SB 2: Increase power generation; improve Ohio's electric grid

As Passed by the Senate

136th General Assembly Regular Session 2025-2026

Am. Sub. S. B. No. 2

Senators Reineke, Wilkin

Cosponsors: Senators Antonio, Brenner, Chavez, Cirino, Craig, Cutrona, DeMora, Gavarone, Hicks-Hudson, Johnson, Koehler, Landis, Manning, Patton, Reynolds, Romanchuk, Schaffer, Smith, Timken, Weinstein

To amend sections 303.213, 519.213, 713.081, 1
3313.372, 3313.373, 4905.03, 4906.01, 4906.03, 2
4906.06, 4906.07, 4906.10, 4909.04, 4909.05, 3
4909.052, 4909.06, 4909.07, 4909.08, 4909.15, 4
4909.156, 4909.173, 4909.174, 4909.18, 4909.19, 5
4909.191, 4909.42, 4928.01, 4928.05, 4928.08, 6
4928.14, 4928.141, 4928.142, 4928.144, 4928.17, 7
4928.20, 4928.23, 4928.231, 4928.232, 4928.34, 8
4928.542, 4928.64, 4928.645, 4929.20, 4933.81, 9
5711.01, 5727.01, 5727.031, 5727.06, 5727.11, 10
5727.111, and 5727.75; to enact sections 11
122.161, 3313.377, 3313.378, 4903.27, 4905.23, 12
4905.311, 4905.321, 4905.331, 4909.041, 13
4909.042, 4909.181, 4909.192, 4909.193, 14
4928.041, 4928.101, 4928.102, 4928.103, 15
4928.105, 4928.107, 4928.149, 4928.1410, 16
4928.73, 4929.221, 4929.222, and 5727.76; and to 17
repeal sections 3706.40, 3706.41, 3706.43, 18
3706.431, 3706.45, 3706.46, 3706.49, 3706.491, 19
3706.55, 3706.551, 3706.59, 3706.63, 3706.65, 20
4928.143, 4928.148, and 4928.642 of the Revised 21
Code regarding public utilities law, to make 22
changes regarding utility tangible personal 23

Am. Sub. S. B. No. 2 As Passed by the Senate

property taxation, and to repeal parts of H.B. 6 24
of the 133rd General Assembly. 25

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

Section 1. That sections 303.213, 519.213, 713.081, 26
3313.372, 3313.373, 4905.03, 4906.01, 4906.03, 4906.06, 4906.07, 27
4906.10, 4909.04, 4909.05, 4909.052, 4909.06, 4909.07, 4909.08, 28
4909.15, 4909.156, 4909.173, 4909.174, 4909.18, 4909.19, 29
4909.191, 4909.42, 4928.01, 4928.05, 4928.08, 4928.14, 4928.141, 30
4928.142, 4928.144, 4928.17, 4928.20, 4928.23, 4928.231, 31
4928.232, 4928.34, 4928.542, 4928.64, 4928.645, 4929.20, 32
4933.81, 5711.01, 5727.01, 5727.031, 5727.06, 5727.11, 5727.111, 33
and 5727.75 be amended and sections 122.161, 3313.377, 3313.378, 34
4903.27, 4905.23, 4905.311, 4905.321, 4905.331, 4909.041, 35
4909.042, 4909.181, 4909.192, 4909.193, 4928.041, 4928.101, 36
4928.102, 4928.103, 4928.105, 4928.107, 4928.149, 4928.1410, 37
4928.73, 4929.221, 4929.222, and 5727.76 of the Revised Code be 38
enacted to read as follows: 39

Sec. 122.161. (A) As used in this section: 40

(1) "Subdivision" means a municipal corporation, township, 41
or county. 42
(2) "Legislative authority" means the legislative 43
authority of a municipal corporation, a board of the township 44
trustees, or a board of county commissioners. 45
(3) "Subdivision's territory" means, in the case of a 46
municipal corporation, the territory of the municipal 47
corporation; in the case of a township, the unincorporated 48

Am. Sub. S. B. No. 2 As Passed by the Senate

territory of the township; or, in the case of a county, the 49
unincorporated territory of the county. 50
(4) "Brownfield" has the same meaning as in section 51
122.6511 of the Revised Code. 52

(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 67
designate the proposed area as a priority investment area if the 68
director determines that the area meets the designation 69
standards set forth in rules adopted by the director. Those 70
standards shall specify that the director must prioritize the 71
designation of areas negatively impacted by the decline of the 72
coal industry. 73
The director shall notify the legislative authority of the 74
director's decision within ninety days after receiving the 75
certified ordinance or resolution. If the director does not 76
issue a decision within those ninety days, the request for 77

Am. Sub. S. B. No. 2 As Passed by the Senate

designation shall be considered approved by operation of law. 78
(C) The director of development shall immediately notify 79
the public utilities commission, the power siting board, and the 80
tax commissioner if the director approves the designation of a 81
priority investment area under division (B) of this section or 82
if the designation is approved by operation of law. 83
Sec. 303.213. (A) As used in this section: 84
(1) "Small wind farm" means wind turbines and associated 85
facilities that are not subject to the jurisdiction of the power 86
siting board under sections 4906.20 and 4906.201 of the Revised 87
Code. 88
(2) "Small solar facility" means solar panels and 89
associated facilities with a single interconnection to the 90
electrical grid and designed for, or capable of, operation at an 91
aggregate capacity of less than fifty megawatts. 92
(3) "Anaerobic digester" means a facility used to treat 93
organic materials, such as food waste, manure, and sewage 94
sludge, to produce biogas and digestate. 95
(4) "Other small electric generating facility" means an 96
electric generating plant and associated facilities designed 97
for, or capable of, operation at a capacity of less than fifty 98
megawatts that is not a small wind farm, small solar facility, 99
or anaerobic digester. 100
(B) Notwithstanding division (A) of section 303.211 of the 101
Revised Code, sections 303.01 to 303.25 of the Revised Code 102
confer power on a board of county commissioners or board of 103
zoning appeals to adopt zoning regulations governing the 104
location, erection, construction, reconstruction, change, 105
alteration, maintenance, removal, use, or enlargement of any 106

Am. Sub. S. B. No. 2 As Passed by the Senate

small wind farm or , small solar facility, anaerobic digester, 107
or other small electric generating facility, whether publicly or 108
privately owned, or the use of land for that purpose. With 109
regard to a small wind farm, the regulations may be more strict 110
than the regulations prescribed in rules adopted under division 111
(B)(2) of section 4906.20 of the Revised Code. 112
(C) The designation under this section of a small wind 113
farm or a , small solar facility, anaerobic digester, or other 114
small electric generating facility as a public utility for 115
purposes of sections 303.01 to 303.25 of the Revised Code shall 116
not affect the classification of a small wind farm or a , small 117
solar facility, anaerobic digester, or other small electric 118
generating facility for purposes of state or local taxation. 119
(D) Nothing in division (C) of this section shall be 120
construed as affecting the classification of a 121
telecommunications tower as defined in division (B) or (E) of 122
section 303.211 of the Revised Code or any other public utility 123
for purposes of state and local taxation. 124

Sec. 519.213. (A) As used in this section: 125

(1) "Small wind farm" means wind turbines and associated 126
facilities that are not subject to the jurisdiction of the power 127
siting board under sections 4906.20 and 4906.201 of the Revised 128
Code. 129
(2) "Small solar facility" means solar panels and 130
associated facilities with a single interconnection to the 131
electrical grid and designed for, or capable of, operation at an 132
aggregate capacity of less than fifty megawatts. 133
(3) "Anaerobic digester" means a facility used to treat 134
organic materials, such as food waste, manure, and sewage 135

Am. Sub. S. B. No. 2 As Passed by the Senate

sludge, to produce biogas and digestate. 136
(4) "Other small electric generating facility" means an 137
electric generating plant and associated facilities designed 138
for, or capable of, operation at a capacity of less than fifty 139
megawatts that is not a small wind farm, small solar facility, 140
or anaerobic digester. 141

(B) Notwithstanding division (A) of section 519.211 of the Revised Code, sections 519.02 to 519.25 of the Revised Code confer power on a board of township trustees or board of zoning appeals with respect to the location, erection, construction, reconstruction, change, alteration, maintenance, removal, use, or enlargement of any small wind farm or , small solar facility, anaerobic digester, or other small electric generating facility, whether publicly or privately owned, or the use of land for that purpose. With regard to a small wind farm, the regulations may be more strict than the regulations prescribed in rules adopted under division (B)(2) of section 4906.20 of the Revised Code.

(C) The designation under this section of a small wind 153
farm or a , small solar facility, anaerobic digester, or other 154
small electric generating facility as a public utility for 155
purposes of sections 519.02 to 519.25 of the Revised Code shall 156
not affect the classification of a small wind farm, a small 157
solar facility, an anaerobic digester, other small electric 158
generating facility, or any other public utility for purposes of 159
state or local taxation. 160
(D) Nothing in division (C) of this section shall be 161
construed as affecting the classification of a 162
telecommunications tower as defined in division (B) or (E) of 163
section 519.211 of the Revised Code or any other public utility 164
for purposes of state and local taxation. 165

Am. Sub. S. B. No. 2 Page 7

As Passed by the Senate

Sec. 713.081. (A) As used in this section: 166
(1) "Small wind farm" means wind turbines and associated 167
facilities that are not subject to the jurisdiction of the power 168
siting board under sections 4906.20 and 4906.201 of the Revised 169
Code. 170
(2) "Small solar facility" means solar panels and 171
associated facilities with a single interconnection to the 172
electrical grid and designed for, or capable of, operation at an 173
aggregate capacity of less than fifty megawatts. 174
(3) "Anaerobic digester" means a facility used to treat 175
organic materials, such as food waste, manure, and sewage 176
sludge, to produce biogas and digestate. 177
(4) "Other small electric generating facility" means an 178
electric generating plant and associated facilities designed 179
for, or capable of, operation at a capacity of less than fifty 180
megawatts that is not a small wind farm, small solar facility, 181
or anaerobic digester. 182
(B) Sections 713.06 to 713.15 of the Revised Code confer 183
power on the legislative authority of a municipal corporation 184
with respect to the location, erection, construction, 185
reconstruction, change, alteration, maintenance, removal, use, 186
or enlargement of any small wind farm or , small solar facility, 187
anaerobic digester, or other small electric generating facility 188
as a public utility, whether publicly or privately owned, or the 189
use of land for that purpose. With regard to a small wind farm, 190
the regulations may be more strict than the regulations 191
prescribed in rules adopted under division (B)(2) of section 192
4906.20 of the Revised Code. 193

(C) The designation under this section of a small wind

Am. Sub. S. B. No. 2 As Passed by the Senate

farm or a , small solar facility, anaerobic digester, or other 195
small electric generating facility as a public utility for 196
purposes of sections 713.06 to 713.15 of the Revised Code shall 197
not affect the classification of a small wind farm, a small 198
solar facility, an anaerobic digester, other small electric 199
generating facility, or any other public utility for purposes of 200
state or local taxation. 201
Sec. 3313.372. (A) As used in this section, "energy 202
conservation measure" means an installation or modification of 203
an installation in, or remodeling of, a building, to reduce 204
energy consumption. It includes: 205
(1) Insulation of the building structure and systems 206
within the building; 207
(2) Storm windows and doors, multiglazed windows and 208
doors, heat absorbing or heat reflective glazed and coated 209
window and door systems, additional glazing, reductions in glass 210
area, and other window and door system modifications that reduce 211
energy consumption; 212
(3) Automatic energy control systems; 213
(4) Heating, ventilating, or air conditioning system 214
modifications or replacements; 215
(5) Caulking and weatherstripping; 216
(6) Replacement or modification of lighting fixtures to 217
increase the energy efficiency of the system without increasing 218
the overall illumination of a facility, unless such increase in 219
illumination is necessary to conform to the applicable state or 220
local building code for the proposed lighting system; 221
(7) Energy recovery systems; 222

Am. Sub. S. B. No. 2 As Passed by the Senate

(8) Cogeneration systems that produce steam or forms of 223
energy such as heat, as well as electricity, for use primarily 224
within a building or complex of buildings; 225
(9) Solar panels; 226
(10) Any other modification, installation, or remodeling 227
approved by the Ohio facilities construction commission as an 228
energy conservation measure. 229
(B) A board of education of a city, exempted village, 230
local, or joint vocational school district may enter into an 231
installment payment contract for the purchase and installation 232
of energy conservation measures. The provisions of such 233
installment payment contracts dealing with interest charges and 234
financing terms shall not be subject to the competitive bidding 235
requirements of section 3313.46 of the Revised Code, and shall 236
be on the following terms: 237
(1) Not less than one-fifteenth of the costs thereof shall 238
be paid within two years from the date of purchase. 239
(2) The remaining balance of the costs thereof shall be 240
paid within fifteen years from the date of purchase. 241
The provisions of any installment payment contract entered 242
into pursuant to this section shall provide that all payments, 243
except payments for repairs and obligations on termination of 244
the contract prior to its expiration, shall not exceed the 245
calculated energy, water, or waste water cost savings, avoided 246
operating costs, and avoided capital costs attributable to the 247
one or more measures over a defined period of time. Those 248
payments shall be made only to the extent that the savings 249
described in this division actually occur. The energy services 250
company shall warrant and guarantee that the energy conservation 251

Am. Sub. S. B. No. 2 As Passed by the Senate

measures shall realize guaranteed savings and shall be 252
responsible to pay an amount equal to any savings shortfall. 253
An installment payment contract entered into by a board of 254
education under this section shall require the board to contract 255
in accordance with division (A) of section 3313.46 of the 256
Revised Code for the installation, modification, or remodeling 257
of energy conservation measures unless division (A) of section 258
3313.46 of the Revised Code does not apply pursuant to division 259
(B)(3) of that section, in which case the contract shall be 260
awarded through a competitive selection process pursuant to 261
rules adopted by the facilities construction commission. 262
An installment payment contract entered into by a board of 263
education under this section may include services for 264
measurement and verification of energy savings associated with 265
the guarantee. The annual cost of measurement and verification 266
services shall not exceed ten per cent of the guaranteed savings 267
in any year of the installment payment contract. 268
(C) If a board of education determines that a surety bond 269
is necessary to secure energy, water, or waste water cost 270
savings guaranteed in a contract entered into by the board of 271
education under this section, the energy services company shall 272
provide a surety bond that satisfies all of the following 273
requirements: 274
(1) The penal sum of the surety bond for the first 275
guarantee year shall equal the amount of savings included in the 276
annual guaranteed savings amount that is measured and calculated 277
in accordance with the measurement and verification plan 278
included in the contract, but may not include guaranteed savings 279
that are not measured or that are stipulated in the contract. 280
The annual guaranteed savings amount shall include only the 281

Am. Sub. S. B. No. 2 As Passed by the Senate

savings guaranteed in the contract for the one-year term that 2
begins on the first day of the first savings guarantee year and 2
may not include amounts from subsequent years. 2

(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.

