SB 106 — Regulate the ownership of electric vehicle charging stations

106 Page136th 2G.A. As Passed by the Senate (2) "Billing and collection agent" means a fully 19 independent agent, not affiliated with or otherwise controlled 20 by an electric utility, electric services company, electric 21 cooperative, or governmental aggregator subject to certification 22 under section 4928.08 of the Revised Code, to the extent that 23 the agent is under contract with such utility, company, 24 cooperative, or aggregator solely to provide billing and 25 collection for retail electric service on behalf of the utility 26 company, cooperative, or aggregator.

27shall (3)be "Certifiedthe territory"total meansvalue theas certifiedset territoryforth 28in establisheddivision for(B)(8)(B)(9) anof electricsection supplier4909.042 underof sectionsthe 4933.81Revised toCode 29and 4933.90division (B)(9) of section 4909.05 of the Revised Code.Code, and a reasonable allowance for materials and supplies and a reasonable allowance for cash working capital as determined by the commission.

30(2) (4)A "Competitivefair retailand electricreasonable service"rate means a 31 component of retailreturn electricto servicethe thatutility ison competitivethe valuation as 32determined providedin under division (B)(A)(1) of this section.section;

33(3) (5)The "Electricdollar cooperative"annual meansreturn ato not-for-profitwhich electricthe 34utility lightis companyentitled thatby bothapplying isthe orfair hasand beenreasonable financedrate inof wholereturn oras indetermined 35under partdivision under(A)(2) theof "Ruralthis Electrificationsection Actto the valuation of 1936,"the 49utility Stat.determined under division (A)(1) of this section;

36(4) 1363,The 7cost U.S.C.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.

901,Federal, state, and ownslocal taxes imposed on or operatesmeasured facilitiesby net income may, in thisthe 37discretion stateof 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 generate,the transmit,treatment orin distributethe electricity,rate-making process of such taxes shall be made that will result in loss of any tax depreciation or aother 38tax not-for-profitbenefit successorto which the utility would otherwise be entitled, and further provided that such tax benefit as redounds to the utility as a result of such company.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.

39(B) (6)The "Electriccommission distributionshall utility"compute meansthe angross electricannual 40revenues to which the utility thatis suppliesentitled atby leastadding retailthe electricdollar distributionamount 41of servicereturn andunder doesdivision not(A)(3) ownof orthis operatesection anto electricthe generatingcost, 42for facility.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.

43(C)(1) (7)Except "Electricas lightprovided company"in hasdivision the(D) sameof meaningthis assection, inthe 44revenues sectionand 4905.03expenses of the Revisedutility Codeshall andbe includesdetermined anduring electrica 45test servicesperiod company.as follows:

46(a) (8)Electric "Electriclight, loadnatural center"gas, haswater-works, theand samesewage meaningdisposal ascompanies inmay 47propose Sub.a forecasted test period.

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

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

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

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

Sub.

106 Page136th 3G.A. As Passed by the Senate section 4933.81 of the Revised Code.

48For (9)each "Electrictwelve-month servicesperiod, company"forecasted meansplant aninvestment, electricforecasted lightrevenues, 49and companyforecasted thatexpenses isversus engagedactual oninvestment, aactual for-profitrevenues, orand not-for-profitactual basisexpenses 50shall inbe thetrued businessup ofvia supplying or arranging for the supply of only 51 a competitivecost retailrecovery electricmechanism serviceapproved inby thisthe state.commission.

"ElectricEach 52true-up servicesprocess company"shall includesinclude aan poweradjustment marketer,to poweractual broker,for 53the aggregator,rate orof independentreturn powerthat producerthe butcompany excludesis anauthorized 54to electricearn cooperative,on municipalthe electricactual utility,investments governmentalmade. 55 aggregator, or billing and collection agent.

56The (10)company "Electricshall supplier"provide has the samecommission meaningwith asactual infinancial 57information sectionduring 4933.81the oftrue-up theprocess Revisedto Code.ensure accuracy.

58As (11)part "Electricof utility"the meanstrue-up anprocess, electricthe lightcommission companyshall 59include thatonly hasrate abase certifiedcomponents territorythat andhave isbeen engagedfound onby a for-profit 60 basis in the businesscommission ofto supplyingbe atused leastand auseful noncompetitivein 61rendering retailpublic electricutility serviceservice. in this state.

"ElectricAt utility"the 62end excludesof athe municipallast electrictest utilityperiod, orthe company shall file for a billingrate andcase 63under collectionsection agent.4909.18 of the Revised Code.

64(b) (12)All "Firmutilities, except for electric service"light, meansnatural electricgas, servicewater-works, otheror 65sewage 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 nonfirmsix electricmonths service.prior to the date the application is filed and ending not more than nine months subsequent to that date.

66(2) (13)For "Governmentalutilities aggregator"filing meansunder adivision legislative(C)(1)(b) 67 authority of athis municipalsection, corporation,the adate boardcertain ofshall townshipbe 68not trustees,later orthan athe boarddate of countyfiling, commissionersexcept actingthat asit anshall 69be, aggregator for thea provisionnatural ofgas, awater-works, competitiveor retailsewage electricdisposal 70system servicecompany, undernot authoritylater conferredthan underthe sectionend 4928.20 of the 71test Revisedperiod. Code.

72(D) (14)Utilities Afiling personunder actsdivision "knowingly,"(C)(1)(b) regardless of thethis person'ssection 73may purpose,propose whenadjustments to the personrevenues isand awareexpenses thatfor theany person'schanges conductthat willare, 74during probablythe causetest aperiod certainor resultthe ortwelve-month willperiod probablyimmediately befollowing ofthe atest certainperiod, 75reasonably nature.expected to occur.

