To be Reported by the Senate Ways and Means Committee 1
May 18, 1999 2
123rd General Assembly 5
Regular Session Sub. S. B. No. 3 6
1999-2000 7
SENATORS JOHNSON-FINAN-BLESSING-HERINGTON 9
_________________________________________________________________ 11
A B I L L
To amend sections 113.061, 133.04, 715.013, 718.01, 13
1551.33, 1551.35, 3317.028, 4905.01, 4905.02, 14
4905.03, 4905.10, 4905.14, 4905.34, 4905.40,
4905.42, 4905.70, 4906.10, 4909.01, 4909.05, 17
4909.15, 4909.161, 4911.18, 4933.33, 4933.81,
4935.04, 5117.01, 5117.02, 5117.03, 5117.04, 18
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, 19
5117.12, 5701.03, 5703.052, 5703.053, 5703.14, 20
5705.34, 5727.01, 5727.02, 5727.05, 5727.06, 21
5727.11, 5727.111, 5727.15, 5727.30, 5727.31, 22
5727.311, 5727.32, 5727.33, 5727.38, 5727.42,
5727.45, 5727.47, 5727.53, 5727.60, 5727.61, 23
5727.72, 5727.99, 5733.04, 5733.05, 5733.06, 24
5733.09, 5733.98, 5739.011, and 5739.02; to enact
sections 4928.01 to 4928.20, 4928.31 to 4928.45, 25
4928.51 to 4928.58, 4928.61 to 4928.63, 5727.03, 26
5727.80 to 5727.95, and 5733.39; and to repeal 27
sections 4905.301, 4905.66, 4905.67, 4905.68, 28
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 29
4909.192, 4909.193, 4913.01, 4913.02, 4913.03,
4913.04, 4913.05, 4913.06, 4913.07, 4933.27, 31
4933.34, 5727.231, 5727.391, and 5727.73 of the 32
Revised Code to provide for competition in retail 33
electric service, including provisions regarding
market structure, consumer protection, 34
competitive auctioning, and transition revenues;
to levy a kilowatt-hour excise tax on electric 35
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distribution companies; to revise taxes for 36
electric companies and rural electric companies;
and to reduce tax assessment rates on certain 38
electric company and rural electric company
tangible personal property. 39
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 41
Section 1. That sections 113.061, 133.04, 715.013, 718.01, 43
1551.33, 1551.35, 3317.028, 4905.01, 4905.02, 4905.03, 4905.10, 45
4905.14, 4905.34, 4905.40, 4905.42, 4905.70, 4906.10, 4909.01, 47
4909.05, 4909.15, 4909.161, 4911.18, 4933.33, 4933.81, 4935.04, 48
5117.01, 5117.02, 5117.03, 5117.04, 5117.05, 5117.07, 5117.08, 49
5117.09, 5117.10, 5117.12, 5701.03, 5703.052, 5703.053, 5703.14, 50
5705.34, 5727.01, 5727.02, 5727.05, 5727.06, 5727.11, 5727.111, 51
5727.15, 5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 52
5727.42, 5727.45, 5727.47, 5727.53, 5727.60, 5727.61, 5727.72, 53
5727.99, 5733.04, 5733.05, 5733.06, 5733.09, 5733.98, 5739.011, 54
and 5739.02 be amended and sections 4928.01, 4928.02, 4928.03, 56
4928.04, 4928.05, 4928.06, 4928.07, 4928.08, 4928.09, 4928.10, 57
4928.11, 4928.12, 4928.13, 4928.14, 4928.15, 4928.16, 4928.17, 58
4928.18, 4928.19, 4928.20, 4928.31, 4928.32, 4928.33, 4928.34, 59
4928.35, 4928.36, 4928.37, 4928.38, 4928.39, 4928.40, 4928.41, 60
4928.42, 4928.43, 4928.44, 4928.45, 4928.51, 4928.52, 4928.53, 61
4928.54, 4928.55, 4928.56, 4928.57, 4928.58, 4928.61, 4928.62, 62
4928.63, 5727.03, 5727.80, 5727.81, 5727.82, 5727.83, 5727.84, 64
5727.85, 5727.86, 5727.87, 5727.88, 5727.89, 5727.90, 5727.91, 65
5727.92, 5727.93, 5727.94, 5727.95, and 5733.39 of the Revised 67
Code be enacted to read as follows:
Sec. 113.061. The treasurer of state shall adopt rules in 76
accordance with Chapter 119. of the Revised Code governing the 77
remittance of taxes by electronic funds transfer as required 78
under sections 5727.311, 5727.83, 5733.022, 5735.062, 5739.032, 79
5739.122, 5741.121, and 5747.072 of the Revised Code and any 81
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other section of the Revised Code under which a person is 82
required to remit taxes by electronic funds transfer. The rules 83
shall govern the modes of electronic funds transfer acceptable to 84
the treasurer OF STATE and under what circumstances each mode is 85
acceptable, the content and format of electronic funds transfers, 87
the coordination of payment by electronic funds transfer and 88
filing of associated tax reports and returns, the remittance of 89
taxes by means other than electronic funds transfer by persons 90
otherwise required to do so but relieved of the requirement by 91
the treasurer of state, and any other matter that in the opinion 92
of the treasurer of state facilitates payment by electronic funds 93
transfer in a manner consistent with those sections. 94
Upon failure by a person, if so required, to remit taxes by 96
electronic funds transfer in the manner prescribed under section 97
5727.83, 5733.022, 5735.062, 5739.032, 5739.122, 5741.121, or 99
5747.072 of the Revised Code and rules adopted under this 100
section, the treasurer of state shall notify the tax commissioner 101
of such failure if the treasurer OF STATE determines that such 102
failure was not due to reasonable cause or was due to willful 104
neglect, and shall provide the tax commissioner with any 105
information used in making that determination. The tax 106
commissioner may assess an additional charge as specified in the 107
respective section of the Revised Code governing the requirement 108
to remit taxes by electronic funds transfer. 109
The treasurer of state may implement means of 111
acknowledging, upon the request of a taxpayer, receipt of tax 112
remittances made by electronic funds transfer, and may adopt 113
rules governing acknowledgments. The cost of acknowledging 114
receipt of electronic remittances shall be paid by the person 115
requesting acknowledgment. 116
The treasurer of state, not the tax commissioner, is 118
responsible for resolving any problems involving electronic funds 119
transfer transmissions. 120
Sec. 133.04. (A) As used in this chapter, "net 129
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indebtedness" means, as determined pursuant to this section, the 130
principal amount of the outstanding securities of a subdivision 131
less the amount held in a bond retirement fund to the extent such 132
amount is not taken into account in determining the principal 133
amount outstanding under division (AA) of section 133.01 of the 134
Revised Code. For purposes of this definition, the principal 135
amount of outstanding securities includes the principal amount of 136
outstanding securities of another subdivision apportioned to the 137
subdivision as a result of acquisition of territory, and excludes 138
the principal amount of outstanding securities of the subdivision 139
apportioned to another subdivision as a result of loss of 140
territory and the payment or reimbursement obligations of the 141
subdivision under credit enhancement facilities relating to 142
outstanding securities. 143
(B) In calculating the net indebtedness of a subdivision, 145
none of the following securities, including anticipatory 146
securities issued in anticipation of their issuance, shall be 147
considered: 148
(1) Securities issued in anticipation of the levy or 150
collection of special assessments, either in original or refunded 151
form; 152
(2) Securities issued in anticipation of the collection of 154
current revenues for the fiscal year or other period not to 155
exceed twelve consecutive months, or securities issued in 156
anticipation of the collection of the proceeds from a 157
specifically identified voter-approved tax levy; 158
(3) Securities issued for purposes described in section 160
133.12 of the Revised Code; 161
(4) Securities issued under Chapter 122., 140., 165., 163
725., or 761., or section 131.23 of the Revised Code; 164
(5) Securities issued to pay final judgments or 166
court-approved settlements under authorizing laws and securities 167
issued under section 2744.081 of the Revised Code; 168
(6) Securities issued to pay costs of permanent 170
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improvements to the extent they are issued in anticipation of the 171
receipt of, and are payable as to principal from, federal or 172
state grants or distributions for, or legally available for, that 174
principal or for the costs of those permanent improvements; 175
(7) Securities issued to evidence loans from the state 177
capital improvements fund pursuant to Chapter 164. of the Revised 178
Code or from the state infrastructure bank pursuant to section 179
5531.09 of the Revised Code; 180
(8) SECURITIES ISSUED IN AN AMOUNT EQUAL TO THE PROPERTY 182
TAX REPLACEMENT PAYMENTS RECEIVED UNDER SECTION 5727.85 OR 183
5727.86 OF THE REVISED CODE; 184
(9) Other securities, including self-supporting 186
securities, excepted by law from the calculation of net 187
indebtedness or from the application of this chapter; 188
(9)(10) Any other securities outstanding on October 30, 190
1989, and then excepted from the calculation of net indebtedness 194
or from the application of this chapter, and securities issued at 195
any time to fund or refund those securities. 196
Sec. 715.013. Except as otherwise expressly authorized by 205
the Revised Code, no municipal corporation shall levy a tax that 206
is the same as or similar to a tax levied under Chapter 322., 207
3734., 3769., 4123., 4141., 4301., 4303., 4305., 4307., 4309., 208
5707., 5725., 5727., 5728., 5729., 5731., 5735., 5737., 5739., 209
5741., 5743., or 5749. of the Revised Code. 210
This section does not prohibit a municipal corporation from 212
levying a tax on amounts received for admission to any place OR, 213
ON AND AFTER JANUARY 1, 2002, ON THE INCOME OF AN ELECTRIC 214
COMPANY, AS DEFINED IN SECTION 5727.01 OF THE REVISED CODE. 215
Sec. 718.01. (A) As used in this chapter: 224
(1) "Internal Revenue Code" means the Internal Revenue 226
Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. 227
(2) "Schedule C" means internal revenue service schedule C 229
filed by a taxpayer pursuant to the Internal Revenue Code. 230
(3) "Form 2106" means internal revenue service form 2106 232
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filed by a taxpayer pursuant to the Internal Revenue Code. 233
(4) "Intangible income" means income of any of the 235
following types: income yield, interest, dividends, or other 236
income arising from the ownership, sale, exchange, or other 237
disposition of intangible property including, but not limited to, 238
investments, deposits, money, or credits as those terms are
defined in Chapter 5701. of the Revised Code. 239
(B) No municipal corporation with respect to that income 241
which THAT it may tax shall tax such income at other than a 243
uniform rate.
(C) No municipal corporation shall levy a tax on income at 245
a rate in excess of one per cent without having obtained the 246
approval of the excess by a majority of the electors of the 247
municipality voting on the question at a general, primary, or 248
special election. The legislative authority of the municipal 249
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the 250
ordinance together with a resolution specifying the date the 251
election is to be held and directing the board of elections to 252
conduct the election. The ballot shall be in the following form: 253
"Shall the Ordinance providing for a... per cent levy on income 254
for (Brief description of the purpose of the proposed levy) be
passed? 255
FOR THE INCOME TAX 257
AGAINST THE INCOME TAX" 259
In the event of an affirmative vote, the proceeds of the 261
levy may be used only for the specified purpose. 262
(D)(1) Except as otherwise provided in division (D)(2) of 264
this section, no municipal corporation shall exempt from a tax on 265
income, compensation for personal services of individuals over 266
eighteen years of age or the net profit from a business or 267
profession.
(2) The legislative authority of a municipal corporation 269
may, by ordinance or resolution, exempt from a tax on income any 270
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compensation arising from the grant, sale, exchange, or other 271
disposition of a stock option; the exercise of a stock option; or 272
the sale, exchange, or other disposition of stock purchased under 273
a stock option.
(E) Nothing in this section shall prevent a municipal 275
corporation from permitting lawful deductions as prescribed by 276
ordinance. If a taxpayer's taxable income includes income 277
against which the taxpayer has taken a deduction for federal 278
income tax purposes as reportable on the taxpayer's form 2106, 279
and against which a like deduction has not been allowed by the
municipal corporation, the municipal corporation shall deduct 280
from the taxpayer's taxable income an amount equal to the 281
deduction shown on such form allowable against such income, to 282
the extent not otherwise so allowed as a deduction by the 283
municipal corporation. In the case of a taxpayer who has a net
profit from a business or profession that is operated as a sole 284
proprietorship, no municipal corporation may tax or use as the 285
base for determining the amount of the net profit that shall be 286
considered as having a taxable situs in the municipal 287
corporation, a greater amount than the net profit reported by the
taxpayer on schedule C filed in reference to the year in question 288
as taxable income from such sole proprietorship, except as 289
otherwise specifically provided by ordinance or regulation. 290
(F) No municipal corporation shall tax any of the 292
following:
(1) The military pay or allowances of members of the armed 294
forces of the United States and of members of their reserve 295
components, including the Ohio national guard; 296
(2) The income of religious, fraternal, charitable, 298
scientific, literary, or educational institutions to the extent 299
that such income is derived from tax-exempt real estate, 300
tax-exempt tangible or intangible property, or tax-exempt 301
activities;
(3) Except as otherwise provided in division (G) of this 303
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section, intangible income; 304
(4) Compensation paid under section 3501.28 or 3501.36 of 306
the Revised Code to a person serving as a precinct election 307
official, to the extent that such compensation does not exceed 308
one thousand dollars annually. Such compensation in excess of 309
one thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer 310
of such compensation to withhold any tax from that compensation. 311
(5) Compensation paid to an employee of a transit 313
authority, regional transit authority, or regional transit 314
commission created under Chapter 306. of the Revised Code for 315
operating a transit bus or other motor vehicle for the authority 316
or commission in or through the municipal corporation, unless the
bus or vehicle is operated on a regularly scheduled route, the 317
operator is subject to such a tax by reason of residence or 318
domicile in the municipal corporation, or the headquarters of the 319
authority or commission is located within the municipal 320
corporation.
(6) The income of a public utility when that public 323
utility is subject to the tax levied under section 5727.30 of the 324
Revised Code, EXCEPT STARTING JANUARY 1, 2002, THE INCOME OF AN 325
ELECTRIC COMPANY OR COMBINED COMPANY, AS DEFINED IN SECTION 326
5727.01 OF THE REVISED CODE, MAY BE TAXED BY A MUNICIPAL 327
CORPORATION. FOR A COMBINED COMPANY, ONLY THE INCOME ATTRIBUTED 328
FROM THE ACTIVITY OF AN ELECTRIC COMPANY SHALL BE SUBJECT TO
TAXATION BY A MUNICIPAL CORPORATION. 329
(G) Any municipal corporation that taxes any type of 331
intangible income on March 29, 1988, pursuant to Section 3 of 332
Amended Substitute Senate Bill No. 238 of the 116th general 333
assembly, may continue to tax that type of income after 1988 if a 334
majority of the electors of the municipal corporation voting on 335
the question of whether to permit the taxation of that type of
intangible income after 1988 vote in favor thereof at an election 336
held on November 8, 1988. 337
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(H) Nothing in this section or section 718.02 of the 339
Revised Code, shall authorize the levy of any tax on income which 341
THAT a municipal corporation is not authorized to levy under 343
existing laws or shall require a municipal corporation to allow a 344
deduction from taxable income for losses incurred from a sole 345
proprietorship or partnership.
Sec. 1551.33. (A) The director of development shall 354
appoint and fix the compensation of the director of the Ohio coal 355
development office established under section 1551.32 of the 356
Revised Code. The director of the office shall serve at the 357
pleasure of the director of development. 358
(B) The director of the office shall do all of the 360
following:
(1) Biennially prepare and maintain the Ohio coal 362
development agenda required under section 1551.34 of the Revised 363
Code; 364
(2) Propose and support policies for the office consistent 366
with the Ohio coal development agenda and develop means to 367
implement the agenda; 368
(3) Apportion for the office's administrative costs no 370
more than ten per cent of the moneys credited to the Ohio coal 371
development fund created under section 1551.36 of the Revised 372
Code; 373
(4) Initiate, undertake, and support projects to carry out 375
the office's purposes and ensure that the projects are consistent 376
with and meet the selection criteria established by the Ohio coal 377
development agenda; 378
(5) Actively encourage joint participation in and, when 380
feasible, joint funding of the office's projects with 381
governmental agencies, electric utilities, universities and 382
colleges, other public or private interests, or any other person; 383
(6) Establish a table of organization for and employ such 385
employees and agents as are necessary for the administration and 386
operation of the office; 387
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(7) Appoint specified members of and convene the technical 389
advisory committee established under section 1551.35 of the 390
Revised Code; 391
(8) Review, with the assistance of the technical advisory 393
committee, proposed coal research and development projects as 394
defined in section 1555.01 of the Revised Code, and coal 395
development projects, submitted to the office by public utilities 396
for the purposes PURPOSE of sections 4905.301, SECTION 4905.304, 398
and 4909.191 of the Revised Code. If the director and the 399
advisory committee determine that any such facility or project 400
has as its purpose the enhanced use of Ohio coal in an 401
environmentally acceptable, cost effective manner, promotes 402
energy conservation, is cost effective, and is environmentally 403
sound, the director shall submit to the public utilities 404
commission a report recommending that the commission allow the 405
recovery of costs associated with the facility or project under 406
section 4905.301, 4905.304, or 4909.191 of the Revised Code and 407
including the reasons for the recommendation; 408
(9) Establish such policies, procedures, and guidelines as 410
are necessary to achieve the office's purposes. 411
(C) With the approval of the director of development, the 413
director of the office may exercise any of the powers and duties 414
of the director of development as the directors consider 415
appropriate or desirable to achieve the office's purposes, 416
including, but not limited to, the powers and duties enumerated 417
in sections 1551.11, 1551.12, 1551.13, and 1551.15 of the Revised 418
Code. 419
Additionally, the director of the office may make loans to 421
governmental agencies or persons for projects to carry out the 422
office's purposes. Fees, charges, rates of interest, times of 423
payment of interest and principal, and other terms, conditions, 424
and provisions of the loans shall be such as the director of the 425
office determines to be appropriate and in furtherance of the 426
purposes for which the loans are made. The mortgage lien 427
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securing any moneys lent by the director of the office may be 428
subordinate to the mortgage lien securing any moneys lent or 429
invested by a financial institution, but shall be superior to 430
that securing any moneys lent or expended by any other person. 431
The moneys used in making the loans shall be disbursed upon order 432
of the director of the office. 433
Sec. 1551.35. (A) There is hereby established a technical 442
advisory committee to assist the director of the Ohio coal 443
development office established under section 1551.32 of the 444
Revised Code in achieving the office's purposes. The director 445
shall appoint to the committee one member of the public utilities 446
commission of Ohio and one representative each of coal production 447
companies, the united mine workers of America, electric 448
utilities, manufacturers that use Ohio coal, and environmental 449
organizations, as well as two people with a background in coal 450
research and development technology, one of whom is employed at 451
the time of the member's appointment by a state university, as 453
defined in section 3345.011 of the Revised Code. In addition, 454
the committee shall include four legislative members. The 455
speaker and minority leader of the house of representatives each 456
shall appoint one member of the house of representatives, and the 457
president and minority leader of the senate each shall appoint 458
one member of the senate, to the committee. The director of 459
environmental protection, representing the environmental 461
protection agency, the Ohio air quality development authority, 462
and the Ohio water development authority, shall serve on the 463
committee as members ex officio. Any member of the committee may
designate in writing a substitute to serve in the member's 464
absence on the committee. The director of environmental 465
protection may designate in writing the chief of the air 466
pollution control division of the agency to represent the agency. 467
Members shall serve on the committee at the pleasure of their 468
appointing authority. Members of the committee appointed by the 469
director of the office and, notwithstanding section 101.26 of the 470
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Revised Code, legislative members of the committee, when engaged 471
in their official duties as members of the committee, shall be 472
compensated on a per diem basis in accordance with division (J) 473
of section 124.15 of the Revised Code, except that the member of 474
the public utilities commission of Ohio and, while employed by a 475
state university, the member with a background in coal research, 476
shall not be so compensated. Members shall receive their actual 477
and necessary expenses incurred in the performance of their 478
duties.
(B) The technical advisory committee shall review and make 480
recommendations concerning the Ohio coal development agenda 481
required under section 1551.34 of the Revised Code, project 482
proposals, research and development projects submitted to the 483
office by public utilities for the purposes PURPOSE of sections 485
4905.301, SECTION 4905.304, and 4909.191 of the Revised Code, 486
proposals for grants, loans, and loan guarantees for purposes of 487
sections 1555.01 to 1555.06 of the Revised Code, and such other 488
topics as the director of the office considers appropriate. 489
(C) The technical advisory committee may hold an executive 491
session at any regular or special meeting for the purpose of 492
considering research and development project proposals or 493
applications for assistance submitted to the Ohio coal 494
development office under section 1551.33, or sections 1555.01 to 495
1555.06, of the Revised Code, to the extent that such proposals 496
or applications consist of trade secrets or other proprietary 497
information. 498
Any materials or data submitted to, made available to, or 500
received by the director of development or the director of the 501
Ohio coal development office in connection with agreements for 502
assistance entered into under this chapter or Chapter 1555. of 504
the Revised Code, or any information taken from such materials or 505
data for any purpose, to the extent that the materials or data 506
consist of trade secrets or other proprietary information, are 507
not public records for the purposes of section 149.43 of the 508
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Revised Code.
As used in this division, "trade secrets" has the same 510
meaning as in section 1333.61 of the Revised Code. 511
Sec. 3317.028. (A) On or before the fifteenth day of May 520
in each calendar year, the tax commissioner shall determine for 521
each school district whether the taxable value of all tangible 522
personal property, including utility tangible personal property, 523
subject to taxation by the district in the preceding tax year was 524
less or greater than the taxable value of such property during 525
the second preceding tax year. If any such decrease exceeds five 526
per cent of the district's tangible personal property taxable 527
value included in the total taxable value used in the district's 528
state aid computation for the fiscal year that ends in the 529
current calendar year, or if any such increase exceeds five per 530
cent of the district's total taxable value used in the district's 531
state aid computation for the fiscal year that ends in the 532
current calendar year, the tax commissioner shall certify BOTH OF 533
THE FOLLOWING to the department of education: 535
(A)(1) The taxable value of the tangible personal property 537
increase or decrease, including utility tangible personal 538
property increase or decrease, which shall be considered a change 539
in valuation; and 540
(B)(2) The decrease or increase in taxes charged and 542
payable on such change in taxable value calculated in the same 543
manner as in division (A)(3) of section 3317.021 of the Revised 544
Code.
(B) NOTWITHSTANDING DIVISION (A) OF THIS SECTION, WHEN 548
DETERMINING UNDER THAT DIVISION IN CALENDAR YEAR 2002 WHETHER THE 549
TAXABLE VALUE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAXATION 550
BY EACH SCHOOL DISTRICT IN THE PRECEDING TAX YEAR WAS LESS OR 551
GREATER THAN THE TAXABLE VALUE OF SUCH PROPERTY DURING THE SECOND 552
PRECEDING TAX YEAR, THE TAX COMMISSIONER SHALL EXCLUDE FROM THE 553
TAXABLE VALUE FOR BOTH YEARS THE TAX VALUE LOSS, AS DEFINED IN 554
SECTION 5727.84 OF THE REVISED CODE.
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(C) Upon receipt of such certification, the department of 556
education shall reduce or increase by the respective amounts 557
certified, the taxable value and the taxes charged and payable 558
that were used in the district's state aid computation under 559
section 3317.022 of the Revised Code for the fiscal year that 561
ends in the current calendar year and shall recompute the state 562
aid for such fiscal year. During the last six months of the 563
fiscal year, the department shall pay the district a sum equal to 564
one-half of the recomputed payments in lieu of the payments 565
otherwise required under such sections.
Sec. 4905.01. As used in this chapter: 574
(A) "Railroad" has the meaning set forth in section 576
4907.02 of the Revised Code. 577
(B) "Motor transportation company" has the meaning set 579
forth in sections 4905.03 and 4921.02 of the Revised Code. 580
(C) "Trailer," "public highway," "fixed termini," "regular 582
route," and "irregular route" have the meanings set forth in 583
section 4921.02 of the Revised Code. 584
(D) "Private motor carrier," "contract carrier by motor 586
vehicle," "motor vehicle," and "charter party trip" have the 587
meanings set forth in section 4923.02 of the Revised Code. 588
(E) "Delivery cost" means the cost of delivery of fuel, to 590
be used for the generation of electricity, from the site of 591
production directly to the site of an electric generating 592
facility. 593
(F) "Acquisition cost" means the cost to an electric light 595
company of acquiring fuel for generation of electricity. In the 596
case of a fuel supply owned by the company, such term shall also 597
include the cost of legally extracting the fuel and its handling 598
prior to its shipment to the company. In the case of a coal 599
supply owned or controlled in whole or in part by the company, 600
such term shall not exceed a price that is, in the judgment of 601
the public utilities commission, reasonable when compared to the 602
average cost per million British thermal units of similar quality 603
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coal purchased from all independent like mining operations under 604
similar term contracts during the same period. In determining a 605
reasonable price for coal from a coal supply owned or controlled 606
in whole or in part by the company, the public utilities 607
commission shall consider the use of: 608
(1) Capital by the developer of the mining operation in a 610
manner that did not: 611
(a) Take into account intermediate or long-term trends in 613
the coal mining industry; or 614
(b) Incorporate a design consistent with long-term 616
dependability; and 617
(c) Take into account the intermediate or long-term cost 619
and reliable energy supply interests of the company's customers; 620
or 621
(2) Ineffective operating techniques. Such term does not 623
embrace any associated cost, including, but not limited to, 624
delivery cost, the cost of handling the fuel after its delivery 625
to such facility, the cost of such processing, readying, or 626
refinement of the fuel as may be necessary in order to use the 627
fuel to generate electricity, or the cost of disposing of any 628
residue of such fuel after it has been so used. To the extent 629
the washing of coal is required, by law or rule, to remove or 630
reduce sulfur compounds or any other impurity, "acquisition cost" 631
includes the cost of such washing. 632
(G) "Fuel component" means acquisition and delivery costs 634
of fuel for the generation of electricity, including the 635
allowable costs of purchased power as defined in section 4909.159 636
of the Revised Code, divided by the corresponding number of net 637
kilowatt hours generated and purchased. 638
(H) "Base period" means the most recent six-month period 640
for which the public utilities commission has determined either 641
the amount of the fuel component or the fuel cost per kilowatt 642
hour included in the base rates of an electric light company, 643
whichever is last determined. 644
16
(I) "Current period" means the six-month period 646
immediately succeeding the base period for which the public 647
utilities commission has determined the amount of the fuel 648
component in the base rate of an electric light company. 649
(J) "Ohio coal research and development costs" means all 651
reasonable costs associated with a facility or project undertaken 652
by a public utility for which a recommendation to allow the 653
recovery of costs associated therewith has been made under 654
division (B)(8) of section 1551.33 of the Revised Code, 655
including, but not limited to, capital costs, such as costs of 656
debt and equity; construction and operation costs; termination 657
and retirement costs; costs of feasibility and marketing studies 658
associated with the project; and the acquisition and delivery 659
costs of Ohio coal used in the project, less any expenditures of 660
grant moneys. 661
(K) "Compliance facility" means property that is designed, 663
constructed, or installed, and used, at a coal-fired electric 664
generating facility for the primary purpose of complying with 665
Phase I acid rain control requirements under Title IV of the 666
"Clean Air Act Amendments of 1990," 104 Stat. 2584, 42 U.S.C.A. 667
7651, and that controls or limits emissions of sulfur or nitrogen 668
compounds resulting from the combustion of coal through the 669
removal or reduction of those compounds before, during, or after 670
the combustion of the coal, but before the combustion products 671
are emitted into the atmosphere. "Compliance facility" also 672
includes any of the following: 673
(1) A facility that removes sulfur compounds from coal 675
before the combustion of the coal and that is located off the 676
premises of the electric generating facility where the coal 677
processed by the compliance facility is burned; 678
(2) Modifications to the electric generating facility 680
where the compliance facility is constructed or installed that 681
are necessary to accommodate the construction or installation, 682
and operation, of the compliance facility; 683
17
(3) A byproduct disposal facility, as defined in section 685
3734.051 of the Revised Code, that exclusively disposes of wastes 686
produced by the compliance facility and other coal combustion 687
byproducts produced by the generating unit in or to which the 688
compliance facility is incorporated or connected regardless of 689
whether the byproduct disposal facility is located on the same 690
premises as the compliance facility or generating unit that 691
produces the wastes disposed of at the facility; 692
(4) Facilities or equipment that is acquired, constructed, 694
or installed, and used, at a coal-fired electric generating 695
facility exclusively for the purpose of handling the byproducts 696
produced by the compliance facility or other coal combustion 697
byproducts produced by the generating unit in or to which the 698
compliance facility is incorporated or connected. 699
Sec. 4905.02. As used in this chapter, "public utility" 708
includes every corporation, company, copartnership, person, or 709
association, their lessees, trustees, or receivers, defined in 710
section 4905.03 of the Revised Code, including all public 711
utilities that operate their utilities not for profit, except the 712
following:
(A) Electric light companies that operate their utilities 714
not for profit;
(B) Public utilities, other than telephone companies, that 716
are owned and operated exclusively by and solely for the 717
utilities' customers, including any consumer or group of 719
consumers purchasing, delivering, storing, or transporting, or 720
seeking to purchase, deliver, store, or transport, natural gas 721
exclusively by and solely for the consumer's or consumers' own 722
intended use as the end user or end users and not for profit; 723
(C) Public utilities that are owned or operated by any 725
municipal corporation;
(D) Railroads as defined in sections 4907.02 and 4907.03 727
of the Revised Code; 728
(E) ELECTRIC LIGHT COMPANIES THAT SUPPLY ONLY COMPETITIVE 730
18
RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 OF THE 731
REVISED CODE AND THAT DO NOT SUPPLY NONCOMPETITIVE RETAIL 732
ELECTRIC SERVICE AS DEFINED IN THAT SECTION.
Sec. 4905.03. As used in this chapter: 741
(A) Any person, firm, copartnership, voluntary 743
association, joint-stock association, company, or corporation, 744
wherever organized or incorporated, is: 745
(1) A telegraph company, when engaged in the business of 747
transmitting telegraphic messages to, from, through, or in this 748
state; 749
(2) A telephone company, when engaged in the business of 751
transmitting telephonic messages to, from, through, or in this 752
state and as such is a common carrier; 753
(3) A motor transportation company, when engaged in the 755
business of carrying and transporting persons or property or the 756
business of providing or furnishing such transportation service, 757
for hire, in or by motor-propelled vehicles of any kind, 758
including trailers, for the public in general, over any public 759
street, road, or highway in this state, except as provided in 760
section 4921.02 of the Revised Code; 761
(4) An electric light company, when engaged in the 763
business of supplying electricity for light, heat, or power 764
purposes to consumers within this state, INCLUDING SUPPLYING 765
ELECTRIC TRANSMISSION SERVICE FOR ELECTRICITY DELIVERED TO 766
CONSUMERS IN THIS STATE; 767
(5) A gas company, when engaged in the business of 769
supplying artificial gas for lighting, power, or heating purposes 770
to consumers within this state or when engaged in the business of 771
supplying artificial gas to gas companies or to natural gas 772
companies within this state, but a producer engaged in supplying 773
to one or more gas or natural gas companies, only such artificial 775
gas as is manufactured by that producer as a by-product of some 776
other process in which the producer is primarily engaged within 777
this state is not thereby a gas company. All rates, rentals, 778
19
tolls, schedules, charges of any kind, or agreements between any 779
gas company and any other gas company or any natural gas company 780
providing for the supplying of artificial gas and for 781
compensation for the same are subject to the jurisdiction of the 782
public utilities commission.
(6) A natural gas company, when engaged in the business of 784
supplying natural gas for lighting, power, or heating purposes to 785
consumers within this state. Notwithstanding the above, neither 787
the delivery nor sale of Ohio-produced natural gas by a producer 789
or gatherer under a public utilities commission-ordered
exemption, adopted before, as to producers, or after, as to 791
producers or gatherers, January 1, 1996, or the delivery or sale 792
of Ohio-produced natural gas by a producer or gatherer of 793
Ohio-produced natural gas, either to a lessor under an oil and 795
gas lease of the land on which the producer's drilling unit is 796
located, or the grantor incident to a right-of-way or easement to 797
the producer or gatherer, shall cause the producer or gatherer to 798
be a natural gas company for the purposes of this section. 799
All rates, rentals, tolls, schedules, charges of any kind, 802
or agreements between a natural gas company and other natural gas 803
companies or gas companies providing for the supply of natural 804
gas and for compensation for the same are subject to the 805
jurisdiction of the public utilities commission. The commission, 806
upon application made to it, may relieve any producer or gatherer 807
of natural gas, defined in this section as a gas company or a 809
natural gas company, of compliance with the obligations imposed 810
by this chapter and Chapters 4901., 4903., 4907., 4909., 4921., 812
and 4923. of the Revised Code, so long as the producer or 813
gatherer is not affiliated with or under the control of a gas 814
company or a natural gas company engaged in the transportation or 816
distribution of natural gas, or so long as the producer or 817
gatherer does not engage in the distribution of natural gas to 818
consumers.
Nothing in division (A)(6) of this section limits the 820
20
authority of the commission to enforce sections 4905.90 to 821
4905.96 of the Revised Code.
(7) A pipe-line company, when engaged in the business of 823
transporting natural gas, oil, or coal or its derivatives through 824
pipes or tubing, either wholly or partly within this state; 825
(8) A water-works company, when engaged in the business of 827
supplying water through pipes or tubing, or in a similar manner, 828
to consumers within this state; 829
(9) A heating or cooling company, when engaged in the 831
business of supplying water, steam, or air through pipes or 832
tubing to consumers within this state for heating or cooling 833
purposes; 834
(10) A messenger company, when engaged in the business of 836
supplying messengers for any purpose; 837
(11) A street railway company, when engaged in the 839
business of operating as a common carrier, a railway, wholly or 840
partly within this state, with one or more tracks upon, along, 841
above, or below any public road, street, alleyway, or ground, 842
within any municipal corporation, operated by any motive power 843
other than steam and not a part of an interurban railroad, 844
whether the railway is termed street, inclined-plane, elevated, 846
or underground railway; 847
(12) A suburban railroad company, when engaged in the 849
business of operating as a common carrier, whether wholly or 850
partially within this state, a part of a street railway 851
constructed or extended beyond the limits of a municipal 852
corporation, and not a part of an interurban railroad; 853
(13) An interurban railroad company, when engaged in the 855
business of operating a railroad, wholly or partially within this 856
state, with one or more tracks from one municipal corporation or 857
point in this state to another municipal corporation or point in 858
this state, whether constructed upon the public highways or upon 859
private rights-of-way, outside of municipal corporations, using 860
electricity or other motive power than steam power for the 861
21
transportation of passengers, packages, express matter, United 862
States mail, baggage, and freight. Such an interurban railroad 863
company is included in the term "railroad" as used in section 864
4907.02 of the Revised Code. 865
(14) A sewage disposal system company, when engaged in the 867
business of sewage disposal services through pipes or tubing, and 868
treatment works, or in a similar manner, within this state. 869
(B) "Motor-propelled vehicle" means any automobile, 871
automobile truck, motor bus, or any other self-propelled vehicle 872
not operated or driven upon fixed rails or tracks. 873
Nothing in this section shall be construed to mean that an 875
electric light company operated not for profit, owned and 876
operated exclusively by and solely for its customers, or owned or 877
operated by a municipal corporation, is subject to sections 878
4905.66, 4905.67, 4905.68, and 4905.69 of the Revised Code. 879
Sec. 4905.10. (A) For the sole purpose of maintaining and 888
administering the public utilities commission and exercising its 889
supervision and jurisdiction over the railroads and public 890
utilities of the state, an amount equivalent to the appropriation 891
from the public utilities fund CREATED UNDER DIVISION (B) OF THIS 892
SECTION to the public utilities commission for railroad and 894
public utilities regulation in each fiscal year shall be 895
apportioned among and assessed against the railroads EACH 896
RAILROAD and public utilities UTILITY within the state by the 898
commission by first computing an assessment as though it were to 899
be made in proportion to the intrastate gross earnings or 900
receipts, excluding earnings or receipts from sales to other 901
public utilities for resale, of the railroads and RAILROAD OR 902
public utilities UTILITY for the calendar year next preceding 903
that in which the assessments are ASSESSMENT IS made. The 905
COMMISSION MAY INCLUDE IN THAT FIRST COMPUTATION ANY AMOUNT OF A 907
RAILROAD'S OR PUBLIC UTILITY'S INTRASTATE GROSS EARNINGS OR
RECEIPTS THAT WERE UNDERREPORTED IN A PRIOR YEAR. IN ADDITION TO 908
WHATEVER PENALTIES APPLY UNDER THE REVISED CODE TO SUCH 909
22
UNDERREPORTING, THE COMMISSION SHALL ASSESS THE RAILROAD OR 911
PUBLIC UTILITY INTEREST AT THE RATE STATED IN DIVISION (A) OF 912
SECTION 1343.01 OF THE REVISED CODE. THE COMMISSION SHALL 914
DEPOSIT ANY INTEREST SO COLLECTED INTO THE PUBLIC UTILITIES FUND. 915
THE final computation of the assessment shall consist of 920
imposing upon each railroad and public utility whose assessment 921
under the first computation would have been fifty dollars or less 922
an assessment of fifty dollars and recomputing the assessment 923
ASSESSMENTS of the remaining railroads and public utilities by 925
apportioning an amount equal to the appropriation to the public 926
utilities commission for administration of the utilities division 927
in each fiscal year less the total amount to be recovered from 928
those paying the minimum assessment, in proportion to the 929
intrastate gross earnings or receipts of the remaining railroads 930
and public utilities for the calendar year next preceding that in 931
which the assessments are made.
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 933
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 934
ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF THE REVISED 935
CODE, OR AN ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 936
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 937
4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE THOSE 938
SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 939
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 940
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE COMMISSION 941
PURSUANT TO DIVISION (F) OF SECTION 4928.06 OF THE REVISED CODE, 942
AND VERIFIED BY THE COMMISSION. 943
(B) On or before the first day of October in each year, 945
the commission shall notify each such railroad and public utility 946
of the sum assessed against it, whereupon payment shall be made 947
to the commission, which shall deposit it into the state treasury 948
to the credit of the public utilities fund, which is hereby 950
created. Any such amounts paid into the fund but not expended by 951
the commission shall be credited ratably, after first deducting 952
23
any deficits accumulated from prior years, by the commission to 953
railroads and public utilities that pay more than the minimum 954
assessment, according to the respective portions of such sum 955
assessable against them for the ensuing calendar year. The 956
assessments for such calendar year shall be reduced 957
correspondingly. 958
(C) Within five days after the beginning of each fiscal 960
year, the director of budget and management shall transfer from 961
the general revenue fund to the public utilities fund an amount 962
sufficient for maintaining and administering the public utilities 964
commission and exercising its supervision and jurisdiction over 965
the railroads and public utilities of the state during the first 966
four months of the fiscal year. The director shall transfer the 967
same amount back to the general revenue fund from the public 968
utilities fund at such time as the director determines that the 969
balance of the public utilities fund is sufficient to support the 970
appropriations from the fund for the fiscal year. The director 971
may transfer less than that amount if the director determines 972
that the revenues of the public utilities fund during the fiscal 973
year will be insufficient to support the appropriations from the 974
fund for the fiscal year, in which case the amount not paid back 975
to the general revenue fund shall be payable to the general 976
revenue fund in future fiscal years. 977
(C)(D) FOR THE PURPOSE OF THIS SECTION ONLY, "PUBLIC 979
UTILITY" INCLUDES, IN ADDITION TO AN ELECTRIC UTILITY AS DEFINED 981
IN SECTION 4928.01 OF THE REVISED CODE, AN ELECTRIC SERVICES
COMPANY, AN ELECTRIC COOPERATIVE, OR A GOVERNMENTAL AGGREGATOR 983
SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED 985
CODE, TO THE EXTENT OF THE COMPANY'S, COOPERATIVE'S, OR 986
AGGREGATOR'S ENGAGEMENT IN THE BUSINESS OF SUPPLYING OR ARRANGING 987
FOR THE SUPPLY IN THIS STATE OF ANY RETAIL ELECTRIC SERVICE FOR 988
WHICH IT MUST BE SO CERTIFIED. 989
(E) Each public utilities commissioner shall receive a 991
salary fixed at the level set by pay range 49 under schedule E-2 992
24
of section 124.152 of the Revised Code. 993
Sec. 4905.14. (A) Every public utility shall file an 1,002
annual report with the public utilities commission. The report 1,003
shall be filed at the time and in the form prescribed by the 1,004
commission, shall be duly verified, and shall cover the yearly 1,005
period fixed by the commission. The commission shall prescribe 1,006
the character of the information to be embodied in the annual 1,007
report, and shall furnish to each public utility a blank form for 1,008
it. Every public utility also shall file a copy of the annual 1,009
report with the office of consumers' counsel; the copy shall be 1,010
filed at the same time that the original is filed with the 1,011
commission. If any annual report filed with the commission is 1,012
defective or erroneous, the commission may order that it be 1,013
amended within a prescribed time. Any amendments made pursuant 1,014
to such an order shall be filed with the commission and with the 1,015
office of consumers' counsel. Each annual report filed with the 1,016
commission shall be preserved in the office of the commission. 1,017
The commission may, at any time, require specific answers to 1,018
questions upon which it desires information. 1,019
(B) On the first day of July and the first day of November 1,021
of each year, each gas company, AND natural gas company, and 1,022
electric light company shall file with the commission a report in 1,024
quintuplicate stating: 1,025
(1) The total demand, stated in terms of kilowatt hours or 1,027
cubic feet, that the company projects will be expected of the 1,028
company for the following twelve months; 1,029
(2) With respect to electric light companies, the supply 1,031
of fuel for the generation of electricity that they will possess 1,032
as of the first day of July and the first day of November; 1,033
(3) With respect to gas companies and natural gas 1,035
companies, the THE pertinent details of supply contracts with 1,036
pipeline companies and producers for the following twelve months 1,037
that they have executed and the quantity of the gas that they 1,038
will possess in storage and will be available for delivery as of 1,039
25
the first day of July and the first day of November; 1,040
(4)(3) Where it appears from a comparison of the 1,042
information reported in division (B)(1) of this section with that 1,043
reported in division (B)(2) or (3) of this section that the total 1,044
demand projected by the company for the twelve months following 1,045
the date of the report will exceed the ability of the company to 1,046
furnish it, the means which the company intends to employ in 1,047
order to prevent any interruption or curtailment of service. 1,048
(C) The public utilities commission may require any 1,050
telephone company to file with its annual report, supplementary 1,051
reports of each exchange area owned or operated by it, in such 1,052
detail as the commission may prescribe. Upon request of fifteen 1,053
per cent of the subscribers of any telephone exchange, the public 1,054
utilities commission shall require the report for such exchange 1,055
area. 1,056
Sec. 4905.34. EXCEPT AS PROVIDED IN SECTIONS 4905.33 AND 1,065
4905.35 AND CHAPTER 4928. OF THE REVISED CODE, Chapters 4901., 1,066
4903., 4905., 4907., 4909., 4921., and 4923. of the Revised Code 1,069
do not prevent any public utility or railroad from granting any 1,070
of its property for any public purpose, or granting reduced rates 1,071
or free service of any kind to the United States, to the state or 1,072
any political subdivision of the state, for charitable purposes, 1,073
for fairs or expositions, to a law enforcement officer residing
in free housing provided pursuant to section 3735.43 of the 1,074
Revised Code, or to any officer or employee of such public 1,077
utility or railroad or the officer's or employee's family. All 1,078
contracts and agreements made or entered into by such public
utility or railroad for such use, reduced rates, or free service 1,079
are valid and enforcible at law. As used in this section, 1,080
"employee" includes furloughed, pensioned, and superannuated 1,082
employees.
Sec. 4905.40. (A) A public utility or a railroad may, 1,091
when authorized by order of the public utilities commission, 1,092
issue stocks, bonds, notes, and other evidences of indebtedness, 1,093
26
payable at periods of more than twelve months after their date of 1,094
issuance, when necessary: 1,095
(1) For the acquisition of property, the construction, 1,097
completion, extension, renewal, or improvement of its facilities, 1,098
or the improvement of its service; or 1,099
(2) For reorganization or readjustment of its indebtedness 1,101
and capitalization, for the discharge or lawful refunding of its 1,102
obligation, or for the reimbursement of moneys actually expended 1,103
for such purposes from income or from any other moneys in the 1,104
treasury of the public utility or railroad not secured or 1,105
obtained from the issue of stocks, bonds, notes, or other 1,106
evidences of indebtedness of such public utility or railroad. No 1,107
reimbursement of moneys expended for such purposes from income or 1,108
other moneys in the treasury shall be authorized unless the 1,109
applicant has kept its accounts and vouchers of such expenditures 1,110
in such manner as to enable the commission to ascertain the 1,111
amount and purposes of such expenditures. 1,112
(B) Any public utility, subject to the jurisdiction of the 1,114
commission, may, when authorized by the commission, issue shares 1,115
of common capital stock to acquire or pay for shares of common 1,116
capital stock of a public utility of this or an adjoining state 1,117
whose property is so located as to permit the operation of the 1,118
properties of such utilities as an integrated system if the 1,119
applicant owns, or by this issue will acquire, not less than 1,120
sixty-five per cent of the issued and outstanding common capital 1,121
shares of the company whose shares are to be acquired, and if the 1,122
consideration to be capitalized by the acquiring company does not 1,123
exceed the par or stated value at which the shares so acquired 1,124
were issued. 1,125
(C) Any bonds, notes, or other evidences of indebtedness 1,127
payable at periods of more than twelve months after their date 1,128
may be issued as provided in sections 4905.40 to 4905.43 of the 1,130
Revised Code, regardless of the amount of the capital stock of 1,131
the public utility or railroad, subject to the approval of the 1,132
27
commission of the excess of such bonds, notes, or other evidences 1,133
of indebtedness above the amount of the capital stock of such 1,134
public utility or railroad. 1,135
(D) The commission shall authorize on the best terms 1,137
obtainable such issues of stocks, bonds, and other evidences of 1,138
indebtedness as are necessary to enable any public utility to 1,139
comply with any contract made between such public utility and any 1,140
municipal corporation prior to June 30, 1911. 1,141
(E) The commission may authorize A PUBLIC UTILITY THAT IS 1,143
an electric light company to issue equity securities, or debt 1,145
securities having a term of more than twelve months from the date 1,146
of issuance, for the purpose of yielding to the company the 1,147
capacity to acquire a facility that produces fuel for the 1,148
generation of electricity.
(F) In any proceeding under division (A)(1) of this 1,150
section initiated by a public utility, the commission shall 1,151
determine and set forth in its order: 1,152
(1) Whether the purpose to which the issue or any proceeds 1,154
of it shall be applied was or is reasonably required by the 1,155
utility to meet its present and prospective obligations to 1,156
provide utility service; 1,157
(2) Whether the amount of the issue and the probable cost 1,159
of such stocks, bonds, notes, or other evidences of indebtedness 1,160
is just and reasonable; 1,161
(3) What effect, if any, the issuance of such stocks, 1,163
bonds, notes, or other evidences of indebtedness and the cost 1,164
thereof will have upon the present and prospective revenue 1,165
requirements of the utility. 1,166
(G) Sections 4905.40 to 4905.42 of the Revised Code do not 1,168
apply to stocks, bonds, notes, or other evidence of indebtedness 1,169
issued for the purpose of financing oil or natural gas drilling, 1,170
producing, gathering, and associated activities and facilities by 1,171
a producer which supplies to no more than twenty purchasers only 1,172
such gas as is produced, gathered, or purchased by such producer 1,173
28
within this state. 1,174
(H) Each public utility seeking authorization from the 1,176
commission for the issuance of securities to finance the 1,177
installation, construction, extension, or improvement of an air 1,178
quality facility, as defined in section 3706.01 of the Revised 1,179
Code, shall consider the availability of financing therefor from 1,180
the Ohio air quality development authority and shall demonstrate 1,181
to the commission that the proposed financing will be obtained on 1,182
the best terms obtainable. 1,183
Sec. 4905.42. To determine whether it should issue the 1,192
order referred to in section 4905.40 of the Revised Code, the 1,193
public utilities commission shall hold such hearings, make such 1,194
inquiries or investigations, and examine such witnesses, books, 1,195
papers, documents, and contracts as it deems proper. Within 1,196
forty-five days after an electric light company submits an 1,197
application under that section pertaining to the issuance of 1,198
stocks, bonds, notes, or other evidence of indebtedness to 1,199
acquire, construct, or install a compliance facility, the 1,200
commission shall complete its review and shall render a decision 1,201
on the application. 1,202
An order issued under this section shall fix the amount, 1,204
character, and terms of any issue of stocks, bonds, notes, or 1,205
other evidence of indebtedness, and the purposes to which the 1,206
issue or any proceeds of it shall be applied, shall recite that 1,207
the money, property, consideration, or labor procured or to be 1,208
procured or paid for by such issue was or is reasonably required 1,209
for the purposes specified in the order, and shall recite the 1,210
value of any property, consideration, or service, as found by the 1,211
commission, for which in whole or in part such issue is proposed 1,212
to be made. 1,213
No public utility or railroad shall, without the consent of 1,215
the commission, apply any such issue or its proceeds to any 1,216
purpose not specified in the order. Such public utilities or 1,217
railroads may issue notes for proper corporate purposes, payable 1,218
29
at periods of not more than twelve months, without the consent of 1,219
the commission, but no such notes shall, in whole or in part, 1,220
directly or indirectly, be refunded by any issue of stocks or 1,221
bonds, or by any evidence of indebtedness, running for more than 1,222
twelve months, without the consent of the commission. 1,223
All stocks, bonds, notes, or other evidence of indebtedness 1,225
issued by any public utility or railroad without the permission 1,226
of the commission are void. No interstate railroad or public 1,227
utility shall be required to apply to the commission for 1,228
authority to issue stocks, bonds, notes, or other evidence of 1,229
indebtedness for the acquisition of property, the construction, 1,230
completion, extension, or improvement of its facilities, or the 1,231
improvement or maintenance of its service outside this state, or 1,232
for authority for the discharge or refunding of obligations 1,233
issued or incurred for such purposes or the reimbursement of 1,234
moneys actually expended for such purposes outside this state. 1,235
No pipe-line company--when engaged in the business of 1,237
transporting oil through pipes or tubing, either wholly or 1,238
partly--within this state, shall be required to apply to the 1,239
commission for authority to issue stocks, bonds, notes, or other 1,240
evidence of indebtedness for the purpose of acquiring or paying 1,241
for stocks, bonds, notes, or other evidence of indebtedness of 1,242
any other corporation organized under the laws of this state, any 1,243
other state, the District of Columbia, the United States, any 1,244
territory of the United States, any foreign country, or 1,245
otherwise. 1,246
No company that is both a pipe-line company engaged as such 1,248
in the business of transporting natural gas through pipes or 1,249
tubing in interstate commerce, wholly or partly within this 1,250
state, and a natural gas company engaged as such in this state 1,251
solely in the business of supplying natural gas to gas companies 1,252
or to natural gas companies shall be required to apply to the 1,253
commission for authority to issue stocks, bonds, notes, or other 1,254
evidence of indebtedness. 1,255
30
Sec. 4905.70. The public utilities commission shall 1,264
initiate programs that will promote and encourage conservation of 1,265
energy and a reduction in the growth rate of energy consumption, 1,266
promote economic efficiencies, and take into account long-run 1,267
incremental costs. Notwithstanding sections 4905.31, 4905.33, 1,268
4905.35, and 4909.151 of the Revised Code, the public utilities 1,269
commission shall examine and issue written findings on the 1,270
declining block rate structure, lifeline rates, long-run 1,271
incremental pricing, peak load and off-peak pricing, time of day 1,272
and seasonal pricing, interruptible load pricing, and single rate 1,273
pricing where rates do not vary because of classification of 1,274
customers or amount of usage. The public utilities commission 1,275
shall establish criteria for the investigation, identification, 1,276
and remedy of the existence of any excess capacity, exclusive of 1,277
capacity used primarily for Ohio coal research and development, 1,278
as defined in section 1555.01 of the Revised Code, the costs of 1,279
which have been allowed for recovery under section 4905.301 or 1,280
4909.15 of the Revised Code, in the generating systems of 1,281
electric light companies. The public utilities commission, by a 1,282
rule adopted no later than October 1, 1977, and effective and 1,283
applicable no later than November 1, 1977, shall require each 1,284
electric light company to offer to such of their residential 1,285
customers whose residences are primarily heated by electricity 1,286
the option of their usage being metered by a demand or load 1,287
meter. A UNDER THE RULE, A customer who selects such option may, 1,289
under the rule, be required by the company, where no such meter 1,290
is already installed, to pay for such meter and its installation. 1,291
The rule shall require each company to bill such of its customers 1,292
who select such option for those kilowatt hours in excess of a 1,293
prescribed number of kilowatt hours per kilowatt of billing 1,294
demand, at a rate per kilowatt hour that reflects the lower cost 1,295
of providing service during off-peak periods. 1,296
Sec. 4906.10. (A) The power siting board shall render a 1,305
decision upon the record either granting or denying the 1,306
31
application as filed, or granting it upon such terms, conditions, 1,307
or modifications of the construction, operation, or maintenance 1,308
of the major utility facility as the board considers appropriate. 1,309
The certificate shall be conditioned upon the facility being in 1,310
compliance with standards and rules adopted under sections 1,311
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 1,312
6111. of the Revised Code. The period of initial operation under 1,314
a certificate shall expire two years after the date on which 1,315
electric power is first generated by the facility. During the 1,316
period of initial operation, the facility shall be subject to the 1,317
enforcement and monitoring powers of the director of
environmental protection under Chapters 3704., 3734., and 6111. 1,318
of the Revised Code and to the emergency provisions under those 1,320
chapters. If a major utility facility constructed in accordance 1,321
with the terms and conditions of its certificate is unable to 1,322
operate in compliance with all applicable requirements of state 1,323
laws, rules, and standards pertaining to air pollution, the 1,324
facility may apply to the director of environmental protection 1,325
for a conditional operating permit under division (G) of section 1,326
3704.03 of the Revised Code and the rules adopted thereunder. 1,327
The operation of a major utility facility in compliance with a 1,328
conditional operating permit is not in violation of its 1,329
certificate. After the expiration of the period of initial 1,330
operation of a major utility facility, the facility shall be 1,331
under the jurisdiction of the environmental protection agency and 1,332
shall comply with all laws, rules, and standards pertaining to 1,333
air pollution, water pollution, and solid and hazardous waste 1,334
disposal.
The board shall not grant a certificate for the 1,336
construction, operation, and maintenance of a major utility 1,337
facility, either as proposed or as modified by the board, unless 1,338
it finds and determines all of the following: 1,339
(1) The basis of the need for the facility;. IN THE CASE 1,341
OF A MAJOR UTILITY FACILITY DESCRIBED IN DIVISION (B)(1) OF 1,342
32
SECTION 4906.01 OF THE REVISED CODE TO BE CONSTRUCTED ON OR AFTER 1,343
THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE AS 1,344
DEFINED IN SECTION 4928.01 OF THE REVISED CODE, THE BOARD SHALL
PRESUME THE NEED FOR THE FACILITY AS THAT NEED IS STATED IN AN 1,345
APPLICATION PURSUANT TO DIVISION (A)(3) OF SECTION 4906.06 OF THE 1,346
REVISED CODE.
(2) The nature of the probable environmental impact; 1,348
(3) That the facility represents the minimum adverse 1,350
environmental impact, considering the state of available 1,351
technology and the nature and economics of the various 1,352
alternatives, and other pertinent considerations; 1,353
(4) In the case of an electric transmission line, that the 1,355
facility is consistent with regional plans for expansion of the 1,356
electric power grid of the electric systems serving this state 1,357
and interconnected utility systems and that the facility will 1,358
serve the interests of electric system economy and reliability; 1,359
(5) That the facility will comply with Chapters 3704., 1,361
3734., and 6111. of the Revised Code and all rules and standards 1,362
adopted under those chapters and under sections 1501.33, 1501.34, 1,363
and 4561.32 of the Revised Code. In determining whether the 1,364
facility will comply with all rules and standards adopted under 1,365
section 4561.32 of the Revised Code, the board shall consult with 1,366
the office of aviation of the division of multi-modal planning 1,368
and programs of the department of transportation under section 1,370
4561.341 of the Revised Code.
(6) That the facility will serve the public interest, 1,372
convenience, and necessity; 1,373
(7) In addition to the provisions contained in divisions 1,375
(A)(1) to (6) of this section and rules adopted under those 1,377
divisions, what its impact will be on the viability as 1,378
agricultural land of any land in an existing agricultural 1,379
district established under Chapter 929. of the Revised Code that 1,380
is located within the site and alternative site of the proposed 1,381
major utility facility. Rules adopted to evaluate impact under 1,382
33
division (A)(7) of this section shall not require the 1,383
compilation, creation, submission, or production of any 1,384
information, document, or other data pertaining to land not 1,385
located within the site and alternative site. 1,386
(8) That the facility incorporates maximum feasible water 1,388
conservation practices as determined by the board, considering 1,389
available technology and the nature and economics of the various 1,390
alternatives. 1,391
(B) If the board determines that the location of all or a 1,393
part of the proposed facility should be modified, it may 1,394
condition its certificate upon that modification, provided that 1,395
the municipal corporations and counties, and persons residing 1,396
therein, affected by the modification shall have been given 1,397
reasonable notice thereof. 1,398
(C) A copy of the decision and any opinion issued 1,400
therewith shall be served upon each party. 1,401
Sec. 4909.01. As used in this chapter: 1,411
(A) "Public utility" has the meaning set forth in section 1,413
4905.02 of the Revised Code. 1,414
(B) "Telegraph company," "telephone company," "electric 1,416
light company," "gas company," "natural gas company," "pipeline 1,417
company," "water-works company," "sewage disposal system 1,418
company," "heating or cooling company," "messenger company," 1,419
"street railway company," "suburban railroad company," 1,420
"interurban railroad company," and "motor-propelled vehicle" have 1,421
the meanings set forth in section 4905.03 of the Revised Code. 1,422
(C) "Railroad" has the meaning set forth in section 1,424
4907.02 of the Revised Code. 1,425
(D) "Motor transportation company" has the meaning set 1,427
forth in sections 4905.03 and 4921.02 of the Revised Code. 1,428
(E) "Trailers," "public highway," "fixed termini," 1,430
"regular route," and "irregular route" have the meanings set 1,431
forth in section 4921.02 of the Revised Code. 1,432
(F) "Private motor carrier," "contract carrier by motor 1,434
34
vehicle," "motor vehicle," and "charter party trip" have the 1,435
meanings set forth in section 4923.02 of the Revised Code. 1,436
(G) "Delivery cost" and "acquisition cost" have the 1,438
meanings set forth in section 4905.01 of the Revised Code. 1,439
(H) "Compliance facility" has the meaning set forth in 1,441
section 4905.01 of the Revised Code. 1,442
Nothing in this section shall be construed to mean that an 1,444
electric light company operated not for profit or one that is 1,445
owned or operated by a municipal corporation is subject to 1,446
section 4909.191 of the Revised Code. 1,447
Sec. 4909.05. As used in this section: 1,456
(A) A "lease purchase agreement" is an agreement pursuant 1,458
to which a public utility leasing property is required to make 1,459
rental payments for the term of the agreement and either the 1,460
utility is granted the right to purchase the property upon the 1,461
completion of the term of the agreement and upon the payment of 1,462
an additional fixed sum of money or title to the property vests 1,463
in the utility upon the making of the final rental payment. 1,464
(B) A "leaseback" is the sale or transfer of property by a 1,466
public utility to another person contemporaneously followed by 1,467
the leasing of the property to the public utility on a long-term 1,468
basis. 1,469
The public utilities commission shall prescribe the form 1,471
and details of the valuation report of the property of each 1,472
public utility or railroad in the state. Such report shall 1,473
include all the kinds and classes of property, with the value of 1,474
each, owned or held by each public utility or railroad used and 1,475
useful for the service and convenience of the public. Such 1,476
report shall contain the following facts in detail: 1,477
(C) The original cost of each parcel of land owned in fee 1,479
and in use at the date certain determined by the commission; and 1,480
also a statement of the conditions of acquisition, whether by 1,481
direct purchase, by donation, by exercise of the power of eminent 1,482
domain, or otherwise; 1,483
35
(D) The actual acquisition cost, not including periodic 1,485
rental fees, of rights-of-way, trailways, or other land rights 1,486
held by virtue of easements, leases, or other forms of grants of 1,487
rights as to usage; 1,488
(E) The original cost of all other kinds and classes of 1,490
property used and useful in the rendition of service to the 1,491
public. Such original costs of property, other than land owned 1,492
in fee, shall be the cost, as determined to be reasonable by the 1,493
commission, to the person that first dedicated the property to 1,494
the public use and shall be set forth in property accounts and 1,495
subaccounts as prescribed by the commission. To the extent that 1,496
the costs of property comprising a coal research and development 1,497
facility, as defined in section 1555.01 of the Revised Code, or a 1,498
coal development project, as defined in section 1551.30 of the 1,499
Revised Code, have been allowed for recovery as Ohio coal 1,500
research and development costs under section 4905.301, 4905.304, 1,501
or 4909.191 of the Revised Code, none of those costs shall be 1,502
included as a cost of property under this division. 1,503
(F) The cost of property constituting all or part of a 1,505
project leased to or used by the utility under Chapter 165., 1,506
3706., 6121., or 6123. of the Revised Code and not included under 1,507
division (E) of this section exclusive of any interest directly 1,508
or indirectly paid by the utility with respect thereto whether or 1,509
not capitalized; 1,510
(G) In the discretion of the commission, the cost to a 1,512
utility, in an amount determined to be reasonable by the 1,513
commission, of property constituting all or part of a project 1,514
leased to the utility under a lease purchase agreement or a 1,515
leaseback and not included under division (E) of this section 1,516
exclusive of any interest directly or indirectly paid by the 1,517
utility with respect thereto whether or not capitalized; 1,518
(H) The proper and adequate reserve for depreciation, as 1,520
determined to be reasonable by the commission; 1,521
(I) Any sums of money or property that the company may 1,523
36
have received as total or partial defrayal of the cost of its 1,524
property; 1,525
(J) The valuation of the property of the company, which 1,527
shall be the sum of the amounts contained in the report pursuant 1,528
to divisions (C), (D), (E), (F), and (G) of this section, less 1,529
the sum of the amounts contained in the report pursuant to 1,530
divisions (H) and (I) of this section. 1,531
The report shall show separately the property used and 1,533
useful to such public utility or railroad in the furnishing of 1,534
the service to the public, and the property held by such public 1,535
utility or railroad for other purposes, and such other items as 1,536
the commission considers proper. The commission may require an 1,537
additional report showing the extent to which the property is 1,538
used and useful. Such reports shall be filed in the office of 1,539
the commission for the information of the governor and the 1,540
general assembly. 1,541
Sec. 4909.15. (A) The public utilities commission, when 1,550
fixing and determining just and reasonable rates, fares, tolls, 1,551
rentals, and charges, shall determine: 1,552
(1) The valuation as of the date certain of the property 1,554
of the public utility used and useful in rendering the public 1,555
utility service for which rates are to be fixed and determined. 1,556
The valuation so determined shall be the total value as set forth 1,557
in division (J) of section 4909.05 of the Revised Code, and a 1,558
reasonable allowance for materials and supplies and cash working 1,559
capital, as determined by the public utilities commission. 1,560
The commission may, in its discretion, MAY include in the 1,562
valuation a reasonable allowance for construction work in 1,563
progress but, in no event, may such an allowance be made by the 1,564
commission until it has determined that the particular 1,565
construction project is at least seventy-five per cent complete. 1,566
In the case of a construction project involving the 1,568
installation, renovation, or maintenance of pollution control 1,569
equipment, the commission may include the project in the 1,570
37
valuation as construction work in progress as of the date that 1,571
the particular construction project is at least seventy-five per 1,572
cent complete. 1,573
As used in this division, "pollution control equipment" 1,575
means any construction project undertaken, in whole or in part, 1,576
to reduce sulfur or nitrous oxide emissions to levels established 1,577
by federal, state, or local statute, law, ordinance, regulation, 1,578
or order. The commission shall determine by rule what projects 1,579
qualify as pollution control equipment. 1,580
In determining the percentage completion of a particular 1,582
construction project, the commission shall consider, among other 1,583
relevant criteria, the per cent of time elapsed in construction; 1,584
the per cent of construction funds, excluding allowance for funds 1,585
used during construction, expended, or obligated to such 1,586
construction funds budgeted where all such funds are adjusted to 1,587
reflect current purchasing power; and any physical inspection 1,588
performed by or on behalf of any party, including the 1,589
commission's staff. 1,590
A reasonable allowance for construction work in progress 1,592
other than for construction projects involving the installation, 1,593
renovation, or maintenance of pollution control equipment shall 1,594
not exceed ten per cent of the total valuation as stated in this 1,595
division, not including such allowance for construction work in 1,596
progress. 1,597
The allowance for construction work in progress for 1,599
construction projects involving the installation, renovation, or 1,600
maintenance of pollution control equipment shall be the dollar 1,601
value of the project and shall not exceed, together with any 1,602
other allowance for construction work in progress granted under 1,603
this division, twenty per cent of the total valuation as stated 1,604
in this division, not including such allowance for construction 1,605
work in progress. 1,606
Where the commission permits an allowance for construction 1,608
work in progress, the dollar value of the project or portion 1,609
38
thereof included in the valuation as construction work in 1,610
progress shall not be included in the valuation as plant in 1,611
service until such time as the total revenue effect of the 1,612
construction work in progress allowance is offset by the total 1,613
revenue effect of the plant in service exclusion. Carrying 1,614
charges calculated in a manner similar to allowance for funds 1,615
used during construction shall accrue on that portion of the 1,616
project in service but not reflected in rates as plant in 1,617
service, and such accrued carrying charges shall be included in 1,618
the valuation of the property at the conclusion of the offset 1,619
period for purposes of division (J) of section 4909.05 of the 1,620
Revised Code. 1,621
From and after April 10, 1985, no allowance for 1,623
construction work in progress as it relates to a particular 1,624
construction project shall be reflected in rates for a period 1,625
exceeding forty-eight consecutive months commencing on the date 1,626
the initial rates reflecting such allowance become effective, 1,627
except as otherwise provided in this division. 1,628
In the case of a nuclear generating facility that has not 1,630
been granted a full construction permit by the nuclear regulatory 1,631
commission on or before April 10, 1985, the utility, within six 1,632
months after the granting of such permit, shall submit to the 1,633
public utilities commission a projected in service date for such 1,634
facility. Thereafter, no allowance for construction work in 1,635
progress as it relates to such nuclear generating facility shall 1,636
be reflected in rates for a period exceeding forty-eight 1,637
consecutive months commencing on the date the initial rates 1,638
reflecting such allowance become effective, or for a period 1,639
commencing on the date the initial rates reflecting such 1,640
allowance become effective and ending on the projected in service 1,641
date previously submitted to the commission, whichever period 1,642
expires first. 1,643
The applicable maximum period in rates for an allowance for 1,645
construction work in progress as it relates to a particular 1,646
39
construction project shall be tolled if, and to the extent, a 1,647
delay in the in-service date of the project is caused by the 1,648
action or inaction of any federal, state, county, or municipal 1,649
agency having jurisdiction, where such action or inaction relates 1,650
to a change in a rule, standard, or approval of such agency, and 1,651
where such action or inaction is not the result of the failure of 1,652
the utility to reasonably endeavor to comply with any rule, 1,653
standard, or approval prior to such change. 1,654
In the event that such period expires before the project 1,656
goes in INTO service, the commission shall EXCLUDE, from the date 1,658
of expiration, exclude the allowance for the project as 1,659
construction work in progress from rates, except that the 1,660
commission may extend the expiration date up to twelve months for 1,661
good cause shown. 1,662
In the event that a utility has permanently canceled, 1,664
abandoned, or terminated construction of a project for which it 1,665
was previously permitted a construction work in progress 1,666
allowance, the commission shall immediately SHALL exclude the 1,667
allowance for the project from the valuation. 1,669
In the event that a construction work in progress project 1,671
previously included in the valuation is removed from the 1,672
valuation pursuant to this division, any revenues collected by 1,673
the utility from its customers after April 10, 1985, which THAT 1,674
resulted from such prior inclusion shall be offset against future 1,675
revenues over the same period of time as the project was included 1,676
in the valuation as construction work in progress. The total 1,677
revenue effect of such offset shall not exceed the total revenues 1,678
previously collected. 1,679
In no event shall the total revenue effect of any offset or 1,681
offsets provided herein UNDER DIVISION (A)(1) OF THIS SECTION 1,683
exceed the total revenue effect of any construction work in 1,684
progress allowance.
(2) A fair and reasonable rate of return to the utility on 1,686
the valuation as determined in division (A)(1) of this section; 1,687
40
(3) The dollar annual return to which the utility is 1,689
entitled by applying the fair and reasonable rate of return as 1,690
determined under division (A)(2) of this section to the valuation 1,691
of the utility determined under division (A)(1) of this section; 1,692
(4) The cost to the utility of rendering the public 1,694
utility service for the test period less the total of any 1,695
interest on cash or credit refunds paid, pursuant to section 1,696
4909.42 of the Revised Code, by the utility during the test 1,697
period. 1,698
(a) Any depreciation expense of a compliance facility 1,700
shall be calculated under division (A)(4) of this section on the 1,701
basis of the useful service life of the compliance facility or 1,702
the remaining useful life of the electric generating unit in 1,703
connection with which the compliance facility was acquired, 1,704
constructed, or installed, whichever is the shorter time. 1,705
Division (A)(4)(a) of this section applies only to depreciation 1,706
expense of a compliance facility contained in the environmental 1,707
compliance plan of the electric light company approved under 1,708
Chapter 4913. of the Revised Code or in its compliance strategy 1,709
examined under section 4909.158 of the Revised Code. 1,710
(b) Federal, state, and local taxes imposed on or measured 1,713
by net income may, in the discretion of the commission, be 1,714
computed by the normalization method of accounting, provided the 1,715
utility maintains accounting reserves that reflect differences 1,716
between taxes actually payable and taxes on a normalized basis, 1,717
provided that no determination as to the treatment in the 1,718
rate-making process of such taxes shall be made that will result 1,720
in loss of any tax depreciation or other tax benefit to which the 1,721
utility would otherwise be entitled, and further provided that 1,722
such tax benefit as redounds to the utility as a result of such a 1,723
computation may not be retained by the company, used to fund any 1,724
dividend or distribution, or utilized for any purpose other than 1,725
the defrayal of the operating expenses of the utility and the 1,726
defrayal of the expenses of the utility in connection with 1,727
41
construction work.