287
288
289
290
In the event of a renewal, the penal sum of the surety 291
bond for each renewed year shall be revised so that the penal 292
sum equals the annual guaranteed savings amount for such renewal 293
year that is measured and calculated in accordance with the 294
measurement and verification plan included in the contract, but 295
may not include guaranteed savings that are not measured or that 296
are stipulated in the contract. Regardless of the number of 297
renewals of the bond, the aggregate liability under each renewed 298
bond may not exceed the penal sum stated in the renewal 299
certificate for the applicable renewal year. 300
(3) The surety bond for the first year shall be issued 301
within thirty days of the commencement of the first savings 302
guarantee year under the contract. 303
In the event of renewal, the surety shall deliver to the 304
board of education a renewal certificate reflecting the revised 305
penal sum within thirty days of the board of education's 306
request. The board of education shall deliver the request for 307
renewal not less than thirty days prior to the expiration date 308
of the surety bond then in existence. A surety bond furnished 309
pursuant to section 153.54 of the Revised Code shall not secure 310
obligations related to energy, water, or waste water cost 311

Am. Sub. S. B. No. 2 As Passed by the Senate

savings as referenced in division (C) of this section. 312
(D) The board may issue the notes of the school district 313
signed by the president and the treasurer of the board and 314
specifying the terms of the purchase and securing the deferred 315
payments provided in this section, payable at the times provided 316
and bearing interest at a rate not exceeding the rate determined 317
as provided in section 9.95 of the Revised Code. The notes may 318
contain an option for prepayment and shall not be subject to 319
Chapter 133. of the Revised Code. In the resolution authorizing 320
the notes, the board may provide, without the vote of the 321
electors of the district, for annually levying and collecting 322
taxes in amounts sufficient to pay the interest on and retire 323
the notes, except that the total net indebtedness of the 324
district without a vote of the electors incurred under this and 325
all other sections of the Revised Code, except section 3318.052 326
of the Revised Code, shall not exceed one per cent of the 327
district's tax valuation. Revenues derived from local taxes or 328
otherwise, for the purpose of conserving energy or for defraying 329
the current operating expenses of the district, may be applied 330
to the payment of interest and the retirement of such notes. The 331
notes may be sold at private sale or given to the energy 332
services company under the installment payment contract 333
authorized by division (B) of this section. 334
(E) Debt incurred under this section shall not be included 335
in the calculation of the net indebtedness of a school district 336
under section 133.06 of the Revised Code. 337
(F) No school district board shall enter into an 338
installment payment contract under division (B) of this section 339
unless it first obtains a report of the costs of the energy 340
conservation measures and the savings thereof as described under 341

Am. Sub. S. B. No. 2 As Passed by the Senate

division (G)(1) of section 133.06 of the Revised Code as a 342
requirement for issuing energy securities, makes a finding that 343
the amount spent on such measures is not likely to exceed the 344
amount of money it would save in energy costs and resultant 345
operational and maintenance costs as described in that division, 346
except that that finding shall cover the ensuing fifteen years, 347
and the facilities construction commission determines that the 348
district board's findings are reasonable and approves the 349
contract as described in that division. 350
The district board shall monitor the savings and maintain 351
a report of those savings, which shall be submitted to the 352
commission in the same manner as required by division (G) of 353
section 133.06 of the Revised Code in the case of energy 354
securities. 355
(G) A board of education may apply to the Ohio facilities 356
construction commission for a loan from the school energy 357
performance contracting loan fund, established by section 358
3313.378 of the Revised Code, for purposes of paying for all or 359
part of an installment contract under division (B) of this 360
section. 361

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

(1) "Energy saving measure" means both of the following: 363
(a) The acquisition and installation, by purchase, lease, 364
lease purchase, lease with an option to buy, or installment 365
purchase, of an energy conservation measure as defined in 366
section 3313.372 of the Revised Code and any attendant 367
architectural and engineering consulting services. 368
(b) Architectural and engineering consulting services 369
related to energy conservation. 370

Am. Sub. S. B. No. 2 As Passed by the Senate

(2) "Shared-savings contract" means a contract for one or 371
more energy savings measures, which contract provides that all 372
payments, except payments for maintenance and repairs and 373
obligations on termination of the contract prior to its 374
expiration, are to be a stated percentage of calculated savings 375
of energy costs attributable to the energy saving measure over a 376
defined period of time and are to be made only to the extent 377
that such savings occur. A contract that requires any additional 378
capital investment or contribution of funds, other than funds 379
available from state or federal energy grants, or that is for an 380
initial term of longer than ten years is not a shared-savings 381
contract. 382

(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 395
beyond the fiscal year in which it is entered into, the board 396
shall include in its annual appropriations measure for each 397
subsequent year any amounts payable under shared-savings 398
contracts during such year and shall furnish the certification 399
required by section 5705.44 of the Revised Code, but the failure 400
of a board to make such an appropriation or furnish the 401

Am. Sub. S. B. No. 2 As Passed by the Senate

certificates referred to in division (D) of section 5705.41, or 402
5705.412 or 5705.44 of the Revised Code, shall not affect the 403
validity of the shared-savings contract or the board's 404
obligations under the contract. 405
(D) A board of education may apply to the Ohio facilities 406
construction commission for a loan from the school energy 407
performance contracting loan fund, established by section 408
3313.378 of the Revised Code, for purposes of paying for all or 409
part of a shared-savings contract under this section. 410
Sec. 3313.377. (A) As used in this section: 411
(1) "Energy conservation measure" has the same meaning as 412
in section 3313.372 of the Revised Code; 413
(2) "Energy saving measure" has the same meaning as in 414
section 3313.373 of the Revised Code. 415
(B) The Ohio facilities construction commission may issue 416
a loan from funds in the school energy performance contracting 417
loan fund created in section 3313.378 of the Revised Code to a 418
board of education of a city, exempted village, local, or joint 419
vocational school district that applies for a loan under section 420
3313.372 or 3313.373 of the Revised Code. 421
(C) Nothing in this section prohibits a board of education 422
that receives a loan under this section from utilizing any other 423
energy efficiency program. 424
(D) The terms of a loan issued under this section shall be 425
as follows: 426
(1) Two per cent annual interest on the loan; 427
(2) The full loan amount, plus interest, shall be repaid 428
in not more than ten years from the issuance of the loan; 429

Am. Sub. S. B. No. 2 As Passed by the Senate

(3) Repayment on the loan begins six months after the 430
installation of the energy conservation measures is complete or 431
the implementation of energy savings measures is completed; 432
(4) Any other provision considered appropriate by the 433
commission. 434
(E) All repayment amounts for any loans issued under this 435
section shall be made to the commission. The commission shall 436
deposit all repayment amounts received in the school energy 437
performance contracting loan fund created in section 3313.378 of 438
the Revised Code. 439
(F) If the commission enters into an agreement with a 440
board for a loan under this section, the commission shall 441
promptly direct the treasurer of state to remit money from the 442
school energy performance contracting loan fund to the board as 443
provided in the terms of the agreement. 444
(G) The commission shall adopt rules to implement this 445
section, including a loan application. 446
Sec. 3313.378. (A) The school energy performance 447
contracting loan fund is created in the custody of the state 448
treasurer, but is not part of the state treasury. The money in 449
the fund shall be used for purposes of funding loans issued 450
under section 3313.377 of the Revised Code. The fund shall 451
consist of the funds transferred from the solar generation fund, 452
repayments of loans from this fund, interest on amounts in the 453
school energy performance contracting loan fund, and any 454
appropriations, grants, or gifts made to the fund. 455
(B) The fund shall be administered by the Ohio facilities 456
construction commission, and the commission shall request the 457

treasurer of state to create the account for the fund. The

458

Am. Sub. S. B. No. 2 As Passed by the Senate

treasurer of state shall distribute the money in the fund in 459
accordance with directions provided by the commission. 460
Sec. 4903.27. For all cases involving an application 461
pursuant to section 4909.18 of the Revised Code, the public 462
utilities commission shall not permit any new discovery 463
beginning not later than two hundred fifteen days after the 464
application is submitted. 465

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 472
of transporting persons or property by motor vehicle for 473
compensation, except when engaged in any of the operations in 474
intrastate commerce described in divisions (B)(1) to (9) of 475
section 4921.01 of the Revised Code, but including the carrier's 476
agents, officers, and representatives, as well as employees 477
responsible for hiring, supervising, training, assigning, or 478
dispatching drivers and employees concerned with the 479
installation, inspection, and maintenance of motor-vehicle 480
equipment and accessories; 481
(C) An electric light company, when engaged in the 482
business of supplying electricity for light, heat, or power 483
purposes to consumers within this state, including supplying 484
electric transmission service for electricity delivered to 485
consumers in this state, but excluding a regional transmission 486
organization approved by the federal energy regulatory 487

Am. Sub. S. B. No. 2 As Passed by the Senate

commission; . 488

An electric light company does not include a selfgenerator 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 byproduct 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 505
supplying natural gas for lighting, power, or heating purposes 506
to consumers within this state. Notwithstanding the above, 507
neither the delivery nor sale of Ohio-produced natural gas or 508
Ohio-produced raw natural gas liquids by a producer or gatherer 509
under a public utilities commission-ordered exemption, adopted 510
before, as to producers, or after, as to producers or gatherers, 511
January 1, 1996, or the delivery or sale of Ohio-produced 512
natural gas or Ohio-produced raw natural gas liquids by a 513
producer or gatherer of Ohio-produced natural gas or Ohio- 514
produced raw natural gas liquids, either to a lessor under an 515
oil and gas lease of the land on which the producer's drilling 516
unit is located, or the grantor incident to a right-of-way or 517

Am. Sub. S. B. No. 2 As Passed by the Senate

easement to the producer or gatherer, shall cause the producer 518
or gatherer to be a natural gas company for the purposes of this 519
section. 520

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 536
authority of the commission to enforce sections 4905.90 to 537
4905.96 of the Revised Code. 538
(F) A pipe-line company, when engaged in the business of 539
transporting natural gas, oil, or coal or its derivatives 540
through pipes or tubing, either wholly or partly within this 541
state, but not when engaged in the business of the transport 542
associated with gathering lines, raw natural gas liquids, or 543
finished product natural gas liquids; 544
(G) A water-works company, when engaged in the business of 5
supplying water through pipes or tubing, or in a similar manner, 5
to consumers within this state; 5

Am. Sub. S. B. No. 2 As Passed by the Senate

(H) A heating or cooling company, when engaged in the 548
business of supplying water, steam, or air through pipes or 549
tubing to consumers within this state for heating or cooling 550
purposes; 551
(I) A messenger company, when engaged in the business of 552
supplying messengers for any purpose; 553
(J) A street railway company, when engaged in the business 554
of operating as a common carrier, a railway, wholly or partly 555
within this state, with one or more tracks upon, along, above, 556
or below any public road, street, alleyway, or ground, within 557
any municipal corporation, operated by any motive power other 558
than steam and not a part of an interurban railroad, whether the 559
railway is termed street, inclined-plane, elevated, or 560
underground railway; 561
(K) A suburban railroad company, when engaged in the 562
business of operating as a common carrier, whether wholly or 563
partially within this state, a part of a street railway 564
constructed or extended beyond the limits of a municipal 565
corporation, and not a part of an interurban railroad; 566
(L) An interurban railroad company, when engaged in the 567
business of operating a railroad, wholly or partially within 568
this state, with one or more tracks from one municipal 569
corporation or point in this state to another municipal 570
corporation or point in this state, whether constructed upon the 571
public highways or upon private rights-of-way, outside of 572
municipal corporations, using electricity or other motive power 573
than steam power for the transportation of passengers, packages, 574
express matter, United States mail, baggage, and freight. Such 575
an interurban railroad company is included in the term 576
"railroad" as used in section 4907.02 of the Revised Code. 577

Am. Sub. S. B. No. 2 As Passed by the Senate

(M) A sewage disposal system company, when engaged in the 578
business of sewage disposal services through pipes or tubing, 579
and treatment works, or in a similar manner, within this state. 580
As used in division (E) of this section, "natural gas" 581
includes natural gas that has been processed to enable 582
consumption or to meet gas quality standards or that has been 583
blended with propane, hydrogen, biologically derived methane 584
gas, or any other artificially produced or processed gas. 585
As used in this section, "gathering lines" has the same 586
meaning as in section 4905.90 of the Revised Code, and "raw 587
natural gas liquids" and "finished product natural gas liquids" 588
have the same meanings as in section 4906.01 of the Revised 589
Code. 590
As used in this section, "self-generator" has the same 591
meaning as in section 4928.01 of the Revised Code, and 592
"mercantile customer self-power system" has the same meaning as 593
in section 4928.73 of the Revised Code. 594
Sec. 4905.23. (A) As used in this section, "base load 595
electric generating facility" means an electric generating plant 596
and associated facilities located in this state that primarily 597
uses a nonrenewable fuel source to generate electricity, 598
including natural gas and nuclear reaction, and that is not 599
owned or operated by a public utility, municipal corporation, or 600
electric cooperative. 601
(B) No person shall enter into a settlement to abandon, 602
close, or shut down a base load electric generating facility or 603
a generating plant owned or operated by a public utility. 604
Sec. 4905.311. (A) As used in this section, "electric 605
distribution utility" has the same meaning as in section 4928.01 606

Am. Sub. S. B. No. 2 As Passed by the Senate

of the Revised Code. 607

(B) Notwithstanding any provision of the Revised Code to 608
the contrary, an electric distribution utility may supply behind 609
the meter electric generation service, provided that any behind 610
the meter electric generation facilities that the utility 611
intends to use to supply such service were in operation prior to 612
the effective date of this section. 613
(C) No electric distribution utility shall recover any of 614
the following costs through any rate, charge, or recovery from 615
retail electric service customers that are not receiving behind 616
the meter electric generation service from the utility: 617
(1) Costs associated with supplying behind the meter 618
electric generation service; 619
(2) Costs associated with any behind the meter electric 620
generation service facility; 621
(3) Stranded costs associated with the closing of any 622
behind the meter electric generation service facility or an end- 623
use customer of the behind the meter electric generation service 624
ceasing operations. 625
(D) No electric distribution utility shall offer direct, 626
associated inducements for contracting with the utility for any 627
behind the meter electric generation service. 628
(E) The public utilities commission shall periodically 629
audit all electric distribution utilities that provide any 630
behind the meter electric generation service to ensure 631
compliance with this section. 632
Sec. 4905.321. (A) Notwithstanding section 4905.32 of the 633
Revised Code, all revenues collected from customers by a public 634

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

635
636
637
638
639
640
641
642
643
644
645
646
647
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663

(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.

