SB 103 — Allow alternative rate plans for certain natural gas companies

No.

103 Page 4 As Passed by the Senate 4909.174 of the Revised Code.

78 (C) The report shall show separately the property 79 projected to be used and useful to or held by the utility 80 company during the test period, and such other items as the 81 commission considers proper.

The commission may require an 82 additional report showing the extent to which the property is 83 projected to be used and useful during the test period.

Such 84 reports shall be filed in the office of the commission for the 85 information of the governor and the general assembly.

86 (D) Any financial information required to be submitted by 87 an electric light company , natural gas, water-works, or sewage 88 disposal system company under this section shall be provided 89 from the company's full books.

The commission shall ensure 90 appropriate protections against the disclosure of the company's 91 trade secrets or proprietary information.

92 Sec.

93 (A) With respect to every public utility, other than an 94 electric light company that chooses to file a forecasted test 95 period under section 4909.18 of the Revised Code, the public 96 utilities commission shall prescribe the form and details of the 97 valuation report of the property of each public utility or 98 railroad in the state.

Such report shall include all the kinds 99 and classes of property, with the value of each, owned, held, 100 or, with respect to a natural gas, water-works, or sewage 101 disposal system company, projected to be owned or held as of the 102 date certain, by each public utility or railroad used and 103 useful, or, with respect to a natural gas, water-works, or 104 sewage disposal system company, projected to be used and useful 105 as of the date certain, for the service and convenience of the 106 public.

107(B) Sub.Such report shall contain the following facts in detail:

Sub.

103 Page136th 5G.A. As Passed by the Senate (B) Such report shall contain the following facts in 108 detail:

109 (1) The original cost of each parcel of land owned in fee 110 and in use, or, with respect to a natural gas, water-works, or 111 sewage disposal system company, projected to be owned in fee and 112 in use as of the date certain, determined by the commission;

and 113 also a statement of the conditions of acquisition, whether by 114 direct purchase, by donation, by exercise of the power of 115 eminent domain, or otherwise;

116 (2) The actual acquisition cost, not including periodic 117 rental fees, of rights-of-way, trailways, or other land rights 118 held, or, with respect to a natural gas, water-works, or sewage 119 disposal system company, projected to be held as of the date 120 certain, by virtue of easements, leases, or other forms of 121 grants of rights as to usage;

122 (3) The original cost of all other kinds and classes of 123 property used and useful, or, with respect to a natural gas, 124 water-works, or sewage disposal system company, projected to be 125 used and useful as of the date certain, in the rendition of 126 service to the public.

Subject to section 4909.052 of the 127 Revised Code, such original costs of property, other than land 128 owned in fee, shall be the cost, as determined to be reasonable 129 by the commission, to the person that first dedicated or 130 dedicates the property to the public use and shall be set forth 131 in property accounts and subaccounts as prescribed by the 132 commission.

To the extent that the costs of property comprising 133 a coal research and development facility, as defined in section 134 1555.01 of the Revised Code, or a coal development project, as 135 defined in section 1551.30 of the Revised Code, have been 136 allowed for recovery as Ohio coal research and development costs 137under Sub.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 Sub.

103 Page136th 6G.A. As Passed by the Senate under section 4905.304 of the Revised Code, none of those costs 138 shall be included as a cost of property under this division.

139certain, (4)as Thetotal cost of property constituting all or partpartial defrayal of a 140 project leased to or used by the utility,cost or, with respect to a 141 natural gas, water-works, or sewage disposal system company, 142 projected to be leased to or used by the utility as of theits dateproperty; 143 certain, under Chapter 165., 3706., 6121., or 6123.

(9) The valuation of the 144property Revisedof Codethe andcompany, notwhich includedshall underbe divisionthe (B)(3)sum of thisthe 145amounts sectioncontained exclusivein the report pursuant to divisions (B)(1) to (6) of anythis interestsection, directlyless orthe indirectlysum paidof bythe 146amounts contained in the utilityreport withpursuant respectto theretodivisions whether(B)(7) orand not(8) capitalized;of this section.

147(C) (5)The Inreport theshall discretionshow ofseparately the commission,property theused costand useful to asuch 148public utility,utility or railroad in anthe amountfurnishing determinedof tothe beservice reasonableto bythe public, the 149property commission,held ofby propertysuch constitutingpublic allutility or partrailroad offor aother projectpurposes, 150and leasedthe toproperty theprojected utility,to or,be withused respectand useful to or held by a natural gas, water-water-works, 151 works, or sewage disposal system company,company projected to be leased 152 to the utility as of the date certain, under a lease purchase 153 agreement or a leaseback and notsuch includedother underitems divisionas (B)(3) 154 of this section exclusive of any interest directly or indirectly 155 paid by the utilitycommission withconsiders respectproper. thereto whether or not 156 capitalized;

157 (6) The costcommission ofmay therequire replacementan ofadditional waterreport serviceshowing linesthe 158extent incurredto bywhich athe water-worksproperty companyis underused sectionand 4909.173useful, ofor, thewith 159respect Revisedto Codea andnatural thegas, waterwater-works, serviceor linesewage replacementdisposal 160system reimbursementcompany, amountsprojected provided to customersbe underused sectionand 161useful 4909.174as of the Reviseddate Code;certain.

162Such (7)reports Theshall properbe andfiled adequatein reservethe foroffice depreciation,of asthe 163commission determinedfor tothe beinformation reasonableof bythe governor and the commission;general assembly.

164(D) (8)The Anyrequirements sumsof section 4909.05 of moneythe orRevised propertyCode thatdo thenot companyapply mayto 165an haveelectric received,light, or,natural withgas, respectwater-works, or sewage disposal system company that chooses to file a naturalforecasted gas,test water-works,period 166under Sub.section 4909.18 of the Revised Code.

S.Sec.

B.

No.

103 Page 7 As Passed by the Senate or sewage disposal system company, is projected to receive as of 167 the date certain, as total or partial defrayal of the cost of 168 its property;

169 (9) The valuation of the property of the company, which 170 shall be the sum of the amounts contained in the report pursuant 171 to divisions (B)(1) to (6) of this section, less the sum of the 172 amounts contained in the report pursuant to divisions (B)(7) and 173 (8) of this section.

174 (C) The report shall show separately the property used and 175 useful to such public utility or railroad in the furnishing of 176 the service to the public, the property held by such public 177 utility or railroad for other purposes, and the property 178 projected to be used and useful to or held by a natural gas, 179 water-works, or sewage disposal system company as of the date 180 certain, and such other items as the commission considers 181 proper.

The commission may require an additional report showing 182 the extent to which the property is used and useful, or, with 183 respect to a natural gas, water-works, or sewage disposal system 184 company, projected to be used and useful as of the date certain.

185 Such reports shall be filed in the office of the commission for 186 the information of the governor and the general assembly.

187 (D) The requirements of section 4909.05 of the Revised 188 Code do not apply to an electric light, natural gas, water- 189 works, or sewage disposal system company that chooses to file a 190 forecasted test period under section 4909.18 of the Revised 191 Code.

192 Sec.

The investigation and report required by 193 section 4909.042 or 4909.05 of the Revised Code shall show, when 194 the public utilities commission deems it necessary, the amounts, 195 dates, and rates of interest of all bonds outstanding against 196each Sub.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.

S.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.

B.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.

No.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.

103"Valuation" Page 8 As Passed by the Senate each public utility or railroad, the property upon which such 197 bonds are a lien, the amounts paid for them, and, the original 198 capital stock and the"value," moneysas receivedused byin anythis suchsection, publicmay utilityinclude: 199 or railroad by reason of any issue of stock, bonds, or other 200 securities.

Such(A) reportWith shallrespect alsoto showa thepublic netutility andthat grossis 201a receiptsnatural ofgas, suchwater-works, publicor utilitysewage ordisposal railroadsystem company, projected valuation and value as of the methoddate bycertain, 202if whichapplicable moneysbecause wereof expendeda orfuture paiddate outcertain andunder thesection purpose4909.15 of suchthe 203Revised payments.Code;

The(B) commissionWith mayrespect prescribeto thean procedureelectric tolight becompany, 204natural followedgas, inwater-works, makingor thesewage investigationdisposal andsystem valuation,company thethat formchooses into 205file whicha theforecasted resultstest ofperiod theunder ascertainmentsection 4909.18 of the valueRevised ofCode, eachthe 206valuation public utility or railroad shall be submitted, and thevalue 207during classifications of the elementsforecasted thattest constituteperiod. the ascertained 208 value.

SuchSec. investigation shall also show the value of the 209 property of every public utility or railroad as a whole, and if 210 such property is in more than one county, the value of its 211 property in each of such counties.

212 "Valuation" and "value," as used in this section, may 213 include:

214 (A) With respect to a public utility that is a natural 215 gas, water-works, or sewage disposal system company, projected 216 valuation and value as of the date certain, if applicable 217 because of a future date certain under section 4909.15 of the 218 Revised Code;

219 (B) With respect to an electric light company, natural 220 gas, water-works, or sewage disposal system company that chooses 221 to file a forecasted test period under section 4909.18 of the 222 Revised Code, the valuation and value during the forecasted test 223 period.

