Code to regulate an electric light company
in this state or an electric service supplied in this state prior to
the starting date of competitive retail electric service.

Sec.
4928.08.
(A)
This section applies to an electric cooperative, or to a governmental
aggregator that is a municipal electric utility, only to the extent
of a competitive retail electric service it provides to a customer to
whom it does not provide a noncompetitive retail electric service
through transmission or distribution facilities it singly or jointly
owns or operates.

(B)

(B)(1)

No
electric utility, electric services company, electric cooperative, or
governmental aggregator shall provide a competitive retail electric
service to a consumer in this state on and after the starting date of
competitive retail electric service without first being certified by
the public utilities commission regarding its managerial, technical,
and financial capability to provide that service and providing a
financial guarantee sufficient to protect customers and electric
distribution utilities from default. Certification shall be granted
pursuant to procedures and standards the commission shall prescribe
in accordance with division (C) of this section, except that
certification or certification renewal shall be deemed approved
thirty days after the filing of an application with the commission
unless the commission suspends that approval for good cause shown. In
the case of such a suspension, the commission shall act to approve or
deny certification or certification renewal to the applicant not
later than ninety days after the date of the suspension.

(2)
The public utilities commission shall establish rules to require an
electric services company to maintain financial assurances sufficient
to protect customers and electric distribution utilities from
default. Such rules also shall specifically allow an electric
distribution utility to set reasonable standards for its security and
the security of its customers through financial requirements set in
its tariffs.

(3)
As used in division (B)(2) of this section, an "electric
services company" has the same meaning as in section 4928.01 of
the Revised Code, but excludes a power broker or aggregator.

(C)
Capability standards adopted in rules under division (B) of this
section shall be sufficient to ensure compliance with the minimum
service requirements established under section 4928.10 of the Revised
Code and with section 4928.09 of the Revised Code. The standards
shall allow flexibility for voluntary aggregation, to encourage
market creativity in responding to consumer needs and demands, and
shall allow flexibility for electric services companies that
exclusively provide installation of small electric generation
facilities, to provide ease of market access. The rules shall include
procedures for biennially renewing certification.

(D)
The commission may suspend, rescind, or conditionally rescind the
certification of any electric utility, electric services company,
electric cooperative, or governmental aggregator issued under this
section if the commission determines, after reasonable notice and
opportunity for hearing, that the utility, company, cooperative, or
aggregator has failed to comply with any applicable certification
standards or has engaged in anticompetitive or unfair, deceptive, or
unconscionable acts or practices in this state.

(E)
No electric distribution utility on and after the starting date of
competitive retail electric service shall knowingly distribute
electricity, to a retail consumer in this state, for any supplier of
electricity that has not been certified by the commission pursuant to
this section.

(F)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
under section 4928.08 of the Revised Code is not subject to sections
121.95 to 121.953 of the Revised Code.

Sec.
4928.101.
(A)
As used in this section 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 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 public utilities commission web site that, as a comparison tool,
lists rates offered by competitive retail electric service suppliers;

(4)
A statement explaining that appearing on each customer's bill is a
price-to-compare notice that lists the utility's standard service
offer price.

(B)
The second notice shall include all the requirements as stated in
division (A) of this section and shall also identify the initial rate
to be charged upon the contract's conversion to a variable rate.

(C)
The notices shall be sent by standard United States mail or
electronically with a customer's verifiable consent as follows:

(1)
The supplier shall send the first notice not earlier than ninety
days, and not later than sixty days, prior to the expiration of the
fixed rate.

(2)
The supplier shall send the second notice not earlier than forty-five
days, and not later than fifteen days, prior to the expiration of the
fixed rate.

(D)
A competitive retail electric service supplier shall provide an
annual notice, by standard United States mail or electronically with
a customer's verifiable consent, to each residential and small
commercial customer that has entered into a contract with the
supplier that has converted to a variable rate upon the expiration of
the contract's fixed introductory rate. The notice shall inform the
customer that the customer is currently subject to a variable rate
and that other fixed rate contracts are available.

(E)
Not later than one hundred fifty days after the effective date of
this section, the commission shall adopt rules in order to implement
divisions (A) to (D) of this section. The rules, at a minimum, shall
include the following requirements regarding the notices required
under divisions (A) to (D) of this section:

(1)
To use clear and unambiguous language in order to enable the customer
to make an informed decision;

(2)
To design the notices in a way to ensure that they cannot be confused
with marketing materials.

(F)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
under section 4928.101 of the Revised Code is not subject to sections
121.95 to 121.953 of the Revised Code.

Sec.
4928.103.
(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 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.
4928.104.
(A)
A competitive retail electric service supplier may offer alternative
billing and payment structures as agreed upon in a service contract
with a mercantile customer, without restriction to specific models,
provided the supplier complies with applicable laws and regulations.
The alternative billing and payment structure may include any of the
following:

(1)
Daily, weekly, or milestone-based payments;

(2)
Online-only billing and payment requirements;

(3)
Prepayment-based service structures.

(B)
The public utilities commission shall not prohibit a competitive
retail electric service supplier from requiring electronic payment
methods as a condition of service under a non-traditional billing
agreement.

Sec.
4928.105.
(A)
Upon receiving a certified request from a competitive retail electric
service supplier under a service agreement that explicitly authorizes
an expedited return to an electric distribution utility's standard
service offer, voluntarily entered into by a mercantile customer, a
utility shall complete the request within three business days.

(B)
The electric distribution utility shall not be held liable for any
disputes arising from the expedited return to the utility's standard
service offer, provided the utility acts in accordance with the
public utilities commission's rules.

(C)
The commission shall establish rules governing the process for an
expedited return to the utility's standard service offer pursuant to
this section, including the content of the certified request and any
notice to the affected customer, and permitting electric distribution
utilities to recover the administrative costs of processing requests
under this section through reasonable fees assessed to competitive
retail electric service suppliers.

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.

(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, 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

to
be effective
under
section 4928.142
or
4928.143
of
the Revised Code
,
and, as applicable, pursuant to division (D) of section 4928.143 of
the Revised Code, any rate
.
Each security
plan

that
extends
approved
before the effective date of the amendments to this section by this
act shall extend
beyond
December 31, 2008, shall continue to be in effect for the subject
electric distribution utility for the duration of the plan's
term
through
the final standard service offer auction delivery period approved by
the public utilities commission under the plan as of the effective
date of the amendments to this section by this act and thereafter
shall terminate
.

(3)

A
standard service offer under section 4928.142
or
4928.143
of
the Revised Code shall exclude any previously authorized allowances
for transition costs, with such exclusion being effective on and
after the date that the allowance is scheduled to end under the
utility's
rate

electric
security
plan.

(B)
The commission shall set the time for hearing of a filing under
section 4928.142
or
4928.143
of
the Revised Code, send written notice of the hearing to the electric
distribution utility, and publish notice in a newspaper of general
circulation in each county in the utility's certified territory. The
commission shall adopt rules regarding filings under

those sections

the section
.

Sec.
4928.142.
(A)
For the purpose of complying with section 4928.141 of the Revised
Code and subject to division (D) of this section and, as applicable,
subject to the
rate
plan requirement
requirements

of
division (A) of section 4928.141 of the Revised Code, an electric
distribution utility
may

shall

establish
a standard service offer price for retail electric generation service
that is delivered to the utility under a market-rate offer.

(1)
The market-rate offer shall be determined through a competitive
bidding process that provides for all of the following:

(a)
Open, fair, and transparent competitive solicitation;

(b)
Clear product definition;

(c)
Standardized bid evaluation criteria;

(d)
Oversight by an independent third party that shall design the
solicitation, administer the bidding, and ensure that the criteria
specified in

division

divisions

(A)(1)(a) to (c) of this section are met;

(e)
Evaluation of the submitted bids prior to the selection of the
least-cost bid winner or winners.

No
generation supplier shall be prohibited from participating in the
bidding process.

(2)
The public utilities commission shall modify rules, or adopt new
rules as necessary, concerning the conduct of the competitive bidding
process and the qualifications of bidders, which rules shall foster
supplier participation in the bidding process and shall be consistent
with the requirements of division (A)(1) of this section.

(B)
Prior to initiating a competitive bidding process for a market-rate
offer under division (A) of this section, the electric distribution
utility shall file an application with the commission. An electric
distribution utility may file its application with the commission
prior to the effective date of the commission rules required under
division (A)(2) of this section, and, as the commission determines
necessary, the utility shall immediately conform its filing to the
rules upon their taking effect.

An
application under this division shall detail the electric
distribution utility's proposed compliance with the requirements of
division (A)(1) of this section and with commission rules under
division (A)(2) of this section and demonstrate that all of the
following requirements are met:

(1)
The electric distribution utility or its transmission service
affiliate belongs to at least one regional transmission organization
that has been approved by the federal energy regulatory commission;
or there otherwise is comparable and nondiscriminatory access to the
electric transmission grid.

(2)
Any such regional transmission organization has a market-monitor
function and the ability to take actions to identify and mitigate
market power or the electric distribution utility's market conduct;
or a similar market monitoring function exists with commensurate
ability to identify and monitor market conditions and mitigate
conduct associated with the exercise of market power.

(3)
A published source of information is available publicly or through
subscription that identifies pricing information for traded
electricity on- and off-peak energy products that are contracts for
delivery beginning at least two years from the date of the
publication and is updated on a regular basis.

The
commission shall initiate a proceeding and, within ninety days after
the application's filing date, shall determine by order whether the
electric distribution utility and its market-rate offer meet all of
the foregoing requirements. If the finding is positive, the electric
distribution utility
may

shall

initiate
its competitive bidding process. If the finding is negative as to one
or more requirements, the commission in the order shall direct the
electric distribution utility regarding how any deficiency
may

shall

be

timely

remedied

in a timely manner

to the commission's satisfaction
;
otherwise, the electric distribution utility shall withdraw the
application. However, if such remedy is made and the subsequent
finding is positive and also if the electric distribution utility
made a simultaneous filing under this section and section 4928.143 of
the Revised Code, the utility shall not initiate its competitive bid
until at least one hundred fifty days after the filing date of those
applications
.