(c)(b) The amount of any tax credits granted to an 1,729
electric light company under section 5727.391 5733.39 of the 1,730
Revised Code shall not be retained by the company, used to fund 1,732
any dividend or distribution, or utilized for any purposes other 1,733
than the defrayal of the allowable operating expenses of the 1,734
company and the defrayal of the allowable expenses of the company 1,735
in connection with the installation, acquisition, construction, 1,736
or use of a compliance facility. The amount of the tax credits 1,737
granted to an electric light company under that section shall be 1,738
returned to its customers within three years after initially 1,739
claiming the credit through an offset to the company's rates or 1,740
fuel component, as determined by the commission, as set forth in 1,741
schedules filed by the company under section 4905.30 of the 1,742
Revised Code. As used in division (A)(4)(c) of this section, 1,743
"compliance facility" has the same meaning as in section 5727.391 1,744
5733.39 of the Revised Code. 1,746
(B) The public utilities commission shall compute the 1,748
gross annual revenues to which the utility is entitled by adding 1,749
the dollar amount of return under division (A)(3) of this section 1,750
to the cost of rendering the public utility service for the test 1,751
period under division (A)(4) of this section. 1,752
(C) The test period, unless otherwise ordered by the 1,754
public utilities commission, shall be the twelve-month period 1,755
beginning six months prior to the date the application is filed 1,756
and ending six months subsequent to that date. In no event shall 1,757
the test period end more than nine months subsequent to the date 1,758
the application is filed. The revenues and expenses of the 1,759
utility shall be determined during the test period. The date 1,760
certain shall be not later than the date of filing. 1,761
(D) When the public utilities commission is of the 1,763
opinion, after hearing and after making the determinations under 1,764
divisions (A) and (B) of this section, that any rate, fare, 1,765
charge, toll, rental, schedule, classification, or service, or 1,766
42
any joint rate, fare, charge, toll, rental, schedule, 1,767
classification, or service rendered, charged, demanded, exacted, 1,768
or proposed to be rendered, charged, demanded, or exacted, is, or 1,769
will be, unjust, unreasonable, unjustly discriminatory, unjustly 1,770
preferential, or in violation of law, that the service is, or 1,771
will be, inadequate, or that the maximum rates, charges, tolls, 1,772
or rentals chargeable by any such public utility are insufficient 1,773
to yield reasonable compensation for the service rendered, and 1,774
are unjust and unreasonable, the commission shall: 1,775
(1) With due regard among other things to the value of all 1,777
property of the public utility actually used and useful for the 1,778
convenience of the public as determined under division (A)(1) of 1,779
this section, excluding from such value the value of any 1,780
franchise or right to own, operate, or enjoy the same in excess 1,781
of the amount, exclusive of any tax or annual charge, actually 1,782
paid to any political subdivision of the state or county, as the 1,783
consideration for the grant of such franchise or right, and 1,784
excluding any value added to such property by reason of a 1,785
monopoly or merger, with due regard in determining the dollar 1,786
annual return under division (A)(3) of this section to the 1,787
necessity of making reservation out of the income for surplus, 1,788
depreciation, and contingencies, and; 1,789
(2) With due regard to all such other matters as are 1,791
proper, according to the facts in each case, 1,792
(a) Including a fair and reasonable rate of return 1,794
determined by the commission with reference to a cost of debt 1,795
equal to the actual embedded cost of debt of such public utility, 1,796
(b) But not including the portion of any periodic rental 1,798
or use payments representing that cost of property which THAT is 1,799
included in the valuation report under divisions (F) and (G) of 1,800
section 4909.05 of the Revised Code, fix and determine the just 1,801
and reasonable rate, fare, charge, toll, rental, or service to be 1,802
rendered, charged, demanded, exacted, or collected for the 1,803
performance or rendition of the service that will provide the 1,804
43
public utility the allowable gross annual revenues under division 1,805
(B) of this section, and order such just and reasonable rate, 1,806
fare, charge, toll, rental, or service to be substituted for the 1,807
existing one. After such determination and order no change in 1,808
the rate, fare, toll, charge, rental, schedule, classification, 1,809
or service shall be made, rendered, charged, demanded, exacted, 1,810
or changed by such public utility without the order of the 1,811
commission, and any other rate, fare, toll, charge, rental, 1,812
classification, or service is prohibited. 1,813
(E) Upon application of any person or any public utility, 1,815
and after notice to the parties in interest and opportunity to be 1,816
heard as provided in Chapters 4901., 4903., 4905., 4907., 4909., 1,817
4921., and 4923. of the Revised Code for other hearings, has been 1,818
given, the commission may rescind, alter, or amend an order 1,819
fixing any rate, fare, toll, charge, rental, classification, or 1,820
service, or any other order made by the commission. Certified 1,821
copies of such orders shall be served and take effect as provided 1,822
for original orders. 1,823
Sec. 4909.161. (A) Notwithstanding the provisions of 1,832
Chapters 4905. and 4909. of the Revised Code, the payment of any 1,834
type of increased excise tax levy shall be considered to be a 1,835
normal expense incurred by a public utility in the course of 1,836
rendering service to the public, and may be recovered as such in
accordance with an order of the public utilities commission. Any 1,837
public utility required to pay any such increased excise tax levy 1,838
may file with the public utilities commission revised rate 1,839
schedules which THAT will permit full recovery on an interim or 1,841
permanent basis in its rates, of the amount of any resultant 1,842
increased tax payments and the commission shall promptly act to
approve such schedules. 1,843
(B) NOTWITHSTANDING CHAPTERS 4905. AND 4909. OF THE 1,848
REVISED CODE, THE PAYMENT OF THE KILOWATT-HOUR TAX IMPOSED BY 1,851
SECTION 5727.81 OF THE REVISED CODE SHALL BE CONSIDERED A NORMAL 1,854
EXPENSE INCURRED BY AN ELECTRIC DISTRIBUTION UTILITY, AS DEFINED
44
IN SECTION 4928.01 OF THE REVISED CODE, IN THE COURSE OF 1,855
RENDERING SERVICE TO THE PUBLIC, AND MAY BE RECOVERED AS SUCH IN 1,856
ACCORDANCE WITH AN ORDER OF THE COMMISSION. AN ELECTRIC 1,857
DISTRIBUTION UTILITY REQUIRED TO PAY THE KILOWATT-HOUR TAX MAY 1,858
FILE WITH THE COMMISSION REVISED RATE SCHEDULES THAT WILL PERMIT 1,859
FULL RECOVERY ON A PERMANENT BASIS IN ITS RATES, OF THE AMOUNT OF 1,860
ANY RESULTANT TAX PAYMENTS, AND THE COMMISSION SHALL ACT PROMPTLY 1,861
TO APPROVE THOSE SCHEDULES. IN APPROVING THE SCHEDULES, THE 1,862
COMMISSION SHALL PROVIDE THAT THE RATE EFFECT OF THE 1,863
KILOWATT-HOUR TAX DOES NOT VARY BY CUSTOMER AND IS EQUAL FOR EACH 1,865
CUSTOMER BASED SOLELY ON KILOWATT HOURS OF ELECTRICITY 1,866
DISTRIBUTED. AS USED IN THIS DIVISION, "KILOWATT HOUR" MEANS ONE
THOUSAND WATT-HOURS OF ELECTRICITY. 1,867
Sec. 4911.18. (A) For the sole purpose of maintaining and 1,876
administering the office of the consumers' counsel and exercising 1,877
the powers of the consumers' counsel under this chapter, an 1,878
amount equal to the appropriation to the office of the consumers' 1,879
counsel in each fiscal year shall be apportioned among and 1,880
assessed against the EACH public utilities UTILITY within the 1,882
state, as defined in section 4911.01 of the Revised Code, by 1,883
first computing an assessment as though it were to be made in 1,884
proportion to the intrastate gross earnings or receipts of the 1,885
public utilities companies UTILITY for the calendar year next 1,886
preceding that in which the assessments are ASSESSMENT IS made, 1,888
excluding earnings or receipts from sales to other public 1,890
utilities for resale. THE OFFICE MAY INCLUDE IN THAT FIRST 1,891
COMPUTATION ANY AMOUNT OF A RAILROAD'S OR PUBLIC UTILITY'S 1,892
INTRASTATE GROSS EARNINGS OR RECEIPTS UNDERREPORTED IN A PRIOR 1,893
YEAR. IN ADDITION TO WHATEVER PENALTIES APPLY UNDER THE REVISED 1,894
CODE TO SUCH UNDERREPORTING, THE OFFICE SHALL ASSESS THE RAILROAD 1,896
OR PUBLIC UTILITY INTEREST AT THE RATE STATED IN DIVISION (A) OF 1,897
SECTION 1343.01 OF THE REVISED CODE. THE OFFICE SHALL DEPOSIT 1,899
ANY INTEREST SO COLLECTED INTO THE CONSUMERS' COUNSEL OPERATING
FUND. 1,900
45
The final computation of the assessment shall consist of 1,902
imposing upon each company PUBLIC UTILITY whose assessment under 1,903
the first computation would have been fifty dollars or less an 1,905
assessment of fifty dollars and recomputing the assessment of the 1,906
remaining companies by apportioning an amount equal to the 1,907
appropriation to the office of consumers' counsel in each fiscal 1,908
year less the total amount to be recovered from those paying the 1,909
minimum assessment, in proportion to the intrastate gross 1,910
earnings or receipts of the remaining companies for the calendar 1,911
year next preceding that in which the assessments are made, 1,912
excluding earnings or receipts from sales to other public 1,913
utilities for resale. 1,914
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 1,916
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 1,917
ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF THE REVISED 1,918
CODE, OR AN ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 1,919
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 1,920
4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE THOSE 1,922
SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 1,923
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 1,924
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE PUBLIC 1,925
UTILITIES COMMISSION PURSUANT TO DIVISION (F) OF SECTION 4928.06 1,926
OF THE REVISED CODE, AND VERIFIED BY THE COMMISSION. 1,928
(B) On or before the first day of October in each year, 1,930
the OFFICE OF CONSUMERS' counsel shall notify each public utility 1,931
company of the sum assessed against it, whereupon payment shall 1,933
be made to the counsel, who shall deposit it into the state 1,934
treasury to the credit of the consumers' counsel operating fund, 1,936
which is hereby created. Any such amounts paid into the fund but 1,939
not expended by the counsel OFFICE shall be credited ratably by 1,941
the counsel OFFICE to the public utility companies which 1,943
UTILITIES THAT pay more than the minimum assessment, according to 1,945
the respective portions of such sum assessable against them for 1,946
the ensuing calendar year, after first deducting any deficits
46
accumulated from prior years. The assessments for such calendar 1,947
year shall be reduced correspondingly. 1,948
(C) Within five days after the beginning of each fiscal 1,950
year, the director of budget and management shall transfer from 1,951
the general revenue fund to the consumers' counsel operating fund 1,952
an amount sufficient for maintaining and administering the office 1,953
of the consumers' counsel and exercising the powers of the 1,954
consumers' counsel under this chapter during the first four 1,955
months of the fiscal year. Not later than the thirty-first day 1,956
of December of the fiscal year, the same amount shall be 1,958
transferred back to the general revenue fund from the consumers' 1,959
counsel operating fund.
(D) AS USED IN THIS SECTION, "PUBLIC UTILITY" INCLUDES, IN 1,961
ADDITION TO AN ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF 1,962
THE REVISED CODE, AN ELECTRIC SERVICES COMPANY, AN ELECTRIC 1,964
COOPERATIVE, OR A GOVERNMENTAL AGGREGATOR SUBJECT TO
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE 1,966
EXTENT OF THE COMPANY'S, COOPERATIVE'S, OR AGGREGATOR'S
ENGAGEMENT IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE 1,967
SUPPLY IN THIS STATE OF ANY RETAIL ELECTRIC SERVICE FOR WHICH IT 1,969
MUST BE SO CERTIFIED.
Sec. 4928.01. (A) AS USED IN THIS CHAPTER: 1,971
(1) "ANCILLARY SERVICE" MEANS ANY FUNCTION NECESSARY TO 1,973
THE PROVISION OF ELECTRIC TRANSMISSION OR DISTRIBUTION SERVICE TO 1,974
A RETAIL CUSTOMER AND INCLUDES, BUT IS NOT LIMITED TO, 1,975
SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICES; REACTIVE 1,976
SUPPLY FROM GENERATION RESOURCES AND VOLTAGE CONTROL SERVICE; 1,977
REACTIVE SUPPLY FROM TRANSMISSION RESOURCES SERVICE; REGULATION 1,978
SERVICE; FREQUENCY RESPONSE SERVICE; ENERGY IMBALANCE SERVICE; 1,979
OPERATING RESERVE-SPINNING RESERVE SERVICE; OPERATING 1,980
RESERVE-SUPPLEMENTAL RESERVE SERVICE; LOAD FOLLOWING; BACK-UP 1,981
SUPPLY SERVICE; REAL-POWER LOSS REPLACEMENT SERVICE; DYNAMIC 1,982
SCHEDULING; SYSTEM BLACK START CAPABILITY; AND NETWORK STABILITY 1,983
SERVICE.
47
(2) "AUCTION CUSTOMER" MEANS A CUSTOMER OF AN ELECTRIC 1,985
UTILITY THAT HAS NEVER MADE AN AFFIRMATIVE CHOICE TO BE SUPPLIED 1,987
RETAIL ELECTRIC GENERATION SERVICE BY ITS ELECTRIC DISTRIBUTION 1,988
UTILITY OR HAS NEVER CONTRACTED WITH ANOTHER GENERATION SUPPLIER, 1,989
OR A CUSTOMER THAT ELECTS TO OPT INTO THE COMPETITIVE AUCTION 1,990
PROCESS PROVIDED BY SECTION 4928.44 OF THE REVISED CODE. 1,991
(3) "BILLING AND COLLECTION AGENT" MEANS A FULLY 1,993
INDEPENDENT AGENT, NOT AFFILIATED WITH OR OTHERWISE CONTROLLED BY 1,994
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 1,995
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 1,996
UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE EXTENT THAT THE 1,997
AGENT IS UNDER CONTRACT WITH SUCH UTILITY, COMPANY, COOPERATIVE,
OR AGGREGATOR SOLELY TO PROVIDE BILLING AND COLLECTION FOR RETAIL 1,999
ELECTRIC SERVICE ON BEHALF OF THE UTILITY COMPANY, COOPERATIVE, 2,000
OR AGGREGATOR.
(4) "CERTIFIED TERRITORY" MEANS THE CERTIFIED TERRITORY 2,002
ESTABLISHED FOR AN ELECTRIC SUPPLIER UNDER SECTIONS 4933.81 TO 2,003
4933.90 OF THE REVISED CODE AS AMENDED BY SUB. S.B. NO. 3 OF THE 2,005
123rd GENERAL ASSEMBLY. 2,006
(5) "COMPETITIVE AUCTION PERIOD" FOR A PARTICULAR ELECTRIC 2,008
UTILITY MEANS THE PERIOD OF TIME BEGINNING THE DAY AFTER THE 2,009
EXPIRATION DATE OF THE MARKET DEVELOPMENT PERIOD FOR THAT UTILITY 2,010
AND ENDING UPON SUCH DATE AS IS DETERMINED BY THE PUBLIC 2,011
UTILITIES COMMISSION PURSUANT TO SECTION 4928.44 OF THE REVISED 2,012
CODE.
(6) "COMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,014
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS COMPETITIVE AS 2,015
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,016
(7) "ELECTRIC COOPERATIVE" MEANS A NOT-FOR-PROFIT ELECTRIC 2,018
LIGHT COMPANY THAT BOTH IS OR HAS BEEN FINANCED IN WHOLE OR IN 2,019
PART UNDER THE "RURAL ELECTRIFICATION ACT OF 1936," 49 STAT. 2,023
1363, 7 U.S.C. 901 AND OWNS OR OPERATES FACILITIES IN THIS STATE 2,025
TO GENERATE, TRANSMIT, OR DISTRIBUTE ELECTRICITY, OR A SUCCESSOR 2,026
OF SUCH COMPANY.
48
(8) "ELECTRIC DISTRIBUTION UTILITY" MEANS AN ELECTRIC 2,028
UTILITY THAT SUPPLIES AT LEAST RETAIL ELECTRIC DISTRIBUTION 2,029
SERVICE.
(9) "ELECTRIC LIGHT COMPANY" HAS THE SAME MEANING AS IN 2,031
SECTION 4905.03 OF THE REVISED CODE AND INCLUDES AN ELECTRIC 2,032
SERVICES COMPANY. 2,033
(10) "ELECTRIC LOAD CENTER" HAS THE SAME MEANING AS IN 2,035
SECTION 4933.81 OF THE REVISED CODE. 2,036
(11) "ELECTRIC SERVICES COMPANY" MEANS AN ELECTRIC LIGHT 2,038
COMPANY THAT IS ENGAGED ON A FOR-PROFIT OR NOT-FOR-PROFIT BASIS 2,039
IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE SUPPLY OF ONLY 2,040
A COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,042
SERVICES COMPANY" INCLUDES A POWER MARKETER, POWER BROKER, 2,043
AGGREGATOR, OR INDEPENDENT POWER PRODUCER BUT EXCLUDES AN 2,044
ELECTRIC COOPERATIVE, MUNICIPAL ELECTRIC UTILITY, GOVERNMENTAL 2,046
AGGREGATOR, OR BILLING AND COLLECTION AGENT.
(12) "ELECTRIC SUPPLIER" HAS THE SAME MEANING AS IN 2,048
SECTION 4933.81 OF THE REVISED CODE. 2,049
(13) "ELECTRIC UTILITY" MEANS AN ELECTRIC LIGHT COMPANY 2,051
THAT IS ENGAGED ON A FOR-PROFIT BASIS IN THE BUSINESS OF 2,054
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE
OR IN THE BUSINESSES OF SUPPLYING BOTH A NONCOMPETITIVE AND A 2,056
COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,057
UTILITY" EXCLUDES MUNICIPAL ELECTRIC UTILITY OR A BILLING AND 2,059
COLLECTION AGENT.
(14) "FIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE OTHER 2,063
THAN NONFIRM ELECTRIC SERVICE.
(15) "GOVERNMENTAL AGGREGATOR" MEANS A LEGISLATIVE 2,066
AUTHORITY OF A MUNICIPAL CORPORATION, A BOARD OF TOWNSHIP 2,067
TRUSTEES, OR A BOARD OF COUNTY COMMISSIONERS ACTING AS AN 2,068
AGGREGATOR FOR THE PROVISION OF A COMPETITIVE RETAIL ELECTRIC 2,069
SERVICE UNDER AUTHORITY CONFERRED UNDER SECTION 4928.20 OF THE 2,071
REVISED CODE.
(16) A PERSON ACTS "KNOWINGLY," REGARDLESS OF THE PERSON'S 2,073
49
PURPOSE, WHEN THE PERSON IS AWARE THAT THE PERSON'S CONDUCT WILL 2,074
PROBABLY CAUSE A CERTAIN RESULT OR WILL PROBABLY BE OF A CERTAIN 2,075
NATURE. A PERSON HAS KNOWLEDGE OF CIRCUMSTANCES WHEN THE PERSON 2,076
IS AWARE THAT SUCH CIRCUMSTANCES PROBABLY EXIST. 2,077
(17) "LEVEL OF FUNDING FOR LOW-INCOME CUSTOMER ENERGY 2,079
EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC UTILITY RATES" 2,080
MEANS THE LEVEL OF FUNDS COMMITTED BY AN ELECTRIC UTILITY 2,081
PURSUANT TO AN ORDER OF THE PUBLIC UTILITIES COMMISSION ISSUED 2,082
UNDER CHAPTER 4905. OR 4909. OF THE REVISED CODE AND IN EFFECT ON 2,083
THE DAY BEFORE THE EFFECTIVE DATE OF THIS SECTION, FOR THE 2,085
PURPOSE OF IMPROVING THE ENERGY EFFICIENCY OF HOUSING FOR THE 2,086
UTILITY'S LOW-INCOME CUSTOMERS. THE TERM EXCLUDES THE LEVEL OF 2,087
ANY SUCH FUNDS COMMITTED TO A SPECIFIC NONPROFIT ORGANIZATION OR 2,088
ORGANIZATIONS PURSUANT TO A STIPULATION OR CONTRACT. 2,089
(18) "LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS" MEANS THE 2,091
PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM AS PRESCRIBED IN RULES 2,092
4901:1-18-02(B) TO (G) AND 4901:1-18-04(B) OF THE OHIO 2,094
ADMINISTRATIVE CODE IN EFFECT ON THE EFFECTIVE DATE OF THIS 2,095
SECTION OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER SECTION 2,097
4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; THE HOME 2,098
ENERGY ASSISTANCE PROGRAM AS PRESCRIBED IN SECTION 5117.21 OF THE 2,099
REVISED CODE AND IN EXECUTIVE ORDER 97-1023-V OR, IF MODIFIED 2,100
PURSUANT TO AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, 2,101
THE PROGRAM AS MODIFIED; THE HOME WEATHERIZATION ASSISTANCE 2,103
PROGRAM AS PRESCRIBED IN DIVISION (A)(6) OF SECTION 122.011 AND 2,104
IN SECTION 122.02 OF THE REVISED CODE OR, IF MODIFIED PURSUANT TO 2,106
AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM
AS MODIFIED; THE OHIO ENERGY CREDIT PROGRAM AS PRESCRIBED IN 2,107
SECTIONS 5117.01 TO 5117.05, 5117.07 TO 5117.12, AND 5117.99 OF 2,108
THE REVISED CODE OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER 2,109
SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; AND 2,110
THE TARGETED ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM 2,111
ESTABLISHED UNDER SECTION 4928.55 OF THE REVISED CODE. 2,112
(19) "MARKET DEVELOPMENT PERIOD" FOR AN ELECTRIC UTILITY 2,114
50
MEANS THE PERIOD OF TIME BEGINNING ON THE STARTING DATE OF 2,115
COMPETITIVE RETAIL ELECTRIC SERVICE AND ENDING ON THE APPLICABLE 2,116
DATE FOR THAT UTILITY AS SPECIFIED IN SECTION 4928.40 OF THE 2,117
REVISED CODE, IRRESPECTIVE OF WHETHER THE UTILITY APPLIES TO 2,118
RECEIVE TRANSITION REVENUES UNDER THIS CHAPTER. 2,119
(20) "MARKET POWER" MEANS THE ABILITY TO IMPOSE ON 2,121
CUSTOMERS A SUSTAINED PRICE FOR A PRODUCT OR SERVICE ABOVE THE 2,122
PRICE THAT WOULD PREVAIL IN A COMPETITIVE MARKET. 2,123
(21) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 2,125
CORPORATION THAT OWNS OR OPERATES FACILITIES TO GENERATE, 2,126
TRANSMIT, OR DISTRIBUTE ELECTRICITY. 2,127
(22) "NONCOMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,129
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS NONCOMPETITIVE AS 2,130
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,131
(23) "NONFIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE 2,134
PROVIDED PURSUANT TO A SCHEDULE FILED UNDER SECTION 4905.30 OF 2,135
THE REVISED CODE OR PURSUANT TO AN ARRANGEMENT UNDER SECTION 2,136
4905.31 OF THE REVISED CODE, WHICH SCHEDULE OR ARRANGEMENT 2,138
INCLUDES CONDITIONS THAT MAY REQUIRE THE CUSTOMER TO CURTAIL OR 2,139
INTERRUPT ELECTRIC USAGE DURING NONEMERGENCY CIRCUMSTANCES UPON
NOTIFICATION BY AN ELECTRIC UTILITY. 2,140
(24) "PERSON" HAS THE SAME MEANING AS IN SECTION 1.59 OF 2,142
THE REVISED CODE. 2,144
(25) "PROJECT" MEANS ANY REAL OR PERSONAL PROPERTY 2,146
CONNECTED WITH ALL OR PART OF AN INDUSTRIAL, DISTRIBUTION, 2,147
COMMERCIAL, OR RESEARCH FACILITY, NOT-FOR-PROFIT FACILITY, OR 2,148
RESIDENCE THAT IS TO BE ACQUIRED, CONSTRUCTED, RECONSTRUCTED, 2,149
ENLARGED, IMPROVED, FURNISHED, OR EQUIPPED, OR ANY COMBINATION OF 2,150
THOSE ACTIVITIES, WITH AID FURNISHED PURSUANT TO SECTIONS 4928.61 2,151
TO 4928.63 OF THE REVISED CODE FOR THE PURPOSES OF 2,153
NOT-FOR-PROFIT, INDUSTRIAL, COMMERCIAL, DISTRIBUTION,
RESIDENTIAL, AND RESEARCH DEVELOPMENT IN THIS STATE. "PROJECT" 2,155
INCLUDES, BUT IS NOT LIMITED TO, ANY SMALL-SCALE RENEWABLES 2,156
PROJECT.
51
(26) "REGULATORY ASSETS" MEANS THE UNAMORTIZED NET 2,159
REGULATORY ASSETS THAT ARE CAPITALIZED OR DEFERRED ON THE 2,160
REGULATORY BOOKS OF THE ELECTRIC UTILITY, PURSUANT TO AN ORDER OR 2,161
PRACTICE OF THE PUBLIC UTILITIES COMMISSION OR PURSUANT TO 2,162
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS A RESULT OF A PRIOR
COMMISSION RATE-MAKING DECISION, AND THAT WOULD OTHERWISE HAVE 2,163
BEEN CHARGED TO EXPENSE AS INCURRED OR WOULD NOT HAVE BEEN 2,164
CAPITALIZED OR OTHERWISE DEFERRED FOR FUTURE REGULATORY 2,165
CONSIDERATION ABSENT COMMISSION ACTION. "REGULATORY ASSETS" 2,166
INCLUDES, BUT IS NOT LIMITED TO, ALL DEFERRED DEMAND-SIDE 2,167
MANAGEMENT COSTS; ALL DEFERRED PERCENTAGE OF INCOME PAYMENT PLAN 2,168
AMOUNTS; POST-IN-SERVICE CAPITALIZED CHARGES AND ASSETS 2,169
RECOGNIZED IN CONNECTION WITH STATEMENT OF FINANCIAL ACCOUNTING 2,170
STANDARDS NO. 109 (RECEIVABLES FROM CUSTOMERS FOR INCOME TAXES); 2,171
FUTURE NUCLEAR DECOMMISSIONING COSTS AND FUEL DISPOSAL COSTS AS 2,172
THOSE COSTS HAVE BEEN DETERMINED BY THE COMMISSION IN THE 2,173
ELECTRIC UTILITY'S MOST RECENT RATE OR ACCOUNTING APPLICATION 2,174
PROCEEDING ADDRESSING SUCH COSTS; THE UNDERPRECIATED COSTS OF 2,175
SAFETY AND RADIATION CONTROL EQUIPMENT ON NUCLEAR GENERATING 2,176
PLANTS OWNED OR LEASED BY AN ELECTRIC UTILITY; AND FUEL COSTS 2,177
CURRENTLY DEFERRED PURSUANT TO THE TERMS OF ONE OR MORE 2,178
SETTLEMENT AGREEMENTS APPROVED BY THE COMMISSION. 2,179
(27) "RETAIL ELECTRIC SERVICE" MEANS ANY SERVICE INVOLVED 2,181
IN SUPPLYING OR ARRANGING FOR THE SUPPLY OF ELECTRICITY TO 2,182
ULTIMATE CONSUMERS IN THIS STATE, FROM THE POINT OF GENERATION TO 2,183
THE POINT OF CONSUMPTION. FOR THE PURPOSES OF THIS CHAPTER, 2,184
RETAIL ELECTRIC SERVICE INCLUDES ONE OR MORE OF THE FOLLOWING 2,185
"SERVICE COMPONENTS": GENERATION SERVICE, AGGREGATION SERVICE, 2,186
POWER MARKETING SERVICE, POWER BROKERAGE SERVICE, TRANSMISSION 2,187
SERVICE, DISTRIBUTION SERVICE, ANCILLARY SERVICE, METERING 2,188
SERVICE, AND BILLING AND COLLECTION SERVICE. 2,189
(28) "STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,191
SERVICE" MEANS JANUARY 1, 2001, EXCEPT AS PROVIDED IN DIVISION 2,192
(C) OF THIS SECTION. 2,194
52
(B) FOR THE PURPOSES OF THIS CHAPTER, A RETAIL ELECTRIC 2,196
SERVICE COMPONENT SHALL BE DEEMED A COMPETITIVE RETAIL ELECTRIC 2,197
SERVICE IF THE SERVICE COMPONENT IS COMPETITIVE PURSUANT TO A 2,199
DECLARATION BY A PROVISION OF THE REVISED CODE OR PURSUANT TO AN 2,200
ORDER OF THE PUBLIC UTILITIES COMMISSION AUTHORIZED UNDER
DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE. OTHERWISE, 2,203
THE SERVICE COMPONENT SHALL BE DEEMED A NONCOMPETITIVE RETAIL 2,204
ELECTRIC SERVICE.
(C) PRIOR TO JANUARY 1, 2001, THE PUBLIC UTILITIES 2,206
COMMISSION MAY ISSUE AN ORDER DELAYING THE JANUARY 1, 2001, 2,208
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE BY A 2,209
SPECIFIED NUMBER OF DAYS NOT TO EXCEED SIX MONTHS, BUT ONLY FOR 2,210
EXTREME TECHNICAL CONDITIONS PRECLUDING THE START OF COMPETITIVE 2,212
RETAIL ELECTRIC SERVICE ON JANUARY 1, 2001. 2,213
Sec. 4928.02. IT IS THE POLICY OF THIS STATE TO DO THE 2,215
FOLLOWING THROUGHOUT THIS STATE BEGINNING ON THE STARTING DATE OF 2,216
COMPETITIVE RETAIL ELECTRIC SERVICE: 2,217
(A) ENSURE THE AVAILABILITY TO CONSUMERS OF ADEQUATE, 2,219
RELIABLE, SAFE, EFFICIENT, NONDISCRIMINATORY, AND REASONABLY 2,220
PRICED RETAIL ELECTRIC SERVICE; 2,221
(B) ENSURE THE AVAILABILITY OF UNBUNDLED AND COMPARABLE 2,223
RETAIL ELECTRIC SERVICE THAT PROVIDES CONSUMERS WITH THE 2,224
SUPPLIER, PRICE, TERMS, CONDITIONS, AND QUALITY OPTIONS THEY 2,226
ELECT TO MEET THEIR RESPECTIVE NEEDS;
(C) ENSURE DIVERSITY OF ELECTRICITY SUPPLIES AND 2,228
SUPPLIERS, BY GIVING CONSUMERS EFFECTIVE CHOICES OVER THE 2,229
SELECTION OF THOSE SUPPLIES AND SUPPLIERS AND BY ENCOURAGING THE 2,230
DEVELOPMENT OF DISTRIBUTED AND SMALL GENERATION FACILITIES; 2,231
(D) ENCOURAGE INNOVATION AND MARKET ACCESS FOR 2,233
COST-EFFECTIVE SUPPLY- AND DEMAND-SIDE RETAIL ELECTRIC SERVICE; 2,234
(E) ENCOURAGE COST-EFFECTIVE AND EFFICIENT ACCESS TO 2,236
INFORMATION REGARDING THE OPERATION OF THE TRANSMISSION AND 2,237
DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES IN ORDER TO PROMOTE 2,239
EFFECTIVE CUSTOMER CHOICE OF RETAIL ELECTRIC SERVICE;
53
(F) RECOGNIZE THE CONTINUING EMERGENCE OF COMPETITIVE 2,241
ELECTRICITY MARKETS THROUGH THE DEVELOPMENT AND IMPLEMENTATION OF 2,242
FLEXIBLE REGULATORY TREATMENT; 2,243
(G) ENSURE EFFECTIVE COMPETITION IN THE PROVISION OF 2,245
RETAIL ELECTRIC SERVICE BY AVOIDING ANTICOMPETITIVE SUBSIDIES 2,246
FLOWING FROM A NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO A 2,248
COMPETITIVE RETAIL ELECTRIC SERVICE OR TO A PRODUCT OR SERVICE 2,249
OTHER THAN RETAIL ELECTRIC SERVICE, AND VICE VERSA;
(H) ENSURE RETAIL ELECTRIC SERVICE CONSUMERS PROTECTION 2,251
AGAINST UNREASONABLE SALES PRACTICES, MARKET DEFICIENCIES, AND 2,252
MARKET POWER; 2,253
(I) FACILITATE THE STATE'S EFFECTIVENESS IN THE GLOBAL 2,255
ECONOMY. 2,256
Sec. 4928.03. BEGINNING ON THE STARTING DATE OF 2,258
COMPETITIVE RETAIL ELECTRIC SERVICE, RETAIL ELECTRIC GENERATION, 2,259
AGGREGATION, POWER MARKETING, AND POWER BROKERAGE SERVICES 2,260
SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED TERRITORY OF AN 2,261
ELECTRIC UTILITY ARE COMPETITIVE RETAIL ELECTRIC SERVICES THAT 2,262
THE CONSUMERS MAY OBTAIN SUBJECT TO THIS CHAPTER FROM ANY 2,263
SUPPLIER OR SUPPLIERS. IN ACCORDANCE WITH A FILING UNDER 2,264
DIVISION (F) OF SECTION 4933.81 OF THE REVISED CODE, RETAIL 2,265
ELECTRIC GENERATION, AGGREGATION, POWER MARKETING, OR POWER 2,266
BROKERAGE SERVICES SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,267
TERRITORY OF AN ELECTRIC COOPERATIVE THAT HAS MADE THE FILING ARE 2,268
COMPETITIVE RETAIL ELECTRIC SERVICES THAT THE CONSUMERS MAY 2,270
OBTAIN SUBJECT TO THIS CHAPTER FROM ANY SUPPLIER OR SUPPLIERS. 2,271
BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 2,273
ELECTRIC SERVICE AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 2,274
EACH CONSUMER IN THIS STATE AND THE SUPPLIERS TO A CONSUMER SHALL 2,275
HAVE COMPARABLE AND NONDISCRIMINATORY ACCESS TO NONCOMPETITIVE 2,276
RETAIL ELECTRIC SERVICES OF AN ELECTRIC UTILITY IN THIS STATE 2,277
WITHIN ITS CERTIFIED TERRITORY FOR THE PURPOSE OF SATISFYING THE 2,279
CONSUMER'S ELECTRICITY REQUIREMENTS IN KEEPING WITH THE POLICY 2,280
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE. 2,282
54
Sec. 4928.04. (A) THE PUBLIC UTILITIES COMMISSION BY 2,284
ORDER MAY DECLARE THAT RETAIL ANCILLARY, METERING, OR BILLING AND 2,285
COLLECTION SERVICE SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,287
TERRITORY OF AN ELECTRIC UTILITY ON OR AFTER THE STARTING DATE OF 2,288
COMPETITIVE RETAIL ELECTRIC SERVICE IS A COMPETITIVE RETAIL 2,289
ELECTRIC SERVICE THAT THE CONSUMERS MAY OBTAIN FROM ANY SUPPLIER 2,290
OR SUPPLIERS SUBJECT TO THIS CHAPTER. THE COMMISSION MAY ISSUE 2,291
SUCH ORDER, AFTER INVESTIGATION AND PUBLIC HEARING, ONLY IF IT 2,292
FIRST DETERMINES EITHER OF THE FOLLOWING: 2,293
(1) THERE WILL BE EFFECTIVE COMPETITION WITH RESPECT TO 2,295
THE SERVICE. 2,296
(2) THE CUSTOMERS OF THE SERVICE HAVE REASONABLY AVAILABLE 2,298
ALTERNATIVES. 2,299
THE COMMISSION SHALL INITIATE A PROCEEDING ON OR BEFORE 2,301
MARCH 31, 2003, ON THE QUESTION OF THE DESIRABILITY, FEASIBILITY, 2,302
AND TIMING OF ANY SUCH COMPETITION. 2,303
(B) IN CARRYING OUT DIVISION (A) OF THIS SECTION, THE 2,305
COMMISSION MAY PRESCRIBE DIFFERENT CLASSIFICATIONS, PROCEDURES, 2,306
TERMS, OR CONDITIONS FOR DIFFERENT ELECTRIC UTILITIES AND FOR THE
RETAIL ELECTRIC SERVICES THEY PROVIDE THAT ARE DECLARED 2,307
COMPETITIVE PURSUANT TO THAT DIVISION, PROVIDED THE 2,308
CLASSIFICATIONS, PROCEDURES, TERMS, OR CONDITIONS ARE REASONABLE 2,309
AND DO NOT CONFER ANY UNDUE ECONOMIC, COMPETITIVE, OR MARKET 2,310
ADVANTAGE OR PREFERENCE UPON ANY ELECTRIC UTILITY. 2,311
Sec. 4928.05. (A)(1) ON AND AFTER THE STARTING DATE OF 2,313
COMPETITIVE RETAIL ELECTRIC SERVICE, A COMPETITIVE RETAIL 2,315
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC UTILITY SHALL NOT BE 2,316
SUBJECT TO SUPERVISION AND REGULATION BY THE PUBLIC UTILITIES 2,317
COMMISSION UNDER CHAPTERS 4901. TO 4909., 4933., 4935., OR 4963. 2,318
OF THE REVISED CODE, EXCEPT SECTIONS 4905.10, 4905.33, 4905.35, 2,320
AND 4933.81 TO 4933.90; EXCEPT SECTIONS 4905.06, 4935.03,
4963.40, AND 4963.41 OF THE REVISED CODE REGARDING SERVICE 2,322
RELIABILITY AND PUBLIC SAFETY; AND EXCEPT AS OTHERWISE PROVIDED 2,323
IN THIS CHAPTER. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,324
55
EXCEPTED PROVISIONS WITH RESPECT TO A COMPETITIVE RETAIL ELECTRIC 2,325
SERVICE SHALL BE SUCH AUTHORITY AS IS PROVIDED FOR THEIR 2,326
ENFORCEMENT UNDER CHAPTERS 4901. TO 4909., 4933., 4935., AND 2,327
4963. OF THE REVISED CODE AND THIS CHAPTER.
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,329
ELECTRIC SERVICE, A COMPETITIVE RETAIL ELECTRIC SERVICE SUPPLIED 2,330
BY AN ELECTRIC COOPERATIVE SHALL NOT BE SUBJECT TO SUPERVISION 2,331
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,332
4933., 4935., OR 4963. OF THE REVISED CODE, EXCEPT AS OTHERWISE 2,333
EXPRESSLY PROVIDED IN SECTIONS 4928.01 TO 4928.10 AND 4928.16 OF 2,334
THE REVISED CODE.
(2) ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,336
ELECTRIC SERVICE, A NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,337
SUPPLIED BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SUPERVISION 2,338
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,339
4933., 4935., AND 4963. OF THE REVISED CODE AND THIS CHAPTER, TO 2,340
THE EXTENT THAT AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE 2,342
COMMISSION'S AUTHORITY TO ENFORCE THOSE PROVISIONS WITH RESPECT 2,343
TO A NONCOMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE THE 2,344
AUTHORITY PROVIDED UNDER THOSE CHAPTERS AND THIS CHAPTER, TO THE 2,345
EXTENT THE AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. 2,346
THE COMMISSION SHALL EXERCISE ITS JURISDICTION WITH RESPECT 2,348
TO THE DELIVERY OF ELECTRICITY BY AN ELECTRIC UTILITY IN THIS 2,349
STATE ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,350
ELECTRIC SERVICE SO AS TO ENSURE THAT NO ASPECT OF THE DELIVERY 2,351
OF ELECTRICITY BY THE UTILITY TO CONSUMERS IN THIS STATE THAT 2,352
CONSISTS OF A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IS 2,353
UNREGULATED.
ON AND AFTER THAT STARTING DATE, A NONCOMPETITIVE RETAIL 2,355
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC COOPERATIVE SHALL NOT BE 2,357
SUBJECT TO SUPERVISION AND REGULATION BY THE COMMISSION UNDER 2,358
CHAPTERS 4901. TO 4909., 4933., 4935., AND 4963. OF THE REVISED 2,359
CODE, EXCEPT SECTIONS 4933.81 TO 4933.90 AND 4935.03 OF THE
REVISED CODE. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,360
56
EXCEPTED SECTIONS WITH RESPECT TO A NONCOMPETITIVE RETAIL 2,361
ELECTRIC SERVICE OF AN ELECTRIC COOPERATIVE SHALL BE SUCH
AUTHORITY AS IS PROVIDED FOR THEIR ENFORCEMENT UNDER CHAPTERS 2,362
4933. AND 4935. OF THE REVISED CODE. 2,363
(B) NOTHING IN THIS CHAPTER AFFECTS THE AUTHORITY OF THE 2,365
COMMISSION UNDER TITLE XLIX OF THE REVISED CODE TO REGULATE AN 2,366
ELECTRIC LIGHT COMPANY IN THIS STATE OR AN ELECTRIC SERVICE 2,367
SUPPLIED IN THIS STATE PRIOR TO THE STARTING DATE OF COMPETITIVE 2,368
RETAIL ELECTRIC SERVICE. 2,369
Sec. 4928.06. (A) BEGINNING ON THE STARTING DATE OF 2,371
COMPETITIVE RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES 2,372
COMMISSION SHALL ENSURE THAT THE POLICY SPECIFIED IN SECTION 2,374
4928.02 OF THE REVISED CODE IS EFFECTUATED. TO THE EXTENT 2,376
NECESSARY, THE COMMISSION SHALL ADOPT RULES TO CARRY OUT THIS 2,377
CHAPTER. INITIAL RULES NECESSARY FOR THE COMMENCEMENT OF THE 2,378
COMPETITIVE RETAIL ELECTRIC SERVICE UNDER THIS CHAPTER SHALL BE 2,379
ADOPTED WITHIN ONE HUNDRED EIGHTY DAYS AFTER THE EFFECTIVE DATE 2,380
OF THIS SECTION. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, 2,381
THE PROCEEDINGS AND ORDERS OF THE COMMISSION UNDER THE CHAPTER 2,382
SHALL BE SUBJECT TO AND GOVERNED BY CHAPTER 4903. OF THE REVISED 2,383
CODE. 2,384
(B) IF THE COMMISSION DETERMINES, ON OR AFTER THE STARTING 2,387
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, THAT THERE IS A 2,388
DECLINE OR LOSS OF EFFECTIVE COMPETITION WITH RESPECT TO A 2,389
COMPETITIVE RETAIL ELECTRIC SERVICE OF AN ELECTRIC UTILITY, WHICH 2,390
SERVICE WAS DECLARED COMPETITIVE BY COMMISSION ORDER ISSUED 2,392
PURSUANT TO DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE, 2,393
THE COMMISSION SHALL ENSURE THAT THAT SERVICE IS PROVIDED AT 2,394
COMPENSATORY, FAIR, AND NONDISCRIMINATORY PRICES AND TERMS AND 2,395
CONDITIONS.
(C) IN ADDITION TO ITS AUTHORITY UNDER SECTION 4928.04 OF 2,397
THE REVISED CODE AND DIVISIONS (A) AND (B) OF THIS SECTION, THE 2,399
COMMISSION, ON AN ONGOING BASIS, SHALL MONITOR AND EVALUATE THE 2,400
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE FOR THE 2,401
57
PURPOSE OF DISCERNING ANY NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,402
THAT SHOULD BE AVAILABLE ON A COMPETITIVE BASIS ON OR AFTER THE 2,403
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE PURSUANT TO 2,404
A DECLARATION IN THE REVISED CODE, AND FOR THE PURPOSE OF 2,405
DISCERNING ANY COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS NO 2,407
LONGER SUBJECT TO EFFECTIVE COMPETITION ON OR AFTER THAT DATE. 2,408
UPON SUCH EVALUATION, THE COMMISSION PERIODICALLY SHALL REPORT 2,409
ITS FINDINGS AND ANY RECOMMENDATIONS FOR LEGISLATION TO THE 2,410
STANDING COMMITTEES OF BOTH HOUSES OF THE GENERAL ASSEMBLY THAT 2,411
HAVE PRIMARY JURISDICTION REGARDING PUBLIC UTILITY LEGISLATION. 2,412
UNTIL 2008, THE COMMISSION AND THE CONSUMER'S COUNSEL ALSO SHALL 2,413
PROVIDE BIENNIAL REPORTS TO THOSE STANDING COMMITTEES, REGARDING 2,414
THE EFFECTIVENESS OF COMPETITION IN THE SUPPLY OF COMPETITIVE 2,415
RETAIL ELECTRIC SERVICES IN THIS STATE. IN ADDITION, UNTIL THE 2,417
END OF ALL MARKET DEVELOPMENT PERIODS AS DETERMINED OR EXTENDED 2,418
BY THE COMMISSION UNDER SECTION 4928.40 OF THE REVISED CODE,
THOSE STANDING COMMITTEES SHALL MEET AT LEAST BIENNIALLY TO 2,419
CONSIDER THE EFFECT ON THIS STATE OF ELECTRIC SERVICE 2,420
RESTRUCTURING AND TO RECEIVE REPORTS FROM THE COMMISSION, 2,421
CONSUMERS' COUNSEL, AND DIRECTOR OF DEVELOPMENT. 2,422
(D) IN DETERMINING, FOR PURPOSES OF DIVISION (B) OR (C) OF 2,425
THIS SECTION OR DIVISION (B) OF SECTION 4928.44 OF THE REVISED 2,426
CODE, WHETHER THERE IS EFFECTIVE COMPETITION IN THE PROVISION OF 2,427
A RETAIL ELECTRIC SERVICE OR REASONABLY AVAILABLE ALTERNATIVES 2,429
FOR THAT SERVICE, THE COMMISSION SHALL CONSIDER FACTORS 2,430
INCLUDING, BUT NOT LIMITED TO, ALL OF THE FOLLOWING: 2,431
(1) THE NUMBER AND SIZE OF ALTERNATIVE PROVIDERS OF THAT 2,433
SERVICE;
(2) THE EXTENT TO WHICH THE SERVICE IS AVAILABLE FROM 2,435
ALTERNATIVE SUPPLIERS IN THE RELEVANT MARKET; 2,436
(3) THE ABILITY OF ALTERNATIVE SUPPLIERS TO MAKE 2,438
FUNCTIONALLY EQUIVALENT OR SUBSTITUTE SERVICES READILY AVAILABLE 2,439
AT COMPETITIVE PRICES, TERMS, AND CONDITIONS; 2,440
(4) OTHER INDICATORS OF MARKET POWER, WHICH MAY INCLUDE 2,442
58
MARKET SHARE, GROWTH IN MARKET SHARE, EASE OF ENTRY, AND THE 2,443
AFFILIATION OF SUPPLIERS OF SERVICES. 2,444
THE BURDEN OF PROOF SHALL BE ON ANY ENTITY REQUESTING, 2,446
UNDER DIVISION (B) OR (C) OF THIS SECTION, A DETERMINATION BY THE 2,447
COMMISSION OF THE EXISTENCE OF OR A LACK OF EFFECTIVE COMPETITION 2,448
OR REASONABLY AVAILABLE ALTERNATIVES. 2,449
(E)(1) BEGINNING ON THE STARTING DATE OF COMPETITIVE 2,451
RETAIL ELECTRIC SERVICE, THE COMMISSION HAS AUTHORITY UNDER 2,452
CHAPTERS 4901. TO 4909. OF THE REVISED CODE, AND SHALL EXERCISE 2,453
THAT AUTHORITY, TO RESOLVE ABUSES OF MARKET POWER BY ANY ELECTRIC 2,454
UTILITY THAT INTERFERE WITH EFFECTIVE COMPETITION IN THE 2,455
PROVISION OF RETAIL ELECTRIC SERVICE. 2,456
(2) IN ADDITION TO THE COMMISSION'S AUTHORITY UNDER 2,458
DIVISION (E)(1) OF THIS SECTION, THE COMMISSION, BEGINNING THE 2,460
FIRST YEAR AFTER THE MARKET DEVELOPMENT PERIOD OF A PARTICULAR 2,461
ELECTRIC UTILITY AND AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,462
HEARING, MAY TAKE SUCH MEASURES WITHIN A TRANSMISSION CONSTRAINED 2,463
AREA IN THE UTILITY'S CERTIFIED TERRITORY AS ARE NECESSARY TO 2,464
ENSURE THAT RETAIL ELECTRIC GENERATION SERVICE IS PROVIDED AT 2,465
REASONABLE RATES WITHIN THAT AREA. THE COMMISSION MAY EXERCISE 2,466
THIS AUTHORITY ONLY UPON FINDINGS THAT AN ELECTRIC UTILITY IS OR 2,467
HAS ENGAGED IN THE ABUSE OF MARKET POWER AND THAT THAT ABUSE IS 2,468
NOT ADEQUATELY MITIGATED BY RULES AND PRACTICES OF ANY 2,469
INDEPENDENT TRANSMISSION ENTITY CONTROLLING THE TRANSMISSION 2,470
FACILITIES. ANY SUCH MEASURE SHALL BE TAKEN ONLY TO THE EXTENT 2,471
NECESSARY TO PROTECT CUSTOMERS IN THE AREA FROM THE PARTICULAR 2,472
ABUSE OF MARKET POWER AND TO THE EXTENT THE COMMISSION'S 2,473
AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE MEASURE SHALL 2,474
REMAIN IN EFFECT UNTIL THE COMMISSION, AFTER REASONABLE NOTICE 2,475
AND OPPORTUNITY FOR HEARING, DETERMINES THAT THE PARTICULAR ABUSE 2,476
OF MARKET POWER HAS BEEN MITIGATED.
(F) AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,478
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,479
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE SHALL 2,480
59
PROVIDE THE COMMISSION WITH SUCH INFORMATION, REGARDING A 2,481
COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO 2,482
CERTIFICATIONS, AS THE COMMISSION CONSIDERS NECESSARY TO CARRY 2,484
OUT THIS CHAPTER. AN ELECTRIC UTILITY SHALL PROVIDE THE 2,485
COMMISSION WITH SUCH INFORMATION AS THE COMMISSION CONSIDERS 2,486
NECESSARY TO CARRY OUT DIVISIONS (B) TO (E) OF THIS SECTION. THE 2,487
COMMISSION SHALL TAKE SUCH MEASURES AS IT CONSIDERS NECESSARY TO 2,488
PROTECT THE CONFIDENTIALITY OF ANY SUCH INFORMATION. 2,489
THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO FILE 2,492
WITH THE COMMISSION ON AND AFTER THE STARTING DATE OF COMPETITIVE 2,493
RETAIL ELECTRIC SERVICE AN ANNUAL REPORT OF ITS INTRASTATE GROSS 2,494
RECEIPTS AND SALES OF KILOWATT HOURS OF ELECTRICITY, AND SHALL 2,495
REQUIRE EACH ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, AND 2,496
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION TO FILE AN 2,498
ANNUAL REPORT ON AND AFTER THAT STARTING DATE OF SUCH RECEIPTS 2,499
AND SALES FROM THE PROVISION OF THOSE RETAIL ELECTRIC SERVICES 2,500
FOR WHICH IT IS SUBJECT TO CERTIFICATION. FOR THE PURPOSE OF THE 2,501
REPORTS, SALES OF KILOWATT HOURS OF ELECTRICITY ARE DEEMED TO 2,502
OCCUR AT THE METER OF THE RETAIL CUSTOMER. 2,503
Sec. 4928.07. TO THE MAXIMUM EXTENT PRACTICABLE ON OR 2,505
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 2,506
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,507
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,508
UNDER SECTION 4928.08 OF THE REVISED CODE SHALL SEPARATELY PRICE 2,510
COMPETITIVE RETAIL ELECTRIC SERVICES, AND THE PRICES SHALL BE 2,511
ITEMIZED ON THE BILL OF A CUSTOMER OR OTHERWISE DISCLOSED TO THE 2,512
CUSTOMER. ALTHOUGH A COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,513
BE SUPPLIED TO ANY CONSUMER ON SUCH A BASIS, SUCH AN ELECTRIC 2,514
UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 2,515
GOVERNMENTAL AGGREGATOR MAY REPACKAGE THE SERVICE ON OR AFTER THE 2,516
STARTING DATE AND OFFER IT ON A BUNDLED BASIS WITH OTHER RETAIL 2,517
ELECTRIC SERVICES TO MEET CONSUMER PREFERENCES. SUCH REPACKAGING 2,518
BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SECTIONS 4905.33 TO 2,519
4905.35 OF THE REVISED CODE. REPACKAGING BY SUCH AN ELECTRIC 2,521
60
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL
AGGREGATOR SHALL BE SUBJECT TO THE LIMITATION THAT NO SUCH 2,522
ENTITY, AS TO A COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH THE 2,523
UTILITY, COMPANY, COOPERATIVE, OR AGGREGATOR IS SUBJECT TO 2,524
CERTIFICATION, SHALL FURNISH FREE SERVICE OR SERVICE FOR LESS 2,525
THAN ACTUAL COST FOR THE PURPOSE OF DESTROYING COMPETITION. 2,526
Sec. 4928.08. (A) THIS SECTION APPLIES TO AN ELECTRIC 2,528
COOPERATIVE, OR TO A GOVERNMENTAL AGGREGATOR THAT IS A MUNICIPAL 2,529
ELECTRIC UTILITY, ONLY TO THE EXTENT OF A COMPETITIVE RETAIL 2,531
ELECTRIC SERVICE IT PROVIDES TO A CUSTOMER TO WHOM IT DOES NOT 2,532
PROVIDE A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 2,533
TRANSMISSION OR DISTRIBUTION FACILITIES IT SINGLY OR JOINTLY OWNS 2,534
OR OPERATES.
(B) NO ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,536
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SHALL PROVIDE A 2,537
COMPETITIVE RETAIL ELECTRIC SERVICE TO A CONSUMER IN THIS STATE 2,538
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,539
SERVICE WITHOUT FIRST BEING CERTIFIED BY THE PUBLIC UTILITIES 2,540
COMMISSION REGARDING ITS MANAGERIAL, TECHNICAL, AND FINANCIAL 2,541
CAPABILITY TO PROVIDE THAT SERVICE. CERTIFICATION SHALL BE 2,542
GRANTED PURSUANT TO PROCEDURES AND STANDARDS THE COMMISSION SHALL 2,543
PRESCRIBE IN ACCORDANCE WITH DIVISION (C) OF THIS SECTION, EXCEPT 2,544
THAT CERTIFICATION OR CERTIFICATION RENEWAL SHALL BE DEEMED 2,545
APPROVED THIRTY DAYS AFTER THE FILING OF AN APPLICATION WITH THE 2,546
COMMISSION UNLESS THE COMMISSION SUSPENDS THAT APPROVAL FOR GOOD 2,547
CAUSE SHOWN. IN THE CASE OF SUCH A SUSPENSION, THE COMMISSION 2,548
SHALL ACT TO APPROVE OR DENY CERTIFICATION OR CERTIFICATION 2,549
RENEWAL TO THE APPLICANT NOT LATER THAN NINETY DAYS AFTER THE 2,550
DATE OF THE SUSPENSION. 2,551
(C) CAPABILITY STANDARDS ADOPTED IN RULES UNDER DIVISION 2,554
(B) OF THIS SECTION SHALL BE SUFFICIENT TO ENSURE COMPLIANCE WITH 2,555
THE MINIMUM SERVICE REQUIREMENTS ESTABLISHED UNDER SECTION 2,556
4928.10 OF THE REVISED CODE AND WITH SECTION 4928.09 OF THE 2,558
REVISED CODE. THE STANDARDS SHALL ALLOW FLEXIBILITY FOR 2,559
61
VOLUNTARY AGGREGATION, TO ENCOURAGE MARKET CREATIVITY IN 2,560
RESPONDING TO CONSUMER NEEDS AND DEMANDS. THE RULES SHALL 2,562
INCLUDE PROCEDURES FOR BIENNIALLY RENEWING CERTIFICATION. 2,563
(D) THE COMMISSION MAY SUSPEND, RESCIND, OR CONDITIONALLY 2,565
RESCIND THE CERTIFICATION OF ANY ELECTRIC UTILITY, ELECTRIC 2,567
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,568
AGGREGATOR ISSUED UNDER THIS SECTION IF THE COMMISSION 2,569
DETERMINES, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, 2,570
THAT THE UTILITY, COMPANY, COOPERATIVE, OR AGGREGATOR HAS FAILED 2,571
TO COMPLY WITH ANY APPLICABLE CERTIFICATION STANDARDS OR HAS 2,572
ENGAGED IN ANTICOMPETITIVE OR UNFAIR, DECEPTIVE, OR 2,573
UNCONSCIONABLE ACTS OR PRACTICES IN THIS STATE. 2,574
(E) NO ELECTRIC DISTRIBUTION UTILITY ON AND AFTER THE 2,576
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,577
KNOWINGLY DISTRIBUTE ELECTRICITY, TO A RETAIL CONSUMER IN THIS 2,578
STATE, FOR ANY SUPPLIER OF ELECTRICITY THAT HAS NOT BEEN 2,579
CERTIFIED BY THE COMMISSION PURSUANT TO THIS SECTION. 2,580
Sec. 4928.09. (A)(1) NO PERSON SHALL OPERATE IN THIS 2,582
STATE AS AN ELECTRIC UTILITY, AN ELECTRIC SERVICES COMPANY, OR A 2,583
BILLING AND COLLECTION AGENT ON AND AFTER THE STARTING DATE OF 2,584
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT PERSON FIRST DOES 2,586
BOTH OF THE FOLLOWING:
(a) CONSENTS IRREVOCABLY TO THE JURISDICTION OF THE COURTS 2,588
OF THIS STATE AND SERVICE OF PROCESS IN THIS STATE, INCLUDING, 2,589
WITHOUT LIMITATION, SERVICE OF SUMMONSES AND SUBPOENAS, FOR ANY 2,591
CIVIL OR CRIMINAL PROCEEDING ARISING OUT OF OR RELATING TO SUCH 2,592
OPERATION, BY PROVIDING THAT IRREVOCABLE CONSENT IN ACCORDANCE 2,593
WITH DIVISION (A)(4) OF THIS SECTION;
(b) DESIGNATES AN AGENT AUTHORIZED TO RECEIVE THAT SERVICE 2,595
OF PROCESS IN THIS STATE, BY FILING WITH THE COMMISSION A 2,596
DOCUMENT DESIGNATING THAT AGENT. 2,597
(2) NO PERSON SHALL CONTINUE TO OPERATE AS SUCH AN 2,599
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, OR BILLING AND 2,600
COLLECTION AGENT UNLESS THAT PERSON CONTINUES TO CONSENT TO SUCH 2,601
62
JURISDICTION AND SERVICE OF PROCESS IN THIS STATE AND CONTINUES 2,602
TO DESIGNATE AN AGENT AS PROVIDED UNDER THIS DIVISION, BY 2,603
REFILING IN ACCORDANCE WITH DIVISION (A)(4) OF THIS SECTION THE 2,604
APPROPRIATE DOCUMENTS FILED UNDER DIVISION (A)(1) OF THIS SECTION 2,605
OR, AS APPLICABLE, THE APPROPRIATE AMENDED DOCUMENTS FILED UNDER 2,606
DIVISION (A)(3) OF THIS SECTION. SUCH REFILING SHALL OCCUR 2,607
DURING THE MONTH OF DECEMBER OF EVERY FOURTH YEAR AFTER THE 2,608
INITIAL FILING OF A DOCUMENT UNDER DIVISION (A)(1) OF THIS 2,609
SECTION.
(3) IF THE ADDRESS OF THE PERSON FILING A DOCUMENT UNDER 2,611
DIVISION (A)(1) OR (2) OF THIS SECTION CHANGES, OR IF A PERSON'S 2,612
AGENT OR THE ADDRESS OF THE AGENT CHANGES, FROM THAT LISTED ON 2,613
THE MOST RECENTLY FILED OF SUCH DOCUMENTS, THE PERSON SHALL FILE
AN AMENDED DOCUMENT CONTAINING THE NEW INFORMATION. 2,614
(4) THE CONSENT AND DESIGNATION REQUIRED BY DIVISIONS 2,616
(A)(1) TO (3) OF THIS SECTION SHALL BE IN WRITING, ON FORMS 2,617
PRESCRIBED BY THE PUBLIC UTILITIES COMMISSION. THE ORIGINAL OF
EACH SUCH DOCUMENT OR AMENDED DOCUMENT SHALL BE LEGIBLE AND SHALL 2,618
BE FILED WITH THE COMMISSION, WITH A COPY FILED WITH THE OFFICE 2,619
OF THE CONSUMERS' COUNSEL AND WITH THE ATTORNEY GENERAL'S OFFICE. 2,620
(B) A PERSON WHO ENTERS THIS STATE PURSUANT TO A SUMMONS, 2,622
SUBPOENA, OR OTHER FORM OF PROCESS AUTHORIZED BY THIS SECTION IS 2,623
NOT SUBJECT TO ARREST OR SERVICE OF PROCESS, WHETHER CIVIL OR 2,624
CRIMINAL, IN CONNECTION WITH OTHER MATTERS THAT AROSE BEFORE THE 2,625
PERSON'S ENTRANCE INTO THIS STATE PURSUANT TO SUCH SUMMONS, 2,626
SUBPOENA, OR OTHER FORM OF PROCESS. 2,627
(C) DIVISIONS (A) AND (B) OF THIS SECTION DO NOT APPLY TO 2,629
ANY OF THE FOLLOWING: 2,630
(1) A CORPORATION INCORPORATED UNDER THE LAWS OF THIS 2,632
STATE THAT HAS APPOINTED A STATUTORY AGENT PURSUANT TO SECTION 2,633
1701.07 OR 1702.06 OF THE REVISED CODE; 2,634
(2) A FOREIGN CORPORATION LICENSED TO TRANSACT BUSINESS IN 2,636
THIS STATE THAT HAS APPOINTED A DESIGNATED AGENT PURSUANT TO 2,637
SECTION 1703.041 OF THE REVISED CODE; 2,638
63
(3) ANY OTHER PERSON THAT IS A RESIDENT OF THIS STATE OR 2,640
THAT FILES CONSENT TO SERVICE OF PROCESS AND DESIGNATES A 2,641
STATUTORY AGENT PURSUANT TO OTHER LAWS OF THIS STATE. 2,642
Sec. 4928.10. FOR THE PROTECTION OF CONSUMERS IN THIS 2,644
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,645
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE SPECIFYING 2,646
THE NECESSARY MINIMUM SERVICE REQUIREMENTS, ON OR AFTER THE 2,647
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, OF AN 2,648
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,649
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,650
UNDER SECTION 4928.08 OF THE REVISED CODE REGARDING THE PROVISION 2,651
DIRECTLY OR THROUGH ITS BILLING AND COLLECTION AGENT OF 2,652
COMPETITIVE RETAIL ELECTRIC SERVICES FOR WHICH IT IS SUBJECT TO
CERTIFICATION. RULES ADOPTED UNDER THIS SECTION SHALL INCLUDE A 2,654
PROHIBITION AGAINST UNFAIR, DECEPTIVE, AND UNCONSCIONABLE ACTS 2,655
AND PRACTICES IN THE MARKETING, SOLICITATION, AND SALE OF SUCH A 2,656
COMPETITIVE RETAIL ELECTRIC SERVICE AND IN THE ADMINISTRATION OF 2,657
ANY CONTRACT FOR SERVICE, AND ALSO SHALL INCLUDE ADDITIONAL 2,658
CONSUMER PROTECTIONS CONCERNING ALL OF THE FOLLOWING: 2,659
(A) CONTRACT DISCLOSURE. THE RULES SHALL INCLUDE 2,661
REQUIREMENTS THAT AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,662
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,664
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE DO BOTH 2,665
OF THE FOLLOWING:
(1) PROVIDE CONSUMERS WITH ADEQUATE, ACCURATE, AND 2,667
UNDERSTANDABLE PRICING AND TERMS AND CONDITIONS OF SERVICE, 2,668
INCLUDING ANY SWITCHING FEES, AND WITH A DOCUMENT CONTAINING THE 2,669
TERMS AND CONDITIONS OF PRICING AND SERVICE BEFORE THE CONSUMER 2,670
ENTERS INTO THE CONTRACT FOR SERVICE; 2,671
(2) DISCLOSE THE CONDITIONS UNDER WHICH A CUSTOMER MAY 2,673
RESCIND A CONTRACT WITHOUT PENALTY. 2,674
(B) SERVICE TERMINATION. THE RULES SHALL INCLUDE 2,676
DISCLOSURE OF THE TERMS IDENTIFYING HOW CUSTOMERS MAY SWITCH OR 2,677
TERMINATE SERVICE, INCLUDING ANY REQUIRED NOTICE AND ANY
64
PENALTIES. 2,678
(C) MINIMUM CONTENT OF CUSTOMER BILLS. THE RULES SHALL 2,680
INCLUDE ALL OF THE FOLLOWING REQUIREMENTS: 2,681
(1) UNIFORM PRICE DISCLOSURE AND DISCLOSURES OF TOTAL 2,683
BILLING UNITS FOR THE BILLING PERIOD AND HISTORICAL ANNUAL USAGE; 2,684
(2) TO THE MAXIMUM EXTENT PRACTICABLE, SEPARATE LISTING OF 2,686
EACH SERVICE COMPONENT TO ENABLE A CUSTOMER TO RECALCULATE ITS 2,687
BILL FOR ACCURACY; 2,688
(3) IDENTIFICATION OF THE SUPPLIER OF EACH SERVICE; 2,690
(4) STATEMENT OF WHERE AND HOW PAYMENT MAY BE MADE AND 2,692
PROVISION OF A TOLL-FREE OR LOCAL CUSTOMER ASSISTANCE AND 2,693
COMPLAINT NUMBER FOR THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,694
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR, AS 2,695
WELL AS A CONSUMER ASSISTANCE TELEPHONE NUMBER OR NUMBERS FOR 2,696
STATE AGENCIES, SUCH AS THE COMMISSION, THE OFFICE OF THE 2,697
CONSUMERS' COUNSEL, AND THE ATTORNEY GENERAL'S OFFICE, WITH THE 2,698
AVAILABLE HOURS NOTED.
(D) DISCONNECTION AND SERVICE TERMINATION, INCLUDING 2,700
REQUIREMENTS WITH RESPECT TO MASTER-METERED BUILDINGS. THE RULES 2,701
SHALL INCLUDE POLICIES AND PROCEDURES THAT ARE CONSISTENT WITH 2,702
SECTIONS 4933.121 AND 4933.122 OF THE REVISED CODE AND THE 2,703
COMMISSION'S RULES ADOPTED UNDER THOSE SECTIONS, AND THAT PROVIDE
FOR ALL OF THE FOLLOWING: 2,704
(1) COORDINATION BETWEEN SUPPLIERS FOR THE PURPOSE OF 2,706
MAINTAINING SERVICE; 2,707
(2) THE ALLOCATION OF PARTIAL PAYMENTS BETWEEN SUPPLIERS 2,709
WHEN SERVICE COMPONENTS ARE JOINTLY BILLED; 2,710
(3) A PROHIBITION AGAINST BLOCKING, OR AUTHORIZING THE 2,712
BLOCKING OF, CUSTOMER ACCESS TO A NONCOMPETITIVE RETAIL ELECTRIC 2,713
SERVICE WHEN A CUSTOMER IS DELINQUENT IN PAYMENTS TO THE ELECTRIC 2,714
UTILITY OR ELECTRIC SERVICES COMPANY FOR A COMPETITIVE RETAIL 2,715
ELECTRIC SERVICE;
(4) A PROHIBITION AGAINST SWITCHING, OR AUTHORIZING THE 2,717
SWITCHING OF, A CUSTOMER'S SUPPLIER OF COMPETITIVE RETAIL 2,718
65
ELECTRIC SERVICE WITHOUT THE PRIOR CONSENT OF THE CUSTOMER IN 2,719
ACCORDANCE WITH APPROPRIATE CONFIRMATION PRACTICES, WHICH MAY 2,720
INCLUDE INDEPENDENT, THIRD-PARTY VERIFICATION PROCEDURES. 2,721
(5) A REQUIREMENT OF DISCLOSURE OF THE CONDITIONS UNDER 2,723
WHICH A CUSTOMER MAY RESCIND A DECISION TO SWITCH ITS SUPPLIER 2,724
WITHOUT PENALTY; 2,725
(6) SPECIFICATION OF ANY REQUIRED NOTICE AND ANY PENALTY 2,727
FOR EARLY TERMINATION OF CONTRACT. 2,728
(E) MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY. 2,730
HOWEVER, SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS 2,731
FOR ELECTRIC GENERATION SERVICE SHALL BE DETERMINED PRIMARILY 2,733
THROUGH MARKET EXPECTATIONS AND CONTRACTUAL RELATIONSHIPS. 2,734
(F) GENERATION RESOURCE MIX AND ENVIRONMENTAL 2,736
CHARACTERISTICS OF POWER SUPPLIES. THE RULES SHALL INCLUDE 2,737
REQUIREMENTS FOR DETERMINATION OF THE APPROXIMATE GENERATION
RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS OF THE POWER 2,738
SUPPLIES AND DISCLOSURE TO THE CUSTOMER PRIOR TO THE CUSTOMER 2,739
ENTERING INTO A CONTRACT TO PURCHASE AND FOUR TIMES PER YEAR 2,740
UNDER THE CONTRACT. THE RULES ALSO SHALL REQUIRE THAT THE 2,741
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,742
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR PROVIDE, OR CAUSE ITS 2,743
BILLING AND COLLECTION AGENT TO PROVIDE, A CUSTOMER WITH 2,744
INFORMATION COMPARING THE PROJECTED, WITH THE ACTUAL AND
VERIFIABLE, RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS. THIS 2,745
DISCLOSURE SHALL OCCUR NOT LESS THAN ANNUALLY OR NOT LESS THAN 2,746
ONCE DURING THE CONTRACT PERIOD IF THE CONTRACT PERIOD IS LESS 2,747
THAN ONE YEAR, AND PRIOR TO ANY RENEWAL OF A CONTRACT. 2,748
(G) CUSTOMER INFORMATION. THE RULES SHALL INCLUDE 2,750
REQUIREMENTS THAT THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,752
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR MAKE 2,753
GENERIC CUSTOMER LOAD PATTERN INFORMATION AVAILABLE TO OTHER 2,754
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,755
BASIS, AND MAKE CUSTOMER-SPECIFIC INFORMATION AVAILABLE TO OTHER 2,756
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,757
66
BASIS UNLESS, AS TO CUSTOMER-SPECIFIC INFORMATION, THE CUSTOMER 2,758
OBJECTS. THE RULES SHALL ENSURE THAT EACH SUCH UTILITY, COMPANY, 2,759
COOPERATIVE, OR AGGREGATOR PROVIDE CLEAR AND FREQUENT NOTICE TO 2,760
ITS CUSTOMERS OF THE RIGHT TO OBJECT AND OF APPLICABLE 2,761
PROCEDURES. THE RULES SHALL ESTABLISH THE EXACT LANGUAGE THAT 2,762
SHALL BE USED IN ALL SUCH NOTICES.
Sec. 4928.11. (A) FOR THE PROTECTION OF CONSUMERS IN THIS 2,764
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,766
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE THAT SPECIFY 2,767
MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS FOR 2,768
NONCOMPETITIVE RETAIL ELECTRIC SERVICES SUPPLIED BY AN ELECTRIC 2,769
UTILITY IN THIS STATE, TO THE EXTENT SUCH AUTHORITY IS NOT 2,770
PREEMPTED BY FEDERAL LAW. THE RULES SHALL INCLUDE PRESCRIPTIVE 2,771
STANDARDS FOR INSPECTION, MAINTENANCE, REPAIR, AND REPLACEMENT OF 2,772
THE TRANSMISSION AND DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES; 2,773
SHALL APPLY TO EACH SUBSTANTIAL TYPE OF TRANSMISSION OR 2,774
DISTRIBUTION EQUIPMENT OR FACILITY; SHALL ESTABLISH UNIFORM 2,775
INTERCONNECTION STANDARDS TO ENSURE TRANSMISSION AND DISTRIBUTION 2,776
SYSTEM SAFETY AND RELIABILITY AND SHALL OTHERWISE PROVIDE FOR 2,777
HIGH QUALITY, SAFE, AND RELIABLE ELECTRIC SERVICE; AND SHALL 2,778
INCLUDE STANDARDS FOR OPERATION, RELIABILITY, AND SAFETY DURING 2,779
PERIODS OF EMERGENCY AND DISASTER. THE RULES REGARDING 2,781
INTERCONNECTION SHALL SEEK TO PREVENT BARRIERS TO NEW TECHNOLOGY 2,782
AND SHALL NOT MAKE COMPLIANCE UNDULY BURDENSOME OR EXPENSIVE. 2,783
WHEN QUESTIONS ARISE ABOUT SPECIFIC EQUIPMENT TO MEET 2,784
INTERCONNECTION STANDARDS, THE COMMISSION SHALL INITIATE 2,785
PROCEEDINGS OPEN TO THE PUBLIC TO SOLICIT COMMENTS FROM ALL 2,786
INTERESTED PARTIES. ADDITIONALLY, RULES UNDER THIS DIVISION 2,787
SHALL INCLUDE NONDISCRIMINATORY METERING STANDARDS. 2,788
(B) THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO 2,790
REPORT ANNUALLY TO THE COMMISSION ON AND AFTER THE STARTING DATE 2,791
OF COMPETITIVE RETAIL ELECTRIC SERVICE, REGARDING ITS COMPLIANCE 2,792
WITH THE RULES REQUIRED UNDER DIVISION (A) OF THIS SECTION. THE 2,793
COMMISSION SHALL MAKE THE FILED REPORTS AVAILABLE TO THE PUBLIC. 2,794
67
PERIODICALLY AS DETERMINED BY COMMISSION RULE UNDER DIVISION (A) 2,795
OF SECTION 4928.06 OF THE REVISED CODE AND IN A PROCEEDING 2,796
INITIATED UNDER DIVISION (B) OF SECTION 4928.16 OF THE REVISED 2,797
CODE, THE COMMISSION SHALL REVIEW A UTILITY'S REPORT TO DETERMINE 2,799
THE UTILITY'S COMPLIANCE AND MAY ACT PURSUANT TO DIVISION (B) OF 2,800
SECTION 4928.16 OF THE REVISED CODE TO ENFORCE COMPLIANCE. 2,801
Sec. 4928.12. (A) EXCEPT AS OTHERWISE PROVIDED IN 2,803
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ENTITY SHALL 2,804
OWN OR CONTROL TRANSMISSION FACILITIES AS DEFINED UNDER FEDERAL 2,805
LAW AND LOCATED IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,806
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT ENTITY IS A 2,807
MEMBER OF, AND TRANSFERS CONTROL OF THOSE FACILITIES TO, ONE OR 2,808
MORE QUALIFYING TRANSMISSION ENTITIES, AS DESCRIBED IN DIVISION 2,809
(B) OF THIS SECTION, THAT ARE OPERATIONAL.
(B) AN ENTITY THAT OWNS OR CONTROLS TRANSMISSION 2,811
FACILITIES LOCATED IN THIS STATE COMPLIES WITH DIVISION (A) OF 2,813
THIS SECTION IF EACH TRANSMISSION ENTITY OF WHICH IT IS A MEMBER 2,814
MEETS ALL OF THE FOLLOWING SPECIFICATIONS: 2,815
(1) THE TRANSMISSION ENTITY IS APPROVED BY THE FEDERAL 2,817
ENERGY REGULATORY COMMISSION. 2,818
(2) THE TRANSMISSION ENTITY EFFECTS SEPARATE CONTROL OF 2,820
TRANSMISSION FACILITIES FROM CONTROL OF GENERATION FACILITIES. 2,821
(3) THE TRANSMISSION ENTITY PROHIBITS OR OTHERWISE 2,823
PRECLUDES PANCAKED TRANSMISSION RATES. 2,824
(4) THE TRANSMISSION ENTITY IMPROVES SERVICE RELIABILITY 2,826
WITHIN THIS STATE. 2,827
(5) THE TRANSMISSION ENTITY ACHIEVES THE OBJECTIVES OF AN 2,829
OPEN AND COMPETITIVE ELECTRIC GENERATION MARKETPLACE, ELIMINATION 2,830
OF BARRIERS TO MARKET ENTRY, AND PRECLUSION OF CONTROL OF 2,831
BOTTLENECK ELECTRIC TRANSMISSION FACILITIES IN THE PROVISION OF 2,832
RETAIL ELECTRIC SERVICE. 2,833
(6) THE TRANSMISSION ENTITY IS OF SUFFICIENT SCOPE OR 2,835
OTHERWISE OPERATES TO SUBSTANTIALLY INCREASE ECONOMICAL SUPPLY 2,837
OPTIONS FOR CONSUMERS.
68
(7) THE GOVERNANCE STRUCTURE OR CONTROL OF THE 2,839
TRANSMISSION ENTITY IS INDEPENDENT OF THE OWNERS AND USERS OF THE 2,840
TRANSMISSION FACILITIES, AND NO MEMBER OF ITS BOARD OF DIRECTORS 2,841
HAS AN AFFILIATION, WITH SUCH AN OWNER OR USER OR WITH AN 2,842
AFFILIATE OF AN OWNER OR USER DURING THE MEMBER'S TENURE ON THE 2,843
BOARD, SUCH AS TO UNDULY AFFECT THE TRANSMISSION ENTITY'S 2,844
PERFORMANCE.
(8) THE TRANSMISSION ENTITY OPERATES UNDER POLICIES THAT 2,846
PROMOTE POSITIVE PERFORMANCE DESIGNED TO SATISFY THE ELECTRICITY 2,847
REQUIREMENTS OF CUSTOMERS. 2,848
(9) THE TRANSMISSION ENTITY IS CAPABLE OF MAINTAINING 2,850
REAL-TIME RELIABILITY OF THE ELECTRIC TRANSMISSION SYSTEM, 2,851
ENSURING COMPARABLE AND NONDISCRIMINATORY TRANSMISSION ACCESS AND 2,852
NECESSARY SERVICES, MINIMIZING SYSTEM CONGESTION, AND FURTHER 2,853
ADDRESSING REAL OR POTENTIAL TRANSMISSION CONSTRAINTS. 2,854
(C) TO THE EXTENT THAT A TRANSMISSION ENTITY UNDER 2,856
DIVISION (A) OF THIS SECTION IS AUTHORIZED TO BUILD TRANSMISSION 2,857
FACILITIES, THAT TRANSMISSION ENTITY HAS THE POWERS PROVIDED IN
AND IS SUBJECT TO SECTIONS 1723.01 TO 1723.08 OF THE REVISED 2,858
CODE.