Am. Sub. S. B. No. 2 As Passed by the Senate

(B) No electric distribution utility or its affiliate may 664
do either of the following to induce any party to a public 665
utilities commission proceeding to enter into a settlement of a 666
matter pending before the commission: 667
(1) Make a cash payment to that party; 668
(2) Enter into any agreement or any financial or private 669
arrangement with that party that is not made part of the public 670
case record. 671
(C) Notwithstanding division (B) of this section, the 672
commission may do any of the following: 673
(1) Reasonably allocate costs among rate schedules; 674
(2) Reasonably design rates within a rate schedule; 675
(3) Approve reasonable rates designed for particular 676
customers or classes of customers; 677
(4) Approve a resolution of a proceeding under section 678
4905.26 of the Revised Code; 679
(5) Approve payments to any governmental entity, nonprofit 680
organization, or other association for implementing low-income 681
weatherization service programs, subject to the following 682
conditions: 683
(a) The payments are at a rate that is reasonably tailored 684
to the costs of providing the programs. 685
(b) The payments are for programs that are subject to an 686
existing or new audit procedure. 687
(c) The payments are not for low-income weatherization 688
education programs. 689
Sec. 4906.01. As used in Chapter 4906. of the Revised 690

Am. Sub. S. B. No. 2 As Passed by the Senate

Code: 691
(A) "Person" means an individual, corporation, business 692
trust, association, estate, trust, or partnership or any 693
officer, board, commission, department, division, or bureau of 694
the state or a political subdivision of the state, or any other 695
entity. 696
(B)(1) "Major utility facility" means: 697
(a) Electric generating plant and associated facilities 698
designed for, or capable of, operation at a capacity of fifty 699
megawatts or more; 700
(b) An electric transmission line and associated 701
facilities of a design capacity of one hundred kilovolts or 702
more; 703
(c) A gas pipeline that is greater than five hundred feet 704
in length, and its associated facilities, is more than nine 705
inches in outside diameter and is designed for transporting gas 706
at a maximum allowable operating pressure in excess of one 707
hundred twenty-five pounds per square inch. 708
(2) "Major utility facility" does not include any of the 709
following: 710
(a) Gas transmission lines over which an agency of the 711
United States has exclusive jurisdiction; 712
(b) Any solid waste facilities as defined in section 713
6123.01 of the Revised Code; 714
(c) Electric distributing lines and associated facilities 715
as defined by the power siting board; 716
(d) Any manufacturing facility that creates byproducts 717

Am. Sub. S. B. No. 2 As Passed by the Senate

that may be used in the generation of electricity as defined by 718
the power siting board; 719
(e) Gathering lines, gas gathering pipelines, and 720
processing plant gas stub pipelines as those terms are defined 721
in section 4905.90 of the Revised Code and associated 722
facilities; 723
(f) Any gas processing plant as defined in section 4905.90 724
of the Revised Code; 725
(g) Natural gas liquids finished product pipelines; 726
(h) Pipelines from a gas processing plant as defined in 727
section 4905.90 of the Revised Code to a natural gas liquids 728
fractionation plant, including a raw natural gas liquids 729
pipeline, or to an interstate or intrastate gas pipeline; 730
(i) Any natural gas liquids fractionation plant; 731
(j) A production operation as defined in section 1509.01 732
of the Revised Code, including all pipelines upstream of any 733
gathering lines; 734
(k) Any compressor stations used by the following: 735
(i) A gathering line, a gas gathering pipeline, a 736
processing plant gas stub pipeline, or a gas processing plant as 737
those terms are defined in section 4905.90 of the Revised Code; 738
(ii) A natural gas liquids finished product pipeline, a 739
natural gas liquids fractionation plant, or any pipeline 740
upstream of a natural gas liquids fractionation plant; or 741
(iii) A production operation as defined in section 1509.01 742
of the Revised Code. 743
(C) "Commence to construct" means any clearing of land, 744

Am. Sub. S. B. No. 2 As Passed by the Senate

excavation, or other action that would adversely affect the	745
natural environment of the site or route of a major utility	746
facility, but does not include surveying changes needed for	747
temporary use of sites or routes for nonutility purposes, or	748
uses in securing geological data, including necessary borings to	749
ascertain foundation conditions.	750
(D） "Certificate" means a certificate of environmental	751
	752
under section 4906.10 of the Revised Code or a construction	753
	754
division-divisions_(E)-or(F)_to (H) of section 4906.03 of the	755
Revised Code.	756
(E） "Gas" means natural gas, flammable gas, or gas that is	757
toxic or corrosive.	758
(F） "Natural gas liquids finished product pipeline" means	759
a pipeline that carries finished product natural gas liquids to	760
the inlet of an interstate or intrastate finished product	761
natural gas liquid transmission pipeline, rail loading facility,	762
or other petrochemical or refinery facility.	763
(	764
plant that consists of solar panels and associated facilities	765
with a single interconnection to the electrical grid that is a	766
major utility facility.	767
be o g ()	768
that consists of wind turbines and associated facilities with a	769
utility facility.	770 771
(I） "Natural gas liquids fractionation plant" means a	772
facility that takes a feed of raw natural gas liquids and	773

Am. Sub. S. B. No. 2 As Passed by the Senate

produces finished product natural gas liquids. 774

(J) "Raw natural gas" means hydrocarbons that are produced 775
in a gaseous state from gas wells and that generally include 776
methane, ethane, propane, butanes, pentanes, hexanes, heptanes, 777
octanes, nonanes, and decanes, plus other naturally occurring 778
impurities like water, carbon dioxide, hydrogen sulfide, 779
nitrogen, oxygen, and helium. 780

(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 785
individual finished product produced by a natural gas liquids 786
fractionation plant as a liquid that meets the specifications 787
for commercial products as defined by the gas processors 788
association. Those products include ethane, propane, iso-butane, 789
normal butane, and natural gasoline. 790

Sec. 4906.03. The power siting board shall:

(A) Require such information from persons subject to its 792
jurisdiction as it considers necessary to assist in the conduct 793
of hearings and any investigations or studies it may undertake; 794
(B) Conduct any studies or investigations that it 795
considers necessary or appropriate to carry out its 796
responsibilities under this chapter; 797
(C) Adopt rules establishing criteria for evaluating the 798
effects on environmental values of proposed and alternative 799
sites, and projected needs for electric power, and such other 800
rules as are necessary and convenient to implement this chapter, 801
including rules governing application fees, supplemental 802

Am. Sub. S. B. No. 2 As Passed by the Senate

application fees, and other reasonable fees to be paid by 803
persons subject to the board's jurisdiction. The board shall 804
make an annual accounting of its collection and use of these 805
fees and shall issue an annual report of its accounting, in the 806
form and manner prescribed by its rules, not later than the last 807
day of June of the year following the calendar year to which the 808
report applies. 809
(D) Approve, disapprove, or modify and approve 810
applications for certificates; 811
(E) Notwithstanding sections 4906.06 to 4906.14 of the 812
Revised Code, the board may adopt rules to provide for an 813
accelerated review of an application for a construction 814
certificate for construction of a major utility facility related 815
to a coal research and development project as defined in section 816
1555.01 of the Revised Code, or to a coal development project as 817
defined in section 1551.30 of the Revised Code, submitted to the 818
Ohio coal development office for review under division (B)(7) of 819
section 1551.33 of the Revised Code. Applications for 820
construction certificates for construction of major utility 821
facilities for Ohio coal research and development shall be filed 822
with the board on the same day as the proposed facility or 823
project is submitted to the Ohio coal development office for 824
review. 825
The board shall render a decision on an application for a 826
construction certificate within ninety days after receipt of the 827
application and all of the data and information it may require 828
from the applicant. In rendering a decision on an application 829
for a construction certificate, the board shall only consider 830
the criteria and make the findings and determinations set forth 831
in divisions (A)(2), (3), (5), and (7) and division (B) of 832

Am. Sub. S. B. No. 2 As Passed by the Senate

section 4906.10 of the Revised Code. 833
(F) Notwithstanding sections 4906.06 to 4906.14 of the 834
Revised Code, the board shall adopt rules to provide for an 835
accelerated review of an application for a construction 836
certificate for any of the following: 837
(1) An electric transmission line that is: 838
(a) Not more than two miles in length; 839
(b) Primarily needed to attract or meet the requirements 840
of a specific customer or specific customers; 841
(c) Necessary to maintain reliable electric service as a 842
result of the retirement or shutdown of an electric generating 843
facility located within the state; or 844
(d) A rebuilding of an existing transmission line. 845
(2) An electric generating facility that uses waste heat 846
or natural gas and is primarily within the current boundary of 847
an existing industrial or electric generating facility; 848
(3) A gas pipeline that is not more than five miles in 849
length or is primarily needed to meet the requirements of a 850
specific customer or specific customers. 851
The board shall adopt rules that provide for the automatic 852
certification to any entity described in this division when an 853
application by any such entity is not suspended by the board, an 854
administrative law judge, or the chairperson or executive 855
director of the board for good cause shown, within ninety days 856
of submission of the application. If an application is 857
suspended, the board shall approve, disapprove, or modify and 858
approve the application not later than ninety days after the 859
date of the suspension. 860

Am. Sub. S. B. No. 2 As Passed by the Senate

(G) Notwithstanding sections 4906.06 to 4906.14 of the 861
Revised Code, the board shall adopt rules to provide for the 862
accelerated review of an application for a construction 863
certificate for any of the following that are located in a 864
priority investment area designated and approved under section 865
122.161 of the Revised Code: 866
(1) An electric generating plant and associated 867
facilities; 868
(2) An electric transmission line and associated 869
facilities; 870
(3) Gas Pipeline infrastructure. 871
The chairperson of the board, not later than forty-five 872
days after receipt of an application submitted under division 873
(G) of this section, shall determine if it complies with all 874
application requirements set by the public utilities commission 875
by rule. If the chairperson does not issue a determination 876
within the time period required by this division, the 877
application shall be deemed in compliance by operation of law. 878
The board shall render a decision on an application 879
submitted under this division not later than forty-five days 880
after the application is determined in compliance with all 881
requirements set by the commission. If the board does not render 882
a decision within forty-five days, the application shall be 883
considered approved by operation of law, and the board shall 884
issue a certificate to the applicant. 885
The board shall adopt rules to implement this division, 886
including rules that prioritize applications for construction on 887
areas negatively impacted by the decline of the coal industry. 888
(H) Notwithstanding sections 4906.06 to 4906.14 of the 889

Am. Sub. S. B. No. 2 As Passed by the Senate

Revised Code, the board shall adopt rules to provide for the 890
accelerated review of an application for a construction 891
certificate for a major utility facility if at the time the 892
application is filed the construction will be located, in whole, 893
on property owned by, or under a lease with a term of twenty- 894
five years or more with, the applicant; in whole or in part, on 895
an easement or right-of-way; or on any combination of such 896
property, easement, or right-of-way. 897
No accelerated application shall be granted under the 898
rules adopted under division (H) of this section for 899
construction of a major utility facility, in whole or in part, 900
on property under a lease or an easement or right-of-way, if 901
additional consent for construction on the property, easement, 902
or right-of-way is required by any person or entity other than 903
the power siting board. 904
The board shall render a decision on an application 905
submitted under this division not later than forty-five days 906
after receipt of the application. If the board does not render a 907
decision within forty-five days, the application shall be 908
considered approved by operation of law, and the board shall 909
issue a certificate to the applicant. 910
Sec. 4906.06. (A) An applicant for a certificate shall 911
file with the office of the chairperson of the power siting 912
board an application, in such form as the board prescribes, 913
containing the following information: 914
(1) A description of the location and of the major utility 915
facility; 916
(2) A summary of any studies that have been made by or for 917
the applicant of the environmental impact of the facility; 918

Am. Sub. S. B. No. 2 As Passed by the Senate

(3) A statement explaining the need for the facility; 919
(4) A statement of the reasons why the proposed location 920
is best suited for the facility; 921
(5) A statement of how the facility fits into the 922
applicant's forecast contained in the report submitted under 923
section 4935.04 of the Revised Code; 924
(6) Such other information as the applicant may consider 925
relevant or as the board by rule or order may require. Copies of 926
the studies referred to in division (A)(2) of this section shall 927
be filed with the office of the chairperson, if ordered, and 928
shall be available for public inspection. 929
The application shall be filed not more than five years 930
prior to the planned date of commencement of construction. The 931
five-year period may be waived by the board for good cause 932
shown. 933
(B) Each application shall be accompanied by proof of 934
service of a copy of such application on the chief executive 935
officer of each municipal corporation and county, and the head 936
of each public agency charged with the duty of protecting the 937
environment or of planning land use, in the area in which any 938
portion of such facility is to be located. 939
(C) Each applicant within fifteen days after the date of 940
the filing of the application shall give public notice to 941
persons residing in the municipal corporations and counties 942
entitled to receive notice under division (B) of this section, 943
by the publication of a summary of the application in newspapers 944
of general circulation in such area. Proof of such publication 945
shall be filed with the office of the chairperson. 946
(D) Inadvertent failure of service on, or notice to, any 947

Am. Sub. S. B. No. 2 As Passed by the Senate

of the persons identified in divisions (B) and (C) of this 948
section may be cured pursuant to orders of the board designed to 949
afford them adequate notice to enable them to participate 950
effectively in the proceeding. In addition, the board, after 951
filing, may require the applicant to serve notice of the 952
application or copies thereof or both upon such other persons, 953
and file proof thereof, as the board considers appropriate. 954
(E) An application for an amendment of a certificate shall 955
be in such form and contain such information as the board 956
prescribes. Notice of such an application shall be given as 957
required in divisions (B) and (C) of this section. 958

(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

Am. Sub. S. B. No. 2 As Passed by the Senate

iance with this section not more than forty-five days	978
application is filed. If the chairperson does not	979
cermination within the time period required by this	980
che application shall be deemed in compliance by	981
flaw.	982
4906.07．(A) Upon the receipt of an application	983
vith section 4906.06 of the Revised Code, the power	984
cd shall promptly fix a date for a public hearing	985
ot less than sixty forty-five nor more than ninety	986
after such receipt, and shall conclude the proceeding	987
ously as practicable.	988
on an application for an amendment of a certificate,	989
shall hold a hearing in the same manner as a hearing	990
an application for a certificate if the proposed	991
che facility would result in any material increase in	992
nmental impact of the facility or a substantial change	993
ation of all or a portion of such facility other than	994
d in the alternates set forth in the application.	995
	996
cation filed with the board to be investigated and	997
less than fifteen-five days prior to the date any	998
n is set for hearing submit a written report to the	999
o the applicant. A copy of such report shall be made	1000
co any person upon request. Such report shall set	1001
nature of the investigation, and shall contain	1002
d findings with regard to division (A） of section	1003
the Revised Code and shall become part of the record	1004
upon all parties to the proceeding.	1005
4906.1o. (A) The power siting board shall render a	1006
oon the record either granting or denying the	1007

Am. Sub. S. B. No. 2 As Passed by the Senate

application as filed, or granting it upon such terms, 1008
conditions, or modifications of the construction, operation, or 1009
maintenance of the major utility facility as the board considers 1010
appropriate. The certificate shall be subject to sections 1011
4906.101, 4906.102, and 4906.103 of the Revised Code and 1012
conditioned upon the facility being in compliance with standards 1013
and rules adopted under section 4561.32 and Chapters 3704., 1014
3734., and 6111. of the Revised Code. An applicant may withdraw 1015
an application if the board grants a certificate on terms, 1016
conditions, or modifications other than those proposed by the 1017
applicant in the application. 1018
The board shall not grant a certificate for the 1019
construction, operation, and maintenance of a major utility 1020
facility, either as proposed or as modified by the board, unless 1021
it finds and determines all of the following: 1022
(1) The basis of the need for the facility if the facility 1023
is an electric transmission line or gas pipeline; 1024
(2) The nature of the probable environmental impact; 1025
(3) That the facility represents the minimum adverse 1026
environmental impact, considering the state of available 1027
technology and the nature and economics of the various 1028
alternatives, and other pertinent considerations; 1029
(4) In the case of an electric transmission line or 1030
generating facility, that the facility is consistent with 1031
regional plans for expansion of the electric power grid of the 1032
electric systems serving this state and interconnected utility 1033
systems and that the facility will serve the interests of 1034
electric system economy and reliability; 1035
(5) That the facility will comply with Chapters 3704., 1036

Am. Sub. S. B. No. 2 As Passed by the Senate

3734., and 6111. of the Revised Code and all rules and standards 1037
adopted under those chapters and under section 4561.32 of the 1038
Revised Code. In determining whether the facility will comply 1039
with all rules and standards adopted under section 4561.32 of 1040
the Revised Code, the board shall consult with the office of 1041
aviation of the division of multi-modal planning and programs of 1042
the department of transportation under section 4561.341 of the 1043
Revised Code. 1044
(6) That the facility will serve the public interest, 1045
convenience, and necessity; 1046
(7) In addition to the provisions contained in divisions 1047
(A)(1) to (6) of this section and rules adopted under those 1048
divisions, what its impact will be on the viability as 1049
agricultural land of any land in an existing agricultural 1050
district established under Chapter 929. of the Revised Code that 1051
is located within the site and alternative site of the proposed 1052
major utility facility. Rules adopted to evaluate impact under 1053
division (A)(7) of this section shall not require the 1054
compilation, creation, submission, or production of any 1055
information, document, or other data pertaining to land not 1056
located within the site and alternative site. 1057
(8) That the facility incorporates maximum feasible water 1058
conservation practices as determined by the board, considering 1059
available technology and the nature and economics of the various 1060
alternatives. 1061
(B) If the board determines that the location of all or a 1062
part of the proposed facility should be modified, it may 1063
condition its certificate upon that modification, provided that 1064
the municipal corporations and counties, and persons residing 1065
therein, affected by the modification shall have been given 1066

Am. Sub. S. B. No. 2 As Passed by the Senate

reasonable notice thereof. 1067

(C) A copy of the decision and any opinion issued 1068
therewith shall be served upon each party. 1069

(D) The board shall render a decision under this section not later than one hundred twenty days after the date the application is found in compliance with section 4906.06 of the Revised Code. 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 subject to the conditions contained within the staff report issued under section 4906.07 of the Revised Code.