(C)
Upon the completion of the competitive bidding process authorized by
divisions (A) and (B) of this section
,
including for the purpose of division (D) of this section
,
the commission shall select the least-cost bid winner or winners of
that process, and such selected bid or bids, as prescribed as retail
rates by the commission, shall be the electric distribution utility's
standard service offer unless the commission, by order issued before
the third calendar day following the conclusion of the competitive
bidding process for the market rate offer, determines that one or
more of the following criteria were not met:

(1)
Each portion of the bidding process was oversubscribed, such that the
amount of supply bid upon was greater than the amount of the load bid
out.

(2)
There were four or more bidders.

(3)
At least twenty-five per cent of the load is bid upon by one or more
persons other than the electric distribution utility.

All
costs incurred by the electric distribution utility as a result of or
related to the competitive bidding process or to procuring generation
service to provide the standard service offer, including the costs of
energy and capacity and the costs of all other products and services
procured as a result of the competitive bidding process, shall be
timely recovered through the standard service offer price, and, for
that purpose, the commission shall approve a reconciliation
mechanism, other recovery mechanism, or a combination of such
mechanisms for the utility.

(D)
The
first

application
filed under this section by an electric distribution utility
that,
as of July 31, 2008, directly owns, in whole or in part, operating
electric generating facilities that had been used and useful in this
state
shall
require that
a
portion of that
the

utility's
standard service offer load
for
the first five years of the market rate offer
be
competitively bid under division (A) of this section

as follows: ten per cent of the load in year one, not more than
twenty per cent in year two, thirty per cent in year three, forty per
cent in year four, and fifty per cent in year five. Consistent with
those percentages, the commission shall determine the actual
percentages for each year of years one through five. The standard
service offer price for retail electric generation service under this
first application shall be a proportionate blend of the bid price and
the generation service price for the remaining standard service offer
load, which latter price shall be equal to the electric distribution
utility's most recent standard service offer price, adjusted upward
or downward as the commission determines reasonable, relative to the
jurisdictional portion of any known and measurable changes from the
level of any one or more of the following costs as reflected in that
most recent standard service offer price:

(1)
The electric distribution utility's prudently incurred cost of fuel
used to produce electricity;

(2)
Its prudently incurred purchased power costs;

(3)
Its prudently incurred costs of satisfying the supply and demand
portfolio requirements of this state, including, but not limited to,
renewable energy resource and energy efficiency requirements;

(4)
Its costs prudently incurred to comply with environmental laws and
regulations, with consideration of the derating of any facility
associated with those costs.

In
making any adjustment to the most recent standard service offer price
on the basis of costs described in division (D) of this section, the
commission shall include the benefits that may become available to
the electric distribution utility as a result of or in connection
with the costs included in the adjustment, including, but not limited
to, the utility's receipt of emissions credits or its receipt of tax
benefits or of other benefits, and, accordingly, the commission may
impose such conditions on the adjustment to ensure that any such
benefits are properly aligned with the associated cost
responsibility. The commission shall also determine how such
adjustments will affect the electric distribution utility's return on
common equity that may be achieved by those adjustments. The
commission shall not apply its consideration of the return on common
equity to reduce any adjustments authorized under this division
unless the adjustments will cause the electric distribution utility
to earn a return on common equity that is significantly in excess of
the return on common equity that is earned by publicly traded
companies, including utilities, that face comparable business and
financial risk, with such adjustments for capital structure as may be
appropriate. The burden of proof for demonstrating that significantly
excessive earnings will not occur shall be on the electric
distribution utility.

Additionally,
the commission may adjust the electric distribution utility's most
recent standard service offer price by such just and reasonable
amount that the commission determines necessary to address any
emergency that threatens the utility's financial integrity or to
ensure that the resulting revenue available to the utility for
providing the standard service offer is not so inadequate as to
result, directly or indirectly, in a taking of property without
compensation pursuant to Section 19 of Article I, Ohio Constitution.
The electric distribution utility has the burden of demonstrating
that any adjustment to its most recent standard service offer price
is proper in accordance with this division.

(E)
Beginning in the second year of a blended price under division (D) of
this section and notwithstanding any other requirement of this
section, the commission may alter prospectively the proportions
specified in that division to mitigate any effect of an abrupt or
significant change in the electric distribution utility's standard
service offer price that would otherwise result in general or with
respect to any rate group or rate schedule but for such alteration.
Any such alteration shall be made not more often than annually, and
the commission shall not, by altering those proportions and in any
event, including because of the length of time, as authorized under
division (C) of this section, taken to approve the market rate offer,
cause the duration of the blending period to exceed ten years as
counted from the effective date of the approved market rate offer.
Additionally, any such alteration shall be limited to an alteration
affecting the prospective proportions used during the blending period
and shall not affect any blending proportion previously approved and
applied by the commission under this division.

(F)
An electric distribution utility that has received commission
approval of its first application under division (C) of this section
shall not, nor ever shall be authorized or required by the commission
to, file an application under section 4928.143 of the Revised Code
.

Sec.
4928.144.
The
public utilities commission by order may authorize any just and
reasonable phase-in of any electric distribution utility
rate
or
price
established under sections 4928.141
to
4928.143
and
4928.142
of
the Revised Code, and inclusive of carrying charges, as the
commission considers necessary to ensure
rate
or
price
stability for consumers. If the commission's order includes such a
phase-in, the order also shall provide for the creation of regulatory
assets pursuant to generally accepted accounting principles, by
authorizing the deferral of incurred costs equal to the amount not
collected, plus carrying charges on that amount. Further, the order
shall authorize the collection of those deferrals through a
nonbypassable surcharge on any such rate or price so established for
the electric distribution utility by the commission.

Sec.
4928.149.
No
electric distribution utility may use any electric energy storage
system to participate in the wholesale market, if the utility
purchased or acquired that system for distribution service.

Sec.
4928.1410.
If
an electric distribution utility has an existing electric security
plan under which the commission had authorized the creation or
continuation of riders, then, to the extent those riders will cease
to exist after termination of the electric security plan, the
electric distribution utility is authorized to create necessary
regulatory assets or liabilities, along with carrying costs at the
utility's weighted average cost of debt, for the resolution of any
outstanding under-collection or over-collection of funds under such
riders. The resolution of such regulatory assets or liabilities shall
be addressed in the first distribution rate case under section
4909.18 of the Revised Code that occurs after the plan's expiration.

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:

(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 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 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
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 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 (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 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, 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
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 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;

(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 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 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 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;

(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;

(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 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) 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;

(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 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.

(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
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 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 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 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 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 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

A

By
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%

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.

(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 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 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 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.

(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 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 megawatt hour
shall not equal less than one unit of credit. Renewable energy
resources do not have to be converted to electricity in order to be
eligible to receive renewable energy credits. The rules shall specify
that, for purposes of converting the quantity of energy derived from
biologically derived methane gas to an electricity equivalent, one
megawatt hour equals 3,412,142 British thermal units.

(2)
The rules also shall provide for this state a system of registering
renewable energy credits by specifying which of any generally
available registries shall be used for that purpose and not by
creating a registry. That selected system of registering renewable
energy credits shall allow a hydroelectric generating facility to be
eligible for obtaining renewable energy credits and shall allow
customer-sited projects or actions the broadest opportunities to be
eligible for obtaining renewable energy credits.

(C)

Beginning
January 1, 2020, a qualifying solar resource as defined in section
3706.40 of the Revised Code is not eligible to obtain a renewable
energy credit under this section for any megawatt hour for which the
resource has been issued a solar energy credit under section 3706.45
of the Revised Code.

(D)

Except
for compressed natural gas that has been produced from biologically
derived methane gas, energy generated by using natural gas as a
resource is not eligible to obtain a renewable energy credit under
this section.

Sec.
4928.73.
(A)
As used in this section:

(1)
"Mercantile customer member" means a mercantile customer
connected to a mercantile customer self-power system.

(2)
"Mercantile customer self-power system" means one or more
electric generation facilities, electric storage facilities, or both,
along with any associated facilities, that meet all of the following:

(a)
Produce electricity primarily for the consumption of a mercantile
customer member or a group of mercantile customer members;

(b)
Connect directly to the mercantile customer member's side of the
electric meter;

(c)
Deliver electricity to the mercantile customer member's side of the
electric meter without the use of an electric distribution utility's
or electric cooperative's distribution system or transmission system;

(d)
Is located on either of the following:

(i)
A property owned or controlled by a mercantile customer member or the
entity that owns or operates the mercantile customer self-power
system;

(ii)
Land adjacent to a mercantile customer member if the facilities
connect directly with the customer.

(B)
The mercantile customer self-power system may be owned or operated by
a mercantile customer member, group of mercantile customer members,
or an entity that is not a mercantile customer member.

(C)
A mercantile customer self-power system may provide electric
generation service to one or more mercantile customers.

(D)
The public utilities commission shall adopt rules to implement this
section that are applicable to electric distribution utilities.

(E)
Nothing in this section prohibits an electric distribution utility or
an electric cooperative from charging a mercantile customer for
distribution or transmission service used by a mercantile customer.

Sec.
4928.83.
(A)
Not later than May 31, 2026, every electric distribution utility in
the state shall develop and publicly share distribution system
hosting capacity maps. The utility shall ensure that the maps are
available on the utility's web site and shall be updated at least
once per quarter.

