SB 103

(136th General Assembly)
  (Substitute Senate Bill Number 103)
  AN ACT
       To amend sections 4909.042, 4909.05, 4909.06, 4909.07, 4909.08, 4909.15,
  4909.156, 4909.159, 4909.173, 4909.174, 4909.18, 4909.421, 4928.01, and
  4928.05 and to enact sections 4909.157, 4909.182, 4929.052, 4929.053,
  4929.054, 4929.055, 4929.056, 4929.057, and 4929.058 of the Revised Code to
  allow for alternative rate plans for natural gas companies to serve large load
  customers and to make changes to the process of valuating property for certain
  public utilities.
Be it enacted by the General Assembly of the State of Ohio:
  SECTION 1. That sections 4909.042, 4909.05, 4909.06, 4909.07, 4909.08, 4909.15, 4909.156,
4909.159, 4909.173, 4909.174, 4909.18, 4909.421, 4928.01, and 4928.05 be amended and sections
4909.157, 4909.182, 4929.052, 4929.053, 4929.054, 4929.055, 4929.056, 4929.057, and 4929.058
of the Revised Code be enacted to read as follows:
  Sec. 4909.042. (A) With respect to an electric light company , natural gas, water-works, or
sewage disposal system company that chooses to file a forecasted test period under section 4909.18
of the Revised Code, the public utilities commission shall prescribe the form and details of the
valuation report of the property of the utilitycompany. Such report shall include all the kinds and
classes of property, with the value of each, owned, held, or projected to be owned or held during the
test period, by the utility company for the service and convenience of the public.
  (B) Such report shall contain the following facts in detail:
  (1) The original cost of each parcel of land owned in fee and projected to be owned in fee
and in use during the test period, determined by the commission; and also a statement of the
conditions of acquisition, whether by direct purchase, by donation, by exercise of the power of
eminent domain, or otherwise;
  (2) The actual acquisition cost, not including periodic rental fees, of rights-of-way, trailways,
or other land rights projected to be held during the test period, by virtue of easements, leases, or
other forms of grants of rights as to usage;
  (3) The original cost of all other kinds and classes of property projected to be used and
useful during the test period, in the rendition of service to the public. Such original costs of property,
other than land owned in fee, shall be the cost, as determined to be reasonable by the commission, to
the person that first dedicated or dedicates the property to the public use and shall be set forth in
property accounts and subaccounts as prescribed by the commission;
  (4) The cost of property constituting all or part of a project projected to be leased to or used
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by the utility company during the test period, under Chapter 165., 3706., 6121., or 6123. of the
Revised Code and not included under division (B)(3) of this section exclusive of any interest directly
or indirectly paid by the utility company with respect thereto whether or not capitalized;
  (5) In the discretion of the commission, the cost to a utilitycompany, in an amount
determined to be reasonable by the commission, of property constituting all or part of a project
projected to be leased to the utility company during the test period, under a lease purchase
agreement or a leaseback and not included under division (B)(3) of this section exclusive of any
interest directly or indirectly paid by the utility company with respect thereto whether or not
capitalized;
  (6) The proper and adequate reserve for depreciation, as determined to be reasonable by the
commission;
  (7) Any sums of money or property that the utility company is projected to receive during
the test period, as total or partial defrayal of the cost of its property;
  (8) The valuation of the property of the utilitycompany, which shall be the sum of the
amounts contained in the report pursuant to divisions (B)(1) to (5) of this section, less the sum of the
amounts contained in the report pursuant to divisions (B)(6) and (7) of this section;
  (9) The cost of the replacement of water service lines incurred by a water-works company
under section 4909.173 of the Revised Code and the water service line replacement reimbursement
amounts provided to customers under section 4909.174 of the Revised Code.
  (C) The report shall show separately the property projected to be used and useful to or held
by the utility company during the test period, and such other items as the commission considers
proper. The commission may require an additional report showing the extent to which the property is
projected to be used and useful during the test period. Such reports shall be filed in the office of the
commission for the information of the governor and the general assembly.
  (D) Any financial information required to be submitted by an electric light company , natural
gas, water-works, or sewage disposal system company under this section shall be provided from the
company's full books. The commission shall ensure appropriate protections against the disclosure of
the company's trade secrets or proprietary information.
  Sec. 4909.05. As used in this section:
  (A) With respect to every public utility, other than an electric light company that chooses to
file a forecasted test period under section 4909.18 of the Revised Code, the public utilities
commission shall prescribe the form and details of the valuation report of the property of each public
utility or railroad in the state. Such report shall include all the kinds and classes of property, with the
value of each, owned, held, or, with respect to a natural gas, water-works, or sewage disposal system
company, projected to be owned or held as of the date certain, by each public utility or railroad used
and useful, or, with respect to a natural gas, water-works, or sewage disposal system company,
projected to be used and useful as of the date certain, for the service and convenience of the public.
  (B) Such report shall contain the following facts in detail:
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  (1) The original cost of each parcel of land owned in fee and in use, or, with respect to a
natural gas, water-works, or sewage disposal system company, projected to be owned in fee and in
use as of the date certain, determined by the commission; and also a statement of the conditions of
acquisition, whether by direct purchase, by donation, by exercise of the power of eminent domain, or
otherwise;
  (2) The actual acquisition cost, not including periodic rental fees, of rights-of-way, trailways,
or other land rights held, or, with respect to a natural gas, water-works, or sewage disposal system
company, projected to be held as of the date certain, by virtue of easements, leases, or other forms of
grants of rights as to usage;
  (3) The original cost of all other kinds and classes of property used and useful, or, with
respect to a natural gas, water-works, or sewage disposal system company, projected to be used and
useful as of the date certain, in the rendition of service to the public. Subject to section 4909.052 of
the Revised Code, such original costs of property, other than land owned in fee, shall be the cost, as
determined to be reasonable by the commission, to the person that first dedicated or dedicates the
property to the public use and shall be set forth in property accounts and subaccounts as prescribed
by the commission. To the extent that the costs of property comprising a coal research and
development facility, as defined in section 1555.01 of the Revised Code, or a coal development
project, as defined in section 1551.30 of the Revised Code, have been allowed for recovery as Ohio
coal research and development costs under section 4905.304 of the Revised Code, none of those
costs shall be included as a cost of property under this division.