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 1094
valuation, every public utility or railroad shall: 1095

Am. Sub. S. B. No. 2

AsPassed bytheSenate
	(l） Furnish to the commission, or to its agents,as the	1096
	commission requires, maps, profiles, schedules of rates and	1097
	tariffs, contracts, reports of engineers, and other documents,	1098
	records, and papers, or copies of any of them, in aid of any	1099
	investigation and ascertainment of the value of its property;	1100
		1101
	all of its premises and property and its accounts, records, and	1102
	memoranda whenever and wherever requested by any such authorized	1103
agent;		1104
	(3) Cooperate with and aid the commission and its agents	1105
	in the work of the valuation of its property in such further	1106
		1107
directs.		1108
	(C) The commission may make all rules which seem necessary	1109
	to ascertain the value of the property and plant of each public	1110
utility or railroad.		1111
	Sec. 4909.041. As used in sections 4909.041, 4909.042, and	1112
	4909.05 of the Revised Code:	1113
	(A) A "lease purchase agreement" is an agreement pursuant	1114
	to which a public utility leasing property is required to make	1115
	rental payments for the term of the agreement and either the	1116
		1117
completion of the term of the agreement and upon the payment of		1118
an additional fixed sum of money or title to the property vests		1119
	in the utility upon the making of the final rental payment.	1120
	(B) A "leaseback" is the sale or transfer of property by a	1121
the leasing of the property to the public utility on a long-term	public utility to another person contemporaneously followed by	1122 1123
basis.		1124

Am. Sub. S. B. No. 2 As Passed by the Senate

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;

1125
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1152
1153
1154

(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;

Am. Sub. S. B. No. 2 As Passed by the Senate

(4) The cost of property constituting all or part of a 1155
project projected to be leased to or used by the utility during 1156
the test period, under Chapter 165., 3706., 6121., or 6123. of 1157
the Revised Code and not included under division (B)(3) of this 1158
section exclusive of any interest directly or indirectly paid by 1159
the utility with respect thereto whether or not capitalized; 1160
(5) In the discretion of the commission, the cost to a 1161
utility, in an amount determined to be reasonable by the 1162
commission, of property constituting all or part of a project 1163
projected to be leased to the utility during the test period, 1164
under a lease purchase agreement or a leaseback and not included 1165
under division (B)(3) of this section exclusive of any interest 1166
directly or indirectly paid by the utility with respect thereto 1167
whether or not capitalized; 1168
(6) The proper and adequate reserve for depreciation, as 1169
determined to be reasonable by the commission; 1170
(7) Any sums of money or property that the utility is 1171
projected to receive during the test period, as total or partial 1172
defrayal of the cost of its property; 1173
(8) The valuation of the property of the utility, which 1174
shall be the sum of the amounts contained in the report pursuant 1175
to divisions (B)(1) to (5) of this section, less the sum of the 1176
amounts contained in the report pursuant to divisions (B)(6) and 1177
(7) of this section. 1178
(C) The report shall show separately the property 1179
projected to be used and useful to or held by the utility during 1180
the test period, and such other items as the commission 1181
considers proper. The commission may require an additional 1182
report showing the extent to which the property is projected to 1183

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

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.

1184
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1200
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1212

(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

Am. Sub. S. B. No. 2 As Passed by the Senate

(B） Such_report shall contain the following facts in detail:

1214

(l） The original cost of each parcel of land owned in fee 1215

and in use, or, with respect to a natural gas, water-works, or 1216

pue aag ut paumo aa oa paioalord 'ueduoo waiss tesodstp abemas 1217

in use as of the date certain, determined by the commission; and 1218

also a statement of the conditions of acquisition, whether by 1219

direct purchase, by donation, by exercise of the power of 1220

eminent domain， or otherwise; 1221

(2） The actual acquisition cost, not including periodic 1222

rental fees, of rights-of-way, trailways, or other land rights 1223

held, or, with respect to a natural gas, water-works, or sewage 1224

p aua go se ptau aa oi paaoaord 'ueduoo wass tesods 1225

certain, by virtue of easements, leases, or other forms of 1226

grants of rights as to usage; 1227

(3） The original cost of all other kinds and classes of 1228

property used and useful, or, with respect to a natural gas, 1229

water-works, or sewage disposal system company, projected to be 1230

used and useful as of the date certain, in the rendition of 1231

service to the public. Subject to section 4909.052 of the 1232

Revised Code, such original costs of property, other than land 1233

owned in fee， shall be the cost, as determined to be reasonable 1234

by the commission, to the person that first dedicated or 1235

dedicates the property to the public use and shall be set forth 1236

in property accounts and subaccounts as prescribed by the 1237

commission. To the extent that the costs of property comprising 1238

a coal research and development facility, as defined in section 1239

1555.01 of the Revised Code, or a coal development project, as 1240

defined in section 1551.30 of the Revised Code, have been 1241

allowed for recovery as Ohio coal research and development costs 1242

Am. Sub. S. B. No. 2 As Passed by the Senate

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 $\twoheadleftarrow$ (B)(3) of this section exclusive of any interest directly or indirectly paid by the utility with respect thereto whether or not capitalized;

1243
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1247
1248
1249
1250
1251
1252
1253
(5) In the discretion of the commission, the cost to a 1254
1255
1256
leased to the utility, or, with respect to a natural gas, water- 1257
works, or sewage disposal system company, projected to be leased 1258
to the utility as of the date certain, under a lease purchase 1259
$\twoheadleftarrow$ 1260
1261
indirectly paid by the utility with respect thereto whether or 1262
1263
(6) The cost of the replacement of water service lines 1264
incurred by a water-works company under section 4909.173 of the 1265
1266
1267
1268
(7) The proper and adequate reserve for depreciation, as 1269
1270
(8) Any sums of money or property that the company may 1271

utility, in an amount determined to be reasonable by the commission, of property constituting all or part of a project agreement or a leaseback and not included under division (B)(3) of this section exclusive of any interest directly or not capitalized;

Revised Code and the water service line replacement reimbursement amounts provided to customers under section 4909.174 of the Revised Code;

determined to be reasonable by the commission;

Am. Sub. S. B. No. 2 As Passed by the Senate

have received, or, with respect to a natural gas, water-works, 1272
or sewage disposal system company, is projected to receive as of 1273
the date certain, as total or partial defrayal of the cost of 1274
its property; 1275

(9) The valuation of the property of the company, which shall be the sum of the amounts contained in the report pursuant to divisions $\twoheadleftarrow$ (B)(1) to (6) of this section, less the sum of the amounts contained in the report pursuant to divisions (C) $\nleftarrow$ (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 $\twoheadleftarrow$ (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

Am. Sub. S. B. No. 2 As Passed by the Senate

determined according to all of the following requirements: 1302
(A) The acquiring company has three appraisals performed 1303
on the property of the company being acquired. 1304
(B) The three appraisals are performed by three 1305
independent utility-valuation experts mutually selected by the 1306
acquiring company and the company being acquired from the list 1307
maintained under section 4909.054 of the Revised Code. 1308
(C) The average of the three appraisals is used as the 1309
fair market value of the company being acquired. 1310
(D) Each utility-valuation expert does all of the 1311
following: 1312
(1) Determines the fair market value of the company to be 1313
acquired by establishing the amount for which the company would 1314
be sold in a voluntary transaction between a willing buyer and a 1315
willing seller under no obligation to buy or sell; 1316
(2) Determines the fair market value in compliance with 1317
the uniform standards of professional appraisal practice; 1318
(3) Employs the cost, market, and income approach to 1319
independently quantify the future benefits of the company to be 1320
acquired; 1321
(4) Incorporates the assessment described in division (D) 1322
(5) of this section into the appraisal under the cost, market, 1323
and income approach; 1324
(5) Engages one engineer who is licensed to prepare an 1325
assessment of the tangible assets of the company to be acquired. 1326
The original source of funding for any part of the tangible 1327
assets shall not be relevant to the determination of the value 1328
of those assets. 1329

Am. Sub. S. B. No. 2 As Passed by the Senate

(E) The lesser of the purchase price or the fair market 1330
value, described in division (C) of this section, is reported as 1331
the original cost under division (C)(3) (B)(3) of section 1332
4909.05 of the Revised Code of the company to be acquired. 1333

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

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

1360
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1371
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1379
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1386
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1388

"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.

Am. Sub. S. B. No. 2 As Passed by the Senate

Sec. 4909.08. When the public utilities commission has 1389
completed the valuation of the property of any public utility or 1390
railroad and before such valuation becomes final, it shall give 1391
notice by registered letter to such public utility or railroad, 1392
and if a substantial portion of said public utility or railroad 1393
is situated in a municipal corporation, then to the mayor of 1394
such municipal corporation, stating the valuations placed upon 1395
the several kinds and classes of property of such public utility 1396
or railroad and upon the property as a whole and give such 1397
further notice by publication or otherwise as it shall deem 1398
necessary to apprise the public of such valuation. If, within 1399
thirty days after such notification, no protest has been filed 1400
with the commission, such valuation becomes final. If notice of 1401
protest has been filed by any public utility or railroad, the 1402
commission shall fix a time for hearing such protest and shall 1403
consider at such hearing any matter material thereto presented 1404
by such public utility, railroad, or municipal corporation, in 1405
support of its protest or by any representative of the public 1406
against such protest. If, after the hearing of any protest of 1407
any valuation so fixed, the commission is of the opinion that 1408
its inventory is incomplete or inaccurate or that its valuation 1409
is incorrect, it shall make such changes as are necessary and 1410
shall issue an order making such corrected valuations final. A 1411
final valuation by the commission and all classifications made 1412
for the ascertainment of such valuations shall be public and are 1413
prima-facie evidence relative to the value of the property. 1414

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

(A) With respect to a public utility that is a natural 1417
gas, water-works, or sewage disposal system company, projected 1418
valuation and value as of the date certain, if applicable 1419

Am. Sub. S. B. No. 2 As Passed by the Senate

because of a future date certain under section 4909.15 of the 1420
Revised Code; 1421

(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

1422
1423
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1448

(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 $\twoheadleftarrow$ (B)(8) of section 4909.042 of the Revised Code and division (B)(9) of section 4909.05 of the

Am. Sub. S. B. No. 2 As Passed by the Senate

Revised Code, and a reasonable allowance for materials and 1449
supplies and a reasonable allowance for cash working capital as 1450
determined by the commission. 1451
The commission, in its discretion, may include in the 1452
valuation a reasonable allowance for construction work in 1453
progress but, in no event, may such an allowance be made by the 1454
commission until it has determined that the particular 1455
construction project is at least seventy-five per cent complete. 1456
In determining the percentage completion of a particular 1457
construction project, the commission shall consider, among other 1458
relevant criteria, the per cent of time elapsed in construction; 1459
the per cent of construction funds, excluding allowance for 1460
funds used during construction, expended, or obligated to such 1461
construction funds budgeted where all such funds are adjusted to 1462
reflect current purchasing power; and any physical inspection 1463
performed by or on behalf of any party, including the 1464
commission's staff. 1465
A reasonable allowance for construction work in progress 1466
shall not exceed ten per cent of the total valuation as stated 1467
in this division, not including such allowance for construction 1468
work in progress. 1469
Where the commission permits an allowance for construction 1470
work in progress, the dollar value of the project or portion 1471
thereof included in the valuation as construction work in 1472
progress shall not be included in the valuation as plant in 1473
service until such time as the total revenue effect of the 1474
construction work in progress allowance is offset by the total 1475
revenue effect of the plant in service exclusion. Carrying 1476
charges calculated in a manner similar to allowance for funds 1477
used during construction shall accrue on that portion of the 1478

Am. Sub. S. B. No. 2 As Passed by the Senate

project in service but not reflected in rates as plant in 1479
service, and such accrued carrying charges shall be included in 1480
the valuation of the property at the conclusion of the offset 1481
period for purposes of division (C)(9) of section 4909.05 of the 1482
Revised Code. 1483
From and after April 10, 1985, no allowance for 1484
construction work in progress as it relates to a particular 1485
construction project shall be reflected in rates for a period 1486
exceeding forty-eight consecutive months commencing on the date 1487
the initial rates reflecting such allowance become effective, 1488
except as otherwise provided in this division. 1489

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.

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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, 1506
abandoned, or terminated construction of a project for which it 1507
was previously permitted a construction work in progress 1508

Am. Sub. S. B. No. 2 As Passed by the Senate

allowance, the commission immediately shall exclude the 1509
allowance for the project from the valuation. 1510
In the event that a construction work in progress project 1511
previously included in the valuation is removed from the 1512
valuation pursuant to this division, any revenues collected by 1513
the utility from its customers after April 10, 1985, that 1514
resulted from such prior inclusion shall be offset against 1515
future revenues over the same period of time as the project was 1516
included in the valuation as construction work in progress. The 1517
total revenue effect of such offset shall not exceed the total 1518
revenues previously collected. 1519
In no event shall the total revenue effect of any offset 1520
or offsets provided under division (A)(1) of this section exceed 1521
the total revenue effect of any construction work in progress 1522
allowance. 1523
(2) A fair and reasonable rate of return to the utility on 1524
the valuation as determined in division (A)(1) of this section; 1525
(3) The dollar annual return to which the utility is 1526
entitled by applying the fair and reasonable rate of return as 1527
determined under division (A)(2) of this section to the 1528
valuation of the utility determined under division (A)(1) of 1529
this section; 1530
(4) The cost to the utility of rendering the public 1531
utility service for the test period used for the determination 1532
under division (C)(1) of this section, less the total of any 1533
interest on cash or credit refunds paid, pursuant to section 1534
4909.42 of the Revised Code, by the utility during the test 1535
period. 1536
(a) Federal, state, and local taxes imposed on or measured 1537

Am. Sub. S. B. No. 2 As Passed by the Senate

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 ratemaking 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.