AThe personutility hasshall knowledgeidentify ofand circumstancesquantify, whenindividually, theany personproposed 76adjustments. Sub.

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, schedule, classification, or service, or any joint rate, fare, charge, toll, rental, schedule, classification, or service rendered, charged, demanded, exacted, or proposed to be rendered, charged, demanded, or exacted, is, or will be, unjust, unreasonable, unjustly discriminatory, unjustly preferential, or in violation of law, that the service is, or will be, inadequate, or that the maximum rates, charges, tolls, or rentals chargeable by any such public utility are insufficient to yield reasonable compensation for the service rendered, and are unjust and unreasonable, the commission shall:

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

Sub.

106 Page136th 4G.A. As Passed by the Senate is aware that such circumstances probably exist.

77(2) (15)With "Leveldue regard to all such other matters as are proper, according to the facts in each case, (a) Including a fair and reasonable rate of fundingreturn fordetermined low-incomeby customerthe energycommission 78with efficiencyreference programsto provideda throughcost electricof utilitydebt rates"equal 79to meansthe actual embedded cost of debt of such public utility, (b) But not including the levelportion of fundsany specificallyperiodic rental or use payments representing that cost of property that is included in anthe electricvaluation 80report utility'sunder ratesdivisions on(B)(4) Octoberand 5,(5) 1999,of pursuantsection 4909.042 of the Revised Code and divisions (B)(4) and (5) of section 4909.05 of the Revised Code, fix and determine the just and reasonable rate, fare, charge, toll, rental, or service to anbe orderrendered, charged, demanded, exacted, or collected for the performance or rendition of the 81service that will provide the public utilitiesutility commissionthe issuedallowable gross annual revenues under Chapterdivision 4905.(B) of this section, and order such just and reasonable rate, fare, charge, toll, rental, or service to be substituted for the existing one.

After such determination and order no change in the rate, fare, toll, charge, rental, schedule, classification, or 4909.service shall be made, rendered, charged, demanded, exacted, or changed by such public utility without the order of the commission, and any other rate, fare, toll, charge, rental, classification, or service is prohibited.

82(F) Upon application of theany Revisedperson Codeor any public utility, and inafter effectnotice onto Octoberthe 4,parties 1999,in forinterest theand 83opportunity purposeto ofbe improvingheard theas energyprovided efficiencyin ofChapters housing4901., for4903., the4905., 844907., utility's4909., low-income4921., customers.and 4923.

Theof termthe excludesRevised Code for other hearings, has been given, the levelcommission ofmay 85rescind, anyalter, suchor fundsamend committedan toorder afixing specificany nonprofitrate, organizationfare, toll, charge, rental, classification, or 86service, organizationsor pursuantany toother aorder stipulationmade orby contract.the commission.

87Certified (16)copies "Low-income customer assistance programs" means the 88 percentage of incomesuch paymentorders planshall program,be theserved home energy 89 assistance program, the home weatherization assistance program, 90 and thetake targetedeffect energyas efficiencyprovided andfor weatherizationoriginal program.orders.

91Sec. (17) "Market development period" for an electric utility 92 means the period of time beginning on the starting date of 93 competitive retail electric service and ending on the applicable 94 date for that utility as specified in section 4928.40 of the 95 Revised Code, irrespective of whether the utility applies to 96 receive transition revenues under this chapter.

974909.173. (18) "Market power" means the ability to impose on 98 customers a sustained price for a product or service above the 99 price that would prevail in a competitive market.

100(A) (19)As "Mercantileused customer"in meansthis asection commercial or 101 industrial customer if the electricity consumed is for 102 nonresidential use and thesection customer4909.174 consumes more than seven 103 hundred thousand kilowatt hours per year or is part of athe 104Revised nationalCode: account involving multiple facilities in one or more 105 Sub.

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

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

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

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

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

(3) Replace customer-owned water service lines of other composition when mandated or ordered to replace such lines by law or a state or federal regulatory agency.

(C) If a water-works company replaces customer-owned water service lines under this section, then the company shall include the cost of the replacement of the water service lines, including the cost of replacement of both company side and customer-owned water service lines and the cost to evaluate customer-owned water service lines of unknown composition, in the valuation Sub.

106 Page136th 5G.A. As Passed by the Senate states.

106report (20)of "Municipalthe electricproperty utility"of meansthe acompany municipalas 107required corporationunder thatdivision owns(B)(9)(B)(6) of section 4909.042 the Revised Code or operatesdivision facilities(B)(6) toof generate,section 1084909.05 transmit,of orthe distributeRevised electricity.Code, whichever is applicable, for inclusion in a rate case under this chapter.

109(D) (21)The "Noncompetitivewater retailservice electriccustomer service"who meansis aresponsible 110for componentthe ofcustomer-owned retailwater electric service line that iswas noncompetitivereplaced asunder 111this providedsection undershall divisionhold (B)legal oftitle thisto section.the replaced water service line.

112Sec. (22) "Nonfirm electric service" means electric service 113 provided pursuant to a schedule filed under section 4905.30 of 114 the Revised Code or pursuant to an arrangement under section 115 4905.31 of the Revised Code, which schedule or arrangement 116 includes conditions that may require the customer to curtail or 117 interrupt electric usage during nonemergency circumstances upon 118 notification by an electric utility.

