As Passed by the Senate 1
123rd General Assembly 4
Regular Session Am. Sub. S. B. No. 3 5
1999-2000 6
SENATORS JOHNSON-FINAN-BLESSING-HERINGTON-ARMBRUSTER-HOTTINGER- 8
SPADA-WACHTMANN-MUMPER-GARDNER-KEARNS 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 4928.44, 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, 4928.51, 4928.52, 4928.53, 4928.54, 61
4928.55, 4928.56, 4928.57, 4928.58, 4928.61, 4928.62, 4928.63, 62
5727.03, 5727.80, 5727.81, 5727.82, 5727.83, 5727.84, 5727.85, 64
5727.86, 5727.87, 5727.88, 5727.89, 5727.90, 5727.91, 5727.92, 65
5727.93, 5727.94, 5727.95, and 5733.39 of the Revised Code be 67
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) "BILLING AND COLLECTION AGENT" MEANS A FULLY 1,985
INDEPENDENT AGENT, NOT AFFILIATED WITH OR OTHERWISE CONTROLLED BY 1,986
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 1,987
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 1,988
UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE EXTENT THAT THE 1,989
AGENT IS UNDER CONTRACT WITH SUCH UTILITY, COMPANY, COOPERATIVE,
OR AGGREGATOR SOLELY TO PROVIDE BILLING AND COLLECTION FOR RETAIL 1,991
ELECTRIC SERVICE ON BEHALF OF THE UTILITY COMPANY, COOPERATIVE, 1,992
OR AGGREGATOR.
(3) "CERTIFIED TERRITORY" MEANS THE CERTIFIED TERRITORY 1,994
ESTABLISHED FOR AN ELECTRIC SUPPLIER UNDER SECTIONS 4933.81 TO 1,995
4933.90 OF THE REVISED CODE AS AMENDED BY SUB. S.B. NO. 3 OF THE 1,997
123rd GENERAL ASSEMBLY. 1,998
(4) "COMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,000
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS COMPETITIVE AS 2,001
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,002
(5) "ELECTRIC COOPERATIVE" MEANS A NOT-FOR-PROFIT ELECTRIC 2,004
LIGHT COMPANY THAT BOTH IS OR HAS BEEN FINANCED IN WHOLE OR IN 2,005
PART UNDER THE "RURAL ELECTRIFICATION ACT OF 1936," 49 STAT. 2,009
1363, 7 U.S.C. 901 AND OWNS OR OPERATES FACILITIES IN THIS STATE 2,011
TO GENERATE, TRANSMIT, OR DISTRIBUTE ELECTRICITY, OR A SUCCESSOR 2,012
OF SUCH COMPANY.
(6) "ELECTRIC DISTRIBUTION UTILITY" MEANS AN ELECTRIC 2,014
UTILITY THAT SUPPLIES AT LEAST RETAIL ELECTRIC DISTRIBUTION 2,015
SERVICE.
(7) "ELECTRIC LIGHT COMPANY" HAS THE SAME MEANING AS IN 2,017
SECTION 4905.03 OF THE REVISED CODE AND INCLUDES AN ELECTRIC 2,018
SERVICES COMPANY. 2,019
(8) "ELECTRIC LOAD CENTER" HAS THE SAME MEANING AS IN 2,021
SECTION 4933.81 OF THE REVISED CODE. 2,022
(9) "ELECTRIC SERVICES COMPANY" MEANS AN ELECTRIC LIGHT 2,024
COMPANY THAT IS ENGAGED ON A FOR-PROFIT OR NOT-FOR-PROFIT BASIS 2,025
IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE SUPPLY OF ONLY 2,026
A COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,028
48
SERVICES COMPANY" INCLUDES A POWER MARKETER, POWER BROKER, 2,029
AGGREGATOR, OR INDEPENDENT POWER PRODUCER BUT EXCLUDES AN 2,030
ELECTRIC COOPERATIVE, MUNICIPAL ELECTRIC UTILITY, GOVERNMENTAL 2,032
AGGREGATOR, OR BILLING AND COLLECTION AGENT.
(10) "ELECTRIC SUPPLIER" HAS THE SAME MEANING AS IN 2,034
SECTION 4933.81 OF THE REVISED CODE. 2,035
(11) "ELECTRIC UTILITY" MEANS AN ELECTRIC LIGHT COMPANY 2,037
THAT IS ENGAGED ON A FOR-PROFIT BASIS IN THE BUSINESS OF 2,040
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE
OR IN THE BUSINESSES OF SUPPLYING BOTH A NONCOMPETITIVE AND A 2,042
COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,043
UTILITY" EXCLUDES MUNICIPAL ELECTRIC UTILITY OR A BILLING AND 2,045
COLLECTION AGENT.
(12) "FIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE OTHER 2,048
THAN NONFIRM ELECTRIC SERVICE.
(13) "GOVERNMENTAL AGGREGATOR" MEANS A LEGISLATIVE 2,050
AUTHORITY OF A MUNICIPAL CORPORATION, A BOARD OF TOWNSHIP 2,051
TRUSTEES, OR A BOARD OF COUNTY COMMISSIONERS ACTING AS AN 2,052
AGGREGATOR FOR THE PROVISION OF A COMPETITIVE RETAIL ELECTRIC 2,053
SERVICE UNDER AUTHORITY CONFERRED UNDER SECTION 4928.20 OF THE 2,055
REVISED CODE.
(14) A PERSON ACTS "KNOWINGLY," REGARDLESS OF THE PERSON'S 2,057
PURPOSE, WHEN THE PERSON IS AWARE THAT THE PERSON'S CONDUCT WILL 2,058
PROBABLY CAUSE A CERTAIN RESULT OR WILL PROBABLY BE OF A CERTAIN 2,059
NATURE. A PERSON HAS KNOWLEDGE OF CIRCUMSTANCES WHEN THE PERSON 2,060
IS AWARE THAT SUCH CIRCUMSTANCES PROBABLY EXIST. 2,061
(15) "LEVEL OF FUNDING FOR LOW-INCOME CUSTOMER ENERGY 2,063
EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC UTILITY RATES" 2,064
MEANS THE LEVEL OF FUNDS COMMITTED BY AN ELECTRIC UTILITY 2,065
PURSUANT TO AN ORDER OF THE PUBLIC UTILITIES COMMISSION ISSUED 2,066
UNDER CHAPTER 4905. OR 4909. OF THE REVISED CODE AND IN EFFECT ON 2,067
THE DAY BEFORE THE EFFECTIVE DATE OF THIS SECTION, FOR THE 2,069
PURPOSE OF IMPROVING THE ENERGY EFFICIENCY OF HOUSING FOR THE 2,070
UTILITY'S LOW-INCOME CUSTOMERS. THE TERM EXCLUDES THE LEVEL OF 2,071
49
ANY SUCH FUNDS COMMITTED TO A SPECIFIC NONPROFIT ORGANIZATION OR 2,072
ORGANIZATIONS PURSUANT TO A STIPULATION OR CONTRACT. 2,073
(16) "LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS" MEANS THE 2,075
PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM AS PRESCRIBED IN RULES 2,076
4901:1-18-02(B) TO (G) AND 4901:1-18-04(B) OF THE OHIO 2,078
ADMINISTRATIVE CODE IN EFFECT ON THE EFFECTIVE DATE OF THIS 2,079
SECTION OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER SECTION 2,081
4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; THE HOME 2,082
ENERGY ASSISTANCE PROGRAM AS PRESCRIBED IN SECTION 5117.21 OF THE 2,083
REVISED CODE AND IN EXECUTIVE ORDER 97-1023-V OR, IF MODIFIED 2,084
PURSUANT TO AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, 2,085
THE PROGRAM AS MODIFIED; THE HOME WEATHERIZATION ASSISTANCE 2,087
PROGRAM AS PRESCRIBED IN DIVISION (A)(6) OF SECTION 122.011 AND 2,088
IN SECTION 122.02 OF THE REVISED CODE OR, IF MODIFIED PURSUANT TO 2,090
AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM
AS MODIFIED; THE OHIO ENERGY CREDIT PROGRAM AS PRESCRIBED IN 2,091
SECTIONS 5117.01 TO 5117.05, 5117.07 TO 5117.12, AND 5117.99 OF 2,092
THE REVISED CODE OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER 2,093
SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; AND 2,094
THE TARGETED ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM 2,095
ESTABLISHED UNDER SECTION 4928.55 OF THE REVISED CODE. 2,096
(17) "MARKET DEVELOPMENT PERIOD" FOR AN ELECTRIC UTILITY 2,098
MEANS THE PERIOD OF TIME BEGINNING ON THE STARTING DATE OF 2,099
COMPETITIVE RETAIL ELECTRIC SERVICE AND ENDING ON THE APPLICABLE 2,100
DATE FOR THAT UTILITY AS SPECIFIED IN SECTION 4928.40 OF THE 2,101
REVISED CODE, IRRESPECTIVE OF WHETHER THE UTILITY APPLIES TO 2,102
RECEIVE TRANSITION REVENUES UNDER THIS CHAPTER. 2,103
(18) "MARKET POWER" MEANS THE ABILITY TO IMPOSE ON 2,105
CUSTOMERS A SUSTAINED PRICE FOR A PRODUCT OR SERVICE ABOVE THE 2,106
PRICE THAT WOULD PREVAIL IN A COMPETITIVE MARKET. 2,107
(19) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 2,109
CORPORATION THAT OWNS OR OPERATES FACILITIES TO GENERATE, 2,110
TRANSMIT, OR DISTRIBUTE ELECTRICITY. 2,111
(20) "NONCOMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,113
50
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS NONCOMPETITIVE AS 2,114
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,115
(21) "NONFIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE 2,118
PROVIDED PURSUANT TO A SCHEDULE FILED UNDER SECTION 4905.30 OF 2,119
THE REVISED CODE OR PURSUANT TO AN ARRANGEMENT UNDER SECTION 2,120
4905.31 OF THE REVISED CODE, WHICH SCHEDULE OR ARRANGEMENT 2,122
INCLUDES CONDITIONS THAT MAY REQUIRE THE CUSTOMER TO CURTAIL OR 2,123
INTERRUPT ELECTRIC USAGE DURING NONEMERGENCY CIRCUMSTANCES UPON
NOTIFICATION BY AN ELECTRIC UTILITY. 2,124
(22) "PERSON" HAS THE SAME MEANING AS IN SECTION 1.59 OF 2,126
THE REVISED CODE. 2,128
(23) "PROJECT" MEANS ANY REAL OR PERSONAL PROPERTY 2,130
CONNECTED WITH ALL OR PART OF AN INDUSTRIAL, DISTRIBUTION, 2,131
COMMERCIAL, OR RESEARCH FACILITY, NOT-FOR-PROFIT FACILITY, OR 2,132
RESIDENCE THAT IS TO BE ACQUIRED, CONSTRUCTED, RECONSTRUCTED, 2,133
ENLARGED, IMPROVED, FURNISHED, OR EQUIPPED, OR ANY COMBINATION OF 2,134
THOSE ACTIVITIES, WITH AID FURNISHED PURSUANT TO SECTIONS 4928.61 2,135
TO 4928.63 OF THE REVISED CODE FOR THE PURPOSES OF 2,137
NOT-FOR-PROFIT, INDUSTRIAL, COMMERCIAL, DISTRIBUTION,
RESIDENTIAL, AND RESEARCH DEVELOPMENT IN THIS STATE. "PROJECT" 2,139
INCLUDES, BUT IS NOT LIMITED TO, ANY SMALL-SCALE RENEWABLES 2,140
PROJECT.