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1568

(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.

Am. Sub. S. B. No. 2 As Passed by the Senate

(B） The commission shall compute the gross annual revenues
		which the utility is entitled by adding the dollar amount of					1569
							1570
			irn under division (A)(3） of this section to the cost,for				1571
							1572
		chis section, of rendering the public utility service under					1573
		sion (A)(4） of this section.					1574
		(C)(l） Except as provided in division (D) of this section,					1575
		revenues and expenses of the utility shall be determined					1576
		ng a test period. The utility may_as follows:					1577
		(a) Electric light companies may propose a forecasted test
		od. If the company proposes a forecasted test period, the					1578
		Dany shall propose annual base rates for three consecutive					1579
		ve-month periods in a single forecasted test period					1580
		ication. During the first twelve-month period, the company					1581
		propose a reasonably forecasted rate base during a thirteen-					1582
		ch average, revenues, and expenses for the first twelve					1583
		ths that new base rates will be in effect.					1584 1585
		During the second twelve-month period, the base rate
		enue requirement shall be adjusted for the return of， and					1586 1587
		irn on, incremental rate base additions approved by the					1588
		nission in the initial application. During the third twelve-					1589
							1590
	the return of and return on incremental rate base additions						1591
	coved by the commission in the initial application.						1592
	For each twelve-month period, forecasted plant investment,						1593
	ecasted revenue, and forecasted expenses versus actual						1594
	estment, actual revenue, and actual expenses shall be trued	ia a cost recovery mechanism approved by the commission.					1595 1596
		Each true-up process shall include an adjustment to actual					1597

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

(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.

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(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, waterworks, 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

Am. Sub. S. B. No. 2 As Passed by the Senate

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:

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(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,

Am. Sub. S. B. No. 2 As Passed by the Senate

(a) Including a fair and reasonable rate of return 1658
determined by the commission with reference to a cost of debt 1659
equal to the actual embedded cost of debt of such public 1660
utility, 1661

(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 $\twoheadleftarrow$ (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.

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(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.

Am. Sub. S. B. No. 2 As Passed by the Senate

Sec. 4909.156. In fixing the just, reasonable, and 1688
compensatory rates, joint rates, tolls, classifications, 1689
charges, or rentals to be observed and charged for service by 1690
any public utility, the public utilities commission shall, in 1691
action upon an application filed pursuant to section 4909.18 of 1692
the Revised Code, require a public utility to file a report 1693
showing the proportionate amounts of the valuation of the 1694
property of the utility, as determined under section 4909.042 or 1695
4909.05 of the Revised Code, and the proportionate amounts of 1696
the revenues and expenses of the utility that are proposed to be 1697
considered as attributable to the service area involved in the 1698
application. 1699
"Valuation," as used in this section, may include, with : 1700
(A) With respect to a public utility that is a natural 1701
gas, water-works, or sewage disposal system company, projected 1702
valuation as of the date certain, if applicable because of a 1703
future date certain under section 4909.15 of the Revised Code; 1704
(B) With respect to an electric light company that chooses 1705
to file a forecasted test period under section 4909.18 of the 1706
Revised Code, the valuation and value during the forecasted test 1707
period. 1708
Sec. 4909.173. (A) As used in this section and section 1709
4909.174 of the Revised Code: 1710
(1) "Customer-owned water service line" means the water 1711
service line connected to the water-works company's water 1712
service line at the curb of a customer's property. 1713
(2) "Water-works company" means an entity defined under 1714
division (G) of section 4905.03 of the Revised Code that is a 1715
public utility under section 4905.02 of the Revised Code. 1716

Am. Sub. S. B. No. 2

As Passed by the Senate
(B) A water-works company may do any of the following: 1717
(1) Replace lead customer-owned water service lines 1718
concurrently with a scheduled utility main replacement project, 1719
an emergency replacement, or company-initiated lead water 1720
service line replacement program; 1721
(2) Replace lead customer-owned water service lines when 1722
mandated or ordered to replace such lines by law or a state or 1723
federal regulatory agency; 1724
3) Replace customer-owned water service lines of other 1725
composition when mandated or ordered to replace such lines by 1726
law or a state or federal regulatory agency. 1727
(C) If a water-works company replaces customer-owned water 1728
lines under this section, then the company shall include 1729
the cost of the replacement of the water service lines, 1730
including the cost of replacement of both company side and 1731
r-owned water service lines and the cost to evaluate 1732
customer-owned water service lines of unknown composition, in 1733
the valuation report of the property of the company as required 1734
under division $\twoheadleftarrow$ (B)(6) of section 4909.05 of the Revised 1735
Code for inclusion in a rate case under this chapter. 1736
(D) The water service customer who is responsible for the 1737
customer-owned water service line that was replaced under this 1738
section shall hold legal title to the replaced water service 1739
line. 1740
ec. 4909.174. (A) A water-works company shall reimburse a 1741
customer who replaces the customer's customer-owned water 1742
line, if both of the following occur: 1743
(1) The company confirms that the customer-owned water 1744
service line was composed of lead or other composition that was 1745

Am. Sub. S. B. No. 2 As Passed by the Senate

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 $\twoheadleftarrow$ (B)(6) of section 4909.05 of the Revised Code for inclusion in a rate case under this chapter.

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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,

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

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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

Am. Sub. S. B. No. 2 Page 63
As Passed by the Senate
the commission, be filed with the application in duplicate the 1807
following exhibits: 1808
(A) A report of its property used and useful, or, with 1809
respect to a natural gas, water-works, or sewage disposal system 1810
company, projected to be used and useful, as of the date 1811
certain, or during the forecasted test period, if the 1812
application is filed under division (C)(1)(a) of section 4909.15 1813
of the Revised Code, in rendering the service referred to in 1814
such application, as provided in section sections 4909.042 and 1815
4909.05 of the Revised Code; 1816
(B) A complete operating statement of its last fiscal 1817
year, showing in detail all its receipts, revenues, and incomes 1818
from all sources, all of its operating costs and other 1819
expenditures, and any analysis such public utility deems 1820
applicable to the matter referred to in said application; 1821
(C) A statement of the income and expense anticipated 1822
under the application filed; 1823
(D) A statement of financial condition summarizing assets, 1824
liabilities, and net worth; 1825
(E) Such other information as the commission may require 1826
in its discretion. 1827
Sec. 4909.181. (A) As used in this section, "electric 1828
distribution utility" has the same meaning as in section 4928.01 1829
of the Revised Code. 1830
(B) Not later than December 31, 2029, and at least every 1831
three years thereafter, each electric distribution utility shall 1832
file a rate case application regarding distribution service 1833
under section 4909.18 of the Revised Code. 1834

Am. Sub. S. B. No. 2 As Passed by the Senate

Sec. 4909.19. (A) Upon the filing of any application for 1835
increase provided for by section 4909.18 of the Revised Code the 1836
public utility shall forthwith publish notice of such 1837
application, in a form approved by the public utilities 1838
commission, once a week for two consecutive weeks in a newspaper 1839
published and in general circulation throughout the territory in 1840
which such public utility operates and directly affected by the 1841
matters referred to in said application. The notice shall 1842
include instructions for direct electronic access to the 1843
application or other documents on file with the public utilities 1844
commission. The first publication of the notice shall be made in 1845
its entirety and may be made in a preprinted insert in the 1846
newspaper. The second publication may be abbreviated if all of 1847
the following apply: 1848
(1) The abbreviated notice is at least one-fourth of the 1849
size of the notice in the first publication. 1850
(2) At the same time the abbreviated notice is published, 1851
the notice in the first publication is posted in its entirety on 1852
the newspaper's web site, if the newspaper has a web site, and 1853
the commission's web site. 1854
(3) The abbreviated notice contains a statement of the web 1855
site posting or postings, as applicable, and instructions for 1856
accessing the posting or postings. 1857
(B) The commission shall determine a format for the 1858
content of all notices required under this section, and shall 1859
consider costs and technological efficiencies in making that 1860
determination. Defects in the publication of said notice shall 1861
not affect the legality or sufficiency of notices published 1862
under this section provided that the commission has 1863
substantially complied with this section, as described in 1864

Am. Sub. S. B. No. 2 As Passed by the Senate

section 4905.09 of the Revised Code.

(C) The commission shall at once cause an investigation to 1866

be made of the facts set forth in said application and the 1867

exhibits attached thereto, and of the matters connected 1868

therewith. Within a reasonable time as determined by the 1869

commission one hundred eighty days_after the filing of such 1870

application_is determined to be complete, a written report shall 1871

be made and filed with the commission, a copy of which shall be 1872

sent by certified mail to the applicant, the mayor of any 1873

municipal corporation affected by the application, and to such 1874

other persons as the commission deems interested. If no 1875

objection to such report is made by any party interested within 1876

1877

the commission shall fix a date within ten days for the final 1878

hearing upon said application, giving notice thereof to all 1879

parties interested. At such hearing the commission shall 1880

consider the matters set forth in said application and make such 1881

1882

reasonable. 1883

If objections are filed with the commission, the 1884 commission shall cause a pre-hearing conference to be held 1885

between all parties, intervenors, and the commission staff in 1886

all cases involving more than one hundred thousand customers. 1887

1888

days after the filing of such report, the application shall be 1889

1890

or be forthwith referred to an attorney examiner designated by 1891

the commission to take all the testimony with respect to the 1892

application and objections which may be offered by any 1893

interested party. The commission shall also fix the time and 1894

Am. Sub. S. B. No. 2 As Passed by the Senate

place to take testimony giving ten days' written notice of such 1895
time and place to all parties. The taking of testimony shall 1896
commence on the date fixed in said notice and shall continue 1897
from day to day until completed. The attorney examiner may, upon 1898
good cause shown, grant continuances for not more than three 1899
days, excluding Saturdays, Sundays, and holidays. The commission 1900
may grant continuances for a longer period than three days upon 1901
its order for good cause shown. At any hearing involving rates 1902
or charges sought to be increased, the burden of proof to show 1903
that the increased rates or charges are just and reasonable 1904
shall be on the public utility. 1905

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 1918
taking of testimony is required, except when heard by the 1919
commission, attorney examiners shall be assigned by the 1920
commission to take such testimony and fix the time and place 1921
therefor, and such testimony shall be taken in the manner 1922
prescribed in this section. All testimony shall be under oath or 1923
affirmation and taken down and transcribed by a reporter and 1924
made a part of the record in the case. The commission may hear 1925

Am. Sub. S. B. No. 2 As Passed by the Senate

the testimony or any part thereof in any case without having the 1926
same referred to an attorney examiner and may take additional 1927
testimony. Testimony shall be taken and a record made in 1928
accordance with such general rules as the commission prescribes 1929
and subject to such special instructions in any proceedings as 1930
it, by order, directs. 1931

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 customerclass 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.

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

Am. Sub. S. B. No. 2 As Passed by the Senate

(C) The commission shall review the proposed rate or 1957
charge adjustments submitted under divisions (A) and (B) of this 1958
section. The review shall not include a hearing unless the 1959
commission finds that the proposed rate or charge adjustments 1960
may be unreasonable, in which case the commission may, in its 1961
discretion, schedule the matter for a hearing. 1962

(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.

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After the commission has issued such a final order, the 1976
natural gas, water-works, or sewage disposal system 1977
companypublic utility, if applicable, shall submit to the 1978
commission proposed reconciliation adjustments that refund to 1979
customers the difference between the actual revenues collected 1980
by the natural gas, water-works, or sewage disposal system 1981
company,utility under the rates and charges determined by the 1982
commission under section 4909.15 of the Revised Code, and the 1983
rates or charges recalculated under the adjustments authorized 1984
under this division. The reconciliation adjustments shall be 1985
effective for a twelve-month period. 1986

Am. Sub. S. B. No. 2 As Passed by the Senate

(E) The reconciliation adjustments ordered under division 1987
(D) of this section may be subject to a final reconciliation by 1988
the commission. Any such final reconciliation shall occur after 1989
the twelve-month period described in division (D) of this 1990
section. 1991
Sec. 4909.192. When considering an application to increase 1992
rates under section 4909.18 of the Revised Code, the public 1993
utilities commission may approve the following: 1994
(A) Nondiscriminatory programs available for all energy- 1995
intensive customers to implement economic development, job 1996
growth, job retention, or interruptible rates that enhance 1997
distribution and transmission grid reliability and promote 1998
economic development. 1999
(B) Nondiscriminatory programs available for all 2000
mercantile customers, as defined in section 4928.01 of the 2001
Revised Code, that align retail rate recovery with how 2002
transmission costs are incurred by or charged to the electric 2003
distribution utility, as defined in section 4928.01 of the 2004
Revised Code, or programs that allow customers to be billed 2005
directly for transmission service by a competitive retail 2006
electric service provider. 2007
(C) Nondiscriminatory programs available for residential 2008
customers and small commercial customers, as defined in section 2009
4928.101 of the Revised Code, that reduce demand at peak times 2010
for purposes of grid reliability or to help lower customer 2011
rates, including peak demand reduction programs under section 2012
4928.107 of the Revised Code. Any programs to reduce demand 2013
proposed in an application to increase rates shall include terms 2014
permitting competitive retail electric service providers, 2015
certified under section 4928.08 of the Revised Code, to offer 2016
their customers access to these programs. 2017
Sec. 4909.193. The public utilities commission shall 2018
determine whether an application for an increase filed under 2019
section 4909.18 of the Revised Code is complete not more than 2020
forty-five days after the application is filed. If the 2021
commission does not issue a determination within the time period 2022
required by this section, the application shall be deemed 2023
complete by operation of law. 2024

Sec. 4909.42. 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, 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 order entered pursuant to section 4909.19 of the Revised Code at the expiration of two hundred seventy-five two hundred ninety days from the date of filing the application is determined complete, an the public utility may request a temporary increase not to exceed the proposed increase and any party to the proceeding may request a temporary decrease, which shall go into effect upon the filing of a bond or a letter of credit by the public utilityand remain in effect until modified in accordance with the commission's determination on the merits of the application. 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 changeIf the commission does not issue an order within three hundred twenty days after the application is deemed complete, 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 is subject to refund.

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.