1194909.174. (23) "Percentage of income payment plan arrears" means 120 funds eligible for collection through the percentage of income 121 payment plan rider, but uncollected as of July 1, 2000.

122(A) (24)A "Person"water-works hascompany shall reimburse a customer who replaces the samecustomer's meaningcustomer-owned aswater inservice sectionline, 1.59if both of 123 the Revisedfollowing Code.occur:

124(1) (25)The "Advancedcompany energyconfirms project" means any technologies, 125 products, activities, or management practices or strategies that 126the facilitatecustomer-owned thewater generationservice orline usewas composed of electricitylead or energyother andcomposition 127 that reducewas mandated or supportordered theto reductionbe ofreplaced energyby consumptionlaw or 128a supportstate the production of clean, renewable energy for 129 industrial, distribution, commercial, institutional, 130 governmental, research, not-for-profit, or residentialfederal energyregulatory 131agency; users, including, but not limited to, advanced energy resources 132 and renewable energy resources.

"Advanced(2) energyThe project"customer alsosubmits 133the includesreimbursement anyrequest projectto describedthe incompany divisionnot (A),later (B),than ortwelve (C)months after the completion of 134the Sub.water line replacement.

(B) A water-works company that provides a reimbursement to a customer under this section shall include the reimbursement amount in the valuation report of the property of the company as required under division (B)(9)(B)(6) of section 4909.042 of the Revised Code or (B)(6) of section 4909.05 of the Revised Code, whichever is applicable, for inclusion in a rate case under this chapter.

Sec.

4928.01.

(A) As used in this chapter:

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

reactive supply from generation resources and voltage control service;

reactive supply from transmission resources service;

regulation service;

frequency response service;

energy imbalance service;

operating reserve-spinning reserve service;

operating reserve-supplemental reserve service;

load following;

back-up supply service;

real-power loss replacement service;

dynamic scheduling;

system black start capability;

and network stability service.

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

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

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

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

1363, 7 U.S.C.

901, and owns or operates facilities in this state to generate, transmit, or distribute electricity, Sub.

106 Page136th 6G.A. As Passed by the Senate section 4928.621 of the Revised Code.

135 (26) "Regulatory assets" means the unamortized net 136 regulatory assets that are capitalized or deferreda onnot-for-profit thesuccessor 137 regulatory books of thesuch electriccompany. utility, pursuant to an order 138 or practice of the public utilities commission or pursuant to 139 generally accepted accounting principles as a result of a prior 140 commission rate-making decision, and that would otherwise have 141 been charged to expense as incurred or would not have been 142 capitalized or otherwise deferred for future regulatory 143 consideration absent commission action.

"Regulatory(6) assets""Electric 144distribution includes,utility" butmeans isan notelectric limitedutility to,that allsupplies deferredat demand-sideleast 145retail managementelectric costs;distribution service and does not own or operate an electric generating facility.

all(7) deferred"Electric percentagelight company" has the same meaning as in section 4905.03 of incomethe paymentRevised planCode 146and arrears;includes an electric services company.

post-in-service(8) capitalized"Electric chargesload andcenter" assetshas 147the recognizedsame inmeaning connectionas within statementsection 4933.81 of financialthe accountingRevised 148Code. standards no.

109(9) (receivables"Electric fromservices customerscompany" means an electric light company that is engaged on a for- profit or not-for-profit basis in the business of supplying or arranging for incomethe taxes);supply of only a competitive retail electric service in this state.

149"Electric futureservices nuclearcompany" decommissioningincludes costsa andpower fuelmarketer, disposalpower costsbroker, asaggregator, 150or thoseindependent costspower haveproducer beenbut determinedexcludes byan theelectric commissioncooperative, inmunicipal the 151 electric utility'sutility, mostgovernmental recentaggregator, rate or accountingbilling applicationand 152collection proceedingagent. addressing such costs;

the(10) undepreciated"Electric costssupplier" ofhas 153the safetysame andmeaning radiationas controlin equipmentsection on4933.81 nuclearof generatingthe 154Revised plantsCode. owned or leased by an electric utility;

(11) "Electric utility" means an electric light company that has a certified territory and fuelis costsengaged 155on currentlya deferredfor-profit pursuantbasis toin the termsbusiness of onesupplying orat moreleast 156a settlementnoncompetitive agreementsretail approvedelectric byservice thein commission.this state.

157"Electric (27)utility" "Retailexcludes electrica service"municipal meanselectric anyutility service involved 158 in supplying or arranginga forbilling theand supplycollection ofagent. electricity to 159 ultimate consumers in this state, from the point of generation 160 to the point of consumption.

For(12) the"Firm purposeselectric ofservice" thismeans chapter, 161 retail electric service includesother onethan ornonfirm moreelectric ofservice. the following 162 "service components":

generation(13) service,"Governmental aggregationaggregator" service,means 163a powerlegislative marketingauthority service,of powera brokeragemunicipal service,corporation, transmissiona 164board service,of distributiontownship service,trustees, ancillaryor service,a meteringboard 165of Sub.county commissioners acting as an aggregator for the provision of a competitive retail electric service under authority conferred under section 4928.20 of the Revised Code.

(14) A person acts "knowingly," regardless of the person's purpose, when the person is aware that the person's conduct will probably cause a certain result or will probably be of a certain nature.

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

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

or 4909.

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

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

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

(17) "Market development period" for an electric utility means the period of time beginning on the starting date of competitive retail electric service and ending on the applicable date for that utility as specified in section 4928.40 of the Revised Code, irrespective of whether the utility applies Sub.