224 Sec.

The public utilities commission, during the 225 making of the valuation provided for in sections 4909.04 to 2264909.13 of the Revised Code, and after its completion, shall in like Sub.

103 Page136th 9G.A. As Passed by the Senate 4909.13 of the Revised Code, and after its completion, shall in 227 like manner keep itself informed through its engineers, experts, 228 and other assistants of all extensions, improvements, or other 229 changes in the condition and value of the property of all public 230 utilities or railroads and shall ascertain the value of such 231 extensions, improvements, and changes.

Themanner commissionkeep shall,itself asinformed 232through isits requiredengineers, forexperts, theand properother regulationassistants of suchall publicextensions, utilitiesimprovements, 233 or railroads,other revisechanges in the condition and correctvalue itsof valuationsthe property of property,all 234public showingutilities suchor revisionsrailroads and correctionsshall asascertain athe wholevalue andof assuch toextensions, eachimprovements, 235and county.changes.

SuchThe revisionscommission shall, as is required for the proper regulation of such public utilities or railroads, revise and correctionscorrect shallits bevaluations filedof inproperty, theshowing 236such samerevisions mannerand corrections as originala reports.whole and as to each county.

237Such "Valuation"revisions and "value,"corrections asshall usedbe filed in thisthe section,same maymanner 238as include:original reports.

239"Valuation" (A) With respect to a public utility that is a natural 240 gas, water-works, or sewage disposal system company, projected 241 valuation and value"value," as ofused thein datethis certain,section, ifmay applicableinclude: 242 because of a future date certain under section 4909.15 of the 243 Revised Code;

244(A) (B) With respect to ana electricpublic lightutility companythat ,is a natural 245 gas, water-works, or sewage disposal system companycompany, thatprojected choosesvaluation 246and tovalue fileas aof forecastedthe testdate periodcertain, underif sectionapplicable 4909.18because of thea 247future Reviseddate Code,certain theunder valuationsection and4909.15 valueof during the forecastedRevised testCode; 248 period.

249(B) Sec.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.

When the public utilities commission has 250 completed the valuation of the property of any public utility or 251 railroad and before such valuation becomes final, it shall give 252 notice by registered letter to such public utility or railroad, 253 and if a substantial portion of said public utility or railroad 254 is situated in a municipal corporation, then to the mayor of 255 such municipal corporation, stating the valuations placed upon 256the Sub.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.

S.If, within thirty days after such notification, no protest has been filed with the commission, such valuation becomes final.

B.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.

No.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.

103A Pagefinal 10valuation As Passed by the Senatecommission theand severalall kindsclassifications andmade classesfor ofthe propertyascertainment of such publicvaluations utilityshall 257be orpublic railroad and uponare theprima-facie propertyevidence asrelative a whole and give such 258 further notice by publication or otherwise as it shall deem 259 necessary to apprise the publicvalue of suchthe valuation.property.

If,"Valuation" withinand 260"value," thirtyas daysused afterin suchthis notification,section, nomay protestinclude: has been filed 261 with the commission, such valuation becomes final.

If(A) noticeWith ofrespect 262to protesta has been filed by any public utility orthat railroad,is thea 263natural commissiongas, shallwater-works, fixor asewage timedisposal forsystem hearingcompany, suchprojected protestvaluation and shallvalue 264as considerof atthe suchdate hearingcertain, anyif matterapplicable materialbecause theretoof presenteda 265future bydate suchcertain publicunder utility,section railroad,4909.15 or municipal corporation, in 266 support of its protest or by any representative of the publicRevised 267Code; against such protest.

If,(B) afterWith therespect hearingto ofan anyelectric protestlight ofcompany 268, anynatural valuationgas, sowater-works, fixed,or thesewage commissiondisposal issystem ofcompany the opinion that 269chooses itsto inventoryfile isa incompleteforecasted ortest inaccurateperiod orunder thatsection its4909.18 valuationof 270the isRevised incorrect,Code, itthe shallvaluation make such changes as are necessary and 271value shallduring issuethe anforecasted ordertest makingperiod. such corrected valuations final.

ASec. 272 final valuation by the commission and all classifications made 273 for the ascertainment of such valuations shall be public and are 274 prima-facie evidence relative to the value of the property.

275 "Valuation" and "value," as used in this section, may 276 include:

277 (A) With respect to a public utility that is a natural 278 gas, water-works, or sewage disposal system company, projected 279 valuation and value as of the date certain, if applicable 280 because of a future date certain under section 4909.15 of the 281 Revised Code;

282 (B) With respect to an electric light company , natural 283 gas, water-works, or sewage disposal system company that chooses 284 to file a forecasted test period under section 4909.18 of the 285 Revised Code, the valuation and value during the forecasted test 286 Sub.

S.

B.

No.

103 Page 11 As Passed by the Senate period.

287 Sec.

(A) The public utilities commission, when 288 fixing and determining just and reasonableSub. rates, fares, tolls, 289 rentals, and charges, shall determine:

290 (1)(a) With respect to a public utility that is a natural 291 gas, water-works, or sewage disposal system company, or that is 292 an electric light company , natural gas, water-works, or sewage 293 disposal system company that chooses not to file a forecasted 294 test period under section 4909.18 of the Revised Code, the 295 valuation as of the date certain of the property of the public 296 utility that is used and useful or, with respect to a natural 297 gas, water-works, or sewage disposal system company that chooses 298 not to file a forecasted test period under section 4909.18 of 299 the Revised Code, is projected to be used and useful as of the 300 date certain, in rendering the public utility service for which 301 rates are to be fixed and determined.

302 (b) With respect to an electric light company , natural 303 gas, water-works, or sewage disposal system company that chooses 304 to file a forecasted test period under section 4909.18 of the 305 Revised Code, the valuation of the property of the utility that 306 is projected to be used and useful during the forecasted test 307 period in rendering the public utility service for which rates 308 are to be fixed and determined.

309 (c) The valuation so determined under division (A)(1) of 310 this section for any public utility shall be the total value as 311 set forth in division (B)(8) of section 4909.042 of the Revised 312 Code and division (B)(9) of section 4909.05 of the Revised Code, 313 and a reasonable allowance for materials and supplies and a 314 reasonable allowance for cash working capital as determined by 315 the commission.

316 Sub.

103 Page136th 12G.A. As Passed by the Senate (2) A fair and reasonable rate of return to the utility on 317 the valuation as determined in division (A)(1) of this section;

318reasonable (3)rates, Thefares, dollartolls, annualrentals, return to which the utility is 319 entitled by applying the fair and reasonablecharges, rateshall ofdetermine: return as 320 determined under division (A)(2) of this section to the 321 valuation of the utility determined under division (A)(1) of 322 this section;

323(1)(a) (4)With Therespect costto 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 utilityRevised Code, the valuation as of renderingthe date certain of the publicproperty 324of the public utility servicethat foris theused 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 usedunder forsection 4909.18 of the determinationRevised 325Code, underis divisionprojected (C)(1)to be used and useful as of thisthe sectiondate bycertain, in rendering the public utility duringservice thefor 326which testrates period.are to be fixed and determined.

327(b) Federal,With state,respect andto localan taxeselectric imposedlight oncompany or, measurednatural bygas, 328water-works, netor incomesewage may,disposal insystem thecompany discretion of the commission, be computed 329 by the normalization method of accounting, provided the utility 330 maintains accounting reserves that reflectchooses differencesto betweenfile 331 taxes actually payable and taxes on a normalizedforecasted basis,test providedperiod 332under thatsection no4909.18 determinationof as to the treatmentRevised inCode, the rate-makingvaluation 333 process of suchthe taxesproperty shall be made that will result in loss of 334 any tax depreciation or other tax benefit to which the utility 335 would otherwise be entitled, and further provided that suchis taxprojected 336 benefit as redounds to the utility as a result of such a 337 computation may not be retained by the company, used toand funduseful anyduring 338 dividend or distribution, or utilized for any purpose other than 339 the defrayalforecasted oftest theperiod operatingin expensesrendering of the public utility andservice thefor 340which defrayalrates ofare theto expensesbe offixed theand utilitydetermined. in connection with 341 construction work.

342(c) (B) The commissionvaluation shallso computedetermined theunder grossdivision annual(A)(1) revenuesof 343this tosection whichfor theany public utility isshall entitledbe bythe addingtotal thevalue dollaras amountset forth in division (B)(8) of 344section return4909.042 underof the Revised Code and division (A)(3)(B)(9) of this section to4909.05 of the cost,Revised Code, and a reasonable allowance for 345materials theand testsupplies periodand useda reasonable allowance for thecash determinationworking undercapital divisionas (C)(1)determined 346by Sub.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.

Sub.

103 Page136th 13G.A. As Passed by the Senate of this section, of rendering the public utility service under 347 division (A)(4) of this section.

348 (C)(1) Except as provided in division (D) of this section, 349 the revenues and expenses of the utility shall be determined 350 during a test period as follows:

351 (a) Electric light companies , natural gas, water-works, 352 and sewage disposal companies may propose a forecasted test 353 period.

If the company proposes a forecasted test period, the 354 company shall propose annual base rates for three consecutive 355 twelve-month periods in a single forecasted test period 356 application.