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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. 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

Am. Sub. S. B. No. 2 As Passed by the Senate

supply from generation resources and voltage control service; 2077
reactive supply from transmission resources service; regulation 2078
service; frequency response service; energy imbalance service; 2079
operating reserve-spinning reserve service; operating reserve- 2080
supplemental reserve service; load following; back-up supply 2081
service; real-power loss replacement service; dynamic 2082
scheduling; system black start capability; and network stability 2083
service. 2084
(2) "Billing and collection agent" means a fully 2085
independent agent, not affiliated with or otherwise controlled 2086
by an electric utility, electric services company, electric 2087
cooperative, or governmental aggregator subject to certification 2088
under section 4928.08 of the Revised Code, to the extent that 2089
the agent is under contract with such utility, company, 2090
cooperative, or aggregator solely to provide billing and 2091
collection for retail electric service on behalf of the utility 2092
company, cooperative, or aggregator. 2093
(3) "Certified territory" means the certified territory 2094
established for an electric supplier under sections 4933.81 to 2095
4933.90 of the Revised Code. 2096
(4) "Competitive retail electric service" means a 2097
component of retail electric service that is competitive as 2098
provided under division (B) of this section. 2099
(5) "Electric cooperative" means a not-for-profit electric 2100
light company that both is or has been financed in whole or in 2101
part under the "Rural Electrification Act of 1936," 49 Stat. 2102
1363, 7 U.S.C. 901, and owns or operates facilities in this 2103
state to generate, transmit, or distribute electricity, or a 2104
not-for-profit successor of such company. 2105

Am. Sub. S. B. No. 2 As Passed by the Senate

(6) "Electric distribution utility" means an electric 2106
utility that supplies at least retail electric distribution 2107
service and does not own or operate an electric generating 2108
facility. 2109

(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 2126
section 4933.81 of the Revised Code. 2127
(11) "Electric utility" means an electric light company 2128
that has a certified territory and is engaged on a for-profit 2129
basis either in the business of supplying at least a 2130
noncompetitive retail electric service in this state or in the 2131
businesses of supplying both a noncompetitive and a competitive 2132
retail electric service in this state. "Electric utility" 2133
excludes a municipal electric utility or a billing and 2134

Am. Sub. S. B. No. 2 As Passed by the Senate

collection agent.		2135
	(12) "Firm electric service" means electric service other	2136
than nonfirm electric service.		2137
	(13) "Governmental aggregator" means a legislative	2138
	authority of a municipal corporation, a board of township	2139
	trustees， or a board of county commissioners acting as an	2140
	aggregator for the provision of a competitive retail electric	2141
	service under authority conferred under section 4928.20 of the	2142
Revised Code.		2143
	(l4） A person acts "knowingly," regardless of the person's	2144
	purpose, when the person is aware that the person's conduct will	2145
		2146
		2147
	is aware that such circumstances probably exist.	2148
	o o- g g ()	2149
	efficiency programs provided through electric utility rates"	2150
		2151
	utility's rates on October 5, 1999, pursuant to an order of the	2152
	public utilities commission issued under Chapter 4905. or 4909.	2153
	of the Revised Code and in effect on October 4， 1999, for the	2154
purpose of improving the energy efficiency of housing for the		2155
	utility's low-income customers. The term excludes the level of	2156
	any such funds committed to a specific nonprofit organization or	2157
organizations pursuant to a stipulation or contract.		2158
		2159
		2160
	assistance program, the home weatherization assistance program,	2161

(17) "Market development period" for an electric utility

Am. Sub. S. B. No. 2 As Passed by the Senate

date for that utility as specified in section 4928.40 of the	competitive retail electric service and ending on the applicable	2165
		2166
	Revised Code, irrespective of whether the utility applies to	2167
		2168
	(18) "Market power" means the ability to impose on	2169
	customers a sustained price for a product or service above the	2170
	price that would prevail in a competitive market.	2171
	(19) "Mercantile customer" means a commercial or	2172
	industrial customer if the electricity consumed is for	2173
	nonresidential use and the customer consumes more than seven	2174
	hundred thousand kilowatt hours per year or is part of a	2175
	national account involving multiple facilities in one or more	2176
states.		2177
	(20) "Municipal electric utility" means a municipal	2178
		2179
	transmit, or distribute electricity.	2180
	(2l) "Noncompetitive retail electric service" means a	2181
	component of retail electric service that is noncompetitive as	2182
provided under division (B) of this section.		2183
	(22) "Nonfirm electric service" means electric service	2184
	provided pursuant to a schedule filed under section 4905.30 of	2185
	the Revised Code or pursuant to an arrangement under section	2186
	4905.3l of the Revised Code, which schedule or arrangement	2187
	includes conditions that may require the customer to curtail or	2188
	interrupt electric usage during nonemergency circumstances upon	2189
notification by an electric utility.		2190
	(23) "Percentage of income payment plan arrears" means	2191
	funds eligible for collection through the percentage of income	2192

Am. Sub. S. B. No. 2 As Passed by the Senate

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

Am. Sub. S. B. No. 2 As Passed by the Senate

electric utility's most recent rate or accounting application 2223
proceeding addressing such costs; the undepreciated costs of 2224
safety and radiation control equipment on nuclear generating 2225
plants owned or leased by an electric utility; and fuel costs 2226
currently deferred pursuant to the terms of one or more 2227
settlement agreements approved by the commission. 2228
(27) "Retail electric service" means any service involved 2229
in supplying or arranging for the supply of electricity to 2230
ultimate consumers in this state, from the point of generation 2231
to the point of consumption. For the purposes of this chapter, 2232
retail electric service includes one or more of the following 2233
"service components": generation service, aggregation service, 2234
power marketing service, power brokerage service, transmission 2235
service, distribution service, ancillary service, metering 2236
service, and billing and collection service. 2237
(28) "Starting date of competitive retail electric 2238
service" means January 1, 2001. 2239
(29) "Customer-generator" means a user of a net metering 2240
system. 2241
(30) "Net metering" means measuring the difference in an 2242
applicable billing period between the electricity supplied by an 2243
electric service provider and the electricity generated by a 2244
customer-generator that is fed back to the electric service 2245
provider. 2246
(31) "Net metering system" means a facility for the 2247
production of electrical energy that does all of the following: 2248
(a) Uses as its fuel either solar, wind, biomass, landfill 2249
gas, or hydropower, or uses a microturbine or a fuel cell; 2250
(b) Is located on a customer-generator's premises; 2251

Am. Sub. S. B. No. 2 As Passed by the Senate

(c) Operates in parallel with the electric utility's 2252
transmission and distribution facilities; 2253

(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.

2254
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2267

(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 2268
by an agent a third party under a contract, including a lease, 2269
purchase power agreement, or other service contract. 2270
(b) The facility connects directly to the owner's side of 2271
the electric meter. 2272
(c) The facility delivers electricity to the owner's side 2273
of the electric meter without the use of an electric 2274
distribution utility's or electric cooperative's distribution 2275
system or transmission system. 2276
(33) "Rate plan" means the standard service offer in 2277
effect on the effective date of the amendment of this section by 2278
S.B. 221 of the 127th general assembly, July 31, 2008. 2279
(34) "Advanced energy resource" means any of the 2280

Am. Sub. S. B. No. 2 As Passed by the Senate

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;

2281
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2301
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2309

(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

Am. Sub. S. B. No. 2

As Passed by the Senate
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 2310
solid oxide fuel cell; 2311
(f) Advanced solid waste or construction and demolition 2312
debris conversion technology, including, but not limited to, 2313
advanced stoker technology, and advanced fluidized bed 2314
gasification technology, that results in measurable greenhouse 2315
gas emissions reductions as calculated pursuant to the United 2316
States environmental protection agency's waste reduction model 2317
(WARM); 2318
(g) Demand-side management and any energy efficiency 2319
improvement; 2320
(h) Any new, retrofitted, refueled, or repowered 2321
generating facility located in Ohio, including a simple or 2322
combined-cycle natural gas generating facility or a generating 2323
facility that uses biomass, coal, modular nuclear, or any other 2324
fuel as its input; 2325
(i) Any uprated capacity of an existing electric 2326
generating facility if the uprated capacity results from the 2327
deployment of advanced technology. 2328
"Advanced energy resource" does not include a waste energy 2329
recovery system that is, or has been, included in an energy 2330
efficiency program of an electric distribution utility pursuant 2331
to requirements under section 4928.66 of the Revised Code. 2332
(35) "Air contaminant source" has the same meaning as in 2333
section 3704.01 of the Revised Code. 2334
(36) "Cogeneration technology" means technology that 2335
produces electricity and useful thermal output simultaneously. 2336
(37)(a) "Renewable energy resource" means any of the 2337

Am. Sub. S. B. No. 2 As Passed by the Senate

following:

(i） Solar photovoltaic or solar thermal energy;

2339 (ii） Wind energy; 2340

(iii) Power produced by a hydroelectric facility; 2341

o () 2342 which is a facility that operates, or is rated to operate, at an 2343

aggregate capacity of less than six megawatts; 2344

2345

facility placed in service on or after January 1， 1980, that is 2346

located within this state, relies upon the Ohio river, and 2347

operates， or is rated to operate， at an aggregate capacity of 2348

forty or more megawatts; 2349

(vi) Geothermal energy; 2350

(vii） Fuel derived from solid wastes, as defined in 2351

section 3734.01 of the Revised Code, through fractionation, 2352

biological decomposition, or other process that does not 2353

principally involve combustion; 2354

(viii) Biomass energy; 2355

2356

placed into service on or before December 3l， 2015， and for 2357

2358

is from combustion of a waste or byproduct gas from an air 2359

contaminant source in this state, which source has been in 2360

2361

cogeneration technology is a part of a facility located in a 2362

2363

2364

to the most recent federal decennial census; 2365

Am. Sub. S. B. No. 2 As Passed by the Senate

(x) Biologically derived methane gas; 2366
(xi) Heat captured from a generator of electricity, 2367
boiler, or heat exchanger fueled by biologically derived methane 2368
gas; 2369
(xii) Energy derived from nontreated by-products of the 2370
pulping process or wood manufacturing process, including bark, 2371
wood chips, sawdust, and lignin in spent pulping liquors. 2372

"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 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 2389
energy recovery system that is, or was, on or after January 1, 2390
2012, included in an energy efficiency program of an electric 2391
distribution utility pursuant to requirements under section 2392
4928.66 of the Revised Code. 2393

(b) As used in division (A)(37) of this section, 2394

Am. Sub. S. B. No. 2 As Passed by the Senate

assedbythesenate
"hydroelectric facility" means a hydroelectric generating		2395
	facility that is located at a dam on a river， or on any water	2396
	discharged to a river, that is within or bordering this state or	2397
	within or bordering an adjoining state and meets all of the	2398
following standards:		2399
	(i） The facility provides for river flows that are not	2400
	detrimental for fish, wildlife, and water quality， including	2401
	seasonal flow fluctuations as defined by the applicable	2402
	licensing agency for the facility.	2403
	(ii） The facility demonstrates that it complies with the	2404
	water quality standards of this state, which compliance may	2405
	consist of certification under Section 401 of the "Clean Water	2406
Act of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and		2407
	demonstrates that it has not contributed to a finding by this	2408
	state that the river has impaired water quality under Section	2409
	303(d) of the "Clean Water Act of 1977," 114 Stat. 870, 33	2410
U.S.C. 1313.		2411
	(iii） The facility complies with mandatory prescriptions	2412 2413
	regulatory commission license issued for the project, regarding	2414
	fish protection for riverine, anadromous， and catadromous fish.	2415
	(iv） The facility complies with the recommendations of the	2416
	Ohio environmental protection agency and with the terms of its	2417
		2418
	protection, mitigation, or enhancement, to the extent of each	2419
		2420
	(v） The facility complies with provisions of the	2421
	"Endangered Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531	2422
to 1544, as amended.		2423

Am. Sub. S. B. No. 2 As Passed by the Senate

(vi) The facility does not harm cultural resources of the 2424
area. This can be shown through compliance with the terms of its 2425
federal energy regulatory commission license or, if the facility 2426
is not regulated by that commission, through development of a 2427
plan approved by the Ohio historic preservation office, to the 2428
extent it has jurisdiction over the facility. 2429
(vii) The facility complies with the terms of its federal 2430
energy regulatory commission license or exemption that are 2431
related to recreational access, accommodation, and facilities 2432
or, if the facility is not regulated by that commission, the 2433
facility complies with similar requirements as are recommended 2434
by resource agencies, to the extent they have jurisdiction over 2435
the facility; and the facility provides access to water to the 2436
public without fee or charge. 2437
(viii) The facility is not recommended for removal by any 2438
federal agency or agency of any state, to the extent the 2439
particular agency has jurisdiction over the facility. 2440
(c) The standards in divisions (A)(37)(b)(i) to (viii) of 2441
this section do not apply to a small hydroelectric facility 2442
under division (A)(37)(a)(iv) of this section. 2443
(38) "Waste energy recovery system" means any of the 2444
following: 2445
(a) A facility that generates electricity through the 2446
conversion of energy from either of the following: 2447
(i) Exhaust heat from engines or manufacturing, 2448
industrial, commercial, or institutional sites, except for 2449
exhaust heat from a facility whose primary purpose is the 2450
generation of electricity; 2451
(ii) Reduction of pressure in gas pipelines before gas is 2452

Am. Sub. S. B. No. 2 As Passed by the Senate

	2453
of energy to electricity is achieved without using additional	2454
fossil fuels.	2455
(b） A facility at a state institution of higher education	2456
as defined in section 3345.011 of the Revised Code that recovers	2457
	2458
turbines and that simultaneously uses the recovered heat to	2459
produce steam, provided that the facility was placed into	2460
service between January 1, 2002, and December 31， 2004;	2461
(c） A facility that produces steam from recovered waste	2462
heat from a manufacturing process and uses that steam, or	2463
	2464
another manufacturing process or to generate electricity.	2465
1 1 ()	2466
	2467
improve reliability, efficiency, resiliency, or reduce energy	2468
demand or use, including, but not limited to, advanced metering	2469
and automation of system functions.	2470
	2471
coproduction of electricity and useful thermal energy from the	2472
Same fuel source designed to achieve thermal-efficiency levels	2473
of at least sixty per cent, with at least twenty per cent of the	2474
system's total useful energy in the form of thermal energy.	2475
(4l) "Legacy generation resouree" means all generating	2476
facilities owned directly or indirectly by a corporation that	2477
was formed prior to l960 by investor-owned utilities for the original purpose of providing power to the federal government	2478
for use in the nation's defense or in furtherance of national	2479 2480
interests, including the ohio valley electrie corporation.	2481

Am. Sub. S. B. No. 2 As Passed by the Senate

(42) "Prudently incurred costs related to a legacy 2482
generation resource" means costs, including deferred costs, 2483
allocated pursuant to a power agreement approved by the federal 2484
energy regulatory commission that relates to a legacy generation 2485
resource, less any revenues realized from offering the 2486
contractual commitment for the power agreement into the 2487
wholesale markets, provided that where the net revenues exceed 2488
net costs, those excess revenues shall be credited to customers. 2489
Such costs shall exclude any return on investment in common 2490
equity and, in the event of a premature retirement of a legacy 2491
generation resource, shall exclude any recovery of remaining 2492
debt. Such costs shall include any incremental costs resulting 2493
from the bankruptcy of a current or former sponsor under such 2494
power agreement or co-owner of the legacy generation resource if 2495
not otherwise recovered through a utility rate cost recovery 2496
mechanism. 2497
(43)(a) (41)(a) "Green energy" means any energy generated 2498
by using an energy resource that does one or more of the 2499
following: 2500
(i) Releases reduced air pollutants, thereby reducing 2501
cumulative air emissions; 2502
(ii) Is more sustainable and reliable relative to some 2503
fossil fuels. 2504
(b) "Green energy" includes energy generated using the 2505
following: 2506
(i) Natural gas as a resource; 2507
(ii) Nuclear reaction. 2508
(42) "Linear generator" means an integrated system 2509
consisting of oscillators, cylinders, electricity conversion 2510

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

2511
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2525
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2531
2532
2533
2534
2535
2536
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2538
2539

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

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

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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

