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(136th General Assembly)
(Substitute
Senate Bill Number 103)
AN
ACT
To amend sections 4909.042,
4909.05, 4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 4909.159,
4909.173, 4909.174, 4909.18, 4909.421, 4928.01, and 4928.05 and to
enact sections 4909.157, 4909.182, 4929.052, 4929.053, 4929.054,
4929.055, 4929.056, 4929.057, and 4929.058 of the Revised Code to
allow for alternative rate plans for natural gas companies to serve
large load customers and to make changes to the process of valuating
property for certain public utilities.
Be
it enacted by the General Assembly of the State of Ohio:
Section
1.
That
sections 4909.042, 4909.05, 4909.06, 4909.07, 4909.08, 4909.15,
4909.156, 4909.159, 4909.173, 4909.174, 4909.18, 4909.421, 4928.01,
and 4928.05 be amended and sections 4909.157
,
4909.182
,
4929.052, 4929.053, 4929.054, 4929.055, 4929.056, 4929.057, and
4929.058 of the Revised Code be enacted to read as follows:
Sec.
4909.042.
(A)
With respect to an electric light
company
,
natural gas, water-works, or sewage disposal system 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
company
.
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
company
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
company
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
company
with
respect thereto whether or not capitalized;
(5)
In the discretion of the commission, the cost to a
utility
company
,
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
company
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
company
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
company
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
company
,
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
;
(9)
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
.
(C)
The report shall show separately the property projected to be used
and useful to or held by the
utility
company
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
,
natural gas, water-works, or sewage disposal system 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)
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.
(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 (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 (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 (B)(1)
to (6) of this section, less the sum of the amounts contained in the
report pursuant to divisions (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.
(D)
The requirements of section 4909.05 of the Revised Code do not apply
to an electric light, natural gas, water-works, or sewage disposal
system company that chooses to file a forecasted test period under
section 4909.18 of the Revised Code.
Sec.
4909.06.
The
investigation and report required by 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:
(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
,
natural gas, water-works, or sewage disposal system 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:
(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
,
natural gas, water-works, or sewage disposal system 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:
(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
,
natural gas, water-works, or sewage disposal system 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)(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
,
natural gas, water-works, or sewage disposal system 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
that chooses not to file a forecasted test period under section
4909.18 of the Revised Code
,
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.
(b)
With respect to an electric light
company
,
natural gas, water-works, or sewage disposal system 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
(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.
(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 by the utility during the test period.
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 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 as
follows:
(a)
Electric light
companies
,
natural gas, water-works, and sewage disposal 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
,
natural gas, water-works, or sewage disposal system companies
that
choose to file under division (C)(1)(a) of this section, shall
propose a test period 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.
(2)
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)
Utilities filing under division (C)(1)(b) of this section may propose
adjustments to the revenues and expenses for any changes that are,
during the test period or the twelve-month period immediately
following the test period, reasonably expected to occur. The 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 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 (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:
(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
,
natural gas, water-works, or sewage disposal system 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.
4909.157.
(A)
Except for a cost recovery mechanism provided under division
(C)(1)(a) of section 4909.15 of the Revised Code, a natural gas,
water-works, or sewage disposal system company that applies for a
forecasted test period under that division shall not request, and the
public utilities commission shall not approve, any rider or other
cost recovery mechanism to recover capital investment that would be
in addition to the company's base rates.
(B)
Upon rates going into effect based on a company's use of a forecasted
test period under division (C)(1)(a) of section 4909.15 of the
Revised Code, any riders and other cost recovery mechanisms
previously approved to recover capital investment for the company
shall terminate.
(C)
Notwithstanding divisions (A) and (B) of this section, a natural gas
company may still apply for, or continue collecting from, an
infrastructure development rider under section 4929.161 of the
Revised Code.
Sec.
4909.159.
An
electric light
company
,
natural gas, water-works, or sewage disposal system 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
(B)(9)
of section 4909.042 the Revised Code or division
(B)(6)
of section 4909.05 of the Revised Code
,
whichever is applicable,
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
(B)(9)
of section 4909.042 of the Revised Code or
(B)(6)
of section 4909.05 of the Revised Code
,
whichever is applicable,
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
that chooses not to file a forecasted test period under division
(C)(1)(a) of section 4909.15 of the Revised Code
,
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
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.
4909.182.
Not
later than December 31, 2029, and at least every three years
thereafter, each natural gas company that provides utility service to
two hundred fifty thousand or more customers shall file a rate case
application under section 4909.18 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
,
natural gas, water-works, or sewage disposal system 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.
(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 in the
business of supplying at least a noncompetitive 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 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, and
that meets all of the following:
(a)
The facility is installed or operated by the owner or by 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)(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
that
may consist
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.
4928.05.