  (4) The cost of property constituting all or part of a project leased to or used by the utility,
or, with respect to a natural gas, water-works, or sewage disposal system company, projected to be
leased to or used by the utility as of the date certain, under Chapter 165., 3706., 6121., or 6123. of
the Revised Code and not included under division (B)(3) of this section exclusive of any interest
directly or indirectly paid by the utility with respect thereto whether or not capitalized;
  (5) In the discretion of the commission, the cost to a utility, in an amount determined to be
reasonable by the commission, of property constituting all or part of a project leased to the utility, or,
with respect to a natural gas, water-works, or sewage disposal system company, projected to be
leased to the utility as of the date certain, under a lease purchase agreement or a leaseback and not
included under division (B)(3) of this section exclusive of any interest directly or indirectly paid by
the utility with respect thereto whether or not capitalized;
  (6) The cost of the replacement of water service lines incurred by a water-works company
under section 4909.173 of the Revised Code and the water service line replacement reimbursement
amounts provided to customers under section 4909.174 of the Revised Code;
  (7) The proper and adequate reserve for depreciation, as determined to be reasonable by the
commission;
  (8) Any sums of money or property that the company may have received, or, with respect to
a natural gas, water-works, or sewage disposal system company, is projected to receive as of the date
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certain, as total or partial defrayal of the cost of its property;
  (9) The valuation of the property of the company, which shall be the sum of the amounts
contained in the report pursuant to divisions (B)(1) to (6) of this section, less the sum of the amounts
contained in the report pursuant to divisions (B)(7) and (8) of this section.
  (C) The report shall show separately the property used and useful to such public utility or
railroad in the furnishing of the service to the public, the property held by such public utility or
railroad for other purposes, and the property projected to be used and useful to or held by a natural
gas, water-works, or sewage disposal system company as of the date certain, and such other items as
the commission considers proper. The commission may require an additional report showing the
extent to which the property is used and useful, or, with respect to a natural gas, water-works, or
sewage disposal system company, projected to be used and useful as of the date certain. Such reports
shall be filed in the office of the commission for the information of the governor and the general
assembly.
  (D) The requirements of section 4909.05 of the Revised Code do not apply to an electric
light, natural gas, water-works, or sewage disposal system company that chooses to file a forecasted
test period under section 4909.18 of the Revised Code.
  Sec. 4909.06. The investigation and report required by section 4909.042 or 4909.05 of the
Revised Code shall show, when the public utilities commission deems it necessary, the amounts,
dates, and rates of interest of all bonds outstanding against each public utility or railroad, the
property upon which such bonds are a lien, the amounts paid for them, and, the original capital stock
and the moneys received by any such public utility or railroad by reason of any issue of stock,
bonds, or other securities. Such report shall also show the net and gross receipts of such public
utility or railroad and the method by which moneys were expended or paid out and the purpose of
such payments. The commission may prescribe the procedure to be followed in making the
investigation and valuation, the form in which the results of the ascertainment of the value of each
public utility or railroad shall be submitted, and the classifications of the elements that constitute the
ascertained value. Such investigation shall also show the value of the property of every public utility
or railroad as a whole, and if such property is in more than one county, the value of its property in
each of such counties.
  "Valuation" and "value," as used in this section, may include:
  (A) With respect to a public utility that is a natural gas, water-works, or sewage disposal
system company, projected valuation and value as of the date certain, if applicable because of a
future date certain under section 4909.15 of the Revised Code;
  (B) With respect to an electric light company, natural gas, water-works, or sewage disposal
system company that chooses to file a forecasted test period under section 4909.18 of the Revised
Code, the valuation and value during the forecasted test period.
  Sec. 4909.07. The public utilities commission, during the making of the valuation provided
for in sections 4909.04 to 4909.13 of the Revised Code, and after its completion, shall in like
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manner keep itself informed through its engineers, experts, and other assistants of all extensions,
improvements, or other changes in the condition and value of the property of all public utilities or
railroads and shall ascertain the value of such extensions, improvements, and changes. The
commission shall, as is required for the proper regulation of such public utilities or railroads, revise
and correct its valuations of property, showing such revisions and corrections as a whole and as to
each county. Such revisions and corrections shall be filed in the same manner as original reports.
  "Valuation" and "value," as used in this section, may include:
  (A) With respect to a public utility that is a natural gas, water-works, or sewage disposal
system company, projected valuation and value as of the date certain, if applicable because of a
future date certain under section 4909.15 of the Revised Code;
  (B) With respect to an electric light company , natural gas, water-works, or sewage disposal
system company that chooses to file a forecasted test period under section 4909.18 of the Revised
Code, the valuation and value during the forecasted test period.
  Sec. 4909.08. When the public utilities commission has completed the valuation of the
property of any public utility or railroad and before such valuation becomes final, it shall give notice
by registered letter to such public utility or railroad, and if a substantial portion of said public utility
or railroad is situated in a municipal corporation, then to the mayor of such municipal corporation,
stating the valuations placed upon the several kinds and classes of property of such public utility or
railroad and upon the property as a whole and give such further notice by publication or otherwise as
it shall deem necessary to apprise the public of such valuation. If, within thirty days after such
notification, no protest has been filed with the commission, such valuation becomes final. If notice
of protest has been filed by any public utility or railroad, the commission shall fix a time for hearing
such protest and shall consider at such hearing any matter material thereto presented by such public
utility, railroad, or municipal corporation, in support of its protest or by any representative of the
public against such protest. If, after the hearing of any protest of any valuation so fixed, the
commission is of the opinion that its inventory is incomplete or inaccurate or that its valuation is
incorrect, it shall make such changes as are necessary and shall issue an order making such corrected
valuations final. A final valuation by the commission and all classifications made for the
ascertainment of such valuations shall be public and are prima-facie evidence relative to the value of
the property.
  "Valuation" and "value," as used in this section, may include:
  (A) With respect to a public utility that is a natural gas, water-works, or sewage disposal
system company, projected valuation and value as of the date certain, if applicable because of a
future date certain under section 4909.15 of the Revised Code;
  (B) With respect to an electric light company , natural gas, water-works, or sewage disposal
system company that chooses to file a forecasted test period under section 4909.18 of the Revised
Code, the valuation and value during the forecasted test period.
  Sec. 4909.15. (A) The public utilities commission, when fixing and determining just and
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reasonable rates, fares, tolls, rentals, and charges, shall determine:
  (1)(a) With respect to a public utility that is a natural gas, water-works, or sewage disposal
system company, or that is an electric light company , natural gas, water-works, or sewage disposal
system company that chooses not to file a forecasted test period under section 4909.18 of the
Revised Code, the valuation as of the date certain of the property of the public utility that is used and
useful or, with respect to a natural gas, water-works, or sewage disposal system company that
chooses not to file a forecasted test period under section 4909.18 of the Revised Code, is projected
to be used and useful as of the date certain, in rendering the public utility service for which rates are
to be fixed and determined.
  (b) With respect to an electric light company , natural gas, water-works, or sewage disposal
system company that chooses to file a forecasted test period under section 4909.18 of the Revised
Code, the valuation of the property of the utility that is projected to be used and useful during the
forecasted test period in rendering the public utility service for which rates are to be fixed and
determined.
  (c) The valuation so determined under division (A)(1) of this section for any public utility
shall be the total value as set forth in division (B)(8) of section 4909.042 of the Revised Code and
division (B)(9) of section 4909.05 of the Revised Code, and a reasonable allowance for materials
and supplies and a reasonable allowance for cash working capital as determined by the commission.
  (2) A fair and reasonable rate of return to the utility on the valuation as determined in
division (A)(1) of this section;
  (3) The dollar annual return to which the utility is entitled by applying the fair and
reasonable rate of return as determined under division (A)(2) of this section to the valuation of the
utility determined under division (A)(1) of this section;
  (4) The cost to the utility of rendering the public utility service for the test period used for
the determination under division (C)(1) of this section by the utility during the test period.