(D) FOR THE PURPOSE OF FORMING OR PARTICIPATING IN A 2,860
REGIONAL REGULATORY OVERSIGHT BODY OR MECHANISM DEVELOPED FOR ANY 2,861
TRANSMISSION ENTITY UNDER DIVISION (A) OF THIS SECTION THAT IS OF 2,862
REGIONAL SCOPE AND OPERATES WITHIN THIS STATE: 2,863
(1) THE COMMISSION MAY MAKE JOINT INVESTIGATIONS, HOLD 2,865
JOINT HEARINGS, WITHIN OR OUTSIDE THIS STATE, AND ISSUE JOINT OR 2,866
CONCURRENT ORDERS IN CONJUNCTION OR CONCURRENCE WITH ANY OFFICIAL 2,867
OR AGENCY OF ANY STATE OR OF THE UNITED STATES, WHETHER IN THE 2,868
HOLDING OF THOSE INVESTIGATIONS OR HEARINGS, OR IN THE MAKING OF 2,869
THOSE ORDERS, THE COMMISSION IS FUNCTIONING UNDER AGREEMENTS OR 2,870
COMPACTS BETWEEN STATES, UNDER THE CONCURRENT POWER OF STATES TO 2,871
REGULATE INTERSTATE COMMERCE, AS AN AGENCY OF THE UNITED STATES, 2,872
OR OTHERWISE. 2,873
(2) THE COMMISSION MAY NEGOTIATE AND ENTER INTO AGREEMENTS 2,875
69
OR COMPACTS WITH AGENCIES OF OTHER STATES FOR COOPERATIVE 2,876
REGULATORY EFFORTS AND FOR THE ENFORCEMENT OF THE RESPECTIVE 2,877
STATE LAWS REGARDING THE TRANSMISSION ENTITY. 2,878
(E) IF A QUALIFYING TRANSMISSION ENTITY IS NOT OPERATIONAL 2,881
AS CONTEMPLATED IN DIVISION (A)(2) OF THIS SECTION, DIVISION 2,883
(A)(9) OF SECTION 4928.34 OF THE REVISED CODE, OR DIVISION (G) OF
SECTION 4928.35 OF THE REVISED CODE, THE COMMISSION BY RULE OR 2,884
ORDER SHALL TAKE SUCH MEASURES OR IMPOSE SUCH REQUIREMENTS ON ALL 2,886
FOR-PROFIT ENTITIES THAT OWN OR CONTROL ELECTRIC TRANSMISSION 2,887
FACILITIES LOCATED IN THIS STATE AS THE COMMISSION DETERMINES 2,888
NECESSARY AND PROPER TO ACHIEVE INDEPENDENT, NONDISCRIMINATORY 2,889
OPERATION OF, AND SEPARATE OWNERSHIP AND CONTROL OF, SUCH 2,890
ELECTRIC TRANSMISSION FACILITIES ON OR AFTER THE STARTING DATE OF 2,891
COMPETITIVE RETAIL ELECTRIC SERVICE. 2,892
Sec. 4928.13. THROUGH A PERIODIC FILING WITH THE PUBLIC 2,894
UTILITIES COMMISSION IN SUCH FORM AS THE COMMISSION SHALL 2,895
PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF THE 2,896
REVISED CODE, EACH ELECTRIC UTILITY THAT OWNS NUCLEAR GENERATION 2,897
FACILITIES LOCATED IN THIS STATE SHALL DEMONSTRATE COMPLIANCE 2,898
WITH DECOMMISSIONING REQUIREMENTS OF THE NUCLEAR REGULATORY
COMMISSION AND PUBLIC UTILITIES COMMISSION AND SHALL DEMONSTRATE 2,900
ADEQUATE FINANCING MECHANISMS TO FUND FACILITY DECOMMISSIONING. 2,901
Sec. 4928.14. (A) AFTER ITS COMPETITIVE AUCTION PERIOD, 2,903
AN ELECTRIC DISTRIBUTION UTILITY IN THIS STATE SHALL PROVIDE 2,904
CONSUMERS, ON A COMPARABLE AND NONDISCRIMINATORY BASIS WITHIN ITS 2,906
CERTIFIED TERRITORY, A STANDARD SERVICE OFFER OF ALL COMPETITIVE 2,907
RETAIL ELECTRIC SERVICES NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC 2,908
SERVICE TO CONSUMERS, INCLUDING A FIRM SUPPLY OF ELECTRIC 2,909
GENERATION SERVICE. SUCH OFFER SHALL BE FILED WITH THE PUBLIC 2,910
UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE REVISED CODE. 2,911
(B) AFTER THAT COMPETITIVE AUCTION PERIOD, THE FAILURE OF 2,913
A SUPPLIER TO PROVIDE RETAIL ELECTRIC GENERATION SERVICE TO 2,914
CUSTOMERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC 2,915
DISTRIBUTION UTILITY SHALL RESULT IN THE SUPPLIER'S CUSTOMERS, 2,916
70
AFTER REASONABLE NOTICE, DEFAULTING TO THE UTILITY'S STANDARD 2,917
SERVICE OFFER FILED UNDER DIVISION (A) OF THIS SECTION UNTIL THE 2,918
CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. A SUPPLIER IS DEEMED 2,919
UNDER THIS SECTION TO HAVE FAILED TO PROVIDE SUCH SERVICE IF THE 2,921
COMMISSION FINDS, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,922
HEARING, THAT ANY OF THE FOLLOWING CONDITIONS ARE MET:
(1) THE SUPPLIER HAS DEFAULTED ON ITS CONTRACTS WITH 2,924
CUSTOMERS, IS IN RECEIVERSHIP, OR HAS FILED FOR BANKRUPTCY. 2,925
(2) THE SUPPLIER IS NO LONGER CAPABLE OF PROVIDING THE 2,927
SERVICE. 2,928
(3) THE SUPPLIER IS UNABLE TO PROVIDE DELIVERY TO 2,930
TRANSMISSION OR DISTRIBUTION FACILITIES FOR SUCH PERIOD OF TIME 2,931
AS MAY BE REASONABLY SPECIFIED BY COMMISSION RULE ADOPTED UNDER 2,932
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 2,933
(4) THE SUPPLIER'S CERTIFICATION HAS BEEN SUSPENDED, 2,935
CONDITIONALLY RESCINDED, OR RESCINDED UNDER DIVISION (D) OF 2,936
SECTION 4928.08 OF THE REVISED CODE.
Sec. 4928.15. (A) EXCEPT AS OTHERWISE PROVIDED IN 2,938
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ELECTRIC 2,940
UTILITY SHALL SUPPLY NONCOMPETITIVE RETAIL ELECTRIC DISTRIBUTION 2,942
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,943
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 2,944
FOR THAT SERVICE THAT IS CONSISTENT WITH THE STATE POLICY 2,945
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED WITH
THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE 2,947
REVISED CODE. THE SCHEDULE SHALL PROVIDE THAT ELECTRIC 2,948
DISTRIBUTION SERVICE UNDER THE SCHEDULE IS AVAILABLE TO ALL 2,949
CONSUMERS WITHIN THE UTILITY'S CERTIFIED TERRITORY AND TO ANY 2,950
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 2,951
BASIS. DISTRIBUTION SERVICE RATES AND CHARGES UNDER THE SCHEDULE 2,952
SHALL BE ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. 2,953
OF THE REVISED CODE. THE SCHEDULE SHALL INCLUDE AN OBLIGATION TO 2,955
BUILD DISTRIBUTION FACILITIES WHEN NECESSARY TO PROVIDE ADEQUATE 2,957
DISTRIBUTION SERVICE, PROVIDED THAT A CUSTOMER REQUESTING THAT
71
SERVICE MAY BE REQUIRED TO PAY ALL OR PART OF THE REASONABLE 2,959
INCREMENTAL COST OF THE NEW FACILITIES, IN ACCORDANCE WITH RULES, 2,960
POLICY, PRECEDENTS, OR ORDERS OF THE COMMISSION. 2,961
(B) EXCEPT AS OTHERWISE PROVIDED IN SECTIONS 4928.31 TO 2,963
4928.40 OF THE REVISED CODE AND EXCEPT AS PREEMPTED BY FEDERAL 2,965
LAW, NO ELECTRIC UTILITY SHALL SUPPLY THE TRANSMISSION SERVICE OR 2,966
ANCILLARY SERVICE COMPONENT OF NONCOMPETITIVE RETAIL ELECTRIC 2,967
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,968
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 2,969
FOR THAT SERVICE COMPONENT THAT IS CONSISTENT WITH THE STATE 2,970
POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED 2,971
WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED CODE. 2,972
THE SCHEDULE SHALL PROVIDE THAT TRANSMISSION OR ANCILLARY SERVICE 2,973
UNDER THE SCHEDULE IS AVAILABLE TO ALL CONSUMERS AND TO ANY 2,974
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 2,975
BASIS. SERVICE RATES AND CHARGES UNDER THE SCHEDULE SHALL BE 2,976
ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. OF THE 2,978
REVISED CODE.
Sec. 4928.16. (A)(1) THE PUBLIC UTILITIES COMMISSION HAS 2,980
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 2,981
COMPLAINT OF ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 2,982
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,983
ELECTRIC SERVICE, REGARDING THE PROVISION BY AN ELECTRIC UTILITY, 2,984
ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,985
AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE
REVISED CODE OF ANY SERVICE FOR WHICH IT IS SUBJECT TO 2,986
CERTIFICATION, OR REGARDING THE PROVISION OF RETAIL ELECTRIC 2,987
GENERATION SERVICE BY A WINNING BIDDER UNDER SECTION 4928.44 OF 2,988
THE REVISED CODE.
(2) THE COMMISSION ALSO HAS JURISDICTION UNDER SECTION 2,990
4905.26 OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 2,991
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 2,993
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 2,994
DETERMINE WHETHER AN ELECTRIC UTILITY HAS VIOLATED OR FAILED TO 2,995
72
COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.15, ANY 2,996
PROVISION OF DIVISIONS (A) TO (D) OF SECTION 4928.35, OR DIVISION 2,997
(G) OF SECTION 4928.44 OF THE REVISED CODE, OR WITH ANY RULE OR 2,999
ORDER ADOPTED OR ISSUED UNDER THOSE SECTIONS; WHETHER AN ELECTRIC 3,001
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 3,002
AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE 3,003
REVISED CODE HAS VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION 3,005
OF SECTIONS 4928.01 TO 4928.10 OF THE REVISED CODE REGARDING A 3,006
COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO 3,007
CERTIFICATION OR ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE 3,009
SECTIONS; OR WHETHER A WINNING BIDDER UNDER SECTION 4928.44 OF
THE REVISED CODE HAS VIOLATED OR FAILED TO COMPLY WITH ANY 3,010
PROVISION OF THAT SECTION OR ANY RULE OR ORDER ADOPTED UNDER THE 3,011
SECTION. 3,012
(B) IN ADDITION TO ITS AUTHORITY UNDER DIVISION (C) OF 3,014
SECTION 4928.08 OF THE REVISED CODE AND TO ANY OTHER REMEDIES 3,016
PROVIDED BY LAW, THE COMMISSION, AFTER REASONABLE NOTICE AND 3,018
OPPORTUNITY FOR HEARING IN ACCORDANCE WITH SECTION 4905.26 OF THE 3,020
REVISED CODE, MAY DO ANY OF THE FOLLOWING: 3,021
(1) ORDER RESCISSION OF A CONTRACT OR RESTITUTION TO 3,023
CUSTOMERS IN ANY COMPLAINT BROUGHT PURSUANT TO DIVISION (A)(1) OR 3,024
(2) OF THIS SECTION; 3,025
(2) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,027
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,029
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC UTILITY 3,030
HAS VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF SECTIONS 3,031
4928.01 TO 4928.15, OR ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,032
SECTION 4928.35, DIVISION (G) OF SECTION 4928.44 OF THE REVISED 3,034
CODE, OR WITH ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE 3,036
SECTIONS. IN ADDITION, THE COMMISSION MAY ORDER ANY REMEDY 3,037
PROVIDED UNDER SECTION 4905.22, 4905.37, OR 4905.38 OF THE
REVISED CODE IF THE VIOLATION OR FAILURE TO COMPLY BY AN ELECTRIC 3,039
UTILITY RELATED TO THE PROVISION OF A NONCOMPETITIVE RETAIL 3,040
ELECTRIC SERVICE.
73
(3) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,042
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,043
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC SERVICES 3,045
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT 3,046
TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE HAS 3,048
VIOLATED OR FAILED TO COMPLY, REGARDING A COMPETITIVE RETAIL 3,050
ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO CERTIFICATION, WITH 3,051
ANY PROVISION OF SECTIONS 4928.01 TO 4928.10 OF THE REVISED CODE 3,053
OR ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE SECTIONS; OR 3,054
UPON A FINDING THAT THE WINNING BIDDER UNDER SECTION 4928.44 OF 3,055
THE REVISED CODE HAS VIOLATED OR FAILED TO COMPLY WITH ANY 3,057
PROVISION OF THAT SECTION OR ANY RULE OR ORDER ADOPTED UNDER THE
SECTION. 3,058
(C)(1) IN ADDITION TO THE AUTHORITY CONFERRED UNDER 3,060
SECTION 4911.15 OF THE REVISED CODE, THE CONSUMERS' COUNSEL MAY 3,061
FILE A COMPLAINT UNDER DIVISION (A)(1) OR (2) OF THIS SECTION ON 3,062
BEHALF OF RESIDENTIAL CONSUMERS IN THIS STATE OR APPEAR BEFORE 3,063
THE COMMISSION AS A REPRESENTATIVE OF THOSE CONSUMERS PURSUANT TO 3,065
ANY COMPLAINT FILED UNDER DIVISION (A)(1) OR (2) OF THIS SECTION. 3,066
(2) IN ADDITION TO THE AUTHORITY CONFERRED UNDER SECTION 3,068
4911.19 OF THE REVISED CODE, THE CONSUMERS' COUNSEL, UPON 3,069
REASONABLE GROUNDS ON AND AFTER THE STARTING DATE OF COMPETITIVE 3,070
RETAIL ELECTRIC SERVICE, MAY FILE WITH THE COMMISSION UNDER 3,071
SECTION 4905.26 OF THE REVISED CODE A COMPLAINT FOR DISCOVERY IF 3,072
THE RECIPIENT OF AN INQUIRY UNDER SECTION 4911.19 OF THE REVISED 3,073
CODE FAILS TO PROVIDE A RESPONSE WITHIN THE TIME SPECIFIED IN 3,074
THAT SECTION.
(D) SECTION 4905.61 OF THE REVISED CODE APPLIES TO A 3,076
VIOLATION BY AN ELECTRIC UTILITY OF, OR TO A FAILURE OF AN 3,077
ELECTRIC UTILITY TO COMPLY WITH, ANY PROVISION OF SECTIONS 3,078
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,079
SECTION 4928.35, OR DIVISION (G) OF SECTION 4928.44 OF THE 3,080
REVISED CODE, OR WITH ANY RULE OR ORDER ADOPTED OR ISSUED UNDER
THOSE SECTIONS. 3,081
74
Sec. 4928.17. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,083
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE AND BEGINNING ON 3,084
THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, NO 3,085
ELECTRIC UTILITY SHALL ENGAGE IN THIS STATE, EITHER DIRECTLY OR 3,086
THROUGH AN AFFILIATE, IN THE BUSINESSES OF SUPPLYING A 3,087
NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING A 3,088
COMPETITIVE RETAIL ELECTRIC SERVICE, OR IN THE BUSINESSES OF 3,089
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING 3,090
A PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE, UNLESS 3,091
THE UTILITY IMPLEMENTS AND OPERATES UNDER A CORPORATE SEPARATION 3,092
PLAN THAT IS APPROVED BY THE PUBLIC UTILITIES COMMISSION UNDER 3,093
THIS SECTION, IS CONSISTENT WITH THE POLICY SPECIFIED IN SECTION 3,094
4928.02 OF THE REVISED CODE, AND ACHIEVES ALL OF THE FOLLOWING: 3,095
(1) THE PLAN PROVIDES, AT MINIMUM, FOR THE PROVISION OF 3,097
THE COMPETITIVE RETAIL ELECTRIC SERVICE OR THE NONELECTRIC 3,098
PRODUCT OR SERVICE THROUGH A FULLY SEPARATED AFFILIATE OF THE 3,099
UTILITY, AND THE PLAN INCLUDES SEPARATE ACCOUNTING REQUIREMENTS, 3,100
THE CODE OF CONDUCT AS ORDERED BY THE COMMISSION PURSUANT TO A 3,101
RULE IT SHALL ADOPT UNDER DIVISION (A) OF SECTION 4928.06 OF THE 3,102
REVISED CODE, AND SUCH OTHER MEASURES AS ARE NECESSARY TO 3,103
EFFECTUATE THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED 3,104
CODE.
(2) THE PLAN SATISFIES THE PUBLIC INTEREST IN PREVENTING 3,106
UNFAIR COMPETITIVE ADVANTAGE AND PREVENTING THE ABUSE OF MARKET 3,107
POWER.
(3) THE PLAN IS SUFFICIENT TO ENSURE THAT THE UTILITY WILL 3,109
NOT EXTEND ANY UNDUE PREFERENCE OR ADVANTAGE TO ANY AFFILIATE, 3,110
DIVISION, OR PART OF ITS OWN BUSINESS ENGAGED IN THE BUSINESS OF 3,111
SUPPLYING THE COMPETITIVE RETAIL ELECTRIC SERVICE OR NONELECTRIC 3,112
PRODUCT OR SERVICE, AND TO ENSURE THAT ANY SUCH AFFILIATE, 3,113
DIVISION, OR PART WILL NOT RECEIVE UNDUE PREFERENCE OR ADVANTAGE 3,114
FROM ANY AFFILIATE, DIVISION, OR PART OF THE BUSINESS ENGAGED IN 3,115
BUSINESS OF SUPPLYING THE NONCOMPETITIVE RETAIL ELECTRIC SERVICE. 3,116
NO SUCH UTILITY, AFFILIATE, DIVISION, OR PART SHALL EXTEND SUCH 3,117
75
UNDUE PREFERENCE.
(B) THE COMMISSION MAY APPROVE, MODIFY AND APPROVE, OR 3,119
DISAPPROVE A CORPORATE SEPARATION PLAN FILED WITH THE COMMISSION 3,120
UNDER DIVISION (A) OF THIS SECTION. AS PART OF THE CODE OF 3,121
CONDUCT REQUIRED UNDER DIVISION (A)(1) OF THIS SECTION, THE 3,122
COMMISSION SHALL ADOPT RULES PURSUANT TO DIVISION (A) OF SECTION 3,123
4928.06 OF THE REVISED CODE REGARDING CORPORATE SEPARATION AND 3,124
PROCEDURES FOR PLAN FILING AND APPROVAL. THE RULES SHALL INCLUDE 3,125
LIMITATIONS ON AFFILIATE PRACTICES SOLELY FOR THE PURPOSE OF 3,126
MAINTAINING A SEPARATION OF THE AFFILIATE'S BUSINESS FROM THE 3,127
BUSINESS OF THE UTILITY TO PREVENT UNFAIR COMPETITIVE ADVANTAGE 3,129
BY VIRTUE OF THAT RELATIONSHIP. THE RULES ALSO SHALL INCLUDE AN 3,130
OPPORTUNITY FOR ANY PERSON HAVING A REAL AND SUBSTANTIAL INTEREST
IN THE CORPORATE SEPARATION PLAN TO FILE SPECIFIC OBJECTIONS TO 3,132
THE PLAN AND PROPOSE SPECIFIC RESPONSES TO ISSUES RAISED IN THE 3,134
OBJECTIONS, WHICH OBJECTIONS AND RESPONSES THE COMMISSION SHALL 3,135
ADDRESS IN ITS FINAL ORDER. PRIOR TO COMMISSION APPROVAL OF THE 3,136
PLAN, THE COMMISSION SHALL AFFORD A HEARING UPON THOSE ASPECTS OF 3,137
THE PLAN THAT THE COMMISSION DETERMINES REASONABLY REQUIRE A 3,138
HEARING. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF A 3,139
SUBSTANTIALLY INADEQUATE PLAN UNDER THIS SECTION. 3,140
(C) THE COMMISSION SHALL ISSUE AN ORDER APPROVING OR 3,142
MODIFYING AND APPROVING A CORPORATE SEPARATION PLAN UNDER THIS 3,143
SECTION, TO BE EFFECTIVE ON THE DATE SPECIFIED IN THE ORDER, ONLY 3,145
UPON FINDINGS THAT THE PLAN REASONABLY COMPLIES WITH THE 3,146
REQUIREMENTS OF DIVISION (A) OF THIS SECTION AND WILL PROVIDE FOR 3,147
ONGOING COMPLIANCE WITH THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE. 3,148
(D) ANY PARTY MAY SEEK AN AMENDMENT TO A CORPORATE 3,150
SEPARATION PLAN APPROVED UNDER THIS SECTION, AND THE COMMISSION, 3,151
PURSUANT TO A REQUEST FROM ANY PARTY OR ON ITS OWN INITIATIVE, 3,152
MAY ORDER AS IT CONSIDERS NECESSARY THE FILING OF AN AMENDED 3,153
CORPORATE SEPARATION PLAN TO REFLECT CHANGED CIRCUMSTANCES. 3,154
(E) NOTWITHSTANDING SECTION 4905.20, 4905.21, 4905.46, OR 3,156
76
4905.48 OF THE REVISED CODE, AN ELECTRIC UTILITY MAY DIVEST 3,157
ITSELF OF ANY GENERATING ASSET AT ANY TIME WITHOUT COMMISSION 3,158
APPROVAL, SUBJECT TO THE PROVISIONS OF TITLE XLIX OF THE REVISED 3,159
CODE RELATING TO THE TRANSFER OF TRANSMISSION, DISTRIBUTION, OR
ANCILLARY SERVICE PROVIDED BY SUCH GENERATING ASSET. 3,160
Sec. 4928.18. (A) NOTWITHSTANDING DIVISION (D)(2)(a) OF 3,163
SECTION 4909.15 OF THE REVISED CODE, NOTHING IN THIS CHAPTER 3,164
PREVENTS THE PUBLIC UTILITIES COMMISSION FROM EXERCISING ITS 3,165
AUTHORITY UNDER TITLE XLIX OF THE REVISED CODE TO PROTECT 3,167
CUSTOMERS OF RETAIL ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC
UTILITY FROM ANY ADVERSE EFFECT OF THE UTILITY'S PROVISION OF A 3,168
PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE. 3,170
(B) THE COMMISSION HAS JURISDICTION UNDER SECTION 4905.26 3,172
OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 3,173
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 3,175
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 3,176
DETERMINE WHETHER AN ELECTRIC UTILITY OR ITS AFFILIATE HAS 3,177
VIOLATED ANY PROVISION OF SECTION 4928.17 OF THE REVISED CODE OR
AN ORDER ISSUED OR RULE ADOPTED UNDER THAT SECTION. FOR THIS 3,179
PURPOSE, THE COMMISSION MAY EXAMINE SUCH BOOKS, ACCOUNTS, OR 3,180
OTHER RECORDS KEPT BY AN ELECTRIC UTILITY OR ITS AFFILIATE AS MAY 3,181
RELATE TO THE BUSINESSES FOR WHICH CORPORATE SEPARATION IS 3,182
REQUIRED UNDER SECTION 4928.17 OF THE REVISED CODE, AND MAY 3,183
INVESTIGATE SUCH UTILITY OR AFFILIATE OPERATIONS AS MAY RELATE TO
THOSE BUSINESSES AND INVESTIGATE THE INTERRELATIONSHIP OF THOSE 3,185
OPERATIONS. ANY SUCH EXAMINATION OR INVESTIGATION BY THE
COMMISSION SHALL BE GOVERNED BY CHAPTER 4903. OF THE REVISED 3,187
CODE.
(C) IN ADDITION TO ANY REMEDIES OTHERWISE PROVIDED BY LAW, 3,189
THE COMMISSION, REGARDING A DETERMINATION OF A VIOLATION PURSUANT 3,190
TO DIVISION (B) OF THIS SECTION, MAY DO ANY OF THE FOLLOWING: 3,192
(1) ISSUE AN ORDER DIRECTING THE UTILITY OR AFFILIATE TO 3,194
COMPLY;
(2) MODIFY AN ORDER AS THE COMMISSION FINDS REASONABLE AND 3,196
77
APPROPRIATE AND ORDER THE UTILITY OR AFFILIATE TO COMPLY WITH THE 3,197
MODIFIED ORDER; 3,198
(3) SUSPEND OR ABROGATE AN ORDER, IN WHOLE OR IN PART; 3,200
(4) ISSUE AN ORDER THAT THE UTILITY OR AFFILIATE PAY 3,202
RESTITUTION TO ANY PERSON INJURED BY THE VIOLATION OR FAILURE TO 3,203
COMPLY;
(5) IMPOSE A FORFEITURE ON THE UTILITY OR AFFILIATE OF UP 3,205
TO TWENTY-FIVE THOUSAND DOLLARS PER DAY PER VIOLATION. THE 3,207
RECOVERY AND DEPOSIT OF ANY SUCH FORFEITURE SHALL BE SUBJECT TO 3,208
SECTIONS 4905.57 AND 4905.59 OF THE REVISED CODE.
(D) IN ADDITION TO ANY OTHER REMEDIES AUTHORIZED BY LAW, 3,210
THE COMMISSION, REGARDING A VIOLATION BY AN ELECTRIC UTILITY 3,211
RELATING TO A CORPORATE SEPARATION PLAN INVOLVING COMPETITIVE 3,213
RETAIL ELECTRIC SERVICE, MAY DO EITHER OF THE FOLLOWING: 3,214
(1) SUSPEND OR ABROGATE AN ORDER, TO THE EXTENT IT IS IN 3,216
EFFECT, AUTHORIZING AN OPPORTUNITY FOR THE UTILITY TO RECEIVE 3,217
TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED BY THE 3,218
COMMISSION UNDER SECTION 4928.33 OF THE REVISED CODE; 3,219
(2) NOTWITHSTANDING ANY PROVISION OF SECTIONS 4933.81 TO 3,221
4933.90 OF THE REVISED CODE TO THE CONTRARY, ISSUE AN ORDER 3,222
AUTHORIZING ANOTHER ELECTRIC LIGHT COMPANY TO FURNISH 3,223
NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO ALL ELECTRIC LOAD 3,224
CENTERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY 3,226
WITHOUT A FINDING OF PHYSICALLY INADEQUATE SERVICE UNDER SECTION 3,227
4933.83 OF THE REVISED CODE.
(E) SECTION 4905.61 OF THE REVISED CODE APPLIES IN THE 3,229
CASE OF ANY VIOLATION OF SECTION 4928.17 OF THE REVISED CODE OR 3,230
OF ANY RULE ADOPTED OR ORDER ISSUED UNDER THAT SECTION. 3,231
Sec. 4928.19. AS PART OF THEIR ONGOING CONSUMER EDUCATION 3,233
EFFORTS, THE PUBLIC UTILITIES COMMISSION AND THE OFFICE OF THE 3,234
CONSUMERS' COUNSEL SHALL ENGAGE IN COOPERATIVE AGENCY EFFORTS TO 3,235
EDUCATE CONSUMERS IN THIS STATE REGARDING ELECTRIC INDUSTRY 3,236
RESTRUCTURING UNDER THIS CHAPTER. 3,237
Sec. 4928.20. (A) THE LEGISLATIVE AUTHORITY OF A 3,239
78
MUNICIPAL CORPORATION THROUGH THE ADOPTION OF AN ORDINANCE, OR 3,240
THE BOARD OF TOWNSHIP TRUSTEES OF A TOWNSHIP OR THE BOARD OF 3,242
COUNTY COMMISSIONERS OF A COUNTY THROUGH THE ADOPTION OF A 3,243
RESOLUTION, MAY PROVIDE THROUGH AGGREGATION FOR THE SUPPLY, ON OR
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 3,244
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE TO ELECTRIC LOAD 3,245
CENTERS LOCATED RESPECTIVELY, WITHIN THE MUNICIPAL CORPORATION, 3,246
TOWNSHIP, OR UNINCORPORATED AREA OF THE COUNTY, EXCEPT TO THE 3,247
EXTENT SUCH AGGREGATION IS OTHERWISE PROHIBITED BY SECTIONS 3,248
4933.81 TO 4933.90 OF THE REVISED CODE OR OTHER LAW OF THIS
STATE. BUT NO SUCH AGGREGATION SHALL OCCUR UNLESS THE PERSON 3,250
OWNING, OCCUPYING, CONTROLLING, OR USING THE ELECTRIC LOAD 3,251
CENTERS PROVIDES PRIOR WRITTEN CONSENT. 3,252
(B) A GOVERNMENTAL AGGREGATOR UNDER DIVISION (A) OF THIS 3,254
SECTION IS NOT A PUBLIC UTILITY ENGAGING IN THE WHOLESALE 3,256
PURCHASE AND RESALE OF ELECTRICITY, AND PROVISION OF THE 3,257
AGGREGATED SERVICE IS NOT A WHOLESALE UTILITY TRANSACTION. A 3,259
GOVERNMENTAL AGGREGATOR SHALL BE SUBJECT TO SUPERVISION AND 3,260
REGULATION BY THE PUBLIC UTILITIES COMMISSION ONLY TO THE EXTENT 3,261
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE IT PROVIDES AND 3,262
COMMISSION AUTHORITY UNDER THIS CHAPTER.
(C) THIS SECTION DOES NOT APPLY IN THE CASE OF A MUNICIPAL 3,264
CORPORATION THAT SUPPLIES SUCH AGGREGATED SERVICE TO ELECTRIC 3,265
LOAD CENTERS TO WHICH ITS MUNICIPAL ELECTRIC UTILITY ALSO 3,266
SUPPLIES A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 3,267
TRANSMISSION OR DISTRIBUTION FACILITIES THE UTILITY SINGLY OR 3,268
JOINTLY OWNS OR OPERATES. 3,269
Sec. 4928.31. (A) NOT LATER THAN NINETY DAYS AFTER THE 3,271
EFFECTIVE DATE OF THIS SECTION, AN ELECTRIC UTILITY SUPPLYING 3,272
RETAIL ELECTRIC SERVICE IN THIS STATE ON THAT DATE SHALL FILE 3,274
WITH THE PUBLIC UTILITIES COMMISSION A PLAN FOR THE UTILITY'S 3,275
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE DURING THE 3,276
MARKET DEVELOPMENT PERIOD. THIS TRANSITION PLAN SHALL BE IN SUCH 3,277
FORM AS THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,278
79
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE AND SHALL 3,279
INCLUDE ALL OF THE FOLLOWING:
(1) A RATE UNBUNDLING PLAN THAT SPECIFIES, CONSISTENT WITH 3,281
DIVISIONS (A)(1) TO (7) OF SECTION 4928.34 OF THE REVISED CODE 3,282
AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF 3,283
SECTION 4928.06 OF THE REVISED CODE, THE UNBUNDLED COMPONENTS FOR 3,284
ELECTRIC GENERATION, TRANSMISSION, AND DISTRIBUTION SERVICE AND 3,285
SUCH OTHER UNBUNDLED SERVICE COMPONENTS AS THE COMMISSION 3,286
REQUIRES, TO BE CHARGED BY THE UTILITY BEGINNING ON THE STARTING 3,287
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE AND THAT INCLUDES 3,288
INFORMATION THE COMMISSION REQUIRES TO FIX AND DETERMINE THOSE 3,289
COMPONENTS;
(2) A CORPORATE SEPARATION PLAN CONSISTENT WITH SECTION 3,291
4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,292
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,294
CODE;
(3) SUCH PLAN OR PLANS AS THE COMMISSION REQUIRES TO 3,296
ADDRESS OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,297
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,298
SERVICE CONSISTENT WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,299
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE; 3,300
(4) AN EMPLOYEE ASSISTANCE PLAN FOR PROVIDING SEVERANCE, 3,302
RETRAINING, EARLY RETIREMENT, RETENTION, OUTPLACEMENT, AND OTHER 3,304
ASSISTANCE FOR THE UTILITY'S EMPLOYEES WHOSE EMPLOYMENT IS 3,305
AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING UNDER THIS CHAPTER; 3,306
(5) A CONSUMER EDUCATION PLAN CONSISTENT WITH SECTION 3,308
4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,309
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,310
CODE.
ADDITIONALLY, A TRANSITION PLAN UNDER THIS SECTION MAY 3,312
INCLUDE AN APPLICATION FOR THE OPPORTUNITY TO RECEIVE TRANSITION 3,313
REVENUES AS AUTHORIZED UNDER SECTIONS 4928.31 TO 4928.40 OF THE 3,315
REVISED CODE, WHICH APPLICATION SHALL BE CONSISTENT WITH THOSE 3,317
SECTIONS AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION 3,318
80
(A) OF SECTION 4928.06 OF THE REVISED CODE. THE TRANSITION PLAN
ALSO MAY INCLUDE A PLAN FOR THE INDEPENDENT OPERATION OF THE 3,319
UTILITY'S TRANSMISSION FACILITIES CONSISTENT WITH SECTION 4928.12 3,320
OF THE REVISED CODE, DIVISION (A)(13) OF SECTION 4928.34 OF THE 3,321
REVISED CODE, AND ANY RULES ADOPTED BY THE COMMISSION UNDER 3,322
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE.
THE COMMISSION MAY REJECT AND REQUIRE REFILING, IN WHOLE OR 3,324
IN PART, OF ANY SUBSTANTIALLY INADEQUATE TRANSITION PLAN. 3,325
(B) THE ELECTRIC UTILITY SHALL PROVIDE PUBLIC NOTICE OF 3,327
ITS FILING UNDER DIVISION (A) OF THIS SECTION, IN A FORM AND 3,328
MANNER THAT THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,329
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. HOWEVER, 3,330
THE ADOPTION OF RULES REGARDING THE PUBLIC NOTICE UNDER THIS 3,331
DIVISION, REGARDING THE FORM OF THE TRANSITION PLAN UNDER 3,332
DIVISION (A) OF THIS SECTION, AND REGARDING PROCEDURES FOR 3,333
EXPEDITED DISCOVERY UNDER DIVISION (A) OF SECTION 4928.32 OF THE 3,334
REVISED CODE ARE NOT SUBJECT TO DIVISION (D) OF SECTION 111.15 OF 3,335
THE REVISED CODE.
Sec. 4928.32. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,337
ESTABLISH REASONABLE PROCEDURES FOR EXPEDITED DISCOVERY IN ANY 3,338
PROCEEDING INITIATED TO CONSIDER A TRANSITION PLAN FILED UNDER 3,340
SECTION 4928.31 OF THE REVISED CODE.
(B) NOT LATER THAN FORTY-FIVE DAYS AFTER THE DATE ON WHICH 3,342
AN ELECTRIC UTILITY FILES A TRANSITION PLAN UNDER SECTION 4928.31 3,343
OF THE REVISED CODE, ANY PERSON HAVING A REAL AND SUBSTANTIAL 3,344
INTEREST IN THE TRANSITION PLAN MAY FILE WITH THE COMMISSION 3,345
PRELIMINARY OBJECTIONS TO THE TRANSITION PLAN, WHICH SHALL 3,346
IDENTIFY WITH SPECIFICITY ISSUES PERTAINING TO ANY ASPECT OF THE 3,347
TRANSITION PLAN, AND ANY SUCH PERSON MAY PROPOSE SPECIFIC 3,348
RESPONSES TO THOSE ISSUES. THE COMMISSION SHALL ADDRESS THOSE 3,349
OBJECTIONS AND RESPONSES IN ITS FINAL ORDER. 3,350
IN ADDITION, NOT LATER THAN NINETY DAYS AFTER THE PLAN'S 3,352
FILING, THE COMMISSION STAFF SHALL FILE WITH THE COMMISSION A 3,354
REPORT OF ITS RECOMMENDATIONS WITH RESPECT TO THE PLAN. PRIOR TO 3,355
81
COMMISSION APPROVAL OF THE PLAN, THE COMMISSION SHALL AFFORD A 3,356
HEARING UPON THOSE ASPECTS OF THE PLAN THAT THE COMMISSION 3,357
DETERMINES REASONABLY REQUIRE A HEARING.
(C) THE COMMISSION SHALL MAINTAIN A COMPLETE RECORD OF ALL 3,359
PROCEEDINGS RELATIVE TO A TRANSITION PLAN FILED UNDER SECTION 3,360
4928.31 OF THE REVISED CODE AND SHALL ISSUE AND FILE WITH THE 3,361
RECORD OF THE CASE FINDINGS OF FACT AND WRITTEN OPINIONS SETTING 3,362
FORTH THE REASONS FOR ANY MODIFICATION TO OR ITS APPROVAL OF A 3,363
TRANSITION PLAN. 3,364
Sec. 4928.33. (A) NOT LATER THAN TWO HUNDRED SEVENTY-FIVE 3,366
DAYS AFTER THE DATE AN ELECTRIC UTILITY FILES A TRANSITION PLAN 3,367
UNDER SECTION 4928.31 OF THE REVISED CODE, BUT, IN ANY EVENT, NOT 3,368
LATER THAN OCTOBER 31, 2000, THE PUBLIC UTILITIES COMMISSION 3,370
SHALL ISSUE A FINAL ORDER APPROVING THE TRANSITION PLAN AS FILED 3,371
UNDER SECTION 4928.31 OF THE REVISED CODE OR AN ORDER MODIFYING 3,372
AND APPROVING THAT PLAN. THE ORDER IS SUBJECT TO SECTION 4903.15 3,373
OF THE REVISED CODE AND IS SUBJECT TO REVIEW AND APPEAL UNDER 3,374
CHAPTER 4903. OF THE REVISED CODE.
(B) IF THE COMMISSION FAILS TO ISSUE, BY OCTOBER 31, 2000, 3,377
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, 3,378
THE COMMISSION SHALL ISSUE AN INTERIM ORDER PRESCRIBING A 3,380
TRANSITION PLAN, TO HAVE EFFECT ON AN INTERIM BASIS ONLY, AND 3,381
CONTAINING THE PLAN COMPONENTS REQUIRED BY DIVISION (A) OF 3,382
SECTION 4928.31 OF THE REVISED CODE AND PROVIDING FOR THE 3,384
OPPORTUNITY FOR TRANSITION REVENUE RECEIPT IF SUCH AN APPLICATION
WERE INCLUDED IN THE PLAN FILED BY THE UTILITY UNDER THAT 3,385
SECTION. THE INTERIM ORDER IS SUBJECT TO SECTION 4903.15 OF THE 3,386
REVISED CODE BUT IS NOT SUBJECT TO REVIEW AND APPEAL UNDER 3,387
CHAPTER 4903. OF THE REVISED CODE. 3,388
AN INTERIM PLAN PRESCRIBED UNDER THE INTERIM ORDER SHALL BE 3,390
EFFECTIVE FOR THE ELECTRIC UTILITY BEGINNING ON THE STARTING DATE 3,391
OF COMPETITIVE RETAIL ELECTRIC SERVICE AND SHALL CONTINUE IN 3,392
EFFECT UNTIL SUCH TIME AS ANY OTHER REPLACEMENT TRANSITION PLAN 3,393
82
TAKES EFFECT PURSUANT TO A FINAL COMMISSION ORDER OR RESOLUTION 3,394
OF AN APPEAL. ANY INTERIM PLAN SO PRESCRIBED SHALL COMPLY WITH 3,395
THE APPLICABLE PROVISIONS OF SECTION 4928.34 OF THE REVISED CODE. 3,397
A FINAL COMMISSION ORDER SHALL PROVIDE FOR A RECONCILIATION OF
THOSE AMOUNTS DETERMINED IN THE FINAL ORDER RELATIVE TO DIVISION 3,398
(A) OF SECTION 4928.31 OF THE REVISED CODE AS COMPARED TO THE 3,399
INTERIM AMOUNTS AS DETERMINED UNDER THIS DIVISION. 3,400
(C) NO ELECTRIC UTILITY REQUIRED TO FILE A TRANSITION PLAN 3,402
UNDER SECTION 4928.31 OF THE REVISED CODE SHALL FAIL TO IMPLEMENT 3,403
A TRANSITION PLAN APPROVED OR PRESCRIBED FOR THE UTILITY BY A 3,404
COMMISSION ORDER ISSUED UNDER DIVISION (A) OR (B) OF THIS 3,405
SECTION. NO ELECTRIC UTILITY SHALL PROVIDE RETAIL ELECTRIC 3,406
SERVICE IN THIS STATE DURING THE MARKET DEVELOPMENT PERIOD EXCEPT 3,407
PURSUANT TO SUCH AN APPROVED OR PRESCRIBED TRANSITION PLAN. 3,408
Sec. 4928.34. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,410
NOT APPROVE OR PRESCRIBE A TRANSITION PLAN UNDER DIVISION (A) OR 3,411
(B) OF SECTION 4928.33 OF THE REVISED CODE UNLESS THE COMMISSION 3,413
FIRST MAKES ALL OF THE FOLLOWING DETERMINATIONS: 3,414
(1) THE UNBUNDLED COMPONENTS FOR THE ELECTRIC TRANSMISSION 3,416
COMPONENT OF RETAIL ELECTRIC SERVICE, AS SPECIFIED IN THE 3,417
UTILITY'S RATE UNBUNDLING PLAN REQUIRED BY DIVISION (A)(1) OF 3,419
SECTION 4928.31 OF THE REVISED CODE, EQUAL THE TARIFF RATES 3,420
DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION THAT ARE
IN EFFECT ON THE DATE OF THE APPROVAL OF THE TRANSITION PLAN 3,421
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AS EACH 3,422
SUCH RATE IS DETERMINED APPLICABLE TO EACH PARTICULAR CUSTOMER 3,424
CLASS BY THE COMMISSION.
(2) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,426
DISTRIBUTION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE 3,427
DIFFERENCE BETWEEN THE COSTS ATTRIBUTABLE TO THE UTILITY'S 3,428
TRANSMISSION AND DISTRIBUTION RATES AND CHARGES UNDER ITS 3,429
SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE EFFECTIVE DATE OF 3,430
THIS SECTION, BASED UPON THE RECORD IN THE MOST RECENT RATE 3,431
PROCEEDING OF THE UTILITY FOR WHICH THE UTILITY'S SCHEDULE WAS
83
ESTABLISHED, AND THE TARIFF RATES FOR ELECTRIC TRANSMISSION 3,433
SERVICE DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION AS 3,434
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION. 3,435
(3) ALL OTHER UNBUNDLED COMPONENTS REQUIRED BY THE 3,437
COMMISSION IN THE RATE UNBUNDLING PLAN EQUAL THE COSTS 3,438
ATTRIBUTABLE TO THE PARTICULAR SERVICE AS REFLECTED IN THE 3,439
UTILITY'S SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE 3,440
EFFECTIVE DATE OF THIS SECTION.
(4) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,442
GENERATION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE RESIDUAL 3,443
AMOUNT REMAINING AFTER THE DETERMINATION OF THE TRANSMISSION, 3,444
DISTRIBUTION, AND OTHER UNBUNDLED COMPONENTS. 3,445
(5) ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN 3,447
HAVE BEEN ADJUSTED TO REFLECT ANY RATE REDUCTIONS UNDER RATE 3,448
SETTLEMENTS IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION. 3,449
HOWEVER, ALL EARNINGS OBLIGATIONS, RESTRICTIONS, OR CAPS IMPOSED 3,450
ON AN ELECTRIC UTILITY IN A COMMISSION ORDER PRIOR TO THE 3,451
EFFECTIVE DATE OF THIS SECTION ARE VOID. 3,452
(6) SUBJECT TO DIVISION (A)(5) OF THIS SECTION, THE TOTAL 3,454
OF ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN ARE 3,456
CAPPED AND DO NOT EXCEED THE TOTAL OF ALL RATES AND CHARGES IN
EFFECT UNDER THE APPLICABLE BUNDLED SCHEDULE OF THE ELECTRIC 3,457
UTILITY PURSUANT TO SECTION 4905.30 OF THE REVISED CODE IN EFFECT 3,458
ON THE DAY BEFORE THE EFFECTIVE DATE OF THIS SECTION, INCLUDING 3,460
THE TRANSITION CHARGE DETERMINED UNDER SECTION 4928.40 OF THE 3,461
REVISED CODE, ANY CHANGES IN THE TAXATION OF ELECTRIC UTILITIES 3,462
AND RETAIL ELECTRIC SERVICE UNDER SUB. S.B. NO. 3 OF THE 123rd 3,464
GENERAL ASSEMBLY, THE UNIVERSAL SERVICE RIDER AUTHORIZED BY 3,466
SECTION 4928.51 OF THE REVISED CODE, AND THE TEMPORARY RIDER 3,467
AUTHORIZED BY SECTION 4928.61 OF THE REVISED CODE. FOR THE
PURPOSE OF THIS DIVISION, THE RATE CAP APPLICABLE TO A CUSTOMER 3,469
RECEIVING ELECTRIC SERVICE PURSUANT TO AN ARRANGEMENT APPROVED BY 3,471
THE COMMISSION UNDER SECTION 4905.31 OF THE REVISED CODE IS THE 3,472
TOTAL OF ALL RATES AND CHARGES IN EFFECT UNDER THE CONTRACT. 3,474
84
(7) THE RATE UNBUNDLING PLAN COMPLIES WITH ANY RULES 3,476
ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 3,477
OF THE REVISED CODE.
(8) THE CORPORATE SEPARATION PLAN REQUIRED BY DIVISION 3,479
(A)(2) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,480
SECTION 4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,481
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,483
CODE.
(9) ANY PLAN OR PLANS THE COMMISSION REQUIRES TO ADDRESS 3,485
OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,486
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,487
SERVICE COMPLY WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,488
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 3,489
(10) THE EMPLOYEE ASSISTANCE PLAN REQUIRED BY DIVISION 3,491
(A)(4) OF SECTION 4928.31 OF THE REVISED CODE SUFFICIENTLY 3,492
PROVIDES SEVERANCE, RETRAINING, EARLY RETIREMENT, RETENTION, 3,493
OUTPLACEMENT, AND OTHER ASSISTANCE FOR THE UTILITY'S EMPLOYEES 3,494
WHOSE EMPLOYMENT IS AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING
UNDER THIS CHAPTER. 3,496
(11) THE CONSUMER EDUCATION PLAN REQUIRED UNDER DIVISION 3,498
(A)(5) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,499
SECTION 4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,500
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,501
CODE.
(12) THE TRANSITION REVENUES FOR WHICH AN ELECTRIC UTILITY 3,503
IS AUTHORIZED A REVENUE OPPORTUNITY UNDER SECTIONS 4928.31 TO 3,505
4928.40 OF THE REVISED CODE ARE THE ALLOWABLE TRANSITION COSTS OF 3,506
THE UTILITY AS SUCH COSTS ARE DETERMINED BY THE COMMISSION 3,507
PURSUANT TO SECTION 4928.39 OF THE REVISED CODE, AND THE 3,508
TRANSITION CHARGES FOR THE CUSTOMER CLASSES OF THE UTILITY ARE 3,510
THE CHARGES DETERMINED PURSUANT TO SECTION 4928.40 OF THE REVISED 3,511
CODE.
(13) ANY INDEPENDENT TRANSMISSION PLAN INCLUDED IN THE 3,514
TRANSITION PLAN FILED UNDER SECTION 4928.31 OF THE REVISED CODE
85
REASONABLY COMPLIES WITH SECTION 4928.12 OF THE REVISED CODE AND 3,515
ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 3,517
4928.06 OF THE REVISED CODE, UNLESS THE COMMISSION, FOR GOOD 3,518
CAUSE SHOWN, AUTHORIZES THE UTILITY TO DEFER COMPLIANCE UNTIL AN 3,519
ORDER IS ISSUED UNDER DIVISION (G) OF SECTION 4928.35 OF THE 3,520
REVISED CODE.
(14) THE UTILITY IS IN COMPLIANCE WITH SECTIONS 4928.01 TO 3,522
4928.11 OF THE REVISED CODE AND ANY RULES OR ORDERS OF THE 3,523
COMMISSION ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,525
IN ADDITION, A TRANSITION PLAN APPROVED BY THE COMMISSION 3,527
UNDER SECTION 4928.33 OF THE REVISED CODE BUT NOT CONTAINING AN 3,528
APPROVED INDEPENDENT TRANSMISSION PLAN SHALL CONTAIN THE EXPRESS 3,529
CONDITIONS THAT THE UTILITY WILL COMPLY WITH AN ORDER ISSUED 3,530
UNDER DIVISION (G) OF SECTION 4928.35 OF THE REVISED CODE. 3,531
(B) SUBJECT TO DIVISION (E) OF SECTION 4928.17 OF THE 3,534
REVISED CODE, IF THE COMMISSION FINDS THAT ANY PART OF THE
TRANSITION PLAN WOULD CONSTITUTE AN ABANDONMENT UNDER SECTIONS 3,536
4905.20 AND 4905.21 OF THE REVISED CODE, THE COMMISSION SHALL NOT 3,537
APPROVE THAT PART OF THE TRANSITION PLAN UNLESS IT MAKES THE 3,538
FINDING REQUIRED FOR APPROVAL OF AN ABANDONMENT APPLICATION UNDER 3,539
SECTION 4905.21 OF THE REVISED CODE. SECTIONS 4905.20 AND 3,541
4905.21 OF THE REVISED CODE OTHERWISE SHALL NOT APPLY TO A 3,543
TRANSITION PLAN UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED 3,544
CODE.
Sec. 4928.35. (A) UPON APPROVAL OF ITS TRANSITION PLAN 3,546
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AN 3,547
ELECTRIC UTILITY SHALL FILE IN ACCORDANCE WITH SECTION 4905.30 OF 3,548
THE REVISED CODE SCHEDULES CONTAINING THE UNBUNDLED RATE 3,550
COMPONENTS SET IN THE APPROVED PLAN IN ACCORDANCE WITH SECTION 3,551
4928.34 OF THE REVISED CODE. THE SCHEDULES SHALL BE IN EFFECT
FOR THE DURATION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD, 3,552
SHALL BE SUBJECT TO THE CAP SPECIFIED IN DIVISION (A)(6) OF 3,553
SECTION 4928.34 OF THE REVISED CODE, AND SHALL NOT BE ADJUSTED 3,554
DURING THAT PERIOD BY THE PUBLIC UTILITIES COMMISSION EXCEPT AS 3,555
86
OTHERWISE AUTHORIZED BY DIVISION (B) OF THIS SECTION OR AS 3,556
OTHERWISE AUTHORIZED BY FEDERAL LAW. 3,557
(B) EFFORTS SHALL BE MADE TO REACH AGREEMENTS WITH 3,559
ELECTRIC UTILITIES IN MATTERS OF LITIGATION REGARDING PROPERTY 3,560
VALUATION ISSUES. IRRESPECTIVE OF THOSE EFFORTS, THE UNBUNDLED 3,561
COMPONENTS FOR AN ELECTRIC UTILITY'S RETAIL ELECTRIC GENERATION 3,562
SERVICE AND DISTRIBUTION SERVICE, AS PROVIDED IN DIVISION (A) OF 3,563
THIS SECTION, ARE NOT SUBJECT TO ADJUSTMENT FOR THE UTILITY'S 3,564
MARKET DEVELOPMENT PERIOD, EXCEPT THAT THE COMMISSION SHALL ORDER 3,565
AN EQUITABLE REDUCTION IN THOSE COMPONENTS FOR ALL CUSTOMER 3,566
CLASSES TO REFLECT ANY REFUND A UTILITY RECEIVES AS A RESULT OF 3,567
THE RESOLUTION OF UTILITY PERSONAL PROPERTY TAX VALUATION 3,568
LITIGATION THAT IS RESOLVED ON OR AFTER THE EFFECTIVE DATE OF 3,569
THIS SECTION AND PRIOR TO THE END OF THE MARKET DEVELOPMENT 3,570
PERIOD. IMMEDIATELY UPON THE ISSUANCE OF THAT ORDER, THE 3,571
ELECTRIC UTILITY SHALL FILE REVISED RATE SCHEDULES UNDER SECTION 3,572
4909.18 OF THE REVISED CODE TO EFFECT THE ORDER. 3,573
(C) THE SCHEDULE UNDER DIVISION (A) OF THIS SECTION 3,575
CONTAINING THE UNBUNDLED DISTRIBUTION COMPONENTS SHALL PROVIDE 3,577
THAT ELECTRIC DISTRIBUTION SERVICE UNDER THE SCHEDULE WILL BE 3,578
AVAILABLE TO ALL RETAIL ELECTRIC SERVICE CUSTOMERS IN THE 3,579
ELECTRIC UTILITY'S CERTIFIED TERRITORY AND THEIR SUPPLIERS ON A 3,580
NONDISCRIMINATORY AND COMPARABLE BASIS ON AND AFTER THE STARTING 3,581
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. THE SCHEDULE ALSO 3,582
SHALL INCLUDE AN OBLIGATION TO BUILD DISTRIBUTION FACILITIES WHEN 3,583
NECESSARY TO PROVIDE ADEQUATE DISTRIBUTION SERVICE, PROVIDED THAT 3,584
A CUSTOMER REQUESTING THAT SERVICE MAY BE REQUIRED TO PAY ALL OR 3,585
PART OF THE REASONABLE INCREMENTAL COST OF THE NEW FACILITIES, IN 3,586
ACCORDANCE WITH RULES, POLICY, PRECEDENTS, OR ORDERS OF THE 3,587
COMMISSION.
(D) DURING THE MARKET DEVELOPMENT PERIOD, AN ELECTRIC 3,589
DISTRIBUTION UTILITY SHALL PROVIDE CONSUMERS ON A COMPARABLE AND 3,590
NONDISCRIMINATORY BASIS WITHIN ITS CERTIFIED TERRITORY A STANDARD 3,592
SERVICE OFFER OF ALL COMPETITIVE RETAIL ELECTRIC SERVICES
87
NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC SERVICE TO CONSUMERS, 3,593
INCLUDING A FIRM SUPPLY OF ELECTRIC GENERATION SERVICE PRICED IN 3,594
ACCORDANCE WITH THE SCHEDULE CONTAINING THE UTILITY'S UNBUNDLED 3,595
GENERATION SERVICE COMPONENT. IMMEDIATELY UPON APPROVAL OF ITS 3,596
TRANSITION PLAN, THE UTILITY SHALL FILE THE STANDARD SERVICE 3,597
OFFER WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED 3,598
CODE. DURING THE MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 3,599
SUPPLIER TO DELIVER RETAIL ELECTRIC GENERATION SERVICE SHALL 3,600
RESULT IN THE SUPPLIER'S CUSTOMERS, AFTER REASONABLE NOTICE, 3,601
DEFAULTING TO THE UTILITY'S STANDARD SERVICE OFFER FILED UNDER 3,602
THIS DIVISION UNTIL THE CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. 3,603
A SUPPLIER IS DEEMED UNDER THIS SECTION TO HAVE FAILED TO DELIVER 3,604
SUCH SERVICE IF ANY OF THE CONDITIONS SPECIFIED IN DIVISIONS 3,605
(B)(1) TO (4) OF SECTION 4928.14 OF THE REVISED CODE IS MET. 3,606
(E) AN AMENDMENT OF A CORPORATE SEPARATION PLAN CONTAINED 3,608
IN A TRANSITION PLAN APPROVED BY THE COMMISSION UNDER SECTION 3,609
4928.33 OF THE REVISED CODE SHALL BE FILED AND APPROVED AS A 3,610
CORPORATE SEPARATION PLAN PURSUANT TO SECTION 4928.17 OF THE 3,611
REVISED CODE. 3,612
(F) ANY CHANGE TO AN ELECTRIC UTILITY'S OPPORTUNITY TO 3,614
RECEIVE TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED IN 3,615
ACCORDANCE WITH SECTION 4928.33 OF THE REVISED CODE SHALL BE 3,616
AUTHORIZED ONLY AS PROVIDED IN SECTIONS 4928.31 TO 4928.40 OF THE 3,617
REVISED CODE. 3,618
(G) THE COMMISSION, BY ORDER, SHALL REQUIRE EACH ELECTRIC 3,620
UTILITY WHOSE APPROVED TRANSITION PLAN DID NOT INCLUDE AN 3,621
INDEPENDENT TRANSMISSION PLAN AS DESCRIBED IN DIVISION (A)(13) OF 3,622
SECTION 4928.34 OF THE REVISED CODE TO BE A MEMBER OF, AND 3,623
TRANSFER CONTROL OF TRANSMISSION FACILITIES IT OWNS OR CONTROLS 3,624
IN THIS STATE TO, ONE OR MORE QUALIFYING TRANSMISSION ENTITIES, 3,625
AS DESCRIBED IN DIVISION (B) OF SECTION 4928.12 OF THE REVISED 3,626
CODE, THAT ARE PLANNED TO BE OPERATIONAL ON AND AFTER DECEMBER 3,627
31, 2005. THE COMMISSION'S ORDER MAY SPECIFY AN EARLIER DATE ON 3,629
WHICH THE TRANSMISSION ENTITY OR ENTITIES ARE PLANNED TO BE 3,630
88
OPERATIONAL IF THE COMMISSION CONSIDERS IT NECESSARY TO CARRY OUT 3,631
THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE OR TO 3,633
ENCOURAGE EFFECTIVE COMPETITION IN RETAIL ELECTRIC SERVICE IN 3,634
THIS STATE.
UPON THE ISSUANCE OF THE ORDER, EACH SUCH UTILITY SHALL 3,636
FILE WITH THE COMMISSION A PLAN FOR SUCH INDEPENDENT OPERATION OF 3,637
THE UTILITY'S TRANSMISSION FACILITIES CONSISTENT WITH THIS 3,638
DIVISION. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF ANY 3,639
SUBSTANTIALLY INADEQUATE PLAN SUBMITTED UNDER THIS DIVISION. 3,640
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, THE 3,642
COMMISSION SHALL APPROVE THE PLAN UPON A FINDING THAT THE PLAN 3,643
WILL RESULT IN THE UTILITY'S COMPLIANCE WITH THE ORDER, THIS 3,644
DIVISION, AND ANY RULES ADOPTED UNDER DIVISION (A) OF SECTION 3,645
4928.06 OF THE REVISED CODE. THE APPROVED INDEPENDENT 3,646
TRANSMISSION PLAN SHALL BE DEEMED A PART OF THE UTILITY'S 3,647
TRANSITION PLAN FOR PURPOSES OF SECTIONS 4928.31 TO 4928.40 OF 3,648
THE REVISED CODE.
Sec. 4928.36. THE PUBLIC UTILITIES COMMISSION HAS 3,650
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 3,651
COMPLAINT BY ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 3,653
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 3,654
ELECTRIC SERVICE, TO DETERMINE WHETHER AN ELECTRIC UTILITY HAS 3,655
FAILED TO IMPLEMENT, IN CONFORMANCE WITH AN ORDER UNDER SECTION 3,656
4928.33 OF THE REVISED CODE OR IN ONGOING COMPLIANCE WITH 3,658
APPLICABLE PROVISIONS OF THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE, A TRANSITION PLAN APPROVED UNDER SECTION 3,659
4928.33 OF THE REVISED CODE. IF, AFTER REASONABLE NOTICE AND 3,661
OPPORTUNITY FOR HEARING AS PROVIDED IN SECTION 4905.26 OF THE 3,663
REVISED CODE, THE COMMISSION DETERMINES THAT THE UTILITY HAS 3,664
FAILED TO SO COMPLY, THE COMMISSION, IN ADDITION TO ANY OTHER 3,665
REMEDIES PROVIDED BY LAW, MAY USE THE REMEDIES SPECIFIED IN 3,666
DIVISIONS (C)(1) TO (3) AND (D)(1) AND (2) OF SECTION 4928.18 OF 3,667
THE REVISED CODE TO ENFORCE COMPLIANCE. 3,668
Sec. 4928.37. (A)(1) SECTIONS 4928.31 TO 4928.40 OF THE 3,670
89
REVISED CODE PROVIDE AN ELECTRIC UTILITY THE OPPORTUNITY TO 3,672
RECEIVE TRANSITION REVENUES THAT MAY ASSIST IT IN MAKING THE
TRANSITION TO A FULLY COMPETITIVE RETAIL ELECTRIC GENERATION 3,674
MARKET. AN ELECTRIC UTILITY FOR WHICH TRANSITION REVENUES ARE 3,675
APPROVED PURSUANT TO SECTIONS 4928.31 TO 4928.40 OF THE REVISED 3,676
CODE SHALL RECEIVE THOSE REVENUES THROUGH BOTH OF THE FOLLOWING 3,677
MECHANISMS BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 3,678
ELECTRIC SERVICE AND ENDING ON THE EXPIRATION DATE OF ITS MARKET 3,679
DEVELOPMENT PERIOD AS DETERMINED UNDER SECTION 4928.40 OF THE 3,680
REVISED CODE:
(a) PAYMENT OF UNBUNDLED RATES FOR RETAIL ELECTRIC 3,682
SERVICES BY EACH CUSTOMER THAT IS SUPPLIED RETAIL ELECTRIC 3,683
GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD BY THE 3,684
CUSTOMER'S ELECTRIC DISTRIBUTION UTILITY, WHICH RATES SHALL BE 3,685
SPECIFIED IN SCHEDULES FILED UNDER SECTION 4928.35 OF THE REVISED 3,686
CODE;
(b) PAYMENT OF A NONBYPASSABLE AND COMPETITIVELY NEUTRAL 3,688
TRANSITION CHARGE BY EACH CUSTOMER THAT IS SUPPLIED RETAIL 3,689
ELECTRIC GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD 3,690
BY AN ENTITY OTHER THAN THE CUSTOMER'S ELECTRIC DISTRIBUTION 3,691
UTILITY, AS SUCH TRANSITION CHARGE IS DETERMINED UNDER SECTION 3,692
4928.40 OF THE REVISED CODE. THE TRANSITION CHARGE SHALL BE 3,693
PAYABLE BY EACH SUCH RETAIL ELECTRIC DISTRIBUTION SERVICE 3,695
CUSTOMER IN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY FOR 3,696
WHICH THE TRANSITION REVENUES ARE APPROVED AND SHALL BE BILLED ON 3,697
EACH KILOWATT HOUR OF ELECTRICITY DELIVERED TO THE CUSTOMER BY 3,698
THE ELECTRIC DISTRIBUTION UTILITY AS REGISTERED ON THE CUSTOMER'S 3,699
METER DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD AS KILOWATT 3,701
HOUR IS DEFINED IN SECTION 4909.161 OF THE REVISED CODE. THE 3,702
TRANSITION CHARGE FOR EACH CUSTOMER CLASS SHALL REFLECT THE COST
ALLOCATION TO THAT CLASS AS PROVIDED UNDER BUNDLED RATES AND 3,703
CHARGES IN EFFECT ON THE DAY BEFORE THE EFFECTIVE DATE OF THIS 3,704
SECTION. ADDITIONALLY, AS REFLECTED IN SECTION 4928.39 OR 3,706
4928.40 OF THE REVISED CODE, THE TRANSITION CHARGES SHALL BE
90
STRUCTURED TO PROVIDE SHOPPING INCENTIVES TO CUSTOMERS SUFFICIENT 3,708
TO ENCOURAGE THE DEVELOPMENT OF EFFECTIVE COMPETITION IN THE 3,709
SUPPLY OF RETAIL ELECTRIC GENERATION SERVICE. TO THE EXTENT 3,710
POSSIBLE, THE LEVEL AND STRUCTURE OF THE TRANSITION CHARGE SHALL 3,712
BE DESIGNED TO AVOID REVENUE RESPONSIBILITY SHIFTS AMONG THE 3,713
UTILITY'S CUSTOMER CLASSES AND RATE SCHEDULES.
(2)(a) NOTWITHSTANDING DIVISION (A)(1)(b) OF THIS SECTION, 3,717
THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON ELECTRICITY 3,718
SUPPLIED BY A MUNICIPAL ELECTRIC UTILITY TO A RETAIL ELECTRIC 3,719
DISTRIBUTION SERVICE CUSTOMER IN THE CERTIFIED TERRITORY OF THE 3,721
ELECTRIC UTILITY FOR WHICH THE TRANSITION REVENUES ARE APPROVED, 3,722
IF THE MUNICIPAL ELECTRIC UTILITY PROVIDES ELECTRIC TRANSMISSION 3,723
OR DISTRIBUTION SERVICE, OR BOTH SERVICES, THROUGH TRANSMISSION 3,724
OR DISTRIBUTION FACILITIES SINGLY OR JOINTLY OWNED OR OPERATED BY 3,725
THE MUNICIPAL ELECTRIC UTILITY.
(b) THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON 3,727
ELECTRICITY SUPPLIED OR CONSUMED IN THIS STATE EXCEPT SUCH 3,728
ELECTRICITY AS IS DELIVERED TO A RETAIL CUSTOMER BY AN ELECTRIC 3,729
DISTRIBUTION UTILITY AND IS REGISTERED ON THE CUSTOMER'S METER 3,730
DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD.
(3) THE TRANSITION CHARGE SHALL NOT BE DISCOUNTED BY ANY 3,732
PARTY UNLESS THERE IS A DETERMINATION BY THE DEPARTMENT OF 3,733
DEVELOPMENT THAT SUCH A DISCOUNT IS PART OF AN APPROVED ECONOMIC 3,734
DEVELOPMENT PACKAGE INVOLVING STATE OR LOCAL FUNDING AND IS 3,735
NECESSARY FOR ECONOMIC DEVELOPMENT TO OCCUR WITHIN THIS STATE 3,736
INSTEAD OF ANOTHER STATE.
(4) NOTHING PREVENTS PAYMENT OF ALL OR PART OF THE 3,738
TRANSITION CHARGE BY ANOTHER PARTY ON A CUSTOMER'S BEHALF IF THAT 3,739
PAYMENT DOES NOT CONTRAVENE SECTIONS 4905.33 TO 4905.35 OF THE 3,740
REVISED CODE OR THIS CHAPTER. 3,741
(B) THE ELECTRIC UTILITY SHALL SEPARATELY ITEMIZE AND 3,743
DISCLOSE, OR CAUSE ITS BILLING AND COLLECTION AGENT TO SEPARATELY 3,744
ITEMIZE AND DISCLOSE, THE TRANSITION CHARGE ON THE CUSTOMER'S 3,745
BILL IN ACCORDANCE WITH REASONABLE SPECIFICATIONS THE COMMISSION 3,746
91
SHALL PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF 3,747
THE REVISED CODE.
Sec. 4928.38. PURSUANT TO A TRANSITION PLAN APPROVED UNDER 3,749
SECTION 4928.33 OF THE REVISED CODE, AN ELECTRIC UTILITY IN THIS 3,751
STATE MAY RECEIVE TRANSITION REVENUES UNDER SECTIONS 4928.31 TO 3,753
4928.40 OF THE REVISED CODE, BEGINNING ON THE STARTING DATE OF 3,755
COMPETITIVE RETAIL ELECTRIC SERVICE. EXCEPT AS PROVIDED IN
SECTIONS 4905.33 TO 4905.35 OF THE REVISED CODE AND THIS CHAPTER, 3,757
AN ELECTRIC UTILITY THAT RECEIVES SUCH TRANSITION REVENUES SHALL 3,758
BE WHOLLY RESPONSIBLE FOR HOW TO USE THOSE REVENUES AND WHOLLY 3,759
RESPONSIBLE FOR WHETHER IT IS IN A COMPETITIVE POSITION AFTER THE 3,760
MARKET DEVELOPMENT PERIOD. THE UTILITY'S RECEIPT OF TRANSITION 3,761
REVENUES SHALL TERMINATE AT THE END OF THE MARKET DEVELOPMENT 3,762
PERIOD. WITH THE TERMINATION OF THAT APPROVED REVENUE SOURCE, 3,763
THE UTILITY SHALL BE FULLY ON ITS OWN IN THE COMPETITIVE MARKET. 3,764
THE COMMISSION SHALL NOT AUTHORIZE THE RECEIPT OF TRANSITION 3,765
REVENUES OR ANY EQUIVALENT REVENUES BY AN ELECTRIC UTILITY EXCEPT 3,766
AS EXPRESSLY AUTHORIZED IN SECTIONS 4928.31 TO 4928.40 OF THE 3,767
REVISED CODE.
Sec. 4928.39. UPON THE FILING OF AN APPLICATION BY AN 3,769
ELECTRIC UTILITY UNDER SECTION 4928.31 OF THE REVISED CODE FOR 3,770
THE OPPORTUNITY TO RECEIVE TRANSITION REVENUES UNDER SECTIONS 3,771
4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC UTILITIES 3,772
COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE REVISED CODE, 3,773
SHALL DETERMINE THE TOTAL ALLOWABLE AMOUNT OF THE TRANSITION 3,774
COSTS OF THE UTILITY TO BE RECEIVED AS TRANSITION REVENUES UNDER 3,775
THOSE SECTIONS. SUCH AMOUNT SHALL BE THE JUST AND REASONABLE 3,776
TRANSITION COSTS OF THE UTILITY, WHICH COSTS THE COMMISSION FINDS 3,777
MEET ALL OF THE FOLLOWING CRITERIA: 3,778
(A) THE COSTS WERE PRUDENTLY INCURRED. 3,780
(B) THE COSTS ARE A LEGITIMATE AND VERIFIABLE RESULT OF 3,782
ELECTRIC RESTRUCTURING UNDER THIS CHAPTER. 3,783
(C) THE COSTS ARE UNRECOVERABLE IN A COMPETITIVE MARKET. 3,785
(D) THE COSTS ARE DIRECTLY ASSIGNABLE OR ALLOCABLE TO 3,787
92
RETAIL ELECTRIC GENERATION SERVICE PROVIDED TO CONSUMERS IN THIS 3,788
STATE.
TRANSITION COSTS UNDER THIS SECTION SHALL NOT INCLUDE THE 3,790
COSTS OF EMPLOYEE ASSISTANCE UNDER THE EMPLOYEE ASSISTANCE PLAN 3,791
INCLUDED IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER SECTION 3,792
4928.33 OF THE REVISED CODE.
FURTHER, IF REQUESTED IN THE APPLICATION, THE COMMISSION'S 3,794
ORDER UNDER THIS SECTION SHALL SEPARATELY IDENTIFY REGULATORY 3,795
ASSETS OF THE UTILITY THAT ARE A PART OF THE TOTAL ALLOWABLE 3,796
AMOUNT OF TRANSITION COSTS DETERMINED UNDER THIS SECTION AND 3,797
SEPARATELY IDENTIFY THAT PORTION OF A TRANSITION CHARGE
DETERMINED UNDER SECTION 4928.40 OF THE REVISED CODE THAT IS 3,798
ALLOCABLE TO THOSE ASSETS WHICH PORTION OF A TRANSITION CHARGE 3,800
SHALL NOT BE SUBJECT TO ADJUSTMENT BEFORE THE MIDPOINT OF THE 3,801
MARKET DEVELOPMENT PERIOD.
THE ELECTRIC UTILITY SHALL HAVE THE BURDEN OF DEMONSTRATING 3,803
ALLOWABLE TRANSITION COSTS AS AUTHORIZED UNDER THIS SECTION. THE 3,804
COMMISSION MAY IMPOSE REASONABLE COMMITMENTS UPON THE UTILITY'S 3,805
COLLECTION OF THE TRANSITION REVENUES TO ENSURE THAT THOSE 3,806
REVENUES ARE USED TO ELIMINATE THE ALLOWABLE TRANSITION COSTS OF 3,807
THE UTILITY DURING THE MARKET DEVELOPMENT PERIOD AND ARE NOT 3,808
AVAILABLE FOR USE BY THE UTILITY TO ACHIEVE AN UNDUE COMPETITIVE 3,809
ADVANTAGE, OR TO IMPOSE AN UNDUE DISADVANTAGE, IN THE PROVISION 3,810
BY THE UTILITY OF REGULATED OR UNREGULATED PRODUCTS OR SERVICES. 3,811
Sec. 4928.40. (A) UPON DETERMINING UNDER SECTION 4928.39 3,813
OF THE REVISED CODE THE ALLOWABLE TRANSITION COSTS OF AN ELECTRIC 3,815
UTILITY AUTHORIZED FOR COLLECTION AS TRANSITION REVENUES UNDER
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC 3,816
UTILITIES COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE 3,817
REVISED CODE, SHALL ESTABLISH THE TRANSITION CHARGE FOR EACH 3,818
CUSTOMER CLASS OF THE ELECTRIC UTILITY AND, TO THE EXTENT 3,819
POSSIBLE, EACH RATE SCHEDULE WITHIN EACH SUCH CUSTOMER CLASS, 3,820
WITH ALL SUCH TRANSITION CHARGES BEING COLLECTED AS PROVIDED IN 3,822
DIVISION (A)(1)(b) OF SECTION 4928.37 OF THE REVISED CODE DURING
93
A MARKET DEVELOPMENT PERIOD FOR THE UTILITY, ENDING ON SUCH DATE
AS THE COMMISSION SHALL REASONABLY PRESCRIBE. NO SUCH MARKET
DEVELOPMENT PERIOD SHALL END AFTER DECEMBER 31, 2005, UNLESS THE 3,823
COMMISSION EXTENDS THE UTILITY'S MARKET DEVELOPMENT PERIOD FOR UP 3,825
TO FIVE YEARS, TO THE EXTENT THE COMMISSION DETERMINES NECESSARY 3,826
TO REDUCE THE LEVEL OF THE TRANSITION CHARGES APPLICABLE TO ANY 3,827
RATE SCHEDULE IN ORDER TO ENCOURAGE EFFECTIVE COMPETITION. 3,828
FACTORS THE COMMISSION SHALL CONSIDER IN PRESCRIBING THE 3,830
EXPIRATION DATE OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AND 3,831
THE TRANSITION CHARGE FOR EACH CUSTOMER CLASS AND RATE SCHEDULE 3,832
OF THE UTILITY INCLUDE, BUT ARE NOT LIMITED TO, THE TOTAL 3,833
ALLOWABLE AMOUNT OF TRANSITION COSTS OF THE ELECTRIC UTILITY AS 3,834
DETERMINED UNDER SECTION 4928.39 OF THE REVISED CODE; THE 3,835
RELEVANT MARKET PRICE FOR THE DELIVERED SUPPLY OF ELECTRICITY TO 3,836
CUSTOMERS IN THAT CUSTOMER CLASS AND, TO THE EXTENT POSSIBLE, IN 3,837
EACH RATE SCHEDULE AS DETERMINED BY THE COMMISSION; AND SUCH 3,838
SHOPPING INCENTIVES BY CUSTOMER CLASS AS ARE CONSIDERED NECESSARY 3,839
TO INDUCE, AT THE MINIMUM, A TWENTY PER CENT LOAD SWITCHING RATE
BY CUSTOMER CLASS HALFWAY THROUGH THE UTILITY'S MARKET 3,840
DEVELOPMENT PERIOD BUT NOT LATER THAN DECEMBER 31, 2003. IN NO 3,841
CASE SHALL THE COMMISSION ESTABLISH A SHOPPING INCENTIVE IN AN 3,842
AMOUNT EXCEEDING THE UNBUNDLED COMPONENT FOR RETAIL ELECTRIC 3,843
GENERATION SERVICE SET IN THE UTILITY'S APPROVED TRANSITION PLAN 3,844
UNDER SECTION 4928.33 OF THE REVISED CODE, AND IN NO CASE SHALL 3,846
THE COMMISSION ESTABLISH A TRANSITION CHARGE IN AN AMOUNT LESS 3,847
THAN ZERO.
