Interim Report of the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 3 5
1999-2000 6
_________________________________________________________________ 9
A B I L L
To amend sections 113.061, 133.04, 715.013, 718.01, 11
1551.33, 1551.35, 3317.028, 4905.01, 4905.03, 13
4905.10, 4905.34, 4905.402, 4905.42, 4905.70,
4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 14
4911.18, 4933.33, 4933.81, 4935.04, 5117.01, 15
5117.02, 5117.03, 5117.04, 5117.05, 5117.07,
5117.08, 5117.09, 5117.10, 5117.12, 5701.03, 16
5703.052, 5703.053, 5703.14, 5705.34, 5727.01, 18
5727.05, 5727.06, 5727.11, 5727.111, 5727.15,
5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 19
5727.38, 5727.42, 5727.45, 5727.47, 5727.53, 20
5727.60, 5727.61, 5727.72, 5727.99, 5733.04,
5733.05, 5733.06, 5733.09, 5733.98, 5739.011, and 21
5739.02; to enact sections 4928.01 to 4928.20, 22
4928.31 to 4928.44, 4928.51 to 4928.57, 4928.61
to 4928.64, 5727.03, 5727.80 to 5727.95, and 24
5733.39; and to repeal sections 4905.301, 25
4905.66, 4905.67, 4905.68, 4905.69, 4909.157,
4909.158, 4909.159, 4909.191, 4909.192, 4909.193, 26
4913.01, 4913.02, 4913.03, 4913.04, 4913.05, 27
4913.06, 4913.07, 4933.27, 4933.34, 5727.231, 29
5727.391, and 5727.73 of the Revised Code to
provide for competition in retail electric 30
service, including provisions regarding market
structure, consumer protection, competitive 31
auctioning, and transition revenues; to levy a 32
kilowatt-hour excise tax on electric distribution
companies; to revise taxes for electric companies 33
and rural electric companies; and to reduce tax
2
assessment rates on certain electric company and 35
rural electric company tangible personal
property. 36
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 38
Section 1. That sections 113.061, 133.04, 715.013, 718.01, 40
1551.33, 1551.35, 3317.028, 4905.01, 4905.03, 4905.10, 4905.34, 42
4905.402, 4905.42, 4905.70, 4906.10, 4909.01, 4909.05, 4909.15, 43
4909.161, 4911.18, 4933.33, 4933.81, 4935.04, 5117.01, 5117.02, 44
5117.03, 5117.04, 5117.05, 5117.07, 5117.08, 5117.09, 5117.10, 45
5117.12, 5701.03, 5703.052, 5703.053, 5703.14, 5705.34, 5727.01, 47
5727.05, 5727.06, 5727.11, 5727.111, 5727.15, 5727.30, 5727.31, 48
5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 5727.45, 5727.47, 49
5727.53, 5727.60, 5727.61, 5727.72, 5727.99, 5733.04, 5733.05, 50
5733.06, 5733.09, 5733.98, 5739.011, and 5739.02 be amended and 51
sections 4928.01, 4928.02, 4928.03, 4928.04, 4928.05, 4928.06, 52
4928.07, 4928.08, 4928.09, 4928.10, 4928.11, 4928.12, 4928.13, 53
4928.14, 4928.15, 4928.16, 4928.17, 4928.18, 4928.19, 4928.20, 54
4928.31, 4928.32, 4928.33, 4928.34, 4928.35, 4928.36, 4928.37, 55
4928.38, 4928.39, 4928.40, 4928.41, 4928.42, 4928.43, 4928.44, 56
4928.51, 4928.52, 4928.53, 4928.54, 4928.55, 4928.56, 4928.57, 57
4928.58, 4928.61, 4928.62, 4928.63, 4928.64, 5727.03, 5727.80, 59
5727.81, 5727.82, 5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 60
5727.88, 5727.89, 5727.90, 5727.91, 5727.92, 5727.93, 5727.94, 61
5727.95, and 5733.39 of the Revised Code be enacted to read as 63
follows:
Sec. 113.061. The treasurer of state shall adopt rules in 72
accordance with Chapter 119. of the Revised Code governing the 73
remittance of taxes by electronic funds transfer as required 74
under sections 5727.311, 5727.83, 5733.022, 5735.062, 5739.032, 75
5739.122, 5741.121, and 5747.072 of the Revised Code and any 77
other section of the Revised Code under which a person is 78
required to remit taxes by electronic funds transfer. The rules 79
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shall govern the modes of electronic funds transfer acceptable to 80
the treasurer OF STATE and under what circumstances each mode is 81
acceptable, the content and format of electronic funds transfers, 83
the coordination of payment by electronic funds transfer and 84
filing of associated tax reports and returns, the remittance of 85
taxes by means other than electronic funds transfer by persons 86
otherwise required to do so but relieved of the requirement by 87
the treasurer of state, and any other matter that in the opinion 88
of the treasurer of state facilitates payment by electronic funds 89
transfer in a manner consistent with those sections. 90
Upon failure by a person, if so required, to remit taxes by 92
electronic funds transfer in the manner prescribed under section 93
5727.311, 5727.83, 5733.022, 5735.062, 5739.032, 5739.122, 95
5741.121, or 5747.072 of the Revised Code and rules adopted under 96
this section, the treasurer of state shall notify the tax 97
commissioner of such failure if the treasurer OF STATE determines 98
that such failure was not due to reasonable cause or was due to 100
willful neglect, and shall provide the tax commissioner with any 101
information used in making that determination. The tax 102
commissioner may assess an additional charge as specified in the 103
respective section of the Revised Code governing the requirement 104
to remit taxes by electronic funds transfer. 105
The treasurer of state may implement means of 107
acknowledging, upon the request of a taxpayer, receipt of tax 108
remittances made by electronic funds transfer, and may adopt 109
rules governing acknowledgments. The cost of acknowledging 110
receipt of electronic remittances shall be paid by the person 111
requesting acknowledgment. 112
The treasurer of state, not the tax commissioner, is 114
responsible for resolving any problems involving electronic funds 115
transfer transmissions. 116
Sec. 133.04. (A) As used in this chapter, "net 125
indebtedness" means, as determined pursuant to this section, the 126
principal amount of the outstanding securities of a subdivision 127
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less the amount held in a bond retirement fund to the extent such 128
amount is not taken into account in determining the principal 129
amount outstanding under division (AA) of section 133.01 of the 130
Revised Code. For purposes of this definition, the principal 131
amount of outstanding securities includes the principal amount of 132
outstanding securities of another subdivision apportioned to the 133
subdivision as a result of acquisition of territory, and excludes 134
the principal amount of outstanding securities of the subdivision 135
apportioned to another subdivision as a result of loss of 136
territory and the payment or reimbursement obligations of the 137
subdivision under credit enhancement facilities relating to 138
outstanding securities. 139
(B) In calculating the net indebtedness of a subdivision, 141
none of the following securities, including anticipatory 142
securities issued in anticipation of their issuance, shall be 143
considered: 144
(1) Securities issued in anticipation of the levy or 146
collection of special assessments, either in original or refunded 147
form; 148
(2) Securities issued in anticipation of the collection of 150
current revenues for the fiscal year or other period not to 151
exceed twelve consecutive months, or securities issued in 152
anticipation of the collection of the proceeds from a 153
specifically identified voter-approved tax levy; 154
(3) Securities issued for purposes described in section 156
133.12 of the Revised Code; 157
(4) Securities issued under Chapter 122., 140., 165., 159
725., or 761., or section 131.23 of the Revised Code; 160
(5) Securities issued to pay final judgments or 162
court-approved settlements under authorizing laws and securities 163
issued under section 2744.081 of the Revised Code; 164
(6) Securities issued to pay costs of permanent 166
improvements to the extent they are issued in anticipation of the 167
receipt of, and are payable as to principal from, federal or 168
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state grants or distributions for, or legally available for, that 170
principal or for the costs of those permanent improvements; 171
(7) Securities issued to evidence loans from the state 173
capital improvements fund pursuant to Chapter 164. of the Revised 174
Code or from the state infrastructure bank pursuant to section 175
5531.09 of the Revised Code; 176
(8) SECURITIES ISSUED IN AN AMOUNT EQUAL TO THE PROPERTY 178
TAX REPLACEMENT PAYMENTS RECEIVED UNDER SECTION 5727.85 OR 179
5727.86 OF THE REVISED CODE; 180
(9) Other securities, including self-supporting 182
securities, excepted by law from the calculation of net 183
indebtedness or from the application of this chapter; 184
(9)(10) Any other securities outstanding on October 30, 186
1989, and then excepted from the calculation of net indebtedness 190
or from the application of this chapter, and securities issued at 191
any time to fund or refund those securities. 192
Sec. 715.013. Except as otherwise expressly authorized by 201
the Revised Code, no municipal corporation shall levy a tax that 202
is the same as or similar to a tax levied under Chapter 322., 203
3734., 3769., 4123., 4141., 4301., 4303., 4305., 4307., 4309., 204
5707., 5725., 5727., 5728., 5729., 5731., 5735., 5737., 5739., 205
5741., 5743., or 5749. of the Revised Code. 206
This section does not prohibit a municipal corporation from 208
levying a tax on amounts received for admission to any place OR, 209
ON AND AFTER JANUARY 1, 2001, ON THE INCOME OF AN ELECTRIC 210
COMPANY, AS DEFINED IN SECTION 5727.01 OF THE REVISED CODE. 211
Sec. 718.01. (A) As used in this chapter: 220
(1) "Internal Revenue Code" means the Internal Revenue 222
Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. 223
(2) "Schedule C" means internal revenue service schedule C 225
filed by a taxpayer pursuant to the Internal Revenue Code. 226
(3) "Form 2106" means internal revenue service form 2106 228
filed by a taxpayer pursuant to the Internal Revenue Code. 229
(4) "Intangible income" means income of any of the 231
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following types: income yield, interest, dividends, or other 232
income arising from the ownership, sale, exchange, or other 233
disposition of intangible property including, but not limited to, 234
investments, deposits, money, or credits as those terms are
defined in Chapter 5701. of the Revised Code. 235
(B) No municipal corporation with respect to that income 237
which THAT it may tax shall tax such income at other than a 239
uniform rate.
(C) No municipal corporation shall levy a tax on income at 241
a rate in excess of one per cent without having obtained the 242
approval of the excess by a majority of the electors of the 243
municipality voting on the question at a general, primary, or 244
special election. The legislative authority of the municipal 245
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the 246
ordinance together with a resolution specifying the date the 247
election is to be held and directing the board of elections to 248
conduct the election. The ballot shall be in the following form: 249
"Shall the Ordinance providing for a... per cent levy on income 250
for (Brief description of the purpose of the proposed levy) be
passed? 251
FOR THE INCOME TAX 253
AGAINST THE INCOME TAX" 255
In the event of an affirmative vote, the proceeds of the 257
levy may be used only for the specified purpose. 258
(D)(1) Except as otherwise provided in division (D)(2) of 260
this section, no municipal corporation shall exempt from a tax on 261
income, compensation for personal services of individuals over 262
eighteen years of age or the net profit from a business or 263
profession.
(2) The legislative authority of a municipal corporation 265
may, by ordinance or resolution, exempt from a tax on income any 266
compensation arising from the grant, sale, exchange, or other 267
disposition of a stock option; the exercise of a stock option; or 268
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the sale, exchange, or other disposition of stock purchased under 269
a stock option.
(E) Nothing in this section shall prevent a municipal 271
corporation from permitting lawful deductions as prescribed by 272
ordinance. If a taxpayer's taxable income includes income 273
against which the taxpayer has taken a deduction for federal 274
income tax purposes as reportable on the taxpayer's form 2106, 275
and against which a like deduction has not been allowed by the
municipal corporation, the municipal corporation shall deduct 276
from the taxpayer's taxable income an amount equal to the 277
deduction shown on such form allowable against such income, to 278
the extent not otherwise so allowed as a deduction by the 279
municipal corporation. In the case of a taxpayer who has a net
profit from a business or profession that is operated as a sole 280
proprietorship, no municipal corporation may tax or use as the 281
base for determining the amount of the net profit that shall be 282
considered as having a taxable situs in the municipal 283
corporation, a greater amount than the net profit reported by the
taxpayer on schedule C filed in reference to the year in question 284
as taxable income from such sole proprietorship, except as 285
otherwise specifically provided by ordinance or regulation. 286
(F) No municipal corporation shall tax any of the 288
following:
(1) The military pay or allowances of members of the armed 290
forces of the United States and of members of their reserve 291
components, including the Ohio national guard; 292
(2) The income of religious, fraternal, charitable, 294
scientific, literary, or educational institutions to the extent 295
that such income is derived from tax-exempt real estate, 296
tax-exempt tangible or intangible property, or tax-exempt 297
activities;
(3) Except as otherwise provided in division (G) of this 299
section, intangible income; 300
(4) Compensation paid under section 3501.28 or 3501.36 of 302
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the Revised Code to a person serving as a precinct election 303
official, to the extent that such compensation does not exceed 304
one thousand dollars annually. Such compensation in excess of 305
one thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer 306
of such compensation to withhold any tax from that compensation. 307
(5) Compensation paid to an employee of a transit 309
authority, regional transit authority, or regional transit 310
commission created under Chapter 306. of the Revised Code for 311
operating a transit bus or other motor vehicle for the authority 312
or commission in or through the municipal corporation, unless the
bus or vehicle is operated on a regularly scheduled route, the 313
operator is subject to such a tax by reason of residence or 314
domicile in the municipal corporation, or the headquarters of the 315
authority or commission is located within the municipal 316
corporation.
(6) The income of a public utility when TO THE EXTENT that 318
THE public utility is UTILITY'S GROSS RECEIPTS ARE subject to the 320
tax levied under section 5727.30 of the Revised Code. 321
(G) Any municipal corporation that taxes any type of 323
intangible income on March 29, 1988, pursuant to Section 3 of 324
Amended Substitute Senate Bill No. 238 of the 116th general 325
assembly, may continue to tax that type of income after 1988 if a 326
majority of the electors of the municipal corporation voting on 327
the question of whether to permit the taxation of that type of
intangible income after 1988 vote in favor thereof at an election 328
held on November 8, 1988. 329
(H) Nothing in this section or section 718.02 of the 331
Revised Code, shall authorize the levy of any tax on income which 333
THAT a municipal corporation is not authorized to levy under 335
existing laws or shall require a municipal corporation to allow a 336
deduction from taxable income for losses incurred from a sole 337
proprietorship or partnership.
Sec. 1551.33. (A) The director of development shall 346
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appoint and fix the compensation of the director of the Ohio coal 347
development office established under section 1551.32 of the 348
Revised Code. The director of the office shall serve at the 349
pleasure of the director of development. 350
(B) The director of the office shall do all of the 352
following:
(1) Biennially prepare and maintain the Ohio coal 354
development agenda required under section 1551.34 of the Revised 355
Code; 356
(2) Propose and support policies for the office consistent 358
with the Ohio coal development agenda and develop means to 359
implement the agenda; 360
(3) Apportion for the office's administrative costs no 362
more than ten per cent of the moneys credited to the Ohio coal 363
development fund created under section 1551.36 of the Revised 364
Code; 365
(4) Initiate, undertake, and support projects to carry out 367
the office's purposes and ensure that the projects are consistent 368
with and meet the selection criteria established by the Ohio coal 369
development agenda; 370
(5) Actively encourage joint participation in and, when 372
feasible, joint funding of the office's projects with 373
governmental agencies, electric utilities, universities and 374
colleges, other public or private interests, or any other person; 375
(6) Establish a table of organization for and employ such 377
employees and agents as are necessary for the administration and 378
operation of the office; 379
(7) Appoint specified members of and convene the technical 381
advisory committee established under section 1551.35 of the 382
Revised Code; 383
(8) Review, with the assistance of the technical advisory 385
committee, proposed coal research and development projects as 386
defined in section 1555.01 of the Revised Code, and coal 387
development projects, submitted to the office by public utilities 388
10
for the purposes PURPOSE of sections 4905.301, SECTION 4905.304, 390
and 4909.191 of the Revised Code. If the director and the 391
advisory committee determine that any such facility or project 392
has as its purpose the enhanced use of Ohio coal in an 393
environmentally acceptable, cost effective manner, promotes 394
energy conservation, is cost effective, and is environmentally 395
sound, the director shall submit to the public utilities 396
commission a report recommending that the commission allow the 397
recovery of costs associated with the facility or project under 398
section 4905.301, 4905.304, or 4909.191 of the Revised Code and 399
including the reasons for the recommendation; 400
(9) Establish such policies, procedures, and guidelines as 402
are necessary to achieve the office's purposes. 403
(C) With the approval of the director of development, the 405
director of the office may exercise any of the powers and duties 406
of the director of development as the directors consider 407
appropriate or desirable to achieve the office's purposes, 408
including, but not limited to, the powers and duties enumerated 409
in sections 1551.11, 1551.12, 1551.13, and 1551.15 of the Revised 410
Code. 411
Additionally, the director of the office may make loans to 413
governmental agencies or persons for projects to carry out the 414
office's purposes. Fees, charges, rates of interest, times of 415
payment of interest and principal, and other terms, conditions, 416
and provisions of the loans shall be such as the director of the 417
office determines to be appropriate and in furtherance of the 418
purposes for which the loans are made. The mortgage lien 419
securing any moneys lent by the director of the office may be 420
subordinate to the mortgage lien securing any moneys lent or 421
invested by a financial institution, but shall be superior to 422
that securing any moneys lent or expended by any other person. 423
The moneys used in making the loans shall be disbursed upon order 424
of the director of the office. 425
Sec. 1551.35. (A) There is hereby established a technical 434
11
advisory committee to assist the director of the Ohio coal 435
development office established under section 1551.32 of the 436
Revised Code in achieving the office's purposes. The director 437
shall appoint to the committee one member of the public utilities 438
commission of Ohio and one representative each of coal production 439
companies, the united mine workers of America, electric 440
utilities, manufacturers that use Ohio coal, and environmental 441
organizations, as well as two people with a background in coal 442
research and development technology, one of whom is employed at 443
the time of the member's appointment by a state university, as 445
defined in section 3345.011 of the Revised Code. In addition, 446
the committee shall include four legislative members. The 447
speaker and minority leader of the house of representatives each 448
shall appoint one member of the house of representatives, and the 449
president and minority leader of the senate each shall appoint 450
one member of the senate, to the committee. The director of 451
environmental protection, representing the environmental 453
protection agency, the Ohio air quality development authority, 454
and the Ohio water development authority, shall serve on the 455
committee as members ex officio. Any member of the committee may
designate in writing a substitute to serve in the member's 456
absence on the committee. The director of environmental 457
protection may designate in writing the chief of the air 458
pollution control division of the agency to represent the agency. 459
Members shall serve on the committee at the pleasure of their 460
appointing authority. Members of the committee appointed by the 461
director of the office and, notwithstanding section 101.26 of the 462
Revised Code, legislative members of the committee, when engaged 463
in their official duties as members of the committee, shall be 464
compensated on a per diem basis in accordance with division (J) 465
of section 124.15 of the Revised Code, except that the member of 466
the public utilities commission of Ohio and, while employed by a 467
state university, the member with a background in coal research, 468
shall not be so compensated. Members shall receive their actual 469
12
and necessary expenses incurred in the performance of their 470
duties.
(B) The technical advisory committee shall review and make 472
recommendations concerning the Ohio coal development agenda 473
required under section 1551.34 of the Revised Code, project 474
proposals, research and development projects submitted to the 475
office by public utilities for the purposes PURPOSE of sections 477
4905.301, SECTION 4905.304, and 4909.191 of the Revised Code, 478
proposals for grants, loans, and loan guarantees for purposes of 479
sections 1555.01 to 1555.06 of the Revised Code, and such other 480
topics as the director of the office considers appropriate. 481
(C) The technical advisory committee may hold an executive 483
session at any regular or special meeting for the purpose of 484
considering research and development project proposals or 485
applications for assistance submitted to the Ohio coal 486
development office under section 1551.33, or sections 1555.01 to 487
1555.06, of the Revised Code, to the extent that such proposals 488
or applications consist of trade secrets or other proprietary 489
information. 490
Any materials or data submitted to, made available to, or 492
received by the director of development or the director of the 493
Ohio coal development office in connection with agreements for 494
assistance entered into under this chapter or Chapter 1555. of 496
the Revised Code, or any information taken from such materials or 497
data for any purpose, to the extent that the materials or data 498
consist of trade secrets or other proprietary information, are 499
not public records for the purposes of section 149.43 of the 500
Revised Code.
As used in this division, "trade secrets" has the same 502
meaning as in section 1333.61 of the Revised Code. 503
Sec. 3317.028. (A) On or before the fifteenth day of May 512
in each calendar year, the tax commissioner shall determine for 513
each school district whether the taxable value of all tangible 514
personal property, including utility tangible personal property, 515
13
subject to taxation by the district in the preceding tax year was 516
less or greater than the taxable value of such property during 517
the second preceding tax year. If any such decrease exceeds five 518
per cent of the district's tangible personal property taxable 519
value included in the total taxable value used in the district's 520
state aid computation for the fiscal year that ends in the 521
current calendar year, or if any such increase exceeds five per 522
cent of the district's total taxable value used in the district's 523
state aid computation for the fiscal year that ends in the 524
current calendar year, the tax commissioner shall certify BOTH OF 525
THE FOLLOWING to the department of education: 527
(A)(1) The taxable value of the tangible personal property 529
increase or decrease, including utility tangible personal 530
property increase or decrease, which shall be considered a change 531
in valuation; and 532
(B)(2) The decrease or increase in taxes charged and 534
payable on such change in taxable value calculated in the same 535
manner as in division (A)(3) of section 3317.021 of the Revised 536
Code.
(B) NOTWITHSTANDING DIVISION (A) OF THIS SECTION, WHEN 540
DETERMINING UNDER THAT DIVISION IN CALENDAR YEAR 2002 WHETHER THE 541
TAXABLE VALUE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAXATION 542
BY EACH SCHOOL DISTRICT IN THE PRECEDING TAX YEAR WAS LESS OR 543
GREATER THAN THE TAXABLE VALUE OF SUCH PROPERTY DURING THE SECOND 544
PRECEDING TAX YEAR, THE TAX COMMISSIONER SHALL EXCLUDE FROM THE 545
TAXABLE VALUE FOR BOTH YEARS THE CHANGES IN THE TAXABLE VALUE OF 546
ELECTRIC COMPANY AND RURAL ELECTRIC COMPANY TANGIBLE PERSONAL 547
PROPERTY ARISING FROM CHANGES FROM THE ASSESSMENT RATE UNDER 549
SECTION 5727.111 AND FROM CHANGES IN THE APPORTIONMENT OF SUCH
PROPERTY UNDER SECTION 5727.15 OF THE REVISED CODE, BOTH AS 550
AMENDED BY ___ BILL NO. ___ OF THE 123rd GENERAL ASSEMBLY. 552
(C) Upon receipt of such certification, the department of 554
education shall reduce or increase by the respective amounts 555
certified, the taxable value and the taxes charged and payable 556
14
that were used in the district's state aid computation under 557
section 3317.022 of the Revised Code for the fiscal year that 559
ends in the current calendar year and shall recompute the state 560
aid for such fiscal year. During the last six months of the 561
fiscal year, the department shall pay the district a sum equal to 562
one-half of the recomputed payments in lieu of the payments 563
otherwise required under such sections.
Sec. 4905.01. As used in this chapter: 572
(A) "Railroad" has the meaning set forth in section 574
4907.02 of the Revised Code. 575
(B) "Motor transportation company" has the meaning set 577
forth in sections 4905.03 and 4921.02 of the Revised Code. 578
(C) "Trailer," "public highway," "fixed termini," "regular 580
route," and "irregular route" have the meanings set forth in 581
section 4921.02 of the Revised Code. 582
(D) "Private motor carrier," "contract carrier by motor 584
vehicle," "motor vehicle," and "charter party trip" have the 585
meanings set forth in section 4923.02 of the Revised Code. 586
(E) "Delivery cost" means the cost of delivery of fuel, to 588
be used for the generation of electricity, from the site of 589
production directly to the site of an electric generating 590
facility. 591
(F) "Acquisition cost" means the cost to an electric light 593
company of acquiring fuel for generation of electricity. In the 594
case of a fuel supply owned by the company, such term shall also 595
include the cost of legally extracting the fuel and its handling 596
prior to its shipment to the company. In the case of a coal 597
supply owned or controlled in whole or in part by the company, 598
such term shall not exceed a price that is, in the judgment of 599
the public utilities commission, reasonable when compared to the 600
average cost per million British thermal units of similar quality 601
coal purchased from all independent like mining operations under 602
similar term contracts during the same period. In determining a 603
reasonable price for coal from a coal supply owned or controlled 604
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in whole or in part by the company, the public utilities 605
commission shall consider the use of: 606
(1) Capital by the developer of the mining operation in a 608
manner that did not: 609
(a) Take into account intermediate or long-term trends in 611
the coal mining industry; or 612
(b) Incorporate a design consistent with long-term 614
dependability; and 615
(c) Take into account the intermediate or long-term cost 617
and reliable energy supply interests of the company's customers; 618
or 619
(2) Ineffective operating techniques. Such term does not 621
embrace any associated cost, including, but not limited to, 622
delivery cost, the cost of handling the fuel after its delivery 623
to such facility, the cost of such processing, readying, or 624
refinement of the fuel as may be necessary in order to use the 625
fuel to generate electricity, or the cost of disposing of any 626
residue of such fuel after it has been so used. To the extent 627
the washing of coal is required, by law or rule, to remove or 628
reduce sulfur compounds or any other impurity, "acquisition cost" 629
includes the cost of such washing. 630
(G) "Fuel component" means acquisition and delivery costs 632
of fuel for the generation of electricity, including the 633
allowable costs of purchased power as defined in section 4909.159 634
of the Revised Code, divided by the corresponding number of net 635
kilowatt hours generated and purchased. 636
(H) "Base period" means the most recent six-month period 638
for which the public utilities commission has determined either 639
the amount of the fuel component or the fuel cost per kilowatt 640
hour included in the base rates of an electric light company, 641
whichever is last determined. 642
(I) "Current period" means the six-month period 644
immediately succeeding the base period for which the public 645
utilities commission has determined the amount of the fuel 646
16
component in the base rate of an electric light company. 647
(J) "Ohio coal research and development costs" means all 649
reasonable costs associated with a facility or project undertaken 650
by a public utility for which a recommendation to allow the 651
recovery of costs associated therewith has been made under 652
division (B)(8) of section 1551.33 of the Revised Code, 653
including, but not limited to, capital costs, such as costs of 654
debt and equity; construction and operation costs; termination 655
and retirement costs; costs of feasibility and marketing studies 656
associated with the project; and the acquisition and delivery 657
costs of Ohio coal used in the project, less any expenditures of 658
grant moneys. 659
(K) "Compliance facility" means property that is designed, 661
constructed, or installed, and used, at a coal-fired electric 662
generating facility for the primary purpose of complying with 663
Phase I acid rain control requirements under Title IV of the 664
"Clean Air Act Amendments of 1990," 104 Stat. 2584, 42 U.S.C.A. 665
7651, and that controls or limits emissions of sulfur or nitrogen 666
compounds resulting from the combustion of coal through the 667
removal or reduction of those compounds before, during, or after 668
the combustion of the coal, but before the combustion products 669
are emitted into the atmosphere. "Compliance facility" also 670
includes any of the following: 671
(1) A facility that removes sulfur compounds from coal 673
before the combustion of the coal and that is located off the 674
premises of the electric generating facility where the coal 675
processed by the compliance facility is burned; 676
(2) Modifications to the electric generating facility 678
where the compliance facility is constructed or installed that 679
are necessary to accommodate the construction or installation, 680
and operation, of the compliance facility; 681
(3) A byproduct disposal facility, as defined in section 683
3734.051 of the Revised Code, that exclusively disposes of wastes 684
produced by the compliance facility and other coal combustion 685
17
byproducts produced by the generating unit in or to which the 686
compliance facility is incorporated or connected regardless of 687
whether the byproduct disposal facility is located on the same 688
premises as the compliance facility or generating unit that 689
produces the wastes disposed of at the facility; 690
(4) Facilities or equipment that is acquired, constructed, 692
or installed, and used, at a coal-fired electric generating 693
facility exclusively for the purpose of handling the byproducts 694
produced by the compliance facility or other coal combustion 695
byproducts produced by the generating unit in or to which the 696
compliance facility is incorporated or connected. 697
Sec. 4905.03. As used in this chapter: 707
(A) Any person, firm, copartnership, voluntary 709
association, joint-stock association, company, or corporation, 710
wherever organized or incorporated, is: 711
(1) A telegraph company, when engaged in the business of 713
transmitting telegraphic messages to, from, through, or in this 714
state; 715
(2) A telephone company, when engaged in the business of 717
transmitting telephonic messages to, from, through, or in this 718
state and as such is a common carrier; 719
(3) A motor transportation company, when engaged in the 721
business of carrying and transporting persons or property or the 722
business of providing or furnishing such transportation service, 723
for hire, in or by motor-propelled vehicles of any kind, 724
including trailers, for the public in general, over any public 725
street, road, or highway in this state, except as provided in 726
section 4921.02 of the Revised Code; 727
(4) An electric light company, when engaged in the 729
business of supplying electricity for light, heat, or power 730
purposes to consumers within this state; 731
(5) A gas company, when engaged in the business of 733
supplying artificial gas for lighting, power, or heating purposes 734
to consumers within this state or when engaged in the business of 735
18
supplying artificial gas to gas companies or to natural gas 736
companies within this state, but a producer engaged in supplying 737
to one or more gas or natural gas companies, only such artifical 738
ARTIFICIAL gas as is manufactured by such producer as a 739
by-product of some other process in which such producer is 740
primarily engaged within this state is not thereby a gas company. 741
All rates, rentals, tolls, schedules, charges of any kind, or 742
agreements between any gas company and any other gas company or 743
any natural gas company providing for the supplying of artificial 744
gas and for compensation for the same, are subject to the 745
jurisdiction of the public utilities commission. 746
(6) A natural gas company, when engaged in the business of 748
supplying natural gas for lighting, power, or heating purposes to 749
consumers within this state, or when engaged in the business of 750
supplying natural gas to gas companies or to natural gas 751
companies within this state, but where a producer supplies to one 752
or more gas or natural gas companies only such gas as is produced 753
by such producer from wells drilled on land owned in fee by such 754
producer or where the principal use of such land by said producer 755
is other than the production of gas, within this state, such 756
producer is not thereby a natural gas company. All rates, 757
rentals, tolls, schedules, charges of any kind, or agreements 758
between a natural gas company and other natural gas companies or 759
gas companies providing for the supply of natural gas and for 760
compensation for the same, are subject to the jurisdiction of the 761
public utilities commission. The commission may, upon 762
application made to it, MAY relieve any producer of natural gas, 763
defined in this section as a gas company or a natural gas 764
company, of compliance with the obligations imposed by Chapters 765
4901., 4903., 4905., 4907., 4909., 4921., and 4923. of the 766
Revised Code, so long as such producer is not affiliated with or 767
under the control of a gas company or a natural gas company 768
engaged in the transportation or distribution of natural gas, or 769
so long as such producer does not engage in the distribution of 770
19
natural gas to consumers. 771
(7) A pipe-line company, when engaged in the business of 773
transporting natural gas, oil, or coal or its derivatives through 774
pipes or tubing, either wholly or partly within this state; 775
(8) A water-works company, when engaged in the business of 777
supplying water through pipes or tubing, or in a similar manner, 778
to consumers within this state; 779
(9) A heating or cooling company, when engaged in the 781
business of supplying water, steam, or air through pipes or 782
tubing to consumers within this state for heating or cooling 783
purposes; 784
(10) A messenger company, when engaged in the business of 786
supplying messengers for any purpose; 787
(11) A street railway company, when engaged in the 789
business of operating as a common carrier, a railway, wholly or 790
partly within this state, with one or more tracks upon, along, 791
above or below any public road, street, alleyway, or ground, 792
within any municipal corporation, operated by any motive power 793
other than steam and not a part of an interurban railroad, 794
whether such railway is termed A street, inclined-plane, 795
elevated, or underground railway; 796
(12) A suburban railroad company, when engaged in the 798
business of operating as a common carrier, whether wholly or 799
partially within this state, a part of a street railway 800
constructed or extended beyond the limits of a municipal 801
corporation, and not a part of an interurban railroad; 802
(13) An interurban railroad company, when engaged in the 804
business of operating a railroad, wholly or partially within this 805
state, with one or more tracks from one municipal corporation or 806
point in this state to another municipal corporation or point in 807
this state, whether constructed upon the public highways or upon 808
private rights-of-way, outside of municipal corporations, using 809
electricity or other motive power than steam power for the 810
transportation of passengers, packages, express matter, United 811
20
States mail, baggage, and freight. Such interurban railroad 812
company is included in the term "railroad" as used in section 813
4907.02 of the Revised Code;. 814
(14) A sewage disposal system company, when engaged in the 816
business of sewage disposal services through pipes or tubing, and 817
treatment works, or in a similar manner, within this state. 818
(B) "Motor-propelled vehicle" means any automobile, 820
automobile truck, motor bus, or any other self-propelled vehicle 821
not operated or driven upon fixed rails or tracks. 822
Nothing in this section shall be construed to mean that an 824
electric light company operated not for profit, owned and 825
operated exclusively by and solely for its customers, or owned or 826
operated by a municipal corporation, is subject to sections 827
4905.66, 4905.67, 4905.68, and 4905.69 of the Revised Code. 828
Sec. 4905.10. (A) For the sole purpose of maintaining and 837
administering the public utilities commission and exercising its 838
supervision and jurisdiction over the railroads and public 839
utilities of the state, an amount equivalent to the appropriation 840
from the public utilities fund CREATED UNDER DIVISION (B) OF THIS 841
SECTION to the public utilities commission for railroad and 843
public utilities regulation in each fiscal year shall be 844
apportioned among and assessed against the railroads EACH 845
RAILROAD and public utilities UTILITY within the state by the 847
commission by first computing an assessment as though it were to 848
be made in proportion to the intrastate gross earnings or 849
receipts, excluding earnings or receipts from sales to other 850
public utilities for resale, of the railroads and RAILROAD OR 851
public utilities UTILITY for the calendar year next preceding 852
that in which the assessments are ASSESSMENT IS made. The 854
COMMISSION MAY INCLUDE IN THAT FIRST COMPUTATION ANY AMOUNT OF A 856
RAILROAD'S OR PUBLIC UTILITY'S INTRASTATE GROSS EARNINGS OR
RECEIPTS THAT WERE UNDERREPORTED IN A PRIOR YEAR. IN ADDITION TO 857
WHATEVER PENALTIES APPLY UNDER THE REVISED CODE TO SUCH 858
UNDERREPORTING, THE COMMISSION SHALL ASSESS THE RAILROAD OR 860
21
PUBLIC UTILITY INTEREST AT THE RATE STATED IN SECTION 1343.03 OF 861
THE REVISED CODE. THE COMMISSION SHALL DEPOSIT ANY INTEREST SO 862
COLLECTED INTO THE PUBLIC UTILITIES FUND. 863
THE final computation of the assessment shall consist of 868
imposing upon each railroad and public utility whose assessment 869
under the first computation would have been fifty dollars or less 870
an assessment of fifty dollars and recomputing the assessment 871
ASSESSMENTS of the remaining railroads and public utilities by 873
apportioning an amount equal to the appropriation to the public 874
utilities commission for administration of the utilities division 875
in each fiscal year less the total amount to be recovered from 876
those paying the minimum assessment, in proportion to the 877
intrastate gross earnings or receipts of the remaining railroads 878
and public utilities for the calendar year next preceding that in 879
which the assessments are made.
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 881
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 882
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 883
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 884
UNDER SECTION 4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE 885
THOSE SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 886
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 887
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE COMMISSION 888
PURSUANT TO DIVISION (F) OF SECTION 4928.06 OF THE REVISED CODE, 889
AND VERIFIED BY THE COMMISSION. 890
(B) On or before the first day of October in each year, 892
the commission shall notify each such railroad and public utility 893
of the sum assessed against it, whereupon payment shall be made 894
to the commission, which shall deposit it into the state treasury 895
to the credit of the public utilities fund, which is hereby 897
created. Any such amounts paid into the fund but not expended by 898
the commission shall be credited ratably, after first deducting 899
any deficits accumulated from prior years, by the commission to 900
railroads and public utilities that pay more than the minimum 901
22
assessment, according to the respective portions of such sum 902
assessable against them for the ensuing calendar year. The 903
assessments for such calendar year shall be reduced 904
correspondingly. 905
(C) Within five days after the beginning of each fiscal 907
year, the director of budget and management shall transfer from 908
the general revenue fund to the public utilities fund an amount 909
sufficient for maintaining and administering the public utilities 911
commission and exercising its supervision and jurisdiction over 912
the railroads and public utilities of the state during the first 913
four months of the fiscal year. The director shall transfer the 914
same amount back to the general revenue fund from the public 915
utilities fund at such time as the director determines that the 916
balance of the public utilities fund is sufficient to support the 917
appropriations from the fund for the fiscal year. The director 918
may transfer less than that amount if the director determines 919
that the revenues of the public utilities fund during the fiscal 920
year will be insufficient to support the appropriations from the 921
fund for the fiscal year, in which case the amount not paid back 922
to the general revenue fund shall be payable to the general 923
revenue fund in future fiscal years. 924
(C)(D) FOR THE PURPOSE OF THIS SECTION ONLY, "PUBLIC 926
UTILITY" INCLUDES, IN ADDITION TO AN ELECTRIC UTILITY, AN 928
ELECTRIC SERVICES COMPANY, AN ELECTRIC COOPERATIVE, OR A
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 929
4928.08 OF THE REVISED CODE, TO THE EXTENT OF ITS ENGAGEMENT IN 932
THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE SUPPLY IN THIS 933
STATE OF ANY RETAIL ELECTRIC SERVICE FOR WHICH IT MUST BE SO 934
CERTIFIED.
(E) Each public utilities commissioner shall receive a 936
salary fixed at the level set by pay range 49 under schedule E-2 937
of section 124.152 of the Revised Code. 938
Sec. 4905.34. EXCEPT AS PROVIDED IN SECTIONS 4905.33 AND 947
4905.35 AND CHAPTER 4928. OF THE REVISED CODE, Chapters 4901., 948
23
4903., 4905., 4907., 4909., 4921., and 4923. of the Revised Code 951
do not prevent any public utility or railroad from granting any 952
of its property for any public purpose, or granting reduced rates 953
or free service of any kind to the United States, to the state or 954
any political subdivision of the state, for charitable purposes, 955
for fairs or expositions, to a law enforcement officer residing
in free housing provided pursuant to section 3735.43 of the 956
Revised Code, or to any officer or employee of such public 959
utility or railroad or the officer's or employee's family. All 960
contracts and agreements made or entered into by such public
utility or railroad for such use, reduced rates, or free service 961
are valid and enforcible at law. As used in this section, 962
"employee" includes furloughed, pensioned, and superannuated 964
employees.
Sec. 4905.402. (A) As used in this section: 973
(1) "Control" means the possession of the power to direct 975
the management and policies of a domestic telephone company or a 976
holding company of a domestic telephone company, OR THE 977
MANAGEMENT AND POLICIES OF A DOMESTIC ELECTRIC UTILITY OR A 978
HOLDING COMPANY OF A DOMESTIC ELECTRIC UTILITY, through the 979
ownership of voting securities, by contract, or otherwise, but 980
does not include the power that results from holding an official 981
position or the possession of corporate office with the domestic 982
telephone company OR UTILITY or THE holding company. Control is 984
presumed to exist if any person, directly or indirectly, owns, 985
controls, holds the power to vote, or holds with the power to 986
vote proxies which THAT constitute, twenty per cent or more of 987
the total voting power of the domestic telephone company OR 989
UTILITY or THE holding company. 990
(2) "ELECTRIC UTILITY" HAS THE SAME MEANING AS IN SECTION 992
4928.07 OF THE REVISED CODE. 993
(3) "Holding company" excludes any securities broker 995
performing the usual and customary broker's function. 996
(3)(4) "Telephone company" means any company described in 998
24
division (A)(2) of section 4905.03 of the Revised Code that is a 999
public utility under section 4905.02 of the Revised Code and 1,000
provides basic local exchange service, as defined in section 1,001
4927.01 of the Revised Code. 1,002
(B) No person shall acquire control, directly or 1,004
indirectly, of a domestic telephone company or a holding company 1,005
controlling a domestic telephone company OR OF A DOMESTIC 1,006
ELECTRIC UTILITY OR A HOLDING COMPANY CONTROLLING A DOMESTIC 1,007
ELECTRIC UTILITY unless that person obtains the prior approval of 1,009
the public utilities commission under this section. To obtain 1,010
approval the person shall file an application with the commission 1,011
demonstrating that the acquisition will promote public 1,012
convenience and result in the provision of adequate service for a 1,013
reasonable rate, rental, toll, or charge. The application shall 1,014
contain such information as the commission may require. If the 1,015
commission considers a hearing necessary, it may fix a time and 1,016
place for hearing. If, after review of the application and after 1,017
any necessary hearing, the commission is satisfied that approval 1,018
of the application will promote public convenience and result in 1,019
the provision of adequate service for a reasonable rate, rental, 1,020
toll, or charge, the commission shall approve the application and 1,021
make such order as it considers proper. If the commission fails 1,022
to issue an order within thirty days of the filing of the 1,023
application, or within twenty days of the conclusion of a 1,024
hearing, if one is held, the application shall be deemed approved 1,025
by operation of law. 1,026
(C) The public utilities commission shall adopt such rules 1,028
as it finds necessary to carry out this section. 1,029
(D) If it appears to the public utilities commission or to 1,031
any person who THAT may be adversely affected that any person is 1,032
engaged in or about to engage in any acts or practices that would 1,033
violate this section, the attorney general, when directed to do 1,034
so by the commission, or the person claiming to be adversely 1,035
affected may bring an action in any court of common pleas that 1,036
25
has jurisdiction and venue to enjoin such acts or practices and 1,037
enforce compliance with this section. Upon a proper showing, the 1,038
court shall grant, without bond, a restraining order or temporary 1,039
or permanent injunction. 1,040
(E) The courts of this state have jurisdiction over every 1,042
person not a resident of or domiciled or authorized to do 1,043
business in this state who THAT files, or is prohibited from 1,044
acting without first filing, an application under division (B) of 1,046
this section, and over all actions involving such person arising 1,047
out of violations of this section. The secretary of state shall 1,048
be the agent for service of process for any such person in any 1,049
action, suit, or proceeding arising out of violations of this 1,050
section. Copies of all such lawful process shall be served upon 1,051
the secretary of state and transmitted by certified mail, with 1,052
return receipt requested, by the secretary of state to such 1,053
person at his THE PERSON'S last known address. 1,054
Sec. 4905.42. To determine whether it should issue the 1,063
order referred to in section 4905.40 of the Revised Code, the 1,064
public utilities commission shall hold such hearings, make such 1,065
inquiries or investigations, and examine such witnesses, books, 1,066
papers, documents, and contracts as it deems proper. Within 1,067
forty-five days after an electric light company submits an 1,068
application under that section pertaining to the issuance of 1,069
stocks, bonds, notes, or other evidence of indebtedness to 1,070
acquire, construct, or install a compliance facility, the 1,071
commission shall complete its review and shall render a decision 1,072
on the application. 1,073
An order issued under this section shall fix the amount, 1,075
character, and terms of any issue of stocks, bonds, notes, or 1,076
other evidence of indebtedness, and the purposes to which the 1,077
issue or any proceeds of it shall be applied, shall recite that 1,078
the money, property, consideration, or labor procured or to be 1,079
procured or paid for by such issue was or is reasonably required 1,080
for the purposes specified in the order, and shall recite the 1,081
26
value of any property, consideration, or service, as found by the 1,082
commission, for which in whole or in part such issue is proposed 1,083
to be made. 1,084
No public utility or railroad shall, without the consent of 1,086
the commission, apply any such issue or its proceeds to any 1,087
purpose not specified in the order. Such public utilities or 1,088
railroads may issue notes for proper corporate purposes, payable 1,089
at periods of not more than twelve months, without the consent of 1,090
the commission, but no such notes shall, in whole or in part, 1,091
directly or indirectly, be refunded by any issue of stocks or 1,092
bonds, or by any evidence of indebtedness, running for more than 1,093
twelve months, without the consent of the commission. 1,094
All stocks, bonds, notes, or other evidence of indebtedness 1,096
issued by any public utility or railroad without the permission 1,097
of the commission are void. No interstate railroad or public 1,098
utility shall be required to apply to the commission for 1,099
authority to issue stocks, bonds, notes, or other evidence of 1,100
indebtedness for the acquisition of property, the construction, 1,101
completion, extension, or improvement of its facilities, or the 1,102
improvement or maintenance of its service outside this state, or 1,103
for authority for the discharge or refunding of obligations 1,104
issued or incurred for such purposes or the reimbursement of 1,105
moneys actually expended for such purposes outside this state. 1,106
No pipe-line company--when engaged in the business of 1,108
transporting oil through pipes or tubing, either wholly or 1,109
partly--within this state, shall be required to apply to the 1,110
commission for authority to issue stocks, bonds, notes, or other 1,111
evidence of indebtedness for the purpose of acquiring or paying 1,112
for stocks, bonds, notes, or other evidence of indebtedness of 1,113
any other corporation organized under the laws of this state, any 1,114
other state, the District of Columbia, the United States, any 1,115
territory of the United States, any foreign country, or 1,116
otherwise. 1,117
No company that is both a pipe-line company engaged as such 1,119
27
in the business of transporting natural gas through pipes or 1,120
tubing in interstate commerce, wholly or partly within this 1,121
state, and a natural gas company engaged as such in this state 1,122
solely in the business of supplying natural gas to gas companies 1,123
or to natural gas companies shall be required to apply to the 1,124
commission for authority to issue stocks, bonds, notes, or other 1,125
evidence of indebtedness. 1,126
Sec. 4905.70. The public utilities commission shall 1,135
initiate programs that will promote and encourage conservation of 1,136
energy and a reduction in the growth rate of energy consumption, 1,137
promote economic efficiencies, and take into account long-run 1,138
incremental costs. Notwithstanding sections 4905.31, 4905.33, 1,139
4905.35, and 4909.151 of the Revised Code, the public utilities 1,140
commission shall examine and issue written findings on the 1,141
declining block rate structure, lifeline rates, long-run 1,142
incremental pricing, peak load and off-peak pricing, time of day 1,143
and seasonal pricing, interruptible load pricing, and single rate 1,144
pricing where rates do not vary because of classification of 1,145
customers or amount of usage. The public utilities commission 1,146
shall establish criteria for the investigation, identification, 1,147
and remedy of the existence of any excess capacity, exclusive of 1,148
capacity used primarily for Ohio coal research and development, 1,149
as defined in section 1555.01 of the Revised Code, the costs of 1,150
which have been allowed for recovery under section 4905.301 or 1,151
4909.15 of the Revised Code, in the generating systems of 1,152
electric light companies. The public utilities commission, by a 1,153
rule adopted no later than October 1, 1977, and effective and 1,154
applicable no later than November 1, 1977, shall require each 1,155
electric light company to offer to such of their residential 1,156
customers whose residences are primarily heated by electricity 1,157
the option of their usage being metered by a demand or load 1,158
meter. A UNDER THE RULE, A customer who selects such option may, 1,160
under the rule, be required by the company, where no such meter 1,161
is already installed, to pay for such meter and its installation. 1,162
28
The rule shall require each company to bill such of its customers 1,163
who select such option for those kilowatt hours in excess of a 1,164
prescribed number of kilowatt hours per kilowatt of billing 1,165
demand, at a rate per kilowatt hour that reflects the lower cost 1,166
of providing service during off-peak periods. 1,167
Sec. 4906.10. (A) The power siting board shall render a 1,176
decision upon the record either granting or denying the 1,177
application as filed, or granting it upon such terms, conditions, 1,178
or modifications of the construction, operation, or maintenance 1,179
of the major utility facility as the board considers appropriate. 1,180
The certificate shall be conditioned upon the facility being in 1,181
compliance with standards and rules adopted under sections 1,182
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 1,183
6111. of the Revised Code. The period of initial operation, 1,184
under a certificate, shall expire two years after the date on 1,185
which electric power is first generated by the facility. During 1,186
the period of initial operation, the facility shall be subject to 1,187
the enforcement and monitoring powers of the director of 1,188
environmental protection under Chapters 3704., 3734., and 6111. 1,189
of the Revised Code and to the emergency provisions thereunder 1,190
UNDER THOSE CHAPTERS. If a major utility facility constructed in 1,192
accordance with the terms and conditions of its certificate is 1,193
unable to operate in compliance with all applicable requirements 1,194
of state laws, rules, and standards pertaining to air pollution, 1,195
the facility may apply to the director of environmental 1,196
protection for a conditional operating permit under division (G) 1,197
of section 3704.03 of the Revised Code and the rules adopted 1,198
thereunder. The operation of a major utility facility in 1,199
compliance with such a conditional operating permit is not in 1,200
violation of its certificate. After the expiration of the period 1,201
of initial operation of a major utility facility, the facility 1,202
shall be under the jurisdiction of the environmental protection 1,203
agency and shall comply with all laws, rules, and standards 1,204
pertaining to air pollution, water pollution, and solid and 1,205
29
hazardous waste disposal.
The board shall not grant a certificate for the 1,207
construction, operation, and maintenance of a major utility 1,208
facility, either as proposed or as modified by the board, unless 1,209
it finds and determines all of the following: 1,210
(1) The basis of the need for the facility;. IN THE CASE 1,212
OF A MAJOR UTILITY FACILITY DESCRIBED IN DIVISION (B)(1) OF 1,213
SECTION 4906.01 OF THE REVISED CODE TO BE CONSTRUCTED ON OR AFTER 1,214
JANUARY 1, 2000, THE BOARD SHALL PRESUME THE NEED FOR THE 1,215
FACILITY AS THAT NEED IS STATED IN AN APPLICATION PURSUANT TO 1,216
DIVISION (A)(3) OF SECTION 4906.06 OF THE REVISED CODE.
(2) The nature of the probable environmental impact; 1,218
(3) That the facility represents the minimum adverse 1,220
environmental impact, considering the state of available 1,221
technology and the nature and economics of the various 1,222
alternatives, and other pertinent considerations; 1,223
(4) In the case of an electric transmission line, that the 1,225
facility is consistent with regional plans for expansion of the 1,226
electric power grid of the electric systems serving this state 1,227
and interconnected utility systems and that the facility will 1,228
serve the interests of electric system economy and reliability; 1,229
(5) That the facility will comply with Chapters 3704., 1,231
3734., and 6111. of the Revised Code and all rules and standards 1,232
adopted under those chapters and under sections 1501.33, 1501.34, 1,233
and 4561.32 of the Revised Code. In determining whether the 1,234
facility will comply with all rules and standards adopted under 1,235
section 4561.32 of the Revised Code, the board shall consult with 1,236
the office of aviation of the division of transportation 1,238
assistance of the department of transportation under section 1,239
4561.341 of the Revised Code.
(6) That the facility will serve the public interest, 1,241
convenience, and necessity; 1,242
(7) In addition to the provisions contained in divisions 1,244
(A)(1) to (6) of this section, and rules adopted thereunder, what 1,245
30
its impact will be on the viability as agricultural land of any 1,246
land in an existing agricultural district established under 1,247
Chapter 929. of the Revised Code that is located within the site 1,248
and alternative site of the proposed major utility facility. 1,249
Rules adopted to evaluate impact under division (A)(7) of this 1,250
section shall not require the compilation, creation, submission, 1,251
or production of any information, document, or other data 1,252
pertaining to land not located within the site and alternative 1,253
site. 1,254
(8) That the facility incorporates maximum feasible water 1,256
conservation practices as determined by the board, considering 1,257
available technology and the nature and economics of the various 1,258
alternatives. 1,259
(B) If the board determines that the location of all or a 1,261
part of the proposed facility should be modified, it may 1,262
condition its certificate upon that modification, provided that 1,263
the municipal corporations and counties, and persons residing 1,264
therein, affected by the modification shall have been given 1,265
reasonable notice thereof. 1,266
(C) A copy of the decision and any opinion issued 1,268
therewith shall be served upon each party. 1,269
Sec. 4909.01. As used in this chapter: 1,278
(A) "Public utility" has the meaning set forth in section 1,280
4905.02 of the Revised Code. 1,281
(B) "Telegraph company," "telephone company," "electric 1,283
light company," "gas company," "natural gas company," "pipeline 1,284
company," "water-works company," "sewage disposal system 1,285
company," "heating or cooling company," "messenger company," 1,286
"street railway company," "suburban railroad company," 1,287
"interurban railroad company," and "motor-propelled vehicle" have 1,288
the meanings set forth in section 4905.03 of the Revised Code. 1,289
(C) "Railroad" has the meaning set forth in section 1,291
4907.02 of the Revised Code. 1,292
(D) "Motor transportation company" has the meaning set 1,294
31
forth in sections 4905.03 and 4921.02 of the Revised Code. 1,295
(E) "Trailers," "public highway," "fixed termini," 1,297
"regular route," and "irregular route" have the meanings set 1,298
forth in section 4921.02 of the Revised Code. 1,299
(F) "Private motor carrier," "contract carrier by motor 1,301
vehicle," "motor vehicle," and "charter party trip" have the 1,302
meanings set forth in section 4923.02 of the Revised Code. 1,303
(G) "Delivery cost" and "acquisition cost" have the 1,305
meanings set forth in section 4905.01 of the Revised Code. 1,306
(H) "Compliance facility" has the meaning set forth in 1,308
section 4905.01 of the Revised Code. 1,309
Nothing in this section shall be construed to mean that an 1,311
electric light company operated not for profit or one that is 1,312
owned or operated by a municipal corporation is subject to 1,313
section 4909.191 of the Revised Code. 1,314
Sec. 4909.05. As used in this section: 1,323
(A) A "lease purchase agreement" is an agreement pursuant 1,325
to which a public utility leasing property is required to make 1,326
rental payments for the term of the agreement and either the 1,327
utility is granted the right to purchase the property upon the 1,328
completion of the term of the agreement and upon the payment of 1,329
an additional fixed sum of money or title to the property vests 1,330
in the utility upon the making of the final rental payment. 1,331
(B) A "leaseback" is the sale or transfer of property by a 1,333
public utility to another person contemporaneously followed by 1,334
the leasing of the property to the public utility on a long-term 1,335
basis. 1,336
The public utilities commission shall prescribe the form 1,338
and details of the valuation report of the property of each 1,339
public utility or railroad in the state. Such report shall 1,340
include all the kinds and classes of property, with the value of 1,341
each, owned or held by each public utility or railroad used and 1,342
useful for the service and convenience of the public. Such 1,343
report shall contain the following facts in detail: 1,344
32
(C) The original cost of each parcel of land owned in fee 1,346
and in use at the date certain determined by the commission; and 1,347
also a statement of the conditions of acquisition, whether by 1,348
direct purchase, by donation, by exercise of the power of eminent 1,349
domain, or otherwise; 1,350
(D) The actual acquisition cost, not including periodic 1,352
rental fees, of rights-of-way, trailways, or other land rights 1,353
held by virtue of easements, leases, or other forms of grants of 1,354
rights as to usage; 1,355
(E) The original cost of all other kinds and classes of 1,357
property used and useful in the rendition of service to the 1,358
public. Such original costs of property, other than land owned 1,359
in fee, shall be the cost, as determined to be reasonable by the 1,360
commission, to the person that first dedicated the property to 1,361
the public use and shall be set forth in property accounts and 1,362
subaccounts as prescribed by the commission. To the extent that 1,363
the costs of property comprising a coal research and development 1,364
facility, as defined in section 1555.01 of the Revised Code, or a 1,365
coal development project, as defined in section 1551.30 of the 1,366
Revised Code, have been allowed for recovery as Ohio coal 1,367
research and development costs under section 4905.301, 4905.304, 1,368
or 4909.191 of the Revised Code, none of those costs shall be 1,369
included as a cost of property under this division. 1,370
(F) The cost of property constituting all or part of a 1,372
project leased to or used by the utility under Chapter 165., 1,373
3706., 6121., or 6123. of the Revised Code and not included under 1,374
division (E) of this section exclusive of any interest directly 1,375
or indirectly paid by the utility with respect thereto whether or 1,376
not capitalized; 1,377
(G) In the discretion of the commission, the cost to a 1,379
utility, in an amount determined to be reasonable by the 1,380
commission, of property constituting all or part of a project 1,381
leased to the utility under a lease purchase agreement or a 1,382
leaseback and not included under division (E) of this section 1,383
33
exclusive of any interest directly or indirectly paid by the 1,384
utility with respect thereto whether or not capitalized; 1,385
(H) The proper and adequate reserve for depreciation, as 1,387
determined to be reasonable by the commission; 1,388
(I) Any sums of money or property that the company may 1,390
have received as total or partial defrayal of the cost of its 1,391
property; 1,392
(J) The valuation of the property of the company, which 1,394
shall be the sum of the amounts contained in the report pursuant 1,395
to divisions (C), (D), (E), (F), and (G) of this section, less 1,396
the sum of the amounts contained in the report pursuant to 1,397
divisions (H) and (I) of this section. 1,398
The report shall show separately the property used and 1,400
useful to such public utility or railroad in the furnishing of 1,401
the service to the public, and the property held by such public 1,402
utility or railroad for other purposes, and such other items as 1,403
the commission considers proper. The commission may require an 1,404
additional report showing the extent to which the property is 1,405
used and useful. Such reports shall be filed in the office of 1,406
the commission for the information of the governor and the 1,407
general assembly. 1,408
Sec. 4909.15. (A) The public utilities commission, when 1,417
fixing and determining just and reasonable rates, fares, tolls, 1,418
rentals, and charges, shall determine: 1,419
(1) The valuation as of the date certain of the property 1,421
of the public utility used and useful in rendering the public 1,422
utility service for which rates are to be fixed and determined. 1,423
The valuation so determined shall be the total value as set forth 1,424
in division (J) of section 4909.05 of the Revised Code, and a 1,425
reasonable allowance for materials and supplies and cash working 1,426
capital, as determined by the public utilities commission. 1,427
The commission may, in its discretion, MAY include in the 1,429
valuation a reasonable allowance for construction work in 1,430
progress but, in no event, may such an allowance be made by the 1,431
34
commission until it has determined that the particular 1,432
construction project is at least seventy-five per cent complete. 1,433
In the case of a construction project involving the 1,435
installation, renovation, or maintenance of pollution control 1,436
equipment, the commission may include the project in the 1,437
valuation as construction work in progress as of the date that 1,438
the particular construction project is at least seventy-five per 1,439
cent complete. 1,440
As used in this division, "pollution control equipment" 1,442
means any construction project undertaken, in whole or in part, 1,443
to reduce sulfur or nitrous oxide emissions to levels established 1,444
by federal, state, or local statute, law, ordinance, regulation, 1,445
or order. The commission shall determine by rule what projects 1,446
qualify as pollution control equipment. 1,447
In determining the percentage completion of a particular 1,449
construction project, the commission shall consider, among other 1,450
relevant criteria, the per cent of time elapsed in construction; 1,451
the per cent of construction funds, excluding allowance for funds 1,452
used during construction, expended, or obligated to such 1,453
construction funds budgeted where all such funds are adjusted to 1,454
reflect current purchasing power; and any physical inspection 1,455
performed by or on behalf of any party, including the 1,456
commission's staff. 1,457
A reasonable allowance for construction work in progress 1,459
other than for construction projects involving the installation, 1,460
renovation, or maintenance of pollution control equipment shall 1,461
not exceed ten per cent of the total valuation as stated in this 1,462
division, not including such allowance for construction work in 1,463
progress. 1,464
The allowance for construction work in progress for 1,466
construction projects involving the installation, renovation, or 1,467
maintenance of pollution control equipment shall be the dollar 1,468
value of the project and shall not exceed, together with any 1,469
other allowance for construction work in progress granted under 1,470
35
this division, twenty per cent of the total valuation as stated 1,471
in this division, not including such allowance for construction 1,472
work in progress. 1,473
Where the commission permits an allowance for construction 1,475
work in progress, the dollar value of the project or portion 1,476
thereof included in the valuation as construction work in 1,477
progress shall not be included in the valuation as plant in 1,478
service until such time as the total revenue effect of the 1,479
construction work in progress allowance is offset by the total 1,480
revenue effect of the plant in service exclusion. Carrying 1,481
charges calculated in a manner similar to allowance for funds 1,482
used during construction shall accrue on that portion of the 1,483
project in service but not reflected in rates as plant in 1,484
service, and such accrued carrying charges shall be included in 1,485
the valuation of the property at the conclusion of the offset 1,486
period for purposes of division (J) of section 4909.05 of the 1,487
Revised Code. 1,488
From and after April 10, 1985, no allowance for 1,490
construction work in progress as it relates to a particular 1,491
construction project shall be reflected in rates for a period 1,492
exceeding forty-eight consecutive months commencing on the date 1,493
the initial rates reflecting such allowance become effective, 1,494
except as otherwise provided in this division. 1,495
In the case of a nuclear generating facility that has not 1,497
been granted a full construction permit by the nuclear regulatory 1,498
commission on or before April 10, 1985, the utility, within six 1,499
months after the granting of such permit, shall submit to the 1,500
public utilities commission a projected in service date for such 1,501
facility. Thereafter, no allowance for construction work in 1,502
progress as it relates to such nuclear generating facility shall 1,503
be reflected in rates for a period exceeding forty-eight 1,504
consecutive months commencing on the date the initial rates 1,505
reflecting such allowance become effective, or for a period 1,506
commencing on the date the initial rates reflecting such 1,507
36
allowance become effective and ending on the projected in service 1,508
date previously submitted to the commission, whichever period 1,509
expires first. 1,510
The applicable maximum period in rates for an allowance for 1,512
construction work in progress as it relates to a particular 1,513
construction project shall be tolled if, and to the extent, a 1,514
delay in the in-service date of the project is caused by the 1,515
action or inaction of any federal, state, county, or municipal 1,516
agency having jurisdiction, where such action or inaction relates 1,517
to a change in a rule, standard, or approval of such agency, and 1,518
where such action or inaction is not the result of the failure of 1,519
the utility to reasonably endeavor to comply with any rule, 1,520
standard, or approval prior to such change. 1,521
In the event that such period expires before the project 1,523
goes in INTO service, the commission shall EXCLUDE, from the date 1,525
of expiration, exclude the allowance for the project as 1,526
construction work in progress from rates, except that the 1,527
commission may extend the expiration date up to twelve months for 1,528
good cause shown. 1,529
In the event that a utility has permanently canceled, 1,531
abandoned, or terminated construction of a project for which it 1,532
was previously permitted a construction work in progress 1,533
allowance, the commission shall immediately SHALL exclude the 1,534
allowance for the project from the valuation. 1,536
In the event that a construction work in progress project 1,538
previously included in the valuation is removed from the 1,539
valuation pursuant to this division, any revenues collected by 1,540
the utility from its customers after April 10, 1985, which THAT 1,541
resulted from such prior inclusion shall be offset against future 1,542
revenues over the same period of time as the project was included 1,543
in the valuation as construction work in progress. The total 1,544
revenue effect of such offset shall not exceed the total revenues 1,545
previously collected. 1,546
In no event shall the total revenue effect of any offset or 1,548
37
offsets provided herein UNDER DIVISION (A)(1) OF THIS SECTION 1,550
exceed the total revenue effect of any construction work in 1,551
progress allowance.
(2) A fair and reasonable rate of return to the utility on 1,553
the valuation as determined in division (A)(1) of this section; 1,554
(3) The dollar annual return to which the utility is 1,556
entitled by applying the fair and reasonable rate of return as 1,557
determined under division (A)(2) of this section to the valuation 1,558
of the utility determined under division (A)(1) of this section; 1,559
(4) The cost to the utility of rendering the public 1,561
utility service for the test period less the total of any 1,562
interest on cash or credit refunds paid, pursuant to section 1,563
4909.42 of the Revised Code, by the utility during the test 1,564
period. 1,565
(a) Any depreciation expense of a compliance facility 1,567
shall be calculated under division (A)(4) of this section on the 1,568
basis of the useful service life of the compliance facility or 1,569
the remaining useful life of the electric generating unit in 1,570
connection with which the compliance facility was acquired, 1,571
constructed, or installed, whichever is the shorter time. 1,572
Division (A)(4)(a) of this section applies only to depreciation 1,573
expense of a compliance facility contained in the environmental 1,574
compliance plan of the electric light company approved under 1,575
Chapter 4913. of the Revised Code or in its compliance strategy 1,576
examined under section 4909.158 of the Revised Code. 1,577
(b) Federal, state, and local taxes imposed on or measured 1,580
by net income may, in the discretion of the commission, be 1,581
computed by the normalization method of accounting, provided the 1,582
utility maintains accounting reserves that reflect differences 1,583
between taxes actually payable and taxes on a normalized basis, 1,584
provided that no determination as to the treatment in the 1,585
rate-making process of such taxes shall be made that will result 1,587
in loss of any tax depreciation or other tax benefit to which the 1,588
utility would otherwise be entitled, and further provided that 1,589
38
such tax benefit as redounds to the utility as a result of such a 1,590
computation may not be retained by the company, used to fund any 1,591
dividend or distribution, or utilized for any purpose other than 1,592
the defrayal of the operating expenses of the utility and the 1,593
defrayal of the expenses of the utility in connection with 1,594
construction work.
(c)(b) The amount of any tax credits granted to an 1,596
electric light company under section 5727.391 5733.39 of the 1,597
Revised Code shall not be retained by the company, used to fund 1,599
any dividend or distribution, or utilized for any purposes other 1,600
than the defrayal of the allowable operating expenses of the 1,601
company and the defrayal of the allowable expenses of the company 1,602
in connection with the installation, acquisition, construction, 1,603
or use of a compliance facility. The amount of the tax credits 1,604
granted to an electric light company under that section shall be 1,605
returned to its customers within three years after initially 1,606
claiming the credit through an offset to the company's rates or 1,607
fuel component, as determined by the commission, as set forth in 1,608
schedules filed by the company under section 4905.30 of the 1,609
Revised Code. As used in division (A)(4)(c) of this section, 1,610
"compliance facility" has the same meaning as in section 5727.391 1,611
5733.39 of the Revised Code. 1,613
(B) The public utilities commission shall compute the 1,615
gross annual revenues to which the utility is entitled by adding 1,616
the dollar amount of return under division (A)(3) of this section 1,617
to the cost of rendering the public utility service for the test 1,618
period under division (A)(4) of this section. 1,619
(C) The test period, unless otherwise ordered by the 1,621
public utilities commission, shall be the twelve-month period 1,622
beginning six months prior to the date the application is filed 1,623
and ending six months subsequent to that date. In no event shall 1,624
the test period end more than nine months subsequent to the date 1,625
the application is filed. The revenues and expenses of the 1,626
utility shall be determined during the test period. The date 1,627
39
certain shall be not later than the date of filing. 1,628
(D) When the public utilities commission is of the 1,630
opinion, after hearing and after making the determinations under 1,631
divisions (A) and (B) of this section, that any rate, fare, 1,632
charge, toll, rental, schedule, classification, or service, or 1,633
any joint rate, fare, charge, toll, rental, schedule, 1,634
classification, or service rendered, charged, demanded, exacted, 1,635
or proposed to be rendered, charged, demanded, or exacted, is, or 1,636
will be, unjust, unreasonable, unjustly discriminatory, unjustly 1,637
preferential, or in violation of law, that the service is, or 1,638
will be, inadequate, or that the maximum rates, charges, tolls, 1,639
or rentals chargeable by any such public utility are insufficient 1,640
to yield reasonable compensation for the service rendered, and 1,641
are unjust and unreasonable, the commission shall: 1,642
(1) With due regard among other things to the value of all 1,644
property of the public utility actually used and useful for the 1,645
convenience of the public as determined under division (A)(1) of 1,646
this section, excluding from such value the value of any 1,647
franchise or right to own, operate, or enjoy the same in excess 1,648
of the amount, exclusive of any tax or annual charge, actually 1,649
paid to any political subdivision of the state or county, as the 1,650
consideration for the grant of such franchise or right, and 1,651
excluding any value added to such property by reason of a 1,652
monopoly or merger, with due regard in determining the dollar 1,653
annual return under division (A)(3) of this section to the 1,654
necessity of making reservation out of the income for surplus, 1,655
depreciation, and contingencies, and; 1,656
(2) With due regard to all such other matters as are 1,658
proper, according to the facts in each case, 1,659
(a) Including a fair and reasonable rate of return 1,661
determined by the commission with reference to a cost of debt 1,662
equal to the actual embedded cost of debt of such public utility, 1,663
(b) But not including the portion of any periodic rental 1,665
or use payments representing that cost of property which THAT is 1,666
40
included in the valuation report under divisions (F) and (G) of 1,667
section 4909.05 of the Revised Code, fix and determine the just 1,668
and reasonable rate, fare, charge, toll, rental, or service to be 1,669
rendered, charged, demanded, exacted, or collected for the 1,670
performance or rendition of the service that will provide the 1,671
public utility the allowable gross annual revenues under division 1,672
(B) of this section, and order such just and reasonable rate, 1,673
fare, charge, toll, rental, or service to be substituted for the 1,674
existing one. After such determination and order no change in 1,675
the rate, fare, toll, charge, rental, schedule, classification, 1,676
or service shall be made, rendered, charged, demanded, exacted, 1,677
or changed by such public utility without the order of the 1,678
commission, and any other rate, fare, toll, charge, rental, 1,679
classification, or service is prohibited. 1,680
(E) Upon application of any person or any public utility, 1,682
and after notice to the parties in interest and opportunity to be 1,683
heard as provided in Chapters 4901., 4903., 4905., 4907., 4909., 1,684
4921., and 4923. of the Revised Code for other hearings, has been 1,685
given, the commission may rescind, alter, or amend an order 1,686
fixing any rate, fare, toll, charge, rental, classification, or 1,687
service, or any other order made by the commission. Certified 1,688
copies of such orders shall be served and take effect as provided 1,689
for original orders. 1,690
Sec. 4909.161. (A) Notwithstanding the provisions of 1,699
Chapters 4905. and 4909. of the Revised Code, the payment of any 1,701
type of increased excise tax levy shall be considered to be a 1,702
normal expense incurred by a public utility in the course of 1,703
rendering service to the public, and may be recovered as such in
accordance with an order of the public utilities commission. Any 1,704
public utility required to pay any such increased excise tax levy 1,705
may file with the public utilities commission revised rate 1,706
schedules which THAT will permit full recovery on an interim or 1,708
permanent basis in its rates, of the amount of any resultant 1,709
increased tax payments and the commission shall promptly act to
41
approve such schedules. 1,710
(B) NOTWITHSTANDING CHAPTERS 4905. AND 4909. OF THE 1,715
REVISED CODE, THE PAYMENT OF THE KILOWATT-HOUR TAX IMPOSED BY 1,718
SECTION 5727.81 OF THE REVISED CODE SHALL BE CONSIDERED A NORMAL 1,721
EXPENSE INCURRED BY AN ELECTRIC DISTRIBUTION COMPANY, AS DEFINED
IN SECTION 5727.80 OF THE REVISED CODE, IN THE COURSE OF 1,722
RENDERING SERVICE TO THE PUBLIC, AND MAY BE RECOVERED AS SUCH IN 1,723
ACCORDANCE WITH AN ORDER OF THE COMMISSION. AN ELECTRIC 1,724
DISTRIBUTION COMPANY REQUIRED TO PAY THE KILOWATT-HOUR TAX MAY 1,725
FILE WITH THE COMMISSION REVISED RATE SCHEDULES THAT WILL PERMIT 1,726
FULL RECOVERY ON A PERMANENT BASIS IN ITS RATES, OF THE AMOUNT OF 1,727
ANY RESULTANT TAX PAYMENTS, AND THE COMMISSION SHALL ACT PROMPTLY 1,728
TO APPROVE THOSE SCHEDULES. IN APPROVING THE SCHEDULES, THE 1,729
COMMISSION SHALL PROVIDE THAT THE RATE EFFECT OF THE 1,730
KILOWATT-HOUR TAX DOES NOT VARY BY CUSTOMER AND IS EQUAL FOR EACH 1,732
CUSTOMER BASED SOLELY ON KILOWATT HOURS OF ELECTRICITY 1,733
DISTRIBUTED. AS USED IN THIS DIVISION, "KILOWATT HOUR" MEANS ONE
THOUSAND WATT-HOURS OF ELECTRICITY. 1,734
Sec. 4911.18. (A) For the sole purpose of maintaining and 1,743
administering the office of the consumers' counsel and exercising 1,744
the powers of the consumers' counsel under this chapter, an 1,745
amount equal to the appropriation to the office of the consumers' 1,746
counsel in each fiscal year shall be apportioned among and 1,747
assessed against the EACH public utilities UTILITY within the 1,749
state, as defined in section 4911.01 of the Revised Code, by 1,750
first computing an assessment as though it were to be made in 1,751
proportion to the intrastate gross earnings or receipts of the 1,752
public utilities companies UTILITY for the calendar year next 1,753
preceding that in which the assessments are ASSESSMENT IS made, 1,755
excluding earnings or receipts from sales to other public 1,757
utilities for resale. THE OFFICE MAY INCLUDE IN THAT FIRST 1,758
COMPUTATION ANY AMOUNT OF A RAILROAD'S OR PUBLIC UTILITY'S 1,759
INTRASTATE GROSS EARNINGS OR RECEIPTS UNDERREPORTED IN A PRIOR 1,760
YEAR. IN ADDITION TO WHATEVER PENALTIES APPLY UNDER THE REVISED 1,761
42
CODE TO SUCH UNDERREPORTING, THE OFFICE SHALL ASSESS THE RAILROAD 1,763
OR PUBLIC UTILITY INTEREST AT THE RATE STATED IN SECTION 1343.03 1,764
OF THE REVISED CODE. THE OFFICE SHALL DEPOSIT ANY INTEREST SO 1,765
COLLECTED INTO THE CONSUMERS' COUNSEL OPERATING FUND. 1,766
The final computation of the assessment shall consist of 1,768
imposing upon each company PUBLIC UTILITY whose assessment under 1,769
the first computation would have been fifty dollars or less an 1,771
assessment of fifty dollars and recomputing the assessment of the 1,772
remaining companies by apportioning an amount equal to the 1,773
appropriation to the office of consumers' counsel in each fiscal 1,774
year less the total amount to be recovered from those paying the 1,775
minimum assessment, in proportion to the intrastate gross 1,776
earnings or receipts of the remaining companies for the calendar 1,777
year next preceding that in which the assessments are made, 1,778
excluding earnings or receipts from sales to other public 1,779
utilities for resale. 1,780
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 1,782
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 1,783
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 1,784
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 1,785
UNDER SECTION 4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE 1,787
THOSE SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 1,788
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 1,789
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE PUBLIC 1,790
UTILITIES COMMISSION PURSUANT TO DIVISION (F) OF SECTION 4928.06 1,791
OF THE REVISED CODE, AND VERIFIED BY THE COMMISSION. 1,793
(B) On or before the first day of October in each year, 1,795
the OFFICE OF CONSUMERS' counsel shall notify each public utility 1,796
company of the sum assessed against it, whereupon payment shall 1,798
be made to the counsel, who shall deposit it into the state 1,799
treasury to the credit of the consumers' counsel operating fund, 1,801
which is hereby created. Any such amounts paid into the fund but 1,804
not expended by the counsel OFFICE shall be credited ratably by 1,806
the counsel OFFICE to the public utility companies which 1,808
43
UTILITIES THAT pay more than the minimum assessment, according to 1,810
the respective portions of such sum assessable against them for 1,811
the ensuing calendar year, after first deducting any deficits
accumulated from prior years. The assessments for such calendar 1,812
year shall be reduced correspondingly. 1,813
(C) Within five days after the beginning of each fiscal 1,815
year, the director of budget and management shall transfer from 1,816
the general revenue fund to the consumers' counsel operating fund 1,817
an amount sufficient for maintaining and administering the office 1,818
of the consumers' counsel and exercising the powers of the 1,819
consumers' counsel under this chapter during the first four 1,820
months of the fiscal year. Not later than the thirty-first day 1,821
of December of the fiscal year, the same amount shall be 1,823
transferred back to the general revenue fund from the consumers' 1,824
counsel operating fund.