  Federal, state, and local taxes imposed on or measured by net income may, in the discretion
of the commission, be computed by the normalization method of accounting, provided the utility
maintains accounting reserves that reflect differences between taxes actually payable and taxes on a
normalized basis, provided that no determination as to the treatment in the rate-making process of
such taxes shall be made that will result in loss of any tax depreciation or other tax benefit to which
the utility would otherwise be entitled, and further provided that such tax benefit as redounds to the
utility as a result of such a computation may not be retained by the company, used to fund any
dividend or distribution, or utilized for any purpose other than the defrayal of the operating expenses
of the utility and the defrayal of the expenses of the utility in connection with construction work.
  (B) The commission shall compute the gross annual revenues to which the utility is entitled
by adding the dollar amount of return under division (A)(3) of this section to the cost, for the test
period used for the determination under division (C)(1) of this section, of rendering the public utility
service under division (A)(4) of this section.
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  (C)(1) Except as provided in division (D) of this section, the revenues and expenses of the
utility shall be determined during a test period as follows:
  (a) Electric light companies , natural gas, water-works, and sewage disposal companies may
propose a forecasted test period. If the company proposes a forecasted test period, the company shall
propose annual base rates for three consecutive twelve-month periods in a single forecasted test
period application.
  During the first twelve-month period, the company shall propose a reasonably forecasted
rate base using a thirteen-month average, revenues, and expenses for the first twelve months that
new base rates will be in effect.
  During the second twelve-month period, the base rate revenue requirement shall be adjusted
for the return of, and return on, incremental rate base additions approved by the commission in the
initial application. During the third twelve-month period, the base rate revenue requirement shall be
adjusted for the return of and return on incremental rate base additions approved by the commission
in the initial application.
  For each twelve-month period, forecasted plant investment, forecasted revenues, and
forecasted expenses versus actual investment, actual revenues, and actual expenses shall be trued up
via a cost recovery mechanism approved by the commission.
  Each true-up process shall include an adjustment to actual for the rate of return that the
company is authorized to earn on the actual investments made. The company shall provide the
commission with actual financial information during the true-up process to ensure accuracy. As part
of the true-up process, the commission shall include only rate base components that have been found
by the commission to be used and useful in rendering public utility service.
  At the end of the last test period, the company shall file for a rate case under section 4909.18
of the Revised Code.
  (b) All utilities, except for electric light companies , natural gas, water-works, or sewage
disposal system companies that choose to file under division (C)(1)(a) of this section, shall propose a
test period that is any twelve-month period beginning not more than six months prior to the date the
application is filed and ending not more than nine months subsequent to that date.
  (2) For utilities filing under division (C)(1)(b) of this section, the date certain shall be not
later than the date of filing, except that it shall be, for a natural gas, water-works, or sewage disposal
system company, not later than the end of the test period.
  (D) Utilities filing under division (C)(1)(b) of this section may propose adjustments to the
revenues and expenses for any changes that are, during the test period or the twelve-month period
immediately following the test period, reasonably expected to occur. The utility shall identify and
quantify, individually, any proposed adjustments. The commission shall incorporate the proposed
adjustments into the determination if the adjustments are just and reasonable.
  (E) When the commission is of the opinion, after hearing and after making the
determinations under divisions (A) and (B) of this section, that any rate, fare, charge, toll, rental,
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schedule, classification, or service, or any joint rate, fare, charge, toll, rental, schedule, classification,
or service rendered, charged, demanded, exacted, or proposed to be rendered, charged, demanded, or
exacted, is, or will be, unjust, unreasonable, unjustly discriminatory, unjustly preferential, or in
violation of law, that the service is, or will be, inadequate, or that the maximum rates, charges, tolls,
or rentals chargeable by any such public utility are insufficient to yield reasonable compensation for
the service rendered, and are unjust and unreasonable, the commission shall:
  (1) With due regard among other things to the value of all property of the public utility as
determined under division (A)(1) of this section, excluding from such value the value of any
franchise or right to own, operate, or enjoy the same in excess of the amount, exclusive of any tax or
annual charge, actually paid to any political subdivision of the state or county, as the consideration
for the grant of such franchise or right, and excluding any value added to such property by reason of
a monopoly or merger, with due regard in determining the dollar annual return under division (A)(3)
of this section to the necessity of making reservation out of the income for surplus, depreciation, and
contingencies, and;
  (2) With due regard to all such other matters as are proper, according to the facts in each
case,
  (a) Including a fair and reasonable rate of return determined by the commission with
reference to a cost of debt equal to the actual embedded cost of debt of such public utility,
  (b) But not including the portion of any periodic rental or use payments representing that
cost of property that is included in the valuation report under divisions (B)(4) and (5) of section
4909.042 of the Revised Code and divisions (B)(4) and (5) of section 4909.05 of the Revised Code,
fix and determine the just and reasonable rate, fare, charge, toll, rental, or service to be rendered,
charged, demanded, exacted, or collected for the performance or rendition of the service that will
provide the public utility the allowable gross annual revenues under division (B) of this section, and
order such just and reasonable rate, fare, charge, toll, rental, or service to be substituted for the
existing one. After such determination and order no change in the rate, fare, toll, charge, rental,
schedule, classification, or service shall be made, rendered, charged, demanded, exacted, or changed
by such public utility without the order of the commission, and any other rate, fare, toll, charge,
rental, classification, or service is prohibited.
  (F) Upon application of any person or any public utility, and after notice to the parties in
interest and opportunity to be heard as provided in Chapters 4901., 4903., 4905., 4907., 4909.,
4921., and 4923. of the Revised Code for other hearings, has been given, the commission may
rescind, alter, or amend an order fixing any rate, fare, toll, charge, rental, classification, or service, or
any other order made by the commission. Certified copies of such orders shall be served and take
effect as provided for original orders.
  Sec. 4909.156. In fixing the just, reasonable, and compensatory rates, joint rates, tolls,
classifications, charges, or rentals to be observed and charged for service by any public utility, the
public utilities commission shall, in action upon an application filed pursuant to section 4909.18 of
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the Revised Code, require a public utility to file a report showing the proportionate amounts of the
valuation of the property of the utility, as determined under section 4909.042 or 4909.05 of the
Revised Code, and the proportionate amounts of the revenues and expenses of the utility that are
proposed to be considered as attributable to the service area involved in the application.
  "Valuation," as used in this section, may include:
  (A) With respect to a public utility that is a natural gas, water-works, or sewage disposal
system company, projected valuation as of the date certain, if applicable because of a future date
certain under section 4909.15 of the Revised Code;
  (B) With respect to an electric light company , natural gas, water-works, or sewage disposal
system company that chooses to file a forecasted test period under section 4909.18 of the Revised
Code, the valuation and value during the forecasted test period.