(A)(1)
A competitive retail electric service supplied by an 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, 4928.142, and 4928.144 of the Revised Code.
(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.
(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 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.
(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.
Sec.
4929.052.
(A)
As used in sections 4929.052 to 4929.058 of the Revised Code, "large
load customer" means a customer that a natural gas company
projected or anticipated to consume, or actually consumed, in a
prior, current, or future twelve-month period, more than one million
two hundred thousand Mcf of natural gas.
(B)
A natural gas company that has applied for, or was already approved
for, an infrastructure development rider pursuant to section 4929.161
of the Revised Code may file an application to the public utilities
commission for an alternative rate plan to serve large load
customers.
(C)
An alternative rate plan established under division (B) of this
section must support commercial agreements entered into between the
natural gas company and a large load customer.
Sec.
4929.053.
(A)
An alternative rate plan proposed by a natural gas company pursuant
to section 4929.052 of the Revised Code shall be approved by the
public utilities commission if the natural gas company meets its
burden of proof in a proceeding before the commission that the
alternative rate plan does all of the following to protect existing
customers:
(1)
Protects the company's customers that are not served under the
alternative rate plan pursuant to section 4929.052 of the Revised
Code from paying direct or indirect costs, including any stranded
costs, associated with the large load customer's share of
infrastructure investments made under any commercial agreements
entered into under that plan;
(2)
Provides any commercial agreement entered into under the plan, once
the large load customer begins natural gas service and monthly
payments to the natural gas company, shall require a monthly cost
credit, to compensate other customers for the cost of the large load
customer's use of the natural gas company's system and
infrastructure, to the annual infrastructure development rider rate
charged by the natural gas company pursuant to section 4929.162 of
the Revised Code, which will be the cost of the large load customer's
use of the natural gas company system and infrastructure;
(3)
Supports economic development in the state by serving the large load
customer, which is proven by a letter of support by an economic
development entity, as defined in division (C)(4) of section 4929.163
of the Revised Code.
(B)
The monthly cost credit described in division (A)(2) of this section
shall be determined pursuant to a separate infrastructure development
rider regulatory liability proceeding in which the natural gas
company shall propose the credit amount based on cost allocation
principles.
Sec.
4929.054.
Any
payment received from a large load customer pursuant to a commercial
agreement under an alternative rate plan filed and approved under
sections 4929.052 and 4929.053 of the Revised Code shall not be
considered revenue in any proceeding held pursuant to Chapter 4909.
of the Revised Code.
Sec.
4929.055.
An
alternative rate plan application filed and approved pursuant to
sections 4929.052 and 4929.053 of the Revised Code shall not be
considered an application for an increase in rates.
Sec.
4929.056.
(A)
A natural gas company shall file a commercial agreement with a large
load customer entered into pursuant to a proposed or approved
alternative rate plan under sections 4929.052 and 4929.053 of the
Revised Code with the public utilities commission.
(B)
A commercial agreement described in division (A) of this section
shall be deemed automatically approved unless the commission
determines within ninety days from the date of the filing that the
commercial agreement is inconsistent with the requirements of this
section or sections 4929.052 and 4929.053 of the Revised Code.
(C)
A natural gas company may propose that the commercial agreement
include any negotiated terms that differ from the rates or terms of
service approved in the company's most recent rate case proceeding
under section 4909.18 of the Revised Code.
Sec.
4929.057.
(A)
An application for an alternative rate plan filed pursuant to
sections 4929.052 and 4929.053 of the Revised Code shall be deemed
approved ninety days after the date the natural gas company filed the
application with the public utilities commission. The commission may
suspend the approval of the application for good cause shown.
(B)
If the public utilities commission does not issue an order within
ninety days from the date an alternative rate plan application is
suspended pursuant to division (A) of this section, the company's
proposed alternative rate plan shall be deemed approved by operation
of law.
Sec.
4929.058.
A
natural gas company with an alternative rate plan approved under
section 4929.053 of the Revised Code, or deemed approved under
section 4929.057 of the Revised Code, shall, upon the approval of a
commercial agreement under section 4929.056 of the Revised Code, file
with the public utilities commission a written statement, on a form
prescribed by the commission, agreeing to the following:
(A)
Any costs associated with the alternative rate plan, or any
commercial agreements entered into pursuant to that plan, shall not
be recovered, directly or indirectly, from the company's other
customers;
(B)
There shall be no increase in the company's base rates as a direct or
indirect result of any provision of an approved commercial agreement
or the alternative rate plan.
Section
2.
That
existing sections 4909.042, 4909.05, 4909.06, 4909.07, 4909.08,
4909.15, 4909.156, 4909.159, 4909.173, 4909.174, 4909.18, 4909.421
,
4928.01, and 4928.05
of the Revised Code are hereby repealed.
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 ___________________