SB 103: Allow alternative rate plans for certain natural gas companies
A new law will allow natural gas companies to offer alternative rate plans for large load customers. These plans will be approved by the Public Utilities Commission and must be filed with the commission when a commercial agreement is entered into. The alternative rate plan and any commercial agreements cannot be passed on to the company's other customers, and there will be no increase in base rates as a result. The law also makes changes to the process of valuing property for public utilities. Companies must file a forecasted test period with the commission, which will prescribe the form and details of the valuation report. The report must include the original cost of property, the cost of rights-of-way and other land rights, and the cost of other property used to serve the public. The law also requires companies to maintain a proper and adequate reserve for depreciation and to report a…
| Mar. 20, 2026 | Effective |
| Dec. 19, 2025 | Signed By The Governor |
| Dec. 15, 2025 | Sent to Governor |
| Dec. 09, 2025 | Sent To The Governor |
| Nov. 19, 2025 | Passed |
ANACT
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:
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:
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 utilitycompany. 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.
Such report shall contain the following facts in detail:
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;
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;
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;
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;
In the discretion of the commission, the cost to a utilitycompany, 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;
The proper and adequate reserve for depreciation, as determined to be reasonable by the commission;
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;
The valuation of the property of the utilitycompany, 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;
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.
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.
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.
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:
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;
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.
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.
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