357 During the first twelve-month period, the company shall 358 propose a reasonably forecasted rate base using a thirteen-month 359 average, revenues, and expenses for the first twelve months that 360 new base rates will be in effect.

361 During the second twelve-month period, the base rate 362 revenue requirement shall be adjusted for the return of, and 363 return on, incremental rate base additions approved by the 364 commission in the initial application.

During the third twelve-twelve-month 365 month period, the base rate revenue requirement shall be 366 adjusted for the return of and return on incremental rate base 367 additions approved by the commission in the initial application.

368 For each twelve-month period, forecasted plant investment, 369 forecasted revenues, and forecasted expenses versus actual 370 investment, actual revenues, and actual expenses shall be trued 371 up via a cost recovery mechanism approved by the commission.

372 Each true-up process shall include an adjustment to actual 373 for the rate of return that the company is authorized to earn on 374 the actual investments made.

The company shall provide the 375commission Sub.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, Sub.

103 Page136th 14G.A. As Passed by the Senate commission with actual financial information during the true-up 376 process to ensure accuracy.

Asschedule, partclassification, 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 true-upservice process,is, theor 377will commissionbe, shallinadequate, includeor onlythat ratethe basemaximum componentsrates, thatcharges, havetolls, 378or beenrentals foundchargeable by theany commissionsuch public utility are insufficient to beyield usedreasonable compensation for the service rendered, and usefulare inunjust renderingand 379unreasonable, publicthe utilitycommission service.shall:

380(1) AtWith due regard among other things to the endvalue of all property of the lastpublic testutility period,as determined under division (A)(1) of this section, excluding from such value the companyvalue shallof fileany 381franchise 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 ratemonopoly caseor merger, with due regard in determining the dollar annual return under division (A)(3) of this section 4909.18to the necessity of making reservation out of the Revisedincome Code.for surplus, depreciation, and contingencies, and;

382(2) (b)With Alldue utilities,regard exceptto forall electricsuch lightother companiesmatters ,as 383are naturalproper, gas,according water-works,to orthe sewagefacts disposalin systemeach companiescase, 384(a) thatIncluding choosea fair and reasonable rate of return determined by the commission with reference to filea undercost divisionof (C)(1)(a)debt equal to the actual embedded cost of thisdebt section,of 385such shallpublic proposeutility, a(b) testBut periodnot including the portion of any periodic rental or use payments representing that cost of property that is anyincluded twelve-monthin periodthe 386valuation beginningreport notunder moredivisions than(B)(4) sixand months(5) priorof tosection 4909.042 of the dateRevised Code and divisions (B)(4) and (5) of section 4909.05 of the 387Revised applicationCode, isfix filedand determine the just and endingreasonable notrate, morefare, thancharge, ninetoll, monthsrental, 388or subsequentservice to be rendered, charged, demanded, exacted, or collected for the performance or rendition of the service that date.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.

389After (2)such Fordetermination utilitiesand filingorder underno divisionchange (C)(1)(b)in ofthe thisrate, 390fare, section,toll, thecharge, daterental, certainschedule, shallclassification, beor notservice latershall thanbe themade, daterendered, ofcharged, 391demanded, filing,exacted, exceptor thatchanged itby shallsuch be,public forutility awithout naturalthe gas,order water-works,of 392the orcommission, sewageand disposalany systemother company,rate, notfare, latertoll, thancharge, therental, endclassification, ofor theservice 393is testprohibited. period.

394(F) (D)Upon Utilitiesapplication filingof underany divisionperson (C)(1)(b)or ofany thispublic 395utility, sectionand mayafter proposenotice adjustments to the revenuesparties andin expensesinterest forand 396opportunity anyto changesbe thatheard are,as duringprovided thein testChapters period4901., or4903., the4905., twelve-month4907., 3974909., period4921., immediatelyand following4923. the test period, reasonably 398 expected to occur.

Theof utilitythe shallRevised identifyCode andfor quantify,other 399hearings, individually,has been given, the commission may rescind, alter, or amend an order fixing any proposedrate, adjustments.fare, toll, charge, rental, classification, or service, or any other order made by the commission.

TheCertified commissioncopies shallof 400such incorporateorders theshall proposedbe adjustmentsserved intoand thetake determinationeffect ifas 401provided thefor adjustmentsoriginal areorders. just and reasonable.

402Sec. (E) When the commission is of the opinion, after hearing 403 and after making the determinations under divisions (A) and (B) 404 Sub.

S.

B.

No.

103 Page 15 As Passed by the Senate of this section, that any rate, fare, charge, toll, rental, 405 schedule, classification, or service, or any joint rate, fare, 406 charge, toll, rental, schedule, classification, or service 407 rendered, charged, demanded, exacted, or proposed to be 408 rendered, charged, demanded, or exacted, is, or will be, unjust, 409 unreasonable, unjustly discriminatory, unjustly preferential, or 410 in violation of law, that the service is, or will be, 411 inadequate, or that the maximum rates, charges, tolls, or 412 rentals chargeable by any such public utility are insufficient 413 to yield reasonable compensation for the service rendered, and 414 are unjust and unreasonable, the commission shall:

415 (1) With due regard among other things to the value of all 416 property of the public utility as determined under division (A) 417 (1) of this section, excluding from such value the value of any 418 franchise or right to own, operate, or enjoy the same in excess 419 of the amount, exclusive of any tax or annual charge, actually 420 paid to any political subdivision of the state or county, as the 421 consideration for the grant of such franchise or right, and 422 excluding any value added to such property by reason of a 423 monopoly or merger, with due regard in determining the dollar 424 annual return under division (A)(3) of this section to the 425 necessity of making reservation out of the income for surplus, 426 depreciation, and contingencies, and;

427 (2) With due regard to all such other matters as are 428 proper, according to the facts in each case, 429 (a) Including a fair and reasonable rate of return 430 determined by the commission with reference to a cost of debt 431 equal to the actual embedded cost of debt of such public 432 utility, 433 (b) But not including the portion of any periodic rental 434 Sub.

S.

B.

No.

103 Page 16 As Passed by the Senate or use payments representing that cost of property that is 435 included in the valuation report under divisions (B)(4) and (5) 436 of section 4909.042 of the Revised Code and divisions (B)(4) and 437 (5) of section 4909.05 of the Revised Code, fix and determine 438 the just and reasonable rate, fare, charge, toll, rental, or 439 service to be rendered, charged, demanded, exacted, or collected 440 for the performance or rendition of the service that will 441 provide the public utility the allowable gross annual revenues 442 under division (B) of this section, and order such just and 443 reasonable rate, fare, charge, toll, rental, or service to be 444 substituted for the existing one.

After such determination and 445 order no change in the rate, fare, toll, charge, rental, 446 schedule, classification, or service shall be made, rendered, 447 charged, demanded, exacted, or changed by such public utility 448 without the order of the commission, and any other rate, fare, 449 toll, charge, rental, classification, or service is prohibited.

450 (F) Upon application of any person or any public utility, 451 and after notice to the parties in interest and opportunity to 452 be heard as provided in Chapters 4901., 4903., 4905., 4907., 453 4909., 4921., and 4923.

of the Revised Code for other hearings, 454 has been given, the commission may rescind, alter, or amend an 455 order fixing any rate, fare, toll, charge, rental, 456 classification, or service, or any other order made by the 457 commission.

Certified copies of such orders shall be served and 458 take effect as provided for original orders.

459 Sec.

In fixing the just, reasonable, and 460 compensatory rates, joint rates, tolls, classifications, 461 charges, or rentals to be observed and charged for service by 462 any public utility, the public utilities commission shall, in 463 action upon an application filed pursuant to section 4909.18 of 464 the Revised Code, require a public utility to file a report 465 Sub.

103 Page136th 17G.A. As Passed by the Senate showing the proportionate amounts of the valuation of the 466 property of the utility, as determined under section 4909.042 or 467 4909.05 of the Revised Code, and the proportionate amounts of 468 the revenues and expenses of the utility that are proposed to be 469 considered as attributable to the service area involved in the 470 application.

471the "Valuation,"Revised Code, require a public utility to file a report showing the proportionate amounts of the valuation of the property of the utility, as useddetermined inunder thissection section,4909.042 mayor include: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.

472"Valuation," (A) With respect to a public utility that is a natural 473 gas, water-works, or sewage disposal system company, projected 474 valuation as ofused thein datethis certain,section, ifmay applicableinclude: because of a 475 future date certain under section 4909.15 of the Revised Code;

476(A) (B) With respect to ana electricpublic lightutility companythat ,is a natural 477 gas, water-works, or sewage disposal system companycompany, thatprojected choosesvaluation 478as toof filethe adate forecastedcertain, testif periodapplicable underbecause section 4909.18 of thea 479future Reviseddate Code,certain theunder valuationsection and4909.15 valueof during the forecastedRevised testCode; 480 period.

481(B) Sec.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.

(A) Except for a cost recovery mechanism 482 provided under division (C)(1)(a) of section 4909.15 of the 483 Revised Code, a natural gas, water-works, or sewage disposal 484 system company that applies for a forecasted test period under 485 that division shall not request, and the public utilities 486 commission shall not approve, any rider or other cost recovery 487 mechanism to recover capital investment that would be in 488 addition to the company's base rates.