106 Page136th 7G.A. As Passed by the Senate service, and billing and collection service.

166to (28)receive "Startingtransition daterevenues ofunder competitivethis retailchapter. electric 167 service" means January 1, 2001.

168(18) (29)"Market "Customer-generator"power" means the ability to impose on customers a usersustained ofprice for a netproduct meteringor 169service system.above the price that would prevail in a competitive market.

170(19) (30)"Mercantile "Netcustomer" metering" means measuringa thecommercial differenceor inindustrial ancustomer 171if applicablethe billingelectricity periodconsumed betweenis for nonresidential use and the electricitycustomer suppliedconsumes bymore anthan 172seven electrichundred servicethousand providerkilowatt andhours theper electricityyear generatedor byis apart 173of customer-generatora thatnational isaccount fedinvolving backmultiple tofacilities thein electricone serviceor 174more provider.states.

175(20) (31)"Municipal "Netelectric meteringutility" system" means a facilitymunicipal forcorporation thethat 176owns productionor ofoperates electricalfacilities energyto thatgenerate, doestransmit, allor ofdistribute theelectricity. following:

177(21) (a)"Noncompetitive Usesretail aselectric itsservice" fuelmeans eithera solar,component wind,of biomass,retail landfillelectric 178service gas,that oris hydropower,noncompetitive oras usesprovided aunder microturbinedivision or(B) aof fuelthis cell;section.

179(22) (b)"Nonfirm Iselectric locatedservice" onmeans electric service provided pursuant to a customer-generator'sschedule premises;filed under section 4905.30 of the Revised Code or pursuant to an arrangement under section 4905.31 of the Revised Code, which schedule or arrangement includes conditions that may require the customer to curtail or interrupt electric usage during nonemergency circumstances upon notification by an electric utility.

180(23) (c)"Percentage Operatesof inincome parallelpayment withplan arrears" means funds eligible for collection through the electricpercentage utility'sof 181income transmissionpayment andplan distributionrider, facilities;but uncollected as of July 1, 2000.

182(24) (d)"Person" Ishas intendedthe primarilysame tomeaning offsetas partin orsection all1.59 of the 183Revised customer-generator'sCode. requirements for electricity.

For(25) an"Advanced 184energy industrialproject" customer-generatormeans withany atechnologies, netproducts, meteringactivities, systemor management practices or strategies that 185facilitate hasthe ageneration capacityor use of lesselectricity thanor twentyenergy megawatts and usesthat windreduce asor 186support energy,the thisreduction meansof energy consumption or support the netproduction meteringof systemclean, wasrenewable sizedenergy sofor asindustrial, todistribution, 187commercial, notinstitutional, exceedgovernmental, oneresearch, hundrednot- perfor-profit, centor ofresidential theenergy customer-generator'susers, 188including, annualbut requirementsnot forlimited electricto, advanced energy atresources theand timerenewable ofenergy 189resources. interconnection.

190"Advanced (32)energy "Self-generator"project" meansalso anincludes entityany inproject thisdescribed statein thatdivision 191(A), owns(B), or hosts(C) onof propertysection the4928.621 entityof controls an electric 192 generation facility that produces electricity primarily for the 193Revised Sub.Code.

(26) "Regulatory assets" means the unamortized net regulatory assets that are capitalized or deferred on the regulatory books of the electric utility, pursuant to an order or practice of the public utilities commission or pursuant to generally accepted accounting principles as a result of a prior commission rate-making decision, and that would otherwise have been charged to expense as incurred or would not have been capitalized or otherwise deferred for future regulatory consideration absent commission action.

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

all deferred percentage of income payment plan arrears;

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

109 (receivables from customers for income taxes);

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

the undepreciated costs of safety and radiation control equipment on nuclear generating plants owned or Sub.

106 Page136th 8G.A. As Passed by the Senate owner's consumption and that may provide any such excess 194 electricity to another entity, and that meets all of the 195 following:

196leased (a) The facility is installed or operated by thean ownerelectric orutility; 197 by a third party under a contract, including a lease, purchase 198 power agreement, or other service contract.

199and (b)fuel Thecosts facilitycurrently connectsdeferred directlypursuant to the owner'sterms side of 200one theor electricmore meter.settlement agreements approved by the commission.

201(27) (c)"Retail Theelectric facilityservice" deliversmeans electricityany toservice theinvolved owner'sin sidesupplying 202or ofarranging for the electricsupply meterof withoutelectricity theto useultimate ofconsumers anin electricthis 203state, distributionfrom utility'sthe orpoint electricof cooperative'sgeneration distributionto 204the systempoint orof transmissionconsumption. system.

205For (33) "Rate plan" means the standardpurposes serviceof offerthis inchapter, 206retail effectelectric onservice theincludes effectiveone dateor more of the amendmentfollowing of"service thiscomponents": section by 207 S.B.

generation service, aggregation service, power marketing service, power brokerage service, transmission service, distribution service, ancillary service, metering service, and billing and collection service.

(28) "Starting date of competitive retail electric service" means January 1, 2001.

(29) "Customer-generator" means a user of a net metering system.

(30) "Net metering" means measuring the difference in an applicable billing period between the electricity supplied by an electric service provider and the electricity generated by a customer- generator that is fed back to the electric service provider.