(B) THE COMMISSION MAY CONDUCT A PERIODIC REVIEW NO MORE 3,849
OFTEN THAN ANNUALLY AND, AS IT DETERMINES NECESSARY, ADJUST THE 3,851
TRANSITION CHARGES OF THE ELECTRIC UTILITY AS INITIALLY 3,852
ESTABLISHED UNDER DIVISION (A) OF THIS SECTION OR SUBSEQUENTLY 3,853
ADJUSTED UNDER THIS DIVISION. ANY SUCH ADJUSTMENT SHALL BE IN 3,854
ACCORDANCE WITH DIVISION (A) OF THIS SECTION AND MAY REFLECT 3,855
CHANGES IN THE RELEVANT MARKET. 3,856
(C) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE 3,858
94
COMMISSION SHALL ISSUE AN ORDER UNDER SECTION 4928.33 OF THE 3,860
REVISED CODE APPROVING A TRANSITION PLAN FOR AN ELECTRIC UTILITY 3,861
THAT CONTAINS A RATE REDUCTION FOR RESIDENTIAL CUSTOMERS OF THAT 3,862
UTILITY, PROVIDED THAT THE RATE REDUCTION SHALL NOT INCREASE THE 3,863
RATES OR TRANSITION COST RESPONSIBILITY OF ANY OTHER CUSTOMER 3,864
CLASS OF THE UTILITY. THE RATE REDUCTION SHALL BE IN EFFECT ONLY 3,865
FOR SUCH PORTION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AS 3,866
THE COMMISSION SHALL SPECIFY AND SHALL BE APPLIED TO THE 3,867
UNBUNDLED GENERATION COMPONENT FOR RETAIL ELECTRIC GENERATION 3,868
SERVICE AS SET IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER 3,869
SECTION 4928.33 OF THE REVISED CODE SUBJECT TO THE PRICE CAP FOR
RESIDENTIAL CUSTOMERS REQUIRED UNDER DIVISION (A)(6) OF SECTION 3,870
4928.34 OF THE REVISED CODE. THE AMOUNT OF THE RATE REDUCTION 3,871
SHALL BE FIVE PER CENT OF THE AMOUNT OF THAT UNBUNDLED GENERATION 3,873
COMPONENT, BUT SHALL NOT UNDULY DISCOURAGE MARKET ENTRY BY 3,874
ALTERNATIVE SUPPLIERS SEEKING TO SERVE THE RESIDENTIAL MARKET IN 3,875
THIS STATE. THE COMMISSION, AFTER REASONABLE NOTICE AND 3,876
OPPORTUNITY FOR HEARING, MAY TERMINATE THE RATE REDUCTION BY 3,877
ORDER UPON A FINDING THAT THE RATE REDUCTION IS UNDULY 3,878
DISCOURAGING MARKET ENTRY BY SUCH ALTERNATIVE SUPPLIERS. 3,879
(D) BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 3,881
ELECTRIC SERVICE, NO ELECTRIC UTILITY IN THIS STATE SHALL 3,882
PROHIBIT THE RESALE OF ELECTRIC GENERATION SERVICE OR IMPOSE 3,883
UNREASONABLE OR DISCRIMINATORY CONDITIONS OR LIMITATIONS ON THE 3,884
RESALE OF ELECTRIC GENERATION SERVICE. 3,885
Sec. 4928.41. THE TRANSITION REVENUE AUTHORITY PROVIDED 3,887
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE FOR 3,888
ELECTRIC UTILITIES DOES NOT AFFECT THE AUTHORITY OF AN ELECTRIC 3,889
COOPERATIVE IN THIS STATE TO RECEIVE TRANSITION REVENUES. 3,890
Sec. 4928.42. PRIOR TO THE STARTING DATE OF COMPETITIVE 3,892
RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES COMMISSION, IN 3,893
CONSULTATION WITH THE CONSUMERS' COUNSEL AND WITH OTHER STATE 3,894
AGENCIES AS CONSIDERED NECESSARY, SHALL PRESCRIBE AND ADOPT BY 3,895
ORDER A GENERAL PLAN BY WHICH EACH ELECTRIC UTILITY SHALL PROVIDE 3,896
95
DURING ITS MARKET DEVELOPMENT PERIOD CONSUMER EDUCATION ON 3,897
ELECTRIC RESTRUCTURING UNDER THIS CHAPTER. THE GENERAL PLAN 3,898
SHALL REQUIRE THE UTILITIES TO SPEND ON SUCH CONSUMER EDUCATION 3,899
WITHIN THEIR RESPECTIVE CERTIFIED SERVICE TERRITORIES IN THE 3,900
AGGREGATE UP TO SIXTEEN MILLION DOLLARS IN THE FIRST YEAR OF THAT 3,901
PERIOD AND AN ADDITIONAL SEVENTEEN MILLION DOLLARS IN THE 3,902
AGGREGATE IN DECREASING AMOUNTS OVER THE REMAINING YEARS OF EACH 3,903
UTILITY'S MARKET DEVELOPMENT PERIOD, WITH THE AGGREGATE AMOUNTS 3,904
DIVIDED AMONG THE UTILITIES BASED ON THEIR RESPECTIVE NUMBER OF 3,905
CUSTOMERS AS OF DECEMBER 31, 1997. THE GENERAL PLAN SHALL 3,906
PROHIBIT SUCH CONSUMER EDUCATION FROM OCCURRING IN COMBINATION 3,907
WITH MARKETING FOR THE UTILITY'S OR ITS AFFILIATE'S RETAIL 3,908
ELECTRIC SERVICES.
Sec. 4928.43. EACH STATE AGENCY THAT PROVIDES EMPLOYMENT 3,910
ASSISTANCE AND JOB TRAINING PROGRAMS, INCLUDING THE BUREAU OF 3,911
EMPLOYMENT SERVICES AND THE DEPARTMENT OF DEVELOPMENT, SHALL 3,912
PROVIDE CONCENTRATED ATTENTION THROUGH THOSE PROGRAMS TO 3,913
ASSISTING EMPLOYEES WHOSE EMPLOYMENT IN ELECTRIC 3,914
GENERATION-RELATED ACTIVITIES AND OTHER RELATED AREAS IS AFFECTED 3,915
BY ELECTRIC INDUSTRY RESTRUCTURING UNDER THIS CHAPTER. 3,916
Sec. 4928.44. (A) THIS SECTION DOES NOT APPLY TO AN 3,917
ELECTRIC UTILITY IF NEITHER IT NOR ANY OF ITS AFFILIATES OWNS OR 3,919
CONTROLS ANY ELECTRIC GENERATION FACILITIES IN THIS STATE. 3,920
(B) A COMPETITIVE AUCTION OF RETAIL ELECTRIC GENERATION 3,922
SERVICE SHALL BE HELD FOR THE AUCTION CUSTOMERS OF AN ELECTRIC 3,923
UTILITY FOR THE TWELVE-MONTH PERIOD BEGINNING ON THE FIRST DAY OF 3,924
THE COMPETITIVE AUCTION PERIOD. THEREAFTER, SUCH YEARLY 3,925
COMPETITIVE AUCTIONING OF THE UTILITY'S AUCTION CUSTOMERS SHALL 3,926
CONTINUE UNTIL THE PUBLIC UTILITIES COMMISSION BY ORDER DECLARES 3,927
THE AUCTIONING TERMINATED, UPON A COMMISSION FINDING THAT NEITHER 3,928
THE UTILITY NOR ANY OF ITS AFFILIATES OWNS OR CONTROLS ANY 3,929
GENERATING FACILITIES IN THIS STATE OR THAT THERE IS EFFECTIVE 3,930
COMPETITION IN THE UTILITY'S CERTIFIED TERRITORY. THE BURDEN OF 3,931
PROOF IN EITHER INSTANCE SHALL LIE WITH THE UTILITY. UPON 3,932
96
ISSUANCE OF A TERMINATION ORDER UNDER THIS DIVISION, COMPETITIVE 3,933
AUCTIONING OF SUCH RETAIL ELECTRIC SERVICE IS TERMINATED AND 3,934
SHALL NOT BE RENEWED BY THE COMMISSION. 3,935
(C) AT THE END OF COMPETITIVE AUCTIONING FOR A PARTICULAR 3,937
ELECTRIC UTILITY, AUCTION CUSTOMERS, AFTER REASONABLE NOTICE, 3,938
SHALL DEFAULT TO THE UTILITY'S STANDARD SERVICE OFFER UNDER 3,939
DIVISION (A) OF SECTION 4928.15 OF THE REVISED CODE UNTIL THE 3,940
CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. 3,941
(D) AN AUCTION UNDER THIS SECTION SHALL BE ACCOMPLISHED 3,943
THROUGH AN OPEN, REAL-TIME AUCTION CONDUCTED BY AN INDEPENDENT 3,944
PARTY SELECTED BY THE COMMISSION. BID DOCUMENTS SHALL ADDRESS 3,945
SUCH MINIMUM STANDARDS OF MANAGERIAL, FINANCIAL, AND TECHNICAL 3,946
CAPABILITY OF THE SUPPLIER TO DELIVER POWER UNDER THE BID AS THE 3,947
COMMISSION SHALL PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 3,948
4928.06 OF THE REVISED CODE. THE AUCTION CUSTOMERS OF THE 3,949
ELECTRIC UTILITY SHALL BE AUCTIONED IN TEN BLOCKS, EACH 3,950
REPRESENTING TEN PER CENT OF THE AGGREGATED LOAD OF THOSE 3,951
CUSTOMERS.
(E) THE COMMISSION SHALL SELECT THE WINNING BIDDERS BASED 3,953
ON THE BIDS SUBMITTED BY QUALIFIED BIDDERS IN THE AUCTION PROCESS 3,954
CONDUCTED BY THE INDEPENDENT PARTY. THE SOLE SELECTION CRITERION 3,955
SHALL BE LOWEST PRICE. THE PRICE CHARGED AN AUCTION CUSTOMER 3,956
SHALL BE THE AVERAGE PRICE THAT RESULTS FROM THE TEN WINNING 3,957
BIDS. THE PRICE RECEIVED BY THE WINNING BIDDER SHALL BE THE 3,958
BIDDER'S BID PRICE, AND THE COMMISSION SHALL DEVELOP A PROCEDURE 3,959
PROVIDING FOR PROMPT AND FAIR DISBURSEMENT OF REVENUES TO WINNING 3,960
BIDDERS BASED ON SUCH BID PRICES. 3,961
(F) AN AUCTION CUSTOMER'S BILL SHALL DISCLOSE THE PRICE TO 3,963
BE PAID BY THE CUSTOMER AND STATE THAT THE PRICE FOR THE 3,964
GENERATION SERVICE WAS DERIVED THROUGH COMPETITIVE AUCTION. THE 3,965
BILL ALSO SHALL DISCLOSE FUEL MIX AND ENVIRONMENTAL 3,966
CHARACTERISTICS OF THE FUEL SUPPLY AS REQUIRED UNDER DIVISION (F) 3,967
OF SECTION 4928.10 OF THE REVISED CODE. 3,968
(G) UNTIL THE COMMISSION DETERMINES AN ACCEPTABLE BID IN 3,970
97
THE CASE OF A TECHNICAL FLAW IN ANY PART OF AN AUCTION PROPOSAL 3,971
FOR THE TEN BLOCKS OF LOAD, THE ELECTRIC DISTRIBUTION UTILITY 3,972
SHALL SUPPLY GENERATION FOR THE AUCTION CUSTOMERS WHOSE SERVICE 3,973
IS AFFECTED BY THE TECHNICAL FLAW. THE PRICE FOR THAT GENERATION 3,974
SERVICE SHALL BE THE UNBUNDLED GENERATION SERVICE COMPONENT 3,975
SPECIFIED IN THE UTILITY'S SCHEDULE FILED UNDER SECTION 4928.34 3,976
OF THE REVISED CODE, AND SUCH SCHEDULE SHALL BE IN EFFECT FOR 3,977
THAT TEMPORARY SERVICE. SUCH PRICE SHALL BE INCLUDED IN THE 3,978
CALCULATION OF THE AVERAGE PRICE UNDER DIVISION (E) OF THIS 3,979
SECTION UNTIL SUCH TIME AS A BID IS ACCEPTED AND THE AVERAGE 3,980
PRICE RECALCULATED ACCORDINGLY. IF THE ELECTRIC DISTRIBUTION
UTILITY INCURS A LOSS DUE TO PROVIDING THE TEMPORARY SERVICE AT 3,982
THE PRICE SPECIFIED IN THE SCHEDULE, THE COMMISSION SHALL 3,983
AUTHORIZE THE ELECTRIC DISTRIBUTION UTILITY, THROUGH THE FILING 3,984
OF REVISED DISTRIBUTION SERVICE SCHEDULES UNDER SECTION 4909.18 3,985
OF THE REVISED CODE, TO RECOVER UP TO SUCH AMOUNT OF THE LOSS AS 3,986
THE COMMISSION CONSIDERS REASONABLE UPON A DETERMINATION THAT THE 3,987
UTILITY SUPPLIED THE SERVICE AT THE LEAST COST GIVEN MARKET 3,988
CONDITIONS AT THE TIME.
(H) THE COMMISSION SHALL ADOPT RULES UNDER DIVISION (A) OF 3,991
SECTION 4928.06 OF THE REVISED CODE ENSURING FAIRNESS IN THE 3,992
AUCTION PROCESS AND THE PERFORMANCE OF A WINNING BIDDER, AND 3,993
PROVIDING FOR DEFAULT SERVICE IF A WINNING BIDDER FAILS TO 3,994
PERFORM UNDER THE TERMS AND CONDITIONS APPLICABLE TO ITS 3,995
PROVISION OF SERVICE. 3,996
(I) AN AUCTION CUSTOMER MAY OPT OUT OF AN AUCTION POOL 3,998
UNDER THIS SECTION AT ANY TIME UPON PAYMENT OF ANY APPLICABLE 3,999
SWITCHING FEE, WHICH FEE SHALL BE A NOMINAL AMOUNT BASED ON THE 4,000
WINNING BIDDER'S ADMINISTRATIVE COSTS. THE SWITCHING FEE SHALL 4,001
BE DISCLOSED IN ANY BID SUBMITTED UNDER THIS SECTION. 4,002
(J) COMPETITIVE AUCTIONING UNDER THIS SECTION IS WITHIN 4,004
THE AUTHORITY OF THIS STATE UNDER SECTION 722(g) OF THE "ENERGY 4,006
POLICY ACT OF 1992," 106 STAT. 2776, 16 U.S.C. 824k(g). 4,010
Sec. 4928.45. (A) NOTWITHSTANDING SECTIONS 4933.81 TO 4,012
98
4933.90 OF THE REVISED CODE, THE PUBLIC UTILITIES COMMISSION MAY 4,013
DETERMINE, BY ORDER AND AFTER REASONABLE NOTICE AND OPPORTUNITY 4,014
FOR HEARING, THAT CUSTOMERS THAT ARE NONFIRM ELECTRIC SERVICE 4,015
CUSTOMERS OF ELECTRIC UTILITIES ON THE EFFECTIVE DATE OF THIS 4,016
SECTION WOULD BE ASSISTED BY THE IMPLEMENTATION BY EACH SUCH 4,017
UTILITY OF A SERVICE SCHEDULE THAT COMPLIES WITH DIVISION (C) OF 4,018
THIS SECTION. IN THE ORDER, THE COMMISSION SHALL SPECIFY THE 4,019
PERIOD OF TIME, ENDING NOT LATER THAN DECEMBER 31, 2005, DURING 4,020
WHICH THE SERVICE OFFERING WOULD BE AVAILABLE TO ANY SUCH NONFIRM 4,021
ELECTRIC SERVICE CUSTOMERS OR A GROUP OF SUCH CUSTOMERS. UPON 4,022
THE ISSUANCE OF THE ORDER, ANY SUCH NONFIRM ELECTRIC SERVICE 4,023
CUSTOMER OR A GROUP OF SUCH CUSTOMERS SHALL BE, FOR THE PURPOSES 4,024
OF THIS SECTION, ELIGIBLE CUSTOMERS IN EACH ELECTRIC UTILITY'S 4,025
TRANSMISSION TARIFF SUBJECT TO THE JURISDICTION OF THE FEDERAL 4,026
ENERGY REGULATORY COMMISSION FOR THE PERIOD SPECIFIED IN THE 4,027
ORDER, AND EACH ELECTRIC UTILITY WITH NONFIRM CUSTOMERS SHALL 4,028
FILE A SERVICE SCHEDULE PURSUANT TO SECTION 4909.18 OF THE 4,029
REVISED CODE TO EFFECTUATE THIS SERVICE OFFERING. 4,030
(B) THE SERVICE SCHEDULE AUTHORIZED UNDER DIVISION (A) OF 4,032
THIS SECTION, FOR THE PERIOD ENDING NOT LATER THAN DECEMBER 31, 4,033
2005, AS SPECIFIED IN THE COMMISSION'S ORDER UNDER THAT DIVISION, 4,034
SHALL PROVIDE FOR BOTH OF THE FOLLOWING: 4,035
(1) FOR SERVICE AND BILLING PURPOSES, CONJUNCTIVE METERING 4,037
FOR A GROUP OF CUSTOMERS THAT ARE NONFIRM CUSTOMERS ON THE 4,038
EFFECTIVE DATE OF THIS SECTION; 4,039
(2) DIRECT, COMPARABLE AND NONDISCRIMINATORY ACCESS TO THE 4,041
TRANSMISSION AND DISTRIBUTION SERVICES, CAPACITIES, FUNCTIONS, 4,042
AND FACILITIES OF THE ELECTRIC UTILITY BY ANY CUSTOMER THAT IS A 4,043
NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE OF THIS 4,044
SECTION OR BY A GROUP OF ANY SUCH CUSTOMERS, FOR THE PURPOSE OF 4,045
SECURING FROM A SUPPLIER OR SUPPLIERS OF THE CUSTOMER'S OR 4,046
GROUP'S CHOICE ALL OR A PORTION OF THE CUSTOMER'S OR GROUP'S 4,047
ELECTRIC POWER AND ENERGY REQUIREMENTS IN EXCESS OF ANY 4,048
REQUIREMENTS SUPPLIED BY AN ELECTRIC UTILITY ON A FIRM BASIS. 4,049
99
THE FAILURE OF AN ELECTRIC UTILITY TO FILE SUCH SCHEDULE 4,051
CONSTITUTES INADEQUATE SERVICE UNDER TITLE XLIX OF THE REVISED 4,052
CODE.
(C) THE SERVICE OFFERING AUTHORIZED PURSUANT TO THIS 4,054
SECTION SHALL BE IN ADDITION TO ANY SERVICE OPTIONS OTHERWISE 4,055
AVAILABLE TO A NONFIRM ELECTRIC SERVICE CUSTOMER OR GROUP OF
NONFIRM ELECTRIC SERVICE CUSTOMERS. IF A CUSTOMER THAT IS A 4,056
NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE OF THIS 4,057
SECTION OR A GROUP OF SUCH CUSTOMERS ELECTS TO MEET ALL OR A 4,058
PORTION OF THE CUSTOMER'S OR GROUP'S ELECTRIC POWER AND ENERGY 4,059
REQUIREMENTS IN EXCESS OF ANY REQUIREMENTS SUPPLIED BY AN 4,060
ELECTRIC UTILITY ON A FIRM BASIS, BY PURCHASING ELECTRICITY AND 4,061
RELATED SERVICES FROM A SUPPLIER OR SUPPLIERS OTHER THAN THAT 4,062
ELECTRIC UTILITY, ANY EXISTING SERVICE ARRANGEMENT UNDER SECTION 4,063
4905.31 OF THE REVISED CODE OR ANY EXISTING SCHEDULE UNDER
SECTION 4905.30 OF THE REVISED CODE SHALL BE MODIFIED TO PERMIT 4,064
THIS ELECTION TO OCCUR WITHOUT ECONOMIC PENALTY AND TO FACILITATE 4,065
THE CUSTOMER'S OR GROUP'S ACCESS TO THE ELECTRIC MARKET FOR THE
PURPOSE OF MANAGING SUPPLY AND PRICE VOLATILITY RISKS. 4,066
(D) NOTHING IN DIVISIONS (A) TO (C) OF THIS SECTION 4,068
AFFECTS ANY OBLIGATION OF AN ELECTRIC UTILITY TO CURTAIL OR 4,069
INTERRUPT ELECTRIC TRANSMISSION OR DISTRIBUTION SERVICE TO THE
EXTENT REQUIRED TO PROTECT THE INTERESTS OF FIRM ELECTRIC SERVICE
CUSTOMERS FROM AN INJURY THAT IS OTHERWISE UNAVOIDABLE BUT FOR 4,070
THE CURTAILMENT OR INTERRUPTION. NOTHING IN THOSE DIVISIONS 4,071
SHALL BE CONSTRUED OR APPLIED TO INCREASE RATES AND CHARGES FOR 4,072
FIRM ELECTRIC SERVICE CUSTOMERS INCLUDING RESIDENTIAL FIRM 4,073
ELECTRIC SERVICE CUSTOMERS.
Sec. 4928.51. (A) THERE IS HEREBY ESTABLISHED IN THE 4,075
STATE TREASURY A UNIVERSAL SERVICE FUND, INTO WHICH SHALL BE 4,076
DEPOSITED ALL UNIVERSAL SERVICE REVENUES REMITTED TO THE DIRECTOR 4,077
OF DEVELOPMENT UNDER THIS SECTION, FOR THE EXCLUSIVE PURPOSES OF 4,078
PROVIDING FUNDING FOR THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS 4,079
AND FOR THE CONSUMER EDUCATION PROGRAM AUTHORIZED UNDER SECTION 4,080
100
4928.56 OF THE REVISED CODE, AND PAYING THE ADMINISTRATIVE COSTS 4,081
OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,082
EDUCATION PROGRAM. INTEREST ON THE FUND SHALL BE CREDITED TO THE 4,083
FUND. DISBURSEMENTS FROM THE FUND SHALL BE MADE TO ANY SUPPLIER 4,084
THAT PROVIDES A COMPETITIVE RETAIL ELECTRIC SERVICE TO A CUSTOMER 4,085
WHO IS APPROVED TO RECEIVE ASSISTANCE UNDER A SPECIFIED 4,086
LOW-INCOME CUSTOMER ASSISTANCE PROGRAM AND TO ANY AUTHORIZED 4,087
PROVIDER OF WEATHERIZATION OR ENERGY EFFICIENCY SERVICE TO A 4,088
CUSTOMER APPROVED TO RECEIVE SUCH ASSISTANCE UNDER A SPECIFIED 4,089
LOW-INCOME CUSTOMER ASSISTANCE PROGRAM. 4,090
(B) UNIVERSAL SERVICE REVENUES SHALL INCLUDE ALL OF THE 4,092
FOLLOWING: 4,093
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,095
AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 2000, 4,096
ATTRIBUTABLE TO THE COLLECTION FROM CUSTOMERS OF THE UNIVERSAL 4,098
SERVICE RIDER PRESCRIBED UNDER SECTION 4928.52 OF THE REVISED 4,099
CODE;
(2) REVENUES REMITTED TO THE DIRECTOR THAT HAVE BEEN 4,101
COLLECTED BY AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 4,102
2000, AS CUSTOMER PAYMENTS UNDER THE PERCENTAGE OF INCOME PAYMENT 4,104
PLAN PROGRAM, INCLUDING REVENUES REMITTED UNDER DIVISION (C) OF 4,105
THIS SECTION;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,107
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,108
COOPERATIVE IN THIS STATE NOT EARLIER THAN JULY 1, 2000, UPON THE 4,110
UTILITY'S OR COOPERATIVE'S DECISION TO PARTICIPATE IN THE 4,111
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS.
(C) BEGINNING JULY 1, 2000, AN ELECTRIC DISTRIBUTION 4,113
UTILITY SHALL TRANSFER TO THE DIRECTOR THE RIGHT TO COLLECT ALL 4,115
ARREARAGE PAYMENTS OF A CUSTOMER FOR PERCENTAGE OF INCOME PAYMENT 4,116
PLAN PROGRAM DEBT OWED TO THE UTILITY ON THE DAY BEFORE THAT DATE 4,117
OR RETAIN THE RIGHT TO COLLECT THAT DEBT BUT REMIT TO THE 4,118
DIRECTOR ALL PROGRAM REVENUES RECEIVED BY THE UTILITY FOR THAT 4,119
CUSTOMER.
101
(D) THE PUBLIC UTILITIES COMMISSION SHALL COMPLETE AN 4,121
AUDIT OF EACH ELECTRIC UTILITY BY JULY 1, 2000, FOR THE PURPOSE 4,122
OF ESTABLISHING A BASELINE FOR THE PERCENTAGE OF INCOME PAYMENT 4,123
PLAN PROGRAM COMPONENT OF THE LOW-INCOME ASSISTANCE PROGRAMS. 4,124
Sec. 4928.52. (A) BEGINNING JULY 1,2000, THE UNIVERSAL 4,126
SERVICE RIDER SHALL REPLACE THE PERCENTAGE OF INCOME PAYMENT PLAN 4,128
RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION AND ANY 4,130
AMOUNT IN THE RATES OF AN ELECTRIC UTILITY FOR THE FUNDING OF 4,131
LOW-INCOME ENERGY EFFICIENCY PROGRAMS. THE UNIVERSAL SERVICE
RIDER SHALL BE A RIDER ON RETAIL ELECTRIC DISTRIBUTION SERVICE 4,134
RATES AS SUCH RATES ARE DETERMINED BY THE PUBLIC UTILITIES 4,135
COMMISSION PURSUANT TO THIS CHAPTER. THE UNIVERSAL SERVICE RIDER 4,136
FOR THE FIRST FIVE YEARS AFTER THE STARTING DATE OF COMPETITIVE 4,137
RETAIL ELECTRIC SERVICE SHALL BE THE SUM OF ALL OF THE FOLLOWING: 4,138
(1) THE LEVEL OF THE PERCENTAGE OF INCOME PAYMENT PLAN 4,140
PROGRAM RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION; 4,141
(2) AN AMOUNT EQUAL TO THE LEVEL OF FUNDING FOR LOW-INCOME 4,143
CUSTOMER ENERGY EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC 4,144
UTILITY RATES IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION; 4,145
(3) ANY ADDITIONAL AMOUNT NECESSARY AND SUFFICIENT TO FUND 4,147
THROUGH THE UNIVERSAL SERVICE RIDER THE ADMINISTRATIVE COSTS OF 4,148
THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,149
EDUCATION PROGRAM CREATED IN SECTION 4928.56 OF THE REVISED CODE. 4,150
(B) IF, DURING OR AFTER THE FIVE-YEAR PERIOD SPECIFIED IN 4,152
DIVISION (A) OF THIS SECTION, THE DIRECTOR OF DEVELOPMENT, AFTER 4,154
CONSULTATION WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED 4,155
UNDER SECTION 4928.58 OF THE REVISED CODE, DETERMINES THAT 4,156
REVENUES IN THE UNIVERSAL SERVICE FUND AND REVENUES FROM FEDERAL 4,158
OR OTHER SOURCES OF FUNDING FOR THOSE PROGRAMS, INCLUDING GENERAL 4,160
REVENUE FUND APPROPRIATIONS FOR THE OHIO ENERGY CREDIT PROGRAM, 4,161
WILL BE INSUFFICIENT TO COVER THE ADMINISTRATIVE COSTS OF THE 4,162
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER
EDUCATION PROGRAM AND PROVIDE ADEQUATE FUNDING FOR THOSE 4,163
PROGRAMS, THE DIRECTOR SHALL FILE A PETITION WITH THE COMMISSION 4,164
102
FOR AN INCREASE IN THE UNIVERSAL SERVICE RIDER. THE COMMISSION, 4,165
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, MAY ADJUST 4,166
THE UNIVERSAL SERVICE RIDER BY THE MINIMUM AMOUNT NECESSARY TO 4,167
PROVIDE THE ADDITIONAL REVENUES. THE COMMISSION SHALL NOT 4,168
DECREASE THE UNIVERSAL SERVICE RIDER WITHOUT THE APPROVAL OF THE 4,169
DIRECTOR, AFTER CONSULTATION BY THE DIRECTOR WITH THE ADVISORY 4,170
BOARD.
(C) THE UNIVERSAL SERVICE RIDER ESTABLISHED UNDER DIVISION 4,172
(A) OR (B) OF THIS SECTION SHALL BE SET IN SUCH A MANNER SO AS 4,174
NOT TO SHIFT AMONG THE CUSTOMER CLASSES OF ELECTRIC DISTRIBUTION 4,175
UTILITIES THE COSTS OF FUNDING LOW-INCOME CUSTOMER ASSISTANCE 4,177
PROGRAMS.
Sec. 4928.53. (A) BEGINNING JULY 1, 2000, THE DIRECTOR OF 4,180
DEVELOPMENT IS HEREBY AUTHORIZED TO ADMINISTER THE LOW-INCOME 4,181
CUSTOMER ASSISTANCE PROGRAMS. FOR THAT PURPOSE, THE TAX 4,182
COMMISSIONER AND THE PUBLIC UTILITIES COMMISSION SHALL COOPERATE 4,183
WITH AND PROVIDE SUCH ASSISTANCE AS THE DIRECTOR REQUIRES FOR 4,184
ADMINISTRATION OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. 4,185
THE DIRECTOR SHALL CONSOLIDATE THE ADMINISTRATION OF AND REDESIGN 4,187
AND COORDINATE THE OPERATIONS OF THOSE PROGRAMS WITHIN THE
DEPARTMENT TO PROVIDE, TO THE MAXIMUM EXTENT POSSIBLE, FOR 4,189
EFFICIENT PROGRAM ADMINISTRATION AND A ONE-STOP APPLICATION AND 4,190
ELIGIBILITY DETERMINATION PROCESS AT THE LOCAL LEVEL FOR 4,191
CONSUMERS.
(B)(1) NOT LATER THAN MARCH 1, 2000, THE DIRECTOR, IN 4,193
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, SHALL ADOPT 4,195
RULES TO CARRY OUT SECTIONS 4928.51 TO 4928.58 OF THE REVISED 4,197
CODE AND ENSURE THE EFFECTIVE AND EFFICIENT ADMINISTRATION AND 4,199
OPERATION OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE 4,200
RULES SHALL TAKE EFFECT ON THE JULY 1, 2000. 4,201
(2) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,204
DIVISION FOR THE OHIO ENERGY CREDIT PROGRAM SHALL BE SUBJECT TO 4,205
SUCH RULE-MAKING AUTHORITY AS IS CONFERRED ON THE DIRECTOR BY 4,206
SECTIONS 5117.01 TO 5117.12 OF THE REVISED CODE, AS AMENDED BY 4,207
103
SUB. S.B. NO. 3 OF THE 123rd GENERAL ASSEMBLY, EXCEPT THAT RULES 4,209
INITIALLY ADOPTED BY THE DIRECTOR FOR THE OHIO ENERGY CREDIT 4,210
PROGRAM SHALL INCORPORATE THE SUBSTANCE OF THOSE SECTIONS AS THEY 4,211
EXIST ON THE EFFECTIVE DATE OF THIS SECTION. 4,212
(3) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,214
DIVISION FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL 4,215
INCLUDE AUTHORITY TO ADOPT RULES PRESCRIBING CRITERIA FOR 4,216
CUSTOMER ELIGIBILITY AND POLICIES REGARDING PAYMENT AND CREDITING 4,217
ARRANGEMENTS AND RESPONSIBILITIES, PROCEDURES FOR VERIFYING 4,218
CUSTOMER ELIGIBILITY, PROCEDURES FOR DISBURSING PUBLIC FUNDS TO 4,219
SUPPLIERS AND OTHERWISE ADMINISTERING FUNDS UNDER THE DIRECTOR'S 4,220
JURISDICTION, AND REQUIREMENTS AS TO TIMELY REMITTANCES OF 4,221
REVENUES DESCRIBED IN DIVISION (B) OF SECTION 4928.51 OF THE 4,222
REVISED CODE. THE DIRECTOR'S AUTHORITY IN DIVISION (B)(3) OF 4,223
THIS SECTION EXCLUDES AUTHORITY TO PRESCRIBE SERVICE 4,226
DISCONNECTION AND CUSTOMER BILLING POLICIES AND PROCEDURES AND TO 4,227
ADDRESS COMPLAINTS AGAINST SUPPLIERS UNDER THE PERCENTAGE OF 4,228
PAYMENT PLAN PROGRAM, WHICH EXCLUDED AUTHORITY SHALL BE EXERCISED 4,229
BY THE PUBLIC UTILITIES COMMISSION, IN COORDINATION WITH THE 4,230
DIRECTOR. RULES INITIALLY ADOPTED BY THE DIRECTOR FOR THE 4,231
PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL INCORPORATE THE 4,232
ELIGIBILITY CRITERIA AND PAYMENT ARRANGEMENT AND RESPONSIBILITY 4,233
POLICIES SET FORTH IN RULE 4901:1-18-04(B) OF THE OHIO 4,235
ADMINISTRATIVE CODE IN EFFECT ON THE EFFECTIVE DATE OF THIS 4,236
SECTION.
Sec. 4928.54. BEGINNING ON THE STARTING DATE OF 4,238
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,239
MAY AGGREGATE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM CUSTOMERS 4,240
FOR THE PURPOSE OF COMPETITIVELY AUCTIONING THE SUPPLY OF 4,241
COMPETITIVE RETAIL ELECTRIC GENERATION SERVICE TO BIDDERS 4,242
CERTIFIED UNDER SECTION 4928.08 OF THE REVISED CODE AND FURTHER
QUALIFIED UNDER ELIGIBILITY CRITERIA THE DIRECTOR PRESCRIBES BY 4,244
RULE UNDER DIVISION (B) OF SECTION 4928.53 OF THE REVISED CODE 4,245
AFTER CONSULTATION WITH THE COMMISSION AND ELECTRIC LIGHT 4,246
104
COMPANIES REGARDING ANY SUCH RULE. THE OBJECTIVES OF THE AUCTION 4,247
SHALL BE TO PROVIDE RELIABLE RETAIL ELECTRIC GENERATION SERVICE 4,248
TO CUSTOMERS, BASED ON SELECTION CRITERIA THAT THE WINNING BID 4,249
PROVIDE THE LOWEST COST AND BEST VALUE TO CUSTOMERS. THE RULES
ADOPTED BY THE DIRECTOR UNDER DIVISION (B) OF SECTION 4928.53 OF 4,251
THE REVISED CODE SHALL ENSURE A FAIR AND UNBIASED AUCTION PROCESS 4,252
AND THE PERFORMANCE OF ANY WINNING BIDDER.
Sec. 4928.55. THE DIRECTOR OF DEVELOPMENT SHALL ESTABLISH 4,255
AN ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM TARGETED TO 4,256
HIGH-COST, HIGH-VOLUME USE STRUCTURES OCCUPIED BY CUSTOMERS 4,258
ELIGIBLE FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM, WITH 4,259
THE GOAL TO REDUCING THE ENERGY BILLS OF THE OCCUPANTS. 4,260
ACCEPTANCE OF ENERGY EFFICIENCY AND WEATHERIZATION SERVICES 4,261
PROVIDED BY THE PROGRAM SHALL BE A CONDITION FOR THE ELIGIBILITY 4,262
OF ANY SUCH CUSTOMER TO PARTICIPATE IN THE PERCENTAGE OF INCOME 4,263
PAYMENT PLAN PROGRAM. ANY DIFFERENCE BETWEEN UNIVERSAL SERVICE 4,264
FUND REVENUES UNDER SECTION 4928.51 OF THE REVISED CODE AND ANY
SAVINGS IN PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM COSTS AS A 4,266
RESULT OF COMPETITIVE AUCTIONING UNDER SECTION 4928.54 OF THE 4,267
REVISED CODE SHALL BE REINVESTED IN THE TARGETED ENERGY 4,268
EFFICIENCY AND WEATHERIZATION PROGRAM.
Sec. 4928.56. THE DIRECTOR OF DEVELOPMENT MAY ADOPT RULES 4,270
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE ESTABLISHING 4,272
AN EDUCATION PROGRAM FOR CONSUMERS ELIGIBLE TO PARTICIPATE IN THE 4,273
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE EDUCATION PROGRAM 4,274
SHALL PROVIDE INFORMATION TO CONSUMERS REGARDING ENERGY 4,276
EFFICIENCY AND ENERGY CONSERVATION.
Sec. 4928.57. ON AND AFTER THE STARTING DATE OF 4,278
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,279
SHALL PROVIDE A REPORT EVERY TWO YEARS UNTIL 2008 TO THE STANDING 4,280
COMMITTEES OF THE GENERAL ASSEMBLY THAT DEAL WITH PUBLIC UTILITY 4,282
MATTERS, REGARDING THE EFFECTIVENESS OF THE LOW-INCOME CUSTOMER
ASSISTANCE PROGRAMS AND THE CONSUMER EDUCATION PROGRAM, AND THE 4,284
EFFECTIVENESS OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,285
105
CREATED UNDER SECTIONS 4928.61 TO 4928.63 OF THE REVISED CODE. 4,286
Sec. 4928.58. (A) THERE IS HEREBY CREATED THE PUBLIC 4,288
BENEFITS ADVISORY BOARD, WHICH HAS THE PURPOSE OF ENSURING THAT 4,289
ENERGY SERVICES BE PROVIDED TO LOW-INCOME CONSUMERS IN THIS STATE 4,291
IN AN AFFORDABLE MANNER CONSISTENT WITH THE POLICY SPECIFIED IN 4,292
SECTION 4928.02 OF THE REVISED CODE. THE ADVISORY BOARD SHALL 4,293
CONSIST OF TWENTY-ONE MEMBERS AS FOLLOWS: THE DIRECTOR OF 4,294
DEVELOPMENT, THE CHAIRPERSON OF THE PUBLIC UTILITIES COMMISSION, 4,296
THE CONSUMERS' COUNSEL, AND THE DIRECTOR OF THE AIR QUALITY
DEVELOPMENT AUTHORITY, EACH SERVING EX OFFICIO AND REPRESENTED BY 4,298
A DESIGNEE AT THE OFFICIAL'S DISCRETION; TWO MEMBERS OF THE HOUSE 4,299
OF REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE OF 4,300
REPRESENTATIVES, NEITHER OF THE SAME POLITICAL PARTY, AND TWO 4,301
MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE SENATE, 4,302
NEITHER OF THE SAME POLITICAL PARTY; AND THIRTEEN MEMBERS
APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE 4,303
SENATE, CONSISTING OF ONE REPRESENTATIVE OF SUPPLIERS OF 4,304
COMPETITIVE RETAIL ELECTRIC SERVICE; ONE REPRESENTATIVE OF THE 4,305
RESIDENTIAL CLASS OF ELECTRIC UTILITY CUSTOMERS; ONE 4,306
REPRESENTATIVE OF THE INDUSTRIAL CLASS OF ELECTRIC UTILITY 4,307
CUSTOMERS; ONE REPRESENTATIVE OF THE COMMERCIAL CLASS OF ELECTRIC 4,309
UTILITY CUSTOMERS; ONE REPRESENTATIVE OF AGRICULTURAL OR RURAL
CUSTOMERS OF AN ELECTRIC UTILITY; TWO CUSTOMERS RECEIVING 4,310
ASSISTANCE UNDER ONE OR MORE OF THE LOW-INCOME CUSTOMER 4,311
ASSISTANCE PROGRAMS, TO REPRESENT CUSTOMERS ELIGIBLE FOR ANY SUCH 4,312
ASSISTANCE, INCLUDING SENIOR CITIZENS; ONE REPRESENTATIVE OF THE 4,313
GENERAL PUBLIC; ONE REPRESENTATIVE OF LOCAL INTAKE AGENCIES; ONE 4,315
REPRESENTATIVE OF A COMMUNITY-BASED ORGANIZATION SERVING 4,316
LOW-INCOME CUSTOMERS; ONE REPRESENTATIVE OF ENVIRONMENTAL 4,317
PROTECTION INTERESTS; ONE REPRESENTATIVE OF LENDING INSTITUTIONS; 4,319
AND ONE PERSON CONSIDERED AN EXPERT IN ENERGY EFFICIENCY OR 4,320
RENEWABLES TECHNOLOGY. INITIAL APPOINTMENTS SHALL BE MADE NOT 4,321
LATER THAN NOVEMBER 1, 1999.
(B) INITIAL TERMS OF SIX OF THE APPOINTED MEMBERS SHALL 4,323
106
END ON JUNE 30, 2003, AND INITIAL TERMS OF THE REMAINING SEVEN 4,325
APPOINTED MEMBERS SHALL END ON JUNE 30, 2004. THEREAFTER, TERMS 4,326
OF APPOINTED MEMBERS SHALL BE FOR THREE YEARS, WITH EACH TERM 4,327
ENDING ON THE SAME DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. 4,328
EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF THE MEMBER'S 4,330
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 4,331
APPOINTED. MEMBERS MAY BE REAPPOINTED. 4,332
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,334
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,335
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,336
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,337
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,338
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,339
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,340
HAS ELAPSED, WHICHEVER OCCURS FIRST.
(C) BOARD MEMBERS SHALL BE REIMBURSED FOR THEIR ACTUAL AND 4,342
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF BOARD DUTIES. 4,343
SUCH REIMBURSEMENTS CONSTITUTE, AS APPLICABLE, ADMINISTRATIVE 4,344
COSTS OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS FOR THE 4,345
PURPOSE OF DIVISION (A) OF SECTION 4928.51 OF THE REVISED CODE OR 4,346
ADMINISTRATIVE COSTS OF THE ENERGY EFFICIENCY REVOLVING LOAN 4,347
PROGRAM FOR THE PURPOSE OF DIVISION (A) OF SECTION 4528.61 OF THE 4,348
REVISED CODE.
(D) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,350
AMONG ITS MEMBERS. ONLY BOARD MEMBERS APPOINTED BY THE GOVERNOR 4,351
WITH THE ADVICE AND CONSENT OF THE SENATE SHALL BE VOTING MEMBERS 4,352
OF THE BOARD; EACH SHALL HAVE ONE VOTE IN ALL DELIBERATIONS OF 4,353
THE BOARD. A MAJORITY OF THE VOTING MEMBERS CONSTITUTE A QUORUM. 4,354
(E) THE DUTIES OF THE ADVISORY BOARD SHALL BE AS FOLLOWS: 4,356
(1) ADVISE THE DIRECTOR IN THE ADMINISTRATION OF THE 4,359
UNIVERSAL SERVICE FUND AND THE LOW-INCOME CUSTOMER ASSISTANCE 4,360
PROGRAMS AND ADVISE THE DIRECTOR ON THE DIRECTOR'S RECOMMENDATION 4,361
TO THE COMMISSION REGARDING THE APPROPRIATE LEVEL OF THE 4,362
UNIVERSAL SERVICE RIDER;
107
(2) ADVISE THE DIRECTOR ON THE ADMINISTRATION OF THE 4,364
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM AND THE ENERGY 4,365
EFFICIENCY REVOLVING LOAN PROGRAM FUND UNDER SECTIONS 4928.61 TO 4,366
4928.63 OF THE REVISED CODE. 4,367
(F) THE ADVISORY BOARD IS NOT AN AGENCY, AS DEFINED IN 4,369
SECTION 101.82 OF THE REVISED CODE, FOR PURPOSES OF DIVISIONS (A) 4,370
AND (B) OF SECTION 101.84 OF THE REVISED CODE. 4,371
Sec. 4928.61. (A) THERE IS HEREBY ESTABLISHED IN THE 4,373
STATE TREASURY AN ENERGY EFFICIENCY REVOLVING LOAN FUND, INTO 4,374
WHICH SHALL BE DEPOSITED ALL ENERGY EFFICIENCY REVENUES REMITTED 4,375
TO THE DIRECTOR OF DEVELOPMENT UNDER DIVISION (B) OF THIS 4,376
SECTION, FOR THE EXCLUSIVE PURPOSES OF FUNDING THE ENERGY 4,377
EFFICIENCY REVOLVING LOAN PROGRAM CREATED UNDER SECTION 4928.62 4,379
OF THE REVISED CODE AND PAYING THE PROGRAM'S ADMINISTRATIVE 4,380
COSTS. INTEREST ON THE FUND SHALL BE CREDITED TO THE FUND. 4,381
(B) ENERGY EFFICIENCY REVENUES SHALL INCLUDE ALL OF THE 4,383
FOLLOWING: 4,384
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,386
EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE OF A TEMPORARY 4,387
RIDER ON RETAIL ELECTRIC DISTRIBUTION SERVICE RATES AS SUCH RATES 4,388
ARE DETERMINED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO 4,389
THIS CHAPTER. THE RIDER SHALL BE A UNIFORM AMOUNT STATEWIDE, 4,390
DETERMINED BY THE DIRECTOR OF DEVELOPMENT, AFTER CONSULTATION 4,391
WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED BY SECTION 4,392
4928.58 OF THE REVISED CODE. THE AMOUNT SHALL BE DETERMINED BY 4,393
DIVIDING AN AGGREGATE REVENUE TARGET FOR A GIVEN YEAR AS 4,394
DETERMINED BY THE DIRECTOR, AFTER CONSULTATION WITH THE ADVISORY
BOARD, BY THE NUMBER OF CUSTOMERS OF ELECTRIC DISTRIBUTION 4,395
UTILITIES IN THIS STATE IN THE PRIOR YEAR. SUCH AGGREGATE 4,396
REVENUE TARGET SHALL NOT EXCEED MORE THAN FIFTEEN MILLION DOLLARS 4,397
IN ANY YEAR THROUGH 2005 AND SHALL NOT EXCEED MORE THAN FIVE 4,398
MILLION DOLLARS IN ANY YEAR AFTER 2005. THE RIDER SHALL BE
IMPOSED BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,400
ELECTRIC SERVICE AND SHALL TERMINATE AT THE END OF TEN YEARS 4,401
108
FOLLOWING THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY
REVOLVING LOAN FUND, INCLUDING INTEREST, REACHES ONE HUNDRED 4,402
MILLION DOLLARS, WHICHEVER IS FIRST. 4,403
(2) REVENUES FROM ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,405
LOAN REPAYMENTS AND PAYMENTS FROM ENERGY EFFICIENCY REVOLVING 4,406
LOAN PROGRAM LOAN COLLECTIONS PURSUANT TO SECTION 4928.62 OF THE 4,407
REVISED CODE;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,409
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,410
COOPERATIVE IN THIS STATE NOT EARLIER THAN THE STARTING DATE OF 4,411
COMPETITIVE RETAIL ELECTRIC SERVICE UPON THE UTILITY'S OR 4,412
COOPERATIVE'S DECISION TO PARTICIPATE IN THE ENERGY EFFICIENCY 4,413
REVOLVING LOAN PROGRAM.
(C)(1) EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE 4,415
SHALL REMIT TO THE DIRECTOR ON A QUARTERLY BASIS THE REVENUES 4,417
DESCRIBED IN DIVISIONS (B)(1) AND (2) OF THIS SECTION. SUCH 4,418
REMITTANCES SHALL BEGIN WITH THE FIRST QUARTER FOLLOWING THE 4,419
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. 4,420
(2) EACH PARTICIPATING ELECTRIC COOPERATIVE AND 4,422
PARTICIPATING MUNICIPAL ELECTRIC UTILITY SHALL REMIT TO THE 4,423
DIRECTOR ON A QUARTERLY BASIS THE REVENUES DESCRIBED IN DIVISION 4,424
(B)(3) OF THIS SECTION. SUCH REMITTANCES SHALL BEGIN WITH THE 4,425
FIRST QUARTER FOLLOWING THE PARTICIPATING COOPERATIVE'S OR 4,426
UTILITY'S DECISION TO PARTICIPATE. 4,427
(3) ALL REMITTANCES UNDER DIVISIONS (C)(1) AND (2) OF THIS 4,429
SECTION SHALL CONTINUE ONLY UNTIL THE END OF TEN YEARS FOLLOWING 4,430
THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY REVOLVING LOAN 4,432
FUND, INCLUDING INTEREST, REACHES ONE HUNDRED MILLION DOLLARS, 4,433
WHICHEVER IS FIRST.
Sec. 4928.62. (A) BEGINNING ON THE STARTING DATE OF 4,435
COMPETITIVE RETAIL ELECTRIC SERVICE, THERE IS HEREBY CREATED THE 4,436
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM, WHICH SHALL BE 4,437
ADMINISTERED BY THE DIRECTOR OF DEVELOPMENT. UNDER THE PROGRAM, 4,438
THE DIRECTOR MAY AUTHORIZE THE USE OF MONEYS IN THE ENERGY 4,439
109
EFFICIENCY REVOLVING LOAN FUND FOR FINANCIAL ASSISTANCE FOR 4,440
PROJECTS IN THIS STATE. TO THE EXTENT FEASIBLE GIVEN APPROVED 4,441
APPLICATIONS FOR ASSISTANCE, THE ASSISTANCE SHALL BE DISTRIBUTED 4,442
AMONG THE CERTIFIED TERRITORIES OF ELECTRIC DISTRIBUTION
UTILITIES AND PARTICIPATING ELECTRIC COOPERATIVES, AND AMONG THE 4,443
SERVICE AREAS OF PARTICIPATING MUNICIPAL ELECTRIC UTILITIES, IN 4,444
AMOUNTS PROPORTIONATE TO THE REMITTANCES OF EACH UTILITY AND 4,445
COOPERATIVE UNDER DIVISIONS (B)(1) AND (3) OF SECTION 4928.61 OF 4,447
THE REVISED CODE. THE ASSISTANCE SHALL BE MADE OR PROVIDED
THROUGH APPROVED LENDING INSTITUTIONS IN THE FORM OF LOANS AT 4,448
BELOW MARKET RATES, LOAN GUARANTEES FOR SUCH LOANS, AND LINKED 4,449
DEPOSITS FOR SUCH LOANS. THE DIRECTOR SHALL NOT AUTHORIZE 4,451
FINANCIAL ASSISTANCE UNDER THE PROGRAM UNLESS THE DIRECTOR FIRST 4,452
DETERMINES ALL OF THE FOLLOWING:
(1) THE PROJECT WILL INCLUDE AN INVESTMENT IN PRODUCTS, 4,454
TECHNOLOGIES, OR SERVICES, INCLUDING ENERGY EFFICIENCY FOR 4,455
LOW-INCOME HOUSING, FOR RESIDENTIAL, SMALL COMMERCIAL AND SMALL 4,456
INDUSTRIAL BUSINESS, LOCAL GOVERNMENT, EDUCATIONAL INSTITUTION, 4,457
NONPROFIT ENTITY, OR AGRICULTURAL CUSTOMERS OF AN ELECTRIC 4,458
DISTRIBUTION UTILITY IN THIS STATE OR A PARTICIPATING MUNICIPAL 4,459
ELECTRIC UTILITY OR ELECTRIC COOPERATIVE IN THIS STATE. 4,460
(2) THE PROJECT WILL IMPROVE ENERGY EFFICIENCY IN A 4,462
COST-EFFICIENT MANNER BY USING BOTH THE MOST APPROPRIATE 4,463
NATIONAL, FEDERAL, OR OTHER STANDARDS FOR PRODUCTS AS DETERMINED 4,464
BY THE DIRECTOR, AND THE BEST PRACTICES FOR USE OF TECHNOLOGY, 4,465
PRODUCTS, OR SERVICES IN THE CONTEXT OF THE TOTAL FACILITY OR 4,466
BUILDING.
(3) THE PROJECT WILL BENEFIT THE ECONOMIC AND 4,468
ENVIRONMENTAL WELFARE OF THE CITIZENS OF THIS STATE. 4,469
(4) THE RECEIPT OF FINANCIAL ASSISTANCE IS A MAJOR FACTOR 4,471
IN THE APPLICANT'S DECISION TO PROCEED WITH OR INVEST IN THE 4,472
PROJECT.
(B) IN CARRYING OUT SECTIONS 4928.61 TO 4928.63 OF THE 4,474
REVISED CODE, THE DIRECTOR MAY DO ALL OF THE FOLLOWING FOR THE 4,476
110
PURPOSE OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM: 4,477
(1) ACQUIRE IN THE NAME OF THE DIRECTOR ANY PROPERTY OF 4,479
ANY KIND OR CHARACTER IN ACCORDANCE WITH THIS SECTION, BY 4,480
PURCHASE, PURCHASE AT FORECLOSURE, OR EXCHANGE, ON SUCH TERMS AND 4,481
IN SUCH MANNER AS THE DIRECTOR CONSIDERS PROPER; 4,482
(2) MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS 4,484
NECESSARY OR INCIDENTAL TO THE PERFORMANCE OF THE DIRECTOR'S 4,485
DUTIES AND THE EXERCISE OF THE DIRECTOR'S POWERS UNDER THOSE 4,486
SECTIONS;
(3) EMPLOY OR ENTER INTO CONTRACTS WITH FINANCIAL 4,488
CONSULTANTS, MARKETING CONSULTANTS, CONSULTING ENGINEERS, 4,489
ARCHITECTS, MANAGERS, CONSTRUCTION EXPERTS, ATTORNEYS, TECHNICAL 4,490
MONITORS, ENERGY EVALUATORS, OR OTHER EMPLOYEES OR AGENTS AS THE 4,491
DIRECTOR CONSIDERS NECESSARY, AND SHALL FIX THEIR COMPENSATION; 4,492
(4) ADOPT RULES PRESCRIBING THE APPLICATION PROCEDURES FOR 4,494
FINANCIAL ASSISTANCE UNDER THE PROGRAM; THE TERMS AND CONDITIONS 4,495
OF ANY LOANS, LOAN GUARANTEES, LINKED DEPOSITS, AND CONTRACTS; 4,496
CRITERIA PERTAINING TO THE ELIGIBILITY OF PARTICIPATING LENDING 4,497
INSTITUTIONS; AND ANY OTHER MATTERS NECESSARY FOR THE 4,499
IMPLEMENTATION OF THE PROGRAM;
(5) DO ALL THINGS NECESSARY AND APPROPRIATE FOR THE 4,501
OPERATION OF THE PROGRAM. 4,502
(C) FINANCIAL STATEMENTS, FINANCIAL DATA, AND TRADE 4,504
SECRETS SUBMITTED TO OR RECEIVED BY THE DIRECTOR FROM AN 4,505
APPLICANT OR RECIPIENT OF FINANCIAL ASSISTANCE UNDER SECTIONS 4,506
4928.61 TO 4928.63 OF THE REVISED CODE, OR ANY INFORMATION TAKEN 4,507
FROM THOSE STATEMENTS, DATA, OR TRADE SECRETS FOR ANY PURPOSE, 4,508
ARE NOT PUBLIC RECORDS FOR THE PURPOSE OF SECTION 149.43 OF THE 4,509
REVISED CODE.
Sec. 4928.63. THE DIRECTOR OF DEVELOPMENT AND THE PUBLIC 4,511
BENEFITS ADVISORY BOARD HAVE THE POWERS AND DUTIES PROVIDED IN 4,513
SECTIONS 4928.61 AND 4928.62 OF THE REVISED CODE, IN ORDER TO 4,514
PROMOTE THE WELFARE OF THE PEOPLE OF THIS STATE, TO STABILIZE THE
ECONOMY, TO ASSIST IN THE IMPROVEMENT AND DEVELOPMENT WITHIN THIS 4,515
111
STATE OF NOT-FOR-PROFIT ENTITY, INDUSTRIAL, COMMERCIAL, 4,516
DISTRIBUTION, RESIDENTIAL, AND RESEARCH BUILDINGS AND ACTIVITIES 4,517
REQUIRED FOR THE PEOPLE OF THIS STATE, TO IMPROVE THE ECONOMIC 4,518
WELFARE OF THE PEOPLE OF THIS STATE, AND ALSO TO ASSIST IN THE 4,519
IMPROVEMENT OF AIR, WATER, OR THERMAL POLLUTION CONTROL 4,520
FACILITIES AND SOLID WASTE DISPOSAL FACILITIES. IT IS HEREBY 4,521
DETERMINED THAT THE ACCOMPLISHMENT OF THOSE PURPOSES IS ESSENTIAL 4,522
SO THAT THE PEOPLE OF THIS STATE MAY MAINTAIN THEIR PRESENT HIGH 4,523
STANDARDS IN COMPARISON WITH THE PEOPLE OF OTHER STATES AND SO 4,524
THAT OPPORTUNITIES FOR IMPROVING THE ECONOMIC WELFARE OF THE 4,525
PEOPLE OF THIS STATE, FOR IMPROVING THE HOUSING OF RESIDENTS OF 4,526
THIS STATE, AND FOR FAVORABLE MARKETS FOR THE PRODUCTS OF THIS 4,527
STATE'S NATURAL RESOURCES, AGRICULTURE, AND MANUFACTURING SHALL 4,528
BE IMPROVED; AND THAT IT IS NECESSARY FOR THIS STATE TO ESTABLISH 4,529
THE PROGRAM AUTHORIZED PURSUANT TO SECTIONS 4928.61 AND 4928.62 4,530
OF THE REVISED CODE, TO ESTABLISH THE ENERGY EFFICIENCY REVOLVING 4,531
LOAN PROGRAM AND PROGRAM FUND AND THE ENERGY EFFICIENCY REVOLVING 4,532
LOAN PROGRAM ADVISORY BOARD, AND TO VEST THE DIRECTOR AND THE 4,533
BOARD WITH THE POWERS AND DUTIES PROVIDED IN SECTIONS 4928.61 AND 4,534
4928.62 OF THE REVISED CODE.
Sec. 4933.33. Annually, each electric light DISTRIBUTION 4,543
company AS DEFINED IN SECTION 5727.80 OF THE REVISED CODE shall 4,544
cause to appear on each customer bill, or shall distribute to 4,545
each of its customers, the following statement: 4,546
"Under state law, the amount you are being billed includes: 4,548
(1) Gross receipts KILOWATT-HOUR taxes that have been in 4,550
effect since 1969 2001 and are currently at $........%. (The 4,553
current total percentage DOLLAR figure of the total gross 4,554
receipts KILOWATT-HOUR taxes levied in Chapter 5727. BY SECTION 4,556
5727.81 of the Revised Code and any other section of law shall be 4,558
placed in the blank); and
(2) Assessments to assist in the support of the operations 4,560
of the PUCO and the office of the consumers' counsel that have 4,561
been in effect since 1912 and 1977, respectively." 4,562
112
Nothing in this section shall be construed to mean either 4,564
that an electric light DISTRIBUTION company operated not for 4,565
profit or one that is owned or operated by a municipal 4,567
corporation is subject to this section or that an electric light 4,568
company subject to this section may not cause such appearance or 4,569
distribute such statement on a more frequent basis. 4,570
Sec. 4933.81. As used in sections 4933.81 to 4933.90 of 4,579
the Revised Code: 4,580
(A) "Electric supplier" means any electric light company 4,582
as defined in section 4905.03 of the Revised Code, including 4,583
electric light companies organized as nonprofit corporations, but 4,584
not including a municipal corporation CORPORATIONS or other unit 4,586
UNITS of local government that provides PROVIDE electric service. 4,587
(B) "Adequate facilities" means distribution lines or 4,589
facilities having sufficient capacity to meet the maximum 4,590
estimated electric service requirements of its existing customers 4,591
and of any new customer occurring during the year following the 4,592
commencement of permanent electric service, and to assure all 4,593
such customers of reasonable continuity and quality of service. 4,594
Distribution facilities and lines of an electric supplier shall 4,595
be considered "adequate facilities" if such supplier offers to 4,596
undertake to make its distribution facilities and lines meet such 4,597
service requirements and can, in the determination of the public 4,598
utilities commission, CAN do so within a reasonable time. 4,599
(C) "Distribution line" means any electric line having a 4,601
design voltage below thirty-five thousand volts phase to phase 4,602
which THAT is being or has been used primarily to provide 4,603
electric service directly to electric load centers by the owner 4,604
of such line. 4,605
(D) "Existing distribution line" means any distribution 4,607
line of an electric supplier which was in existence on January 1, 4,608
1977, or under constructon CONSTRUCTION on such THAT date. 4,610
(E) "Electric load center" means all the 4,612
electric-consuming facilities of any type or character owned, 4,613
113
occupied, controlled, or used by a person at a single location, 4,614
which facilities have been, are, or will be connected to and 4,615
served at a metered point of delivery and to which electric 4,616
service has been, is, or will be rendered. 4,617
(F) "Electric service" means retail electric service 4,619
furnished to an electric load center for ultimate consumption and 4,620
does not include, BUT EXCLUDES furnishing electric power or 4,622
energy at wholesale for resale. IN THE CASE OF A FOR-PROFIT 4,623
ELECTRIC SUPPLIER AND BEGINNING ON THE STARTING DATE OF 4,625
COMPETITIVE RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 4,626
OF THE REVISED CODE, "ELECTRIC SERVICE" ALSO EXCLUDES A 4,627
COMPETITIVE RETAIL ELECTRIC SERVICE. IN THE CASE OF A 4,628
NOT-FOR-PROFIT ELECTRIC SUPPLIER AND BEGINNING ON THAT STARTING 4,629
DATE, "ELECTRIC SERVICE" ALSO EXCLUDES ANY SERVICE COMPONENT OF A
COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS SPECIFIED IN AN 4,631
IRREVOCABLE FILING THE ELECTRIC SUPPLIER MAKES WITH THE PUBLIC 4,632
UTILITIES COMMISSION FOR INFORMATIONAL PURPOSES ONLY TO ELIMINATE 4,633
PERMANENTLY ITS CERTIFIED TERRITORY UNDER SECTIONS 4933.81 TO 4,634
4933.90 OF THE REVISED CODE AS TO THAT SERVICE COMPONENT. THE 4,635
FILING SHALL SPECIFY THE DATE ON WHICH SUCH TERRITORY IS SO 4,636
ELIMINATED. NOTWITHSTANDING DIVISION (B) OF SECTION 4928.01 OF 4,637
THE REVISED CODE, SUCH A SERVICE COMPONENT MAY INCLUDE RETAIL 4,638
ANCILLARY, METERING, OR BILLING AND COLLECTION SERVICE 4,639
IRRESPECTIVE OF WHETHER THAT SERVICE COMPONENT HAS OR HAS NOT
BEEN DECLARED COMPETITIVE UNDER SECTION 4928.04 OF THE REVISED 4,640
CODE. UPON RECEIPT OF THE FILING BY THE COMMISSION, THE 4,641
NOT-FOR-PROFIT ELECTRIC SUPPLIER'S CERTIFIED TERRITORY SHALL BE 4,642
ELIMINATED PERMANENTLY AS TO THE SERVICE COMPONENT SPECIFIED IN 4,643
THE FILING AS OF THE DATE SPECIFIED IN THE FILING. AS USED IN 4,644
THIS DIVISION, "COMPETITIVE RETAIL ELECTRIC SERVICE" AND "RETAIL 4,646
ELECTRIC SERVICE" HAVE THE SAME MEANINGS AS IN SECTION 4928.01 OF 4,647
THE REVISED CODE.
(G) "Certified territory" means a geographical area the 4,649
boundaries of which have been established pursuant to sections 4,650
114
4933.81 to 4933.90 of the Revised Code within which an electric 4,651
supplier is authorized and required to provide electric service. 4,652
(H) "Other unit of local government" means any 4,654
governmental unit or body that may come into existence after the 4,655
effective date of this section JULY 12, 1978, with powers and 4,657
authority similar to those of a municipal corporation, or which 4,658
THAT is created to replace or exercise the relevant powers of any 4,659
one or more municipal corporations. 4,660
Sec. 4935.04. (A) As used in this chapter: 4,669
(1) "Major utility facility" means: 4,671
(a) An electric generating plant and associated facilities 4,673
designed for, or capable of, operation at a capacity of fifty 4,674
megawatts or more; 4,675
(b) An electric transmission line and associated 4,677
facilities of a design capacity of one hundred twenty-five 4,678
kilovolts or more; 4,679
(c)(b) A gas or natural gas transmission line and 4,681
associated facilities designed for, or capable of, transporting 4,682
gas or natural gas at pressures in excess of one hundred 4,683
twenty-five pounds per square inch. 4,684
"Major utility facility" does not include electric, gas, or 4,686
natural gas distributing lines and gas or natural gas gathering 4,687
lines and associated facilities as defined by the public 4,688
utilities commission; facilities owned or operated by industrial 4,690
firms, persons, or institutions that produce or transmit gas, OR 4,691
natural gas, or electricity primarily for their own use or as a 4,693
byproduct of their operations; gas or natural gas transmission 4,694
lines and associated facilities over which an agency of the 4,695
United States has certificate jurisdiction; facilities owned or 4,696
operated by a person furnishing gas or natural gas directly to
fifteen thousand or fewer customers within this state. 4,697
(2) "Person" has the meaning set forth in section 4906.01 4,699
of the Revised Code. 4,700
(B) Each person owning or operating a gas or natural gas 4,702
115
transmission line and associated facilities within this state 4,703
over which an agency of the United States has certificate 4,704
jurisdiction shall furnish to the commission a copy of the energy 4,705
information filed by the person with that agency of the United 4,707
States.
(C) Each person owning or operating a major utility 4,709
facility within this state, or furnishing gas, natural gas, or 4,711
electricity directly to more than fifteen thousand customers 4,713
within this state annually shall furnish a report to the 4,714
commission for its review. The report shall be termed the 4,716
long-term forecast report and shall contain: 4,717
(1) A year-by-year, ten-year forecast of annual energy 4,719
demand, peak load, reserves, and a general description of the 4,720
resource plan to meet demand; 4,721
(2) A range of projected loads during the period; 4,723
(3) A description of major utility facilities planned to 4,725
be added or taken out of service in the next ten years, including 4,726
prospective sites for generating plants and, to the extent the 4,727
information is available, PROSPECTIVE SITES for transmission line 4,728
locations; 4,729
(4) For gas and natural gas, a projection of anticipated 4,731
supply, supply prices, and sources of supply over the forecast 4,732
period; 4,733
(5) For electricity, a range of projected loads and a 4,735
projection of annual energy demand, anticipated generating 4,736
capacity, and system seasonal peak demand for a twenty-year 4,737
period; 4,738
(6) A description of proposed changes in the transmission 4,740
system planned for the next five years; 4,741
(7)(6) A month-by-month forecast of both energy demand and 4,743
peak load for electric utilities, and gas sendout for gas and 4,744
natural gas utilities, for the next two years. The report shall 4,745
describe the major utility facilities that, in the judgment of 4,747
such person, will be required to supply system demands during the 4,748
116
forecast period. The report from a gas or natural gas utility 4,749
shall cover the ten- and five-year periods next succeeding the 4,750
date of the report, and the report from an electric utility shall 4,751
cover the twenty-, ten-, and five-year periods next succeeding 4,752
the date of the report. Each report shall be made available to 4,753
the public and furnished upon request to municipal corporations 4,754
and governmental agencies charged with the duty of protecting the 4,755
environment or of planning land use. The report shall be in such 4,756
form and shall contain such information as may be prescribed by 4,757
the commission. 4,758
Each person not owning or operating a major utility 4,760
facility within this state and serving fifteen thousand or fewer 4,762
gas, OR natural gas, or electric customers within this state 4,764
shall furnish such information as the commission may require 4,765
REQUIRES.
(D) The commission shall: 4,767
(1) Review and comment on the reports filed under division 4,769
(C) of this section, and make the information contained therein 4,770
IN THE REPORTS readily available to the public and other 4,772
interested government agencies; 4,773
(2) Compile and publish each year the general locations of 4,775
the proposed power plant sites and general locations of proposed 4,776
and existing transmission line routes within its jurisdiction as 4,777
identified in the reports filed under division (C) of this 4,778
section, identifying the general location of such sites and 4,779
routes and the approximate year when construction is expected to 4,780
commence, and to make such information readily available to the 4,781
public, to each newspaper of daily or weekly circulation within 4,782
the area affected by the proposed site and route, and to 4,783
interested federal, state, and local agencies; 4,784
(3) Hold a public hearing: 4,786
(a) On the first long-term forecast report filed after 4,788
January 11, 1983; 4,789
(b) At least once in every five years, on the latest 4,791
117
report furnished by any person subject to this section; 4,792
(c) On the latest report furnished by any person subject 4,794
to this section if the report contains a substantial change from 4,795
the preceding report furnished by that person. "Substantial 4,796
change" includes, but is not limited to: 4,797
(i) The addition or cancellation of a generating facility 4,799
of fifty megawatts or more in the report furnished pursuant to 4,800
division (C) of this section; 4,801
(ii) A change in forecasted peak loads or energy 4,803
consumption over the forecast period of greater than an average 4,804
of one-half of one per cent per year; 4,805
(iii)(ii) Demonstration of good cause to the commission by 4,807
an interested party. 4,808
The commission shall fix a time for the hearing, which 4,810
shall be not later than ninety days after the report is filed, 4,811
and publish notice of the date, time of day, and location of the 4,812
hearing in a newspaper of general circulation in each county in 4,813
which the person furnishing the report has or intends to locate a 4,814
major utility facility and will provide service during the period 4,815
covered by the report. The notice shall be published not less 4,816
than fifteen nor more than thirty days before the hearing and 4,817
shall state the matters to be considered. 4,818
Absent a showing of good cause, the commission shall not 4,820
hold hearings under division (D)(3) of this section with respect 4,821
to persons who, as the primary purpose of their business, furnish 4,822
gas, OR natural gas, or electricity directly to fifteen thousand 4,824
or fewer customers within this state solely for direct 4,825
consumption by those customers. 4,826
(4) Require such information from persons subject to its 4,828
jurisdiction as necessary to assist in the conduct of hearings 4,829
and any investigation or studies it may undertake; 4,830
(5) Conduct any studies or investigations that are 4,832
necessary or appropriate to carry out its responsibilities under 4,833
this section. 4,834
118
(E)(1) The scope of the hearing held under division (D)(3) 4,836
of this section shall be limited to issues relating to 4,837
forecasting. The power siting board, the office of consumers' 4,838
counsel, and all other persons having an interest in the 4,839
proceedings shall be afforded the opportunity to be heard and to 4,840
be represented by counsel. The commission may adjourn the 4,841
hearing from time to time. 4,842
(2) The hearing shall include, but not be limited to, a 4,844
review of: 4,845
(a) The projected loads and energy requirements for each 4,847
year of the period; 4,848
(b) The estimated installed capacity and supplies to meet 4,850
the projected load requirements. 4,851
(F) Based upon the report furnished pursuant to division 4,853
(C) of this section and the hearing record, the commission, 4,854
within ninety days from the close of the record in the hearing, 4,855
shall determine if: 4,856
(1) All information relating to current activities, 4,858
facilities agreements, and published energy policies of the state 4,859
has been completely and accurately represented; 4,860
(2) The load requirements are based on substantially 4,862
accurate historical information and adequate methodology; 4,863
(3) The forecasting methods consider the relationships 4,865
between price and energy consumption; 4,866
(4) The report identifies and projects reductions in 4,868
energy demands due to energy conservation measures in the 4,869
industrial, commercial, residential, transportation, and energy 4,870
production sectors in the service area; 4,871
(5) Utility company forecasts of loads and resources are 4,873
reasonable in relation to population growth estimates made by 4,874
state and federal agencies, transportation, and economic 4,875
development plans and forecasts, and make recommendations where 4,876
possible for necessary and reasonable alternatives to meet 4,877
forecasted electric power demand; 4,878
119
(6) The report considers plans for expansion of the 4,880
regional power grid and the planned facilities of other utilities 4,881
in the state; 4,882
(7) All assumptions made in the forecast are reasonable 4,884
and adequately documented. 4,885
(G) The commission shall adopt rules under section 111.15 4,887
of the Revised Code to establish criteria for evaluating the 4,888
long-term forecasts of needs for gas and electric power 4,889
TRANSMISSION SERVICE, to conduct hearings held under this 4,890
section, to establish reasonable fees to defray the direct cost 4,892
of the hearings and the review process, and such other rules as 4,893
are necessary and convenient to implement this section. 4,894
(H) The hearing record produced under this section and the 4,896
determinations of the commission shall be introduced into 4,897
evidence and shall be considered in determining the basis of need 4,898
for power siting board deliberations under division (A)(1) of 4,899
section 4906.10 of the Revised Code. The hearing record produced 4,900
under this section shall be introduced into evidence and shall be 4,901
considered by the public utilities commission in its initiation 4,902
of programs, examinations, AND findings, investigations, and 4,903
remedies under section 4905.70 of the Revised Code, and shall be 4,905
considered in their THE COMMISSION'S determinations with respect 4,906
to the establishment of just and reasonable rates under section 4,908
4909.15 of the Revised Code and financing utility facilities and 4,909
authorizing issuance of all securities under sections 4905.40, 4,910
4905.401, 4905.41, and 4905.42 of the Revised Code. The forecast 4,911
findings also shall serve as the basis for all other energy 4,913
planning and development activities of the state government where 4,914
electric and gas data are required. 4,915
(I)(1) No court other than the supreme court shall have 4,917
power to review, suspend, or delay any determination made by the 4,918
commission under this section, or enjoin, restrain, or interfere 4,919
with the commission in the performance of official duties. A 4,920
writ of mandamus shall not be issued against the commission by 4,921
120
any court other than the supreme court. 4,922
(2) A final determination made by the commission shall be 4,924
reversed, vacated, or modified by the supreme court on appeal, 4,925
if, upon consideration of the record, such court is of the 4,926
opinion that such determination was unreasonable or unlawful. 4,927
The proceeding to obtain such reversal, vacation, or 4,929
modification shall be by notice of appeal, filed with the 4,930
commission by any party to the proceeding before it, against the 4,931
commission, setting forth the determination appealed from and 4,932
errors complained of. The notice of appeal shall be served, 4,933
unless waived, upon the commission by leaving a copy at the 4,934
office of the chairman CHAIRPERSON of the commission at Columbus. 4,936
The court may permit an interested party to intervene by 4,937
cross-appeal.