(B)
The maps described in division (A) of this section shall include, at
a minimum:

(1)
Total available distribution hosting capacity, expressed in
megawatts, for new loads;

(2)
Separate hosting capacity availability for distributed energy
resources or a separate distributed energy resource specific map;

(3)
Geographic locations and voltage levels of circuits and substations;

(4)
Total, existing, and queued loads or generation exceeding one
megawatt per circuit and substation;

(5)
Available substation and circuit capacity expressed in megawatts.

(C)
The public utilities commission shall hold at least two stakeholder
meetings annually to receive input on map design, data accuracy, and
usability. In addition, the commission shall establish uniform
reporting standards to ensure consistency across all electric
distribution utilities. The commission may also require utilities to
include additional data points as necessary to improve transparency
and planning.

(D)
Each electric distribution utility shall publish annual reliability
reports, including the following metrics, identified per circuit:

(1)
The system average interruption frequency index, representing the
average number of interruptions per customer;

(2)
The customer average interruption duration index, representing the
average interruption duration or average time to restore service per
interrupted customer;

(3)
Customers experiencing multiple interruptions, which identifies
customers experiencing at least five interruptions annually divided
by the total number of customers served;

(4)
Customers experiencing long interruption durations, which identifies
customers that experienced outages of one or more hours in duration
divided by the total number of customers served;

(5)
Average outage frequency and duration per circuit and substation;

(6)
Identification of circuits and substations with persistent
reliability issues;

(7)
Planned and completed upgrades to enhance grid reliability.

(E)
The commission shall review and publish a statewide reliability
report annually, summarizing trends and recommending grid
modernization measures.

Sec.
4928.86.
(A)
Except as provided in division (C) of this section, each entity that
owns or controls transmission facilities located in this state and is
not a regional transmission organization shall create a heat map that
includes both of the following:

(1)
For major transmission lines and substations, the additional power
load the lines and substations can take at the time that the map is
created, accounting for all signed electric service agreements;

(2)
The amount of localized generation that can be hosted on each
transmission line.

(B)
If a heat map created under this section is not critical electric
infrastructure information, then the entity that created the map
shall publish the map on the entity's web site.

(C)
The following entities are exempt from the requirements of this
section:

(1)
An electric utility owned or operated by a municipal corporation;

(2)
An electric cooperative.

Sec.
4929.20.
(A)
(A)(1)

No governmental aggregator as defined in division (K)(1) of section
4929.01 of the Revised Code or no retail natural gas supplier shall
provide a competitive retail natural gas service on or after thirteen
months following
the
effective date of this section

June 26, 2001,

to a consumer in this state without first being certified by the
public utilities commission regarding its managerial, technical, and
financial capability to provide that service and providing reasonable
financial assurances sufficient to protect customers and natural gas
companies from default.
In
addition, a retail natural gas supplier may be required to provide a
performance bond sufficient to protect customers and natural gas
companies from default.

Certification shall be granted pursuant to procedures and standards
the commission shall prescribe in accordance with rules adopted under
section 4929.10 of the Revised Code. However, certification or
certification renewal shall be deemed approved thirty days after the
filing of an application with the commission unless the commission
suspends that approval for good cause shown. In the case of such a
suspension, the commission shall act to approve or deny certification
or certification renewal to the applicant not later than ninety days
after the date of the suspension.

(2)
The commission shall establish rules to require a competitive retail
natural gas supplier to maintain financial assurances sufficient to
protect customers and natural gas companies from default. Such rules
also shall specifically allow a natural gas company to set reasonable
standards for its security and the security of its customers through
financial requirements set in its tariffs.

(3)
As used in division (A)(2) of this section, "retail natural gas
supplier" has the same meaning as in section 4929.01 of the
Revised Code, but excludes a broker or aggregator.

(B)
Capability standards adopted in rules pursuant to division (A) of
this section shall be sufficient to ensure compliance with section
4929.22 of the Revised Code and with the minimum service requirements
established under section 4929.23 of the Revised Code. The standards
shall allow flexibility for voluntary aggregation, to encourage
market creativity in responding to consumer needs and demands. The
rules shall include procedures for biennially renewing certification.

(C)(1)
The commission may suspend, rescind, or conditionally rescind the
certification of any retail natural gas supplier or governmental
aggregator issued under this section if the commission determines,
after reasonable notice and opportunity for hearing, that the retail
natural gas supplier or governmental aggregator has failed to comply
with any applicable certification standards prescribed in rules
adopted pursuant to this section or section 4929.22 of the Revised
Code.

(2)
An affected natural gas company may file an application with the
commission for approval of authority to recover in accordance with
division (C)(2) of this section incremental costs reasonably and
prudently incurred by the company in connection with the commission's
continuation, suspension, rescission, or conditional rescission of a
particular retail natural gas supplier's certification under division
(C)(1) of this section. Upon the filing of such an application, the
commission shall conduct an audit of such incremental costs as are
specified in the application. Cost recovery shall be through a rider
on the base rates of customers of the company for which there is a
choice of supplier of commodity sales service as a result of revised
schedules approved under division (C) of section 4929.29 of the
Revised Code, a rule or order adopted or issued by the commission
under Chapter 4905. of the Revised Code, or an exemption granted by
the commission under sections 4929.04 to 4929.08 of the Revised Code.
The rider shall take effect ninety days after the date of the
application's filing unless the commission, based on the audit
results and for good cause shown, sets the matter for hearing. After
the hearing, the commission shall approve the application, and
authorize such cost recovery rider effective on the date specified in
the order, only for such incremental costs as the commission
determines were reasonably and prudently incurred by the company in
connection with the continuation, suspension, rescission, or
conditional rescission of a retail natural gas supplier's
certification under division (C)(1) of this section. Any proceeding
under division (C)(2) of this section shall be governed by Chapter
4903. of the Revised Code.

(D)
No natural gas company, on and after thirteen months following

the effective date of this section

June 26, 2001
,
shall knowingly distribute natural gas, to a retail consumer in this
state, for any governmental aggregator, as defined in division (K)(1)
of section 4929.01 of the Revised Code, or retail natural gas
supplier, that has not been certified by the commission pursuant to
this section.

(E)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
under section 4929.20 of the Revised Code is not subject to sections
121.95 to 121.953 of the Revised Code.

Sec.
4929.221.
(A)
If a competitive retail natural gas service supplier offers a
residential customer or non-mercantile commercial customer a contract
for a fixed introductory rate that converts to a variable rate upon
the expiration of the fixed rate, the supplier shall send two notices
to each residential customer and non-mercantile commercial customer
that enters into such a contract. Each notice shall provide all of
the following information to the customer:

(1)
The fixed rate that is expiring under the contract;

(2)
The expiration date of the contract's fixed rate;

(3)
The public utilities commission web site that, as a comparison tool,
lists rates offered by competitive retail natural gas service
suppliers.

(B)
The second notice shall include all the information required under
division (A) of this section and shall also identify the initial rate
to be charged upon the contract's conversion to a variable rate.

(C)
The notices shall be sent by standard United States mail or
electronically with a customer's verifiable consent as follows:

(1)
The supplier shall send the first notice not earlier than ninety days
and not later than sixty days prior to the expiration of the fixed
rate.

(2)
The supplier shall send the second notice not earlier than forty-five
days and not later than fifteen days prior to the expiration of the
fixed rate.

(D)
A competitive retail natural gas service supplier shall provide an
annual notice, by standard United States mail or electronically with
a customer's verifiable consent, to each residential customer and
non-mercantile commercial customer that has entered into a contract
with the supplier that has converted to a variable rate upon the
expiration of the contract's fixed introductory rate. The notice
shall inform the customer that the customer is currently subject to a
variable rate and that other fixed rate contracts are available.

(E)
Not later than one hundred fifty days after the effective date of
this section, the commission shall adopt rules in order to implement
divisions (A) to (D) of this section. The rules, at a minimum, shall
include the following requirements regarding the notices required
under divisions (A) to (D) of this section:

(1)
To use clear and unambiguous language in order to enable the customer
to make an informed decision;

(2)
To design the notices in a way to ensure that they cannot be confused
with marketing materials.

(F)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
under section 4929.221 of the Revised Code is not subject to sections
121.95 to 121.953 of the Revised Code.

Sec.
4929.222.
(A)
As used in this section, "customer account information"
means a unique natural gas company number or other customer
identification number used by the company to identify a customer and
the customer's account record.

(B)
The public utilities commission shall adopt rules to ensure that a
natural gas company processes a customer's change in competitive
retail natural gas supplier by using customer account information. A
customer who consents to a change of supplier shall not be required
to provide customer account information to the supplier if the
customer provides a valid form of government-issued identification
issued to the customer or a sufficient alternative form of
identification that allows the supplier to establish the customer's
identity accurately.

(C)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
under this section is not subject to sections 121.95 to 121.953 of
the Revised Code.

Sec.
4933.81.
As
used in sections 4933.81 to 4933.90 of the Revised Code:

(A)
"Electric supplier" means any electric light company as
defined in section 4905.03 of the Revised Code, including electric
light companies organized as nonprofit corporations, but not
including municipal corporations or other units of local government
that provide electric service.

(B)
"Adequate facilities" means distribution lines or
facilities having sufficient capacity to meet the maximum estimated
electric service requirements of its existing customers and of any
new customer occurring during the year following the commencement of
permanent electric service, and to assure all such customers of
reasonable continuity and quality of service. Distribution facilities
and lines of an electric supplier shall be considered "adequate
facilities" if such supplier offers to undertake to make its
distribution facilities and lines meet such service requirements and,
in the determination of the public utilities commission, can do so
within a reasonable time.

(C)
"Distribution line" means any electric line that is being
or has been used primarily to provide electric service directly to
electric load centers by the owner of such line.

(D)
"Existing distribution line" means any distribution line of
an electric supplier which was in existence on January 1, 1977, or
under construction on that date.

(E)
"Electric load center" means all the electric-consuming
facilities of any type or character owned, occupied, controlled, or
used by a person at a single location, which facilities have been,
are, or will be connected to and served at a metered point of
delivery and to which electric service has been, is, or will be
rendered.