  Sec. 4909.157. (A) Except for a cost recovery mechanism provided under division (C)(1)(a)
of section 4909.15 of the Revised Code, a natural gas, water-works, or sewage disposal system
company that applies for a forecasted test period under that division shall not request, and the public
utilities commission shall not approve, any rider or other cost recovery mechanism to recover capital
investment that would be in addition to the company's base rates.
  (B) Upon rates going into effect based on a company's use of a forecasted test period under
division (C)(1)(a) of section 4909.15 of the Revised Code, any riders and other cost recovery
mechanisms previously approved to recover capital investment for the company shall terminate.
  (C) Notwithstanding divisions (A) and (B) of this section, a natural gas company may still
apply for, or continue collecting from, an infrastructure development rider under section 4929.161 of
the Revised Code.
  Sec. 4909.159. An electric light company , natural gas, water-works, or sewage disposal
system company proposing a forecasted test period under division (C)(1)(a) of section 4909.15 of
the Revised Code shall provide any financial information required by that section from the
company's full books. The public utilities commission shall ensure appropriate protections against
the disclosure of the company's trade secrets or proprietary information.
  Sec. 4909.173. (A) As used in this section and section 4909.174 of the Revised Code:
  (1) "Customer-owned water service line" means the water service line connected to the
water-works company's water service line at the curb of a customer's property.
  (2) "Water-works company" means an entity defined under division (G) of section 4905.03
of the Revised Code that is a public utility under section 4905.02 of the Revised Code.
  (B) A water-works company may do any of the following:
  (1) Replace lead customer-owned water service lines concurrently with a scheduled utility
main replacement project, an emergency replacement, or company-initiated lead water service line
replacement program;
  (2) Replace lead customer-owned water service lines when mandated or ordered to replace
such lines by law or a state or federal regulatory agency;
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  (3) Replace customer-owned water service lines of other composition when mandated or
ordered to replace such lines by law or a state or federal regulatory agency.
  (C) If a water-works company replaces customer-owned water service lines under this
section, then the company shall include the cost of the replacement of the water service lines,
including the cost of replacement of both company side and customer-owned water service lines and
the cost to evaluate customer-owned water service lines of unknown composition, in the valuation
report of the property of the company as required under division (B)(9) of section 4909.042 the
Revised Code or division (B)(6) of section 4909.05 of the Revised Code, whichever is applicable,
for inclusion in a rate case under this chapter.
  (D) The water service customer who is responsible for the customer-owned water service
line that was replaced under this section shall hold legal title to the replaced water service line.
  Sec. 4909.174. (A) A water-works company shall reimburse a customer who replaces the
customer's customer-owned water service line, if both of the following occur:
  (1) The company confirms that the customer-owned water service line was composed of lead
or other composition that was mandated or ordered to be replaced by law or a state or federal
regulatory agency;
  (2) The customer submits the reimbursement request to the company not later than twelve
months after the completion of the water line replacement.
  (B) A water-works company that provides a reimbursement to a customer under this section
shall include the reimbursement amount in the valuation report of the property of the company as
required under division (B)(9) of section 4909.042 of the Revised Code or (B)(6) of section 4909.05
of the Revised Code, whichever is applicable, for inclusion in a rate case under this chapter.
  Sec. 4909.18. Any public utility desiring to establish any rate, joint rate, toll, classification,
charge, or rental, or to modify, amend, change, increase, or reduce any existing rate, joint rate, toll,
classification, charge, or rental, or any regulation or practice affecting the same, shall file a written
application with the public utilities commission. Except for actions under section 4909.16 of the
Revised Code, no public utility may issue the notice of intent to file an application pursuant to
division (B) of section 4909.43 of the Revised Code to increase any existing rate, joint rate, toll,
classification, charge, or rental, until a final order under this section has been issued by the
commission on any pending prior application to increase the same rate, joint rate, toll, classification,
charge, or rental or until two hundred seventy-five days after filing such application, whichever is
sooner. Such application shall be verified by the president or a vice-president and the secretary or
treasurer of the applicant. Such application shall contain a schedule of the existing rate, joint rate,
toll, classification, charge, or rental, or regulation or practice affecting the same, a schedule of the
modification amendment, change, increase, or reduction sought to be established, and a statement of
the facts and grounds upon which such application is based. If such application proposes a new
service or the use of new equipment, or proposes the establishment or amendment of a regulation,
the application shall fully describe the new service or equipment, or the regulation proposed to be
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established or amended, and shall explain how the proposed service or equipment differs from
services or equipment presently offered or in use, or how the regulation proposed to be established
or amended differs from regulations presently in effect. The application shall provide such additional
information as the commission may require in its discretion. If the commission determines that such
application is not for an increase in any rate, joint rate, toll, classification, charge, or rental, the
commission may permit the filing of the schedule proposed in the application and fix the time when
such schedule shall take effect. If it appears to the commission that the proposals in the application
may be unjust or unreasonable, the commission shall set the matter for hearing and shall give notice
of such hearing by sending written notice of the date set for the hearing to the public utility and
publishing notice of the hearing one time in a newspaper of general circulation in each county in the
service area affected by the application. At such hearing, the burden of proof to show that the
proposals in the application are just and reasonable shall be upon the public utility. After such
hearing, the commission shall, where practicable, issue an appropriate order within six months from
the date the application was filed.
  If the commission determines that said application is for an increase in any rate, joint rate,
toll, classification, charge, or rental there shall also, unless otherwise ordered by the commission, be
filed with the application in duplicate the following exhibits:
  (A) A report of its property used and useful, or, with respect to a natural gas, water-works, or
sewage disposal system company that chooses not to file a forecasted test period under division (C)
(1)(a) of section 4909.15 of the Revised Code, projected to be used and useful, as of the date certain,
or during the forecasted test period, if the application is filed under division (C)(1)(a) of section
4909.15 of the Revised Code, in rendering the service referred to in such application, as provided in
sections 4909.042 and 4909.05 of the Revised Code;
  (B) A complete operating statement of its last fiscal year, showing in detail all its receipts,
revenues, and incomes from all sources, all of its operating costs and other expenditures, and any
analysis such public utility deems applicable to the matter referred to in said application;
  (C) A statement of the income and expense anticipated under the application filed;
  (D) A statement of financial condition summarizing assets, liabilities, and net worth;
  (E) Such other information as the commission may require in its discretion.
  Sec. 4909.182. Not later than December 31, 2029, and at least every three years thereafter,
each natural gas company that provides utility service to two hundred fifty thousand or more
customers shall file a rate case application under section 4909.18 of the Revised Code.
  Sec. 4909.421. (A) If the proceeding on an application filed with the public utilities
commission under section 4909.18 of the Revised Code by an electric light company , natural gas,
water-works, or sewage disposal system company requesting an increase on any rate, rate
mechanism, joint rate, toll, classification, charge, or rental or requesting a change in a regulation or
practice affecting the same has not been concluded and an opinion and order entered pursuant to
section 4909.19 of the Revised Code at the expiration of two hundred seventy-five days from the
Sub. S. B. No. 103  136th G.A.