(24) "REGULATORY ASSETS" MEANS THE UNAMORTIZED NET 2,143
REGULATORY ASSETS THAT ARE CAPITALIZED OR DEFERRED ON THE 2,144
REGULATORY BOOKS OF THE ELECTRIC UTILITY, PURSUANT TO AN ORDER OR 2,145
PRACTICE OF THE PUBLIC UTILITIES COMMISSION OR PURSUANT TO 2,146
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS A RESULT OF A PRIOR
COMMISSION RATE-MAKING DECISION, AND THAT WOULD OTHERWISE HAVE 2,147
BEEN CHARGED TO EXPENSE AS INCURRED OR WOULD NOT HAVE BEEN 2,148
CAPITALIZED OR OTHERWISE DEFERRED FOR FUTURE REGULATORY 2,149
CONSIDERATION ABSENT COMMISSION ACTION. "REGULATORY ASSETS" 2,150
INCLUDES, BUT IS NOT LIMITED TO, ALL DEFERRED DEMAND-SIDE 2,151
MANAGEMENT COSTS; ALL DEFERRED PERCENTAGE OF INCOME PAYMENT PLAN 2,152
AMOUNTS; POST-IN-SERVICE CAPITALIZED CHARGES AND ASSETS 2,153
51
RECOGNIZED IN CONNECTION WITH STATEMENT OF FINANCIAL ACCOUNTING 2,154
STANDARDS NO. 109 (RECEIVABLES FROM CUSTOMERS FOR INCOME TAXES); 2,155
FUTURE NUCLEAR DECOMMISSIONING COSTS AND FUEL DISPOSAL COSTS AS 2,156
THOSE COSTS HAVE BEEN DETERMINED BY THE COMMISSION IN THE 2,157
ELECTRIC UTILITY'S MOST RECENT RATE OR ACCOUNTING APPLICATION 2,158
PROCEEDING ADDRESSING SUCH COSTS; THE UNDERPRECIATED COSTS OF 2,159
SAFETY AND RADIATION CONTROL EQUIPMENT ON NUCLEAR GENERATING 2,160
PLANTS OWNED OR LEASED BY AN ELECTRIC UTILITY; AND FUEL COSTS 2,161
CURRENTLY DEFERRED PURSUANT TO THE TERMS OF ONE OR MORE 2,162
SETTLEMENT AGREEMENTS APPROVED BY THE COMMISSION. 2,163
(25) "RETAIL ELECTRIC SERVICE" MEANS ANY SERVICE INVOLVED 2,165
IN SUPPLYING OR ARRANGING FOR THE SUPPLY OF ELECTRICITY TO 2,166
ULTIMATE CONSUMERS IN THIS STATE, FROM THE POINT OF GENERATION TO 2,167
THE POINT OF CONSUMPTION. FOR THE PURPOSES OF THIS CHAPTER, 2,168
RETAIL ELECTRIC SERVICE INCLUDES ONE OR MORE OF THE FOLLOWING 2,169
"SERVICE COMPONENTS": GENERATION SERVICE, AGGREGATION SERVICE, 2,170
POWER MARKETING SERVICE, POWER BROKERAGE SERVICE, TRANSMISSION 2,171
SERVICE, DISTRIBUTION SERVICE, ANCILLARY SERVICE, METERING 2,172
SERVICE, AND BILLING AND COLLECTION SERVICE. 2,173
(26) "STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,175
SERVICE" MEANS JANUARY 1, 2001, EXCEPT AS PROVIDED IN DIVISION 2,176
(C) OF THIS SECTION. 2,178
(B) FOR THE PURPOSES OF THIS CHAPTER, A RETAIL ELECTRIC 2,180
SERVICE COMPONENT SHALL BE DEEMED A COMPETITIVE RETAIL ELECTRIC 2,181
SERVICE IF THE SERVICE COMPONENT IS COMPETITIVE PURSUANT TO A 2,183
DECLARATION BY A PROVISION OF THE REVISED CODE OR PURSUANT TO AN 2,184
ORDER OF THE PUBLIC UTILITIES COMMISSION AUTHORIZED UNDER
DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE. OTHERWISE, 2,187
THE SERVICE COMPONENT SHALL BE DEEMED A NONCOMPETITIVE RETAIL 2,188
ELECTRIC SERVICE.
(C) PRIOR TO JANUARY 1, 2001, THE PUBLIC UTILITIES 2,190
COMMISSION MAY ISSUE AN ORDER DELAYING THE JANUARY 1, 2001, 2,192
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE BY A 2,193
SPECIFIED NUMBER OF DAYS NOT TO EXCEED SIX MONTHS, BUT ONLY FOR 2,194
52
EXTREME TECHNICAL CONDITIONS PRECLUDING THE START OF COMPETITIVE 2,196
RETAIL ELECTRIC SERVICE ON JANUARY 1, 2001. 2,197
Sec. 4928.02. IT IS THE POLICY OF THIS STATE TO DO THE 2,199
FOLLOWING THROUGHOUT THIS STATE BEGINNING ON THE STARTING DATE OF 2,200
COMPETITIVE RETAIL ELECTRIC SERVICE: 2,201
(A) ENSURE THE AVAILABILITY TO CONSUMERS OF ADEQUATE, 2,203
RELIABLE, SAFE, EFFICIENT, NONDISCRIMINATORY, AND REASONABLY 2,204
PRICED RETAIL ELECTRIC SERVICE; 2,205
(B) ENSURE THE AVAILABILITY OF UNBUNDLED AND COMPARABLE 2,207
RETAIL ELECTRIC SERVICE THAT PROVIDES CONSUMERS WITH THE 2,208
SUPPLIER, PRICE, TERMS, CONDITIONS, AND QUALITY OPTIONS THEY 2,210
ELECT TO MEET THEIR RESPECTIVE NEEDS;
(C) ENSURE DIVERSITY OF ELECTRICITY SUPPLIES AND 2,212
SUPPLIERS, BY GIVING CONSUMERS EFFECTIVE CHOICES OVER THE 2,213
SELECTION OF THOSE SUPPLIES AND SUPPLIERS AND BY ENCOURAGING THE 2,214
DEVELOPMENT OF DISTRIBUTED AND SMALL GENERATION FACILITIES; 2,215
(D) ENCOURAGE INNOVATION AND MARKET ACCESS FOR 2,217
COST-EFFECTIVE SUPPLY- AND DEMAND-SIDE RETAIL ELECTRIC SERVICE; 2,218
(E) ENCOURAGE COST-EFFECTIVE AND EFFICIENT ACCESS TO 2,220
INFORMATION REGARDING THE OPERATION OF THE TRANSMISSION AND 2,221
DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES IN ORDER TO PROMOTE 2,223
EFFECTIVE CUSTOMER CHOICE OF RETAIL ELECTRIC SERVICE;
(F) RECOGNIZE THE CONTINUING EMERGENCE OF COMPETITIVE 2,225
ELECTRICITY MARKETS THROUGH THE DEVELOPMENT AND IMPLEMENTATION OF 2,226
FLEXIBLE REGULATORY TREATMENT; 2,227
(G) ENSURE EFFECTIVE COMPETITION IN THE PROVISION OF 2,229
RETAIL ELECTRIC SERVICE BY AVOIDING ANTICOMPETITIVE SUBSIDIES 2,230
FLOWING FROM A NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO A 2,232
COMPETITIVE RETAIL ELECTRIC SERVICE OR TO A PRODUCT OR SERVICE 2,233
OTHER THAN RETAIL ELECTRIC SERVICE, AND VICE VERSA;
(H) ENSURE RETAIL ELECTRIC SERVICE CONSUMERS PROTECTION 2,235
AGAINST UNREASONABLE SALES PRACTICES, MARKET DEFICIENCIES, AND 2,236
MARKET POWER; 2,237
(I) FACILITATE THE STATE'S EFFECTIVENESS IN THE GLOBAL 2,239
53
ECONOMY. 2,240
Sec. 4928.03. BEGINNING ON THE STARTING DATE OF 2,242
COMPETITIVE RETAIL ELECTRIC SERVICE, RETAIL ELECTRIC GENERATION, 2,243
AGGREGATION, POWER MARKETING, AND POWER BROKERAGE SERVICES 2,244
SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED TERRITORY OF AN 2,245
ELECTRIC UTILITY ARE COMPETITIVE RETAIL ELECTRIC SERVICES THAT 2,246
THE CONSUMERS MAY OBTAIN SUBJECT TO THIS CHAPTER FROM ANY 2,247
SUPPLIER OR SUPPLIERS. IN ACCORDANCE WITH A FILING UNDER 2,248
DIVISION (F) OF SECTION 4933.81 OF THE REVISED CODE, RETAIL 2,249
ELECTRIC GENERATION, AGGREGATION, POWER MARKETING, OR POWER 2,250
BROKERAGE SERVICES SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,251
TERRITORY OF AN ELECTRIC COOPERATIVE THAT HAS MADE THE FILING ARE 2,252
COMPETITIVE RETAIL ELECTRIC SERVICES THAT THE CONSUMERS MAY 2,254
OBTAIN SUBJECT TO THIS CHAPTER FROM ANY SUPPLIER OR SUPPLIERS. 2,255
BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 2,257
ELECTRIC SERVICE AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 2,258
EACH CONSUMER IN THIS STATE AND THE SUPPLIERS TO A CONSUMER SHALL 2,259
HAVE COMPARABLE AND NONDISCRIMINATORY ACCESS TO NONCOMPETITIVE 2,260
RETAIL ELECTRIC SERVICES OF AN ELECTRIC UTILITY IN THIS STATE 2,261
WITHIN ITS CERTIFIED TERRITORY FOR THE PURPOSE OF SATISFYING THE 2,263