489 (B) Upon rates going into effect based on a company's use 490 of a forecasted test period under division (C)(1)(a) of section 491 4909.15 of the Revised Code, any riders and other cost recovery 492 mechanisms previously approved to recover capital investment for 493 the company shall terminate.

494(C) Sub.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.

S.Sec.

B.

No.

103 Page 18 As Passed by the Senate (C) Notwithstanding divisions (A) and (B) of this section, 495 a natural gas company may still apply for, or continue 496 collecting from, an infrastructure development rider under 497 section 4929.161 of the Revised Code.

498 Sec.

An electric light company , natural gas, 499 water-works, or sewage disposal system company proposing a 500 forecasted test period under division (C)(1)(a) of section 501 4909.15 of the Revised Code shall provide any financial 502 information required by that section from the company's full 503 books.

The public utilities commission shall ensure appropriate 504 protections against the disclosure of the company's trade 505 secrets or proprietary information.

506 Sec.

(A) As used in this section and section 507 4909.174 of the Revised Code:

508 (1) "Customer-owned water service line" means the water 509 service line connected to the water-works company's water 510 service line at the curb of a customer's property.

511 (2) "Water-works company" means an entity defined under 512 division (G) of section 4905.03 of the Revised Code that is a 513 public utility under section 4905.02 of the Revised Code.

514 (B) A water-works company may do any of the following:

515 (1) Replace lead customer-owned water service lines 516 concurrently with a scheduled utility main replacement project, 517 an emergency replacement, or company-initiated lead water 518 service line replacement program;

519 (2) Replace lead customer-owned water service lines when 520 mandated or ordered to replace such lines by law or a state or 521 federal regulatory agency;

522 Sub.

103 Page136th 19G.A. As Passed by the Senate (3) Replace customer-owned water service lines of other 523 composition when mandated or ordered to replace such lines by 524 law or a state or federal regulatory agency.

525(3) (C)Replace If a water-works company replaces customer-owned water 526 service lines under this section, then the company shall include 527 the cost of theother replacementcomposition ofwhen themandated wateror serviceordered lines, 528 including the cost of replacement of both company side and 529 customer-owned water service lines and the cost to evaluatereplace 530such customer-owned water service lines ofby unknownlaw composition, in 531 the valuation report of the property of the company as required 532 under division (B)(9) of section 4909.042 the Revised Code or 533 division (B)(6) of section 4909.05 of the Revised Code, 534 whichever is applicable, for inclusion in a ratestate caseor underfederal thisregulatory 535agency. chapter.

536(C) (D)If Thea water-works company replaces customer-owned water service customerlines whounder isthis responsiblesection, forthen the 537company 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 linelines thatand wasthe replacedcost to evaluate customer-owned water service lines of unknown composition, in the valuation report of the property of the company as required under thisdivision 538(B)(9) of section shall4909.042 holdthe legalRevised titleCode toor division (B)(6) of section 4909.05 of the replacedRevised waterCode, servicewhichever 539is line.applicable, for inclusion in a rate case under this chapter.

540(D) Sec.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.

(A) A water-works company shall reimburse a 541 customer who replaces the customer's customer-owned water 542 service line, if both of the following occur:

543 (1) The company confirms that the customer-owned water 544 service line was composed of lead or other composition that was 545 mandated or ordered to be replaced by law or a state or federal 546 regulatory agency;

547 (2) The customer submits the reimbursement request to the 548 company not later than twelve months after the completion of the 549 water line replacement.

550 (B) A water-works company that provides a reimbursement to 551a Sub.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.

S.Sec.

B.

No.

103 Page 20 As Passed by the Senate a customer under this section shall include the reimbursement 552 amount in the valuation report of the property of the company as 553 required under division (B)(9) of section 4909.042 of the 554 Revised Code or (B)(6) of section 4909.05 of the Revised Code, 555 whichever is applicable, for inclusion in a rate case under this 556 chapter.

557 Sec.

Any public utility desiring to establish any 558 rate, joint rate, toll, classification, charge, or rental, or to 559 modify, amend, change, increase, or reduce any existing rate, 560 joint rate, toll, classification, charge, or rental, or any 561 regulation or practice affecting the same, shall file a written 562 application with the public utilities commission.

Except for 563 actions under section 4909.16 of the Revised Code, no public 564 utility may issue the notice of intent to file an application 565 pursuant to division (B) of section 4909.43 of the Revised Code 566 to increase any existing rate, joint rate, toll, classification, 567 charge, or rental, until a final order under this section has 568 been issued by the commission on any pending prior application 569 to increase the same rate, joint rate, toll, classification, 570 charge, or rental or until two hundred seventy-five days after 571 filing such application, whichever is sooner.

Such application 572 shall be verified by the president or a vice-president and the 573 secretary or treasurer of the applicant.

Such application shall 574 contain a schedule of the existing rate, joint rate, toll, 575 classification, charge, or rental, or regulation or practice 576 affecting the same, a schedule of the modification amendment, 577 change, increase, or reduction sought to be established, and a 578 statement of the facts and grounds upon which such application 579 is based.

If such application proposes a new service or the use 580 of new equipment, or proposes the establishment or amendment of 581 a regulation, the application shall fully describe the new 582service or equipment, or the regulation proposed to be Sub.

103 Page136th 21G.A. As Passed by the Senate service or equipment, or the regulation proposed to be 583 established or amended, and shall explain how the proposed 584 service or equipment differs from services or equipment 585 presently offered or in use, or how the regulation proposed to 586 be established or amended differs from regulations presently in 587 effect.

Theestablished applicationor amended, and shall provideexplain suchhow additionalthe 588proposed informationservice asor theequipment commissiondiffers mayfrom requireservices or equipment presently offered or in itsuse, discretion.or how the regulation proposed to be established or amended differs from regulations presently in effect.

IfThe 589application theshall commissionprovide determines that such applicationadditional isinformation notas for an 590 increase in any rate, joint rate, toll, classification, charge, 591 or rental, the commission may permitrequire the filing of the schedule 592 proposed in theits applicationdiscretion. and fix the time when such schedule 593 shall take effect.

If it appears to the commission determines that thesuch 594 proposals in the application mayis benot unjust or unreasonable, the 595 commission shall set the matter for hearingan andincrease shallin giveany 596rate, noticejoint ofrate, suchtoll, hearingclassification, bycharge, sendingor writtenrental, notice of the datecommission setmay 597permit for the hearingfiling to the public utility and publishing notice of 598 the hearingschedule oneproposed time in athe newspaperapplication ofand generalfix circulation in 599 each county in the servicetime areawhen affectedsuch byschedule theshall application.take effect.

AtIf 600it suchappears hearing,to the burdencommission ofthat proofthe toproposals showin thatthe application may be unjust or unreasonable, the proposalscommission inshall 601set the applicationmatter arefor justhearing and reasonable shall begive uponnotice of such hearing by sending written notice of the date set for the hearing to the public 602utility 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.

AfterAt such hearing, the commissionburden shall,of whereproof 603to practicable,show issuethat anthe appropriateproposals orderin withinthe sixapplication monthsare fromjust 604and thereasonable dateshall thebe applicationupon wasthe filed.public utility.

605After Ifsuch hearing, the commission determinesshall, thatwhere saidpracticable, applicationissue is for 606 an increaseappropriate inorder anywithin rate,six jointmonths rate,from toll, classification, 607 charge, or rental there shall also, unless otherwise ordered by 608 the commission,date be filed with the application inwas duplicatefiled. the 609 following exhibits:

610If (A)the Acommission reportdetermines ofthat itssaid propertyapplication usedis andfor useful,an or,increase within 611any respectrate, tojoint arate, naturaltoll, gas,classification, water-works,charge, or sewagerental disposalthere systemshall 612also, companyunless thatotherwise choosesordered notby tothe filecommission, abe forecastedfiled testwith periodthe underapplication 613in Sub.duplicate the following exhibits:

S.(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.(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;

No.(C) A statement of the income and expense anticipated under the application filed;

103(D) PageA 22statement As Passed by the Senate division (C)(1)(a) of sectionfinancial 4909.15condition ofsummarizing theassets, Revisedliabilities, Code, 614 projected to be used and useful,net asworth; of the date certain, or 615 during the forecasted test period, if the application is filed 616 under division (C)(1)(a) of section 4909.15 of the Revised Code, 617 in rendering the service referred to in such application, as 618 provided in sections 4909.042 and 4909.05 of the Revised Code;

619(E) (B)Such A complete operating statement of its last fiscal 620 year, showing in detail all its receipts, revenues, and incomes 621 from all sources, all of its operating costs and other 622information expenditures,as and any analysis such public utility deems 623 applicable to the mattercommission referredmay torequire in saidits application;discretion.

624Sec. (C) A statement of the income and expense anticipated 625 under the application filed;

626 (D) A statement of financial condition summarizing assets, 627 liabilities, and net worth;

628 (E) Such other information as the commission may require 629 in its discretion.

630 Sec.

Not later than December 31, 2029, and at 631 least every three years thereafter, each natural gas company 632 that provides utility service to two hundred fifty thousand or 633 more customers shall file a rate case application under section 634 4909.18 of the Revised Code.