Am. Sub. S. B. No. 2 As Passed by the Senate

	visions with respect to a noncompetitive retail electric	2571
	vice shall be the authority provided under those chapters and	2572
	s chapter, to the extent the authority is not preempted by	2573
	eral law. Notwithstanding Chapters 4905. and 4909. of the	2574
	ised Code, commission authority under this chapter shall	2575
	lude the authority to provide for the recovery， through a	2576
	oncilable rider on an electric distribution utility's	2577
	tribution rates, of all transmission and transmission-related	2578
		2579
	rged to the utility by the federal energy regulatory	2580
mission or a regional transmission organization, independent		2581
	nsmission operator, or similar organization approved by the	2582
		2583
	(2)_The commission shall exercise its jurisdiction with	2584
	pect to the delivery of electricity by an electric utility in	2585
		2586
		2587
		2588
sists of a noncompetitive retail electric service is		2589
egulated.		2590
On and after that starting date, a-(3) A noncompetitive		2591
	ail electric service supplied by an electric cooperative	2592
	ll not be subject to supervision and regulation by the	2593
mission under Chapters 4901. to 4909.， 4933., 4935.， and		2594
	3. of the Revised Code, except sections 4933.81 to 4933.90	2595
	4935.03 of the Revised Code. The commission's authority to	2596
		2597
	ail electric service of an electric cooperative shall be such	2598
	hority as is provided for their enforcement under Chapters	2599
3. and 4935. of the Revised Code.		2600

Am. Sub. S. B. No. 2 As Passed by the Senate

(B) Nothing in this chapter affects the authority of the 2601
commission under Title XLIX of the Revised Code to regulate an 2602
electric light company in this state or an electric service 2603
supplied in this state prior to the starting date of competitive 2604
retail electric service. 2605

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, 2613
electric cooperative, or governmental aggregator shall provide a 2614
competitive retail electric service to a consumer in this state 2615
on and after the starting date of competitive retail electric 2616
service without first being certified by the public utilities 2617
commission regarding its managerial, technical, and financial 2618
capability to provide that service and providing a financial 2619
guarantee sufficient to protect customers and electric 2620
distribution utilities from default. Certification shall be 2621
granted pursuant to procedures and standards the commission 2622
shall prescribe in accordance with division (C) of this section, 2623
except that certification or certification renewal shall be 2624
deemed approved thirty days after the filing of an application 2625
with the commission unless the commission suspends that approval 2626
for good cause shown. In the case of such a suspension, the 2627
commission shall act to approve or deny certification or 2628
certification renewal to the applicant not later than ninety 2629
days after the date of the suspension. 2630

Am. Sub. S. B. No. 2 As Passed by the Senate

(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 2653
rescind the certification of any electric utility, electric 2654
services company, electric cooperative, or governmental 2655
aggregator issued under this section if the commission 2656
determines, after reasonable notice and opportunity for hearing, 2657
that the utility, company, cooperative, or aggregator has failed 2658
to comply with any applicable certification standards or has 2659
engaged in anticompetitive or unfair, deceptive, or 2660

Am. Sub. S. B. No. 2 As Passed by the Senate

unconscionable acts or practices in this state. 2661
(E) No electric distribution utility on and after the 2662
starting date of competitive retail electric service shall 2663
knowingly distribute electricity, to a retail consumer in this 2664
state, for any supplier of electricity that has not been 2665
certified by the commission pursuant to this section. 2666
(F) Notwithstanding any provision of section 121.95 of the 2667
Revised Code to the contrary, a regulatory restriction contained 2668
in a rule adopted under section 4928.08 of the Revised Code is 2669
not subject to sections 121.95 to 121.953 of the Revised Code. 2670
Sec. 4928.101. (A) As used in this section and section 2671
4928.102 of the Revised Code: 2672
(1) "Small commercial customer" means any customer that 2673
receives electric service pursuant to a nonresidential tariff if 2674
the customer's demand for electricity does not exceed twenty- 2675
five kilowatts within the last twelve months. 2676
(2) "Small commercial customer" excludes any customer that 2677
does one or both of the following: 2678
(a) Manages multiple electric meters and, within the last 2679
twelve months, the electricity demand for at least one of the 2680
meters is twenty-five kilowatts or more; 2681
(b) Has, at the customer's discretion, aggregated the 2682
demand for the customer-managed meters. 2683
(B) The consumer protections described in section 4928.10 2684
of the Revised Code and the rules adopted pursuant to that 2685
section apply to small commercial customers and to all other 2686
customers as set forth in the rules. 2687
Sec. 4928.102. (A) If a competitive retail electric 2688

Am. Sub. S. B. No. 2 As Passed by the Senate

service supplier offers a residential or small commercial 2689
customer a contract for a fixed introductory rate that converts 2690
to a variable rate upon the expiration of the fixed rate, the 2691
supplier shall send two notices to each residential and small 2692
commercial customer that enters into such a contract. Each 2693
notice shall provide all of the following information to the 2694
customer: 2695
(1) The fixed rate that is expiring under the contract; 2696
(2) The expiration date of the contract's fixed rate; 2697
(3) The rate to be charged upon the contract's conversion 2698
to a variable rate; 2699
(4) The public utilities commission web site that, as a 2700
comparison tool, lists rates offered by competitive retail 2701
electric service suppliers; 2702
(5) A statement explaining that appearing on each 2703
customer's bill is a price-to-compare notice that lists the 2704
utility's standard service offer price. 2705
(B) The notices shall be sent by standard United States 2706
mail as follows: 2707
(1) The supplier shall send the first notice not earlier 2708
than ninety days, and not later than sixty days, prior to the 2709
expiration of the fixed rate. 2710
(2) The supplier shall send the second notice not earlier 2711
than forty-five days, and not later than thirty days, prior to 2712
the expiration of the fixed rate. 2713
(C) A competitive retail electric service supplier shall 2714
provide an annual notice, by standard United States mail, to 2715
each residential and small commercial customer that has entered 2716

Am. Sub. S. B. No. 2 As Passed by the Senate

into a contract with the supplier that has converted to a 2717
variable rate upon the expiration of the contract's fixed 2718
introductory rate. The notice shall inform the customer that the 2719
customer is currently subject to a variable rate and that other 2720
fixed rate contracts are available. 2721
(D) Not later than one hundred fifty days after the 2722
effective date of this section, the commission shall adopt rules 2723
in order to implement divisions (A) to (C) of this section. The 2724
rules, at a minimum, shall include the following requirements 2725
regarding the notices required under divisions (A) to (C) of 2726
this section: 2727
(1) To use clear and unambiguous language in order to 2728
enable the customer to make an informed decision; 2729
(2) To design the notices in a way to ensure that they 2730
cannot be confused with marketing materials. 2731
(E) Notwithstanding any provision of section 121.95 of the 2732
Revised Code to the contrary, a regulatory restriction contained 2733
in a rule adopted under section 4928.102 of the Revised Code is 2734
not subject to sections 121.95 to 121.953 of the Revised Code. 2735
Sec. 4928.103. (A) As used in this section, "customer 2736
account information" means a unique electric distribution 2737
utility number or other customer identification number used by 2738
the utility to identify a customer and the customer's account 2739
record. 2740
(B) The public utilities commission shall adopt rules to 2741
ensure that an electric distribution utility processes a 2742
customer's change in competitive retail electric supplier by 2743
using customer account information. A customer who consents to a 2744
change of supplier shall not be required to provide customer 2745

Am. Sub. S. B. No. 2 As Passed by the Senate

account information to the supplier if the customer provides a	2746
valid form of government-issued identification issued to the	2747
customer or a sufficient alternative form of identification that	2748
allows the supplier to establish the customer's identity	2749
accurately.	2750
(C) Notwithstanding any provision of section 121.95 of the	2751
	2752
in a rule adopted under this section is not subject to sections	2753
121.95 to 121.953 of the Revised Code.	2754
Sec. 4928.105. (A) Upon receiving a certified request from	2755
a competitive retail electric service supplier under a service	2756
	2757
electric distribution utility's standard service offer,	2758
voluntarily entered into by a mercantile customer, a utility	2759
shall complete the request within three business days.	2760
(B) The electric distribution utility shall not be held	2761
liable for any disputes arising from the expedited return to the	2762
utility's standard service offer，provided the utility acts in	2763
	2764
(C) The commission shall establish rules governing the	2765
process for an expedited return to the utility's standard	2766
service offer pursuant to this section， including the content of	2767
the certified request and any notice to the affected customer,	2768
and permitting electric distribution utilities to recover the	2769
administrative costs of processing requests under this section	2770
	2771
service suppliers.	2772
Sec. 4928.107. (A) As used in this section, "small	2773
	2774

Am. Sub. S. B. No. 2 As Passed by the Senate

of the Revised Code. 2775
(B) An electric distribution utility may create a 2776
voluntary demand response program to lower demand at peak times 2777
for residential customers and small commercial customers as 2778
described by this section. 2779
(C)(1) Each demand response program under this section 2780
shall be evaluated by the public utilities commission to 2781
determine if the program is cost-effective for customers. 2782
(2) No electric distribution utility shall offer a demand 2783
reduction program under this section unless the program is 2784
approved by the commission. 2785
(D) An electric distribution utility may enter into an 2786
agreement with a residential customer or small commercial 2787
customer for the customer to participate in the utility's demand 2788
response program. 2789
(E) For customers that participate in the program, the 2790
utility may take actions to reduce the customer's load at peak 2791
times, such as reducing the temperature on the customer's air 2792
conditioner. 2793
(F) A customer that participates in the program may 2794
override the utility's action to reduce the customer's load. 2795
(G) A customer that agrees to participate in the utility's 2796
demand response program shall be paid by the utility an annual 2797
fee of forty dollars, or other amount determined by the 2798
commission under division (H) of this section, if the customer 2799
does not override the utility's action to reduce the customer's 2800
load more than fifty per cent of the requested time. 2801
(H) The commission may raise or lower the fee amount under 2802

Am. Sub. S. B. No. 2

division (G) of this section at the time of the utility's rate	2803
case or true up based on the current demand in the utility's	2804
certified territory.	2805
Sec. 4928.14. The (A) Except as provided in division (C)	2806
of this section, the_failure of a supplier to provide retail	2807
electric generation service to customers within the certified	2808
territory of an electric distribution utility shall result in	2809
the supplier's customers, after reasonable notice, defaulting to	2810
the utility's standard service offer under sections 4928.14l_	2811
and 4928.142，and 4928.143 of the Revised Code until the	2812
customer chooses an alternative supplier. A	2813
(B) A_supplier is deemed under this section to have failed	2814
to provide sueh-retail electric generation service if the	2815
commission finds, after reasonable notice and opportunity for	2816
hearing, that any of the following conditions are met:	2817
(A)(l)_The supplier has defaulted on its contracts with	2818
customers, is in receivership, or has filed for bankruptcy.	2819
uod o ou t ()a)	2820
service.	2821
(C)(3)_The supplier is unable to provide delivery to	2822
transmission or distribution facilities for such period of time	2823
as may be reasonably specified by commission rule adopted under	2824
division (A) of section 4928.06 of the Revised Code.	2825
(D)(4)_The supplier's certification has been suspended,	2826
conditionally rescinded, or rescinded under division (D） of	2827
section 4928.08 of the Revised Code.	2828
(C) If an electric distribution utility has an electric	2829
security plan that was approved under section 4928.143 of the	2830
Revised Code as that section existed prior to the amendments to	2831

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

2832
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2860
2861
2862

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

Am. Sub. S. B. No. 2 As Passed by the Senate

section 4928.143 of the Revised Code as that section existed	2863
prior to the amendments to this section by this act_shall	2864
continue for the purpose of the utility's compliance with this	2865
division (A)(l） of this section_until a standard service offer	2866
is first authorized to be effective_under section 4928.142 or	2867
4928.143-of the Revised Code,and,as applicable, pursuant to	2868
division (D) of section 4928.143 of the Revised Code, any rate :	2869
Each security plan that extends approved before the effective	2870
date of the amendments to this section by this act shall extend	2871
beyond December 31, 2008, shall continue to be in effect for the	2872
subject electric distribution utilityfor the duration of the	2873
plan's termthrough the final standard service offer auction	2874
delivery period approved by the public utilities commission	2875
under the plan as of the effective date of the amendments to	2876
this section by this act and thereafter shall terminate.	2877
(3)_A standard service offer under section 4928.142 or	2878
4928.143-of the Revised Code shall exclude any previously	2879
authorized allowances for transition costs, with such exclusion	2880
	2881
scheduled to end under the utility's rate electric security	2882
plan.	2883
(B） The commission shall set the time for hearing of a	2884
filing under section 4928.142 or 4928.143-of the Revised Code,	2885
send written notice of the hearing to the electric distribution	2886
utility， and publish notice in a newspaper of general	2887
	2888
The commission shall adopt rules regarding filings under those	2889
seetions_ the section.	2890
Sec. 4928.142. (A） For the purpose of complying with	2891

Am. Sub. S. B. No. 2 As Passed by the Senate

2893

requirement—requirements_of division (A） of section 4928.14l 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

2899 competitive bidding process that provides for all of the

2900 following: 2901

(a) Open, fair, and transparent competitive solicitation; 2902

(b） Clear product definition; 2903

(c） Standardized bid evaluation criteria; 2904

(d) Oversight by an independent third party that shall 2905

design the solicitation, administer the bidding, and ensure that 2906 the criteria specified in-division_divisions (A)(l)(a) to (c） of 2907

this section are met; 2908

(e） Evaluation of the submitted bids prior to the 2909

selection of the least-cost bid winner or winners. 2910

No generation supplier shall be prohibited from 2911

2912

(2） The public utilities commission shall modify rules, or 2913

2914

Competitive bidding process and the qualifications of bidders, 2915

2916

process and shall be consistent with the requirements of 2917

division (A)(l） of this section. 2918

(B） Prior to initiating a competitive bidding process for 2919

a market-rate offer under division (A) of this section, the 2920

Am. Sub. S. B. No. 2 As Passed by the Senate

	commission. An electric distribution utility may file its	electric distribution utility shall file an application with the	2921 2922
	application with the commission prior to the effective date of		2923
	the commission rules required under division (A)(2） of this		2924
			2925
	section, and, as the commission determines necessary, the		2926
their taking effect.	utility shall immediately conform its filing to the rules upon		2927
	An application under this division shall detail the		2928
	electric distribution utility's proposed compliance with the		2929
	requirements of division (A)(l）of this section and with		2930
	commission rules under division (A)(2） of this section and		2931 2932
	demonstrate that all of the following requirements are met:
			2933
		1	2934
	organization that has been approved by the federal energy		2935
	regulatory commission; or there otherwise is comparable and		2936
	nondiscriminatory access to the electric transmission grid.		2937
	u uotzu1o uossu uo s u ()		2938
	market-monitor function and the ability to take actions to		2939
		identify and mitigate market power or the electric distribution	2940
	utility's market conduct; or a similar market monitoring		2941
			2942
	monitor market conditions and mitigate conduct associated with		2943
the exercise of market power.			2944
		(3） A published source of information is available	2945
		publicly or through subscription that identifies pricing	2946
			2947
		products that are contracts for delivery beginning at least two	2948

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

2951
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2981

(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.

Am. Sub. S. B. No. 2 As Passed by the Senate

(2) There were four or more bidders. 2982
(3) At least twenty-five per cent of the load is bid upon 2983
by one or more persons other than the electric distribution 2984
utility. 2985

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.