CONSUMER'S ELECTRICITY REQUIREMENTS IN KEEPING WITH THE POLICY 2,264
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE. 2,266
Sec. 4928.04. (A) THE PUBLIC UTILITIES COMMISSION BY 2,268
ORDER MAY DECLARE THAT RETAIL ANCILLARY, METERING, OR BILLING AND 2,269
COLLECTION SERVICE SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,271
TERRITORY OF AN ELECTRIC UTILITY ON OR AFTER THE STARTING DATE OF 2,272
COMPETITIVE RETAIL ELECTRIC SERVICE IS A COMPETITIVE RETAIL 2,273
ELECTRIC SERVICE THAT THE CONSUMERS MAY OBTAIN FROM ANY SUPPLIER 2,274
OR SUPPLIERS SUBJECT TO THIS CHAPTER. THE COMMISSION MAY ISSUE 2,275
SUCH ORDER, AFTER INVESTIGATION AND PUBLIC HEARING, ONLY IF IT 2,276
FIRST DETERMINES EITHER OF THE FOLLOWING: 2,277
(1) THERE WILL BE EFFECTIVE COMPETITION WITH RESPECT TO 2,279
THE SERVICE. 2,280
(2) THE CUSTOMERS OF THE SERVICE HAVE REASONABLY AVAILABLE 2,282
54
ALTERNATIVES. 2,283
THE COMMISSION SHALL INITIATE A PROCEEDING ON OR BEFORE 2,285
MARCH 31, 2003, ON THE QUESTION OF THE DESIRABILITY, FEASIBILITY, 2,286
AND TIMING OF ANY SUCH COMPETITION. 2,287
(B) IN CARRYING OUT DIVISION (A) OF THIS SECTION, THE 2,289
COMMISSION MAY PRESCRIBE DIFFERENT CLASSIFICATIONS, PROCEDURES, 2,290
TERMS, OR CONDITIONS FOR DIFFERENT ELECTRIC UTILITIES AND FOR THE
RETAIL ELECTRIC SERVICES THEY PROVIDE THAT ARE DECLARED 2,291
COMPETITIVE PURSUANT TO THAT DIVISION, PROVIDED THE 2,292
CLASSIFICATIONS, PROCEDURES, TERMS, OR CONDITIONS ARE REASONABLE 2,293
AND DO NOT CONFER ANY UNDUE ECONOMIC, COMPETITIVE, OR MARKET 2,294
ADVANTAGE OR PREFERENCE UPON ANY ELECTRIC UTILITY. 2,295
Sec. 4928.05. (A)(1) ON AND AFTER THE STARTING DATE OF 2,297
COMPETITIVE RETAIL ELECTRIC SERVICE, A COMPETITIVE RETAIL 2,299
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC UTILITY SHALL NOT BE 2,300
SUBJECT TO SUPERVISION AND REGULATION BY THE PUBLIC UTILITIES 2,301
COMMISSION UNDER CHAPTERS 4901. TO 4909., 4933., 4935., OR 4963. 2,302
OF THE REVISED CODE, EXCEPT SECTIONS 4905.10, 4905.33, 4905.35, 2,304
AND 4933.81 TO 4933.90; EXCEPT SECTIONS 4905.06, 4935.03,
4963.40, AND 4963.41 OF THE REVISED CODE REGARDING SERVICE 2,306
RELIABILITY AND PUBLIC SAFETY; AND EXCEPT AS OTHERWISE PROVIDED 2,307
IN THIS CHAPTER. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,308
EXCEPTED PROVISIONS WITH RESPECT TO A COMPETITIVE RETAIL ELECTRIC 2,309
SERVICE SHALL BE SUCH AUTHORITY AS IS PROVIDED FOR THEIR 2,310
ENFORCEMENT UNDER CHAPTERS 4901. TO 4909., 4933., 4935., AND 2,311
4963. OF THE REVISED CODE AND THIS CHAPTER.
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,313
ELECTRIC SERVICE, A COMPETITIVE RETAIL ELECTRIC SERVICE SUPPLIED 2,314
BY AN ELECTRIC COOPERATIVE SHALL NOT BE SUBJECT TO SUPERVISION 2,315
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,316
4933., 4935., OR 4963. OF THE REVISED CODE, EXCEPT AS OTHERWISE 2,317
EXPRESSLY PROVIDED IN SECTIONS 4928.01 TO 4928.10 AND 4928.16 OF 2,318
THE REVISED CODE.
(2) ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,320
55
ELECTRIC SERVICE, A NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,321
SUPPLIED BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SUPERVISION 2,322
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,323
4933., 4935., AND 4963. OF THE REVISED CODE AND THIS CHAPTER, TO 2,324
THE EXTENT THAT AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE 2,326
COMMISSION'S AUTHORITY TO ENFORCE THOSE PROVISIONS WITH RESPECT 2,327
TO A NONCOMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE THE 2,328
AUTHORITY PROVIDED UNDER THOSE CHAPTERS AND THIS CHAPTER, TO THE 2,329
EXTENT THE AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. 2,330
THE COMMISSION SHALL EXERCISE ITS JURISDICTION WITH RESPECT 2,332
TO THE DELIVERY OF ELECTRICITY BY AN ELECTRIC UTILITY IN THIS 2,333
STATE ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,334
ELECTRIC SERVICE SO AS TO ENSURE THAT NO ASPECT OF THE DELIVERY 2,335
OF ELECTRICITY BY THE UTILITY TO CONSUMERS IN THIS STATE THAT 2,336
CONSISTS OF A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IS 2,337
UNREGULATED.
ON AND AFTER THAT STARTING DATE, A NONCOMPETITIVE RETAIL 2,339
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC COOPERATIVE SHALL NOT BE 2,341
SUBJECT TO SUPERVISION AND REGULATION BY THE COMMISSION UNDER 2,342
CHAPTERS 4901. TO 4909., 4933., 4935., AND 4963. OF THE REVISED 2,343
CODE, EXCEPT SECTIONS 4933.81 TO 4933.90 AND 4935.03 OF THE
REVISED CODE. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,344
EXCEPTED SECTIONS WITH RESPECT TO A NONCOMPETITIVE RETAIL 2,345
ELECTRIC SERVICE OF AN ELECTRIC COOPERATIVE SHALL BE SUCH
AUTHORITY AS IS PROVIDED FOR THEIR ENFORCEMENT UNDER CHAPTERS 2,346
4933. AND 4935. OF THE REVISED CODE. 2,347
(B) NOTHING IN THIS CHAPTER AFFECTS THE AUTHORITY OF THE 2,349
COMMISSION UNDER TITLE XLIX OF THE REVISED CODE TO REGULATE AN 2,350
ELECTRIC LIGHT COMPANY IN THIS STATE OR AN ELECTRIC SERVICE 2,351
SUPPLIED IN THIS STATE PRIOR TO THE STARTING DATE OF COMPETITIVE 2,352
RETAIL ELECTRIC SERVICE. 2,353
Sec. 4928.06. (A) BEGINNING ON THE STARTING DATE OF 2,355
COMPETITIVE RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES 2,356
COMMISSION SHALL ENSURE THAT THE POLICY SPECIFIED IN SECTION 2,358
56
4928.02 OF THE REVISED CODE IS EFFECTUATED. TO THE EXTENT 2,360
NECESSARY, THE COMMISSION SHALL ADOPT RULES TO CARRY OUT THIS 2,361
CHAPTER. INITIAL RULES NECESSARY FOR THE COMMENCEMENT OF THE 2,362
COMPETITIVE RETAIL ELECTRIC SERVICE UNDER THIS CHAPTER SHALL BE 2,363
ADOPTED WITHIN ONE HUNDRED EIGHTY DAYS AFTER THE EFFECTIVE DATE 2,364
OF THIS SECTION. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, 2,365
THE PROCEEDINGS AND ORDERS OF THE COMMISSION UNDER THE CHAPTER 2,366
SHALL BE SUBJECT TO AND GOVERNED BY CHAPTER 4903. OF THE REVISED 2,367
CODE. 2,368
(B) IF THE COMMISSION DETERMINES, ON OR AFTER THE STARTING 2,371
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, THAT THERE IS A 2,372
DECLINE OR LOSS OF EFFECTIVE COMPETITION WITH RESPECT TO A 2,373
COMPETITIVE RETAIL ELECTRIC SERVICE OF AN ELECTRIC UTILITY, WHICH 2,374
SERVICE WAS DECLARED COMPETITIVE BY COMMISSION ORDER ISSUED 2,376
PURSUANT TO DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE, 2,377
THE COMMISSION SHALL ENSURE THAT THAT SERVICE IS PROVIDED AT 2,378
COMPENSATORY, FAIR, AND NONDISCRIMINATORY PRICES AND TERMS AND 2,379
CONDITIONS.