(31) "Net metering system" means a facility for the production of electrical energy that does all of the following:

(a) Uses as its fuel either solar, wind, biomass, landfill gas, or hydropower, or uses a microturbine or a fuel cell;

(b) Is located on a customer-generator's premises;

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

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

For an industrial customer-generator with a net metering system that has a capacity of less than twenty megawatts and uses wind as energy, this means the net metering system was sized so as to not exceed one hundred per cent of the customer-generator's annual requirements for electric energy at the time of interconnection.

(32) "Self-generator" means an entity in this state that owns or hosts on property the entity controls an electric generation facility that produces electricity primarily for the owner's consumption and that may provide any such excess electricity to another entity, and that meets all of the following:

(a) The facility is installed or operated by the owner or by a third party under a contract, including a lease, purchase power agreement, or other service contract.

(b) The facility connects directly to the owner's side of the electric meter.

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

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

208 (34) "Advanced energy resource" means any of the 209 following:

210 (a) Any method or any modification or replacement of any 211 property, process, device, structure, or equipment that 212 increases the generation output of an electric generating 213 facility to the extentSub. such efficiency is achieved without 214 additional carbon dioxide emissions by that facility;

215 (b) Any distributed generation system consisting of 216 customer cogeneration technology;

217 (c) Clean coal technology that includes a carbon-based 218 product that is chemically altered before combustion to 219 demonstrate a reduction, as expressed as ash, in emissions of 220 nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or 221 Sub.

106 Page136th 9G.A. As Passed by the Senate sulfur trioxide in accordance with the American society of 222 testing and materials standard D1757A or a reduction of metal 223 oxide emissions in accordance with standard D5142 of that 224 society, or clean coal technology that includes the design 225 capability to control or prevent the emission of carbon dioxide, 226 which design capability the commission shall adopt by rule and 227 shall be based on economically feasible best available 228 technology or, in the absence of a determined best available 229 technology, shall be of the highest level of economically 230 feasible design capability for which there exists generally 231 accepted scientific opinion;

232extent (d)such Advancedefficiency nuclearis energyachieved technologywithout consistingadditional ofcarbon 233dioxide generationemissions III technology as defined by thethat nuclearfacility; regulatory 234 commission;

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

(c) Clean coal technology that includes a carbon-based product that is chemically altered before combustion to demonstrate a reduction, as expressed as ash, in emissions of nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or sulfur trioxide in accordance with the American society of testing and materials standard D1757A or a reduction of metal oxide emissions in accordance with standard D5142 of that society, or clean coal technology that includes the design capability to control or prevent the emission of carbon dioxide, which design capability the commission shall adopt by rule and shall be based on economically feasible best available technology or, in the absence of a determined best available technology, shall be of the highest level of economically feasible design capability for which there exists generally accepted scientific opinion;

(d) Advanced nuclear energy technology consisting of generation III technology as defined by the nuclear regulatory commission;

or significant improvements 235 to existing facilities;

236 (e) Any fuel cell used in the generation of electricity, 237 including, but not limited to, a proton exchange membrane fuel 238 cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 239 solid oxide fuel cell;

240 (f) Advanced solid waste or construction and demolition 241 debris conversion technology, including, but not limited to, 242 advanced stoker technology, and advanced fluidized bed 243 gasification technology, that results in measurable greenhouse 244 gas emissions reductions as calculated pursuant to the United 245 States environmental protection agency's waste reduction model 246 (WARM);

247 (g) Demand-side management and any energy efficiency 248 improvement;

249 (h) Any new, retrofitted, refueled, or repowered 250generating Sub.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;

Sub.

106 Page136th 10G.A. As Passed by the Senate generating facility located in Ohio, including a simple or 251 combined-cycle natural gas generating facility or a generating 252 facility that uses biomass, coal, modular nuclear, or any other 253 fuel as its input;

254(iv) (i)Power Anyproduced upratedby capacitya ofsmall anhydroelectric existingfacility, electricwhich 255is generatinga facility ifthat theoperates, upratedor capacityis resultsrated fromto theoperate, 256at deploymentan aggregate capacity of advancedless technology.than six megawatts;

257(v) "AdvancedPower energyproduced resource"by doesa notrun-of-the-river includehydroelectric afacility wasteplaced energyin 258service recoveryon systemor thatafter is,January or1, has1980, been,that includedis inlocated anwithin energythis 259state, efficiencyrelies programupon ofthe anOhio electricriver, distributionand utilityoperates, pursuantor 260is rated to requirementsoperate, underat sectionan 4928.66aggregate capacity of theforty Revisedor Code.more megawatts;

261(vi) (35)Geothermal "Airenergy; contaminant source" has the same meaning as in 262 section 3704.01 of the Revised Code.

263(vii) (36)Fuel "Cogenerationderived technology"from meanssolid technologywastes, thatas 264defined producesin electricitysection and3734.01 usefulof thermalthe outputRevised simultaneously.Code, through fractionation, biological decomposition, or other process that does not principally involve combustion;

265(viii) (37)(a)Biomass "Renewableenergy; energy resource" means any of the 266 following:

267(ix) (i)Energy Solarproduced photovoltaicby cogeneration technology that is placed into service on or solarbefore thermalDecember energy;31, 2015, and for which more than ninety per cent of the total annual energy input is from combustion of a waste or byproduct gas from an air contaminant source in this state, which source has been in operation since on or before January 1, 1985, provided that the cogeneration technology is a part of a facility located in a county having a population of more than three hundred sixty-five thousand but less than three hundred seventy thousand according to the most recent federal decennial census;

268(x) (ii)Biologically Windderived energy;methane gas;

269(xi) (iii)Heat Powercaptured producedfrom a generator of electricity, boiler, or heat exchanger fueled by abiologically hydroelectricderived facility;methane gas;

270(xii) (iv)Energy Powerderived producedfrom bynontreated aby-products smallof hydroelectricthe facility,pulping 271process which is a facility that operates, or iswood ratedmanufacturing toprocess, operate,including atbark, anwood 272chips, aggregatesawdust, capacityand oflignin lessin thanspent sixpulping megawatts;liquors.