(3) No proceeding to reverse, vacate, or modify a 4,939
determination of the commission is commenced unless the notice of 4,940
appeal is filed within sixty days after the date of the 4,941
determination. 4,942
Sec. 5117.01. (A) As used in this chapter SECTIONS 4,951
5117.01 TO 5117.12 OF THE REVISED CODE: 4,952
(1)(A) "Credit" means the credit on utility heating bills 4,954
granted under division (A) of section 5117.09 of the Revised 4,955
Code. 4,956
(2)(B) "Current monthly bill" means the amount charged for 4,958
energy consumed in the most recent monthly billing period and 4,959
does not include any past due balance. 4,960
(3)(C) "Current total income" means the adjusted gross 4,962
income of the head of household and the person's spouse for the 4,964
six-month period beginning the first day of January and ending 4,965
the thirtieth day of June of the year in which an application is 4,966
made, as determined under the "Internal Revenue Code of 1954," 4,967
68A Stat. 3, 26 U.S.C. 1, as amended, minus the amount of 4,968
disability benefits included in adjusted gross income but not to 4,969
exceed twenty-six hundred dollars, plus old age and survivors 4,970
121
benefits received pursuant to the "Social Security Act," 4,971
retirement, pension, annuity, or other retirement payments or 4,972
benefits not included in federal adjusted gross income; payments 4,973
received pursuant to the "Railroad Retirement Act," 50 Stat. 307, 4,974
45 U.S.C. 228, and interest on federal, state, and local 4,975
government obligations. Disability benefits paid by the veterans 4,976
administration or a branch of the armed forces of the United 4,977
States on account of an injury or disability are not included in 4,978
current total income. 4,979
(4)(D) "Energy company" means every retail propane dealer 4,981
that distributes propane by pipeline, and every electric light, 4,982
rural electric, gas, or natural gas company. 4,983
(5)(E) "Energy dealer" means every retail dealer of fuel 4,985
oil, propane, coal, wood, and kerosene. 4,986
(6)(F) "Head of household" means a person who occupies a 4,988
household as the person's homestead and who is financially 4,989
responsible for its other occupants, if any, or the spouse of 4,991
such a person if both occupy the same household. No person is a 4,992
head of household if the person occupies a household for the 4,993
taxable year prior to the year in which an application is filed 4,995
and was claimed as a dependent on the federal income tax return 4,996
of another occupant of the same household and was not the 4,997
taxpayer's spouse or if the person could have been claimed if 4,999
such a return had been filed for such year and was not the other 5,000
occupant's spouse.
(7)(G) "Household" means any dwelling unit, including a 5,002
unit in a multiple unit dwelling, a manufactured home, or a 5,004
mobile home, to which utility heating services or energy 5,006
commodities are provided.
(8)(H) "Payment" means the one hundred twenty-five-dollar 5,008
payment provided under division (A) of section 5117.10 of the 5,009
Revised Code. 5,010
(9)(I) "Permanently and totally disabled" refers to a 5,012
person who has, on the first day of July of the year an 5,013
122
application is made, some impairment in body or mind that makes 5,014
the person unfit to work at any substantially remunerative 5,016
employment that the person would otherwise be reasonably able to 5,018
perform and that will, with reasonable probability, continue for 5,019
an indefinite period of at least twelve months without any 5,020
present indication of recovery therefrom, or who has been 5,021
certified as permanently and totally disabled by a state or 5,022
federal agency having the function of so classifying persons. 5,023
(10)(J) "Sixty-five years of age or older" refers to a 5,025
person who has attained age sixty-four prior to the first day of 5,026
January of the year of application for reduction in utility 5,027
charges.
(11)(K) "Total income" means the adjusted gross income of 5,029
the head of household and the person's spouse for the year 5,031
preceding the year in which an application is made, as determined 5,032
under the "Internal Revenue Code of 1954," 68A Stat. 3, 26 U.S.C. 5,033
1, as amended, minus the amount of disability benefits included 5,034
in adjusted gross income but not to exceed fifty-two hundred 5,035
dollars, plus old age and survivors benefits received pursuant to 5,036
the "Social Security Act," retirement, pension, annuity, or other 5,037
retirement payments or benefits not included in federal adjusted 5,038
gross income; payments received pursuant to the "Railroad 5,039
Retirement Act," 50 Stat. 307, 45 U.S.C. 228; and interest on 5,040
federal, state, and local government obligations. Disability 5,041
benefits paid by the veteran's administration DEPARTMENT OF 5,042
VETERANS AFFAIRS or a branch of the armed forces of the United 5,044
States on account of an injury or disability shall not be 5,045
included in total income.
(B) As used in sections 5117.01 to 5117.12 of the Revised 5,047
Code: 5,048
(1) "Applicant" means any person who has submitted an 5,050
application under division (C) of section 5117.03 of the Revised 5,051
Code. 5,052
(2) "Application" means the application in section 5117.03 5,054
123
of the Revised Code. 5,055
(3) "Program" means the Ohio energy credit program 5,057
established under sections 5117.01 to 5117.12 of the Revised 5,058
Code. 5,059
(4)(L) "Purchased power costs" means charges for the costs 5,061
of power purchased by an electric light company under Chapters 5,062
4905. and 4909. of the Revised Code and includes charges 5,063
resulting from the exchange of electric power. 5,064
Sec. 5117.02. (A) The DIRECTOR OF DEVELOPMENT, TO THE 5,073
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, shall 5,074
adopt rules, or amendments and rescissions of rules, PURSUANT TO 5,075
SECTION 4928.52 OF THE REVISED CODE, for the administration of 5,076
THE OHIO ENERGY CREDIT PROGRAM UNDER sections 5117.01 to 5117.12 5,078
of the Revised Code.
(B) As a means of efficiently administering the program 5,080
established by sections 5117.01 to 5117.12 of the Revised Code, 5,081
the tax commissioner DIRECTOR may extend, by as much as a total 5,082
of thirty days, any date specified in such sections for the 5,084
performance of a particular action by an individual or an 5,085
officer.
(C)(1) Except as provided in division (C)(2) of this 5,087
section, the DIRECTOR, TO THE EXTENT NECESSARY IN CONSULTATION 5,088
WITH THE tax commissioner, shall ADOPT, in accordance with 5,089
divisions (A), (B), (C), (D), (E), and (H) of section 119.03 and 5,090
section 119.04 of the Revised Code, adopt whatever rules, or 5,091
amendments or rescissions of rules are required by or are 5,092
otherwise necessary to implement sections 5117.01 to 5117.12 of 5,093
the Revised Code. A rule, amendment, or rescission adopted under 5,094
this division is not exempt from the hearing requirements of 5,095
section 119.03 of the Revised Code pursuant to division (G) of 5,096
that section, or subject to section 111.15 or 5703.14 of the 5,097
Revised Code. 5,098
(2) If an emergency necessitates the immediate adoption of 5,100
a rule, or the immediate adoption of an amendment or rescission 5,101
124
of a rule that is required by or otherwise necessary to implement 5,102
sections 5117.01 to 5117.12 of the Revised Code, the DIRECTOR, TO 5,103
THE EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner 5,105
may, immediately MAY adopt the emergency rule, amendment, or 5,107
rescission without complying with division (A), (B), (C), (D),
(E), or (H) of section 119.03 of the Revised Code so long as he 5,108
THE DIRECTOR states the reasons for the necessity in the 5,109
emergency rule, amendment, or rescission. The emergency rule, 5,110
amendment, or rescission is effective on the day copies of the 5,111
emergency rule, amendment, or rescission, in final form and in 5,112
compliance with division (A)(2) of section 119.04 of the Revised 5,113
Code, are filed as follows: two certified copies of the 5,114
emergency rule, amendment, or rescission shall be filed with both 5,115
the secretary of state and the director of the legislative 5,116
service commission, and one certified copy of the emergency rule, 5,117
amendment, or rescission shall be filed with the joint committee 5,118
on agency rule review. If all copies are not filed on the same 5,119
day, the emergency rule, amendment, or rescission is effective on 5,120
the day on which the latest filing is made. An emergency rule, 5,121
amendment, or rescission adopted under this division is not 5,122
subject to section 111.15, division (F) of section 119.03, or 5,123
section 5703.14 of the Revised Code. An emergency rule, 5,124
amendment, or rescission adopted under this division continues in 5,125
effect until amended or rescinded by the DIRECTOR, TO THE EXTENT 5,126
NECESSARY IN CONSULTATION WITH THE tax commissioner, in 5,127
accordance with division (C)(1) or (2) of this section, except 5,128
that the rescission of an emergency rescission does not revive 5,129
the rule rescinded. 5,130
(D) Except where otherwise provided, each form, 5,132
application, notice, and the like used in fulfilling the 5,133
requirements of sections 5117.01 to 5117.12 of the Revised Code 5,134
shall be approved by the DIRECTOR, TO THE EXTENT NECESSARY IN 5,135
CONSULTATION WITH THE tax commissioner. 5,136
Sec. 5117.03. (A)(1) The DIRECTOR OF DEVELOPMENT, TO THE 5,145
125
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, shall 5,146
prescribe the form of THE application FOR ASSISTANCE UNDER THE 5,147
OHIO ENERGY CREDIT PROGRAM. The application shall be in the form 5,148
of a signed statement, shall require no more information than is 5,149
necessary to establish an applicant's eligibility under section 5,150
5117.07 of the Revised Code, and shall be clear and concise in 5,151
its format, requirements, and instructions. The form shall 5,152
request the following information: 5,153
(a) The name and address of the applicant; 5,155
(b) The type of energy or commodity that is the source of 5,157
the heat produced by the primary heating system in the residence 5,158
of the applicant; 5,159
(c) The name of the energy company or energy dealer that 5,161
supplies the energy or commodity that is the source of the heat 5,162
produced by the primary heating system in the residence of the 5,163
applicant and, if the applicant receives his THE APPLICANT'S 5,164
energy from a company, the applicant's account number; 5,165
(d) The applicant's total income or current total income; 5,167
(e) In the case of an application based upon physical 5,169
disability, a certification signed by a physician, in the case of 5,170
an application based upon mental disability, a certification 5,171
signed by a physician or psychologist, or in the case of either 5,172
such disability, a certification from a state or federal agency 5,173
having the function of so classifying persons; 5,174
(f) The age of the applicant; 5,176
(g) Any other information required to make eligibility 5,178
determinations under section 5117.07 of the Revised Code. 5,179
Each form shall contain a statement that signing such 5,181
application constitutes a delegation of authority by the 5,182
applicant to the commissioner to examine any financial records 5,183
that relate to income earned by the applicant as stated on the 5,184
application for the purpose of determining eligibility under 5,185
section 5117.07 of the Revised Code and possible violation of 5,186
division (B) of section 5117.11 of the Revised Code. 5,187
126
(2) The tax commissioner shall mail or otherwise provide 5,189
an application form to each person requesting such form. 5,190
(B)(1) The DIRECTOR, TO THE EXTENT NECESSARY IN 5,192
CONSULTATION WITH THE tax commissioner, shall devise and 5,193
prescribe an application renewal form on which the head of 5,194
household may indicate by check mark that he THE HEAD OF 5,195
HOUSEHOLD received a credit or payment for the preceding heating 5,197
season. Application renewal forms shall seek from persons 5,198
applying on such basis a certification by the applicant attesting 5,199
to his THE APPLICANT'S permanent and total disability and the 5,200
name of a physician, psychologist, or government agency willing 5,201
to provide an additional certification if so requested under 5,202
division (D) of section 5117.07 of the Revised Code. Such forms 5,203
shall also include such other information as the DIRECTOR, TO THE 5,204
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, 5,205
requires and shall be clear and concise in format, requirements, 5,206
and instructions. 5,207
(2) On or before the fifteenth day of June, the tax 5,209
commissioner DIRECTOR shall mail or otherwise provide an 5,210
application renewal form to each head of household who received a 5,212
credit or payment during the preceding heating season. 5,213
(3) Application renewal forms shall be reviewed and 5,215
disposed of in the same manner provided for application forms in 5,216
section 5117.07 of the Revised Code. 5,217
(C) Applications and application renewal forms shall be 5,219
returned to the tax commissioner DIRECTOR no later than the first 5,221
day of September. If an applicant is determined eligible for a 5,222
credit under division (A)(1) of section 5117.07 of the Revised 5,223
Code and the applicant's account number is not provided on the 5,224
application form pursuant to division (A)(1)(c) of this section, 5,225
the tax commissioner DIRECTOR shall make a good faith effort to 5,226
acquire such number before certifying the applicant's eligibility 5,228
to an energy company under section 5117.08 of the Revised Code. 5,229
The tax commissioner DIRECTOR may request an energy company to 5,230
127
assist in efforts to acquire an applicant's account number and, 5,232
if so requested, a company shall cooperate in such efforts. 5,233
Sec. 5117.04. (A) Every energy company and energy dealer 5,242
shall, at least once during June, and once during August, SHALL 5,243
begin to distribute to each of its residential heating customers 5,245
a plain and clear notice, printed in ten-point type on a sheet or 5,246
card on which no other words appear on either the front or back, 5,247
that states the right of qualified residential customers to 5,248
receive a credit or payment UNDER THE OHIO ENERGY CREDIT PROGRAM 5,250
and that explains in detail, in a fashion reasonably calculated 5,251
to inform, the relevant mechanisms established under sections 5,252
5117.01 to 5117.12 of the Revised Code to effectuate that right. 5,253
The notice shall also contain, in ten-point boldface type, the 5,254
following statement: "The right of eligible customers to receive 5,255
a credit against utility bills or a payment for energy bills is 5,256
provided in legislation (House Bill 657) passed by the General 5,257
Assembly and signed by the Governor."
(B) The tax commissioner DIRECTOR OF DEVELOPMENT shall 5,259
cause to be printed notices of the type specified in division (A) 5,261
of this section and application forms in sufficient quantity for 5,262
distribution. The tax commissioner DIRECTOR shall maintain a 5,263
system for distributing application forms to appropriate public 5,265
locations. The distribution system shall be designed to make 5,266
application forms available to as many qualified persons as 5,267
possible.
(C) The tax commissioner DIRECTOR shall arrange for the 5,269
establishment of a toll-free telephone number to enable all 5,270
persons in this state to make inquiries and obtain information 5,271
concerning the credits or payments. 5,272
Sec. 5117.05. The tax commissioner DIRECTOR OF 5,281
DEVELOPMENT, in consultation with the commission on 5,282
Hispanic-Latino affairs, shall develop an outreach program, 5,284
including Spanish-speaking communication formats, designed to 5,285
make all Spanish-speaking persons who meet the eligibility 5,286
128
requirements for participation in the Ohio energy credit program 5,287
aware of the nature and extent of available benefits and methods 5,288
for acquiring and making applications. The program shall include
assistance to such persons in making applications. The 5,289
commissioner DIRECTOR shall implement the program in cooperation 5,291
with the commission on Hispanic-Latino affairs. 5,292
Sec. 5117.07. (A) On or before the first day of October, 5,301
the tax commissioner DIRECTOR OF DEVELOPMENT shall review all 5,302
applications submitted under division (C) of section 5117.03 of 5,304
the Revised Code and shall determine the eligibility of each 5,305
applicant to receive a credit or payment. 5,306
(1) An applicant is eligible for a credit of thirty per 5,308
cent if the applicant is a head of household, has a total income 5,309
of five thousand dollars or less or a current total income of two 5,310
thousand five hundred dollars or less, owns and occupies or rents 5,311
and occupies a household receiving the source of energy for its 5,312
primary heating system from an energy company and such energy is 5,313
separately metered, and is either of the following: 5,314
(a) Sixty-five years of age or older; 5,316
(b) Permanently and totally disabled. 5,318
(2) An applicant is eligible for a credit of twenty-five 5,320
per cent if the applicant is a head of household, has a total 5,321
income of more than five thousand dollars but not more than nine 5,322
thousand dollars or a current total income of more than two 5,323
thousand five hundred dollars but not more than four thousand 5,324
five hundred dollars, is sixty-five years of age or older or 5,325
permanently and totally disabled, and owns and occupies or rents 5,326
and occupies a household receiving the source of energy for its 5,327
primary heating system from an energy company and such energy is 5,328
separately metered. 5,329
(3) An applicant is eligible for a payment if either of 5,331
the following applies to the applicant: 5,332
(a) He THE APPLICANT would be eligible for the credit 5,334
under division (A)(1) or (2) of this section but for the fact 5,336
129
that the source of energy for the primary heating system of the 5,337
applicant's household is not separately metered; 5,338
(b) He THE APPLICANT is a head of household, has a total 5,340
income of no more than nine thousand dollars or a current total 5,342
income of no more than four thousand five hundred dollars, is 5,343
sixty-five years of age or older or permanently and totally 5,344
disabled, and owns and occupies or rents and occupies a household 5,345
receiving the source of energy for its primary heating system 5,346
from an energy dealer.
(4) In the case of a multiple unit dwelling for which 5,348
separate metering for the source of energy for its primary 5,349
heating system is not provided, more than one applicant occupying 5,350
such dwelling may be determined eligible for a payment under 5,351
division (A)(3)(a) of this section. 5,352
(B) Notwithstanding division (A) of this section: 5,354
(1) No head of household who resides in public housing or 5,356
receives a rent subsidy from a government agency is eligible for 5,357
a credit or payment unless the person's rent subsidy does not 5,358
reflect the costs of his THAT PERSON'S household receiving the 5,359
source of energy for its primary heating system; 5,361
(2) A resident of a nursing home, hospital, or other 5,363
extended health care facility is not eligible for a credit or 5,364
payment for the costs of providing the source of energy for the 5,365
primary heating system of the facility. 5,366
(C) The DIRECTOR, IN CONSULTATION WITH THE tax 5,368
commissioner, shall establish a procedure whereby he THE 5,370
COMMISSIONER can verify total income and current total income for 5,371
the calendar year in which an applicant is determined eligible 5,372
for a payment or credit. If a person receives a credit or 5,373
payment that he THE PERSON is ineligible to receive under 5,374
division (A) of this section AS DETERMINED BY THE COMMISSIONER, 5,376
that person shall refund to the tax commissioner DIRECTOR the 5,378
credit or payment, or excess portion of a credit or payment, he 5,379
THAT PERSON received. The sum refunded shall be deposited in the 5,380
130
state treasury to the credit of the general revenue fund 5,381
UNIVERSAL SERVICE FUND CREATED IN SECTION 4928.51 OF THE REVISED 5,382
CODE.
(D) The tax commissioner DIRECTOR may request an 5,384
additional certification of permanent and total disability for 5,385
any applicant claiming such status on an application renewal form 5,386
submitted under section 5117.03 of the Revised Code. Such 5,387
certification shall be requested from the person or agency named 5,388
on the form pursuant to division (B)(1) of section 5117.03 of the 5,389
Revised Code. If such additional certification is refused due to 5,390
a conclusion by the person or agency that the applicant is not 5,391
permanently and totally disabled, the commissioner DIRECTOR shall 5,393
determine the applicant ineligible for any credit or payment. If 5,394
such additional certification is unavailable or refused for any 5,395
other reason, the tax commissioner DIRECTOR may determine the 5,396
applicant to be eligible for a credit or payment provided he THE 5,398
DIRECTOR has good cause to believe the applicant is permanently 5,400
and totally disabled.
(E) On or before the first day of October, the tax 5,402
commissioner DIRECTOR shall notify each applicant of the 5,403
disposition of his THE APPLICANT'S application under divisions 5,405
(A) and (B) of this section. At the same time, he THE DIRECTOR 5,407
shall notify the applicant, regardless of whether his THE 5,409
APPLICANT'S application is approved or disapproved, that the 5,410
applicant may be eligible to participate in a state or federal 5,411
weatherization program and should contact his THE APPLICANT'S 5,412
community action agency for further information. If an 5,414
application is disapproved, the applicant may appeal to the tax 5,415
commissioner DIRECTOR for a hearing on the matter. A notice of 5,417
disapproval shall include a detailed explanation of the 5,418
applicant's right of appeal under this chapter. Any such appeal 5,419
shall be on an appeal form prescribed by the tax commissioner 5,420
DIRECTOR and shall be filed with the tax commissioner DIRECTOR 5,422
within twenty days of the receipt of the notice of disapproval. 5,424
131
Sec. 5117.08. (A)(1) On or before the tenth day of 5,433
October, the tax commissioner DIRECTOR OF DEVELOPMENT shall begin 5,435
to prepare and certify to each energy company that provides 5,436
energy for home heating a list containing the name and account 5,437
number of each head of household determined eligible for a credit 5,438
under divisions (A) and (B) of section 5117.07 of the Revised 5,439
Code and served by that company, the address of the household, 5,440
and the source of the heat produced by the primary heating system 5,441
in the residence of the applicant. The tax commissioner may 5,442
DIRECTOR, for good cause, MAY certify addenda to such lists, 5,444
containing the names of any heads of household whose names were 5,445
not included in the earlier lists but who, except for failure to 5,446
meet the deadline requirements of sections 5117.01 to 5117.12 of 5,447
the Revised Code, would have been certified in the original 5,448
lists. Within thirty days of receipt of such list and in any 5,449
month for which a credit is required under sections 5117.01 to 5,450
5117.12 of the Revised Code, the company may verify that each 5,451
head of household on the commissioner's DIRECTOR'S list receives 5,452
energy for home heating at the household address appearing on 5,454
such list or that the source of heat produced by the primary 5,455
heating system in the household is energy supplied by the 5,456
company. If the company determines that a person listed does not 5,457
receive energy for home heating at such address or that the 5,458
source of the heat produced by the primary heating system in the 5,459
residence of such person is not supplied by the company, it shall 5,460
notify the commissioner DIRECTOR of such fact and may refuse to 5,462
grant the credit provided under division (A) of section 5117.07 5,463
of the Revised Code. Upon receipt of such notice, the 5,464
commissioner DIRECTOR shall determine the accuracy of the 5,466
determination of the company and, should he THE DIRECTOR not 5,467
concur with the company, shall order the company to provide the 5,468
credit.
(2) The good faith exercise by any company of any power of 5,470
refusal granted under division (A)(1) of this section does not 5,471
132
subject such company to any penalty or liability provided under 5,472
division (A) of section 5117.11 of the Revised Code. 5,473
(B)(1) Nothing in sections 5117.01 to 5117.12 of the 5,475
Revised Code shall be construed to abridge the right of an 5,476
otherwise eligible applicant to receive a credit or payment 5,477
because he THE APPLICANT has either changed the location of his 5,479
THE APPLICANT'S residence or the nature of the occupancy of his 5,480
THE APPLICANT'S residence, as between a tenant or an owner, at a 5,482
time that could, as a result of the operation of sections 5117.01 5,483
to 5117.12 of the Revised Code, cause him THE APPLICANT to be 5,484
disqualified from receiving, or continuing to receive, the credit 5,485
or payment.
(2) Where a person who submits a form or information 5,487
required under sections 5117.01 to 5117.10 of the Revised Code 5,488
does so in a timely fashion but, because of the occurrence of an 5,489
error or omission with respect to such form or information, 5,490
either on his THE PERSON'S OWN part or on the part of those 5,491
persons required by sections 5117.01 to 5117.12 of the Revised 5,493
Code to take administrative, executive, or ministerial action 5,494
regarding such form or information, the certification of 5,495
eligibility by the tax commissioner DIRECTOR to an energy company 5,496
takes place after the expiration of a deadline imposed under 5,497
sections 5117.01 to 5117.12 of the Revised Code, the company 5,498
shall grant the credit within thirty days and, whenever 5,499
appropriate, grant the credit on a retroactive basis. 5,500
(3) The tax commissioner DIRECTOR shall adopt a rule 5,502
ensuring that the requirements of divisions (B)(1) and (2) of 5,503
this section are effectuated. 5,504
Sec. 5117.09. (A) With respect to each of its residential 5,513
customers, every energy company shall, after receipt of a 5,514
certification list provided under division (A) of section 5117.08 5,515
of the Revised Code, cause the granting of a credit in accordance 5,516
with this section against the monthly billing of each household 5,517
appearing on the list except as provided in division (A) of 5,518
133
section 5117.08 of the Revised Code. In the case of an applicant 5,519
who has a total income of five thousand dollars or less or a 5,520
current total income of two thousand five hundred dollars or 5,521
less, the credit shall amount to thirty per cent of the current 5,522
monthly bill rendered to such household by the company for the 5,523
billing months of December, January, February, March, and April 5,524
following the receipt of a list on which the household appears. 5,525
In the case of an applicant who has a total income of more than 5,526
five thousand dollars but not more than nine thousand dollars or 5,527
a current total income of more than two thousand five hundred 5,528
dollars but not more than four thousand five hundred dollars, the 5,529
credit shall amount to twenty-five per cent of the current 5,530
monthly bill rendered to such household by the company for the 5,531
billing months of December, January, February, March, and April 5,532
following the receipt of a list on which the household appears. 5,533
If purchased power costs are incurred by an energy company during 5,534
the billing month for which a credit is provided under this 5,535
division, the credit shall also be applied to such costs, whether 5,536
or not the costs are charged to a current montly MONTHLY bill for 5,537
such months. 5,538
(B) Every energy company shall read the meter of each of 5,540
its qualified residential customers who may receive a credit 5,541
under division (A) of this section at least one time for the 5,542
service period of November and at least one time in the service 5,543
period for the current monthly bill rendered for the billing 5,544
month of April. In the event a company is unable to read a meter 5,545
because of failure to gain access after a good faith effort or 5,546
because a certification list was supplied to the utility fewer 5,547
than thirty days prior to the normal date of meter reading, the 5,548
company may render a calculated bill. In such instances, the 5,549
company shall make an adjustment to the amount of the credit 5,550
granted to the customer based upon the next actual reading of the 5,551
meter if the reading shows the previous calculation to have been 5,552
in error and set forth the amount of such adjustments in the 5,553
134
report required to be filed with the tax commissioner DIRECTOR OF 5,554
DEVELOPMENT under division (D) of this section. 5,555
(C) On each billing that is subject to a credit under 5,557
division (A) of this section, there shall appear in ten-point 5,558
type both the amount of the credit and to the left of such amount 5,559
"Ohio Energy Credit." 5,560
(D) On or before the fifteenth day of each month following 5,562
one in which credits were provided under division (A) of this 5,563
section, each energy company shall, on a form prescribed by the 5,564
tax commissioner DIRECTOR and requesting information that he THE 5,566
DIRECTOR determines is necessary for the purpose of verifying the 5,568
propriety of the payment of credits, certify to the commissioner 5,569
DIRECTOR the total amount of all credits it granted pursuant to 5,571
division (A) of this section during the preceding month. Not 5,572
later than thirty days after his receipt of such certification, 5,573
the commissioner DIRECTOR shall pay the company the amount 5,575
certified. If the commissioner DIRECTOR determines that a 5,577
company previously received amounts greater than the amounts of 5,578
credits properly granted, such company, upon notice from the 5,579
commissioner DIRECTOR, shall reimburse the commissioner DIRECTOR 5,580
in the amount of the overpayments. Such reimbursements shall be 5,581
deposited in the general revenue fund. 5,582
(E)(l) Any energy company that purposely fails to grant 5,584
the credit provided under division (A) of this section is liable 5,585
to each person entitled to the credit and certified to the 5,586
company by the tax commissioner DIRECTOR pursuant to division (A) 5,588
of section 5117.08 of the Revised Code in treble the amount of 5,589
the total credit not granted. The consumers' counsel may, on 5,590
behalf of any person or persons not granted the credit, MAY bring 5,591
an action to recover such treble damages in the court of common 5,592
pleas of the county in which is located the office of the company 5,593
nearest the household of any such person or persons. The 5,594
consumers' counsel may also, on behalf of any persons not granted 5,595
the credit, MAY bring a class action to recover such treble 5,596
135
damages in the court of common pleas of any county in which is 5,597
located an office of the company and, if feasible, in which is 5,598
located a significant number of members of the class. Any treble 5,599
damage recovery under this division does not, in any manner, 5,600
diminish any other liability provided under sections 5117.01 to 5,601
5117.12 of the Revised Code. Clerical errors shall not be 5,602
considered an offense or incur liability under this division. 5,603
(2) An action shall be brought by the consumers' counsel 5,605
under division (E)(1) of this section only after he THE 5,606
CONSUMERS' COUNSEL has made a good faith attempt to dispose of 5,608
the claim by settlement, including a good faith request for only 5,609
such information in the possession of an energy company as is 5,610
needed to determine the existence or extent of such a right of 5,611
action.
(3) Nothing in division (E)(1) of this section shall be 5,613
construed to prevent persons acting without the assistance of the 5,614
consumers' counsel from bringing an action or class action under 5,615
such division. 5,616
Sec. 5117.10. (A) On or before the fifteenth day of 5,625
January, the tax commissioner DIRECTOR OF DEVELOPMENT shall pay 5,626
each applicant determined eligible for a payment under divisions 5,628
(A) and (B) of section 5117.07 of the Revised Code one hundred 5,629
twenty-five dollars.
(B) The tax commissioner DIRECTOR may withhold from any 5,631
payment to which a person would otherwise be entitled under 5,633
division (A) of this section any amount that the tax commissioner 5,634
DIRECTOR determines was erroneously received by such person in a 5,636
preceding year under this or the program established under Am. 5,637
Sub. H.B. 230, as amended by Am. H.B. 937, Am. Sub. H.B. 1073, 5,638
Am. Sub. S.B. 493, and Am. Sub. S.B. 523 of the 112th general 5,639
assembly, provided the tax commissioner DIRECTOR has employed all 5,640
other legal methods reasonably available to obtain reimbursement 5,642
for the erroneous payment or credit prior to the commencement of 5,643
the current program year.
136
(C) Payments made under this section and credits granted 5,645
under section 5117.09 of the Revised Code shall not be considered 5,646
income for the purpose of determining eligibility or the level of 5,647
benefits or assistance under section 329.042 or Chapters 5107., 5,648
5111., and 5115. of the Revised Code; supplemental security 5,650
income payments under Title XVI of the "Social Security Act," 49 5,651
Stat. 620 (1935), 42 U.S.C. 301, as amended; or any other program 5,652
under which eligibility or the level of benefits or assistance is 5,653
based upon need measured by income.
Sec. 5117.12. (A) On or before the thirty-first day of 5,662
August of each year, each energy company shall file a written 5,663
report with the tax commissioner DIRECTOR OF DEVELOPMENT 5,664
regarding the impact, if any, of the requirements of division (E) 5,666
of section 5117.11 of the Revised Code on the number of 5,667
uncollectible and past due residential accounts for the 5,668
twelve-month period ending on the preceding thirty-first day of 5,669
July. The report shall include such information as is prescribed 5,670
by the tax commissioner DIRECTOR. The information shall be based 5,672
on actual reviews of residential customer accounts and shall be 5,673
presented in verifiable form. The tax commissioner DIRECTOR may 5,674
consult with the public utilities commission and the consumers' 5,676
counsel in prescribing the contents of such reports and complying 5,677
with the requirements of division (C)(4) of this section. 5,678
(B) Before the thirty-first day of January of each year, 5,680
the tax commissioner DIRECTOR shall prepare a written report 5,681
including a final review of the Ohio energy credit program for 5,683
which applications were required to be mailed or provided by the 5,684
fifteenth day of June of the second preceding calendar year 5,685
pursuant to section 5117.03 of the Revised Code and an interim 5,686
review of the program for which applications were required to be 5,687
mailed or provided by the fifteenth day of June of the preceding 5,688
calendar year under such section. On or before the thirty-first 5,689
day of January of each year, the commissioner DIRECTOR shall 5,690
provide written copies of such report to the speaker of the house 5,692
137
of representatives, president of the senate, minority leaders of 5,693
the house of representatives and senate, chairpersons of the 5,695
house finance and appropriations committee and senate finance 5,696
committee, chairpersons of the committees of the house of 5,697
representatives and senate customarily entrusted with matters 5,698
concerning public utilities, clerk of the house of 5,699
representatives, and clerk of the senate. 5,700
(C) Each report prepared under division (B) of this 5,702
section shall include a review of: 5,703
(1) Program costs; 5,705
(2) The number of persons receiving credits or payments 5,707
under the program; 5,708
(3) Progress in the implementation of any changes in the 5,710
program made by the general assembly within the period covered by 5,711
the report; 5,712
(4) The impact, if any, of the requirements of division 5,714
(E) of section 5117.11 of the Revised Code on the number of 5,715
uncollectible and past due residential accounts of energy 5,716
companies for the twelve-month period ending on the preceding 5,717
thirty-first day of July; 5,718
(5) The impact of any federal energy assistance programs 5,720
available to the same groups of people as are eligible for the 5,721
energy credit program under sections 5117.01 to 5117.12 of the 5,722
Revised Code, together with any recommendations on modifications 5,723
that may, because of the federal programs, be needed in the 5,724
energy credit program; 5,725
(6) Any suggestions for improving the program; 5,727
(7) Any other matters considered appropriate by the 5,729
commissioner DIRECTOR. 5,730
(D) The tax commissioner DIRECTOR shall consult with the 5,732
auditor of state, energy companies, energy dealers, department of 5,734
aging, and commission on Hispanic-Latino affairs in the 5,736
preparation of any report under this section. The commissioner 5,737
DIRECTOR may require information from such agencies for the 5,739
138
purpose of preparing such report.
Sec. 5701.03. As used in Title LVII of the Revised Code: 5,748
(A) "Personal property" includes every tangible thing that 5,750
is the subject of ownership, whether animate or inanimate, 5,751
including a business fixture, and that does not constitute real 5,752
property as defined in section 5701.02 of the Revised Code. 5,753
"Personal property" also includes every share, portion, right, or 5,754
interest, either legal or equitable, in and to every ship, 5,755
vessel, or boat, used or designed to be used in business either 5,756
exclusively or partially in navigating any of the waters within 5,757
or bordering on this state, whether such ship, vessel, or boat is 5,758
within the jurisdiction of this state or elsewhere. "Personal 5,759
property" does not include money as defined in section 5701.04 of 5,760
the Revised Code, motor vehicles registered by the owner thereof, 5,761
ELECTRICITY, or, for purposes of any tax levied on personal 5,763
property, patterns, jigs, dies, or drawings that are held for use 5,764
and not for sale in the ordinary course of business, except to 5,765
the extent that the value of the ELECTRICITY, patterns, jigs, 5,766
dies, or drawings is included in the valuation of inventory 5,768
produced for sale.
(B) "Business fixture" means an item of tangible personal 5,770
property that has become permanently attached or affixed to the 5,771
land or to a building, structure, or improvement, and that 5,772
primarily benefits the business conducted by the occupant on the 5,773
premises and not the realty. "Business fixture" includes, but is 5,774
not limited to, machinery, equipment, signs, storage bins and 5,775
tanks, whether above or below ground, and broadcasting, 5,776
transportation, transmission, and distribution systems, whether 5,777
above or below ground. "Business fixture" also means those 5,778
portions of buildings, structures, and improvements that are 5,779
specially designed, constructed, and used for the business 5,780
conducted in the building, structure, or improvement, including, 5,781
but not limited to, foundations and supports for machinery and 5,782
equipment. "Business fixture" does not include fixtures that are 5,783
139
common to buildings, including, but not limited to, heating, 5,784
ventilation, and air conditioning systems primarily used to 5,785
control the environment for people or animals, tanks, towers, and 5,786
lines for potable water or water for fire control, electrical and 5,787
communication lines, and other fixtures that primarily benefit 5,788
the realty and not the business conducted by the occupant on the 5,789
premises. 5,790
Sec. 5703.052. There is hereby created in the state 5,799
treasury the tax refund fund, from which refunds shall be paid 5,800
for taxes illegally or erroneously assessed or collected, or for 5,801
any other reason overpaid, that are levied by Chapter 4301., 5,802
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 5,803
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36, 5,804
4303.33, 5707.03, 5725.18, 5727.38, AND 5727.81, and former 5,806
sections 5727.27 and 5727.40 of the Revised Code. Refunds for 5,808
fees illegally or erroneously assessed or collected, or for any 5,809
other reason overpaid, that are levied by sections 3734.90 to 5,810
3734.9014 of the Revised Code also shall be paid from the fund. 5,811
However, refunds for taxes levied under section 5739.101 of the 5,812
Revised Code shall not be paid from the tax refund fund, but 5,813
shall be paid as provided in section 5739.104 of the Revised 5,814
Code.
Upon certification by the tax commissioner to the treasurer 5,816
of state of a tax refund, fee refund, or tax credit due, or by 5,817
the superintendent of insurance of a domestic or foreign 5,818
insurance tax refund, the treasurer of state may place the amount 5,819
certified to the credit of the fund. The certified amount 5,820
transferred shall be derived from current receipts of the same 5,821
tax or the fee for which the refund arose or, in the case of a 5,822
tax credit refund, from the current receipts of the taxes levied 5,823
by sections 5739.02 and 5741.02 of the Revised Code. 5,824
If the tax refund arises from a tax payable to the general 5,826
revenue fund, and current receipts from that source are 5,827
inadequate to make the transfer of the amount so certified, the 5,828
140
treasurer of state may transfer such certified amount from 5,829
current receipts of the sales tax levied by section 5739.02 of 5,830
the Revised Code. 5,831
Sec. 5703.053. As used in this section, "postal service" 5,840
means the United States postal service. 5,841
An application to the tax commissioner for a tax refund 5,843
under sections 4307.05, 4307.07, 5727.91, 5728.061, 5735.122, 5,844
5735.13, 5735.14, 5735.141, 5735.142, 5739.07, 5741.10, 5743.05, 5,846
5743.53, 5749.08, and 5753.06 of the Revised Code or division (B) 5,847
of section 5703.05 of the Revised Code, or a fee refunded under 5,848
section 3734.905 of the Revised Code, that is received after the 5,849
last day for filing under such section shall be considered to 5,850
have been filed in a timely manner if: 5,851
(A) The application is delivered by the postal service and 5,853
the earliest postal service postmark on the cover in which the 5,854
application is enclosed is not later than the last day for filing 5,855
the application; 5,856
(B) The application is delivered by the postal service, 5,858
the only postmark on the cover in which the application is 5,859
enclosed was affixed by a private postal meter, the date of that 5,860
postmark is not later than the last day for filing the 5,861
application, and the application is received within seven days of 5,862
such last day; or 5,863
(C) The application is delivered by the postal service, no 5,865
postmark date was affixed to the cover in which the application 5,866
is enclosed or the date of the postmark so affixed is not 5,867
legible, and the application is received within seven days of the 5,868
last day for making the application. 5,869
Sec. 5703.14. (A) Any rule adopted by the board of tax 5,878
appeals and any rule of the department of taxation adopted by the 5,879
tax commissioner shall be effective on the tenth day after the 5,880
day on which the rule in final form and in compliance with 5,881
division (B) of this section is filed by the board or the 5,882
commissioner as follows: 5,883
141
(1) Two certified copies of the rule shall be filed with 5,885
both the secretary of state and the director of the legislative 5,886
service commission; 5,887
(2) Two certified copies of the rule shall be filed with 5,889
the joint committee on agency rule review. Division (A)(2) of 5,890
this section does not apply to any rule to which division (H) of 5,891
section 119.03 of the Revised Code does not apply. 5,892
If all copies are not filed on the same day, the rule shall 5,894
be effective on the tenth day after the day on which the latest 5,895
filing is made. If the board or the commissioner in adopting a 5,896
rule designates an effective date that is later than the 5,897
effective date provided for by this division, the rule if filed 5,898
as required by this division shall become effective on the later 5,899
date designated by the board or commissioner. 5,900
(B) The board and commissioner shall file the rule in 5,902
compliance with the following standards and procedures: 5,903
(1) The rule shall be numbered in accordance with the 5,905
numbering system devised by the director for the Ohio 5,906
administrative code. 5,907
(2) The rule shall be prepared and submitted in compliance 5,909
with the rules of the legislative service commission. 5,910
(3) The rule shall clearly state the date on which it is 5,912
to be effective and the date on which it will expire, if known. 5,913
(4) Each rule that amends or rescinds another rule shall 5,915
clearly refer to the rule that is amended or rescinded. Each 5,916
amendment shall fully restate the rule as amended. 5,917
If the director of the legislative service commission or 5,919
his THE DIRECTOR'S designee gives the board or commissioner 5,920
written notice pursuant to section 103.05 of the Revised Code 5,921
that a rule filed by the board or commissioner is not in 5,922
compliance with the rules of the legislative service commission, 5,923
the board or commissioner shall within thirty days after receipt 5,924
of the notice conform the rule to the rules of the legislative 5,925
service commission as directed in the notice. 5,926
142
All rules of the department and board filed pursuant to 5,928
division (A)(1) of this section shall be recorded by the 5,929
secretary of state and the director under the name of the 5,930
department or board and shall be numbered in accordance with the 5,931
numbering system devised by the director. The secretary of state 5,932
and the director shall preserve the rules in an accessible 5,933
manner. Each such rule shall be a public record open to public 5,934
inspection and may be lent to any law publishing company that 5,935
wishes to reproduce it. Each such rule shall also be made 5,936
available to interested parties upon request directed to the 5,937
department. 5,938
(C) Applications for review of any rule adopted and 5,940
promulgated by the commissioner may be filed with the board by 5,941
any person who has been or may be injured by the operation of the 5,942
rule. The appeal may be taken at any time after the rule is 5,943
filed with the secretary of the state, the director of the 5,944
legislative service commission, and, if applicable, the joint 5,945
committee on agency rule review. Failure to file an appeal does 5,946
not preclude any person from seeking any other remedy against the 5,947
application of the rule to him THE PERSON. The applications 5,948
shall set forth, or have attached thereto and incorporated by 5,949
reference, a true copy of the rule, and shall allege that the 5,950
rule complained of is unreasonable and shall state the grounds 5,951
upon which the allegation is based. Upon the filing of the 5,952
application, the board shall notify the commissioner of the 5,953
filing of the application, fix a time for hearing the 5,954
application, notify the commissioner and the applicant of the 5,955
time for the hearing, and afford both an opportunity to be heard. 5,956
The appellant, the tax commissioner, and any other interested 5,957
persons that the board permits, may introduce evidence. The 5,958
burden of proof to show that the rule is unreasonable shall be 5,959
upon the appellant. After the hearing, the board shall determine 5,960
whether the rule complained of is reasonable or unreasonable. A 5,961
determination that the rule complained of is unreasonable shall 5,962
143
require a majority vote of the three members of the board, and 5,963
the reasons for the determination shall be entered on the journal 5,964
of the board. 5,965
Upon determining that the rule complained of is 5,967
unreasonable, the board shall file copies of its determination as 5,968
follows: 5,969
(1) Two certified copies of the determination shall be 5,971
filed with both the secretary of state and the director of the 5,972
legislative service commission, who shall note the date of their 5,973
receipt of the certified copies conspicuously in their files of 5,974
the rules of the department; 5,975
(2) Two certified copies of the determination shall be 5,977
filed with the joint committee on agency rule review. Division 5,978
(C)(2) of this section does not apply to any rule to which 5,979
division (H) of section 119.03 of the Revised Code does not 5,980
apply. 5,981
On the tenth day after the copies of the determination have 5,983
been received by the secretary of state, the director, and, if 5,984
applicable, the joint committee, the rule referred to in the 5,985
determination shall cease to be in effect. If all copies of the 5,986
determination are not filed on the same day, the rule shall 5,987
remain in effect until the tenth day after the day on which the 5,988
latest filing is made. This section does not apply to licenses 5,989
issued under sections 5735.02, 5739.17, and 5743.15 of the 5,990
Revised Code, which shall be governed by sections 119.01 to 5,991
119.13 of the Revised Code. 5,992
The board is not required to hear an application for the 5,994
review of any rule where the grounds of the allegation that the 5,995
rule is unreasonable have been previously contained in an 5,996
application for review and have been previously heard and passed 5,997
upon by the board. 5,998
(D) This section does not apply to the adoption of any 6,000
rule, or to the amendment or rescission of any rule by the 6,001
DIRECTOR OF DEVELOPMENT IN CONSULTATION WITH THE tax commissioner 6,003
144
under division (C)(1) or (2) of section 5117.02 of the Revised 6,004
Code.
(E) As used in this section, "substantive revision" has 6,006
the same meaning as in division (J) of section 119.01 of the 6,007
Revised Code. 6,008
Sec. 5705.34. When the budget commission has completed its 6,017
work with respect to a tax budget, it shall certify its action to 6,018
the taxing authority, together with an estimate by the county 6,020
auditor of the rate of each tax necessary to be levied by the 6,021
taxing authority within its subdivision or taxing unit, and what
part thereof is in excess of, and what part within, the ten-mill 6,022
tax limitation. The certification shall also indicate the date 6,023
on which each tax levied by the taxing authority will expire. 6,024
Each
IF A TAXING AUTHORITY LEVIES A TAX FOR A FIXED SUM OF MONEY 6,026
OR TO PAY DEBT CHARGES FOR THE TAX YEAR FOR WHICH THE TAX BUDGET 6,027
IS PREPARED, AND THE TAX WAS LEVIED IN TAX YEAR 1998, THE COUNTY 6,028
AUDITOR, WHEN ESTIMATING THE RATE AT WHICH THE TAX SHALL BE 6,029
LEVIED IN THE CURRENT YEAR, SHALL ESTIMATE THE RATE NECESSARY TO 6,030
RAISE THE REQUIRED SUM LESS THE ESTIMATED AMOUNT OF ANY PAYMENTS
MADE FOR THE TAX YEAR TO A TAXING UNIT UNDER SECTIONS 5727.85 AND 6,031
5727.86 OF THE REVISED CODE. THE ESTIMATED RATE SHALL BE THE 6,032
RATE OF THE LEVY THAT THE BUDGET COMMISSION CERTIFIES WITH ITS 6,033
ACTION UNDER THIS SECTION. 6,034
EACH taxing authority, by ordinance or resolution, shall 6,036
authorize the necessary tax levies and certify them to the county 6,037
auditor before the first day of October in each year, or at such 6,038
later date as is approved by the tax commissioner, except that 6,039
the certification by a board of education shall be made by the 6,040
first day of April or at such later date as is approved by the 6,041
commissioner, and except that a township board of park
commissioners that is appointed by the board of township trustees 6,042
and oversees a township park district that contains only 6,043
unincorporated territory shall authorize only those taxes 6,044
145
approved by, and only at the rate approved by, the board of 6,045
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 6,046
duplicate of the current year is approved by the electors of the 6,047
subdivision under sections 5705.01 to 5705.47 of the Revised 6,048
Code; if the rate of a school district tax is increased due to 6,049
the repeal of a school district income tax and property tax rate 6,050
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 6,051
the principal of bonds payable from a tax levy for the ensuing 6,052
fiscal year are issued or sold and in the process of delivery, 6,053
the budget commission shall reconsider and revise its action on 6,054
the budget of the subdivision or school library district for 6,055
whose benefit the tax is to be levied after the returns of such
election are fully canvassed, or after the issuance or sale of 6,056
such refunding bonds is certified to it. 6,057
Sec. 5727.01. As used in this chapter: 6,066
(A) "Public utility" means each person referred to as a 6,068
telephone company, telegraph company, electric company, natural 6,069
gas company, pipe-line company, water-works company, water 6,070
transportation company, heating company, rural electric company, 6,071
or railroad company. 6,072
(B) "Gross receipts" means the entire receipts for 6,074
business done by any person from operation as a public utility, 6,075
or incidental thereto, or in connection therewith, INCLUDING ANY 6,076
RECEIPTS RECEIVED UNDER CHAPTER 4928. OF THE REVISED CODE. The 6,077
gross receipts for business done by an incorporated company 6,078
engaged in operation as a public utility includes the entire 6,079
receipts for business done by such company under the exercise of 6,080
its corporate powers, whether from the operation as a public 6,081
utility or from any other business. 6,082
(C) "Rural electric company" means any nonprofit 6,084
corporation, organization, association, or cooperative engaged in 6,085
the business of supplying electricity to its members or persons 6,086
146
owning an interest therein in an area the major portion of which 6,087
is rural. 6,088
(D) Any person: 6,090
(1) Is a telegraph company when engaged in the business of 6,092
transmitting telegraphic messages to, from, through, or in this 6,093
state; 6,094
(2) Is a telephone company when primarily engaged in the 6,096
business of providing local exchange telephone service, excluding 6,097
cellular radio service, in this state; 6,098
(3) Is an electric company when engaged in the business of 6,100
generating, transmitting, or distributing electricity within this 6,101
state for use by others, BUT EXCLUDES A RURAL ELECTRIC COMPANY; 6,102
(4) Is a natural gas company when engaged in the business 6,104
of supplying natural gas for lighting, power, or heating purposes 6,105
to consumers within this state; 6,106
(5) Is a pipe-line company when engaged in the business of 6,108
transporting natural gas, oil, or coal or its derivatives through 6,109
pipes or tubing, either wholly or partially within this state; 6,110
(6) Is a water-works company when engaged in the business 6,112
of supplying water through pipes or tubing, or in a similar 6,113
manner, to consumers within this state; 6,114
(7) Is a water transportation company when engaged in the 6,116
transportation of passengers or property, by boat or other 6,117
watercraft, over any waterway, whether natural or artificial, 6,118
from one point within this state to another point within this 6,119
state, or between points within this state and points without 6,120
this state; 6,121
(8) Is a heating company when engaged in the business of 6,123
supplying water, steam, or air through pipes or tubing to 6,124
consumers within this state for heating purposes; 6,125
(9) Is a railroad company when engaged in the business of 6,127
owning or operating a railroad either wholly or partially within 6,128
this state on rights-of-way acquired and held exclusively by such 6,130
company, or otherwise, and includes a passenger, street, 6,131
147
suburban, or interurban railroad company. 6,132
As used in division (D)(2) of this section, "local exchange 6,134
telephone service" means making available or furnishing access 6,135
and a dial tone to all persons within a local calling area for 6,136
use in originating and receiving voice grade communications over 6,137
a switched network operated by the provider of the service within 6,138
the area and for gaining access to other telecommunication 6,139
services. 6,140
(E) "Taxable property" means the property required by 6,142
section 5727.06 of the Revised Code to be assessed by the tax 6,143
commissioner, but does not include either of the following: 6,144
(1) An item of tangible personal property that for the 6,146
period subsequent to the effective date of an air, water, or 6,147
noise pollution control certificate and continuing so long as the 6,148
certificate is in force, has been certified as part of the 6,149
pollution control facility with respect to which the certificate 6,150
has been issued; 6,151
(2) An item of tangible personal property that during the 6,153
construction of a plant or facility and until the item is first 6,154
capable of operation, whether actually used in operation or not, 6,155
is incorporated in or being held exclusively for incorporation in 6,156
that plant or facility. 6,157
(F) "Taxing district" means a municipal corporation or 6,159
township, or part thereof, in which the aggregate rate of 6,160
taxation is uniform. 6,161
(G) "Telecommunications service" has the same meaning as 6,163
in division (AA) of section 5739.01 of the Revised Code. 6,164
(H) "Interexchange telecommunications company" means a 6,166
person that is engaged in the business of transmitting telephonic 6,167
messages to, from, through, or in this state, but that is not a 6,168
telephone company. 6,169
(I) "Sale and leaseback transaction" means a transaction 6,171
in which a public utility or interexchange telecommunications 6,172
company sells any tangible personal property to a person other 6,173
148
than a public utility or interexchange telecommunications company 6,174
and within the same calendar year leases that property back from 6,175
the buyer. 6,176
(J) "PRODUCTION EQUIPMENT" MEANS ALL TAXABLE STEAM, 6,178
NUCLEAR, HYDRAULIC, AND OTHER PRODUCTION PLANT EQUIPMENT USED TO 6,179
GENERATE ELECTRICITY. FOR TAX YEARS PRIOR TO 2001, "PRODUCTION 6,180
EQUIPMENT" INCLUDES TAXABLE STATION EQUIPMENT THAT IS LOCATED AT 6,181
A PRODUCTION PLANT. 6,182
(K) "TAX YEAR" MEANS THE YEAR FOR WHICH PROPERTY OR GROSS 6,184
RECEIPTS ARE SUBJECT TO ASSESSMENT UNDER THIS CHAPTER. THIS 6,185
DIVISION DOES NOT LIMIT THE TAX COMMISSIONER'S ABILITY TO ASSESS 6,186
AND VALUE PROPERTY OR GROSS RECEIPTS OUTSIDE THE TAX YEAR. 6,187
(L) "COMBINED COMPANY" MEANS ANY PERSON ENGAGED IN THE 6,189
ACTIVITY OF AN ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY THAT IS 6,190
ALSO ENGAGED IN THE ACTIVITY OF A HEATING COMPANY OR A NATURAL 6,191
GAS COMPANY, OR ANY COMBINATION THEREOF. 6,192
Sec. 5727.02. As used in this chapter, "public utility," 6,201
"electric company," "natural gas company," "pipe-line company," 6,202
"water-works company," "water transportation company" or "heating 6,203
company" does not include ANY OF THE FOLLOWING: 6,204
(A) Any person that is engaged in some other primary 6,206
business to which the supplying of electricity, heat, natural 6,207
gas, water, water transportation, steam, or air to others is 6,208
incidental; or. AS USED IN THIS DIVISION, "SUPPLYING OF 6,209
ELECTRICITY" MEANS GENERATING, TRANSMITTING, OR DISTRIBUTING 6,210
ELECTRICITY.
(B) Any person that supplies electricity, natural gas, 6,212
water, water transportation, steam, or air to its tenants, 6,213
whether for a separate charge or otherwise; or 6,214
(C) Any person whose primary business in this state 6,216
consists of producing, refining, or marketing petroleum or its 6,217
products. 6,218
Sec. 5727.03. (A) A COMBINED COMPANY SHALL FILE A 6,220
SEPARATE REPORT UNDER SECTION 5727.08 OF THE REVISED CODE FOR 6,222
149
EACH LISTED ACTIVITY OF A COMBINED COMPANY. THE TAX COMMISSIONER 6,224
SHALL SEPARATELY VALUE, APPORTION, AND ASSESS THE COMPANY'S 6,225
PROPERTY. DIVISIONS (B)(1), (2), AND (3) OF THIS SECTION SHALL 6,226
BE USED TO DETERMINE THE TAXABLE PROPERTY THAT CANNOT DIRECTLY BE 6,227
ATTRIBUTED TO PROVIDING ONE OF THE LISTED ACTIVITIES OF A 6,228
COMBINED COMPANY. BEGINNING WITH THE PUBLIC UTILITY EXCISE TAX 6,230
ASSESSED BY THE TAX COMMISSIONER ON OR BEFORE THE FIRST MONDAY IN 6,231
NOVEMBER 2002, DIVISION (C) OF THIS SECTION SHALL BE USED BY THE 6,233
TAX COMMISSIONER TO SEPARATE THE GROSS RECEIPTS OF A COMBINED 6,234
COMPANY ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A 6,235
RURAL ELECTRIC COMPANY.
(B)(1) THE TAXABLE PROPERTY TO ATTRIBUTE TO AN ELECTRIC 6,237
COMPANY OR A RURAL ELECTRIC COMPANY ACTIVITY SHALL BE THE TAXABLE 6,238
COST OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED TO A 6,239
LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED BY A NUMERATOR 6,240
THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE DIRECTLY 6,241
ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A RURAL 6,242
ELECTRIC COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE 6,243
COST THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES 6,244
OF A COMBINED COMPANY. 6,245
(2) THE TAXABLE PROPERTY TO ATTRIBUTE TO A HEATING COMPANY 6,247
SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE DIRECTLY 6,248
ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED 6,249
BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE 6,250
DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A HEATING COMPANY AND A 6,251
DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST THAT CAN BE 6,252
DIRECTLY ATTRIBUTED TO ALL LISTED ACTIVITIES OF A COMBINED 6,253
COMPANY.
(3) THE TAXABLE PROPERTY TO ATTRIBUTE TO A NATURAL GAS 6,255
COMPANY SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE 6,256
DIRECTLY ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY 6,257
MULTIPLIED BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY 6,258
THAT CAN BE DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A NATURAL GAS 6,259
COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST 6,260
150
THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES OF A 6,261
COMBINED COMPANY. 6,262
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THE REVISED 6,264
CODE, A COMBINED COMPANY SHALL CONTINUE TO BE SUBJECT TO THE 6,265
EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE. FROM 6,266
THE REPORT FILED BY A COMBINED COMPANY UNDER SECTION 5727.31 OF 6,267
THE REVISED CODE, THE TAX COMMISSIONER SHALL EXCLUDE THE TAXABLE 6,269
GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO THE ACTIVITY OF AN 6,270
ELECTRIC COMPANY OR A RURAL ELECTRIC COMPANY. IN ADDITION, THE 6,271
TAX COMMISSIONER SHALL EXCLUDE THE PORTION OF TAXABLE GROSS 6,272
RECEIPTS THAT CANNOT BE ATTRIBUTED TO A LISTED COMBINED PUBLIC 6,273
UTILITY ACTIVITY OR ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO 6,274
THE EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE BY 6,275
MULTIPLYING THOSE TAXABLE GROSS RECEIPTS BY A NUMERATOR THAT IS
THE TAXABLE GROSS RECEIPTS THAT CAN BE ATTRIBUTED TO AN ELECTRIC
COMPANY OR A RURAL ELECTRIC COMPANY ACTIVITY, AND A DENOMINATOR 6,276
THAT IS THE SUM OF THE TAXABLE GROSS RECEIPTS THAT CAN BE 6,277
DIRECTLY ATTRIBUTED TO A LISTED COMBINED COMPANY ACTIVITY OR 6,278
ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO THE EXCISE TAX IMPOSED 6,279
BY SECTION 5727.30 OF THE REVISED CODE. FOR PURPOSES OF 6,280
DETERMINING THE TAXABLE GROSS RECEIPTS FOR PROVIDING ELECTRIC 6,281
COMPANY OR RURAL ELECTRIC COMPANY SERVICE UNDER THIS DIVISION, 6,282
THE TAXABLE GROSS RECEIPTS AS REPORTED UNDER SECTION 5727.32 OF 6,283
THE REVISED CODE AND DETERMINED UNDER SECTION 5727.33 OF THE 6,284
REVISED CODE, PRIOR TO THE AMENDMENT OF THOSE SECTIONS BY 6,285
SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd GENERAL ASSEMBLY, SHALL 6,289
BE USED.
Sec. 5727.05. This chapter does SECTIONS 5727.01 TO 6,298
5727.61 OF THE REVISED CODE DO not apply to either of the 6,299
following:
(A) Nonprofit corporations as defined in division (C) of 6,301
section 1702.01 of the Revised Code that are engaged exclusively 6,302
in the treatment, distribution, and sale of water to consumers; 6,303
(B) Municipal corporations within this state. 6,305
151
Sec. 5727.06. (A) Except as otherwise provided by law, 6,314
the following constitutes the taxable property of a public 6,315
utility or interexchange telecommunications company that shall be 6,316
assessed by the tax commissioner: 6,317
(1) In the case of a railroad company, all real property 6,319
and tangible personal property owned or operated by the railroad 6,320
company in this state on the thirty-first day of December of the 6,321
preceding year; 6,322
(2) In the case of a water transportation company, all 6,324
tangible personal property, except watercraft, owned or operated 6,325
by the water transportation company in this state on the 6,326
thirty-first day of December of the preceding year and all 6,327
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year; 6,328
(3) In the case of all other public utilities and 6,330
interexchange telecommunications companies, all tangible personal 6,331
property that on the thirty-first day of December of the 6,332
preceding year was both located in this state and: 6,333
(a) Owned by the public utility or interexchange 6,335
telecommunications company; or 6,336
(b) Leased by the public utility or interexchange 6,338
telecommunications company under a sale and leaseback 6,339
transaction. 6,340
(B) In the case of an interexchange telecommunications 6,342
company, all taxable property shall be subject to the provisions 6,343
of this chapter and shall be valued by the commissioner in 6,344
accordance with division (B)(A) of section 5727.11 of the Revised 6,346
Code and assessed by the commissioner in accordance with division 6,347
(G) of section 5727.111 of the Revised Code. A person described 6,349
by this division shall file the report required by section 6,350
5727.08 of the Revised Code. Persons described in this division 6,351
shall not be considered taxpayers, as defined in division (B) of 6,352
section 5711.01 of the Revised Code, and shall not be required to 6,353
file a return and list their taxable property under any provision 6,354
152
of Chapter 5711. of the Revised Code. 6,355
(C) The lien of the state for taxes levied each year on 6,357
the real and personal property of public utilities and 6,358
interexchange telecommunications companies shall attach thereto 6,359
on the thirty-first day of December of the preceding year. 6,360
(D) Property that is required by division (A)(3)(b) of 6,362
this section to be assessed by the tax commissioner under this 6,363
chapter shall not be listed by the owner of the property under 6,364
Chapter 5711. of the Revised Code. 6,365
(E) The tax commissioner may adopt rules governing the 6,367
listing of the taxable property of public utilities and 6,368
interexchange telecommunications companies and the determination 6,369
of true value. 6,370
Sec. 5727.11. (A) As used in this section, section 6,379
5727.111, and division (C) of section 5727.15 of the Revised 6,380
Code, "production equipment" means all taxable steam, nuclear, 6,381
hydraulic, and other production plant equipment, and all taxable 6,382
station equipment that is located at a production plant. 6,383
(B) Except as provided in divisions (B), (C), (D), (E), 6,386
and (G)(F) of this section, the true value of all taxable 6,388
property required by division (A)(2) or (3) of section 5727.06 of 6,390
the Revised Code to be assessed by the tax commissioner shall be 6,391
determined by a method of valuation using cost as capitalized on 6,392
the public utility's books and records less composite annual 6,393
allowances as prescribed by the commissioner. If the 6,394
commissioner finds that application of this method will not 6,395
result in the determination of true value of the public utility's 6,396
taxable property, he THE COMMISSIONER may use another method of 6,398
valuation. The cost of property subject to a sale and leaseback 6,399
transaction is the cost of the property as capitalized on the 6,400
books and records of the public utility owning the property 6,401
immediately prior to the sale and leaseback transaction.
(C)(B) The true value of current gas stored underground is 6,403
the cost of that gas shown on the books and records of the public 6,404
153
utility on the thirty-first day of December of the preceding 6,405
year. 6,406
(D)(C) The true value of noncurrent gas stored underground 6,408
is thirty-five per cent of the cost of that gas shown on the 6,409
books and records of the public utility on the thirty-first day 6,410
of December of the preceding year. 6,411
(E) The (D)(1) EXCEPT AS PROVIDED IN DIVISION (D)(2) OF 6,414
THIS SECTION, THE true value of the production equipment of an 6,415
electric company and the true value of all taxable property of a 6,416
rural electric company is the equipment's or property's cost as 6,417
capitalized on the company's books and records less fifty per 6,418
cent of that cost as an allowance for depreciation and 6,419
obsolescence. The cost of equipment or property subject to a 6,420
sale and leaseback transaction is the cost of the property as 6,421
capitalized on the books and records of the public utility owning 6,422
the equipment or property immediately prior to the sale and 6,423
leaseback transaction. 6,424
(2) THE TRUE VALUE OF THE PRODUCTION EQUIPMENT OF AN 6,426
ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY PURCHASED, 6,427
TRANSFERRED, OR PLACED INTO SERVICE AFTER THE EFFECTIVE DATE OF 6,429
THIS AMENDMENT IS THE PURCHASE PRICE OF THE EQUIPMENT AS 6,430
CAPITALIZED ON THE COMPANY'S BOOKS AND RECORDS LESS COMPOSITE 6,431
ANNUAL ALLOWANCES AS PRESCRIBED BY THE TAX COMMISSIONER. 6,432
(F)(E) The true value of taxable property described in 6,434
division (A)(2) or (3) of section 5727.06 of the Revised Code 6,435
shall not include the allowance for funds used during 6,436
construction or interest during construction which THAT has been 6,437
capitalized on the public utility's books and records as part of 6,439
the total cost of the taxable property. THIS DIVISION SHALL NOT 6,440
APPLY TO THE TAXABLE PROPERTY OF AN ELECTRIC COMPANY OR A RURAL 6,441
ELECTRIC COMPANY, EXCLUDING TRANSMISSION AND DISTRIBUTION 6,442
PROPERTY, FIRST PLACED INTO SERVICE AFTER DECEMBER 31, 2000, OR 6,443
TO THE TAXABLE PROPERTY A PERSON PURCHASES, WHICH INCLUDES 6,444
TRANSFERS, IF THAT PROPERTY WAS USED IN BUSINESS BY THE SELLER
154
PRIOR TO THE PURCHASE. 6,445
(G)(F) The true value of watercraft owned or operated by a 6,447
water transportation company shall be determined by multiplying 6,449
the true value of the watercraft as determined under division 6,450
(B)(A) of this section by a fraction, the numerator of which is 6,452
the number of revenue-earning miles traveled by the watercraft in
the waters of this state and the denominator of which is the 6,453
number of revenue-earning miles traveled by the watercraft in all 6,454
waters.
(G) THE COST OF PROPERTY SUBJECT TO A SALE AND LEASEBACK 6,456
TRANSACTION IS THE COST OF THE PROPERTY AS CAPITALIZED ON THE 6,457
BOOKS AND RECORDS OF THE PUBLIC UTILITY OWNING THE PROPERTY 6,459
IMMEDIATELY PRIOR TO THE SALE AND LEASEBACK TRANSACTION.
Sec. 5727.111. The taxable property of each public 6,468
utility, except a railroad company, and of each interexchange 6,469
telecommunications company shall be assessed at the following 6,470
percentages of true value: 6,471
(A) Fifty per cent in the case OF THE TAXABLE TRANSMISSION 6,473
AND DISTRIBUTION PROPERTY of a rural electric company, AND 6,475
TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE PROPERTY; 6,476
(B) In the case of a telephone or telegraph company, the 6,479
percentage provided under division (E) of section 5711.22 of the 6,480
Revised Code TWENTY-FIVE PER CENT for taxable property first 6,482
subject to taxation in this state for tax year 1995 or 6,483
thereafter, and eighty-eight per cent for all other taxable
property;
(C) Eighty-eight per cent in the case of a natural gas or 6,485
pipe-line company; 6,486
(D) Eighty-eight per cent in the case of a water-works or 6,488
heating company; 6,489
(E) One hundred per cent in the case of the taxable 6,491
production equipment of an electric company; 6,492
(F) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION 6,495
(E)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of all 6,496
155
taxable personal THE TAXABLE TRANSMISSION AND DISTRIBUTION 6,497
property of an electric company, other than its production 6,499
equipment AND TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE
PROPERTY; 6,500
(2) PROPERTY LISTED AND ASSESSED UNDER DIVISIONS (B)(1) 6,502
AND (2) OF SECTION 5711.22 OF THE REVISED CODE SHALL CONTINUE TO 6,504
BE ASSESSED AT ONE HUNDRED PER CENT FOR PRODUCTION EQUIPMENT AND
EIGHTY-EIGHT PER CENT FOR ALL OTHER TAXABLE PROPERTY UNTIL 6,505
JANUARY 1, 2002. 6,506
(G) The percentage provided under division (E) of section 6,509
5711.22 of the Revised Code (F) TWENTY-FIVE PER CENT in the case 6,510
of an interexchange telecommunications company; 6,512
(H)(G) Twenty-five per cent in the case of a water 6,514
transportation company. 6,515
Sec. 5727.15. When all the taxable property of a public 6,524
utility is located in one taxing district, the tax commissioner 6,525
shall apportion the total taxable value thereof to that taxing 6,526
district. 6,527
When taxable property of a public utility is located in 6,529
more than one taxing district, the commissioner shall apportion 6,530
the total taxable value thereof among the taxing districts as 6,531
follows: 6,532
(A)(1) In the case of a telegraph, interexchange 6,534
telecommunications, or telephone company that owns miles of wire 6,535
in this state, the value apportioned to each taxing district 6,537
shall be the same percentage of the total value apportioned to 6,538
all taxing districts as the miles of wire owned by the company 6,539
within the taxing district are to the total miles of wire owned 6,540
by the company within this state;
(2) In the case of a telegraph, interexchange 6,542
telecommunications, or telephone company that does not own miles 6,543
of wire in this state, the value apportioned to each taxing 6,544
district shall be the same percentage of the total value 6,545
apportioned to all taxing districts as the cost of the taxable
156
property physically located in the taxing district is of the 6,546
total cost of all taxable property physically located in this 6,547
state.
(B) In the case of a railroad company: 6,549
(1) The taxable value of real and personal property not 6,551
used in railroad operations shall be apportioned according to its 6,552
situs; 6,553
(2) The taxable value of personal property used in 6,555
railroad operations shall be apportioned to each taxing district 6,556
in proportion to the miles of track and trackage rights, weighted 6,557
to reflect the relative use of such personal property in each 6,558
taxing district; 6,559
(3) The taxable value of real property used in railroad 6,561
operations shall be apportioned to each taxing district in 6,562
proportion to its relative value in each taxing district. 6,563
(C) In the case of an electric company: 6,565
(1) Seventy per cent of the THE TAXABLE value of all 6,567
production equipment and of all station equipment that is not 6,568
production equipment shall be apportioned to the taxing district 6,569
in which such property is physically located; and 6,570
(2) The remaining value of such property, together with 6,572
the value of all other taxable PERSONAL property, shall be 6,573
apportioned to each taxing district in the per cent PROPORTION 6,575
that the cost of all transmission and distribution THE TAXABLE 6,577
PERSONAL property physically located in the EACH taxing district 6,579
is of the total cost of all transmission and distribution TAXABLE 6,580
PERSONAL property physically located in this state. 6,581
(3) If an electric company's taxable value for the current 6,583
year includes the value of any production equipment at a plant at 6,584
which the initial cost of the plant's production equipment 6,585
exceeded one billion dollars, then prior to making the 6,586
apportionments required for that company by divisions (C)(1) and 6,587
(2) of this section, the tax commissioner shall do the following: 6,588
(a) Subtract four hundred twenty million dollars from the 6,590
157
total taxable value of the production equipment at that plant for 6,591
the current tax year. 6,592
(b) Multiply the difference thus obtained by a fraction, 6,594
the numerator of which is the portion of the taxable value of 6,595
that plant's production equipment included in the company's total 6,596
value for the current tax year, and the denominator of which is 6,597
the total taxable value of such equipment included in the total 6,598
taxable value of all electric companies for such year. 6,599
(c) Apportion the product thus obtained to taxing 6,601
districts in the manner prescribed in division (C)(2) of this 6,602
section. 6,603
(d) Deduct the amounts so apportioned from the taxable 6,605
value of the company's production equipment at the plant, prior 6,606
to making the apportionments required by divisions (C)(1) and (2) 6,607
of this section. 6,608
For purposes of division (C) of this section, "initial 6,610
cost" applies only to production equipment of plants placed in 6,611
commercial operation on or after January 1, 1987, and means the 6,612
cost of all production equipment at a plant for the first year 6,613
the plant's equipment was subject to taxation. 6,614
(D) In the case of all other public utilities, the value 6,616
of the property to be apportioned shall be apportioned to each 6,617
taxing district in proportion to the entire value of such 6,618
property within this state. 6,619
Sec. 5727.30. Each public utility, except ELECTRIC 6,628
COMPANIES, RURAL ELECTRIC COMPANIES, AND railroad companies, 6,629
shall be subject to an annual excise tax, as provided by sections 6,631
5727.31 to 5727.62 of the Revised Code, for the privilege of 6,632
owning property in this state or doing business in this state 6,633
during the twelve-month period next succeeding the period upon 6,634
which the tax is based. The tax shall be imposed against each
such public utility which THAT, on the first day of such 6,636
twelve-month period, owns property in this state or is doing 6,638
business in this state, and the lien for the tax, including any 6,640
158
penalties and interest accruing thereon, shall attach on such day 6,641
to the property of the public utility in this state.