(C) IN ADDITION TO ITS AUTHORITY UNDER SECTION 4928.04 OF 2,381
THE REVISED CODE AND DIVISIONS (A) AND (B) OF THIS SECTION, THE 2,383
COMMISSION, ON AN ONGOING BASIS, SHALL MONITOR AND EVALUATE THE 2,384
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE FOR THE 2,385
PURPOSE OF DISCERNING ANY NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,386
THAT SHOULD BE AVAILABLE ON A COMPETITIVE BASIS ON OR AFTER THE 2,387
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE PURSUANT TO 2,388
A DECLARATION IN THE REVISED CODE, AND FOR THE PURPOSE OF 2,389
DISCERNING ANY COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS NO 2,391
LONGER SUBJECT TO EFFECTIVE COMPETITION ON OR AFTER THAT DATE. 2,392
UPON SUCH EVALUATION, THE COMMISSION PERIODICALLY SHALL REPORT 2,393
ITS FINDINGS AND ANY RECOMMENDATIONS FOR LEGISLATION TO THE 2,394
STANDING COMMITTEES OF BOTH HOUSES OF THE GENERAL ASSEMBLY THAT 2,395
HAVE PRIMARY JURISDICTION REGARDING PUBLIC UTILITY LEGISLATION. 2,396
UNTIL 2008, THE COMMISSION AND THE CONSUMER'S COUNSEL ALSO SHALL 2,397
PROVIDE BIENNIAL REPORTS TO THOSE STANDING COMMITTEES, REGARDING 2,398
57
THE EFFECTIVENESS OF COMPETITION IN THE SUPPLY OF COMPETITIVE 2,399
RETAIL ELECTRIC SERVICES IN THIS STATE. IN ADDITION, UNTIL THE 2,401
END OF ALL MARKET DEVELOPMENT PERIODS AS DETERMINED OR EXTENDED 2,402
BY THE COMMISSION UNDER SECTION 4928.40 OF THE REVISED CODE,
THOSE STANDING COMMITTEES SHALL MEET AT LEAST BIENNIALLY TO 2,403
CONSIDER THE EFFECT ON THIS STATE OF ELECTRIC SERVICE 2,404
RESTRUCTURING AND TO RECEIVE REPORTS FROM THE COMMISSION, 2,405
CONSUMERS' COUNSEL, AND DIRECTOR OF DEVELOPMENT. 2,406
(D) IN DETERMINING, FOR PURPOSES OF DIVISION (B) OR (C) OF 2,409
THIS SECTION, WHETHER THERE IS EFFECTIVE COMPETITION IN THE 2,410
PROVISION OF A RETAIL ELECTRIC SERVICE OR REASONABLY AVAILABLE 2,412
ALTERNATIVES FOR THAT SERVICE, THE COMMISSION SHALL CONSIDER 2,413
FACTORS INCLUDING, BUT NOT LIMITED TO, ALL OF THE FOLLOWING: 2,414
(1) THE NUMBER AND SIZE OF ALTERNATIVE PROVIDERS OF THAT 2,416
SERVICE;
(2) THE EXTENT TO WHICH THE SERVICE IS AVAILABLE FROM 2,418
ALTERNATIVE SUPPLIERS IN THE RELEVANT MARKET; 2,419
(3) THE ABILITY OF ALTERNATIVE SUPPLIERS TO MAKE 2,421
FUNCTIONALLY EQUIVALENT OR SUBSTITUTE SERVICES READILY AVAILABLE 2,422
AT COMPETITIVE PRICES, TERMS, AND CONDITIONS; 2,423
(4) OTHER INDICATORS OF MARKET POWER, WHICH MAY INCLUDE 2,425
MARKET SHARE, GROWTH IN MARKET SHARE, EASE OF ENTRY, AND THE 2,426
AFFILIATION OF SUPPLIERS OF SERVICES. 2,427
THE BURDEN OF PROOF SHALL BE ON ANY ENTITY REQUESTING, 2,429
UNDER DIVISION (B) OR (C) OF THIS SECTION, A DETERMINATION BY THE 2,430
COMMISSION OF THE EXISTENCE OF OR A LACK OF EFFECTIVE COMPETITION 2,431
OR REASONABLY AVAILABLE ALTERNATIVES. 2,432
(E)(1) BEGINNING ON THE STARTING DATE OF COMPETITIVE 2,434
RETAIL ELECTRIC SERVICE, THE COMMISSION HAS AUTHORITY UNDER 2,435
CHAPTERS 4901. TO 4909. OF THE REVISED CODE, AND SHALL EXERCISE 2,436
THAT AUTHORITY, TO RESOLVE ABUSES OF MARKET POWER BY ANY ELECTRIC 2,437
UTILITY THAT INTERFERE WITH EFFECTIVE COMPETITION IN THE 2,438
PROVISION OF RETAIL ELECTRIC SERVICE. 2,439
(2) IN ADDITION TO THE COMMISSION'S AUTHORITY UNDER 2,441
58
DIVISION (E)(1) OF THIS SECTION, THE COMMISSION, BEGINNING THE 2,443
FIRST YEAR AFTER THE MARKET DEVELOPMENT PERIOD OF A PARTICULAR 2,444
ELECTRIC UTILITY AND AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,445
HEARING, MAY TAKE SUCH MEASURES WITHIN A TRANSMISSION CONSTRAINED 2,446
AREA IN THE UTILITY'S CERTIFIED TERRITORY AS ARE NECESSARY TO 2,447
ENSURE THAT RETAIL ELECTRIC GENERATION SERVICE IS PROVIDED AT 2,448
REASONABLE RATES WITHIN THAT AREA. THE COMMISSION MAY EXERCISE 2,449
THIS AUTHORITY ONLY UPON FINDINGS THAT AN ELECTRIC UTILITY IS OR 2,450
HAS ENGAGED IN THE ABUSE OF MARKET POWER AND THAT THAT ABUSE IS 2,451
NOT ADEQUATELY MITIGATED BY RULES AND PRACTICES OF ANY 2,452
INDEPENDENT TRANSMISSION ENTITY CONTROLLING THE TRANSMISSION 2,453
FACILITIES. ANY SUCH MEASURE SHALL BE TAKEN ONLY TO THE EXTENT 2,454
NECESSARY TO PROTECT CUSTOMERS IN THE AREA FROM THE PARTICULAR 2,455
ABUSE OF MARKET POWER AND TO THE EXTENT THE COMMISSION'S 2,456
AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE MEASURE SHALL 2,457
REMAIN IN EFFECT UNTIL THE COMMISSION, AFTER REASONABLE NOTICE 2,458
AND OPPORTUNITY FOR HEARING, DETERMINES THAT THE PARTICULAR ABUSE 2,459
OF MARKET POWER HAS BEEN MITIGATED.
(F) AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,461
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,462
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE SHALL 2,463
PROVIDE THE COMMISSION WITH SUCH INFORMATION, REGARDING A 2,464
COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO 2,465
CERTIFICATIONS, AS THE COMMISSION CONSIDERS NECESSARY TO CARRY 2,467
OUT THIS CHAPTER. AN ELECTRIC UTILITY SHALL PROVIDE THE 2,468
COMMISSION WITH SUCH INFORMATION AS THE COMMISSION CONSIDERS 2,469
NECESSARY TO CARRY OUT DIVISIONS (B) TO (E) OF THIS SECTION. THE 2,470
COMMISSION SHALL TAKE SUCH MEASURES AS IT CONSIDERS NECESSARY TO 2,471
PROTECT THE CONFIDENTIALITY OF ANY SUCH INFORMATION. 2,472
THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO FILE 2,475
WITH THE COMMISSION ON AND AFTER THE STARTING DATE OF COMPETITIVE 2,476
RETAIL ELECTRIC SERVICE AN ANNUAL REPORT OF ITS INTRASTATE GROSS 2,477
RECEIPTS AND SALES OF KILOWATT HOURS OF ELECTRICITY, AND SHALL 2,478
REQUIRE EACH ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, AND 2,479
59
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION TO FILE AN 2,481
ANNUAL REPORT ON AND AFTER THAT STARTING DATE OF SUCH RECEIPTS 2,482
AND SALES FROM THE PROVISION OF THOSE RETAIL ELECTRIC SERVICES 2,483
FOR WHICH IT IS SUBJECT TO CERTIFICATION. FOR THE PURPOSE OF THE 2,484
REPORTS, SALES OF KILOWATT HOURS OF ELECTRICITY ARE DEEMED TO 2,485
OCCUR AT THE METER OF THE RETAIL CUSTOMER. 2,486
Sec. 4928.07. TO THE MAXIMUM EXTENT PRACTICABLE ON OR 2,488
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 2,489
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,490
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,491
UNDER SECTION 4928.08 OF THE REVISED CODE SHALL SEPARATELY PRICE 2,493
COMPETITIVE RETAIL ELECTRIC SERVICES, AND THE PRICES SHALL BE 2,494
ITEMIZED ON THE BILL OF A CUSTOMER OR OTHERWISE DISCLOSED TO THE 2,495
CUSTOMER. ALTHOUGH A COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,496
BE SUPPLIED TO ANY CONSUMER ON SUCH A BASIS, SUCH AN ELECTRIC 2,497
UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 2,498
GOVERNMENTAL AGGREGATOR MAY REPACKAGE THE SERVICE ON OR AFTER THE 2,499
STARTING DATE AND OFFER IT ON A BUNDLED BASIS WITH OTHER RETAIL 2,500
ELECTRIC SERVICES TO MEET CONSUMER PREFERENCES. SUCH REPACKAGING 2,501
BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SECTIONS 4905.33 TO 2,502
4905.35 OF THE REVISED CODE. REPACKAGING BY SUCH AN ELECTRIC 2,504
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL
AGGREGATOR SHALL BE SUBJECT TO THE LIMITATION THAT NO SUCH 2,505
ENTITY, AS TO A COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH THE 2,506
UTILITY, COMPANY, COOPERATIVE, OR AGGREGATOR IS SUBJECT TO 2,507
CERTIFICATION, SHALL FURNISH FREE SERVICE OR SERVICE FOR LESS 2,508
THAN ACTUAL COST FOR THE PURPOSE OF DESTROYING COMPETITION. 2,509
Sec. 4928.08. (A) THIS SECTION APPLIES TO AN ELECTRIC 2,511
COOPERATIVE, OR TO A GOVERNMENTAL AGGREGATOR THAT IS A MUNICIPAL 2,512
ELECTRIC UTILITY, ONLY TO THE EXTENT OF A COMPETITIVE RETAIL 2,514
ELECTRIC SERVICE IT PROVIDES TO A CUSTOMER TO WHOM IT DOES NOT 2,515
PROVIDE A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 2,516
TRANSMISSION OR DISTRIBUTION FACILITIES IT SINGLY OR JOINTLY OWNS 2,517
OR OPERATES.