  12
date of the filing of the application, the company may request a temporary increase, and any party to
the proceeding may request a temporary decrease, which shall go into effect and remain in effect
until modified in accordance with the commission's order based upon the merits of the application.
  (B) Not later than three hundred sixty days from the date of filing the application as
established by section 4909.193 of the Revised Code, the commission shall issue an order to
approve, deny, or modify an application filed under section 4909.18 of the Revised Code. If the
commission does not issue an order within three hundred sixty days after the date of filing of the
application, the application shall be deemed approved by operation of law. A temporary increase or
decrease under this section shall not exceed the midpoint of the rates recommended in the staff
report filed pursuant to section 4909.19 of the Revised Code and shall be subject to reconciliation
and refund.
  (C) Nothing in this section shall be construed to mitigate any duty of the commission to
issue a final order under section 4909.19 of the Revised Code.
  Sec. 4928.01. (A) As used in this chapter:
  (1) "Ancillary service" means any function necessary to the provision of electric
transmission or distribution service to a retail customer and includes, but is not limited to,
scheduling, system control, and dispatch services; reactive supply from generation resources and
voltage control service; reactive supply from transmission resources service; regulation service;
frequency response service; energy imbalance service; operating reserve-spinning reserve service;
operating reserve-supplemental reserve service; load following; back-up supply service; real-power
loss replacement service; dynamic scheduling; system black start capability; and network stability
service.
  (2) "Billing and collection agent" means a fully independent agent, not affiliated with or
otherwise controlled by an electric utility, electric services company, electric cooperative, or
governmental aggregator subject to certification under section 4928.08 of the Revised Code, to the
extent that the agent is under contract with such utility, company, cooperative, or aggregator solely
to provide billing and collection for retail electric service on behalf of the utility company,
cooperative, or aggregator.
  (3) "Certified territory" means the certified territory established for an electric supplier under
sections 4933.81 to 4933.90 of the Revised Code.
  (4) "Competitive retail electric service" means a component of retail electric service that is
competitive as provided under division (B) of this section.
  (5) "Electric cooperative" means a not-for-profit electric light company that both is or has
been financed in whole or in part under the "Rural Electrification Act of 1936," 49 Stat. 1363, 7
U.S.C. 901, and owns or operates facilities in this state to generate, transmit, or distribute electricity,
or a not-for-profit successor of such company.
  (6) "Electric distribution utility" means an electric utility that supplies at least retail electric
distribution service and does not own or operate an electric generating facility.
Sub. S. B. No. 103  136th G.A.
  13
  (7) "Electric light company" has the same meaning as in section 4905.03 of the Revised
Code and includes an electric services company.
  (8) "Electric load center" has the same meaning as in section 4933.81 of the Revised Code.
  (9) "Electric services company" means an electric light company that is engaged on a for-
profit or not-for-profit basis in the business of supplying or arranging for the supply of only a
competitive retail electric service in this state. "Electric services company" includes a power
marketer, power broker, aggregator, or independent power producer but excludes an electric
cooperative, municipal electric utility, governmental aggregator, or billing and collection agent.
  (10) "Electric supplier" has the same meaning as in section 4933.81 of the Revised Code.
  (11) "Electric utility" means an electric light company that has a certified territory and is
engaged on a for-profit basis in the business of supplying at least a noncompetitive retail electric
service in this state. "Electric utility" excludes a municipal electric utility or a billing and collection
agent.
  (12) "Firm electric service" means electric service other than nonfirm electric service.
  (13) "Governmental aggregator" means a legislative authority of a municipal corporation, a
board of township trustees, or a board of county commissioners acting as an aggregator for the
provision of a competitive retail electric service under authority conferred under section 4928.20 of
the Revised Code.
  (14) A person acts "knowingly," regardless of the person's purpose, when the person is
aware that the person's conduct will probably cause a certain result or will probably be of a certain
nature. A person has knowledge of circumstances when the person is aware that such circumstances
probably exist.
  (15) "Level of funding for low-income customer energy efficiency programs provided
through electric utility rates" means the level of funds specifically included in an electric utility's
rates on October 5, 1999, pursuant to an order of the public utilities commission issued under
Chapter 4905. or 4909. of the Revised Code and in effect on October 4, 1999, for the purpose of
improving the energy efficiency of housing for the utility's low-income customers. The term
excludes the level of any such funds committed to a specific nonprofit organization or organizations
pursuant to a stipulation or contract.
  (16) "Low-income customer assistance programs" means the percentage of income payment
plan program, the home energy assistance program, the home weatherization assistance program,
and the targeted energy efficiency and weatherization program.
  (17) "Market development period" for an electric utility means the period of time beginning
on the starting date of competitive retail electric service and ending on the applicable date for that
utility as specified in section 4928.40 of the Revised Code, irrespective of whether the utility applies
to receive transition revenues under this chapter.
  (18) "Market power" means the ability to impose on customers a sustained price for a
product or service above the price that would prevail in a competitive market.
Sub. S. B. No. 103  136th G.A.
  14
  (19) "Mercantile customer" means a commercial or industrial customer if the electricity
consumed is for nonresidential use and the customer consumes more than seven hundred thousand
kilowatt hours per year or is part of a national account involving multiple facilities in one or more
states.
  (20) "Municipal electric utility" means a municipal corporation that owns or operates
facilities to generate, transmit, or distribute electricity.
  (21) "Noncompetitive retail electric service" means a component of retail electric service
that is noncompetitive as provided under division (B) of this section.
  (22) "Nonfirm electric service" means electric service provided pursuant to a schedule filed
under section 4905.30 of the Revised Code or pursuant to an arrangement under section 4905.31 of
the Revised Code, which schedule or arrangement includes conditions that may require the customer
to curtail or interrupt electric usage during nonemergency circumstances upon notification by an
electric utility.
  (23) "Percentage of income payment plan arrears" means funds eligible for collection
through the percentage of income payment plan rider, but uncollected as of July 1, 2000.
  (24) "Person" has the same meaning as in section 1.59 of the Revised Code.
  (25) "Advanced energy project" means any technologies, products, activities, or
management practices or strategies that facilitate the generation or use of electricity or energy and
that reduce or support the reduction of energy consumption or support the production of clean,
renewable energy for industrial, distribution, commercial, institutional, governmental, research, not-
for-profit, or residential energy users, including, but not limited to, advanced energy resources and
renewable energy resources. "Advanced energy project" also includes any project described in
division (A), (B), or (C) of section 4928.621 of the Revised Code.
  (26) "Regulatory assets" means the unamortized net regulatory assets that are capitalized or
deferred on the regulatory books of the electric utility, pursuant to an order or practice of the public
utilities commission or pursuant to generally accepted accounting principles as a result of a prior
commission rate-making decision, and that would otherwise have been charged to expense as
incurred or would not have been capitalized or otherwise deferred for future regulatory consideration
absent commission action. "Regulatory assets" includes, but is not limited to, all deferred demand-
side management costs; all deferred percentage of income payment plan arrears; post-in-service
capitalized charges and assets recognized in connection with statement of financial accounting
standards no. 109 (receivables from customers for income taxes); future nuclear decommissioning
costs and fuel disposal costs as those costs have been determined by the commission in the electric
utility's most recent rate or accounting application proceeding addressing such costs; the
undepreciated costs of safety and radiation control equipment on nuclear generating plants owned or
leased by an electric utility; and fuel costs currently deferred pursuant to the terms of one or more
settlement agreements approved by the commission.