Sec. 5727.31. (A) Each public utility, except railroad 6,650
companies, doing business or owning property in this state shall 6,651
SUBJECT TO THE TAX IMPOSED UNDER SECTION 5727.30 OF THE REVISED 6,652
CODE, annually, on or before the first day of August, SHALL file 6,653
with the tax commissioner a statement in such form as the 6,654
commissioner prescribes. 6,655
(B)(1) Annually, on or before the fifteenth day of October 6,657
of the current year, each public utility subject to the excise 6,658
taxes levied by this chapter whose estimated excise taxes for the 6,659
current year as based upon the statement required to be filed in 6,660
that year by division (A) of this section are, in the case of a 6,661
public utility other than a natural gas company, one thousand 6,662
dollars or more, or are, in the case of a natural gas company, 6,663
three hundred twenty-five thousand dollars or more, shall file 6,664
with the treasurer of state a report, in such form as the tax 6,665
commissioner prescribes, showing the amount of excise tax 6,666
estimated to be charged or levied pursuant to law for the current 6,667
year upon the basis of such annual statement, and shall remit a 6,668
portion of the estimated excise taxes shown to be due by the 6,669
report. The portion of the estimated excise taxes due at the 6,670
time the report is filed shall be one-third of its total excise 6,671
taxes estimated to be charged or levied for the current year 6,672
based upon the annual statement filed under division (A) of this 6,673
section. 6,674
(2) Annually, on or before the first day of March and 6,676
June, each public utility subject to the excise taxes levied by 6,677
this chapter whose excise taxes as based upon its last preceding 6,678
annual statement filed under division (A) of this section prior 6,679
to the first day of January were, in the case of a public utility 6,680
other than a natural gas company, one thousand dollars or more, 6,681
or were, in the case of a natural gas company, three hundred 6,682
twenty-five thousand dollars or more, shall file with the 6,683
159
treasurer of state a report, in such form as the tax commissioner 6,684
prescribes, showing the amount of excise tax charged or levied 6,685
pursuant to law upon the basis of such annual statement, and 6,686
shall remit a portion of the excise taxes shown to be due by each 6,687
such report. The portion of the excise taxes due at the time 6,688
each such report is filed shall be one-third of its total excise 6,689
taxes so charged or levied based upon such annual statement. 6,690
(C) Any public utility subject to the excise taxes imposed 6,692
by this chapter SECTION 5727.30 OF THE REVISED CODE whose tax as 6,694
certified under section 5727.38 of the Revised Code in a year 6,695
equals or exceeds the amount specified for that year in section 6,696
5727.311 of the Revised Code shall make the payments required 6,697
under this section in the second ensuing and each succeeding year 6,698
in the manner prescribed by section 5727.311 of the Revised Code, 6,699
except as otherwise prescribed by that section. 6,700
(D)(1) For purposes of this section, a report required to 6,702
be filed under division (B) of this section is considered filed 6,703
when it is received by the treasurer of state. 6,704
(2) For purposes of this section and sections 5727.311 and 6,706
5727.42 of the Revised Code, remittance of an excise tax required 6,707
to be made under this section is considered to be made when the 6,708
remittance is received by the treasurer of state, or when 6,709
credited to an account designated by the treasurer of state for 6,710
the receipt of tax remittances. 6,711
Sec. 5727.311. (A) Any public utility subject to an 6,720
excise tax imposed by this chapter SECTION 5727.30 OF THE REVISED 6,721
CODE whose tax as certified by the tax commissioner under section 6,723
5727.38 of the Revised Code in the year indicated in the 6,724
following schedule equals or exceeds the amount indicated for 6,725
that year in the schedule FIFTY THOUSAND DOLLARS shall make each 6,727
payment required under division (B) of section 5727.31 of the 6,728
Revised Code for the second ensuing and each succeeding year by 6,729
electronic funds transfer as prescribed by division (B) of this 6,730
section. Year for which 6,731
tax was certified 1992 1993 and 6,732
thereafter
Amount of tax $100,000 $50,000 6,733
certified
If the tax certified by the tax commissioner in each of two 6,735
consecutive years beginning with 1993 is less than fifty thousand 6,736
dollars, the public utility is relieved of the requirement to 6,737
remit taxes by electronic funds transfer for the year that next 6,738
follows the second of the consecutive years in which the tax 6,739
certified is less than fifty thousand dollars, and is relieved of 6,740
that requirement for each succeeding year unless the tax 6,741
certified in a subsequent year equals or exceeds fifty thousand 6,742
dollars. The tax commissioner shall notify each public utility 6,743
required to remit taxes by electronic funds transfer of the 6,744
public utility's obligation to do so, shall maintain an updated 6,745
list of those public utilities, and shall timely certify the list 6,746
and any additions thereto or deletions therefrom to the treasurer 6,747
of state. Failure by the tax commissioner to notify a public 6,748
utility subject to this section to remit taxes by electronic 6,749
funds transfer does not relieve the public utility of its 6,750
obligation to remit taxes by electronic funds transfer. 6,751
(B) Public utilities required by this section to remit 6,753
periodic payments by electronic funds transfer shall remit such 6,754
payments to the treasurer of state in the manner prescribed by 6,755
rules adopted by the treasurer OF STATE under section 113.061 of 6,756
the Revised Code. The payment of public utility excise taxes by 6,757
electronic funds transfer does not affect a public utility's 6,758
obligation to file the annual statement and periodic reports in 6,759
the manner and at the times prescribed by section 5727.31 of the 6,760
Revised Code. 6,761
A public utility required by this section to remit taxes by 6,763
electronic funds transfer may apply to the treasurer of state in 6,764
the manner prescribed by the treasurer OF STATE to be excused 6,765
161
from that requirement. The treasurer of state may excuse the 6,766
public utility from remittance by electronic funds transfer for 6,767
good cause shown for the period of time requested by the public 6,768
utility or for a portion of that period. The treasurer OF STATE 6,769
shall notify the tax commissioner and the public utility of the 6,770
treasurer's TREASURER OF STATE'S decision as soon as is 6,771
practicable. 6,772
(C) If a public utility required by this section to remit 6,774
taxes by electronic funds transfer remits those taxes by some 6,775
means other than by electronic funds transfer as prescribed by 6,776
this section and the rules adopted by the treasurer of state, and 6,777
the treasurer OF STATE determines that the failure to remit taxes 6,778
as required was not due to reasonable cause or was due to willful 6,779
neglect, the treasurer OF STATE may impose an additional charge 6,780
on the public utility equal to five per cent of the amount of the 6,781
taxes required to be paid by electronic funds transfer, but not 6,782
to exceed five thousand dollars. Any additional charge imposed 6,783
under this section is in addition to any other penalty or charge 6,784
imposed under this chapter, and shall be considered as revenue 6,785
arising from excise taxes imposed by this chapter. 6,786
No additional charge shall be assessed under this division 6,788
against a public utility that has been notified of its obligation 6,789
to remit taxes under this section and that remits its first two 6,790
tax payments after such notification by some means other than 6,791
electronic funds transfer. The additional charge may be assessed 6,792
upon the remittance of any subsequent tax payment that the public 6,793
utility remits by some means other than electronic funds 6,794
transfer. 6,795
Sec. 5727.32. The statement required by section 5727.31 of 6,804
the Revised Code for the purpose of the public utility excise tax 6,805
shall contain: 6,806
(A) The name of the company; 6,808
(B) The nature of the company, whether a person, 6,810
association, or corporation, and under the laws of what state or 6,811
162
country organized; 6,812
(C) The location of its principal office; 6,814
(D) The name and post-office address of the president, 6,816
secretary, auditor, treasurer, and superintendent or general 6,817
manager; 6,818
(E) The name and post-office address of the chief officer 6,820
or managing agent of the company in this state; 6,821
(F) The amount of the excise taxes paid or to be paid with 6,823
the reports made during the current calendar year as provided by 6,824
section 5727.31 of the Revised Code; 6,825
(G) In the case of telegraph and telephone companies: 6,827
(1) The gross receipts from all sources, whether messages, 6,829
telephone tolls, rentals, or otherwise, for business done within 6,830
this state, including all sums earned or charged, whether 6,831
actually received or not, for the year ending on the thirtieth 6,832
day of June, and the company's proportion of gross receipts for 6,833
business done by it within this state in connection with other 6,834
companies, firms, corporations, persons, or associations, but 6,835
excluding all of the following: 6,836
(a) All of the receipts derived wholly from interstate 6,838
business or business done for or with the federal government; 6,839
(b) The receipts of amounts billed on behalf of other 6,841
entities; 6,842
(c) The receipts from sales to other telephone companies 6,844
for resale; 6,845
(d) For the year ending June 30, 1990, and each subsequent 6,847
year, receipts RECEIPTS from sales to providers of 6,848
telecommunications service for resale, receipts from incoming or 6,850
outgoing wide area transmission service or wide area transmission 6,851
type service, including eight hundred or eight-hundred-type 6,852
service, and receipts from private communications service. 6,853
As used in this division, "receipts from sales to other 6,855
telephone companies for resale" and "receipts from sales to 6,856
providers of telecommunications service for resale" include, but 6,857
163
are not limited to, receipts of carrier access charges. "Carrier 6,858
access charges" means compensation paid to the taxpayer telephone 6,859
company by another telephone company or by a provider of 6,860
telecommunications service for the use of the taxpayer's 6,861
facilities to originate or terminate telephone calls or 6,862
telecommunications service. 6,863
(2) The total gross receipts for such period from business 6,865
done within this state. 6,866
(H) In the case of all public utilities, except ELECTRIC 6,868
COMPANIES, RURAL ELECTRIC COMPANIES, telegraph COMPANIES, and 6,870
telephone companies:
(1) The gross receipts of the company, actually received, 6,872
from all sources for business done within this state for the year 6,873
next preceding the first day of May, including the company's 6,874
proportion of gross receipts for business done by it within this 6,875
state in connection with other companies, firms, corporations, 6,876
persons, or associations, but excluding all of the following: 6,877
(a) Receipts from interstate business or business done for 6,879
the federal government; 6,880
(b) Receipts from sales to other public utilities for 6,882
resale, provided such other public utility is required to file a 6,883
statement pursuant to section 5727.31 of the Revised Code; 6,884
(c) For the year ending April 30, 1990, and each 6,886
subsequent year, receipts from the transmission or delivery of 6,887
electricity to or for a rural electric company, provided that the 6,888
electricity that has been so transmitted or delivered is for 6,889
resale by the rural electric company; 6,890
(d) Receipts of an electric company, derived from the 6,892
provision of electricity and other services to a qualified former 6,893
owner of the production facilities which generated the 6,894
electricity from which those receipts were derived. As used in 6,895
this division, a "qualified former owner" means a person who 6,896
meets both of the following conditions: 6,897
(i) On or before October 11, 1991, the person had sold to 6,899
164
an electric company part of the production facility at which the 6,900
electricity is generated, and, for at least twenty years prior to 6,901
that sale, the facility was used to generate electricity, but it 6,902
was not owned in whole or in part during that period by an 6,903
electric company. 6,904
(ii) At the time the electric company provided the 6,906
electricity or other services for which the exclusion is claimed, 6,907
the person, or a successor or assign of the person, owned not 6,908
less than a twenty per cent ownership of the production facility 6,909
and the rights to not less than twenty per cent of the production 6,910
of that facility; and the person, or a successor or assign of the 6,911
person, engaged primarily in a business other than providing 6,912
electricity to others. 6,913
(e) Receipts of a natural gas company of amounts billed on 6,915
behalf of other entities. Transportation and billing and 6,916
collection fees charged to other entities shall be included in 6,917
the gross receipts of a natural gas company. 6,918
(2) The total gross receipts of such company for such 6,920
period in this state from business done within the state. 6,921
The reports required by section 5727.31 of the Revised Code 6,923
shall contain: 6,924
(a) The name and principal mailing address of the company; 6,926
(b) The total amount of the gross receipts excise taxes 6,928
charged or levied as based upon its last preceding annual 6,929
statement filed prior to the first day of January of the year in 6,930
which such report is filed; 6,931
(c) The amount of the excise taxes due with the report as 6,933
provided by section 5727.31 of the Revised Code. 6,934
Sec. 5727.33. (A) For the purpose of computing the public 6,943
utility excise tax, the tax commissioner shall ascertain and 6,944
determine the entire gross receipts actually received from all 6,945
sources, excluding the receipts described in divisions (B), (C), 6,946
AND (D), and (E) of this section, of each electric, rural 6,947
electric, natural gas, pipe-line, water-works, heating, and water 6,948
165
transportation company for business done within this state for 6,949
the year ending on the thirtieth day of April, and of each 6,950
telegraph and telephone company for business done within this 6,951
state for the year ending on the thirtieth day of June. 6,952
(B) In ascertaining and determining the gross receipts of 6,954
each of the companies named in this section, the commissioner 6,955
shall exclude all of the following: 6,956
(1) All receipts derived wholly from interstate business; 6,958
(2) All receipts derived wholly from business done for or 6,960
with the federal government; 6,961
(3) For the year ending April 30, 1990, and each 6,963
subsequent year, all receipts derived wholly from the 6,964
transmission or delivery of electricity to or for a rural 6,965
electric company, provided that the electricity that has been so 6,966
transmitted or delivered is for resale by the rural electric 6,967
company; 6,968
(4) All receipts from the sale of merchandise; 6,970
(5)(4) All receipts from sales to other public utilities, 6,972
except railroad, telegraph, and telephone companies, for resale, 6,973
provided the other public utility is required to file a statement 6,974
pursuant to section 5727.31 of the Revised Code. 6,975
(C) In ascertaining and determining the gross receipts of 6,977
a telephone company, the commissioner shall exclude all of the 6,979
following: 6,980
(1) For the year ending June 30, 1988, and each subsequent 6,982
year, receipts RECEIPTS of amounts billed on behalf of other 6,983
entities; 6,984
(2) For the year ending June 30, 1988, and each subsequent 6,986
year, receipts RECEIPTS from sales to other telephone companies 6,987
for resale, as defined in division (G) of section 5727.32 of the 6,988
Revised Code; 6,989
(3) For the year ending June 30, 1990, and each subsequent 6,991
year, receipts RECEIPTS from incoming or outgoing wide area 6,992
transmission service or wide area transmission type service, 6,994
166
including eight hundred or eight-hundred-type service; 6,995
(4) For the year ending June 30, 1990, and each subsequent 6,997
year, receipts RECEIPTS from private communications service as 6,998
described in division (AA)(2) of section 5739.01 of the Revised 7,000
Code;
(5) For the year ending June 30, 1990, and each subsequent 7,002
year, receipts RECEIPTS from sales to providers of 7,003
telecommunications service for resale, as defined in division (G) 7,005
of section 5727.32 of the Revised Code. 7,006
(D) In ascertaining and determining the gross receipts of 7,008
an electric company, the commissioner shall exclude receipts 7,009
derived from the provision of electricity and other services to a 7,010
qualified former owner of the production facilities which 7,011
generated the electricity from which those receipts were derived. 7,012
As used in this division, a "qualified former owner" means a 7,013
person who meets both of the following conditions: 7,014
(1) On or before October 11, 1991, the person had sold to 7,016
an electric company part of the production facility at which the 7,017
electricity is generated, and, for at least twenty years prior to 7,018
that sale, the facility was used to generate electricity, but it 7,019
was not owned in whole or in part during that period by an 7,020
electric company. 7,021
(2) At the time the electric company provided the 7,023
electricity or other services for which the exclusion is claimed, 7,024
the person, or a successor or assign of the person, owned not 7,025
less than a twenty per cent ownership of the production facility 7,026
and the rights to not less than twenty per cent of the production 7,027
of that facility. 7,028
(E) In ascertaining and determining the gross receipts of 7,030
a natural gas company, the commissioner shall exclude receipts of 7,031
amounts billed on behalf of other entities. Transportation and 7,032
billing and collection fees charged to other entities shall be 7,033
included in the gross receipts of a natural gas company. 7,034
The amount ascertained by the commissioner under this 7,036
167
section, less a deduction of twenty-five thousand dollars, shall 7,037
be the gross receipts of such companies for business done within 7,038
this state for that year. 7,039
Sec. 5727.38. On or before the first Monday of November, 7,048
annually, the tax commissioner shall assess an excise tax against 7,049
each public utility, except ELECTRIC COMPANIES, RURAL ELECTRIC 7,050
COMPANIES, AND railroad companies. The tax shall be computed by 7,051
multiplying the gross receipts as determined by the commissioner 7,052
under section 5727.33 of the Revised Code by six and 7,054
three-fourths per cent in the case of pipe-line companies and
four and three-fourths per cent in the case of all other 7,055
companies. The minimum tax for any such company for owning 7,056
property or doing business in this state shall be ten FIFTY 7,057
dollars. The assessment shall be certified to the taxpayer and 7,059
treasurer of state.
Sec. 5727.42. (A) The treasurer of state shall maintain a 7,068
list of all excise taxes levied and payments made pursuant to 7,069
this chapter THE ANNUAL EXCISE TAX IMPOSED BY SECTION 5727.30 OF 7,071
THE REVISED CODE. The treasurer of state shall collect and the 7,072
taxpayer shall pay all taxes and any penalties thereon. Payments 7,073
may be made by mail, in person, by electronic funds transfer if 7,074
required to do so by section 5727.311 of the Revised Code, or by 7,075
any other means authorized by the treasurer of state. The 7,076
treasurer of state may adopt rules concerning the methods and 7,077
timeliness of payment. 7,078
(B) Each tax bill issued pursuant to this section shall 7,080
separately reflect the taxes due, due date, and any other 7,081
information considered necessary. Except as otherwise provided 7,082
in division (F) of this section, the last day on which payment 7,083
may be made without penalty shall be at least twenty but not more 7,084
than thirty days from the date of mailing the tax bill. The 7,085
treasurer of state shall mail the tax bill, and the mailing 7,086
thereof shall be prima-facie evidence of receipt thereof by the 7,087
taxpayer. 7,088
168
(C) The treasurer of state shall refund taxes as provided 7,090
in this section, but no refund shall be made to a taxpayer having 7,091
a delinquent claim certified pursuant to this section that 7,092
remains unpaid. The treasurer of state may consult the attorney 7,093
general regarding such claims. 7,094
(D) Within twenty days after receipt of any excise tax 7,096
assessment certified to him THE TREASURER OF STATE, the treasurer 7,098
of state shall:
(1) Ascertain the difference between the total taxes shown 7,100
on such assessment and the sum of all advance ESTIMATED payments, 7,102
exclusive of any penalties thereon, previously made for that 7,103
year.
(2) If the difference is a deficiency, the treasurer of 7,105
state shall issue a tax bill. 7,106
(3) If the difference is an excess, the treasurer of state 7,108
shall certify the name of the taxpayer and the amount to be 7,109
refunded to the director of budget and management for payment to 7,110
the taxpayer. 7,111
If the taxpayer has a deficiency for one tax year and an 7,113
excess for another tax year, or any combination thereof for more 7,114
than two years, the treasurer of state may determine the net 7,115
result and, depending on such result, proceed to mail a tax bill 7,116
or certify a refund. 7,117
(E) If a taxpayer fails to pay all taxes on or before the 7,119
due date shown on the tax bill, or fails to make an advance 7,120
ESTIMATED payment on or before the due date prescribed in 7,122
division (B) of section 5727.31 of the Revised Code, but makes 7,123
payment within ten calendar days of such date, the treasurer of 7,124
state shall add a penalty equal to five per cent of the amount 7,125
that should have been timely paid. If payment is not made within 7,126
ten days of such date, the treasurer of state shall add a penalty 7,127
equal to fifteen per cent of the amount that should have been 7,128
timely paid. The treasurer of state shall prepare a delinquent 7,129
claim for each tax bill on which penalties were added and certify 7,130
169
such claims to the attorney general and tax commissioner. The 7,131
attorney general shall proceed to collect the delinquent taxes 7,132
and penalties thereon in the manner prescribed by law and notify 7,133
the treasurer of state and tax commissioner of all collections. 7,134
(F) The last day on which a natural gas company that is 7,136
not required to make payments under division (B) of section 7,137
5727.31 of the Revised Code may pay its taxes without penalty 7,138
shall be the fifteenth day of March of the year following the 7,139
year in which the commissioner is required to certify his THE 7,140
assessment of the company's tax under section 5727.38 of the 7,141
Revised Code. The tax due date shall be reflected on the tax 7,142
bill. 7,143
Sec. 5727.45. Four and two-tenths per cent of all excise 7,152
taxes and penalties collected under sections 5727.01 to 5727.62 7,153
of the Revised Code shall be credited to the local government 7,154
fund for distribution in accordance with section 5747.50 of the 7,155
Revised Code, six-tenths of one per cent shall be credited to the 7,156
local government revenue assistance fund for distribution in 7,158
accordance with section 5747.61 of the Revised Code, and
ninety-five and two-tenths per cent shall be credited to the 7,159
general revenue fund. 7,160
On or before the first day of December, annually, the tax 7,162
commissioner shall certify to the treasurer of state the amounts 7,163
to be credited to the local government fund and local government 7,164
revenue assistance fund from the general revenue fund to ensure 7,165
that the sum of the amounts credited to the local government fund 7,166
and local government revenue assistance fund for the calendar 7,167
year equals the sum that would have been credited during that 7,168
year if the credit authorized by section 5727.391 of the Revised 7,169
Code did not exist. The treasurer shall credit any such 7,170
additional amounts to the two funds not later than the fifth day 7,171
of December, annually. 7,172
Sec. 5727.47. A copy of each assessment certified pursuant 7,185
to section 5727.23, 5727.231, or 5727.38 of the Revised Code 7,186
170
shall be mailed to the public utility, and its mailing shall be 7,187
prima-facie evidence of its receipt by the public utility to 7,188
which it is addressed. If a public utility objects to any 7,189
assessment certified to it pursuant to such sections, it may file 7,190
a petition for reassessment with the tax commissioner. The 7,191
petition must be made in writing, signed by the authorized agent 7,192
of the utility having knowledge of the facts, and filed with the 7,193
commissioner, in person or by certified mail, within thirty days 7,194
from the date that the assessment was mailed. If the petition is 7,195
filed by certified mail, the date of the United States postmark 7,196
placed on the sender's receipt by the postal employee to whom the 7,197
petition is presented shall be treated as the date of filing. A 7,198
true copy of the assessment objected to shall be attached to the 7,199
petition and shall be incorporated by reference into the 7,200
petition, but the failure to attach a copy of the assessment and 7,201
incorporate it by reference does not invalidate the petition. The 7,203
petition also shall indicate the utility's objections, but
additional objections may be raised in writing if received prior 7,204
to the date shown on the final determination by the commissioner. 7,205
Notwithstanding the fact that a petition has been filed, 7,207
the tax with respect to the assessment objected to shall be paid 7,208
as required by law. The acceptance of the tax payment by the 7,209
treasurer of state or any county treasurer shall not prejudice 7,210
any claim for taxes on final determination by the commissioner or 7,211
final decision by the board of tax appeals or any court. 7,212
Upon receipt of a properly filed petition, the commissioner 7,214
shall notify the treasurer of state or the auditor of each county 7,215
to which the assessment objected to has been certified. 7,216
Unless the petitioner waives a hearing, the commissioner 7,218
shall assign a time and place for the hearing on the petition and 7,219
notify the petitioner of the time and place of the hearing by 7,220
personal service or certified mail, but the commissioner may 7,221
continue the hearing from time to time if necessary. 7,222
The commissioner may make such correction to the assessment 7,224
171
as he THE COMMISSIONER finds proper. The commissioner shall 7,225
serve a copy of his THE COMMISSIONER'S final determination on the 7,227
petitioner by personal service or certified mail, and his THE 7,228
COMMISSIONER'S decision in the matter shall be final, subject to 7,230
appeal as provided in section 5717.02 of the Revised Code. The 7,231
commissioner also shall transmit a copy of his THE final 7,232
determination to the treasurer of state or applicable county 7,233
auditor. In the absence of any further appeal, or when a 7,234
decision of the board of tax appeals or of any court to which the 7,235
decision has been appealed becomes final, the commissioner shall 7,236
notify the public utility and, as appropriate, the treasurer of 7,237
state who shall proceed under section 5727.42 of the Revised 7,238
Code, or the applicable county auditor who shall proceed under 7,239
section 5727.471 of the Revised Code. The notification is not 7,240
subject to further appeal. 7,241
Sec. 5727.53. The taxes, fees, and penalties provided by 7,250
sections 5727.01 to 5727.62, inclusive, of the Revised Code, THIS 7,251
CHAPTER THAT ARE REMITTED TO THE TREASURER OF STATE may be 7,253
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 7,255
in which such public utility is doing business, or in which the 7,256
line of any street, suburban, or interurban railroad company or 7,257
railroad company is located, and such court of common pleas shall 7,258
have jurisdiction of such THE action regardless of the amount 7,259
involved. The attorney general, on request of the tax 7,260
commissioner, shall institute such action in the court of common 7,261
pleas of Franklin County COUNTY or of any of such counties the 7,262
commissioner directs. In any such action it shall be sufficient 7,263
to allege that the tax, fee, or penalty sought to be recovered 7,264
stands charged on the delinquent duplicate of the treasurer of 7,265
state, and that the same has been unpaid for a period of thirty 7,266
days after having been placed thereon. Sums recovered in any 7,267
such action shall be paid into the state treasury to the credit 7,268
of the general revenue fund IN THE SAME MANNER AS THE TAX. 7,269
172
Sec. 5727.60. If a public utility required to file a 7,278
report with the tax commissioner by sections 5727.02 to 5727.62, 7,279
inclusive, of the Revised Code, PERSON fails to make such FILE A 7,281
report, it shall be subject to a penalty of ten dollars per day 7,283
for each day's omission after the time limited for making such
report WITHIN THE TIME PRESCRIBED BY SECTION 5727.08 OR 5727.31 7,284
OF THE REVISED CODE, INCLUDING ANY EXTENSIONS OF TIME GRANTED BY 7,286
THE TAX COMMISSIONER, A PENALTY OF FIFTY DOLLARS PER MONTH, NOT 7,287
TO EXCEED FIVE HUNDRED DOLLARS, MAY BE IMPOSED FOR EACH MONTH OR 7,288
FRACTION OF A MONTH ELAPSING BETWEEN THE DUE DATE OF THE REPORT, 7,289
INCLUDING ANY EXTENSIONS, AND THE DATE THE REPORT WAS FILED. THE 7,290
PENALTY UNDER THIS SECTION FOR FAILING TO FILE A REPORT REQUIRED 7,291
BY SECTION 5727.08 OF THE REVISED CODE SHALL BE PAID INTO THE 7,292
STATE GENERAL REVENUE FUND. IF THE PENALTY IS NOT PAID WITHIN
FIFTEEN DAYS AFTER NOTICE OF THE PENALTY IS MAILED TO THE PERSON 7,293
WHO FAILED TO TIMELY FILE THE REPORT, THE TAX COMMISSIONER SHALL 7,294
CERTIFY THE PENALTY AS A CLAIM TO THE ATTORNEY GENERAL FOR 7,295
COLLECTION. THE PENALTY UNDER THIS SECTION FOR FAILING TO FILE 7,296
THE REPORT REQUIRED BY SECTION 5727.31 OF THE REVISED CODE SHALL 7,297
BE DEPOSITED INTO THE STATE TREASURY IN THE SAME MANNER AS THE 7,298
TAX IS DEPOSITED, AND THE COMMISSIONER MAY COLLECT THE PENALTY BY 7,300
ASSESSMENT PURSUANT TO SECTION 5727.38 OF THE REVISED CODE. THE 7,301
TAX COMMISSIONER MAY ABATE THIS PENALTY IN FULL OR IN PART. 7,302
Sec. 5727.61. Every public utility required by law to make 7,311
returns, statements, or reports to the tax commissioner UNDER 7,312
SECTIONS 5727.01 TO 5727.62 OF THE REVISED CODE shall file 7,314
therewith, in such form as the commissioner prescribes, an
affidavit subscribed and sworn to by a person or officer having 7,315
knowledge of the facts setting forth that such public utility has 7,316
not, during the preceding year, except as permitted by sections 7,317
3517.082, 3599.03, and 3599.031 of the Revised Code, directly or 7,318
indirectly paid, used or offered, consented, or agreed to pay or 7,319
use any of its money or property for or in aid of or opposition 7,320
to a political party, a candidate for election or nomination to 7,322
173
public office, or a political action committee, legislative 7,323
campaign fund, or organization that supports or opposes any such 7,324
candidate or in any manner used any of its money or property for 7,325
any partisan political purpose whatever, or for the reimbursement 7,326
or indemnification of any person for money or property so used. 7,327
Such forms of affidavit as the commissioner prescribes shall be 7,328
attached to or made a part of the return, statement, or report 7,329
required to be made by such public utility under sections 5727.01 7,330
to 5727.62 of the Revised Code. 7,331
Sec. 5727.72. No officer, employee, or agent of a 7,340
telegraph or telephone company PERSON SUBJECT TO THIS CHAPTER 7,341
shall refuse to attend before a lawful board of appraisers and 7,342
assessors THE DEPARTMENT OF TAXATION when required to do so, or 7,343
refuse to bring with him THE OFFICER, EMPLOYEE, OR AGENT and 7,345
submit for inspection any books or papers of such company PERSON 7,346
in his THE OFFICER'S, EMPLOYEE'S, OR AGENT'S possession, custody, 7,348
or control, or refuse to answer any questions put to him THE 7,349
OFFICER, EMPLOYEE, OR AGENT concerning the organization, 7,351
business, or property of such company PERSON.
Sec. 5727.80. AS USED IN SECTIONS 5727.80 TO 5727.95 OF 7,353
THE REVISED CODE: 7,355
(A) "ELECTRIC DISTRIBUTION COMPANY" MEANS EITHER OF THE 7,358
FOLLOWING:
(1) A PERSON WHO DISTRIBUTES ELECTRICITY THROUGH A METER 7,360
OF AN END USER IN THIS STATE; 7,361
(2) THE END USER OF ELECTRICITY IN THIS STATE, IF THE END 7,364
USER OBTAINS ELECTRICITY THAT IS NOT DISTRIBUTED OR TRANSMITTED 7,365
TO THE END USER BY AN ELECTRIC DISTRIBUTION COMPANY THAT IS 7,366
REQUIRED TO REMIT THE TAX IMPOSED BY SECTION 5727.81 OF THE 7,368
REVISED CODE. "ELECTRIC DISTRIBUTION COMPANY" DOES NOT INCLUDE 7,369
THE END USER OF ELECTRICITY IN THIS STATE WHO SELF-GENERATES 7,370
ELECTRICITY THAT IS USED DIRECTLY BY THAT END USER ON THE SAME 7,371
SITE THAT THE ELECTRICITY IS GENERATED. 7,372
(B) "KILOWATT HOUR" MEANS ONE THOUSAND WATT HOURS OF 7,374
174
ELECTRICITY. 7,375
(C) "METER OF AN END USER IN THIS STATE" MEANS THE LAST 7,378
METER USED TO MEASURE THE KILOWATT HOURS DISTRIBUTED BY AN 7,379
ELECTRIC DISTRIBUTION COMPANY TO A LOCATION IN THIS STATE, THE 7,380
LAST METER LOCATED OUTSIDE OF THIS STATE THAT IS USED TO MEASURE 7,381
THE KILOWATT HOURS CONSUMED AT A LOCATION IN THIS STATE, OR, IF 7,382
NO METER IS USED, THE ESTIMATED KILOWATT HOURS DISTRIBUTED TO AN 7,383
UNMETERED LOCATION IN THIS STATE.
(D) "PERSON" HAS THE SAME MEANING AS IN SECTION 5701.01 OF 7,385
THE REVISED CODE, BUT ALSO INCLUDES A POLITICAL SUBDIVISION OF 7,386
THE STATE. 7,387
(E) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 7,390
CORPORATION THAT OWNS OR OPERATES A SYSTEM FOR THE DISTRIBUTION 7,391
OF ELECTRICITY.
(F) "QUALIFIED END USER" MEANS AN END USER OF ELECTRICITY 7,393
THAT USES MORE THAN THREE MILLION KILOWATT HOURS OF ELECTRICITY 7,395
AT ONE MANUFACTURING LOCATION IN THIS STATE FOR A CALENDAR DAY 7,396
FOR USE IN A MANUFACTURING PROCESS THAT FEATURES AN
ELECTROCHEMICAL REACTION IN WHICH ELECTRONS FROM DIRECT CURRENT 7,398
ELECTRICITY REMAIN A PART OF THE PRODUCT BEING MANUFACTURED. 7,399
(G) "SELF-ASSESSING PURCHASER" MEANS A PURCHASER THAT 7,401
MEETS ALL THE REQUIREMENTS OF, AND PAYS THE EXCISE TAX IN 7,402
ACCORDANCE WITH, DIVISION (C) OF SECTION 5727.81 OF THE REVISED 7,403
CODE.
Sec. 5727.81. (A) ON AND AFTER MAY 1, 2001, FOR THE 7,407
PURPOSE OF RAISING REVENUE FOR PUBLIC EDUCATION AND STATE AND 7,408
LOCAL GOVERNMENT OPERATIONS, AN EXCISE TAX IS HEREBY LEVIED AND 7,409
IMPOSED ON AN ELECTRIC DISTRIBUTION COMPANY, AT THE FOLLOWING
RATES PER KILOWATT HOUR OF ELECTRICITY DISTRIBUTED IN A 7,410
THIRTY-DAY PERIOD BY THE COMPANY THROUGH A METER OF AN END USER 7,411
IN THIS STATE:
KILOWATT HOURS DISTRIBUTED TO RATE PER 7,414
AN END USER KILOWATT HOUR 7,415
FOR THE FIRST 2,000 $.00465 7,416
175
FOR THE NEXT 2,001 TO 15,000 $.00419 7,417
FOR 15,001 AND ABOVE $.00301 7,418
THE ELECTRIC DISTRIBUTION COMPANY SHALL BASE THE MONTHLY 7,421
TAX ON THE KILOWATT HOURS OF ELECTRICITY DISTRIBUTED TO AN END 7,422
USER THROUGH THE METER OF THE END USER THAT IS NOT MEASURED FOR A 7,423
THIRTY-DAY PERIOD BY DIVIDING THE DAYS IN THE MEASUREMENT PERIOD 7,425
INTO THE TOTAL KILOWATT HOURS MEASURED DURING THE MEASUREMENT 7,426
PERIOD TO OBTAIN A DAILY AVERAGE USAGE. THE TAX SHALL BE 7,427
DETERMINED BY OBTAINING THE SUM OF DIVISIONS (A)(1), (2), AND (3) 7,428
OF THIS SECTION AND MULTIPLYING THAT AMOUNT BY THE NUMBER OF DAYS
IN THE MEASUREMENT PERIOD: 7,429
(1) MULTIPLYING $0.00465 PER KILOWATT HOUR FOR THE FIRST 7,431
SIXTY-SEVEN KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 7,432
(2) MULTIPLYING $0.00419 FOR THE NEXT SIXTY-EIGHT TO FIVE 7,434
HUNDRED KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 7,435
(3) MULTIPLYING $0.00301 FOR THE REMAINING KILOWATT HOURS 7,437
DISTRIBUTED USING A DAILY AVERAGE. 7,438
EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, THE 7,440
ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX TO THE TREASURER 7,441
OF STATE IN ACCORDANCE WITH SECTION 5727.82 OF THE REVISED CODE. 7,443
ONLY THE DISTRIBUTION OF ELECTRICITY THROUGH A METER OF AN END 7,445
USER IN THIS STATE SHALL BE USED BY THE ELECTRIC DISTRIBUTION 7,446
COMPANY TO COMPUTE THE AMOUNT OR ESTIMATED AMOUNT OF TAX DUE. 7,447
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 7,449
EACH ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED BY 7,450
THIS SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES: 7,451
(1) THE ELECTRICITY IS DISTRIBUTED BY THE COMPANY THROUGH 7,453
A METER OF AN END USER IN THIS STATE; 7,454
(2) THE COMPANY IS DISTRIBUTING ELECTRICITY THROUGH A 7,456
METER LOCATED IN ANOTHER STATE, BUT THE ELECTRICITY IS CONSUMED 7,457
IN THIS STATE IN THE MANNER PRESCRIBED BY THE TAX COMMISSIONER; 7,459
(3) THE COMPANY IS DISTRIBUTING ELECTRICITY IN THIS STATE 7,461
WITHOUT THE USE OF A METER, BUT THE ELECTRICITY IS CONSUMED IN 7,462
THIS STATE AS ESTIMATED AND IN THE MANNER PRESCRIBED BY THE TAX 7,464
176
COMMISSIONER.
(C)(1) A COMMERCIAL OR INDUSTRIAL PURCHASER THAT RECEIVES 7,467
ELECTRICITY THROUGH A METER OF AN END USER IN THIS STATE AND 7,468
CONSUMES ON THE AVERAGE, OVER THE COURSE OF THE PREVIOUS CALENDAR 7,469
YEAR, MORE THAN TWENTY MEGAWATTS OF ELECTRICITY DURING A 7,470
THIRTY-DAY PERIOD MAY ELECT TO SELF-ASSESS THE EXCISE TAX IMPOSED 7,471
BY THIS SECTION AT THE RATE OF SEVEN PER CENT OF THE TOTAL PRICE 7,472
OF ELECTRICITY DELIVERED THROUGH A METER OF AN END USER IN THIS 7,473
STATE. PAYMENT OF THE TAX SHALL BE MADE DIRECTLY TO THE 7,474
TREASURER OF STATE IN ACCORDANCE WITH DIVISIONS (A)(3) AND (4) OF 7,475
SECTION 5727.82 OF THE REVISED CODE OR, IF THE ELECTRIC 7,476
DISTRIBUTION COMPANY SERVING THE SELF-ASSESSING PURCHASER IS A 7,477
MUNICIPAL ELECTRIC UTILITY AND THE PURCHASER IS WITHIN THE 7,478
MUNICIPAL CORPORATION'S CORPORATE LIMITS, TO SUCH MUNICIPAL 7,479
CORPORATION'S GENERAL FUND IN ACCORDANCE WITH DIVISION (A)(2) OF 7,480
SECTION 5727.82 OF THE REVISED CODE, AND UPON PAYING IN THIS 7,481
MANNER, THE SELF-ASSESSING PURCHASER SHALL NOT BE REQUIRED TO PAY 7,482
THE EXCISE TAX TO THE ELECTRIC DISTRIBUTION COMPANY FROM WHICH
ITS ELECTRICITY IS DELIVERED. 7,483
(2) APPLICATION FOR REGISTRATION AS A SELF-ASSESSING 7,485
PURCHASER SHALL BE MADE ON A FORM PRESCRIBED BY THE TAX 7,486
COMMISSIONER. THE REGISTRATION SHALL REMAIN IN EFFECT UNTIL 7,487
CANCELED BY THE REGISTRANT UPON WRITTEN NOTIFICATION TO THE 7,488
COMMISSIONER OF THE ELECTION TO PAY THE TAX IN ACCORDANCE WITH 7,489
DIVISION (A) OF THIS SECTION. A SELF-ASSESSING PURCHASER SHALL 7,490
GIVE WRITTEN NOTICE TO THE ELECTRIC DISTRIBUTION COMPANY FROM
WHICH ITS ELECTRICITY IS DELIVERED OF ITS SELF-ASSESSING STATUS, 7,491
AND THE ELECTRIC DISTRIBUTION COMPANY IS RELIEVED OF THE
OBLIGATION TO PAY THE TAX IMPOSED BY DIVISION (A) OF THIS SECTION 7,492
FOR ELECTRICITY DISTRIBUTED TO THAT SELF-ASSESSING PURCHASER. 7,493
(D) THE TAX IMPOSED BY THIS SECTION DOES NOT APPLY TO THE 7,496
DISTRIBUTION OF ANY KILOWATT HOURS OF ELECTRICITY TO THE FEDERAL 7,497
GOVERNMENT OR TO AN END USER FOR ANY DAY THE END USER IS A 7,498
QUALIFIED END USER. THE EXEMPTION UNDER THIS DIVISION FOR A
177
QUALIFIED END USER ONLY APPLIES TO THE MANUFACTURING LOCATION 7,499
WHERE THE QUALIFIED END USER USES MORE THAN THREE MILLION 7,500
KILOWATT HOURS PER DAY.
Sec. 5727.82. (A)(1) EXCEPT AS PROVIDED IN DIVISIONS 7,503
(A)(2) AND (D) OF THIS SECTION, BY THE TWENTIETH DAY OF EACH 7,504
MONTH, EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX 7,505
IMPOSED BY SECTION 5727.81 OF THE REVISED CODE SHALL FILE WITH 7,507
THE TREASURER OF STATE A RETURN AS PRESCRIBED BY THE TAX 7,508
COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF TAX DUE 7,510
FOR THE PRECEDING MONTH. THE FIRST PAYMENT OF THIS TAX SHALL BE
MADE ON OR BEFORE JUNE 20, 2001. 7,511
(2) IF THE ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY 7,513
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE IS A 7,516
MUNICIPAL ELECTRIC UTILITY, IT MAY RETAIN IN ITS GENERAL FUND 7,517
THAT PORTION OF THE TAX ON THE KILOWATT HOURS DISTRIBUTED TO END 7,518
USERS LOCATED WITHIN THE BOUNDARIES OF THE MUNICIPAL CORPORATION. 7,519
HOWEVER, THE MUNICIPAL ELECTRIC UTILITY SHALL MAKE PAYMENT IN 7,520
ACCORDANCE WITH DIVISION (A)(1) OF THIS SECTION OF THE TAX DUE ON 7,522
THE KILOWATT HOURS DISTRIBUTED TO END USERS LOCATED OUTSIDE THE 7,523
BOUNDARIES OF THE MUNICIPAL CORPORATION. 7,524
(3) BY THE TWENTIETH DAY OF EACH MONTH, EACH 7,527
SELF-ASSESSING PURCHASER THAT UNDER DIVISION (C) OF SECTION 7,528
5727.81 OF THE REVISED CODE PAYS DIRECTLY TO THE TREASURER OF 7,530
STATE THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 7,531
SHALL FILE WITH THE TREASURER OF STATE A RETURN AS PRESCRIBED BY 7,532
THE TAX COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF 7,533
THE TAX DUE FOR THE PRECEDING MONTH. 7,534
(4) AS PRESCRIBED BY THE TAX COMMISSIONER, THE RETURN 7,536
SHALL BE SIGNED BY THE COMPANY OR SELF-ASSESSING PURCHASER 7,537
REQUIRED TO FILE IT, OR AN AUTHORIZED EMPLOYEE, OFFICER, OR AGENT 7,538
OF THE COMPANY OR PURCHASER. THE TREASURER OF STATE SHALL MARK 7,539
ON THE RETURN THE DATE IT WAS RECEIVED AND INDICATE PAYMENT OR 7,540
NONPAYMENT OF THE TAX SHOWN TO BE DUE ON THE RETURN. THE 7,541
TREASURER OF STATE IMMEDIATELY SHALL TRANSMIT ALL RETURNS TO THE 7,542
178
TAX COMMISSIONER. THE RETURN SHALL BE DEEMED FILED WHEN RECEIVED 7,543
BY THE TREASURER OF STATE.
(B) ANY ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,545
PURCHASER REQUIRED BY THIS SECTION TO FILE A RETURN WHO FAILS TO 7,547
FILE IT AND PAY THE TAX WITHIN THE PERIOD PRESCRIBED SHALL PAY AN
ADDITIONAL CHARGE OF FIFTY DOLLARS OR TEN PER CENT OF THE TAX 7,548
REQUIRED TO BE PAID FOR THE REPORTING PERIOD, WHICHEVER IS 7,549
GREATER. THE TAX COMMISSIONER MAY COLLECT THE ADDITIONAL CHARGE 7,550
BY ASSESSMENT PURSUANT TO SECTION 5727.89 OF THE REVISED CODE. 7,553
THE COMMISSIONER MAY ABATE ALL OR A PORTION OF THE ADDITIONAL 7,554
CHARGE AND MAY ADOPT RULES GOVERNING SUCH ABATEMENTS. 7,555
(C) IF ANY TAX DUE IS NOT PAID TIMELY IN ACCORDANCE WITH 7,558
THIS SECTION, THE ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,559
PURCHASER LIABLE FOR THE TAX SHALL PAY INTEREST, CALCULATED AT 7,560
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 7,562
CODE, FROM THE DATE THE TAX PAYMENT WAS DUE TO THE DATE OF 7,563
PAYMENT OR TO THE DATE AN ASSESSMENT IS ISSUED, WHICHEVER OCCURS 7,564
FIRST. INTEREST SHALL BE PAID IN THE SAME MANNER AS THE TAX, AND 7,565
THE COMMISSIONER MAY COLLECT THE INTEREST BY ASSESSMENT PURSUANT 7,566
TO SECTION 5727.89 OF THE REVISED CODE. 7,567
(D) NOT LATER THAN THE TENTH DAY OF EACH MONTH, A 7,569
QUALIFIED END USER SHALL REPORT IN WRITING TO THE ELECTRIC 7,570
DISTRIBUTION COMPANY THAT DISTRIBUTES ELECTRICITY TO THE END USER 7,571
THE KILOWATT HOURS THAT WERE CONSUMED AS A QUALIFIED END USER FOR 7,572
THE PRIOR MONTH AND THE NUMBER OF DAYS, IF ANY, ON WHICH THE END 7,573
USER WAS NOT A QUALIFIED END USER. FOR EACH CALENDAR DAY THE END 7,574
USER WAS NOT A QUALIFIED END USER, THE END USER SHALL REPORT IN 7,575
WRITING TO THE ELECTRIC DISTRIBUTION COMPANY THE NUMBER OF 7,576
KILOWATT HOURS USED ON THAT DAY, AND THE ELECTRIC DISTRIBUTION 7,577
COMPANY SHALL PAY THE TAX IMPOSED UNDER SECTION 5727.81 OF THE 7,578
REVISED CODE ON EACH KILOWATT HOUR THAT WAS NOT DISTRIBUTED TO A 7,579
QUALIFIED END USER. THE ELECTRIC DISTRIBUTION COMPANY MAY RELY 7,580
IN GOOD FAITH ON A QUALIFIED END USER'S REPORT FILED UNDER THIS 7,581
DIVISION. IF IT IS DETERMINED THAT THE END USER WAS NOT A 7,582
179
QUALIFIED END USER FOR ANY CALENDAR DAY OR THE QUANTITY OF 7,583
ELECTRICITY USED BY THE QUALIFIED END USER WAS OVERSTATED, THE 7,584
TAX COMMISSIONER SHALL ASSESS AND COLLECT ANY TAX IMPOSED UNDER 7,585
SECTION 5727.81 OF THE REVISED CODE DIRECTLY FROM THE QUALIFIED 7,587
END USER. AS REQUESTED BY THE COMMISSIONER, EACH END USER
REPORTING TO AN ELECTRIC DISTRIBUTION COMPANY THAT IT IS A 7,588
QUALIFIED END USER SHALL PROVIDE DOCUMENTATION TO THE 7,589
COMMISSIONER THAT ESTABLISHES THE VOLUME OF ELECTRICITY CONSUMED 7,591
DAILY BY THE QUALIFIED END USER. 7,592
Sec. 5727.83. (A) IF THE TOTAL AMOUNT OF TAX REQUIRED TO 7,594
BE REMITTED BY AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,595
PURCHASER TO THIS STATE UNDER SECTION 5727.82 OF THE REVISED CODE 7,598
FOR ANY CALENDAR YEAR EQUALS OR EXCEEDS FIFTY THOUSAND DOLLARS,
THE COMPANY OR SELF-ASSESSING PURCHASER SHALL REMIT EACH MONTHLY 7,599
TAX PAYMENT IN THE SECOND ENSUING AND EACH SUCCEEDING TAX YEAR BY 7,601
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY DIVISIONS (B) AND (C) 7,602
OF THIS SECTION. FOR THE FIRST YEAR THE TAX LEVIED BY SECTION 7,603
5727.81 OF THE REVISED CODE IS IMPOSED, ANY ELECTRIC DISTRIBUTION 7,605
COMPANY THAT, PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, WAS AN 7,606
ELECTRIC COMPANY OR A RURAL ELECTRIC COMPANY REQUIRED TO REMIT 7,608
TAXES BY ELECTRONIC FUNDS TRANSFER UNDER SECTION 5727.311 OF THE
REVISED CODE SHALL REMIT THE TAX IMPOSED BY SECTION 5727.81 OF 7,610
THE REVISED CODE BY ELECTRONIC FUNDS TRANSFER IN ACCORDANCE WITH 7,611
THIS SECTION.
IF THE TAX PAYMENT FOR EACH OF TWO CONSECUTIVE YEARS IS 7,613
LESS THAN FIFTY THOUSAND DOLLARS, THE COMPANY OR SELF-ASSESSING 7,614
PURCHASER IS RELIEVED OF THE REQUIREMENT TO REMIT TAXES BY 7,615
ELECTRONIC FUNDS TRANSFER FOR THE YEAR THAT NEXT FOLLOWS THE 7,616
SECOND OF THE CONSECUTIVE YEARS IN WHICH THE TAX PAYMENT IS LESS 7,617
THAN FIFTY THOUSAND DOLLARS, AND IS RELIEVED OF THAT REQUIREMENT 7,619
FOR EACH SUCCEEDING YEAR UNLESS THE TAX PAYMENT IN A SUBSEQUENT 7,620
YEAR EQUALS OR EXCEEDS FIFTY THOUSAND DOLLARS.
THE TAX COMMISSIONER SHALL NOTIFY EACH ELECTRIC 7,622
DISTRIBUTION COMPANY AND SELF-ASSESSING PURCHASER REQUIRED TO 7,623
180
REMIT TAXES BY ELECTRONIC FUNDS TRANSFER OF THE OBLIGATION TO DO 7,624
SO, SHALL MAINTAIN AN UPDATED LIST OF THOSE COMPANIES AND 7,625
PURCHASERS, AND SHALL TIMELY CERTIFY TO THE TREASURER OF STATE 7,627
THE LIST AND ANY ADDITIONS THERETO OR DELETIONS THEREFROM. 7,628
FAILURE BY THE TAX COMMISSIONER TO NOTIFY A COMPANY OR 7,629
SELF-ASSESSING PURCHASER SUBJECT TO THIS SECTION TO REMIT TAXES 7,630
BY ELECTRONIC FUNDS TRANSFER DOES NOT RELIEVE THE COMPANY OR 7,631
SELF-ASSESSING PURCHASER OF ITS OBLIGATION TO REMIT TAXES IN THAT 7,632
MANNER.
(B) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,634
PURCHASER REQUIRED BY THIS SECTION TO REMIT PAYMENTS BY 7,637
ELECTRONIC FUNDS TRANSFER SHALL REMIT SUCH PAYMENTS TO THE 7,638
TREASURER OF STATE IN THE MANNER PRESCRIBED BY RULES ADOPTED BY 7,639
THE TREASURER OF STATE UNDER SECTION 113.061 OF THE REVISED CODE,
AND ON OR BEFORE THE DATES SPECIFIED UNDER SECTION 5727.82 OF THE 7,640
REVISED CODE. THE PAYMENT OF TAXES BY ELECTRONIC FUNDS TRANSFER 7,642
DOES NOT AFFECT A COMPANY'S OR SELF-ASSESSING PURCHASER'S
OBLIGATION TO FILE THE MONTHLY RETURN AS REQUIRED UNDER SECTION 7,644
5727.82 OF THE REVISED CODE.
(C) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,646
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 7,647
FUNDS TRANSFER MAY APPLY TO THE TREASURER OF STATE IN THE MANNER 7,649
PRESCRIBED BY THE TREASURER OF STATE TO BE EXCUSED FROM THAT
REQUIREMENT. THE TREASURER OF STATE MAY EXCUSE THE COMPANY OR 7,650
SELF-ASSESSING PURCHASER FROM REMITTANCE BY ELECTRONIC FUNDS 7,652
TRANSFER FOR GOOD CAUSE SHOWN FOR THE PERIOD OF TIME REQUESTED BY 7,653
THE COMPANY OR SELF-ASSESSING PURCHASER OR FOR A PORTION OF THAT 7,654
PERIOD. THE TREASURER OF STATE SHALL NOTIFY THE TAX COMMISSIONER 7,655
AND THE COMPANY OR SELF-ASSESSING PURCHASER OF THE TREASURER OF 7,656
STATE'S DECISION AS SOON AS IS PRACTICABLE. 7,657
(D) IF AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,659
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 7,662
FUNDS TRANSFER REMITS THOSE TAXES BY SOME MEANS OTHER THAN BY 7,663
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY THIS SECTION AND THE 7,664
181
RULES ADOPTED BY THE TREASURER OF STATE, AND THE TREASURER OF 7,665
STATE DETERMINES THAT SUCH FAILURE WAS NOT DUE TO REASONABLE
CAUSE OR WAS DUE TO WILLFUL NEGLECT, THE TREASURER OF STATE SHALL 7,666
NOTIFY THE TAX COMMISSIONER OF THE FAILURE TO REMIT BY ELECTRONIC 7,667
FUNDS TRANSFER AND SHALL PROVIDE THE COMMISSIONER WITH ANY 7,668
INFORMATION USED IN MAKING THAT DETERMINATION. THE TAX 7,669
COMMISSIONER MAY COLLECT AN ADDITIONAL CHARGE BY ASSESSMENT IN 7,670
THE MANNER PRESCRIBED BY SECTION 5727.89 OF THE REVISED CODE. 7,671
THE ADDITIONAL CHARGE SHALL EQUAL FIVE PER CENT OF THE AMOUNT OF 7,672
THE TAXES REQUIRED TO BE PAID BY ELECTRONIC FUNDS TRANSFER, BUT 7,673
SHALL NOT EXCEED FIVE THOUSAND DOLLARS. ANY ADDITIONAL CHARGE 7,674
ASSESSED UNDER THIS SECTION IS IN ADDITION TO ANY OTHER PENALTY 7,675
OR CHARGE IMPOSED UNDER THIS CHAPTER, AND SHALL BE CONSIDERED AS 7,676
REVENUE ARISING FROM THE TAX IMPOSED UNDER THIS CHAPTER. THE TAX 7,677
COMMISSIONER MAY ABATE ALL OR A PORTION OF SUCH A CHARGE AND MAY 7,678
ADOPT RULES GOVERNING SUCH ABATEMENTS. 7,679
NO ADDITIONAL CHARGE SHALL BE ASSESSED UNDER THIS DIVISION 7,681
AGAINST AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,682
PURCHASER THAT HAS BEEN NOTIFIED OF ITS OBLIGATION TO REMIT TAXES 7,685
UNDER THIS SECTION AND THAT REMITS ITS FIRST TWO TAX PAYMENTS 7,686
AFTER SUCH NOTIFICATION BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 7,687
TRANSFER. THE ADDITIONAL CHARGE MAY BE ASSESSED UPON THE 7,688
REMITTANCE OF ANY SUBSEQUENT TAX PAYMENT THAT THE COMPANY OR
PURCHASER REMITS BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 7,690
TRANSFER.
Sec. 5727.84. (A) AS USED IN THIS SECTION AND SECTIONS 7,692
5727.85, 5727.86, AND 5727.87 OF THE REVISED CODE: 7,694
(1) "SCHOOL DISTRICT" MEANS A CITY, LOCAL, OR EXEMPTED 7,696
VILLAGE SCHOOL DISTRICT. 7,697
(2) "JOINT VOCATIONAL SCHOOL DISTRICT" MEANS A JOINT 7,699
VOCATIONAL SCHOOL DISTRICT CREATED UNDER SECTION 3311.16 OF THE 7,700
REVISED CODE, AND INCLUDES A COOPERATIVE EDUCATION SCHOOL 7,702
DISTRICT CREATED UNDER SECTION 3311.52 OR 3311.521 OF THE REVISED 7,703
CODE AND A COUNTY SCHOOL FINANCING DISTRICT CREATED UNDER SECTION 7,704
182
3311.50 OF THE REVISED CODE. 7,705
(3) "LOCAL TAXING UNIT" MEANS A SUBDIVISION, AS DEFINED IN 7,707
SECTION 5705.01 OF THE REVISED CODE, BUT EXCLUDES SCHOOL 7,708
DISTRICTS AND JOINT VOCATIONAL SCHOOL DISTRICTS. 7,709
(4) "STATE EDUCATION AID" MEANS THE SUM OF THE STATE BASIC 7,711
AID AND STATE SPECIAL EDUCATION AID AMOUNTS COMPUTED FOR A SCHOOL 7,712
DISTRICT UNDER DIVISIONS (A) AND (B) OF SECTION 3317.022 OF THE 7,713
REVISED CODE. 7,714
(5) "STATE EDUCATION AID OFFSET" MEANS THE AMOUNT 7,716
CERTIFIED FOR EACH SCHOOL DISTRICT UNDER DIVISION (A)(1) OF 7,717
SECTION 5727.85 OF THE REVISED CODE. 7,718
(6) "ADJUSTED TOTAL TAXABLE VALUE" HAS THE SAME MEANING AS 7,720
IN SECTION 3317.02 OF THE REVISED CODE. 7,721
(7) "TAX VALUE LOSS" MEANS THE AMOUNT DETERMINED UNDER 7,723
DIVISION (C) OF THIS SECTION. 7,724
(8) "FIXED-RATE LEVY" MEANS ANY TAX LEVIED ON PROPERTY 7,726
OTHER THAN A FIXED-SUM LEVY. 7,727
(9) "FIXED-RATE LEVY LOSS" MEANS THE AMOUNT DETERMINED 7,729
UNDER DIVISION (D) OF THIS SECTION. 7,730
(10) "FIXED-SUM LEVY" MEANS A TAX LEVIED ON PROPERTY AT 7,732
WHATEVER RATE IS REQUIRED TO PRODUCE A SPECIFIED AMOUNT OF TAX 7,733
MONEY OR TO PAY DEBT CHARGES, AND INCLUDES SCHOOL DISTRICT 7,734
EMERGENCY LEVIES IMPOSED PURSUANT TO SECTION 5705.194 OF THE 7,735
REVISED CODE.
(11) "FIXED-SUM LEVY LOSS" MEANS THE AMOUNT DETERMINED 7,737
UNDER DIVISION (E) OF THIS SECTION. 7,738
(12) "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX 7,740
(ALL ITEMS, ALL URBAN CONSUMERS) PREPARED BY THE BUREAU OF LABOR 7,741
STATISTICS OF THE UNITED STATES DEPARTMENT OF LABOR. 7,742
(B) ALL MONEY ARISING FROM THE TAX IMPOSED BY SECTION 7,744
5727.81 OF THE REVISED CODE SHALL BE CREDITED AS FOLLOWS: 7,745
(1) FIFTY-NINE AND NINE HUNDRED SEVENTY-SIX 7,747
ONE-THOUSANDTHS PER CENT, PLUS AN AMOUNT EQUAL TO THE STATE 7,748
EDUCATION AID OFFSET, SHALL BE CREDITED TO THE GENERAL REVENUE 7,749
183
FUND.
(2) TWO AND SIX HUNDRED FORTY-SIX ONE-THOUSANDTHS PER CENT 7,751
SHALL BE CREDITED TO THE LOCAL GOVERNMENT FUND, FOR DISTRIBUTION 7,752
IN ACCORDANCE WITH SECTION 5747.50 OF THE REVISED CODE. 7,753
(3) THREE HUNDRED SEVENTY-EIGHT ONE-THOUSANDTHS PER CENT 7,755
SHALL BE CREDITED TO THE LOCAL GOVERNMENT REVENUE ASSISTANCE 7,756
FUND, FOR DISTRIBUTION IN ACCORDANCE WITH SECTION 5747.61 OF THE 7,757
REVISED CODE. 7,758
(4) TWENTY-FIVE AND NINE-TENTHS PER CENT, LESS AN AMOUNT 7,760
EQUAL TO THE STATE EDUCATION AID OFFSET, SHALL BE CREDITED TO THE 7,761
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 7,762
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 7,763
PAYMENTS DESCRIBED IN SECTION 5727.85 OF THE REVISED CODE. 7,764
(5) ELEVEN AND ONE-TENTH PER CENT SHALL BE CREDITED TO THE 7,766
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 7,767
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 7,768
PAYMENTS DESCRIBED IN SECTION 5727.86 OF THE REVISED CODE. 7,769
(C) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 7,771
SHALL DETERMINE FOR EACH TAXING DISTRICT ITS TAX VALUE LOSS, 7,772
WHICH IS THE SUM OF THE AMOUNTS DESCRIBED IN DIVISIONS (C)(1) AND 7,773
(2) OF THIS SECTION: 7,774
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,776
DESCRIBED IN DIVISION (C)(1)(b) FROM THE AMOUNT DESCRIBED IN 7,777
DIVISION (C)(1)(a) OF THIS SECTION. 7,778
(a) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 7,780
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 7,781
COMMISSIONER FOR TAX YEAR 1998 ON A PRELIMINARY ASSESSMENT, OR AN 7,782
AMENDED PRELIMINARY ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 1999, 7,783
AND AS APPORTIONED TO THE TAXING DISTRICT FOR TAX YEAR 1998; 7,784
(b) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 7,786
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 7,787
COMMISSIONER FOR TAX YEAR 1998 HAD THE PROPERTY BEEN APPORTIONED 7,788
TO THE TAXING DISTRICT FOR TAX YEAR 2001, AND ASSESSED AT THE 7,789
RATES IN EFFECT FOR TAX YEAR 2001. 7,790
184
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,792
DESCRIBED IN DIVISION (C)(2)(b) FROM THE AMOUNT DESCRIBED IN 7,793
DIVISION (C)(2)(a) OF THIS SECTION. 7,794
(a) THE THREE-YEAR AVERAGE FOR TAX YEARS 1996, 1997, AND 7,796
1998 OF THE ASSESSED VALUE FROM NUCLEAR FUEL MATERIALS AND 7,797
ASSEMBLIES ASSESSED AGAINST A PERSON UNDER CHAPTER 5711. OF THE 7,798
REVISED CODE FROM THE LEASING OF THEM TO AN ELECTRIC COMPANY FOR 7,799
THOSE RESPECTIVE TAX YEARS, AS REFLECTED IN THE PRELIMINARY 7,800
ASSESSMENTS;
(b) THE THREE-YEAR AVERAGE ASSESSED VALUE FROM NUCLEAR 7,802
FUEL MATERIALS AND ASSEMBLIES ASSESSED UNDER DIVISION (C)(2)(a) 7,803
OF THIS SECTION FOR TAX YEARS 1996, 1997, AND 1998, AS REFLECTED 7,804
IN THE PRELIMINARY ASSESSMENTS, USING AN ASSESSMENT RATE OF
TWENTY-FIVE PER CENT. 7,805
THE TAX COMMISSIONER MAY REQUEST THAT ELECTRIC COMPANIES 7,807
AND RURAL ELECTRIC COMPANIES FILE A REPORT TO HELP DETERMINE THE 7,808
TAX VALUE LOSS UNDER DIVISION (C) OF THIS SECTION. THE REPORT 7,809
SHALL BE FILED WITHIN THIRTY DAYS OF THE COMMISSIONER'S REQUEST. 7,810
A COMPANY THAT FAILS TO FILE THE REPORT OR DOES NOT TIMELY FILE
THE REPORT IS SUBJECT TO THE PENALTY IN SECTION 5727.60 OF THE 7,811
REVISED CODE. 7,812
(D) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 7,814
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 7,815
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-RATE LEVY LOSS, WHICH 7,816
IS ITS TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN EFFECT IN TAX 7,818
YEAR 1998 FOR FIXED-RATE LEVIES.
(E) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 7,820
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 7,822
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-SUM LEVY LOSS, WHICH IS 7,823
THE AMOUNT OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 7,824
DIVISION (E)(2) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 7,825
DIVISION (E)(1) OF THIS SECTION: 7,826
(1) THE TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN 7,828
EFFECT IN TAX YEAR 1998 FOR FIXED-SUM LEVIES FOR ALL TAXING 7,829
185
DISTRICTS WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 7,830
DISTRICT, AND LOCAL TAXING UNIT. FOR THE YEARS 2002 THROUGH 7,831
2006, THIS COMPUTATION SHALL INCLUDE SCHOOL DISTRICT EMERGENCY 7,832
LEVIES THAT EXISTED IN 1998, AND ALL OTHER FIXED-SUM LEVIES THAT 7,833
EXISTED IN 1998 AND CONTINUE TO BE CHARGED IN THE TAX YEAR 7,834
PRECEDING THE DISTRIBUTION YEAR. FOR THE YEARS 2007 THROUGH 7,835
2016, THIS COMPUTATION SHALL EXCLUDE ALL SCHOOL DISTRICT 7,836
EMERGENCY LEVIES AND ALL OTHER FIXED-SUM LEVIES THAT EXISTED IN 7,837
1998 BUT ARE NO LONGER IN EFFECT IN THE TAX YEAR PRECEDING THE 7,838
DISTRIBUTION YEAR.
(2) THE TOTAL TAXABLE VALUE IN TAX YEAR 1998 IN EACH 7,840
SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, AND LOCAL 7,841
TAXING UNIT MULTIPLIED BY ONE-FOURTH OF ONE MILL. 7,842
IF THE COMPUTATION UNDER DIVISION (E) OF THIS SECTION FOR 7,844
ANY SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR LOCAL 7,845
TAXING UNIT IS GREATER THAN ZERO, THE ONE-FOURTH OF ONE MILL THAT
IS SUBTRACTED PURSUANT TO DIVISION (E) OF SECTION 5727.85 OF THE 7,846
REVISED CODE OR DIVISION (A)(2) OF SECTION 5727.86 OF THE REVISED 7,848
CODE SHALL BE APPORTIONED AMONG ALL CONTRIBUTING FIXED-SUM LEVIES 7,850
IN THE PROPORTION OF EACH LEVY TO THE SUM OF ALL FIXED-SUM LEVIES 7,851
WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR 7,852
LOCAL TAXING UNIT.
Sec. 5727.85. (A) BY THE THIRTY-FIRST DAY OF JULY OF EACH 7,855
YEAR, BEGINNING IN 2002 AND ENDING IN 2016, THE DEPARTMENT OF 7,856
EDUCATION SHALL DETERMINE THE FOLLOWING FOR EACH SCHOOL DISTRICT 7,857
ELIGIBLE FOR PAYMENT UNDER DIVISION (C) OF THIS SECTION: 7,858
(1) THE STATE EDUCATION AID OFFSET, WHICH IS THE 7,860
DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 7,861
DIVISION (A)(1)(b) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 7,863
DIVISION (A)(1)(a) OF THIS SECTION: 7,864
(a) THE STATE EDUCATION AID COMPUTED FOR THE SCHOOL 7,866
DISTRICT FOR THE CURRENT FISCAL YEAR ON THE BASIS OF THE ADJUSTED 7,867
TOTAL TAXABLE VALUE; 7,868
(b) THE STATE EDUCATION AID THAT WOULD BE COMPUTED FOR THE 7,870
186
SCHOOL DISTRICT FOR THE CURRENT FISCAL YEAR IF THE DISTRICT'S 7,871
ADJUSTED TOTAL TAXABLE VALUE INCLUDED THE TAX VALUE LOSS FOR ALL 7,872
TAXING DISTRICTS IN THE SCHOOL DISTRICT.
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE STATE 7,874
EDUCATION AID OFFSET DETERMINED UNDER DIVISION (A)(1) OF THIS 7,875
SECTION FROM THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION 7,876
(D) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 7,877
DISTRICTS IN EACH SCHOOL DISTRICT. THE DEPARTMENT OF EDUCATION 7,878
SHALL CERTIFY THE AMOUNT SO DETERMINED TO THE DIRECTOR OF BUDGET 7,879
AND MANAGEMENT.
(B) NOT LATER THAN THE THIRTY-FIRST DAY OF OCTOBER OF THE 7,882
YEARS 2006 THROUGH 2016, THE DEPARTMENT OF EDUCATION SHALL 7,883
DETERMINE ALL OF THE FOLLOWING FOR EACH SCHOOL DISTRICT: 7,884
(1) THE AMOUNT OBTAINED BY SUBTRACTING THE DISTRICT'S 7,886
STATE EDUCATION AID COMPUTED FOR FISCAL YEAR 2002 FROM THE 7,887
DISTRICT'S STATE EDUCATION AID COMPUTED FOR THE CURRENT FISCAL 7,888
YEAR;
(2) THE INFLATION-ADJUSTED PROPERTY TAX LOSS. THE 7,890
INFLATION-ADJUSTED PROPERTY TAX LOSS EQUALS THE FIXED-RATE LEVY 7,891
LOSS DETERMINED UNDER DIVISION (D) OF SECTION 5727.84 OF THE 7,893
REVISED CODE FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT 7,894
PLUS THE PRODUCT OBTAINED BY MULTIPLYING THAT LOSS BY THE 7,895
CUMULATIVE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FROM 7,896
JANUARY 1, 2002, TO THE THIRTIETH DAY OF JUNE OF THE CURRENT 7,897
YEAR.
(3) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,899
COMPUTED UNDER DIVISION (B)(1) FROM THE AMOUNT OF THE 7,900
INFLATION-ADJUSTED PROPERTY TAX LOSS. IF THIS DIFFERENCE IS ZERO 7,901
OR A NEGATIVE NUMBER, NO FURTHER PAYMENTS SHALL BE MADE UNDER 7,902
DIVISION (C) OF THIS SECTION TO THE SCHOOL DISTRICT FROM THE 7,903
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND. IF THE DIFFERENCE 7,905
IS GREATER THAN ZERO, THE DEPARTMENT OF EDUCATION SHALL CERTIFY
THE AMOUNT CALCULATED IN DIVISION (A)(2) OF THIS SECTION TO THE 7,907
DIRECTOR OF BUDGET AND MANAGEMENT NOT LATER THAN THE THIRTY-FIRST 7,908
187
DAY OF DECEMBER OF EACH YEAR, BEGINNING IN 2006 AND ENDING IN 7,910
2016.
(C) FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT, THE 7,912
DIRECTOR OF BUDGET AND MANAGEMENT SHALL PAY FROM THE SCHOOL 7,913
DISTRICT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED 7,914
INCOME TAX FUND IN THE PROPER COUNTY TREASURY ALL OF THE 7,915
FOLLOWING: 7,916
(1) IN FEBRUARY 2002, ONE-HALF OF THE FIXED-RATE LEVY LOSS 7,918
CERTIFIED UNDER DIVISION (D) OF SECTION 5727.84 OF THE REVISED 7,921
CODE ON OR BEFORE THE DAY PRESCRIBED FOR THE SETTLEMENT UNDER 7,922
DIVISION (A) OF SECTION 321.24 OF THE REVISED CODE. 7,923
(2) FROM AUGUST 2002 THROUGH AUGUST 2006, ONE-HALF OF THE 7,926
AMOUNT CERTIFIED FOR THAT FISCAL YEAR UNDER DIVISION (A)(2) OF 7,927
THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 7,928
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 7,929
REVISED CODE. 7,930
(3) FROM FEBRUARY 2007 THROUGH AUGUST 2016, ONE-HALF OF 7,932
THE AMOUNT CERTIFIED FOR THAT CALENDAR YEAR UNDER DIVISION (B)(3) 7,934
OF THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 7,935
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 7,936
REVISED CODE. 7,937
THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 7,939
DIVISIONS (C)(1), (2), AND (3) OF THIS SECTION TO THE PROPER 7,940
SCHOOL DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS 7,941
TAXES, AND THE SCHOOL DISTRICT SHALL APPORTION THE AMOUNTS SO
RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE 7,942
AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 7,943
(D) NOT LATER THAN JANUARY 1, 2002, FOR ALL TAXING 7,945
DISTRICTS IN EACH JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 7,947
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 7,948
MANAGEMENT THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D) 7,950
OF SECTION 5727.84 OF THE REVISED CODE. FROM FEBRUARY 2002 TO 7,952
AUGUST 2016, THE DIRECTOR SHALL PAY FROM THE SCHOOL DISTRICT 7,953
PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX 7,954
188
FUND IN THE PROPER COUNTY TREASURY, ONE-HALF OF THE FIXED-RATE 7,955
LEVY LOSS SO CERTIFIED FOR EACH YEAR ON OR BEFORE EACH OF THE 7,956
DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER DIVISIONS (A) AND (C) 7,957
OF SECTION 321.24 OF THE REVISED CODE. THE COUNTY TREASURER 7,959
SHALL DISTRIBUTE SUCH AMOUNTS TO THE PROPER JOINT VOCATIONAL
SCHOOL DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS
TAXES, AND THE JOINT VOCATIONAL SCHOOL DISTRICT SHALL APPORTION 7,960
THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS 7,961
AS IF THOSE AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 7,962
(E)(1) NOT LATER THAN JANUARY 1, 2002, FOR EACH SCHOOL 7,964
DISTRICT AND JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 7,965
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND
MANAGEMENT THE FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) 7,966
OF SECTION 5727.84 OF THE REVISED CODE. THE CERTIFICATION SHALL 7,967
COVER A TIME PERIOD SUFFICIENT TO INCLUDE ALL FIXED-SUM LEVIES IN
EFFECT IN 1998 UNTIL THEY ARE DUE TO EXPIRE. THE DIRECTOR SHALL
PAY FROM THE SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND TO THE 7,968
COUNTY UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY 7,969
ONE-HALF OF THE FIXED-SUM LEVY LOSS SO CERTIFIED FOR EACH YEAR ON 7,970
OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER 7,971
DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED CODE. THE 7,973
COUNTY TREASURER SHALL DISTRIBUTE THE AMOUNTS TO THE PROPER 7,974
SCHOOL DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT AS IF THEY
HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE DISTRICT SHALL 7,975
APPORTION THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN THE SAME 7,976
PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED AND COLLECTED AS 7,977
TAXES. NO PAYMENTS SHALL BE MADE UNDER THIS DIVISION ONCE ALL 7,978
FIXED-SUM LEVIES IN EFFECT IN 1998 HAVE EXPIRED.
(2) BEGINNING IN 2003 AND ENDING IN 2016, BY THE 7,980
THIRTY-FIRST DAY OF JANUARY OF EACH YEAR, THE TAX COMMISSIONER 7,981
SHALL REVIEW THE CERTIFICATION ORIGINALLY MADE UNDER DIVISION 7,983
(E)(1) OF THIS SECTION. IF THE COMMISSIONER DETERMINES THAT A 7,984
FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 7,985
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 7,986
189
ALL SUBSEQUENT YEARS SHALL BE MADE TO THE DIRECTOR OF BUDGET AND 7,987
MANAGEMENT. 7,988
(F) BY AUGUST 5, 2002, THE TAX COMMISSIONER SHALL ESTIMATE 7,991
THE AMOUNT OF MONEY IN THE SCHOOL DISTRICT PROPERTY TAX 7,992
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE 7,993
PAYMENTS IN THAT MONTH UNDER DIVISIONS (C), (D), AND (E) OF THIS 7,994
SECTION. NOTWITHSTANDING DIVISION (C) OF THIS SECTION, THE 7,995
DEPARTMENT OF EDUCATION, IN CONSULTATION WITH THE TAX 7,996
COMMISSIONER AND FROM THOSE EXCESS FUNDS, MAY PAY ANY SCHOOL 7,998
DISTRICT FOUR AND ONE-HALF TIMES THE AMOUNT CERTIFIED UNDER
DIVISION (A)(2) OF THIS SECTION. PAYMENTS SHALL BE MADE IN ORDER 7,999
FROM THE SMALLEST ANNUAL LOSS TO THE LARGEST ANNUAL LOSS. A 8,000
PAYMENT MADE UNDER THIS DIVISION SHALL BE IN LIEU OF THE PAYMENT 8,002
TO BE MADE IN AUGUST 2002 UNDER DIVISION (C)(2) OF THIS SECTION. 8,003
NO PAYMENTS SHALL BE MADE IN THE MANNER ESTABLISHED IN THIS 8,004
DIVISION TO ANY SCHOOL DISTRICT WITH ANNUAL LOSSES FROM PERMANENT 8,005
IMPROVEMENT FIXED-RATE LEVIES IN EXCESS OF TWENTY THOUSAND 8,006
DOLLARS, OR ANNUAL LOSSES FROM ANY OTHER FIXED-RATE LEVIES IN 8,007
EXCESS OF TWENTY THOUSAND DOLLARS. A SCHOOL DISTRICT RECEIVING A 8,008
PAYMENT UNDER THIS DIVISION IS NO LONGER ENTITLED TO ANY FURTHER 8,009
PAYMENTS UNDER DIVISION (C) OF THIS SECTION. 8,010
(G) ON THE THIRTY-FIRST DAY OF JULY OF 2003, 2004, 2005, 8,012
AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY OF 2007 8,014
AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE SCHOOL 8,015
DISTRICT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT NEEDED 8,016
TO MAKE PAYMENTS FROM THE FUND UNDER DIVISIONS (C), (D), AND (E) 8,017
OF THIS SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET 8,019
AND MANAGEMENT SHALL DISTRIBUTE THE EXCESS AMONG SCHOOL DISTRICTS 8,020
AND JOINT VOCATIONAL SCHOOL DISTRICTS. THE AMOUNT DISTRIBUTED TO 8,022
EACH DISTRICT SHALL BEAR THE SAME PROPORTION TO THE EXCESS 8,023
REMAINING IN THE FUND AS THE ADM OF THE DISTRICT BEARS TO THE ADM 8,024
OF ALL OF THE DISTRICTS. FOR THE PURPOSE OF THIS DIVISION, "ADM" 8,025
MEANS THE FORMULA ADM IN THE CASE OF A SCHOOL DISTRICT, AND THE 8,027
AVERAGE DAILY MEMBERSHIP REPORTED UNDER SECTION 3317.03 OF THE 8,028
190
REVISED CODE IN THE CASE OF A JOINT VOCATIONAL SCHOOL DISTRICT. 8,029
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 8,031
MANAGEMENT, THE EXCESS REMAINING IN THE SCHOOL DISTRICT PROPERTY 8,032
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 8,033
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 8,034
CREDIT OF THE FUND.