273"Renewable (v)energy Powerresource" producedincludes, bybut ais run-of-the-rivernot hydroelectriclimited 274to, facilityany placedfuel incell serviceused onin orthe aftergeneration Januaryof 1,electricity, 1980,including, thatbut isnot 275limited locatedto, withina thisproton state,exchange reliesmembrane uponfuel thecell, Ohiophosphoric river,acid andfuel 276cell, operates,molten orcarbonate isfuel ratedcell, toor operate,solid atoxide anfuel aggregatecell; capacity of 277 Sub.

S.

B.

No.

106 Page 11 As Passed by the Senate forty or more megawatts;

278 (vi) Geothermal energy;

279 (vii) Fuel derived from solid wastes, as defined in 280 section 3734.01 of the Revised Code, through fractionation, 281 biological decomposition, or other process that does not 282 principally involve combustion;

283 (viii) Biomass energy;

284 (ix) Energy produced by cogeneration technology that is 285 placed into service on or before December 31, 2015, and for 286 which more than ninety per cent of the total annual energy input 287 is from combustion of a waste or byproduct gas from an air 288 contaminant source in this state, which source has been in 289 operation since on or before January 1, 1985, provided that the 290 cogeneration technology is a part of a facility located in a 291 county having a population of more than three hundred sixty-five 292 thousand but less than three hundred seventy thousand according 293 to the most recent federal decennial census;

294 (x) Biologically derived methane gas;

295 (xi) Heat captured from a generator of electricity, 296 boiler, or heat exchanger fueled by biologically derived methane 297 gas;

298 (xii) Energy derived from nontreated by-products of the 299 pulping process or wood manufacturing process, including bark, 300 wood chips, sawdust, and lignin in spent pulping liquors.

301 "Renewable energy resource" includes, but is not limited 302 to, any fuel cell used in the generation of electricity, 303 including, but not limited to, a proton exchange membrane fuel 304 cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 305 Sub.

S.

B.

No.

106 Page 12 As Passed by the Senate solid oxide fuel cell;

wind turbine located 306 in the state's territorial waters of Lake Erie;

methane gas 307 emitted from an abandoned or active coal mine;

waste energy 308 recovery system placed into service or retrofitted on or after 309 the effective date of the amendment of this section by S.B.

315 310 of the 129th general assembly, September 10, 2012, except that a 311 waste energy recovery system described in division (A)(38)(b) of 312 this section may be included only if it was placed into service 313 between January 1, 2002, and December 31, 2004;

storage facility 314 that will promote the better utilization of a renewable energy 315 resource;

or distributed generation system used by a customer to 316 generate electricity from any such energy.

317 "Renewable energy resource" does not include a waste 318 energy recovery system that is, or was, on or after January 1, 319 2012, included in an energy efficiency program of an electric 320 distribution utility pursuant to requirements under section 321 4928.66 of the Revised Code.

322 (b) As used in division (A)(37) of this section, 323 "hydroelectric facility" means a hydroelectric generating 324 facility that is located at a dam on a river, or on any water 325 discharged to a river, that is withinSub. or bordering this state or 326 within or bordering an adjoining state and meets all of the 327 following standards:

328 (i) The facility provides for river flows that are not 329 detrimental for fish, wildlife, and water quality, including 330 seasonal flow fluctuations as defined by the applicable 331 licensing agency for the facility.

332 (ii) The facility demonstrates that it complies with the 333 water quality standards of this state, which compliance may 334 consist of certification under Section 401 of the "Clean Water 335 Sub.

106 Page136th 13G.A. As Passed by the Senate Act of 1977," 91 Stat.

within or bordering this state or within or bordering an adjoining state and meets all of the following standards:

(i) The facility provides for river flows that are not detrimental for fish, wildlife, and water 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 336 demonstrates that it has not contributed to a finding by this 337 state that the river has impaired water quality under Section 338 303(d) of the "Clean Water Act of 1977," 114 Stat.

870, 33 339 U.S.C.

340 (iii) The facility complies with mandatory prescriptions 341 regarding fish passage as required by the federal energy 342 regulatory commission license issued for the project, regarding 343 fish protection for riverine, anadromous, and catadromous fish.

344 (iv) The facility complies with the recommendations of the 345 Ohio environmental protection agency and with the terms of its 346 federal energy regulatory commission license regarding watershed 347 protection, mitigation, or enhancement, to the extent of each 348 agency's respective jurisdiction over the facility.

349 (v) The facility complies with provisions of the 350 "Endangered Species Act of 1973," 87 Stat.

1531 351 to 1544, as amended.

352 (vi) The facility does not harm cultural resources of the 353 area.

This can be shown through compliance with the terms of its 354 federal energy regulatory commission license or, if the facility 355 is not regulated by that commission, through development of a 356 plan approved by the Ohio historic preservation office, to the 357 extent it has jurisdiction over the facility.

358 (vii) The facility complies with the terms of its federal 359 energy regulatory commission license or exemption that are 360 related to recreational access, accommodation, and facilities 361 or, if the facility is not regulated by that commission, the 362 facility complies with similar requirements as are recommended 363 by resource agencies, to the extent they have jurisdiction over 364the Sub.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, Sub.

