Prohibit utilities from recovering political expenditure costs

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 245

2025-2026

Senator Smith

Cosponsors: Senators Antonio,
Romanchuk

To
enact sections 4933.51, 4933.52, 4933.53, 4933.55, 4933.57, 4933.58,
4933.59, and 4933.60 of the Revised Code
to
prohibit certain public utilities from recovering political
expenditure costs from their customers.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 4933.51, 4933.52, 4933.53, 4933.55, 4933.57, 4933.58,
4933.59, and 4933.60 of the Revised Code be enacted to read as
follows:

Sec.
4933.51.
As
used in sections 4933.51 to 4933.60 of the Revised Code:

(A)(1)
"Public utility" means an electric light company, gas
company, or natural gas company as described in section 4905.03 of
the Revised Code that is a public utility under section 4905.02 of
the Revised Code.

(2)
"Public utility" includes any affiliate or subsidiary of a
company described in division (A)(1) of this section.

(B)
"Nonprofit organization" means a tax-exempt organization
described under subsection 501(c)(3) or 501(c)(4) of the Internal
Revenue Code, 26 U.S.C. 501.

(C)
"Political expenditure" means any of the following:

(1)
A contribution or gift to a political candidate, party, or committee,
to a committee of the general assembly, or to an organization working
to promote the adoption or defeat of, or influence the outcome of an
election for, a ballot issue or question;

(2)
A contribution to a trade association, chamber of commerce, nonprofit
organization, or other organization that is described under
subsection 501(c)(6) of the Internal Revenue Code, 26 U.S.C. 501;

(3)
Dues paid to any industry association of which the public utility is
a member;

(4)
An expenditure incurred for the purpose of lobbying any branch of
government;

(5)
Expenses incurred for the purpose of influencing public opinion about
public policy issues or about the reputation of the public utility;

(6)
Expenses incurred to fund any other political, charitable, or
lobbying activity.

Sec.
4933.52.
No
public utility shall recover the cost of any political expenditure
from its customers through any rate, rate mechanism, rental, toll,
fee, rider, or other charge implemented pursuant to section 4909.18
or sections 4928.141 and 4928.142 of the Revised Code or under
Chapter 4929. of the Revised Code.

Sec.
4933.53.
If
the public utilities commission determines that a public utility
charged its customers in violation of section 4933.52 of the Revised
Code, the charges imposed in violation of that section shall be
subject to refund, plus interest. The commission shall order the
payment of the refunds in a manner designed to allocate the refunds
to customer classes in the same proportion as the charges were
originally collected.

Sec.
4933.55.
If
the public utilities commission, after providing notice and a
hearing, determines that a public utility has charged its customers
in violation of section 4933.52 of the Revised Code, the commission
shall issue an order imposing a fine on the public utility. The
amount of the fine shall equal twenty times the amount that the
public utility charged to customers in violation of that section.

Sec.
4933.57.
The
political activity fine fund is created in the state treasury
consisting of the fines paid by public utilities pursuant to section
4933.55 of the Revised Code. The money in the fund shall be used to
assist customers in paying public utility bills that are past due,
according to a process established by rules adopted under division
(A)(2) of section 4933.60 of the Revised Code.

Sec.
4933.58.
The
department of development shall administer the political activity
fine fund created under section 4933.57 of the Revised Code. The
department shall distribute the money in the fund to customers
through the percentage of income payment plan program administered by
the department pursuant to section 4928.53 of the Revised Code and in
accordance with rules adopted under division (A)(2) of section
4933.60 of the Revised Code regarding the distribution of the money.

Sec.
4933.59.
(A)
Not later than the first day of January each year, each public
utility shall submit to the public utilities commission an
expenditure report listing all political expenditures that the
utility made during the preceding twelve-month period. For each
expenditure, the report shall include the payee, amount, and purpose
of the expenditure. The report shall be submitted to the commission
electronically, and upon its receipt, the commission shall post the
report on the commission web site.

(B)
The commission shall compile the expenditure reports submitted under
division (A) of this section into a single report that the commission
shall submit to the general assembly. The commission shall submit the
report, not later than the first day of February each year, in
accordance with section 101.68 of the Revised Code. The commission
also shall post the report on the commission web site.

Sec.
4933.60.
(A)(1)
The public utilities commission shall adopt rules to implement
sections 4933.51 to 4933.59 of the Revised Code.

(2)
In conjunction with the department of development, the commission
also shall adopt rules to establish a process within the percentage
of income payment program for distributing the money collected from
fines ordered by the commission under section 4933.55 of the Revised
Code. The rules shall specify that the money collected shall be used
to assist customers with the payment of past-due public utility bills
as authorized under section 4933.58 of the Revised Code.

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