(D) AS USED IN THIS SECTION, "PUBLIC UTILITY" INCLUDES, IN 1,826
ADDITION TO AN ELECTRIC UTILITY, AN ELECTRIC SERVICES COMPANY, AN 1,828
ELECTRIC COOPERATIVE, OR A GOVERNMENTAL AGGREGATOR SUBJECT TO
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE 1,830
EXTENT OF ITS ENGAGEMENT IN THE BUSINESS OF SUPPLYING OR 1,831
ARRANGING FOR THE SUPPLY IN THIS STATE OF ANY RETAIL ELECTRIC 1,832
SERVICE FOR WHICH IT MUST BE SO CERTIFIED. 1,833
Sec. 4928.01. (A) AS USED IN THIS CHAPTER: 1,835
(1) "ANCILLARY SERVICE" MEANS ANY FUNCTION NECESSARY TO 1,837
THE PROVISION OF ELECTRIC TRANSMISSION OR DISTRIBUTION SERVICE TO 1,838
A RETAIL CUSTOMER AND INCLUDES, BUT IS NOT LIMITED TO, 1,839
SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICES; REACTIVE 1,840
SUPPLY FROM GENERATION RESOURCES AND VOLTAGE CONTROL SERVICE; 1,841
REACTIVE SUPPLY FROM TRANSMISSION RESOURCES SERVICE; REGULATION 1,842
SERVICE; FREQUENCY RESPONSE SERVICE; ENERGY IMBALANCE SERVICE; 1,843
OPERATING RESERVE-SPINNING RESERVE SERVICE; OPERATING 1,844
RESERVE-SUPPLEMENTAL RESERVE SERVICE; LOAD FOLLOWING; BACK-UP 1,845
SUPPLY SERVICE; REAL-POWER LOSS REPLACEMENT SERVICE; DYNAMIC 1,846
SCHEDULING; SYSTEM BLACK START CAPABILITY; AND NETWORK STABILITY 1,847
44
SERVICE.
(2) "AUCTION CUSTOMER" MEANS A CUSTOMER THAT, AT ANY TIME 1,849
DURING THE MARKET DEVELOPMENT PERIOD, HAS NOT MADE AN AFFIRMATIVE 1,850
CHOICE TO BE SUPPLIED RETAIL ELECTRIC GENERATION SERVICE BY ITS 1,851
ELECTRIC DISTRIBUTION UTILITY OR HAS NOT CONTRACTED WITH AN 1,852
ANOTHER GENERATION SUPPLIER, OR A CUSTOMER THAT ELECTS TO OPT 1,853
INTO THE COMPETITIVE AUCTION PROCESS PROVIDED BY SECTION 4928.44 1,854
OF THE REVISED CODE. 1,855
(3) "BILLING AND COLLECTION AGENT" MEANS A FULLY 1,857
INDEPENDENT AGENT, NOT AFFILIATED WITH OR OTHERWISE CONTROLLED BY 1,858
AN ELECTRIC UTILITY, TO THE EXTENT THAT THE AGENT IS UNDER 1,859
CONTRACT WITH THE UTILITY SOLELY TO PROVIDE BILLING AND 1,860
COLLECTION FOR RETAIL ELECTRIC SERVICE ON BEHALF OF THE UTILITY. 1,861
(4) "CERTIFIED TERRITORY" MEANS THE CERTIFIED TERRITORY 1,863
ESTABLISHED FOR AN ELECTRIC SUPPLIER UNDER SECTIONS 4933.81 TO 1,864
4933.90 OF THE REVISED CODE AS AMENDED BY __.B. NO. ___ OF THE 1,865
123rd GENERAL ASSEMBLY. 1,866
(5) "COMPETITIVE AUCTION PERIOD" FOR A PARTICULAR ELECTRIC 1,868
UTILITY MEANS THE PERIOD OF TIME BEGINNING THE DAY AFTER THE 1,869
EXPIRATION DATE OF THE MARKET DEVELOPMENT PERIOD FOR THAT UTILITY 1,870
AND ENDING UPON SUCH DATE AS IS DETERMINED BY THE PUBLIC 1,871
UTILITIES COMMISSION PURSUANT TO SECTION 4928.44 OF THE REVISED 1,872
CODE.
(6) "COMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 1,874
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS COMPETITIVE AS 1,875
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 1,876
(7) "ELECTRIC COOPERATIVE" MEANS A NOT-FOR-PROFIT ELECTRIC 1,878
LIGHT COMPANY THAT BOTH IS OR HAS BEEN FINANCED IN WHOLE OR IN 1,879
PART UNDER THE "RURAL ELECTRIFICATION ACT OF 1936," 49 STAT. 1,883
1363, 7 U.S.C. 901 AND OWNS OR OPERATES FACILITIES IN THIS STATE 1,885
TO GENERATE, TRANSMIT, OR DISTRIBUTE ELECTRICITY. 1,886
(8) "ELECTRIC DISTRIBUTION UTILITY" MEANS AN ELECTRIC 1,888
UTILITY THAT SUPPLIES AT LEAST RETAIL ELECTRIC DISTRIBUTION 1,889
SERVICE.
45
(9) "ELECTRIC LIGHT COMPANY" HAS THE SAME MEANING AS IN 1,891
SECTION 4905.03 OF THE REVISED CODE AND INCLUDES AN ELECTRIC 1,892
SERVICES COMPANY. 1,893
(10) "ELECTRIC LOAD CENTER" HAS THE SAME MEANING AS IN 1,895
SECTION 4933.81 OF THE REVISED CODE. 1,896
(11) "ELECTRIC SERVICES COMPANY" MEANS AN ELECTRIC LIGHT 1,898
COMPANY THAT IS ENGAGED ON A FOR-PROFIT OR NOT-FOR-PROFIT BASIS 1,899
IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE SUPPLY OF ONLY 1,900
A COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 1,902
SERVICES COMPANY" INCLUDES A POWER MARKETER, POWER BROKER, 1,903
AGGREGATOR, OR INDEPENDENT POWER PRODUCER BUT EXCLUDES AN 1,904
ELECTRIC COOPERATIVE, MUNICIPAL ELECTRIC UTILITY, GOVERNMENTAL 1,906
AGGREGATOR, OR BILLING AND COLLECTION AGENT.
(12) "ELECTRIC SUPPLIER" HAS THE SAME MEANING AS IN 1,908
SECTION 4933.81 OF THE REVISED CODE. 1,909
(13) "ELECTRIC UTILITY" MEANS AN ELECTRIC LIGHT COMPANY 1,911
THAT IS ENGAGED ON A FOR-PROFIT BASIS IN THE BUSINESS OF 1,914
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE
OR IN THE BUSINESSES OF SUPPLYING BOTH A NONCOMPETITIVE AND A 1,916
COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 1,917
UTILITY" EXCLUDES MUNICIPAL ELECTRIC UTILITY OR A BILLING AND 1,919
COLLECTION AGENT.
(14) "GOVERNMENTAL AGGREGATOR" MEANS A LEGISLATIVE 1,921
AUTHORITY OF A MUNICIPAL CORPORATION, A BOARD OF TOWNSHIP 1,922
TRUSTEES, OR A BOARD OF COUNTY COMMISSIONERS ACTING AS AN 1,923
AGGREGATOR FOR THE PROVISION OF A COMPETITIVE RETAIL ELECTRIC 1,924
SERVICE UNDER AUTHORITY CONFERRED UNDER SECTION 4928.20 OF THE 1,926
REVISED CODE.
(15) A PERSON ACTS "KNOWINGLY," REGARDLESS OF THE PERSON'S 1,928
PURPOSE, WHEN THE PERSON IS AWARE THAT THE PERSON'S CONDUCT WILL 1,929
PROBABLY CAUSE A CERTAIN RESULT OR WILL PROBABLY BE OF A CERTAIN 1,930
NATURE. A PERSON HAS KNOWLEDGE OF CIRCUMSTANCES WHEN THE PERSON 1,931
IS AWARE THAT SUCH CIRCUMSTANCES PROBABLY EXIST. 1,932
(16) "LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS" MEANS THE 1,934
46
PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM AS PRESCRIBED IN RULES 1,935
4901:1-18-02(B) TO (G) AND 4901:1-18-04(B) OF THE OHIO 1,937
ADMINISTRATIVE CODE IN EFFECT ON THE EFFECTIVE DATE OF THIS 1,938
SECTION OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER SECTION 1,940
4928.52 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; THE HOME 1,941
ENERGY ASSISTANCE PROGRAM AS PRESCRIBED IN SECTION 5117.21 OF THE 1,942
REVISED CODE AND IN EXECUTIVE ORDER 97-1023-V OR, IF MODIFIED 1,943
PURSUANT TO AUTHORITY UNDER SECTION 4928.52 OF THE REVISED CODE, 1,944
THE PROGRAM AS MODIFIED; THE HOME WEATHERIZATION ASSISTANCE 1,946
PROGRAM AS PRESCRIBED IN DIVISION (A)(6) OF SECTION 122.011 AND 1,947
IN SECTION 122.02 OF THE REVISED CODE OR, IF MODIFIED PURSUANT TO 1,949
AUTHORITY UNDER SECTION 4928.52 OF THE REVISED CODE, THE PROGRAM
AS MODIFIED; THE OHIO ENERGY CREDIT PROGRAM AS PRESCRIBED IN 1,950
SECTIONS 5117.01 TO 5117.05, 5117.07 TO 5117.12, AND 5117.99 OF 1,951
THE REVISED CODE OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER 1,952
SECTION 4928.52 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; AND 1,953
THE TARGETED ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM 1,954
ESTABLISHED UNDER SECTION 4928.55 OF THE REVISED CODE. 1,955
(17) "MARKET DEVELOPMENT PERIOD" FOR AN ELECTRIC UTILITY 1,957
MEANS THE PERIOD OF TIME BEGINNING ON THE STARTING DATE OF 1,958
COMPETITIVE RETAIL ELECTRIC SERVICE AND ENDING ON THE APPLICABLE 1,959
DATE FOR THAT UTILITY AS SPECIFIED IN SECTION 4928.39 OR 4928.40 1,960
OF THE REVISED CODE, IRRESPECTIVE OF WHETHER THE UTILITY APPLIES 1,961
TO RECEIVE TRANSITION REVENUES UNDER THIS CHAPTER. 1,962
(18) "MARKET POWER" MEANS THE ABILITY TO IMPOSE ON 1,964
CUSTOMERS A SUSTAINED PRICE FOR A PRODUCT OR SERVICE ABOVE THE 1,965
PRICE THAT WOULD PREVAIL IN A COMPETITIVE MARKET. 1,966
(19) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 1,968
CORPORATION THAT OWNS OR OPERATES FACILITIES TO GENERATE, 1,969
TRANSMIT, OR DISTRIBUTE ELECTRICITY. 1,970
(20) "NONCOMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 1,972
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS NONCOMPETITIVE AS 1,973
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 1,974
(21) "PERSON" HAS THE SAME MEANING AS IN SECTION 1.59 OF 1,976
47
THE REVISED CODE. 1,978
(22) "PROJECT" MEANS ANY REAL OR PERSONAL PROPERTY 1,980
CONNECTED WITH ALL OR PART OF AN INDUSTRIAL, DISTRIBUTION, 1,981
COMMERCIAL, OR RESEARCH FACILITY, NOT-FOR-PROFIT FACILITY, OR 1,982
RESIDENCE THAT IS TO BE ACQUIRED, CONSTRUCTED, RECONSTRUCTED, 1,983
ENLARGED, IMPROVED, FURNISHED, OR EQUIPPED, OR ANY COMBINATION OF 1,984
THOSE ACTIVITIES, WITH AID FURNISHED PURSUANT TO SECTIONS 4928.61 1,985
TO 4928.64 OF THE REVISED CODE FOR THE PURPOSES OF 1,987
NOT-FOR-PROFIT, INDUSTRIAL, COMMERCIAL, DISTRIBUTION,
RESIDENTIAL, AND RESEARCH DEVELOPMENT IN THIS STATE. "PROJECT" 1,989
INCLUDES, BUT IS NOT LIMITED TO, ANY SMALL-SCALE RENEWABLES 1,990
PROJECT.
(23) "RETAIL ELECTRIC SERVICE" MEANS ANY SERVICE INVOLVED 1,992
IN SUPPLYING OR ARRANGING FOR THE SUPPLY OF ELECTRICITY TO 1,993
ULTIMATE CONSUMERS IN THIS STATE, FROM THE POINT OF GENERATION TO 1,994
THE POINT OF CONSUMPTION. FOR THE PURPOSES OF THIS CHAPTER, 1,995
RETAIL ELECTRIC SERVICE INCLUDES ONE OR MORE OF THE FOLLOWING 1,996
"SERVICE COMPONENTS": GENERATION SERVICE, AGGREGATION SERVICE, 1,997
POWER MARKETING SERVICE, POWER BROKERAGE SERVICE, TRANSMISSION 1,998
SERVICE, DISTRIBUTION SERVICE, ANCILLARY SERVICE, METERING 1,999
SERVICE, AND BILLING AND COLLECTION SERVICE. 2,000
(24) "STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,002
SERVICE" MEANS JANUARY 1, 2001, EXCEPT AS PROVIDED IN DIVISION 2,003
(C) OF THIS SECTION. 2,004
(B) FOR THE PURPOSES OF THIS CHAPTER, A RETAIL ELECTRIC 2,006
SERVICE COMPONENT SHALL BE DEEMED A COMPETITIVE RETAIL ELECTRIC 2,007
SERVICE IF THE SERVICE COMPONENT IS COMPETITIVE PURSUANT TO A 2,008
DECLARATION BY A PROVISION OF THE REVISED CODE OR PURSUANT TO AN 2,009
ORDER OF THE PUBLIC UTILITIES COMMISSION AUTHORIZED UNDER
DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE. OTHERWISE, 2,012
THE SERVICE COMPONENT SHALL BE DEEMED A NONCOMPETITIVE RETAIL 2,013
ELECTRIC SERVICE.
(C) PRIOR TO JANUARY 1, 2001, THE PUBLIC UTILITIES 2,015
COMMISSION MAY ISSUE AN ORDER DELAYING THE JANUARY 1, 2001, 2,017
48
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE BY A 2,018
SPECIFIED NUMBER OF DAYS NOT TO EXCEED SIX MONTHS, BUT ONLY FOR 2,019
EXTREME TECHNICAL CONDITIONS PRECLUDING THE START OF COMPETITIVE 2,021
RETAIL ELECTRIC SERVICE ON JANUARY 1, 2001. IF THE COMMISSION 2,022
ISSUES SUCH AN ORDER, THE EXPIRATION DATE OF THE MARKET 2,023
DEVELOPMENT PERIOD FOR AN ELECTRIC UTILITY UNDER SECTION 4928.39 2,024
OR 4928.40 OF THE REVISED CODE IS HEREBY SHORTENED BY THE NUMBER 2,025
OF DAYS OF THAT DELAY. 2,026
Sec. 4928.02. IT IS THE POLICY OF THIS STATE TO DO THE 2,028
FOLLOWING THROUGHOUT THIS STATE BEGINNING ON THE STARTING DATE OF 2,029
COMPETITIVE RETAIL ELECTRIC SERVICE: 2,030
(A) ENSURE THE AVAILABILITY TO CONSUMERS OF ADEQUATE, 2,032
RELIABLE, SAFE, EFFICIENT, NONDISCRIMINATORY, AND REASONABLY 2,033
PRICED RETAIL ELECTRIC SERVICE; 2,034
(B) ENSURE THE AVAILABILITY OF UNBUNDLED AND COMPARABLE 2,036
RETAIL ELECTRIC SERVICE THAT PROVIDES CONSUMERS WITH THE 2,037
SUPPLIER, PRICE, TERMS, CONDITIONS, AND QUALITY OPTIONS THEY 2,039
ELECT TO MEET THEIR RESPECTIVE NEEDS;
(C) ENSURE DIVERSITY OF ELECTRICITY SUPPLIES AND 2,041
SUPPLIERS, BY GIVING CONSUMERS EFFECTIVE CHOICES OVER THE 2,042
SELECTION OF THOSE SUPPLIES AND SUPPLIERS; 2,043
(D) ENCOURAGE INNOVATION AND MARKET ACCESS FOR 2,045
COST-EFFECTIVE SUPPLY- AND DEMAND-SIDE RETAIL ELECTRIC SERVICE; 2,046
(E) ENCOURAGE COST-EFFECTIVE AND EFFICIENT ACCESS TO 2,048
INFORMATION REGARDING THE OPERATION OF THE TRANSMISSION AND 2,049
DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES IN ORDER TO PROMOTE 2,051
EFFECTIVE CUSTOMER CHOICE OF RETAIL ELECTRIC SERVICE;
(F) RECOGNIZE THE CONTINUING EMERGENCE OF COMPETITIVE 2,053
ELECTRICITY MARKETS THROUGH THE DEVELOPMENT AND IMPLEMENTATION OF 2,054
FLEXIBLE REGULATORY TREATMENT; 2,055
(G) ENSURE EFFECTIVE COMPETITION IN THE PROVISION OF 2,057
RETAIL ELECTRIC SERVICE BY AVOIDING ANTICOMPETITIVE SUBSIDIES 2,058
FLOWING FROM A NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO A 2,060
COMPETITIVE RETAIL ELECTRIC SERVICE OR TO A PRODUCT OR SERVICE 2,061
49
OTHER THAN RETAIL ELECTRIC SERVICE, AND VICE VERSA;
(H) ENSURE RETAIL ELECTRIC SERVICE CONSUMERS PROTECTION 2,063
AGAINST UNREASONABLE SALES PRACTICES, MARKET DEFICIENCIES, AND 2,064
MARKET POWER; 2,065
(I) FACILITATE THE STATE'S EFFECTIVENESS IN THE GLOBAL 2,067
ECONOMY. 2,068
Sec. 4928.03. BEGINNING ON THE STARTING DATE OF 2,070
COMPETITIVE RETAIL ELECTRIC SERVICE, RETAIL ELECTRIC GENERATION, 2,071
AGGREGATION, POWER MARKETING, AND POWER BROKERAGE SERVICES 2,072
SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED TERRITORY OF AN 2,073
ELECTRIC UTILITY ARE COMPETITIVE RETAIL ELECTRIC SERVICES THAT 2,074
THE CONSUMERS MAY OBTAIN SUBJECT TO THIS CHAPTER FROM ANY 2,075
SUPPLIER OR SUPPLIERS. IN ACCORDANCE WITH A FILING UNDER 2,076
DIVISION (F) OF SECTION 4933.81 OF THE REVISED CODE, RETAIL 2,077
ELECTRIC GENERATION, AGGREGATION, POWER MARKETING, OR POWER 2,078
BROKERAGE SERVICES SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,079
TERRITORY OF AN ELECTRIC COOPERATIVE ARE COMPETITIVE RETAIL 2,080
ELECTRIC SERVICES THAT THE CONSUMERS MAY OBTAIN SUBJECT TO THIS 2,081
CHAPTER FROM ANY SUPPLIER OR SUPPLIERS. 2,082
BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 2,084
ELECTRIC SERVICE AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 2,085
EACH CONSUMER IN THIS STATE AND THE SUPPLIERS TO A CONSUMER SHALL 2,086
HAVE COMPARABLE AND NONDISCRIMINATORY ACCESS TO NONCOMPETITIVE 2,087
RETAIL ELECTRIC SERVICES OF AN ELECTRIC UTILITY IN THIS STATE FOR 2,088
THE PURPOSE OF SATISFYING THE CONSUMER'S ELECTRICITY REQUIREMENTS 2,089
IN KEEPING WITH THE POLICY SPECIFIED IN SECTION 4928.02 OF THE 2,091
REVISED CODE. 2,092
Sec. 4928.04. (A) THE PUBLIC UTILITIES COMMISSION BY 2,094
ORDER MAY DECLARE THAT RETAIL ANCILLARY, METERING, OR BILLING AND 2,095
COLLECTION SERVICE SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,097
TERRITORY OF AN ELECTRIC UTILITY ON OR AFTER THE STARTING DATE OF 2,098
COMPETITIVE RETAIL ELECTRIC SERVICE IS A COMPETITIVE RETAIL 2,099
ELECTRIC SERVICE THAT THE CONSUMERS MAY OBTAIN FROM ANY SUPPLIER. 2,100
THE COMMISSION MAY ISSUE SUCH ORDER, AFTER INVESTIGATION AND 2,101
50
PUBLIC HEARING, ONLY IF IT FIRST DETERMINES EITHER OF THE 2,102
FOLLOWING:
(1) THERE WILL BE EFFECTIVE COMPETITION WITH RESPECT TO 2,104
THE SERVICE. 2,105
(2) THE CUSTOMERS OF THE SERVICE HAVE REASONABLY AVAILABLE 2,107
ALTERNATIVES. 2,108
THE COMMISSION SHALL INITIATE A PROCEEDING ON OR BEFORE 2,110
MARCH 31, 2003, ON THE QUESTION OF THE DESIRABILITY, FEASIBILITY, 2,111
AND TIMING OF ANY SUCH COMPETITION. 2,112
(B) IN CARRYING OUT DIVISION (A) OF THIS SECTION, THE 2,114
COMMISSION MAY PRESCRIBE DIFFERENT CLASSIFICATIONS, PROCEDURES, 2,115
TERMS, OR CONDITIONS FOR DIFFERENT ELECTRIC UTILITIES AND FOR THE
RETAIL ELECTRIC SERVICES THEY PROVIDE THAT ARE DECLARED 2,116
COMPETITIVE PURSUANT TO THAT DIVISION, PROVIDED THE 2,117
CLASSIFICATIONS, PROCEDURES, TERMS, OR CONDITIONS ARE REASONABLE 2,118
AND DO NOT CONFER ANY UNDUE ECONOMIC, COMPETITIVE, OR MARKET 2,119
ADVANTAGE OR PREFERENCE UPON ANY ELECTRIC UTILITY. 2,120
Sec. 4928.05. (A)(1) ON AND AFTER THE STARTING DATE OF 2,122
COMPETITIVE RETAIL ELECTRIC SERVICE, A COMPETITIVE RETAIL 2,124
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC UTILITY SHALL NOT BE 2,125
SUBJECT TO SUPERVISION AND REGULATION BY THE PUBLIC UTILITIES 2,126
COMMISSION UNDER CHAPTERS 4901. TO 4909., 4933., 4935., OR 4963. 2,127
OF THE REVISED CODE, EXCEPT SECTIONS 4905.10, 4905.33, 4905.35, 2,129
AND 4933.81 TO 4933.90; EXCEPT SECTIONS 4905.06, 4935.03,
4963.40, AND 4963.41 OF THE REVISED CODE REGARDING SERVICE 2,131
RELIABILITY AND PUBLIC SAFETY; AND EXCEPT AS OTHERWISE PROVIDED 2,132
IN THIS CHAPTER. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,133
EXCEPTED PROVISIONS WITH RESPECT TO A COMPETITIVE RETAIL ELECTRIC 2,134
SERVICE SHALL BE SUCH AUTHORITY AS IS PROVIDED FOR THEIR 2,135
ENFORCEMENT UNDER CHAPTERS 4901. TO 4909., 4933., 4935., AND 2,136
4963. OF THE REVISED CODE AND THIS CHAPTER.
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,138
ELECTRIC SERVICE, A COMPETITIVE RETAIL ELECTRIC SERVICE SUPPLIED 2,139
BY AN ELECTRIC COOPERATIVE SHALL NOT BE SUBJECT TO SUPERVISION 2,140
51
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,141
4933., 4935., OR 4963. OF THE REVISED CODE, EXCEPT AS OTHERWISE 2,142
EXPRESSLY PROVIDED IN SECTIONS 4928.01 TO 4928.10 AND 4928.16 OF 2,143
THE REVISED CODE.
(2) ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,145
ELECTRIC SERVICE, A NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,146
SUPPLIED BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SUPERVISION 2,147
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,148
4933., 4935., AND 4963. OF THE REVISED CODE AND THIS CHAPTER, TO 2,149
THE EXTENT THAT AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE 2,151
COMMISSION'S AUTHORITY TO ENFORCE THOSE PROVISIONS WITH RESPECT 2,152
TO A NONCOMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE THE 2,153
AUTHORITY PROVIDED UNDER THOSE CHAPTERS AND THIS CHAPTER, TO THE 2,154
EXTENT THE AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. 2,155
THE COMMISSION SHALL EXERCISE ITS JURISDICTION WITH RESPECT 2,157
TO THE DELIVERY OF ELECTRICITY BY AN ELECTRIC UTILITY IN THIS 2,158
STATE ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,159
ELECTRIC SERVICE SO AS TO ENSURE THAT NO ASPECT OF THE DELIVERY 2,160
OF ELECTRICITY TO ULTIMATE CONSUMERS IN THIS STATE THAT CONSISTS 2,161
OF A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IS UNREGULATED. 2,162
ON AND AFTER THAT STARTING DATE, A NONCOMPETITIVE RETAIL 2,164
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC COOPERATIVE SHALL NOT BE 2,166
SUBJECT TO SUPERVISION AND REGULATION BY THE COMMISSION UNDER 2,167
CHAPTERS 4901. TO 4909., 4933., 4935., AND 4963. OF THE REVISED 2,168
CODE, EXCEPT SECTIONS 4933.81 TO 4933.90 AND 4935.03 OF THE
REVISED CODE. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,169
EXCEPTED SECTIONS WITH RESPECT TO A NONCOMPETITIVE RETAIL 2,170
ELECTRIC SERVICE OF AN ELECTRIC COOPERATIVE SHALL BE SUCH
AUTHORITY AS IS PROVIDED FOR THEIR ENFORCEMENT UNDER CHAPTERS 2,171
4933. AND 4935. OF THE REVISED CODE. 2,172
(B) NOTHING IN THIS CHAPTER AFFECTS THE AUTHORITY OF THE 2,174
COMMISSION UNDER TITLE XLIX OF THE REVISED CODE TO REGULATE AN 2,175
ELECTRIC LIGHT COMPANY IN THIS STATE OR AN ELECTRIC SERVICE 2,176
SUPPLIED IN THIS STATE PRIOR TO THE STARTING DATE OF COMPETITIVE 2,177
52
RETAIL ELECTRIC SERVICE. 2,178
Sec. 4928.06. (A) BEGINNING ON THE STARTING DATE OF 2,180
COMPETITIVE RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES 2,181
COMMISSION SHALL ENSURE THAT THE POLICY SPECIFIED IN SECTION 2,183
4928.02 OF THE REVISED CODE IS EFFECTUATED. TO THE EXTENT 2,185
NECESSARY, THE COMMISSION SHALL ADOPT RULES TO CARRY OUT THIS 2,186
CHAPTER. INITIAL RULES NECESSARY FOR THE COMMENCEMENT OF THE 2,187
COMPETITIVE RETAIL ELECTRIC SERVICE UNDER THIS CHAPTER SHALL BE 2,188
ADOPTED WITHIN ONE HUNDRED EIGHTY DAYS AFTER THE EFFECTIVE DATE 2,189
OF THIS SECTION. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, 2,190
THE PROCEEDINGS AND ORDERS OF THE COMMISSION UNDER THE CHAPTER 2,191
SHALL BE SUBJECT TO AND GOVERNED BY CHAPTER 4903. OF THE REVISED 2,192
CODE. 2,193
(B) IF THE COMMISSION DETERMINES, ON OR AFTER THE STARTING 2,196
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, THAT THERE IS A 2,197
DECLINE OR LOSS OF EFFECTIVE COMPETITION WITH RESPECT TO A 2,198
COMPETITIVE RETAIL ELECTRIC SERVICE DECLARED COMPETITIVE BY 2,199
COMMISSION ORDER ISSUED PURSUANT TO DIVISION (A) OF SECTION 2,200
4928.04 OF THE REVISED CODE, THE COMMISSION SHALL ENSURE THAT 2,201
THAT SERVICE IS PROVIDED AT COMPENSATORY, FAIR, AND 2,202
NONDISCRIMINATORY PRICES AND TERMS AND CONDITIONS. 2,203
(C) IN ADDITION TO ITS AUTHORITY UNDER SECTION 4928.04 OF 2,205
THE REVISED CODE AND DIVISIONS (A) AND (B) OF THIS SECTION, THE 2,207
COMMISSION, ON AN ONGOING BASIS, SHALL MONITOR AND EVALUATE THE 2,208
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE FOR THE 2,209
PURPOSE OF DISCERNING ANY NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,210
THAT SHOULD BE AVAILABLE ON A COMPETITIVE BASIS ON OR AFTER THE 2,211
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE PURSUANT TO 2,212
A DECLARATION IN THE REVISED CODE, AND FOR THE PURPOSE OF 2,213
DISCERNING ANY COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS NO 2,215
LONGER SUBJECT TO EFFECTIVE COMPETITION ON OR AFTER THAT DATE. 2,216
UPON SUCH EVALUATION, THE COMMISSION PERIODICALLY SHALL REPORT 2,217
ITS FINDINGS AND ANY RECOMMENDATIONS FOR LEGISLATION TO THE 2,218
STANDING COMMITTEES OF BOTH HOUSES OF THE GENERAL ASSEMBLY THAT 2,219
53
HAVE PRIMARY JURISDICTION REGARDING PUBLIC UTILITY LEGISLATION. 2,220
BUT, UNTIL 2008, THE COMMISSION AND THE CONSUMER'S COUNSEL ALSO 2,221
SHALL PROVIDE BIENNIAL REPORTS TO THOSE STANDING COMMITTEES, 2,222
REGARDING THE EFFECTIVENESS OF COMPETITION IN THE SUPPLY OF 2,223
COMPETITIVE RETAIL ELECTRIC SERVICES IN THIS STATE. 2,224
(D) IN DETERMINING, FOR PURPOSES OF DIVISION (B) OR (C) OF 2,227
THIS SECTION OR DIVISION (B) OF SECTION 4928.44 OF THE REVISED 2,228
CODE, WHETHER THERE IS EFFECTIVE COMPETITION IN THE PROVISION OF 2,229
A RETAIL ELECTRIC SERVICE BY AN ELECTRIC UTILITY OR REASONABLY 2,230
AVAILABLE ALTERNATIVES FOR THAT SERVICE, THE COMMISSION SHALL 2,231
CONSIDER FACTORS INCLUDING, BUT NOT LIMITED TO, ALL OF THE 2,232
FOLLOWING: 2,233
(1) THE NUMBER AND SIZE OF ALTERNATIVE PROVIDERS OF THAT 2,235
SERVICE;
(2) THE EXTENT TO WHICH THE SERVICE IS AVAILABLE FROM 2,237
ALTERNATIVE SUPPLIERS IN THE RELEVANT MARKET; 2,238
(3) THE ABILITY OF ALTERNATIVE SUPPLIERS TO MAKE 2,240
FUNCTIONALLY EQUIVALENT OR SUBSTITUTE SERVICES READILY AVAILABLE 2,241
AT COMPETITIVE PRICES, TERMS, AND CONDITIONS; 2,242
(4) OTHER INDICATORS OF MARKET POWER, WHICH MAY INCLUDE 2,244
MARKET SHARE, GROWTH IN MARKET SHARE, EASE OF ENTRY, AND THE 2,245
AFFILIATION OF SUPPLIERS OF SERVICES. 2,246
THE BURDEN OF PROOF SHALL BE ON ANY ENTITY REQUESTING, 2,248
UNDER DIVISION (B) OR (C) OF THIS SECTION, A DETERMINATION BY THE 2,249
COMMISSION OF THE EXISTENCE OF OR A LACK OF EFFECTIVE COMPETITION 2,250
OR REASONABLY AVAILABLE ALTERNATIVES. 2,251
(E)(1) BEGINNING ON THE STARTING DATE OF COMPETITIVE 2,253
RETAIL ELECTRIC SERVICE, THE COMMISSION HAS AUTHORITY UNDER 2,254
CHAPTERS 4901. TO 4909. OF THE REVISED CODE, AND SHALL EXERCISE 2,255
THAT AUTHORITY, TO RESOLVE ABUSES OF MARKET POWER BY ANY ELECTRIC 2,256
UTILITY THAT INTERFERE WITH EFFECTIVE COMPETITION IN THE 2,257
PROVISION OF RETAIL ELECTRIC SERVICE. 2,258
(2) IN ADDITION TO THE COMMISSION'S AUTHORITY UNDER 2,260
DIVISION (E)(1) OF THIS SECTION, THE COMMISSION, BEGINNING THE 2,262
54
FIRST YEAR AFTER THE MARKET DEVELOPMENT PERIOD OF A PARTICULAR 2,263
ELECTRIC UTILITY AND AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,264
HEARING, MAY TAKE SUCH MEASURES WITHIN A TRANSMISSION CONSTRAINED 2,265
AREA IN THE UTILITY'S CERTIFIED TERRITORY AS ARE NECESSARY TO 2,266
ENSURE THAT RETAIL ELECTRIC GENERATION SERVICE IS PROVIDED AT 2,267
REASONABLE RATES WITHIN THAT AREA. THE COMMISSION MAY EXERCISE 2,268
THIS AUTHORITY ONLY UPON FINDINGS THAT AN ELECTRIC UTILITY IS OR 2,269
HAS ENGAGED IN THE ABUSE OF MARKET POWER AND THAT THAT ABUSE IS 2,270
NOT ADEQUATELY MITIGATED BY RULES AND PRACTICES OF ANY 2,271
INDEPENDENT TRANSMISSION ENTITY CONTROLLING THE TRANSMISSION 2,272
FACILITIES. ANY SUCH MEASURE SHALL BE TAKEN ONLY TO THE EXTENT 2,273
NECESSARY TO PROTECT CUSTOMERS IN THE AREA FROM THE PARTICULAR 2,274
ABUSE OF MARKET POWER AND TO THE EXTENT THE COMMISSION'S 2,275
AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE MEASURE SHALL 2,276
REMAIN IN EFFECT UNTIL THE COMMISSION, AFTER REASONABLE NOTICE 2,277
AND OPPORTUNITY FOR HEARING, DETERMINES THAT THE PARTICULAR ABUSE 2,278
OF MARKET POWER HAS BEEN MITIGATED.
(F) AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,280
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,281
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE SHALL 2,282
PROVIDE THE COMMISSION WITH SUCH INFORMATION AS THE COMMISSION 2,283
CONSIDERS NECESSARY TO CARRY OUT THIS CHAPTER. AN ELECTRIC LIGHT 2,284
COMPANY SHALL PROVIDE THE COMMISSION WITH SUCH INFORMATION AS THE 2,285
COMMISSION CONSIDERS NECESSARY TO CARRY OUT DIVISIONS (B) TO (E) 2,286
OF THIS SECTION. THE COMMISSION SHALL TAKE SUCH MEASURES AS IT 2,287
CONSIDERS NECESSARY TO PROTECT THE CONFIDENTIALITY OF ANY SUCH 2,288
INFORMATION. 2,289
THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY AND EACH 2,291
ELECTRIC SERVICES COMPANY SUBJECT TO CERTIFICATION TO FILE WITH 2,292
THE COMMISSION ON AND AFTER THE STARTING DATE OF COMPETITIVE 2,293
RETAIL ELECTRIC SERVICE AN ANNUAL REPORT OF ITS INTRASTATE GROSS 2,294
RECEIPTS AND SALES OF KILOWATT-HOURS OF ELECTRICITY, AND SHALL 2,295
REQUIRE EACH ELECTRIC COOPERATIVE AND EACH GOVERNMENTAL 2,296
AGGREGATOR SUBJECT TO CERTIFICATION TO FILE AN ANNUAL REPORT ON 2,297
55
AND AFTER THAT STARTING DATE OF SUCH RECEIPTS AND SALES FROM THE 2,299
PROVISION OF THOSE RETAIL ELECTRIC SERVICES FOR WHICH IT IS 2,300
SUBJECT TO CERTIFICATION. FOR THE PURPOSE OF THE REPORTS, SALES 2,301
OF RETAIL ELECTRIC SERVICES ARE DEEMED TO OCCUR AT THE METER OF 2,302
THE RETAIL CUSTOMER.
Sec. 4928.07. TO THE MAXIMUM EXTENT PRACTICABLE ON OR 2,304
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 2,305
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,306
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,307
UNDER SECTION 4928.08 OF THE REVISED CODE SHALL SEPARATELY PRICE 2,309
COMPETITIVE RETAIL ELECTRIC SERVICES, AND THE PRICES SHALL BE 2,310
ITEMIZED ON THE BILL OF A CUSTOMER OR OTHERWISE DISCLOSED TO THE 2,311
CUSTOMER. ALTHOUGH A COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,312
BE SUPPLIED TO ANY CONSUMER ON SUCH A BASIS, SUCH AN ELECTRIC 2,313
UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 2,314
GOVERNMENTAL AGGREGATOR MAY REPACKAGE THE SERVICE ON OR AFTER THE 2,315
STARTING DATE AND OFFER IT ON A BUNDLED BASIS WITH OTHER RETAIL 2,316
ELECTRIC SERVICES TO MEET CONSUMER PREFERENCES. SUCH REPACKAGING 2,317
BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SECTIONS 4905.33 TO 2,318
4905.35 OF THE REVISED CODE. REPACKAGING BY SUCH AN ELECTRIC 2,320
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL
AGGREGATOR SHALL BE SUBJECT TO THE LIMITATION THAT NO SUCH ENTITY 2,321
SHALL FURNISH FREE SERVICE OR SERVICE FOR LESS THAN ACTUAL COST 2,322
FOR THE PURPOSE OF DESTROYING COMPETITION. 2,323
Sec. 4928.08. (A) THIS SECTION APPLIES TO AN ELECTRIC 2,325
COOPERATIVE, OR TO A GOVERNMENTAL AGGREGATOR THAT IS A MUNICIPAL 2,326
ELECTRIC UTILITY, ONLY TO THE EXTENT OF A COMPETITIVE RETAIL 2,328
ELECTRIC SERVICE IT PROVIDES TO A CUSTOMER TO WHOM IT DOES NOT 2,329
PROVIDE A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 2,330
TRANSMISSION OR DISTRIBUTION FACILITIES IT SINGLY OR JOINTLY OWNS 2,331
OR OPERATES.
(B) NO ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,333
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SHALL PROVIDE A 2,334
COMPETITIVE RETAIL ELECTRIC SERVICE TO A CONSUMER IN THIS STATE 2,335
56
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,336
SERVICE WITHOUT FIRST BEING CERTIFIED BY THE PUBLIC UTILITIES 2,337
COMMISSION REGARDING ITS MANAGERIAL, TECHNICAL, AND FINANCIAL 2,338
CAPABILITY TO PROVIDE THAT SERVICE. CERTIFICATION SHALL BE 2,339
GRANTED PURSUANT TO PROCEDURES AND STANDARDS THE COMMISSION SHALL 2,340
PRESCRIBE IN ACCORDANCE WITH DIVISION (C) OF THIS SECTION, EXCEPT 2,341
THAT CERTIFICATION OR CERTIFICATION RENEWAL SHALL BE DEEMED 2,342
APPROVED THIRTY DAYS AFTER THE FILING OF AN APPLICATION WITH THE 2,343
COMMISSION UNLESS THE COMMISSION SUSPENDS THAT APPROVAL FOR GOOD 2,344
CAUSE SHOWN. IN THE CASE OF SUCH A SUSPENSION, THE COMMISSION 2,345
SHALL ACT TO APPROVE OR DENY CERTIFICATION OR CERTIFICATION 2,346
RENEWAL TO THE APPLICANT NOT LATER THAN NINETY DAYS AFTER THE 2,347
DATE OF THE SUSPENSION. 2,348
(C) CAPABILITY STANDARDS ADOPTED IN RULES UNDER DIVISION 2,351
(B) OF THIS SECTION SHALL BE SUFFICIENT TO ENSURE COMPLIANCE WITH 2,352
THE MINIMUM SERVICE REQUIREMENTS ESTABLISHED UNDER SECTION 2,353
4928.10 OF THE REVISED CODE AND WITH SECTION 4928.09 OF THE 2,355
REVISED CODE. THE STANDARDS SHALL ALLOW FLEXIBILITY FOR 2,356
VOLUNTARY AGGREGATION, TO ENCOURAGE MARKET CREATIVITY IN 2,357
RESPONDING TO CONSUMER NEEDS AND DEMANDS. THE RULES SHALL 2,359
INCLUDE PROCEDURES FOR BIENNIALLY RENEWING CERTIFICATION. 2,360
(D) THE COMMISSION MAY SUSPEND, RESCIND, OR CONDITIONALLY 2,362
RESCIND THE CERTIFICATE OF ANY ELECTRIC UTILITY, ELECTRIC 2,364
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,365
AGGREGATOR ISSUED UNDER THIS SECTION IF THE COMMISSION 2,366
DETERMINES, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, 2,367
THAT THE UTILITY, COMPANY, COOPERATIVE, OR AGGREGATOR HAS FAILED 2,368
TO COMPLY WITH ANY APPLICABLE CERTIFICATION STANDARDS OR HAS 2,369
ENGAGED IN ANTICOMPETITIVE OR UNFAIR, DECEPTIVE, OR 2,370
UNCONSCIONABLE ACTS OR PRACTICES IN THIS STATE. 2,371
(E) NO ELECTRIC DISTRIBUTION UTILITY ON AND AFTER THE 2,373
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,374
KNOWINGLY DISTRIBUTE ELECTRICITY, TO A RETAIL CONSUMER IN THIS 2,375
STATE, FOR ANY SUPPLIER OF ELECTRICITY THAT HAS NOT BEEN 2,376
57
CERTIFIED BY THE COMMISSION PURSUANT TO THIS SECTION. 2,377
Sec. 4928.09. (A)(1) NO PERSON SHALL OPERATE IN THIS 2,379
STATE AS AN ELECTRIC UTILITY, AN ELECTRIC SERVICES COMPANY, OR A 2,380
BILLING AND COLLECTION AGENT ON AND AFTER THE STARTING DATE OF 2,381
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT PERSON FIRST DOES 2,383
BOTH OF THE FOLLOWING:
(a) CONSENTS IRREVOCABLY TO THE JURISDICTION OF THE COURTS 2,385
OF THIS STATE AND SERVICE OF PROCESS IN THIS STATE, INCLUDING, 2,386
WITHOUT LIMITATION, SERVICE OF SUMMONSES AND SUBPOENAS, FOR ANY 2,388
CIVIL OR CRIMINAL PROCEEDING ARISING OUT OF OR RELATING TO SUCH 2,389
OPERATION, BY PROVIDING THAT IRREVOCABLE CONSENT IN ACCORDANCE 2,390
WITH DIVISION (A)(4) OF THIS SECTION;
(b) DESIGNATES AN AGENT AUTHORIZED TO RECEIVE THAT SERVICE 2,392
OF PROCESS IN THIS STATE, BY FILING WITH THE COMMISSION A 2,393
DOCUMENT DESIGNATING THAT AGENT. 2,394
(2) NO PERSON SHALL CONTINUE TO OPERATE AS SUCH AN 2,396
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, OR BILLING AND 2,397
COLLECTION AGENT UNLESS THAT PERSON CONTINUES TO CONSENT TO SUCH 2,398
JURISDICTION AND SERVICE OF PROCESS IN THIS STATE AND CONTINUES 2,399
TO DESIGNATE AN AGENT AS PROVIDED UNDER THIS DIVISION, BY 2,400
REFILING IN ACCORDANCE WITH DIVISION (A)(4) OF THIS SECTION THE 2,401
APPROPRIATE DOCUMENTS FILED UNDER DIVISION (A)(1) OF THIS SECTION 2,402
OR, AS APPLICABLE, THE APPROPRIATE AMENDED DOCUMENTS FILED UNDER 2,403
DIVISION (A)(3) OF THIS SECTION. SUCH REFILING SHALL OCCUR 2,404
DURING THE MONTH OF DECEMBER OF EVERY FOURTH YEAR AFTER THE 2,405
INITIAL FILING OF A DOCUMENT UNDER DIVISION (A)(1) OF THIS 2,406
SECTION.
(3) IF THE ADDRESS OF THE PERSON FILING A DOCUMENT UNDER 2,408
DIVISION (A)(1) OR (2) OF THIS SECTION CHANGES, OR IF A PERSON'S 2,409
AGENT OR THE ADDRESS OF THE AGENT CHANGES, FROM THAT LISTED ON 2,410
THE MOST RECENTLY FILED OF SUCH DOCUMENTS, THE PERSON SHALL FILE
AN AMENDED DOCUMENT CONTAINING THE NEW INFORMATION. 2,411
(4) THE CONSENT AND DESIGNATION REQUIRED BY DIVISIONS 2,413
(A)(1) TO (3) OF THIS SECTION SHALL BE IN WRITING, ON FORMS 2,414
58
PRESCRIBED BY THE PUBLIC UTILITIES COMMISSION. THE ORIGINAL OF
EACH SUCH DOCUMENT OR AMENDED DOCUMENT SHALL BE LEGIBLE AND SHALL 2,415
BE FILED WITH THE COMMISSION, WITH A COPY FILED WITH THE OFFICE 2,416
OF THE CONSUMERS' COUNSEL AND WITH THE ATTORNEY GENERAL'S OFFICE. 2,417
(B) A PERSON WHO ENTERS THIS STATE PURSUANT TO A SUMMONS, 2,419
SUBPOENA, OR OTHER FORM OF PROCESS AUTHORIZED BY THIS SECTION IS 2,420
NOT SUBJECT TO ARREST OR SERVICE OF PROCESS, WHETHER CIVIL OR 2,421
CRIMINAL, IN CONNECTION WITH OTHER MATTERS THAT AROSE BEFORE THE 2,422
PERSON'S ENTRANCE INTO THIS STATE PURSUANT TO SUCH SUMMONS, 2,423
SUBPOENA, OR OTHER FORM OF PROCESS. 2,424
(C) DIVISIONS (A) AND (B) OF THIS SECTION DO NOT APPLY TO 2,426
ANY OF THE FOLLOWING: 2,427
(1) A CORPORATION INCORPORATED UNDER THE LAWS OF THIS 2,429
STATE THAT HAS APPOINTED A STATUTORY AGENT PURSUANT TO SECTION 2,430
1701.07 OR 1702.06 OF THE REVISED CODE; 2,431
(2) A FOREIGN CORPORATION LICENSED TO TRANSACT BUSINESS IN 2,433
THIS STATE THAT HAS APPOINTED A DESIGNATED AGENT PURSUANT TO 2,434
SECTION 1703.041 OF THE REVISED CODE; 2,435
(3) ANY OTHER PERSON THAT IS A RESIDENT OF THIS STATE OR 2,437
THAT FILES CONSENT TO SERVICE OF PROCESS AND DESIGNATES A 2,438
STATUTORY AGENT PURSUANT TO OTHER LAWS OF THIS STATE. 2,439
Sec. 4928.10. FOR THE PROTECTION OF CONSUMERS IN THIS 2,441
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,442
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE SPECIFYING 2,443
THE NECESSARY MINIMUM SERVICE REQUIREMENTS, ON OR AFTER THE 2,444
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, OF AN 2,445
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,446
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,447
UNDER SECTION 4928.08 OF THE REVISED CODE REGARDING THE PROVISION 2,448
OF SUCH A SERVICE DIRECTLY OR THROUGH ITS BILLING AND COLLECTION
AGENT. RULES ADOPTED UNDER THIS SECTION SHALL INCLUDE A 2,450
PROHIBITION AGAINST UNFAIR, DECEPTIVE, AND UNCONSCIONABLE ACTS 2,451
AND PRACTICES IN THE MARKETING, SOLICITATION, AND SALE OF A 2,452
COMPETITIVE RETAIL ELECTRIC SERVICE AND IN THE ADMINISTRATION OF 2,453
59
ANY CONTRACT FOR SUCH A SERVICE, AND ALSO SHALL INCLUDE 2,454
ADDITIONAL CONSUMER PROTECTIONS CONCERNING ALL OF THE FOLLOWING: 2,455
(A) CONTRACT DISCLOSURE. THE RULES SHALL INCLUDE 2,457
REQUIREMENTS THAT AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,458
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,459
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE DO BOTH 2,460
OF THE FOLLOWING:
(1) PROVIDE CONSUMERS WITH ADEQUATE, ACCURATE, AND 2,462
UNDERSTANDABLE PRICING AND TERMS AND CONDITIONS OF SERVICE, 2,463
INCLUDING ANY SWITCHING FEES, AND WITH A DOCUMENT CONTAINING THE 2,464
TERMS AND CONDITIONS OF PRICING AND SERVICE BEFORE THE CONSUMER 2,465
ENTERS INTO THE CONTRACT FOR SERVICE; 2,466
(2) DISCLOSE THE CONDITIONS UNDER WHICH A CUSTOMER MAY 2,468
RESCIND A CONTRACT WITHOUT PENALTY. 2,469
(B) SERVICE TERMINATION. THE RULES SHALL INCLUDE 2,471
DISCLOSURE OF THE TERMS IDENTIFYING HOW CUSTOMERS MAY SWITCH OR 2,472
TERMINATE SERVICE, INCLUDING ANY REQUIRED NOTICE AND ANY
PENALTIES. 2,473
(C) MINIMUM CONTENT OF CUSTOMER BILLS. THE RULES SHALL 2,475
INCLUDE ALL OF THE FOLLOWING REQUIREMENTS: 2,476
(1) UNIFORM PRICE DISCLOSURE AND DISCLOSURES OF TOTAL 2,478
BILLING UNITS FOR THE BILLING PERIOD AND HISTORICAL ANNUAL USAGE; 2,479
(2) TO THE MAXIMUM EXTENT PRACTICABLE, SEPARATE LISTING OF 2,481
EACH SERVICE COMPONENT TO ENABLE A CUSTOMER TO RECALCULATE ITS 2,482
BILL FOR ACCURACY; 2,483
(3) IDENTIFICATION OF THE SUPPLIER OF EACH SERVICE; 2,485
(4) STATEMENT OF WHERE AND HOW PAYMENT MAY BE MADE AND 2,487
PROVISION OF A TOLL-FREE OR LOCAL CUSTOMER ASSISTANCE AND 2,488
COMPLAINT NUMBER FOR THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,489
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR, AS 2,490
WELL AS A CONSUMER ASSISTANCE TELEPHONE NUMBER OR NUMBERS FOR 2,491
STATE AGENCIES, SUCH AS THE COMMISSION, THE OFFICE OF THE 2,492
CONSUMERS' COUNSEL, AND THE ATTORNEY GENERAL'S OFFICE, WITH THE 2,493
AVAILABLE HOURS NOTED.
60
(D) DISCONNECTION AND SERVICE TERMINATION, INCLUDING 2,495
REQUIREMENTS WITH RESPECT TO MASTER-METERED BUILDINGS. THE RULES 2,496
SHALL INCLUDE POLICIES AND PROCEDURES THAT ARE CONSISTENT WITH 2,497
SECTIONS 4933.121 AND 4933.122 OF THE REVISED CODE AND THE 2,498
COMMISSION'S RULES ADOPTED UNDER THOSE SECTIONS, AND THAT PROVIDE
FOR ALL OF THE FOLLOWING: 2,499
(1) COORDINATION BETWEEN SUPPLIERS FOR THE PURPOSE OF 2,501
MAINTAINING SERVICE; 2,502
(2) THE ALLOCATION OF PARTIAL PAYMENTS BETWEEN SUPPLIERS 2,504
WHEN SERVICE COMPONENTS ARE JOINTLY BILLED; 2,505
(3) A PROHIBITION AGAINST BLOCKING, OR AUTHORIZING THE 2,507
BLOCKING OF, CUSTOMER ACCESS TO A NONCOMPETITIVE RETAIL ELECTRIC 2,508
SERVICE WHEN A CUSTOMER IS DELINQUENT IN PAYMENTS TO THE ELECTRIC 2,509
UTILITY OR ELECTRIC SERVICES COMPANY FOR A COMPETITIVE RETAIL 2,510
ELECTRIC SERVICE;
(4) A PROHIBITION AGAINST SWITCHING, OR AUTHORIZING THE 2,512
SWITCHING OF, A CUSTOMER'S SUPPLIER OF COMPETITIVE RETAIL 2,513
ELECTRIC SERVICE WITHOUT THE PRIOR CONSENT OF THE CUSTOMER IN 2,514
ACCORDANCE WITH APPROPRIATE CONFIRMATION PRACTICES, WHICH MAY 2,515
INCLUDE INDEPENDENT, THIRD-PARTY VERIFICATION PROCEDURES. 2,516
(5) A REQUIREMENT OF DISCLOSURE OF THE CONDITIONS UNDER 2,518
WHICH A CUSTOMER MAY RESCIND A DECISION TO SWITCH ITS SUPPLIER 2,519
WITHOUT PENALTY; 2,520
(6) SPECIFICATION OF ANY REQUIRED NOTICE AND ANY PENALTY 2,522
FOR EARLY TERMINATION OF CONTRACT. 2,523
(E) MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY. 2,525
HOWEVER, SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS 2,526
FOR ELECTRIC GENERATION SERVICE SHALL BE DETERMINED PRIMARILY 2,528
THROUGH MARKET EXPECTATIONS AND CONTRACTUAL RELATIONSHIPS. 2,529
(F) GENERATION RESOURCE MIX AND ENVIRONMENTAL 2,531
CHARACTERISTICS OF POWER SUPPLIES. THE RULES SHALL INCLUDE 2,532
REQUIREMENTS FOR DETERMINATION OF THE APPROXIMATE GENERATION
RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS OF THE POWER 2,533
SUPPLIES AND DISCLOSURE TO THE CUSTOMER PRIOR TO THE CUSTOMER 2,534
61
ENTERING INTO A CONTRACT TO PURCHASE AND FOUR TIMES PER YEAR 2,535
UNDER THE CONTRACT. THE RULES ALSO SHALL REQUIRE THAT THE 2,536
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,537
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR PROVIDE, OR CAUSE ITS 2,538
BILLING AND COLLECTION AGENT TO PROVIDE, A CUSTOMER WITH 2,539
INFORMATION COMPARING THE PROJECTED, WITH THE ACTUAL AND
VERIFIABLE, RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS. THIS 2,540
DISCLOSURE SHALL OCCUR NOT LESS THAN ANNUALLY OR NOT LESS THAN 2,541
ONCE DURING THE CONTRACT PERIOD IF THE CONTRACT PERIOD IS LESS 2,542
THAN ONE YEAR, AND PRIOR TO ANY RENEWAL OF A CONTRACT. 2,543
(G) CUSTOMER INFORMATION. THE RULES SHALL INCLUDE 2,545
REQUIREMENTS THAT THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,547
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR MAKE 2,548
GENERIC CUSTOMER LOAD PATTERN INFORMATION AVAILABLE TO OTHER 2,549
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,550
BASIS, AND MAKE CUSTOMER-SPECIFIC INFORMATION AVAILABLE TO OTHER 2,551
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,552
BASIS UNLESS, AS TO CUSTOMER-SPECIFIC INFORMATION, THE CUSTOMER 2,553
OBJECTS. THE RULES SHALL ENSURE THAT CUSTOMERS ARE INFORMED 2,554
CLEARLY AND FREQUENTLY OF THE RIGHT TO OBJECT AND OF APPLICABLE 2,555
PROCEDURES.
Sec. 4928.11. FOR THE PROTECTION OF CONSUMERS IN THIS 2,557
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,558
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE THAT SPECIFY 2,559
MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS FOR 2,560
NONCOMPETITIVE RETAIL ELECTRIC SERVICES SUPPLIED BY AN ELECTRIC 2,561
UTILITY IN THIS STATE, TO THE EXTENT SUCH AUTHORITY IS NOT 2,562
PREEMPTED BY FEDERAL LAW. THE RULES SHALL INCLUDE PRESCRIPTIVE 2,563
STANDARDS FOR INSPECTION, MAINTENANCE, REPAIR, AND REPLACEMENT OF 2,564
THE TRANSMISSION AND DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES; 2,565
SHALL APPLY TO EACH SUBSTANTIAL TYPE OF TRANSMISSION OR 2,566
DISTRIBUTION EQUIPMENT OR FACILITY; SHALL PROVIDE FOR HIGH 2,567
QUALITY, SAFE, AND RELIABLE ELECTRIC SERVICE; AND SHALL INCLUDE 2,568
STANDARDS FOR OPERATION, RELIABILITY, AND SAFETY DURING PERIODS 2,569
62
OF EMERGENCY AND DISASTER. THE RULES ALSO SHALL INCLUDE 2,570
NONDISCRIMINATORY METERING STANDARDS. 2,571
THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO 2,573
REPORT ANNUALLY TO THE COMMISSION ON AND AFTER THE STARTING DATE 2,574
OF COMPETITIVE RETAIL ELECTRIC SERVICE, REGARDING ITS COMPLIANCE 2,575
WITH THE RULES. THE COMMISSION SHALL MAKE THE FILED REPORTS 2,576
AVAILABLE TO THE PUBLIC. PERIODICALLY AS DETERMINED BY 2,577
COMMISSION RULE UNDER DIVISION (A) OF SECTION 4928.06 OF THE 2,578
REVISED CODE AND IN A PROCEEDING INITIATED UNDER DIVISION (B) OF 2,579
SECTION 4928.16 OF THE REVISED CODE, THE COMMISSION SHALL REVIEW 2,580
A UTILITY'S REPORT TO DETERMINE THE UTILITY'S COMPLIANCE AND MAY 2,581
ACT PURSUANT TO DIVISION (B) OF SECTION 4928.16 OF THE REVISED 2,582
CODE TO ENFORCE COMPLIANCE. 2,583
Sec. 4928.12. (A) EXCEPT AS OTHERWISE PROVIDED IN 2,585
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ENTITY SHALL 2,586
OWN OR CONTROL TRANSMISSION FACILITIES LOCATED IN THIS STATE ON 2,587
OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE 2,588
UNLESS THAT ENTITY IS A MEMBER OF, AND TRANSFERS CONTROL OF THOSE 2,589
FACILITIES TO, ONE OR MORE QUALIFYING TRANSMISSION ENTITIES, AS 2,590
DESCRIBED IN DIVISION (B) OF THIS SECTION, THAT ARE OPERATIONAL.
(B) AN ENTITY THAT OWNS OR CONTROLS TRANSMISSION 2,592
FACILITIES LOCATED IN THIS STATE COMPLIES WITH DIVISION (A) OF 2,594
THIS SECTION IF EACH TRANSMISSION ENTITY OF WHICH IT IS A MEMBER 2,595
MEETS ALL OF THE FOLLOWING SPECIFICATIONS: 2,596
(1) THE TRANSMISSION ENTITY IS APPROVED BY THE FEDERAL 2,598
ENERGY REGULATORY COMMISSION. 2,599
(2) THE TRANSMISSION ENTITY EFFECTS SEPARATE CONTROL OF 2,601
TRANSMISSION FACILITIES FROM CONTROL OF GENERATION FACILITIES. 2,602
(3) THE TRANSMISSION ENTITY PROHIBITS OR OTHERWISE 2,604
PRECLUDES PANCAKED TRANSMISSION RATES. 2,605
(4) THE TRANSMISSION ENTITY IMPROVES SERVICE RELIABILITY 2,607
WITHIN THIS STATE. 2,608
(5) THE TRANSMISSION ENTITY ACHIEVES THE OBJECTIVES OF AN 2,610
OPEN AND COMPETITIVE ELECTRIC GENERATION MARKETPLACE, ELIMINATION 2,611
63
OF BARRIERS TO MARKET ENTRY, AND PRECLUSION OF CONTROL OF 2,612
BOTTLENECK ELECTRIC TRANSMISSION FACILITIES IN THE PROVISION OF 2,613
RETAIL ELECTRIC SERVICE. 2,614
(6) THE TRANSMISSION ENTITY IS OF SUFFICIENT SCOPE OR 2,616
OTHERWISE OPERATES TO SUBSTANTIALLY INCREASE ECONOMICAL SUPPLY 2,618
OPTIONS FOR CONSUMERS.
(7) THE GOVERNANCE STRUCTURE OR CONTROL OF THE 2,620
TRANSMISSION ENTITY IS INDEPENDENT OF THE OWNERS AND USERS OF THE 2,621
TRANSMISSION FACILITIES, AND NO MEMBER OF ITS BOARD OF DIRECTORS 2,622
HAS AN AFFILIATION, WITH SUCH AN OWNER OR USER OR WITH AN 2,623
AFFILIATE OF AN OWNER OR USER DURING THE MEMBER'S TENURE ON THE 2,624
BOARD, SUCH AS TO UNDULY AFFECT THE TRANSMISSION ENTITY'S 2,625
PERFORMANCE.
(8) THE TRANSMISSION ENTITY OPERATES UNDER POLICIES THAT 2,627
PROMOTE POSITIVE PERFORMANCE DESIGNED TO SATISFY THE ELECTRICITY 2,628
REQUIREMENTS OF CUSTOMERS. 2,629
(9) THE TRANSMISSION ENTITY IS CAPABLE OF MAINTAINING 2,631
REAL-TIME RELIABILITY OF THE ELECTRIC TRANSMISSION SYSTEM, 2,632
ENSURING COMPARABLE AND NONDISCRIMINATORY TRANSMISSION ACCESS AND 2,633
NECESSARY SERVICES, MINIMIZING SYSTEM CONGESTION, AND FURTHER 2,634
ADDRESSING REAL OR POTENTIAL TRANSMISSION CONSTRAINTS. 2,635
(C) TO THE EXTENT THAT A TRANSMISSION ENTITY UNDER 2,637
DIVISION (A) OF THIS SECTION IS AUTHORIZED TO BUILD TRANSMISSION 2,638
FACILITIES, THAT TRANSMISSION ENTITY HAS THE POWERS PROVIDED IN
AND IS SUBJECT TO SECTIONS 1723.01 TO 1723.08 OF THE REVISED 2,639
CODE.
(D) FOR THE PURPOSE OF FORMING OR PARTICIPATING IN A 2,641
REGIONAL REGULATORY OVERSIGHT BODY OR MECHANISM DEVELOPED FOR ANY 2,642
TRANSMISSION ENTITY UNDER DIVISION (A) OF THIS SECTION THAT IS OF 2,643
REGIONAL SCOPE AND OPERATES WITHIN THIS STATE: 2,644
(1) THE COMMISSION MAY MAKE JOINT INVESTIGATIONS, HOLD 2,646
JOINT HEARINGS, WITHIN OR OUTSIDE THIS STATE, AND ISSUE JOINT OR 2,647
CONCURRENT ORDERS IN CONJUNCTION OR CONCURRENCE WITH ANY OFFICIAL 2,648
OR AGENCY OF ANY STATE OR OF THE UNITED STATES, WHETHER IN THE 2,649
64
HOLDING OF THOSE INVESTIGATIONS OR HEARINGS, OR IN THE MAKING OF 2,650
THOSE ORDERS, THE COMMISSION IS FUNCTIONING UNDER AGREEMENTS OR 2,651
COMPACTS BETWEEN STATES, UNDER THE CONCURRENT POWER OF STATES TO 2,652
REGULATE INTERSTATE COMMERCE, AS AN AGENCY OF THE UNITED STATES, 2,653
OR OTHERWISE. 2,654
(2) THE COMMISSION MAY NEGOTIATE AND ENTER INTO AGREEMENTS 2,656
OR COMPACTS WITH AGENCIES OF OTHER STATES FOR COOPERATIVE 2,657
REGULATORY EFFORTS AND FOR THE ENFORCEMENT OF THE RESPECTIVE 2,658
STATE LAWS REGARDING THE TRANSMISSION ENTITY. 2,659
(E) IF A QUALIFYING TRANSMISSION ENTITY IS NOT OPERATIONAL 2,662
AS CONTEMPLATED IN DIVISION (A)(2) OF THIS SECTION AND DIVISION 2,663
(A) OF SECTION 4928.34 OF THE REVISED CODE, THE COMMISSION BY
RULE OR ORDER SHALL TAKE SUCH MEASURES OR IMPOSE SUCH 2,665
REQUIREMENTS ON ALL FOR-PROFIT ENTITIES THAT OWN OR CONTROL 2,666
ELECTRIC TRANSMISSION FACILITIES LOCATED IN THIS STATE AS THE 2,667
COMMISSION DETERMINES NECESSARY AND PROPER TO ACHIEVE 2,668
INDEPENDENT, NONDISCRIMINATORY OPERATION OF, AND SEPARATE 2,669
OWNERSHIP AND CONTROL OF, SUCH ELECTRIC TRANSMISSION FACILITIES 2,670
ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC
SERVICE. 2,671
Sec. 4928.13. THROUGH A PERIODIC FILING WITH THE PUBLIC 2,673
UTILITIES COMMISSION IN SUCH FORM AS THE COMMISSION SHALL 2,674
PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF THE 2,675
REVISED CODE, EACH ELECTRIC UTILITY THAT OWNS NUCLEAR GENERATION 2,676
FACILITIES LOCATED IN THIS STATE SHALL DEMONSTRATE COMPLIANCE 2,677
WITH DECOMMISSIONING REQUIREMENTS OF THE NUCLEAR REGULATORY
COMMISSION AND PUBLIC UTILITIES COMMISSION AND SHALL DEMONSTRATE 2,679
ADEQUATE FINANCING MECHANISMS TO FUND FACILITY DECOMMISSIONING. 2,680
Sec. 4928.14. (A) AFTER ITS COMPETITIVE AUCTION PERIOD, 2,682
AN ELECTRIC DISTRIBUTION UTILITY IN THIS STATE SHALL PROVIDE 2,683
CONSUMERS, ON A COMPARABLE AND NONDISCRIMINATORY BASIS WITHIN ITS 2,685
CERTIFIED TERRITORY, A STANDARD SERVICE OFFER OF ALL COMPETITIVE 2,686
RETAIL ELECTRIC SERVICES NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC 2,687
SERVICE TO CONSUMERS, INCLUDING A FIRM SUPPLY OF ELECTRIC 2,688
65
GENERATION SERVICE. SUCH OFFER SHALL BE FILED WITH THE PUBLIC 2,689
UTILITIES COMMISSION UNDER SECTION 4905.30 OF THE REVISED CODE. 2,690
(B) AFTER THAT COMPETITIVE AUCTION PERIOD, THE FAILURE OF 2,692
A SUPPLIER TO PROVIDE RETAIL ELECTRIC GENERATION SERVICE TO 2,693
CUSTOMERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC 2,694
DISTRIBUTION UTILITY SHALL RESULT IN THE SUPPLIER'S CUSTOMERS, 2,695
AFTER REASONABLE NOTICE, DEFAULTING TO THE UTILITY'S STANDARD 2,696
SERVICE OFFER FILED UNDER DIVISION (A) OF THIS SECTION UNTIL THE 2,697
CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. A SUPPLIER IS DEEMED 2,698
UNDER THIS SECTION TO HAVE FAILED TO PROVIDE SUCH SERVICE IF THE 2,700
COMMISSION FINDS, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,701
HEARING, THAT ANY OF THE FOLLOWING CONDITIONS ARE MET:
(1) THE SUPPLIER HAS DEFAULTED ON ITS CONTRACTS WITH 2,703
CUSTOMERS, IS IN RECEIVERSHIP, OR HAS FILED FOR BANKRUPTCY; 2,704
(2) THE SUPPLIER IS NO LONGER CAPABLE OF PROVIDING THE 2,706
SERVICE; 2,707
(3) THE SUPPLIER IS UNABLE TO PROVIDE DELIVERY TO 2,709
TRANSMISSION OR DISTRIBUTION FACILITIES FOR SUCH PERIOD OF TIME 2,710
AS MAY BE REASONABLY SPECIFIED BY COMMISSION RULE ADOPTED UNDER 2,711
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE; 2,712
(4) THE SUPPLIER'S CERTIFICATION HAS BEEN SUSPENDED, 2,714
CONDITIONALLY RESCINDED, OR RESCINDED UNDER DIVISION (D) OF 2,715
SECTION 4928.08 OF THE REVISED CODE.