  (27) "Retail electric service" means any service involved in supplying or arranging for the
Sub. S. B. No. 103  136th G.A.
  15
supply of electricity to ultimate consumers in this state, from the point of generation to the point of
consumption. For the purposes of this chapter, retail electric service includes one or more of the
following "service components": generation service, aggregation service, power marketing service,
power brokerage service, transmission service, distribution service, ancillary service, metering
service, and billing and collection service.
  (28) "Starting date of competitive retail electric service" means January 1, 2001.
  (29) "Customer-generator" means a user of a net metering system.
  (30) "Net metering" means measuring the difference in an applicable billing period between
the electricity supplied by an electric service provider and the electricity generated by a customer-
generator that is fed back to the electric service provider.
  (31) "Net metering system" means a facility for the production of electrical energy that does
all of the following:
  (a) Uses as its fuel either solar, wind, biomass, landfill gas, or hydropower, or uses a
microturbine or a fuel cell;
  (b) Is located on a customer-generator's premises;
  (c) Operates in parallel with the electric utility's transmission and distribution facilities;
  (d) Is intended primarily to offset part or all of the customer-generator's requirements for
electricity. For an industrial customer-generator with a net metering system that has a capacity of
less than twenty megawatts and uses wind as energy, this means the net metering system was sized
so as to not exceed one hundred per cent of the customer-generator's annual requirements for electric
energy at the time of interconnection.
  (32) "Self-generator" means an entity in this state that owns or hosts on property the entity
controls an electric generation facility that produces electricity primarily for the owner's
consumption and that may provide any such excess electricity to another entity, and that meets all of
the following:
  (a) The facility is installed or operated by the owner or by a third party under a contract,
including a lease, purchase power agreement, or other service contract.
  (b) The facility connects directly to the owner's side of the electric meter.
  (c) The facility delivers electricity to the owner's side of the electric meter without the use of
an electric distribution utility's or electric cooperative's distribution system or transmission system.
  (33) "Rate plan" means the standard service offer in effect on the effective date of the
amendment of this section by S.B. 221 of the 127th general assembly, July 31, 2008.
  (34) "Advanced energy resource" means any of the following:
  (a) Any method or any modification or replacement of any property, process, device,
structure, or equipment that increases the generation output of an electric generating facility to the
extent such efficiency is achieved without additional carbon dioxide emissions by that facility;
  (b) Any distributed generation system consisting of customer cogeneration technology;
  (c) Clean coal technology that includes a carbon-based product that is chemically altered
Sub. S. B. No. 103  136th G.A.
  16
before combustion to demonstrate a reduction, as expressed as ash, in emissions of nitrous oxide,
mercury, arsenic, chlorine, sulfur dioxide, or sulfur trioxide in accordance with the American society
of testing and materials standard D1757A or a reduction of metal oxide emissions in accordance
with standard D5142 of that society, or clean coal technology that includes the design capability to
control or prevent the emission of carbon dioxide, which design capability the commission shall
adopt by rule and shall be based on economically feasible best available technology or, in the
absence of a determined best available technology, shall be of the highest level of economically
feasible design capability for which there exists generally accepted scientific opinion;
  (d) Advanced nuclear energy technology consisting of generation III technology as defined
by the nuclear regulatory commission; other, later technology; or significant improvements to
existing facilities;
  (e) Any fuel cell used in the generation of electricity, including, but not limited to, a proton
exchange membrane fuel cell, phosphoric acid fuel cell, molten carbonate fuel cell, or solid oxide
fuel cell;
  (f) Advanced solid waste or construction and demolition debris conversion technology,
including, but not limited to, advanced stoker technology, and advanced fluidized bed gasification
technology, that results in measurable greenhouse gas emissions reductions as calculated pursuant to
the United States environmental protection agency's waste reduction model (WARM);
  (g) Demand-side management and any energy efficiency improvement;
  (h) Any new, retrofitted, refueled, or repowered generating facility located in Ohio,
including a simple or combined-cycle natural gas generating facility or a generating facility that uses
biomass, coal, modular nuclear, or any other fuel as its input;
  (i) Any uprated capacity of an existing electric generating facility if the uprated capacity
results from the deployment of advanced technology.
  "Advanced energy resource" does not include a waste energy recovery system that is, or has
been, included in an energy efficiency program of an electric distribution utility pursuant to
requirements under section 4928.66 of the Revised Code.
  (35) "Air contaminant source" has the same meaning as in section 3704.01 of the Revised
Code.
  (36) "Cogeneration technology" means technology that produces electricity and useful
thermal output simultaneously.
  (37)(a) "Renewable energy resource" means any of the following:
  (i) Solar photovoltaic or solar thermal energy;
  (ii) Wind energy;
  (iii) Power produced by a hydroelectric facility;
  (iv) Power produced by a small hydroelectric facility, which is a facility that operates, or is
rated to operate, at an aggregate capacity of less than six megawatts;
  (v) Power produced by a run-of-the-river hydroelectric facility placed in service on or after
Sub. S. B. No. 103  136th G.A.
  17
January 1, 1980, that is located within this state, relies upon the Ohio river, and operates, or is rated
to operate, at an aggregate capacity of forty or more megawatts;
  (vi) Geothermal energy;
  (vii) Fuel derived from solid wastes, as defined in section 3734.01 of the Revised Code,
through fractionation, biological decomposition, or other process that does not principally involve
combustion;
  (viii) Biomass energy;
  (ix) Energy produced by cogeneration technology that is placed into service on or before
December 31, 2015, and for which more than ninety per cent of the total annual energy input is from
combustion of a waste or byproduct gas from an air contaminant source in this state, which source
has been in operation since on or before January 1, 1985, provided that the cogeneration technology
is a part of a facility located in a county having a population of more than three hundred sixty-five
thousand but less than three hundred seventy thousand according to the most recent federal
decennial census;
  (x) Biologically derived methane gas;
  (xi) Heat captured from a generator of electricity, boiler, or heat exchanger fueled by
biologically derived methane gas;
  (xii) Energy derived from nontreated by-products of the pulping process or wood
manufacturing process, including bark, wood chips, sawdust, and lignin in spent pulping liquors.
  "Renewable energy resource" includes, but is not limited to, any fuel cell used in the
generation of electricity, including, but not limited to, a proton exchange membrane fuel cell,
phosphoric acid fuel cell, molten carbonate fuel cell, or solid oxide fuel cell; a linear generator; wind
turbine located in the state's territorial waters of Lake Erie; methane gas emitted from an abandoned
or active coal mine; waste energy recovery system placed into service or retrofitted on or after the
effective date of the amendment of this section by S.B. 315 of the 129th general assembly,
September 10, 2012, except that a waste energy recovery system described in division (A)(38)(b) of
this section may be included only if it was placed into service between January 1, 2002, and
December 31, 2004; storage facility that will promote the better utilization of a renewable energy
resource; or distributed generation system used by a customer to generate electricity from any such
energy.