106 Page136th 14G.A. As Passed by the Senate the facility;

andprovided that the facilityconversion providesof accessenergy to waterelectricity tois theachieved 365 public without feeusing oradditional charge.fossil fuels.

366(b) (viii)A The facility isat nota recommendedstate forinstitution removalof byhigher anyeducation 367as federaldefined agencyin orsection agency3345.011 of anythe state,Revised toCode thethat extentrecovers waste heat from electricity-producing engines or combustion turbines and that simultaneously uses the 368recovered particularheat agencyto hasproduce jurisdictionsteam, overprovided that the facility.facility was placed into service between January 1, 2002, and December 31, 2004;

369 (c) TheA standardsfacility inthat divisionsproduces (A)(37)(b)(i)steam tofrom (viii)recovered ofwaste 370heat thisfrom sectiona domanufacturing notprocess applyand uses that steam, or transfers that steam to aanother smallfacility, hydroelectricto facilityprovide 371heat underto divisionanother (A)(37)(a)(iv)manufacturing ofprocess thisor section.to generate electricity.

372(39) (38)"Smart "Wastegrid" means capital improvements to an electric distribution utility's distribution infrastructure that improve reliability, efficiency, resiliency, or reduce energy recoverydemand system"or meansuse, anyincluding, ofbut thenot 373limited following:to, advanced metering and automation of system functions.

374(40) (a)"Combined Aheat facilityand thatpower generatessystem" means the coproduction of electricity throughand useful thermal energy from the 375same conversionfuel source designed to achieve thermal-efficiency levels of energyat fromleast eithersixty per cent, with at least twenty per cent of the following:system's total useful energy in the form of thermal energy.

376(41)(a) (i)"Green Exhaustenergy" heatmeans fromany enginesenergy orgenerated manufacturing,by 377using industrial,an commercial,energy orresource institutionalthat sites,does exceptone foror 378more exhaustof heat from a facility whose primary purpose is the 379following: generation of electricity;

380(i) (ii)Releases Reductionreduced ofair pressurepollutants, inthereby gasreducing pipelinescumulative beforeair gasemissions; is 381 distributed through the pipeline, provided that the conversion 382 of energy to electricity is achieved without using additional 383 fossil fuels.

384(ii) (b)Is Amore facilitysustainable at a state institution of higher education 385 as defined in section 3345.011 of the Revised Code that recovers 386 waste heat from electricity-producing engines or combustion 387 turbines and thatreliable simultaneouslyrelative uses the recovered heat to 388some producefossil steam,fuels. provided that the facility was placed into 389 service between January 1, 2002, and December 31, 2004;

390(b) (c)"Green Aenergy" facilityincludes thatenergy producesgenerated steamusing fromthe recoveredfollowing: waste 391 heat from a manufacturing process and uses that steam, or 392 Sub.

(i) Natural gas as a resource;

(ii) Nuclear reaction.

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

(43) "Linear generator" means an integrated system consisting of oscillators, cylinders, electricity conversion equipment, and associated balance of plant components that meet the following criteria:

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

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

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

(44) "Electric vehicle" means a vehicle that is powered wholly by a system that can be recharged via an external source of electricity, including a vehicle for public or private use that is a passenger car, commercial car or truck, a vehicle used for public transit, a vehicle used in a vehicle fleet, a vehicle used in construction work, and a vehicle used in industrial or warehouse work.

(45) "Electric vehicle charging station" means behind the meter electric equipment by which electric current is transferred to the power system of an electric vehicle.

Sub.

106 Page136th 15G.A. As Passed by the Senate transfers that steam to another facility, to provide heat to 393 another manufacturing process or to generate electricity.

394(B) (39)For "Smartthe grid"purposes meansof capitalthis improvementschapter, toa anretail 395electric service component shall be deemed a competitive retail electric distributionservice utility'sif distributionthe infrastructureservice thatcomponent 396is improvecompetitive reliability,pursuant efficiency,to resiliency,a ordeclaration reduceby energya 397provision demandof the Revised Code or use,pursuant including,to butan notorder limitedof to,the advancedpublic meteringutilities 398commission andauthorized automationunder division (A) of systemsection functions.4928.04 of the Revised Code.

399Otherwise, (40) "Combined heat and power system" means the 400service coproductioncomponent ofshall electricitybe anddeemed usefula thermalnoncompetitive energyretail fromelectric theservice. 401 same fuel source designed to achieve thermal-efficiency levels 402 of at least sixty per cent, with at least twenty per cent of the 403 system's total useful energy in the form of thermal energy.

404Sec. (41)(a) "Green energy" means any energy generated by using 405 an energy resource that does one or more of the following:

4064928.03. (i) Releases reduced air pollutants, thereby reducing 407 cumulative air emissions;

408Beginning (ii)on Isthe morestarting sustainabledate of competitive retail electric service, retail electric generation, aggregation, power marketing, and reliablepower relativebrokerage services (A) The following services supplied to someconsumers 409within fossilthe fuels.certified territory of an electric utility are competitive retail electric services that the consumers may obtain subject to this chapter from any supplier or suppliers.:

410(1) (b)Retail "Greenelectric energy"generation; includes energy generated using the 411 following:

412(2) (i)Aggregation; Natural gas as a resource;

413(3) (ii)Power Nuclearmarketing; reaction.

414(4) (42)Power "Energybrokerage storage"services; means electrical generation and 415 storage performed by a distributed energy system connected 416 battery.