635 Sec.

(A) If the proceeding on an application 636 filed with the public utilities commission under section 4909.18 637 of the Revised Code by an electric light company , natural gas, 638 water-works, or sewage disposal system company requesting an 639 increase on any rate, rate mechanism, joint rate, toll, 640 classification, charge, or rental or requesting a change in a 641 regulation or practice affecting the same has not been concluded 642and 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.

103 Page136th 23G.A. As Passed by the Senate and an opinion and order entered pursuant to section 4909.19 of 643 the Revised Code at the expiration of two hundred seventy-five 644 days from the date of the filing of the application, the company 645 may request a temporary increase, and any party to the 646 proceeding may request a temporary decrease, which shall go into 647 effect and remain in effect until modified in accordance with 648 the commission's order based upon the merits of the application.

649date (B)of Notthe laterfiling thanof threethe hundredapplication, sixtythe dayscompany frommay therequest datea 650temporary ofincrease, filingand theany applicationparty asto establishedthe byproceeding sectionmay 4909.193request ofa 651temporary thedecrease, Revisedwhich Code,shall thego commissioninto shalleffect issueand anremain orderin toeffect 652until approve,modified deny,in oraccordance modifywith anthe applicationcommission's filedorder underbased sectionupon 653the 4909.18merits of the Revisedapplication. Code.

If(B) theNot commissionlater doesthan not issue an 654 order within three hundred sixty days afterfrom the date of filing 655the application as established by section 4909.193 of the application,Revised Code, the applicationcommission shall beissue deemedan approvedorder byto 656approve, operationdeny, or modify an application filed under section 4909.18 of law.the Revised Code.

AIf temporarythe increasecommission ordoes decrease under this 657 section shall not exceedissue thean midpointorder ofwithin thethree rateshundred recommendedsixty 658days inafter the staffdate reportof filedfiling pursuant to section 4909.19 of the 659application, Revisedthe Codeapplication and shall be subjectdeemed toapproved reconciliationby andoperation refund.of law.

660A (C)temporary Nothingincrease inor decrease under this section shall benot construedexceed tothe mitigatemidpoint 661 any duty of the commissionrates torecommended issuein athe finalstaff orderreport underfiled sectionpursuant 662to section 4909.19 of the Revised Code.Code and shall be subject to reconciliation and refund.

663(C) Sec.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.

664 (1) "Ancillary service" means any function necessary to 665 the provision of electric transmission or distribution service 666 to a retail customer and includes, but is not limited to, 667 scheduling, system control, and dispatch services;

reactive 668 supply from generation resources and voltage control service;

669 reactive supply from transmission resources service;

regulation 670 service;

671 operating reserve-spinning reserve service;

operating reserve-reserve-supplemental 672reserve Sub.service;

S.

B.

No.

103 Page 24 As Passed by the Senate supplemental reserve service;

back-up supply 673 service;

dynamic 674 scheduling;

and network stability 675 service.

676 (2) "Billing and collection agent" means a fully 677 independent agent, not affiliated with or otherwise controlled 678 by an electric utility, electric services company, electric 679 cooperative, or governmental aggregator subject to certification 680 under section 4928.08 of the Revised Code, to the extent that 681 the agent is under contract with such utility, company, 682 cooperative, or aggregator solely to provide billing and 683 collection for retail electric service on behalf of the utility 684 company, cooperative, or aggregator.

685 (3) "Certified territory" means the certified territory 686 established for an electric supplier under sections 4933.81 to 687 4933.90 of the Revised Code.

688 (4) "Competitive retail electric service" means a 689 component of retail electric service that is competitive as 690 provided under division (B) of this section.

691 (5) "Electric cooperative" means a not-for-profit electric 692 light company that both is or has been financed in whole or in 693 part under the "Rural Electrification Act of 1936," 49 Stat.

694 1363, 7 U.S.C.

901, and owns or operates facilities in this 695 state to generate, transmit, or distribute electricity, or a 696 not-for-profit successor of such company.

697 (6) "Electric distribution utility" means an electric 698 utility that supplies at least retail electric distribution 699 service and does not own or operate an electric generating 700 facility.

701 Sub.

103 Page136th 25G.A. As Passed by the Senate (7) "Electric light company" has the same meaning as in 702 section 4905.03 of the Revised Code and includes an electric 703 services company.

704(7) (8) "Electric loadlight center"company" has the same meaning as in 705 section 4933.814905.03 of the Revised Code.Code and includes an electric services company.

706(8) (9) "Electric servicesload company"center" meanshas anthe electricsame lightmeaning 707as company that is engaged on a for-profit or not-for-profit basis 708 in thesection business4933.81 of supplying or arranging for the supplyRevised ofCode. only 709 a competitive retail electric service in this state.

(9) "Electric 710 services company" includesmeans aan powerelectric marketer,light powercompany broker,that 711is aggregator,engaged on a for- profit or independentnot-for-profit powerbasis producerin butthe excludesbusiness anof 712supplying electricor cooperative,arranging municipalfor electricthe utility,supply governmentalof 713only aggregator,a orcompetitive billingretail andelectric collectionservice agent.in this state.

714"Electric (10)services "Electriccompany" supplier"includes hasa thepower samemarketer, meaningpower asbroker, inaggregator, 715or sectionindependent 4933.81power ofproducer thebut Revisedexcludes Code.an electric cooperative, municipal electric utility, governmental aggregator, or billing and collection agent.

716(10) (11) "Electric utility"supplier" means an electric light company 717 that has athe certifiedsame territorymeaning andas is engaged on a for-profit 718 basis in thesection business4933.81 of supplyingthe atRevised leastCode. a noncompetitive 719 retail electric service in this state.

(11) "Electric utility" 720means excludesan aelectric municipallight electriccompany utilitythat orhas a billingcertified territory and 721is collectionengaged agent.on a for-profit basis in the business of supplying at least a noncompetitive retail electric service in this state.

722"Electric (12)utility" "Firmexcludes electrica service"municipal means electric serviceutility otheror 723a thanbilling nonfirmand electriccollection service.agent.

724(12) (13)"Firm "Governmentalelectric aggregator"service" means a legislative 725 authority of a municipal corporation, a board of township 726 trustees, or a board of county commissioners acting as an 727 aggregator for the provision of a competitive retail electric 728 service underother authoritythan conferrednonfirm underelectric sectionservice. 4928.20 of the 729 Revised Code.

730(13) Sub."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.

S.(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.

B.A person has knowledge of circumstances when the person is aware that such circumstances probably exist.

No.(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.

103 Page 26 As Passed by the Senate (14) A person acts "knowingly," regardless of the person's 731 purpose, when the person is aware that the person's conduct will 732 probably cause a certain result or will probably be of a certain 733 nature.

A person has knowledge of circumstances when the person 734 is aware that such circumstances probably exist.

735 (15) "Level of funding for low-income customer energy 736 efficiency programs provided through electric utility rates" 737 means the level of funds specifically included in an electric 738 utility's rates on October 5, 1999, pursuant to an order of the 739 public utilities commission issued under Chapter 4905.

740 of the Revised Code and in effect on October 4, 1999, for the 741 purpose of improving the energy efficiency of housing for the 742 utility's low-income customers.

The term excludes the level of 743 any such funds committed to a specific nonprofit organization or 744 organizations pursuant to a stipulation or contract.

745 (16) "Low-income customer assistance programs" means the 746 percentage of income payment plan program, the home energy 747 assistance program, the home weatherization assistance program, 748 and the targeted energy efficiency and weatherization program.

749 (17) "Market development period" for an electric utility 750 means the period of time beginning on the starting date of 751 competitive retail electric service and ending on the applicable 752 date for that utility as specified in section 4928.40 of the 753 Revised Code, irrespective of whether the utility applies to 754 receive transition revenues under this chapter.

755 (18) "Market power" means the ability to impose on 756 customers a sustained price for a product or service above the 757 price that would prevail in a competitive market.

758 (19) "Mercantile customer" means a commercial or 759 Sub.

103 Page136th 27G.A. As Passed by the Senate industrial customer if the electricity consumed is for 760 nonresidential use and the customer consumes more than seven 761 hundred thousand kilowatt hours per year or is part of a 762 national account involving multiple facilities in one or more 763 states.

764(19) (20)"Mercantile "Municipalcustomer" electric utility" means a municipalcommercial 765or corporationindustrial thatcustomer ownsif the electricity consumed is for nonresidential use and the customer consumes more than seven hundred thousand kilowatt hours per year or operatesis facilitiespart toof generate,a 766national transmit,account involving multiple facilities in one or distributemore electricity.states.

767(20) (21)"Municipal "Noncompetitive retail electric service"utility" means a 768municipal componentcorporation of retail electric service that isowns noncompetitiveor asoperates 769facilities providedto undergenerate, divisiontransmit, (B)or ofdistribute thiselectricity. section.

770(21) (22)"Noncompetitive "Nonfirmretail electric service" means electric service 771 provided pursuant to a schedulecomponent filed under section 4905.30 of 772retail theelectric Revisedservice Codethat oris pursuantnoncompetitive toas anprovided arrangement under sectiondivision 773(B) 4905.31 of thethis Revisedsection. Code, which schedule or arrangement 774 includes conditions that may require the customer to curtail or 775 interrupt electric usage during nonemergency circumstances upon 776 notification by an electric utility.