(F)
"Electric service" means retail electric service furnished
to an electric load center for ultimate consumption, but excludes
furnishing electric power or energy at wholesale for resale. In the
case of a for-profit electric supplier and beginning on the starting
date of competitive retail electric service as defined in section
4928.01 of the Revised Code, "electric service" also
excludes a competitive retail electric service
.

,
and, starting after the effective date of amendments to this section
by this act, excludes:

(1)
Retail electric service provided to a mercantile customer member by a
mercantile customer self-power system connected to that mercantile
customer member as those terms are defined in section 4928.73 of the
Revised Code;

(2)
Retail electric service provided to an electric load center to the
extent the center is acting as a self-generator as defined in section
4928.01 of the Revised Code.

In
the case of a not-for-profit electric supplier and beginning on that

competitive
retail electric service
starting
date, "electric service" also excludes any service
component of competitive retail electric service that is specified in
an irrevocable filing the electric supplier makes with the public
utilities commission for informational purposes only to eliminate
permanently its certified territory under sections 4933.81 to 4933.90
of the Revised Code as to that service component

and further excludes any new electric load centers going into service
after the effective date of amendments to this section by this act
that use retail electric service described in division (F)(1) or (2)
of this section
.
The filing shall specify the date on which such territory is so
eliminated. Notwithstanding division (B) of section 4928.01 of the
Revised Code, such a service component may include retail ancillary,
metering, or billing and collection service irrespective of whether
that service component has or has not been declared competitive under
section 4928.04 of the Revised Code. Upon receipt of the filing by
the commission, the not-for-profit electric supplier's certified
territory shall be eliminated permanently as to the service component
specified in the filing as of the date specified in the filing. As
used in this division, "competitive retail electric service"
and "retail electric service" have the same meanings as in
section 4928.01 of the Revised Code.

(G)
"Certified territory" means a geographical area the
boundaries of which have been established pursuant to sections
4933.81 to 4933.90 of the Revised Code within which an electric
supplier is authorized and required to provide electric service.

(H)
"Other unit of local government" means any governmental
unit or body that may come into existence after July 12, 1978, with
powers and authority similar to those of a municipal corporation, or
that is created to replace or exercise the relevant powers of any one
or more municipal corporations.

Sec.
4935.04.
(A)
As used in this chapter:

(1)
"Major utility facility" means:

(a)
An electric transmission line and associated facilities of a design
capacity of one hundred twenty-five kilovolts or more;

(b)
A gas or natural gas transmission line and associated facilities
designed for, or capable of, transporting gas or natural gas at
pressures in excess of one hundred twenty-five pounds per square
inch.

"Major
utility facility" does not include electric, gas, or natural gas
distributing lines and gas or natural gas gathering lines and
associated facilities as defined by the public utilities commission;
facilities owned or operated by industrial firms, persons, or
institutions that produce or transmit gas or natural gas, or
electricity primarily for their own use or as a byproduct of their
operations; gas or natural gas transmission lines and associated
facilities over which an agency of the United States has certificate
jurisdiction; facilities owned or operated by a person furnishing gas
or natural gas directly to fifteen thousand or fewer customers within
this state.

(2)
"Person" has the meaning set forth in section 4906.01 of
the Revised Code.

(3)
"Advanced transmission technologies" has the same meaning
as in section 4906.01 of the Revised Code.

(B)
Each person owning or operating a gas or natural gas transmission
line and associated facilities within this state over which an agency
of the United States has certificate jurisdiction shall furnish to
the commission a copy of the energy information filed by the person
with that agency of the United States.

(C)
Each person owning or operating a major utility facility within this
state, or furnishing gas, natural gas, or electricity directly to
more than fifteen thousand customers within this state shall furnish
a report to the commission for its review. The report shall be
furnished annually, except that for a gas or natural gas company the
report shall be furnished every three years. The report shall be
termed the long-term forecast report and shall contain:

(1)
A year-by-year, ten-year forecast of annual energy demand, peak load,
reserves, and a general description of the resource planning
projections to meet demand;

(2)
A range of projected loads during the period;

(3)
A description of major utility facilities planned to be added or
taken out of service in the next ten years, including, to the extent
the information is available, prospective sites for transmission line
locations;

(4)
For gas and natural gas, a projection of anticipated supply, supply
prices, and sources of supply over the forecast period;

(5)
A description of proposed changes in the transmission system planned
for the next five years;

(6)
A month-by-month forecast of both energy demand and peak load for
electric utilities, and gas sendout for gas and natural gas
utilities, for the next two years. The report shall describe the
major utility facilities that, in the judgment of such person, will
be required to supply system demands during the forecast period. The
report from a gas or natural gas utility shall cover the ten- and
five-year periods next succeeding the date of the report, and the
report from an electric utility shall cover the twenty-, ten-, and
five-year periods next succeeding the date of the report. Each report
shall be made available to the public and furnished upon request to
municipal corporations and governmental agencies charged with the
duty of protecting the environment or of planning land use. The
report shall be in such form and shall contain such information as
may be prescribed by the commission.

Each
person not owning or operating a major utility facility within this
state and serving fifteen thousand or fewer gas or natural gas, or
electric customers within this state shall furnish such information
as the commission requires.

(7)
For electric transmission, a person shall include an evaluation and
report of the potential use of, or investment in, one or more
advanced transmission technologies to enable the electric utility to
safely, reliably, efficiently, and cost-effectively meet electric
system demand through its major utility facilities.

The
report shall identify which advanced transmission technologies were
considered as a part of the review of the major utility facilities
for the next five years. A person shall also include a cost
evaluation comparing costs of traditional transmission investments
and costs of advanced transmission technologies for the projects
considered on the major utility facilities applied individually,
together, or in sequence. The report shall also include an advanced
transmission technology congestion mitigation study to
cost-effectively maximize the delivery of energy resources in the
near term that:

(a)
Identifies locations on the entity's transmission system where
congestion has occurred for a total of fifty hours per year or more
during the last three years or is likely to occur during the next
five years, including due to planned transmission outages or other
factors;

(b)
Estimates the frequency of congestion at each location and the
increased cost to ratepayers resulting from the substitution of
higher-priced electricity;

(c)
Evaluates the technical feasibility and estimates the cost of
installing one or more advanced transmission technologies to address
each instance of grid congestion identified in division (C)(7)(a) of
this section and projects the grid-enhancing technology's efficacy in
reducing congestion;

(d)
Analyzes the cost-effectiveness of installing grid-enhancing
technologies to address each instance of congestion identified in
division (C)(7)(a) of this section by using the information developed
in division (C)(7)(c) of this section to calculate the payback period
of each installation, using a methodology developed by the
commission;

(e)
Proposes an implementation plan, including a schedule and cost
estimate, to install grid-enhancing technologies at each congestion
point at which the payback period is less than or equal to a value
determined by the commission, in order to maximize transmission
system capacity, and explains the entity's current line rating
methodology.

(D)
The commission shall:

(1)
Review and comment on the reports filed under division (C) of this
section, and make the information contained in the reports readily
available to the public and other interested government agencies;

(2)
Compile and publish each year the general locations of proposed and
existing transmission line routes within its jurisdiction as
identified in the reports filed under division (C) of this section,
identifying the general location of such sites and routes and the
approximate year when construction is expected to commence, and to
make such information readily available to the public, to each
newspaper of daily or weekly circulation within the area affected by
the proposed site and route, and to interested federal, state, and
local agencies;

(3)
Hold a public hearing upon the showing of good cause to the
commission by an interested party.

If
a hearing is held, the commission shall fix a time for the hearing,
which shall be not later than ninety days after the report is filed,
and publish notice of the date, time of day, and location of the
hearing in a newspaper of general circulation in each county in which
the person furnishing the report has or intends to locate a major
utility facility and will provide service during the period covered
by the report. The notice shall be published not less than fifteen
nor more than thirty days before the hearing and shall state the
matters to be considered.

(4)
Require such information from persons subject to its jurisdiction as
necessary to assist in the conduct of hearings and any investigation
or studies it may undertake;

(5)
Conduct any studies or investigations that are necessary or
appropriate to carry out its responsibilities under this section.

(6)
Review and evaluate that advanced transmission technologies were
properly reported in accordance with division (C)(7) of this section
and allow stakeholders to provide comments.

(7)
Approve advanced transmission technology congestion mitigation
implementation plans, including cost recovery.

(E)(1)
The scope of the hearing held under division (D)(3) of this section
shall be limited to issues relating to forecasting. The power siting
board, the office of consumers' counsel, and all other persons having
an interest in the proceedings shall be afforded the opportunity to
be heard and to be represented by counsel. The commission may adjourn
the hearing from time to time.

(2)
The hearing shall include, but not be limited to, a review of:

(a)
The projected loads and energy requirements for each year of the
period;

(b)
The estimated installed capacity and supplies to meet the projected
load requirements.

(F)
Based upon the report furnished pursuant to division (C) of this
section and the hearing record, the commission, within ninety days
from the close of the record in the hearing, shall determine if:

(1)
All information relating to current activities, facilities
agreements, and published energy policies of the state has been
completely and accurately represented;

(2)
The load requirements are based on substantially accurate historical
information and adequate methodology;

(3)
The forecasting methods consider the relationships between price and
energy consumption;

(4)
The report identifies and projects reductions in energy demands due
to energy conservation measures in the industrial, commercial,
residential, transportation, and energy production sectors in the
service area;

(5)
Utility company forecasts of loads and resources are reasonable in
relation to population growth estimates made by state and federal
agencies, transportation, and economic development plans and
forecasts, and make recommendations where possible for necessary and
reasonable alternatives to meet forecasted electric power demand;

(6)
The report considers plans for expansion of the regional power grid
and the planned facilities of other utilities in the state;

(7)
All assumptions made in the forecast are reasonable and adequately
documented.