417(5) (43)Electric "Linearvehicle generator"charging meansstations. an integrated system 418 consisting of oscillators, cylinders, electricity conversion 419 Sub.

(B) In accordance with a filing under division (F) of section 4933.81 of the Revised Code, retail electric generation, aggregation, power marketing, or power brokerage services the following services supplied to consumers within the certified territory of an electric cooperative that has made the filing are competitive retail electric services that the consumers may obtain subject to this chapter from any supplier or suppliers.:

(1) Retail electric generation;

(2) Aggregation;

(3) Power marketing;

(4) Power brokerage services;

(5) Electric vehicle charging stations.

(C) Beginning on the starting date of competitive retail electric service and notwithstanding any other provision of law, each consumer in this state and the suppliers to a consumer shall have comparable and nondiscriminatory access to noncompetitive retail electric services of an electric utility in this state within its certified territory for the purpose of satisfying the consumer's electricity requirements in keeping with the policy specified in section 4928.02 of the Revised Code.

Sec.

4928.041.

(A) Except as provided in sections 4928.141 and 4928.142 of the Revised Code, no electric utility shall provide a competitive retail electric service in this state if that service was deemed competitive or otherwise legally classified as competitive prior to or upon the effective date of this sectionS.B.

106 of the 136th general assembly.

(B) The standard service offer under section 4928.141 of the Revised Code shall continue to be provided to consumers in this state by electric utilities.

SECTION 2.

That existing sections 4909.042, 4909.15, 4909.173, 4909.174, 4928.01, 4928.03, Sub.

106 Page136th 16G.A. As Passed by the Senate equipment, and associated balance of plant components that meet 420 the following criteria:

421and (a)4928.041 Converts the linear motion of oscillators directly 422 into electricity without the useRevised ofCode aare flamehereby orrepealed. spark;

423Sub. (b) Is dispatchable with the ability to vary power output 424 across all loads;

425 (c) Can operate on multiple fuel types including renewable 426 fuels such as hydrogen, ammonia, and biogas.

427 (44) "Electric vehicle" means a vehicle that is powered 428 wholly by a system that can be recharged via an external source 429 of electricity, including a vehicle for public or private use 430 that is a passenger car, commercial car or truck, a vehicle used 431 for public transit, a vehicle used in a vehicle fleet, a vehicle 432 used in construction work, and a vehicle used in industrial or 433 warehouse work.

434 (45) "Electric vehicle charging station" means behind the 435 meter electric equipment by which electric current is 436 transferred to the power system of an electric vehicle.

437 (B) For the purposes of this chapter, a retail electric 438 service component shall be deemed a competitive retail electric 439 service if the service component is competitive pursuant to a 440 declaration by a provision of the Revised Code or pursuant to an 441 order of the public utilities commission authorized under 442 division (A) of section 4928.04 of the Revised Code.

Otherwise, 443 the service component shall be deemed a noncompetitive retail 444 electric service.

445 Sec.

4928.03.

Beginning on the starting date of 446 competitive retail electric service, retail electric generation, 447 aggregation, power marketing, and power brokerage services (A) 448 Sub.

106 Page136th 17G.A. As Passed by the Senate The following services supplied to consumers within the 449 certified territory of an electric utility are competitive 450 retail electric services that the consumers may obtain subject 451 to this chapter from any supplier or suppliers.:

452Speaker (1)___________________ Retailof electricthe generation;House of Representatives.

453President (2)___________________ Aggregation;of the Senate.

454Passed (3)________________________, Power20____ marketing;Approved ________________________, 20____ Governor.

455Sub. (4) Power brokerage services;

456 (5) Electric vehicle charging stations.

457 (B) In accordance with a filing under division (F) of 458 section 4933.81 of the Revised Code, retail electric generation, 459 aggregation, power marketing, or power brokerage services the 460 following services supplied to consumers within the certified 461 territory of an electric cooperative that has made the filing 462 are competitive retail electric services that the consumers may 463 obtain subject to this chapter from any supplier or suppliers.:

464 (1) Retail electric generation;

465 (2) Aggregation;

466 (3) Power marketing;

467 (4) Power brokerage services;

468 (5) Electric vehicle charging stations.

469 (C) Beginning on the starting date of competitive retail 470 electric service and notwithstanding any other provision of law, 471 each consumer in this state and the suppliers to a consumer 472 shall have comparable and nondiscriminatory access to 473 noncompetitive retail electric services of an electric utility 474 in this state within its certified territory for the purpose of 475 Sub.

106 Page136th 18G.A. As Passed by the Senate satisfying the consumer's electricity requirements in keeping 476 with the policy specified in section 4928.02 of the Revised 477 Code.

478The Sec.section numbering of law of a general and permanent nature is complete and in conformity with the Revised Code.

4928.041.Director, Legislative Service Commission.

(A)Filed Except as provided in sectionsthe 4928.141office 479 and 4928.142 of the RevisedSecretary Code,of noState electricat utilityColumbus, shallOhio, 480on provide a competitive retail electric service in this state if 481 that service was deemed competitive or otherwise legally 482 classified as competitive prior to or upon the effective____ dateday of 483___________,A. this sectionS.B.

106D. of the 136th general assembly.

48420____. (B) The standard service offer under section 4928.141 of 485 the Revised Code shall continue to be provided to consumers in 486 this state by electric utilities.

487Secretary Sectionof 2.State.

ThatFile existingNo. sections 4928.01, 4928.03, and 488 4928.041 of the Revised Code are hereby repealed.

489_________ Effective Date ___________________