  "Renewable energy resource" does not include a waste energy recovery system that is, or
was, on or after January 1, 2012, included in an energy efficiency program of an electric distribution
utility pursuant to requirements under section 4928.66 of the Revised Code.
  (b) As used in division (A)(37) of this section, "hydroelectric facility" means a hydroelectric
generating facility that is located at a dam on a river, or on any water discharged to a river, that is
within or bordering this state or within or bordering an adjoining state and meets all of the following
standards:
  (i) The facility provides for river flows that are not detrimental for fish, wildlife, and water
Sub. S. B. No. 103  136th G.A.
  18
quality, including seasonal flow fluctuations as defined by the applicable licensing agency for the
facility.
  (ii) The facility demonstrates that it complies with the water quality standards of this state,
which compliance may consist of certification under Section 401 of the "Clean Water Act of 1977,"
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has not contributed to a finding by this
state that the river has impaired water quality under Section 303(d) of the "Clean Water Act of
1977," 114 Stat. 870, 33 U.S.C. 1313.
  (iii) The facility complies with mandatory prescriptions regarding fish passage as required
by the federal energy regulatory commission license issued for the project, regarding fish protection
for riverine, anadromous, and catadromous fish.
  (iv) The facility complies with the recommendations of the Ohio environmental protection
agency and with the terms of its federal energy regulatory commission license regarding watershed
protection, mitigation, or enhancement, to the extent of each agency's respective jurisdiction over the
facility.
  (v) The facility complies with provisions of the "Endangered Species Act of 1973," 87 Stat.
884, 16 U.S.C. 1531 to 1544, as amended.
  (vi) The facility does not harm cultural resources of the area. This can be shown through
compliance with the terms of its federal energy regulatory commission license or, if the facility is
not regulated by that commission, through development of a plan approved by the Ohio historic
preservation office, to the extent it has jurisdiction over the facility.
  (vii) The facility complies with the terms of its federal energy regulatory commission license
or exemption that are related to recreational access, accommodation, and facilities or, if the facility
is not regulated by that commission, the facility complies with similar requirements as are
recommended by resource agencies, to the extent they have jurisdiction over the facility; and the
facility provides access to water to the public without fee or charge.
  (viii) The facility is not recommended for removal by any federal agency or agency of any
state, to the extent the particular agency has jurisdiction over the facility.
  (c) The standards in divisions (A)(37)(b)(i) to (viii) of this section do not apply to a small
hydroelectric facility under division (A)(37)(a)(iv) of this section.
  (38) "Waste energy recovery system" means any of the following:
  (a) A facility that generates electricity through the conversion of energy from either of the
following:
  (i) Exhaust heat from engines or manufacturing, industrial, commercial, or institutional sites,
except for exhaust heat from a facility whose primary purpose is the generation of electricity;
  (ii) Reduction of pressure in gas pipelines before gas is distributed through the pipeline,
provided that the conversion of energy to electricity is achieved without using additional fossil fuels.
  (b) A facility at a state institution of higher education as defined in section 3345.011 of the
Revised Code that recovers waste heat from electricity-producing engines or combustion turbines
Sub. S. B. No. 103  136th G.A.
  19
and that simultaneously uses the recovered heat to produce steam, provided that the facility was
placed into service between January 1, 2002, and December 31, 2004;
        (c) A facility that produces steam from recovered waste heat from a manufacturing process
and uses that steam, or transfers that steam to another facility, to provide heat to another
manufacturing process or to generate electricity.
        (39) "Smart grid" means capital improvements to an electric distribution utility's distribution
infrastructure that improve reliability, efficiency, resiliency, or reduce energy demand or use,
including, but not limited to, advanced metering and automation of system functions.
        (40) "Combined heat and power system" means the coproduction of electricity and useful
thermal energy from the same fuel source designed to achieve thermal-efficiency levels of at least
sixty per cent, with at least twenty per cent of the system's total useful energy in the form of thermal
energy.
        (41)(a) "Green energy" means any energy generated by using an energy resource that does
one or more of the following:
        (i) Releases reduced air pollutants, thereby reducing cumulative air emissions;
        (ii) Is more sustainable and reliable relative to some fossil fuels.
        (b) "Green energy" includes energy generated using the following:
        (i) Natural gas as a resource;
        (ii) Nuclear reaction.
        (42) "Energy storage" means electrical generation and storage performed by a distributed
energy system connected battery.
        (43) "Linear generator" means an integrated system consisting that may consist of
oscillators, cylinders, electricity conversion equipment, and associated balance of plant components
that meet the following criteria:
        (a) Converts the linear motion of oscillators directly into electricity without the use of a
flame or spark;
        (b) Is dispatchable with the ability to vary power output across all loads;
        (c) Can operate on multiple fuel types including renewable fuels such as hydrogen,
ammonia, and biogas.
        (B) For the purposes of this chapter, a retail electric service component shall be deemed a
competitive retail electric service if the service component is competitive pursuant to a declaration
by a provision of the Revised Code or pursuant to an order of the public utilities commission
authorized under division (A) of section 4928.04 of the Revised Code. Otherwise, the service
component shall be deemed a noncompetitive retail electric service.
        Sec. 4928.05. (A)(1) A competitive retail electric service supplied by an electric services
company, or by an electric utility consistent with section 4928.141 of the Revised Code, shall not be
subject to supervision and regulation by a municipal corporation under Chapter 743. of the Revised
Code or by the public utilities commission under Chapters 4901. to 4909., 4933., 4935., and 4963. of
Sub. S. B. No. 103  136th G.A.
  20
the Revised Code, except sections 4905.10 and 4905.31, division (B) of section 4905.33, and
sections 4905.35 and 4933.81 to 4933.90; except sections 4905.06, 4935.03, 4963.40, and 4963.41
of the Revised Code only to the extent related to service reliability and public safety; and except as
otherwise provided in this chapter. The commission's authority to enforce those excepted provisions
with respect to a competitive retail electric service shall be such authority as is provided for their
enforcement under Chapters 4901. to 4909., 4933., 4935., and 4963. of the Revised Code and this
chapter. Nothing in this division shall be construed to limit the commission's authority under
sections 4928.141, 4928.142, and 4928.144 of the Revised Code.
  (2) A competitive retail electric service supplied by an electric cooperative shall not be
subject to supervision and regulation by the commission under Chapters 4901. to 4909., 4933.,
4935., and 4963. of the Revised Code, except as otherwise expressly provided in sections 4928.01 to
4928.10 and 4928.16 of the Revised Code.