Sec. 4928.15. (A) EXCEPT AS OTHERWISE PROVIDED IN 2,717
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ELECTRIC 2,719
UTILITY SHALL SUPPLY NONCOMPETITIVE RETAIL ELECTRIC DISTRIBUTION 2,721
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,722
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 2,723
FOR THAT SERVICE THAT IS CONSISTENT WITH THE STATE POLICY 2,724
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED WITH
THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4905.30 OF THE 2,726
REVISED CODE. THE SCHEDULE SHALL PROVIDE THAT ELECTRIC 2,727
DISTRIBUTION SERVICE UNDER THE SCHEDULE IS AVAILABLE TO ALL 2,728
CONSUMERS WITHIN THE UTILITY'S CERTIFIED TERRITORY AND TO ANY 2,729
66
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 2,730
BASIS. DISTRIBUTION SERVICE RATES AND CHARGES UNDER THE SCHEDULE 2,731
SHALL BE ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. 2,732
OF THE REVISED CODE OR MAY BE DETERMINED IN ACCORDANCE WITH 2,733
PERFORMANCE-BASED RATEMAKING AS AUTHORIZED UNDER DIVISION (C) OF 2,734
THIS SECTION. THE SCHEDULE SHALL INCLUDE AN OBLIGATION TO BUILD 2,735
DISTRIBUTION FACILITIES WHEN NECESSARY TO PROVIDE ADEQUATE 2,736
DISTRIBUTION SERVICE, PROVIDED THAT A CUSTOMER REQUESTING THAT
SERVICE MAY BE REQUIRED TO PAY ALL OR PART OF THE REASONABLE 2,737
INCREMENTAL COST OF THE NEW FACILITIES, IN ACCORDANCE WITH RULES, 2,738
POLICY, PRECEDENTS, OR ORDERS OF THE COMMISSION. 2,739
(B) EXCEPT AS OTHERWISE PROVIDED IN SECTIONS 4928.31 TO 2,741
4928.40 OF THE REVISED CODE AND EXCEPT AS PREEMPTED BY FEDERAL 2,743
LAW, NO ELECTRIC UTILITY SHALL SUPPLY THE TRANSMISSION SERVICE OR 2,744
ANCILLARY SERVICE COMPONENT OF NONCOMPETITIVE RETAIL ELECTRIC 2,745
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,746
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 2,747
FOR THAT SERVICE COMPONENT THAT IS CONSISTENT WITH THE STATE 2,748
POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED 2,749
WITH THE COMMISSION UNDER SECTION 4905.30 OF THE REVISED CODE. 2,750
THE SCHEDULE SHALL PROVIDE THAT TRANSMISSION OR ANCILLARY SERVICE 2,751
UNDER THE SCHEDULE IS AVAILABLE TO ALL CONSUMERS AND TO ANY 2,752
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 2,753
BASIS. SERVICE RATES AND CHARGES UNDER THE SCHEDULE SHALL BE 2,754
ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. OF THE 2,756
REVISED CODE OR MAY BE DETERMINED IN ACCORDANCE WITH
PERFORMANCE-BASED RATEMAKING AS AUTHORIZED UNDER DIVISION (C) OF 2,757
THIS SECTION. 2,758
(C) ON OR AFTER THE EXPIRATION DATE OF AN ELECTRIC 2,760
UTILITY'S MARKET DEVELOPMENT PERIOD, THE COMMISSION BY ORDER MAY 2,762
USE PERFORMANCE-BASED RATEMAKING TO ESTABLISH RATES AND CHARGES 2,763
FOR A NONCOMPETITIVE RETAIL ELECTRIC SERVICE SUPPLIED IN THIS 2,764
STATE BY THE UTILITY, SUBJECT TO THE ASSURANCE OF THE SAFETY AND 2,765
RELIABILITY OF THE ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEMS 2,766
67
IN THIS STATE AND UPON DETERMINING THAT SUCH RATEMAKING IS 2,767
CONSISTENT WITH THE POLICY SPECIFIED IN SECTION 4928.02 OF THE 2,768
REVISED CODE; IS IN THE PUBLIC INTEREST; AND WILL BE SUPERIOR TO 2,770
THE RATEMAKING UNDER SECTION 4909.15 OF THE REVISED CODE IN 2,771
PROVIDING INCENTIVES TO THE UTILITY TO ACHIEVE EFFICIENCY IN THE 2,772
PROVISION OF NONCOMPETITIVE RETAIL ELECTRIC SERVICES, TO INVEST 2,773
IN DISTRIBUTION SYSTEM ASSETS, AND TO PROVIDE LOWER RATES AND 2,774
SUPERIOR SERVICES FOR CUSTOMERS. UNDER SUCH PERFORMANCE-BASED 2,775
RATEMAKING, THE COMMISSION MAY AUTHORIZE THAT RATES BE CAPPED OR 2,776
OTHERWISE LIMITED, MAY PROVIDE FOR LIMITED REVIEW OF COSTS ONCE 2,777
THE RATES ARE SET, AND MAY REQUIRE THAT ANY OPERATING 2,778
EFFICIENCIES BE REFLECTED IN ADJUSTMENTS BUILT INTO THE
RATE-MAKING APPROACH. 2,779
Sec. 4928.16. (A)(1) THE PUBLIC UTILITIES COMMISSION HAS 2,781
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 2,782
COMPLAINT OF ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 2,783
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,784
ELECTRIC SERVICE, REGARDING THE PROVISION OF SUCH A SERVICE BY AN 2,785
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,786
UNDER SECTION 4928.08 OF THE REVISED CODE OR BY A WINNING BIDDER 2,787
UNDER SECTION 4928.44 OF THE REVISED CODE.
(2) THE COMMISSION ALSO HAS JURISDICTION UNDER SECTION 2,789
4905.26 OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 2,790
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 2,792
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 2,793
DETERMINE WHETHER AN ELECTRIC UTILITY HAS VIOLATED OR FAILED TO 2,794
COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.15, ANY 2,795
PROVISION OF DIVISIONS (A) TO (D) OF SECTION 4928.35, OR DIVISION 2,796
(G) OF SECTION 4928.44 OF THE REVISED CODE, OR WITH ANY RULE OR 2,798
ORDER ADOPTED OR ISSUED UNDER THOSE SECTIONS; WHETHER AN ELECTRIC 2,800
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,801
AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE 2,802
REVISED CODE HAS VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION 2,804
68
OF SECTIONS 4928.01 TO 4928.10 OF THE REVISED CODE OR ANY RULE OR 2,805
ORDER ADOPTED OR ISSUED UNDER THOSE SECTIONS; OR WHETHER A 2,806
WINNING BIDDER UNDER SECTION 4928.44 OF THE REVISED CODE HAS 2,807
VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF THAT SECTION 2,808
OR ANY RULE OR ORDER ADOPTED UNDER THE SECTION. 2,809
(B) IN ADDITION TO ITS AUTHORITY UNDER DIVISION (C) OF 2,811
SECTION 4928.08 OF THE REVISED CODE AND TO ANY OTHER REMEDIES 2,813
PROVIDED BY LAW, THE COMMISSION, AFTER REASONABLE NOTICE AND 2,815
OPPORTUNITY FOR HEARING IN ACCORDANCE WITH SECTION 4905.26 OF THE 2,817
REVISED CODE, MAY DO ANY OF THE FOLLOWING: 2,818
(1) ORDER RESCISSION OF A CONTRACT OR RESTITUTION TO 2,820
CUSTOMERS IN ANY COMPLAINT BROUGHT PURSUANT TO DIVISION (A)(1) OR 2,821
(2) OF THIS SECTION; 2,822
(2) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 2,824
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 2,826
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC UTILITY 2,827
HAS VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF SECTIONS 2,828
4928.01 TO 4928.15, OR ANY PROVISION OF DIVISIONS (A) TO (D) OF 2,829
SECTION 4928.35, DIVISION (G) OF SECTION 4928.44 OF THE REVISED 2,831
CODE, OR WITH ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE 2,833
SECTIONS. IN ADDITION, THE COMMISSION MAY ORDER ANY REMEDY 2,834
PROVIDED UNDER SECTION 4905.22, 4905.37, OR 4905.38 OF THE
REVISED CODE IF THE VIOLATION OR FAILURE TO COMPLY BY AN ELECTRIC 2,836
UTILITY RELATED TO THE PROVISION OF A NONCOMPETITIVE RETAIL 2,837
ELECTRIC SERVICE.
(3) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 2,839
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 2,840
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC SERVICES 2,842
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT 2,843
TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE HAS 2,845
VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF SECTIONS 2,847
4928.01 TO 4928.10 OF THE REVISED CODE OR ANY RULE OR ORDER 2,849
ADOPTED OR ISSUED UNDER THOSE SECTIONS; OR UPON A FINDING THAT 2,850
THE WINNING BIDDER UNDER SECTION 4928.44 OF THE REVISED CODE HAS 2,851
69
VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF THAT SECTION 2,852
OR ANY RULE OR ORDER ADOPTED UNDER THE SECTION. 2,853
(C)(1) IN ADDITION TO THE AUTHORITY CONFERRED UNDER 2,855
SECTION 4911.15 OF THE REVISED CODE, THE CONSUMERS' COUNSEL MAY 2,856
FILE A COMPLAINT UNDER DIVISION (A)(1) OR (2) OF THIS SECTION ON 2,857
BEHALF OF RESIDENTIAL CONSUMERS IN THIS STATE OR APPEAR BEFORE 2,858
THE COMMISSION AS A REPRESENTATIVE OF THOSE CONSUMERS PURSUANT TO 2,860
ANY COMPLAINT FILED UNDER DIVISION (A)(1) OR (2) OF THIS SECTION. 2,861
(2) IN ADDITION TO THE AUTHORITY CONFERRED UNDER SECTION 2,863
4911.19 OF THE REVISED CODE, THE CONSUMERS' COUNSEL, UPON 2,864
REASONABLE GROUNDS ON AND AFTER THE STARTING DATE OF COMPETITIVE 2,865
RETAIL ELECTRIC SERVICE, MAY FILE WITH THE COMMISSION UNDER 2,866
SECTION 4905.26 OF THE REVISED CODE A COMPLAINT FOR DISCOVERY IF 2,867
THE RECIPIENT OF AN INQUIRY UNDER SECTION 4911.19 OF THE REVISED 2,868
CODE FAILS TO PROVIDE A RESPONSE WITHIN THE TIME SPECIFIED IN 2,869
THAT SECTION.
(D) SECTION 4905.61 OF THE REVISED CODE APPLIES TO A 2,871
VIOLATION BY AN ELECTRIC UTILITY OF, OR TO A FAILURE OF AN 2,872
ELECTRIC UTILITY TO COMPLY WITH, ANY PROVISION OF SECTIONS 2,873
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 2,874
SECTION 4928.35, OR DIVISION (G) OF SECTION 4928.44 OF THE 2,875
REVISED CODE, OR WITH ANY RULE OR ORDER ADOPTED OR ISSUED UNDER
THOSE SECTIONS. 2,876
Sec. 4928.17. (A) EXCEPT AS OTHERWISE PROVIDED IN 2,878
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE AND BEGINNING ON 2,879
THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, NO 2,880
ELECTRIC UTILITY SHALL ENGAGE IN THIS STATE, EITHER DIRECTLY OR 2,881
THROUGH AN AFFILIATE, IN THE BUSINESSES OF SUPPLYING A 2,882
NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING A 2,883
COMPETITIVE RETAIL ELECTRIC SERVICE, OR IN THE BUSINESSES OF 2,884
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING 2,885
A PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE, UNLESS 2,886
THE UTILITY IMPLEMENTS AND OPERATES UNDER A CORPORATE SEPARATION 2,887
PLAN THAT IS APPROVED BY THE PUBLIC UTILITIES COMMISSION UNDER 2,888
70
THIS SECTION, IS CONSISTENT WITH THE POLICY SPECIFIED IN SECTION 2,889
4928.02 OF THE REVISED CODE, AND ACHIEVES ALL OF THE FOLLOWING: 2,890
(1) THE PLAN PROVIDES, AT MINIMUM, FOR THE PROVISION OF 2,892
THE COMPETITIVE RETAIL ELECTRIC SERVICE OR THE NONELECTRIC 2,893
PRODUCT OR SERVICE THROUGH A FULLY SEPARATED AFFILIATE OF THE 2,894
UTILITY, AND THE PLAN INCLUDES SEPARATE ACCOUNTING REQUIREMENTS, 2,895
A CODE OF CONDUCT, AND SUCH OTHER MEASURES AS ARE NECESSARY TO 2,896
EFFECTUATE THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED 2,897
CODE.
(2) THE PLAN SATISFIES THE PUBLIC INTEREST IN PREVENTING 2,899
UNFAIR COMPETITIVE ADVANTAGE AND PREVENTING THE ABUSE OF MARKET 2,900
POWER.
(3) THE PLAN IS SUFFICIENT TO ENSURE THAT THE UTILITY WILL 2,902
NOT EXTEND ANY UNDUE PREFERENCE OR ADVANTAGE TO ANY AFFILIATE, 2,903
DIVISION, OR PART OF ITS OWN BUSINESS ENGAGED IN THE BUSINESS OF 2,904
SUPPLYING THE COMPETITIVE RETAIL ELECTRIC SERVICE OR NONELECTRIC 2,905
PRODUCT OR SERVICE, AND TO ENSURE THAT ANY SUCH AFFILIATE, 2,906
DIVISION, OR PART WILL NOT RECEIVE UNDUE PREFERENCE OR ADVANTAGE 2,907
FROM ANY AFFILIATE, DIVISION, OR PART OF THE BUSINESS ENGAGED IN 2,908
BUSINESS OF SUPPLYING THE NONCOMPETITIVE RETAIL ELECTRIC SERVICE. 2,909
NO SUCH UTILITY, AFFILIATE, DIVISION, OR PART SHALL EXTEND SUCH 2,910
UNDUE PREFERENCE.
(B) THE COMMISSION MAY APPROVE, MODIFY AND APPROVE, OR 2,912
DISAPPROVE A CORPORATE SEPARATION PLAN FILED WITH THE COMMISSION 2,913
UNDER DIVISION (A) OF THIS SECTION. THE COMMISSION SHALL ADOPT 2,914
RULES PURSUANT TO DIVISION (A) OF SECTION 4928.06 OF THE REVISED 2,915
CODE REGARDING CORPORATE SEPARATION AND PROCEDURES FOR PLAN 2,916
FILING AND APPROVAL. THE RULES SHALL INCLUDE LIMITATIONS ON 2,917
AFFILIATE PRACTICES SOLELY FOR THE PURPOSE OF MAINTAINING A 2,919
SEPARATION OF THE AFFILIATE'S BUSINESS FROM THE BUSINESS OF ITS 2,920
UTILITY AFFILIATE TO PREVENT UNFAIR COMPETITIVE ADVANTAGE BY 2,921
VIRTUE OF THAT RELATIONSHIP. THE RULES ALSO SHALL INCLUDE AN 2,922
OPPORTUNITY FOR ANY PERSON HAVING A REAL AND SUBSTANTIAL INTEREST
IN THE CORPORATE SEPARATION PLAN TO FILE SPECIFIC OBJECTIONS TO 2,924
71
THE PLAN AND PROPOSE SPECIFIC RESPONSES TO ISSUES RAISED IN THE 2,926
OBJECTIONS, WHICH OBJECTIONS AND RESPONSES THE COMMISSION SHALL 2,927
ADDRESS IN ITS FINAL ORDER. PRIOR TO COMMISSION APPROVAL OF THE 2,928
PLAN, THE COMMISSION SHALL AFFORD A HEARING UPON THOSE ASPECTS OF 2,929
THE PLAN THAT THE COMMISSION DETERMINES REASONABLY REQUIRE A 2,930
HEARING. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF A 2,931
SUBSTANTIALLY INADEQUATE PLAN UNDER THIS SECTION. 2,932
(C) THE COMMISSION SHALL ISSUE AN ORDER APPROVING OR 2,934
MODIFYING AND APPROVING A CORPORATE SEPARATION PLAN UNDER THIS 2,935
SECTION, TO BE EFFECTIVE ON THE DATE SPECIFIED IN THE ORDER, ONLY 2,937
UPON FINDINGS THAT THE PLAN REASONABLY COMPLIES WITH THE 2,938
REQUIREMENTS OF DIVISION (A) OF THIS SECTION AND WILL PROVIDE FOR 2,939
ONGOING COMPLIANCE WITH THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE. 2,940
(D) ANY PARTY MAY SEEK AN AMENDMENT TO A CORPORATE 2,942
SEPARATION PLAN APPROVED UNDER THIS SECTION, AND THE COMMISSION, 2,943
PURSUANT TO A REQUEST FROM ANY PARTY OR ON ITS OWN INITIATIVE, 2,944
MAY ORDER AS IT CONSIDERS NECESSARY THE FILING OF AN AMENDED 2,945
CORPORATE SEPARATION PLAN TO REFLECT CHANGED CIRCUMSTANCES. 2,946
(E) NOTWITHSTANDING SECTION 4905.20, 4905.21, 4905.46, OR 2,948
4905.48 OF THE REVISED CODE, AN ELECTRIC UTILITY MAY DIVEST 2,949
ITSELF OF ANY GENERATING ASSET AT ANY TIME WITHOUT COMMISSION 2,950
APPROVAL, SUBJECT TO THE PROVISIONS OF TITLE XLIX OF THE REVISED 2,951
CODE RELATING TO THE TRANSFER OF TRANSMISSION, DISTRIBUTION, OR
ANCILLARY SERVICE PROVIDED BY SUCH GENERATING ASSET. 2,952
Sec. 4928.18. (A) NOTWITHSTANDING DIVISION (D)(2)(a) OF 2,955
SECTION 4909.15 OF THE REVISED CODE, NOTHING IN THIS CHAPTER 2,956
PREVENTS THE PUBLIC UTILITIES COMMISSION FROM EXERCISING ITS 2,957
AUTHORITY UNDER TITLE XLIX OF THE REVISED CODE TO PROTECT 2,959
CUSTOMERS OF RETAIL ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC
UTILITY FROM ANY ADVERSE EFFECT OF THE UTILITY'S PROVISION OF A 2,960
PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE. 2,962
(B) THE COMMISSION HAS JURISDICTION UNDER SECTION 4905.26 2,964
OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 2,965
72
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 2,967
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 2,968
DETERMINE WHETHER AN ELECTRIC UTILITY OR ITS AFFILIATE HAS 2,969
VIOLATED ANY PROVISION OF SECTION 4928.17 OF THE REVISED CODE OR
AN ORDER ISSUED OR RULE ADOPTED UNDER THAT SECTION. FOR THIS 2,971
PURPOSE, THE COMMISSION MAY EXAMINE SUCH BOOKS, ACCOUNTS, OR 2,972
OTHER RECORDS KEPT BY AN ELECTRIC UTILITY OR ITS AFFILIATE AS MAY 2,973
RELATE TO THE BUSINESSES FOR WHICH CORPORATE SEPARATION IS 2,974
REQUIRED UNDER SECTION 4928.17 OF THE REVISED CODE, AND MAY 2,975
INVESTIGATE SUCH UTILITY OR AFFILIATE OPERATIONS AS MAY RELATE TO
THOSE BUSINESSES AND INVESTIGATE THE INTERRELATIONSHIP OF THOSE 2,977
OPERATIONS. ANY SUCH EXAMINATION OR INVESTIGATION BY THE
COMMISSION SHALL BE GOVERNED BY CHAPTER 4903. OF THE REVISED 2,979
CODE.
(C) IN ADDITION TO ANY REMEDIES OTHERWISE PROVIDED BY LAW, 2,981
THE COMMISSION, REGARDING A DETERMINATION OF A VIOLATION PURSUANT 2,982
TO DIVISION (B) OF THIS SECTION, MAY DO ANY OF THE FOLLOWING: 2,984
(1) ISSUE AN ORDER DIRECTING THE UTILITY OR AFFILIATE TO 2,986
COMPLY;
(2) MODIFY AN ORDER AS THE COMMISSION FINDS REASONABLE AND 2,988
APPROPRIATE AND ORDER THE UTILITY OR AFFILIATE TO COMPLY WITH THE 2,989
MODIFIED ORDER; 2,990
(3) SUSPEND OR ABROGATE AN ORDER, IN WHOLE OR IN PART; 2,992
(4) ISSUE AN ORDER THAT THE UTILITY OR AFFILIATE PAY 2,994
RESTITUTION TO ANY PERSON INJURED BY THE VIOLATION OR FAILURE TO 2,995
COMPLY;
(5) IMPOSE A FORFEITURE ON THE UTILITY OR AFFILIATE OF UP 2,997
TO TWENTY-FIVE THOUSAND DOLLARS PER DAY PER VIOLATION. THE 2,999
RECOVERY AND DEPOSIT OF ANY SUCH FORFEITURE SHALL BE SUBJECT TO 3,000
SECTIONS 4905.57 AND 4905.59 OF THE REVISED CODE.
(D) IN ADDITION TO ANY OTHER REMEDIES AUTHORIZED BY LAW, 3,002
THE COMMISSION, REGARDING A VIOLATION BY AN ELECTRIC UTILITY 3,003
RELATING TO A CORPORATE SEPARATION PLAN INVOLVING COMPETITIVE 3,005
RETAIL ELECTRIC SERVICE, MAY DO ANY OF THE FOLLOWING: 3,006
73
(1) SUSPEND OR ABROGATE AN ORDER, TO THE EXTENT IT IS IN 3,008
EFFECT, AUTHORIZING AN OPPORTUNITY FOR THE UTILITY TO RECEIVE 3,009
TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED BY THE 3,010
COMMISSION UNDER SECTION 4928.33 OF THE REVISED CODE; 3,011
(2) NOTWITHSTANDING ANY PROVISION OF SECTIONS 4933.81 TO 3,013
4933.83 OF THE REVISED CODE TO THE CONTRARY, ISSUE AN ORDER 3,014
AUTHORIZING ANOTHER ELECTRIC LIGHT COMPANY TO FURNISH 3,015
NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO ALL ELECTRIC LOAD 3,016
CENTERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY 3,018
WITHOUT A FINDING OF PHYSICALLY INADEQUATE SERVICE UNDER SECTION 3,019
4933.83 OF THE REVISED CODE;
(3) ABROGATE AN ORDER ISSUED UNDER DIVISION (C) OF SECTION 3,021
4928.16 OF THE REVISED CODE. 3,022
(E) SECTION 4905.61 OF THE REVISED CODE APPLIES IN THE 3,024
CASE OF ANY VIOLATION OF SECTION 4928.17 OF THE REVISED CODE. 3,025
Sec. 4928.19. AS PART OF THEIR ONGOING CONSUMER EDUCATION 3,027
EFFORTS, THE PUBLIC UTILITIES COMMISSION AND THE OFFICE OF THE 3,028
CONSUMERS' COUNSEL SHALL ENGAGE IN COOPERATIVE AGENCY EFFORTS TO 3,029
EDUCATE CONSUMERS IN THIS STATE REGARDING ELECTRIC INDUSTRY 3,030
RESTRUCTURING UNDER THIS CHAPTER. 3,031
Sec. 4928.20. (A) THE LEGISLATIVE AUTHORITY OF A 3,033
MUNICIPAL CORPORATION THROUGH THE ADOPTION OF AN ORDINANCE, OR 3,034
THE BOARD OF TOWNSHIP TRUSTEES OF A TOWNSHIP OR THE BOARD OF 3,036
COUNTY COMMISSIONERS OF A COUNTY THROUGH THE ADOPTION OF A 3,037
RESOLUTION, MAY PROVIDE THROUGH AGGREGATION FOR THE SUPPLY, ON OR
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 3,038
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE TO ELECTRIC LOAD 3,039
CENTERS LOCATED RESPECTIVELY, WITHIN THE MUNICIPAL CORPORATION, 3,040
TOWNSHIP, OR UNINCORPORATED AREA OF THE COUNTY, EXCEPT TO THE 3,041
EXTENT SUCH AGGREGATION IS OTHERWISE PROHIBITED BY SECTIONS 3,042
4933.81 TO 4933.90 OF THE REVISED CODE OR OTHER LAW OF THIS
STATE. BUT NO SUCH AGGREGATION SHALL OCCUR UNLESS THE PERSON 3,044
OWNING, OCCUPYING, CONTROLLING, OR USING THE ELECTRIC LOAD 3,045
CENTERS PROVIDES PRIOR WRITTEN CONSENT. 3,046
74
(B) A GOVERNMENTAL AGGREGATOR UNDER DIVISION (A) OF THIS 3,048
SECTION IS NOT A PUBLIC UTILITY ENGAGING IN THE WHOLESALE 3,050
PURCHASE AND RESALE OF ELECTRICITY, AND PROVISION OF THE 3,051
AGGREGATED SERVICE IS NOT A WHOLESALE UTILITY TRANSACTION. A 3,053
GOVERNMENTAL AGGREGATOR SHALL BE SUBJECT TO SUPERVISION AND 3,054
REGULATION BY THE PUBLIC UTILITIES COMMISSION ONLY TO THE EXTENT 3,055
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE IT PROVIDES AND 3,056
COMMISSION AUTHORITY UNDER THIS CHAPTER.
(C) THIS SECTION DOES NOT APPLY IN THE CASE OF A MUNICIPAL 3,058
CORPORATION THAT SUPPLIES SUCH AGGREGATED SERVICE TO ELECTRIC 3,059
LOAD CENTERS TO WHICH ITS MUNICIPAL ELECTRIC UTILITY ALSO 3,060
SUPPLIES A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 3,061
TRANSMISSION OR DISTRIBUTION FACILITIES THE UTILITY SINGLY OR 3,062
JOINTLY OWNS OR OPERATES. 3,063
Sec. 4928.31. (A) NOT LATER THAN NINETY DAYS AFTER THE 3,065
EFFECTIVE DATE OF THIS SECTION, AN ELECTRIC UTILITY SUPPLYING 3,066
RETAIL ELECTRIC SERVICE IN THIS STATE ON THAT DATE SHALL FILE 3,068
WITH THE PUBLIC UTILITIES COMMISSION A PLAN FOR THE UTILITY'S 3,069
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE DURING THE 3,070
MARKET DEVELOPMENT PERIOD. THIS TRANSITION PLAN SHALL BE IN SUCH 3,071
FORM AS THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,072
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE, AND SHALL 3,073
INCLUDE ALL OF THE FOLLOWING:
(1) A RATE UNBUNDLING PLAN THAT SPECIFIES, CONSISTENT WITH 3,075
DIVISIONS (A)(1) TO (7) OF SECTION 4928.34 OF THE REVISED CODE 3,076
AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF 3,077
SECTION 4928.06 OF THE REVISED CODE, THE UNBUNDLED COMPONENTS FOR 3,078
ELECTRIC GENERATION, TRANSMISSION, AND DISTRIBUTION SERVICE AND 3,079
SUCH OTHER UNBUNDLED SERVICE COMPONENTS AS THE COMMISSION
REQUIRES, TO BE CHARGED BY THE UTILITY BEGINNING ON THE STARTING 3,080
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE; AND THAT INCLUDES 3,081
INFORMATION THE COMMISSION REQUIRES TO FIX AND DETERMINE THOSE 3,082
COMPONENTS;
(2) A CORPORATE SEPARATION PLAN CONSISTENT WITH SECTION 3,084
75
4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,085
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,086
CODE;
(3) A PLAN FOR THE INDEPENDENT OPERATION OF THE UTILITY'S 3,088
TRANSMISSION FACILITIES CONSISTENT WITH SECTION 4928.13 AND 3,089
DIVISION (A)(9) OF SECTION 4928.34 OF THE REVISED CODE AND ANY 3,090
RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 3,091
4928.06 OF THE REVISED CODE;
(4) SUCH PLAN OR PLANS AS THE COMMISSION REQUIRES TO 3,093
ADDRESS OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,094
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,095
SERVICE CONSISTENT WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,096
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE; 3,097
(5) A CONSUMER EDUCATION PLAN CONSISTENT WITH SECTION 3,099
4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,100
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,101
CODE.
ADDITIONALLY, A TRANSITION PLAN UNDER THIS SECTION MAY 3,103
INCLUDE AN APPLICATION FOR THE OPPORTUNITY TO RECEIVE TRANSITION 3,104
REVENUES AS AUTHORIZED UNDER SECTIONS 4928.31 TO 4928.40 OF THE 3,106
REVISED CODE, WHICH APPLICATION SHALL BE CONSISTENT WITH THOSE 3,108
SECTIONS AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION 3,109
(A) OF SECTION 4928.06 OF THE REVISED CODE.
THE COMMISSION MAY REJECT AND REQUIRE REFILING, IN WHOLE OR 3,111
IN PART, OF ANY SUBSTANTIALLY INADEQUATE TRANSITION PLAN. 3,112
(B) THE ELECTRIC UTILITY SHALL PROVIDE PUBLIC NOTICE OF 3,114
ITS FILING UNDER DIVISION (A) OF THIS SECTION, IN A FORM AND 3,115
MANNER THAT THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,116
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. HOWEVER, 3,117
THE ADOPTION OF RULES REGARDING THE PUBLIC NOTICE UNDER THIS 3,118
DIVISION, REGARDING THE FORM OF THE TRANSITION PLAN UNDER 3,119
DIVISION (A) OF THIS SECTION, AND REGARDING PROCEDURES FOR 3,120
EXPEDITED DISCOVERY UNDER DIVISION (A) OF SECTION 4928.32 OF THE 3,121
REVISED CODE ARE NOT SUBJECT TO SECTION 111.15 OF THE REVISED 3,122
76
CODE.
Sec. 4928.32. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,124
ESTABLISH REASONABLE PROCEDURES FOR EXPEDITED DISCOVERY IN ANY 3,125
PROCEEDING INITIATED TO CONSIDER A TRANSITION PLAN FILED UNDER 3,127
SECTION 4928.31 OF THE REVISED CODE.
(B) NOT LATER THAN FORTY-FIVE DAYS AFTER THE DATE ON WHICH 3,129
AN ELECTRIC UTILITY FILES A TRANSITION PLAN UNDER SECTION 4928.31 3,130
OF THE REVISED CODE, ANY PERSON HAVING A REAL AND SUBSTANTIAL 3,131
INTEREST IN THE TRANSITION PLAN MAY FILE WITH THE COMMISSION 3,132
PRELIMINARY OBJECTIONS TO THE TRANSITION PLAN, WHICH SHALL 3,133
IDENTIFY WITH SPECIFICITY ISSUES PERTAINING TO ANY ASPECT OF THE 3,134
TRANSITION PLAN, AND ANY SUCH PERSON MAY PROPOSE SPECIFIC 3,135
RESPONSES TO THOSE ISSUES. THE COMMISSION SHALL ADDRESS THOSE 3,136
OBJECTIONS AND RESPONSES IN ITS FINAL ORDER. 3,137
IN ADDITION, AFTER THE PLAN'S FILING, THE COMMISSION STAFF 3,139
SHALL FILE WITH THE COMMISSION A REPORT OF ITS RECOMMENDATIONS 3,140
WITH RESPECT TO THE PLAN. PRIOR TO COMMISSION APPROVAL OF THE 3,141
PLAN, THE COMMISSION SHALL AFFORD A HEARING UPON THOSE ASPECTS OF 3,142
THE PLAN THAT THE COMMISSION DETERMINES REASONABLY REQUIRE A 3,143
HEARING.
(C) THE COMMISSION SHALL MAINTAIN A COMPLETE RECORD OF ALL 3,145
PROCEEDINGS RELATIVE TO A TRANSITION PLAN FILED UNDER SECTION 3,146
4928.31 OF THE REVISED CODE AND SHALL ISSUE AND FILE WITH THE 3,147
RECORD OF THE CASE FINDINGS OF FACT AND WRITTEN OPINIONS SETTING 3,148
FORTH THE REASONS FOR ANY MODIFICATION TO OR ITS APPROVAL OF A 3,149
TRANSITION PLAN. 3,150
Sec. 4928.33. (A) NOT LATER THAN TWO HUNDRED SEVENTY-FIVE 3,152
DAYS AFTER THE DATE AN ELECTRIC UTILITY FILES A TRANSITION PLAN 3,153
UNDER SECTION 4928.31 OF THE REVISED CODE, BUT, IN ANY EVENT, NOT 3,154
LATER THAN OCTOBER 31, 2000, THE PUBLIC UTILITIES COMMISSION 3,156
SHALL ISSUE A FINAL ORDER APPROVING THE TRANSITION PLAN AS FILED 3,157
UNDER SECTION 4928.31 OF THE REVISED CODE OR AN ORDER MODIFYING 3,158
AND APPROVING THAT PLAN. THE ORDER IS SUBJECT TO SECTION 4903.15 3,159
OF THE REVISED CODE AND IS SUBJECT TO REVIEW AND APPEAL UNDER 3,160
77
CHAPTER 4903. OF THE REVISED CODE.
(B) IF THE COMMISSION FAILS TO ISSUE, BY OCTOBER 31, 2000, 3,163
A FINAL ORDER APPROVING A TRANSITION PLAN, OR SUCH A FINAL ORDER
HAS BEEN ENJOINED IN WHOLE OR IN PART PENDING APPEAL TO A COURT, 3,164
THE COMMISSION SHALL ISSUE AN INTERIM ORDER PRESCRIBING A 3,166
TRANSITION PLAN, TO HAVE EFFECT ON AN INTERIM BASIS ONLY, AND 3,167
CONTAINING THE PLAN COMPONENTS REQUIRED BY DIVISION (A) OF 3,168
SECTION 4928.31 OF THE REVISED CODE AND PROVIDING FOR THE 3,170
OPPORTUNITY FOR TRANSITION REVENUE RECEIPT IF SUCH AN APPLICATION
WERE INCLUDED IN THE PLAN FILED BY THE UTILITY UNDER THAT 3,171
SECTION. THE INTERIM ORDER IS SUBJECT TO SECTION 4903.15 OF THE 3,172
REVISED CODE, BUT IS NOT SUBJECT TO REVIEW AND APPEAL UNDER 3,173
CHAPTER 4903. OF THE REVISED CODE. 3,174
AN INTERIM PLAN PRESCRIBED UNDER THE INTERIM ORDER SHALL BE 3,176
EFFECTIVE FOR THE ELECTRIC UTILITY BEGINNING ON THE STARTING DATE 3,177
OF COMPETITIVE RETAIL ELECTRIC SERVICE AND SHALL CONTINUE IN 3,178
EFFECT UNTIL SUCH TIME AS ANY OTHER REPLACEMENT TRANSITION PLAN 3,179
TAKES EFFECT PURSUANT TO A FINAL COMMISSION ORDER OR RESOLUTION 3,180
OF AN APPEAL. ANY INTERIM PLAN SO PRESCRIBED SHALL COMPLY WITH 3,181
THE APPLICABLE PROVISIONS OF SECTION 4928.34 OF THE REVISED CODE. 3,183
A FINAL COMMISSION ORDER SHALL PROVIDE FOR A RECONCILIATION OF
THOSE AMOUNTS DETERMINED IN THE FINAL ORDER RELATIVE TO DIVISION 3,184
(A) OF SECTION 4928.31 OF THE REVISED CODE AS COMPARED TO THE 3,185
INTERIM AMOUNTS AS DETERMINED UNDER THIS DIVISION. 3,186
(C) NO ELECTRIC UTILITY REQUIRED TO FILE A TRANSITION PLAN 3,188
UNDER SECTION 4928.31 OF THE REVISED CODE SHALL FAIL TO IMPLEMENT 3,189
A TRANSITION PLAN APPROVED OR PRESCRIBED FOR THE UTILITY BY A 3,190
COMMISSION ORDER ISSUED UNDER DIVISION (A) OR (B) OF THIS 3,191
SECTION. NO ELECTRIC UTILITY SHALL PROVIDE RETAIL ELECTRIC 3,192
SERVICE IN THIS STATE DURING THE MARKET DEVELOPMENT PERIOD EXCEPT 3,193
PURSUANT TO SUCH AN APPROVED OR PRESCRIBED TRANSITION PLAN. 3,194
Sec. 4928.34. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,196
NOT APPROVE OR PRESCRIBE A TRANSITION PLAN UNDER DIVISION (A) OR 3,197
(B) OF SECTION 4928.33 OF THE REVISED CODE UNLESS THE COMMISSION 3,199
78
FIRST MAKES ALL OF THE FOLLOWING DETERMINATIONS: 3,200
(1) THE UNBUNDLED COMPONENTS FOR THE ELECTRIC TRANSMISSION 3,202
COMPONENT OF RETAIL ELECTRIC SERVICE, AS SPECIFIED IN THE 3,203
UTILITY'S RATE UNBUNDLING PLAN REQUIRED BY DIVISION (A)(1) OF 3,205
SECTION 4928.31 OF THE REVISED CODE, EQUAL THE TARIFF RATES 3,206
DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION THAT ARE
IN EFFECT ON THE DATE OF THE APPROVAL OF THE TRANSITION PLAN 3,207
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AS EACH 3,208
SUCH RATE IS DETERMINED APPLICABLE TO EACH PARTICULAR CUSTOMER 3,210
CLASS BY THE COMMISSION.
(2) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,212
DISTRIBUTION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE SUM OF 3,213
THE COSTS ATTRIBUTABLE TO THE UTILITY'S TRANSMISSION AND 3,214
DISTRIBUTION RATES AND CHARGES UNDER ITS SCHEDULE OF RATES AND 3,215
CHARGES IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION LESS THE 3,216
TARIFF RATES FOR ELECTRIC TRANSMISSION SERVICE DETERMINED BY THE 3,217
FEDERAL ENERGY REGULATORY COMMISSION AS DESCRIBED IN DIVISION 3,218
(A)(1) OF THIS SECTION. 3,219
(3) ALL OTHER UNBUNDLED COMPONENTS REQUIRED BY THE 3,221
COMMISSION IN THE RATE UNBUNDLING PLAN EQUAL THE COSTS 3,222
ATTRIBUTABLE TO THE PARTICULAR SERVICE AS REFLECTED IN THE 3,223
UTILITY'S SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE 3,224
EFFECTIVE DATE OF THIS SECTION.
(4) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,226
GENERATION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE RESIDUAL 3,227
AMOUNT REMAINING AFTER THE DETERMINATION OF THE TRANSMISSION, 3,228
DISTRIBUTION, AND OTHER UNBUNDLED COMPONENTS. 3,229
(5) ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN 3,231
HAVE BEEN ADJUSTED TO REFLECT ANY RATE REDUCTIONS UNDER RATE 3,232
SETTLEMENTS IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION. 3,233
HOWEVER, ALL EARNINGS OBLIGATIONS, RESTRICTIONS, OR CAPS IMPOSED 3,234
ON AN ELECTRIC UTILITY IN A COMMISSION ORDER PRIOR TO THE 3,235
EFFECTIVE DATE OF THIS SECTION ARE VOID. 3,236
(6) SUBJECT TO DIVISION (A)(5) OF THIS SECTION, THE TOTAL 3,238
79
OF ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN ARE 3,240
CAPPED AND DO NOT EXCEED THE TOTAL OF ALL RATES AND CHARGES IN
EFFECT UNDER THE APPLICABLE BUNDLED SCHEDULE OF THE ELECTRIC 3,241
UTILITY PURSUANT TO SECTION 4905.30 OF THE REVISED CODE IN EFFECT 3,242
ON THE DAY BEFORE THE EFFECTIVE DATE OF THIS SECTION, INCLUDING 3,244
THE TRANSITION CHARGE DETERMINED UNDER SECTION 4928.39 OR 4928.40 3,245
OF THE REVISED CODE, ANY CHANGES IN THE TAXATION OF ELECTRIC 3,246
UTILITIES AND RETAIL ELECTRIC SERVICE UNDER __.B. NO. ___ OF THE 3,248
123rd GENERAL ASSEMBLY, THE UNIVERSAL SERVICE RIDER AUTHORIZED BY 3,250
SECTION 4928.51 OF THE REVISED CODE, AND THE TEMPORARY SURCHARGE 3,251
AUTHORIZED BY SECTION 4928.61 OF THE REVISED CODE. FOR THE
PURPOSE OF THIS DIVISION, THE RATE CAP APPLICABLE TO A CUSTOMER 3,253
RECEIVING ELECTRIC SERVICE PURSUANT TO AN ARRANGEMENT APPROVED BY 3,255
THE COMMISSION UNDER SECTION 4905.31 OF THE REVISED CODE IS THE 3,256
TOTAL OF ALL RATES AND CHARGES IN EFFECT UNDER SUCH BUNDLED 3,257
SCHEDULE THAT OTHERWISE WOULD APPLY TO THE CUSTOMER ABSENT THE 3,258
CONTRACT. 3,259
(7) THE RATE UNBUNDLING PLAN COMPLIES WITH ANY RULES 3,261
ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 3,262
OF THE REVISED CODE.
(8) THE CORPORATE SEPARATION PLAN REQUIRED BY DIVISION 3,264
(A)(2) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,265
SECTION 4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,266
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,268
CODE.
(9) THE INDEPENDENT TRANSMISSION PLAN REQUIRED BY DIVISION 3,270
(A)(3) OF SECTION 4928.31 OF THE REVISED CODE REASONABLY COMPLIES 3,271
WITH SECTION 4928.12 OF THE REVISED CODE AND ANY RULES ADOPTED BY 3,272
THE COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE 3,274
REVISED CODE, AND REASONABLY COMPLIES WITH THE FOLLOWING 3,275
REQUIREMENTS:
(a) THE ELECTRIC UTILITY, ON OR BEFORE THE STARTING DATE 3,277
OF COMPETITIVE RETAIL ELECTRIC SERVICE, IS A MEMBER OF, AND 3,278
TRANSFERS CONTROL OF TRANSMISSION FACILITIES IT OWNS OR CONTROLS 3,279
80
IN THIS STATE TO, ONE OR MORE QUALIFYING TRANSMISSION ENTITIES AS 3,280
DESCRIBED IN DIVISION (B) OF SECTION 4928.12 OF THE REVISED CODE. 3,282
(b) THE ELECTRIC UTILITY, ON OR BEFORE JUNE 30, 2001, IS A 3,285
MEMBER OF, AND TRANSFERS CONTROL OF TRANSMISSION FACILITIES IT 3,286
OWNS OR CONTROLS IN THIS STATE TO, ONE OR MORE SUCH QUALIFYING 3,287
TRANSMISSION ENTITIES THAT ARE OPERATIONAL. 3,288
(10) ANY PLAN OR PLANS THE COMMISSION REQUIRES TO ADDRESS 3,290
OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,291
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,292
SERVICE COMPLY WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,293
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 3,294
(11) THE CONSUMER EDUCATION PLAN REQUIRED UNDER DIVISION 3,296
(A)(5) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,298
SECTION 4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,299
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,300
CODE.
(12) THE TRANSITION CHARGES FOR THE CUSTOMER CLASSES OF 3,302
THE UTILITY ARE THE CHARGES DETERMINED PURSUANT TO SECTION 3,303
4928.39 OR SECTION 4928.40 OF THE REVISED CODE AS APPLICABLE. 3,304
(13) THE UTILITY IS IN COMPLIANCE WITH SECTIONS 4928.01 TO 3,306
4928.11 OF THE REVISED CODE AND ANY RULES OR ORDERS OF THE 3,307
COMMISSION ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,309
IN ADDITION, A TRANSITION PLAN APPROVED BY THE COMMISSION 3,311
UNDER SECTION 4928.33 OF THE REVISED CODE SHALL CONTAIN THE 3,312
EXPRESS CONDITIONS THAT THE UTILITY WILL COMPLY WITH THE 3,313
REQUIREMENTS OF DIVISIONS (A)(9)(a) AND (b) OF THIS SECTION. 3,314
(B) SUBJECT TO DIVISION (E) OF SECTION 4928.17 OF THE 3,317
REVISED CODE, IF THE COMMISSION FINDS THAT ANY PART OF THE
TRANSITION PLAN WOULD CONSTITUTE AN ABANDONMENT UNDER SECTIONS 3,319
4905.20 AND 4905.21 OF THE REVISED CODE, THE COMMISSION SHALL NOT 3,320
APPROVE THAT PART OF THE TRANSITION PLAN UNLESS IT MAKES THE 3,321
FINDING REQUIRED FOR APPROVAL OF AN ABANDONMENT APPLICATION UNDER 3,322
SECTION 4905.21 OF THE REVISED CODE. SECTIONS 4905.20 AND 3,324
4905.21 OF THE REVISED CODE OTHERWISE SHALL NOT APPLY TO A 3,326
81
TRANSITION PLAN UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED 3,327
CODE.
Sec. 4928.35. (A) UPON APPROVAL OF ITS TRANSITION PLAN 3,329
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AN 3,330
ELECTRIC UTILITY SHALL FILE IN ACCORDANCE WITH SECTION 4905.30 OF 3,331
THE REVISED CODE SCHEDULES CONTAINING THE UNBUNDLED RATE 3,333
COMPONENTS SET IN THE APPROVED PLAN IN ACCORDANCE WITH SECTION 3,334
4928.34 OF THE REVISED CODE. THE SCHEDULES SHALL BE IN EFFECT
FOR THE DURATION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD, 3,335
SHALL BE SUBJECT TO THE CAP SPECIFIED IN DIVISION (A)(6) OF 3,336
SECTION 4928.34 OF THE REVISED CODE, AND SHALL NOT BE ADJUSTED 3,337
DURING THAT PERIOD BY THE PUBLIC UTILITIES COMMISSION EXCEPT AS 3,338
OTHERWISE AUTHORIZED BY DIVISION (B) OF THIS SECTION OR AS 3,339
OTHERWISE AUTHORIZED BY FEDERAL LAW. 3,340
(B) EFFORTS SHALL BE MADE TO REACH AGREEMENTS WITH 3,342
ELECTRIC UTILITIES IN MATTERS OF LITIGATION REGARDING PROPERTY 3,343
VALUATION ISSUES. IRRESPECTIVE OF THOSE EFFORTS, THE UNBUNDLED 3,344
COMPONENTS FOR AN ELECTRIC UTILITY'S RETAIL ELECTRIC GENERATION 3,345
SERVICE AND DISTRIBUTION SERVICE, AS PROVIDED IN DIVISION (A) OF 3,346
THIS SECTION, ARE NOT SUBJECT TO ADJUSTMENT FOR THE UTILITY'S 3,347
MARKET DEVELOPMENT PERIOD, EXCEPT THAT THE COMMISSION SHALL ORDER 3,348
AN EQUITABLE REDUCTION IN THOSE COMPONENTS FOR ALL CUSTOMER 3,349
CLASSES TO REFLECT ANY REFUND A UTILITY RECEIVES AS A RESULT OF 3,350
THE RESOLUTION OF UTILITY PERSONAL PROPERTY TAX VALUATION 3,351
LITIGATION THAT IS RESOLVED ON OR AFTER THE EFFECTIVE DATE OF 3,352
THIS SECTION AND PRIOR TO THE END OF THE MARKET DEVELOPMENT 3,353
PERIOD. IMMEDIATELY UPON THE ISSUANCE OF THAT ORDER, THE 3,354
ELECTRIC UTILITY SHALL FILE REVISED RATE SCHEDULES UNDER SECTION 3,355
4905.30 OF THE REVISED CODE TO EFFECT THE ORDER. 3,356
(C) THE SCHEDULE UNDER DIVISION (A) OF THIS SECTION 3,358
CONTAINING THE UNBUNDLED DISTRIBUTION COMPONENTS SHALL PROVIDE 3,360
THAT ELECTRIC DISTRIBUTION SERVICE UNDER THE SCHEDULE WILL BE 3,361
AVAILABLE TO ALL RETAIL ELECTRIC SERVICE CUSTOMERS IN THE 3,362
ELECTRIC UTILITY'S CERTIFIED TERRITORY AND THEIR SUPPLIERS ON A 3,363
82
NONDISCRIMINATORY AND COMPARABLE BASIS ON AND AFTER THE STARTING 3,364
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. THE SCHEDULE ALSO 3,365
SHALL INCLUDE AN OBLIGATION TO BUILD DISTRIBUTION FACILITIES WHEN 3,366
NECESSARY TO PROVIDE ADEQUATE DISTRIBUTION SERVICE, PROVIDED THAT 3,367
A CUSTOMER REQUESTING THAT SERVICE MAY BE REQUIRED TO PAY ALL OR 3,368
PART OF THE REASONABLE INCREMENTAL COST OF THE NEW FACILITIES, IN 3,369
ACCORDANCE WITH RULES, POLICY, PRECEDENTS, OR ORDERS OF THE 3,370
COMMISSION.
(D) DURING THE MARKET DEVELOPMENT PERIOD, AN ELECTRIC 3,372
DISTRIBUTION UTILITY SHALL PROVIDE CONSUMERS ON A COMPARABLE AND 3,373
NONDISCRIMINATORY BASIS WITHIN ITS CERTIFIED TERRITORY A STANDARD 3,375
SERVICE OFFER OF ALL COMPETITIVE RETAIL ELECTRIC SERVICES
NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC SERVICE TO CONSUMERS, 3,376
INCLUDING A FIRM SUPPLY OF ELECTRIC GENERATION SERVICE PRICED IN 3,377
ACCORDANCE WITH THE SCHEDULE CONTAINING THE UTILITY'S UNBUNDLED 3,378
GENERATION SERVICE COMPONENT. IMMEDIATELY UPON APPROVAL OF ITS 3,379
TRANSITION PLAN, THE UTILITY SHALL FILE THE STANDARD SERVICE 3,380
OFFER WITH THE COMMISSION UNDER SECTION 4905.30 OF THE REVISED 3,381
CODE. DURING THE MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 3,382
SUPPLIER TO DELIVER RETAIL ELECTRIC GENERATION SERVICE SHALL 3,383
RESULT IN THE SUPPLIER'S CUSTOMERS, AFTER REASONABLE NOTICE, 3,384
DEFAULTING TO THE UTILITY'S STANDARD SERVICE OFFER FILED UNDER 3,385
THIS DIVISION UNTIL THE CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. 3,386
A SUPPLIER IS DEEMED UNDER THIS SECTION TO HAVE FAILED TO DELIVER 3,387
SUCH SERVICE IF ANY OF THE CONDITIONS SPECIFIED IN DIVISIONS 3,388
(B)(1) TO (4) OF SECTION 4928.14 OF THE REVISED CODE IS MET. 3,389
(E) AN AMENDMENT OF A CORPORATE SEPARATION PLAN CONTAINED 3,391
IN A TRANSITION PLAN APPROVED BY THE COMMISSION UNDER SECTION 3,392
4928.33 OF THE REVISED CODE SHALL BE FILED AND APPROVED AS A 3,393
CORPORATE SEPARATION PLAN PURSUANT TO SECTION 4928.17 OF THE 3,394
REVISED CODE. 3,395
(F) ANY CHANGE TO AN ELECTRIC UTILITY'S OPPORTUNITY TO 3,397
RECEIVE TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED IN 3,398
ACCORDANCE WITH SECTION 4928.33 OF THE REVISED CODE SHALL BE 3,399
83
AUTHORIZED ONLY AS PROVIDED IN SECTIONS 4928.31 TO 4928.40 OF THE 3,400
REVISED CODE. 3,401
Sec. 4928.36. THE PUBLIC UTILITIES COMMISSION HAS 3,403
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 3,404
COMPLAINT BY ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 3,406
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 3,407
ELECTRIC SERVICE, TO DETERMINE WHETHER AN ELECTRIC UTILITY HAS 3,408
FAILED TO IMPLEMENT, IN CONFORMANCE WITH AN ORDER UNDER SECTION 3,409
4928.33 OF THE REVISED CODE OR IN ONGOING COMPLIANCE WITH 3,411
APPLICABLE PROVISIONS OF THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE, A TRANSITION PLAN APPROVED UNDER SECTION 3,412
4928.33 OF THE REVISED CODE. IF, AFTER REASONABLE NOTICE AND 3,414
OPPORTUNITY FOR HEARING AS PROVIDED IN SECTION 4905.26 OF THE 3,416
REVISED CODE, THE COMMISSION DETERMINES THAT THE UTILITY HAS 3,417
FAILED TO SO COMPLY, THE COMMISSION, IN ADDITION TO ANY OTHER 3,418
REMEDIES PROVIDED BY LAW, MAY USE THE REMEDIES SPECIFIED IN 3,419
DIVISIONS (C)(1) TO (3) AND (D)(1) AND (2) OF SECTION 4928.18 OF 3,420
THE REVISED CODE TO ENFORCE COMPLIANCE. 3,421
Sec. 4928.37. (A)(1) SECTIONS 4928.31 TO 4928.40 OF THE 3,423
REVISED CODE PROVIDE AN ELECTRIC UTILITY THE OPPORTUNITY TO 3,425
RECEIVE TRANSITION REVENUES THAT MAY ASSIST IT IN MAKING THE
TRANSITION TO A FULLY COMPETITIVE RETAIL ELECTRIC GENERATION 3,427
MARKET, AND PROVIDE CONSUMERS SHOPPING INCENTIVES DURING THE 3,429
TRANSITION TO SPUR THE DEVELOPMENT OF EFFECTIVE COMPETITION IN 3,430
THE SUPPLY OF RETAIL ELECTRIC GENERATION SERVICE. THE LEVEL OF 3,431
ALLOWABLE UTILITY REVENUES THAT IS LIKELY TO RESULT UNDER 3,432
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE REFLECTS AN 3,433
ASSESSMENT OF THE DISPARATE COMPETITIVE POSITIONS OF THE ELECTRIC
UTILITIES IN THIS STATE ON THE EFFECTIVE DATE OF THIS SECTION AND 3,435
AN ASSESSMENT OF THE LEVEL OF CONSUMER SAVINGS PRACTICABLE AND 3,436
NECESSARY TO SPUR EFFECTIVE COMPETITION. THE MARKET DEVELOPMENT 3,437
PERIODS FOR THE UTILITIES CONSIDER THE ECONOMIC DEVELOPMENT NEEDS 3,438
OF THIS STATE TO MOVE TO A COMPETITIVE MARKET IN A TIMELY MANNER 3,439
GIVEN REGIONAL DEVELOPMENTS AND REFLECT A DESIRE TO ASSERT STATE 3,440
84
AUTHORITY TO DETERMINE RETAIL ELECTRIC SERVICE RESTRUCTURING FOR 3,441
THIS STATE.
THE APPROACHES TO DETERMINING THE TRANSITION CHARGE UNDER 3,443
SECTIONS 4928.39 AND 4928.40 OF THE REVISED CODE ARE REASONABLE 3,445
AND FAIR TO ALL STAKEHOLDERS, RATIONALLY REPRESENT AN APPROPRIATE 3,446
SHARING OF THE RISKS AND REWARDS OF REGULATED ELECTRIC UTILITIES 3,447
MOVING TO A COMPETITIVE MARKET, AND ADVANCE THE ULTIMATE CONSUMER 3,448
PROTECTION OF ENCOURAGING EFFECTIVE COMPETITION BY PROVIDING 3,449
SHOPPING INCENTIVES AND COMPETITIVE MARGIN. OVERALL, UNDER 3,450
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, IN AREAS OF THIS 3,451
STATE WHERE IT IS NEEDED MORE, COMPETITION SHOULD BE ESTABLISHED 3,452
QUICKLY AND CONSUMERS WILL HAVE THE PROTECTION OF EFFECTIVE 3,453
MARKETS; IN AREAS WHERE THERE IS LESS MARGIN FOR COMPETITION, 3,454
CONSUMERS WILL HAVE THE PROTECTIONS OF PRICE CAPS DURING THE 3,455
MARKET DEVELOPMENT PERIOD.
AN ELECTRIC UTILITY FOR WHICH TRANSITION REVENUES ARE 3,457
APPROVED PURSUANT TO SECTIONS 4928.31 TO 4928.40 OF THE REVISED 3,458
CODE SHALL RECEIVE THOSE REVENUES THROUGH BOTH OF THE FOLLOWING 3,459
MECHANISMS BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 3,460
ELECTRIC SERVICE AND ENDING ON THE EXPIRATION DATE OF ITS 3,461
TRANSITION CHARGE AS DETERMINED UNDER SECTION 4928.39 OR 4928.40 3,462
OF THE REVISED CODE:
(a) PAYMENT OF UNBUNDLED RATES FOR RETAIL ELECTRIC 3,464
SERVICES BY EACH CUSTOMER THAT TAKES RETAIL ELECTRIC GENERATION 3,465
SERVICE DURING THE MARKET DEVELOPMENT PERIOD FROM THE CUSTOMER'S 3,466
ELECTRIC DISTRIBUTION UTILITY, WHICH RATES SHALL BE SPECIFIED IN 3,467
SCHEDULES FILED UNDER SECTION 4928.35 OF THE REVISED CODE. 3,468
(b) PAYMENT OF A NONBYPASSABLE AND COMPETITIVELY NEUTRAL 3,470
TRANSITION CHARGE BY EACH CUSTOMER THAT TAKES RETAIL ELECTRIC 3,471
GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD FROM A 3,473
SUPPLIER OTHER THAN THE CUSTOMER'S ELECTRIC DISTRIBUTION UTILITY, 3,474
AS SUCH TRANSITION CHARGE IS DETERMINED UNDER SECTION 4928.39 OR
4928.40 OF THE REVISED CODE. THE TRANSITION CHARGE SHALL BE 3,475
PAYABLE BY EACH SUCH RETAIL ELECTRIC DISTRIBUTION SERVICE 3,477
85
CUSTOMER IN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY FOR 3,478
WHICH THE TRANSITION REVENUES ARE APPROVED, AND SHALL BE BILLED 3,479
ON EACH KILOWATT-HOUR OF ELECTRICITY CONSUMED AS REGISTERED ON 3,480
THE CUSTOMER'S METER, AS KILOWATT-HOUR IS DEFINED IN SECTION 3,481
4909.161 OF THE REVISED CODE. THE TRANSITION CHARGE SHALL VARY BY 3,482
CUSTOMER CLASS AND, AS REFLECTED IN SECTION 4928.39 OR 4928.40 OF 3,483
THE REVISED CODE, SHALL BE DETERMINED BASED ON A BENCHMARK OR BE 3,484
OTHERWISE STRUCTURED TO PROVIDE SHOPPING INCENTIVES TO CUSTOMERS
SUFFICIENT TO SPUR THE DEVELOPMENT OF EFFECTIVE COMPETITION IN 3,485
THE SUPPLY OF RETAIL ELECTRIC GENERATION SERVICE. 3,486
(2) NOTWITHSTANDING DIVISION (B)(1)(b) OF THIS SECTION, 3,488
THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON ELECTRICITY 3,489
SUPPLIED BY A MUNICIPAL ELECTRIC UTILITY TO A RETAIL ELECTRIC
DISTRIBUTION SERVICE CUSTOMER IN THE CERTIFIED TERRITORY OF THE 3,490
ELECTRIC UTILITY FOR WHICH THE TRANSITION REVENUES ARE APPROVED, 3,491
IF THE MUNICIPAL ELECTRIC UTILITY PROVIDES ELECTRIC TRANSMISSION 3,492
OR DISTRIBUTION SERVICE, OR BOTH SERVICES, THROUGH TRANSMISSION 3,493
OR DISTRIBUTION FACILITIES SINGLY OR JOINTLY OWNED OR OPERATED BY 3,494
THE MUNICIPAL ELECTRIC UTILITY.
(3) THE TRANSITION CHARGE SHALL NOT BE DISCOUNTED BY ANY 3,496
PARTY UNLESS THERE IS A DETERMINATION BY THE DEPARTMENT OF 3,497
DEVELOPMENT THAT SUCH A DISCOUNT IS PART OF AN APPROVED ECONOMIC 3,498
DEVELOPMENT PACKAGE INVOLVING STATE OR LOCAL FUNDING AND IS 3,499
NECESSARY FOR ECONOMIC DEVELOPMENT TO OCCUR WITHIN THIS STATE 3,500
INSTEAD OF ANOTHER STATE.
(4) NOTHING PREVENTS PAYMENT OF ALL OR PART OF THE 3,502
TRANSITION CHARGE BY ANOTHER PARTY ON A CUSTOMER'S BEHALF IF THAT 3,503
PAYMENT DOES NOT CONTRAVENE SECTIONS 4905.33 TO 4905.35 OF THE 3,504
REVISED CODE OR THIS CHAPTER. 3,505
(B) THE ELECTRIC UTILITY SHALL SEPARATELY ITEMIZE AND 3,507
DISCLOSE, OR CAUSE ITS BILLING AND COLLECTION AGENT TO SEPARATELY 3,508
ITEMIZE AND DISCLOSE, THE TRANSITION CHARGE ON THE CUSTOMER'S 3,509
BILL IN ACCORDANCE WITH REASONABLE SPECIFICATIONS THE COMMISSION 3,510
SHALL PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF 3,511
86
THE REVISED CODE.
Sec. 4928.38. (A) THE APPLICATION FOR THE OPPORTUNITY TO 3,513
RECEIVE TRANSITION REVENUES THAT AN ELECTRIC UTILITY FILES AS 3,514
PART OF ITS TRANSITION PLAN UNDER SECTION 4928.31 OF THE REVISED 3,516
CODE SHALL SPECIFY WHETHER THE APPLICANT IS SELECTING THE 3,518
DETERMINATION OF A TRANSITION CHARGE PURSUANT TO SECTION 4928.39 3,519
OR 4928.40 OF THE REVISED CODE. THIS SELECTION SHALL BE BINDING 3,520
AND SHALL NOT BE SUBJECT TO CHANGE FOR ANY REASON ON OR AFTER THE 3,521
DATE OF THE APPLICATION'S FILING. 3,522
(B) PURSUANT TO A TRANSITION PLAN APPROVED UNDER SECTION 3,524
4928.33 OF THE REVISED CODE, AN ELECTRIC UTILITY IN THIS STATE 3,525
MAY RECEIVE TRANSITION REVENUES UNDER SECTIONS 4928.31 TO 4928.40 3,527
OF THE REVISED CODE, BEGINNING ON THE STARTING DATE OF 3,529
COMPETITIVE RETAIL ELECTRIC SERVICE. EXCEPT AS PROVIDED IN
SECTIONS 4905.33 TO 4905.35 OF THE REVISED CODE AND THIS CHAPTER, 3,531
AN ELECTRIC UTILITY THAT RECEIVES SUCH TRANSITION REVENUES SHALL 3,532
BE WHOLLY RESPONSIBLE FOR HOW TO USE THOSE REVENUES AND WHOLLY 3,533
RESPONSIBLE FOR WHETHER IT IS IN A COMPETITIVE POSITION AFTER THE 3,534
MARKET DEVELOPMENT PERIOD. THE UTILITY'S RECEIPT OF TRANSITION 3,535
REVENUES SHALL TERMINATE AT THE END OF THE MARKET DEVELOPMENT 3,536
PERIOD. WITH THE TERMINATION OF THAT APPROVED REVENUE SOURCE, 3,537
THE UTILITY SHALL BE FULLY ON ITS OWN IN THE COMPETITIVE MARKET. 3,538
THE COMMISSION SHALL NOT AUTHORIZE THE RECEIPT OF TRANSITION 3,539
REVENUES OR ANY EQUIVALENT REVENUES BY AN ELECTRIC UTILITY EXCEPT 3,540
AS EXPRESSLY AUTHORIZED IN SECTIONS 4928.31 TO 4928.40 OF THE 3,541
REVISED CODE.
Sec. 4928.39. (A) IN THE CASE OF AN APPLICATION UNDER 3,543
SECTION 4928.31 OF THE REVISED CODE REQUESTING THE OPPORTUNITY TO 3,544
RECEIVE TRANSITION REVENUES UNDER THIS SECTION, THE TRANSITION 3,546
CHARGE FOR EACH CUSTOMER CLASS OF EACH UTILITY, EXCEPT AS 3,547
OTHERWISE PROVIDED IN DIVISION (B) OF THIS SECTION, SHALL BE 3,548
DETERMINED BY THE PUBLIC UTILITIES COMMISSION SUBTRACTING FROM 3,550
THAT CLASS'S AVERAGE RATE PER KILOWATT-HOUR THE SUM OF THE 3,551
APPLICABLE UNBUNDLED TRANSMISSION AND DISTRIBUTION RATES FOR EACH 3,552
87
CLASS PLUS A BENCHMARK FOR EACH CUSTOMER CLASS FOR THE PURPOSE OF 3,553
SO DETERMINING THE TRANSITION CHARGE:
(1) A CLASS'S AVERAGE RATE PER KILOWATT-HOUR SHALL BE SET 3,555
AS AN AMOUNT EQUAL TO THE REVENUES FOR THE CLASS AS REPORTED IN 3,556
THE UTILITY'S 1997 FEDERAL ENERGY REGULATORY COMMISSION FORM 1 3,557
DIVIDED BY THE KILOWATT-HOUR SALES REPORTED FOR THE CLASS IN THAT 3,558
DOCUMENT. 3,559
(2) THE APPLICABLE UNBUNDLED TRANSMISSION AND DISTRIBUTION 3,561
RATES SHALL BE THE UNBUNDLED TRANSMISSION AND DISTRIBUTION 3,562
COMPONENTS SPECIFIED IN THE RATE UNBUNDLING PLAN OF THE UTILITY'S 3,563
TRANSITION PLAN AS SET BY THE COMMISSION FOR APPROVAL UNDER 3,564
SECTION 4928.33 OF THE REVISED CODE.
(3)(a) EXCEPT AS OTHERWISE PROVIDED UNDER DIVISION (B) OF 3,567
THIS SECTION, THE BENCHMARK FOR EACH CUSTOMER CLASS SHALL BE AS 3,568
FOLLOWS:
RESIDENTIAL COMMERCIAL INDUSTRIAL OTHER 3,574
CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS 3,579
CLEVELAND 3,581
ELECTRIC
ILLUMINATING 5.375 5.081 3.281 4.458 3,585
CINCINNATI 3,586
GAS &
ELECTRIC 4.404 4.092 2.441 3.769 3,590
COLUMBUS 3,591
SOUTHERN
POWER 4.526 4.083 2.517 2.651 3,595
DAYTON 3,596
POWER &
LIGHT 4.270 3.764 2.185 3.376 3,600
OHIO 3,601
EDISON 4.630 4.383 2.585 3.201 3,605
OHIO 3,606
POWER 4.032 3.627 2.073 5.086 3,610
88
TOLEDO 3,611
EDISON 5.196 5.160 3.094 4.650 3,615
MONONGAHELA 3,616
POWER 4.639 4.376 2.720 7.528 3,620
(b) EACH BENCHMARK IN DIVISION (A)(3)(a) OF THIS SECTION 3,624
IS DETERMINED BY ADDING VARIABLE COST AS DETERMINED UNDER 3,625
DIVISION (A)(4) OF THIS SECTION AND A CLASS ADDER AS DETERMINED 3,626
UNDER DIVISION (A)(7) OF THIS SECTION. 3,627
(4) VARIABLE COST IS DETERMINED BY ADDING, TO ACCOUNT 3,629
COSTS IN DIVISION (A)(5) OF THIS SECTION, TEN PER CENT OF THE 3,630
CLASS AVERAGE RATE PER KILOWATT-HOUR. 3,631
(5) ACCOUNT COSTS FOR CALCULATING VARIABLE COST UNDER 3,633
DIVISION (A)(4) OF THIS SECTION ARE DERIVED BY DIVIDING BY THE 3,635
TOTAL KILOWATT-HOUR SALES REPORTED IN THE UTILITY'S 1997 FEDERAL 3,637
ENERGY REGULATORY COMMISSION FORM 1 THE SUM OF ALL EXPENSES
REPORTED IN THAT DOCUMENT FOR ACCOUNTS 500 THROUGH 509, EXCLUDING 3,639
507, 512 THROUGH 514, 517 THROUGH 524, 530 THROUGH 532, 546 3,640
THROUGH 549, AND 555 THROUGH 557. 3,641
(6) THE CLASS ADDER FOR THE INDUSTRIAL CLASS IS SET AT 3,643
ZERO. THE CLASS ADDER FOR EACH OTHER CLASS IS DETERMINED BY 3,644
APPLYING A CLASS ALLOCATOR TO A TOTAL AMOUNT EQUAL TO 1.5 CENTS 3,645
PER KILOWATT-HOUR MULTIPLIED BY THE TOTAL KILOWATT-HOUR SALES FOR 3,646
1997 FOR THE RESIDENTIAL, COMMERCIAL, AND OTHER CLASSES OF THE 3,647
UTILITY'S CUSTOMERS, AS REPORTED IN THE UTILITY'S 1997 FEDERAL 3,648
ENERGY REGULATORY COMMISSION FORM 1. 3,649
(7) THE CLASS ALLOCATOR IS DETERMINED BASED UPON EACH 3,651
CLASS'S CONTRIBUTION TO TOTAL REVENUES. EACH SUCH CONTRIBUTION 3,652
IS DETERMINED BY MULTIPLYING THE APPLICABLE CLASS AVERAGE RATE 3,653
PER KILOWATT-HOUR IN 1997 BY THAT CLASS'S SALES AS REPORTED IN 3,656
THE UTILITY'S 1997 FEDERAL ENERGY REGULATORY COMMISSION FORM 1. 3,657
EACH CLASS CONTRIBUTION IS DIVIDED BY THE SUM OF THE 3,658
CONTRIBUTIONS FOR THE RESIDENTIAL, COMMERCIAL, AND OTHER CLASSES 3,659
TO DERIVE THE CLASS ALLOCATOR.
(B) ONLY IF THE BENCHMARK PLUS THE APPLICABLE UNBUNDLED 3,661
89
TRANSMISSION AND DISTRIBUTION RATE FOR A CUSTOMER CLASS EXCEEDS 3,663
THE CLASS AVERAGE RATE PER KILOWATT-HOUR, THE TRANSITION CHARGE 3,664
FOR THE CLASS SHALL BE SET AT ZERO, AND THE COMMISSION SHALL SET 3,665
THE BENCHMARK EQUAL TO THE CLASS'S AVERAGE RATE PER KILOWATT-HOUR 3,666
LESS THE APPLICABLE UNBUNDLED TRANSMISSION AND DISTRIBUTION RATE. 3,667
(C) THE TRANSITION CHARGE UNDER DIVISIONS (A) AND (B) OF 3,670
THIS SECTION SHALL BE ADJUSTED TO REFLECT THE EFFECT OF ANY 3,671
CHANGE IN THE TAXATION OF ELECTRIC UTILITIES OR ELECTRIC SERVICES 3,672
AS PRESCRIBED IN __. B. NO. __ OF THE 123rd GENERAL ASSEMBLY. 3,673
(D) THE EXPIRATION DATE OF A TRANSITION CHARGE DETERMINED 3,675
UNDER DIVISIONS (A) TO (C) OF THIS SECTION FOR EACH ELECTRIC 3,676
UTILITY AND THE EXPIRATION DATE OF THE UTILITY'S MARKET 3,678
DEVELOPMENT PERIOD SHALL BE AS FOLLOWS: CLEVELAND ELECTRIC 3,679
ILLUMINATING, MARCH 31, 2005; CINCINNATI GAS & ELECTRIC, MARCH 3,682
31, 2004; COLUMBUS SOUTHERN POWER, JUNE 30, 2004; DAYTON POWER & 3,685
LIGHT, SEPTEMBER 30, 2003; OHIO EDISON, MARCH 31, 2005; OHIO 3,690
POWER, MARCH 31, 2005; TOLEDO EDISON, MARCH 31, 2005; AND 3,691
MONONGAHELA POWER, MARCH 31, 2002. 3,693
(E) THE TRANSITION CHARGE DETERMINED PURSUANT TO DIVISIONS 3,695
(A) TO (D) OF THIS SECTION SHALL NOT BE ADJUSTED BY THE 3,697
COMMISSION DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD FOR ANY 3,698
REASON, EXCEPT THAT, THREE MONTHS PRIOR TO THE MIDPOINT OF A 3,700
UTILITY'S MARKET DEVELOPMENT PERIOD, THE COMMISSION SHALL 3,701
INITIATE A PROCEEDING AND CONCLUDE IT PRIOR TO THE END OF THE 3,702
THREE MONTHS TO DETERMINE WHETHER ONLY THE TRANSITION CHARGE FOR 3,703
RESIDENTIAL AND COMMERCIAL CONSUMERS SHOULD BE ADJUSTED AND SO 3,704
FIXED FOR THE REMAINDER OF THE PERIOD SPECIFIED IN DIVISION (D) 3,705
OF THIS SECTION. THE APPROACH UNDER THIS SECTION ASSUMES A 3,706
COMPOSITE MARKET PRICE FOR ELECTRICITY OF THREE CENTS PER
KILOWATT-HOUR AND ASSUMES AN AVERAGE OF TWENTY PER CENT OF THE 3,708
CUSTOMERS OF AN ELECTRIC UTILITY CHANGING TO AN ALTERNATIVE 3,709
GENERATION SUPPLIER DURING THE MARKET DEVELOPMENT PERIOD. THE 3,710
COMMISSION MAY ADJUST THE TRANSITION CHARGE UNDER THIS DIVISION 3,711
BY ADJUSTING ONLY THE BENCHMARK IF, AFTER REASONABLE NOTICE AND 3,712
90
OPPORTUNITY FOR HEARING, THE COMMISSION FINDS THAT EITHER OF 3,713
THOSE ASSUMPTIONS HAVE CHANGED SIGNIFICANTLY DURING THE TIME IN 3,714
WHICH THE CHARGE HAS BEEN IN EFFECT. THE COMMISSION SHALL NOT 3,715
ADJUST THE CHARGE FOR ANY OTHER REASONS, INCLUDING TO RECOGNIZE 3,716
ANY GAIN OR LOSS FROM THE SALE OF A UTILITY ASSET DURING THE 3,717
MARKET DEVELOPMENT PERIOD.