(G)
The commission shall adopt rules under section 111.15 of the Revised
Code to establish criteria for evaluating the long-term forecasts of
needs for gas and electric transmission service, to conduct hearings
held under this section, to establish reasonable fees to defray the
direct cost of the hearings and the review process, and such other
rules as are necessary and convenient to implement this section.

(H)
The hearing record produced under this section and the determinations
of the commission shall be introduced into evidence and shall be
considered in determining the basis of need for power siting board
deliberations under division (A)(1) of section 4906.10 of the Revised
Code. The hearing record produced under this section shall be
introduced into evidence and shall be considered by the commission in
its initiation of programs, examinations, and findings under section
4905.70 of the Revised Code, and shall be considered in the
commission's determinations with respect to the establishment of just
and reasonable rates under section 4909.15 of the Revised Code and
financing utility facilities and authorizing issuance of all
securities under sections 4905.40, 4905.401, 4905.41, and 4905.42 of
the Revised Code. The forecast findings also shall serve as the basis
for all other energy planning and development activities of the state
government where electric and gas data are required.

(I)(1)
No court other than the supreme court shall have power to review,
suspend, or delay any determination made by the commission under this
section, or enjoin, restrain, or interfere with the commission in the
performance of official duties. A writ of mandamus shall not be
issued against the commission by any court other than the supreme
court.

(2)
A final determination made by the commission shall be reversed,
vacated, or modified by the supreme court on appeal, if, upon
consideration of the record, such court is of the opinion that such
determination was unreasonable or unlawful.

The
proceeding to obtain such reversal, vacation, or modification shall
be by notice of appeal, filed with the commission by any party to the
proceeding before it, against the commission, setting forth the
determination appealed from and errors complained of. The notice of
appeal shall be served, unless waived, upon the commission by leaving
a copy at the office of the chairperson of the commission at
Columbus. The court may permit an interested party to intervene by
cross-appeal.

(3)
No proceeding to reverse, vacate, or modify a determination of the
commission is commenced unless the notice of appeal is filed within
sixty days after the date of the determination.

Sec.
5727.01.
As
used in this chapter:

(A)
"Public utility" means each person referred to as a
telephone company, telegraph company, electric company, natural gas
company, pipe-line company, water-works company, water transportation
company, heating company, rural electric company, railroad company,
combined company, or energy company.

(B)
"Gross receipts" means the entire receipts for business
done by any person from operations as a public utility, or incidental
thereto, or in connection therewith, including any receipts received
under Chapter 4928. of the Revised Code. The gross receipts for
business done by an incorporated company engaged in operation as a
public utility includes the entire receipts for business done by such
company under the exercise of its corporate powers, whether from the
operation as a public utility or from any other business.

(C)
"Rural electric company" means any nonprofit corporation,
organization, association, or cooperative engaged in the business of
supplying electricity to its members or persons owning an interest
therein in an area the major portion of which is rural. "Rural
electric company" excludes an energy company.

(D)
Any person:

(1)
Is a telegraph company when engaged in the business of transmitting
telegraphic messages to, from, through, or in this state;

(2)
Is a telephone company when primarily engaged in the business of
providing local exchange telephone service, excluding cellular radio
service, in this state;

(3)
Is an electric company when engaged in the business of generating,
transmitting, or distributing electricity within this state for use
by others, but excludes a rural electric company or an energy
company;

(4)
Is a natural gas company when engaged in the business of supplying or
distributing natural gas for lighting, power, or heating purposes to
consumers within this state, excluding a person that is a
governmental aggregator or retail natural gas supplier as defined in
section 4929.01 of the Revised Code;

(5)
Is a pipe-line company when engaged in the business of transporting
natural gas, oil, or coal or its derivatives through pipes or tubing,
either wholly or partially within this state;

(6)
Is a water-works company when engaged in the business of supplying
water through pipes or tubing, or in a similar manner, to consumers
within this state;

(7)
Is a water transportation company when engaged in the transportation
of passengers or property, by boat or other watercraft, over any
waterway, whether natural or artificial, from one point within this
state to another point within this state, or between points within
this state and points without this state;

(8)
Is a heating company when engaged in the business of supplying water,
steam, or air through pipes or tubing to consumers within this state
for heating purposes;

(9)
Is a railroad company when engaged in the business of owning or
operating a railroad either wholly or partially within this state on
rights-of-way acquired and held exclusively by such company, or
otherwise, and includes a passenger, street, suburban, or interurban
railroad company;

(10)
Is an energy company when engaged in the business of generating,
transmitting,
storing
and releasing,
or
distributing electricity within this state for use by others solely
from an energy facility with an aggregate nameplate capacity in
excess of two hundred fifty kilowatts.

As
used in division (D)(2) of this section, "local exchange
telephone service" means making available or furnishing access
and a dial tone to all persons within a local calling area for use in
originating and receiving voice grade communications over a switched
network operated by the provider of the service within the area and
for gaining access to other telecommunication services.

(E)
"Taxable property" means the property required by section
5727.06 of the Revised Code to be assessed by the tax commissioner,
but does not include either of the following:

(1)
An item of tangible personal property that for the period subsequent
to the effective date of an air, water, or noise pollution control
certificate and continuing so long as the certificate is in force,
has been certified as part of the pollution control facility with
respect to which the certificate has been issued;

(2)
An item of tangible personal property that during the construction of
a plant or facility and until the item is first capable of operation,
whether actually used in operation or not, is incorporated in or
being held exclusively for incorporation in that plant or facility.

Notwithstanding
section 5701.03 of the Revised Code, for tax year 2006 and
thereafter, "taxable property" includes patterns, jigs,
dies, and drawings of an electric company or a combined company for
use in the activity of an electric company.

(F)
"Taxing district" means a municipal corporation or
township, or part thereof, in which the aggregate rate of taxation is
uniform.

(G)
"Telecommunications service" has the same meaning as in
division (AA) of section 5739.01 of the Revised Code.

(H)
"Interexchange telecommunications company" means a person
that is engaged in the business of transmitting telephonic messages
to, from, through, or in this state, but that is not a telephone
company.

(I)
"Sale and leaseback transaction" means a transaction in
which a public utility or interexchange telecommunications company
sells any tangible personal property to a person other than a public
utility or interexchange telecommunications company and leases that
property back from the buyer.

(J)
"Production equipment" means all taxable steam, nuclear,
hydraulic, renewable resource, clean coal technology, and other
production plant equipment used to generate

or store and release

electricity. For tax years prior to 2001, "production equipment"
includes taxable station equipment that is located at a production
plant.

(K)
"Tax year" means the year for which property or gross
receipts are subject to assessment under this chapter. This division
does not limit the tax commissioner's ability to assess and value
property or gross receipts outside the tax year.

(L)
"Combined company" means any person engaged in the activity
of an electric company or rural electric company that is also engaged
in the activity of a heating company or a natural gas company, or any
combination thereof.

(M)
"Public utility property lessor" means any person, other
than a public utility or an interexchange telecommunications company,
that leases personal property, other than in a sale and leaseback
transaction, to a public utility, other than a railroad, water
transportation, telephone, or telegraph company if the property would
be taxable property if owned by the public utility. A public utility
property lessor is subject to this chapter only for the purposes of
reporting and paying tax on taxable property it leases to a public
utility other than a telephone or telegraph company. A public utility
property lessor that leases property to a public utility other than a
telephone or telegraph company is not a public utility, but it shall
report its property and be assessed in the same manner as the utility
to which it leases the property.

(N)
"Energy resource" means any of the following:

(1)

"
Renewable
energy resource
"

as defined in section 4928.01 of the Revised Code;

(2)

"
Clean
coal technology
"

as described in division (A)(34)(c) of section 4928.01 of the Revised
Code;

(3)

"
Advanced
nuclear technology
"

as described in division (A)(34)(d) of section 4928.01 of the Revised
Code;

(4)

"
Cogeneration
technology
"

as described in division (A)(34)(b) of section 4928.01 of the Revised
Code
;

(5)
Energy storage system
.

(O)
"Energy conversion equipment" means tangible personal
property connected to a wind turbine tower, connected to and behind
solar radiation collector areas and designed to convert the radiant
energy of the sun into electricity or heat, or connected to any other
property used to generate
or
store and release
electricity
from an energy resource, through which electricity is transferred to
controls, transformers, or power electronics and to the transmission
interconnection point.

"Energy
conversion equipment" includes, but is not limited to,
inverters,
batteries,

switch gears, wiring, collection lines, substations, ancillary
tangible personal property, or any lines and associated tangible
personal property located between substations and the transmission
interconnection point.

(P)
"Energy facility" means one or more interconnected wind
turbines, solar panels,
energy
storage systems,
or
other tangible personal property used to generate
or
store and release
electricity
from an energy resource owned by the same person, including:

(1)
All interconnection equipment, devices, and related apparatus
connected to such tangible personal property;

(2)
All cables, equipment, devices, and related apparatus that connect
the generators to an electricity grid or to a building or facility
that directly consumes the electricity produced, that facilitate the
transmission of electrical energy from the generators to the grid,
building, or facility, and, where applicable, that transform voltage
before ultimate delivery of electricity to the grid, building, or
facility.

"Energy
facility" includes buildings, structures, improvements, or
fixtures exclusively used to house, support, or stabilize tangible
personal property constituting the facility or that are otherwise
necessary for the operation of that property; and so much of the land
on which such tangible personal property is situated as is required
for operation of the facility and is not devoted to some other use,
not to exceed, in the case of wind turbines, one-half acre for each
wind turbine, and regardless of whether the land is owned by the
owner or lessee of the tangible personal property or by another
person.