777(22) (23)"Nonfirm "Percentageelectric ofservice" incomemeans paymentelectric planservice arrears"provided meanspursuant 778to fundsa eligibleschedule forfiled collectionunder throughsection 4905.30 of the percentageRevised ofCode incomeor 779pursuant paymentto planan rider,arrangement butunder uncollectedsection as4905.31 of Julythe 1,Revised 2000.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.

780(23) (24)"Percentage "Person"of hasincome thepayment sameplan meaningarrears" asmeans infunds sectioneligible 1.59for ofcollection 781through the Revisedpercentage Code.of income payment plan rider, but uncollected as of July 1, 2000.

782(24) (25)"Person" "Advancedhas energy project" means any technologies, 783 products, activities, or management practices or strategies that 784 facilitate the generationsame ormeaning useas ofin electricitysection or1.59 energy and 785 that reduce or support the reduction of energy consumption or 786 support the productionRevised ofCode. clean, renewable energy for 787 industrial, distribution, commercial, institutional, 788 Sub.

S.(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.

B."Advanced energy project" also includes any project described in division (A), (B), or (C) of section 4928.621 of the Revised Code.

No.(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.

103"Regulatory Pageassets" 28includes, As Passed by the Senate governmental, research, not-for-profit, or residential energy 789 users, including, but is not limited to, advancedall energydeferred resourcesdemand- 790side andmanagement renewablecosts; energy resources.

"Advancedall energydeferred project"percentage also 791 includes any project described in division (A), (B), or (C) of 792income sectionpayment 4928.621plan ofarrears; the Revised Code.

793post-in-service (26)capitalized "Regulatorycharges assets"and means the unamortized net 794 regulatory assets thatrecognized arein capitalizedconnection orwith deferredstatement on the 795 regulatory books of thefinancial electric utility, pursuant to an order 796 or practice of the public utilities commission or pursuant to 797 generally accepted accounting principlesstandards asno. a result of a prior 798 commission rate-making decision, and that would otherwise have 799 been charged to expense as incurred or would not have been 800 capitalized or otherwise deferred for future regulatory 801 consideration absent commission action.

"Regulatory assets" 802 includes, but is not limited to, all deferred demand-side 803 management costs;

all deferred percentage of income payment plan 804 arrears;

post-in-service capitalized charges and assets 805 recognized in connection with statement of financial accounting 806 standards no.

807 future nuclear decommissioning costs and fuel disposal costs as 808 those costs have been determined by the commission in the 809 electric utility's most recent rate or accounting application 810 proceeding addressing such costs;

the undepreciated costs of 811 safety and radiation control equipment on nuclear generating 812 plants owned or leased by an electric utility;

and fuel costs 813 currently deferred pursuant to the terms of one or more 814 settlement agreements approved by the commission.

815 (27) "Retail electric service" means any service involved 816 in supplying or arranging for the supplySub. of electricity to 817 ultimate consumers in this state, from the point of generation 818 to the point of consumption.

For the purposes of this chapter, 819 Sub.

103 Page136th 29G.A. As Passed by the Senate retail electric service includes one or more of the following 820 "service components":

generationsupply service,of aggregationelectricity service,to 821ultimate powerconsumers marketingin service,this powerstate, brokeragefrom service,the transmissionpoint 822of service,generation distributionto service,the ancillarypoint service,of meteringconsumption. 823 service, and billing and collection service.

824For (28)the "Startingpurposes date of competitivethis chapter, retail electric 825service service"includes meansone Januaryor 1,more 2001.of the following "service components":

826generation (29)service, "Customer-generator"aggregation meansservice, apower usermarketing ofservice, apower netbrokerage service, transmission service, distribution service, ancillary service, metering 827service, system.and billing and collection service.

828(28) (30)"Starting "Netdate metering"of meanscompetitive measuringretail the difference in an 829 applicable billing period between the electricity supplied by an 830 electric serviceservice" providermeans andJanuary the1, electricity2001. generated by a 831 customer-generator that is fed back to the electric service 832 provider.

833(29) (31)"Customer-generator" "Net metering system" means a facilityuser for the 834 production of electricala energynet thatmetering doessystem. all of the following:

835(30) (a)"Net Usesmetering" asmeans itsmeasuring fuelthe eitherdifference solar,in wind,an biomass,applicable landfillbilling 836period gas,between orthe hydropower,electricity orsupplied usesby aan microturbineelectric orservice provider and the electricity generated by a fuelcustomer- cell;generator that is fed back to the electric service provider.

837(31) (b)"Net Ismetering locatedsystem" onmeans a customer-generator'sfacility premises;for the production of electrical energy that does all of the following:

838(a) (c)Uses Operatesas inits parallelfuel witheither thesolar, electricwind, utility'sbiomass, 839landfill transmissiongas, andor distributionhydropower, facilities;or uses a microturbine or a fuel cell;

840(b) (d) Is intendedlocated primarilyon toa offset part or all of the 841 customer-generator's requirementspremises; for electricity.

For(c) anOperates 842in industrialparallel customer-generator with a net metering system that 843 has a capacity of less than twenty megawatts and uses wind as 844 energy, this means the net metering system was sized so as to 845 not exceed one hundred per cent of the customer-generator's 846 annual requirements for electric energyutility's attransmission theand timedistribution offacilities; 847 Sub.

S.(d) Is intended primarily to offset part or all of the customer-generator's requirements for electricity.

B.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.

No.(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:

103(a) PageThe 30facility Asis Passedinstalled or operated by the Senateowner interconnection.or by a third party under a contract, including a lease, purchase power agreement, or other service contract.

848(b) (32)The "Self-generator" means an entity in this state that 849 owns or hosts on property the entity controls an electric 850 generation facility thatconnects producesdirectly electricityto primarily for the 851 owner's consumptionside and that may provide any such excess 852 electricity to another entity, and that meets all of the 853electric following:meter.

854(c) (a) The facility isdelivers installedelectricity orto operatedthe byowner's theside ownerof orthe 855electric bymeter awithout thirdthe partyuse underof aan contract,electric includingdistribution autility's lease,or purchaseelectric 856cooperative's powerdistribution agreement,system or othertransmission servicesystem. contract.

857(33) (b)"Rate Theplan" facilitymeans connectsthe directlystandard toservice offer in effect on the owner'seffective sidedate of 858 the electricamendment meter.of this section by S.B.

859 (c) The facility delivers electricity to the owner's side 860 of the electric meter without the use of an electric 861 distribution utility's or electric cooperative's distribution 862 system or transmission system.

863 (33) "Rate plan" means the standard service offer in 864 effect on the effective date of the amendment of this section by 865 S.B.

866 (34) "Advanced energy resource" means any of the 867 following:

868 (a) Any method or any modification or replacement of any 869 property, process, device, structure, or equipment that 870 increases the generation output of an electric generating 871 facility to the extent such efficiency is achieved without 872 additional carbon dioxide emissions by that facility;

873 (b) Any distributed generation system consisting of 874 customer cogeneration technology;

875(c) Clean coal technology that includes a carbon-based product that is chemically altered Sub.

103 Page136th 31G.A. As Passed by the Senate (c) Clean coal technology that includes a carbon-based 876 product that is chemically altered before combustion to 877 demonstrate a reduction, as expressed as ash, in emissions of 878 nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or 879 sulfur trioxide in accordance with the American society of 880 testing and materials standard D1757A or a reduction of metal 881 oxide emissions in accordance with standard D5142 of that 882 society, or clean coal technology that includes the design 883 capability to control or prevent the emission of carbon dioxide, 884 which design capability the commission shall adopt by rule and 885 shall be based on economically feasible best available 886 technology or, in the absence of a determined best available 887 technology, shall be of the highest level of economically 888 feasible design capability for which there exists generally 889 accepted scientific opinion;

890before (d)combustion Advancedto nucleardemonstrate energya technologyreduction, consistingas expressed as ash, in emissions of 891nitrous generationoxide, IIImercury, 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 asthat definedincludes 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 nuclearabsence regulatoryof 892a commission;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;

or significant improvements 893 to existing facilities;

894 (e) Any fuel cell used in the generation of electricity, 895 including, but not limited to, a proton exchange membrane fuel 896 cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 897 solid oxide fuel cell;

898 (f) Advanced solid waste or construction and demolition 899 debris conversion technology, including, but not limited to, 900 advanced stoker technology, and advanced fluidized bed 901 gasification technology, that results in measurable greenhouse 902 gas emissions reductions as calculated pursuant to the United 903 States environmental protection agency's waste reduction model 904 (WARM);

905(g) Sub.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.

103 Page136th 32G.A. As Passed by the Senate (g) Demand-side management and any energy efficiency 906 improvement;

907January (h)1, Any1980, new,that retrofitted,is refueled, or repowered 908 generating facility located inwithin Ohio,this includingstate, arelies simpleupon orthe 909Ohio combined-cycleriver, naturaland gasoperates, generating facility or ais generatingrated 910to facilityoperate, thatat usesan biomass,aggregate coal,capacity modularof nuclear,forty or anymore othermegawatts; 911 fuel as its input;

912(vi) (i)Geothermal Anyenergy; uprated capacity of an existing electric 913 generating facility if the uprated capacity results from the 914 deployment of advanced technology.