60
(B) NO ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,519
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SHALL PROVIDE A 2,520
COMPETITIVE RETAIL ELECTRIC SERVICE TO A CONSUMER IN THIS STATE 2,521
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,522
SERVICE WITHOUT FIRST BEING CERTIFIED BY THE PUBLIC UTILITIES 2,523
COMMISSION REGARDING ITS MANAGERIAL, TECHNICAL, AND FINANCIAL 2,524
CAPABILITY TO PROVIDE THAT SERVICE. CERTIFICATION SHALL BE 2,525
GRANTED PURSUANT TO PROCEDURES AND STANDARDS THE COMMISSION SHALL 2,526
PRESCRIBE IN ACCORDANCE WITH DIVISION (C) OF THIS SECTION, EXCEPT 2,527
THAT CERTIFICATION OR CERTIFICATION RENEWAL SHALL BE DEEMED 2,528
APPROVED THIRTY DAYS AFTER THE FILING OF AN APPLICATION WITH THE 2,529
COMMISSION UNLESS THE COMMISSION SUSPENDS THAT APPROVAL FOR GOOD 2,530
CAUSE SHOWN. IN THE CASE OF SUCH A SUSPENSION, THE COMMISSION 2,531
SHALL ACT TO APPROVE OR DENY CERTIFICATION OR CERTIFICATION 2,532
RENEWAL TO THE APPLICANT NOT LATER THAN NINETY DAYS AFTER THE 2,533
DATE OF THE SUSPENSION. 2,534
(C) CAPABILITY STANDARDS ADOPTED IN RULES UNDER DIVISION 2,537
(B) OF THIS SECTION SHALL BE SUFFICIENT TO ENSURE COMPLIANCE WITH 2,538
THE MINIMUM SERVICE REQUIREMENTS ESTABLISHED UNDER SECTION 2,539
4928.10 OF THE REVISED CODE AND WITH SECTION 4928.09 OF THE 2,541
REVISED CODE. THE STANDARDS SHALL ALLOW FLEXIBILITY FOR 2,542
VOLUNTARY AGGREGATION, TO ENCOURAGE MARKET CREATIVITY IN 2,543
RESPONDING TO CONSUMER NEEDS AND DEMANDS. THE RULES SHALL 2,545
INCLUDE PROCEDURES FOR BIENNIALLY RENEWING CERTIFICATION. 2,546
(D) THE COMMISSION MAY SUSPEND, RESCIND, OR CONDITIONALLY 2,548
RESCIND THE CERTIFICATION OF ANY ELECTRIC UTILITY, ELECTRIC 2,550
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,551
AGGREGATOR ISSUED UNDER THIS SECTION IF THE COMMISSION 2,552
DETERMINES, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, 2,553
THAT THE UTILITY, COMPANY, COOPERATIVE, OR AGGREGATOR HAS FAILED 2,554
TO COMPLY WITH ANY APPLICABLE CERTIFICATION STANDARDS OR HAS 2,555
ENGAGED IN ANTICOMPETITIVE OR UNFAIR, DECEPTIVE, OR 2,556
UNCONSCIONABLE ACTS OR PRACTICES IN THIS STATE. 2,557
(E) NO ELECTRIC DISTRIBUTION UTILITY ON AND AFTER THE 2,559
61
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,560
KNOWINGLY DISTRIBUTE ELECTRICITY, TO A RETAIL CONSUMER IN THIS 2,561
STATE, FOR ANY SUPPLIER OF ELECTRICITY THAT HAS NOT BEEN 2,562
CERTIFIED BY THE COMMISSION PURSUANT TO THIS SECTION. 2,563
Sec. 4928.09. (A)(1) NO PERSON SHALL OPERATE IN THIS 2,565
STATE AS AN ELECTRIC UTILITY, AN ELECTRIC SERVICES COMPANY, OR A 2,566
BILLING AND COLLECTION AGENT ON AND AFTER THE STARTING DATE OF 2,567
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT PERSON FIRST DOES 2,569
BOTH OF THE FOLLOWING:
(a) CONSENTS IRREVOCABLY TO THE JURISDICTION OF THE COURTS 2,571
OF THIS STATE AND SERVICE OF PROCESS IN THIS STATE, INCLUDING, 2,572
WITHOUT LIMITATION, SERVICE OF SUMMONSES AND SUBPOENAS, FOR ANY 2,574
CIVIL OR CRIMINAL PROCEEDING ARISING OUT OF OR RELATING TO SUCH 2,575
OPERATION, BY PROVIDING THAT IRREVOCABLE CONSENT IN ACCORDANCE 2,576
WITH DIVISION (A)(4) OF THIS SECTION;
(b) DESIGNATES AN AGENT AUTHORIZED TO RECEIVE THAT SERVICE 2,578
OF PROCESS IN THIS STATE, BY FILING WITH THE COMMISSION A 2,579
DOCUMENT DESIGNATING THAT AGENT. 2,580
(2) NO PERSON SHALL CONTINUE TO OPERATE AS SUCH AN 2,582
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, OR BILLING AND 2,583
COLLECTION AGENT UNLESS THAT PERSON CONTINUES TO CONSENT TO SUCH 2,584
JURISDICTION AND SERVICE OF PROCESS IN THIS STATE AND CONTINUES 2,585
TO DESIGNATE AN AGENT AS PROVIDED UNDER THIS DIVISION, BY 2,586
REFILING IN ACCORDANCE WITH DIVISION (A)(4) OF THIS SECTION THE 2,587
APPROPRIATE DOCUMENTS FILED UNDER DIVISION (A)(1) OF THIS SECTION 2,588
OR, AS APPLICABLE, THE APPROPRIATE AMENDED DOCUMENTS FILED UNDER 2,589
DIVISION (A)(3) OF THIS SECTION. SUCH REFILING SHALL OCCUR 2,590
DURING THE MONTH OF DECEMBER OF EVERY FOURTH YEAR AFTER THE 2,591
INITIAL FILING OF A DOCUMENT UNDER DIVISION (A)(1) OF THIS 2,592
SECTION.
(3) IF THE ADDRESS OF THE PERSON FILING A DOCUMENT UNDER 2,594
DIVISION (A)(1) OR (2) OF THIS SECTION CHANGES, OR IF A PERSON'S 2,595
AGENT OR THE ADDRESS OF THE AGENT CHANGES, FROM THAT LISTED ON 2,596
THE MOST RECENTLY FILED OF SUCH DOCUMENTS, THE PERSON SHALL FILE
62
AN AMENDED DOCUMENT CONTAINING THE NEW INFORMATION. 2,597
(4) THE CONSENT AND DESIGNATION REQUIRED BY DIVISIONS 2,599
(A)(1) TO (3) OF THIS SECTION SHALL BE IN WRITING, ON FORMS 2,600
PRESCRIBED BY THE PUBLIC UTILITIES COMMISSION. THE ORIGINAL OF
EACH SUCH DOCUMENT OR AMENDED DOCUMENT SHALL BE LEGIBLE AND SHALL 2,601
BE FILED WITH THE COMMISSION, WITH A COPY FILED WITH THE OFFICE 2,602
OF THE CONSUMERS' COUNSEL AND WITH THE ATTORNEY GENERAL'S OFFICE. 2,603
(B) A PERSON WHO ENTERS THIS STATE PURSUANT TO A SUMMONS, 2,605
SUBPOENA, OR OTHER FORM OF PROCESS AUTHORIZED BY THIS SECTION IS 2,606
NOT SUBJECT TO ARREST OR SERVICE OF PROCESS, WHETHER CIVIL OR 2,607
CRIMINAL, IN CONNECTION WITH OTHER MATTERS THAT AROSE BEFORE THE 2,608
PERSON'S ENTRANCE INTO THIS STATE PURSUANT TO SUCH SUMMONS, 2,609
SUBPOENA, OR OTHER FORM OF PROCESS. 2,610
(C) DIVISIONS (A) AND (B) OF THIS SECTION DO NOT APPLY TO 2,612
ANY OF THE FOLLOWING: 2,613
(1) A CORPORATION INCORPORATED UNDER THE LAWS OF THIS 2,615
STATE THAT HAS APPOINTED A STATUTORY AGENT PURSUANT TO SECTION 2,616
1701.07 OR 1702.06 OF THE REVISED CODE; 2,617
(2) A FOREIGN CORPORATION LICENSED TO TRANSACT BUSINESS IN 2,619
THIS STATE THAT HAS APPOINTED A DESIGNATED AGENT PURSUANT TO 2,620
SECTION 1703.041 OF THE REVISED CODE; 2,621
(3) ANY OTHER PERSON THAT IS A RESIDENT OF THIS STATE OR 2,623
THAT FILES CONSENT TO SERVICE OF PROCESS AND DESIGNATES A 2,624
STATUTORY AGENT PURSUANT TO OTHER LAWS OF THIS STATE. 2,625
Sec. 4928.10. FOR THE PROTECTION OF CONSUMERS IN THIS 2,627
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,628
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE SPECIFYING 2,629
THE NECESSARY MINIMUM SERVICE REQUIREMENTS, ON OR AFTER THE 2,630
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, OF AN 2,631
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,632
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,633
UNDER SECTION 4928.08 OF THE REVISED CODE REGARDING THE PROVISION 2,634
DIRECTLY OR THROUGH ITS BILLING AND COLLECTION AGENT OF 2,635
COMPETITIVE RETAIL ELECTRIC SERVICES FOR WHICH IT IS SUBJECT TO
63
CERTIFICATION. RULES ADOPTED UNDER THIS SECTION SHALL INCLUDE A 2,637
PROHIBITION AGAINST UNFAIR, DECEPTIVE, AND UNCONSCIONABLE ACTS 2,638
AND PRACTICES IN THE MARKETING, SOLICITATION, AND SALE OF SUCH A 2,639
COMPETITIVE RETAIL ELECTRIC SERVICE AND IN THE ADMINISTRATION OF 2,640
ANY CONTRACT FOR SERVICE, AND ALSO SHALL INCLUDE ADDITIONAL 2,641
CONSUMER PROTECTIONS CONCERNING ALL OF THE FOLLOWING: 2,642
(A) CONTRACT DISCLOSURE. THE RULES SHALL INCLUDE 2,644
REQUIREMENTS THAT AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,645
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,647
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE DO BOTH 2,648
OF THE FOLLOWING:
(1) PROVIDE CONSUMERS WITH ADEQUATE, ACCURATE, AND 2,650
UNDERSTANDABLE PRICING AND TERMS AND CONDITIONS OF SERVICE, 2,651
INCLUDING ANY SWITCHING FEES, AND WITH A DOCUMENT CONTAINING THE 2,652
TERMS AND CONDITIONS OF PRICING AND SERVICE BEFORE THE CONSUMER 2,653
ENTERS INTO THE CONTRACT FOR SERVICE; 2,654
(2) DISCLOSE THE CONDITIONS UNDER WHICH A CUSTOMER MAY 2,656
RESCIND A CONTRACT WITHOUT PENALTY. 2,657
(B) SERVICE TERMINATION. THE RULES SHALL INCLUDE 2,659
DISCLOSURE OF THE TERMS IDENTIFYING HOW CUSTOMERS MAY SWITCH OR 2,660
TERMINATE SERVICE, INCLUDING ANY REQUIRED NOTICE AND ANY
PENALTIES. 2,661
(C) MINIMUM CONTENT OF CUSTOMER BILLS. THE RULES SHALL 2,663
INCLUDE ALL OF THE FOLLOWING REQUIREMENTS: 2,664
(1) UNIFORM PRICE DISCLOSURE AND DISCLOSURES OF TOTAL 2,666
BILLING UNITS FOR THE BILLING PERIOD AND HISTORICAL ANNUAL USAGE; 2,667
(2) TO THE MAXIMUM EXTENT PRACTICABLE, SEPARATE LISTING OF 2,669
EACH SERVICE COMPONENT TO ENABLE A CUSTOMER TO RECALCULATE ITS 2,670
BILL FOR ACCURACY; 2,671
(3) IDENTIFICATION OF THE SUPPLIER OF EACH SERVICE; 2,673
(4) STATEMENT OF WHERE AND HOW PAYMENT MAY BE MADE AND 2,675
PROVISION OF A TOLL-FREE OR LOCAL CUSTOMER ASSISTANCE AND 2,676
COMPLAINT NUMBER FOR THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,677
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR, AS 2,678
64
WELL AS A CONSUMER ASSISTANCE TELEPHONE NUMBER OR NUMBERS FOR 2,679
STATE AGENCIES, SUCH AS THE COMMISSION, THE OFFICE OF THE 2,680
CONSUMERS' COUNSEL, AND THE ATTORNEY GENERAL'S OFFICE, WITH THE 2,681
AVAILABLE HOURS NOTED.