(Q)
"Nameplate capacity" means the original interconnected
maximum rated alternating current output of a generator or other
electric production equipment under specific conditions designated by
the manufacturer, expressed in the number of kilowatts or megawatts.

(R)
"Energy storage system" means tangible personal property
that permits the storage of energy for future use as electricity.

Sec.
5727.111.
As
used in this section, "convert" means to switch fuel input
from one energy source to another and "repower" means to
replace enough of the original taxable production equipment to make
an original production facility equivalent to a new facility, such
that at least eighty per cent of the true value of the taxable
production equipment is derived from new taxable production equipment
installed as part of the replacement project.
The
taxable property of each public utility, except a railroad company,
and of each interexchange telecommunications company shall be
assessed at the following percentages of true value:

(A)
In the case of a rural electric company,

one of the following

fifty
:

(1)
Fifty
per
cent in the case of its taxable transmission and distribution
property
and
its
or
energy conversion equipment first subject to taxation in this state
before tax year 2027;

(2)
Seven per cent in the case of its taxable production or
energy
conversion equipment
,
and twenty-five

first subject to taxation in this state for tax year 2027 and
thereafter or any other taxable production equipment that is either
converted or repowered;

(3)
Twenty-five
per
cent
for

in
the case of
all
its other taxable property
;
.

(B)
In the case of a telephone or telegraph company, twenty-five per cent
for taxable property first subject to taxation in this state for tax
year 1995 or thereafter for tax years before tax year 2007, and
pursuant to division (H) of section 5711.22 of the Revised Code for
tax year 2007 and thereafter, and the following for all other taxable
property:

(1)
For tax years prior to 2005, eighty-eight per cent;

(2)
For tax year 2005, sixty-seven per cent;

(3)
For tax year 2006, forty-six per cent;

(4)
For tax year 2007 and thereafter, pursuant to division (H) of section
5711.22 of the Revised Code.

(C)
Twenty-five per cent in the case of (1) a natural gas company or (2)
a water-works company for taxable property first subject to taxation
in this state for tax year 2017 and thereafter
;
.

(D)
Eighty-eight per cent in the case of
a
pipe-line company,

a water-works company for taxable property first subject to taxation
in this state before tax year 2017, or a heating company
;
.

(E)(1)
For tax year 2005, eighty-eight per cent in the case of the taxable
transmission and distribution property of an electric company, and
twenty-five per cent for all its other taxable property;

(2)
For tax year 2006 and each tax year thereafter, in
(E)
In
the
case of an electric company,
eighty-five

one
of the following:

(1)
Eighty-five
per
cent in the case of its taxable transmission and distribution
property
and
energy conversion equipment
and
its energy conversion equipment,
first
subject to taxation in this state before tax year 2027;

(2)
Twenty-five per cent in the case of its other taxable transmission
and distribution property
and
twenty-four
;

(3)
Seven per cent in the case of its taxable production and energy
conversion equipment first subject to taxation in this state for tax
year 2027 and thereafter or any other taxable production equipment
that is either converted or repowered;

(4)
Twenty-four
per
cent
for

in
the case of
all
its other taxable property.

(F)(1)
Twenty-five per cent in the case of an interexchange
telecommunications company for tax years before tax year 2007;

(2)
Pursuant to division (H) of section 5711.22 of the Revised Code for
tax year 2007 and thereafter.

(G)
Twenty-five per cent in the case of a water transportation company
;
.

(H)

For
tax year 2011 and each tax year thereafter in
In

the
case of an energy company,
twenty-four

one
of the following:

(1)
Eighty-five
per
cent in the case of its taxable
production
equipment,
transmission
and distribution property first subject to taxation in this state
before tax year 2027;

(2)
Twenty-five per cent in the case of its other taxable transmission
and distribution property
and
eighty-five
;

(3)
Seven per cent in the case of its taxable production or energy
conversion equipment first subject to taxation in this state for tax
year 2027 and thereafter or any other taxable production equipment
that is either converted or repowered;

(4)
Twenty-four per cent in the case of its other taxable production
equipment;

(5)
Eighty-five
per
cent
for

in
the case of
all
its other taxable property.

(I)
In the case of a pipeline company, one of the following:

(1)
Eighty-eight per cent of its taxable property first subject to
taxation in this state before tax year 2027;

(2)
Twenty-five per cent in the case of all its other taxable property.

Sec.
5727.75.
(A)
For purposes of this section:

(1)
"Qualified energy project" means an energy project
certified by the director of development pursuant to this section.

(2)
"Energy project" means a project to provide electric power
through the construction, installation, and use of an energy
facility.

(3)
"Alternative energy zone" means a county declared as such
by the board of county commissioners under division (E)(1)(b) or (c)
of this section.

(4)
"Full-time equivalent employee" means the total number of
employee-hours for which compensation was paid to individuals
employed at a qualified energy project for services performed at the
project during the calendar year divided by two thousand eighty
hours. For the purpose of this calculation, "performed at the
project" includes only hours worked at the qualified energy
project and devoted to site preparation or protection, construction
and installation, and the unloading and distribution of materials at
the project site, but does not include hours worked by
superintendents, owners, manufacturers' representatives, persons
employed in a bona fide executive, management, supervisory, or
administrative capacity, or persons whose sole employment on the
project is transporting materials or persons to the project site.

(5)
"Solar energy project" means an energy project composed of
an energy facility using solar panels to generate electricity.

(6)
"Internet identifier of record" has the same meaning as in
section 9.312 of the Revised Code.

(7)
"Applicable year" means the later of the following:

(a)
The tax year in which the secretary of the treasury of the United
States, or the secretary's delegate, determines, in accordance with
section 45Y of the Internal Revenue Code, that the annual greenhouse
gas emissions from the production of electricity in the United States
are equal to or less than twenty-five per cent of the annual
greenhouse gas emissions from the production of electricity in the
United States for calendar year 2022;

(b)
Tax year 2029.

(8)
"Internal Revenue Code" means the Internal Revenue Code as
of

the effective date of this amendment

October 3, 2023
.

(B)(1)
Tangible personal property of a qualified energy project using
renewable energy resources is exempt from taxation for tax years 2011
through the applicable year if all of the following conditions are
satisfied:

(a)
On or before the last day of the tax year preceding the applicable
year, the owner or a lessee pursuant to a sale and leaseback
transaction of the project submits an application to the power siting
board for a certificate under section 4906.20 of the Revised Code, or
if that section does not apply, submits an application for any
approval, consent, permit, or certificate or satisfies any condition
required by a public agency or political subdivision of this state
for the construction or initial operation of an energy project.

(b)
Construction or installation of the energy facility begins on or
after January 1, 2009, and before the first day of the applicable
year. For the purposes of this division, construction begins on the
earlier of the date of application for a certificate or other
approval or permit described in division (B)(1)(a) of this section,
or the date the contract for the construction or installation of the
energy facility is entered into.

(c)
For a qualified energy project with a nameplate capacity of twenty
megawatts or greater, a board of county commissioners of a county in
which property of the project is located has adopted a resolution
under division (E)(1)(b) or (c) of this section to approve the
application submitted under division (E) of this section to exempt
the property located in that county from taxation. A board's adoption
of a resolution rejecting an application or its failure to adopt a
resolution approving the application does not affect the tax-exempt
status of the qualified energy project's property that is located in
another county.

(2)
If tangible personal property of a qualified energy project using
renewable energy resources was exempt from taxation under this
section beginning in any of tax years 2011 through the applicable
year, and the certification under division (E)(2) of this section has
not been revoked, the tangible personal property of the qualified
energy project is exempt from taxation for the tax year following the
applicable year and all ensuing tax years if the property was placed
into service before the first day of the tax year following the
applicable year, as certified in the construction progress report
required under division (F)(2) of this section. Tangible personal
property that has not been placed into service before that date is
taxable property subject to taxation. An energy project for which
certification has been revoked is ineligible for further exemption
under this section. Revocation does not affect the tax-exempt status
of the project's tangible personal property for the tax year in which
revocation occurs or any prior tax year.

(C)
Tangible personal property of a qualified energy project using clean
coal technology, advanced nuclear technology, or cogeneration
technology is exempt from taxation for the first tax year that the
property would be listed for taxation and all subsequent years if all
of the following circumstances are met:

(1)
The property was placed into service before January 1, 2021. Tangible
personal property that has not been placed into service before that
date is taxable property subject to taxation.

(2)
For such a qualified energy project with a nameplate capacity of
twenty megawatts or greater, a board of county commissioners of a
county in which property of the qualified energy project is located
has adopted a resolution under division (E)(1)(b) or (c) of this
section to approve the application submitted under division (E) of
this section to exempt the property located in that county from
taxation. A board's adoption of a resolution rejecting the
application or its failure to adopt a resolution approving the
application does not affect the tax-exempt status of the qualified
energy project's property that is located in another county.

(3)
The certification for the qualified energy project issued under
division (E)(2) of this section has not been revoked. An energy
project for which certification has been revoked is ineligible for
exemption under this section. Revocation does not affect the
tax-exempt status of the project's tangible personal property for the
tax year in which revocation occurs or any prior tax year.

(D)
Except as otherwise provided in this section, real property of a
qualified energy project is exempt from taxation for any tax year for
which the tangible personal property of the qualified energy project
is exempted under this section.

(E)(1)(a)
A person may apply to the director of development for certification
of an energy project as a qualified energy project on or before the
following dates:

(i)
The last day of the tax year preceding the applicable year, for an
energy project using renewable energy resources;

(ii)
December 31, 2017, for an energy project using clean coal technology,
advanced nuclear technology, or cogeneration technology.