915(vii) "AdvancedFuel energyderived resource"from doessolid notwastes, includeas adefined waste energy 916 recovery system that is, or has been, included in ansection energy3734.01 917 efficiency program of anthe electricRevised distributionCode, utilitythrough pursuantfractionation, 918biological todecomposition, requirementsor underother sectionprocess 4928.66that ofdoes thenot Revisedprincipally Code.involve combustion;

919(viii) (35)Biomass "Airenergy; contaminant source" has the same meaning as in 920 section 3704.01 of the Revised Code.

921(ix) (36)Energy "Cogenerationproduced technology"by meanscogeneration technology that 922is producesplaced electricityinto service on or before December 31, 2015, and usefulfor thermalwhich outputmore simultaneously.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;

923(x) (37)(a)Biologically "Renewablederived energymethane resource"gas; means any of the 924 following:

925(xi) (i)Heat Solarcaptured photovoltaicfrom a generator of electricity, boiler, or solarheat thermalexchanger energy;fueled by biologically derived methane gas;

926(xii) (ii)Energy Windderived energy;from nontreated by-products of the pulping process or wood manufacturing process, including bark, wood chips, sawdust, and lignin in spent pulping liquors.

927"Renewable (iii)energy Powerresource" producedincludes, bybut is not limited to, any fuel cell used in the generation of electricity, including, but not limited to, a hydroelectricproton facility;exchange membrane fuel cell, phosphoric acid fuel cell, molten carbonate fuel cell, or solid oxide fuel cell;

928 (iv) Power produced by a small hydroelectric facility, 929 which is a facility that operates, or is rated to operate, at an 930 aggregate capacity of less than six megawatts;

931 (v) Power produced by a run-of-the-river hydroelectric 932 Sub.

S.

B.

No.

103 Page 33 As Passed by the Senate facility placed in service on or after January 1, 1980, that is 933 located within this state, relies upon the Ohio river, and 934 operates, or is rated to operate, at an aggregate capacity of 935 forty or more megawatts;

936 (vi) Geothermal energy;

937 (vii) Fuel derived from solid wastes, as defined in 938 section 3734.01 of the Revised Code, through fractionation, 939 biological decomposition, or other process that does not 940 principally involve combustion;

941 (viii) Biomass energy;

942 (ix) Energy produced by cogeneration technology that is 943 placed into service on or before December 31, 2015, and for 944 which more than ninety per cent of the total annual energy input 945 is from combustion of a waste or byproduct gas from an air 946 contaminant source in this state, which source has been in 947 operation since on or before January 1, 1985, provided that the 948 cogeneration technology is a part of a facility located in a 949 county having a population of more than three hundred sixty-five 950 thousand but less than three hundred seventy thousand according 951 to the most recent federal decennial census;

952 (x) Biologically derived methane gas;

953 (xi) Heat captured from a generator of electricity, 954 boiler, or heat exchanger fueled by biologically derived methane 955 gas;

956 (xii) Energy derived from nontreated by-products of the 957 pulping process or wood manufacturing process, including bark, 958 wood chips, sawdust, and lignin in spent pulping liquors.

959 "Renewable energy resource" includes, but is not limited 960 Sub.

S.

B.

No.

103 Page 34 As Passed by the Senate to, any fuel cell used in the generation of electricity, 961 including, but not limited to, a proton exchange membrane fuel 962 cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 963 solid oxide fuel cell;

wind turbine located 964 in the state's territorial waters of Lake Erie;

methane gas 965 emitted from an abandoned or active coal mine;

waste energy 966 recovery system placed into service or retrofitted on or after 967 the effective date of the amendment of this section by S.B.

315 968 of the 129th general assembly, September 10, 2012, except that a 969 waste energy recovery system described in division (A)(38)(b) of 970 this section may be included only if it was placed into service 971 between January 1, 2002, and December 31, 2004;

storage facility 972 that will promote the better utilization of a renewable energy 973 resource;

or distributed generation system used by a customer to 974 generate electricity from any such energy.

975 "Renewable energy resource" does not include a waste 976 energy recovery system that is, or was, on or after January 1, 977 2012, included in an energy efficiency program of an electric 978 distribution utility pursuant to requirements under section 979 4928.66 of the Revised Code.

980 (b) As used in division (A)(37) of this section, 981 "hydroelectric facility" means a hydroelectric generating 982 facility that is located at a dam on a river, or on any water 983 discharged to a river, that is within or bordering this state or 984 within or bordering an adjoining state and meets all of the 985 following standards:

986 (i) The facility provides for river flows that are not 987 detrimental for fish, wildlife, and water quality,Sub. including 988 seasonal flow fluctuations as defined by the applicable 989 licensing agency for the facility.

990 Sub.

103 Page136th 35G.A. As Passed by the Senate (ii) The facility demonstrates that it complies with the 991 water quality standards of this state, which compliance may 992 consist of certification under Section 401 of the "Clean Water 993 Act of 1977," 91 Stat.

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," Stat.

1341, and 994 demonstrates that it has not contributed to a finding by this 995 state that the river has impaired water quality under Section 996 303(d) of the "Clean Water Act of 1977," 114 Stat.

870, 33 997 U.S.C.

998 (iii) The facility complies with mandatory prescriptions 999 regarding fish passage as required by the federal energy 1000 regulatory commission license issued for the project, regarding 1001 fish protection for riverine, anadromous, and catadromous fish.

1002 (iv) The facility complies with the recommendations of the 1003 Ohio environmental protection agency and with the terms of its 1004 federal energy regulatory commission license regarding watershed 1005 protection, mitigation, or enhancement, to the extent of each 1006 agency's respective jurisdiction over the facility.

1007 (v) The facility complies with provisions of the 1008 "Endangered Species Act of 1973," 87 Stat.

1531 1009 to 1544, as amended.

1010 (vi) The facility does not harm cultural resources of the 1011 area.

This can be shown through compliance with the terms of its 1012 federal energy regulatory commission license or, if the facility 1013 is not regulated by that commission, through development of a 1014 plan approved by the Ohio historic preservation office, to the 1015 extent it has jurisdiction over the facility.

1016 (vii) The facility complies with the terms of its federal 1017 energy regulatory commission license or exemption that are 1018 related to recreational access, accommodation, and facilities 1019or, Sub.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.

103 Page136th 36G.A. As Passed by the Senate or, if the facility is not regulated by that commission, the 1020 facility complies with similar requirements as are recommended 1021 by resource agencies, to the extent they have jurisdiction over 1022 the facility;

and thethat facilitysimultaneously providesuses accessthe torecovered waterheat to produce steam, provided that the 1023facility publicwas withoutplaced feeinto orservice charge.between January 1, 2002, and December 31, 2004;

1024(c) (viii)A The facility isthat notproduces recommendedsteam forfrom removalrecovered bywaste anyheat 1025from federala agencymanufacturing orprocess agencyand ofuses anythat state,steam, or transfers that steam to theanother extentfacility, theto 1026provide particularheat agencyto hasanother jurisdictionmanufacturing overprocess theor facility.to generate electricity.

1027(39) (c)"Smart Thegrid" standardsmeans incapital divisionsimprovements (A)(37)(b)(i) to (viii)an ofelectric 1028distribution thisutility's sectiondistribution doinfrastructure notthat applyimprove toreliability, aefficiency, smallresiliency, hydroelectricor facilityreduce 1029energy underdemand divisionor (A)(37)(a)(iv)use, including, but not limited to, advanced metering and automation of thissystem section.functions.

1030(40) (38)"Combined "Wasteheat energyand recoverypower system" means anythe coproduction of electricity and useful thermal energy from the 1031same following: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.

1032(41)(a) (a)"Green Aenergy" facilitymeans thatany generatesenergy electricitygenerated throughby theusing 1033an conversionenergy ofresource energythat fromdoes eitherone or more of the following:

1034 (i) ExhaustReleases heatreduced fromair enginespollutants, orthereby manufacturing,reducing 1035cumulative industrial,air commercial,emissions; or institutional sites, except for 1036 exhaust heat from a facility whose primary purpose is the 1037 generation of electricity;

1038 (ii) ReductionIs ofmore pressuresustainable inand gasreliable pipelinesrelative before gas is 1039 distributed through the pipeline, provided that the conversion 1040 of energy to electricitysome is achieved without using additional 1041 fossil fuels.

1042 (b) A"Green facilityenergy" atincludes aenergy stategenerated institutionusing of higher education 1043 as defined in section 3345.011 of the Revisedfollowing: Code that recovers 1044 waste heat from electricity-producing engines or combustion 1045 turbines and that simultaneously uses the recovered heat to 1046 produce steam, provided that the facility was placed into 1047 service between January 1, 2002, and December 31, 2004;

1048(i) Sub.Natural gas as a resource;

S.(ii) Nuclear reaction.

B.(42) "Energy storage" means electrical generation and storage performed by a distributed energy system connected battery.

No.(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:

103(a) PageConverts 37 As Passed by the Senatelinear (c)motion Aof facilityoscillators thatdirectly producesinto steamelectricity fromwithout recoveredthe wasteuse 1049of heat from a manufacturingflame process and uses that steam, or 1050spark; transfers that steam to another facility, to provide heat to 1051 another manufacturing process or to generate electricity.