Sec. 4928.40. (A) IN THE CASE OF AN APPLICATION UNDER 3,719
SECTION 4928.31 OF THE REVISED CODE REQUESTING THE OPPORTUNITY TO 3,720
RECEIVE TRANSITION REVENUES UNDER THIS SECTION, THE PUBLIC 3,722
UTILITIES COMMISSION SHALL DETERMINE A TRANSITION CHARGE 3,723
SUFFICIENT IN EACH YEAR OF THE UTILITY'S MARKET DEVELOPMENT 3,724
PERIOD TO PROVIDE THE UTILITY THE OPPORTUNITY TO RECEIVE TOTAL 3,725
ALLOWABLE TRANSITION REVENUES BASED SOLELY ON A CONSIDERATION OF 3,726
THE UTILITY'S FINANCIAL NEED AS DEMONSTRATED BY THE ELECTRIC 3,727
UTILITY'S FINANCIAL BOOKS AND RECORDS AS OF THE DATE OF FILING. 3,728
IN ESTABLISHING THE ALLOWABLE AMOUNT OF TRANSITION REVENUES FOR 3,729
AN ELECTRIC UTILITY UNDER THIS SECTION, THE COMMISSION SHALL 3,730
PROVIDE STRICTLY FOR THE MAINTENANCE OF THE UTILITY'S BASIC 3,731
FINANCIAL INTEGRITY AND FOR ALL OF THE FOLLOWING: 3,732
(1) THE AMOUNT AWARDED IS A DIRECT RESULT OF IMMINENT 3,734
FINANCIAL INJURY TO THE FINANCIAL INTEGRITY OF THE UTILITY AS A 3,735
WHOLE, IS LIMITED TO THE EXTENT THAT THE IMMINENT FINANCIAL 3,736
INJURY WAS PROXIMATELY CAUSED BY ELECTRIC INDUSTRY RESTRUCTURING, 3,737
AND IS NOT OTHERWISE OFFSET BY THE UTILITY'S OPPORTUNITY TO EARN 3,738
A FAIR AND REASONABLE RATE OF RETURN ON ITS ELECTRIC TRANSMISSION 3,739
OR DISTRIBUTION BUSINESSES OR ITS OPPORTUNITY TO EARN REVENUES IN 3,740
STATE, NATIONAL, AND INTERNATIONAL MARKETS. 3,741
(2) UNDER THE STANDARD SET FORTH IN DIVISION (A)(1) OF 3,743
THIS SECTION AND DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD, 3,744
THE UTILITY IS ABLE, BASED ON A CASH FLOW ANALYSIS OF THE
UTILITY, TO MEET ITS THEN-EXISTING LEGAL DEBT OBLIGATIONS NOT 3,745
OTHERWISE MITIGATABLE AND TO PROVIDE A MODEST DIVIDEND TO 3,746
SHAREHOLDERS. FOR THE PURPOSE OF CALCULATING THE AMOUNT OF 3,747
ALLOWABLE TRANSITION REVENUES UNDER THIS SECTION, THE COMMISSION 3,748
91
SHALL ASSUME PAYMENT OF A MODEST DIVIDEND DETERMINED BY THE 3,749
COMMISSION SOLELY FOR THE PURPOSE OF THIS SECTION. 3,750
(3) THE AMOUNT AWARDED IS THE MINIMUM AMOUNT REQUIRED TO 3,752
PREVENT OR MITIGATE SUCH FINANCIAL INJURY. 3,753
(4) THE TRANSITION CHARGE APPROVED UNDER SECTION 4928.33 3,755
OF THE REVISED CODE ALLOWS FOR THE MAXIMUM AMOUNT OF COMPETITION 3,757
TO DEVELOP DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD, 3,758
CONSISTENT WITH THE STANDARDS STATED IN DIVISIONS (A)(1) TO (3) 3,759
OF THIS SECTION. ACCORDINGLY, TO THE EXTENT THE COMMISSION 3,760
DETERMINES FEASIBLE, THE TRANSITION CHARGE SHALL DECLINE DURING
EACH YEAR OF THE PERIOD. 3,761
AS A FURTHER CONDITION OF HAVING THE OPPORTUNITY TO RECEIVE 3,763
TRANSITION REVENUES UNDER THIS SECTION, THE ELECTRIC UTILITY 3,764
SHALL PROVIDE THE COMMISSION DURING THE UTILITY'S MARKET 3,765
DEVELOPMENT PERIOD WITH FULL ACCESS TO ITS BOOKS AND RECORDS AND 3,766
THE BOOKS AND RECORDS OF ITS AFFILIATES SOLELY FOR THE PURPOSE OF 3,767
DETERMINING THE ELECTRIC UTILITY'S FINANCIAL INTEGRITY UNDER THIS 3,768
SECTION. PARTIES TO THE APPLICATION APPROVAL PROCEEDING MAY 3,769
PROPOSE, AND THE COMMISSION MAY ADOPT, SUCH TRUE-UP PROCEDURES AS 3,770
ARE NECESSARY TO ENSURE THAT THE STANDARDS SET FORTH IN DIVISIONS 3,771
(A)(1) TO (4) OF THIS SECTION ARE MET. 3,772
(B) THE EXPIRATION DATE OF A TRANSITION CHARGE SPECIFIED 3,774
UNDER DIVISION (A) OF THIS SECTION AND OF THE UTILITY'S MARKET 3,775
DEVELOPMENT PERIOD SHALL BE MARCH 31, 2005. HOWEVER, THREE 3,776
MONTHS PRIOR TO THE MIDPOINT OF THE UTILITY'S MARKET DEVELOPMENT 3,777
PERIOD, THE COMMISSION SHALL INITIATE A PROCEEDING AND CONCLUDE 3,778
IT PRIOR TO THE END OF THE THREE MONTHS TO DETERMINE WHETHER 3,779
CIRCUMSTANCES HAVE CHANGED SIGNIFICANTLY SINCE THE BEGINNING OF 3,780
THE MARKET DEVELOPMENT PERIOD SUCH THAT AN EXTENSION OF THE 3,781
EXPIRATION DATE IS WARRANTED. IF, AFTER REASONABLE NOTICE AND
OPPORTUNITY FOR HEARING, THE COMMISSION MAKES SUCH A 3,782
DETERMINATION, IT SHALL REPORT ITS FINDINGS AND ANY 3,783
RECOMMENDATIONS TO THE GENERAL ASSEMBLY, AND SHALL EXTEND THE 3,784
EXPIRATION DATE ONLY IN ACCORDANCE WITH SUCH FURTHER LEGISLATION 3,785
92
AS IS ENACTED BY THE GENERAL ASSEMBLY. 3,786
Sec. 4928.41. THE TRANSITION REVENUE AUTHORITY PROVIDED 3,788
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE FOR 3,789
ELECTRIC UTILITIES DOES NOT AFFECT THE AUTHORITY OF AN ELECTRIC 3,790
COOPERATIVE IN THIS STATE TO RECEIVE TRANSITION REVENUES. 3,791
Sec. 4928.42. PRIOR TO THE STARTING DATE OF COMPETITIVE 3,793
RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES COMMISSION, IN 3,794
CONSULTATION WITH THE CONSUMERS' COUNSEL AND WITH OTHER STATE 3,795
AGENCIES AS CONSIDERED NECESSARY, SHALL PRESCRIBE AND ADOPT BY 3,796
ORDER A GENERAL PLAN BY WHICH EACH ELECTRIC UTILITY SHALL PROVIDE 3,797
DURING ITS MARKET DEVELOPMENT PERIOD CONSUMER EDUCATION ON 3,798
ELECTRIC RESTRUCTURING UNDER THIS CHAPTER. THE GENERAL PLAN 3,799
SHALL REQUIRE THE UTILITIES TO SPEND ON SUCH CONSUMER EDUCATION 3,800
WITHIN THEIR RESPECTIVE CERTIFIED DISTRIBUTION SERVICE 3,801
TERRITORIES IN THE AGGREGATE UP TO SIXTEEN MILLION DOLLARS IN THE 3,802
FIRST YEAR OF THAT PERIOD AND AN ADDITIONAL SEVENTEEN MILLION 3,803
DOLLARS IN THE AGGREGATE IN DECREASING AMOUNTS OVER THE REMAINING 3,804
YEARS OF EACH UTILITY'S MARKET DEVELOPMENT PERIOD, WITH THE 3,805
AGGREGATE AMOUNTS DIVIDED AMONG THE UTILITIES BASED ON THEIR 3,806
RESPECTIVE NUMBER OF CUSTOMERS AS OF DECEMBER 31, 1997. THE 3,807
GENERAL PLAN SHALL PROHIBIT SUCH CONSUMER EDUCATION FROM
OCCURRING IN COMBINATION WITH MARKETING FOR THE UTILITY'S OR ITS 3,809
AFFILIATE'S RETAIL ELECTRIC SERVICES. TRANSITION REVENUES 3,810
PROVIDED UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE
INCLUDE THE COSTS OF THE CONSUMER EDUCATION REQUIRED UNDER THIS 3,812
SECTION.
Sec. 4928.43. (A) AT THE SAME TIME IT FILES A TRANSITION 3,814
PLAN UNDER SECTION 4928.31 OF THE REVISED CODE, AN ELECTRIC 3,815
UTILITY SHALL FILE WITH THE PUBLIC UTILITIES COMMISSION SOLELY 3,817
FOR INFORMATION PURPOSES A PLAN FOR PROVIDING SEVERANCE, 3,818
RETRAINING, EARLY RETIREMENT, RETENTION, OUTPLACEMENT, AND OTHER 3,820
ASSISTANCE FOR THE UTILITY'S EMPLOYEES WHOSE EMPLOYMENT IN 3,821
ELECTRIC GENERATION-RELATED ACTIVITIES AND OTHER RELATED AREAS IS 3,822
AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING UNDER THIS CHAPTER. 3,823
93
THIS EMPLOYEE ASSISTANCE PLAN SHALL NOT BE DEEMED A PART OF THE 3,824
TRANSITION PLAN FOR PURPOSES OF SECTIONS 4928.31 TO 4928.40 OF 3,825
THE REVISED CODE, BUT SHALL BE INCLUDED IN THE PUBLIC NOTICE OF 3,827
THE UTILITY'S FILING UNDER DIVISION (B) OF SECTION 4928.31 OF THE 3,828
REVISED CODE AND SHALL BE INCLUDED IN THE RECORD REQUIRED UNDER 3,830
DIVISION (C) OF SECTION 4928.32 OF THE REVISED CODE. TRANSITION 3,831
REVENUES PROVIDED UNDER SECTIONS 4928.31 TO 4928.40 OF THE 3,832
REVISED CODE INCLUDE THE COSTS OF SUCH ASSISTANCE. 3,833
(B) EACH STATE AGENCY THAT PROVIDES EMPLOYMENT ASSISTANCE 3,835
AND JOB TRAINING PROGRAMS, INCLUDING THE BUREAU OF EMPLOYMENT 3,836
SERVICES AND THE DEPARTMENT OF DEVELOPMENT, SHALL PROVIDE 3,837
CONCENTRATED ATTENTION THROUGH THOSE PROGRAMS TO ASSISTING 3,838
EMPLOYEES WHOSE EMPLOYMENT IN ELECTRIC GENERATION-RELATED 3,839
ACTIVITIES AND OTHER RELATED AREAS IS AFFECTED BY ELECTRIC 3,840
INDUSTRY RESTRUCTURING UNDER THIS CHAPTER. 3,841
Sec. 4928.44. (A) THIS SECTION DOES NOT APPLY TO AN 3,842
ELECTRIC UTILITY IF NEITHER IT NOR ANY OF ITS AFFILIATES OWNS OR 3,844
CONTROLS ANY ELECTRIC GENERATION FACILITIES IN THIS STATE. 3,845
(B) A COMPETITIVE AUCTION OF RETAIL ELECTRIC GENERATION 3,847
SERVICE SHALL BE HELD FOR THE AUCTION CUSTOMERS OF AN ELECTRIC 3,848
UTILITY FOR THE TWELVE-MONTH PERIOD BEGINNING ON THE FIRST DAY OF 3,849
THE COMPETITIVE AUCTION PERIOD. THEREAFTER, SUCH YEARLY 3,850
COMPETITIVE AUCTIONING OF THE UTILITY'S AUCTION CUSTOMERS SHALL 3,851
CONTINUE UNTIL THE PUBLIC UTILITIES COMMISSION BY ORDER DECLARES 3,852
THE AUCTIONING TERMINATED, UPON A COMMISSION FINDING THAT NEITHER 3,853
THE UTILITY NOR ANY OF ITS AFFILIATES OWNS OR CONTROLS ANY 3,854
GENERATING FACILITIES IN THIS STATE OR THAT THERE IS EFFECTIVE 3,855
COMPETITION IN THE UTILITY'S CERTIFIED TERRITORY. THE BURDEN OF 3,856
PROOF IN EITHER INSTANCE SHALL LIE WITH THE UTILITY. UPON 3,857
ISSUANCE OF A TERMINATION ORDER UNDER THIS DIVISION, COMPETITIVE 3,858
AUCTIONING OF SUCH RETAIL ELECTRIC SERVICE IS TERMINATED AND 3,859
SHALL NOT BE RENEWED BY THE COMMISSION. 3,860
(C) AT THE END OF COMPETITIVE AUCTIONING FOR A PARTICULAR 3,862
ELECTRIC UTILITY, AUCTION CUSTOMERS, AFTER REASONABLE NOTICE, 3,863
94
SHALL DEFAULT TO THE UTILITY'S STANDARD SERVICE OFFER UNDER 3,864
DIVISION (A) OF SECTION 4928.15 OF THE REVISED CODE UNTIL THE 3,865
CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. 3,866
(D) AN AUCTION UNDER THIS SECTION SHALL BE ACCOMPLISHED 3,868
THROUGH AN OPEN, REAL-TIME AUCTION CONDUCTED BY AN INDEPENDENT 3,869
PARTY SELECTED BY THE COMMISSION. BID DOCUMENTS SHALL ADDRESS 3,870
SUCH MINIMUM STANDARDS OF MANAGERIAL, FINANCIAL, AND TECHNICAL 3,871
CAPABILITY OF THE SUPPLIER TO DELIVER POWER UNDER THE BID AS THE 3,872
COMMISSION SHALL PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 3,873
4928.06 OF THE REVISED CODE. THE AUCTION CUSTOMERS OF THE 3,874
ELECTRIC UTILITY SHALL BE AUCTIONED IN TEN BLOCKS, EACH 3,875
REPRESENTING TEN PER CENT OF THE AGGREGATED LOAD OF THOSE 3,876
CUSTOMERS.
(E) THE COMMISSION SHALL SELECT THE WINNING BIDDERS BASED 3,878
ON THE BIDS SUBMITTED BY QUALIFIED BIDDERS IN THE AUCTION PROCESS 3,879
CONDUCTED BY THE INDEPENDENT PARTY. THE SOLE SELECTION CRITERION 3,880
SHALL BE LOWEST PRICE. THE PRICE CHARGED AN AUCTION CUSTOMER 3,881
SHALL BE THE AVERAGE PRICE THAT RESULTS FROM THE TEN WINNING 3,882
BIDS. THE PRICE RECEIVED BY THE WINNING BIDDER SHALL BE THE 3,883
BIDDER'S BID PRICE, AND THE COMMISSION SHALL DEVELOP A PROCEDURE 3,884
PROVIDING FOR PROMPT AND FAIR DISBURSEMENT OF REVENUES TO WINNING 3,885
BIDDERS BASED ON SUCH BID PRICES. 3,886
(F) AN AUCTION CUSTOMER'S BILL SHALL DISCLOSE THE PRICE TO 3,888
BE PAID BY THE CUSTOMER AND STATE THAT THE PRICE FOR THE 3,889
GENERATION SERVICE WAS DERIVED THROUGH COMPETITIVE AUCTION. THE 3,890
BILL ALSO SHALL DISCLOSE FUEL MIX AND ENVIRONMENTAL 3,891
CHARACTERISTICS OF THE FUEL SUPPLY AS REQUIRED UNDER DIVISION (F) 3,892
OF SECTION 4928.10 OF THE REVISED CODE. 3,893
(G) UNTIL THE COMMISSION DETERMINES AN ACCEPTABLE BID IN 3,895
THE CASE OF A TECHNICAL FLAW IN ANY PART OF AN AUCTION PROPOSAL 3,896
FOR THE TEN BLOCKS OF LOAD, THE ELECTRIC DISTRIBUTION UTILITY 3,897
SHALL SUPPLY GENERATION FOR THE AUCTION CUSTOMERS WHOSE SERVICE 3,898
IS AFFECTED BY THE TECHNICAL FLAW. THE PRICE FOR THAT GENERATION 3,899
SERVICE SHALL BE THE UNBUNDLED GENERATION SERVICE COMPONENT 3,900
95
SPECIFIED IN THE UTILITY'S SCHEDULE FILED UNDER SECTION 4928.34 3,901
OF THE REVISED CODE, AND SUCH SCHEDULE SHALL BE IN EFFECT FOR 3,902
THAT TEMPORARY SERVICE. SUCH PRICE SHALL BE INCLUDED IN THE 3,903
CALCULATION OF THE AVERAGE PRICE UNDER DIVISION (E) OF THIS 3,904
SECTION UNTIL SUCH TIME AS A BID IS ACCEPTED AND THE AVERAGE 3,905
PRICE RECALCULATED ACCORDINGLY. IF THE ELECTRIC DISTRIBUTION
UTILITY INCURS A LOSS DUE TO PROVIDING THE TEMPORARY SERVICE AT 3,907
THE PRICE SPECIFIED IN THE SCHEDULE, THE COMMISSION SHALL 3,908
AUTHORIZE THE ELECTRIC DISTRIBUTION UTILITY, THROUGH THE FILING 3,909
OF REVISED DISTRIBUTION SERVICE SCHEDULES UNDER SECTION 4905.30 3,910
OF THE REVISED CODE, TO RECOVER UP TO SUCH AMOUNT OF THE LOSS AS 3,911
THE COMMISSION CONSIDERS REASONABLE UPON A DETERMINATION THAT THE 3,912
UTILITY SUPPLIED THE SERVICE AT THE LEAST COST GIVEN MARKET 3,913
CONDITIONS AT THE TIME.
(H) THE COMMISSION SHALL ADOPT RULES UNDER DIVISION (A) OF 3,916
SECTION 4928.06 OF THE REVISED CODE ENSURING FAIRNESS IN THE 3,917
AUCTION PROCESS AND THE PERFORMANCE OF A WINNING BIDDER, AND 3,918
PROVIDING FOR DEFAULT SERVICE IF A WINNING BIDDER FAILS TO 3,919
PERFORM UNDER THE TERMS AND CONDITIONS APPLICABLE TO ITS 3,920
PROVISION OF SERVICE. 3,921
(I) AN AUCTION CUSTOMER MAY OPT OUT OF AN AUCTION POOL 3,923
UNDER THIS SECTION AT ANY TIME UPON PAYMENT OF ANY APPLICABLE 3,924
SWITCHING FEE, WHICH FEE SHALL BE A NOMINAL AMOUNT BASED ON THE 3,925
WINNING BIDDER'S ADMINISTRATIVE COSTS. THE SWITCHING FEE SHALL 3,926
BE DISCLOSED IN ANY BID SUBMITTED UNDER THIS SECTION. 3,927
(J) COMPETITIVE AUCTIONING UNDER THIS SECTION IS WITHIN 3,929
THE AUTHORITY OF THIS STATE UNDER SECTION 722(g) OF THE "ENERGY 3,931
POLICY ACT OF 1992," 106 STAT. 2776, 16 U.S.C. 824k(g). 3,935
Sec. 4928.51. (A) THERE IS HEREBY ESTABLISHED IN THE 3,937
STATE TREASURY A UNIVERSAL SERVICE FUND, INTO WHICH SHALL BE 3,938
DEPOSITED ALL UNIVERSAL SERVICE REVENUES REMITTED TO THE DIRECTOR 3,939
OF DEVELOPMENT UNDER THIS SECTION, FOR THE EXCLUSIVE PURPOSES OF 3,940
PROVIDING FUNDING FOR THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS 3,941
AND FOR THE CONSUMER EDUCATION PROGRAM AUTHORIZED UNDER SECTION 3,942
96
4928.56 OF THE REVISED CODE, AND PAYING THE ADMINISTRATIVE COSTS 3,943
OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 3,944
EDUCATION PROGRAM. INTEREST ON THE FUND SHALL BE CREDITED TO THE 3,945
FUND. DISBURSEMENTS FROM THE FUND SHALL BE MADE TO ANY SUPPLIER 3,946
THAT PROVIDES A COMPETITIVE RETAIL ELECTRIC SERVICE TO A CUSTOMER 3,947
WHO IS APPROVED TO RECEIVE ASSISTANCE UNDER A SPECIFIED 3,948
LOW-INCOME CUSTOMER ASSISTANCE PROGRAM AND TO ANY AUTHORIZED 3,949
PROVIDER OF WEATHERIZATION OR ENERGY EFFICIENCY SERVICE TO A 3,950
CUSTOMER APPROVED TO RECEIVE SUCH ASSISTANCE UNDER A SPECIFIED 3,951
LOW-INCOME CUSTOMER ASSISTANCE PROGRAM. 3,952
(B) UNIVERSAL SERVICE REVENUES SHALL INCLUDE ALL OF THE 3,954
FOLLOWING: 3,955
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 3,957
AN ELECTRIC DISTRIBUTION UTILITY BEGINNING ON THE STARTING DATE 3,958
OF COMPETITIVE RETAIL ELECTRIC SERVICE, ATTRIBUTABLE TO THE 3,959
COLLECTION FROM CUSTOMERS OF THE UNIVERSAL SERVICE RIDER 3,960
PRESCRIBED UNDER SECTION 4928.52 OF THE REVISED CODE; 3,961
(2) REVENUES REMITTED TO THE DIRECTOR THAT HAVE BEEN 3,963
COLLECTED BY AN ELECTRIC DISTRIBUTION UTILITY BEGINNING ON THE 3,964
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE AS CUSTOMER 3,965
PAYMENTS UNDER THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM, 3,966
INCLUDING REVENUES REMITTED UNDER DIVISION (C) OF THIS SECTION; 3,967
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 3,969
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 3,970
COOPERATIVE IN THIS STATE NOT EARLIER THAN THE STARTING DATE OF 3,971
COMPETITIVE RETAIL ELECTRIC SERVICE UPON THE UTILITY'S OR 3,972
COOPERATIVE'S DECISION TO PARTICIPATE IN THE LOW-INCOME CUSTOMER 3,973
ASSISTANCE PROGRAMS. SUCH REMITTANCES SHALL ENTITLE THE 3,974
CUSTOMERS OF THE UTILITY OR COOPERATIVE TO RECEIVE BENEFITS FROM 3,975
THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS FUNDED THROUGH THE 3,976
UNIVERSAL SERVICE FUND FOR THE TIME THE UTILITY OR COOPERATIVE IS 3,977
SUCH A PARTICIPANT.
(C) BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 3,979
ELECTRIC SERVICE, AN ELECTRIC DISTRIBUTION UTILITY SHALL TRANSFER 3,980
97
TO THE DIRECTOR THE RIGHT TO COLLECT ALL ARREARAGE PAYMENTS OF A 3,981
CUSTOMER FOR PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM DEBT OWED 3,982
TO THE UTILITY ON THE DAY BEFORE THAT DATE OR RETAIN THE RIGHT TO 3,983
COLLECT THAT DEBT BUT REMIT TO THE DIRECTOR ALL PROGRAM REVENUES 3,984
RECEIVED BY THE UTILITY FOR THAT CUSTOMER. 3,985
Sec. 4928.52. (A) BEGINNING ON THE STARTING DATE OF 3,987
COMPETITIVE RETAIL ELECTRIC SERVICE, THE UNIVERSAL SERVICE RIDER 3,988
SHALL REPLACE THE PERCENTAGE OF INCOME PAYMENT PLAN RIDER IN 3,989
EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION AND SHALL BE A 3,990
RIDER ON RETAIL ELECTRIC DISTRIBUTION SERVICE RATES AS SUCH RATES 3,991
ARE DETERMINED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO 3,992
THIS CHAPTER. THE UNIVERSAL SERVICE RIDER FOR THE FIRST FIVE 3,993
YEARS AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 3,994
SERVICE SHALL BE THE SUM OF ALL OF THE FOLLOWING: 3,995
(1) THE LEVEL OF THE PERCENTAGE OF INCOME PAYMENT PLAN 3,997
PROGRAM RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION; 3,998
(2) AN AMOUNT EQUAL TO THE LEVEL OF FUNDING FOR LOW-INCOME 4,000
CUSTOMER ENERGY EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC 4,001
UTILITY RATES IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION; 4,002
(3) ANY ADDITIONAL AMOUNT NECESSARY AND SUFFICIENT TO FUND 4,004
THROUGH THE UNIVERSAL SERVICE RIDER THE ADMINISTRATIVE COSTS OF 4,005
THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,006
EDUCATION PROGRAM CREATED IN SECTION 4928.57 OF THE REVISED CODE. 4,007
(B) IF, DURING OR AFTER THE FIVE-YEAR PERIOD SPECIFIED IN 4,009
DIVISION (A) OF THIS SECTION, THE DIRECTOR OF DEVELOPMENT, AFTER 4,011
CONSULTATION WITH THE UNIVERSAL SERVICE ADVISORY BOARD, 4,012
DETERMINES THAT REVENUES IN THE UNIVERSAL SERVICE FUND AND 4,014
REVENUES FROM FEDERAL OR OTHER SOURCES OF FUNDING FOR THOSE
PROGRAMS, INCLUDING GENERAL REVENUE FUND APPROPRIATIONS FOR THE 4,016
OHIO ENERGY CREDIT PROGRAM, WILL BE INSUFFICIENT TO COVER THE 4,017
ADMINISTRATIVE COSTS OF THE LOW-INCOME CUSTOMER ASSISTANCE 4,018
PROGRAMS AND THE CONSUMER EDUCATION PROGRAM AND PROVIDE ADEQUATE 4,019
FUNDING FOR THOSE PROGRAMS, THE DIRECTOR SHALL FILE A PETITION 4,020
WITH THE COMMISSION FOR AN INCREASE IN THE UNIVERSAL SERVICE 4,021
98
RIDER. THE COMMISSION, AFTER REASONABLE NOTICE AND OPPORTUNITY 4,022
FOR HEARING, MAY ADJUST THE UNIVERSAL SERVICE RIDER BY THE 4,023
MINIMUM AMOUNT NECESSARY TO PROVIDE THE ADDITIONAL REVENUES. THE 4,024
COMMISSION SHALL NOT DECREASE THE UNIVERSAL SERVICE RIDER WITHOUT 4,025
THE APPROVAL OF THE DIRECTOR, AFTER CONSULTATION BY THE DIRECTOR 4,026
WITH THE ADVISORY BOARD.
(C) THE UNIVERSAL SERVICE RIDER ESTABLISHED UNDER DIVISION 4,028
(A) OR (B) OF THIS SECTION SHALL BE SET IN SUCH A MANNER SO AS 4,030
NOT TO SHIFT AMONG THE CUSTOMER CLASSES OF ELECTRIC DISTRIBUTION 4,031
UTILITIES THE COSTS OF FUNDING LOW-INCOME CUSTOMER ASSISTANCE 4,033
PROGRAMS.
Sec. 4928.53. (A) BEGINNING ON THE STARTING DATE OF 4,035
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,036
IS HEREBY AUTHORIZED TO ADMINISTER THE LOW-INCOME CUSTOMER 4,038
ASSISTANCE PROGRAMS. FOR THAT PURPOSE, THE TAX COMMISSIONER AND 4,039
THE PUBLIC UTILITIES COMMISSION SHALL COOPERATE WITH AND PROVIDE 4,040
SUCH ASSISTANCE AS THE DIRECTOR REQUIRES FOR ADMINISTRATION OF 4,041
THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE DEPARTMENT 4,042
SHALL CONSOLIDATE THE ADMINISTRATION OF AND COORDINATE THE 4,043
OPERATIONS OF THOSE PROGRAMS WITHIN THE DEPARTMENT TO PROVIDE, TO 4,044
THE MAXIMUM EXTENT POSSIBLE, FOR EFFICIENT PROGRAM ADMINISTRATION 4,045
AND A ONE-STOP APPLICATION AND ELIGIBILITY DETERMINATION PROCESS 4,046
AT THE LOCAL LEVEL FOR CONSUMERS.
(B)(1) NOT LATER THAN JUNE 30, 2000, THE DIRECTOR, IN 4,048
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, SHALL ADOPT 4,050
RULES TO CARRY OUT SECTIONS 4928.51 TO 4928.58 OF THE REVISED 4,052
CODE AND ENSURE THE EFFECTIVE AND EFFICIENT ADMINISTRATION AND 4,054
OPERATION OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE
RULES SHALL TAKE EFFECT ON THE STARTING DATE OF COMPETITIVE 4,055
RETAIL ELECTRIC SERVICE.
(2) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,058
DIVISION FOR THE OHIO ENERGY CREDIT PROGRAM SHALL BE SUBJECT TO 4,059
SUCH RULE-MAKING AUTHORITY AS IS CONFERRED ON THE DIRECTOR BY 4,060
SECTIONS 5117.01 TO 5117.12 OF THE REVISED CODE. 4,061
99
(3) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,063
DIVISION FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL 4,064
INCLUDE AUTHORITY TO ADOPT RULES PRESCRIBING CRITERIA FOR 4,065
CUSTOMER ELIGIBILITY AND POLICIES REGARDING PAYMENT ARRANGEMENTS 4,066
AND RESPONSIBILITIES, PROCEDURES FOR VERIFYING CUSTOMER 4,067
ELIGIBILITY, PROCEDURES FOR DISBURSING PUBLIC FUNDS TO SUPPLIERS 4,068
AND OTHERWISE ADMINISTERING FUNDS UNDER THE DIRECTOR'S 4,069
JURISDICTION, AND REQUIREMENTS AS TO TIMELY REMITTANCES OF 4,070
REVENUES DESCRIBED IN DIVISION (B) OF SECTION 4928.51 OF THE 4,071
REVISED CODE THE DIRECTOR'S AUTHORITY IN DIVISION (B)(3) OF THIS 4,072
SECTION EXCLUDES AUTHORITY TO PRESCRIBE SERVICE DISCONNECTION AND 4,074
CUSTOMER BILLING POLICIES AND PROCEDURES AND TO ADDRESS 4,075
COMPLAINTS AGAINST SUPPLIERS UNDER THE PERCENTAGE OF PAYMENT PLAN 4,076
PROGRAM, WHICH EXCLUDED AUTHORITY SHALL BE EXERCISED BY THE 4,077
PUBLIC UTILITIES COMMISSION, IN COORDINATION WITH THE DIRECTOR. 4,078
RULES INITIALLY ADOPTED BY THE DIRECTOR FOR THE PERCENTAGE OF 4,080
INCOME PAYMENT PLAN PROGRAM SHALL INCORPORATE THE ELIGIBILITY 4,081
CRITERIA AND PAYMENT ARRANGEMENT AND RESPONSIBILITY POLICIES SET 4,082
FORTH IN RULE 4901:1-18-04(B) OF THE OHIO ADMINISTRATIVE CODE IN 4,083
EFFECT ON THE EFFECTIVE DATE OF THIS SECTION. 4,084
Sec. 4928.54. BEGINNING ON THE STARTING DATE OF 4,086
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,087
MAY AGGREGATE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM CUSTOMERS 4,088
FOR THE PURPOSE OF COMPETITIVELY AUCTIONING THE SUPPLY OF 4,089
COMPETITIVE RETAIL ELECTRIC GENERATION SERVICE TO BIDDERS 4,090
CERTIFIED UNDER SECTION 4928.08 OF THE REVISED CODE AND FURTHER
QUALIFIED UNDER ELIGIBILITY CRITERIA THE DIRECTOR PRESCRIBES BY 4,092
RULE UNDER DIVISION (B) OF SECTION 4928.53 OF THE REVISED CODE 4,093
AFTER CONSULTATION WITH THE COMMISSION AND ELECTRIC LIGHT 4,094
COMPANIES REGARDING ANY SUCH RULE. THE OBJECTIVES OF THE AUCTION 4,095
SHALL BE TO PROVIDE RELIABLE RETAIL ELECTRIC GENERATION SERVICE 4,096
AT THE LOWEST COST TO THE CUSTOMERS, AND THE SOLE SELECTION 4,097
CRITERION FOR A WINNING BID SHALL BE LOWEST BID PRICE. THE RULES 4,098
ADOPTED BY THE DIRECTOR UNDER DIVISION (B) OF SECTION 4928.53 OF 4,099
100
THE REVISED CODE SHALL ENSURE A FAIR AND UNBIASED AUCTION PROCESS 4,100
AND THE PERFORMANCE OF ANY WINNING BIDDER.
Sec. 4928.55. (A) THERE IS HEREBY CREATED THE UNIVERSAL 4,103
SERVICE ADVISORY BOARD, CONSISTING OF FIFTEEN MEMBERS AS FOLLOWS: 4,104
THE DIRECTOR OF DEVELOPMENT, THE CHAIRPERSON OF THE PUBLIC
UTILITIES COMMISSION, AND THE CONSUMERS' COUNSEL, EACH SERVING 4,105
EX-OFFICIO AND REPRESENTED BY A DESIGNEE AT THE OFFICIAL'S 4,106
DISCRETION; TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES APPOINTED 4,107
BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, NEITHER OF THE 4,108
SAME POLITICAL PARTY, AND TWO MEMBERS OF THE SENATE APPOINTED BY 4,109
THE PRESIDENT OF THE SENATE, NEITHER OF THE SAME POLITICAL PARTY; 4,110
AND EIGHT MEMBERS APPOINTED BY THE GOVERNOR WITH THE ADVICE AND 4,111
CONSENT OF THE SENATE, CONSISTING OF ONE REPRESENTATIVE OF 4,112
SUPPLIERS OF COMPETITIVE RETAIL ELECTRIC SERVICE, ONE 4,113
REPRESENTATIVE OF THE RESIDENTIAL CLASS OF ELECTRIC UTILITY 4,114
CUSTOMERS, ONE REPRESENTATIVE OF THE INDUSTRIAL CLASS OF ELECTRIC 4,115
UTILITY CUSTOMERS, AND ONE REPRESENTATIVE OF THE COMMERCIAL CLASS 4,116
OF ELECTRIC UTILITY CUSTOMERS, ONE CUSTOMER RECEIVING ASSISTANCE 4,117
UNDER ONE OR MORE OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS, 4,118
TO REPRESENT CUSTOMERS ELIGIBLE FOR ANY SUCH ASSISTANCE, ONE 4,119
REPRESENTATIVE OF THE GENERAL PUBLIC, ONE REPRESENTATIVE OF LOCAL 4,120
IN-TAKE AGENCIES, AND ONE REPRESENTATIVE OF A COMMUNITY-BASED 4,121
ORGANIZATION SERVING LOW-INCOME CUSTOMERS. INITIAL APPOINTMENTS 4,122
SHALL BE MADE NOT LATER THAN JUNE 30, 2000. 4,123
(B) INITIAL TERMS OF THREE OF THE APPOINTED MEMBERS SHALL 4,125
END ON JUNE 30, 2003, AND INITIAL TERMS OF THE REMAINING THREE 4,127
APPOINTED MEMBERS SHALL END ON JUNE 30, 2004. THEREAFTER, TERMS 4,128
OF APPOINTED MEMBERS SHALL BE FOR THREE YEARS, WITH EACH TERM 4,129
ENDING ON THE SAME DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. 4,130
EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF THE MEMBER'S 4,132
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 4,133
APPOINTED. MEMBERS MAY BE REAPPOINTED. 4,134
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,136
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,137
101
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,138
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,139
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,140
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,141
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,142
HAS ELAPSED, WHICHEVER OCCURS FIRST.
(C) BOARD MEMBERS SHALL BE REIMBURSED FOR THEIR ACTUAL AND 4,144
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF BOARD DUTIES. 4,145
SUCH REIMBURSEMENTS CONSTITUTE ADMINISTRATIVE COSTS OF THE 4,146
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS FOR THE PURPOSE OF 4,147
DIVISION (A) OF SECTION 4928.51 OF THE REVISED CODE. 4,148
(D) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,150
AMONG ITS MEMBERS. ONLY BOARD MEMBERS APPOINTED BY THE GOVERNOR 4,151
WITH THE ADVICE AND CONSENT OF THE SENATE SHALL BE VOTING MEMBERS
OF THE BOARD; EACH SHALL HAVE ONE VOTE IN ALL DELIBERATIONS OF 4,152
THE BOARD. A MAJORITY OF THE VOTING MEMBERS CONSTITUTE A QUORUM. 4,153
(E) THE DUTIES OF THE ADVISORY BOARD SHALL BE TO ADVISE 4,155
THE DIRECTOR IN THE ADMINISTRATION OF THE UNIVERSAL SERVICE FUND 4,156
AND THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND ADVISE THE
DIRECTOR ON THE DIRECTOR'S RECOMMENDATION TO THE COMMISSION 4,157
REGARDING THE APPROPRIATE LEVEL OF THE UNIVERSAL SERVICE RIDER. 4,158
(F) THE ADVISORY BOARD IS NOT AN AGENCY, AS DEFINED IN 4,160
SECTION 101.82 OF THE REVISED CODE, FOR PURPOSES OF DIVISIONS (A) 4,161
AND (B) OF SECTION 101.84 OF THE REVISED CODE. 4,162
Sec. 4928.56. THE DIRECTOR OF DEVELOPMENT SHALL ESTABLISH 4,164
AN ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM TARGETED TO 4,165
HIGH-COST, HIGH-VOLUME USE STRUCTURES OCCUPIED BY CUSTOMERS 4,167
ELIGIBLE FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM, WITH 4,168
THE GOAL TO REDUCING THE ENERGY BILLS OF THE OCCUPANTS. 4,169
ACCEPTANCE OF ENERGY EFFICIENCY AND WEATHERIZATION SERVICES 4,170
PROVIDED BY THE PROGRAM SHALL BE A CONDITION FOR THE ELIGIBILITY 4,171
OF ANY SUCH CUSTOMER TO PARTICIPATE IN THE PERCENTAGE OF INCOME 4,172
PAYMENT PLAN PROGRAM. ANY DIFFERENCE BETWEEN UNIVERSAL SERVICE 4,173
FUND REVENUES UNDER SECTION 4928.51 OF THE REVISED CODE AND ANY
102
SAVINGS IN PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM COSTS AS A 4,175
RESULT OF COMPETITIVE AUCTIONING UNDER SECTION 4928.54 OF THE 4,176
REVISED CODE SHALL BE REINVESTED IN THE TARGETED ENERGY 4,177
EFFICIENCY AND WEATHERIZATION PROGRAM. IF THERE ARE NO SAVINGS, 4,178
EACH ELECTRIC UTILITY THAT COLLECTS REVENUES FROM ITS CUSTOMERS 4,179
TO FUND ENERGY EFFICIENCY PROGRAMS SHALL REMIT THOSE REVENUES TO 4,180
THE DIRECTOR PURSUANT TO RULES ADOPTED UNDER DIVISION (B) OF 4,181
SECTION 4928.53 OF THE REVISED CODE.
Sec. 4928.57. THE DIRECTOR OF DEVELOPMENT MAY ADOPT RULES 4,183
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE ESTABLISHING 4,185
AN EDUCATION PROGRAM FOR CONSUMERS ELIGIBLE TO PARTICIPATE IN THE 4,186
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE EDUCATION PROGRAM 4,187
SHALL PROVIDE INFORMATION TO CONSUMERS REGARDING ENERGY 4,189
EFFICIENCY AND ENERGY CONSERVATION.
Sec. 4928.58. ON AND AFTER THE STARTING DATE OF 4,191
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,192
SHALL PROVIDE A REPORT EVERY TWO YEARS UNTIL 2008 TO THE STANDING 4,193
COMMITTEES OF THE GENERAL ASSEMBLY THAT DEAL WITH PUBLIC UTILITY 4,195
MATTERS, REGARDING THE EFFECTIVENESS OF THE LOW-INCOME CUSTOMER
ASSISTANCE PROGRAMS AND THE CONSUMER EDUCATION PROGRAM, AND THE 4,197
EFFECTIVENESS OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,198
CREATED UNDER SECTIONS 4928.61 TO 4928.64 OF THE REVISED CODE. 4,199
Sec. 4928.61. (A) THERE IS HEREBY ESTABLISHED IN THE 4,201
STATE TREASURY AN ENERGY EFFICIENCY REVOLVING LOAN FUND, INTO 4,202
WHICH SHALL BE DEPOSITED ALL ENERGY EFFICIENCY REVENUES REMITTED 4,203
TO THE DIRECTOR OF DEVELOPMENT UNDER DIVISION (B) OF THIS 4,204
SECTION, FOR THE EXCLUSIVE PURPOSES OF FUNDING THE ENERGY 4,205
EFFICIENCY REVOLVING LOAN PROGRAM CREATED UNDER SECTION 4928.62 4,207
OF THE REVISED CODE AND PAYING THE PROGRAM'S ADMINISTRATIVE 4,208
COSTS. INTEREST ON THE FUND SHALL BE CREDITED TO THE FUND. 4,209
(B) ENERGY EFFICIENCY REVENUES SHALL INCLUDE ALL OF THE 4,211
FOLLOWING: 4,212
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,214
EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE OF A SURCHARGE 4,215
103
ON RETAIL ELECTRIC DISTRIBUTION SERVICE RATES AS SUCH RATES ARE 4,216
DETERMINED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO THIS 4,217
CHAPTER. THE AMOUNT OF THE SURCHARGE SHALL VARY BY CERTIFIED 4,218
TERRITORY, SHALL BE AN AMOUNT PER KILOWATT-HOUR AS DEFINED IN 4,219
SECTION 4909.161 OF THE REVISED CODE, AND SHALL EQUAL THE AMOUNT 4,220
IN THE UTILITY'S RATES IN EFFECT ON THE EFFECTIVE DATE OF THIS 4,221
SECTION THAT IS ATTRIBUTABLE TO THE UTILITY'S ENERGY EFFICIENCY 4,222
OR DEMAND-SIDE MANAGEMENT PROGRAMS. THE SURCHARGE SHALL BE 4,223
IMPOSED BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,224
ELECTRIC SERVICE AND SHALL TERMINATE AT THE END OF FIVE YEARS 4,225
FOLLOWING THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY 4,226
REVOLVING LOAN FUND REACHES ONE HUNDRED MILLION DOLLARS, 4,227
WHICHEVER IS FIRST. 4,228
(2) REVENUES FROM ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,230
LOAN REPAYMENTS AND PAYMENTS FROM ENERGY EFFICIENCY REVOLVING 4,231
LOAN PROGRAM LOAN COLLECTIONS PURSUANT TO SECTION 4928.62 OF THE 4,232
REVISED CODE;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,234
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,235
COOPERATIVE IN THIS STATE NOT EARLIER THAN THE STARTING DATE OF 4,236
COMPETITIVE RETAIL ELECTRIC SERVICE UPON THE UTILITY'S OR 4,237
COOPERATIVE'S DECISION TO PARTICIPATE IN THE ENERGY EFFICIENCY 4,238
REVOLVING LOAN PROGRAM. SUCH REMITTANCES ENTITLE THE CUSTOMERS 4,239
OF THE UTILITY OR COOPERATIVE TO RECEIVE BENEFITS FROM THE ENERGY 4,240
EFFICIENCY REVOLVING LOAN PROGRAM FOR THE TIME THE UTILITY OR 4,241
COOPERATIVE IS SUCH A PARTICIPANT. 4,242
(C) EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE SHALL 4,244
REMIT TO THE DIRECTOR ON A QUARTERLY BASIS THE REVENUES DESCRIBED 4,245
IN DIVISIONS (B)(1) AND (2) OF THIS SECTION. SUCH REMITTANCES 4,246
SHALL BEGIN WITH THE FIRST QUARTER FOLLOWING THE STARTING DATE OF 4,247
COMPETITIVE RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 4,249
OF THE REVISED CODE AND CONTINUE ONLY UNTIL THE END OF FIVE YEARS 4,250
FOLLOWING THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY 4,251
REVOLVING LOAN FUND REACHES ONE HUNDRED MILLION DOLLARS, 4,252
104
WHICHEVER IS FIRST.
Sec. 4928.62. (A) BEGINNING ON THE STARTING DATE OF 4,254
COMPETITIVE RETAIL ELECTRIC SERVICE, THERE IS HEREBY CREATED THE 4,255
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM, WHICH SHALL BE 4,256
ADMINISTERED BY THE DIRECTOR OF DEVELOPMENT. UNDER THE PROGRAM, 4,257
THE DIRECTOR MAY AUTHORIZE THE USE OF MONEYS IN THE ENERGY 4,258
EFFICIENCY REVOLVING LOAN FUND FOR FINANCIAL ASSISTANCE FOR 4,259
PROJECTS IN THIS STATE. THE ASSISTANCE SHALL BE DISTRIBUTED 4,260
AMONG THE CERTIFIED TERRITORIES OF ELECTRIC DISTRIBUTION 4,261
UTILITIES IN AMOUNTS PROPORTIONATE TO THE REMITTANCES OF THE 4,262
UTILITIES UNDER DIVISION (B)(1) OF SECTION 4928.61 OF THE REVISED 4,263
CODE. THE ASSISTANCE SHALL BE IN THE FORM OF LOANS AT BELOW 4,264
MARKET RATES, LOAN GUARANTEES FOR SUCH LOANS, AND LINKED DEPOSITS 4,265
FOR SUCH LOANS THROUGH APPROVED LENDING INSTITUTIONS. THE 4,266
DIRECTOR SHALL NOT AUTHORIZE FINANCIAL ASSISTANCE UNDER THE 4,267
PROGRAM UNLESS THE DIRECTOR FIRST DETERMINES ALL OF THE 4,268
FOLLOWING:
(1) THE PROJECT WILL INCLUDE AN INVESTMENT IN PRODUCTS, 4,270
TECHNOLOGIES, OR SERVICES FOR RESIDENTIAL, SMALL COMMERCIAL AND 4,271
SMALL INDUSTRIAL BUSINESS, LOCAL GOVERNMENT, EDUCATIONAL 4,272
INSTITUTION, NONPROFIT ENTITY, OR AGRICULTURAL CUSTOMERS OF AN 4,273
ELECTRIC DISTRIBUTION UTILITY IN THIS STATE OR A PARTICIPATING 4,274
MUNICIPAL ELECTRIC UTILITY OR ELECTRIC COOPERATIVE IN THIS STATE. 4,275
(2) THE PROJECT WILL IMPROVE ENERGY EFFICIENCY IN A COST 4,277
EFFICIENT MANNER BY USING BOTH THE MOST APPROPRIATE NATIONAL, 4,278
FEDERAL, OR OTHER STANDARDS FOR PRODUCTS AS DETERMINED BY THE 4,279
DIRECTOR, AND THE BEST PRACTICES FOR USE OF TECHNOLOGY, PRODUCTS, 4,280
OR SERVICES IN THE CONTEXT OF THE TOTAL FACILITY OR BUILDING. 4,281
(3) THE PROJECT WILL BENEFIT THE ECONOMIC AND 4,283
ENVIRONMENTAL WELFARE OF THE CITIZENS OF THIS STATE. 4,284
(4) THE RECEIPT OF FINANCIAL ASSISTANCE IS A MAJOR FACTOR 4,286
IN THE APPLICANT'S DECISION TO PROCEED WITH OR INVEST IN THE 4,287
PROJECT.
(B) IN CARRYING OUT SECTIONS 4928.61 TO 4928.65 OF THE 4,289
105
REVISED CODE, THE DIRECTOR MAY DO ALL OF THE FOLLOWING FOR THE 4,291
PURPOSE OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM: 4,292
(1) ACQUIRE IN THE NAME OF THE DIRECTOR ANY PROPERTY OF 4,294
ANY KIND OR CHARACTER IN ACCORDANCE WITH THIS SECTION, BY 4,295
PURCHASE, PURCHASE AT FORECLOSURE, OR EXCHANGE, ON SUCH TERMS AND 4,296
IN SUCH MANNER AS THE DIRECTOR CONSIDERS PROPER; 4,297
(2) MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS 4,299
NECESSARY OR INCIDENTAL TO THE PERFORMANCE OF THE DIRECTOR'S 4,300
DUTIES AND THE EXERCISE OF THE DIRECTOR'S POWERS UNDER THOSE 4,301
SECTIONS;
(3) EMPLOY OR ENTER INTO CONTRACTS WITH FINANCIAL 4,303
CONSULTANTS, MARKETING CONSULTANTS, CONSULTING ENGINEERS, 4,304
ARCHITECTS, MANAGERS, CONSTRUCTION EXPERTS, ATTORNEYS, TECHNICAL 4,305
MONITORS, ENERGY EVALUATORS, OR OTHER EMPLOYEES OR AGENTS AS THE 4,306
DIRECTOR CONSIDERS NECESSARY, AND SHALL FIX THEIR COMPENSATION; 4,307
(4) ADOPT RULES PRESCRIBING THE APPLICATION PROCEDURES FOR 4,309
FINANCIAL ASSISTANCE UNDER THE PROGRAM; THE TERMS AND CONDITIONS 4,310
OF ANY LOANS, LOAN GUARANTEES, LINKED DEPOSITS, AND CONTRACTS; 4,311
CRITERIA PERTAINING TO THE ELIGIBILITY OF PARTICIPATING LENDERS; 4,312
AND ANY OTHER MATTERS NECESSARY FOR THE IMPLEMENTATION OF THE 4,313
PROGRAM;
(5) DO ALL THINGS NECESSARY AND APPROPRIATE FOR THE 4,315
OPERATION OF THE PROGRAM. 4,316
(C) FINANCIAL STATEMENTS, FINANCIAL DATA, AND TRADE 4,318
SECRETS SUBMITTED TO OR RECEIVED BY THE DIRECTOR FROM AN 4,319
APPLICANT OR RECIPIENT OF FINANCIAL ASSISTANCE UNDER SECTIONS 4,320
4928.61 TO 4928.65 OF THE REVISED CODE, OR ANY INFORMATION TAKEN 4,321
FROM THOSE STATEMENTS, DATA, OR TRADE SECRETS FOR ANY PURPOSE, 4,322
ARE NOT PUBLIC RECORDS FOR THE PURPOSE OF SECTION 149.43 OF THE 4,323
REVISED CODE.
Sec. 4928.63. (A) THERE IS HEREBY CREATED THE ENERGY 4,325
EFFICIENCY REVOLVING LOAN PROGRAM ADVISORY BOARD, CONSISTING OF 4,326
SIXTEEN MEMBERS AS FOLLOWS: THE DIRECTOR OF DEVELOPMENT, THE 4,328
CHAIRPERSON OF THE PUBLIC UTILITIES COMMISSION, THE CONSUMERS'
106
COUNSEL, AND THE DIRECTOR OF THE AIR QUALITY DEVELOPMENT 4,329
AUTHORITY, EACH SERVING EX-OFFICIO AND REPRESENTED BY A DESIGNEE 4,330
AT THE OFFICIAL'S DISCRETION; TWO MEMBERS OF THE HOUSE OF 4,331
REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE OF 4,332
REPRESENTATIVES, NEITHER OF THE SAME POLITICAL PARTY, AND TWO 4,333
MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE SENATE, 4,334
NEITHER OF THE SAME POLITICAL PARTY; AND EIGHT REPRESENTATIVES 4,335
APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE 4,336
SENATE, CONSISTING OF ONE REPRESENTATIVE OF ENVIRONMENTAL 4,337
PROTECTION INTERESTS, ONE REPRESENTATIVE OF THE RESIDENTIAL CLASS 4,338
OF ELECTRIC UTILITY CUSTOMERS, ONE REPRESENTATIVE OF THE 4,339
INDUSTRIAL CLASS OF ELECTRIC UTILITY CUSTOMERS, AND ONE 4,340
REPRESENTATIVE OF THE COMMERCIAL CLASS OF ELECTRIC UTILITY 4,341
CUSTOMERS, ONE REPRESENTATIVE OF AGRICULTURAL OR RURAL CUSTOMERS 4,342
OF AN ELECTRIC UTILITY, ONE REPRESENTATIVE OF LENDING 4,343
INSTITUTIONS IN THIS STATE, ONE REPRESENTATIVE OF THE GENERAL 4,344
PUBLIC, AND ONE PERSON CONSIDERED AN EXPERT IN ENERGY EFFICIENCY 4,345
OR RENEWABLES TECHNOLOGY. INITIAL APPOINTMENTS SHALL BE MADE NOT 4,346
LATER THAN JUNE 30, 2000. 4,347
(B) INITIAL TERMS OF THREE OF THE APPOINTED MEMBERS SHALL 4,349
END ON JUNE 30, 2003, AND INITIAL TERMS OF THE REMAINING THREE 4,351
APPOINTED MEMBERS SHALL END ON JUNE 30, 2004. THEREAFTER, TERMS 4,352
OF APPOINTED MEMBERS SHALL BE FOR THREE YEARS, WITH EACH TERM
ENDING ON THE SAME DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. 4,354
EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF THE MEMBER'S 4,355
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 4,356
APPOINTED. MEMBERS MAY BE REAPPOINTED. 4,357
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,359
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,360
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,361
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,362
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,363
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,364
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,365
107
HAS ELAPSED, WHICHEVER OCCURS FIRST.
(C) BOARD MEMBERS SHALL BE REIMBURSED FOR THEIR ACTUAL AND 4,367
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF BOARD DUTIES. 4,368
SUCH REIMBURSEMENTS CONSTITUTE ADMINISTRATIVE COSTS OF THE ENERGY 4,369
EFFICIENCY REVOLVING LOAN PROGRAM FOR THE PURPOSE OF DIVISION (A) 4,370
OF SECTION 4928.61 OF THE REVISED CODE. 4,371
(D) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,373
AMONG ITS MEMBERS. ONLY APPOINTED MEMBERS SHALL BE VOTING 4,374
MEMBERS OF THE BOARD AND SHALL HAVE ONE VOTE IN ALL DELIBERATIONS 4,375
OF THE BOARD. A MAJORITY OF THE VOTING MEMBERS CONSTITUTE A 4,376
QUORUM.
(E) THE DUTIES OF THE ADVISORY BOARD SHALL BE TO ADVISE 4,378
THE DIRECTOR OF DEVELOPMENT ON THE ADMINISTRATION OF THE ENERGY 4,379
EFFICIENCY REVOLVING LOAN PROGRAM AND THE ENERGY EFFICIENCY
REVOLVING LOAN PROGRAM FUND UNDER SECTIONS 4928.61 TO 4928.64 OF 4,380
THE REVISED CODE.
(F) THE ADVISORY BOARD IS NOT AN AGENCY, AS DEFINED IN 4,382
SECTION 101.82 OF THE REVISED CODE, FOR PURPOSES OF DIVISIONS (A) 4,383
AND (B) OF SECTION 101.84 OF THE REVISED CODE. 4,384
Sec. 4928.64. THE DIRECTOR OF DEVELOPMENT AND THE ENERGY 4,386
EFFICIENCY REVOLVING LOAN FUND ADVISORY BOARD HAVE THE POWERS AND 4,387
DUTIES PROVIDED IN SECTIONS 4928.61 TO 4928.63 OF THE REVISED 4,388
CODE, IN ORDER TO PROMOTE THE WELFARE OF THE PEOPLE OF THIS 4,389
STATE, TO STABILIZE THE ECONOMY, TO ASSIST IN THE IMPROVEMENT AND
DEVELOPMENT WITHIN THIS STATE OF NOT-FOR-PROFIT ENTITY, 4,390
INDUSTRIAL, COMMERCIAL, DISTRIBUTION, RESIDENTIAL, AND RESEARCH 4,391
BUILDINGS AND ACTIVITIES REQUIRED FOR THE PEOPLE OF THIS STATE, 4,392
TO IMPROVE THE ECONOMIC WELFARE OF THE PEOPLE OF THIS STATE, AND 4,393
ALSO TO ASSIST IN THE IMPROVEMENT OF AIR, WATER, OR THERMAL 4,394
POLLUTION CONTROL FACILITIES AND SOLID WASTE DISPOSAL FACILITIES. 4,395
IT IS HEREBY DETERMINED THAT THE ACCOMPLISHMENT OF THOSE PURPOSES 4,396
IS ESSENTIAL SO THAT THE PEOPLE OF THIS STATE MAY MAINTAIN THEIR 4,397
PRESENT HIGH STANDARDS IN COMPARISON WITH THE PEOPLE OF OTHER 4,398
STATES AND SO THAT OPPORTUNITIES FOR IMPROVING THE ECONOMIC 4,399
108
WELFARE OF THE PEOPLE OF THIS STATE, FOR IMPROVING THE HOUSING OF 4,400
RESIDENTS OF THIS STATE, AND FOR FAVORABLE MARKETS FOR THE 4,401
PRODUCTS OF THIS STATE'S NATURAL RESOURCES, AGRICULTURE, AND 4,402
MANUFACTURING SHALL BE IMPROVED; AND THAT IT IS NECESSARY FOR 4,403
THIS STATE TO ESTABLISH THE PROGRAM AUTHORIZED PURSUANT TO 4,404
SECTIONS 4928.61 TO 4928.63 OF THE REVISED CODE, TO ESTABLISH THE 4,405
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM AND PROGRAM FUND AND THE 4,406
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM ADVISORY BOARD, AND TO 4,407
VEST THE DIRECTOR AND THE BOARD WITH THE POWERS AND DUTIES 4,408
PROVIDED IN SECTIONS 4928.61 TO 4928.63 OF THE REVISED CODE.
Sec. 4933.33. Annually, each electric light company shall 4,417
cause to appear on each customer bill, or shall distribute to 4,418
each of its customers, the following statement: 4,419
"Under state law, the amount you are being billed includes: 4,421
(1) Gross receipts KILOWATT-HOUR taxes that have been in 4,423
effect since 1969 2001 and are currently at $........%. (The 4,426
current total percentage DOLLAR figure of the total gross 4,427
receipts KILOWATT-HOUR taxes levied in Chapter 5727. BY SECTION 4,429
5727.81 of the Revised Code and any other section of law shall be 4,431
placed in the blank); and
(2) Assessments to assist in the support of the operations 4,433
of the PUCO and the office of the consumers' counsel that have 4,434
been in effect since 1912 and 1977, respectively." 4,435
Nothing in this section shall be construed to mean either 4,437
that an electric light company operated not for profit or one 4,438
that is owned or operated by a municipal corporation is subject 4,439
to this section, or that an electric light company subject to 4,440
this section may not cause such appearance or distribute such 4,441
statement on a more frequent basis. 4,442
Sec. 4933.81. As used in sections 4933.81 to 4933.90 of 4,451
the Revised Code: 4,452
(A) "Electric supplier" means any electric light company 4,454
as defined in section 4905.03 of the Revised Code, including 4,455
electric light companies organized as nonprofit corporations, but 4,456
109
not including a municipal corporation CORPORATIONS or other unit 4,458
UNITS of local government that provides PROVIDE electric service. 4,459
(B) "Adequate facilities" means distribution lines or 4,461
facilities having sufficient capacity to meet the maximum 4,462
estimated electric service requirements of its existing customers 4,463
and of any new customer occurring during the year following the 4,464
commencement of permanent electric service, and to assure all 4,465
such customers of reasonable continuity and quality of service. 4,466
Distribution facilities and lines of an electric supplier shall 4,467
be considered "adequate facilities" if such supplier offers to 4,468
undertake to make its distribution facilities and lines meet such 4,469
service requirements and can, in the determination of the public 4,470
utilities commission, CAN do so within a reasonable time. 4,471
(C) "Distribution line" means any electric line having a 4,473
design voltage below thirty-five thousand volts phase to phase 4,474
which THAT is being or has been used primarily to provide 4,475
electric service directly to electric load centers by the owner 4,476
of such line. 4,477
(D) "Existing distribution line" means any distribution 4,479
line of an electric supplier which was in existence on January 1, 4,480
1977, or under constructon CONSTRUCTION on such THAT date. 4,482
(E) "Electric load center" means all the 4,484
electric-consuming facilities of any type or character owned, 4,485
occupied, controlled, or used by a person at a single location, 4,486
which facilities have been, are, or will be connected to and 4,487
served at a metered point of delivery and to which electric 4,488
service has been, is, or will be rendered. 4,489
(F) "Electric service" means retail electric service 4,491
furnished to an electric load center for ultimate consumption and 4,492
does not include, BUT EXCLUDES furnishing electric power or 4,494
energy at wholesale for resale. IN THE CASE OF A FOR-PROFIT 4,495
ELECTRIC SUPPLIER AND BEGINNING ON THE STARTING DATE OF 4,497
COMPETITIVE RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 4,498
OF THE REVISED CODE, "ELECTRIC SERVICE" ALSO EXCLUDES A 4,499
110
COMPETITIVE RETAIL ELECTRIC SERVICE. IN THE CASE OF A 4,500
NOT-FOR-PROFIT ELECTRIC SUPPLIER AND BEGINNING ON THAT STARTING 4,501
DATE, "ELECTRIC SERVICE" ALSO EXCLUDES ANY SERVICE COMPONENT OF A
COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS SPECIFIED IN AN 4,503
IRREVOCABLE FILING THE ELECTRIC SUPPLIER MAKES WITH THE PUBLIC 4,504
UTILITIES COMMISSION FOR INFORMATIONAL PURPOSES ONLY TO ELIMINATE 4,505
PERMANENTLY ITS CERTIFIED TERRITORY UNDER SECTIONS 4933.81 TO 4,506
4933.90 OF THE REVISED CODE AS TO THAT SERVICE COMPONENT. THE 4,507
FILING SHALL SPECIFY THE DATE ON WHICH SUCH TERRITORY IS SO 4,508
ELIMINATED. NOTWITHSTANDING DIVISION (B) OF SECTION 4928.01 OF 4,509
THE REVISED CODE, SUCH A SERVICE COMPONENT MAY INCLUDE RETAIL 4,510
ANCILLARY, METERING, OR BILLING AND COLLECTION SERVICE 4,511
IRRESPECTIVE OF WHETHER THAT SERVICE COMPONENT HAS OR HAS NOT
BEEN DECLARED COMPETITIVE UNDER SECTION 4928.04 OF THE REVISED 4,512
CODE. UPON RECEIPT OF THE FILING BY THE COMMISSION, THE 4,513
NOT-FOR-PROFIT ELECTRIC SUPPLIER'S CERTIFIED TERRITORY SHALL BE 4,514
ELIMINATED PERMANENTLY AS TO THE SERVICE COMPONENT SPECIFIED IN 4,515
THE FILING AS OF THE DATE SPECIFIED IN THE FILING. NOTHING IN 4,516
THIS DIVISION AUTHORIZES COMMISSION SUPERVISION OR REGULATION OF 4,517
THE PROVISION OF RETAIL ELECTRIC SERVICE BY A NOT-FOR-PROFIT 4,518
ELECTRIC SUPPLIER. AS USED IN THIS DIVISION, "COMPETITIVE RETAIL 4,519
ELECTRIC SERVICE" AND "RETAIL ELECTRIC SERVICE" HAVE THE SAME 4,520
MEANINGS AS IN SECTION 4928.01 OF THE REVISED CODE. 4,521
(G) "Certified territory" means a geographical area the 4,523
boundaries of which have been established pursuant to sections 4,524
4933.81 to 4933.90 of the Revised Code within which an electric 4,525
supplier is authorized and required to provide electric service. 4,526
(H) "Other unit of local government" means any 4,528
governmental unit or body that may come into existence after the 4,529
effective date of this section with powers and authority similar 4,530
to those of a municipal corporation, or which THAT is created to 4,531
replace or exercise the relevant powers of any one or more 4,532
municipal corporations. 4,533
Sec. 4935.04. (A) As used in this chapter: 4,542
111
(1) "Major utility facility" means: 4,544
(a) An electric generating plant and associated facilities 4,546
designed for, or capable of, operation at a capacity of fifty 4,547
megawatts or more; 4,548
(b) An electric transmission line and associated 4,550
facilities of a design capacity of one hundred twenty-five 4,551
kilovolts or more; 4,552
(c)(b) A gas or natural gas transmission line and 4,554
associated facilities designed for, or capable of, transporting 4,555
gas or natural gas at pressures in excess of one hundred 4,556
twenty-five pounds per square inch. 4,557
"Major utility facility" does not include electric, gas, or 4,559
natural gas distributing lines and gas or natural gas gathering 4,560
lines and associated facilities as defined by the public 4,561
utilities commission; facilities owned or operated by industrial 4,563
firms, persons, or institutions that produce or transmit gas, OR 4,564
natural gas, or electricity primarily for their own use or as a 4,566
byproduct of their operations; gas or natural gas transmission 4,567
lines and associated facilities over which an agency of the 4,568
United States has certificate jurisdiction; facilities owned or 4,569
operated by a person furnishing gas or natural gas directly to
fifteen thousand or fewer customers within this state. 4,570
(2) "Person" has the meaning set forth in section 4906.01 4,572
of the Revised Code. 4,573
(B) Each person owning or operating a gas or natural gas 4,575
transmission line and associated facilities within this state 4,576
over which an agency of the United States has certificate 4,577
jurisdiction shall furnish to the commission a copy of the energy 4,578
information filed by the person with that agency of the United 4,580
States.
(C) Each person owning or operating a major utility 4,582
facility within this state, or furnishing gas, natural gas, or 4,584
electricity directly to more than fifteen thousand customers 4,586
within this state annually shall furnish a report to the 4,587
112
commission for its review. The report shall be termed the 4,589
long-term forecast report and shall contain: 4,590
(1) A year-by-year, ten-year forecast of annual energy 4,592
demand, peak load, reserves, and a general description of the 4,593
resource plan to meet demand; 4,594
(2) A range of projected loads during the period; 4,596
(3) A description of major utility facilities planned to 4,598
be added or taken out of service in the next ten years, including 4,599
prospective sites for generating plants and, to the extent the 4,600
information is available, PROSPECTIVE SITES for transmission line 4,601
locations; 4,602
(4) For gas and natural gas, a projection of anticipated 4,604
supply, supply prices, and sources of supply over the forecast 4,605
period; 4,606
(5) For electricity, a range of projected loads and a 4,608
projection of annual energy demand, anticipated generating 4,609
capacity, and system seasonal peak demand for a twenty-year 4,610
period; 4,611
(6) A description of proposed changes in the transmission 4,613
system planned for the next five years; 4,614
(7)(6) A month-by-month forecast of both energy demand and 4,616
peak load for electric utilities, and gas sendout for gas and 4,617
natural gas utilities, for the next two years. The report shall 4,618
describe the major utility facilities that, in the judgment of 4,620
such person, will be required to supply system demands during the 4,621
forecast period. The report from a gas or natural gas utility 4,622
shall cover the ten- and five-year periods next succeeding the 4,623
date of the report, and the report from an electric utility shall 4,624
cover the twenty-, ten-, and five-year periods next succeeding 4,625
the date of the report. Each report shall be made available to 4,626
the public and furnished upon request to municipal corporations 4,627
and governmental agencies charged with the duty of protecting the 4,628
environment or of planning land use. The report shall be in such 4,629
form and shall contain such information as may be prescribed by 4,630
113
the commission. 4,631
Each person not owning or operating a major utility 4,633
facility within this state and serving fifteen thousand or fewer 4,635
gas, OR natural gas, or electric customers within this state 4,637
shall furnish such information as the commission may require 4,638
REQUIRES.
(D) The commission shall: 4,640
(1) Review and comment on the reports filed under division 4,642
(C) of this section, and make the information contained therein 4,643
IN THE REPORTS readily available to the public and other 4,645
interested government agencies; 4,646
(2) Compile and publish each year the general locations of 4,648
the proposed power plant sites and general locations of proposed 4,649
and existing transmission line routes within its jurisdiction as 4,650
identified in the reports filed under division (C) of this 4,651
section, identifying the general location of such sites and 4,652
routes and the approximate year when construction is expected to 4,653
commence, and to make such information readily available to the 4,654
public, to each newspaper of daily or weekly circulation within 4,655
the area affected by the proposed site and route, and to 4,656
interested federal, state, and local agencies; 4,657
(3) Hold a public hearing: 4,659
(a) On the first long-term forecast report filed after 4,661
January 11, 1983; 4,662
(b) At least once in every five years, on the latest 4,664
report furnished by any person subject to this section; 4,665
(c) On the latest report furnished by any person subject 4,667
to this section if the report contains a substantial change from 4,668
the preceding report furnished by that person. "Substantial 4,669
change" includes, but is not limited to: 4,670
(i) The addition or cancellation of a generating facility 4,672
of fifty megawatts or more in the report furnished pursuant to 4,673
division (C) of this section; 4,674
(ii) A change in forecasted peak loads or energy 4,676
114
consumption over the forecast period of greater than an average 4,677
of one-half of one per cent per year; 4,678
(iii)(ii) Demonstration of good cause to the commission by 4,680
an interested party. 4,681
The commission shall fix a time for the hearing, which 4,683
shall be not later than ninety days after the report is filed, 4,684
and publish notice of the date, time of day, and location of the 4,685
hearing in a newspaper of general circulation in each county in 4,686
which the person furnishing the report has or intends to locate a 4,687
major utility facility and will provide service during the period 4,688
covered by the report. The notice shall be published not less 4,689
than fifteen nor more than thirty days before the hearing and 4,690
shall state the matters to be considered. 4,691
Absent a showing of good cause, the commission shall not 4,693
hold hearings under division (D)(3) of this section with respect 4,694
to persons who, as the primary purpose of their business, furnish 4,695
gas, OR natural gas, or electricity directly to fifteen thousand 4,697
or fewer customers within this state solely for direct 4,698
consumption by those customers. 4,699
(4) Require such information from persons subject to its 4,701
jurisdiction as necessary to assist in the conduct of hearings 4,702
and any investigation or studies it may undertake; 4,703
(5) Conduct any studies or investigations that are 4,705
necessary or appropriate to carry out its responsibilities under 4,706
this section. 4,707
(E)(1) The scope of the hearing held under division (D)(3) 4,709
of this section shall be limited to issues relating to 4,710
forecasting. The power siting board, the office of consumers' 4,711
counsel, and all other persons having an interest in the 4,712
proceedings shall be afforded the opportunity to be heard and to 4,713
be represented by counsel. The commission may adjourn the 4,714
hearing from time to time. 4,715
(2) The hearing shall include, but not be limited to, a 4,717
review of: 4,718
115
(a) The projected loads and energy requirements for each 4,720
year of the period; 4,721
(b) The estimated installed capacity and supplies to meet 4,723
the projected load requirements. 4,724
(F) Based upon the report furnished pursuant to division 4,726
(C) of this section and the hearing record, the commission, 4,727
within ninety days from the close of the record in the hearing, 4,728
shall determine if: 4,729
(1) All information relating to current activities, 4,731
facilities agreements, and published energy policies of the state 4,732
has been completely and accurately represented; 4,733
(2) The load requirements are based on substantially 4,735
accurate historical information and adequate methodology; 4,736
(3) The forecasting methods consider the relationships 4,738
between price and energy consumption; 4,739
(4) The report identifies and projects reductions in 4,741
energy demands due to energy conservation measures in the 4,742
industrial, commercial, residential, transportation, and energy 4,743
production sectors in the service area; 4,744
(5) Utility company forecasts of loads and resources are 4,746
reasonable in relation to population growth estimates made by 4,747
state and federal agencies, transportation, and economic 4,748
development plans and forecasts, and make recommendations where 4,749
possible for necessary and reasonable alternatives to meet 4,750
forecasted electric power demand; 4,751
(6) The report considers plans for expansion of the 4,753
regional power grid and the planned facilities of other utilities 4,754
in the state; 4,755
(7) All assumptions made in the forecast are reasonable 4,757
and adequately documented. 4,758
(G) The commission shall adopt rules under section 111.15 4,760
of the Revised Code to establish criteria for evaluating the 4,761
long-term forecasts of needs for gas and electric power 4,762
TRANSMISSION SERVICE, to conduct hearings held under this 4,763
116
section, to establish reasonable fees to defray the direct cost 4,765
of the hearings and the review process, and such other rules as 4,766
are necessary and convenient to implement this section. 4,767
(H) The hearing record produced under this section and the 4,769
determinations of the commission shall be introduced into 4,770
evidence and shall be considered in determining the basis of need 4,771
for power siting board deliberations under division (A)(1) of 4,772
section 4906.10 of the Revised Code. The hearing record produced 4,773
under this section shall be introduced into evidence and shall be 4,774
considered by the public utilities commission in its initiation 4,775
of programs, examinations, AND findings, investigations, and 4,776
remedies under section 4905.70 of the Revised Code, and shall be 4,778
considered in their THE COMMISSION'S determinations with respect 4,779
to the establishment of just and reasonable rates under section 4,781
4909.15 of the Revised Code and financing utility facilities and 4,782
authorizing issuance of all securities under sections 4905.40, 4,783
4905.401, 4905.41, and 4905.42 of the Revised Code. The forecast 4,784
findings also shall serve as the basis for all other energy 4,786
planning and development activities of the state government where 4,787
electric and gas data are required. 4,788
(I)(1) No court other than the supreme court shall have 4,790
power to review, suspend, or delay any determination made by the 4,791
commission under this section, or enjoin, restrain, or interfere 4,792
with the commission in the performance of official duties. A 4,793
writ of mandamus shall not be issued against the commission by 4,794
any court other than the supreme court. 4,795
(2) A final determination made by the commission shall be 4,797
reversed, vacated, or modified by the supreme court on appeal, 4,798
if, upon consideration of the record, such court is of the 4,799
opinion that such determination was unreasonable or unlawful. 4,800
The proceeding to obtain such reversal, vacation, or 4,802
modification shall be by notice of appeal, filed with the 4,803
commission by any party to the proceeding before it, against the 4,804
commission, setting forth the determination appealed from and 4,805
117
errors complained of. The notice of appeal shall be served, 4,806
unless waived, upon the commission by leaving a copy at the 4,807
office of the chairman CHAIRPERSON of the commission at Columbus. 4,809
The court may permit an interested party to intervene by 4,810
cross-appeal.