2986
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2989
2990
2991
2992
2993
2994
2995
(D) The first application filed under this section by an 2996
electric distribution utility that, as of July 31, 2008, 2997
directly owns, in whole or in part, operating electric 2998
generating facilities that had been used and useful in this 2999
state shall require that a portion of that the utility's 3000
standard service offer load for the first five years of the 3001
market rate offer be competitively bid under division (A) of 3002
this section as follows: ten per cent of the load in year one, 3003
not more than twenty per cent in year two, thirty per cent in 3004
year three, forty per cent in year four, and fifty per cent in 3005
year five. Consistent with those percentages, the commission 3006
shall determine the actual percentages for each year of years 3007
one through five. The standard service offer price for retail 3008
electric generation service under this first application shall 3009
be a proportionate blend of the bid price and the generation 3010
service price for the remaining standard service offer load, 3011

Am. Sub. S. B. No. 2 As Passed by the Senate

which latter price shall be equal to the electric distribution 3012
utility's most recent standard service offer price, adjusted 3013
upward or downward as the commission determines reasonable, 3014
relative to the jurisdictional portion of any known and 3015
measurable changes from the level of any one or more of the 3016
following costs as reflected in that most recent standard 3017
service offer price: 3018
(1) The electric distribution utility's prudently incurred 3019
cost of fuel used to produce electricity; 3020
(2) Its prudently incurred purchased power costs; 3021
(3) Its prudently incurred costs of satisfying the supply 3022
and demand portfolio requirements of this state, including, but 3023
not limited to, renewable energy resource and energy efficiency 3024
requirements; 3025
(4) Its costs prudently incurred to comply with 3026
environmental laws and regulations, with consideration of the 3027
derating of any facility associated with those costs. 3028
In making any adjustment to the most recent standard 3029
service offer price on the basis of costs described in division 3030
(D) of this section, the commission shall include the benefits 3031
that may become available to the electric distribution utility 3032
as a result of or in connection with the costs included in the 3033
adjustment, including, but not limited to, the utility's receipt 3034
of emissions credits or its receipt of tax benefits or of other 3035
benefits, and, accordingly, the commission may impose such 3036
conditions on the adjustment to ensure that any such benefits 3037
are properly aligned with the associated cost responsibility. 3038
The commission shall also determine how such adjustments will 3039
affect the electric distribution utility's return on common 3040

Am. Sub. S. B. No. 2 As Passed by the Senate

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 3064
division (D) of this section and notwithstanding any other 3065
requirement of this section, the commission may alter 3066
prospectively the proportions specified in that division to 3067
mitigate any effect of an abrupt or significant change in the 3068
electric distribution utility's standard service offer price 3069
that would otherwise result in general or with respect to any 3070
rate group or rate schedule but for such alteration. Any such 3071

Am. Sub. S. B. No. 2 As Passed by the Senate

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 3088
may authorize any just and reasonable phase-in of any electric 3089
distribution utility rate or price established under sections 3090
4928.141 to 4928.143 and 4928.142 of the Revised Code, and 3091
inclusive of carrying charges, as the commission considers 3092
necessary to ensure rate or price stability for consumers. If 3093
the commission's order includes such a phase-in, the order also 3094
shall provide for the creation of regulatory assets pursuant to 3095
generally accepted accounting principles, by authorizing the 3096
deferral of incurred costs equal to the amount not collected, 3097
plus carrying charges on that amount. Further, the order shall 3098
authorize the collection of those deferrals through a 3099
nonbypassable surcharge on any such rate or price so established 3100
for the electric distribution utility by the commission. 3101

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

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3104
3105
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3121
3122
3123
3124
3125
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3127
3128
3129
3130
3131

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:

Am. Sub. S. B. No. 2 As Passed by the Senate

(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.

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3139
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3141
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3143
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3149
3150
3151
3152
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3155
3156
3157
3158
3159
3160
3161

(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

Am. Sub. S. B. No. 2 As Passed by the Senate

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.

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(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

Am. Sub. S. B. No. 2 As Passed by the Senate

commission authorizes to apply for an interim period prescribed 3193
in the order, upon a finding that such alternative plan will 3194
provide for ongoing compliance with the policy specified in 3195
section 4928.02 of the Revised Code. 3196

(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.

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3204

(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 3205
corporation may adopt an ordinance, or the board of township 3206
trustees of a township or the board of county commissioners of a 3207
county may adopt a resolution, under which, on or after the 3208
starting date of competitive retail electric service, it may 3209
aggregate in accordance with this section the retail electrical 3210
loads located, respectively, within the municipal corporation, 3211
township, or unincorporated area of the county and, for that 3212
purpose, may enter into service agreements to facilitate for 3213
those loads the sale and purchase of electricity. The 3214
legislative authority or board also may exercise such authority 3215
jointly with any other such legislative authority or board. For 3216
customers that are not mercantile customers, an ordinance or 3217
resolution under this division shall specify whether the 3218
aggregation will occur only with the prior, affirmative consent 3219
of each person owning, occupying, controlling, or using an 3220
electric load center proposed to be aggregated or will occur 3221
automatically for all such persons pursuant to the opt-out 3222

Am. Sub. S. B. No. 2 As Passed by the Senate

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 3251
divisions (A) and (B) of this section, the legislative authority 3252
or board shall develop a plan of operation and governance for 3253

Am. Sub. S. B. No. 2 As Passed by the Senate

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

Am. Sub. S. B. No. 2 As Passed by the Senate

(A) to (D) of this section, resolutions may be proposed by 3285
initiative or referendum petitions in accordance with sections 3286
731.28 to 731.41 of the Revised Code. 3287
(2) With respect to a governmental aggregation for a 3288
township or the unincorporated area of a county, which 3289
aggregation is authorized pursuant to divisions (A) to (D) of 3290
this section, resolutions may be proposed by initiative or 3291
referendum petitions in accordance with sections 731.28 to 3292
731.40 of the Revised Code, except that: 3293
(a) The petitions shall be filed, respectively, with the 3294
township fiscal officer or the board of county commissioners, 3295
who shall perform those duties imposed under those sections upon 3296
the city auditor or village clerk. 3297
(b) The petitions shall contain the signatures of not less 3298
than ten per cent of the total number of electors in, 3299
respectively, the township or the unincorporated area of the 3300
county who voted for the office of governor at the preceding 3301
general election for that office in that area. 3302
(F) A governmental aggregator under division (A) of this 3303
section is not a public utility engaging in the wholesale 3304
purchase and resale of electricity, and provision of the 3305
aggregated service is not a wholesale utility transaction. A 3306
governmental aggregator shall be subject to supervision and 3307
regulation by the public utilities commission only to the extent 3308
of any competitive retail electric service it provides and 3309
commission authority under this chapter. 3310
(G) This section does not apply in the case of a municipal 3311
corporation that supplies such aggregated service to electric 3312

load centers to which its municipal electric utility also 3313

Am. Sub. S. B. No. 2 As Passed by the Senate

supplies a noncompetitive retail electric service through 3314
transmission or distribution facilities the utility singly or 3315
jointly owns or operates. 3316
(H) A governmental aggregator shall not include in its 3317
aggregation the accounts of any of the following: 3318
(1) A customer that has opted out of the aggregation; 3319
(2) A customer in contract with a certified electric 3320
services company; 3321
(3) A customer that has a special contract with an 3322
electric distribution utility; 3323
(4) A customer that is not located within the governmental 3324
aggregator's governmental boundaries; 3325
(5) Subject to division (C) of section 4928.21 of the 3326
Revised Code, a customer who appears on the "do not aggregate" 3327
list maintained under that section. 3328
(I) Customers that are part of a governmental aggregation 3329
under this section shall be responsible only for such portion of 3330
a surcharge under section 4928.144 of the Revised Code that is 3331
proportionate to the benefits, as determined by the commission, 3332
that electric load centers within the jurisdiction of the 3333
governmental aggregation as a group receive. The proportionate 3334
surcharge so established shall apply to each customer of the 3335
governmental aggregation while the customer is part of that 3336
aggregation. If a customer ceases being such a customer, the 3337
otherwise applicable surcharge shall apply. Nothing in this 3338
section shall result in less than full recovery by an electric 3339
distribution utility of any surcharge authorized under section 3340
4928.144 of the Revised Code. Nothing in this section shall 3341
result in less than the full and timely imposition, charging, 3342

Am. Sub. S. B. No. 2 As Passed by the Senate

collection, and adjustment by an electric distribution utility, 3343
its assignee, or any collection agent, of the phase-in-recovery 3344
charges authorized pursuant to a final financing order issued 3345
pursuant to sections 4928.23 to 4928.2318 of the Revised Code. 3346
(J) On behalf of the customers that are part of a 3347
governmental aggregation under this section and by filing 3348
written notice with the public utilities commission, the 3349
legislative authority that formed or is forming that 3350
governmental aggregation may elect not to receive standby 3351
service within the meaning of division (B)(2)(d) of section 3352
4928.143 of the Revised Code from an electric distribution 3353
utility in whose certified territory the governmental 3354
aggregation is located and that operates under an approved 3355
electric security plan under that section. Upon the filing of 3356
that notice, the electric distribution utility shall not charge 3357
any such customer to whom competitive retail electric generation 3358
service is provided by another supplier under the governmental 3359
aggregation for the standby service. Any such consumer that 3360
returns to the utility for competitive retail electric service 3361
shall pay the market price of power incurred by the utility to 3362
serve that consumer plus any amount attributable to the 3363
utility's cost of compliance with the renewable energy resource 3364
provisions of section 4928.64 of the Revised Code to serve the 3365
consumer. Such market price shall include, but not be limited 3366
to, capacity and energy charges; all charges associated with the 3367
provision of that power supply through the regional transmission 3368
organization, including, but not limited to, transmission, 3369
ancillary services, congestion, and settlement and 3370
administrative charges; and all other costs incurred by the 3371
utility that are associated with the procurement, provision, and 3372
administration of that power supply, as such costs may be 3373

Am. Sub. S. B. No. 2 As Passed by the Senate

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, as that section existed prior to its repeal by this act, or a market rate offer under section 4928.142 of the Revised Code, as amended by this act, the commission shall consider the effect on large-scale governmental aggregation of any nonbypassable generation charges, however collected, under that plan, or that would be established under that planoffer, except any nonbypassable generation charges that relate to any cost incurred by the electric distribution utility, the deferral of which has been authorized by the commission prior to the effective date of the amendment of this section by S.B. 221 of the 127th general assembly, July 31, 2008.

Sec. 4928.23. As used in sections 4928.23 to 4928.2318 of the Revised Code:

Am. Sub. S. B. No. 2 As Passed by the Senate

(A) "Ancillary agreement" means any bond insurance policy, 3404
etter of credit, reserve account, surety bond, swap 3405
rrangement, hedging arrangement, liquidity or credit support 3406
arrangement, or other similar agreement or arrangement entered 3407
into in connection with the issuance of phase-in-recovery bonds 3408
that is designed to promote the credit quality and marketability 3409
f the bonds or to mitigate the risk of an increase in interest 3410
rates. 3411
(B) "Assignee" means any person or entity to which an 3412
interest in phase-in-recovery property is sold, assigned, 3413
transferred, or conveyed, other than as security, and any 3414
uccessor to or subsequent assignee of such a person or entity. 3415
(C) "Bond" includes debentures, notes, certificates of 3416
participation, certificates of beneficial interest, certificates 3417
f ownership or other evidences of indebtedness or ownership 3418
that are issued by an electric distribution utility or an 3419
assignee under a final financing order, the proceeds of which 3420
are used directly or indirectly to recover, finance, or 3421
refinance phase-in costs and financing costs, and that are 3422
ecured by or payable from revenues from phase-in-recovery 3423
charges. 3424
(D) "Bondholder" means any holder or owner of a phase-in- 3425
recovery bond. 3426
(E) "Financing costs" means any of the following: 3427
(1) Principal, interest, and redemption premiums that are 3428
ayable on phase-in-recovery bonds; 3429
(2) Any payment required under an ancillary agreement; 3430
(3) Any amount required to fund or replenish a reserve 3431
account or another account established under any indenture, 3432

Am. Sub. S. B. No. 2

AsPassedbytheSenate
	ancillary agreement, or other financing document relating to	3433
phase-in-recovery bonds;		3434
	(4） Any costs of retiring or refunding any existing debt	3435
	and equity securities of an electric distribution utility in	3436
	connection with either the issuance of, or the use of proceeds	3437
from, phase-in-recovery bonds;		3438
	(5） Any costs incurred by an electric distribution utility	3439
	to obtain modifications of or amendments to any indenture,	3440
	financing agreement, security agreement, or similar agreement or	3441
	instrument relating to any existing secured or unsecured	3442
	obligation of the electric distribution utility in connection	3443
	with the issuance of phase-in-recovery bonds;	3444
	oo a iso (	3445
	to obtain any consent, release, waiver, or approval from any	3446
	holder of an obligation described in division (E)(5) of this	3447
	section that are necessary to be incurred for the electric	3448
		3449
recovery bonds;		3450
	(7） Any taxes, franchise fees, or license fees imposed on	3451
phase-in-recovery revenues;		3452
	(8) Any costs related to issuing or servicing phase-in-	3453
	recovery bonds or related to obtaining a financing order,	3454
	including servicing fees and expenses, trustee fees and	3455
	expenses, legal, accounting, or other professional fees and	3456
	expenses, administrative fees, placement fees, underwriting	3457
	fees, capitalized interest and equity, and rating-agency fees;	3458
	(9） Any other similar costs that the public utilities	3459
commission finds appropriate.		3460
		3461

Am. Sub. S. B. No. 2 As Passed by the Senate

	utilities commission under section 4928.232 of the Revised Code	3462
	that authorizes an electric distribution utility or an assignee	3463
	to issue phase-in-recovery bonds and recover phase-in-recovery	3464
charges.		3465
	(G) "Final financing order" means a financing order that	3466
		3467
	4928.233 of the Revised Code.	3468
	(H） "Financing party" means either of the following:	3469
	(l） Any trustee, collateral agent, or other person acting	3470
	for the benefit of any bondholder;	3471
	(2) Any party to an ancillary agreement, the rights and	3472
	obligations of which relate to or depend upon the existence of	3473
	phase-in-recovery property, the enforcement and priority of a	3474
	security interest in phase-in-recovery property, the timely	3475
	collection and payment of phase-in-recovery revenues, or a	3476
	combination of these factors.	3477
	(I） "Financing statement" has the same meaning as in	3478
	section 1309.102 of the Revised Code.	3479
	(J） "Phase-in costs" means costs, inclusive of carrying	3480
	charges incurred before, on, or after-the effective date of this	3481
seetion_March 22, 2012, authorized by the commission before, on,		3482
	or after the effective date of this section_March 22, 2012, to	3483
be securitized or deferred as regulatory assets in proceedings		3484
under section 4909.18-of the Revised Code, sections-4928.141-to		3485
4928.143, 4928.142, or 4928.144 of the Revised Code, 0r section		3486
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		3487
prior to the effective date of the amendments to this section by		3488
		3489
	this act_pursuant to a final order for which appeals have been	3490

Am. Sub. S. B. No. 2 As Passed by the Senate

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;

3491
3492
3493
3494
3495
3496
3497
3498
3499
3500
3501
3502
3503
3504
3505
3506
3507
3508
3509
3510
3511
3512
3513
3514
3515
3516
3517
3518
3519
3520

(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

Am. Sub. S. B. No. 2 As Passed by the Senate