AMOUNTS RECEIVED BY A SCHOOL DISTRICT OR JOINT VOCATIONAL 8,036
SCHOOL DISTRICT UNDER THIS DIVISION SHALL BE USED EXCLUSIVELY FOR 8,037
CAPITAL IMPROVEMENTS. 8,038
(H) IF THE TOTAL AMOUNT IN THE SCHOOL DISTRICT PROPERTY 8,040
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 8,041
DIVISIONS (C), (D), AND (E) OF THIS SECTION, THE PAYMENTS 8,042
REQUIRED UNDER DIVISION (E) OF THIS SECTION SHALL BE MADE FIRST 8,043
IN THEIR ENTIRETY. AFTER ALL PAYMENTS ARE MADE UNDER DIVISION 8,044
(E) OF THIS SECTION, PAYMENTS UNDER DIVISIONS (C) AND (D) OF THIS 8,045
SECTION SHALL BE MADE FROM THE BALANCE OF MONEY AVAILABLE IN THE 8,046
PROPORTION OF EACH SCHOOL DISTRICT'S OR JOINT VOCATIONAL SCHOOL 8,047
DISTRICT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF PAYMENTS UNDER 8,048
DIVISIONS (C) AND (D) OF THIS SECTION. 8,049
(I) IF ALL OR A PART OF THE TERRITORY OF A SCHOOL DISTRICT 8,051
OR JOINT VOCATIONAL SCHOOL DISTRICT IS MERGED WITH OR TRANSFERRED 8,052
TO ANOTHER DISTRICT, THE TAX COMMISSIONER SHALL ADJUST THE
PAYMENTS MADE UNDER THIS SECTION TO EACH OF THE DISTRICTS IN 8,053
PROPORTION TO THE TAX VALUE LOSS APPORTIONED TO THE MERGED OR 8,054
TRANSFERRED TERRITORY. 8,055
(J) THERE IS HEREBY CREATED THE ELECTRIC PROPERTY TAX 8,057
STUDY COMMITTEE, EFFECTIVE JANUARY 1, 2011. THE COMMITTEE SHALL 8,058
CONSIST OF THE FOLLOWING SEVEN MEMBERS: THE TAX COMMISSIONER, 8,059
THREE MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE 8,060
SENATE, AND THREE MEMBERS OF THE HOUSE OF REPRESENTATIVES 8,061
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. THE 8,062
APPOINTMENTS SHALL BE MADE NOT LATER THAN JANUARY 31, 2011. THE 8,063
TAX COMMISSIONER SHALL BE THE CHAIRPERSON OF THE COMMITTEE. 8,064
THE COMMITTEE SHALL STUDY THE EXTENT TO WHICH EACH SCHOOL 8,066
191
DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT HAS BEEN 8,067
COMPENSATED, UNDER SECTIONS 5727.84 AND 5727.85 OF THE REVISED 8,068
CODE AS ENACTED BY SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd 8,069
GENERAL ASSEMBLY AND ANY SUBSEQUENT ACTS, FOR THE PROPERTY TAX 8,070
LOSS CAUSED BY THE REDUCTION IN THE ASSESSMENT RATES FOR ELECTRIC
AND RURAL ELECTRIC COMPANY TANGIBLE PERSONAL PROPERTY. NOT LATER 8,071
THAN JUNE 30, 2011, THE COMMITTEE SHALL ISSUE A REPORT OF ITS 8,072
FINDINGS, INCLUDING ANY RECOMMENDATIONS FOR PROVIDING ADDITIONAL 8,073
COMPENSATION FOR THE PROPERTY TAX LOSS OR REGARDING REMEDIAL
LEGISLATION, TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF 8,074
THE HOUSE OF REPRESENTATIVES, AT WHICH TIME THE COMMITTEE SHALL 8,075
CEASE TO EXIST.
THE DEPARTMENT OF TAXATION AND DEPARTMENT OF EDUCATION 8,077
SHALL PROVIDE SUCH INFORMATION AND ASSISTANCE AS IS REQUIRED FOR 8,078
THE COMMITTEE TO CARRY OUT ITS DUTIES. 8,079
Sec. 5727.86. (A) NOT LATER THAN JANUARY 1, 2002, THE TAX 8,081
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 8,082
MANAGEMENT, FOR ALL TAXING DISTRICTS IN EACH LOCAL TAXING UNIT,
THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D), AND THE 8,083
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E), OF SECTION 8,084
5727.84 OF THE REVISED CODE. BASED ON THAT CERTIFICATION, THE 8,085
DIRECTOR SHALL COMPUTE THE PAYMENTS TO BE MADE TO EACH LOCAL 8,086
TAXING UNIT FOR EACH YEAR ACCORDING TO DIVISIONS (A)(1), (2), AND 8,087
(3) AND DIVISION (E) OF THIS SECTION, AND SHALL DISTRIBUTE THE 8,089
PAYMENTS IN THE MANNER PRESCRIBED BY DIVISION (C) OF THIS 8,090
SECTION. THE CERTIFICATION OF THE FIXED-SUM LEVY LOSS SHALL 8,091
COVER A PERIOD OF TIME SUFFICIENT TO INCLUDE ALL FIXED-SUM LEVIES 8,092
IN EFFECT IN 1998 UNTIL THEY ARE DUE TO EXPIRE. 8,093
(1) EXCEPT AS PROVIDED IN DIVISION (A)(3) OF THIS SECTION, 8,095
FOR FIXED-RATE LEVY LOSSES DETERMINED UNDER DIVISION (D) OF 8,096
SECTION 5727.84 OF THE REVISED CODE, PAYMENTS SHALL BE MADE IN 8,097
EACH OF THE FOLLOWING YEARS AT THE FOLLOWING PERCENTAGE OF THE 8,098
FIXED-RATE LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 8,099
SECTION:
192
YEAR PERCENTAGE 8,102
2002 100% 8,104
2003 100% 8,105
2004 100% 8,106
2005 100% 8,107
2006 100% 8,108
2007 80% 8,109
2008 80% 8,110
2009 80% 8,111
2010 80% 8,112
2011 80% 8,113
2012 66.7% 8,114
2013 53.4% 8,115
2014 40.1% 8,116
2015 26.8% 8,117
2016 13.5% 8,119
2017 AND THEREAFTER 0% 8,121
(2) FOR FIXED-SUM LEVY LOSSES DETERMINED UNDER DIVISION 8,124
(E) OF SECTION 5727.84 OF THE REVISED CODE, ONE HUNDRED PER CENT 8,125
OF THE FIXED-SUM LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 8,126
SECTION FOR PAYMENTS REQUIRED TO BE MADE IN 2002 AND THEREAFTER. 8,127
(3) A LOCAL TAXING UNIT IN A COUNTY OF LESS THAN TWO 8,129
HUNDRED FIFTY SQUARE MILES THAT RECEIVES EIGHTY PER CENT OR MORE 8,130
OF ITS COMBINED GENERAL FUND AND BOND RETIREMENT FUND REVENUES 8,131
FROM PROPERTY TAXES AND ROLLBACKS BASED ON 1997 ACTUAL REVENUES 8,132
AS PRESENTED IN ITS 1999 TAX BUDGET, AND IN WHICH ELECTRIC 8,133
COMPANIES AND RURAL ELECTRIC COMPANIES COMPRISE OVER TWENTY PER 8,134
CENT OF ITS PROPERTY VALUATION, SHALL RECEIVE ONE HUNDRED PER 8,135
CENT OF ITS FIXED-RATE LEVY LOSSES CERTIFIED UNDER DIVISION (A) 8,136
OF THIS SECTION IN YEARS 2002 TO 2016. 8,137
(B) BEGINNING IN 2003, BY THE THIRTY-FIRST DAY OF JANUARY 8,140
OF EACH YEAR, THE TAX COMMISSIONER SHALL REVIEW THE CERTIFICATION 8,141
ORIGINALLY MADE UNDER DIVISION (A) OF THIS SECTION OF THE 8,142
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) OF SECTION 8,143
193
5727.84 OF THE REVISED CODE. IF THE COMMISSIONER DETERMINES THAT 8,145
A FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 8,146
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 8,147
ALL SUBSEQUENT YEARS SHALL BE MADE. 8,148
(C) PAYMENTS TO LOCAL TAXING UNITS REQUIRED TO BE MADE 8,150
UNDER DIVISIONS (A) AND (E) OF THIS SECTION SHALL BE PAID FROM 8,151
THE LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY 8,153
UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY. 8,154
ONE-HALF OF THE AMOUNT CERTIFIED UNDER THOSE DIVISIONS SHALL BE 8,155
PAID ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS 8,156
UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED 8,158
CODE. THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 8,159
DIVISION (A) OF THIS SECTION TO THE PROPER LOCAL TAXING UNIT AS 8,160
IF THEY HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE LOCAL
TAXING UNIT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG ITS 8,161
FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED
AND COLLECTED AS TAXES. AMOUNTS DISTRIBUTED UNDER DIVISION (E) 8,162
OF THIS SECTION SHALL BE CREDITED TO THE GENERAL FUND OF THE 8,163
LOCAL TAXING UNIT THAT RECEIVES THEM. 8,164
(D) BY FEBRUARY 5, 2002, THE TAX COMMISSIONER SHALL 8,166
ESTIMATE THE AMOUNT OF MONEY IN THE LOCAL GOVERNMENT PROPERTY TAX 8,167
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE
PAYMENTS IN THAT MONTH UNDER DIVISION (C) OF THIS SECTION. 8,168
NOTWITHSTANDING DIVISION (A) OF THIS SECTION, THE TAX 8,169
COMMISSIONER MAY PAY ANY LOCAL TAXING UNIT, FROM THOSE EXCESS
FUNDS, NINE AND FOUR-TENTHS TIMES THE AMOUNT COMPUTED FOR 2002 8,170
UNDER DIVISION (A)(1) OF THIS SECTION. A PAYMENT MADE UNDER THIS 8,171
DIVISION SHALL BE IN LIEU OF THE PAYMENT TO BE MADE IN FEBRUARY 8,172
2002 UNDER DIVISION (A)(1) OF THIS SECTION. A LOCAL TAXING UNIT 8,173
RECEIVING A PAYMENT UNDER THIS DIVISION WILL NO LONGER BE 8,174
ENTITLED TO ANY FURTHER PAYMENTS UNDER DIVISION (A)(1) OF THIS 8,175
SECTION.
(E) ON THE THIRTY-FIRST DAY OF JULY OF 2002, 2003, 2004, 8,177
2005, AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY 8,179
194
OF 2007 AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE 8,180
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT 8,181
NEEDED TO BE DISTRIBUTED FROM THE FUND UNDER DIVISION (A) OF THIS 8,182
SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET AND 8,183
MANAGEMENT SHALL DISTRIBUTE THE EXCESS TO EACH COUNTY AS FOLLOWS: 8,184
(1) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN 8,186
PROPORTION TO EACH COUNTY'S POPULATION. 8,187
(2) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN THE 8,189
PROPORTION THAT THE AMOUNTS DETERMINED UNDER DIVISIONS (D) AND 8,191
(E) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 8,192
DISTRICTS IN THE COUNTY IS OF THE TOTAL AMOUNTS SO DETERMINED FOR 8,193
ALL TAXING DISTRICTS IN THE STATE. 8,194
THE AMOUNTS DISTRIBUTED TO EACH COUNTY UNDER THIS DIVISION 8,196
SHALL BE DISTRIBUTED BY THE COUNTY BUDGET COMMISSION TO EACH 8,197
LOCAL TAXING UNIT IN THE COUNTY IN THE PROPORTION THAT THE UNIT'S 8,198
CURRENT TAXES CHARGED AND PAYABLE ARE OF THE TOTAL CURRENT TAXES 8,199
CHARGED AND PAYABLE OF ALL THE LOCAL TAXING UNITS IN THE COUNTY. 8,200
AS USED IN THIS DIVISION, "CURRENT TAXES CHARGED AND PAYABLE" 8,201
MEANS THE TAXES CHARGED AND PAYABLE AS MOST RECENTLY DETERMINED 8,202
FOR LOCAL TAXING UNITS IN THE COUNTY. 8,203
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 8,205
MANAGEMENT, THE EXCESS REMAINING IN THE LOCAL GOVERNMENT PROPERTY 8,206
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 8,207
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 8,208
CREDIT OF THE FUND.
(F) IF THE TOTAL AMOUNT IN THE LOCAL GOVERNMENT PROPERTY 8,210
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 8,211
DIVISION (C) OF THIS SECTION, THE PAYMENTS REQUIRED UNDER 8,212
DIVISION (A)(2) OF THIS SECTION SHALL BE MADE FIRST IN THEIR 8,213
ENTIRETY. AFTER ALL SUCH PAYMENTS ARE MADE, PAYMENTS UNDER 8,214
DIVISIONS (A)(1) AND (3) OF THIS SECTION SHALL BE MADE FROM THE 8,215
BALANCE OF MONEY AVAILABLE IN THE PROPORTION OF EACH LOCAL TAXING 8,216
UNIT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF ALL PAYMENTS TO BE 8,217
MADE UNDER DIVISION (A)(2) OF THIS SECTION. 8,219
195
(G) IF ALL OR A PART OF THE TERRITORIES OF TWO OR MORE 8,221
LOCAL TAXING UNITS ARE MERGED, OR UNINCORPORATED TERRITORY OF A 8,222
TOWNSHIP IS ANNEXED BY A MUNICIPAL CORPORATION, THE TAX 8,223
COMMISSIONER SHALL ADJUST THE PAYMENTS MADE UNDER THIS SECTION TO 8,224
EACH OF THE LOCAL TAXING UNITS IN PROPORTION TO THE TAX VALUE 8,225
LOSS APPORTIONED TO THE MERGED OR ANNEXED TERRITORY, OR AS 8,226
OTHERWISE PROVIDED BY A WRITTEN AGREEMENT BETWEEN THE LEGISLATIVE 8,227
AUTHORITIES OF THE LOCAL TAXING UNITS CERTIFIED TO THE TAX 8,228
COMMISSIONER NOT LATER THAN THE FIRST DAY OF JUNE OF THE CALENDAR 8,229
YEAR IN WHICH THE PAYMENT IS TO BE MADE. 8,230
Sec. 5727.87. (A) AS USED IN THIS SECTION: 8,232
(1) "ADMINISTRATIVE FEES" MEANS THE DOLLAR PERCENTAGES 8,234
ALLOWED BY THE COUNTY AUDITOR FOR SERVICES OR BY THE COUNTY 8,235
TREASURER AS FEES, OR PAID TO THE CREDIT OF THE REAL ESTATE 8,236
ASSESSMENT FUND, UNDER DIVISIONS (A) AND (B) OF SECTION 319.54 8,237
AND DIVISION (A) OF SECTION 321.26 OF THE REVISED CODE. 8,239
(2) "ADMINISTRATIVE FEE LOSS" MEANS A COUNTY'S LOSS OF 8,241
ADMINISTRATIVE FEES DUE TO ITS TAX VALUE LOSS, DETERMINED AS 8,242
FOLLOWS:
(a) FOR PURPOSES OF THE DETERMINATION MADE UNDER DIVISION 8,244
(B) OF THIS SECTION IN THE YEARS 2002 THROUGH 2006, THE 8,246
ADMINISTRATIVE FEE LOSS SHALL BE COMPUTED BY MULTIPLYING THE 8,247
AMOUNTS DETERMINED FOR ALL TAXING DISTRICTS IN THE COUNTY UNDER 8,248
DIVISIONS (D) AND (E) OF SECTION 5727.84 OF THE REVISED CODE BY 8,250
NINE THOUSAND SIX HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER 8,252
CENT, IF TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 8,253
EXCEEDED ONE HUNDRED FIFTY MILLION DOLLARS, OR ONE AND ONE 8,254
THOUSAND ONE HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER CENT, IF 8,255
TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 WERE ONE 8,256
HUNDRED FIFTY MILLION DOLLARS OR LESS; 8,257
(b) FOR PURPOSES OF THE DETERMINATION UNDER DIVISION (B) 8,259
OF THIS SECTION IN THE YEARS 2007 THROUGH 2011, THE 8,261
ADMINISTRATIVE FEE LOSS SHALL BE DETERMINED BY SUBTRACTING FROM 8,262
THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES COLLECTED IN THE COUNTY 8,263
196
IN TAX YEAR 1998, THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES 8,264
COLLECTED IN THE COUNTY IN THE CURRENT CALENDAR YEAR. 8,265
(B) NOT LATER THAN THE FIRST DAY OF JUNE OF 2002 THROUGH 8,267
2011, THE COUNTY AUDITOR SHALL DETERMINE THE ADMINISTRATIVE FEE 8,270
LOSS FOR THE COUNTY AND CERTIFY IT TO THE COUNTY BUDGET 8,271
COMMISSION. NOTWITHSTANDING DIVISIONS (C), (D), AND (E) OF 8,272
SECTION 5727.85 AND DIVISION (C) OF SECTION 5727.86 OF THE 8,274
REVISED CODE, PRIOR TO DISTRIBUTION BY THE COUNTY TREASURER OF 8,276
THE PAYMENTS PROVIDED UNDER THOSE DIVISIONS, THE COUNTY BUDGET 8,277
COMMISSION SHALL DEDUCT FROM THOSE PAYMENTS THE AMOUNT OF THE 8,278
ADMINISTRATIVE FEE LOSS CERTIFIED BY THE COUNTY AUDITOR, AS 8,279
FOLLOWS:
(1) SEVENTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,281
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISIONS (C), (D), 8,283
AND (E) OF SECTION 5727.85 OF THE REVISED CODE. 8,284
(2) THIRTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,286
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISION (C) OF 8,287
SECTION 5727.86 OF THE REVISED CODE. 8,288
(C) ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,290
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,291
REVISED CODE IN THE YEARS 2002 THROUGH 2011, THE COUNTY BUDGET 8,293
COMMISSION SHALL PAY ONE-HALF OF THE AMOUNT OF THE ADMINISTRATIVE 8,294
FEE LOSS TO THE COUNTY AUDITOR, COUNTY TREASURER, OR REAL ESTATE 8,295
ASSESSMENT FUND AS IF THE AMOUNT HAD BEEN ALLOWED AS 8,296
ADMINISTRATIVE FEES, AND SHALL DEPOSIT THE AMOUNT IN THE SAME 8,297
FUNDS AS IF ALLOWED AS ADMINISTRATIVE FEES. 8,298
AFTER PAYMENT OF THE ADMINISTRATIVE FEE LOSS ON OR BEFORE 8,300
AUGUST 10, 2011, ALL PAYMENTS UNDER THIS SECTION SHALL CEASE. 8,301
Sec. 5727.88. THE TAX COMMISSIONER SHALL ADMINISTER 8,303
SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE AND MAY ADOPT 8,306
SUCH RULES AS ARE NECESSARY TO ADMINISTER THOSE SECTIONS. UPON 8,308
REQUEST OF THE TAX COMMISSIONER, THE PUBLIC UTILITIES COMMISSION
SHALL ASSIST THE TAX COMMISSIONER BY PROVIDING INFORMATION 8,309
REGARDING ANY ELECTRIC DISTRIBUTION COMPANY THAT IS SUBJECT TO 8,310
197
REGULATION BY THE COMMISSION. 8,311
Sec. 5727.89. (A) THE TAX COMMISSIONER MAY MAKE AN 8,314
ASSESSMENT, BASED ON ANY INFORMATION IN THE COMMISSIONER'S
POSSESSION, AGAINST ANY ELECTRIC DISTRIBUTION COMPANY, 8,315
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER THAT FAILS TO 8,318
FILE A RETURN OR PAY ANY TAX, INTEREST, OR ADDITIONAL CHARGE AS 8,319
REQUIRED BY SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE. 8,321
WHEN INFORMATION IN THE POSSESSION OF THE TAX COMMISSIONER 8,323
INDICATES THAT A PERSON LIABLE FOR THE TAX IMPOSED BY SECTION 8,325
5727.81 OF THE REVISED CODE HAS NOT PAID THE FULL AMOUNT OF TAX 8,328
DUE, THE COMMISSIONER MAY AUDIT A REPRESENTATIVE SAMPLE OF THE 8,329
PERSON'S BUSINESS AND MAY ISSUE AN ASSESSMENT BASED ON THE AUDIT. 8,330
THE COMMISSIONER SHALL GIVE THE PERSON ASSESSED WRITTEN NOTICE OF 8,331
THE ASSESSMENT BY PERSONAL SERVICE OR CERTIFIED MAIL. 8,332
THE TAX COMMISSIONER MAY ISSUE AN ASSESSMENT FOR WHICH THE 8,334
TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WAS DUE AND 8,335
UNPAID ON THE DATE THE PERSON WAS INFORMED BY AN AGENT OF THE TAX 8,337
COMMISSIONER OF AN INVESTIGATION OR AUDIT OF THE PERSON. ANY 8,338
PAYMENT OF THE TAX FOR THE PERIOD COVERED BY THE ASSESSMENT, 8,339
AFTER THE PERSON IS SO INFORMED, SHALL BE CREDITED AGAINST THE 8,340
ASSESSMENT. 8,341
A PENALTY OF FIFTEEN PER CENT SHALL BE ADDED TO ALL AMOUNTS 8,344
ASSESSED UNDER THIS SECTION. THE COMMISSIONER MAY ADOPT RULES 8,345
PROVIDING FOR THE REMISSION OF PENALTIES.
(B) UNLESS THE PARTY ASSESSED FILES WITH THE TAX 8,348
COMMISSIONER WITHIN THIRTY DAYS AFTER SERVICE OF THE NOTICE OF 8,349
ASSESSMENT, EITHER PERSONALLY OR BY CERTIFIED MAIL, A WRITTEN 8,350
PETITION FOR REASSESSMENT SIGNED BY THE PARTY ASSESSED OR THE 8,351
PARTY'S AUTHORIZED AGENT HAVING KNOWLEDGE OF THE FACTS, THE 8,352
ASSESSMENT IS FINAL AND THE AMOUNT OF THE ASSESSMENT IS DUE AND 8,353
PAYABLE FROM THE PARTY ASSESSED TO THE TREASURER OF STATE. THE 8,354
PETITION SHALL INDICATE THE OBJECTIONS OF THE PARTY ASSESSED, BUT 8,355
ADDITIONAL OBJECTIONS MAY BE RAISED IN WRITING PRIOR TO THE DATE 8,356
SHOWN ON THE FINAL DETERMINATION OF THE TAX COMMISSIONER. THE 8,357
198
COMMISSIONER SHALL GRANT THE PETITIONER A HEARING ON THE 8,358
PETITION, UNLESS WAIVED BY THE PETITIONER. 8,359
(C) THE COMMISSIONER MAY MAKE ANY CORRECTION TO THE 8,362
ASSESSMENT THAT THE COMMISSIONER FINDS PROPER AND SHALL ISSUE A 8,363
FINAL DETERMINATION THEREON. THE COMMISSIONER SHALL SERVE A COPY 8,364
OF THE FINAL DETERMINATION ON THE PETITIONER EITHER BY PERSONAL 8,365
SERVICE OR BY CERTIFIED MAIL, AND THE COMMISSIONER'S DECISION IN 8,366
THE MATTER IS FINAL, SUBJECT TO APPEAL UNDER SECTION 5717.02 OF 8,367
THE REVISED CODE. 8,369
(D) AFTER AN ASSESSMENT BECOMES FINAL, IF ANY PORTION OF 8,372
THE ASSESSMENT, INCLUDING ACCRUED INTEREST, REMAINS UNPAID, A 8,373
CERTIFIED COPY OF THE COMMISSIONER'S ENTRY MAKING THE ASSESSMENT 8,374
FINAL MAY BE FILED IN THE OFFICE OF THE CLERK OF THE COURT OF 8,375
COMMON PLEAS IN THE COUNTY IN WHICH THE PARTY ASSESSED RESIDES OR 8,376
IN WHICH THE PARTY'S BUSINESS IS CONDUCTED. IF THE PARTY 8,377
ASSESSED MAINTAINS NO PLACE OF BUSINESS IN THIS STATE AND IS NOT 8,378
A RESIDENT OF THIS STATE, THE CERTIFIED COPY OF THE ENTRY MAY BE 8,380
FILED IN THE OFFICE OF THE CLERK OF THE COURT OF COMMON PLEAS OF 8,381
FRANKLIN COUNTY. 8,382
THE CLERK, IMMEDIATELY UPON THE FILING OF THE ENTRY, SHALL 8,384
ENTER A JUDGMENT FOR THE STATE AGAINST THE PERSON ASSESSED IN THE 8,386
AMOUNT SHOWN ON THE ENTRY. THE JUDGMENT MAY BE FILED BY THE
CLERK IN A LOOSE-LEAF BOOK ENTITLED "SPECIAL JUDGMENTS FOR THE 8,387
KILOWATT-HOUR TAX," AND SHALL HAVE THE SAME EFFECT AS OTHER 8,388
JUDGMENTS. EXECUTION SHALL ISSUE UPON THE JUDGMENT AT THE 8,389
REQUEST OF THE TAX COMMISSIONER, AND ALL LAWS APPLICABLE TO SALES 8,390
ON EXECUTION SHALL APPLY TO SALES MADE UNDER THE JUDGMENT. 8,391
THE PORTION OF THE ASSESSMENT NOT PAID WITHIN THIRTY DAYS 8,393
AFTER THE DAY THE ASSESSMENT WAS ISSUED SHALL BEAR INTEREST AT 8,394
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 8,397
CODE FROM THE DAY THE TAX COMMISSIONER ISSUES THE ASSESSMENT 8,398
UNTIL THE DAY THE ASSESSMENT IS PAID. INTEREST SHALL BE PAID IN 8,399
THE SAME MANNER AS THE TAX AND MAY BE COLLECTED BY THE ISSUANCE 8,400
OF AN ASSESSMENT UNDER THIS SECTION. 8,401
199
(E) IF THE TAX COMMISSIONER BELIEVES THAT COLLECTION OF 8,404
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WILL BE 8,406
JEOPARDIZED UNLESS PROCEEDINGS TO COLLECT OR SECURE COLLECTION OF 8,407
THE TAX ARE INSTITUTED WITHOUT DELAY, THE COMMISSIONER MAY ISSUE 8,408
A JEOPARDY ASSESSMENT AGAINST THE ELECTRIC DISTRIBUTION COMPANY, 8,409
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER LIABLE FOR THE 8,412
TAX. UPON ISSUANCE OF THE JEOPARDY ASSESSMENT, THE COMMISSIONER 8,413
IMMEDIATELY SHALL FILE AN ENTRY WITH THE CLERK OF THE COURT OF 8,414
COMMON PLEAS IN THE MANNER PRESCRIBED BY DIVISION (D) OF THIS 8,415
SECTION. NOTICE OF THE JEOPARDY ASSESSMENT SHALL BE SERVED ON 8,416
THE PARTY ASSESSED OR THE PARTY'S LEGAL REPRESENTATIVE WITHIN 8,417
FIVE DAYS OF THE FILING OF THE ENTRY WITH THE CLERK. THE TOTAL 8,418
AMOUNT ASSESSED IS IMMEDIATELY DUE AND PAYABLE, UNLESS THE PARTY 8,419
ASSESSED FILES A PETITION FOR REASSESSMENT IN ACCORDANCE WITH 8,420
DIVISION (B) OF THIS SECTION AND PROVIDES SECURITY IN A FORM 8,422
SATISFACTORY TO THE COMMISSIONER AND IN AN AMOUNT SUFFICIENT TO 8,423
SATISFY THE UNPAID BALANCE OF THE ASSESSMENT. FULL OR PARTIAL 8,424
PAYMENT OF THE ASSESSMENT DOES NOT PREJUDICE THE COMMISSIONER'S 8,425
CONSIDERATION OF THE PETITION FOR REASSESSMENT. 8,426
(F) ALL MONEY COLLECTED BY THE TAX COMMISSIONER UNDER THIS 8,429
SECTION SHALL BE PAID TO THE TREASURER OF STATE, AND WHEN PAID 8,430
SHALL BE CONSIDERED AS REVENUE ARISING FROM THE TAX IMPOSED BY 8,431
SECTION 5727.81 OF THE REVISED CODE. 8,433
Sec. 5727.90. NO ASSESSMENT OF THE TAX IMPOSED BY SECTION 8,435
5727.81 OF THE REVISED CODE SHALL BE MADE BY THE TAX COMMISSIONER 8,438
MORE THAN FOUR YEARS AFTER THE DATE ON WHICH THE RETURN FOR THE 8,439
PERIOD ASSESSED WAS DUE OR FILED, WHICHEVER DATE IS LATER. THIS 8,440
SECTION DOES NOT BAR AN ASSESSMENT WHEN ANY OF THE FOLLOWING 8,441
OCCUR:
(A) THE PARTY ASSESSED FAILED TO FILE A RETURN AS REQUIRED 8,444
BY SECTION 5727.82 OF THE REVISED CODE; 8,446
(B) THE PARTY ASSESSED KNOWINGLY FILED A FALSE OR 8,449
FRAUDULENT RETURN;
(C) THE PARTY ASSESSED AND THE TAX COMMISSIONER WAIVED IN 8,452
200
WRITING THE TIME LIMITATION. 8,453
Sec. 5727.91. (A) THE TREASURER OF STATE SHALL REFUND THE 8,456
AMOUNT OF TAX PAID UNDER SECTION 5727.81 OF THE REVISED CODE THAT 8,458
WAS PAID ILLEGALLY OR ERRONEOUSLY, OR PAID ON AN ILLEGAL OR 8,459
ERRONEOUS ASSESSMENT. AN ELECTRIC DISTRIBUTION COMPANY OR 8,460
SELF-ASSESSING PURCHASER SHALL FILE AN APPLICATION FOR A REFUND 8,461
WITH THE TAX COMMISSIONER ON A FORM PRESCRIBED BY THE
COMMISSIONER, WITHIN FOUR YEARS OF THE ILLEGAL OR ERRONEOUS 8,462
PAYMENT OF THE TAX. 8,463
UPON THE FILING OF THE APPLICATION, THE COMMISSIONER SHALL 8,465
DETERMINE THE AMOUNT OF REFUND DUE AND CERTIFY THAT AMOUNT TO THE 8,467
DIRECTOR OF BUDGET AND MANAGEMENT AND THE TREASURER OF STATE FOR 8,468
PAYMENT FROM THE TAX REFUND FUND UNDER SECTION 5703.052 OF THE 8,469
REVISED CODE. IF THE APPLICATION FOR REFUND IS FOR TAXES PAID ON 8,471
AN ILLEGAL OR ERRONEOUS ASSESSMENT, THE TAX COMMISSIONER SHALL 8,472
INCLUDE IN THE CERTIFIED AMOUNT INTEREST CALCULATED AT THE RATE 8,473
PER ANNUM UNDER SECTION 5703.47 OF THE REVISED CODE FROM THE DATE 8,475
OF OVERPAYMENT TO THE DATE OF THE COMMISSIONER'S CERTIFICATION. 8,477
(B) IF AN ELECTRIC DISTRIBUTION COMPANY ENTITLED TO A 8,480
REFUND OF TAXES UNDER THIS SECTION IS INDEBTED TO THE STATE FOR 8,481
ANY TAX OR FEE ADMINISTERED BY THE TAX COMMISSIONER THAT IS PAID 8,482
TO THE STATE OR ANY CHARGE, PENALTY, OR INTEREST ARISING FROM 8,484
SUCH A TAX OR FEE, THE AMOUNT REFUNDABLE MAY BE APPLIED IN 8,485
SATISFACTION OF THE DEBT. IF THE AMOUNT REFUNDABLE IS LESS THAN 8,486
THE AMOUNT OF THE DEBT, IT MAY BE APPLIED IN PARTIAL SATISFACTION 8,487
OF THE DEBT. IF THE AMOUNT REFUNDABLE IS GREATER THAN THE AMOUNT 8,488
OF THE DEBT, THE AMOUNT REMAINING AFTER SATISFACTION OF THE DEBT 8,489
SHALL BE REFUNDED. IF THE ELECTRIC DISTRIBUTION COMPANY HAS MORE 8,490
THAN ONE SUCH DEBT, ANY DEBT SUBJECT TO SECTION 5739.33 OR 8,491
DIVISION (G) OF SECTION 5747.07 OF THE REVISED CODE SHALL BE 8,494
SATISFIED FIRST. THIS SECTION APPLIES ONLY TO DEBTS THAT HAVE 8,495
BECOME FINAL. 8,496
(C) ANY ELECTRIC DISTRIBUTION COMPANY THAT CAN 8,499
SUBSTANTIATE TO THE TAX COMMISSIONER THAT THE TAX IMPOSED BY 8,500
201
SECTION 5727.81 OF THE REVISED CODE WAS PAID ON ELECTRICITY 8,502
DISTRIBUTED VIA WIRES AND CONSUMED AT A LOCATION OUTSIDE OF THIS 8,503
STATE MAY CLAIM A REFUND IN THE MANNER AND WITHIN THE TIME PERIOD 8,504
PRESCRIBED IN DIVISION (A) OF THIS SECTION. 8,506
(D) BEFORE A REFUND IS ISSUED UNDER THIS SECTION, AN 8,508
ELECTRIC DISTRIBUTION COMPANY SHALL CERTIFY, AS PRESCRIBED BY THE 8,509
TAX COMMISSIONER, THAT IT EITHER DID NOT INCLUDE THE TAX IMPOSED 8,510
BY SECTION 5727.81 OF THE REVISED CODE IN ITS DISTRIBUTION CHARGE 8,511
TO AN ELECTRIC CUSTOMER UPON WHICH A REFUND OF THE TAX IS 8,512
CLAIMED, OR IT HAS REFUNDED OR CREDITED TO THE ELECTRIC CUSTOMER 8,513
THE EXCESS DISTRIBUTION CHARGE RELATED TO THE TAX THAT WAS 8,514
ERRONEOUSLY INCLUDED IN THE ELECTRIC CUSTOMER'S DISTRIBUTION
CHARGE. 8,515
Sec. 5727.92. EVERY PERSON LIABLE FOR THE TAX IMPOSED BY 8,518
SECTION 5727.81 OF THE REVISED CODE SHALL KEEP COMPLETE AND 8,520
ACCURATE RECORDS OF ALL ELECTRIC DISTRIBUTIONS AND OTHER RECORDS 8,521
AS REQUIRED BY THE TAX COMMISSIONER. THE RECORDS SHALL BE 8,523
PRESERVED FOR FOUR YEARS AFTER THE RETURN FOR THE TAXES TO WHICH 8,524
THE RECORDS PERTAIN IS DUE OR FILED, WHICHEVER IS LATER. THE 8,525
RECORDS SHALL BE AVAILABLE FOR INSPECTION BY THE TAX COMMISSIONER 8,526
OR THE COMMISSIONER'S AUTHORIZED AGENT, UPON REQUEST OF THE 8,527
COMMISSIONER OR SUCH AGENT.
Sec. 5727.93. (A) NO PERSON SHALL DISTRIBUTE ELECTRICITY 8,530
TO A METER OF AN END USER IN THIS STATE WHO IS NOT REGISTERED 8,531
WITH THE TAX COMMISSIONER AS AN ELECTRIC DISTRIBUTION COMPANY. 8,532
(B) EACH PERSON REQUIRED TO REGISTER UNDER DIVISION (A) OF 8,536
THIS SECTION SHALL REGISTER PRIOR TO DISTRIBUTING ELECTRICITY TO 8,537
A METER OF AN END USER IN THIS STATE. THE TAX COMMISSIONER SHALL 8,538
PRESCRIBE THE FORM OF THE REGISTRATION APPLICATION. THE
COMMISSIONER SHALL ASSIGN AN IDENTIFICATION NUMBER TO EACH 8,539
REGISTRATION AND NOTIFY THE REGISTRANT OF THAT NUMBER. THE 8,540
REGISTRATION SHALL REMAIN IN EFFECT UNTIL CANCELED IN WRITING BY 8,541
THE REGISTRANT UPON THE CESSATION OF DISTRIBUTING ELECTRICITY TO 8,542
A METER OF AN END USER IN THIS STATE OR UNTIL SUCH REGISTRATION 8,543
202
IS DENIED, REVOKED, OR CANCELED BY THE COMMISSIONER. A 8,544
REGISTRATION MAY BE REVOKED OR CANCELED BY THE TAX COMMISSIONER 8,545
AS PROVIDED BY CHAPTER 119. OF THE REVISED CODE, FOR FAILURE OF 8,548
AN ELECTRIC DISTRIBUTION COMPANY TO PAY THE TAX IMPOSED BY 8,549
SECTION 5727.81 OF THE REVISED CODE OR TO COMPLY WITH SECTIONS 8,551
5727.80 TO 5727.95 OF THE REVISED CODE. AN ELECTRIC DISTRIBUTION 8,554
COMPANY WHOSE REGISTRATION IS DENIED MAY PETITION FOR A HEARING, 8,555
IN ACCORDANCE WITH THE PROCEDURES SET FORTH IN DIVISIONS (B) AND 8,557
(C) OF SECTION 5727.89 OF THE REVISED CODE, NOT LATER THAN THIRTY 8,560
DAYS AFTER RECEIVING THE DENIAL, AND THE FINAL DETERMINATION IS 8,561
SUBJECT TO APPEAL UNDER SECTION 5717.02 OF THE REVISED CODE. 8,564
(C) THE TAX COMMISSIONER SHALL MAINTAIN A LIST OF THE 8,567
ELECTRIC DISTRIBUTION COMPANIES REGISTERED UNDER THIS SECTION. 8,568
THE LIST SHALL CONTAIN THE NAME AND ADDRESS OF EACH COMPANY 8,569
REGISTERED BY THE COMMISSIONER. THE LIST AND SUBSEQUENT UPDATES 8,570
OF IT SHALL BE OPEN TO PUBLIC INSPECTION.
Sec. 5727.94. EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED 8,572
TO PAY THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 8,575
SHALL PROVIDE TO ITS CUSTOMERS IN THIS STATE THE STATEMENT 8,576
REQUIRED BY SECTION 4933.33 OF THE REVISED CODE. 8,578
Sec. 5727.95. (A) NO ELECTRIC DISTRIBUTION COMPANY OR 8,580
SELF-ASSESSING PURCHASER SHALL FAIL TO FILE ANY RETURN OR REPORT 8,582
REQUIRED TO BE FILED PURSUANT TO SECTION 5727.82 OF THE REVISED 8,584
CODE, OR FILE OR CAUSE TO BE FILED ANY INCOMPLETE, FALSE, OR 8,585
FRAUDULENT RETURN, REPORT, OR STATEMENT, OR AID OR ABET ANOTHER 8,586
IN THE FILING OF ANY FALSE OR FRAUDULENT RETURN, REPORT, OR 8,587
STATEMENT.
(B) NO PERSON SHALL DISTRIBUTE ELECTRICITY TO A METER OF 8,590
AN END USER IN THIS STATE WITHOUT HOLDING A VALID REGISTRATION 8,591
ISSUED UNDER SECTION 5727.93 OF THE REVISED CODE. 8,593
Sec. 5727.99. (A) Whoever violates section 5727.55 of the 8,602
Revised Code shall be fines FINED not less than one hundred nor 8,603
more than one thousand dollars. 8,604
(B) Whoever violates section 5727.71 of the Revised Code 8,606
203
shall be fined not more than five hundred dollars and imprisoned 8,607
not more than thirty days.
(C) Whoever violates section 5727.72 or 5727.73 of the 8,609
Revised Code shall be fined not more than five hundred dollars or 8,611
imprisoned not more than thirty days, or both. 8,612
(D) WHOEVER VIOLATES SECTIONS 5727.80 TO 5727.83, OR 8,614
SECTIONS 5727.88 TO 5727.95 OF THE REVISED CODE OR ANY RULE 8,617
ADOPTED BY THE TAX COMMISSIONER UNDER THOSE SECTIONS, IS GUILTY 8,618
OF A MISDEMEANOR OF THE FIRST DEGREE ON THE FIRST OFFENSE; ON 8,619
EACH SUBSEQUENT OFFENSE, THE PERSON IS GUILTY OF A FELONY OF THE 8,620
FOURTH DEGREE.
Sec. 5733.04. As used in this chapter: 8,629
(A) "Issued and outstanding shares of stock" applies to 8,631
nonprofit corporations, as provided in section 5733.01 of the 8,632
Revised Code, and includes, but is not limited to, membership 8,633
certificates and other instruments evidencing ownership of an 8,634
interest in such nonprofit corporations, and with respect to a 8,635
financial institution which THAT does not have capital stock, 8,636
"issued and outstanding shares of stock" includes, but is not 8,638
limited to, ownership interests of depositors in the capital 8,639
employed in such an institution. 8,640
(B) "Taxpayer" means a corporation subject to the tax 8,642
imposed by section 5733.06 of the Revised Code. 8,643
(C) "Resident" means a corporation organized under the 8,645
laws of this state. 8,646
(D) "Commercial domicile" means the principal place from 8,648
which the trade or business of the taxpayer is directed or 8,649
managed. 8,650
(E) "Taxable year" means the period prescribed by division 8,653
(A) of section 5733.031 of the Revised Code upon the net income 8,655
of which the value of the taxpayer's issued and outstanding 8,656
shares of stock is determined under division (B) of section 8,658
5733.05 of the Revised Code or the period prescribed by division 8,659
(A) of section 5733.031 of the Revised Code that immediately 8,661
204
precedes the date as of which the total value of the corporation 8,663
is determined under division (A) or (C) of section 5733.05 of the 8,664
Revised Code.
(F) "Tax year" means the calendar year in and for which 8,666
the tax imposed by section 5733.06 of the Revised Code is 8,668
required to be paid.
(G) "Internal Revenue Code" means the "Internal Revenue 8,670
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 8,671
(H) "Federal income tax" means the income tax imposed by 8,673
the Internal Revenue Code. 8,674
(I) Except as provided in section 5733.058 of the Revised 8,676
Code, "net income" means the taxpayer's taxable income before 8,678
operating loss deduction and special deductions, as required to 8,679
be reported for the taxpayer's taxable year under the Internal 8,680
Revenue Code, subject to the following adjustments:
(1)(a) Deduct any net operating loss incurred in any 8,682
taxable years ending in 1971 or thereafter but exclusive of any 8,683
net operating loss incurred in taxable years ending prior to 8,684
January 1, 1971. This deduction shall not be allowed in any tax 8,685
year commencing before December 31, 1973, but shall be carried 8,686
over and allowed in tax years commencing after December 31, 1973, 8,687
until fully utilized in the next succeeding taxable year or years 8,688
in which the taxpayer has net income, but in no case for more 8,689
than the designated carryover period as described in division 8,690
(I)(1)(b) of this section. The amount of such net operating 8,691
loss, as determined under the allocation and apportionment 8,692
provisions of section 5733.051 and division (B) of section 8,693
5733.05 of the Revised Code for the year in which the net 8,694
operating loss occurs, shall be deducted from net income, as 8,695
determined under the allocation and apportionment provisions of 8,696
section 5733.051 and division (B) of section 5733.05 of the 8,697
Revised Code, to the extent necessary to reduce net income to 8,698
zero with the remaining unused portion of the deduction, if any, 8,699
carried forward to the remaining years of the designated 8,700
205
carryover period as described in division (I)(1)(b) of this 8,701
section, or until fully utilized, whichever occurs first. 8,702
(b) For losses incurred in taxable years ending on or 8,704
before December 31, 1981, the designated carryover period shall 8,705
be the five consecutive taxable years after the taxable year in 8,706
which the net operating loss occurred. For losses incurred in 8,707
taxable years ending on or after January 1, 1982, the designated 8,708
carryover period shall be the fifteen consecutive taxable years 8,709
after the taxable year in which the net operating loss occurs. 8,710
(c) The tax commissioner may require a taxpayer to furnish 8,712
any information necessary to support a claim for deduction under 8,713
division (I)(1)(a) of this section and no deduction shall be 8,714
allowed unless the information is furnished. 8,715
(2) Deduct any amount included in net income by 8,717
application of section 78 or 951 of the Internal Revenue Code, 8,718
amounts received for royalties, technical or other services 8,719
derived from sources outside the United States, and dividends 8,720
received from a subsidiary, associate, or affiliated corporation 8,721
that neither transacts any substantial portion of its business 8,722
nor regularly maintains any substantial portion of its assets 8,723
within the United States. For purposes of determining net 8,724
foreign source income deductible under division (I)(2) of this 8,725
section, the amount of gross income from all such sources other 8,726
than income derived by application of section 78 or 951 of the 8,727
Internal Revenue Code shall be reduced by: 8,728
(a) The amount of any reimbursed expenses for personal 8,730
services performed by employees of the taxpayer for the 8,731
subsidiary, associate, or affiliated corporation; 8,732
(b) Ten per cent of the amount of royalty income and 8,734
technical assistance fees; 8,735
(c) Fifteen per cent of the amount of dividends and all 8,737
other income. 8,738
The amounts described in divisions (I)(2)(a) to (c) of this 8,740
section are deemed to be the expenses attributable to the 8,741
206
production of deductible foreign source income unless the 8,742
taxpayer shows, by clear and convincing evidence, less actual 8,743
expenses, or the tax commissioner shows, by clear and convincing 8,744
evidence, more actual expenses. 8,745
(3) Add any loss or deduct any gain resulting from the 8,747
sale, exchange, or other disposition of a capital asset, or an 8,748
asset described in section 1231 of the Internal Revenue Code, to 8,749
the extent that such loss or gain occurred prior to the first 8,750
taxable year on which the tax provided for in section 5733.06 of 8,751
the Revised Code is computed on the corporation's net income. 8,752
For purposes of division (I)(3) of this section, the amount of 8,753
the prior loss or gain shall be measured by the difference 8,754
between the original cost or other basis of the asset and the 8,755
fair market value as of the beginning of the first taxable year 8,756
on which the tax provided for in section 5733.06 of the Revised 8,757
Code is computed on the corporation's net income. At the option 8,758
of the taxpayer, the amount of the prior loss or gain may be a 8,759
percentage of the gain or loss, which percentage shall be 8,760
determined by multiplying the gain or loss by a fraction, the 8,761
numerator of which is the number of months from the acquisition 8,762
of the asset to the beginning of the first taxable year on which 8,763
the fee provided in section 5733.06 of the Revised Code is 8,764
computed on the corporation's net income, and the denominator of 8,765
which is the number of months from the acquisition of the asset 8,766
to the sale, exchange, or other disposition of the asset. 8,767
(4) Deduct the dividend received deduction provided by 8,769
section 243 of the Internal Revenue Code. 8,770
(5) Deduct any interest or interest equivalent on public 8,772
obligations and purchase obligations to the extent included in 8,773
federal taxable income. As used in divisions (I)(5) and (6) of 8,774
this section, "public obligations," "purchase obligations," and 8,775
"interest or interest equivalent" have the same meanings as in 8,776
section 5709.76 of the Revised Code. 8,777
(6) Add any loss or deduct any gain resulting from the 8,779
207
sale, exchange, or other disposition of public obligations to the 8,780
extent included in federal taxable income. 8,781
(7) To the extent not otherwise allowed, deduct any 8,783
dividends or distributions received by a taxpayer from a public 8,784
utility, EXCLUDING AN ELECTRIC COMPANY, if the taxpayer owns at 8,785
least eighty per cent of the issued and outstanding common stock 8,787
of the PUBLIC utility. As used in division (I)(7) of this 8,788
section, "public utility" or "utility" means a public utility as 8,789
defined in Chapter 5727. of the Revised Code, whether or not the 8,790
PUBLIC utility is doing business in the state.
(8) To the extent not otherwise allowed, deduct any 8,792
dividends received by a taxpayer from an insurance company, if 8,793
the taxpayer owns at least eighty per cent of the issued and 8,794
outstanding common stock of the insurance company. As used in 8,795
division (I)(8) of this section, "insurance company" means an 8,796
insurance company which THAT is taxable under Chapter 5725. or 8,797
5729. of the Revised Code. 8,798
(9) Deduct expenditures for modifying existing buildings 8,800
or structures to meet American national standards institute 8,801
standard A-117.1-1961 (R-1971), as amended; provided, that no 8,802
deduction shall be allowed to the extent that such deduction is 8,803
not permitted under federal law or under rules of the tax 8,804
commissioner. Those deductions as are allowed may be taken over 8,805
a period of five years. The tax commissioner shall adopt rules 8,806
under Chapter 119. of the Revised Code establishing reasonable 8,807
limitations on the extent that expenditures for modifying 8,808
existing buildings or structures are attributable to the purpose 8,809
of making the buildings or structures accessible to and usable by 8,810
physically handicapped persons. 8,811
(10) Deduct the amount of wages and salaries, if any, not 8,813
otherwise allowable as a deduction but that would have been 8,814
allowable as a deduction in computing federal taxable income 8,815
before operating loss deduction and special deductions for the 8,816
taxable year, had the targeted jobs credit allowed and determined 8,817
208
under sections 38, 51, and 52 of the Internal Revenue Code not 8,818
been in effect. 8,819
(11) Deduct net interest income on obligations of the 8,821
United States and its territories and possessions or of any 8,822
authority, commission, or instrumentality of the United States to 8,823
the extent the laws of the United States prohibit inclusion of 8,824
the net interest for purposes of determining the value of the 8,825
taxpayer's issued and outstanding shares of stock under division 8,826
(B) of section 5733.05 of the Revised Code. As used in division 8,827
(I)(11) of this section, "net interest" means interest net of any 8,828
expenses taken on the federal income tax return that would not 8,829
have been allowed under section 265 of the Internal Revenue Code 8,830
if the interest were exempt from federal income tax. 8,831
(12)(a) Except as set forth in division (I)(12)(d) of this 8,833
section, to the extent not included in computing the taxpayer's 8,834
federal taxable income before operating loss deduction and 8,835
special deductions, add gains and deduct losses from direct or 8,836
indirect sales, exchanges, or other dispositions, made by a 8,837
related entity who is not a taxpayer, of the taxpayer's indirect, 8,838
beneficial, or constructive investment in the stock or debt of 8,839
another entity, unless the gain or loss has been included in 8,840
computing the federal taxable income before operating loss 8,841
deduction and special deductions of another taxpayer with a more 8,842
closely related investment in the stock or debt of the other 8,843
entity. The amount of gain added or loss deducted shall not 8,844
exceed the product obtained by multiplying such gain or loss by 8,845
the taxpayer's proportionate share, directly, indirectly, 8,846
beneficially, or constructively, of the outstanding stock of the 8,847
related entity immediately prior to the direct or indirect sale, 8,848
exchange, or other disposition. 8,849
(b) Except as set forth in division (I)(12)(e) of this 8,851
section, to the extent not included in computing the taxpayer's 8,852
federal taxable income before operating loss deduction and 8,853
special deductions, add gains and deduct losses from direct or 8,854
209
indirect sales, exchanges, or other dispositions made by a 8,855
related entity who is not a taxpayer, of intangible property 8,856
other than stock, securities, and debt, if such property was 8,857
owned, or used in whole or in part, at any time prior to or at 8,858
the time of the sale, exchange, or disposition by either the 8,859
taxpayer or by a related entity that was a taxpayer at any time 8,860
during the related entity's ownership or use of such property, 8,861
unless the gain or loss has been included in computing the 8,862
federal taxable income before operating loss deduction and 8,863
special deductions of another taxpayer with a more closely 8,864
related ownership or use of such intangible property. The 8,865
amount of gain added or loss deducted shall not exceed the 8,866
product obtained by multiplying such gain or loss by the 8,867
taxpayer's proportionate share, directly, indirectly, 8,868
beneficially, or constructively, of the outstanding stock of the 8,869
related entity immediately prior to the direct or indirect sale, 8,870
exchange, or other disposition. 8,871
(c) As used in division (I)(12) of this section, "related 8,873
entity" means those entities described in divisions (I)(12)(c)(i) 8,874
to (iii) of this section: 8,875
(i) An individual stockholder, or a member of the 8,877
stockholder's family enumerated in section 318 of the Internal 8,878
Revenue Code, if the stockholder and the members of the 8,879
stockholder's family own, directly, indirectly, beneficially, or 8,880
constructively, in the aggregate, at least fifty per cent of the 8,881
value of the taxpayer's outstanding stock; 8,882
(ii) A stockholder, or a stockholder's partnership, 8,884
estate, trust, or corporation, if the stockholder and the 8,885
stockholder's partnerships, estates, trusts, and corporations own 8,886
directly, indirectly, beneficially, or constructively, in the 8,887
aggregate, at least fifty per cent of the value of the taxpayer's 8,888
outstanding stock; 8,889
(iii) A corporation, or a party related to the corporation 8,891
in a manner that would require an attribution of stock from the 8,892
210
corporation to the party or from the party to the corporation 8,893
under division (I)(12)(c)(iv) of this section, if the taxpayer 8,894
owns, directly, indirectly, beneficially, or constructively, at 8,895
least fifty per cent of the value of the corporation's 8,896
outstanding stock. 8,897
(iv) The attribution rules of section 318 of the Internal 8,899
Revenue Code apply for purposes of determining whether the 8,900
ownership requirements in divisions (I)(12)(c)(i) to (iii) of 8,901
this section have been met. 8,902
(d) For purposes of the adjustments required by division 8,904
(I)(12)(a) of this section, the term "investment in the stock or 8,905
debt of another entity" means only those investments where the 8,906
taxpayer and the taxpayer's related entities directly, 8,907
indirectly, beneficially, or constructively own, in the 8,908
aggregate, at any time during the twenty-four month period 8,909
commencing one year prior to the direct or indirect sale, 8,910
exchange, or other disposition of such investment at least fifty 8,911
per cent or more of the value of either the outstanding stock or 8,912
such debt of such other entity. 8,913
(e) For purposes of the adjustments required by division 8,915
(I)(12)(b) of this section, the term "related entity" excludes 8,916
all of the following: 8,917
(i) Foreign corporations as defined in section 7701 of the 8,919
Internal Revenue Code; 8,920
(ii) Foreign partnerships as defined in section 7701 of 8,922
the Internal Revenue Code; 8,923
(iii) Corporations, partnerships, estates, and trusts 8,925
created or organized in or under the laws of the Commonwealth of 8,926
Puerto Rico or any possession of the United States; 8,927
(iv) Foreign estates and foreign trusts as defined in 8,929
section 7701 of the Internal Revenue Code. 8,930
The exclusions described in divisions (I)(12)(e)(i) to (iv) 8,932
of this section do not apply if the corporation, partnership, 8,933
estate, or trust is described in any one of divisions (C)(1) to 8,934
211
(5) of section 5733.042 of the Revised Code. 8,935
(f) Nothing in division (I)(12) of this section shall 8,937
require or permit a taxpayer to add any gains or deduct any 8,938
losses described in divisions (I)(12)(f)(i) and (ii) of this 8,939
section: 8,940
(i) Gains or losses recognized for federal income tax 8,942
purposes by an individual, estate, or trust without regard to the 8,943
attribution rules described in division (I)(12)(c) of this 8,944
section, and; 8,945
(ii) A related entity's gains or losses described in 8,947
division (I)(12)(b) if the taxpayer's ownership of or use of such 8,948
intangible property was limited to a period not exceeding nine 8,949
months and was attributable to a transaction or a series of 8,950
transactions executed in accordance with the election or 8,951
elections made by the taxpayer or a related entity pursuant to 8,952
section 338 of the Internal Revenue Code. 8,953
(13) Any adjustment required by section 5733.042 of the 8,955
Revised Code. 8,956
(14) Add any amount claimed as a credit under section 8,959
5733.0611 of the Revised Code to the extent that such amount 8,962
satisfies either of the following:
(a) It was deducted or excluded from the computation of 8,964
the corporation's taxable income before operating loss deduction 8,966
and special deductions as required to be reported for the 8,967
corporation's taxable year under the Internal Revenue Code; 8,970
(b) It resulted in a reduction of the corporation's 8,972
taxable income before operating loss deduction and special 8,974
deductions as required to be reported for any of the 8,975
corporation's taxable years under the Internal Revenue Code. 8,978
(15) Deduct the amount contributed by the taxpayer to an 8,981
individual development account program established by a county 8,982
department of human services pursuant to sections 329.11 to 8,983
329.14 of the Revised Code for the purpose of matching funds 8,986
deposited by program participants. On request of the tax 8,987
212
commissioner, the taxpayer shall provide any information that, in 8,988
the tax commissioner's opinion, is necessary to establish the 8,989
amount deducted under division (I)(15) of this section. 8,990
(16) IN THE CASE OF AN ELECTRIC COMPANY THAT WAS SUBJECT 8,992
TO THE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE WITH 8,993
RESPECT TO ITS GROSS RECEIPTS RECEIVED DURING THE PERIOD OF MAY 8,995
1, 2000, THROUGH MAY 1, 2001, THE ALLOWANCE FOR DEPRECIATION AND 8,996
THE COMPUTATION OF GAIN OR LOSS ON THE SALE OR OTHER DISPOSITION 8,997
OF ALL ASSETS PLACED IN SERVICE PRIOR TO JANUARY 1, 2002, SHALL 8,998
BE MADE WITH REFERENCE TO THE OHIO TAX BASIS OF THOSE ASSETS IN 8,999
ACCORDANCE WITH RULES PRESCRIBED BY THE TAX COMMISSIONER. FOR 9,001
THE PURPOSE OF THIS DIVISION, THE "OHIO TAX BASIS" MEANS THE 9,002
ADJUSTED BOOK BASIS LESS THE ADJUSTED TAX BASIS OF THE ASSETS AS 9,003
RECORDED ON THE COMPANY'S BOOKS OF ACCOUNTS AS OF DECEMBER 31, 9,004
2001. THE OHIO TAX BASIS SHALL BE AMORTIZED OVER A PERIOD OF 9,005
FORTY YEARS AS FOLLOWS:
IN YEARS 1 TO 10 1% PER YEAR 9,008
IN YEARS 11 TO 20 2% PER YEAR 9,010
IN YEARS 21 TO 30 3% PER YEAR 9,012
IN YEARS 31 TO 40 4% PER YEAR 9,014
THE ADJUSTMENTS UNDER THIS SECTION SHALL CONTINUE TO APPLY 9,017
TO ASSETS TRANSFERRED UNDER A REORGANIZATION WITHIN THE MEANING 9,018
OF SECTION 368A OF THE INTERNAL REVENUE CODE, OR ON THE 9,021
ORGANIZATION OF A CORPORATION PRINCIPALLY IN CONSIDERATION FOR 9,022
THE ISSUANCE OF ITS STOCK. 9,023
(J) Any term used in this chapter has the same meaning as 9,025
when used in comparable context in the laws of the United States 9,026
relating to federal income taxes unless a different meaning is 9,027
clearly required. Any reference in this chapter to the Internal 9,028
Revenue Code includes other laws of the United States relating to 9,029
federal income taxes. 9,030
(K) "Financial institution" has the meaning given by 9,032
section 5725.01 of the Revised Code but does not include a 9,034
production credit association as described in 85 Stat. 597, 12 9,035
213
U.S.C.A. 2091. 9,037
(L)(1) A "qualifying holding company" is any corporation 9,040
satisfying all of the following requirements: 9,041
(a) Subject to divisions (L)(2) and (3) of this section, 9,044
the net book value of the corporation's intangible assets is 9,045
greater than or equal to ninety per cent of the net book value of 9,046
all of its assets and at least fifty per cent of the net book 9,047
value of all of its assets represents direct or indirect 9,048
investments in the equity of, loans and advances to, and accounts 9,050
receivable due from related members;
(b) At least ninety per cent of the corporation's gross 9,053
income for the taxable year is attributable to the following: 9,054
(i) The maintenance, management, ownership, acquisition, 9,056
use, and disposition of its intangible property, its aircraft the 9,058
use of which is not subject to regulation under 14 C.F.R. part 9,060
121 or part 135, and any real property described in division 9,061
(L)(2)(c) of this section; 9,063
(ii) The collection and distribution of income from such 9,066
property.
(c) The corporation is not a financial institution on the 9,069
last day of the taxable year ending prior to the first day of the 9,071
tax year;
(d) The corporation's related members make a good faith 9,074
and reasonable effort to make timely and fully the adjustments 9,075
required by division (C)(2) of section 5733.05 of the Revised 9,077
Code and to pay timely and fully all uncontested taxes, interest, 9,078
penalties, and other fees and charges imposed under this chapter; 9,079
(e) Subject to division (L)(4) of this section, the 9,082
corporation elects to be treated as a qualifying holding company 9,083
for the tax year. 9,084
A corporation otherwise satisfying divisions (L)(1)(a) to 9,088
(e) of this section that does not elect to be a qualifying 9,089
holding company is not a qualifying holding company for the 9,090
purposes of this chapter.
214
(2)(a)(i) For purposes of making the ninety per cent 9,093
computation under division (L)(1)(a) of this section, the net 9,096
book value of the corporation's assets shall not include the net 9,097
book value of aircraft or real property described in division 9,098
(L)(1)(b)(i) of this section. 9,100
(ii) For purposes of making the fifty per cent computation 9,103
under division (L)(1)(a) of this section, the net book value of 9,105
assets shall include the net book value of aircraft or real 9,106
property described in division (L)(1)(b)(i) of this section. 9,109
(b)(i) As used in division (L) of this section, 9,112
"intangible asset" includes, but is not limited to, the 9,113
corporation's direct interest in each pass-through entity only if 9,114
at all times during the corporation's taxable year ending prior 9,115
to the first day of the tax year the corporation's and the 9,116
corporation's related members' combined direct and indirect 9,117
interests in the capital or profits of such pass-through entity 9,118
do not exceed fifty per cent. If the corporation's interest in 9,119
the pass-through entity is an intangible asset for that taxable 9,120
year, then the distributive share of any income from the 9,121
pass-through entity shall be income from an intangible asset for 9,122
that taxable year.
(ii) If a corporation's and the corporation's related 9,125
members' combined direct and indirect interests in the capital or 9,126
profits of a pass-through entity exceed fifty per cent at any 9,127
time during the corporation's taxable year ending prior to the 9,128
first day of the tax year, "intangible asset" does not include 9,129
the corporation's direct interest in the pass-through entity, and 9,130
the corporation shall include in its assets its proportionate 9,131
share of the assets of any such pass-through entity and shall 9,132
include in its gross income its distributive share of the gross 9,133
income of such pass-through entity in the same form as was earned 9,134
by the pass-through entity. 9,135
(iii) A pass-through entity's direct or indirect 9,138
proportionate share of any other pass-through entity's assets 9,139
215
shall be included for the purpose of computing the corporation's 9,140
proportionate share of the pass-through entity's assets under 9,141
division (L)(2)(b)(ii) of this section, and such pass-through 9,143
entity's distributive share of any other pass-through entity's 9,144
gross income shall be included for purposes of computing the 9,145
corporation's distributive share of the pass-through entity's 9,146
gross income under division (L)(2)(b)(ii) of this section. 9,149
(c) For the purposes of divisions (L)(1)(b)(i), 9,152
(1)(b)(ii), (2)(a)(i), and (2)(a)(ii) of this section, real 9,155
property is described in division (L)(2)(c) of this section only 9,157
if all of the following conditions are present at all times 9,158
during the taxable year ending prior to the first day of the tax 9,159
year:
(i) The real property serves as the headquarters of the 9,162
corporation's trade or business, or is the place from which the 9,163
corporation's trade or business is principally managed or 9,164
directed;
(ii) Not more than ten per cent of the value of the real 9,167
property and not more than ten per cent of the square footage of 9,168
the building or buildings that are part of the real property is
used, made available, or occupied for the purpose of providing, 9,169
acquiring, transferring, selling, or disposing of tangible 9,171
property or services in the normal course of business to persons 9,172
other than related members, the corporation's employees and their 9,173
families, and such related members' employees and their families. 9,174
(d) As used in division (L) of this section, "related 9,176
member" has the same meaning as in division (A)(6) of section 9,179
5733.042 of the Revised Code without regard to division (B) of 9,182
that section.
(3) The percentages described in division (L)(1)(a) of 9,186
this section shall be equal to the quarterly average of those 9,187
percentages as calculated during the corporation's taxable year 9,188
ending prior to the first day of the tax year. 9,189
(4) With respect to the election described in division 9,191
216
(L)(1)(e) of this section: 9,193
(a) The election need not accompany a timely filed report; 9,196
(b) The election need not accompany the report; rather, 9,198
the election may accompany a subsequently filed but timely 9,199
application for refund and timely amended report, or a 9,201
subsequently filed but timely petition for reassessment; 9,202
(c) The election is not irrevocable; 9,205
(d) The election applies only to the tax year specified by 9,208
the corporation;
(e) The corporation's related members comply with division 9,210
(L)(1)(d) of this section. 9,211
Nothing in division (L)(4) of this section shall be 9,214
construed to extend any statute of limitations set forth in this 9,215
chapter. 9,216
(M) "Qualifying controlled group" means two or more 9,219
corporations that satisfy the ownership and control requirements 9,220
of division (A) of section 5733.052 of the Revised Code. 9,223
(N) "Limited liability company" means any limited 9,225
liability company formed under Chapter 1705. of the Revised Code 9,227
or under the laws of any other state.
(O) "Pass-through entity" means a corporation that has 9,230
made an election under subchapter S of Chapter 1 of Subtitle A of 9,232
the Internal Revenue Code for its taxable year under that code, 9,235
or a partnership, limited liability company, or any other person, 9,236
other than an individual, trust, or estate, if the partnership, 9,237
limited liability company, or other person is not classified for 9,238
federal income tax purposes as an association taxed as a 9,239
corporation. 9,240
(P) "ELECTRIC COMPANY" AND "COMBINED COMPANY" HAVE THE 9,242
SAME MEANINGS AS IN SECTION 5727.01 OF THE REVISED CODE. 9,244
Sec. 5733.05. As used in this section, "qualified 9,253
research" means laboratory research, experimental research, and 9,254
other similar types of research; research in developing or 9,255
improving a product; or research in developing or improving the 9,256
217
means of producing a product. It does not include market 9,257
research, consumer surveys, efficiency surveys, management 9,258
studies, ordinary testing or inspection of materials or products 9,259
for quality control, historical research, or literary research. 9,260
"Product" as used in this paragraph does not include services or 9,261
intangible property. 9,262
The annual report determines the value of the issued and 9,265
outstanding shares of stock of the taxpayer, which under division 9,266
(A) or divisions (B) and (C) of this section is the base or 9,267
measure of the franchise tax liability. Such determination shall 9,268
be made as of the date shown by the report to have been the 9,269
beginning of the corporation's annual accounting period that 9,270
includes the first day of January of the tax year. For the 9,271
purposes of this chapter, the value of the issued and outstanding 9,273
shares of stock of any corporation that is a financial 9,275
institution shall be deemed to be the value as calculated in 9,277
accordance with division (A) of this section. For the purposes 9,279
of this chapter, the value of the issued and outstanding shares 9,280
of stock of any corporation that is not a financial institution 9,281
shall be deemed to be the values as calculated in accordance with 9,282
divisions (B) and (C) of this section. 9,283
(A) The total value, as shown by the books of the 9,285
financial institution, of its capital, surplus, whether earned or 9,287
unearned, undivided profits, and reserves shall be determined as 9,289
prescribed by section 5733.056 of the Revised Code for tax years 9,290
1998 and thereafter. 9,291
(B) The sum of the corporation's net income during the 9,293
corporation's taxable year, allocated or apportioned to this 9,295
state as prescribed in divisions (B)(1) and (2) of this section, 9,297
and subject to sections 5733.052, 5733.053, 5733.057, and 9,298
5733.058 of the Revised Code:
(1) The net income allocated to this state as provided by 9,300
section 5733.051 of the Revised Code. 9,301
(2) The amount of Ohio apportioned net income from sources 9,303
218
other than those allocated under section 5733.051 of the Revised 9,304
Code, which shall be determined by multiplying the corporation's 9,305
net income by a fraction. The numerator of the fraction is the 9,307
sum of the following products: the property factor multiplied by 9,310
twenty, the payroll factor multiplied by twenty, and the sales 9,311
factor multiplied by sixty. The denominator of the fraction is 9,313
one hundred, provided that the denominator shall be reduced by 9,315
twenty if the property factor has a denominator of zero, by 9,317
twenty if the payroll factor has a denominator of zero, and by 9,318
sixty if the sales factor has a denominator of zero.
The property, payroll, and sales factors shall be 9,320
determined as follows:
(a) The property factor is a fraction the numerator of 9,322
which is the average value of the corporation's real and tangible 9,323
personal property owned or rented, and used in the trade or 9,324
business in this state during the taxable year, and the 9,325
denominator of which is the average value of all the 9,326
corporation's real and tangible personal property owned or 9,327
rented, and used in the trade or business everywhere during such 9,328
year. There shall be excluded from the numerator and denominator 9,329
of the property factor the original cost of all of the following 9,330
property within Ohio: property with respect to which a 9,331
"pollution control facility" certificate has been issued pursuant 9,332
to section 5709.21 of the Revised Code; property with respect to 9,333
which an "industrial water pollution control certificate" has 9,334
been issued pursuant to section 6111.31 of the Revised Code; and 9,335
property used exclusively during the taxable year for qualified 9,336
research. 9,337
(i) Property owned by the corporation is valued at its 9,339
original cost. Property rented by the corporation is valued at 9,340
eight times the net annual rental rate. "Net annual rental rate" 9,341
means the annual rental rate paid by the corporation less any 9,342
annual rental rate received by the corporation from subrentals. 9,343
(ii) The average value of property shall be determined by 9,345
219
averaging the values at the beginning and the end of the taxable 9,346
year, but the tax commissioner may require the averaging of 9,347
monthly values during the taxable year, if reasonably required to 9,348
reflect properly the average value of the corporation's property. 9,349
(b) The payroll factor is a fraction the numerator of 9,351
which is the total amount paid in this state during the taxable 9,352
year by the corporation for compensation, and the denominator of 9,353
which is the total compensation paid everywhere by the 9,354
corporation during such year. There shall be excluded from the 9,355
numerator and the denominator of the payroll factor the total 9,356
compensation paid in this state to employees who are primarily 9,357
engaged in qualified research. 9,358
(i) Compensation means any form of remuneration paid to an 9,360
employee for personal services. 9,361
(ii) Compensation is paid in this state if: (1) the 9,363
recipient's service is performed entirely within this state, (2) 9,364
the recipient's service is performed both within and without this 9,365
state, but the service performed without this state is incidental 9,366
to the recipient's service within this state, (3) some of the 9,367
service is performed within this state and either the base of 9,368
operations, or if there is no base of operations, the place from 9,369
which the service is directed or controlled is within this state, 9,370
or the base of operations or the place from which the service is 9,371
directed or controlled is not in any state in which some part of 9,372
the service is performed, but the recipient's residence is in 9,373
this state. 9,374
(iii) Compensation is paid in this state to any employee 9,376
of a common or contract motor carrier corporation, who performs 9,377
the employee's regularly assigned duties on a motor vehicle in 9,379
more than one state, in the same ratio by which the mileage 9,380
traveled by such employee within the state bears to the total 9,381
mileage traveled by such employee everywhere during the taxable 9,382
year.
(c) The sales factor is a fraction the numerator of which 9,384
220
is the total sales in this state by the corporation during the 9,385
taxable year, and the denominator of which is the total sales by 9,386
the corporation everywhere during such year. In determining the 9,387
numerator and denominator of the sales factor, receipts from the 9,388
sale or other disposal of a capital asset or an asset described 9,389
in section 1231 of the Internal Revenue Code shall be eliminated. 9,390
Also, in determining the numerator and denominator of the sales 9,391
factor, in the case of a reporting corporation owning at least 9,392
eighty per cent of the issued and outstanding common stock of one 9,393
or more public utilities or insurance companies OR PUBLIC 9,394
UTILITIES, EXCEPT AN ELECTRIC COMPANY, or owning at least 9,397
twenty-five per cent of the issued and outstanding common stock 9,398
of one or more financial institutions, receipts received by the 9,399
reporting corporation from such utilities, insurance companies, 9,400
and financial institutions shall be eliminated.
For the purpose of this section and section 5733.03 of the 9,402
Revised Code, sales of tangible personal property are in this 9,403
state where such property is received in this state by the 9,404
purchaser. In the case of delivery of tangible personal property 9,405
by common carrier or by other means of transportation, the place 9,406
at which such property is ultimately received after all 9,407
transportation has been completed shall be considered as the 9,408
place at which such property is received by the purchaser. 9,409
Direct delivery in this state, other than for purposes of 9,410
transportation, to a person or firm designated by a purchaser 9,411
constitutes delivery to the purchaser in this state, and direct 9,412
delivery outside this state to a person or firm designated by a 9,413
purchaser does not constitute delivery to the purchaser in this 9,414
state, regardless of where title passes or other conditions of 9,415
sale. 9,416
FOR THE PURPOSES OF THIS SECTION AND SECTION 5733.03 OF THE 9,418
REVISED CODE, SALES OF ELECTRICITY AND THE TRANSMISSION AND 9,420
DISTRIBUTION OF ELECTRICITY BY AN ELECTRIC COMPANY SHALL BE 9,421
TREATED AS A SALE OF A SERVICE AND NOT AS A SALE OF TANGIBLE 9,423
221
PERSONAL PROPERTY.