(3) No proceeding to reverse, vacate, or modify a 4,812
determination of the commission is commenced unless the notice of 4,813
appeal is filed within sixty days after the date of the 4,814
determination. 4,815
Sec. 5117.01. (A) As used in this chapter SECTIONS 4,824
5117.01 TO 5117.12 OF THE REVISED CODE: 4,825
(1)(A) "Credit" means the credit on utility heating bills 4,827
granted under division (A) of section 5117.09 of the Revised 4,828
Code. 4,829
(2)(B) "Current monthly bill" means the amount charged for 4,831
energy consumed in the most recent monthly billing period and 4,832
does not include any past due balance. 4,833
(3)(C) "Current total income" means the adjusted gross 4,835
income of the head of household and the person's spouse for the 4,837
six-month period beginning the first day of January and ending 4,838
the thirtieth day of June of the year in which an application is 4,839
made, as determined under the "Internal Revenue Code of 1954," 4,840
68A Stat. 3, 26 U.S.C. 1, as amended, minus the amount of 4,841
disability benefits included in adjusted gross income but not to 4,842
exceed twenty-six hundred dollars, plus old age and survivors 4,843
benefits received pursuant to the "Social Security Act," 4,844
retirement, pension, annuity, or other retirement payments or 4,845
benefits not included in federal adjusted gross income; payments 4,846
received pursuant to the "Railroad Retirement Act," 50 Stat. 307, 4,847
45 U.S.C. 228, and interest on federal, state, and local 4,848
government obligations. Disability benefits paid by the veterans 4,849
administration or a branch of the armed forces of the United 4,850
States on account of an injury or disability are not included in 4,851
current total income. 4,852
118
(4)(D) "Energy company" means every retail propane dealer 4,854
that distributes propane by pipeline, and every electric light, 4,855
rural electric, gas, or natural gas company. 4,856
(5)(E) "Energy dealer" means every retail dealer of fuel 4,858
oil, propane, coal, wood, and kerosene. 4,859
(6)(F) "Head of household" means a person who occupies a 4,861
household as the person's homestead and who is financially 4,862
responsible for its other occupants, if any, or the spouse of 4,864
such a person if both occupy the same household. No person is a 4,865
head of household if the person occupies a household for the 4,866
taxable year prior to the year in which an application is filed 4,868
and was claimed as a dependent on the federal income tax return 4,869
of another occupant of the same household and was not the 4,870
taxpayer's spouse or if the person could have been claimed if 4,872
such a return had been filed for such year and was not the other 4,873
occupant's spouse.
(7)(G) "Household" means any dwelling unit, including a 4,875
unit in a multiple unit dwelling, a manufactured home, or a 4,877
mobile home, to which utility heating services or energy 4,879
commodities are provided.
(8)(H) "Payment" means the one hundred twenty-five-dollar 4,881
payment provided under division (A) of section 5117.10 of the 4,882
Revised Code. 4,883
(9)(I) "Permanently and totally disabled" refers to a 4,885
person who has, on the first day of July of the year an 4,886
application is made, some impairment in body or mind that makes 4,887
the person unfit to work at any substantially remunerative 4,889
employment that the person would otherwise be reasonably able to 4,891
perform and that will, with reasonable probability, continue for 4,892
an indefinite period of at least twelve months without any 4,893
present indication of recovery therefrom, or who has been 4,894
certified as permanently and totally disabled by a state or 4,895
federal agency having the function of so classifying persons. 4,896
(10)(J) "Sixty-five years of age or older" refers to a 4,898
119
person who has attained age sixty-four prior to the first day of 4,899
January of the year of application for reduction in utility 4,900
charges.
(11)(K) "Total income" means the adjusted gross income of 4,902
the head of household and the person's spouse for the year 4,904
preceding the year in which an application is made, as determined 4,905
under the "Internal Revenue Code of 1954," 68A Stat. 3, 26 U.S.C. 4,906
1, as amended, minus the amount of disability benefits included 4,907
in adjusted gross income but not to exceed fifty-two hundred 4,908
dollars, plus old age and survivors benefits received pursuant to 4,909
the "Social Security Act," retirement, pension, annuity, or other 4,910
retirement payments or benefits not included in federal adjusted 4,911
gross income; payments received pursuant to the "Railroad 4,912
Retirement Act," 50 Stat. 307, 45 U.S.C. 228; and interest on 4,913
federal, state, and local government obligations. Disability 4,914
benefits paid by the veteran's administration or a branch of the 4,915
armed forces of the United States on account of an injury or 4,916
disability shall not be included in total income. 4,917
(B) As used in sections 5117.01 to 5117.12 of the Revised 4,919
Code: 4,920
(1) "Applicant" means any person who has submitted an 4,922
application under division (C) of section 5117.03 of the Revised 4,923
Code. 4,924
(2) "Application" means the application in section 5117.03 4,926
of the Revised Code. 4,927
(3) "Program" means the Ohio energy credit program 4,929
established under sections 5117.01 to 5117.12 of the Revised 4,930
Code. 4,931
(4)(L) "Purchased power costs" means charges for the costs 4,933
of power purchased by an electric light company under Chapters 4,934
4905. and 4909. of the Revised Code and includes charges 4,935
resulting from the exchange of electric power. 4,936
Sec. 5117.02. (A) The DIRECTOR OF DEVELOPMENT, TO THE 4,945
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, shall 4,946
120
adopt rules, or amendments and rescissions of rules, PURSUANT TO 4,947
SECTION 4928.52 OF THE REVISED CODE, for the administration of 4,948
THE OHIO ENERGY CREDIT PROGRAM UNDER sections 5117.01 to 5117.12 4,950
of the Revised Code.
(B) As a means of efficiently administering the program 4,952
established by sections 5117.01 to 5117.12 of the Revised Code, 4,953
the tax commissioner DIRECTOR may extend, by as much as a total 4,954
of thirty days, any date specified in such sections for the 4,956
performance of a particular action by an individual or an 4,957
officer.
(C)(1) Except as provided in division (C)(2) of this 4,959
section, the DIRECTOR, TO THE EXTENT NECESSARY IN CONSULTATION 4,960
WITH THE tax commissioner, shall ADOPT, in accordance with 4,961
divisions (A), (B), (C), (D), (E), and (H) of section 119.03 and 4,962
section 119.04 of the Revised Code, adopt whatever rules, or 4,963
amendments or rescissions of rules are required by or are 4,964
otherwise necessary to implement sections 5117.01 to 5117.12 of 4,965
the Revised Code. A rule, amendment, or rescission adopted under 4,966
this division is not exempt from the hearing requirements of 4,967
section 119.03 of the Revised Code pursuant to division (G) of 4,968
that section, or subject to section 111.15 or 5703.14 of the 4,969
Revised Code. 4,970
(2) If an emergency necessitates the immediate adoption of 4,972
a rule, or the immediate adoption of an amendment or rescission 4,973
of a rule that is required by or otherwise necessary to implement 4,974
sections 5117.01 to 5117.12 of the Revised Code, the DIRECTOR, TO 4,975
THE EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner 4,977
may, immediately MAY adopt the emergency rule, amendment, or 4,979
rescission without complying with division (A), (B), (C), (D),
(E), or (H) of section 119.03 of the Revised Code so long as he 4,980
THE DIRECTOR states the reasons for the necessity in the 4,981
emergency rule, amendment, or rescission. The emergency rule, 4,982
amendment, or rescission is effective on the day copies of the 4,983
emergency rule, amendment, or rescission, in final form and in 4,984
121
compliance with division (A)(2) of section 119.04 of the Revised 4,985
Code, are filed as follows: two certified copies of the 4,986
emergency rule, amendment, or rescission shall be filed with both 4,987
the secretary of state and the director of the legislative 4,988
service commission, and one certified copy of the emergency rule, 4,989
amendment, or rescission shall be filed with the joint committee 4,990
on agency rule review. If all copies are not filed on the same 4,991
day, the emergency rule, amendment, or rescission is effective on 4,992
the day on which the latest filing is made. An emergency rule, 4,993
amendment, or rescission adopted under this division is not 4,994
subject to section 111.15, division (F) of section 119.03, or 4,995
section 5703.14 of the Revised Code. An emergency rule, 4,996
amendment, or rescission adopted under this division continues in 4,997
effect until amended or rescinded by the DIRECTOR, TO THE EXTENT 4,998
NECESSARY IN CONSULTATION WITH THE tax commissioner, in 4,999
accordance with division (C)(1) or (2) of this section, except 5,000
that the rescission of an emergency rescission does not revive 5,001
the rule rescinded. 5,002
(D) Except where otherwise provided, each form, 5,004
application, notice, and the like used in fulfilling the 5,005
requirements of sections 5117.01 to 5117.12 of the Revised Code 5,006
shall be approved by the DIRECTOR, TO THE EXTENT NECESSARY IN 5,007
CONSULTATION WITH THE tax commissioner. 5,008
Sec. 5117.03. (A)(1) The DIRECTOR OF DEVELOPMENT, TO THE 5,017
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, shall 5,018
prescribe the form of THE application FOR ASSISTANCE UNDER THE 5,019
OHIO ENERGY CREDIT PROGRAM. The application shall be in the form 5,020
of a signed statement, shall require no more information than is 5,021
necessary to establish an applicant's eligibility under section 5,022
5117.07 of the Revised Code, and shall be clear and concise in 5,023
its format, requirements, and instructions. The form shall 5,024
request the following information: 5,025
(a) The name and address of the applicant; 5,027
(b) The type of energy or commodity that is the source of 5,029
122
the heat produced by the primary heating system in the residence 5,030
of the applicant; 5,031
(c) The name of the energy company or energy dealer that 5,033
supplies the energy or commodity that is the source of the heat 5,034
produced by the primary heating system in the residence of the 5,035
applicant and, if the applicant receives his THE APPLICANT'S 5,036
energy from a company, the applicant's account number; 5,037
(d) The applicant's total income or current total income; 5,039
(e) In the case of an application based upon physical 5,041
disability, a certification signed by a physician, in the case of 5,042
an application based upon mental disability, a certification 5,043
signed by a physician or psychologist, or in the case of either 5,044
such disability, a certification from a state or federal agency 5,045
having the function of so classifying persons; 5,046
(f) The age of the applicant; 5,048
(g) Any other information required to make eligibility 5,050
determinations under section 5117.07 of the Revised Code. 5,051
Each form shall contain a statement that signing such 5,053
application constitutes a delegation of authority by the 5,054
applicant to the commissioner to examine any financial records 5,055
that relate to income earned by the applicant as stated on the 5,056
application for the purpose of determining eligibility under 5,057
section 5117.07 of the Revised Code and possible violation of 5,058
division (B) of section 5117.11 of the Revised Code. 5,059
(2) The tax commissioner shall mail or otherwise provide 5,061
an application form to each person requesting such form. 5,062
(B)(1) The DIRECTOR, TO THE EXTENT NECESSARY IN 5,064
CONSULTATION WITH THE tax commissioner, shall devise and 5,065
prescribe an application renewal form on which the head of 5,066
household may indicate by check mark that he THE HEAD OF 5,067
HOUSEHOLD received a credit or payment for the preceding heating 5,069
season. Application renewal forms shall seek from persons 5,070
applying on such basis a certification by the applicant attesting 5,071
to his THE APPLICANT'S permanent and total disability and the 5,072
123
name of a physician, psychologist, or government agency willing 5,073
to provide an additional certification if so requested under 5,074
division (D) of section 5117.07 of the Revised Code. Such forms 5,075
shall also include such other information as the DIRECTOR, TO THE 5,076
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, 5,077
requires and shall be clear and concise in format, requirements, 5,078
and instructions. 5,079
(2) On or before the fifteenth day of June, the tax 5,081
commissioner DIRECTOR shall mail or otherwise provide an 5,082
application renewal form to each head of household who received a 5,084
credit or payment during the preceding heating season. 5,085
(3) Application renewal forms shall be reviewed and 5,087
disposed of in the same manner provided for application forms in 5,088
section 5117.07 of the Revised Code. 5,089
(C) Applications and application renewal forms shall be 5,091
returned to the tax commissioner DIRECTOR no later than the first 5,093
day of September. If an applicant is determined eligible for a 5,094
credit under division (A)(1) of section 5117.07 of the Revised 5,095
Code and the applicant's account number is not provided on the 5,096
application form pursuant to division (A)(1)(c) of this section, 5,097
the tax commissioner DIRECTOR shall make a good faith effort to 5,098
acquire such number before certifying the applicant's eligibility 5,100
to an energy company under section 5117.08 of the Revised Code. 5,101
The tax commissioner DIRECTOR may request an energy company to 5,102
assist in efforts to acquire an applicant's account number and, 5,104
if so requested, a company shall cooperate in such efforts. 5,105
Sec. 5117.04. (A) Every energy company and energy dealer 5,114
shall, at least once during June, and once during August, SHALL 5,115
begin to distribute to each of its residential heating customers 5,117
a plain and clear notice, printed in ten-point type on a sheet or 5,118
card on which no other words appear on either the front or back, 5,119
that states the right of qualified residential customers to 5,120
receive a credit or payment UNDER THE OHIO ENERGY CREDIT PROGRAM 5,122
and that explains in detail, in a fashion reasonably calculated 5,123
124
to inform, the relevant mechanisms established under sections 5,124
5117.01 to 5117.12 of the Revised Code to effectuate that right. 5,125
The notice shall also contain, in ten-point boldface type, the 5,126
following statement: "The right of eligible customers to receive 5,127
a credit against utility bills or a payment for energy bills is 5,128
provided in legislation (House Bill 657) passed by the General 5,129
Assembly and signed by the Governor."
(B) The tax commissioner DIRECTOR OF DEVELOPMENT shall 5,131
cause to be printed notices of the type specified in division (A) 5,133
of this section and application forms in sufficient quantity for 5,134
distribution. The tax commissioner DIRECTOR shall maintain a 5,135
system for distributing application forms to appropriate public 5,137
locations. The distribution system shall be designed to make 5,138
application forms available to as many qualified persons as 5,139
possible.
(C) The tax commissioner DIRECTOR shall arrange for the 5,141
establishment of a toll-free telephone number to enable all 5,142
persons in this state to make inquiries and obtain information 5,143
concerning the credits or payments. 5,144
Sec. 5117.05. The tax commissioner DIRECTOR OF 5,153
DEVELOPMENT, in consultation with the commission on 5,154
Hispanic-Latino affairs, shall develop an outreach program, 5,156
including Spanish-speaking communication formats, designed to 5,157
make all Spanish-speaking persons who meet the eligibility 5,158
requirements for participation in the Ohio energy credit program 5,159
aware of the nature and extent of available benefits and methods 5,160
for acquiring and making applications. The program shall include
assistance to such persons in making applications. The 5,161
commissioner DIRECTOR shall implement the program in cooperation 5,163
with the commission on Hispanic-Latino affairs. 5,164
Sec. 5117.07. (A) On or before the first day of October, 5,173
the tax commissioner DIRECTOR OF DEVELOPMENT shall review all 5,174
applications submitted under division (C) of section 5117.03 of 5,176
the Revised Code and shall determine the eligibility of each 5,177
125
applicant to receive a credit or payment. 5,178
(1) An applicant is eligible for a credit of thirty per 5,180
cent if the applicant is a head of household, has a total income 5,181
of five thousand dollars or less or a current total income of two 5,182
thousand five hundred dollars or less, owns and occupies or rents 5,183
and occupies a household receiving the source of energy for its 5,184
primary heating system from an energy company and such energy is 5,185
separately metered, and is either of the following: 5,186
(a) Sixty-five years of age or older; 5,188
(b) Permanently and totally disabled. 5,190
(2) An applicant is eligible for a credit of twenty-five 5,192
per cent if the applicant is a head of household, has a total 5,193
income of more than five thousand dollars but not more than nine 5,194
thousand dollars or a current total income of more than two 5,195
thousand five hundred dollars but not more than four thousand 5,196
five hundred dollars, is sixty-five years of age or older or 5,197
permanently and totally disabled, and owns and occupies or rents 5,198
and occupies a household receiving the source of energy for its 5,199
primary heating system from an energy company and such energy is 5,200
separately metered. 5,201
(3) An applicant is eligible for a payment if either of 5,203
the following applies to the applicant: 5,204
(a) He THE APPLICANT would be eligible for the credit 5,206
under division (A)(1) or (2) of this section but for the fact 5,208
that the source of energy for the primary heating system of the 5,209
applicant's household is not separately metered; 5,210
(b) He THE APPLICANT is a head of household, has a total 5,212
income of no more than nine thousand dollars or a current total 5,214
income of no more than four thousand five hundred dollars, is 5,215
sixty-five years of age or older or permanently and totally 5,216
disabled, and owns and occupies or rents and occupies a household 5,217
receiving the source of energy for its primary heating system 5,218
from an energy dealer.
(4) In the case of a multiple unit dwelling for which 5,220
126
separate metering for the source of energy for its primary 5,221
heating system is not provided, more than one applicant occupying 5,222
such dwelling may be determined eligible for a payment under 5,223
division (A)(3)(a) of this section. 5,224
(B) Notwithstanding division (A) of this section: 5,226
(1) No head of household who resides in public housing or 5,228
receives a rent subsidy from a government agency is eligible for 5,229
a credit or payment unless the person's rent subsidy does not 5,230
reflect the costs of his THAT PERSON'S household receiving the 5,231
source of energy for its primary heating system; 5,233
(2) A resident of a nursing home, hospital, or other 5,235
extended health care facility is not eligible for a credit or 5,236
payment for the costs of providing the source of energy for the 5,237
primary heating system of the facility. 5,238
(C) The DIRECTOR, IN CONSULTATION WITH THE tax 5,240
commissioner, shall establish a procedure whereby he THE 5,242
COMMISSIONER can verify total income and current total income for 5,243
the calendar year in which an applicant is determined eligible 5,244
for a payment or credit. If a person receives a credit or 5,245
payment that he THE PERSON is ineligible to receive under 5,246
division (A) of this section AS DETERMINED BY THE COMMISSIONER, 5,248
that person shall refund to the tax commissioner DIRECTOR the 5,250
credit or payment, or excess portion of a credit or payment, he 5,251
THAT PERSON received. The sum refunded shall be deposited in the 5,252
state treasury to the credit of the general revenue fund 5,253
UNIVERSAL SERVICE FUND CREATED IN SECTION 4928.51 OF THE REVISED 5,254
CODE.
(D) The tax commissioner DIRECTOR may request an 5,256
additional certification of permanent and total disability for 5,257
any applicant claiming such status on an application renewal form 5,258
submitted under section 5117.03 of the Revised Code. Such 5,259
certification shall be requested from the person or agency named 5,260
on the form pursuant to division (B)(1) of section 5117.03 of the 5,261
Revised Code. If such additional certification is refused due to 5,262
127
a conclusion by the person or agency that the applicant is not 5,263
permanently and totally disabled, the commissioner DIRECTOR shall 5,265
determine the applicant ineligible for any credit or payment. If 5,266
such additional certification is unavailable or refused for any 5,267
other reason, the tax commissioner DIRECTOR may determine the 5,268
applicant to be eligible for a credit or payment provided he THE 5,270
DIRECTOR has good cause to believe the applicant is permanently 5,272
and totally disabled.
(E) On or before the first day of October, the tax 5,274
commissioner DIRECTOR shall notify each applicant of the 5,275
disposition of his THE APPLICANT'S application under divisions 5,277
(A) and (B) of this section. At the same time, he THE DIRECTOR 5,279
shall notify the applicant, regardless of whether his THE 5,281
APPLICANT'S application is approved or disapproved, that the 5,282
applicant may be eligible to participate in a state or federal 5,283
weatherization program and should contact his THE APPLICANT'S 5,284
community action agency for further information. If an 5,286
application is disapproved, the applicant may appeal to the tax 5,287
commissioner DIRECTOR for a hearing on the matter. A notice of 5,289
disapproval shall include a detailed explanation of the 5,290
applicant's right of appeal under this chapter. Any such appeal 5,291
shall be on an appeal form prescribed by the tax commissioner 5,292
DIRECTOR and shall be filed with the tax commissioner DIRECTOR 5,294
within twenty days of the receipt of the notice of disapproval. 5,296
Sec. 5117.08. (A)(1) On or before the tenth day of 5,305
October, the tax commissioner DIRECTOR OF DEVELOPMENT shall begin 5,307
to prepare and certify to each energy company that provides 5,308
energy for home heating a list containing the name and account 5,309
number of each head of household determined eligible for a credit 5,310
under divisions (A) and (B) of section 5117.07 of the Revised 5,311
Code and served by that company, the address of the household, 5,312
and the source of the heat produced by the primary heating system 5,313
in the residence of the applicant. The tax commissioner may 5,314
DIRECTOR, for good cause, MAY certify addenda to such lists, 5,316
128
containing the names of any heads of household whose names were 5,317
not included in the earlier lists but who, except for failure to 5,318
meet the deadline requirements of sections 5117.01 to 5117.12 of 5,319
the Revised Code, would have been certified in the original 5,320
lists. Within thirty days of receipt of such list and in any 5,321
month for which a credit is required under sections 5117.01 to 5,322
5117.12 of the Revised Code, the company may verify that each 5,323
head of household on the commissioner's DIRECTOR'S list receives 5,324
energy for home heating at the household address appearing on 5,326
such list or that the source of heat produced by the primary 5,327
heating system in the household is energy supplied by the 5,328
company. If the company determines that a person listed does not 5,329
receive energy for home heating at such address or that the 5,330
source of the heat produced by the primary heating system in the 5,331
residence of such person is not supplied by the company, it shall 5,332
notify the commissioner DIRECTOR of such fact and may refuse to 5,334
grant the credit provided under division (A) of section 5117.07 5,335
of the Revised Code. Upon receipt of such notice, the 5,336
commissioner DIRECTOR shall determine the accuracy of the 5,338
determination of the company and, should he THE DIRECTOR not 5,339
concur with the company, shall order the company to provide the 5,340
credit.
(2) The good faith exercise by any company of any power of 5,342
refusal granted under division (A)(1) of this section does not 5,343
subject such company to any penalty or liability provided under 5,344
division (A) of section 5117.11 of the Revised Code. 5,345
(B)(1) Nothing in sections 5117.01 to 5117.12 of the 5,347
Revised Code shall be construed to abridge the right of an 5,348
otherwise eligible applicant to receive a credit or payment 5,349
because he THE APPLICANT has either changed the location of his 5,351
THE APPLICANT'S residence or the nature of the occupancy of his 5,352
THE APPLICANT'S residence, as between a tenant or an owner, at a 5,354
time that could, as a result of the operation of sections 5117.01 5,355
to 5117.12 of the Revised Code, cause him THE APPLICANT to be 5,356
129
disqualified from receiving, or continuing to receive, the credit 5,357
or payment.
(2) Where a person who submits a form or information 5,359
required under sections 5117.01 to 5117.10 of the Revised Code 5,360
does so in a timely fashion but, because of the occurrence of an 5,361
error or omission with respect to such form or information, 5,362
either on his THE PERSON'S OWN part or on the part of those 5,363
persons required by sections 5117.01 to 5117.12 of the Revised 5,365
Code to take administrative, executive, or ministerial action 5,366
regarding such form or information, the certification of 5,367
eligibility by the tax commissioner DIRECTOR to an energy company 5,368
takes place after the expiration of a deadline imposed under 5,369
sections 5117.01 to 5117.12 of the Revised Code, the company 5,370
shall grant the credit within thirty days and, whenever 5,371
appropriate, grant the credit on a retroactive basis. 5,372
(3) The tax commissioner DIRECTOR shall adopt a rule 5,374
ensuring that the requirements of divisions (B)(1) and (2) of 5,375
this section are effectuated. 5,376
Sec. 5117.09. (A) With respect to each of its residential 5,385
customers, every energy company shall, after receipt of a 5,386
certification list provided under division (A) of section 5117.08 5,387
of the Revised Code, cause the granting of a credit in accordance 5,388
with this section against the monthly billing of each household 5,389
appearing on the list except as provided in division (A) of 5,390
section 5117.08 of the Revised Code. In the case of an applicant 5,391
who has a total income of five thousand dollars or less or a 5,392
current total income of two thousand five hundred dollars or 5,393
less, the credit shall amount to thirty per cent of the current 5,394
monthly bill rendered to such household by the company for the 5,395
billing months of December, January, February, March, and April 5,396
following the receipt of a list on which the household appears. 5,397
In the case of an applicant who has a total income of more than 5,398
five thousand dollars but not more than nine thousand dollars or 5,399
a current total income of more than two thousand five hundred 5,400
130
dollars but not more than four thousand five hundred dollars, the 5,401
credit shall amount to twenty-five per cent of the current 5,402
monthly bill rendered to such household by the company for the 5,403
billing months of December, January, February, March, and April 5,404
following the receipt of a list on which the household appears. 5,405
If purchased power costs are incurred by an energy company during 5,406
the billing month for which a credit is provided under this 5,407
division, the credit shall also be applied to such costs, whether 5,408
or not the costs are charged to a current montly MONTHLY bill for 5,409
such months. 5,410
(B) Every energy company shall read the meter of each of 5,412
its qualified residential customers who may receive a credit 5,413
under division (A) of this section at least one time for the 5,414
service period of November and at least one time in the service 5,415
period for the current monthly bill rendered for the billing 5,416
month of April. In the event a company is unable to read a meter 5,417
because of failure to gain access after a good faith effort or 5,418
because a certification list was supplied to the utility fewer 5,419
than thirty days prior to the normal date of meter reading, the 5,420
company may render a calculated bill. In such instances, the 5,421
company shall make an adjustment to the amount of the credit 5,422
granted to the customer based upon the next actual reading of the 5,423
meter if the reading shows the previous calculation to have been 5,424
in error and set forth the amount of such adjustments in the 5,425
report required to be filed with the tax commissioner DIRECTOR OF 5,426
DEVELOPMENT under division (D) of this section. 5,427
(C) On each billing that is subject to a credit under 5,429
division (A) of this section, there shall appear in ten-point 5,430
type both the amount of the credit and to the left of such amount 5,431
"Ohio Energy Credit." 5,432
(D) On or before the fifteenth day of each month following 5,434
one in which credits were provided under division (A) of this 5,435
section, each energy company shall, on a form prescribed by the 5,436
tax commissioner DIRECTOR and requesting information that he THE 5,438
131
DIRECTOR determines is necessary for the purpose of verifying the 5,440
propriety of the payment of credits, certify to the commissioner 5,441
DIRECTOR the total amount of all credits it granted pursuant to 5,443
division (A) of this section during the preceding month. Not 5,444
later than thirty days after his receipt of such certification, 5,445
the commissioner DIRECTOR shall pay the company the amount 5,447
certified. If the commissioner DIRECTOR determines that a 5,449
company previously received amounts greater than the amounts of 5,450
credits properly granted, such company, upon notice from the 5,451
commissioner DIRECTOR, shall reimburse the commissioner DIRECTOR 5,452
in the amount of the overpayments. Such reimbursements shall be 5,453
deposited in the general revenue fund. 5,454
(E)(l) Any energy company that purposely fails to grant 5,456
the credit provided under division (A) of this section is liable 5,457
to each person entitled to the credit and certified to the 5,458
company by the tax commissioner DIRECTOR pursuant to division (A) 5,460
of section 5117.08 of the Revised Code in treble the amount of 5,461
the total credit not granted. The consumers' counsel may, on 5,462
behalf of any person or persons not granted the credit, MAY bring 5,463
an action to recover such treble damages in the court of common 5,464
pleas of the county in which is located the office of the company 5,465
nearest the household of any such person or persons. The 5,466
consumers' counsel may also, on behalf of any persons not granted 5,467
the credit, MAY bring a class action to recover such treble 5,468
damages in the court of common pleas of any county in which is 5,469
located an office of the company and, if feasible, in which is 5,470
located a significant number of members of the class. Any treble 5,471
damage recovery under this division does not, in any manner, 5,472
diminish any other liability provided under sections 5117.01 to 5,473
5117.12 of the Revised Code. Clerical errors shall not be 5,474
considered an offense or incur liability under this division. 5,475
(2) An action shall be brought by the consumers' counsel 5,477
under division (E)(1) of this section only after he THE 5,478
CONSUMERS' COUNSEL has made a good faith attempt to dispose of 5,480
132
the claim by settlement, including a good faith request for only 5,481
such information in the possession of an energy company as is 5,482
needed to determine the existence or extent of such a right of 5,483
action.
(3) Nothing in division (E)(1) of this section shall be 5,485
construed to prevent persons acting without the assistance of the 5,486
consumers' counsel from bringing an action or class action under 5,487
such division. 5,488
Sec. 5117.10. (A) On or before the fifteenth day of 5,497
January, the tax commissioner DIRECTOR OF DEVELOPMENT shall pay 5,498
each applicant determined eligible for a payment under divisions 5,500
(A) and (B) of section 5117.07 of the Revised Code one hundred 5,501
twenty-five dollars.
(B) The tax commissioner DIRECTOR may withhold from any 5,503
payment to which a person would otherwise be entitled under 5,505
division (A) of this section any amount that the tax commissioner 5,506
DIRECTOR determines was erroneously received by such person in a 5,508
preceding year under this or the program established under Am. 5,509
Sub. H.B. 230, as amended by Am. H.B. 937, Am. Sub. H.B. 1073, 5,510
Am. Sub. S.B. 493, and Am. Sub. S.B. 523 of the 112th general 5,511
assembly, provided the tax commissioner DIRECTOR has employed all 5,512
other legal methods reasonably available to obtain reimbursement 5,514
for the erroneous payment or credit prior to the commencement of 5,515
the current program year.
(C) Payments made under this section and credits granted 5,517
under section 5117.09 of the Revised Code shall not be considered 5,518
income for the purpose of determining eligibility or the level of 5,519
benefits or assistance under section 329.042 or Chapters 5107., 5,520
5111., and 5115. of the Revised Code; supplemental security 5,522
income payments under Title XVI of the "Social Security Act," 49 5,523
Stat. 620 (1935), 42 U.S.C. 301, as amended; or any other program 5,524
under which eligibility or the level of benefits or assistance is 5,525
based upon need measured by income.
Sec. 5117.12. (A) On or before the thirty-first day of 5,534
133
August of each year, each energy company shall file a written 5,535
report with the tax commissioner DIRECTOR OF DEVELOPMENT 5,536
regarding the impact, if any, of the requirements of division (E) 5,538
of section 5117.11 of the Revised Code on the number of 5,539
uncollectible and past due residential accounts for the 5,540
twelve-month period ending on the preceding thirty-first day of 5,541
July. The report shall include such information as is prescribed 5,542
by the tax commissioner DIRECTOR. The information shall be based 5,544
on actual reviews of residential customer accounts and shall be 5,545
presented in verifiable form. The tax commissioner DIRECTOR may 5,546
consult with the public utilities commission and the consumers' 5,548
counsel in prescribing the contents of such reports and complying 5,549
with the requirements of division (C)(4) of this section. 5,550
(B) Before the thirty-first day of January of each year, 5,552
the tax commissioner DIRECTOR shall prepare a written report 5,553
including a final review of the Ohio energy credit program for 5,555
which applications were required to be mailed or provided by the 5,556
fifteenth day of June of the second preceding calendar year 5,557
pursuant to section 5117.03 of the Revised Code and an interim 5,558
review of the program for which applications were required to be 5,559
mailed or provided by the fifteenth day of June of the preceding 5,560
calendar year under such section. On or before the thirty-first 5,561
day of January of each year, the commissioner DIRECTOR shall 5,562
provide written copies of such report to the speaker of the house 5,564
of representatives, president of the senate, minority leaders of 5,565
the house of representatives and senate, chairpersons of the 5,567
house finance and appropriations committee and senate finance 5,568
committee, chairpersons of the committees of the house of 5,569
representatives and senate customarily entrusted with matters 5,570
concerning public utilities, clerk of the house of 5,571
representatives, and clerk of the senate. 5,572
(C) Each report prepared under division (B) of this 5,574
section shall include a review of: 5,575
(1) Program costs; 5,577
134
(2) The number of persons receiving credits or payments 5,579
under the program; 5,580
(3) Progress in the implementation of any changes in the 5,582
program made by the general assembly within the period covered by 5,583
the report; 5,584
(4) The impact, if any, of the requirements of division 5,586
(E) of section 5117.11 of the Revised Code on the number of 5,587
uncollectible and past due residential accounts of energy 5,588
companies for the twelve-month period ending on the preceding 5,589
thirty-first day of July; 5,590
(5) The impact of any federal energy assistance programs 5,592
available to the same groups of people as are eligible for the 5,593
energy credit program under sections 5117.01 to 5117.12 of the 5,594
Revised Code, together with any recommendations on modifications 5,595
that may, because of the federal programs, be needed in the 5,596
energy credit program; 5,597
(6) Any suggestions for improving the program; 5,599
(7) Any other matters considered appropriate by the 5,601
commissioner. 5,602
(D) The tax commissioner DIRECTOR shall consult with the 5,604
auditor of state, energy companies, energy dealers, department of 5,606
aging, and commission on Hispanic-Latino affairs in the 5,608
preparation of any report under this section. The commissioner 5,609
DIRECTOR may require information from such agencies for the 5,611
purpose of preparing such report.
Sec. 5701.03. As used in Title LVII of the Revised Code: 5,620
(A) "Personal property" includes every tangible thing that 5,622
is the subject of ownership, whether animate or inanimate, 5,623
including a business fixture, and that does not constitute real 5,624
property as defined in section 5701.02 of the Revised Code. 5,625
"Personal property" also includes every share, portion, right, or 5,626
interest, either legal or equitable, in and to every ship, 5,627
vessel, or boat, used or designed to be used in business either 5,628
exclusively or partially in navigating any of the waters within 5,629
135
or bordering on this state, whether such ship, vessel, or boat is 5,630
within the jurisdiction of this state or elsewhere. "Personal 5,631
property" does not include money as defined in section 5701.04 of 5,632
the Revised Code, motor vehicles registered by the owner thereof, 5,633
ELECTRICITY, or, for purposes of any tax levied on personal 5,635
property, patterns, jigs, dies, or drawings that are held for use 5,636
and not for sale in the ordinary course of business, except to 5,637
the extent that the value of the patterns, jigs, dies, or 5,638
drawings is included in the valuation of inventory produced for 5,639
sale.
(B) "Business fixture" means an item of tangible personal 5,641
property that has become permanently attached or affixed to the 5,642
land or to a building, structure, or improvement, and that 5,643
primarily benefits the business conducted by the occupant on the 5,644
premises and not the realty. "Business fixture" includes, but is 5,645
not limited to, machinery, equipment, signs, storage bins and 5,646
tanks, whether above or below ground, and broadcasting, 5,647
transportation, transmission, and distribution systems, whether 5,648
above or below ground. "Business fixture" also means those 5,649
portions of buildings, structures, and improvements that are 5,650
specially designed, constructed, and used for the business 5,651
conducted in the building, structure, or improvement, including, 5,652
but not limited to, foundations and supports for machinery and 5,653
equipment. "Business fixture" does not include fixtures that are 5,654
common to buildings, including, but not limited to, heating, 5,655
ventilation, and air conditioning systems primarily used to 5,656
control the environment for people or animals, tanks, towers, and 5,657
lines for potable water or water for fire control, electrical and 5,658
communication lines, and other fixtures that primarily benefit 5,659
the realty and not the business conducted by the occupant on the 5,660
premises. 5,661
Sec. 5703.052. There is hereby created in the state 5,670
treasury the tax refund fund, from which refunds shall be paid 5,671
for taxes illegally or erroneously assessed or collected, or for 5,672
136
any other reason overpaid, that are levied by Chapter 4301., 5,673
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 5,674
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36, 5,675
4303.33, 5707.03, 5725.18, 5727.38, AND 5727.81, and former 5,677
sections 5727.27 and 5727.40 of the Revised Code. Refunds for 5,679
fees illegally or erroneously assessed or collected, or for any 5,680
other reason overpaid, that are levied by sections 3734.90 to 5,681
3734.9014 of the Revised Code also shall be paid from the fund. 5,682
However, refunds for taxes levied under section 5739.101 of the 5,683
Revised Code shall not be paid from the tax refund fund, but 5,684
shall be paid as provided in section 5739.104 of the Revised 5,685
Code.
Upon certification by the tax commissioner to the treasurer 5,687
of state of a tax refund, fee refund, or tax credit due, or by 5,688
the superintendent of insurance of a domestic or foreign 5,689
insurance tax refund, the treasurer of state may place the amount 5,690
certified to the credit of the fund. The certified amount 5,691
transferred shall be derived from current receipts of the same 5,692
tax or the fee for which the refund arose or, in the case of a 5,693
tax credit refund, from the current receipts of the taxes levied 5,694
by sections 5739.02 and 5741.02 of the Revised Code. 5,695
If the tax refund arises from a tax payable to the general 5,697
revenue fund, and current receipts from that source are 5,698
inadequate to make the transfer of the amount so certified, the 5,699
treasurer of state may transfer such certified amount from 5,700
current receipts of the sales tax levied by section 5739.02 of 5,701
the Revised Code. 5,702
Sec. 5703.053. As used in this section, "postal service" 5,711
means the United States postal service. 5,712
An application to the tax commissioner for a tax refund 5,714
under sections 4307.05, 4307.07, 5727.91, 5728.061, 5735.122, 5,715
5735.13, 5735.14, 5735.141, 5735.142, 5739.07, 5741.10, 5743.05, 5,717
5743.53, 5749.08, and 5753.06 of the Revised Code or division (B) 5,718
of section 5703.05 of the Revised Code, or a fee refunded under 5,719
137
section 3734.905 of the Revised Code, that is received after the 5,720
last day for filing under such section shall be considered to 5,721
have been filed in a timely manner if: 5,722
(A) The application is delivered by the postal service and 5,724
the earliest postal service postmark on the cover in which the 5,725
application is enclosed is not later than the last day for filing 5,726
the application; 5,727
(B) The application is delivered by the postal service, 5,729
the only postmark on the cover in which the application is 5,730
enclosed was affixed by a private postal meter, the date of that 5,731
postmark is not later than the last day for filing the 5,732
application, and the application is received within seven days of 5,733
such last day; or 5,734
(C) The application is delivered by the postal service, no 5,736
postmark date was affixed to the cover in which the application 5,737
is enclosed or the date of the postmark so affixed is not 5,738
legible, and the application is received within seven days of the 5,739
last day for making the application. 5,740
Sec. 5703.14. (A) Any rule adopted by the board of tax 5,749
appeals and any rule of the department of taxation adopted by the 5,750
tax commissioner shall be effective on the tenth day after the 5,751
day on which the rule in final form and in compliance with 5,752
division (B) of this section is filed by the board or the 5,753
commissioner as follows: 5,754
(1) Two certified copies of the rule shall be filed with 5,756
both the secretary of state and the director of the legislative 5,757
service commission; 5,758
(2) Two certified copies of the rule shall be filed with 5,760
the joint committee on agency rule review. Division (A)(2) of 5,761
this section does not apply to any rule to which division (H) of 5,762
section 119.03 of the Revised Code does not apply. 5,763
If all copies are not filed on the same day, the rule shall 5,765
be effective on the tenth day after the day on which the latest 5,766
filing is made. If the board or the commissioner in adopting a 5,767
138
rule designates an effective date that is later than the 5,768
effective date provided for by this division, the rule if filed 5,769
as required by this division shall become effective on the later 5,770
date designated by the board or commissioner. 5,771
(B) The board and commissioner shall file the rule in 5,773
compliance with the following standards and procedures: 5,774
(1) The rule shall be numbered in accordance with the 5,776
numbering system devised by the director for the Ohio 5,777
administrative code. 5,778
(2) The rule shall be prepared and submitted in compliance 5,780
with the rules of the legislative service commission. 5,781
(3) The rule shall clearly state the date on which it is 5,783
to be effective and the date on which it will expire, if known. 5,784
(4) Each rule that amends or rescinds another rule shall 5,786
clearly refer to the rule that is amended or rescinded. Each 5,787
amendment shall fully restate the rule as amended. 5,788
If the director of the legislative service commission or 5,790
his THE DIRECTOR'S designee gives the board or commissioner 5,791
written notice pursuant to section 103.05 of the Revised Code 5,792
that a rule filed by the board or commissioner is not in 5,793
compliance with the rules of the legislative service commission, 5,794
the board or commissioner shall within thirty days after receipt 5,795
of the notice conform the rule to the rules of the legislative 5,796
service commission as directed in the notice. 5,797
All rules of the department and board filed pursuant to 5,799
division (A)(1) of this section shall be recorded by the 5,800
secretary of state and the director under the name of the 5,801
department or board and shall be numbered in accordance with the 5,802
numbering system devised by the director. The secretary of state 5,803
and the director shall preserve the rules in an accessible 5,804
manner. Each such rule shall be a public record open to public 5,805
inspection and may be lent to any law publishing company that 5,806
wishes to reproduce it. Each such rule shall also be made 5,807
available to interested parties upon request directed to the 5,808
139
department. 5,809
(C) Applications for review of any rule adopted and 5,811
promulgated by the commissioner may be filed with the board by 5,812
any person who has been or may be injured by the operation of the 5,813
rule. The appeal may be taken at any time after the rule is 5,814
filed with the secretary of the state, the director of the 5,815
legislative service commission, and, if applicable, the joint 5,816
committee on agency rule review. Failure to file an appeal does 5,817
not preclude any person from seeking any other remedy against the 5,818
application of the rule to him THE PERSON. The applications 5,819
shall set forth, or have attached thereto and incorporated by 5,820
reference, a true copy of the rule, and shall allege that the 5,821
rule complained of is unreasonable and shall state the grounds 5,822
upon which the allegation is based. Upon the filing of the 5,823
application, the board shall notify the commissioner of the 5,824
filing of the application, fix a time for hearing the 5,825
application, notify the commissioner and the applicant of the 5,826
time for the hearing, and afford both an opportunity to be heard. 5,827
The appellant, the tax commissioner, and any other interested 5,828
persons that the board permits, may introduce evidence. The 5,829
burden of proof to show that the rule is unreasonable shall be 5,830
upon the appellant. After the hearing, the board shall determine 5,831
whether the rule complained of is reasonable or unreasonable. A 5,832
determination that the rule complained of is unreasonable shall 5,833
require a majority vote of the three members of the board, and 5,834
the reasons for the determination shall be entered on the journal 5,835
of the board. 5,836
Upon determining that the rule complained of is 5,838
unreasonable, the board shall file copies of its determination as 5,839
follows: 5,840
(1) Two certified copies of the determination shall be 5,842
filed with both the secretary of state and the director of the 5,843
legislative service commission, who shall note the date of their 5,844
receipt of the certified copies conspicuously in their files of 5,845
140
the rules of the department; 5,846
(2) Two certified copies of the determination shall be 5,848
filed with the joint committee on agency rule review. Division 5,849
(C)(2) of this section does not apply to any rule to which 5,850
division (H) of section 119.03 of the Revised Code does not 5,851
apply. 5,852
On the tenth day after the copies of the determination have 5,854
been received by the secretary of state, the director, and, if 5,855
applicable, the joint committee, the rule referred to in the 5,856
determination shall cease to be in effect. If all copies of the 5,857
determination are not filed on the same day, the rule shall 5,858
remain in effect until the tenth day after the day on which the 5,859
latest filing is made. This section does not apply to licenses 5,860
issued under sections 5735.02, 5739.17, and 5743.15 of the 5,861
Revised Code, which shall be governed by sections 119.01 to 5,862
119.13 of the Revised Code. 5,863
The board is not required to hear an application for the 5,865
review of any rule where the grounds of the allegation that the 5,866
rule is unreasonable have been previously contained in an 5,867
application for review and have been previously heard and passed 5,868
upon by the board. 5,869
(D) This section does not apply to the adoption of any 5,871
rule, or to the amendment or rescission of any rule by the 5,872
DIRECTOR OF DEVELOPMENT IN CONSULTATION WITH THE tax commissioner 5,874
under division (C)(1) or (2) of section 5117.02 of the Revised 5,875
Code.
(E) As used in this section, "substantive revision" has 5,877
the same meaning as in division (J) of section 119.01 of the 5,878
Revised Code. 5,879
Sec. 5705.34. When the budget commission has completed its 5,888
work with respect to a tax budget, it shall certify its action to 5,889
the taxing authority, together with an estimate by the county 5,891
auditor of the rate of each tax necessary to be levied by the 5,892
taxing authority within its subdivision or taxing unit, and what
141
part thereof is in excess of, and what part within, the ten-mill 5,893
tax limitation. The certification shall also indicate the date 5,894
on which each tax levied by the taxing authority will expire. 5,895
Each IF A TAXING AUTHORITY LEVIES A TAX FOR A FIXED SUM OF 5,897
MONEY OR TO PAY DEBT CHARGES FOR THE TAX YEAR FOR WHICH THE TAX 5,899
BUDGET IS PREPARED, AND THE TAX WAS LEVIED IN TAX YEAR 1998, THE 5,900
COUNTY AUDITOR, WHEN ESTIMATING THE RATE AT WHICH THE TAX SHALL 5,901
BE LEVIED IN THE CURRENT YEAR, SHALL ESTIMATE THE RATE NECESSARY 5,902
TO RAISE THE REQUIRED SUM LESS THE ESTIMATED AMOUNT OF ANY 5,903
PAYMENTS MADE FOR THE TAX YEAR TO A TAXING UNIT UNDER SECTIONS 5,904
5727.85 AND 5727.86 OF THE REVISED CODE. THE ESTIMATED RATE 5,905
SHALL BE THE RATE OF THE LEVY THAT THE BUDGET COMMISSION 5,907
CERTIFIES WITH ITS ACTION UNDER THIS SECTION. 5,908
EACH taxing authority, by ordinance or resolution, shall 5,910
authorize the necessary tax levies and certify them to the county 5,911
auditor before the first day of October in each year, or at such 5,912
later date as is approved by the tax commissioner, except that 5,913
the certification by a board of education shall be made by the 5,914
first day of April or at such later date as is approved by the 5,915
commissioner, and except that a township board of park
commissioners that is appointed by the board of township trustees 5,916
and oversees a township park district that contains only 5,917
unincorporated territory shall authorize only those taxes 5,918
approved by, and only at the rate approved by, the board of 5,919
township trustees as required by division (C) of section 511.27
of the Revised Code. If the levying of a tax to be placed on the 5,920
duplicate of the current year is approved by the electors of the 5,921
subdivision under sections 5705.01 to 5705.47 of the Revised 5,922
Code; if the rate of a school district tax is increased due to 5,923
the repeal of a school district income tax and property tax rate 5,924
reduction at an election held pursuant to section 5748.04 of the
Revised Code; or if refunding bonds to refund all or a part of 5,925
the principal of bonds payable from a tax levy for the ensuing 5,926
fiscal year are issued or sold and in the process of delivery, 5,927
142
the budget commission shall reconsider and revise its action on 5,928
the budget of the subdivision or school library district for 5,929
whose benefit the tax is to be levied after the returns of such
election are fully canvassed, or after the issuance or sale of 5,930
such refunding bonds is certified to it. 5,931
Sec. 5727.01. As used in this chapter: 5,940
(A) "Public utility" means each person referred to as a 5,942
telephone company, telegraph company, electric company, natural 5,943
gas company, pipe-line company, water-works company, water 5,944
transportation company, heating company, rural electric company, 5,945
or railroad company. 5,946
(B) "Gross receipts" means the entire receipts for 5,948
business done by any person from operation as a public utility, 5,949
or incidental thereto, or in connection therewith. The gross 5,950
receipts for business done by an incorporated company engaged in 5,951
operation as a public utility includes the entire receipts for 5,952
business done by such company under the exercise of its corporate 5,953
powers, whether from the operation as a public utility or from 5,954
any other business. 5,955
(C) "Rural electric company" means any nonprofit 5,957
corporation, organization, association, or cooperative engaged in 5,958
the business of supplying electricity to its members or persons 5,959
owning an interest therein in an area the major portion of which 5,960
is rural. 5,961
(D) Any person: 5,963
(1) Is a telegraph company when engaged in the business of 5,965
transmitting telegraphic messages to, from, through, or in this 5,966
state; 5,967
(2) Is a telephone company when primarily engaged in the 5,969
business of providing local exchange telephone service, excluding 5,970
cellular radio service, in this state; 5,971
(3) Is an electric company when engaged in the business of 5,973
generating, transmitting, or distributing electricity within this 5,974
state for use by others; 5,975
143
(4) Is a natural gas company when engaged in the business 5,977
of supplying natural gas for lighting, power, or heating purposes 5,978
to consumers within this state; 5,979
(5) Is a pipe-line company when engaged in the business of 5,981
transporting natural gas, oil, or coal or its derivatives through 5,982
pipes or tubing, either wholly or partially within this state; 5,983
(6) Is a water-works company when engaged in the business 5,985
of supplying water through pipes or tubing, or in a similar 5,986
manner, to consumers within this state; 5,987
(7) Is a water transportation company when engaged in the 5,989
transportation of passengers or property, by boat or other 5,990
watercraft, over any waterway, whether natural or artificial, 5,991
from one point within this state to another point within this 5,992
state, or between points within this state and points without 5,993
this state; 5,994
(8) Is a heating company when engaged in the business of 5,996
supplying water, steam, or air through pipes or tubing to 5,997
consumers within this state for heating purposes; 5,998
(9) Is a railroad company when engaged in the business of 6,000
owning or operating a railroad either wholly or partially within 6,001
this state on rights-of-way acquired and held exclusively by such 6,003
company, or otherwise, and includes a passenger, street, 6,004
suburban, or interurban railroad company. 6,005
As used in division (D)(2) of this section, "local exchange 6,007
telephone service" means making available or furnishing access 6,008
and a dial tone to all persons within a local calling area for 6,009
use in originating and receiving voice grade communications over 6,010
a switched network operated by the provider of the service within 6,011
the area and for gaining access to other telecommunication 6,012
services. 6,013
(E) "Taxable property" means the property required by 6,015
section 5727.06 of the Revised Code to be assessed by the tax 6,016
commissioner, but does not include either of the following: 6,017
(1) An item of tangible personal property that for the 6,019
144
period subsequent to the effective date of an air, water, or 6,020
noise pollution control certificate and continuing so long as the 6,021
certificate is in force, has been certified as part of the 6,022
pollution control facility with respect to which the certificate 6,023
has been issued; 6,024
(2) An item of tangible personal property that during the 6,026
construction of a plant or facility and until the item is first 6,027
capable of operation, whether actually used in operation or not, 6,028
is incorporated in or being held exclusively for incorporation in 6,029
that plant or facility. 6,030
(F) "Taxing EXCEPT AS PROVIDED IN SECTION 5727.84 OF THE 6,032
REVISED CODE, "TAXING district" means a municipal corporation or 6,033
township, or part thereof, in which the aggregate rate of 6,034
taxation is uniform. 6,035
(G) "Telecommunications service" has the same meaning as 6,037
in division (AA) of section 5739.01 of the Revised Code. 6,038
(H) "Interexchange telecommunications company" means a 6,040
person that is engaged in the business of transmitting telephonic 6,041
messages to, from, through, or in this state, but that is not a 6,042
telephone company. 6,043
(I) "Sale and leaseback transaction" means a transaction 6,045
in which a public utility or interexchange telecommunications 6,046
company sells any tangible personal property to a person other 6,047
than a public utility or interexchange telecommunications company 6,048
and within the same calendar year leases that property back from 6,049
the buyer. 6,050
(J) "PRODUCTION EQUIPMENT" MEANS ALL TAXABLE STEAM, 6,052
NUCLEAR, HYDRAULIC, AND OTHER PRODUCTION PLANT EQUIPMENT USED TO 6,053
GENERATE ELECTRICITY. "PRODUCTION EQUIPMENT" DOES NOT INCLUDE 6,055
TAXABLE STATION EQUIPMENT THAT IS LOCATED AT A PRODUCTION PLANT. 6,056
Sec. 5727.03. (A) A PERSON ENGAGED IN THE ACTIVITY OF AN 6,059
ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A HEATING COMPANY, OR 6,061
A NATURAL GAS COMPANY, OR ANY COMBINATION THEREOF, SHALL FILE A 6,062
SEPARATE REPORT UNDER SECTION 5727.08 OF THE REVISED CODE AND A 6,064
145
SEPARATE STATEMENT UNDER SECTION 5727.31 OF THE REVISED CODE FOR 6,067
SERVICE PROVIDED AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,068
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY. THE TAX 6,070
COMMISSIONER SHALL SEPARATELY CALCULATE AND ASSESS TAXABLE 6,071
PROPERTY AND TAXABLE GROSS RECEIPTS. DIVISION (B) OF THIS 6,072
SECTION SHALL BE USED TO CALCULATE THE TAXABLE PROPERTY THAT 6,073
CANNOT BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS AN ELECTRIC 6,074
COMPANY, A RURAL ELECTRIC COMPANY, A HEATING COMPANY, OR A 6,076
NATURAL GAS COMPANY, AND DIVISION (C) OF THIS SECTION SHALL BE 6,077
USED TO CALCULATE THE TAXABLE GROSS RECEIPTS THAT CANNOT BE 6,078
DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS AN ELECTRIC COMPANY, 6,079
A RURAL ELECTRIC COMPANY, A HEATING COMPANY, OR A NATURAL GAS 6,080
COMPANY.
(B) THE TAXABLE PROPERTY THAT CANNOT BE DIRECTLY 6,083
ATTRIBUTED TO PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL 6,084
ELECTRIC COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY 6,085
SHALL BE REPORTED AND TAXED AS PROPERTY USED TO PROVIDE SERVICE: 6,087
(1) AS AN ELECTRIC COMPANY, BY MULTIPLYING THE TAXABLE 6,089
COST OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED TO 6,090
PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,091
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY BY A 6,093
FRACTION, THE NUMERATOR OF WHICH IS THE TAXABLE COST OF PROPERTY 6,094
THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS AN 6,095
ELECTRIC COMPANY, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE 6,096
TAXABLE COSTS OF PROPERTY THAT CAN BE DIRECTLY ATTRIBUTED TO 6,097
PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,098
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY;
(2) AS A RURAL ELECTRIC COMPANY, BY MULTIPLYING THE 6,100
TAXABLE COST OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED 6,101
TO PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,102
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY BY A 6,103
FRACTION, THE NUMERATOR OF WHICH IS THE TAXABLE COST OF PROPERTY 6,104
THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS A RURAL 6,105
ELECTRIC COMPANY, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE 6,106
146
TAXABLE COSTS OF PROPERTY THAT CAN BE DIRECTLY ATTRIBUTED TO 6,107
PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,108
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY; 6,109
(3) AS A HEATING COMPANY, BY MULTIPLYING THE TAXABLE COST 6,112
OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED TO PROVIDING 6,113
SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A
HEATING COMPANY, OR A NATURAL GAS COMPANY BY A FRACTION, THE 6,115
NUMERATOR OF WHICH IS THE TAXABLE COST OF PROPERTY THAT CAN BE 6,116
DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS A HEATING COMPANY, 6,117
AND THE DENOMINATOR OF WHICH IS THE SUM OF THE TAXABLE COSTS OF 6,118
PROPERTY THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS 6,119
AN ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A HEATING COMPANY, 6,121
OR A NATURAL GAS COMPANY;
(4) AS A NATURAL GAS COMPANY, BY MULTIPLYING THE TAXABLE 6,123
COST OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED TO 6,124
PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,125
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY BY A 6,127
FRACTION, THE NUMERATOR OF WHICH IS THE TAXABLE COST OF PROPERTY 6,128
THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS A NATURAL 6,129
GAS COMPANY, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE 6,130
TAXABLE COSTS OF PROPERTY THAT CAN BE DIRECTLY ATTRIBUTED TO 6,131
PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,132
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY. 6,133
(C) TAXABLE GROSS RECEIPTS THAT CANNOT BE DIRECTLY 6,136
ATTRIBUTED TO PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL 6,137
ELECTRIC COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY 6,139
SHALL BE REPORTED AND TAXED AS GROSS RECEIPTS OF A PERSON ENGAGED 6,140
IN BUSINESS:
(1) AS AN ELECTRIC COMPANY, BY MULTIPLYING THE TAXABLE 6,142
GROSS RECEIPTS THAT CANNOT BE DIRECTLY ATTRIBUTED TO PROVIDING 6,143
SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A 6,144
HEATING COMPANY, OR A NATURAL GAS COMPANY BY A FRACTION, THE 6,146
NUMERATOR OF WHICH IS THE TAXABLE GROSS RECEIPTS THAT CAN BE 6,147
DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS AN ELECTRIC COMPANY, 6,148
147
AND THE DENOMINATOR OF WHICH IS THE SUM OF THE GROSS RECEIPTS 6,149
THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS AN 6,150
ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A HEATING COMPANY, OR 6,151
A NATURAL GAS COMPANY; 6,152
(2) AS A RURAL ELECTRIC COMPANY, BY MULTIPLYING THE 6,154
TAXABLE GROSS RECEIPTS THAT CANNOT BE DIRECTLY ATTRIBUTED TO 6,155
PROVIDING SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC 6,156
COMPANY, A HEATING COMPANY, OR A NATURAL GAS COMPANY BY A 6,157
FRACTION, THE NUMERATOR OF WHICH IS THE TAXABLE GROSS RECEIPTS 6,158
THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS A RURAL 6,159
ELECTRIC COMPANY, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE 6,160
GROSS RECEIPTS THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING 6,161
SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A 6,162
HEATING COMPANY, OR A NATURAL GAS COMPANY;
(3) AS A HEATING COMPANY, BY MULTIPLYING THE TAXABLE GROSS 6,165
RECEIPTS THAT CANNOT BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE 6,166
AS AN ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A HEATING
COMPANY, OR A NATURAL GAS COMPANY BY A FRACTION, THE NUMERATOR OF 6,168
WHICH IS THE TAXABLE GROSS RECEIPTS THAT CAN BE DIRECTLY 6,169
ATTRIBUTED TO PROVIDING SERVICE AS A HEATING COMPANY, AND THE 6,170
DENOMINATOR OF WHICH IS THE SUM OF THE GROSS RECEIPTS THAT CAN BE 6,171
DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS AN ELECTRIC COMPANY, 6,172
A RURAL ELECTRIC COMPANY, A HEATING COMPANY, OR A NATURAL GAS 6,174
COMPANY;
(4) AS A NATURAL GAS COMPANY, BY MULTIPLYING THE TAXABLE 6,176
GROSS RECEIPTS THAT CANNOT BE DIRECTLY ATTRIBUTED TO PROVIDING 6,177
SERVICE AS AN ELECTRIC COMPANY, A RURAL ELECTRIC COMPANY, A 6,178
HEATING COMPANY, OR A NATURAL GAS COMPANY BY A FRACTION, THE 6,180
NUMERATOR OF WHICH IS THE TAXABLE GROSS RECEIPTS THAT CAN BE 6,181
DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS A NATURAL GAS 6,182
COMPANY, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE GROSS 6,183
RECEIPTS THAT CAN BE DIRECTLY ATTRIBUTED TO PROVIDING SERVICE AS 6,184
AN ELECTRIC COMPANY, A RURAL HEATING COMPANY, A HEATING COMPANY, 6,185
OR A NATURAL GAS COMPANY. 6,186
148
Sec. 5727.05. This chapter does SECTIONS 5727.01 TO 6,195
5727.61 OF THE REVISED CODE DO not apply to either of the 6,196
following:
(A) Nonprofit corporations as defined in division (C) of 6,198
section 1702.01 of the Revised Code that are engaged exclusively 6,199
in the treatment, distribution, and sale of water to consumers; 6,200
(B) Municipal corporations within this state. 6,202
Sec. 5727.06. (A) Except as otherwise provided by law, 6,211
the following constitutes the taxable property of a public 6,212
utility or interexchange telecommunications company that shall be 6,213
assessed by the tax commissioner: 6,214
(1) In the case of a railroad company, all real property 6,216
and tangible personal property owned or operated by the railroad 6,217
company in this state on the thirty-first day of December of the 6,218
preceding year; 6,219
(2) In the case of a water transportation company, all 6,221
tangible personal property, except watercraft, owned or operated 6,222
by the water transportation company in this state on the 6,223
thirty-first day of December of the preceding year and all 6,224
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year; 6,225
(3) In the case of all other public utilities and 6,227
interexchange telecommunications companies, all tangible personal 6,228
property that on the thirty-first day of December of the 6,229
preceding year was both located in this state and: 6,230
(a) Owned by the public utility or interexchange 6,232
telecommunications company; or 6,233
(b) Leased by the public utility or interexchange 6,235
telecommunications company under a sale and leaseback 6,236
transaction. 6,237
(B) In the case of an interexchange telecommunications 6,239
company, all taxable property shall be subject to the provisions 6,240
of this chapter and shall be valued by the commissioner in 6,241
accordance with division (B)(A) of section 5727.11 of the Revised 6,243
149
Code and assessed by the commissioner in accordance with division 6,244
(G)(F) of section 5727.111 of the Revised Code. A person 6,245
described by this division shall file the report required by 6,247
section 5727.08 of the Revised Code. Persons described in this 6,248
division shall not be considered taxpayers, as defined in 6,249
division (B) of section 5711.01 of the Revised Code, and shall 6,250
not be required to file a return and list their taxable property 6,251
under any provision of Chapter 5711. of the Revised Code. 6,252
(C) The lien of the state for taxes levied each year on 6,254
the real and personal property of public utilities and 6,255
interexchange telecommunications companies shall attach thereto 6,256
on the thirty-first day of December of the preceding year. 6,257
(D) Property that is required by division (A)(3)(b) of 6,259
this section to be assessed by the tax commissioner under this 6,260
chapter shall not be listed by the owner of the property under 6,261
Chapter 5711. of the Revised Code. 6,262
(E) The tax commissioner may adopt rules governing the 6,264
listing of the taxable property of public utilities and 6,265
interexchange telecommunications companies and the determination 6,266
of true value. 6,267
Sec. 5727.11. (A) As used in this section, section 6,276
5727.111, and division (C) of section 5727.15 of the Revised 6,277
Code, "production equipment" means all taxable steam, nuclear, 6,278
hydraulic, and other production plant equipment, and all taxable 6,279
station equipment that is located at a production plant. 6,280
(B) Except as provided in divisions (B), (C), (D), (E), 6,283
and (G)(F) of this section, the true value of all taxable 6,285
property required by division (A)(2) or (3) of section 5727.06 of 6,287
the Revised Code to be assessed by the tax commissioner shall be 6,288
determined by a method of valuation using cost as capitalized on 6,289
the public utility's books and records less composite annual 6,290
allowances as prescribed by the commissioner. If the 6,291
commissioner finds that application of this method will not 6,292
result in the determination of true value of the public utility's 6,293
150
taxable property, he THE COMMISSIONER may use another method of 6,295
valuation. The cost of property subject to a sale and leaseback 6,296
transaction is the cost of the property as capitalized on the 6,297
books and records of the public utility owning the property 6,298
immediately prior to the sale and leaseback transaction.
(C)(B) The true value of current gas stored underground is 6,300
the cost of that gas shown on the books and records of the public 6,301
utility on the thirty-first day of December of the preceding 6,302
year. 6,303
(D)(C) The true value of noncurrent gas stored underground 6,305
is thirty-five per cent of the cost of that gas shown on the 6,306
books and records of the public utility on the thirty-first day 6,307
of December of the preceding year. 6,308
(E) The (D)(1) EXCEPT AS PROVIDED IN DIVISION (D)(2) OF 6,311
THIS SECTION, THE true value of the production equipment of an 6,312
electric company and the true value of all taxable property of a 6,313
rural electric company is the equipment's or property's cost as 6,314
capitalized on the company's books and records less fifty per 6,315
cent of that cost as an allowance for depreciation and 6,316
obsolescence. The cost of equipment or property subject to a 6,317
sale and leaseback transaction is the cost of the property as 6,318
capitalized on the books and records of the public utility owning 6,319
the equipment or property immediately prior to the sale and 6,320
leaseback transaction. 6,321
(2) THE TRUE VALUE OF THE PRODUCTION PLANT EQUIPMENT OF AN 6,323
ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY PURCHASED OR PLACED 6,324
INTO SERVICE AFTER THE EFFECTIVE DATE OF THIS AMENDMENT IS THE 6,326
PURCHASE PRICE OF THE EQUIPMENT AS CAPITALIZED ON THE COMPANY'S 6,327
BOOKS AND RECORDS LESS COMPOSITE ANNUAL ALLOWANCES AS PRESCRIBED 6,328
BY THE TAX COMMISSIONER.
(F)(E) The true value of taxable property described in 6,330
division (A)(2) or (3) of section 5727.06 of the Revised Code 6,331
shall not include the allowance for funds used during 6,332
construction or interest during construction which THAT has been 6,333
151
capitalized on the public utility's books and records as part of 6,335
the total cost of the taxable property. THIS DIVISION SHALL NOT 6,336
APPLY TO A PRODUCTION PLANT PUT INTO SERVICE ON OR AFTER JANUARY 6,337
1, 2001, OR TO THE PRODUCTION EQUIPMENT OF AN ELECTRIC COMPANY OR 6,339
A RURAL ELECTRIC COMPANY PURCHASED BY AN ELECTRIC COMPANY OR A 6,340
RURAL ELECTRIC COMPANY.
(G)(F) The true value of watercraft owned or operated by a 6,342
water transportation company shall be determined by multiplying 6,344
the true value of the watercraft as determined under division 6,345
(B)(A) of this section by a fraction, the numerator of which is 6,347
the number of revenue-earning miles traveled by the watercraft in
the waters of this state and the denominator of which is the 6,348
number of revenue-earning miles traveled by the watercraft in all 6,349
waters.
(G) THE COST OF PROPERTY SUBJECT TO A SALE AND LEASEBACK 6,351
TRANSACTION IS THE COST OF THE PROPERTY AS CAPITALIZED ON THE 6,352
BOOKS AND RECORDS OF THE PUBLIC UTILITY OWNING THE PROPERTY 6,354
IMMEDIATELY PRIOR TO THE SALE AND LEASEBACK TRANSACTION.
Sec. 5727.111. The taxable property of each public 6,363
utility, except a railroad company, and of each interexchange 6,364
telecommunications company shall be assessed at the following 6,365
percentages of true value: 6,366
(A) Fifty per cent in the case OF THE TAXABLE TRANSMISSION 6,368
AND DISTRIBUTION PROPERTY of a rural electric company, AND 6,370
TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE PROPERTY; 6,371
(B) In the case of a telephone or telegraph company, the 6,374
percentage provided under division (E) of section 5711.22 of the 6,375
Revised Code TWENTY-FIVE PER CENT for taxable property first 6,377
subject to taxation in this state for tax year 1995 or 6,378
thereafter, and eighty-eight per cent for all other taxable
property;
(C) Eighty-eight per cent in the case of a natural gas or 6,380
pipe-line company; 6,381
(D) Eighty-eight per cent in the case of a water-works or 6,383
152
heating company; 6,384
(E) One hundred per cent in the case of the taxable 6,386
production equipment of an electric company; 6,387
(F) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION 6,390
(E)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of all 6,391
taxable personal THE TAXABLE TRANSMISSION AND DISTRIBUTION 6,392
property of an electric company, other than its production 6,394
equipment AND TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE
PROPERTY; 6,395
(2) PROPERTY LISTED AND ASSESSED UNDER DIVISIONS (B)(1) 6,397
AND (2) OF SECTION 5711.22 OF THE REVISED CODE SHALL CONTINUE TO 6,399
BE ASSESSED AT ONE HUNDRED PER CENT FOR PRODUCTION EQUIPMENT AND
EIGHTY-EIGHT PER CENT FOR ALL OTHER TAXABLE PROPERTY UNTIL 6,400
JANUARY 1, 2002. 6,401
(G) The percentage provided under division (E) of section 6,404
5711.22 of the Revised Code (F) TWENTY-FIVE PER CENT in the case 6,405
of an interexchange telecommunications company; 6,407
(H)(G) Twenty-five per cent in the case of a water 6,409
transportation company. 6,410
Sec. 5727.15. When all the taxable property of a public 6,419
utility is located in one taxing district, the tax commissioner 6,420
shall apportion the total taxable value thereof to that taxing 6,421
district. 6,422
When taxable property of a public utility is located in 6,424
more than one taxing district, the commissioner shall apportion 6,425
the total taxable value thereof among the taxing districts as 6,426
follows: 6,427
(A)(1) In the case of a telegraph, interexchange 6,429
telecommunications, or telephone company that owns miles of wire 6,430
in this state, the value apportioned to each taxing district 6,432
shall be the same percentage of the total value apportioned to 6,433
all taxing districts as the miles of wire owned by the company 6,434
within the taxing district are to the total miles of wire owned 6,435
by the company within this state;
153
(2) In the case of a telegraph, interexchange 6,437
telecommunications, or telephone company that does not own miles 6,438
of wire in this state, the value apportioned to each taxing 6,439
district shall be the same percentage of the total value 6,440
apportioned to all taxing districts as the cost of the taxable
property physically located in the taxing district is of the 6,441
total cost of all taxable property physically located in this 6,442
state.