(D) DISCONNECTION AND SERVICE TERMINATION, INCLUDING 2,683
REQUIREMENTS WITH RESPECT TO MASTER-METERED BUILDINGS. THE RULES 2,684
SHALL INCLUDE POLICIES AND PROCEDURES THAT ARE CONSISTENT WITH 2,685
SECTIONS 4933.121 AND 4933.122 OF THE REVISED CODE AND THE 2,686
COMMISSION'S RULES ADOPTED UNDER THOSE SECTIONS, AND THAT PROVIDE
FOR ALL OF THE FOLLOWING: 2,687
(1) COORDINATION BETWEEN SUPPLIERS FOR THE PURPOSE OF 2,689
MAINTAINING SERVICE; 2,690
(2) THE ALLOCATION OF PARTIAL PAYMENTS BETWEEN SUPPLIERS 2,692
WHEN SERVICE COMPONENTS ARE JOINTLY BILLED; 2,693
(3) A PROHIBITION AGAINST BLOCKING, OR AUTHORIZING THE 2,695
BLOCKING OF, CUSTOMER ACCESS TO A NONCOMPETITIVE RETAIL ELECTRIC 2,696
SERVICE WHEN A CUSTOMER IS DELINQUENT IN PAYMENTS TO THE ELECTRIC 2,697
UTILITY OR ELECTRIC SERVICES COMPANY FOR A COMPETITIVE RETAIL 2,698
ELECTRIC SERVICE;
(4) A PROHIBITION AGAINST SWITCHING, OR AUTHORIZING THE 2,700
SWITCHING OF, A CUSTOMER'S SUPPLIER OF COMPETITIVE RETAIL 2,701
ELECTRIC SERVICE WITHOUT THE PRIOR CONSENT OF THE CUSTOMER IN 2,702
ACCORDANCE WITH APPROPRIATE CONFIRMATION PRACTICES, WHICH MAY 2,703
INCLUDE INDEPENDENT, THIRD-PARTY VERIFICATION PROCEDURES. 2,704
(5) A REQUIREMENT OF DISCLOSURE OF THE CONDITIONS UNDER 2,706
WHICH A CUSTOMER MAY RESCIND A DECISION TO SWITCH ITS SUPPLIER 2,707
WITHOUT PENALTY; 2,708
(6) SPECIFICATION OF ANY REQUIRED NOTICE AND ANY PENALTY 2,710
FOR EARLY TERMINATION OF CONTRACT. 2,711
(E) MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY. 2,713
HOWEVER, SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS 2,714
FOR ELECTRIC GENERATION SERVICE SHALL BE DETERMINED PRIMARILY 2,716
THROUGH MARKET EXPECTATIONS AND CONTRACTUAL RELATIONSHIPS. 2,717
(F) GENERATION RESOURCE MIX AND ENVIRONMENTAL 2,719
65
CHARACTERISTICS OF POWER SUPPLIES. THE RULES SHALL INCLUDE 2,720
REQUIREMENTS FOR DETERMINATION OF THE APPROXIMATE GENERATION
RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS OF THE POWER 2,721
SUPPLIES AND DISCLOSURE TO THE CUSTOMER PRIOR TO THE CUSTOMER 2,722
ENTERING INTO A CONTRACT TO PURCHASE AND FOUR TIMES PER YEAR 2,723
UNDER THE CONTRACT. THE RULES ALSO SHALL REQUIRE THAT THE 2,724
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,725
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR PROVIDE, OR CAUSE ITS 2,726
BILLING AND COLLECTION AGENT TO PROVIDE, A CUSTOMER WITH 2,727
INFORMATION COMPARING THE PROJECTED, WITH THE ACTUAL AND
VERIFIABLE, RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS. THIS 2,728
DISCLOSURE SHALL OCCUR NOT LESS THAN ANNUALLY OR NOT LESS THAN 2,729
ONCE DURING THE CONTRACT PERIOD IF THE CONTRACT PERIOD IS LESS 2,730
THAN ONE YEAR, AND PRIOR TO ANY RENEWAL OF A CONTRACT. 2,731
(G) CUSTOMER INFORMATION. THE RULES SHALL INCLUDE 2,733
REQUIREMENTS THAT THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,735
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR MAKE 2,736
GENERIC CUSTOMER LOAD PATTERN INFORMATION AVAILABLE TO OTHER 2,737
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,738
BASIS, AND MAKE CUSTOMER-SPECIFIC INFORMATION AVAILABLE TO OTHER 2,739
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,740
BASIS UNLESS, AS TO CUSTOMER-SPECIFIC INFORMATION, THE CUSTOMER 2,741
OBJECTS. THE RULES SHALL ENSURE THAT EACH SUCH UTILITY, COMPANY, 2,742
COOPERATIVE, OR AGGREGATOR PROVIDE CLEAR AND FREQUENT NOTICE TO 2,743
ITS CUSTOMERS OF THE RIGHT TO OBJECT AND OF APPLICABLE 2,744
PROCEDURES. THE RULES SHALL ESTABLISH THE EXACT LANGUAGE THAT 2,745
SHALL BE USED IN ALL SUCH NOTICES.
Sec. 4928.11. (A) FOR THE PROTECTION OF CONSUMERS IN THIS 2,747
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,749
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE THAT SPECIFY 2,750
MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS FOR 2,751
NONCOMPETITIVE RETAIL ELECTRIC SERVICES SUPPLIED BY AN ELECTRIC 2,752
UTILITY IN THIS STATE, TO THE EXTENT SUCH AUTHORITY IS NOT 2,753
PREEMPTED BY FEDERAL LAW. THE RULES SHALL INCLUDE PRESCRIPTIVE 2,754
66
STANDARDS FOR INSPECTION, MAINTENANCE, REPAIR, AND REPLACEMENT OF 2,755
THE TRANSMISSION AND DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES; 2,756
SHALL APPLY TO EACH SUBSTANTIAL TYPE OF TRANSMISSION OR 2,757
DISTRIBUTION EQUIPMENT OR FACILITY; SHALL ESTABLISH UNIFORM 2,758
INTERCONNECTION STANDARDS TO ENSURE TRANSMISSION AND DISTRIBUTION 2,759
SYSTEM SAFETY AND RELIABILITY AND SHALL OTHERWISE PROVIDE FOR 2,760
HIGH QUALITY, SAFE, AND RELIABLE ELECTRIC SERVICE; AND SHALL 2,761
INCLUDE STANDARDS FOR OPERATION, RELIABILITY, AND SAFETY DURING 2,762
PERIODS OF EMERGENCY AND DISASTER. THE RULES REGARDING 2,764
INTERCONNECTION SHALL SEEK TO PREVENT BARRIERS TO NEW TECHNOLOGY 2,765
AND SHALL NOT MAKE COMPLIANCE UNDULY BURDENSOME OR EXPENSIVE. 2,766
WHEN QUESTIONS ARISE ABOUT SPECIFIC EQUIPMENT TO MEET 2,767
INTERCONNECTION STANDARDS, THE COMMISSION SHALL INITIATE 2,768
PROCEEDINGS OPEN TO THE PUBLIC TO SOLICIT COMMENTS FROM ALL 2,769
INTERESTED PARTIES. ADDITIONALLY, RULES UNDER THIS DIVISION 2,770
SHALL INCLUDE NONDISCRIMINATORY METERING STANDARDS. 2,771
(B) THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO 2,773
REPORT ANNUALLY TO THE COMMISSION ON AND AFTER THE STARTING DATE 2,774
OF COMPETITIVE RETAIL ELECTRIC SERVICE, REGARDING ITS COMPLIANCE 2,775
WITH THE RULES REQUIRED UNDER DIVISION (A) OF THIS SECTION. THE 2,776
COMMISSION SHALL MAKE THE FILED REPORTS AVAILABLE TO THE PUBLIC. 2,777
PERIODICALLY AS DETERMINED BY COMMISSION RULE UNDER DIVISION (A) 2,778
OF SECTION 4928.06 OF THE REVISED CODE AND IN A PROCEEDING 2,779
INITIATED UNDER DIVISION (B) OF SECTION 4928.16 OF THE REVISED 2,780
CODE, THE COMMISSION SHALL REVIEW A UTILITY'S REPORT TO DETERMINE 2,782
THE UTILITY'S COMPLIANCE AND MAY ACT PURSUANT TO DIVISION (B) OF 2,783
SECTION 4928.16 OF THE REVISED CODE TO ENFORCE COMPLIANCE. 2,784
Sec. 4928.12. (A) EXCEPT AS OTHERWISE PROVIDED IN 2,786
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ENTITY SHALL 2,787
OWN OR CONTROL TRANSMISSION FACILITIES AS DEFINED UNDER FEDERAL 2,788
LAW AND LOCATED IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,789
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT ENTITY IS A 2,790
MEMBER OF, AND TRANSFERS CONTROL OF THOSE FACILITIES TO, ONE OR 2,791
MORE QUALIFYING TRANSMISSION ENTITIES, AS DESCRIBED IN DIVISION 2,792
67
(B) OF THIS SECTION, THAT ARE OPERATIONAL.