(b)
The director shall forward a copy of each application for
certification of an energy project with a nameplate capacity of
twenty megawatts or greater to the board of county commissioners of
each county in which the project is located and to each taxing unit
with territory located in each of the affected counties. Any board
that receives from the director a copy of an application submitted
under this division shall adopt a resolution approving or rejecting
the application unless it has adopted a resolution under division
(E)(1)(c) of this section. A resolution adopted under division
(E)(1)(b) or (c) of this section may require an annual service
payment to be made in addition to the service payment required under
division (G) of this section. The sum of the service payment required
in the resolution and the service payment required under division (G)
of this section shall not exceed nine thousand dollars per megawatt
of nameplate capacity located in the county. The resolution shall
specify the time and manner in which the payments required by the
resolution shall be paid to the county treasurer. The county
treasurer shall deposit the payment to the credit of the county's
general fund to be used for any purpose for which money credited to
that fund may be used.

The
board shall send copies of the resolution to the owner of the
facility and the director by certified mail or, if the board has
record of an internet identifier of record associated with the owner
or director, by ordinary mail and by that internet identifier of
record. The board shall send such notice within thirty days after
receipt of the application, or a longer period of time if authorized
by the director.

(c)
A board of county commissioners may adopt a resolution declaring the
county to be an alternative energy zone and declaring all
applications submitted to the director of development under this
division after the adoption of the resolution, and prior to its
repeal, to be approved by the board.

All
tangible personal property and real property of an energy project
with a nameplate capacity of twenty megawatts or greater is taxable
if it is located in a county in which the board of county
commissioners adopted a resolution rejecting the application
submitted under this division or failed to adopt a resolution
approving the application under division (E)(1)(b) or (c) of this
section.

(2)
The director shall certify an energy project if all of the following
circumstances exist:

(a)
The application was timely submitted.

(b)
For an energy project with a nameplate capacity of twenty megawatts
or greater, a board of county commissioners of at least one county in
which the project is located has adopted a resolution approving the
application under division (E)(1)(b) or (c) of this section.

(c)
No portion of the project's facility was used to supply electricity
before December 31, 2009.

(d)
For construction or installation of a qualified energy project
described in division (B)(1)(b) of this section, that the project is
subject to wage requirements described in section 45(b)(7)(A) of the
Internal Revenue Code and apprenticeship requirements described in
section 45(b)(8)(A)(i) of the Internal Revenue Code, provided both of
the following apply:

(i)
The person applies for such certificate after

the effective date of this amendment

October 3, 2023
.

(ii)
A board of commissioners of at least one county in which the project
is located is required to adopt a resolution approving the
application under division (E)(1)(b) or (c) of this section.

(3)
The director shall deny a certification application if the director
determines the person has failed to comply with any requirement under
this section. The director may revoke a certification if the director
determines the person, or subsequent owner or lessee pursuant to a
sale and leaseback transaction of the qualified energy project, has
failed to comply with any requirement under this section. Upon
certification or revocation, the director shall notify the person,
owner, or lessee, the tax commissioner, and the county auditor of a
county in which the project is located of the certification or
revocation. Notice shall be provided in a manner convenient to the
director.

(F)
The owner or a lessee pursuant to a sale and leaseback transaction of
a qualified energy project shall do each of the following:

(1)
Comply with all applicable regulations;

(2)
File with the director of development a certified construction
progress report before the first day of March of each year during the
energy facility's construction or installation indicating the
percentage of the project completed, and the project's nameplate
capacity, as of the preceding thirty-first day of December. Unless
otherwise instructed by the director of development, the owner or
lessee of an energy project shall file a report with the director on
or before the first day of March each year after completion of the
energy facility's construction or installation indicating the
project's nameplate capacity as of the preceding thirty-first day of
December. Not later than sixty days after June 17, 2010, the owner or
lessee of an energy project, the construction of which was completed
before June 17, 2010, shall file a certificate indicating the
project's nameplate capacity.

(3)
File with the director of development, in a manner prescribed by the
director, a report of the total number of full-time equivalent
employees, and the total number of full-time equivalent employees
domiciled in Ohio, who are employed in the construction or
installation of the energy facility;

(4)
For energy projects with a nameplate capacity of twenty megawatts or
greater, repair all roads, bridges, and culverts affected by
construction as reasonably required to restore them to their
preconstruction condition, as determined by the county engineer in
consultation with the local jurisdiction responsible for the roads,
bridges, and culverts. In the event that the county engineer deems
any road, bridge, or culvert to be inadequate to support the
construction or decommissioning of the energy facility, the road,
bridge, or culvert shall be rebuilt or reinforced to the
specifications established by the county engineer prior to the
construction or decommissioning of the facility. The owner or lessee
of the facility shall post a bond in an amount established by the
county engineer and to be held by the board of county commissioners
to ensure funding for repairs of roads, bridges, and culverts
affected during the construction. The bond shall be released by the
board not later than one year after the date the repairs are
completed. The energy facility owner or lessee pursuant to a sale and
leaseback transaction shall post a bond, as may be required by the
Ohio power siting board in the certificate authorizing commencement
of construction issued pursuant to section 4906.10 of the Revised
Code, to ensure funding for repairs to roads, bridges, and culverts
resulting from decommissioning of the facility. The energy facility
owner or lessee and the county engineer may enter into an agreement
regarding specific transportation plans, reinforcements,
modifications, use and repair of roads, financial security to be
provided, and any other relevant issue.

(5)
Provide or facilitate training for fire and emergency responders for
response to emergency situations related to the energy project and,
for energy projects with a nameplate capacity of twenty megawatts or
greater, at the person's expense, equip the fire and emergency
responders with proper equipment as reasonably required to enable
them to respond to such emergency situations;

(6)(a)
Except as otherwise provided in this division, for projects for which
certification as a qualified energy project was applied for, under
division (E) of this section, before

the effective date of this amendment

October 3, 2023
,
maintain a ratio of Ohio-domiciled full-time equivalent employees
employed in the construction or installation of the energy project to
total full-time equivalent employees employed in the construction or
installation of the energy project of not less than eighty per cent
in the case of a solar energy project, and not less than fifty per
cent in the case of any other energy project. A person applying for
such a qualified energy project may certify to the director of
development that the project will be voluntarily subject to the wage
requirements described in section 45(b)(7)(A) of the Internal Revenue
Code and apprenticeship requirements described in section
45(b)(8)(A)(i) of the Internal Revenue Code as authorized in division
(F)(6)(b) of this section. Upon receipt of that certification, the
project shall comply with division (F)(6)(b) of this section rather
than division (F)(6)(a) of this section.

(b)
For projects for which certification as a qualified energy project
was applied for, under division (E) of this section, on or after

the effective date of this amendment

October 3, 2023
,
maintain a ratio of Ohio-domiciled full-time equivalent employees
employed in the construction or installation of the energy project to
total full-time equivalent employees employed in the construction or
installation of the energy project of not less than seventy per cent
in the case of a solar energy project, and not less than fifty per
cent in the case of any other energy project.

(c)
For purposes of divisions (F)(6)(a) and (b) of this section, in the
case of an energy project for which certification from the power
siting board is required under section 4906.20 of the Revised Code,
the number of full-time equivalent employees employed in the
construction or installation of the energy project equals the number
actually employed or the number projected to be employed in the
certificate application, if such projection is required under
regulations adopted pursuant to section 4906.03 of the Revised Code,
whichever is greater. For all other energy projects, the number of
full-time equivalent employees employed in the construction or
installation of the energy project equals the number actually
employed or the number projected to be employed by the director of
development, whichever is greater. To estimate the number of
employees to be employed in the construction or installation of an
energy project, the director shall use a generally accepted
job-estimating model in use for renewable energy projects, including
but not limited to the job and economic development impact model. The
director may adjust an estimate produced by a model to account for
variables not accounted for by the model.

(7)
For energy projects with a nameplate capacity in excess of twenty
megawatts, establish a relationship with any of the following to
educate and train individuals for careers in the wind or solar energy
industry:

(a)
A member of the university system of Ohio as defined in section
3345.011 of the Revised Code;

(b)
A person offering an apprenticeship program registered with the
employment and training administration within the United States
department of labor or with the apprenticeship council created by
section 4139.02 of the Revised Code;

(c)
A career-technical center, joint vocational school district,
comprehensive career-technical center, or compact career-technical
center;

(d)
A training center operated by a labor organization, or with a
training center operated by a for-profit or nonprofit organization.

The
relationship may include endowments, cooperative programs,
internships, apprenticeships, research and development projects, and
curriculum development.

(8)
Offer to sell power or renewable energy credits from the energy
project to electric distribution utilities or electric service
companies subject to renewable energy resource requirements under
section 4928.64 of the Revised Code that have issued requests for
proposal for such power or renewable energy credits. If no electric
distribution utility or electric service company issues a request for
proposal on or before December 31, 2010, or accepts an offer for
power or renewable energy credits within forty-five days after the
offer is submitted, power or renewable energy credits from the energy
project may be sold to other persons. Division (F)(8) of this section
does not apply if:

(a)
The owner or lessee is a rural electric company or a municipal power
agency as defined in section 3734.058 of the Revised Code.

(b)
The owner or lessee is a person that, before completion of the energy
project, contracted for the sale of power or renewable energy credits
with a rural electric company or a municipal power agency.

(c)
The owner or lessee contracts for the sale of power or renewable
energy credits from the energy project before June 17, 2010.

(9)
Make annual service payments as required by division (G) of this
section and as may be required in a resolution adopted by a board of
county commissioners under division (E) of this section.