(B) In the case of a railroad company: 6,444
(1) The taxable value of real and personal property not 6,446
used in railroad operations shall be apportioned according to its 6,447
situs; 6,448
(2) The taxable value of personal property used in 6,450
railroad operations shall be apportioned to each taxing district 6,451
in proportion to the miles of track and trackage rights, weighted 6,452
to reflect the relative use of such personal property in each 6,453
taxing district; 6,454
(3) The taxable value of real property used in railroad 6,456
operations shall be apportioned to each taxing district in 6,457
proportion to its relative value in each taxing district. 6,458
(C) In the case of an electric company: 6,460
(1) Seventy per cent of the THE TAXABLE value of all 6,462
production equipment and of all station equipment that is not 6,463
production equipment shall be apportioned to the taxing district 6,464
in which such property is physically located; and 6,465
(2) The remaining value of such property, together with 6,467
the value of all other taxable PERSONAL property, shall be 6,468
apportioned to each taxing district in the per cent PROPORTION 6,470
that the cost of all transmission and distribution THE TAXABLE 6,472
PERSONAL property physically located in the EACH taxing district 6,474
is of the total cost of all transmission and distribution TAXABLE 6,475
PERSONAL property physically located in this state. 6,476
(3) If an electric company's taxable value for the current 6,478
year includes the value of any production equipment at a plant at 6,479
154
which the initial cost of the plant's production equipment 6,480
exceeded one billion dollars, then prior to making the 6,481
apportionments required for that company by divisions (C)(1) and 6,482
(2) of this section, the tax commissioner shall do the following: 6,483
(a) Subtract four hundred twenty million dollars from the 6,485
total taxable value of the production equipment at that plant for 6,486
the current tax year. 6,487
(b) Multiply the difference thus obtained by a fraction, 6,489
the numerator of which is the portion of the taxable value of 6,490
that plant's production equipment included in the company's total 6,491
value for the current tax year, and the denominator of which is 6,492
the total taxable value of such equipment included in the total 6,493
taxable value of all electric companies for such year. 6,494
(c) Apportion the product thus obtained to taxing 6,496
districts in the manner prescribed in division (C)(2) of this 6,497
section. 6,498
(d) Deduct the amounts so apportioned from the taxable 6,500
value of the company's production equipment at the plant, prior 6,501
to making the apportionments required by divisions (C)(1) and (2) 6,502
of this section. 6,503
For purposes of division (C) of this section, "initial 6,505
cost" applies only to production equipment of plants placed in 6,506
commercial operation on or after January 1, 1987, and means the 6,507
cost of all production equipment at a plant for the first year 6,508
the plant's equipment was subject to taxation. 6,509
(D) In the case of all other public utilities, the value 6,511
of the property to be apportioned shall be apportioned to each 6,512
taxing district in proportion to the entire value of such 6,513
property within this state. 6,514
Sec. 5727.30. Each public utility, except ELECTRIC 6,523
COMPANIES, RURAL ELECTRIC COMPANIES, AND railroad companies, 6,524
shall be subject to an annual excise tax, as provided by sections 6,526
5727.31 to 5727.62 of the Revised Code, for the privilege of 6,527
owning property in this state or doing business in this state 6,528
155
during the twelve-month period next succeeding the period upon 6,529
which the tax is based. The tax shall be imposed against each
such public utility which THAT, on the first day of such 6,531
twelve-month period, owns property in this state or is doing 6,533
business in this state, and the lien for the tax, including any 6,535
penalties and interest accruing thereon, shall attach on such day 6,536
to the property of the public utility in this state.
Sec. 5727.31. (A) Each public utility, except railroad 6,545
companies, doing business or owning property in this state shall 6,546
SUBJECT TO THE TAX IMPOSED UNDER SECTION 5727.30 OF THE REVISED 6,547
CODE, annually, on or before the first day of August, SHALL file 6,548
with the tax commissioner a statement in such form as the 6,549
commissioner prescribes. 6,550
(B)(1) Annually, on or before the fifteenth day of October 6,552
of the current year, each public utility subject to the excise 6,553
taxes levied by this chapter whose estimated excise taxes for the 6,554
current year as based upon the statement required to be filed in 6,555
that year by division (A) of this section are, in the case of a 6,556
public utility other than a natural gas company, one thousand 6,557
dollars or more, or are, in the case of a natural gas company, 6,558
three hundred twenty-five thousand dollars or more, shall file 6,559
with the treasurer of state a report, in such form as the tax 6,560
commissioner prescribes, showing the amount of excise tax 6,561
estimated to be charged or levied pursuant to law for the current 6,562
year upon the basis of such annual statement, and shall remit a 6,563
portion of the estimated excise taxes shown to be due by the 6,564
report. The portion of the estimated excise taxes due at the 6,565
time the report is filed shall be one-third of its total excise 6,566
taxes estimated to be charged or levied for the current year 6,567
based upon the annual statement filed under division (A) of this 6,568
section. 6,569
(2) Annually, on or before the first day of March and 6,571
June, each public utility subject to the excise taxes levied by 6,572
this chapter whose excise taxes as based upon its last preceding 6,573
156
annual statement filed under division (A) of this section prior 6,574
to the first day of January were, in the case of a public utility 6,575
other than a natural gas company, one thousand dollars or more, 6,576
or were, in the case of a natural gas company, three hundred 6,577
twenty-five thousand dollars or more, shall file with the 6,578
treasurer of state a report, in such form as the tax commissioner 6,579
prescribes, showing the amount of excise tax charged or levied 6,580
pursuant to law upon the basis of such annual statement, and 6,581
shall remit a portion of the excise taxes shown to be due by each 6,582
such report. The portion of the excise taxes due at the time 6,583
each such report is filed shall be one-third of its total excise 6,584
taxes so charged or levied based upon such annual statement. 6,585
(C) Any public utility subject to the excise taxes imposed 6,587
by this chapter SECTION 5727.30 OF THE REVISED CODE whose tax as 6,589
certified under section 5727.38 of the Revised Code in a year 6,590
equals or exceeds the amount specified for that year in section 6,591
5727.311 of the Revised Code shall make the payments required 6,592
under this section in the second ensuing and each succeeding year 6,593
in the manner prescribed by section 5727.311 of the Revised Code, 6,594
except as otherwise prescribed by that section. 6,595
(D)(1) For purposes of this section, a report required to 6,597
be filed under division (B) of this section is considered filed 6,598
when it is received by the treasurer of state. 6,599
(2) For purposes of this section and sections 5727.311 and 6,601
5727.42 of the Revised Code, remittance of an excise tax required 6,602
to be made under this section is considered to be made when the 6,603
remittance is received by the treasurer of state, or when 6,604
credited to an account designated by the treasurer of state for 6,605
the receipt of tax remittances. 6,606
Sec. 5727.311. (A) Any public utility subject to an 6,615
excise tax imposed by this chapter SECTION 5727.30 OF THE REVISED 6,616
CODE whose tax as certified by the tax commissioner under section 6,618
5727.38 of the Revised Code in the year indicated in the 6,619
following schedule equals or exceeds the amount indicated for 6,620
157
that year in the schedule FIFTY THOUSAND DOLLARS shall make each 6,622
payment required under division (B) of section 5727.31 of the 6,623
Revised Code for the second ensuing and each succeeding year by 6,624
electronic funds transfer as prescribed by division (B) of this 6,625
section. Year for which 6,626
tax was certified 1992 1993 and 6,627
thereafter
Amount of tax $100,000 $50,000 6,628
certified
If the tax certified by the tax commissioner in each of two 6,630
consecutive years beginning with 1993 is less than fifty thousand 6,631
dollars, the public utility is relieved of the requirement to 6,632
remit taxes by electronic funds transfer for the year that next 6,633
follows the second of the consecutive years in which the tax 6,634
certified is less than fifty thousand dollars, and is relieved of 6,635
that requirement for each succeeding year unless the tax 6,636
certified in a subsequent year equals or exceeds fifty thousand 6,637
dollars. The tax commissioner shall notify each public utility 6,638
required to remit taxes by electronic funds transfer of the 6,639
public utility's obligation to do so, shall maintain an updated 6,640
list of those public utilities, and shall timely certify the list 6,641
and any additions thereto or deletions therefrom to the treasurer 6,642
of state. Failure by the tax commissioner to notify a public 6,643
utility subject to this section to remit taxes by electronic 6,644
funds transfer does not relieve the public utility of its 6,645
obligation to remit taxes by electronic funds transfer. 6,646
(B) Public utilities required by this section to remit 6,648
periodic payments by electronic funds transfer shall remit such 6,649
payments to the treasurer of state in the manner prescribed by 6,650
rules adopted by the treasurer under section 113.061 of the 6,651
Revised Code. The payment of public utility excise taxes by 6,652
electronic funds transfer does not affect a public utility's 6,653
obligation to file the annual statement and periodic reports in 6,654
158
the manner and at the times prescribed by section 5727.31 of the 6,655
Revised Code. 6,656
A public utility required by this section to remit taxes by 6,658
electronic funds transfer may apply to the treasurer of state in 6,659
the manner prescribed by the treasurer OF STATE to be excused 6,660
from that requirement. The treasurer of state may excuse the 6,661
public utility from remittance by electronic funds transfer for 6,662
good cause shown for the period of time requested by the public 6,663
utility or for a portion of that period. The treasurer OF STATE 6,664
shall notify the tax commissioner and the public utility of the 6,665
treasurer's TREASURER OF STATE'S decision as soon as is 6,666
practicable. 6,667
(C) If a public utility required by this section to remit 6,669
taxes by electronic funds transfer remits those taxes by some 6,670
means other than by electronic funds transfer as prescribed by 6,671
this section and the rules adopted by the treasurer of state, and 6,672
the treasurer OF STATE determines that the failure to remit taxes 6,673
as required was not due to reasonable cause or was due to willful 6,674
neglect, the treasurer OF STATE may impose an additional charge 6,675
on the public utility equal to five per cent of the amount of the 6,676
taxes required to be paid by electronic funds transfer, but not 6,677
to exceed five thousand dollars. Any additional charge imposed 6,678
under this section is in addition to any other penalty or charge 6,679
imposed under this chapter, and shall be considered as revenue 6,680
arising from excise taxes imposed by this chapter. 6,681
No additional charge shall be assessed under this division 6,683
against a public utility that has been notified of its obligation 6,684
to remit taxes under this section and that remits its first two 6,685
tax payments after such notification by some means other than 6,686
electronic funds transfer. The additional charge may be assessed 6,687
upon the remittance of any subsequent tax payment that the public 6,688
utility remits by some means other than electronic funds 6,689
transfer. 6,690
Sec. 5727.32. The statement required by section 5727.31 of 6,699
159
the Revised Code for the purpose of the public utility excise tax 6,700
shall contain: 6,701
(A) The name of the company; 6,703
(B) The nature of the company, whether a person, 6,705
association, or corporation, and under the laws of what state or 6,706
country organized; 6,707
(C) The location of its principal office; 6,709
(D) The name and post-office address of the president, 6,711
secretary, auditor, treasurer, and superintendent or general 6,712
manager; 6,713
(E) The name and post-office address of the chief officer 6,715
or managing agent of the company in this state; 6,716
(F) The amount of the excise taxes paid or to be paid with 6,718
the reports made during the current calendar year as provided by 6,719
section 5727.31 of the Revised Code; 6,720
(G) In the case of telegraph and telephone companies: 6,722
(1) The gross receipts from all sources, whether messages, 6,724
telephone tolls, rentals, or otherwise, for business done within 6,725
this state, including all sums earned or charged, whether 6,726
actually received or not, for the year ending on the thirtieth 6,727
day of June, and the company's proportion of gross receipts for 6,728
business done by it within this state in connection with other 6,729
companies, firms, corporations, persons, or associations, but 6,730
excluding all of the following: 6,731
(a) All of the receipts derived wholly from interstate 6,733
business or business done for or with the federal government; 6,734
(b) The receipts of amounts billed on behalf of other 6,736
entities; 6,737
(c) The receipts from sales to other telephone companies 6,739
for resale; 6,740
(d) For the year ending June 30, 1990, and each subsequent 6,742
year, receipts RECEIPTS from sales to providers of 6,743
telecommunications service for resale, receipts from incoming or 6,745
outgoing wide area transmission service or wide area transmission 6,746
160
type service, including eight hundred or eight-hundred-type 6,747
service, and receipts from private communications service. 6,748
As used in this division, "receipts from sales to other 6,750
telephone companies for resale" and "receipts from sales to 6,751
providers of telecommunications service for resale" include, but 6,752
are not limited to, receipts of carrier access charges. "Carrier 6,753
access charges" means compensation paid to the taxpayer telephone 6,754
company by another telephone company or by a provider of 6,755
telecommunications service for the use of the taxpayer's 6,756
facilities to originate or terminate telephone calls or 6,757
telecommunications service. 6,758
(2) The total gross receipts for such period from business 6,760
done within this state. 6,761
(H) In the case of all public utilities, except ELECTRIC 6,763
COMPANIES, RURAL ELECTRIC COMPANIES, telegraph COMPANIES, and 6,765
telephone companies:
(1) The gross receipts of the company, actually received, 6,767
from all sources for business done within this state for the year 6,768
next preceding the first day of May, including the company's 6,769
proportion of gross receipts for business done by it within this 6,770
state in connection with other companies, firms, corporations, 6,771
persons, or associations, but excluding all of the following: 6,772
(a) Receipts from interstate business or business done for 6,774
the federal government; 6,775
(b) Receipts from sales to other public utilities for 6,777
resale, provided such other public utility is required to file a 6,778
statement pursuant to section 5727.31 of the Revised Code; 6,779
(c) For the year ending April 30, 1990, and each 6,781
subsequent year, receipts from the transmission or delivery of 6,782
electricity to or for a rural electric company, provided that the 6,783
electricity that has been so transmitted or delivered is for 6,784
resale by the rural electric company; 6,785
(d) Receipts of an electric company, derived from the 6,787
provision of electricity and other services to a qualified former 6,788
161
owner of the production facilities which generated the 6,789
electricity from which those receipts were derived. As used in 6,790
this division, a "qualified former owner" means a person who 6,791
meets both of the following conditions: 6,792
(i) On or before October 11, 1991, the person had sold to 6,794
an electric company part of the production facility at which the 6,795
electricity is generated, and, for at least twenty years prior to 6,796
that sale, the facility was used to generate electricity, but it 6,797
was not owned in whole or in part during that period by an 6,798
electric company. 6,799
(ii) At the time the electric company provided the 6,801
electricity or other services for which the exclusion is claimed, 6,802
the person, or a successor or assign of the person, owned not 6,803
less than a twenty per cent ownership of the production facility 6,804
and the rights to not less than twenty per cent of the production 6,805
of that facility; and the person, or a successor or assign of the 6,806
person, engaged primarily in a business other than providing 6,807
electricity to others. 6,808
(e) Receipts of a natural gas company of amounts billed on 6,810
behalf of other entities. Transportation and billing and 6,811
collection fees charged to other entities shall be included in 6,812
the gross receipts of a natural gas company. 6,813
(2) The total gross receipts of such company for such 6,815
period in this state from business done within the state. 6,816
The reports required by section 5727.31 of the Revised Code 6,818
shall contain: 6,819
(a) The name and principal mailing address of the company; 6,821
(b) The total amount of the gross receipts excise taxes 6,823
charged or levied as based upon its last preceding annual 6,824
statement filed prior to the first day of January of the year in 6,825
which such report is filed; 6,826
(c) The amount of the excise taxes due with the report as 6,828
provided by section 5727.31 of the Revised Code. 6,829
Sec. 5727.33. (A) For the purpose of computing the public 6,838
162
utility excise tax, the tax commissioner shall ascertain and 6,839
determine the entire gross receipts actually received from all 6,840
sources, excluding the receipts described in divisions (B), (C), 6,841
AND (D), and (E) of this section, of each electric, rural 6,842
electric, natural gas, pipe-line, water-works, heating, and water 6,843
transportation company for business done within this state for 6,844
the year ending on the thirtieth day of April, and of each 6,845
telegraph and telephone company for business done within this 6,846
state for the year ending on the thirtieth day of June. 6,847
(B) In ascertaining and determining the gross receipts of 6,849
each of the companies named in this section, the commissioner 6,850
shall exclude all of the following: 6,851
(1) All receipts derived wholly from interstate business; 6,853
(2) All receipts derived wholly from business done for or 6,855
with the federal government; 6,856
(3) For the year ending April 30, 1990, and each 6,858
subsequent year, all receipts derived wholly from the 6,859
transmission or delivery of electricity to or for a rural 6,860
electric company, provided that the electricity that has been so 6,861
transmitted or delivered is for resale by the rural electric 6,862
company; 6,863
(4) All receipts from the sale of merchandise; 6,865
(5)(4) All receipts from sales to other public utilities, 6,867
except railroad, telegraph, and telephone companies, for resale, 6,868
provided the other public utility is required to file a statement 6,869
pursuant to section 5727.31 of the Revised Code. 6,870
(C) In ascertaining and determining the gross receipts of 6,872
a telephone company, the commissioner shall exclude all of the 6,874
following: 6,875
(1) For the year ending June 30, 1988, and each subsequent 6,877
year, receipts RECEIPTS of amounts billed on behalf of other 6,878
entities; 6,879
(2) For the year ending June 30, 1988, and each subsequent 6,881
year, receipts RECEIPTS from sales to other telephone companies 6,882
163
for resale, as defined in division (G) of section 5727.32 of the 6,883
Revised Code; 6,884
(3) For the year ending June 30, 1990, and each subsequent 6,886
year, receipts RECEIPTS from incoming or outgoing wide area 6,887
transmission service or wide area transmission type service, 6,889
including eight hundred or eight-hundred-type service; 6,890
(4) For the year ending June 30, 1990, and each subsequent 6,892
year, receipts RECEIPTS from private communications service as 6,893
described in division (AA)(2) of section 5739.01 of the Revised 6,895
Code;
(5) For the year ending June 30, 1990, and each subsequent 6,897
year, receipts RECEIPTS from sales to providers of 6,898
telecommunications service for resale, as defined in division (G) 6,900
of section 5727.32 of the Revised Code. 6,901
(D) In ascertaining and determining the gross receipts of 6,903
an electric company, the commissioner shall exclude receipts 6,904
derived from the provision of electricity and other services to a 6,905
qualified former owner of the production facilities which 6,906
generated the electricity from which those receipts were derived. 6,907
As used in this division, a "qualified former owner" means a 6,908
person who meets both of the following conditions: 6,909
(1) On or before October 11, 1991, the person had sold to 6,911
an electric company part of the production facility at which the 6,912
electricity is generated, and, for at least twenty years prior to 6,913
that sale, the facility was used to generate electricity, but it 6,914
was not owned in whole or in part during that period by an 6,915
electric company. 6,916
(2) At the time the electric company provided the 6,918
electricity or other services for which the exclusion is claimed, 6,919
the person, or a successor or assign of the person, owned not 6,920
less than a twenty per cent ownership of the production facility 6,921
and the rights to not less than twenty per cent of the production 6,922
of that facility. 6,923
(E) In ascertaining and determining the gross receipts of 6,925
164
a natural gas company, the commissioner shall exclude receipts of 6,926
amounts billed on behalf of other entities. Transportation and 6,927
billing and collection fees charged to other entities shall be 6,928
included in the gross receipts of a natural gas company. 6,929
The amount ascertained by the commissioner under this 6,931
section, less a deduction of twenty-five thousand dollars, shall 6,932
be the gross receipts of such companies for business done within 6,933
this state for that year. 6,934
Sec. 5727.38. On or before the first Monday of November, 6,943
annually, the tax commissioner shall assess an excise tax against 6,944
each public utility, except ELECTRIC COMPANIES, RURAL ELECTRIC 6,945
COMPANIES, AND railroad companies. The tax shall be computed by 6,946
multiplying the gross receipts as determined by the commissioner 6,947
under section 5727.33 of the Revised Code by six and 6,949
three-fourths per cent in the case of pipe-line companies and
four and three-fourths per cent in the case of all other 6,950
companies. The minimum tax for any such company for owning 6,951
property or doing business in this state shall be ten FIFTY 6,952
dollars. The assessment shall be certified to the taxpayer and 6,954
treasurer of state.
Sec. 5727.42. (A) The treasurer of state shall maintain a 6,963
list of all excise taxes levied and payments made pursuant to 6,964
this chapter SECTION 5727.30 OF THE REVISED CODE. The treasurer 6,965
of state shall collect and the taxpayer shall pay all taxes and 6,967
any penalties thereon. Payments may be made by mail, in person, 6,968
by electronic funds transfer if required to do so by section 6,969
5727.311 of the Revised Code, or by any other means authorized by 6,970
the treasurer of state. The treasurer of state may adopt rules 6,971
concerning the methods and timeliness of payment. 6,972
(B) Each tax bill issued pursuant to this section shall 6,974
separately reflect the taxes due, due date, and any other 6,975
information considered necessary. Except as otherwise provided 6,976
in division (F) of this section, the last day on which payment 6,977
may be made without penalty shall be at least twenty but not more 6,978
165
than thirty days from the date of mailing the tax bill. The 6,979
treasurer of state shall mail the tax bill, and the mailing 6,980
thereof shall be prima-facie evidence of receipt thereof by the 6,981
taxpayer. 6,982
(C) The treasurer of state shall refund taxes as provided 6,984
in this section, but no refund shall be made to a taxpayer having 6,985
a delinquent claim certified pursuant to this section that 6,986
remains unpaid. The treasurer of state may consult the attorney 6,987
general regarding such claims. 6,988
(D) Within twenty days after receipt of any excise tax 6,990
assessment certified to him THE TREASURER OF STATE, the treasurer 6,992
of state shall:
(1) Ascertain the difference between the total taxes shown 6,994
on such assessment and the sum of all advance ESTIMATED payments, 6,996
exclusive of any penalties thereon, previously made for that 6,997
year.
(2) If the difference is a deficiency, the treasurer of 6,999
state shall issue a tax bill. 7,000
(3) If the difference is an excess, the treasurer of state 7,002
shall certify the name of the taxpayer and the amount to be 7,003
refunded to the director of budget and management for payment to 7,004
the taxpayer. 7,005
If the taxpayer has a deficiency for one tax year and an 7,007
excess for another tax year, or any combination thereof for more 7,008
than two years, the treasurer of state may determine the net 7,009
result and, depending on such result, proceed to mail a tax bill 7,010
or certify a refund. 7,011
(E) If a taxpayer fails to pay all taxes on or before the 7,013
due date shown on the tax bill, or fails to make an advance 7,014
ESTIMATED payment on or before the due date prescribed in 7,016
division (B) of section 5727.31 of the Revised Code, but makes 7,017
payment within ten calendar days of such date, the treasurer of 7,018
state shall add a penalty equal to five per cent of the amount 7,019
that should have been timely paid. If payment is not made within 7,020
166
ten days of such date, the treasurer of state shall add a penalty 7,021
equal to fifteen per cent of the amount that should have been 7,022
timely paid. The treasurer of state shall prepare a delinquent 7,023
claim for each tax bill on which penalties were added and certify 7,024
such claims to the attorney general and tax commissioner. The 7,025
attorney general shall proceed to collect the delinquent taxes 7,026
and penalties thereon in the manner prescribed by law and notify 7,027
the treasurer of state and tax commissioner of all collections. 7,028
(F) The last day on which a natural gas company that is 7,030
not required to make payments under division (B) of section 7,031
5727.31 of the Revised Code may pay its taxes without penalty 7,032
shall be the fifteenth day of March of the year following the 7,033
year in which the commissioner is required to certify his THE 7,034
assessment of the company's tax under section 5727.38 of the 7,035
Revised Code. The tax due date shall be reflected on the tax 7,036
bill. 7,037
Sec. 5727.45. Four and two-tenths per cent of all excise 7,046
taxes and penalties collected under sections 5727.01 to 5727.62 7,047
of the Revised Code shall be credited to the local government 7,048
fund for distribution in accordance with section 5747.50 of the 7,049
Revised Code, six-tenths of one per cent shall be credited to the 7,050
local government revenue assistance fund for distribution in 7,052
accordance with section 5747.61 of the Revised Code, and
ninety-five and two-tenths per cent shall be credited to the 7,053
general revenue fund. 7,054
On or before the first day of December, annually, the tax 7,056
commissioner shall certify to the treasurer of state the amounts 7,057
to be credited to the local government fund and local government 7,058
revenue assistance fund from the general revenue fund to ensure 7,059
that the sum of the amounts credited to the local government fund 7,060
and local government revenue assistance fund for the calendar 7,061
year equals the sum that would have been credited during that 7,062
year if the credit authorized by section 5727.391 of the Revised 7,063
Code did not exist. The treasurer shall credit any such 7,064
167
additional amounts to the two funds not later than the fifth day 7,065
of December, annually. 7,066
Sec. 5727.47. A copy of each assessment certified pursuant 7,079
to section 5727.23, 5727.231, or 5727.38 of the Revised Code 7,080
shall be mailed to the public utility, and its mailing shall be 7,081
prima-facie evidence of its receipt by the public utility to 7,082
which it is addressed. If a public utility objects to any 7,083
assessment certified to it pursuant to such sections, it may file 7,084
a petition for reassessment with the tax commissioner. The 7,085
petition must be made in writing, signed by the authorized agent 7,086
of the utility having knowledge of the facts, and filed with the 7,087
commissioner, in person or by certified mail, within thirty days 7,088
from the date that the assessment was mailed. If the petition is 7,089
filed by certified mail, the date of the United States postmark 7,090
placed on the sender's receipt by the postal employee to whom the 7,091
petition is presented shall be treated as the date of filing. A 7,092
true copy of the assessment objected to shall be attached to the 7,093
petition and shall be incorporated by reference into the 7,094
petition, but the failure to attach a copy of the assessment and 7,095
incorporate it by reference does not invalidate the petition. The 7,097
petition also shall indicate the utility's objections, but
additional objections may be raised in writing if received prior 7,098
to the date shown on the final determination by the commissioner. 7,099
Notwithstanding the fact that a petition has been filed, 7,101
the tax with respect to the assessment objected to shall be paid 7,102
as required by law. The acceptance of the tax payment by the 7,103
treasurer of state or any county treasurer shall not prejudice 7,104
any claim for taxes on final determination by the commissioner or 7,105
final decision by the board of tax appeals or any court. 7,106
Upon receipt of a properly filed petition, the commissioner 7,108
shall notify the treasurer of state or the auditor of each county 7,109
to which the assessment objected to has been certified. 7,110
Unless the petitioner waives a hearing, the commissioner 7,112
shall assign a time and place for the hearing on the petition and 7,113
168
notify the petitioner of the time and place of the hearing by 7,114
personal service or certified mail, but the commissioner may 7,115
continue the hearing from time to time if necessary. 7,116
The commissioner may make such correction to the assessment 7,118
as he THE COMMISSIONER finds proper. The commissioner shall 7,119
serve a copy of his THE COMMISSIONER'S final determination on the 7,121
petitioner by personal service or certified mail, and his THE 7,122
COMMISSIONER'S decision in the matter shall be final, subject to 7,124
appeal as provided in section 5717.02 of the Revised Code. The 7,125
commissioner also shall transmit a copy of his THE final 7,126
determination to the treasurer of state or applicable county 7,127
auditor. In the absence of any further appeal, or when a 7,128
decision of the board of tax appeals or of any court to which the 7,129
decision has been appealed becomes final, the commissioner shall 7,130
notify the public utility and, as appropriate, the treasurer of 7,131
state who shall proceed under section 5727.42 of the Revised 7,132
Code, or the applicable county auditor who shall proceed under 7,133
section 5727.471 of the Revised Code. The notification is not 7,134
subject to further appeal. 7,135
Sec. 5727.53. The taxes, fees, and penalties provided by 7,144
sections 5727.01 to 5727.62, inclusive, of the Revised Code, THIS 7,145
CHAPTER THAT ARE REMITTED TO THE TREASURER OF STATE may be 7,147
recovered by an action brought in the name of the state in the
court of common pleas of Franklin County COUNTY, or of any county 7,149
in which such public utility is doing business, or in which the 7,150
line of any street, suburban, or interurban railroad company or 7,151
railroad company is located, and such court of common pleas shall 7,152
have jurisdiction of such THE action regardless of the amount 7,153
involved. The attorney general, on request of the tax 7,154
commissioner, shall institute such action in the court of common 7,155
pleas of Franklin County COUNTY or of any of such counties the 7,156
commissioner directs. In any such action it shall be sufficient 7,157
to allege that the tax, fee, or penalty sought to be recovered 7,158
stands charged on the delinquent duplicate of the treasurer of 7,159
169
state, and that the same has been unpaid for a period of thirty 7,160
days after having been placed thereon. Sums recovered in any 7,161
such action shall be paid into the state treasury to the credit 7,162
of the general revenue fund IN THE SAME MANNER AS THE TAX. 7,163
Sec. 5727.60. If a public utility required to file a 7,172
report with the tax commissioner by sections 5727.02 to 5727.62, 7,173
inclusive, of the Revised Code, PERSON fails to make such FILE A 7,175
report, it shall be subject to a penalty of ten dollars per day 7,177
for each day's omission after the time limited for making such
report WITHIN THE TIME PRESCRIBED BY SECTION 5727.08 OR 5727.31 7,178
OF THE REVISED CODE, INCLUDING ANY EXTENSIONS OF TIME GRANTED BY 7,180
THE TAX COMMISSIONER, A PENALTY OF FIFTY DOLLARS PER MONTH, NOT 7,181
TO EXCEED FIVE HUNDRED DOLLARS, MAY BE IMPOSED FOR EACH MONTH OR 7,182
FRACTION OF A MONTH ELAPSING BETWEEN THE DUE DATE OF THE REPORT, 7,183
INCLUDING ANY EXTENSIONS, AND THE DATE THE REPORT WAS FILED. THE 7,184
PENALTY UNDER THIS SECTION FOR FAILING TO FILE A REPORT REQUIRED 7,185
BY SECTION 5727.08 OF THE REVISED CODE SHALL BE PAID INTO THE 7,186
STATE GENERAL REVENUE FUND. IF THE PENALTY IS NOT PAID WITHIN
FIFTEEN DAYS AFTER NOTICE OF THE PENALTY IS MAILED TO THE PERSON 7,187
WHO FAILED TO TIMELY FILE THE REPORT, THE TAX COMMISSIONER SHALL 7,188
CERTIFY THE PENALTY AS A CLAIM TO THE ATTORNEY GENERAL FOR 7,189
COLLECTION. THE PENALTY UNDER THIS SECTION FOR FAILING TO FILE 7,190
THE REPORT REQUIRED BY SECTION 5727.31 OF THE REVISED CODE SHALL 7,191
BE DEPOSITED INTO THE STATE TREASURY IN THE SAME MANNER AS THE 7,192
TAX IS DEPOSITED, AND THE COMMISSIONER MAY COLLECT THE PENALTY BY 7,194
ASSESSMENT PURSUANT TO SECTION 5727.38 OF THE REVISED CODE. THE 7,195
TAX COMMISSIONER MAY ABATE THIS PENALTY IN FULL OR IN PART. 7,196
Sec. 5727.61. Every public utility required by law to make 7,205
returns, statements, or reports to the tax commissioner UNDER 7,206
SECTIONS 5727.01 TO 5727.62 OF THE REVISED CODE shall file 7,208
therewith, in such form as the commissioner prescribes, an
affidavit subscribed and sworn to by a person or officer having 7,209
knowledge of the facts setting forth that such public utility has 7,210
not, during the preceding year, except as permitted by sections 7,211
170
3517.082, 3599.03, and 3599.031 of the Revised Code, directly or 7,212
indirectly paid, used or offered, consented, or agreed to pay or 7,213
use any of its money or property for or in aid of or opposition 7,214
to a political party, a candidate for election or nomination to 7,216
public office, or a political action committee, legislative 7,217
campaign fund, or organization that supports or opposes any such 7,218
candidate or in any manner used any of its money or property for 7,219
any partisan political purpose whatever, or for the reimbursement 7,220
or indemnification of any person for money or property so used. 7,221
Such forms of affidavit as the commissioner prescribes shall be 7,222
attached to or made a part of the return, statement, or report 7,223
required to be made by such public utility under sections 5727.01 7,224
to 5727.62 of the Revised Code. 7,225
Sec. 5727.72. No officer, employee, or agent of a 7,234
telegraph or telephone company PERSON SUBJECT TO THIS CHAPTER 7,235
shall refuse to attend before a lawful board of appraisers and 7,236
assessors THE DEPARTMENT OF TAXATION when required to do so, or 7,237
refuse to bring with him THE OFFICER, EMPLOYEE, OR AGENT and 7,239
submit for inspection any books or papers of such company PERSON 7,240
in his THE OFFICER'S, EMPLOYEE'S, OR AGENT'S possession, custody, 7,242
or control, or refuse to answer any questions put to him THE 7,243
OFFICER, EMPLOYEE, OR AGENT concerning the organization, 7,245
business, or property of such company PERSON.
Sec. 5727.80. AS USED IN SECTIONS 5727.80 TO 5727.95 OF 7,247
THE REVISED CODE: 7,249
(A) "ELECTRIC DISTRIBUTION COMPANY" MEANS EITHER OF THE 7,252
FOLLOWING:
(1) A PERSON WHO DISTRIBUTES ELECTRICITY THROUGH A METER 7,254
OF AN END USER IN THIS STATE; 7,255
(2) THE END USER OF ELECTRICITY IN THIS STATE, IF THE END 7,258
USER OBTAINS ELECTRICITY THAT IS NOT DISTRIBUTED OR TRANSMITTED 7,259
TO THE END USER BY AN ELECTRIC DISTRIBUTION COMPANY THAT IS 7,260
REQUIRED TO REMIT THE TAX IMPOSED BY SECTION 5727.81 OF THE 7,262
REVISED CODE. "ELECTRIC DISTRIBUTION COMPANY" DOES NOT INCLUDE 7,263
171
THE END USER OF ELECTRICITY IN THIS STATE WHO SELF-GENERATES 7,264
ELECTRICITY THAT IS USED DIRECTLY BY THAT END USER ON SITE. 7,265
(B) "KILOWATT-HOUR" MEANS ONE THOUSAND WATT HOURS OF 7,268
ELECTRICITY.
(C) "METER OF AN END USER IN THIS STATE" MEANS THE METER 7,271
USED TO MEASURE THE LAST KILOWATT-HOUR DISTRIBUTED BY AN ELECTRIC 7,272
DISTRIBUTION COMPANY TO A LOCATION IN THIS STATE, A METER LOCATED 7,273
OUTSIDE OF THIS STATE THAT IS USED TO MEASURE THE LAST 7,274
KILOWATT-HOUR CONSUMED FOR THE REPORTING PERIOD AT A LOCATION IN 7,276
THIS STATE, OR, IF NO METER IS USED, THE ESTIMATED KILOWATT-HOURS 7,277
DISTRIBUTED IN THIS STATE.
(D) "PERSON" HAS THE SAME MEANING AS IN SECTION 5701.01 OF 7,280
THE REVISED CODE, BUT ALSO INCLUDES A MUNICIPAL ELECTRIC UTILITY. 7,283
(E) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 7,286
CORPORATION THAT OWNS OR OPERATES A SYSTEM FOR THE DISTRIBUTION 7,287
OF ELECTRICITY.
(F) "QUALIFIED END USER" MEANS AN END USER OF ELECTRICITY 7,289
THAT PURCHASES MORE THAN THREE MILLION KILOWATT-HOURS OF 7,291
ELECTRICITY FOR A CALENDAR DAY FOR USE AS A RAW MATERIAL IN A 7,292
MANUFACTURING PROCESS THAT FEATURES AN ELECTROCHEMICAL REACTION
IN WHICH ELECTRONS FROM DIRECT CURRENT ELECTRICITY REMAIN A PART 7,293
OF THE PRODUCT BEING MANUFACTURED. 7,294
Sec. 5727.81. (A) ON AND AFTER MAY 1, 2001, FOR THE 7,298
PURPOSE OF RAISING REVENUE FOR PUBLIC EDUCATION AND STATE AND 7,299
LOCAL GOVERNMENT OPERATIONS, AN EXCISE TAX IS HEREBY LEVIED AND 7,300
IMPOSED ON AN ELECTRIC DISTRIBUTION COMPANY, AT THE FOLLOWING
RATES PER KILOWATT-HOUR OF ELECTRICITY DISTRIBUTED EACH MONTH BY 7,301
THE COMPANY THROUGH A METER OF AN END USER IN THIS STATE: 7,302
KILOWATT-HOURS DISTRIBUTED TO RATE PER KILOWATT-HOUR 7,306
AN END USER 7,307
FOR THE FIRST 2,000 $.00465 7,308
FOR THE NEXT 2,001 TO 15,000 $.00419 7,309
FOR 15,001 AND ABOVE $.00301 7,310
THE ELECTRIC DISTRIBUTION COMPANY SHALL BASE THE MONTHLY 7,313
172
TAX ON A THIRTY-DAY AVERAGE OF TOTAL KILOWATT-HOURS DISTRIBUTED 7,314
TO AN END USER THROUGH THE METER OF THE END USER. THE ELECTRIC 7,316
DISTRIBUTION COMPANY SHALL PAY THE TAX TO THE TREASURER OF STATE 7,317
IN ACCORDANCE WITH SECTION 5727.82 OF THE REVISED CODE. ONLY THE 7,318
DISTRIBUTION OF ELECTRICITY THROUGH A METER OF AN END USER IN 7,319
THIS STATE SHALL BE USED BY THE ELECTRIC DISTRIBUTION COMPANY TO 7,320
COMPUTE THE AMOUNT OR ESTIMATED AMOUNT OF TAX DUE. 7,321
(B) EACH ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX 7,324
IMPOSED BY THIS SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES: 7,325
(1) THE ELECTRICITY IS DISTRIBUTED BY THE COMPANY THROUGH 7,327
A METER OF AN END USER IN THIS STATE; 7,328
(2) THE COMPANY IS DISTRIBUTING ELECTRICITY THROUGH A 7,330
METER LOCATED IN ANOTHER STATE, BUT THE ELECTRICITY IS CONSUMED 7,331
IN THIS STATE IN THE MANNER PRESCRIBED BY RULE OF THE TAX 7,332
COMMISSIONER; 7,333
(3) THE COMPANY IS DISTRIBUTING ELECTRICITY IN THIS STATE 7,335
WITHOUT THE USE OF A METER, BUT THE ELECTRICITY IS CONSUMED IN 7,336
THIS STATE AS ESTIMATED AND IN THE MANNER PRESCRIBED BY RULE OF 7,337
THE TAX COMMISSIONER. 7,338
(C) THE TAX IMPOSED BY THIS SECTION DOES NOT APPLY TO THE 7,341
DISTRIBUTION OF ANY KILOWATT-HOURS OF ELECTRICITY TO THE FEDERAL 7,342
GOVERNMENT OR TO AN END USER FOR ANY DAY THE END USER IS A 7,343
QUALIFIED END USER.
Sec. 5727.82. (A)(1) EXCEPT AS PROVIDED IN DIVISIONS 7,346
(A)(2) AND (D) OF THIS SECTION, BY THE TWENTIETH DAY OF EACH 7,347
MONTH, EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX 7,348
IMPOSED BY SECTION 5727.81 OF THE REVISED CODE SHALL FILE WITH 7,350
THE TREASURER OF STATE A RETURN AS PRESCRIBED BY THE TAX 7,351
COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF TAX DUE 7,353
FOR THE PRECEDING MONTH. THE FIRST PAYMENT OF THIS TAX SHALL BE
MADE ON OR BEFORE JUNE 20, 2001. 7,354
(2) IF THE ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY 7,356
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE IS A 7,359
MUNICIPAL ELECTRIC UTILITY, IT MAY RETAIN IN ITS GENERAL FUND 7,360
173
THAT PORTION OF THE TAX ON THE KILOWATT-HOURS DISTRIBUTED TO END 7,361
USERS LOCATED WITHIN THE BOUNDARIES OF THE MUNICIPAL CORPORATION. 7,362
HOWEVER, THE MUNICIPAL ELECTRIC UTILITY SHALL MAKE PAYMENT IN 7,363
ACCORDANCE WITH DIVISION (A)(1) OF THIS SECTION OF THE TAX DUE ON 7,365
THE KILOWATT-HOURS DISTRIBUTED TO END USERS LOCATED OUTSIDE THE 7,366
BOUNDARIES OF THE MUNICIPAL CORPORATION. 7,367
(3) THE RETURN SHALL BE SIGNED BY THE COMPANY REQUIRED TO 7,369
FILE IT, OR AN AUTHORIZED EMPLOYEE, OFFICER, OR AGENT OF THE 7,370
COMPANY. THE TREASURER SHALL MARK ON THE RETURN THE DATE IT WAS 7,371
RECEIVED AND INDICATE PAYMENT OR NONPAYMENT OF THE TAX SHOWN TO 7,372
BE DUE ON THE RETURN. THE TREASURER IMMEDIATELY SHALL TRANSMIT 7,373
ALL RETURNS TO THE TAX COMMISSIONER. THE RETURN SHALL BE DEEMED 7,374
FILED WHEN RECEIVED BY THE TREASURER. 7,375
(B) ANY ELECTRIC DISTRIBUTION COMPANY REQUIRED BY THIS 7,378
SECTION TO FILE A RETURN WHO FAILS TO FILE AND PAY IT WITHIN THE 7,379
PERIOD PRESCRIBED SHALL PAY AN ADDITIONAL CHARGE OF FIFTY DOLLARS 7,380
OR TEN PER CENT OF THE TAX REQUIRED TO BE PAID FOR THE REPORTING 7,381
PERIOD, WHICHEVER IS GREATER. THE TAX COMMISSIONER MAY COLLECT 7,382
THE ADDITIONAL CHARGE BY ASSESSMENT PURSUANT TO SECTION 5727.89 7,383
OF THE REVISED CODE. THE COMMISSIONER MAY ABATE ALL OR A PORTION 7,386
OF THE ADDITIONAL CHARGE AND MAY ADOPT RULES GOVERNING SUCH 7,387
ABATEMENTS.
(C) IF ANY TAX DUE IS NOT PAID TIMELY IN ACCORDANCE WITH 7,390
THIS SECTION, THE ELECTRIC DISTRIBUTION COMPANY LIABLE FOR THE 7,391
TAX SHALL PAY INTEREST, CALCULATED AT THE RATE PER ANNUM 7,392
PRESCRIBED BY SECTION 5703.47 OF THE REVISED CODE, FROM THE DATE 7,394
THE TAX PAYMENT WAS DUE TO THE DATE OF PAYMENT OR TO THE DATE AN 7,395
ASSESSMENT IS ISSUED, WHICHEVER OCCURS FIRST. INTEREST SHALL BE 7,396
PAID IN THE SAME MANNER AS THE TAX, AND THE COMMISSIONER MAY 7,397
COLLECT THE INTEREST BY ASSESSMENT PURSUANT TO SECTION 5727.89 OF 7,399
THE REVISED CODE.
(D) NOT LATER THAT THE TENTH DAY OF EACH MONTH, A 7,401
QUALIFIED END USER SHALL REPORT IN WRITING TO THE ELECTRIC 7,402
DISTRIBUTION COMPANY THAT DISTRIBUTES ELECTRICITY TO THE END USER 7,403
174
THE KILOWATT-HOURS THAT WERE CONSUMED AS A QUALIFIED END USER FOR 7,404
THE PRIOR MONTH AND THE NUMBER OF DAYS, IF ANY, ON WHICH THE END 7,405
USER WAS NOT A QUALIFIED END USER. FOR EACH CALENDAR DAY THE END 7,406
USER WAS NOT A QUALIFIED END USER, THE END USER SHALL REPORT IN 7,407
WRITING TO THE ELECTRIC DISTRIBUTION COMPANY THE NUMBER OF 7,408
KILOWATT-HOURS USED ON THAT DAY, AND THE ELECTRIC DISTRIBUTION 7,409
COMPANY SHALL PAY THE TAX IMPOSED UNDER SECTION 5727.81 OF THE 7,410
REVISED CODE ON EACH KILOWATT-HOUR THAT WAS NOT DISTRIBUTED TO A 7,411
QUALIFIED END USER. THE ELECTRIC DISTRIBUTION COMPANY MAY RELY 7,412
IN GOOD FAITH ON A QUALIFIED END USER'S REPORT FILED UNDER THIS 7,413
DIVISION, AND IF IT IS DETERMINED THAT THE END USER WAS NOT A 7,414
QUALIFIED END USER FOR ANY CALENDAR DAY OR THE QUANTITY OF 7,415
ELECTRICITY USED BY THE QUALIFIED END USER WAS OVERSTATED, THE 7,416
TAX COMMISSIONER SHALL ASSESS AND COLLECT ANY TAX IMPOSED UNDER 7,417
SECTION 5727.81 OF THE REVISED CODE DIRECTLY FROM THE QUALIFIED 7,419
END USER. ON REQUEST BY THE COMMISSIONER, EACH END USER
REPORTING TO AN ELECTRIC DISTRIBUTION COMPANY THAT IT IS A 7,420
QUALIFIED END USER SHALL PROVIDE DOCUMENTATION THAT ESTABLISHES 7,421
THE VOLUME OF ELECTRICITY CONSUMED DAILY BY THE QUALIFIED END 7,422
USER. 7,423
Sec. 5727.83. (A) IF THE TOTAL AMOUNT OF TAX REQUIRED TO 7,425
BE REMITTED BY AN ELECTRIC DISTRIBUTION COMPANY TO THIS STATE 7,426
UNDER SECTION 5727.82 OF THE REVISED CODE FOR ANY CALENDAR YEAR 7,428
EQUALS OR EXCEEDS FIFTY THOUSAND DOLLARS, THE COMPANY SHALL REMIT 7,429
EACH MONTHLY TAX PAYMENT IN THE SECOND ENSUING AND EACH 7,430
SUCCEEDING TAX YEAR BY ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY 7,431
DIVISIONS (B) AND (C) OF THIS SECTION. FOR THE FIRST YEAR THE 7,432
TAX LEVIED BY SECTION 5727.81 OF THE REVISED CODE IS IMPOSED, ANY 7,434
ELECTRIC DISTRIBUTION COMPANY THAT, PRIOR TO THE EFFECTIVE DATE 7,435
OF THIS SECTION, WAS AN ELECTRIC COMPANY OR A RURAL ELECTRIC 7,436
COMPANY REQUIRED TO REMIT TAXES BY ELECTRONIC FUNDS TRANSFER 7,437
UNDER SECTION 5727.311 OF THE REVISED CODE SHALL REMIT THE TAX 7,438
IMPOSED BY SECTION 5727.81 OF THE REVISED CODE BY ELECTRONIC 7,439
FUNDS TRANSFER IN ACCORDANCE WITH THIS SECTION. 7,440
175
IF THE TAX PAYMENT FOR EACH OF TWO CONSECUTIVE YEARS IS 7,442
LESS THAN FIFTY THOUSAND DOLLARS, THE COMPANY IS RELIEVED OF THE 7,444
REQUIREMENT TO REMIT TAXES BY ELECTRONIC FUNDS TRANSFER FOR THE 7,445
YEAR THAT NEXT FOLLOWS THE SECOND OF THE CONSECUTIVE YEARS IN 7,446
WHICH THE TAX PAYMENT IS LESS THAN FIFTY THOUSAND DOLLARS, AND IS 7,447
RELIEVED OF THAT REQUIREMENT FOR EACH SUCCEEDING YEAR UNLESS THE 7,448
TAX PAYMENT IN A SUBSEQUENT YEAR EQUALS OR EXCEEDS FIFTY THOUSAND 7,449
DOLLARS.
THE TAX COMMISSIONER SHALL NOTIFY EACH ELECTRIC 7,451
DISTRIBUTION COMPANY REQUIRED TO REMIT TAXES BY ELECTRONIC FUNDS 7,453
TRANSFER OF THE COMPANY'S OBLIGATION TO DO SO, SHALL MAINTAIN AN 7,454
UPDATED LIST OF THOSE COMPANIES, AND SHALL TIMELY CERTIFY TO THE 7,455
TREASURER OF STATE THE LIST AND ANY ADDITIONS THERETO OR 7,456
DELETIONS THEREFROM. FAILURE BY THE TAX COMMISSIONER TO NOTIFY A 7,457
COMPANY SUBJECT TO THIS SECTION TO REMIT TAXES BY ELECTRONIC 7,458
FUNDS TRANSFER DOES NOT RELIEVE THE COMPANY OF ITS OBLIGATION TO 7,459
REMIT TAXES IN THAT MANNER.
(B) AN ELECTRIC DISTRIBUTION COMPANY REQUIRED BY THIS 7,461
SECTION TO REMIT PAYMENTS BY ELECTRONIC FUNDS TRANSFER SHALL 7,463
REMIT SUCH PAYMENTS TO THE TREASURER OF STATE IN THE MANNER 7,464
PRESCRIBED BY RULES ADOPTED BY THE TREASURER OF STATE UNDER 7,465
SECTION 113.061 OF THE REVISED CODE, AND ON OR BEFORE THE DATES 7,466
SPECIFIED UNDER SECTION 5727.82 OF THE REVISED CODE. THE PAYMENT
OF TAXES BY ELECTRONIC FUNDS TRANSFER DOES NOT AFFECT A COMPANY'S 7,468
OBLIGATION TO FILE THE MONTHLY RETURN AS REQUIRED UNDER SECTION 7,469
5727.82 OF THE REVISED CODE.
(C) AN ELECTRIC DISTRIBUTION COMPANY REQUIRED BY THIS 7,471
SECTION TO REMIT TAXES BY ELECTRONIC FUNDS TRANSFER MAY APPLY TO 7,473
THE TREASURER OF STATE IN THE MANNER PRESCRIBED BY THE TREASURER 7,474
OF STATE TO BE EXCUSED FROM THAT REQUIREMENT. THE TREASURER OF 7,475
STATE MAY EXCUSE THE COMPANY FROM REMITTANCE BY ELECTRONIC FUNDS 7,476
TRANSFER FOR GOOD CAUSE SHOWN FOR THE PERIOD OF TIME REQUESTED BY 7,477
THE COMPANY OR FOR A PORTION OF THAT PERIOD. THE TREASURER OF 7,478
STATE SHALL NOTIFY THE TAX COMMISSIONER AND THE COMPANY OF THE 7,479
176
TREASURER OF STATE'S DECISION AS SOON AS IS PRACTICABLE.
(D) IF AN ELECTRIC DISTRIBUTION COMPANY REQUIRED BY THIS 7,481
SECTION TO REMIT TAXES BY ELECTRONIC FUNDS TRANSFER REMITS THOSE 7,483
TAXES BY SOME MEANS OTHER THAN BY ELECTRONIC FUNDS TRANSFER AS 7,484
PRESCRIBED BY THIS SECTION AND THE RULES ADOPTED BY THE TREASURER 7,485
OF STATE, AND THE TREASURER OF STATE DETERMINES THAT SUCH FAILURE 7,486
WAS NOT DUE TO REASONABLE CAUSE OR WAS DUE TO WILLFUL NEGLECT, 7,487
THE TREASURER OF STATE SHALL NOTIFY THE TAX COMMISSIONER OF THE 7,488
FAILURE TO REMIT BY ELECTRONIC FUNDS TRANSFER AND SHALL PROVIDE 7,489
THE COMMISSIONER WITH ANY INFORMATION USED IN MAKING THAT 7,490
DETERMINATION. THE TAX COMMISSIONER MAY COLLECT AN ADDITIONAL 7,491
CHARGE BY ASSESSMENT IN THE MANNER PRESCRIBED BY SECTION 5727.89 7,492
OF THE REVISED CODE. THE ADDITIONAL CHARGE SHALL EQUAL FIVE PER 7,493
CENT OF THE AMOUNT OF THE TAXES REQUIRED TO BE PAID BY ELECTRONIC 7,494
FUNDS TRANSFER, BUT SHALL NOT EXCEED FIVE THOUSAND DOLLARS. ANY 7,495
ADDITIONAL CHARGE ASSESSED UNDER THIS SECTION IS IN ADDITION TO 7,496
ANY OTHER PENALTY OR CHARGE IMPOSED UNDER THIS CHAPTER, AND SHALL 7,497
BE CONSIDERED AS REVENUE ARISING FROM THE TAX IMPOSED UNDER THIS 7,498
CHAPTER. THE TAX COMMISSIONER MAY ABATE ALL OR A PORTION OF SUCH 7,499
A CHARGE AND MAY ADOPT RULES GOVERNING SUCH ABATEMENTS. 7,500
NO ADDITIONAL CHARGE SHALL BE ASSESSED UNDER THIS DIVISION 7,502
AGAINST AN ELECTRIC DISTRIBUTION COMPANY THAT HAS BEEN NOTIFIED 7,503
OF ITS OBLIGATION TO REMIT TAXES UNDER THIS SECTION AND THAT 7,505
REMITS ITS FIRST TWO TAX PAYMENTS AFTER SUCH NOTIFICATION BY SOME 7,506
MEANS OTHER THAN ELECTRONIC FUNDS TRANSFER. THE ADDITIONAL 7,507
CHARGE MAY BE ASSESSED UPON THE REMITTANCE OF ANY SUBSEQUENT TAX 7,508
PAYMENT THAT THE COMPANY REMITS BY SOME MEANS OTHER THAN 7,509
ELECTRONIC FUNDS TRANSFER.
Sec. 5727.84. (A) AS USED IN THIS SECTION AND SECTIONS 7,511
5727.85 AND 5727.86 OF THE REVISED CODE: 7,513
(1) "SCHOOL DISTRICT" MEANS A CITY, LOCAL, OR EXEMPTED 7,515
VILLAGE SCHOOL DISTRICT. 7,516
(2) "JOINT VOCATIONAL SCHOOL DISTRICT" MEANS A JOINT 7,518
VOCATIONAL SCHOOL DISTRICT CREATED UNDER SECTION 3311.16 OF THE 7,519
177
REVISED CODE, AND INCLUDES A COOPERATIVE EDUCATION SCHOOL 7,521
DISTRICT CREATED UNDER SECTION 3311.52 OR 3311.521 OF THE REVISED 7,522
CODE.
(3) "TAXING DISTRICT" MEANS ANY TAXING UNIT, AS DEFINED IN 7,524
SECTION 5705.01 OF THE REVISED CODE, EXCLUDING SCHOOL DISTRICTS 7,525
AND JOINT VOCATIONAL SCHOOL DISTRICTS. 7,526
(4) "STATE EDUCATION AID" MEANS THE SUM OF THE STATE BASIC 7,528
AID AND STATE SPECIAL EDUCATION AID AMOUNTS COMPUTED FOR A SCHOOL 7,529
DISTRICT UNDER DIVISIONS (A) AND (B) OF SECTION 3317.022 OF THE 7,530
REVISED CODE.
(5) "ADJUSTED TOTAL TAXABLE VALUE" HAS THE SAME MEANING AS 7,532
IN SECTION 3317.02 OF THE REVISED CODE. 7,533
(6) "NON-TRANSMISSION/DISTRIBUTION PROPERTY" MEANS TAXABLE 7,535
PROPERTY DESCRIBED IN DIVISION (A) OR (E) OF SECTION 5727.111 OF 7,537
THE REVISED CODE, INCLUDING NUCLEAR FUEL MATERIALS AND ASSEMBLIES
AND EXCLUDING TRANSMISSION AND DISTRIBUTION TAXABLE PROPERTY, 7,538
APPORTIONED TO A SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 7,539
DISTRICT, OR TAXING DISTRICT PURSUANT TO SECTION 5727.15 OF THE 7,540
REVISED CODE.
(7) "1998 ASSESSMENT RATE" MEANS THE PERCENTAGE OF TRUE 7,542
VALUE AT WHICH NONTRANSMISSION/DISTRIBUTION PROPERTY WAS ASSESSED 7,543
FOR TAXATION FOR TAX YEAR 1998. 7,544
(8) "STATE EDUCATION AID OFFSET" MEANS THE SUM OF THE 7,546
AMOUNTS CERTIFIED FOR EACH SCHOOL DISTRICT UNDER DIVISION (D) OF 7,547
THIS SECTION. 7,548
(9) "FIXED-SUM LEVY" MEANS A TAX LEVIED ON PROPERTY AT 7,550
WHATEVER RATE IS REQUIRED TO PRODUCE A SPECIFIED AMOUNT OF TAX 7,551
MONEY OR TO PAY DEBT CHARGES, AND INCLUDES SCHOOL DISTRICT 7,552
EMERGENCY LEVIES IMPOSED PURSUANT TO SECTION 5705.194 OF THE 7,553
REVISED CODE.
(10) "FIXED-RATE LEVY" MEANS ANY TAX LEVIED ON PROPERTY 7,555
OTHER THAN A FIXED-SUM LEVY. 7,556
(B) ALL MONEY COLLECTED UNDER THIS CHAPTER ARISING FROM 7,558
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE SHALL BE 7,559
178
CREDITED AS FOLLOWS: 7,561
(1) SIXTY-THREE PER CENT, PLUS THE AMOUNT OF THE STATE 7,563
EDUCATION AID OFFSET, SHALL BE CREDITED TO THE GENERAL REVENUE 7,564
FUND, EXCEPT THAT: 7,565
(a) FOUR AND TWO-TENTHS PER CENT OF THE SIXTY-THREE PER 7,567
CENT SHALL BE CREDITED TO THE LOCAL GOVERNMENT FUND, FOR 7,568
DISTRIBUTION IN ACCORDANCE WITH SECTION 5747.50 OF THE REVISED 7,569
CODE; AND
(b) SIX-TENTHS OF ONE PER CENT OF THE SIXTY-THREE PER CENT 7,571
SHALL BE CREDITED TO THE LOCAL GOVERNMENT REVENUE ASSISTANCE 7,573
FUND, FOR DISTRIBUTION IN ACCORDANCE WITH SECTION 5747.61 OF THE 7,574
REVISED CODE.
(2) ELEVEN AND ONE-TENTH PER CENT SHALL BE CREDITED TO THE 7,576
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 7,577
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 7,578
PAYMENTS DESCRIBED IN SECTION 5727.86 OF THE REVISED CODE; 7,579
(3) TWENTY-FIVE AND NINE-TENTHS PER CENT, LESS AN AMOUNT 7,581
EQUAL TO THE STATE EDUCATION AID OFFSET, SHALL BE CREDITED TO THE 7,582
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 7,583
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 7,584
PAYMENTS DESCRIBED IN SECTION 5727.85 OF THE REVISED CODE. 7,585
(C) NOT LATER THAN JUNE 1, 2002, THE TAX COMMISSIONER 7,587
SHALL CERTIFY TO THE DEPARTMENT OF EDUCATION, FOR EACH SCHOOL 7,588
DISTRICT, THE TAXABLE VALUE OF ITS NON-TRANSMISSION/DISTRIBUTION 7,589
PROPERTY FOR TAX YEAR 2001 DETERMINED AS IF THAT PROPERTY HAD 7,590
BEEN ASSESSED AT THE 1998 ASSESSMENT RATE, RATHER THAN AT 7,591
TWENTY-FIVE PER CENT OF TRUE VALUE. 7,592
(D) NOT LATER THAN JULY 31, 2002, THE DEPARTMENT OF 7,594
EDUCATION SHALL DETERMINE, FOR EACH SCHOOL DISTRICT, THE 7,596
DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 7,597
DIVISION (D)(2) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 7,598
DIVISION (D)(1) OF THIS SECTION, AND CERTIFY THAT AMOUNT TO THE 7,599
DIRECTOR OF BUDGET AND MANAGEMENT: 7,600
(1) THE STATE EDUCATION AID COMPUTED FOR THE DISTRICT FOR 7,602
179
FISCAL YEAR 2003; 7,603
(2) THE STATE EDUCATION AID THAT WOULD HAVE BEEN COMPUTED 7,605
FOR THE DISTRICT FOR FISCAL YEAR 2003 IF THE DISTRICT'S ADJUSTED 7,606
TOTAL TAXABLE VALUE REFLECTED THE AMOUNT CERTIFIED UNDER DIVISION 7,607
(C) OF THIS SECTION. 7,608
Sec. 5727.85. (A) AS USED IN THIS SECTION: 7,610
(1) "INITIAL PROPERTY TAX LOSS" MEANS THE SUM OF THE 7,612
AMOUNTS COMPUTED FOR A SCHOOL DISTRICT UNDER DIVISIONS (D)(1) AND 7,613
(2) OF THIS SECTION. 7,614
(2) "CURRENT NET REVENUE LOSS" MEANS THE AMOUNT COMPUTED 7,616
FOR A SCHOOL DISTRICT UNDER DIVISION (C)(2) OF THIS SECTION. 7,617
(3) "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX 7,619
(ALL ITEMS, ALL URBAN CONSUMERS) PREPARED BY THE BUREAU OF LABOR 7,620
STATISTICS OF THE UNITED STATES DEPARTMENT OF LABOR. 7,621
(4) "SCHOOL DISTRICT EMERGENCY LEVIES" MEANS TAX LEVIES 7,623
IMPOSED PURSUANT TO SECTION 5705.194 OF THE REVISED CODE. 7,624
(B) NOT LATER THAN JUNE 1, 2002, 2003, 2004, 2005, AND 7,626
2006, THE TAX COMMISSIONER SHALL CERTIFY TO THE DEPARTMENT OF 7,628
EDUCATION ALL OF THE FOLLOWING FOR EACH SCHOOL DISTRICT: 7,629
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,631
DESCRIBED IN DIVISION (B)(1)(b) FROM THE AMOUNT DESCRIBED IN 7,632
DIVISION (B)(1)(a) OF THIS SECTION. 7,634
(a) THE TAXES THAT WOULD HAVE BEEN CHARGED AND PAYABLE 7,636
AGAINST NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR 7,637
TAXATION FOR THE PRECEDING TAX YEAR FROM FIXED-RATE LEVIES 7,638
DETERMINED AS IF THAT PROPERTY HAD BEEN ASSESSED AT THE 1998 7,639
ASSESSMENT RATE RATHER THAN TWENTY-FIVE PER CENT OF TRUE VALUE; 7,640
(b) THE TAXES CHARGED AND PAYABLE AGAINST 7,642
NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR TAXATION FOR 7,643
THE PRECEDING TAX YEAR FROM FIXED-RATE LEVIES. 7,644
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,646
DESCRIBED IN DIVISION (B)(2)(b) FROM THE AMOUNT DESCRIBED IN 7,647
DIVISION (B)(2)(a) OF THIS SECTION, AND THEN SUBTRACTING FROM 7,650
THAT DIFFERENCE THE AMOUNT DESCRIBED IN DIVISION (B)(2)(c) OF 7,651
180
THIS SECTION:
(a) THE TAXES THAT WOULD HAVE BEEN CHARGED AND PAYABLE 7,653
AGAINST NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR 7,654
TAXATION FOR THE PRECEDING TAX YEAR FROM FIXED-SUM LEVIES 7,655
DETERMINED AS IF THAT PROPERTY HAD BEEN ASSESSED AT THE 1998 7,656
ASSESSMENT RATE RATHER THAN TWENTY-FIVE PER CENT OF TRUE VALUE; 7,657
(b) THE TAXES CHARGED AND PAYABLE AGAINST 7,659
NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR TAXATION FOR 7,660
THE PRECEDING TAX YEAR FROM FIXED-SUM LEVIES; 7,661
(c) FOR EACH FIXED-SUM LEVY IMPOSED BY THE DISTRICT IN THE 7,663
PRECEDING TAX YEAR, THE TOTAL TAXABLE VALUE OF THE DISTRICT IN 7,664
THAT YEAR MULTIPLIED BY ONE-FOURTH OF ONE MILL. 7,666
(3) THE TAXABLE VALUE OF NON-TRANSMISSION/DISTRIBUTION 7,668
PROPERTY FOR THE PRECEDING TAX YEAR DETERMINED AS IF THAT 7,669
PROPERTY HAD BEEN ASSESSED AT THE 1998 ASSESSMENT RATE RATHER 7,670
THAN TWENTY-FIVE PER CENT OF TRUE VALUE. 7,671
(C) FOR FISCAL YEARS 2003, 2004, 2005, 2006, AND 2007, THE 7,673
DEPARTMENT OF EDUCATION SHALL DETERMINE BOTH OF THE FOLLOWING FOR 7,674
EACH SCHOOL DISTRICT: 7,675
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,677
DESCRIBED IN DIVISION (C)(1)(b) FROM THE AMOUNT DESCRIBED IN 7,678
DIVISION (C)(1)(a) OF THIS SECTION: 7,680
(a) THE STATE EDUCATION AID COMPUTED FOR THE DISTRICT FOR 7,682
THE FISCAL YEAR ON THE BASIS OF THE ADJUSTED TOTAL TAXABLE VALUE; 7,683
(b) THE STATE EDUCATION AID THAT WOULD BE COMPUTED FOR THE 7,685
DISTRICT FOR THE FISCAL YEAR IF THE DISTRICT'S ADJUSTED TOTAL 7,686
TAXABLE VALUE REFLECTED THE AMOUNT CERTIFIED UNDER DIVISION 7,688
(B)(3) OF THIS SECTION.
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,690
COMPUTED UNDER DIVISION (C)(1) OF THIS SECTION FROM THE SUM OF 7,691
THE AMOUNTS CERTIFIED UNDER DIVISIONS (B)(1) AND (2) OF THIS 7,692
SECTION. THE DEPARTMENT OF EDUCATION SHALL CERTIFY THE AMOUNT SO 7,693
DETERMINED TO THE DIRECTOR OF BUDGET AND MANAGEMENT NOT LATER 7,695
THAN THE THIRTY-FIRST DAY OF JULY FOLLOWING RECEIPT OF THE TAX 7,696
181
COMMISSIONER'S CERTIFICATION UNDER DIVISION (B) OF THIS SECTION. 7,697
(D) NOT LATER THAN JUNE 1, 2002, THE TAX COMMISSIONER 7,699
SHALL DETERMINE THE SUM OF THE AMOUNTS DESCRIBED IN DIVISIONS 7,701
(D)(1) AND (2) OF THIS SECTION FOR EACH SCHOOL DISTRICT: 7,702
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,704
DESCRIBED IN DIVISION (D)(1)(b) FROM THE AMOUNT DESCRIBED IN 7,705
DIVISION (D)(1)(a) OF THIS SECTION. 7,707
(a) THE SUM OF (i) THE TAXES CHARGED AND PAYABLE AGAINST 7,710
NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR TAXATION FOR 7,711
TAX YEAR 1998 FROM FIXED-RATE LEVIES, EXCLUDING THE PORTION OF 7,712
SUCH TAXES CHARGED AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES, 7,713
AND (ii) THE AVERAGE OF THE ANNUAL TAXES CHARGED AND PAYABLE 7,715
AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES LISTED FOR TAXATION
FOR TAX YEARS 1996, 1997, AND 1998 FROM FIXED-RATE LEVIES; 7,716
(b) THE SUM OF (i) THE TAXES THAT WOULD HAVE BEEN CHARGED 7,719
AND PAYABLE AGAINST NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED 7,720
FOR TAXATION FOR TAX YEAR 1998 FROM FIXED-RATE LEVIES DETERMINED 7,721
AS IF THAT PROPERTY HAD BEEN ASSESSED AT TWENTY-FIVE PER CENT 7,722
RATHER THAN THE 1998 ASSESSMENT RATE, EXCLUDING THE PORTION OF 7,723
SUCH TAXES CHARGED AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES, 7,724
AND (ii) THE AVERAGE OF THE ANNUAL TAXES THAT WOULD HAVE BEEN 7,726
CHARGED AND PAYABLE AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES
LISTED FOR TAXATION FOR TAX YEARS 1996, 1997, AND 1998 FROM 7,727
FIXED-RATE LEVIES DETERMINED AS IF THAT PROPERTY HAD BEEN 7,728
ASSESSED AT TWENTY-FIVE PER CENT RATHER THAN THE 1998 ASSESSMENT 7,729
RATE.
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,731
DESCRIBED IN DIVISION (D)(2)(b) FROM THE AMOUNT DESCRIBED IN 7,732
DIVISION (D)(2)(a) OF THIS SECTION: 7,734
(a) THE SUM OF (i) THE TAXES CHARGED AND PAYABLE AGAINST 7,737
NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR TAXATION FOR
TAX YEAR 1998 FROM FIXED-SUM LEVIES, EXCLUDING THE PORTION OF 7,739
SUCH TAXES CHARGED AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES, 7,740
AND (ii) THE AVERAGE OF THE ANNUAL TAXES CHARGED AND PAYABLE 7,741
182
AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES LISTED FOR TAXATION 7,744
FOR TAX YEARS 1996, 1997, AND 1998 FROM FIXED-SUM LEVIES; 7,746
(b) THE SUM OF (i) THE TAXES THAT WOULD HAVE BEEN CHARGED 7,749
AND PAYABLE AGAINST NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED
FOR TAXATION FOR TAX YEAR 1998 FROM FIXED-SUM LEVIES DETERMINED 7,751
AS IF THAT PROPERTY HAD BEEN ASSESSED AT TWENTY-FIVE PER CENT 7,752
RATHER THAN THE 1998 ASSESSMENT RATE, EXCLUDING THE PORTION OF 7,753
SUCH TAXES CHARGED AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES, 7,754
AND (ii) THE AVERAGE OF THE ANNUAL TAXES THAT WOULD HAVE BEEN 7,756
CHARGED AND PAYABLE AGAINST NUCLEAR FUEL MATERIALS AND ASSEMBLIES
LISTED FOR TAXATION FOR TAX YEARS 1996, 1997, AND 1998 FROM 7,757
FIXED-SUM LEVIES DETERMINED AS IF THAT PROPERTY HAD BEEN ASSESSED 7,758
AT TWENTY-FIVE PER CENT RATHER THAN THE 1998 ASSESSMENT RATE. 7,759
FOR THE PURPOSE OF DIVISIONS (D)(1) AND (2) OF THIS 7,761
SECTION, TAXES CHARGED AND PAYABLE SHALL BE COMPUTED ON THE BASIS 7,762
OF THE PRELIMINARY ASSESSMENT ISSUED PURSUANT TO SECTION 5727.23 7,763
OF THE REVISED CODE FOR THE TAX YEARS SPECIFIED. 7,765
(E)(1) NOT LATER THAN THE THIRTY-FIRST DAY OF JULY OF 2007 7,768
THROUGH 2016, THE DEPARTMENT OF EDUCATION SHALL DETERMINE ALL OF 7,769
THE FOLLOWING FOR EACH SCHOOL DISTRICT: 7,770
(a) THE DIFFERENCE OBTAINED BY SUBTRACTING THE DISTRICT'S 7,772
STATE EDUCATION AID COMPUTED FOR FISCAL YEAR 2003 FROM THE 7,773
DISTRICT'S STATE EDUCATION AID COMPUTED FOR THE CURRENT FISCAL 7,774
YEAR;
(b) THE INFLATION-ADJUSTED PROPERTY TAX LOSS FOR THE 7,776
PRECEDING CALENDAR YEAR. THE INFLATION-ADJUSTED PROPERTY TAX 7,777
LOSS EQUALS THE INITIAL PROPERTY TAX LOSS PLUS THE PRODUCT 7,778
OBTAINED BY MULTIPLYING THE INITIAL PROPERTY TAX LOSS BY THE 7,779
CUMULATIVE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FROM 7,781
JANUARY 1, 2002, TO THE THIRTY-FIRST DAY OF DECEMBER OF THE YEAR 7,782
PRECEDING THE DETERMINATION.