(B) AN ENTITY THAT OWNS OR CONTROLS TRANSMISSION 2,794
FACILITIES LOCATED IN THIS STATE COMPLIES WITH DIVISION (A) OF 2,796
THIS SECTION IF EACH TRANSMISSION ENTITY OF WHICH IT IS A MEMBER 2,797
MEETS ALL OF THE FOLLOWING SPECIFICATIONS: 2,798
(1) THE TRANSMISSION ENTITY IS APPROVED BY THE FEDERAL 2,800
ENERGY REGULATORY COMMISSION. 2,801
(2) THE TRANSMISSION ENTITY EFFECTS SEPARATE CONTROL OF 2,803
TRANSMISSION FACILITIES FROM CONTROL OF GENERATION FACILITIES. 2,804
(3) THE TRANSMISSION ENTITY PROHIBITS OR OTHERWISE 2,806
PRECLUDES PANCAKED TRANSMISSION RATES. 2,807
(4) THE TRANSMISSION ENTITY IMPROVES SERVICE RELIABILITY 2,809
WITHIN THIS STATE. 2,810
(5) THE TRANSMISSION ENTITY ACHIEVES THE OBJECTIVES OF AN 2,812
OPEN AND COMPETITIVE ELECTRIC GENERATION MARKETPLACE, ELIMINATION 2,813
OF BARRIERS TO MARKET ENTRY, AND PRECLUSION OF CONTROL OF 2,814
BOTTLENECK ELECTRIC TRANSMISSION FACILITIES IN THE PROVISION OF 2,815
RETAIL ELECTRIC SERVICE. 2,816
(6) THE TRANSMISSION ENTITY IS OF SUFFICIENT SCOPE OR 2,818
OTHERWISE OPERATES TO SUBSTANTIALLY INCREASE ECONOMICAL SUPPLY 2,820
OPTIONS FOR CONSUMERS.
(7) THE GOVERNANCE STRUCTURE OR CONTROL OF THE 2,822
TRANSMISSION ENTITY IS INDEPENDENT OF THE OWNERS AND USERS OF THE 2,823
TRANSMISSION FACILITIES, AND NO MEMBER OF ITS BOARD OF DIRECTORS 2,824
HAS AN AFFILIATION, WITH SUCH AN OWNER OR USER OR WITH AN 2,825
AFFILIATE OF AN OWNER OR USER DURING THE MEMBER'S TENURE ON THE 2,826
BOARD, SUCH AS TO UNDULY AFFECT THE TRANSMISSION ENTITY'S 2,827
PERFORMANCE.
(8) THE TRANSMISSION ENTITY OPERATES UNDER POLICIES THAT 2,829
PROMOTE POSITIVE PERFORMANCE DESIGNED TO SATISFY THE ELECTRICITY 2,830
REQUIREMENTS OF CUSTOMERS. 2,831
(9) THE TRANSMISSION ENTITY IS CAPABLE OF MAINTAINING 2,833
REAL-TIME RELIABILITY OF THE ELECTRIC TRANSMISSION SYSTEM, 2,834
ENSURING COMPARABLE AND NONDISCRIMINATORY TRANSMISSION ACCESS AND 2,835
68
NECESSARY SERVICES, MINIMIZING SYSTEM CONGESTION, AND FURTHER 2,836
ADDRESSING REAL OR POTENTIAL TRANSMISSION CONSTRAINTS. 2,837
(C) TO THE EXTENT THAT A TRANSMISSION ENTITY UNDER 2,839
DIVISION (A) OF THIS SECTION IS AUTHORIZED TO BUILD TRANSMISSION 2,840
FACILITIES, THAT TRANSMISSION ENTITY HAS THE POWERS PROVIDED IN
AND IS SUBJECT TO SECTIONS 1723.01 TO 1723.08 OF THE REVISED 2,841
CODE.
(D) FOR THE PURPOSE OF FORMING OR PARTICIPATING IN A 2,843
REGIONAL REGULATORY OVERSIGHT BODY OR MECHANISM DEVELOPED FOR ANY 2,844
TRANSMISSION ENTITY UNDER DIVISION (A) OF THIS SECTION THAT IS OF 2,845
REGIONAL SCOPE AND OPERATES WITHIN THIS STATE: 2,846
(1) THE COMMISSION MAY MAKE JOINT INVESTIGATIONS, HOLD 2,848
JOINT HEARINGS, WITHIN OR OUTSIDE THIS STATE, AND ISSUE JOINT OR 2,849
CONCURRENT ORDERS IN CONJUNCTION OR CONCURRENCE WITH ANY OFFICIAL 2,850
OR AGENCY OF ANY STATE OR OF THE UNITED STATES, WHETHER IN THE 2,851
HOLDING OF THOSE INVESTIGATIONS OR HEARINGS, OR IN THE MAKING OF 2,852
THOSE ORDERS, THE COMMISSION IS FUNCTIONING UNDER AGREEMENTS OR 2,853
COMPACTS BETWEEN STATES, UNDER THE CONCURRENT POWER OF STATES TO 2,854
REGULATE INTERSTATE COMMERCE, AS AN AGENCY OF THE UNITED STATES, 2,855
OR OTHERWISE. 2,856
(2) THE COMMISSION MAY NEGOTIATE AND ENTER INTO AGREEMENTS 2,858
OR COMPACTS WITH AGENCIES OF OTHER STATES FOR COOPERATIVE 2,859
REGULATORY EFFORTS AND FOR THE ENFORCEMENT OF THE RESPECTIVE 2,860
STATE LAWS REGARDING THE TRANSMISSION ENTITY. 2,861
(E) IF A QUALIFYING TRANSMISSION ENTITY IS NOT OPERATIONAL 2,864
AS CONTEMPLATED IN DIVISION (A)(2) OF THIS SECTION, DIVISION 2,866
(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 2,867
ORDER SHALL TAKE SUCH MEASURES OR IMPOSE SUCH REQUIREMENTS ON ALL 2,869
FOR-PROFIT ENTITIES THAT OWN OR CONTROL ELECTRIC TRANSMISSION 2,870
FACILITIES LOCATED IN THIS STATE AS THE COMMISSION DETERMINES 2,871
NECESSARY AND PROPER TO ACHIEVE INDEPENDENT, NONDISCRIMINATORY 2,872
OPERATION OF, AND SEPARATE OWNERSHIP AND CONTROL OF, SUCH 2,873
ELECTRIC TRANSMISSION FACILITIES ON OR AFTER THE STARTING DATE OF 2,874
69
COMPETITIVE RETAIL ELECTRIC SERVICE. 2,875
Sec. 4928.13. THROUGH A PERIODIC FILING WITH THE PUBLIC 2,877
UTILITIES COMMISSION IN SUCH FORM AS THE COMMISSION SHALL 2,878
PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF THE 2,879
REVISED CODE, EACH ELECTRIC UTILITY THAT OWNS NUCLEAR GENERATION 2,880
FACILITIES LOCATED IN THIS STATE SHALL DEMONSTRATE COMPLIANCE 2,881
WITH DECOMMISSIONING REQUIREMENTS OF THE NUCLEAR REGULATORY
COMMISSION AND PUBLIC UTILITIES COMMISSION AND SHALL DEMONSTRATE 2,883
ADEQUATE FINANCING MECHANISMS TO FUND FACILITY DECOMMISSIONING. 2,884
Sec. 4928.14. (A) AFTER ITS MARKET DEVELOPMENT PERIOD, AN 2,886
ELECTRIC DISTRIBUTION UTILITY IN THIS STATE SHALL PROVIDE 2,887
CONSUMERS, ON A COMPARABLE AND NONDISCRIMINATORY BASIS WITHIN ITS 2,889
CERTIFIED TERRITORY, A STANDARD SERVICE OFFER OF ALL COMPETITIVE 2,890
RETAIL ELECTRIC SERVICES NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC 2,891
SERVICE TO CONSUMERS, INCLUDING A FIRM SUPPLY OF ELECTRIC 2,892
GENERATION SERVICE. SUCH OFFER SHALL BE FILED WITH THE PUBLIC 2,893
UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE REVISED CODE. 2,894
(B) AFTER THAT MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 2,896
SUPPLIER TO PROVIDE RETAIL ELECTRIC GENERATION SERVICE TO 2,897
CUSTOMERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC 2,898
DISTRIBUTION UTILITY SHALL RESULT IN THE SUPPLIER'S CUSTOMERS, 2,899
AFTER REASONABLE NOTICE, DEFAULTING TO THE UTILITY'S STANDARD 2,900
SERVICE OFFER FILED UNDER DIVISION (A) OF THIS SECTION UNTIL THE 2,901
CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. A SUPPLIER IS DEEMED 2,902
UNDER THIS SECTION TO HAVE FAILED TO PROVIDE SUCH SERVICE IF THE 2,904
COMMISSION FINDS, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,905
HEARING, THAT ANY OF THE FOLLOWING CONDITIONS ARE MET:
(1) THE SUPPLIER HAS DEFAULTED ON ITS CONTRACTS WITH 2,907
CUSTOMERS, IS IN RECEIVERSHIP, OR HAS FILED FOR BANKRUPTCY. 2,908
(2) THE SUPPLIER IS NO LONGER CAPABLE OF PROVIDING THE 2,910
SERVICE. 2,911
(3) THE SUPPLIER IS UNABLE TO PROVIDE DELIVERY TO 2,913
TRANSMISSION OR DISTRIBUTION FACILITIES FOR SUCH PERIOD OF TIME 2,914
AS MAY BE REASONABLY SPECIFIED BY COMMISSION RULE ADOPTED UNDER 2,915
70
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 2,916
(4) THE SUPPLIER'S CERTIFICATION HAS BEEN SUSPENDED, 2,918
CONDITIONALLY RESCINDED, OR RESCINDED UNDER DIVISION (D) OF 2,919
SECTION 4928.08 OF THE REVISED CODE.