  (B)(1) A noncompetitive retail electric service supplied by an electric utility shall be subject
to supervision and regulation by the commission under Chapters 4901. to 4909., 4933., 4935., and
4963. of the Revised Code and this chapter, to the extent that authority is not preempted by federal
law. The commission's authority to enforce those provisions with respect to a noncompetitive retail
electric service shall be the authority provided under those chapters and this chapter, to the extent
the authority is not preempted by federal law. Notwithstanding Chapters 4905. and 4909. of the
Revised Code, commission authority under this chapter shall include the authority to provide for the
recovery, through a reconcilable rider on an electric distribution utility's distribution rates, of all
transmission and transmission-related costs, including ancillary and congestion costs, imposed on or
charged to the utility by the federal energy regulatory commission or a regional transmission
organization, independent transmission operator, or similar organization approved by the federal
energy regulatory commission.
  The commission shall adopt, for each electric distribution utility that provides customers
with a standard service offer in compliance with sections 4928.141 and 4928.142 of the Revised
Code, a nonbypassable cost recovery mechanism relating to transmission, ancillary, congestion, or
any related service required for such standard service offer that includes provisions for the recovery
of any cost of such service that the electric distribution utility incurs pursuant to the standard service
offer.
  (2) The commission shall exercise its jurisdiction with respect to the delivery of electricity
by an electric utility in this state so as to ensure that no aspect of the delivery of electricity by the
utility to consumers in this state that consists of a noncompetitive retail electric service is
unregulated.
  (3) A noncompetitive retail electric service supplied by an electric cooperative shall not be
subject to supervision and regulation by the commission under Chapters 4901. to 4909., 4933.,
4935., and 4963. of the Revised Code, except sections 4933.81 to 4933.90 and 4935.03 of the
Revised Code. The commission's authority to enforce those excepted sections with respect to a
Sub. S. B. No. 103  136th G.A.
  21
noncompetitive retail electric service of an electric cooperative shall be such authority as is provided
for their enforcement under Chapters 4933. and 4935. of the Revised Code.
  Sec. 4929.052. (A) As used in sections 4929.052 to 4929.058 of the Revised Code, "large
load customer" means a customer that a natural gas company projected or anticipated to consume, or
actually consumed, in a prior, current, or future twelve-month period, more than one million two
hundred thousand Mcf of natural gas.
  (B) A natural gas company that has applied for, or was already approved for, an
infrastructure development rider pursuant to section 4929.161 of the Revised Code may file an
application to the public utilities commission for an alternative rate plan to serve large load
customers.
  (C) An alternative rate plan established under division (B) of this section must support
commercial agreements entered into between the natural gas company and a large load customer.
  Sec. 4929.053. (A) An alternative rate plan proposed by a natural gas company pursuant to
section 4929.052 of the Revised Code shall be approved by the public utilities commission if the
natural gas company meets its burden of proof in a proceeding before the commission that the
alternative rate plan does all of the following to protect existing customers:
  (1) Protects the company's customers that are not served under the alternative rate plan
pursuant to section 4929.052 of the Revised Code from paying direct or indirect costs, including any
stranded costs, associated with the large load customer's share of infrastructure investments made
under any commercial agreements entered into under that plan;
  (2) Provides any commercial agreement entered into under the plan, once the large load
customer begins natural gas service and monthly payments to the natural gas company, shall require
a monthly cost credit, to compensate other customers for the cost of the large load customer's use of
the natural gas company's system and infrastructure, to the annual infrastructure development rider
rate charged by the natural gas company pursuant to section 4929.162 of the Revised Code, which
will be the cost of the large load customer's use of the natural gas company system and
infrastructure;
  (3) Supports economic development in the state by serving the large load customer, which is
proven by a letter of support by an economic development entity, as defined in division (C)(4) of
section 4929.163 of the Revised Code.
  (B) The monthly cost credit described in division (A)(2) of this section shall be determined
pursuant to a separate infrastructure development rider regulatory liability proceeding in which the
natural gas company shall propose the credit amount based on cost allocation principles.
  Sec. 4929.054. Any payment received from a large load customer pursuant to a commercial
agreement under an alternative rate plan filed and approved under sections 4929.052 and 4929.053
of the Revised Code shall not be considered revenue in any proceeding held pursuant to Chapter
4909. of the Revised Code.
  Sec. 4929.055. An alternative rate plan application filed and approved pursuant to sections
Sub. S. B. No. 103  136th G.A.
  22
4929.052 and 4929.053 of the Revised Code shall not be considered an application for an increase in
rates.
  Sec. 4929.056. (A) A natural gas company shall file a commercial agreement with a large
load customer entered into pursuant to a proposed or approved alternative rate plan under sections
4929.052 and 4929.053 of the Revised Code with the public utilities commission.
  (B) A commercial agreement described in division (A) of this section shall be deemed
automatically approved unless the commission determines within ninety days from the date of the
filing that the commercial agreement is inconsistent with the requirements of this section or sections
4929.052 and 4929.053 of the Revised Code.
  (C) A natural gas company may propose that the commercial agreement include any
negotiated terms that differ from the rates or terms of service approved in the company's most recent
rate case proceeding under section 4909.18 of the Revised Code.
  Sec. 4929.057. (A) An application for an alternative rate plan filed pursuant to sections
4929.052 and 4929.053 of the Revised Code shall be deemed approved ninety days after the date the
natural gas company filed the application with the public utilities commission. The commission may
suspend the approval of the application for good cause shown.
  (B) If the public utilities commission does not issue an order within ninety days from the
date an alternative rate plan application is suspended pursuant to division (A) of this section, the
company's proposed alternative rate plan shall be deemed approved by operation of law.
  Sec. 4929.058. A natural gas company with an alternative rate plan approved under section
4929.053 of the Revised Code, or deemed approved under section 4929.057 of the Revised Code,
shall, upon the approval of a commercial agreement under section 4929.056 of the Revised Code,
file with the public utilities commission a written statement, on a form prescribed by the
commission, agreeing to the following:
  (A) Any costs associated with the alternative rate plan, or any commercial agreements
entered into pursuant to that plan, shall not be recovered, directly or indirectly, from the company's
other customers;
  (B) There shall be no increase in the company's base rates as a direct or indirect result of any
provision of an approved commercial agreement or the alternative rate plan.
       SECTION 2. That existing sections 4909.042, 4909.05, 4909.06, 4909.07, 4909.08, 4909.15,
4909.156, 4909.159, 4909.173, 4909.174, 4909.18, 4909.421, 4928.01, and 4928.05 of the Revised
Code are hereby repealed.
Sub. S. B. No. 103  136th G.A.
      Speaker ___________________ of the House of Representatives.
  President ___________________ of the Senate.
Passed ________________________, 20____
Approved ________________________, 20____
  Governor.
Sub. S. B. No. 103  136th G.A.
  The section numbering of law of a general and permanent nature is
complete and in conformity with the Revised Code.
  Director, Legislative Service Commission.
Filed in the office of the Secretary of State at Columbus, Ohio, on the ____
day of ___________, A. D. 20____.
  Secretary of State.
File No. _________       Effective Date ___________________