(c) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,784
COMPUTED UNDER DIVISION (E)(1)(a) FROM THE AMOUNT COMPUTED UNDER 7,786
DIVISION (E)(1)(b) OF THIS SECTION. 7,787
183
(2) IF THE AMOUNT COMPUTED UNDER DIVISION (E)(1)(c) OF 7,790
THIS SECTION IS GREATER THAN OR EQUAL TO ZERO, NO PAYMENT SHALL 7,791
BE MADE TO THE SCHOOL DISTRICT FROM THE PROPERTY TAX REPLACEMENT 7,792
FUND FOR THE CURRENT OR ANY ENSUING FISCAL YEAR. 7,793
(3) IF THE AMOUNT COMPUTED UNDER DIVISION (E)(1)(c) OF 7,796
THIS SECTION IS LESS THAN ZERO, THE DEPARTMENT OF EDUCATION SHALL 7,797
DETERMINE THE DISTRICT'S CURRENT NET REVENUE LOSS IN THE SAME 7,798
MANNER AS CURRENT NET REVENUE LOSS IS DETERMINED UNDER DIVISION 7,799
(C)(2) OF THIS SECTION, EXCEPT THAT THE DEPARTMENT SHALL SUBTRACT 7,800
FROM THE CURRENT NET REVENUE LOSS THE AMOUNT OF TAXES CHARGED 7,802
FROM SCHOOL DISTRICT EMERGENCY LEVIES, AS CERTIFIED BY THE TAX
COMMISSIONER. THE DEPARTMENT OF EDUCATION SHALL CERTIFY THE 7,804
RESULTING AMOUNT TO THE DIRECTOR OF BUDGET AND MANAGEMENT NOT 7,805
LATER THAN THE THIRTY-FIRST DAY OF JULY OF EACH FISCAL YEAR 7,806
BEGINNING WITH FISCAL YEAR 2008 AND ENDING WITH FISCAL YEAR 2017. 7,807
THE TAX COMMISSIONER SHALL CERTIFY THE QUANTITIES DESCRIBED IN 7,808
DIVISIONS (B)(1), (2), AND (3) OF THIS SECTION TO THE DEPARTMENT 7,809
OF EDUCATION AS OTHERWISE REQUIRED BY DIVISION (B) OF THIS 7,810
SECTION, BUT FOR THE TAX YEAR PRECEDING THE FISCAL YEAR FOR WHICH 7,811
THE COMPUTATION IS MADE UNDER THIS DIVISION. THE TAX 7,813
COMMISSIONER ALSO SHALL CERTIFY THE TAXES CHARGED FROM SCHOOL 7,814
DISTRICT EMERGENCY LEVIES. 7,815
(F) FOR FISCAL YEARS 2003 THROUGH 2016, THE DIRECTOR OF 7,818
BUDGET AND MANAGEMENT SHALL PAY FROM THE SCHOOL DISTRICT PROPERTY 7,819
TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX FUND IN 7,820
THE PROPER COUNTY TREASURY ONE-HALF OF THE AMOUNT CERTIFIED FOR 7,821
THAT YEAR UNDER DIVISIONS (C)(2) AND (E)(3) OF THIS SECTION ON OR 7,823
BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER
DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED CODE. THE 7,824
COUNTY TREASURER SHALL DISTRIBUTE SUCH AMOUNTS TO THE PROPER 7,825
SCHOOL DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS 7,826
TAXES, AND THE SCHOOL DISTRICT SHALL APPORTION THE AMOUNTS SO 7,827
RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE 7,828
AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 7,829
184
(G) NOT LATER THAN THE THIRTY-FIRST DAY OF JULY OF 2002 7,831
THROUGH 2016, THE TAX COMMISSIONER SHALL DETERMINE, FOR EACH 7,833
JOINT VOCATIONAL SCHOOL DISTRICT, THE SUM OF THE AMOUNTS 7,834
DESCRIBED IN DIVISIONS (B)(1) AND (2) OF THIS SECTION, AND 7,835
CERTIFY THAT SUM TO THE DIRECTOR OF BUDGET AND MANAGEMENT. THE 7,836
DIRECTOR SHALL PAY FROM THE SCHOOL DISTRICT PROPERTY TAX 7,838
REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX FUND IN THE 7,840
PROPER COUNTY TREASURY ONE-HALF OF THE AMOUNT SO CERTIFIED FOR
THAT YEAR ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 7,842
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 7,843
REVISED CODE. THE COUNTY TREASURER SHALL DISTRIBUTE SUCH AMOUNTS 7,844
TO THE PROPER JOINT VOCATIONAL SCHOOL DISTRICT AS IF THEY HAD 7,846
BEEN LEVIED AND COLLECTED AS TAXES, AND THE JOINT VOCATIONAL
SCHOOL DISTRICT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG ITS 7,848
FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED 7,849
AND COLLECTED AS TAXES.
(H) IF, IN ANY FISCAL YEAR FOR WHICH PAYMENTS ARE MADE 7,851
UNDER DIVISION (F) OR (G) OF THIS SECTION, THE AMOUNT CREDITED TO 7,853
THE SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE 7,854
AMOUNT SO DISTRIBUTED, THE DIRECTOR OF BUDGET AND MANAGEMENT 7,855
SHALL DISTRIBUTE THE EXCESS AMONG SCHOOL DISTRICTS AND JOINT 7,857
VOCATIONAL SCHOOL DISTRICTS. THE AMOUNT DISTRIBUTED TO EACH 7,858
DISTRICT SHALL BEAR THE SAME PROPORTION TO THE EXCESS REMAINING 7,859
IN THE FUND AS THE ADM OF THE DISTRICT BEARS TO THE ADM OF ALL OF 7,860
THE DISTRICTS. FOR THE PURPOSE OF THIS DIVISION, "ADM" MEANS THE 7,861
FORMULA ADM IN THE CASE OF A SCHOOL DISTRICT, AND THE AVERAGE 7,863
DAILY MEMBERSHIP REPORTED UNDER SECTION 3317.03 OF THE REVISED 7,864
CODE IN THE CASE OF A JOINT VOCATIONAL SCHOOL DISTRICT. 7,865
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 7,867
MANAGEMENT, THE EXCESS REMAINING IN THE SCHOOL DISTRICT PROPERTY 7,868
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 7,869
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 7,870
CREDIT OF THE FUND. 7,871
AMOUNTS RECEIVED BY A SCHOOL DISTRICT OR JOINT VOCATIONAL 7,873
185
SCHOOL DISTRICT UNDER THIS DIVISION SHALL BE USED EXCLUSIVELY FOR 7,875
CAPITAL IMPROVEMENTS.
(I) IF ALL OR A PART OF THE TERRITORY OF A SCHOOL DISTRICT 7,878
OR JOINT VOCATIONAL SCHOOL DISTRICT IS MERGED WITH OR TRANSFERRED 7,879
TO ANOTHER DISTRICT, THE TAX COMMISSIONER SHALL ADJUST THE 7,880
PAYMENTS MADE UNDER THIS SECTION TO EACH OF THE DISTRICTS IN 7,881
PROPORTION TO THE TAXABLE VALUE OF NON-TRANSMISSION/DISTRIBUTION 7,882
PROPERTY APPORTIONED TO THE MERGED OR TRANSFERRED TERRITORY 7,883
PURSUANT TO SECTION 5727.15 OF THE REVISED CODE. 7,884
(J) THERE IS HEREBY CREATED THE ELECTRIC PROPERTY TAX 7,886
STUDY COMMITTEE, EFFECTIVE JANUARY 1, 2011. THE COMMITTEE SHALL 7,887
CONSIST OF THE FOLLOWING SEVEN MEMBERS: THE TAX COMMISSIONER, 7,888
THREE MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE 7,890
SENATE, AND THREE MEMBERS OF THE HOUSE OF REPRESENTATIVES
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. THE 7,892
APPOINTMENTS SHALL BE MADE NOT LATER THAN JANUARY 31, 2011. THE 7,893
TAX COMMISSIONER SHALL BE THE CHAIRPERSON OF THE COMMITTEE. 7,894
THE COMMITTEE SHALL STUDY THE EXTENT TO WHICH EACH SCHOOL 7,896
DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT HAS BEEN 7,897
COMPENSATED, UNDER SECTIONS 5727.84 AND 5727.85 OF THE REVISED 7,898
CODE AS ENACTED BY _____ BILL NO. ___ OF THE 123rd GENERAL 7,900
ASSEMBLY AND ANY SUBSEQUENT ACTS, FOR THE PROPERTY TAX LOSS 7,901
CAUSED BY THE REDUCTION IN THE ASSESSMENT RATES FOR ELECTRIC AND 7,902
RURAL ELECTRIC COMPANY TANGIBLE PERSONAL PROPERTY. NOT LATER 7,903
THAN JUNE 30, 2011, THE COMMITTEE SHALL ISSUE A REPORT OF ITS 7,904
FINDINGS, INCLUDING ANY RECOMMENDATIONS FOR PROVIDING ADDITIONAL 7,906
COMPENSATION FOR THE PROPERTY TAX LOSS OR REGARDING REMEDIAL
LEGISLATION, TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF 7,908
THE HOUSE OF REPRESENTATIVES, AT WHICH TIME THE COMMITTEE SHALL 7,910
CEASE TO EXIST.
THE DEPARTMENT OF TAXATION AND DEPARTMENT OF EDUCATION 7,912
SHALL PROVIDE SUCH INFORMATION AND ASSISTANCE AS IS REQUIRED FOR 7,914
THE COMMITTEE TO CARRY OUT ITS DUTIES. 7,915
Sec. 5727.86. (A) NOT LATER THAN THE THIRTY-FIRST DAY OF 7,917
186
JULY OF 2002 THROUGH 2016, THE TAX COMMISSIONER SHALL DETERMINE, 7,919
FOR EACH TAXING DISTRICT, THE AMOUNTS DESCRIBED IN DIVISIONS 7,920
(A)(1) AND (2) OF THIS SECTION: 7,921
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,923
DESCRIBED IN DIVISION (A)(1)(b) FROM THE AMOUNT DESCRIBED IN 7,924
DIVISION (A)(1)(a) OF THIS SECTION. 7,926
(a) THE TAXES THAT WOULD HAVE BEEN CHARGED AND PAYABLE 7,928
AGAINST NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR 7,929
TAXATION FOR THE PRECEDING TAX YEAR FROM FIXED-RATE LEVIES 7,930
DETERMINED AS IF THAT PROPERTY HAD BEEN ASSESSED AT THE 1998 7,931
ASSESSMENT RATE RATHER THAN TWENTY-FIVE PER CENT OF TRUE VALUE; 7,932
(b) THE TAXES CHARGED AND PAYABLE AGAINST 7,934
NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR TAXATION FOR 7,935
THE PRECEDING TAX YEAR FROM FIXED-RATE LEVIES. 7,936
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,938
DESCRIBED IN DIVISION (A)(2)(b) FROM THE AMOUNT DESCRIBED IN 7,939
DIVISION (A)(2)(a) OF THIS SECTION, AND THEN SUBTRACTING FROM 7,942
THAT DIFFERENCE THE AMOUNT DESCRIBED IN DIVISION (A)(2)(c) OF 7,943
THIS SECTION:
(a) THE TAXES THAT WOULD HAVE BEEN CHARGED AND PAYABLE 7,945
AGAINST NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR 7,946
TAXATION FOR THE PRECEDING TAX YEAR FROM FIXED-SUM LEVIES 7,947
DETERMINED AS IF THAT PROPERTY HAD BEEN ASSESSED AT THE 1998 7,948
ASSESSMENT RATE RATHER THAN TWENTY-FIVE PER CENT OF TRUE VALUE; 7,949
(b) THE TAXES CHARGED AND PAYABLE AGAINST 7,951
NON-TRANSMISSION/DISTRIBUTION PROPERTY LISTED FOR TAXATION FOR 7,952
THE PRECEDING TAX YEAR FROM FIXED-SUM LEVIES; 7,953
(c) FOR EACH FIXED-SUM LEVY IMPOSED BY THE DISTRICT IN THE 7,955
PRECEDING TAX YEAR, THE TOTAL TAXABLE VALUE OF THE DISTRICT FOR 7,956
THE PRECEDING TAX YEAR MULTIPLIED BY ONE-FOURTH OF ONE MILL. 7,958
(B) NOT LATER THAN JULY 31, 2002, 2003, 2004, 2005, AND 7,960
2006, THE TAX COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF 7,963
BUDGET AND MANAGEMENT, FOR EACH TAXING DISTRICT, THE SUM OF THE 7,964
AMOUNTS DETERMINED THAT YEAR UNDER DIVISIONS (A)(1) AND (2) OF 7,965
187
THIS SECTION. THE DIRECTOR SHALL PAY THOSE SUMS IN THE MANNER 7,966
PRESCRIBED BY DIVISION (E) OF THIS SECTION. 7,967
(C) NOT LATER THAN JULY 31, 2007, 2008, 2009, 2010, AND 7,969
2011, THE TAX COMMISSIONER SHALL DETERMINE, FOR EACH TAXING 7,971
DISTRICT, THE SUM OF THE AMOUNTS DETERMINED THAT YEAR UNDER 7,972
DIVISIONS (A)(1) AND (2) OF THIS SECTION, AND SHALL CERTIFY AN 7,973
AMOUNT EQUAL TO EIGHTY PER CENT OF THAT SUM TO THE DIRECTOR OF 7,974
BUDGET AND MANAGEMENT. THE DIRECTOR SHALL PAY THE AMOUNT 7,975
CERTIFIED IN THE MANNER PRESCRIBED BY DIVISION (E) OF THIS 7,976
SECTION.
(D) NOT LATER THAN JULY 31, 2012, 2013, 2014, 2015, AND 7,978
2016, THE TAX COMMISSIONER SHALL DETERMINE, FOR EACH TAXING 7,980
DISTRICT, THE SUM OF THE AMOUNTS DETERMINED THAT YEAR UNDER 7,981
DIVISIONS (A)(1) AND (2) OF THIS SECTION, AND SHALL CERTIFY AN 7,982
AMOUNT EQUAL TO THE FOLLOWING PERCENTAGE OF THAT SUM TO THE 7,984
DIRECTOR OF BUDGET AND MANAGEMENT:
YEAR PERCENTAGE 7,988
2012 66.7% 7,989
2013 53.4% 7,990
2014 40.1% 7,991
2015 26.8% 7,992
2016 13.5% 7,993
THE DIRECTOR SHALL PAY THE AMOUNT CERTIFIED IN THE MANNER 7,997
PRESCRIBED BY DIVISION (E) OF THIS SECTION.
(E) PAYMENTS REQUIRED TO BE MADE UNDER DIVISIONS (B), (C), 8,000
AND (D) OF THIS SECTION SHALL BE PAID FROM THE LOCAL GOVERNMENT 8,002
PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX 8,003
FUND IN THE PROPER COUNTY TREASURY. ONE-HALF OF THE AMOUNT 8,004
CERTIFIED UNDER THOSE DIVISIONS SHALL BE PAID ON OR BEFORE EACH 8,005
OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER DIVISIONS (A) 8,006
AND (C) OF SECTION 321.24 OF THE REVISED CODE. THE COUNTY 8,007
TREASURER SHALL DISTRIBUTE SUCH AMOUNTS TO THE PROPER TAXING
DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS TAXES, AND 8,008
THE TAXING DISTRICT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG 8,009
188
ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN 8,010
LEVIED AND COLLECTED AS TAXES. 8,011
(F) FOR EACH FISCAL YEAR THAT THE TAX COMMISSIONER 8,013
DETERMINES THAT THERE IS A BALANCE IN THE LOCAL GOVERNMENT 8,015
PROPERTY TAX REPLACEMENT FUND THAT EXCEEDS THE TOTAL AMOUNT 8,016
REQUIRED TO BE PAID TO TAXING DISTRICTS UNDER DIVISION (E) OF 8,017
THIS SECTION, THAT BALANCE SHALL BE DISTRIBUTED TO EACH COUNTY AS 8,018
FOLLOWS:
(1) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN 8,020
PROPORTION TO EACH COUNTY'S POPULATION; 8,021
(2) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN THE 8,023
PROPORTION THAT THE AMOUNT DETERMINED UNDER DIVISION (B) OF THIS 8,024
SECTION IN 2002 FOR ALL TAXING DISTRICTS IN THE COUNTY IS OF THE 8,025
AMOUNTS SO DETERMINED IN 2002 FOR ALL TAXING DISTRICTS TO WHICH 8,027
PAYMENTS ARE REQUIRED TO BE MADE UNDER DIVISION (E) OF THIS
SECTION. 8,028
THE AMOUNTS DISTRIBUTED TO EACH COUNTY UNDER THIS DIVISION 8,030
SHALL BE DISTRIBUTED EACH YEAR BY THE COUNTY BUDGET COMMISSION TO 8,031
EACH TAXING DISTRICT IN THE COUNTY IN THE PROPORTION THAT THE 8,032
DISTRICT'S CURRENT TAXES CHARGED AND PAYABLE ARE OF THE TOTAL 8,033
CURRENT TAXES CHARGED AND PAYABLE OF ALL THE TAXING DISTRICTS IN 8,034
THE COUNTY. AS USED IN THIS DIVISION, "CURRENT TAXES CHARGED AND 8,035
PAYABLE" MEANS THE TAXES CHARGED AND PAYABLE AS MOST RECENTLY 8,036
DETERMINED FOR TAXING DISTRICTS IN THE COUNTY. 8,037
(G) IF ALL OR A PART OF THE TERRITORIES OF TWO OR MORE 8,039
TAXING DISTRICTS ARE MERGED, OR UNINCORPORATED TERRITORY OF A 8,041
TOWNSHIP IS ANNEXED BY A MUNICIPAL CORPORATION, THE TAX 8,042
COMMISSIONER SHALL ADJUST THE PAYMENTS MADE UNDER THIS SECTION TO 8,043
EACH OF THE TAXING DISTRICTS IN PROPORTION TO THE TAXABLE VALUE 8,044
OF NON-TRANSMISSION/DISTRIBUTION PROPERTY APPORTIONED TO THE 8,045
MERGED OR ANNEXED TERRITORY PURSUANT TO SECTION 5727.15 OF THE 8,046
REVISED CODE, OR AS OTHERWISE PROVIDED BY A WRITTEN AGREEMENT 8,047
BETWEEN THE LEGISLATIVE AUTHORITIES OF THE TAXING DISTRICTS 8,048
CERTIFIED TO THE TAX COMMISSIONER NOT LATER THAN THE FIRST DAY OF 8,049
189
JUNE OF THE CALENDAR YEAR IN WHICH THE PAYMENT IS TO BE MADE. 8,050
Sec. 5727.87. (A) AS USED IN THIS SECTION: 8,052
(1) "ADMINISTRATIVE FEES" MEANS THE DOLLAR PERCENTAGES 8,054
ALLOWED BY THE COUNTY AUDITOR FOR SERVICES OR BY THE COUNTY 8,055
TREASURER AS FEES, OR PAID TO THE CREDIT OF THE REAL ESTATE 8,056
ASSESSMENT FUND, UNDER DIVISIONS (A) AND (B) OF SECTION 319.54 8,057
AND DIVISION (A) OF SECTION 321.26 OF THE REVISED CODE. 8,059
(2) "ADMINISTRATIVE FEE LOSS" MEANS A COUNTY'S LOSS OF 8,061
ADMINISTRATIVE FEES CAUSED BY THE REDUCTION OF THE TANGIBLE 8,062
PERSONAL PROPERTY ASSESSMENT RATE UNDER SECTION 5727.111 OF THE 8,063
REVISED CODE, AS AMENDED BY ___ BILL NO. ___ OF THE 123rd GENERAL 8,065
ASSEMBLY, DETERMINED AS FOLLOWS:
(a) FOR PURPOSES OF THE DETERMINATION UNDER DIVISION (B) 8,067
OF THIS SECTION IN YEARS 2002 THROUGH 2006, THE ADMINISTRATIVE 8,069
FEE LOSS SHALL BE DETERMINED BY SUBTRACTING FROM THE DOLLAR 8,070
AMOUNT OF ADMINISTRATIVE FEES COLLECTED IN THE COUNTY FOR 8,071
CALENDAR YEAR 1998, THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES THAT 8,072
WOULD HAVE BEEN COLLECTED IN THE COUNTY IN CALENDAR YEAR 1998 IF 8,073
THE TANGIBLE PERSONAL PROPERTY OF AN ELECTRIC COMPANY AND A RURAL 8,074
ELECTRIC COMPANY WERE ASSESSED AT THE RATE REQUIRED BY SECTION 8,075
5727.111 OF THE REVISED CODE, AS AMENDED BY ___ BILL NO. ___ OF 8,077
THE 123rd GENERAL ASSEMBLY. 8,078
(b) FOR PURPOSES OF THE DETERMINATION UNDER DIVISION (B) 8,081
OF THIS SECTION IN YEARS 2007 THROUGH 2011, THE ADMINISTRATIVE 8,082
FEE LOSS SHALL BE DETERMINED BY SUBTRACTING FROM THE DOLLAR 8,083
AMOUNT OF ADMINISTRATIVE FEES COLLECTED IN THE COUNTY IN CALENDAR 8,084
YEAR 1998, THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES COLLECTED IN 8,085
THE COUNTY IN THE CURRENT CALENDAR YEAR. 8,086
(B) NOT LATER THAN JUNE 1, 2002 THROUGH 2011, THE COUNTY 8,088
AUDITOR SHALL DETERMINE THE ADMINISTRATIVE FEE LOSS FOR THE 8,090
COUNTY AND CERTIFY IT TO THE COUNTY BUDGET COMMISSION. 8,091
NOTWITHSTANDING DIVISIONS (F) AND (G) OF SECTION 5727.85 AND 8,092
DIVISION (E) OF SECTION 5727.86 OF THE REVISED CODE, PRIOR TO 8,093
DISTRIBUTION BY THE COUNTY TREASURER OF THE PAYMENTS PROVIDED 8,095
190
UNDER THOSE DIVISIONS, THE COUNTY BUDGET COMMISSION SHALL DEDUCT 8,096
FROM THOSE PAYMENTS THE AMOUNT OF THE ADMINISTRATIVE FEE LOSS 8,097
CERTIFIED BY THE COUNTY AUDITOR, AS FOLLOWS: 8,098
(1) SEVENTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,100
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISIONS (F) AND 8,102
(G) OF SECTION 5727.85 OF THE REVISED CODE; 8,103
(2) THIRTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,105
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISION (E) OF 8,106
SECTION 5727.86 OF THE REVISED CODE. 8,107
(C) ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,109
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,110
REVISED CODE IN YEARS 2002 THROUGH 2011, THE COUNTY BUDGET 8,111
COMMISSION SHALL PAY ONE-HALF OF THE AMOUNT OF THE ADMINISTRATIVE
FEE LOSS TO THE COUNTY AUDITOR, COUNTY TREASURER, OR REAL ESTATE
ASSESSMENT FUND AS IF THE AMOUNT HAD BEEN ALLOWED AS 8,112
ADMINISTRATIVE FEES, AND SHALL DEPOSIT THE AMOUNT IN THE SAME 8,113
FUNDS AS IF ALLOWED AS ADMINISTRATIVE FEES. 8,114
AFTER PAYMENT OF THE ADMINISTRATIVE FEE LOSS ON OR BEFORE 8,116
AUGUST 10, 2011, ALL PAYMENTS UNDER THIS SECTION SHALL CEASE. 8,117
Sec. 5727.88. THE TAX COMMISSIONER SHALL ADMINISTER 8,119
SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE AND MAY ADOPT 8,122
SUCH RULES AS ARE NECESSARY FOR THE ADMINISTRATION AND 8,123
ENFORCEMENT OF THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED 8,125
CODE. THE RULES SHALL PRESCRIBE THE METHOD FOR DETERMINING 8,127
WHETHER ELECTRICITY IS DISTRIBUTED THROUGH THE METER OF AN END 8,128
USER IN THIS STATE FOR PURPOSES OF SECTION 5727.81 OF THE REVISED 8,129
CODE. UPON REQUEST OF THE TAX COMMISSIONER, THE PUBLIC UTILITIES 8,130
COMMISSION SHALL ASSIST THE TAX COMMISSIONER BY PROVIDING 8,131
INFORMATION REGARDING ANY ELECTRIC DISTRIBUTION COMPANY THAT IS 8,132
SUBJECT TO REGULATION BY THE COMMISSION. 8,133
Sec. 5727.89. (A) THE TAX COMMISSIONER MAY MAKE AN 8,136
ASSESSMENT, BASED ON ANY INFORMATION IN THE COMMISSIONER'S
POSSESSION, AGAINST ANY ELECTRIC DISTRIBUTION COMPANY THAT FAILS 8,137
TO FILE A RETURN OR PAY ANY TAX, INTEREST, OR ADDITIONAL CHARGE 8,138
191
AS REQUIRED BY SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE. 8,141
WHEN INFORMATION IN THE POSSESSION OF THE TAX COMMISSIONER 8,143
INDICATES THAT AN ELECTRIC DISTRIBUTION COMPANY LIABLE FOR THE 8,144
TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE HAS NOT PAID 8,147
THE FULL AMOUNT OF TAX DUE, THE COMMISSIONER MAY AUDIT A 8,148
REPRESENTATIVE SAMPLE OF THE COMPANY'S BUSINESS AND MAY ISSUE AN 8,149
ASSESSMENT BASED ON THE AUDIT. THE COMMISSIONER SHALL GIVE THE 8,150
COMPANY ASSESSED WRITTEN NOTICE OF THE ASSESSMENT BY PERSONAL 8,151
SERVICE OR CERTIFIED MAIL. 8,152
A PENALTY OF FIFTEEN PER CENT SHALL BE ADDED TO ALL AMOUNTS 8,155
ASSESSED UNDER THIS SECTION. THE COMMISSIONER MAY ADOPT RULES 8,156
PROVIDING FOR THE REMISSION OF PENALTIES.
(B) UNLESS THE PARTY ASSESSED FILES WITH THE TAX 8,159
COMMISSIONER WITHIN THIRTY DAYS AFTER SERVICE OF THE NOTICE OF 8,160
ASSESSMENT, EITHER PERSONALLY OR BY CERTIFIED MAIL, A WRITTEN 8,161
PETITION FOR REASSESSMENT SIGNED BY THE PARTY ASSESSED OR THE 8,162
PARTY'S AUTHORIZED AGENT HAVING KNOWLEDGE OF THE FACTS, THE 8,163
ASSESSMENT IS FINAL AND THE AMOUNT OF THE ASSESSMENT IS DUE AND 8,164
PAYABLE FROM THE PARTY ASSESSED TO THE TREASURER OF STATE. THE 8,165
PETITION SHALL INDICATE THE OBJECTIONS OF THE PARTY ASSESSED, BUT 8,166
ADDITIONAL OBJECTIONS MAY BE RAISED IN WRITING PRIOR TO THE DATE 8,167
SHOWN ON THE FINAL DETERMINATION OF THE TAX COMMISSIONER. THE 8,168
COMMISSIONER SHALL GRANT THE PETITIONER A HEARING ON THE 8,169
PETITION, UNLESS WAIVED BY THE PETITIONER. 8,170
(C) THE COMMISSIONER MAY MAKE ANY CORRECTION TO THE 8,173
ASSESSMENT THAT THE COMMISSIONER FINDS PROPER AND SHALL ISSUE A 8,174
FINAL DETERMINATION THEREON. THE COMMISSIONER SHALL SERVE A COPY 8,175
OF THE FINAL DETERMINATION ON THE PETITIONER EITHER BY PERSONAL 8,176
SERVICE OR BY CERTIFIED MAIL, AND THE COMMISSIONER'S DECISION IN 8,177
THE MATTER IS FINAL, SUBJECT TO APPEAL UNDER SECTION 5717.02 OF 8,178
THE REVISED CODE. 8,180
(D) AFTER AN ASSESSMENT BECOMES FINAL, IF ANY PORTION OF 8,183
THE ASSESSMENT, INCLUDING ACCRUED INTEREST, REMAINS UNPAID, A 8,184
CERTIFIED COPY OF THE COMMISSIONER'S ENTRY MAKING THE ASSESSMENT 8,185
192
FINAL MAY BE FILED IN THE OFFICE OF THE CLERK OF THE COURT OF 8,186
COMMON PLEAS IN THE COUNTY IN WHICH THE PARTY ASSESSED RESIDES OR 8,187
IN WHICH THE PARTY'S BUSINESS IS CONDUCTED. IF THE PARTY 8,188
ASSESSED MAINTAINS NO PLACE OF BUSINESS IN THIS STATE AND IS NOT 8,189
A RESIDENT OF THIS STATE, THE CERTIFIED COPY OF THE ENTRY MAY BE 8,191
FILED IN THE OFFICE OF THE CLERK OF THE COURT OF COMMON PLEAS OF 8,192
FRANKLIN COUNTY. 8,193
THE CLERK, IMMEDIATELY UPON THE FILING OF THE ENTRY, SHALL 8,195
ENTER A JUDGMENT FOR THE STATE AGAINST THE PERSON ASSESSED IN THE 8,197
AMOUNT SHOWN ON THE ENTRY. THE JUDGMENT MAY BE FILED BY THE
CLERK IN A LOOSE-LEAF BOOK ENTITLED "SPECIAL JUDGMENTS FOR THE 8,198
KILOWATT-HOUR TAX," AND SHALL HAVE THE SAME EFFECT AS OTHER 8,199
JUDGMENTS. EXECUTION SHALL ISSUE UPON THE JUDGMENT UPON REQUEST 8,200
OF THE TAX COMMISSIONER, AND ALL LAWS APPLICABLE TO SALES ON 8,201
EXECUTION SHALL APPLY TO SALES MADE UNDER THE JUDGMENT. 8,202
THE PORTION OF THE ASSESSMENT NOT PAID WITHIN THIRTY DAYS 8,204
AFTER THE DAY THE ASSESSMENT WAS ISSUED SHALL BEAR INTEREST AT 8,205
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 8,208
CODE FROM THE DAY THE TAX COMMISSIONER ISSUES THE ASSESSMENT 8,209
UNTIL THE DAY THE ASSESSMENT IS PAID. INTEREST SHALL BE PAID IN 8,210
THE SAME MANNER AS THE TAX AND MAY BE COLLECTED BY THE ISSUANCE 8,211
OF AN ASSESSMENT UNDER THIS SECTION. 8,212
(E) IF THE TAX COMMISSIONER BELIEVES THAT COLLECTION OF 8,215
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WILL BE 8,217
JEOPARDIZED UNLESS PROCEEDINGS TO COLLECT OR SECURE COLLECTION OF 8,218
THE TAX ARE INSTITUTED WITHOUT DELAY, THE COMMISSIONER MAY ISSUE 8,219
A JEOPARDY ASSESSMENT AGAINST THE ELECTRIC DISTRIBUTION COMPANY 8,220
LIABLE FOR THE TAX. UPON ISSUANCE OF THE JEOPARDY ASSESSMENT, 8,221
THE COMMISSIONER IMMEDIATELY SHALL FILE AN ENTRY WITH THE CLERK 8,222
OF THE COURT OF COMMON PLEAS IN THE MANNER PRESCRIBED BY DIVISION 8,223
(D) OF THIS SECTION. NOTICE OF THE JEOPARDY ASSESSMENT SHALL BE 8,225
SERVED ON THE PARTY ASSESSED OR THE PARTY'S LEGAL REPRESENTATIVE 8,226
WITHIN FIVE DAYS OF THE FILING OF THE ENTRY WITH THE CLERK. THE 8,227
TOTAL AMOUNT ASSESSED IS IMMEDIATELY DUE AND PAYABLE, UNLESS THE 8,228
193
PARTY ASSESSED FILES A PETITION FOR REASSESSMENT IN ACCORDANCE 8,229
WITH DIVISION (B) OF THIS SECTION AND PROVIDES SECURITY IN A FORM 8,231
SATISFACTORY TO THE COMMISSIONER AND IN AN AMOUNT SUFFICIENT TO 8,232
SATISFY THE UNPAID BALANCE OF THE ASSESSMENT. FULL OR PARTIAL 8,233
PAYMENT OF THE ASSESSMENT DOES NOT PREJUDICE THE COMMISSIONER'S 8,234
CONSIDERATION OF THE PETITION FOR REASSESSMENT. 8,235
(F) ALL MONEY COLLECTED BY THE TAX COMMISSIONER UNDER THIS 8,238
SECTION SHALL BE PAID TO THE TREASURER OF STATE, AND WHEN PAID 8,239
SHALL BE CONSIDERED AS REVENUE ARISING FROM THE TAX IMPOSED BY 8,240
SECTION 5727.81 OF THE REVISED CODE. 8,242
Sec. 5727.90. NO ASSESSMENT OF THE TAX IMPOSED BY SECTION 8,244
5727.81 OF THE REVISED CODE SHALL BE MADE BY THE TAX COMMISSIONER 8,247
MORE THAN FOUR YEARS AFTER THE DATE ON WHICH THE RETURN FOR THE 8,248
PERIOD ASSESSED WAS DUE OR FILED, WHICHEVER DATE IS LATER. THIS 8,249
SECTION DOES NOT BAR AN ASSESSMENT WHEN ANY OF THE FOLLOWING 8,250
OCCUR:
(A) THE PARTY ASSESSED FAILED TO FILE A RETURN AS REQUIRED 8,253
BY SECTION 5727.82 OF THE REVISED CODE; 8,255
(B) THE PARTY ASSESSED KNOWINGLY FILED A FALSE OR 8,258
FRAUDULENT RETURN;
(C) THE PARTY ASSESSED AND THE TAX COMMISSIONER WAIVED IN 8,261
WRITING THE TIME LIMITATION. 8,262
Sec. 5727.91. (A) THE TREASURER OF STATE SHALL REFUND THE 8,265
AMOUNT OF TAX PAID UNDER SECTION 5727.81 OF THE REVISED CODE THAT 8,267
WAS PAID ILLEGALLY OR ERRONEOUSLY, OR PAID ON AN ILLEGAL OR 8,268
ERRONEOUS ASSESSMENT. AN ELECTRIC DISTRIBUTION COMPANY SHALL 8,269
FILE AN APPLICATION FOR A REFUND WITH THE TAX COMMISSIONER ON A 8,270
FORM PRESCRIBED BY THE COMMISSIONER, WITHIN FOUR YEARS OF THE 8,271
ILLEGAL OR ERRONEOUS PAYMENT OF THE TAX. 8,272
UPON THE FILING OF THE APPLICATION, THE COMMISSIONER SHALL 8,274
DETERMINE THE AMOUNT OF REFUND DUE AND CERTIFY THAT AMOUNT TO THE 8,276
DIRECTOR OF BUDGET AND MANAGEMENT AND THE TREASURER OF STATE FOR 8,277
PAYMENT FROM THE TAX REFUND FUND UNDER SECTION 5703.052 OF THE 8,278
REVISED CODE. IF THE APPLICATION FOR REFUND IS FOR TAXES PAID ON 8,280
194
AN ILLEGAL OR ERRONEOUS ASSESSMENT, THE TAX COMMISSIONER SHALL 8,281
INCLUDE IN THE CERTIFIED AMOUNT INTEREST CALCULATED AT THE RATE 8,282
PER ANNUM UNDER SECTION 5703.47 OF THE REVISED CODE FROM THE DATE 8,284
OF OVERPAYMENT TO THE DATE OF THE COMMISSIONER'S CERTIFICATION. 8,286
(B) IF AN ELECTRIC DISTRIBUTION COMPANY ENTITLED TO A 8,289
REFUND OF TAXES UNDER THIS SECTION IS INDEBTED TO THE STATE FOR 8,290
ANY TAX OR FEE ADMINISTERED BY THE TAX COMMISSIONER THAT IS PAID 8,291
TO THE STATE OR ANY CHARGE, PENALTY, OR INTEREST ARISING FROM 8,293
SUCH A TAX OR FEE, THE AMOUNT REFUNDABLE MAY BE APPLIED IN 8,294
SATISFACTION OF THE DEBT. IF THE AMOUNT REFUNDABLE IS LESS THAN 8,295
THE AMOUNT OF THE DEBT, IT MAY BE APPLIED IN PARTIAL SATISFACTION 8,296
OF THE DEBT. IF THE AMOUNT REFUNDABLE IS GREATER THAN THE AMOUNT 8,297
OF THE DEBT, THE AMOUNT REMAINING AFTER SATISFACTION OF THE DEBT 8,298
SHALL BE REFUNDED. IF THE ELECTRIC DISTRIBUTION COMPANY HAS MORE 8,299
THAN ONE SUCH DEBT, ANY DEBT SUBJECT TO SECTION 5739.33 OR 8,300
DIVISION (G) OF SECTION 5747.07 OF THE REVISED CODE SHALL BE 8,303
SATISFIED FIRST. THIS SECTION APPLIES ONLY TO DEBTS THAT HAVE 8,304
BECOME FINAL. 8,305
(C) ANY ELECTRIC DISTRIBUTION COMPANY THAT CAN 8,308
SUBSTANTIATE TO THE TAX COMMISSIONER THAT THE TAX IMPOSED BY 8,309
SECTION 5727.81 OF THE REVISED CODE WAS PAID ON ELECTRICITY 8,311
ULTIMATELY CONSUMED AT A LOCATION OUTSIDE OF THIS STATE MAY CLAIM 8,313
A REFUND IN THE MANNER AND WITHIN THE TIME PERIOD PRESCRIBED IN 8,314
DIVISION (A) OF THIS SECTION. 8,315
Sec. 5727.92. EVERY ELECTRIC DISTRIBUTION COMPANY LIABLE 8,317
FOR THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE SHALL 8,320
KEEP COMPLETE AND ACCURATE RECORDS OF ALL ELECTRIC DISTRIBUTIONS 8,321
AND OTHER RECORDS AS REQUIRED BY RULE OF THE TAX COMMISSIONER. 8,322
THE RECORDS SHALL BE PRESERVED FOR FOUR YEARS AFTER THE RETURN 8,323
FOR THE TAXES TO WHICH THE RECORDS PERTAIN IS DUE OR FILED, 8,324
WHICHEVER IS LATER. THE COMPANY SHALL MAKE THE RECORDS AVAILABLE 8,325
FOR INSPECTION BY THE TAX COMMISSIONER OR THE COMMISSIONER'S 8,326
AUTHORIZED AGENT, UPON REQUEST OF THE COMMISSIONER OR SUCH AGENT. 8,327
Sec. 5727.93. (A) NO PERSON SHALL DISTRIBUTE ELECTRICITY 8,330
195
TO A METER OF AN END USER IN THIS STATE WHO IS NOT REGISTERED 8,331
WITH THE TAX COMMISSIONER AS AN ELECTRIC DISTRIBUTION COMPANY. 8,332
(B) EACH PERSON REQUIRED TO REGISTER UNDER DIVISION (A) OF 8,336
THIS SECTION SHALL REGISTER PRIOR TO DISTRIBUTING ELECTRICITY TO 8,337
A METER OF AN END USER IN THIS STATE. THE TAX COMMISSIONER SHALL 8,338
PRESCRIBE THE FORM OF THE REGISTRATION APPLICATION. THE
COMMISSIONER SHALL ASSIGN AN IDENTIFICATION NUMBER TO EACH 8,339
REGISTRATION AND NOTIFY THE REGISTRANT OF THAT NUMBER. THE 8,340
REGISTRATION SHALL REMAIN IN EFFECT UNTIL CANCELED IN WRITING BY 8,341
THE REGISTRANT UPON THE CESSATION OF DISTRIBUTING ELECTRICITY TO 8,342
A METER OF AN END USER IN THIS STATE OR UNTIL SUCH REGISTRATION 8,343
IS DENIED, REVOKED, OR CANCELED BY THE COMMISSIONER. A 8,344
REGISTRATION MAY BE REVOKED OR CANCELED BY THE TAX COMMISSIONER 8,345
AS PROVIDED BY CHAPTER 119. OF THE REVISED CODE, FOR FAILURE OF 8,348
AN ELECTRIC DISTRIBUTION COMPANY TO PAY THE TAX IMPOSED BY 8,349
SECTION 5727.81 OF THE REVISED CODE OR TO COMPLY WITH SECTIONS 8,351
5727.80 TO 5727.95 OF THE REVISED CODE. AN ELECTRIC DISTRIBUTION 8,354
COMPANY WHOSE REGISTRATION IS DENIED MAY PETITION FOR A HEARING, 8,355
IN ACCORDANCE WITH THE PROCEDURES SET FORTH IN DIVISIONS (B) AND 8,357
(C) OF SECTION 5727.89 OF THE REVISED CODE, NOT LATER THAN THIRTY 8,360
DAYS AFTER RECEIVING THE DENIAL, AND THE FINAL DETERMINATION IS 8,361
SUBJECT TO APPEAL UNDER SECTION 5717.02 OF THE REVISED CODE. 8,364
(C) THE TAX COMMISSIONER SHALL MAINTAIN A LIST OF THE 8,367
ELECTRIC DISTRIBUTION COMPANIES REGISTERED UNDER THIS SECTION. 8,368
THE LIST SHALL CONTAIN THE NAME AND ADDRESS OF EACH COMPANY 8,369
REGISTERED BY THE COMMISSIONER. THE LIST AND SUBSEQUENT UPDATES 8,370
OF IT MAY BE FURNISHED TO COMPANIES ON THE LIST AND SHALL BE OPEN 8,371
TO PUBLIC INSPECTION IN THE OFFICE OF THE TAX COMMISSIONER. 8,372
Sec. 5727.94. EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED 8,374
TO PAY THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 8,377
SHALL PROVIDE TO ITS CUSTOMERS IN THIS STATE THE STATEMENT 8,378
REQUIRED BY SECTION 4933.33 OF THE REVISED CODE. 8,380
Sec. 5727.95. (A) NO ELECTRIC DISTRIBUTION COMPANY SHALL 8,383
FAIL TO FILE ANY RETURN OR REPORT REQUIRED TO BE FILED PURSUANT 8,384
196
TO SECTION 5727.82 OF THE REVISED CODE, OR FILE OR CAUSE TO BE 8,386
FILED ANY INCOMPLETE, FALSE, OR FRAUDULENT RETURN, REPORT, OR 8,387
STATEMENT, OR AID OR ABET ANOTHER IN THE FILING OF ANY FALSE OR 8,388
FRAUDULENT RETURN, REPORT, OR STATEMENT. 8,389
(B) NO PERSON SHALL DISTRIBUTE ELECTRICITY TO A METER OF 8,392
AN END USER IN THIS STATE WITHOUT HOLDING A VALID REGISTRATION 8,393
ISSUED UNDER SECTION 5727.93 OF THE REVISED CODE. 8,395
Sec. 5727.99. (A) Whoever violates section 5727.55 of the 8,404
Revised Code shall be fines FINED not less than one hundred nor 8,405
more than one thousand dollars. 8,406
(B) Whoever violates section 5727.71 of the Revised Code 8,408
shall be fined not more than five hundred dollars and imprisoned 8,409
not more than thirty days.
(C) Whoever violates section 5727.72 or 5727.73 of the 8,411
Revised Code shall be fined not more than five hundred dollars or 8,412
imprisoned not more than thirty days, or both. 8,413
(D) WHOEVER VIOLATES SECTIONS 5727.80 TO 5727.83, OR 8,415
SECTIONS 5727.88 TO 5727.95 OF THE REVISED CODE OR ANY RULE 8,418
ADOPTED BY THE TAX COMMISSIONER UNDER THOSE SECTIONS, IS GUILTY 8,419
OF A MISDEMEANOR OF THE FIRST DEGREE ON THE FIRST OFFENSE; ON 8,420
EACH SUBSEQUENT OFFENSE, THE PERSON IS GUILTY OF A FELONY OF THE 8,421
FOURTH DEGREE.
Sec. 5733.04. As used in this chapter: 8,430
(A) "Issued and outstanding shares of stock" applies to 8,432
nonprofit corporations, as provided in section 5733.01 of the 8,433
Revised Code, and includes, but is not limited to, membership 8,434
certificates and other instruments evidencing ownership of an 8,435
interest in such nonprofit corporations, and with respect to a 8,436
financial institution which THAT does not have capital stock, 8,437
"issued and outstanding shares of stock" includes, but is not 8,439
limited to, ownership interests of depositors in the capital 8,440
employed in such an institution. 8,441
(B) "Taxpayer" means a corporation subject to the tax 8,443
imposed by section 5733.06 of the Revised Code. 8,444
197
(C) "Resident" means a corporation organized under the 8,446
laws of this state. 8,447
(D) "Commercial domicile" means the principal place from 8,449
which the trade or business of the taxpayer is directed or 8,450
managed. 8,451
(E) "Taxable year" means the period prescribed by division 8,454
(A) of section 5733.031 of the Revised Code upon the net income 8,456
of which the value of the taxpayer's issued and outstanding 8,457
shares of stock is determined under division (B) of section 8,459
5733.05 of the Revised Code or the period prescribed by division 8,460
(A) of section 5733.031 of the Revised Code that immediately 8,462
precedes the date as of which the total value of the corporation 8,464
is determined under division (A) or (C) of section 5733.05 of the 8,465
Revised Code.
(F) "Tax year" means the calendar year in and for which 8,467
the tax imposed by section 5733.06 of the Revised Code is 8,469
required to be paid.
(G) "Internal Revenue Code" means the "Internal Revenue 8,471
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 8,472
(H) "Federal income tax" means the income tax imposed by 8,474
the Internal Revenue Code. 8,475
(I) Except as provided in section 5733.058 of the Revised 8,477
Code, "net income" means the taxpayer's taxable income before 8,479
operating loss deduction and special deductions, as required to 8,480
be reported for the taxpayer's taxable year under the Internal 8,481
Revenue Code, subject to the following adjustments:
(1)(a) Deduct any net operating loss incurred in any 8,483
taxable years ending in 1971 or thereafter but exclusive of any 8,484
net operating loss incurred in taxable years ending prior to 8,485
January 1, 1971. This deduction shall not be allowed in any tax 8,486
year commencing before December 31, 1973, but shall be carried 8,487
over and allowed in tax years commencing after December 31, 1973, 8,488
until fully utilized in the next succeeding taxable year or years 8,489
in which the taxpayer has net income, but in no case for more 8,490
198
than the designated carryover period as described in division 8,491
(I)(1)(b) of this section. The amount of such net operating 8,492
loss, as determined under the allocation and apportionment 8,493
provisions of section 5733.051 and division (B) of section 8,494
5733.05 of the Revised Code for the year in which the net 8,495
operating loss occurs, shall be deducted from net income, as 8,496
determined under the allocation and apportionment provisions of 8,497
section 5733.051 and division (B) of section 5733.05 of the 8,498
Revised Code, to the extent necessary to reduce net income to 8,499
zero with the remaining unused portion of the deduction, if any, 8,500
carried forward to the remaining years of the designated 8,501
carryover period as described in division (I)(1)(b) of this 8,502
section, or until fully utilized, whichever occurs first. 8,503
(b) For losses incurred in taxable years ending on or 8,505
before December 31, 1981, the designated carryover period shall 8,506
be the five consecutive taxable years after the taxable year in 8,507
which the net operating loss occurred. For losses incurred in 8,508
taxable years ending on or after January 1, 1982, the designated 8,509
carryover period shall be the fifteen consecutive taxable years 8,510
after the taxable year in which the net operating loss occurs. 8,511
(c) The tax commissioner may require a taxpayer to furnish 8,513
any information necessary to support a claim for deduction under 8,514
division (I)(1)(a) of this section and no deduction shall be 8,515
allowed unless the information is furnished. 8,516
(2) Deduct any amount included in net income by 8,518
application of section 78 or 951 of the Internal Revenue Code, 8,519
amounts received for royalties, technical or other services 8,520
derived from sources outside the United States, and dividends 8,521
received from a subsidiary, associate, or affiliated corporation 8,522
that neither transacts any substantial portion of its business 8,523
nor regularly maintains any substantial portion of its assets 8,524
within the United States. For purposes of determining net 8,525
foreign source income deductible under division (I)(2) of this 8,526
section, the amount of gross income from all such sources other 8,527
199
than income derived by application of section 78 or 951 of the 8,528
Internal Revenue Code shall be reduced by: 8,529
(a) The amount of any reimbursed expenses for personal 8,531
services performed by employees of the taxpayer for the 8,532
subsidiary, associate, or affiliated corporation; 8,533
(b) Ten per cent of the amount of royalty income and 8,535
technical assistance fees; 8,536
(c) Fifteen per cent of the amount of dividends and all 8,538
other income. 8,539
The amounts described in divisions (I)(2)(a) to (c) of this 8,541
section are deemed to be the expenses attributable to the 8,542
production of deductible foreign source income unless the 8,543
taxpayer shows, by clear and convincing evidence, less actual 8,544
expenses, or the tax commissioner shows, by clear and convincing 8,545
evidence, more actual expenses. 8,546
(3) Add any loss or deduct any gain resulting from the 8,548
sale, exchange, or other disposition of a capital asset, or an 8,549
asset described in section 1231 of the Internal Revenue Code, to 8,550
the extent that such loss or gain occurred prior to the first 8,551
taxable year on which the tax provided for in section 5733.06 of 8,552
the Revised Code is computed on the corporation's net income. 8,553
For purposes of division (I)(3) of this section, the amount of 8,554
the prior loss or gain shall be measured by the difference 8,555
between the original cost or other basis of the asset and the 8,556
fair market value as of the beginning of the first taxable year 8,557
on which the tax provided for in section 5733.06 of the Revised 8,558
Code is computed on the corporation's net income. At the option 8,559
of the taxpayer, the amount of the prior loss or gain may be a 8,560
percentage of the gain or loss, which percentage shall be 8,561
determined by multiplying the gain or loss by a fraction, the 8,562
numerator of which is the number of months from the acquisition 8,563
of the asset to the beginning of the first taxable year on which 8,564
the fee provided in section 5733.06 of the Revised Code is 8,565
computed on the corporation's net income, and the denominator of 8,566
200
which is the number of months from the acquisition of the asset 8,567
to the sale, exchange, or other disposition of the asset. 8,568
(4) Deduct the dividend received deduction provided by 8,570
section 243 of the Internal Revenue Code. 8,571
(5) Deduct any interest or interest equivalent on public 8,573
obligations and purchase obligations to the extent included in 8,574
federal taxable income. As used in divisions (I)(5) and (6) of 8,575
this section, "public obligations," "purchase obligations," and 8,576
"interest or interest equivalent" have the same meanings as in 8,577
section 5709.76 of the Revised Code. 8,578
(6) Add any loss or deduct any gain resulting from the 8,580
sale, exchange, or other disposition of public obligations to the 8,581
extent included in federal taxable income. 8,582
(7) To the extent not otherwise allowed, deduct any 8,584
dividends or distributions received by a taxpayer from a public 8,585
utility, if the taxpayer owns at least eighty per cent of the 8,586
issued and outstanding common stock of the utility. As used in 8,587
division (I)(7) of this section, "public utility" or "utility" 8,588
means a public utility as defined in Chapter 5727. of the Revised 8,589
Code, whether or not the utility is doing business in the state. 8,590
(8) To the extent not otherwise allowed, deduct any 8,592
dividends received by a taxpayer from an insurance company, if 8,593
the taxpayer owns at least eighty per cent of the issued and 8,594
outstanding common stock of the insurance company. As used in 8,595
division (I)(8) of this section, "insurance company" means an 8,596
insurance company which THAT is taxable under Chapter 5725. or 8,597
5729. of the Revised Code. 8,598
(9) Deduct expenditures for modifying existing buildings 8,600
or structures to meet American national standards institute 8,601
standard A-117.1-1961 (R-1971), as amended; provided, that no 8,602
deduction shall be allowed to the extent that such deduction is 8,603
not permitted under federal law or under rules of the tax 8,604
commissioner. Those deductions as are allowed may be taken over 8,605
a period of five years. The tax commissioner shall adopt rules 8,606
201
under Chapter 119. of the Revised Code establishing reasonable 8,607
limitations on the extent that expenditures for modifying 8,608
existing buildings or structures are attributable to the purpose 8,609
of making the buildings or structures accessible to and usable by 8,610
physically handicapped persons. 8,611
(10) Deduct the amount of wages and salaries, if any, not 8,613
otherwise allowable as a deduction but that would have been 8,614
allowable as a deduction in computing federal taxable income 8,615
before operating loss deduction and special deductions for the 8,616
taxable year, had the targeted jobs credit allowed and determined 8,617
under sections 38, 51, and 52 of the Internal Revenue Code not 8,618
been in effect. 8,619
(11) Deduct net interest income on obligations of the 8,621
United States and its territories and possessions or of any 8,622
authority, commission, or instrumentality of the United States to 8,623
the extent the laws of the United States prohibit inclusion of 8,624
the net interest for purposes of determining the value of the 8,625
taxpayer's issued and outstanding shares of stock under division 8,626
(B) of section 5733.05 of the Revised Code. As used in division 8,627
(I)(11) of this section, "net interest" means interest net of any 8,628
expenses taken on the federal income tax return that would not 8,629
have been allowed under section 265 of the Internal Revenue Code 8,630
if the interest were exempt from federal income tax. 8,631
(12)(a) Except as set forth in division (I)(12)(d) of this 8,633
section, to the extent not included in computing the taxpayer's 8,634
federal taxable income before operating loss deduction and 8,635
special deductions, add gains and deduct losses from direct or 8,636
indirect sales, exchanges, or other dispositions, made by a 8,637
related entity who is not a taxpayer, of the taxpayer's indirect, 8,638
beneficial, or constructive investment in the stock or debt of 8,639
another entity, unless the gain or loss has been included in 8,640
computing the federal taxable income before operating loss 8,641
deduction and special deductions of another taxpayer with a more 8,642
closely related investment in the stock or debt of the other 8,643
202
entity. The amount of gain added or loss deducted shall not 8,644
exceed the product obtained by multiplying such gain or loss by 8,645
the taxpayer's proportionate share, directly, indirectly, 8,646
beneficially, or constructively, of the outstanding stock of the 8,647
related entity immediately prior to the direct or indirect sale, 8,648
exchange, or other disposition. 8,649
(b) Except as set forth in division (I)(12)(e) of this 8,651
section, to the extent not included in computing the taxpayer's 8,652
federal taxable income before operating loss deduction and 8,653
special deductions, add gains and deduct losses from direct or 8,654
indirect sales, exchanges, or other dispositions made by a 8,655
related entity who is not a taxpayer, of intangible property 8,656
other than stock, securities, and debt, if such property was 8,657
owned, or used in whole or in part, at any time prior to or at 8,658
the time of the sale, exchange, or disposition by either the 8,659
taxpayer or by a related entity that was a taxpayer at any time 8,660
during the related entity's ownership or use of such property, 8,661
unless the gain or loss has been included in computing the 8,662
federal taxable income before operating loss deduction and 8,663
special deductions of another taxpayer with a more closely 8,664
related ownership or use of such intangible property. The 8,665
amount of gain added or loss deducted shall not exceed the 8,666
product obtained by multiplying such gain or loss by the 8,667
taxpayer's proportionate share, directly, indirectly, 8,668
beneficially, or constructively, of the outstanding stock of the 8,669
related entity immediately prior to the direct or indirect sale, 8,670
exchange, or other disposition. 8,671
(c) As used in division (I)(12) of this section, "related 8,673
entity" means those entities described in divisions (I)(12)(c)(i) 8,674
to (iii) of this section: 8,675
(i) An individual stockholder, or a member of the 8,677
stockholder's family enumerated in section 318 of the Internal 8,678
Revenue Code, if the stockholder and the members of the 8,679
stockholder's family own, directly, indirectly, beneficially, or 8,680
203
constructively, in the aggregate, at least fifty per cent of the 8,681
value of the taxpayer's outstanding stock; 8,682
(ii) A stockholder, or a stockholder's partnership, 8,684
estate, trust, or corporation, if the stockholder and the 8,685
stockholder's partnerships, estates, trusts, and corporations own 8,686
directly, indirectly, beneficially, or constructively, in the 8,687
aggregate, at least fifty per cent of the value of the taxpayer's 8,688
outstanding stock; 8,689
(iii) A corporation, or a party related to the corporation 8,691
in a manner that would require an attribution of stock from the 8,692
corporation to the party or from the party to the corporation 8,693
under division (I)(12)(c)(iv) of this section, if the taxpayer 8,694
owns, directly, indirectly, beneficially, or constructively, at 8,695
least fifty per cent of the value of the corporation's 8,696
outstanding stock. 8,697
(iv) The attribution rules of section 318 of the Internal 8,699
Revenue Code apply for purposes of determining whether the 8,700
ownership requirements in divisions (I)(12)(c)(i) to (iii) of 8,701
this section have been met. 8,702
(d) For purposes of the adjustments required by division 8,704
(I)(12)(a) of this section, the term "investment in the stock or 8,705
debt of another entity" means only those investments where the 8,706
taxpayer and the taxpayer's related entities directly, 8,707
indirectly, beneficially, or constructively own, in the 8,708
aggregate, at any time during the twenty-four month period 8,709
commencing one year prior to the direct or indirect sale, 8,710
exchange, or other disposition of such investment at least fifty 8,711
per cent or more of the value of either the outstanding stock or 8,712
such debt of such other entity. 8,713
(e) For purposes of the adjustments required by division 8,715
(I)(12)(b) of this section, the term "related entity" excludes 8,716
all of the following: 8,717
(i) Foreign corporations as defined in section 7701 of the 8,719
Internal Revenue Code; 8,720
204
(ii) Foreign partnerships as defined in section 7701 of 8,722
the Internal Revenue Code; 8,723
(iii) Corporations, partnerships, estates, and trusts 8,725
created or organized in or under the laws of the Commonwealth of 8,726
Puerto Rico or any possession of the United States; 8,727
(iv) Foreign estates and foreign trusts as defined in 8,729
section 7701 of the Internal Revenue Code. 8,730
The exclusions described in divisions (I)(12)(e)(i) to (iv) 8,732
of this section do not apply if the corporation, partnership, 8,733
estate, or trust is described in any one of divisions (C)(1) to 8,734
(5) of section 5733.042 of the Revised Code. 8,735
(f) Nothing in division (I)(12) of this section shall 8,737
require or permit a taxpayer to add any gains or deduct any 8,738
losses described in divisions (I)(12)(f)(i) and (ii) of this 8,739
section: 8,740
(i) Gains or losses recognized for federal income tax 8,742
purposes by an individual, estate, or trust without regard to the 8,743
attribution rules described in division (I)(12)(c) of this 8,744
section, and; 8,745
(ii) A related entity's gains or losses described in 8,747
division (I)(12)(b) if the taxpayer's ownership of or use of such 8,748
intangible property was limited to a period not exceeding nine 8,749
months and was attributable to a transaction or a series of 8,750
transactions executed in accordance with the election or 8,751
elections made by the taxpayer or a related entity pursuant to 8,752
section 338 of the Internal Revenue Code. 8,753
(13) Any adjustment required by section 5733.042 of the 8,755
Revised Code. 8,756
(14) Add any amount claimed as a credit under section 8,759
5733.0611 of the Revised Code to the extent that such amount 8,762
satisfies either of the following:
(a) It was deducted or excluded from the computation of 8,764
the corporation's taxable income before operating loss deduction 8,766
and special deductions as required to be reported for the 8,767
205
corporation's taxable year under the Internal Revenue Code; 8,770
(b) It resulted in a reduction of the corporation's 8,772
taxable income before operating loss deduction and special 8,774
deductions as required to be reported for any of the 8,775
corporation's taxable years under the Internal Revenue Code. 8,778
(15) Deduct the amount contributed by the taxpayer to an 8,781
individual development account program established by a county 8,782
department of human services pursuant to sections 329.11 to 8,783
329.14 of the Revised Code for the purpose of matching funds 8,786
deposited by program participants. On request of the tax 8,787
commissioner, the taxpayer shall provide any information that, in 8,788
the tax commissioner's opinion, is necessary to establish the 8,789
amount deducted under division (I)(15) of this section. 8,790
(J) Any term used in this chapter has the same meaning as 8,792
when used in comparable context in the laws of the United States 8,793
relating to federal income taxes unless a different meaning is 8,794
clearly required. Any reference in this chapter to the Internal 8,795
Revenue Code includes other laws of the United States relating to 8,796
federal income taxes. 8,797
(K) "Financial institution" has the meaning given by 8,799
section 5725.01 of the Revised Code but does not include a 8,801
production credit association as described in 85 Stat. 597, 12 8,802
U.S.C.A. 2091. 8,804
(L)(1) A "qualifying holding company" is any corporation 8,807
satisfying all of the following requirements: 8,808
(a) Subject to divisions (L)(2) and (3) of this section, 8,811
the net book value of the corporation's intangible assets is 8,812
greater than or equal to ninety per cent of the net book value of 8,813
all of its assets and at least fifty per cent of the net book 8,814
value of all of its assets represents direct or indirect 8,815
investments in the equity of, loans and advances to, and accounts 8,817
receivable due from related members;
(b) At least ninety per cent of the corporation's gross 8,820
income for the taxable year is attributable to the following: 8,821
206
(i) The maintenance, management, ownership, acquisition, 8,823
use, and disposition of its intangible property, its aircraft the 8,825
use of which is not subject to regulation under 14 C.F.R. part 8,827
121 or part 135, and any real property described in division 8,828
(L)(2)(c) of this section; 8,830
(ii) The collection and distribution of income from such 8,833
property.
(c) The corporation is not a financial institution on the 8,836
last day of the taxable year ending prior to the first day of the 8,838
tax year;
(d) The corporation's related members make a good faith 8,841
and reasonable effort to make timely and fully the adjustments 8,842
required by division (C)(2) of section 5733.05 of the Revised 8,844
Code and to pay timely and fully all uncontested taxes, interest, 8,845
penalties, and other fees and charges imposed under this chapter; 8,846
(e) Subject to division (L)(4) of this section, the 8,849
corporation elects to be treated as a qualifying holding company 8,850
for the tax year. 8,851
A corporation otherwise satisfying divisions (L)(1)(a) to 8,855
(e) of this section that does not elect to be a qualifying 8,856
holding company is not a qualifying holding company for the 8,857
purposes of this chapter.
(2)(a)(i) For purposes of making the ninety per cent 8,860
computation under division (L)(1)(a) of this section, the net 8,863
book value of the corporation's assets shall not include the net 8,864
book value of aircraft or real property described in division 8,865
(L)(1)(b)(i) of this section. 8,867
(ii) For purposes of making the fifty per cent computation 8,870
under division (L)(1)(a) of this section, the net book value of 8,872
assets shall include the net book value of aircraft or real 8,873
property described in division (L)(1)(b)(i) of this section. 8,876
(b)(i) As used in division (L) of this section, 8,879
"intangible asset" includes, but is not limited to, the 8,880
corporation's direct interest in each pass-through entity only if 8,881
207
at all times during the corporation's taxable year ending prior 8,882
to the first day of the tax year the corporation's and the 8,883
corporation's related members' combined direct and indirect 8,884
interests in the capital or profits of such pass-through entity 8,885
do not exceed fifty per cent. If the corporation's interest in 8,886
the pass-through entity is an intangible asset for that taxable 8,887
year, then the distributive share of any income from the 8,888
pass-through entity shall be income from an intangible asset for 8,889
that taxable year.
(ii) If a corporation's and the corporation's related 8,892
members' combined direct and indirect interests in the capital or 8,893
profits of a pass-through entity exceed fifty per cent at any 8,894
time during the corporation's taxable year ending prior to the 8,895
first day of the tax year, "intangible asset" does not include 8,896
the corporation's direct interest in the pass-through entity, and 8,897
the corporation shall include in its assets its proportionate 8,898
share of the assets of any such pass-through entity and shall 8,899
include in its gross income its distributive share of the gross 8,900
income of such pass-through entity in the same form as was earned 8,901
by the pass-through entity. 8,902
(iii) A pass-through entity's direct or indirect 8,905
proportionate share of any other pass-through entity's assets 8,906
shall be included for the purpose of computing the corporation's 8,907
proportionate share of the pass-through entity's assets under 8,908
division (L)(2)(b)(ii) of this section, and such pass-through 8,910
entity's distributive share of any other pass-through entity's 8,911
gross income shall be included for purposes of computing the 8,912
corporation's distributive share of the pass-through entity's 8,913
gross income under division (L)(2)(b)(ii) of this section. 8,916
(c) For the purposes of divisions (L)(1)(b)(i), 8,919
(1)(b)(ii), (2)(a)(i), and (2)(a)(ii) of this section, real 8,922
property is described in division (L)(2)(c) of this section only 8,924
if all of the following conditions are present at all times 8,925
during the taxable year ending prior to the first day of the tax 8,926
208
year:
(i) The real property serves as the headquarters of the 8,929
corporation's trade or business, or is the place from which the 8,930
corporation's trade or business is principally managed or 8,931
directed;
(ii) Not more than ten per cent of the value of the real 8,934
property and not more than ten per cent of the square footage of 8,935
the building or buildings that are part of the real property is
used, made available, or occupied for the purpose of providing, 8,936
acquiring, transferring, selling, or disposing of tangible 8,938
property or services in the normal course of business to persons 8,939
other than related members, the corporation's employees and their 8,940
families, and such related members' employees and their families. 8,941
(d) As used in division (L) of this section, "related 8,943
member" has the same meaning as in division (A)(6) of section 8,946
5733.042 of the Revised Code without regard to division (B) of 8,949
that section.
(3) The percentages described in division (L)(1)(a) of 8,953
this section shall be equal to the quarterly average of those 8,954
percentages as calculated during the corporation's taxable year 8,955
ending prior to the first day of the tax year. 8,956
(4) With respect to the election described in division 8,958
(L)(1)(e) of this section: 8,960
(a) The election need not accompany a timely filed report; 8,963
(b) The election need not accompany the report; rather, 8,965
the election may accompany a subsequently filed but timely 8,966
application for refund and timely amended report, or a 8,968
subsequently filed but timely petition for reassessment; 8,969
(c) The election is not irrevocable; 8,972
(d) The election applies only to the tax year specified by 8,975
the corporation;
(e) The corporation's related members comply with division 8,977
(L)(1)(d) of this section. 8,978
Nothing in division (L)(4) of this section shall be 8,981
209
construed to extend any statute of limitations set forth in this 8,982
chapter. 8,983
(M) "Qualifying controlled group" means two or more 8,986
corporations that satisfy the ownership and control requirements 8,987
of division (A) of section 5733.052 of the Revised Code. 8,990
(N) "Limited liability company" means any limited 8,992
liability company formed under Chapter 1705. of the Revised Code 8,994
or under the laws of any other state.
(O) "Pass-through entity" means a corporation that has 8,997
made an election under subchapter S of Chapter 1 of Subtitle A of 8,999
the Internal Revenue Code for its taxable year under that code, 9,002
or a partnership, limited liability company, or any other person, 9,003
other than an individual, trust, or estate, if the partnership, 9,004
limited liability company, or other person is not classified for 9,005
federal income tax purposes as an association taxed as a 9,006
corporation. 9,007
(P) "ELECTRIC COMPANY" HAS THE SAME MEANING AS IN SECTION 9,009
5727.01 OF THE REVISED CODE. 9,010
Sec. 5733.05. As used in this section, "qualified 9,019
research" means laboratory research, experimental research, and 9,020
other similar types of research; research in developing or 9,021
improving a product; or research in developing or improving the 9,022
means of producing a product. It does not include market 9,023
research, consumer surveys, efficiency surveys, management 9,024
studies, ordinary testing or inspection of materials or products 9,025
for quality control, historical research, or literary research. 9,026
"Product" as used in this paragraph does not include services or 9,027
intangible property. 9,028
The annual report determines the value of the issued and 9,031
outstanding shares of stock of the taxpayer, which under division 9,032
(A) or divisions (B) and (C) of this section is the base or 9,033
measure of the franchise tax liability. Such determination shall 9,034
be made as of the date shown by the report to have been the 9,035
beginning of the corporation's annual accounting period that 9,036
210
includes the first day of January of the tax year. For the 9,037
purposes of this chapter, the value of the issued and outstanding 9,039
shares of stock of any corporation that is a financial 9,041
institution shall be deemed to be the value as calculated in 9,043
accordance with division (A) of this section. For the purposes 9,045
of this chapter, the value of the issued and outstanding shares 9,046
of stock of any corporation that is not a financial institution 9,047
shall be deemed to be the values as calculated in accordance with 9,048
divisions (B) and (C) of this section. 9,049
(A) The total value, as shown by the books of the 9,051
financial institution, of its capital, surplus, whether earned or 9,053
unearned, undivided profits, and reserves shall be determined as 9,055
prescribed by section 5733.056 of the Revised Code for tax years 9,056
1998 and thereafter. 9,057
(B) The sum of the corporation's net income during the 9,059
corporation's taxable year, allocated or apportioned to this 9,061
state as prescribed in divisions (B)(1) and (2) of this section, 9,063
and subject to sections 5733.052, 5733.053, 5733.057, and 9,064
5733.058 of the Revised Code:
(1) The net income allocated to this state as provided by 9,066
section 5733.051 of the Revised Code. 9,067
(2) The amount of Ohio apportioned net income from sources 9,069
other than those allocated under section 5733.051 of the Revised 9,070
Code, which shall be determined by multiplying the corporation's 9,071
net income by a fraction. The numerator of the fraction is the 9,073
sum of the following products: the property factor multiplied by 9,076
twenty, the payroll factor multiplied by twenty, and the sales 9,077
factor multiplied by sixty. The denominator of the fraction is 9,079
one hundred, provided that the denominator shall be reduced by 9,081
twenty if the property factor has a denominator of zero, by 9,083
twenty if the payroll factor has a denominator of zero, and by 9,084
sixty if the sales factor has a denominator of zero.
The property, payroll, and sales factors shall be 9,086
determined as follows:
211
(a) The property factor is a fraction the numerator of 9,088
which is the average value of the corporation's real and tangible 9,089
personal property owned or rented, and used in the trade or 9,090
business in this state during the taxable year, and the 9,091
denominator of which is the average value of all the 9,092
corporation's real and tangible personal property owned or 9,093
rented, and used in the trade or business everywhere during such 9,094
year. There shall be excluded from the numerator and denominator 9,095
of the property factor the original cost of all of the following 9,096
property within Ohio: property with respect to which a 9,097
"pollution control facility" certificate has been issued pursuant 9,098
to section 5709.21 of the Revised Code; property with respect to 9,099
which an "industrial water pollution control certificate" has 9,100
been issued pursuant to section 6111.31 of the Revised Code; and 9,101
property used exclusively during the taxable year for qualified 9,102
research. 9,103
(i) Property owned by the corporation is valued at its 9,105
original cost. Property rented by the corporation is valued at 9,106
eight times the net annual rental rate. "Net annual rental rate" 9,107
means the annual rental rate paid by the corporation less any 9,108
annual rental rate received by the corporation from subrentals. 9,109
(ii) The average value of property shall be determined by 9,111
averaging the values at the beginning and the end of the taxable 9,112
year, but the tax commissioner may require the averaging of 9,113
monthly values during the taxable year, if reasonably required to 9,114
reflect properly the average value of the corporation's property. 9,115
(b) The payroll factor is a fraction the numerator of 9,117
which is the total amount paid in this state during the taxable 9,118
year by the corporation for compensation, and the denominator of 9,119
which is the total compensation paid everywhere by the 9,120
corporation during such year. There shall be excluded from the 9,121
numerator and the denominator of the payroll factor the total 9,122
compensation paid in this state to employees who are primarily 9,123
engaged in qualified research. 9,124
212
(i) Compensation means any form of remuneration paid to an 9,126
employee for personal services. 9,127
(ii) Compensation is paid in this state if: (1) the 9,129
recipient's service is performed entirely within this state, (2) 9,130
the recipient's service is performed both within and without this 9,131
state, but the service performed without this state is incidental 9,132
to the recipient's service within this state, (3) some of the 9,133
service is performed within this state and either the base of 9,134
operations, or if there is no base of operations, the place from 9,135
which the service is directed or controlled is within this state, 9,136
or the base of operations or the place from which the service is 9,137
directed or controlled is not in any state in which some part of 9,138
the service is performed, but the recipient's residence is in 9,139
this state. 9,140
(iii) Compensation is paid in this state to any employee 9,142
of a common or contract motor carrier corporation, who performs 9,143
the employee's regularly assigned duties on a motor vehicle in 9,145
more than one state, in the same ratio by which the mileage 9,146
traveled by such employee within the state bears to the total 9,147
mileage traveled by such employee everywhere during the taxable 9,148
year.
(c) The sales factor is a fraction the numerator of which 9,150
is the total sales in this state by the corporation during the 9,151
taxable year, and the denominator of which is the total sales by 9,152
the corporation everywhere during such year. In determining the 9,153
numerator and denominator of the sales factor, receipts from the 9,154
sale or other disposal of a capital asset or an asset described 9,155
in section 1231 of the Internal Revenue Code shall be eliminated. 9,156
Also, in determining the numerator and denominator of the sales 9,157
factor, in the case of a reporting corporation owning at least 9,158
eighty per cent of the issued and outstanding common stock of one 9,159
or more public utilities or insurance companies OR PUBLIC 9,160
UTILITIES, EXCEPT AN ELECTRIC COMPANY, or owning at least 9,163
twenty-five per cent of the issued and outstanding common stock 9,164
213
of one or more financial institutions, receipts received by the 9,165
reporting corporation from such utilities, insurance companies, 9,166
and financial institutions shall be eliminated.
For the purpose of this section and section 5733.03 of the 9,168
Revised Code, sales of tangible personal property are in this 9,169
state where such property is received in this state by the 9,170
purchaser. In the case of delivery of tangible personal property 9,171
by common carrier or by other means of transportation, the place 9,172
at which such property is ultimately received after all 9,173
transportation has been completed shall be considered as the 9,174
place at which such property is received by the purchaser. 9,175
Direct delivery in this state, other than for purposes of 9,176
transportation, to a person or firm designated by a purchaser 9,177
constitutes delivery to the purchaser in this state, and direct 9,178
delivery outside this state to a person or firm designated by a 9,179
purchaser does not constitute delivery to the purchaser in this 9,180
state, regardless of where title passes or other conditions of 9,181
sale. 9,182
FOR THE PURPOSES OF THIS SECTION AND SECTION 5733.03 OF THE 9,184
REVISED CODE, SALES OF ELECTRICITY AND THE TRANSMISSION AND 9,186
DISTRIBUTION OF ELECTRICITY BY AN ELECTRIC COMPANY SHALL BE 9,187
TREATED AS A SALE OF SERVICE AND NOT AS A SALE OF TANGIBLE 9,189
PERSONAL PROPERTY.