(G)
The owner or a lessee pursuant to a sale and leaseback transaction of
a qualified energy project shall make annual service payments in lieu
of taxes to the county treasurer on or before the final dates for
payments of taxes on public utility personal property on the real and
public utility personal property tax list for each tax year for which
property of the energy project is exempt from taxation under this
section. The county treasurer shall allocate the payment on the basis
of the project's physical location. Upon receipt of a payment, or if
timely payment has not been received, the county treasurer shall
certify such receipt or non-receipt to the director of development
and tax commissioner in a form determined by the director and
commissioner, respectively. Each payment shall be in the following
amount:

(1)
In the case of a solar energy project, seven thousand dollars per
megawatt of nameplate capacity located in the county as of the
thirty-first-day of December of the preceding tax year;

(2)
In the case of any other energy project using renewable energy
resources, the following:

(a)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of not less than
seventy-five per cent, six thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of December
of the preceding tax year;

(b)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than
seventy-five per cent but not less than sixty per cent, seven
thousand dollars per megawatt of nameplate capacity located in the
county as of the thirty-first day of December of the preceding tax
year;

(c)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than sixty
per cent but not less than fifty per cent, eight thousand dollars per
megawatt of nameplate capacity located in the county as of the
thirty-first day of December of the preceding tax year.

(3)
In the case of an energy project using clean coal technology,
advanced nuclear technology, or cogeneration technology, the
following:

(a)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of not less than
seventy-five per cent, six thousand dollars per megawatt of nameplate
capacity located in the county as of the thirty-first day of December
of the preceding tax year;

(b)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than
seventy-five per cent but not less than sixty per cent, seven
thousand dollars per megawatt of nameplate capacity located in the
county as of the thirty-first day of December of the preceding tax
year;

(c)
If the project maintains during the construction or installation of
the energy facility a ratio of Ohio-domiciled full-time equivalent
employees to total full-time equivalent employees of less than sixty
per cent but not less than fifty per cent, eight thousand dollars per
megawatt of nameplate capacity located in the county as of the
thirty-first day of December of the preceding tax year.

(H)
The director of development in consultation with the tax commissioner
shall adopt rules pursuant to Chapter 119. of the Revised Code to
implement and enforce this section.

(I)
This section and any payments in lieu of taxes made as required under
this section continue to apply and be required notwithstanding the
enactment of H.B. 15 of the 136th general assembly.

Sec.
5727.76.
(A)
As used in this section, "qualifying property" means
tangible personal property that is dedicated to transporting or
transmitting electricity or natural gas and that is placed into
service in a priority investment area designated under section
122.161 of the Revised Code during a time when that designation is in
effect.

(B)
Qualifying property shall be exempt from taxation for the tax year
following the year in which the property is placed into service and
for the ensuing four tax years.

Section
2.
That
existing sections 122.6511, 3313.372, 3313.373, 4905.03, 4906.01,
4906.03, 4906.06, 4906.07, 4906.10, 4909.04, 4909.05, 4909.052,
4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 4909.173, 4909.174,
4909.18, 4909.19, 4909.191, 4909.42, 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,
4933.81, 4935.04, 5727.01, 5727.111, and 5727.75 of the Revised Code
are hereby repealed.

Section
3.
That
sections 3706.40, 3706.41, 3706.43, 3706.431, 3706.45, 3706.46,
3706.49, 3706.491, 3706.55, 3706.551, 3706.59, 3706.63, 3706.65,
4906.105, 4928.143, 4928.148
,
4928.47
,
and 4928.642 of the Revised Code are hereby repealed.

Section
4.
Beginning
on the effective date of this section, no electric distribution
utility shall collect from its retail customers in this state any
charge that was authorized under section 4928.148 of the Revised Code
prior to the repeal of that section by this act for retail recovery
of prudently incurred costs related to a legacy generation resource.
Beginning on the effective date of this section, the electric
distribution utility shall not apply for, and the public utilities
commission shall not authorize, any rider or cost recovery mechanism
for a legacy generation resource.

The
public utilities commission shall continue any investigation
commenced pursuant to section 4928.148 of the Revised Code prior to
the repeal of that section by this act for purposes of determining
the prudence and reasonableness of the actions of electric
distribution utilities with ownership interests in the legacy
generation resource, including their decisions related to offering
the contractual commitment into the wholesale markets, and excluding
from recovery those costs that the commission determines imprudent
and unreasonable.

Section
5.
(A)
Beginning on the effective date of this section, no electric
distribution utility shall collect from its retail customers in the
state any charge that was authorized under section 3706.46 of the
Revised Code to meet the revenue requirement for disbursements from
the Solar Generation Fund to owners or operators of qualifying solar
resources that was required under section 3706.55 of the Revised Code
before the repeal of these sections by this act.

(B)
Except as provided for in division (C) of this section, beginning on
the effective date of this section, the Ohio Air Quality Development
Authority is prohibited from directing the Treasurer of State to
remit, and the Treasurer is prohibited from remitting, any money from
the Solar Generation Fund to owners or operators of qualifying solar
resources, which remittance was permitted under section 3706.55 of
the Revised Code prior to the repeal of that section by this act.

(C)
Within forty-five days of the effective date of this section, the
Authority shall do the following:

(1)
Forecast the future payments expected to be made under section
3706.55 of the Revised Code, as that section existed prior to the
effective date of its repeal by H.B. 15 of the 136th General
Assembly, to the owners or operators of qualifying solar resources
that received one or more solar energy credits in 2024 based on the
resource's average production for the prior three years. For a
qualifying solar resource that has not generated electricity for a
full year as of the effective date of this section, the forecast
shall be based on production to date, extrapolated for an annual
average.

(2)
Direct the Treasurer of State to calculate and remit the net present
value of those payments upfront to the owners or operators of the
qualifying solar resources.

As
soon as possible after remitting the net present value of those
payments to the owners or operators of the qualifying solar
resources, the Treasurer of State shall transfer the cash balance of
amounts remaining in the solar generation fund to the school energy
performance contracting loan fund created in section 3313.378 of the
Revised Code.

Section
6.
Sections
4909.193 and 4909.421 as enacted by this act and the amendments to
sections 4909.19 and 4909.42 of the Revised Code by this act apply to
applications filed under section 4909.18 of the Revised Code on or
after the effective date of this section.

Section
7.
(A)
The Public Utilities Commission shall conduct a study to evaluate the
potential use or deployment of advanced transmission technologies, as
defined in section 4906.01 of the Revised Code, by public utilities
to enable public utilities to safely, reliably, efficiently, and
cost-effectively meet electric system demand and provide safe,
reliable, and affordable electric utility service to customers. In
conducting the study, the Commission shall do the following:

(1)
Evaluate the attributes, functions, costs, and benefits of various
advanced transmission technologies, including grid-enhancing
technologies and advanced conductors;

(2)
Evaluate the potential of each of the advanced transmission
technologies studied to be used or deployed by public utilities to
provide safe, reliable, and affordable electric utility service to
customers, considering existing and planned transmission
infrastructure and projected demand growth;

(3)
Identify the potential reductions in project costs and project
completion timelines by deploying advanced transmission technologies,
as compared to traditional transmission infrastructure;

(4)
Evaluate potential ways to streamline the deployment of advanced
transmission technologies, including streamlined processes for
permitting, maintenance, and upgrades;

(5)
Evaluate other deregulated states' policies and laws relating to
advanced transmission technologies and provide recommendations in
accordance with other states' policies and laws to enable and
encourage adoption of advanced transmission technologies in this
state;

(6)
Identify processes or ways that end-use customers, such as industrial
or mercantile customers, can invest and deploy advanced transmission
technologies in partnership with their respective utility to allow
for the more rapid deployment of such technologies;

(7)
Identify how the Commission can support and encourage the
implementation of advanced transmission technologies in Ohio through
future rule-making or other Commission activities;

(8)
Evaluate any other aspect of advanced transmission technologies that
the Commission determines will assist policymakers, public utilities,
ratepayers, and other stakeholders in understanding the potential
role of advanced transmission technologies in the transmission system
serving this state and the region;

(9)
Identify opportunities for the Federal Energy Advocate, as employed
under section 4928.24 of the Revised Code, to support and advocate
for the implementation of advanced transmission technologies at the
regional transmission organization, Federal Energy Regulatory
Commission, and other relevant agencies, commissions or regulatory
bodies.

(B)
In conducting the study required by this section, the Commission
shall consult with or invite comments from stakeholders. The
Commission shall hold a minimum of two public workshops to review
public comments from stakeholders. The Commission may incorporate any
information or comments received in its report required in division
(C) of this section.

(C)
Not later than March 1, 2026, the Commission shall submit a report
that includes the Commission's findings with respect to the topics
outlined in this section. A copy of the report shall be made
available online and sent to all members of the General Assembly.

Section
8.
The
amendment by this act of sections 5727.01 and 5727.111 of the Revised
Code applies to tax year 2027 and every tax year thereafter.

Section
9.
Section
122.6511 of the Revised Code as presented in this act takes effect on
the later of July 1, 2025, or the effective date of this section.
July 1, 2025, is the effective date of an earlier amendment to that
section by H.B. 315 of the 135th General Assembly.

Section
10.
An
agreement between an electric distribution utility and a mercantile
customer or group of mercantile customers for the construction of a
customer sited renewable energy resource that is executed and filed
with the public utilities commission prior to the effective date of
H.B. 15 of the 136th General Assembly shall remain in effect
according to the agreement's terms and be governed by section 4928.47
of the Revised Code as that section existed prior to being repealed
by H.B. 15 of the 136th General Assembly.

Section
11.
Section
4928.01 of the Revised Code is presented in this act as a composite
of the section as amended by both H.B. 308 and H.B. 315 of the 135th
General Assembly. The General Assembly, applying the principle stated
in division (B) of section 1.52 of the Revised Code that amendments
are to be harmonized if reasonably capable of simultaneous operation,
finds that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.

Speaker
___________________ of the House of Representatives.

President
___________________ of the Senate.

Passed
________________________, 20____

Approved
________________________, 20____

Governor.

The section numbering of law
of a general and permanent nature is complete and in conformity with
the Revised Code.

Director, Legislative
Service Commission.

Filed
in the office of the Secretary of State at Columbus, Ohio, on the
____ day of ___________, A. D. 20____.

Secretary of State.

File
No. _________ Effective Date ___________________