As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 3 5
1999-2000 6
SENATORS JOHNSON-FINAN-BLESSING-HERINGTON 8
10
A B I L L
To enact section 4928.01 of the Revised Code to 12
declare that the public policy of the State of 13
Ohio is to effect the restructuring of the
electric industry pursuant to specified goals 14
permitting effective competition in the provision
of retail electric service to all Ohio consumers. 15
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That section 4928.01 of the Revised Code be 19
enacted to read as follows: 20
Sec. 4928.01. THE GENERAL ASSEMBLY FINDS THAT COMPETITIVE 22
MARKETS ARE SUPERIOR TO REGULATED MARKETS FOR DISPENSING GOODS 23
AND SERVICES, FOSTERING COMPETITIVE INNOVATION, AND PROMOTING 24
ECONOMIC DEVELOPMENT. THEREFORE, IT IS THE PUBLIC POLICY OF THIS 25
STATE TO EFFECT THE RESTRUCTURING OF ITS ELECTRIC INDUSTRY, BY 26
ESTABLISHING A MARKET STRUCTURE AND REGULATORY FRAMEWORK, AS
DETERMINED BY THE GENERAL ASSEMBLY, THAT PERMITS EFFECTIVE 27
COMPETITION IN THE PROVISION OF RETAIL ELECTRIC SERVICE TO ALL 28
CONSUMERS IN THIS STATE BEGINNING ON SUCH DATE AS IS SPECIFIED BY 29
THE GENERAL ASSEMBLY. THE MARKET STRUCTURE AND REGULATORY 30
FRAMEWORK SHALL ACHIEVE ALL OF THE FOLLOWING GOALS:
(A) THE BROADEST POSSIBLE ARRAY OF CUSTOMER CHOICE 32
REGARDING THOSE ASPECTS OF RETAIL ELECTRIC SERVICE FOR WHICH 33
COMPETITIVE OFFERING IS APPROPRIATE; 34
(B) EQUITABLE DISTRIBUTION AMONG ALL ELECTRIC CONSUMERS OF 36
THE BENEFITS OF EFFECTIVE COMPETITION, AND MECHANISMS TO ENSURE 37
THAT LOW-USE CONSUMERS ARE NOT DISADVANTAGED BY A LACK OF 38
2
BARGAINING POWER;
(C) COMPARABLE AND NONDISCRIMINATORY ACCESS TO ALL 40
SERVICES BY ELECTRIC CONSUMERS AND SUPPLIERS; 42
(D) A SHIFT FROM TRADITIONAL REGULATION TO SAFEGUARDING 44
AGAINST POTENTIAL MARKET POWER ABUSES, AND FROM PROTECTION OF 45
CAPTIVE ELECTRIC CONSUMERS TO THE PROMOTION OF EFFECTIVE 46
COMPETITIVE CHOICE FOR ALL CONSUMERS;
(E) ASSURANCE OF UNIVERSAL SERVICE AND THE RELIABILITY OF 48
ELECTRIC SERVICE, AND THE PRESERVATION AND IMPROVEMENT OF THE 49
QUALITY AND SAFETY OF ELECTRIC SERVICE; 50
(F) FULL MAINTENANCE OF THE FIVE CURRENT LOW-INCOME 52
ASSISTANCE PROGRAMS FOR ELECTRIC CONSUMERS DURING AND AFTER THE 53
TRANSITION TO A COMPETITIVE ELECTRIC MARKET, AND COORDINATION AND 54
CONSOLIDATION OF THE PROGRAMS TO IMPROVE DELIVERY TO CONSUMERS; 55
(G) FULFILLMENT OF THIS STATE'S RESPONSIBILITIES TO 57
ACHIEVE APPROPRIATE ENERGY CONSERVATION AND ENVIRONMENTAL 58
PROTECTION;
(H) A TRANSITION THAT PROVIDES FOR THE PROTECTION OF 60
CONSUMERS AND ASSURANCE OF THE RELIABILITY OF THE DELIVERY OF 62
ELECTRIC SERVICES;
(I) ALLOWANCE OF TRANSITION COSTS THAT ARE REASONABLE AND 64
FAIR FOR ALL STAKEHOLDERS AND THAT ARE ESTABLISHED ON A RATIONAL 65
BASIS;
(J) AN AMPLE TRANSITION TO A NEW STATE TAX STRUCTURE THAT 67
PROTECTS SCHOOL AND LOCAL FUNDING NEEDS AND THAT IS REVENUE 68
NEUTRAL, WITH NO OVERALL NET TAX INCREASE TO ENERGY CONSUMERS OR 69
TAX WINDFALL TO THOSE CURRENTLY RECEIVING TAX REVENUES. 70