Sales, other than sales of tangible personal property, are 9,191
in this state if either: 9,192
(i) The income-producing activity is performed solely in 9,194
this state; 9,195
(ii) The income-producing activity is performed both 9,197
within and without this state and a greater proportion of the 9,198
income-producing activity is performed within this state than in 9,200
any other state, based on costs of performance. 9,201
(d) If the allocation and apportionment provisions of 9,203
division (B) of this section do not fairly represent the extent 9,205
of the taxpayer's business activity in this state, the taxpayer 9,206
214
may request, which request must be in writing and must accompany 9,207
the report, timely filed petition for reassessment, or timely 9,208
filed amended report, or the tax commissioner may require, in 9,209
respect to all or any part of the taxpayer's allocated or 9,210
apportioned base, if reasonable, any one or more of the 9,211
following:
(i) Separate accounting; 9,213
(ii) The exclusion of any one or more of the factors; 9,215
(iii) The inclusion of one or more additional factors 9,217
which THAT will fairly represent the taxpayer's allocated or 9,218
apportioned base in this state. 9,219
An alternative method will be effective only with approval 9,221
by the tax commissioner. 9,222
Nothing in this section shall be construed to extend any 9,224
statute of limitations set forth in this chapter. 9,225
(C)(1) Subject to divisions (C)(2) and (3) of this 9,228
section, the total value, as shown on the books of each
corporation that is not a qualified holding company, of the net 9,229
book value of a corporation's assets less the net carrying value 9,231
of its liabilities. For the purposes of determining that total 9,232
value, any reserves shown on the corporation's books shall be 9,233
considered liabilities or contra assets, except for any reserves 9,234
that are deemed appropriations of retained earnings under 9,235
generally accepted accounting principles. 9,236
(2)(a) If, on the last day of the taxpayer's taxable year 9,239
preceding the tax year, the taxpayer is a related member to a 9,240
corporation that elects to be a qualifying holding company for 9,241
the tax year beginning after the last day of the taxpayer's 9,242
taxable year, or if, on the last day of the taxpayer's taxable 9,243
year preceding the tax year, a corporation that elects to be a 9,244
qualifying holding company for the tax year beginning after the 9,245
last day of the taxpayer's taxable year is a related member to 9,246
the taxpayer, then the taxpayer's total value shall be adjusted 9,247
by the qualifying amount. Except as otherwise provided under 9,248
215
division (C)(2)(b) of this section, "qualifying amount" means the 9,249
amount that, when added to the taxpayer's total value, and when 9,251
subtracted from the net carrying value of the taxpayer's 9,252
liabilities computed without regard to division (C)(2) of this 9,254
section, or when subtracted from the taxpayer's total value and 9,256
when added to the net carrying value of the taxpayer's 9,257
liabilities computed without regard to division (C)(2) of this 9,259
section, results in the taxpayer's debt-to-equity ratio equaling 9,260
the debt-to-equity ratio of the qualifying controlled group on 9,261
the last day of the taxable year ending prior to the first day of 9,262
the tax year computed on a consolidated basis in accordance with 9,264
general accepted accounting principles. For the purposes of 9,265
division (C)(2)(a) of this section, the corporation's total 9,266
value, after the adjustment required by that division, shall not 9,267
exceed the net book value of the corporation's assets. 9,268
(b)(i) The amount added to the taxpayer's total value and 9,271
subtracted from the net carrying value of the taxpayer's 9,272
liabilities shall not exceed the amount of the net carrying value 9,273
of the taxpayer's liabilities owed to the taxpayer's related 9,275
members.
(ii) A liability owed to the taxpayer's related members 9,277
includes, but is not limited to, any amount that the corporation 9,279
owes to a person that is not a related member if the 9,280
corporation's related member or related members in whole or in 9,281
part guarantee any portion or all of that amount, or pledge, 9,282
hypothecate, mortgage, or carry out any similar transactions to 9,283
secure any portion or all of that amount. 9,284
(3) The base upon which the tax is levied under division 9,286
(C) of section 5733.06 of the Revised Code shall be computed by 9,288
multiplying the amount determined under divisions (C)(1) and (2) 9,290
of this section by the fraction determined under divisions 9,291
(B)(2)(a) to (c) of this section and, if applicable, divisions 9,294
(B)(2)(d)(ii) to (iv) of this section but without regard to 9,296
section 5733.052 of the Revised Code. 9,297
216
(4) For purposes of division (C) of this section, "related 9,301
member" has the same meaning as in division (A)(6) of section 9,302
5733.042 of the Revised Code without regard to division (B) of 9,303
that section.
Sec. 5733.06. The tax hereby charged each corporation 9,312
subject to this chapter shall be the GREATER OF THE sum of 9,313
divisions (A) and (B) of this section, AFTER THE REDUCTION, IF 9,314
ANY, PROVIDED BY DIVISION (J) OF THIS SECTION, or division (C) of 9,316
this section, whichever is greater AFTER THE REDUCTION, IF ANY, 9,317
PROVIDED BY DIVISION (J) OF THIS SECTION, except that the tax 9,319
hereby charged each financial institution subject to this chapter 9,320
shall be the amount computed under division (D) of this section: 9,321
(A) Except as set forth in division (F) of this section, 9,323
five and one-tenth per cent upon the first fifty thousand dollars 9,324
of the value of the taxpayer's issued and outstanding shares of 9,325
stock as determined under division (B) of section 5733.05 of the 9,326
Revised Code; 9,327
(B) Except as set forth in division (F) of this section, 9,329
eight and one-half per cent upon the value so determined in 9,331
excess of fifty thousand dollars; or 9,332
(C) Except as otherwise provided under division (G) of 9,335
this section, four mills times that portion of the value of the 9,336
issued and outstanding shares of stock as determined under
division (C) of section 5733.05 of the Revised Code. For the 9,337
purposes of division (C) of this section, division (C)(2) of 9,339
section 5733.065, and division (C) of section 5733.066 of the
Revised Code, the value of the issued and outstanding shares of 9,340
stock of a qualified holding company is zero. 9,341
(D) The tax charged each financial institution subject to 9,343
this chapter shall be that portion of the value of the issued and 9,344
outstanding shares of stock as determined under division (A) of 9,345
section 5733.05 of the Revised Code, multiplied by the following 9,347
amounts:
(1) For tax years prior to the 1999 tax year, fifteen 9,349
217
mills; 9,350
(2) For the 1999 tax year, fourteen mills; 9,352
(3) For tax year 2000 and thereafter, thirteen mills. 9,354
(E) No tax shall be charged from any corporation which 9,356
THAT has been adjudicated bankrupt, or for which a receiver has 9,357
been appointed, or which THAT has made a general assignment for 9,358
the benefit of creditors, except for the portion of the then 9,360
current tax year during which the tax commissioner finds such 9,361
corporation had the power to exercise its corporate franchise 9,362
unimpaired by such proceedings or act. The minimum payment for 9,363
all corporations shall be fifty dollars. 9,364
The tax charged to corporations under this chapter for the 9,366
privilege of engaging in business in this state, which is an 9,367
excise tax levied on the value of the issued and outstanding 9,368
shares of stock, shall in no manner be construed as prohibiting 9,369
or otherwise limiting the powers of municipal corporations, joint 9,370
economic development zones created under section 715.691 of the 9,371
Revised Code, and joint economic development districts created 9,372
under section 715.70 or 715.71 or sections 715.72 to 715.81 of 9,373
the Revised Code in this state to impose an income tax on the 9,374
income of such corporations.
(F) If two or more taxpayers satisfy the ownership or 9,376
control requirements of division (A) of section 5733.052 of the 9,377
Revised Code, each such taxpayer shall substitute "the taxpayer's 9,378
pro-rata amount" for "fifty thousand dollars" in divisions (A) 9,379
and (B) of this section. For purposes of this division, "the
taxpayer's pro-rata amount" is an amount that, when added to the 9,380
other such taxpayers' pro-rata amounts, does not exceed fifty 9,381
thousand dollars. For the purpose of making that computation, 9,382
the taxpayer's pro-rata amount shall not be less than zero. 9,383
Nothing in this division derogates from or eliminates the
requirement to make the alternative computation of tax under 9,384
division (C) of this section. 9,385
(G) The tax liability of any corporation under division 9,387
218
(C) of this section shall not exceed one hundred fifty thousand 9,388
dollars.
(H)(1) For the purposes of division (H) of this section, 9,390
"exiting corporation" means a corporation that satisfies all of 9,391
the following conditions: 9,392
(a) The corporation had nexus with or in this state under 9,394
the Constitution of the United States during any portion of a 9,395
calendar year;
(b) The corporation was not a taxpayer on the first day of 9,397
January immediately following that calendar year; 9,398
(c) The corporation was not a financial institution on the 9,400
first day of January immediately following that calendar year; 9,401
(d) The corporation was not a transferor as defined in 9,403
section 5733.053 of the Revised Code during any portion of that 9,404
calendar year;
(e) During any portion of that calendar year, or any 9,406
portion of the immediately preceding calendar year, the 9,407
corporation had net income that was not included in a report 9,408
filed pursuant to section 5733.02, 5733.021, 5733.03, or 5733.031 9,409
of the Revised Code;
(f) The corporation would have been subject to the tax 9,411
computed under divisions (A), (B), (C), (F), and (G) of this 9,412
section if the corporation is assumed to have had nexus with or 9,413
in this state under the Constitution of the United States on the 9,414
first day of January immediately following the calendar year 9,415
referred to in division (H)(1)(a) of this section.
(2) For the purposes of division (H) of this section, 9,417
"unreported net income" means net income that was not previously 9,418
included in a report filed pursuant to section 5733.02, 5733.021, 9,419
5733.03, or 5733.031 of the Revised Code and that was realized or 9,420
recognized during the calendar year referred to in division 9,421
(H)(1) of this section or the immediately preceding calendar
year.
(3) Each exiting corporation shall pay a tax computed by 9,423
219
first allocating and apportioning the unreported net income 9,424
pursuant to division (B) of section 5733.05 and sections SECTION 9,425
5733.051 and, if applicable, section 5733.052 of the Revised 9,427
Code. The exiting corporation then shall compute the tax due on
its unreported net income allocated and apportioned to this state 9,428
by applying divisions (A), (B), and (F) of this section to that 9,429
income.
(4) Divisions (C) and (G) of this section, division (D)(2) 9,431
of section 5733.065, and division (C) of section 5733.066 of the 9,432
Revised Code do not apply to an exiting corporation, but exiting 9,433
corporations are subject to every other provision of this 9,434
chapter.
(5) Notwithstanding sections 5733.02, 5733.021, and 9,436
5733.03 of the Revised Code to the contrary, each exiting 9,437
corporation shall report and pay the tax due under division (H) 9,438
of this section on or before the thirty-first day of May 9,439
immediately following the calendar year referred to in division 9,440
(H)(1)(a) of this section. The exiting corporation shall file
that report on the form most recently prescribed by the tax 9,441
commissioner for the purposes of complying with sections 5733.02 9,442
and 5733.03 of the Revised Code. Upon request by the 9,443
corporation, the tax commissioner may extend the date for filing 9,444
the report.
(6) The tax commissioner may adopt rules governing 9,446
division (H) of this section. 9,447
(I) Any reference in the Revised Code to "the tax imposed 9,449
by section 5733.06 of the Revised Code" or "the tax due under 9,450
section 5733.06 of the Revised Code" includes the taxes imposed 9,451
under sections 5733.065 and 5733.066 of the Revised Code. 9,452
(J)(1) DIVISION (J) OF THIS SECTION APPLIES SOLELY TO A 9,455
CORPORATION DIRECTLY OR INDIRECTLY PROVIDING PUBLIC UTILITY 9,456
SERVICES AS A HEATING COMPANY OR A NATURAL GAS COMPANY, OR BOTH, 9,457
FOR ITS TAX YEAR IMMEDIATELY FOLLOWING THE YEAR UPON WHICH ITS 9,458
TAXABLE GROSS RECEIPTS ARE SUBJECT TO THE EXCISE TAX IMPOSED BY 9,459
220
SECTION 5727.30 OF THE REVISED CODE. SECTION 5733.057 OF THE 9,464
REVISED CODE SHALL APPLY WHEN CALCULATING THE ADJUSTMENTS 9,466
REQUIRED BY DIVISION (J) OF THIS SECTION. 9,469
(2) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 9,473
TAX CALCULATED IN DIVISIONS (A) AND (B) OF THIS SECTION SHALL BE 9,477
REDUCED BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY A 9,478
FRACTION, THE NUMERATOR OF WHICH IS THE TOTAL TAXABLE GROSS 9,479
RECEIPTS ATTRIBUTED TO PROVIDING PUBLIC UTILITY SERVICE AS A 9,480
HEATING COMPANY OR NATURAL GAS COMPANY, OR BOTH, UNDER SECTION 9,481
5727.03 OF THE REVISED CODE FOR THE YEAR UPON WHICH THE TAXABLE 9,484
GROSS RECEIPTS ARE MEASURED IMMEDIATELY PRECEDING THE TAX YEAR, 9,485
AND THE DENOMINATOR OF WHICH IS THE TOTAL GROSS RECEIPTS FROM ALL 9,486
SOURCES FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE 9,487
MEASURED IMMEDIATELY PRECEDING THE TAX YEAR. NOTHING HEREIN 9,488
SHALL BE CONSTRUED TO EXCLUDE FROM THE DENOMINATOR ANY ITEM OF 9,489
INCOME DESCRIBED IN SECTION 5733.051 OF THE REVISED CODE. 9,492
(3) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 9,496
TAX CALCULATED IN DIVISION (C) OF THIS SECTION SHALL BE REDUCED 9,498
BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY THE FRACTION 9,499
DESCRIBED IN DIVISION (J)(2) OF THIS SECTION. 9,501
(4) IN NO EVENT SHALL THE REDUCTION PROVIDED BY DIVISION 9,505
(J)(2) OR (J)(3) OF THIS SECTION EXCEED THE AMOUNT OF THE EXCISE 9,508
TAX PAID IN ACCORDANCE WITH SECTION 5727.38 OF THE REVISED CODE, 9,511
FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 9,512
IMMEDIATELY PRECEDING THE TAX YEAR. 9,513
Sec. 5733.09. (A) An incorporated company, whether 9,522
foreign or domestic, owning and operating a public utility in 9,523
this state, and as such required by law to file reports with the 9,524
tax commissioner and to pay an excise tax upon its gross 9,525
receipts, and insurance, fraternal, beneficial, bond investment, 9,526
and other corporations required by law to file annual reports 9,527
with the superintendent of insurance and dealers in intangibles, 9,528
the shares of which ARE, or the capital or ownership in capital 9,529
employed by such dealer is, subject to the taxes imposed by 9,530
221
section 5707.03 of the Revised Code, shall not be subject to this 9,531
chapter, except for sections 5733.031, 5733.042, 5733.05, 9,532
5733.052, 5733.053, 5733.069, 5733.0611, 5733.40, 5733.41, and 9,533
sections 5747.40 to 5747.453 of the Revised Code. AN ELECTRIC 9,534
COMPANY SUBJECT TO THE FILING REQUIREMENTS OF SECTION 5727.08 OF 9,535
THE REVISED CODE OR OTHERWISE HAVING NEXUS WITH OR IN THIS STATE 9,537
UNDER THE CONSTITUTION OF THE UNITED STATES, OR ANY OTHER 9,542
CORPORATION HAVING ANY GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO 9,543
PROVIDING PUBLIC UTILITY SERVICE AS AN ELECTRIC COMPANY OR HAVING 9,544
ANY PROPERTY DIRECTLY ATTRIBUTABLE TO PROVIDING PUBLIC UTILITY 9,545
SERVICE AS AN ELECTRIC COMPANY, IS SUBJECT TO THIS CHAPTER. 9,546
(B) A corporation that has made an election under 9,548
subchapter S, chapter one, subtitle A, of the Internal Revenue 9,549
Code for its taxable year under such code is exempt from the tax 9,550
imposed by section 5733.06 of the Revised Code that is based on 9,551
that taxable year. 9,552
A corporation that makes such an election shall file a 9,554
notice of such election with the tax commissioner between the 9,555
first day of January and the thirty-first day of March of each 9,556
tax year that the election is in effect. 9,557
(C) An entity defined to be a "real estate investment 9,559
trust" by section 856 of the Internal Revenue Code, a "regulated 9,560
investment company" by section 851 of the Internal Revenue Code, 9,561
or a "real estate mortgage investment conduit" by section 860D of 9,562
the Internal Revenue Code, is exempt from taxation for a tax year 9,563
as a corporation under this chapter and is exempt from taxation 9,564
for a return year as a dealer in intangibles under Chapter 5725. 9,565
of the Revised Code if it provides the report required by this 9,566
division. By the last day of March of the tax or return year the 9,567
entity shall submit to the tax commissioner the name of the 9,568
entity with a list of the names, addresses, and social security 9,569
or federal identification numbers of all investors, shareholders, 9,570
and other similar investors who owned any interest or invested in 9,571
the entity during the preceding calendar year. The commissioner 9,572
222
may extend the date by which the report must be submitted for 9,573
reasonable cause shown by the entity. The commissioner may 9,574
prescribe the form of the report required for exemption under 9,575
this division. 9,576
(D)(1) As used in this division: 9,578
(a) "Commercial printer" means a person primarily engaged 9,581
in the business of commercial printing. However, "commercial 9,582
printer" does not include a person primarily engaged in the 9,583
business of providing duplicating services using photocopy 9,584
machines or other xerographic processes. 9,585
(b) "Commercial printing" means printing by one or more 9,588
common processes such as letterpress, lithography, gravure, 9,589
screen, or digital imaging, and includes related activities such 9,590
as binding, platemaking, prepress operation, cartographic 9,591
composition, and typesetting.
(c) "Contract for printing" means an oral or written 9,594
agreement for the purchase of printed materials produced by a 9,595
commercial printer.
(d) "Intangible property located at the premises of a 9,598
commercial printer" means intangible property of any kind owned 9,599
or licensed by a customer of the commercial printer and furnished 9,600
to the commercial printer for use in commercial printing. 9,601
(e) "Printed material" means any tangible personal 9,604
property produced or processed by a commercial printer pursuant 9,605
to a contract for printing.
(f) "Related member" has the same meaning as in division 9,608
(A)(6) of section 5733.042 of the Revised Code without regard to 9,609
division (B) of that section. 9,611
(2) Except as provided in divisions (D)(3) and (4) of this 9,613
section, a corporation not otherwise subject to the tax imposed 9,614
by section 5733.06 of the Revised Code for a tax year does not 9,615
become subject to that tax for the tax year solely by reason of 9,617
any one or more of the following occurring in this state during 9,618
the taxable year that ends immediately prior to the tax year: 9,619
223
(a) Ownership by the corporation or a related member of 9,622
the corporation of tangible personal property or intangible 9,623
property located during all or any portion of the taxable year or 9,624
on the first day of the tax year at the premises of a commercial 9,625
printer with which the corporation or the corporation's related 9,626
member has a contract for printing with respect to such property 9,627
or the premises of a commercial printer's related member with 9,628
which the corporation or the corporation's related member has a 9,629
contract for printing with respect to such property; 9,630
(b) Sales by the corporation or a related member of the 9,633
corporation of property produced at and shipped or distributed 9,634
from the premises of a commercial printer with which the 9,635
corporation or the corporation's related member has a contract 9,636
for printing with respect to such property or the premises of a 9,637
commercial printer's related member with which the corporation or 9,638
the corporation's related member has a contract for printing with 9,639
respect to such property;
(c) Activities of employees, officers, agents, or 9,642
contractors of the corporation or a related member of the 9,643
corporation on the premises of a commercial printer with which 9,644
the corporation or the corporation's related member has a 9,645
contract for printing or the premises of a commercial printer's 9,646
related member with which the corporation or the corporation's 9,647
related member has a contract for printing, where the activities 9,648
are directly and solely related to quality control, distribution, 9,649
or printing services, or any combination thereof, performed by or 9,650
at the direction of the commercial printer or the commercial 9,651
printer's related member.
(3) The exemption under this division does not apply for a 9,653
taxable year to any corporation having on the first day of 9,654
January of the tax year or at any time during the taxable year 9,656
ending immediately preceding the first day of January of the tax 9,658
year a related member which, on the first day of January of the 9,659
tax year or during any portion of such taxable year of the 9,660
224
corporation, has nexus in or with this state under the 9,661
Constitution of the United States or holds a certificate of 9,663
compliance with the laws of this state authorizing it to do 9,664
business in this state.
(4) With respect to allowing the exemption under this 9,666
division, the tax commissioner shall be guided by the doctrines 9,667
of "economic reality," "sham transaction," "step transaction," 9,668
and "substance over form." A corporation shall bear the burden 9,669
of establishing by a preponderance of the evidence that any 9,670
transaction giving rise to an exemption claimed under this 9,671
division did not have as a principal purpose the avoidance of any 9,673
portion of the tax imposed by section 5733.06 of the Revised
Code.
Application of the doctrines listed in division (D)(4) of 9,676
this section is not limited to this division. 9,677
Sec. 5733.39. (A) AS USED IN THIS SECTION: 9,680
(1) "COMPLIANCE FACILITY" MEANS PROPERTY THAT IS DESIGNED, 9,682
CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC 9,683
GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING WITH 9,685
PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE 9,687
"CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 9,688
7651, AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN 9,689
COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE 9,690
REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER 9,691
THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS 9,692
ARE EMITTED INTO THE ATMOSPHERE. "COMPLIANCE FACILITY" ALSO 9,693
INCLUDES ANY OF THE FOLLOWING: 9,694
(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL 9,696
BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE 9,697
PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL 9,698
PROCESSED BY THE COMPLIANCE FACILITY IS BURNED; 9,699
(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY 9,701
WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT 9,702
ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, 9,703
225
AND OPERATION, OF THE COMPLIANCE FACILITY; 9,704
(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 9,706
3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES 9,707
PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION 9,708
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 9,709
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF 9,710
WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME 9,711
PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT 9,712
PRODUCES THE WASTES DISPOSED OF AT THE FACILITY; 9,713
(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, 9,715
OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING 9,716
FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS 9,717
PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION 9,718
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 9,719
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED; 9,720
(e) A FLUE GAS DESULFURIZATION SYSTEM THAT IS CONNECTED TO 9,723
A COAL-FIRED ELECTRIC GENERATING UNIT AND THAT EITHER WAS PLACED 9,724
IN SERVICE PRIOR TO JULY 10, 1991, OR CONSTRUCTION OF WHICH WAS 9,725
COMMENCED PRIOR TO THAT DATE;
(f) FACILITIES OR EQUIPMENT ACQUIRED, CONSTRUCTED, OR 9,728
INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING UNIT
PRIMARILY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS PRODUCED BY 9,729
A COMPLIANCE FACILITY OR OTHER COAL COMBUSTION BYPRODUCTS 9,730
PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE COMPLIANCE 9,731
FACILITY IS INCORPORATED OR CONNECTED. 9,732
(2) "OHIO COAL" HAS THE SAME MEANING AS IN SECTION 4913.01 9,735
OF THE REVISED CODE. 9,736
(3) "SALE AND LEASEBACK TRANSACTION" HAS THE SAME MEANING 9,738
AS IN SECTION 5727.01 OF THE REVISED CODE. 9,741
(B) BEGINNING IN TAX YEAR 2002, AN ELECTRIC COMPANY SHALL 9,744
BE ALLOWED A NONREFUNDABLE CREDIT AGAINST THE TAX IMPOSED BY 9,745
SECTION 5733.06 OF THE REVISED CODE FOR USING OHIO COAL IN ANY OF 9,748
ITS COAL-FIRED ELECTRIC GENERATING UNITS. SECTION 5733.057 OF 9,749
THE REVISED CODE SHALL APPLY WHEN CALCULATING THE CREDIT ALLOWED 9,752
226
BY THIS SECTION. THE CREDIT SHALL BE CLAIMED AT THE RATE OF ONE 9,753
DOLLAR PER TON OF OHIO COAL BURNED IN A COAL-FIRED ELECTRIC 9,755
GENERATING UNIT DURING THE TAXABLE YEAR ENDING IMMEDIATELY 9,756
PRECEDING THE TAX YEAR. THE CREDIT IS ALLOWED ONLY IF ALL OF THE 9,757
FOLLOWING CONDITIONS ARE MET DURING SUCH TAXABLE YEAR: 9,758
(1) THE COAL-FIRED ELECTRIC GENERATING UNIT IS OWNED AND 9,760
USED BY THE COMPANY CLAIMING THE CREDIT OR LEASED AND USED BY 9,761
THAT COMPANY UNDER A SALE AND LEASEBACK TRANSACTION. 9,762
(2) A COMPLIANCE FACILITY IS ATTACHED TO, INCORPORATED IN, 9,765
OR USED IN CONJUNCTION WITH THE COAL-FIRED GENERATING UNIT. 9,766
(3) EITHER OF THE FOLLOWING APPLIES: 9,768
(a) IN THE CASE OF A COAL-FIRED ELECTRIC GENERATING UNIT 9,771
THAT BURNS COAL IN COMBINATION WITH ANOTHER FUEL FOR THE PURPOSE 9,772
OF COMPLYING WITH PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER 9,775
TITLE IV OF THE "CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 9,781
2584, 42 U.S.C.A. 7651, AT LEAST EIGHTY PER CENT OF THE HEAT 9,783
INPUT DURING THE TAXABLE YEAR IS FROM OHIO COAL. 9,785
(b) IN THE CASE OF ANY OTHER COAL-FIRED ELECTRIC 9,787
GENERATING UNIT, AT LEAST NINETY PER CENT OF THE HEAT INPUT 9,788
DURING THE TAXABLE YEAR IS FROM OHIO COAL. 9,790
(C) THE CREDIT SHALL BE CLAIMED IN THE ORDER REQUIRED 9,793
UNDER SECTION 5733.98 OF THE REVISED CODE. IF THE CREDIT EXCEEDS 9,795
THE TAX IMPOSED BY SECTION 5733.06 OF THE REVISED CODE AFTER ALL 9,798
OTHER NONREFUNDABLE CREDITS FOR THE TAX YEAR AS SET FORTH IN 9,799
SECTION 5733.98 OF THE REVISED CODE, THE EXCESS SHALL NOT BE 9,801
ALLOWED AS A CREDIT EITHER AGAINST THE TAXES DUE FOR ANY OTHER 9,802
YEAR OR AGAINST ANY OTHER TAX OR FEE. NOTHING HEREIN SHALL BE 9,803
CONSTRUED TO PROVIDE FOR ANY CARRYOVER OR CARRYBACK OF ANY UNUSED 9,805
CREDIT PROVIDED BY ANY OTHER SECTION OF THE REVISED CODE OR FOR 9,807
ANY APPLICATION OF ANY UNUSED CREDIT PROVIDED BY ANY OTHER 9,808
SECTION OF THE REVISED CODE AGAINST ANY OTHER TAX OR FEE IF SUCH 9,811
SECTION DOES NOT EXPRESSLY PROVIDE EITHER FOR A CARRYOVER OR 9,812
CARRYBACK OF ANY UNUSED CREDIT OR FOR ANY APPLICATION OF AN 9,813
UNUSED CREDIT AGAINST ANY OTHER TAX OR FEE. 9,814
227
(D) THE SUM OF THE CREDITS ALLOWED FOR ALL YEARS UNDER 9,817
SECTION 5727.391 OF THE REVISED CODE FOR COAL BURNED IN EACH 9,819
COAL-FIRED ELECTRIC GENERATING UNIT AND THE SUM OF THE CREDITS 9,820
ALLOWED FOR ALL TAX YEARS UNDER THIS SECTION SHALL NOT EXCEED 9,821
TWENTY PER CENT OF THE COST OF THE COMPLIANCE FACILITY ATTACHED 9,822
TO, INCORPORATED IN, OR USED IN CONJUNCTION WITH THE UNIT. IF A 9,823
COMPLIANCE FACILITY IS USED IN CONJUNCTION WITH MORE THAN ONE 9,824
GENERATING UNIT, THE TAX COMMISSIONER SHALL PRORATE ITS COST 9,825
AMONG THE UNITS. 9,826
(E) THE DIRECTOR OF ENVIRONMENTAL PROTECTION, UPON THE 9,829
REQUEST OF THE TAX COMMISSIONER, SHALL CERTIFY WHETHER A FACILITY 9,830
IS A COMPLIANCE FACILITY. IN THE CASE OF A COMPLIANCE FACILITY 9,831
OWNED BY AN ELECTRIC COMPANY, THE PUBLIC UTILITIES COMMISSION 9,832
SHALL CERTIFY TO THE TAX COMMISSIONER THE COST OF THE FACILITY AS 9,833
OF THE DATE IT WAS PLACED IN SERVICE. IN THE CASE OF A 9,834
COMPLIANCE FACILITY OWNED BY A PERSON OTHER THAN AN ELECTRIC 9,835
COMPANY, THE TAX COMMISSIONER SHALL DETERMINE THE COST OF THE 9,836
FACILITY AS OF THE DATE IT WAS PLACED IN SERVICE. IF THE OWNER 9,837
OF SUCH A FACILITY FAILS TO FURNISH THE INFORMATION NECESSARY TO 9,838
MAKE THAT DETERMINATION, NO CREDIT SHALL BE ALLOWED. 9,839
Sec. 5733.98. (A) To provide a uniform procedure for 9,848
calculating the amount of tax imposed by section 5733.06 of the 9,849
Revised Code that is due under this chapter, a taxpayer shall 9,851
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised 9,852
Code:
(1) The credit for taxes paid by a qualifying pass-through 9,854
entity allowed under section 5733.0611 of the Revised Code; 9,855
(2) The credit for qualifying affiliated groups under 9,857
section 5733.068 of the Revised Code; 9,858
(3) The subsidiary corporation credit under section 9,860
5733.067 of the Revised Code; 9,861
(4) The savings and loan assessment credit under section 9,863
5733.063 of the Revised Code; 9,864
228
(5) The credit for recycling and litter prevention 9,866
donations under section 5733.064 of the Revised Code; 9,868
(6) The credit for employers that enter into agreements 9,871
with child day-care centers under section 5733.36 of the Revised 9,872
Code;
(7) The credit for employers that reimburse employee child 9,874
day-care expenses under section 5733.38 of the Revised Code; 9,876
(8) The credit for manufacturing investments under section 9,878
5733.061 of the Revised Code; 9,879
(9) The credit for purchases of new manufacturing 9,881
machinery and equipment under section 5733.31 or section 5733.311 9,882
of the Revised Code; 9,883
(10) The second credit for purchases of new manufacturing 9,886
machinery and equipment under section 5733.33 of the Revised 9,887
Code;
(11) The enterprise zone credit under section 5709.66 of 9,889
the Revised Code; 9,890
(12) The credit for the eligible costs associated with a 9,892
voluntary action under section 5733.34 of the Revised Code; 9,894
(13) The credit for employers that establish on-site child 9,897
day-care under section 5733.37 of the Revised Code; 9,898
(14) The credit for purchases of qualifying grape 9,900
production property under section 5733.32 of the Revised Code; 9,901
(15) The export sales credit under section 5733.069 of the 9,904
Revised Code;
(16) The credit for research and development and 9,906
technology transfer investors under section 5733.35 of the 9,907
Revised Code;
(17) The enterprise zone credits under section 5709.65 of 9,910
the Revised Code;
(18) THE CREDIT FOR USING OHIO COAL UNDER SECTION 5733.39 9,912
OF THE REVISED CODE;
(19) The refundable jobs creation credit under section 9,914
5733.0610 of the Revised Code. 9,915
229
(B) For any credit except the refundable jobs creation 9,917
credit, the amount of the credit for a tax year shall not exceed 9,918
the tax due after allowing for any other credit that precedes it 9,919
in the order required under this section. Any excess amount of a 9,920
particular credit may be carried forward if authorized under the 9,921
section creating that credit. 9,922
Sec. 5739.011. (A) As used in this section: 9,931
(1) "Manufacturer" means a person who is engaged in 9,933
manufacturing, processing, assembling, or refining a product for 9,934
sale. 9,935
(2) "Manufacturing facility" means a single location where 9,937
a manufacturing operation is conducted, including locations 9,938
consisting of one or more buildings or structures in a contiguous 9,939
area owned or controlled by the manufacturer. 9,940
(3) "Materials handling" means the movement of the product 9,942
being or to be manufactured, during which movement the product is 9,943
not undergoing any substantial change or alteration in its state 9,944
or form. 9,945
(4) "Testing" means a process or procedure to identify the 9,947
properties or assure the quality of a material or product. 9,948
(5) "Completed product" means a manufactured item that is 9,950
in the form and condition as it will be sold by the manufacturer. 9,951
An item is completed when all processes that change or alter its 9,952
state or form or enhance its value are finished, even though the 9,953
item subsequently will be tested to ensure its quality or be 9,954
packaged for storage or shipment. 9,955
(6) "Continuous manufacturing operation" means the process 9,957
in which raw materials or components are moved through the steps 9,958
whereby manufacturing occurs. Materials handling of raw 9,959
materials or parts from the point of receipt or pre-production 9,960
PREPRODUCTION storage or of a completed product, to or from 9,961
storage, to or from packaging, or to the place from which the 9,963
completed product will be shipped, is not a part of a continuous 9,964
manufacturing operation. 9,965
230
(B) For purposes of division (E)(9) of section 5739.01 of 9,967
the Revised Code, the "thing transferred" includes, but is not 9,968
limited to, any of the following: 9,969
(1) Production machinery and equipment that act upon the 9,971
product or machinery and equipment that treat the materials or 9,972
parts in preparation for the manufacturing operation; 9,973
(2) Materials handling equipment that moves the product 9,975
through a continuous manufacturing operation; equipment that 9,976
temporarily stores the product during the manufacturing 9,977
operation; or, excluding motor vehicles licensed to operate on 9,978
public highways, equipment used in intraplant or interplant 9,979
transfers of work in process where the plant or plants between 9,980
which such transfers occur are manufacturing facilities operated 9,981
by the same person; 9,982
(3) Catalysts, solvents, water, acids, oil, and similar 9,984
consumables that interact with the product and that are an 9,985
integral part of the manufacturing operation; 9,986
(4) Machinery, equipment, and other tangible personal 9,988
property used during the manufacturing operation that control, 9,989
physically support, produce power for, lubricate, or are 9,990
otherwise necessary for the functioning of production machinery 9,991
and equipment and the continuation of the manufacturing 9,992
operation; 9,993
(5) Machinery, equipment, fuel, power, material, parts, 9,995
and other tangible personal property used to manufacture 9,996
machinery, equipment, or other tangible personal property used in 9,997
manufacturing a product for sale; 9,998
(6) Machinery, equipment, and other tangible personal 10,000
property used by a manufacturer to test raw materials, the 10,001
product being manufactured, or the completed product; 10,002
(7) Machinery and equipment used to handle or temporarily 10,004
store scrap that is intended to be reused in the manufacturing 10,005
operation at the same manufacturing facility; 10,006
(8) Electricity, coke COKE, gas, water, steam, and similar 10,008
231
substances used in the manufacturing operation; machinery and 10,009
equipment used for, and fuel consumed in, producing or extracting 10,010
those substances; and machinery, equipment, and other tangible 10,011
personal property used to treat, filter, pump, alter voltage, or 10,012
otherwise make the substance suitable for use in the 10,013
manufacturing operation; AND MACHINERY AND EQUIPMENT USED TO 10,014
PRODUCE ELECTRICITY FOR USE IN THE MANUFACTURING OPERATION; 10,015
(9) Machinery, equipment, and other tangible personal 10,017
property used to transport or transmit electricity, coke, gas, 10,018
water, steam, or similar substances used in the manufacturing 10,019
operation from the point of generation, if produced by the 10,020
manufacturer, or from the point where the substance enters the 10,021
manufacturing facility, if purchased by the manufacturer, to the 10,022
manufacturing operation; 10,023
(10) Machinery, equipment, and other tangible personal 10,025
property that treats, filters, cools, refines, or otherwise 10,026
renders water, steam, acid, oil, solvents, or similar substances 10,027
used in the manufacturing operation reusable, provided that the 10,028
substances are intended for reuse and not for disposal, sale, or 10,029
transportation from the manufacturing facility; 10,030
(11) Parts, components, and repair and installation 10,032
services for items described in division (B) of this section. 10,033
(C) For purposes of division (E)(9) of section 5739.01 of 10,035
the Revised Code, the "thing transferred" does not include any of 10,036
the following: 10,037
(1) Tangible personal property used in administrative, 10,039
personnel, security, inventory control, record-keeping, ordering, 10,040
billing, or similar functions; 10,041
(2) Tangible personal property used in storing raw 10,043
materials or parts prior to the commencement of the manufacturing 10,044
operation or used to handle or store a completed product, 10,045
including storage that actively maintains a completed product in 10,046
a marketable state or form; 10,047
(3) Tangible personal property used to handle or store 10,049
232
scrap or waste intended for disposal, sale, or other disposition, 10,050
other than reuse in the manufacturing operation at the same 10,051
manufacturing facility; 10,052
(4) Tangible personal property that is or is to be 10,054
incorporated into realty; 10,055
(5) Machinery, equipment, and other tangible personal 10,057
property used for ventilation, dust, or gas collection, humidity 10,058
or temperature regulation, or similar environmental control, 10,059
except machinery, equipment, and other tangible personal property 10,060
that totally regulates the environment in a special and limited 10,061
area of the manufacturing facility where the regulation is 10,062
essential for production to occur; 10,063
(6) Tangible personal property used for the protection and 10,065
safety of workers, unless the property is attached to or 10,066
incorporated into machinery and equipment used in a continuous 10,067
manufacturing operation; 10,068
(7) Tangible personal property used to store fuel, water, 10,070
solvents, acid, oil, or similar items consumed in the 10,071
manufacturing operation; 10,072
(8) Machinery, equipment, and other tangible personal 10,074
property used for research and development; 10,075
(9) Machinery, equipment, and other tangible personal 10,077
property used to clean, repair, or maintain real or personal 10,078
property in the manufacturing facility; 10,079
(10) Motor vehicles registered for operation on the public 10,081
highways. 10,082
(D) For purposes of division (E)(9) of section 5739.01 of 10,084
the Revised Code, if the "thing transferred" is a machine used by 10,085
a manufacturer in both a taxable and an exempt manner, it shall 10,086
be totally taxable or totally exempt from taxation based upon its 10,087
quantified primary use. If the "things transferred" are 10,088
fungibles, they shall be taxed based upon the proportion of the 10,089
fungibles used in a taxable manner. 10,090
Sec. 5739.02. For the purpose of providing revenue with 10,099
233
which to meet the needs of the state, for the use of the general 10,100
revenue fund of the state, for the purpose of securing a thorough 10,101
and efficient system of common schools throughout the state, for 10,102
the purpose of affording revenues, in addition to those from 10,103
general property taxes, permitted under constitutional 10,104
limitations, and from other sources, for the support of local 10,105
governmental functions, and for the purpose of reimbursing the 10,106
state for the expense of administering this chapter, an excise 10,107
tax is hereby levied on each retail sale made in this state. 10,108
(A) The tax shall be collected pursuant to the schedules 10,110
in section 5739.025 of the Revised Code. 10,111
The tax applies and is collectible when the sale is made, 10,113
regardless of the time when the price is paid or delivered. 10,114
In the case of a sale, the price of which consists in whole 10,116
or in part of rentals for the use of the thing transferred, the 10,117
tax, as regards such rentals, shall be measured by the 10,118
installments thereof. 10,119
In the case of a sale of a service defined under division 10,121
(MM) or (NN) of section 5739.01 of the Revised Code, the price of 10,122
which consists in whole or in part of a membership for the 10,123
receipt of the benefit of the service, the tax applicable to the 10,124
sale shall be measured by the installments thereof. 10,125
(B) The tax does not apply to the following: 10,127
(1) Sales to the state or any of its political 10,129
subdivisions, or to any other state or its political subdivisions 10,130
if the laws of that state exempt from taxation sales made to this 10,131
state and its political subdivisions; 10,132
(2) Sales of food for human consumption off the premises 10,134
where sold; 10,135
(3) Sales of food sold to students only in a cafeteria, 10,137
dormitory, fraternity, or sorority maintained in a private, 10,138
public, or parochial school, college, or university; 10,139
(4) Sales of newspapers, and of magazine subscriptions 10,141
shipped by second class mail, and sales or transfers of magazines 10,142
234
distributed as controlled circulation publications; 10,143
(5) The furnishing, preparing, or serving of meals without 10,145
charge by an employer to an employee provided the employer 10,146
records the meals as part compensation for services performed or 10,147
work done; 10,148
(6) Sales of motor fuel upon receipt, use, distribution, 10,151
or sale of which in this state a tax is imposed by the law of 10,152
this state, but this exemption shall not apply to the sale of 10,153
motor fuel on which a refund of the tax is allowable under 10,154
section 5735.14 of the Revised Code; and the tax commissioner may 10,155
deduct the amount of tax levied by this section applicable to the 10,156
price of motor fuel when granting a refund of motor fuel tax 10,157
pursuant to section 5735.14 of the Revised Code and shall cause 10,158
the amount deducted to be paid into the general revenue fund of 10,159
this state;
(7) Sales of natural gas by a natural gas company, of 10,161
electricity by an electric company, of water by a water-works 10,162
company, or of steam by a heating company, if in each case the 10,163
thing sold is delivered to consumers through wires, pipes, or 10,164
conduits, and all sales of communications services by a telephone 10,165
or telegraph company, all terms as defined in section 5727.01 of 10,166
the Revised Code; 10,167
(8) Casual sales by a person, or auctioneer employed 10,169
directly by the person to conduct such sales, except as to such 10,171
sales of motor vehicles, watercraft or outboard motors required 10,172
to be titled under section 1548.06 of the Revised Code, 10,173
watercraft documented with the United States coast guard, 10,174
snowmobiles, and all-purpose vehicles as defined in section 10,175
4519.01 of the Revised Code; 10,176
(9) Sales of services or tangible personal property, other 10,178
than motor vehicles, mobile homes, and manufactured homes, by 10,180
churches or by nonprofit organizations operated exclusively for 10,181
charitable purposes as defined in division (B)(12) of this 10,182
section, provided that the number of days on which such tangible 10,183
235
personal property or services, other than items never subject to 10,184
the tax, are sold does not exceed six in any calendar year. If 10,185
the number of days on which such sales are made exceeds six in 10,186
any calendar year, the church or organization shall be considered 10,187
to be engaged in business and all subsequent sales by it shall be 10,188
subject to the tax. In counting the number of days, all sales by 10,189
groups within a church or within an organization shall be 10,190
considered to be sales of that church or organization, except 10,191
that sales made by separate student clubs and other groups of 10,192
students of a primary or secondary school, and sales made by a 10,193
parent-teacher association, booster group, or similar 10,194
organization that raises money to support or fund curricular or 10,195
extracurricular activities of a primary or secondary school, 10,196
shall not be considered to be sales of such school, and sales by 10,197
each such club, group, association, or organization shall be 10,198
counted separately for purposes of the six-day limitation. This 10,199
division does not apply to sales by a noncommercial educational 10,200
radio or television broadcasting station. 10,201
(10) Sales not within the taxing power of this state under 10,203
the Constitution of the United States; 10,204
(11) The transportation of persons or property, unless the 10,206
transportation is by a private investigation and security 10,207
service; 10,208
(12) Sales of tangible personal property or services to 10,210
churches, to organizations exempt from taxation under section 10,211
501(c)(3) of the Internal Revenue Code of 1986, and to any other 10,212
nonprofit organizations operated exclusively for charitable 10,213
purposes in this state, no part of the net income of which inures 10,214
to the benefit of any private shareholder or individual, and no 10,215
substantial part of the activities of which consists of carrying 10,216
on propaganda or otherwise attempting to influence legislation; 10,217
sales to offices administering one or more homes for the aged or 10,218
one or more hospital facilities exempt under section 140.08 of 10,219
the Revised Code; and sales to organizations described in 10,220
236
division (D) of section 5709.12 of the Revised Code. 10,221
"Charitable purposes" means the relief of poverty; the 10,223
improvement of health through the alleviation of illness, 10,224
disease, or injury; the operation of an organization exclusively 10,226
for the provision of professional, laundry, printing, and 10,227
purchasing services to hospitals or charitable institutions; the 10,229
operation of a home for the aged, as defined in section 5701.13 10,230
of the Revised Code; the operation of a radio or television 10,231
broadcasting station that is licensed by the federal 10,232
communications commission as a noncommercial educational radio or 10,233
television station; the operation of a nonprofit animal adoption 10,235
service or a county humane society; the promotion of education by 10,236
an institution of learning that maintains a faculty of qualified 10,237
instructors, teaches regular continuous courses of study, and
confers a recognized diploma upon completion of a specific 10,238
curriculum; the operation of a parent-teacher association, 10,239
booster group, or similar organization primarily engaged in the 10,240
promotion and support of the curricular or extracurricular 10,241
activities of a primary or secondary school; the operation of a 10,242
community or area center in which presentations in music, 10,243
dramatics, the arts, and related fields are made in order to 10,244
foster public interest and education therein; the production of 10,245
performances in music, dramatics, and the arts; or the promotion 10,247
of education by an organization engaged in carrying on research
in, or the dissemination of, scientific and technological 10,248
knowledge and information primarily for the public. 10,249
Nothing in this division shall be deemed to exempt sales to 10,251
any organization for use in the operation or carrying on of a 10,252
trade or business, or sales to a home for the aged for use in the 10,253
operation of independent living facilities as defined in division 10,254
(A) of section 5709.12 of the Revised Code. 10,255
(13) Building and construction materials and services sold 10,257
to construction contractors for incorporation into a structure or 10,258
improvement to real property under a construction contract with 10,259
237
this state or a political subdivision thereof, or with the United 10,260
States government or any of its agencies; building and 10,261
construction materials and services sold to construction 10,262
contractors for incorporation into a structure or improvement to 10,263
real property that are accepted for ownership by this state or 10,265
any of its political subdivisions, or by the United States 10,266
government or any of its agencies at the time of completion of 10,267
such structures or improvements; building and construction 10,268
materials sold to construction contractors for incorporation into 10,269
a horticulture structure or livestock structure for a person 10,270
engaged in the business of horticulture or producing livestock; 10,271
building materials and services sold to a construction contractor 10,272
for incorporation into a house of public worship or religious 10,273
education, or a building used exclusively for charitable purposes 10,274
under a construction contract with an organization whose purpose 10,275
is as described in division (B)(12) of this section; building and 10,276
construction materials sold for incorporation into the original 10,277
construction of a sports facility under section 307.696 of the 10,278
Revised Code; and building and construction materials and 10,279
services sold to a construction contractor for incorporation into 10,280
real property outside this state if such materials and services, 10,281
when sold to a construction contractor in the state in which the 10,282
real property is located for incorporation into real property in 10,283
that state, would be exempt from a tax on sales levied by that 10,284
state; 10,285
(14) Sales of ships or vessels or rail rolling stock used 10,287
or to be used principally in interstate or foreign commerce, and 10,288
repairs, alterations, fuel, and lubricants for such ships or 10,289
vessels or rail rolling stock; 10,290
(15) Sales to persons engaged in any of the activities 10,292
mentioned in division (E)(2) or (9) of section 5739.01 of the 10,293
Revised Code, to persons engaged in making retail sales, or to 10,294
persons who purchase for sale from a manufacturer tangible 10,295
personal property that was produced by the manufacturer in 10,296
238
accordance with specific designs provided by the purchaser, of 10,297
packages, including material and parts for packages, and of 10,298
machinery, equipment, and material for use primarily in packaging 10,299
tangible personal property produced for sale by or on the order 10,300
of the person doing the packaging, or sold at retail. "Packages" 10,301
includes bags, baskets, cartons, crates, boxes, cans, bottles, 10,302
bindings, wrappings, and other similar devices and containers, 10,303
and "packaging" means placing therein. 10,304
(16) Sales of food to persons using food stamp coupons to 10,306
purchase the food. As used in division (B)(16) of this section, 10,307
"food" has the same meaning as in the "Food Stamp Act of 1977," 10,308
91 Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations 10,309
adopted pursuant to that act. 10,310
(17) Sales to persons engaged in farming, agriculture, 10,312
horticulture, or floriculture, of tangible personal property for 10,313
use or consumption directly in the production by farming, 10,314
agriculture, horticulture, or floriculture of other tangible 10,315
personal property for use or consumption directly in the 10,316
production of tangible personal property for sale by farming, 10,317
agriculture, horticulture, or floriculture; or material and parts 10,318
for incorporation into any such tangible personal property for 10,319
use or consumption in production; and of tangible personal 10,320
property for such use or consumption in the conditioning or 10,321
holding of products produced by and for such use, consumption, or 10,322
sale by persons engaged in farming, agriculture, horticulture, or 10,323
floriculture, except where such property is incorporated into 10,324
real property; 10,325
(18) Sales of drugs dispensed by a licensed pharmacist 10,328
upon the order of a licensed health professional authorized to 10,330
prescribe drugs to a human being, as the term "licensed health
professional authorized to prescribe drugs" is defined in section 10,331
4729.01 of the Revised Code; insulin as recognized in the 10,333
official United States pharmacopoeia; urine and blood testing 10,334
materials when used by diabetics or persons with hypoglycemia to 10,335
239
test for glucose or acetone; hypodermic syringes and needles when 10,336
used by diabetics for insulin injections; epoetin alfa when 10,337
purchased for use in the treatment of persons with end-stage 10,338
renal disease; hospital beds when purchased for use by persons 10,340
with medical problems for medical purposes; and oxygen and 10,341
oxygen-dispensing equipment when purchased for use by persons 10,342
with medical problems for medical purposes;
(19) Sales of artificial limbs or portion thereof, breast 10,344
prostheses, and other prosthetic devices for humans; braces or 10,345
other devices for supporting weakened or nonfunctioning parts of 10,346
the human body; wheelchairs; devices used to lift wheelchairs 10,347
into motor vehicles and parts and accessories to such devices; 10,348
crutches or other devices to aid human perambulation; and items 10,349
of tangible personal property used to supplement impaired 10,350
functions of the human body such as respiration, hearing, or 10,351
elimination. No exemption under this division shall be allowed 10,352
for nonprescription drugs, medicines, or remedies; items or 10,353
devices used to supplement vision; items or devices whose 10,354
function is solely or primarily cosmetic; or physical fitness 10,355
equipment. This division does not apply to sales to a physician 10,356
or medical facility for use in the treatment of a patient. 10,357
(20) Sales of emergency and fire protection vehicles and 10,359
equipment to nonprofit organizations for use solely in providing 10,360
fire protection and emergency services for political subdivisions 10,361
of the state; 10,362
(21) Sales of tangible personal property manufactured in 10,364
this state, if sold by the manufacturer in this state to a 10,365
retailer for use in the retail business of the retailer outside 10,366
of this state and if possession is taken from the manufacturer by 10,368
the purchaser within this state for the sole purpose of 10,369
immediately removing the same from this state in a vehicle owned 10,370
by the purchaser;
(22) Sales of services provided by the state or any of its 10,372
political subdivisions, agencies, instrumentalities, 10,373
240
institutions, or authorities, or by governmental entities of the 10,374
state or any of its political subdivisions, agencies, 10,375
instrumentalities, institutions, or authorities; 10,376
(23) Sales of motor vehicles to nonresidents of this state 10,378
upon the presentation of an affidavit executed in this state by 10,379
the nonresident purchaser affirming that the purchaser is a 10,380
nonresident of this state, that possession of the motor vehicle 10,381
is taken in this state for the sole purpose of immediately 10,382
removing it from this state, that the motor vehicle will be 10,383
permanently titled and registered in another state, and that the 10,384
motor vehicle will not be used in this state; 10,385
(24) Sales to persons engaged in the preparation of eggs 10,387
for sale of tangible personal property used or consumed directly 10,388
in such preparation, including such tangible personal property 10,389
used for cleaning, sanitizing, preserving, grading, sorting, and 10,390
classifying by size; packages, including material and parts for 10,391
packages, and machinery, equipment, and material for use in 10,392
packaging eggs for sale; and handling and transportation 10,393
equipment and parts therefor, except motor vehicles licensed to 10,394
operate on public highways, used in intraplant or interplant 10,395
transfers or shipment of eggs in the process of preparation for 10,396
sale, when the plant or plants within or between which such 10,397
transfers or shipments occur are operated by the same person. 10,398
"Packages" includes containers, cases, baskets, flats, fillers, 10,399
filler flats, cartons, closure materials, labels, and labeling 10,400
materials, and "packaging" means placing therein. 10,401
(25)(a) Sales of water to a consumer for residential use, 10,403
except the sale of bottled water, distilled water, mineral water, 10,404
carbonated water, or ice; 10,405
(b) Sales of water by a nonprofit corporation engaged 10,407
exclusively in the treatment, distribution, and sale of water to 10,408
consumers, if such water is delivered to consumers through pipes 10,409
or tubing. 10,410
(26) Fees charged for inspection or reinspection of motor 10,412
241
vehicles under section 3704.14 of the Revised Code; 10,413
(27) Sales of solar, wind, or hydrothermal energy systems 10,415
that meet the guidelines established under division (B) of 10,416
section 1551.20 of the Revised Code, components of such systems 10,417
that are identified under division (B) or (D) of that section, or 10,418
charges for the installation of such systems or components, made 10,419
during the period from August 14, 1979, through December 31, 10,420
1985; 10,421
(28) Sales to persons licensed to conduct a food service 10,423
operation pursuant to section 3732.03 of the Revised Code, of 10,424
tangible personal property primarily used directly for the 10,425
following:
(a) To prepare food for human consumption for sale; 10,427
(b) To preserve food that has been or will be prepared for 10,430
human consumption for sale by the food service operator, not
including tangible personal property used to display food for 10,431
selection by the consumer; 10,432
(c) To clean tangible personal property used to prepare or 10,434
serve food for human consumption for sale. 10,435
(29) Sales of animals by nonprofit animal adoption 10,437
services or county humane societies; 10,438
(30) Sales of services to a corporation described in 10,440
division (A) of section 5709.72 of the Revised Code, and sales of 10,441
tangible personal property that qualifies for exemption from 10,442
taxation under section 5709.72 of the Revised Code; 10,443
(31) Sales and installation of agricultural land tile, as 10,445
defined in division (B)(5)(a) of section 5739.01 of the Revised 10,446
Code; 10,447
(32) Sales and erection or installation of portable grain 10,449
bins, as defined in division (B)(5)(b) of section 5739.01 of the 10,450
Revised Code; 10,451
(33) The sale, lease, repair, and maintenance of;, parts 10,453
for;, or items attached to or incorporated in, motor vehicles 10,455
that are primarily used for transporting tangible personal 10,456
242
property by a person engaged in highway transportation for hire; 10,457
(34) Sales to the state headquarters of any veterans' 10,459
organization in Ohio that is either incorporated and issued a 10,460
charter by the congress of the United States or is recognized by 10,461
the United States veterans administration, for use by the 10,462
headquarters; 10,463
(35) Sales to a telecommunications service vendor of 10,465
tangible personal property and services used directly and 10,466
primarily in transmitting, receiving, switching, or recording any 10,467
interactive, two-way electromagnetic communications, including 10,468
voice, image, data, and information, through the use of any 10,469
medium, including, but not limited to, poles, wires, cables, 10,470
switching equipment, computers, and record storage devices and 10,471
media, and component parts for the tangible personal property. 10,472
The exemption provided in division (B)(35) of this section shall 10,473
be in lieu of all other exceptions under division (E)(2) of 10,474
section 5739.01 of the Revised Code to which a telecommunications 10,475
service vendor may otherwise be entitled based upon the use of 10,476
the thing purchased in providing the telecommunications service. 10,477
(36) Sales of investment metal bullion and investment 10,479
coins. "Investment metal bullion" means any elementary precious 10,480
metal that has been put through a process of smelting or 10,481
refining, including, but not limited to, gold, silver, platinum, 10,482
and palladium, and which is in such state or condition that its 10,483
value depends upon its content and not upon its form. 10,484
"Investment metal bullion" does not include fabricated precious 10,485
metal that has been processed or manufactured for one or more 10,487
specific and customary industrial, professional, or artistic 10,488
uses. "Investment coins" means numismatic coins or other forms 10,489
of money and legal tender manufactured of gold, silver, platinum, 10,490
palladium, or other metal under the laws of the United States or 10,491
any foreign nation with a fair market value greater than any 10,492
statutory or nominal value of such coins. 10,493
(37)(a) Sales where the purpose of the consumer is to use 10,495
243
or consume the things transferred in making retail sales and 10,496
consisting of newspaper inserts, catalogues, coupons, flyers, 10,497
gift certificates, or other advertising material that prices and 10,499
describes tangible personal property offered for retail sale. 10,500
(b) Sales to direct marketing vendors of preliminary 10,502
materials such as photographs, artwork, and typesetting that will 10,503
be used in printing advertising material; of printed matter that 10,504
offers free merchandise or chances to win sweepstake prizes and 10,505
that is mailed to potential customers with advertising material 10,506
described in division (B)(37)(a) of this section; and of 10,507
equipment such as telephones, computers, facsimile machines, and 10,508
similar tangible personal property primarily used to accept 10,509
orders for direct marketing retail sales. 10,510
(c) Sales of automatic food vending machines that preserve 10,512
food with a shelf life of forty-five days or less by 10,513
refrigeration and dispense it to the consumer. 10,514
For purposes of division (B)(37) of this section, "direct 10,516
marketing" means the method of selling where consumers order 10,517
tangible personal property by United States mail, delivery 10,518
service, or telecommunication and the vendor delivers or ships 10,519
the tangible personal property sold to the consumer from a 10,520
warehouse, catalogue distribution center, or similar fulfillment 10,521
facility by means of the United States mail, delivery service, or 10,522
common carrier. 10,523
(38) Sales to a person engaged in the business of 10,525
horticulture or producing livestock of materials to be 10,526
incorporated into a horticulture structure or livestock 10,527
structure; 10,528
(39) The sale of a motor vehicle that is used exclusively 10,530
for a vanpool ridesharing arrangement to persons participating in 10,531
the vanpool ridesharing arrangement when the vendor is selling 10,532
the vehicle pursuant to a contract between the vendor and the 10,533
department of transportation;
(40) Sales of personal computers, computer monitors, 10,535
244
computer keyboards, modems, and other peripheral computer 10,536
equipment to an individual who is licensed or certified to teach 10,537
in an elementary or a secondary school in this state for use by 10,538
that individual in preparation for teaching elementary or
secondary school students; 10,539
(41) Sales to a professional racing team of any of the 10,541
following: 10,542
(a) Motor racing vehicles; 10,544
(b) Repair services for motor racing vehicles; 10,547
(c) Items of property that are attached to or incorporated 10,550
in motor racing vehicles, including engines, chassis, and all 10,551
other components of the vehicles, and all spare, replacement, and 10,552
rebuilt parts or components of the vehicles; except not including 10,553
tires, consumable fluids, paint, and accessories consisting of 10,554
instrumentation sensors and related items added to the vehicle to 10,555
collect and transmit data by means of telemetry and other forms 10,556
of communication.
(42) Sales of used manufactured homes and used mobile 10,558
homes, as defined in section 5739.0210 of the Revised Code; 10,559
(43) SALES OF TANGIBLE PERSONAL PROPERTY AND SERVICES TO A 10,561
PROVIDER OF ELECTRICITY USED OR CONSUMED DIRECTLY AND PRIMARILY 10,562
IN GENERATING, TRANSMITTING, OR DISTRIBUTING ELECTRICITY FOR USE 10,563
BY OTHERS, INCLUDING PROPERTY THAT IS OR IS TO BE INCORPORATED 10,564
INTO AND WILL BECOME A PART OF THE CONSUMER'S PRODUCTION, 10,565
TRANSMISSION, OR DISTRIBUTION SYSTEM AND THAT RETAINS ITS 10,566
CLASSIFICATION AS TANGIBLE PERSONAL PROPERTY AFTER INCORPORATION; 10,567
FUEL OR POWER USED IN THE PRODUCTION, TRANSMISSION, OR 10,568
DISTRIBUTION OF ELECTRICITY; AND TANGIBLE PERSONAL PROPERTY AND 10,569
SERVICES USED IN THE REPAIR AND MAINTENANCE OF THE PRODUCTION, 10,570
TRANSMISSION, OR DISTRIBUTION SYSTEM, INCLUDING ONLY THOSE MOTOR 10,571
VEHICLES AS ARE SPECIALLY DESIGNED AND EQUIPPED FOR SUCH USE. 10,572
THE EXEMPTION PROVIDED IN THIS DIVISION SHALL BE IN LIEU OF ALL 10,573
OTHER EXCEPTIONS IN DIVISION (E)(2) OF SECTION 5739.01 OF THE 10,574
REVISED CODE TO WHICH A PROVIDER OF ELECTRICITY MAY OTHERWISE BE 10,576
245
ENTITLED BASED ON THE USE OF THE TANGIBLE PERSONAL PROPERTY OR 10,577
SERVICE PURCHASED IN GENERATING, TRANSMITTING, OR DISTRIBUTING 10,578
ELECTRICITY.
For the purpose of the proper administration of this 10,580
chapter, and to prevent the evasion of the tax, it is presumed 10,581
that all sales made in this state are subject to the tax until 10,582
the contrary is established. 10,583
As used in this section, except in division (B)(16) of this 10,585
section, "food" includes cereals and cereal products, milk and 10,586
milk products including ice cream, meat and meat products, fish 10,587
and fish products, eggs and egg products, vegetables and 10,588
vegetable products, fruits, fruit products, and pure fruit 10,589
juices, condiments, sugar and sugar products, coffee and coffee 10,590
substitutes, tea, and cocoa and cocoa products. It does not 10,591
include: spirituous or malt liquors; soft drinks; sodas and 10,592
beverages that are ordinarily dispensed at bars and soda 10,593
fountains or in connection therewith, other than coffee, tea, and 10,594
cocoa; root beer and root beer extracts; malt and malt extracts; 10,595
mineral oils, cod liver oils, and halibut liver oil; medicines, 10,596
including tonics, vitamin preparations, and other products sold 10,597
primarily for their medicinal properties; and water, including 10,598
mineral, bottled, and carbonated waters, and ice. 10,599
(C) The levy of an excise tax on transactions by which 10,601
lodging by a hotel is or is to be furnished to transient guests 10,602
pursuant to this section and division (B) of section 5739.01 of 10,603
the Revised Code does not prevent any of the following: 10,604
(1) A municipal corporation or township from levying an 10,606
excise tax for any lawful purpose not to exceed three per cent on 10,607
transactions by which lodging by a hotel is or is to be furnished 10,608
to transient guests in addition to the tax levied by this 10,609
section. If a municipal corporation or township repeals a tax 10,610
imposed under division (C)(1) of this section and a county in 10,611
which the municipal corporation or township has territory has a 10,612
tax imposed under division (C) of section 5739.024 of the Revised 10,613
246
Code in effect, the municipal corporation or township may not 10,614
reimpose its tax as long as that county tax remains in effect. A 10,615
municipal corporation or township in which a tax is levied under 10,616
division (B)(2) of section 351.021 of the Revised Code may not 10,617
increase the rate of its tax levied under division (C)(1) of this 10,618
section to any rate that would cause the total taxes levied under 10,619
both of those divisions to exceed three per cent on any lodging 10,620
transaction within the municipal corporation or township. 10,621
(2) A municipal corporation or a township from levying an 10,623
additional excise tax not to exceed three per cent on such 10,624
transactions pursuant to division (B) of section 5739.024 of the 10,625
Revised Code. Such tax is in addition to any tax imposed under 10,626
division (C)(1) of this section. 10,627
(3) A county from levying an excise tax pursuant to 10,629
division (A) of section 5739.024 of the Revised Code. 10,630
(4) A county from levying an excise tax not to exceed 10,632
three per cent of such transactions pursuant to division (C) of 10,633
section 5739.024 of the Revised Code. Such a tax is in addition 10,634
to any tax imposed under division (C)(3) of this section. 10,635
(5) A convention facilities authority, as defined in 10,637
division (A) of section 351.01 of the Revised Code, from levying 10,638
the excise taxes provided for in division (B) of section 351.021 10,639
of the Revised Code. 10,640
(6) A county from levying an excise tax not to exceed one 10,642
and one-half per cent of such transactions pursuant to division 10,643
(D) of section 5739.024 of the Revised Code. Such tax is in 10,644
addition to any tax imposed under division (C)(3) or (4) of this 10,645
section. 10,646
(7) A county from levying an excise tax not to exceed one 10,648
and one-half per cent of such transactions pursuant to division 10,649
(E) of section 5739.024 of the Revised Code. Such a tax is in 10,650
addition to any tax imposed under division (C)(3), (4), or (6) of 10,651
this section. 10,652
(D) The levy of this tax on retail sales of recreation and 10,654
247
sports club service shall not prevent a municipal corporation 10,655
from levying any tax on recreation and sports club dues or on any 10,656
income generated by recreation and sports club dues. 10,657
Section 2. That existing sections 113.061, 133.04, 10,659
715.013, 718.01, 1551.33, 1551.35, 3317.028, 4905.01, 4905.03, 10,661
4905.10, 4905.34, 4905.402, 4905.42, 4905.70, 4906.10, 4909.01, 10,662
4909.05, 4909.15, 4909.161, 4911.18, 4933.33, 4933.81, 4935.04, 10,664
5117.01, 5117.02, 5117.03, 5117.04, 5117.05, 5117.07, 5117.08, 10,665
5117.09, 5117.10, 5117.12, 5701.03, 5703.052, 5703.053, 5703.14, 10,667
5705.34, 5727.01, 5727.05, 5727.06, 5727.11, 5727.111, 5727.15, 10,668
5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 10,669
5727.45, 5727.47, 5727.53, 5727.60, 5727.61, 5727.72, 5727.99,
5733.04, 5733.05, 5733.06, 5733.09, 5733.98, 5739.011, and 10,670
5739.02 and sections 4905.301, 4905.66, 4905.67, 4905.68, 10,672
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 4909.192, 10,673
4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 4913.05, 4913.06, 10,674
4913.07, 4933.27, 4933.34, 5727.231, and 5727.73 of the Revised 10,675
Code are hereby repealed.
Section 3. Sections 718.01, 5701.03, 5727.06, 5727.111, 10,677
and 5727.15 of the Revised Code, as amended by this act, shall 10,678
take effect January 1, 2001. 10,679
Section 4. Sections 113.061, 4933.33, 5703.052, 5703.053, 10,681
5727.05, 5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 10,682
5727.42, 5727.45, 5727.53, 5727.60, 5727.61, 5727.72, 5739.011, 10,684
and 5739.02 of the Revised Code, as amended by this act, and 10,685
section 5727.03 of the Revised Code, as enacted by this act,
shall take effect May 1, 2001. 10,686
Section 5. Sections 1551.33, 1551.35, 4905.01, 4905.03, 10,688
4905.34, 4905.402, 4905.42, 4905.70, 4906.10, 4909.01, 4909.05, 10,690
4909.15, 4909.161, 4935.04, 5117.01, 5117.02, 5117.03, 5117.04, 10,691
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, and 5703.14 of the 10,692
Revised Code, as amended by this act, shall take effect on 10,693
January 1, 2001, but if the Public Utilities Commission issues an 10,694
order under division (C) of section 4928.01 of the Revised Code, 10,695
248
as enacted by this act, the amendments to such sections shall be 10,696
applied accordingly. In addition, the amendment of division 10,697
(A)(4)(b) of section 4909.15 of the Revised Code, as amended by 10,698
this act, shall be not applied until January 1, 2002. 10,699
Section 6. Sections 133.04, 5705.34, 5733.04, 5733.05, 10,701
5733.06, 5733.09, and 5733.98 of the Revised Code, as amended by 10,702
this act, and section 5733.39 of the Revised Code, as enacted by 10,703
this act, shall take effect January 1, 2002. 10,704
Section 7. Section 5727.391 of the Revised Code is hereby 10,707
repealed effective January 1, 2002.
Section 8. Sections 4905.301, 4905.66, 4905.67, 4905.68, 10,710
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 4909.192, 10,711
4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 4913.05, 4913.06, 10,712
4913.07, 4933.27, and 4933.34 of the Revised Code are hereby 10,713
repealed effective on January 1, 2001, but if the Public 10,714
Utilities Commission issues an order under division (C) of 10,715
section 4928.01 of the Revised Code, as enacted by this act, the 10,716
repeal of such sections shall be applied accordingly. 10,717
Section 9. The Public Utilities Commission, Consumers' 10,719
Counsel, and the Attorney General shall develop a memorandum of 10,720
understanding not later than January 1, 2000, to establish a 10,721
system to respond effectively and efficiently to residential 10,722
consumer inquiries and complaints and shall provide a joint 10,723
report to the General Assembly on the efforts of the three 10,724
agencies not later than June 30, 2002. 10,725
Section 10. (A) As used in this section: 10,727
(1) "Electric company" and "rural electric company" have 10,729
the same meanings as in section 5727.01 of the Revised Code. 10,730
(2) "Gross receipts" means gross receipts determined in 10,732
accordance with section 5727.33 of the Revised Code. 10,733
(B) Each electric company and rural electric company shall 10,735
pay the public utility excise tax imposed by section 5727.30 of 10,736
the Revised Code on the company's gross receipts received during 10,737
the period of April 30, 2000, through April 30, 2001. 10,738
249
Notwithstanding section 5727.31 of the Revised Code, each 10,739
electric company and rural electric company shall make tax 10,741
payments toward that liability. The first payment must be made 10,742
on or before October 15, 2000, and shall equal one-third of the 10,743
estimated liability shown in the report filed on or before August 10,744
1, 2000. The second payment must be made on or before March 1, 10,745
2001, and shall equal one-third of the tax assessed by the Tax 10,746
Commissioner on or before the first Monday in November, 2000. 10,747
The last payment must be made on or before June 1, 2001, and 10,748
shall equal one-fourth of the tax assessed by the Commissioner. 10,749
The final report for the period of April 30, 2000, through April 10,750
30, 2001, shall be filed by an electric company or a rural 10,751
electric company on or before August 1, 2001, in accordance with 10,752
division (A) of section 5727.31 and section 5727.32 of the 10,753
Revised Code. 10,754
On or before the first Monday of November 2001, the Tax 10,756
Commissioner shall assess an excise tax equal to four and 10,757
three-quarters per cent of the gross receipts received by 10,758
electric companies and rural electric companies during the period 10,760
of April 30, 2000, through April 30, 2001. Except as provided in 10,761
section 5727.03 of the Revised Code, as enacted by this act, 10,762
after payment of this assessment, electric companies and rural 10,763
electric companies are not subject to the excise tax on gross 10,764
receipts imposed by section 5727.30 of the Revised Code. 10,765
Section 11. Electric companies, as defined in section 10,767
5727.01 of the Revised Code, shall first be subject to the 10,768
corporation franchise tax under Chapter 5733. of the Revised Code 10,769
for tax year 2001, as "tax year" is defined in section 5733.04 of 10,770
the Revised Code. The amendments in this act to sections 10,771
4909.15, 5733.04, 5733.05, 5733.06, 5733.09, and 5733.98 of the 10,772
Revised Code, and the enactment in this act of section 5733.39 of 10,773
the Revised Code, first apply for tax year 2001. 10,774
Section 12. An electric company that is entitled to carry 10,776
forward a credit against its public utility excise tax liability 10,777
250
under section 5727.391 of the Revised Code before the repeal of 10,778
that section under this act, is not entitled to carry forward any 10,779
amount remaining after its last public utility excise tax payment 10,780
and claim that amount as a credit against its corporation 10,781
franchise tax liability under section 5733.39 of the Revised 10,782
Code, as enacted by this act. 10,783
Section 13. The tax levied under section 5727.81 of the 10,785
Revised Code first applies on and after May 1, 2001. Before that 10,786
date, any electric distribution company shall register with the 10,787
Tax Commissioner in accordance with section 5727.93 of the 10,788
Revised Code, as enacted by this act. 10,789
Section 14. Section 5727.47 of the Revised Code is 10,791
presented in this act as a composite of the section as amended by 10,792
both Am. Sub. H.B. 904 and Am. S.B. 358 of the 119th General 10,793
Assembly, with the new language of neither of the acts shown in 10,794
capital letters. This is in recognition of the principle stated 10,795
in division (B) of section 1.52 of the Revised Code that such 10,796
amendments are to be harmonized where not substantively 10,797
irreconcilable and constitutes a legislative finding that such is 10,798
the resulting version in effect prior to the effective date of 10,799
this act.