1052(b) (39)Is "Smartdispatchable grid"with meansthe capitalability improvements to anvary 1053power electricoutput distributionacross utility'sall distributionloads; infrastructure that 1054 improve reliability, efficiency, resiliency, or reduce energy 1055 demand or use, including, but not limited to, advanced metering 1056 and automation of system functions.

1057(c) (40)Can "Combinedoperate heaton andmultiple power system" means the 1058 coproduction of electricity and useful thermal energy from the 1059 same fuel sourcetypes designedincluding torenewable achievefuels thermal-efficiencysuch levelsas 1060hydrogen, ofammonia, atand leastbiogas. sixty per cent, with at least twenty per cent of the 1061 system's total useful energy in the form of thermal energy.

1062(B) (41)(a)For "Greenthe energy"purposes meansof anythis energychapter, generateda retail electric service component shall be deemed a competitive retail electric service if the service component is competitive pursuant to a declaration by usinga 1063provision of the Revised Code or pursuant to an energyorder resourceof thatthe doespublic oneutilities orcommission moreauthorized under division (A) of section 4928.04 of the following:Revised Code.

1064Otherwise, (i)the Releasesservice reducedcomponent airshall pollutants,be therebydeemed reducinga 1065noncompetitive cumulativeretail airelectric emissions;service.

1066Sec. (ii) Is more sustainable and reliable relative to some 1067 fossil fuels.

1068 (b) "Green energy" includes energy generated using the 1069 following:

1070 (i) Natural gas as a resource;

1071 (ii) Nuclear reaction.

1072 (42) "Energy storage" means electrical generation and 1073 storage performed by a distributed energy system connected 1074 battery.

1075 Sub.

S.

B.

No.

103 Page 38 As Passed by the Senate (43) "Linear generator" means an integrated system 1076 consisting that may consist of oscillators, cylinders, 1077 electricity conversion equipment, and associated balance of 1078 plant components that meet the following criteria:

1079 (a) Converts the linear motion of oscillators directly 1080 into electricity without the use of a flame or spark;

1081 (b) Is dispatchable with the ability to vary power output 1082 across all loads;

1083 (c) Can operate on multiple fuel types including renewable 1084 fuels such as hydrogen, ammonia, and biogas.

1085 (B) For the purposes of this chapter, a retail electric 1086 service component shall be deemed a competitive retail electric 1087 service if the service component is competitive pursuant to a 1088 declaration by a provision of the Revised Code or pursuant to an 1089 order of the public utilities commission authorized under 1090 division (A) of section 4928.04 of the Revised Code.

Otherwise, 1091 the service component shall be deemed a noncompetitive retail 1092 electric service.

1093 Sec.

(A)(1) A competitive retail electric service 1094 supplied by an electric services company, or by an electric 1095 utility consistent with section 4928.141 of the Revised Code, 1096 shall not be subject to supervision and regulation by a 1097 municipal corporation under Chapter 743.

of the Revised Code or 1098 by the public utilities commission under Chapters 4901.

to 1099 4909., 4933., 4935., and 4963.

of theSub. Revised Code, except 1100 sections 4905.10 and 4905.31, division (B) of section 4905.33, 1101 and sections 4905.35 and 4933.81 to 4933.90;

except sections 1102 4905.06, 4935.03, 4963.40, and 4963.41 of the Revised Code only 1103 to the extent related to service reliability and public safety;

1104 Sub.

103 Page136th 39G.A. As Passed by the Senate and except as otherwise provided in this chapter.

Thethe 1105Revised commission'sCode, authorityexcept tosections enforce4905.10 thoseand excepted4905.31, provisionsdivision with(B) 1106of respectsection to4905.33, aand competitivesections retail4905.35 electricand service4933.81 shallto be4933.90; such 1107 authority as is provided for their enforcement under Chapters 1108 4901.

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.

of the Revised Code and 1109 this chapter.

Nothing in this division shall be construed to 1110 limit the commission's authority under sections 4928.141, 1111 4928.142, and 4928.144 of the Revised Code.

1112 (2) A competitive retail electric service supplied by an 1113 electric cooperative shall not be subject to supervision and 1114 regulation by the commission under Chapters 4901.

to 4909., 1115 4933., 4935., and 4963.

of the Revised Code, except as otherwise 1116 expressly provided in sections 4928.01 to 4928.10 and 4928.16 of 1117 the Revised Code.

1118 (B)(1) A noncompetitive retail electric service supplied 1119 by an electric utility shall be subject to supervision and 1120 regulation by the commission under Chapters 4901.

to 4909., 1121 4933., 4935., and 4963.

of the Revised Code and this chapter, to 1122 the extent that authority is not preempted by federal law.

The 1123 commission's authority to enforce those provisions with respect 1124 to a noncompetitive retail electric service shall be the 1125 authority provided under those chapters and this chapter, to the 1126 extent the authority is not preempted by federal law.

1127 Notwithstanding Chapters 4905.

of the Revised Code, 1128 commission authority under this chapter shall include the 1129 authority to provide for the recovery, through a reconcilable 1130 rider on an electric distribution utility's distribution rates, 1131 of all transmission and transmission-related costs, including 1132 ancillary and congestion costs, imposed on or charged to the 1133 utility by the federal energy regulatory commission or a 1134 regional transmission organization, independent transmission 1135operator, Sub.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.

103 Page136th 40G.A. As Passed by the Senate operator, or similar organization approved by the federal energy 1136 regulatory commission.

1137noncompetitive Theretail commission shall adopt, for each electric distribution 1138 utility that provides customers with a standard service offer in 1139 compliance with sections 4928.141 and 4928.142 of thean Revisedelectric 1140cooperative Code,shall abe nonbypassable cost recovery mechanism relating to 1141 transmission, ancillary, congestion, or any related service 1142 required for such standardauthority serviceas offeris thatprovided includes 1143 provisions for thetheir recoveryenforcement ofunder anyChapters cost4933. of such service that the 1144 electric distribution utility incurs pursuant to the standard 1145 service offer.

1146 (2) The commission shall exercise its jurisdiction with 1147 respect to the delivery of electricity by an electric utility in 1148 this state so as to ensure that no aspect of the delivery of 1149 electricity by the utility to consumers in this state that 1150 consists of a noncompetitive retail electric service is 1151 unregulated.

1152 (3) A noncompetitive retail electric service supplied by 1153 an electric cooperative shall not be subject to supervision and 1154 regulation by the commission under Chapters 4901.

to 4909., 1155 4933., 4935., and 4963.

of the Revised Code, except sections 1156 4933.81 to 4933.90 and 4935.03 of the Revised Code.

The 1157 commission's authority to enforce those excepted sections with 1158 respect to a noncompetitive retail electric service of an 1159 electric cooperative shall be such authority as is provided for 1160 their enforcement under Chapters 4933.

of the Revised 1161 Code.

1162 Sec.

(A) As used in sections 4929.052 to 1163 4929.058 of the Revised Code, "large load customer" means a 1164 customer that a natural gas company projected or anticipated to 1165consume, Sub.or actually consumed, in a prior, current, or future twelve-month period, more than one million two hundred thousand Mcf of natural gas.

S.(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.

B.(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.

No.Sec.

103 Page 41 As Passed by the Senate consume, or actually consumed, in a prior, current, or future 1166 twelve-month period, more than one million two hundred thousand 1167 Mcf of natural gas.

1168 (B) A natural gas company that has applied for, or was 1169 already approved for, an infrastructure development rider 1170 pursuant to section 4929.161 of the Revised Code may file an 1171 application to the public utilities commission for an 1172 alternative rate plan to serve large load customers.

1173 (C) An alternative rate plan established under division 1174 (B) of this section must support commercial agreements entered 1175 into between the natural gas company and a large load customer.

1176 Sec.

(A) An alternative rate plan proposed by a 1177 natural gas company pursuant to section 4929.052 of the Revised 1178 Code shall be approved by the public utilities commission if the 1179 natural gas company meets its burden of proof in a proceeding 1180 before the commission that the alternative rate plan does all of 1181 the following to protect existing customers:

1182 (1) Protects the company's customers that are not served 1183 under the alternative rate plan pursuant to section 4929.052 of 1184 the Revised Code from paying direct or indirect costs, including 1185 any stranded costs, associated with the large load customer's 1186 share of infrastructure investments made under any commercial 1187 agreements entered into under that plan;

1188 (2) Provides any commercial agreement entered into under 1189 the plan, once the large load customer begins natural gas 1190 service and monthly payments to the natural gas company, shall 1191 require a monthly cost credit, to compensate other customers for 1192 the cost of the large load customer's use of the natural gas 1193 company's system and infrastructure, to the annual 1194infrastructure Sub.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;

S.(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.(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.

No.Sec.

103 Page 42 As Passed by the Senate infrastructure development rider rate charged by the natural gas 1195 company pursuant to section 4929.162 of the Revised Code, which 1196 will be the cost of the large load customer's use of the natural 1197 gas company system and infrastructure;

1198 (3) Supports economic development in the state by serving 1199 the large load customer, which is proven by a letter of support 1200 by an economic development entity, as defined in division (C)(4) 1201 of section 4929.163 of the Revised Code.