Sales, other than sales of tangible personal property, are 9,425
in this state if either: 9,426
(i) The income-producing activity is performed solely in 9,428
this state; 9,429
(ii) The income-producing activity is performed both 9,431
within and without this state and a greater proportion of the 9,432
income-producing activity is performed within this state than in 9,434
any other state, based on costs of performance. 9,435
(d) If the allocation and apportionment provisions of 9,437
division (B) of this section do not fairly represent the extent 9,439
of the taxpayer's business activity in this state, the taxpayer 9,440
may request, which request must be in writing and must accompany 9,441
the report, timely filed petition for reassessment, or timely 9,442
filed amended report, or the tax commissioner may require, in 9,443
respect to all or any part of the taxpayer's allocated or 9,444
apportioned base, if reasonable, any one or more of the 9,445
following:
(i) Separate accounting; 9,447
(ii) The exclusion of any one or more of the factors; 9,449
(iii) The inclusion of one or more additional factors 9,451
which THAT will fairly represent the taxpayer's allocated or 9,452
apportioned base in this state. 9,453
An alternative method will be effective only with approval 9,455
by the tax commissioner. 9,456
Nothing in this section shall be construed to extend any 9,458
statute of limitations set forth in this chapter. 9,459
(C)(1) Subject to divisions (C)(2) and (3) of this 9,462
section, the total value, as shown on the books of each
corporation that is not a qualified holding company, of the net 9,463
book value of a corporation's assets less the net carrying value 9,465
of its liabilities. For the purposes of determining that total 9,466
value, any reserves shown on the corporation's books shall be 9,467
considered liabilities or contra assets, except for any reserves 9,468
222
that are deemed appropriations of retained earnings under 9,469
generally accepted accounting principles. 9,470
(2)(a) If, on the last day of the taxpayer's taxable year 9,473
preceding the tax year, the taxpayer is a related member to a 9,474
corporation that elects to be a qualifying holding company for 9,475
the tax year beginning after the last day of the taxpayer's 9,476
taxable year, or if, on the last day of the taxpayer's taxable 9,477
year preceding the tax year, a corporation that elects to be a 9,478
qualifying holding company for the tax year beginning after the 9,479
last day of the taxpayer's taxable year is a related member to 9,480
the taxpayer, then the taxpayer's total value shall be adjusted 9,481
by the qualifying amount. Except as otherwise provided under 9,482
division (C)(2)(b) of this section, "qualifying amount" means the 9,483
amount that, when added to the taxpayer's total value, and when 9,485
subtracted from the net carrying value of the taxpayer's 9,486
liabilities computed without regard to division (C)(2) of this 9,488
section, or when subtracted from the taxpayer's total value and 9,490
when added to the net carrying value of the taxpayer's 9,491
liabilities computed without regard to division (C)(2) of this 9,493
section, results in the taxpayer's debt-to-equity ratio equaling 9,494
the debt-to-equity ratio of the qualifying controlled group on 9,495
the last day of the taxable year ending prior to the first day of 9,496
the tax year computed on a consolidated basis in accordance with 9,498
general accepted accounting principles. For the purposes of 9,499
division (C)(2)(a) of this section, the corporation's total 9,500
value, after the adjustment required by that division, shall not 9,501
exceed the net book value of the corporation's assets. 9,502
(b)(i) The amount added to the taxpayer's total value and 9,505
subtracted from the net carrying value of the taxpayer's 9,506
liabilities shall not exceed the amount of the net carrying value 9,507
of the taxpayer's liabilities owed to the taxpayer's related 9,509
members.
(ii) A liability owed to the taxpayer's related members 9,511
includes, but is not limited to, any amount that the corporation 9,513
223
owes to a person that is not a related member if the 9,514
corporation's related member or related members in whole or in 9,515
part guarantee any portion or all of that amount, or pledge, 9,516
hypothecate, mortgage, or carry out any similar transactions to 9,517
secure any portion or all of that amount. 9,518
(3) The base upon which the tax is levied under division 9,520
(C) of section 5733.06 of the Revised Code shall be computed by 9,522
multiplying the amount determined under divisions (C)(1) and (2) 9,524
of this section by the fraction determined under divisions 9,525
(B)(2)(a) to (c) of this section and, if applicable, divisions 9,528
(B)(2)(d)(ii) to (iv) of this section but without regard to 9,530
section 5733.052 of the Revised Code. 9,531
(4) For purposes of division (C) of this section, "related 9,535
member" has the same meaning as in division (A)(6) of section 9,536
5733.042 of the Revised Code without regard to division (B) of 9,537
that section.
Sec. 5733.06. The tax hereby charged each corporation 9,546
subject to this chapter shall be the GREATER OF THE sum of 9,547
divisions (A) and (B) of this section, AFTER THE REDUCTION, IF 9,548
ANY, PROVIDED BY DIVISION (J) OF THIS SECTION, or division (C) of 9,550
this section, whichever is greater AFTER THE REDUCTION, IF ANY, 9,551
PROVIDED BY DIVISION (J) OF THIS SECTION, except that the tax 9,553
hereby charged each financial institution subject to this chapter 9,554
shall be the amount computed under division (D) of this section: 9,555
(A) Except as set forth in division (F) of this section, 9,557
five and one-tenth per cent upon the first fifty thousand dollars 9,558
of the value of the taxpayer's issued and outstanding shares of 9,559
stock as determined under division (B) of section 5733.05 of the 9,560
Revised Code; 9,561
(B) Except as set forth in division (F) of this section, 9,563
eight and one-half per cent upon the value so determined in 9,565
excess of fifty thousand dollars; or 9,566
(C) Except as otherwise provided under division (G) of 9,569
this section, four mills times that portion of the value of the 9,570
224
issued and outstanding shares of stock as determined under
division (C) of section 5733.05 of the Revised Code. For the 9,571
purposes of division (C) of this section, division (C)(2) of 9,573
section 5733.065, and division (C) of section 5733.066 of the
Revised Code, the value of the issued and outstanding shares of 9,574
stock of a qualified holding company is zero. 9,575
(D) The tax charged each financial institution subject to 9,577
this chapter shall be that portion of the value of the issued and 9,578
outstanding shares of stock as determined under division (A) of 9,579
section 5733.05 of the Revised Code, multiplied by the following 9,581
amounts:
(1) For tax years prior to the 1999 tax year, fifteen 9,583
mills; 9,584
(2) For the 1999 tax year, fourteen mills; 9,586
(3) For tax year 2000 and thereafter, thirteen mills. 9,588
(E) No tax shall be charged from any corporation which 9,590
THAT has been adjudicated bankrupt, or for which a receiver has 9,591
been appointed, or which THAT has made a general assignment for 9,592
the benefit of creditors, except for the portion of the then 9,594
current tax year during which the tax commissioner finds such 9,595
corporation had the power to exercise its corporate franchise 9,596
unimpaired by such proceedings or act. The minimum payment for 9,597
all corporations shall be fifty dollars. 9,598
The tax charged to corporations under this chapter for the 9,600
privilege of engaging in business in this state, which is an 9,601
excise tax levied on the value of the issued and outstanding 9,602
shares of stock, shall in no manner be construed as prohibiting 9,603
or otherwise limiting the powers of municipal corporations, joint 9,604
economic development zones created under section 715.691 of the 9,605
Revised Code, and joint economic development districts created 9,606
under section 715.70 or 715.71 or sections 715.72 to 715.81 of 9,607
the Revised Code in this state to impose an income tax on the 9,608
income of such corporations.
(F) If two or more taxpayers satisfy the ownership or 9,610
225
control requirements of division (A) of section 5733.052 of the 9,611
Revised Code, each such taxpayer shall substitute "the taxpayer's 9,612
pro-rata amount" for "fifty thousand dollars" in divisions (A) 9,613
and (B) of this section. For purposes of this division, "the
taxpayer's pro-rata amount" is an amount that, when added to the 9,614
other such taxpayers' pro-rata amounts, does not exceed fifty 9,615
thousand dollars. For the purpose of making that computation, 9,616
the taxpayer's pro-rata amount shall not be less than zero. 9,617
Nothing in this division derogates from or eliminates the
requirement to make the alternative computation of tax under 9,618
division (C) of this section. 9,619
(G) The tax liability of any corporation under division 9,621
(C) of this section shall not exceed one hundred fifty thousand 9,622
dollars.
(H)(1) For the purposes of division (H) of this section, 9,624
"exiting corporation" means a corporation that satisfies all of 9,625
the following conditions: 9,626
(a) The corporation had nexus with or in this state under 9,628
the Constitution of the United States during any portion of a 9,629
calendar year;
(b) The corporation was not a taxpayer on the first day of 9,631
January immediately following that calendar year; 9,632
(c) The corporation was not a financial institution on the 9,634
first day of January immediately following that calendar year; 9,635
(d) The corporation was not a transferor as defined in 9,637
section 5733.053 of the Revised Code during any portion of that 9,638
calendar year;
(e) During any portion of that calendar year, or any 9,640
portion of the immediately preceding calendar year, the 9,641
corporation had net income that was not included in a report 9,642
filed pursuant to section 5733.02, 5733.021, 5733.03, or 5733.031 9,643
of the Revised Code;
(f) The corporation would have been subject to the tax 9,645
computed under divisions (A), (B), (C), (F), and (G) of this 9,646
226
section if the corporation is assumed to have had nexus with or 9,647
in this state under the Constitution of the United States on the 9,648
first day of January immediately following the calendar year 9,649
referred to in division (H)(1)(a) of this section.
(2) For the purposes of division (H) of this section, 9,651
"unreported net income" means net income that was not previously 9,652
included in a report filed pursuant to section 5733.02, 5733.021, 9,653
5733.03, or 5733.031 of the Revised Code and that was realized or 9,654
recognized during the calendar year referred to in division 9,655
(H)(1) of this section or the immediately preceding calendar
year.
(3) Each exiting corporation shall pay a tax computed by 9,657
first allocating and apportioning the unreported net income 9,658
pursuant to division (B) of section 5733.05 and sections SECTION 9,659
5733.051 and, if applicable, section 5733.052 of the Revised 9,661
Code. The exiting corporation then shall compute the tax due on
its unreported net income allocated and apportioned to this state 9,662
by applying divisions (A), (B), and (F) of this section to that 9,663
income.
(4) Divisions (C) and (G) of this section, division (D)(2) 9,665
of section 5733.065, and division (C) of section 5733.066 of the 9,666
Revised Code do not apply to an exiting corporation, but exiting 9,667
corporations are subject to every other provision of this 9,668
chapter.
(5) Notwithstanding sections 5733.02, 5733.021, and 9,670
5733.03 of the Revised Code to the contrary, each exiting 9,671
corporation shall report and pay the tax due under division (H) 9,672
of this section on or before the thirty-first day of May 9,673
immediately following the calendar year referred to in division 9,674
(H)(1)(a) of this section. The exiting corporation shall file
that report on the form most recently prescribed by the tax 9,675
commissioner for the purposes of complying with sections 5733.02 9,676
and 5733.03 of the Revised Code. Upon request by the 9,677
corporation, the tax commissioner may extend the date for filing 9,678
227
the report.
(6) The tax commissioner may adopt rules governing 9,680
division (H) of this section. 9,681
(I) Any reference in the Revised Code to "the tax imposed 9,683
by section 5733.06 of the Revised Code" or "the tax due under 9,684
section 5733.06 of the Revised Code" includes the taxes imposed 9,685
under sections 5733.065 and 5733.066 of the Revised Code. 9,686
(J)(1) DIVISION (J) OF THIS SECTION APPLIES SOLELY TO A 9,689
COMBINED COMPANY. SECTION 5733.057 OF THE REVISED CODE SHALL 9,690
APPLY WHEN CALCULATING THE ADJUSTMENTS REQUIRED BY DIVISION (J) 9,692
OF THIS SECTION. 9,693
(2) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 9,697
TAX CALCULATED IN DIVISIONS (A) AND (B) OF THIS SECTION SHALL BE 9,698
REDUCED BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY A 9,700
FRACTION, THE NUMERATOR OF WHICH IS THE TOTAL TAXABLE GROSS 9,701
RECEIPTS ATTRIBUTED TO PROVIDING PUBLIC UTILITY ACTIVITY OTHER 9,702
THAN AS AN ELECTRIC COMPANY UNDER SECTION 5727.03 OF THE REVISED 9,703
CODE FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE 9,704
MEASURED IMMEDIATELY PRECEDING THE TAX YEAR, AND THE DENOMINATOR
OF WHICH IS THE TOTAL GROSS RECEIPTS FROM ALL SOURCES FOR THE 9,705
YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 9,706
IMMEDIATELY PRECEDING THE TAX YEAR. NOTHING HEREIN SHALL BE 9,707
CONSTRUED TO EXCLUDE FROM THE DENOMINATOR ANY ITEM OF INCOME 9,708
DESCRIBED IN SECTION 5733.051 OF THE REVISED CODE. 9,711
(3) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 9,715
TAX CALCULATED IN DIVISION (C) OF THIS SECTION SHALL BE REDUCED 9,717
BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY THE FRACTION 9,718
DESCRIBED IN DIVISION (J)(2) OF THIS SECTION. 9,720
(4) IN NO EVENT SHALL THE REDUCTION PROVIDED BY DIVISION 9,724
(J)(2) OR (J)(3) OF THIS SECTION EXCEED THE AMOUNT OF THE EXCISE 9,727
TAX PAID IN ACCORDANCE WITH SECTION 5727.38 OF THE REVISED CODE, 9,730
FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 9,731
IMMEDIATELY PRECEDING THE TAX YEAR. 9,732
Sec. 5733.09. (A) An incorporated company, whether 9,741
228
foreign or domestic, owning and operating a public utility in 9,742
this state, and as such required by law to file reports with the 9,743
tax commissioner and to pay an excise tax upon its gross 9,744
receipts, and insurance, fraternal, beneficial, bond investment, 9,745
and other corporations required by law to file annual reports 9,746
with the superintendent of insurance and dealers in intangibles, 9,747
the shares of which ARE, or the capital or ownership in capital 9,748
employed by such dealer is, subject to the taxes imposed by 9,749
section 5707.03 of the Revised Code, shall not be subject to this 9,750
chapter, except for sections 5733.031, 5733.042, 5733.05, 9,751
5733.052, 5733.053, 5733.069, 5733.0611, 5733.40, 5733.41, and 9,752
sections 5747.40 to 5747.453 of the Revised Code. AN ELECTRIC 9,753
COMPANY SUBJECT TO THE FILING REQUIREMENTS OF SECTION 5727.08 OF 9,754
THE REVISED CODE OR OTHERWISE HAVING NEXUS WITH OR IN THIS STATE 9,756
UNDER THE CONSTITUTION OF THE UNITED STATES, OR ANY OTHER 9,761
CORPORATION HAVING ANY GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO 9,762
PROVIDING PUBLIC UTILITY SERVICE AS AN ELECTRIC COMPANY OR HAVING 9,763
ANY PROPERTY DIRECTLY ATTRIBUTABLE TO PROVIDING PUBLIC UTILITY 9,764
SERVICE AS AN ELECTRIC COMPANY, IS SUBJECT TO THIS CHAPTER. 9,765
(B) A corporation that has made an election under 9,767
subchapter S, chapter one, subtitle A, of the Internal Revenue 9,768
Code for its taxable year under such code is exempt from the tax 9,769
imposed by section 5733.06 of the Revised Code that is based on 9,770
that taxable year. 9,771
A corporation that makes such an election shall file a 9,773
notice of such election with the tax commissioner between the 9,774
first day of January and the thirty-first day of March of each 9,775
tax year that the election is in effect. 9,776
(C) An entity defined to be a "real estate investment 9,778
trust" by section 856 of the Internal Revenue Code, a "regulated 9,779
investment company" by section 851 of the Internal Revenue Code, 9,780
or a "real estate mortgage investment conduit" by section 860D of 9,781
the Internal Revenue Code, is exempt from taxation for a tax year 9,782
as a corporation under this chapter and is exempt from taxation 9,783
229
for a return year as a dealer in intangibles under Chapter 5725. 9,784
of the Revised Code if it provides the report required by this 9,785
division. By the last day of March of the tax or return year the 9,786
entity shall submit to the tax commissioner the name of the 9,787
entity with a list of the names, addresses, and social security 9,788
or federal identification numbers of all investors, shareholders, 9,789
and other similar investors who owned any interest or invested in 9,790
the entity during the preceding calendar year. The commissioner 9,791
may extend the date by which the report must be submitted for 9,792
reasonable cause shown by the entity. The commissioner may 9,793
prescribe the form of the report required for exemption under 9,794
this division. 9,795
(D)(1) As used in this division: 9,797
(a) "Commercial printer" means a person primarily engaged 9,800
in the business of commercial printing. However, "commercial 9,801
printer" does not include a person primarily engaged in the 9,802
business of providing duplicating services using photocopy 9,803
machines or other xerographic processes. 9,804
(b) "Commercial printing" means printing by one or more 9,807
common processes such as letterpress, lithography, gravure, 9,808
screen, or digital imaging, and includes related activities such 9,809
as binding, platemaking, prepress operation, cartographic 9,810
composition, and typesetting.
(c) "Contract for printing" means an oral or written 9,813
agreement for the purchase of printed materials produced by a 9,814
commercial printer.
(d) "Intangible property located at the premises of a 9,817
commercial printer" means intangible property of any kind owned 9,818
or licensed by a customer of the commercial printer and furnished 9,819
to the commercial printer for use in commercial printing. 9,820
(e) "Printed material" means any tangible personal 9,823
property produced or processed by a commercial printer pursuant 9,824
to a contract for printing.
(f) "Related member" has the same meaning as in division 9,827
230
(A)(6) of section 5733.042 of the Revised Code without regard to 9,828
division (B) of that section. 9,830
(2) Except as provided in divisions (D)(3) and (4) of this 9,832
section, a corporation not otherwise subject to the tax imposed 9,833
by section 5733.06 of the Revised Code for a tax year does not 9,834
become subject to that tax for the tax year solely by reason of 9,836
any one or more of the following occurring in this state during 9,837
the taxable year that ends immediately prior to the tax year: 9,838
(a) Ownership by the corporation or a related member of 9,841
the corporation of tangible personal property or intangible 9,842
property located during all or any portion of the taxable year or 9,843
on the first day of the tax year at the premises of a commercial 9,844
printer with which the corporation or the corporation's related 9,845
member has a contract for printing with respect to such property 9,846
or the premises of a commercial printer's related member with 9,847
which the corporation or the corporation's related member has a 9,848
contract for printing with respect to such property; 9,849
(b) Sales by the corporation or a related member of the 9,852
corporation of property produced at and shipped or distributed 9,853
from the premises of a commercial printer with which the 9,854
corporation or the corporation's related member has a contract 9,855
for printing with respect to such property or the premises of a 9,856
commercial printer's related member with which the corporation or 9,857
the corporation's related member has a contract for printing with 9,858
respect to such property;
(c) Activities of employees, officers, agents, or 9,861
contractors of the corporation or a related member of the 9,862
corporation on the premises of a commercial printer with which 9,863
the corporation or the corporation's related member has a 9,864
contract for printing or the premises of a commercial printer's 9,865
related member with which the corporation or the corporation's 9,866
related member has a contract for printing, where the activities 9,867
are directly and solely related to quality control, distribution, 9,868
or printing services, or any combination thereof, performed by or 9,869
231
at the direction of the commercial printer or the commercial 9,870
printer's related member.
(3) The exemption under this division does not apply for a 9,872
taxable year to any corporation having on the first day of 9,873
January of the tax year or at any time during the taxable year 9,875
ending immediately preceding the first day of January of the tax 9,877
year a related member which, on the first day of January of the 9,878
tax year or during any portion of such taxable year of the 9,879
corporation, has nexus in or with this state under the 9,880
Constitution of the United States or holds a certificate of 9,882
compliance with the laws of this state authorizing it to do 9,883
business in this state.
(4) With respect to allowing the exemption under this 9,885
division, the tax commissioner shall be guided by the doctrines 9,886
of "economic reality," "sham transaction," "step transaction," 9,887
and "substance over form." A corporation shall bear the burden 9,888
of establishing by a preponderance of the evidence that any 9,889
transaction giving rise to an exemption claimed under this 9,890
division did not have as a principal purpose the avoidance of any 9,892
portion of the tax imposed by section 5733.06 of the Revised
Code.
Application of the doctrines listed in division (D)(4) of 9,895
this section is not limited to this division. 9,896
Sec. 5733.39. (A) AS USED IN THIS SECTION: 9,899
(1) "COMPLIANCE FACILITY" MEANS PROPERTY THAT IS DESIGNED, 9,901
CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC 9,902
GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING WITH 9,904
PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE 9,906
"CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 9,907
7651, AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN 9,908
COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE 9,909
REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER 9,910
THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS 9,911
ARE EMITTED INTO THE ATMOSPHERE. "COMPLIANCE FACILITY" ALSO 9,912
232
INCLUDES ANY OF THE FOLLOWING: 9,913
(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL 9,915
BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE 9,916
PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL 9,917
PROCESSED BY THE COMPLIANCE FACILITY IS BURNED; 9,918
(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY 9,920
WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT 9,921
ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, 9,922
AND OPERATION, OF THE COMPLIANCE FACILITY; 9,923
(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 9,925
3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES 9,926
PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION 9,927
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 9,928
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF 9,929
WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME 9,930
PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT 9,931
PRODUCES THE WASTES DISPOSED OF AT THE FACILITY; 9,932
(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, 9,934
OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING 9,935
FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS 9,936
PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION 9,937
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 9,938
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED; 9,939
(e) A FLUE GAS DESULFURIZATION SYSTEM THAT IS CONNECTED TO 9,942
A COAL-FIRED ELECTRIC GENERATING UNIT AND THAT EITHER WAS PLACED 9,943
IN SERVICE PRIOR TO JULY 10, 1991, OR CONSTRUCTION OF WHICH WAS 9,944
COMMENCED PRIOR TO THAT DATE;
(f) FACILITIES OR EQUIPMENT ACQUIRED, CONSTRUCTED, OR 9,947
INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING UNIT
PRIMARILY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS PRODUCED BY 9,948
A COMPLIANCE FACILITY OR OTHER COAL COMBUSTION BYPRODUCTS 9,949
PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE COMPLIANCE 9,950
FACILITY IS INCORPORATED OR CONNECTED. 9,951
(2) "OHIO COAL" HAS THE SAME MEANING AS IN SECTION 4913.01 9,954
233
OF THE REVISED CODE. 9,955
(3) "SALE AND LEASEBACK TRANSACTION" HAS THE SAME MEANING 9,957
AS IN SECTION 5727.01 OF THE REVISED CODE. 9,960
(B) BEGINNING IN TAX YEAR 2002, AN ELECTRIC COMPANY SHALL 9,963
BE ALLOWED A NONREFUNDABLE CREDIT AGAINST THE TAX IMPOSED BY 9,964
SECTION 5733.06 OF THE REVISED CODE FOR OHIO COAL USED IN ANY OF 9,967
ITS COAL-FIRED ELECTRIC GENERATING UNITS AFTER APRIL 30, 2001. 9,968
SECTION 5733.057 OF THE REVISED CODE SHALL APPLY WHEN CALCULATING 9,972
THE CREDIT ALLOWED BY THIS SECTION. THE CREDIT SHALL BE CLAIMED 9,973
AT THE RATE OF ONE DOLLAR PER TON OF OHIO COAL BURNED IN A 9,974
COAL-FIRED ELECTRIC GENERATING UNIT DURING THE TAXABLE YEAR 9,975
ENDING IMMEDIATELY PRECEDING THE TAX YEAR. THE CREDIT IS ALLOWED 9,977
ONLY IF ALL OF THE FOLLOWING CONDITIONS ARE MET DURING SUCH 9,978
TAXABLE YEAR:
(1) THE COAL-FIRED ELECTRIC GENERATING UNIT IS OWNED AND 9,980
USED BY THE COMPANY CLAIMING THE CREDIT OR LEASED AND USED BY 9,981
THAT COMPANY UNDER A SALE AND LEASEBACK TRANSACTION. 9,982
(2) A COMPLIANCE FACILITY IS ATTACHED TO, INCORPORATED IN, 9,985
OR USED IN CONJUNCTION WITH THE COAL-FIRED GENERATING UNIT. 9,986
(3) EITHER OF THE FOLLOWING APPLIES: 9,988
(a) IN THE CASE OF A COAL-FIRED ELECTRIC GENERATING UNIT 9,991
THAT BURNS COAL IN COMBINATION WITH ANOTHER FUEL FOR THE PURPOSE 9,992
OF COMPLYING WITH PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER 9,995
TITLE IV OF THE "CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 10,001
2584, 42 U.S.C.A. 7651, AT LEAST EIGHTY PER CENT OF THE HEAT 10,003
INPUT DURING THE TAXABLE YEAR IS FROM OHIO COAL. 10,005
(b) IN THE CASE OF ANY OTHER COAL-FIRED ELECTRIC 10,007
GENERATING UNIT, AT LEAST NINETY PER CENT OF THE HEAT INPUT 10,008
DURING THE TAXABLE YEAR IS FROM OHIO COAL. 10,010
(C) THE CREDIT SHALL BE CLAIMED IN THE ORDER REQUIRED 10,013
UNDER SECTION 5733.98 OF THE REVISED CODE. IF THE CREDIT EXCEEDS 10,015
THE TAX IMPOSED BY SECTION 5733.06 OF THE REVISED CODE AFTER ALL 10,018
OTHER NONREFUNDABLE CREDITS FOR THE TAX YEAR AS SET FORTH IN 10,019
SECTION 5733.98 OF THE REVISED CODE, THE EXCESS SHALL NOT BE 10,021
234
ALLOWED AS A CREDIT EITHER AGAINST THE TAXES DUE FOR ANY OTHER 10,022
YEAR OR AGAINST ANY OTHER TAX OR FEE. NOTHING HEREIN SHALL BE 10,023
CONSTRUED TO PROVIDE FOR CARRYOVER OR CARRYBACK OF ANY UNUSED 10,025
CREDIT PROVIDED BY ANY OTHER SECTION OF THE REVISED CODE OR FOR 10,027
THE APPLICATION OF ANY UNUSED CREDIT PROVIDED BY ANY OTHER 10,028
SECTION OF THE REVISED CODE AGAINST ANY OTHER TAX OR FEE IF SUCH 10,031
SECTION DOES NOT EXPRESSLY PROVIDE EITHER FOR A CARRYOVER OR 10,032
CARRYBACK OF ANY UNUSED CREDIT OR FOR THE APPLICATION OF AN 10,033
UNUSED CREDIT AGAINST ANY OTHER TAX OR FEE. 10,034
(D) THE SUM OF THE CREDITS ALLOWED FOR ALL YEARS UNDER 10,037
SECTION 5727.391 OF THE REVISED CODE FOR COAL BURNED IN EACH 10,039
COAL-FIRED ELECTRIC GENERATING UNIT AND THE SUM OF THE CREDITS 10,040
ALLOWED FOR ALL TAX YEARS UNDER THIS SECTION SHALL NOT EXCEED 10,041
TWENTY PER CENT OF THE COST OF THE COMPLIANCE FACILITY ATTACHED 10,042
TO, INCORPORATED IN, OR USED IN CONJUNCTION WITH THE UNIT. IF A 10,043
COMPLIANCE FACILITY IS USED IN CONJUNCTION WITH MORE THAN ONE 10,044
GENERATING UNIT, THE TAX COMMISSIONER SHALL PRORATE ITS COST 10,045
AMONG THE UNITS. 10,046
(E) THE DIRECTOR OF ENVIRONMENTAL PROTECTION, UPON THE 10,049
REQUEST OF THE TAX COMMISSIONER, SHALL CERTIFY WHETHER A FACILITY 10,050
IS A COMPLIANCE FACILITY. IN THE CASE OF A COMPLIANCE FACILITY 10,051
OWNED BY AN ELECTRIC COMPANY, THE PUBLIC UTILITIES COMMISSION 10,052
SHALL CERTIFY TO THE TAX COMMISSIONER THE COST OF THE FACILITY AS 10,053
OF THE DATE IT WAS PLACED IN SERVICE. IN THE CASE OF A 10,054
COMPLIANCE FACILITY OWNED BY A PERSON OTHER THAN AN ELECTRIC 10,055
COMPANY, THE TAX COMMISSIONER SHALL DETERMINE THE COST OF THE 10,056
FACILITY AS OF THE DATE IT WAS PLACED IN SERVICE. IF THE OWNER 10,057
OF SUCH A FACILITY FAILS TO FURNISH THE INFORMATION NECESSARY TO 10,058
MAKE THAT DETERMINATION, NO CREDIT SHALL BE ALLOWED. 10,059
Sec. 5733.98. (A) To provide a uniform procedure for 10,068
calculating the amount of tax imposed by section 5733.06 of the 10,069
Revised Code that is due under this chapter, a taxpayer shall 10,071
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised 10,072
235
Code:
(1) The credit for taxes paid by a qualifying pass-through 10,074
entity allowed under section 5733.0611 of the Revised Code; 10,075
(2) The credit for qualifying affiliated groups under 10,077
section 5733.068 of the Revised Code; 10,078
(3) The subsidiary corporation credit under section 10,080
5733.067 of the Revised Code; 10,081
(4) The savings and loan assessment credit under section 10,083
5733.063 of the Revised Code; 10,084
(5) The credit for recycling and litter prevention 10,086
donations under section 5733.064 of the Revised Code; 10,088
(6) The credit for employers that enter into agreements 10,091
with child day-care centers under section 5733.36 of the Revised 10,092
Code;
(7) The credit for employers that reimburse employee child 10,094
day-care expenses under section 5733.38 of the Revised Code; 10,096
(8) The credit for manufacturing investments under section 10,098
5733.061 of the Revised Code; 10,099
(9) The credit for purchases of new manufacturing 10,101
machinery and equipment under section 5733.31 or section 5733.311 10,102
of the Revised Code; 10,103
(10) The second credit for purchases of new manufacturing 10,106
machinery and equipment under section 5733.33 of the Revised 10,107
Code;
(11) The enterprise zone credit under section 5709.66 of 10,109
the Revised Code; 10,110
(12) The credit for the eligible costs associated with a 10,112
voluntary action under section 5733.34 of the Revised Code; 10,114
(13) The credit for employers that establish on-site child 10,117
day-care under section 5733.37 of the Revised Code; 10,118
(14) The credit for purchases of qualifying grape 10,120
production property under section 5733.32 of the Revised Code; 10,121
(15) The export sales credit under section 5733.069 of the 10,124
Revised Code;
236
(16) The credit for research and development and 10,126
technology transfer investors under section 5733.35 of the 10,127
Revised Code;
(17) The enterprise zone credits under section 5709.65 of 10,130
the Revised Code;
(18) THE CREDIT FOR USING OHIO COAL UNDER SECTION 5733.39 10,132
OF THE REVISED CODE;
(19) The refundable jobs creation credit under section 10,134
5733.0610 of the Revised Code. 10,135
(B) For any credit except the refundable jobs creation 10,137
credit, the amount of the credit for a tax year shall not exceed 10,138
the tax due after allowing for any other credit that precedes it 10,139
in the order required under this section. Any excess amount of a 10,140
particular credit may be carried forward if authorized under the 10,141
section creating that credit. 10,142
Sec. 5739.011. (A) As used in this section: 10,151
(1) "Manufacturer" means a person who is engaged in 10,153
manufacturing, processing, assembling, or refining a product for 10,154
sale. 10,155
(2) "Manufacturing facility" means a single location where 10,157
a manufacturing operation is conducted, including locations 10,158
consisting of one or more buildings or structures in a contiguous 10,159
area owned or controlled by the manufacturer. 10,160
(3) "Materials handling" means the movement of the product 10,162
being or to be manufactured, during which movement the product is 10,163
not undergoing any substantial change or alteration in its state 10,164
or form. 10,165
(4) "Testing" means a process or procedure to identify the 10,167
properties or assure the quality of a material or product. 10,168
(5) "Completed product" means a manufactured item that is 10,170
in the form and condition as it will be sold by the manufacturer. 10,171
An item is completed when all processes that change or alter its 10,172
state or form or enhance its value are finished, even though the 10,173
item subsequently will be tested to ensure its quality or be 10,174
237
packaged for storage or shipment. 10,175
(6) "Continuous manufacturing operation" means the process 10,177
in which raw materials or components are moved through the steps 10,178
whereby manufacturing occurs. Materials handling of raw 10,179
materials or parts from the point of receipt or pre-production 10,180
PREPRODUCTION storage or of a completed product, to or from 10,181
storage, to or from packaging, or to the place from which the 10,183
completed product will be shipped, is not a part of a continuous 10,184
manufacturing operation. 10,185
(B) For purposes of division (E)(9) of section 5739.01 of 10,187
the Revised Code, the "thing transferred" includes, but is not 10,188
limited to, any of the following: 10,189
(1) Production machinery and equipment that act upon the 10,191
product or machinery and equipment that treat the materials or 10,192
parts in preparation for the manufacturing operation; 10,193
(2) Materials handling equipment that moves the product 10,195
through a continuous manufacturing operation; equipment that 10,196
temporarily stores the product during the manufacturing 10,197
operation; or, excluding motor vehicles licensed to operate on 10,198
public highways, equipment used in intraplant or interplant 10,199
transfers of work in process where the plant or plants between 10,200
which such transfers occur are manufacturing facilities operated 10,201
by the same person; 10,202
(3) Catalysts, solvents, water, acids, oil, and similar 10,204
consumables that interact with the product and that are an 10,205
integral part of the manufacturing operation; 10,206
(4) Machinery, equipment, and other tangible personal 10,208
property used during the manufacturing operation that control, 10,209
physically support, produce power for, lubricate, or are 10,210
otherwise necessary for the functioning of production machinery 10,211
and equipment and the continuation of the manufacturing 10,212
operation; 10,213
(5) Machinery, equipment, fuel, power, material, parts, 10,215
and other tangible personal property used to manufacture 10,216
238
machinery, equipment, or other tangible personal property used in 10,217
manufacturing a product for sale; 10,218
(6) Machinery, equipment, and other tangible personal 10,220
property used by a manufacturer to test raw materials, the 10,221
product being manufactured, or the completed product; 10,222
(7) Machinery and equipment used to handle or temporarily 10,224
store scrap that is intended to be reused in the manufacturing 10,225
operation at the same manufacturing facility; 10,226
(8) Electricity, coke COKE, gas, water, steam, and similar 10,228
substances used in the manufacturing operation; machinery and 10,229
equipment used for, and fuel consumed in, producing or extracting 10,230
those substances; and machinery, equipment, and other tangible 10,231
personal property used to treat, filter, pump, alter voltage, or 10,232
otherwise make the substance suitable for use in the 10,233
manufacturing operation; AND MACHINERY AND EQUIPMENT USED TO 10,234
PRODUCE ELECTRICITY FOR USE IN THE MANUFACTURING OPERATION; 10,235
(9) Machinery, equipment, and other tangible personal 10,237
property used to transport or transmit electricity, coke, gas, 10,238
water, steam, or similar substances used in the manufacturing 10,239
operation from the point of generation, if produced by the 10,240
manufacturer, or from the point where the substance enters the 10,241
manufacturing facility, if purchased by the manufacturer, to the 10,242
manufacturing operation; 10,243
(10) Machinery, equipment, and other tangible personal 10,245
property that treats, filters, cools, refines, or otherwise 10,246
renders water, steam, acid, oil, solvents, or similar substances 10,247
used in the manufacturing operation reusable, provided that the 10,248
substances are intended for reuse and not for disposal, sale, or 10,249
transportation from the manufacturing facility; 10,250
(11) Parts, components, and repair and installation 10,252
services for items described in division (B) of this section. 10,253
(C) For purposes of division (E)(9) of section 5739.01 of 10,255
the Revised Code, the "thing transferred" does not include any of 10,256
the following: 10,257
239
(1) Tangible personal property used in administrative, 10,259
personnel, security, inventory control, record-keeping, ordering, 10,260
billing, or similar functions; 10,261
(2) Tangible personal property used in storing raw 10,263
materials or parts prior to the commencement of the manufacturing 10,264
operation or used to handle or store a completed product, 10,265
including storage that actively maintains a completed product in 10,266
a marketable state or form; 10,267
(3) Tangible personal property used to handle or store 10,269
scrap or waste intended for disposal, sale, or other disposition, 10,270
other than reuse in the manufacturing operation at the same 10,271
manufacturing facility; 10,272
(4) Tangible personal property that is or is to be 10,274
incorporated into realty; 10,275
(5) Machinery, equipment, and other tangible personal 10,277
property used for ventilation, dust, or gas collection, humidity 10,278
or temperature regulation, or similar environmental control, 10,279
except machinery, equipment, and other tangible personal property 10,280
that totally regulates the environment in a special and limited 10,281
area of the manufacturing facility where the regulation is 10,282
essential for production to occur; 10,283
(6) Tangible personal property used for the protection and 10,285
safety of workers, unless the property is attached to or 10,286
incorporated into machinery and equipment used in a continuous 10,287
manufacturing operation; 10,288
(7) Tangible personal property used to store fuel, water, 10,290
solvents, acid, oil, or similar items consumed in the 10,291
manufacturing operation; 10,292
(8) Machinery, equipment, and other tangible personal 10,294
property used for research and development; 10,295
(9) Machinery, equipment, and other tangible personal 10,297
property used to clean, repair, or maintain real or personal 10,298
property in the manufacturing facility; 10,299
(10) Motor vehicles registered for operation on the public 10,301
240
highways. 10,302
(D) For purposes of division (E)(9) of section 5739.01 of 10,304
the Revised Code, if the "thing transferred" is a machine used by 10,305
a manufacturer in both a taxable and an exempt manner, it shall 10,306
be totally taxable or totally exempt from taxation based upon its 10,307
quantified primary use. If the "things transferred" are 10,308
fungibles, they shall be taxed based upon the proportion of the 10,309
fungibles used in a taxable manner. 10,310
Sec. 5739.02. For the purpose of providing revenue with 10,319
which to meet the needs of the state, for the use of the general 10,320
revenue fund of the state, for the purpose of securing a thorough 10,321
and efficient system of common schools throughout the state, for 10,322
the purpose of affording revenues, in addition to those from 10,323
general property taxes, permitted under constitutional 10,324
limitations, and from other sources, for the support of local 10,325
governmental functions, and for the purpose of reimbursing the 10,326
state for the expense of administering this chapter, an excise 10,327
tax is hereby levied on each retail sale made in this state. 10,328
(A) The tax shall be collected pursuant to the schedules 10,330
in section 5739.025 of the Revised Code. 10,331
The tax applies and is collectible when the sale is made, 10,333
regardless of the time when the price is paid or delivered. 10,334
In the case of a sale, the price of which consists in whole 10,336
or in part of rentals for the use of the thing transferred, the 10,337
tax, as regards such rentals, shall be measured by the 10,338
installments thereof. 10,339
In the case of a sale of a service defined under division 10,341
(MM) or (NN) of section 5739.01 of the Revised Code, the price of 10,342
which consists in whole or in part of a membership for the 10,343
receipt of the benefit of the service, the tax applicable to the 10,344
sale shall be measured by the installments thereof. 10,345
(B) The tax does not apply to the following: 10,347
(1) Sales to the state or any of its political 10,349
subdivisions, or to any other state or its political subdivisions 10,350
241
if the laws of that state exempt from taxation sales made to this 10,351
state and its political subdivisions; 10,352
(2) Sales of food for human consumption off the premises 10,354
where sold; 10,355
(3) Sales of food sold to students only in a cafeteria, 10,357
dormitory, fraternity, or sorority maintained in a private, 10,358
public, or parochial school, college, or university; 10,359
(4) Sales of newspapers, and of magazine subscriptions 10,361
shipped by second class mail, and sales or transfers of magazines 10,362
distributed as controlled circulation publications; 10,363
(5) The furnishing, preparing, or serving of meals without 10,365
charge by an employer to an employee provided the employer 10,366
records the meals as part compensation for services performed or 10,367
work done; 10,368
(6) Sales of motor fuel upon receipt, use, distribution, 10,371
or sale of which in this state a tax is imposed by the law of 10,372
this state, but this exemption shall not apply to the sale of 10,373
motor fuel on which a refund of the tax is allowable under 10,374
section 5735.14 of the Revised Code; and the tax commissioner may 10,375
deduct the amount of tax levied by this section applicable to the 10,376
price of motor fuel when granting a refund of motor fuel tax 10,377
pursuant to section 5735.14 of the Revised Code and shall cause 10,378
the amount deducted to be paid into the general revenue fund of 10,379
this state;
(7) Sales of natural gas by a natural gas company, of 10,381
electricity by an electric company, of water by a water-works 10,382
company, or of steam by a heating company, if in each case the 10,383
thing sold is delivered to consumers through wires, pipes, or 10,384
conduits, and all sales of communications services by a telephone 10,385
or telegraph company, all terms as defined in section 5727.01 of 10,386
the Revised Code; 10,387
(8) Casual sales by a person, or auctioneer employed 10,389
directly by the person to conduct such sales, except as to such 10,391
sales of motor vehicles, watercraft or outboard motors required 10,392
242
to be titled under section 1548.06 of the Revised Code, 10,393
watercraft documented with the United States coast guard, 10,394
snowmobiles, and all-purpose vehicles as defined in section 10,395
4519.01 of the Revised Code; 10,396
(9) Sales of services or tangible personal property, other 10,398
than motor vehicles, mobile homes, and manufactured homes, by 10,400
churches or by nonprofit organizations operated exclusively for 10,401
charitable purposes as defined in division (B)(12) of this 10,402
section, provided that the number of days on which such tangible 10,403
personal property or services, other than items never subject to 10,404
the tax, are sold does not exceed six in any calendar year. If 10,405
the number of days on which such sales are made exceeds six in 10,406
any calendar year, the church or organization shall be considered 10,407
to be engaged in business and all subsequent sales by it shall be 10,408
subject to the tax. In counting the number of days, all sales by 10,409
groups within a church or within an organization shall be 10,410
considered to be sales of that church or organization, except 10,411
that sales made by separate student clubs and other groups of 10,412
students of a primary or secondary school, and sales made by a 10,413
parent-teacher association, booster group, or similar 10,414
organization that raises money to support or fund curricular or 10,415
extracurricular activities of a primary or secondary school, 10,416
shall not be considered to be sales of such school, and sales by 10,417
each such club, group, association, or organization shall be 10,418
counted separately for purposes of the six-day limitation. This 10,419
division does not apply to sales by a noncommercial educational 10,420
radio or television broadcasting station. 10,421
(10) Sales not within the taxing power of this state under 10,423
the Constitution of the United States; 10,424
(11) The transportation of persons or property, unless the 10,426
transportation is by a private investigation and security 10,427
service; 10,428
(12) Sales of tangible personal property or services to 10,430
churches, to organizations exempt from taxation under section 10,431
243
501(c)(3) of the Internal Revenue Code of 1986, and to any other 10,432
nonprofit organizations operated exclusively for charitable 10,433
purposes in this state, no part of the net income of which inures 10,434
to the benefit of any private shareholder or individual, and no 10,435
substantial part of the activities of which consists of carrying 10,436
on propaganda or otherwise attempting to influence legislation; 10,437
sales to offices administering one or more homes for the aged or 10,438
one or more hospital facilities exempt under section 140.08 of 10,439
the Revised Code; and sales to organizations described in 10,440
division (D) of section 5709.12 of the Revised Code. 10,441
"Charitable purposes" means the relief of poverty; the 10,443
improvement of health through the alleviation of illness, 10,444
disease, or injury; the operation of an organization exclusively 10,446
for the provision of professional, laundry, printing, and 10,447
purchasing services to hospitals or charitable institutions; the 10,449
operation of a home for the aged, as defined in section 5701.13 10,450
of the Revised Code; the operation of a radio or television 10,451
broadcasting station that is licensed by the federal 10,452
communications commission as a noncommercial educational radio or 10,453
television station; the operation of a nonprofit animal adoption 10,455
service or a county humane society; the promotion of education by 10,456
an institution of learning that maintains a faculty of qualified 10,457
instructors, teaches regular continuous courses of study, and
confers a recognized diploma upon completion of a specific 10,458
curriculum; the operation of a parent-teacher association, 10,459
booster group, or similar organization primarily engaged in the 10,460
promotion and support of the curricular or extracurricular 10,461
activities of a primary or secondary school; the operation of a 10,462
community or area center in which presentations in music, 10,463
dramatics, the arts, and related fields are made in order to 10,464
foster public interest and education therein; the production of 10,465
performances in music, dramatics, and the arts; or the promotion 10,467
of education by an organization engaged in carrying on research
in, or the dissemination of, scientific and technological 10,468
244
knowledge and information primarily for the public. 10,469
Nothing in this division shall be deemed to exempt sales to 10,471
any organization for use in the operation or carrying on of a 10,472
trade or business, or sales to a home for the aged for use in the 10,473
operation of independent living facilities as defined in division 10,474
(A) of section 5709.12 of the Revised Code. 10,475
(13) Building and construction materials and services sold 10,477
to construction contractors for incorporation into a structure or 10,478
improvement to real property under a construction contract with 10,479
this state or a political subdivision thereof, or with the United 10,480
States government or any of its agencies; building and 10,481
construction materials and services sold to construction 10,482
contractors for incorporation into a structure or improvement to 10,483
real property that are accepted for ownership by this state or 10,485
any of its political subdivisions, or by the United States 10,486
government or any of its agencies at the time of completion of 10,487
such structures or improvements; building and construction 10,488
materials sold to construction contractors for incorporation into 10,489
a horticulture structure or livestock structure for a person 10,490
engaged in the business of horticulture or producing livestock; 10,491
building materials and services sold to a construction contractor 10,492
for incorporation into a house of public worship or religious 10,493
education, or a building used exclusively for charitable purposes 10,494
under a construction contract with an organization whose purpose 10,495
is as described in division (B)(12) of this section; building and 10,496
construction materials sold for incorporation into the original 10,497
construction of a sports facility under section 307.696 of the 10,498
Revised Code; and building and construction materials and 10,499
services sold to a construction contractor for incorporation into 10,500
real property outside this state if such materials and services, 10,501
when sold to a construction contractor in the state in which the 10,502
real property is located for incorporation into real property in 10,503
that state, would be exempt from a tax on sales levied by that 10,504
state; 10,505
245
(14) Sales of ships or vessels or rail rolling stock used 10,507
or to be used principally in interstate or foreign commerce, and 10,508
repairs, alterations, fuel, and lubricants for such ships or 10,509
vessels or rail rolling stock; 10,510
(15) Sales to persons engaged in any of the activities 10,512
mentioned in division (E)(2) or (9) of section 5739.01 of the 10,513
Revised Code, to persons engaged in making retail sales, or to 10,514
persons who purchase for sale from a manufacturer tangible 10,515
personal property that was produced by the manufacturer in 10,516
accordance with specific designs provided by the purchaser, of 10,517
packages, including material and parts for packages, and of 10,518
machinery, equipment, and material for use primarily in packaging 10,519
tangible personal property produced for sale by or on the order 10,520
of the person doing the packaging, or sold at retail. "Packages" 10,521
includes bags, baskets, cartons, crates, boxes, cans, bottles, 10,522
bindings, wrappings, and other similar devices and containers, 10,523
and "packaging" means placing therein. 10,524
(16) Sales of food to persons using food stamp coupons to 10,526
purchase the food. As used in division (B)(16) of this section, 10,527
"food" has the same meaning as in the "Food Stamp Act of 1977," 10,528
91 Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations 10,529
adopted pursuant to that act. 10,530
(17) Sales to persons engaged in farming, agriculture, 10,532
horticulture, or floriculture, of tangible personal property for 10,533
use or consumption directly in the production by farming, 10,534
agriculture, horticulture, or floriculture of other tangible 10,535
personal property for use or consumption directly in the 10,536
production of tangible personal property for sale by farming, 10,537
agriculture, horticulture, or floriculture; or material and parts 10,538
for incorporation into any such tangible personal property for 10,539
use or consumption in production; and of tangible personal 10,540
property for such use or consumption in the conditioning or 10,541
holding of products produced by and for such use, consumption, or 10,542
sale by persons engaged in farming, agriculture, horticulture, or 10,543
246
floriculture, except where such property is incorporated into 10,544
real property; 10,545
(18) Sales of drugs dispensed by a licensed pharmacist 10,548
upon the order of a licensed health professional authorized to 10,550
prescribe drugs to a human being, as the term "licensed health
professional authorized to prescribe drugs" is defined in section 10,551
4729.01 of the Revised Code; insulin as recognized in the 10,553
official United States pharmacopoeia; urine and blood testing 10,554
materials when used by diabetics or persons with hypoglycemia to 10,555
test for glucose or acetone; hypodermic syringes and needles when 10,556
used by diabetics for insulin injections; epoetin alfa when 10,557
purchased for use in the treatment of persons with end-stage 10,558
renal disease; hospital beds when purchased for use by persons 10,560
with medical problems for medical purposes; and oxygen and 10,561
oxygen-dispensing equipment when purchased for use by persons 10,562
with medical problems for medical purposes;
(19) Sales of artificial limbs or portion thereof, breast 10,564
prostheses, and other prosthetic devices for humans; braces or 10,565
other devices for supporting weakened or nonfunctioning parts of 10,566
the human body; wheelchairs; devices used to lift wheelchairs 10,567
into motor vehicles and parts and accessories to such devices; 10,568
crutches or other devices to aid human perambulation; and items 10,569
of tangible personal property used to supplement impaired 10,570
functions of the human body such as respiration, hearing, or 10,571
elimination. No exemption under this division shall be allowed 10,572
for nonprescription drugs, medicines, or remedies; items or 10,573
devices used to supplement vision; items or devices whose 10,574
function is solely or primarily cosmetic; or physical fitness 10,575
equipment. This division does not apply to sales to a physician 10,576
or medical facility for use in the treatment of a patient. 10,577
(20) Sales of emergency and fire protection vehicles and 10,579
equipment to nonprofit organizations for use solely in providing 10,580
fire protection and emergency services for political subdivisions 10,581
of the state; 10,582
247
(21) Sales of tangible personal property manufactured in 10,584
this state, if sold by the manufacturer in this state to a 10,585
retailer for use in the retail business of the retailer outside 10,586
of this state and if possession is taken from the manufacturer by 10,588
the purchaser within this state for the sole purpose of 10,589
immediately removing the same from this state in a vehicle owned 10,590
by the purchaser;
(22) Sales of services provided by the state or any of its 10,592
political subdivisions, agencies, instrumentalities, 10,593
institutions, or authorities, or by governmental entities of the 10,594
state or any of its political subdivisions, agencies, 10,595
instrumentalities, institutions, or authorities; 10,596
(23) Sales of motor vehicles to nonresidents of this state 10,598
upon the presentation of an affidavit executed in this state by 10,599
the nonresident purchaser affirming that the purchaser is a 10,600
nonresident of this state, that possession of the motor vehicle 10,601
is taken in this state for the sole purpose of immediately 10,602
removing it from this state, that the motor vehicle will be 10,603
permanently titled and registered in another state, and that the 10,604
motor vehicle will not be used in this state; 10,605
(24) Sales to persons engaged in the preparation of eggs 10,607
for sale of tangible personal property used or consumed directly 10,608
in such preparation, including such tangible personal property 10,609
used for cleaning, sanitizing, preserving, grading, sorting, and 10,610
classifying by size; packages, including material and parts for 10,611
packages, and machinery, equipment, and material for use in 10,612
packaging eggs for sale; and handling and transportation 10,613
equipment and parts therefor, except motor vehicles licensed to 10,614
operate on public highways, used in intraplant or interplant 10,615
transfers or shipment of eggs in the process of preparation for 10,616
sale, when the plant or plants within or between which such 10,617
transfers or shipments occur are operated by the same person. 10,618
"Packages" includes containers, cases, baskets, flats, fillers, 10,619
filler flats, cartons, closure materials, labels, and labeling 10,620
248
materials, and "packaging" means placing therein. 10,621
(25)(a) Sales of water to a consumer for residential use, 10,623
except the sale of bottled water, distilled water, mineral water, 10,624
carbonated water, or ice; 10,625
(b) Sales of water by a nonprofit corporation engaged 10,627
exclusively in the treatment, distribution, and sale of water to 10,628
consumers, if such water is delivered to consumers through pipes 10,629
or tubing. 10,630
(26) Fees charged for inspection or reinspection of motor 10,632
vehicles under section 3704.14 of the Revised Code; 10,633
(27) Sales of solar, wind, or hydrothermal energy systems 10,635
that meet the guidelines established under division (B) of 10,636
section 1551.20 of the Revised Code, components of such systems 10,637
that are identified under division (B) or (D) of that section, or 10,638
charges for the installation of such systems or components, made 10,639
during the period from August 14, 1979, through December 31, 10,640
1985; 10,641
(28) Sales to persons licensed to conduct a food service 10,643
operation pursuant to section 3732.03 of the Revised Code, of 10,644
tangible personal property primarily used directly for the 10,645
following:
(a) To prepare food for human consumption for sale; 10,647
(b) To preserve food that has been or will be prepared for 10,650
human consumption for sale by the food service operator, not
including tangible personal property used to display food for 10,651
selection by the consumer; 10,652
(c) To clean tangible personal property used to prepare or 10,654
serve food for human consumption for sale. 10,655
(29) Sales of animals by nonprofit animal adoption 10,657
services or county humane societies; 10,658
(30) Sales of services to a corporation described in 10,660
division (A) of section 5709.72 of the Revised Code, and sales of 10,661
tangible personal property that qualifies for exemption from 10,662
taxation under section 5709.72 of the Revised Code; 10,663
249
(31) Sales and installation of agricultural land tile, as 10,665
defined in division (B)(5)(a) of section 5739.01 of the Revised 10,666
Code; 10,667
(32) Sales and erection or installation of portable grain 10,669
bins, as defined in division (B)(5)(b) of section 5739.01 of the 10,670
Revised Code; 10,671
(33) The sale, lease, repair, and maintenance of;, parts 10,673
for;, or items attached to or incorporated in, motor vehicles 10,675
that are primarily used for transporting tangible personal 10,677
property by a person engaged in highway transportation for hire; 10,678
(34) Sales to the state headquarters of any veterans' 10,680
organization in Ohio that is either incorporated and issued a 10,681
charter by the congress of the United States or is recognized by 10,682
the United States veterans administration, for use by the 10,683
headquarters; 10,684
(35) Sales to a telecommunications service vendor of 10,686
tangible personal property and services used directly and 10,687
primarily in transmitting, receiving, switching, or recording any 10,688
interactive, two-way electromagnetic communications, including 10,689
voice, image, data, and information, through the use of any 10,690
medium, including, but not limited to, poles, wires, cables, 10,691
switching equipment, computers, and record storage devices and 10,692
media, and component parts for the tangible personal property. 10,693
The exemption provided in division (B)(35) of this section shall 10,694
be in lieu of all other exceptions under division (E)(2) of 10,695
section 5739.01 of the Revised Code to which a telecommunications 10,696
service vendor may otherwise be entitled based upon the use of 10,697
the thing purchased in providing the telecommunications service. 10,698
(36) Sales of investment metal bullion and investment 10,700
coins. "Investment metal bullion" means any elementary precious 10,701
metal that has been put through a process of smelting or 10,702
refining, including, but not limited to, gold, silver, platinum, 10,703
and palladium, and which is in such state or condition that its 10,704
value depends upon its content and not upon its form. 10,705
250
"Investment metal bullion" does not include fabricated precious 10,706
metal that has been processed or manufactured for one or more 10,708
specific and customary industrial, professional, or artistic 10,709
uses. "Investment coins" means numismatic coins or other forms 10,710
of money and legal tender manufactured of gold, silver, platinum, 10,711
palladium, or other metal under the laws of the United States or 10,712
any foreign nation with a fair market value greater than any 10,713
statutory or nominal value of such coins. 10,714
(37)(a) Sales where the purpose of the consumer is to use 10,716
or consume the things transferred in making retail sales and 10,717
consisting of newspaper inserts, catalogues, coupons, flyers, 10,718
gift certificates, or other advertising material that prices and 10,720
describes tangible personal property offered for retail sale. 10,721
(b) Sales to direct marketing vendors of preliminary 10,723
materials such as photographs, artwork, and typesetting that will 10,724
be used in printing advertising material; of printed matter that 10,725
offers free merchandise or chances to win sweepstake prizes and 10,726
that is mailed to potential customers with advertising material 10,727
described in division (B)(37)(a) of this section; and of 10,728
equipment such as telephones, computers, facsimile machines, and 10,729
similar tangible personal property primarily used to accept 10,730
orders for direct marketing retail sales. 10,731
(c) Sales of automatic food vending machines that preserve 10,733
food with a shelf life of forty-five days or less by 10,734
refrigeration and dispense it to the consumer. 10,735
For purposes of division (B)(37) of this section, "direct 10,737
marketing" means the method of selling where consumers order 10,738
tangible personal property by United States mail, delivery 10,739
service, or telecommunication and the vendor delivers or ships 10,740
the tangible personal property sold to the consumer from a 10,741
warehouse, catalogue distribution center, or similar fulfillment 10,742
facility by means of the United States mail, delivery service, or 10,743
common carrier. 10,744
(38) Sales to a person engaged in the business of 10,746
251
horticulture or producing livestock of materials to be 10,747
incorporated into a horticulture structure or livestock 10,748
structure; 10,749
(39) The sale of a motor vehicle that is used exclusively 10,751
for a vanpool ridesharing arrangement to persons participating in 10,752
the vanpool ridesharing arrangement when the vendor is selling 10,753
the vehicle pursuant to a contract between the vendor and the 10,754
department of transportation;
(40) Sales of personal computers, computer monitors, 10,756
computer keyboards, modems, and other peripheral computer 10,757
equipment to an individual who is licensed or certified to teach 10,758
in an elementary or a secondary school in this state for use by 10,759
that individual in preparation for teaching elementary or
secondary school students; 10,760
(41) Sales to a professional racing team of any of the 10,762
following: 10,763
(a) Motor racing vehicles; 10,765
(b) Repair services for motor racing vehicles; 10,768
(c) Items of property that are attached to or incorporated 10,771
in motor racing vehicles, including engines, chassis, and all 10,772
other components of the vehicles, and all spare, replacement, and 10,773
rebuilt parts or components of the vehicles; except not including 10,774
tires, consumable fluids, paint, and accessories consisting of 10,775
instrumentation sensors and related items added to the vehicle to 10,776
collect and transmit data by means of telemetry and other forms 10,777
of communication.
(42) Sales of used manufactured homes and used mobile 10,779
homes, as defined in section 5739.0210 of the Revised Code, made 10,780
on or after January 1, 2000; 10,781
(43) SALES OF TANGIBLE PERSONAL PROPERTY AND SERVICES TO A 10,783
PROVIDER OF ELECTRICITY USED OR CONSUMED DIRECTLY AND PRIMARILY 10,784
IN GENERATING, TRANSMITTING, OR DISTRIBUTING ELECTRICITY FOR USE 10,785
BY OTHERS, INCLUDING PROPERTY THAT IS OR IS TO BE INCORPORATED 10,786
INTO AND WILL BECOME A PART OF THE CONSUMER'S PRODUCTION, 10,787
252
TRANSMISSION, OR DISTRIBUTION SYSTEM AND THAT RETAINS ITS 10,788
CLASSIFICATION AS TANGIBLE PERSONAL PROPERTY AFTER INCORPORATION; 10,789
FUEL OR POWER USED IN THE PRODUCTION, TRANSMISSION, OR 10,790
DISTRIBUTION OF ELECTRICITY; AND TANGIBLE PERSONAL PROPERTY AND 10,791
SERVICES USED IN THE REPAIR AND MAINTENANCE OF THE PRODUCTION, 10,792
TRANSMISSION, OR DISTRIBUTION SYSTEM, INCLUDING ONLY THOSE MOTOR 10,793
VEHICLES AS ARE SPECIALLY DESIGNED AND EQUIPPED FOR SUCH USE. 10,794
THE EXEMPTION PROVIDED IN THIS DIVISION SHALL BE IN LIEU OF ALL 10,795
OTHER EXCEPTIONS IN DIVISION (E)(2) OF SECTION 5739.01 OF THE 10,796
REVISED CODE TO WHICH A PROVIDER OF ELECTRICITY MAY OTHERWISE BE 10,798
ENTITLED BASED ON THE USE OF THE TANGIBLE PERSONAL PROPERTY OR 10,799
SERVICE PURCHASED IN GENERATING, TRANSMITTING, OR DISTRIBUTING 10,800
ELECTRICITY.
For the purpose of the proper administration of this 10,802
chapter, and to prevent the evasion of the tax, it is presumed 10,803
that all sales made in this state are subject to the tax until 10,804
the contrary is established. 10,805
As used in this section, except in division (B)(16) of this 10,807
section, "food" includes cereals and cereal products, milk and 10,808
milk products including ice cream, meat and meat products, fish 10,809
and fish products, eggs and egg products, vegetables and 10,810
vegetable products, fruits, fruit products, and pure fruit 10,811
juices, condiments, sugar and sugar products, coffee and coffee 10,812
substitutes, tea, and cocoa and cocoa products. It does not 10,813
include: spirituous or malt liquors; soft drinks; sodas and 10,814
beverages that are ordinarily dispensed at bars and soda 10,815
fountains or in connection therewith, other than coffee, tea, and 10,816
cocoa; root beer and root beer extracts; malt and malt extracts; 10,817
mineral oils, cod liver oils, and halibut liver oil; medicines, 10,818
including tonics, vitamin preparations, and other products sold 10,819
primarily for their medicinal properties; and water, including 10,820
mineral, bottled, and carbonated waters, and ice. 10,821
(C) The levy of an excise tax on transactions by which 10,823
lodging by a hotel is or is to be furnished to transient guests 10,824
253
pursuant to this section and division (B) of section 5739.01 of 10,825
the Revised Code does not prevent any of the following: 10,826
(1) A municipal corporation or township from levying an 10,828
excise tax for any lawful purpose not to exceed three per cent on 10,829
transactions by which lodging by a hotel is or is to be furnished 10,830
to transient guests in addition to the tax levied by this 10,831
section. If a municipal corporation or township repeals a tax 10,832
imposed under division (C)(1) of this section and a county in 10,833
which the municipal corporation or township has territory has a 10,834
tax imposed under division (C) of section 5739.024 of the Revised 10,835
Code in effect, the municipal corporation or township may not 10,836
reimpose its tax as long as that county tax remains in effect. A 10,837
municipal corporation or township in which a tax is levied under 10,838
division (B)(2) of section 351.021 of the Revised Code may not 10,839
increase the rate of its tax levied under division (C)(1) of this 10,840
section to any rate that would cause the total taxes levied under 10,841
both of those divisions to exceed three per cent on any lodging 10,842
transaction within the municipal corporation or township. 10,843
(2) A municipal corporation or a township from levying an 10,845
additional excise tax not to exceed three per cent on such 10,846
transactions pursuant to division (B) of section 5739.024 of the 10,847
Revised Code. Such tax is in addition to any tax imposed under 10,848
division (C)(1) of this section. 10,849
(3) A county from levying an excise tax pursuant to 10,851
division (A) of section 5739.024 of the Revised Code. 10,852
(4) A county from levying an excise tax not to exceed 10,854
three per cent of such transactions pursuant to division (C) of 10,855
section 5739.024 of the Revised Code. Such a tax is in addition 10,856
to any tax imposed under division (C)(3) of this section. 10,857
(5) A convention facilities authority, as defined in 10,859
division (A) of section 351.01 of the Revised Code, from levying 10,860
the excise taxes provided for in division (B) of section 351.021 10,861
of the Revised Code. 10,862
(6) A county from levying an excise tax not to exceed one 10,864
254
and one-half per cent of such transactions pursuant to division 10,865
(D) of section 5739.024 of the Revised Code. Such tax is in 10,866
addition to any tax imposed under division (C)(3) or (4) of this 10,867
section. 10,868
(7) A county from levying an excise tax not to exceed one 10,870
and one-half per cent of such transactions pursuant to division 10,871
(E) of section 5739.024 of the Revised Code. Such a tax is in 10,872
addition to any tax imposed under division (C)(3), (4), or (6) of 10,873
this section. cP1} (D) The levy of this tax on retail sales of 10,876
recreation and sports club service shall not prevent a municipal 10,877
corporation from levying any tax on recreation and sports club 10,878
dues or on any income generated by recreation and sports club 10,879
dues.
Section 2. That existing sections 113.061, 133.04, 10,881
715.013, 718.01, 1551.33, 1551.35, 3317.028, 4905.01, 4905.02, 10,883
4905.03, 4905.10, 4905.14, 4905.34, 4905.40, 4905.42, 4905.70, 10,884
4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 4911.18, 4933.33, 10,885
4933.81, 4935.04, 5117.01, 5117.02, 5117.03, 5117.04, 5117.05, 10,886
5117.07, 5117.08, 5117.09, 5117.10, 5117.12, 5701.03, 5703.052, 10,888
5703.053, 5703.14, 5705.34, 5727.01, 5727.02, 5727.05, 5727.06, 10,889
5727.11, 5727.111, 5727.15, 5727.30, 5727.31, 5727.311, 5727.32, 10,891
5727.33, 5727.38, 5727.42, 5727.45, 5727.47, 5727.53, 5727.60, 10,892
5727.61, 5727.72, 5727.99, 5733.04, 5733.05, 5733.06, 5733.09, 10,893
5733.98, 5739.011, and 5739.02 and sections 4905.301, 4905.66, 10,895
4905.67, 4905.68, 4905.69, 4909.157, 4909.158, 4909.159, 10,896
4909.191, 4909.192, 4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 10,897
4913.05, 4913.06, 4913.07, 4933.27, 4933.34, 5727.231, and 10,898
5727.73 of the Revised Code are hereby repealed.
Section 3. Sections 5727.111 and 5727.15 of the Revised 10,900
Code, as amended by this act, shall first apply to tax year 2001. 10,901
Section 4. Sections 4933.33, 5727.30, 5727.32, 5727.33, 10,903
and 5727.38 of the Revised Code, as amended by this act, shall 10,904
first apply to the excise tax assessed by the Tax Commissioner 10,905
for tax year 2002.
255
Section 5. Sections 1551.33, 1551.35, 4905.01, 4905.02, 10,907
4905.03, 4905.10, 4905.14, 4905.34, 4905.40, 4905.42, 4905.70, 10,908
4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 4935.04, and 10,909
5703.14 of the Revised Code, as amended by this act, shall take 10,910
effect on January 1, 2001, but if the Public Utilities Commission 10,911
issues an order under division (C) of section 4928.01 of the 10,912
Revised Code, as enacted by this act, the amendments to such 10,913
sections shall be applied accordingly. In addition, the 10,914
amendment of division (A)(4)(b) of section 4909.15 of the Revised 10,915
Code, as amended by this act, shall not be applied until January 10,916
1, 2002.
Section 6. Section 5727.45 of the Revised Code, as amended 10,918
by this act, shall take effect January 1, 2002. 10,919
Section 7. Sections 5117.01, 5117.02, 5117.03, 5117.04, 10,921
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, and 5117.12 of the 10,922
Revised Code, as amended by this act, shall take effect on July 10,924
1, 2000.
Section 8. Section 5727.391 of the Revised Code is hereby 10,927
repealed effective January 1, 2002.
Section 9. Sections 4905.301, 4905.66, 4905.67, 4905.68, 10,930
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 4909.192, 10,931
4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 4913.05, 4913.06, 10,932
4913.07, 4933.27, and 4933.34 of the Revised Code, as repealed by 10,933
this act, shall take effect on January 1, 2001, but if the Public 10,934
Utilities Commission issues an order under division (C) of 10,935
section 4928.01 of the Revised Code, as enacted by this act, the 10,936
repeal of such sections shall be applied accordingly. 10,937
Section 10. The Public Utilities Commission, Consumers' 10,939
Counsel, and the Attorney General shall develop a memorandum of 10,940
understanding not later than January 1, 2000, to establish a 10,941
system to respond effectively and efficiently to residential 10,942
consumer inquiries and complaints and shall provide a joint 10,943
report to the General Assembly on the efforts of the three 10,944
agencies not later than June 30, 2002. 10,945
256
Section 11. (A) As used in this section: 10,947
(1) "Electric company" and "rural electric company" have 10,949
the same meanings as in section 5727.01 of the Revised Code. 10,950
(2) "Gross receipts" means gross receipts determined in 10,952
accordance with section 5727.33 of the Revised Code. 10,953
(B) Each electric company and rural electric company shall 10,955
pay the public utility excise tax imposed by section 5727.30 of 10,956
the Revised Code on the company's gross receipts received during 10,957
the period of May 1, 2000, through May 1, 2001. Notwithstanding 10,959
section 5727.31 of the Revised Code, each electric company and 10,960
rural electric company shall make tax payments toward that 10,961
liability. The first payment must be made on or before October 10,962
15, 2000, and shall equal one-third of the estimated liability 10,963
shown in the report filed on or before August 1, 2000. The 10,964
second payment must be made on or before March 1, 2001, and shall 10,966
equal one-third of the tax assessed by the Tax Commissioner on or 10,967
before the first Monday in November, 2000. The last payment must 10,968
be made on or before June 1, 2001, and shall equal one-fourth of
the tax assessed by the commissioner. The final report for the 10,969
period of May 1, 2000, through May 1, 2001, shall be filed by an 10,970
electric company or a rural electric company on or before August 10,971
1, 2001, in accordance with division (A) of section 5727.31 and 10,972
section 5727.32 of the Revised Code. 10,973
On or before the first Monday of November 2001, the Tax 10,975
Commissioner shall assess an excise tax equal to four and 10,976
three-quarters per cent of the gross receipts received by 10,977
electric companies and rural electric companies during the period 10,979
of May 1, 2000, through May 1, 2001. Except as provided in 10,980
section 5727.03 of the Revised Code, as enacted by this act, 10,981
after payment of this assessment, electric companies and rural 10,982
electric companies are not subject to the excise tax imposed by 10,983
section 5727.30 of the Revised Code. 10,984
Section 12. Electric companies, as defined in section 10,986
5727.01 of the Revised Code, shall first be subject to the 10,987
257
corporation franchise tax under Chapter 5733. of the Revised Code 10,988
for tax year 2002, as "tax year" is defined in section 5733.04 of 10,989
the Revised Code. For tax year 2002, an electric company shall 10,990
pay two-thirds of its total corporation franchise tax liability 10,991
under Chapter 5733. of the Revised Code. The amendments in this 10,992
act to sections 4909.15, 5733.04, 5733.05, 5733.06, 5733.09, and 10,993
5733.98 of the Revised Code, and the enactment in this act of 10,994
section 5733.39 of the Revised Code, first apply for tax year 10,995
2002.
Section 13. An electric company that is entitled to carry 10,997
forward a credit against its public utility excise tax liability 10,998
under section 5727.391 of the Revised Code before the repeal of 10,999
that section under this act, is not entitled to carry forward any 11,000
amount remaining after its last public utility excise tax payment 11,001
and claim that amount as a credit against its corporation 11,002
franchise tax liability under section 5733.39 of the Revised 11,003
Code, as enacted by this act. The credit granted under section 11,004
5727.391 of the Revised Code only applies through the last 11,005
assessment issued by the Tax Commissioner under Section 11 of 11,006
this act.
Section 14. The tax levied under section 5727.81 of the 11,008
Revised Code first applies on and after May 1, 2001. Before that 11,009
date, any electric distribution company shall register with the 11,010
Tax Commissioner in accordance with section 5727.93 of the 11,011
Revised Code, as enacted by this act. 11,012
Section 15. Notwithstanding section 4933.81, as amended by 11,014
this act, sections 4933.82 to 4933.90 of the Revised Code, and 11,015
any provision of this act, the Public Utilities Commission by 11,016
order may establish a residential market pilot program prior to 11,017
the starting date of competitive retail electric service as 11,018
defined in section 4928.01 of the Revised Code, as enacted by 11,019
this act. The program shall enable the commission and the 11,020
General Assembly to make an initial evaluation of the effect of 11,021
competitive retail electric service on the residential market. 11,022
258
The program shall allow at least five per cent but not more than 11,023
fifteen per cent of the residential customers of electric 11,025
utilities in this state to select their electric generation 11,026
supplier. Every residential customer shall be eligible to 11,027
participate in a lottery or similar arrangement, as prescribed in 11,028
the order, for the final selection of customer participants. In
the order, the commission shall establish transition charges as 11,029
contemplated under sections 4928.31 to 4928.40 of the Revised 11,030
Code, as enacted by this act, to be in effect for the duration of 11,031
the program, with shopping incentives sufficient to allow for 11,032
market development during the program. The commission shall 11,033
report to the General Assembly not later than November 1, 2000, 11,034
its findings and recommendations about the program and the effect 11,035
of competitive retail electric service on the residential market. 11,036
Section 16. The intent of division (C) of section 5727.81 11,038
of the Revised Code, as enacted by this act, is to craft a 11,039
revenue neutral solution for all customer classes, with any 11,040
margin of error being resolved in favor of residential customers. 11,041
Section 17. Section 5727.47 of the Revised Code is 11,043
presented in this act as a composite of the section as amended by 11,044
both Am. Sub. H.B. 904 and Am. S.B. 358 of the 119th General 11,045
Assembly, with the new language of neither of the acts shown in 11,046
capital letters. This is in recognition of the principle stated 11,047
in division (B) of section 1.52 of the Revised Code that such 11,048
amendments are to be harmonized where not substantively 11,049
irreconcilable and constitutes a legislative finding that such is 11,050
the resulting version in effect prior to the effective date of 11,051
this act.
Section 18. If any provision of law that constitutes the 11,053
whole or part of a codified or uncodified section of law 11,054
contained in this act, or if any application of any provision of 11,055
law that constitutes the whole or part of a codified or 11,056
uncodified section of law contained in this act, is held invalid, 11,057
the invalidity does not affect other provisions of law or 11,058
259
applications of provisions of law that can be given effect 11,059
without the invalid provision of law or application. To this
end, the provisions of law of which the codified and uncodified 11,060
sections contained in this act are composed, and their 11,061
applications, are independent and severable. 11,062