Sec. 4928.15. (A) EXCEPT AS OTHERWISE PROVIDED IN 2,921
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ELECTRIC 2,923
UTILITY SHALL SUPPLY NONCOMPETITIVE RETAIL ELECTRIC DISTRIBUTION 2,925
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,926
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 2,927
FOR THAT SERVICE THAT IS CONSISTENT WITH THE STATE POLICY 2,928
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED WITH
THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE 2,930
REVISED CODE. THE SCHEDULE SHALL PROVIDE THAT ELECTRIC 2,931
DISTRIBUTION SERVICE UNDER THE SCHEDULE IS AVAILABLE TO ALL 2,932
CONSUMERS WITHIN THE UTILITY'S CERTIFIED TERRITORY AND TO ANY 2,933
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 2,934
BASIS. DISTRIBUTION SERVICE RATES AND CHARGES UNDER THE SCHEDULE 2,935
SHALL BE ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. 2,936
OF THE REVISED CODE. THE SCHEDULE SHALL INCLUDE AN OBLIGATION TO 2,938
BUILD DISTRIBUTION FACILITIES WHEN NECESSARY TO PROVIDE ADEQUATE 2,940
DISTRIBUTION SERVICE, PROVIDED THAT A CUSTOMER REQUESTING THAT
SERVICE MAY BE REQUIRED TO PAY ALL OR PART OF THE REASONABLE 2,942
INCREMENTAL COST OF THE NEW FACILITIES, IN ACCORDANCE WITH RULES, 2,943
POLICY, PRECEDENTS, OR ORDERS OF THE COMMISSION. 2,944
(B) EXCEPT AS OTHERWISE PROVIDED IN SECTIONS 4928.31 TO 2,946
4928.40 OF THE REVISED CODE AND EXCEPT AS PREEMPTED BY FEDERAL 2,948
LAW, NO ELECTRIC UTILITY SHALL SUPPLY THE TRANSMISSION SERVICE OR 2,949
ANCILLARY SERVICE COMPONENT OF NONCOMPETITIVE RETAIL ELECTRIC 2,950
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 2,951
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 2,952
FOR THAT SERVICE COMPONENT THAT IS CONSISTENT WITH THE STATE 2,953
POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED 2,954
WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED CODE. 2,955
THE SCHEDULE SHALL PROVIDE THAT TRANSMISSION OR ANCILLARY SERVICE 2,956
71
UNDER THE SCHEDULE IS AVAILABLE TO ALL CONSUMERS AND TO ANY 2,957
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 2,958
BASIS. SERVICE RATES AND CHARGES UNDER THE SCHEDULE SHALL BE 2,959
ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. OF THE 2,961
REVISED CODE.
Sec. 4928.16. (A)(1) THE PUBLIC UTILITIES COMMISSION HAS 2,963
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 2,964
COMPLAINT OF ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 2,965
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,966
ELECTRIC SERVICE, REGARDING THE PROVISION BY AN ELECTRIC UTILITY, 2,967
ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,968
AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE
REVISED CODE OF ANY SERVICE FOR WHICH IT IS SUBJECT TO 2,969
CERTIFICATION.
(2) THE COMMISSION ALSO HAS JURISDICTION UNDER SECTION 2,971
4905.26 OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 2,972
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 2,974
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 2,975
DETERMINE WHETHER AN ELECTRIC UTILITY HAS VIOLATED OR FAILED TO 2,976
COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.15, ANY 2,977
PROVISION OF DIVISIONS (A) TO (D) OF SECTION 4928.35 OF THE 2,980
REVISED CODE, OR WITH ANY RULE OR ORDER ADOPTED OR ISSUED UNDER 2,981
THOSE SECTIONS; OR WHETHER AN ELECTRIC SERVICES COMPANY, ELECTRIC 2,982
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,984
UNDER SECTION 4928.08 OF THE REVISED CODE HAS VIOLATED OR FAILED 2,986
TO COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.10 OF 2,987
THE REVISED CODE REGARDING A COMPETITIVE RETAIL ELECTRIC SERVICE 2,988
FOR WHICH IT IS SUBJECT TO CERTIFICATION OR ANY RULE OR ORDER 2,989
ADOPTED OR ISSUED UNDER THOSE SECTIONS. 2,991
(B) IN ADDITION TO ITS AUTHORITY UNDER DIVISION (C) OF 2,993
SECTION 4928.08 OF THE REVISED CODE AND TO ANY OTHER REMEDIES 2,995
PROVIDED BY LAW, THE COMMISSION, AFTER REASONABLE NOTICE AND 2,997
OPPORTUNITY FOR HEARING IN ACCORDANCE WITH SECTION 4905.26 OF THE 2,999
REVISED CODE, MAY DO ANY OF THE FOLLOWING: 3,000
72
(1) ORDER RESCISSION OF A CONTRACT OR RESTITUTION TO 3,002
CUSTOMERS IN ANY COMPLAINT BROUGHT PURSUANT TO DIVISION (A)(1) OR 3,003
(2) OF THIS SECTION; 3,004
(2) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,006
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,008
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC UTILITY 3,009
HAS VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF SECTIONS 3,010
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,011
SECTION 4928.35 OF THE REVISED CODE, OR WITH ANY RULE OR ORDER 3,014
ADOPTED OR ISSUED UNDER THOSE SECTIONS. IN ADDITION, THE 3,015
COMMISSION MAY ORDER ANY REMEDY PROVIDED UNDER SECTION 4905.22, 3,016
4905.37, OR 4905.38 OF THE REVISED CODE IF THE VIOLATION OR 3,017
FAILURE TO COMPLY BY AN ELECTRIC UTILITY RELATED TO THE PROVISION 3,018
OF A NONCOMPETITIVE RETAIL ELECTRIC SERVICE. 3,019
(3) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,021
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,022
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC SERVICES 3,024
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT 3,025
TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE HAS 3,027
VIOLATED OR FAILED TO COMPLY, REGARDING A COMPETITIVE RETAIL 3,029
ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO CERTIFICATION, WITH 3,030
ANY PROVISION OF SECTIONS 4928.01 TO 4928.10 OF THE REVISED CODE 3,032
OR ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,033
(C)(1) IN ADDITION TO THE AUTHORITY CONFERRED UNDER 3,035
SECTION 4911.15 OF THE REVISED CODE, THE CONSUMERS' COUNSEL MAY 3,036
FILE A COMPLAINT UNDER DIVISION (A)(1) OR (2) OF THIS SECTION ON 3,037
BEHALF OF RESIDENTIAL CONSUMERS IN THIS STATE OR APPEAR BEFORE 3,038
THE COMMISSION AS A REPRESENTATIVE OF THOSE CONSUMERS PURSUANT TO 3,040
ANY COMPLAINT FILED UNDER DIVISION (A)(1) OR (2) OF THIS SECTION. 3,041
(2) IN ADDITION TO THE AUTHORITY CONFERRED UNDER SECTION 3,043
4911.19 OF THE REVISED CODE, THE CONSUMERS' COUNSEL, UPON 3,044
REASONABLE GROUNDS ON AND AFTER THE STARTING DATE OF COMPETITIVE 3,045
RETAIL ELECTRIC SERVICE, MAY FILE WITH THE COMMISSION UNDER 3,046
SECTION 4905.26 OF THE REVISED CODE A COMPLAINT FOR DISCOVERY IF 3,047
73
THE RECIPIENT OF AN INQUIRY UNDER SECTION 4911.19 OF THE REVISED 3,048
CODE FAILS TO PROVIDE A RESPONSE WITHIN THE TIME SPECIFIED IN 3,049
THAT SECTION.
(D) SECTION 4905.61 OF THE REVISED CODE APPLIES TO A 3,051
VIOLATION BY AN ELECTRIC UTILITY OF, OR TO A FAILURE OF AN 3,052
ELECTRIC UTILITY TO COMPLY WITH, ANY PROVISION OF SECTIONS 3,053
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,054
SECTION 4928.35 OF THE REVISED CODE, OR WITH ANY RULE OR ORDER 3,055
ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,056
Sec. 4928.17. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,058
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE AND BEGINNING ON 3,059
THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, NO 3,060
ELECTRIC UTILITY SHALL ENGAGE IN THIS STATE, EITHER DIRECTLY OR 3,061
THROUGH AN AFFILIATE, IN THE BUSINESSES OF SUPPLYING A 3,062
NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING A 3,063
COMPETITIVE RETAIL ELECTRIC SERVICE, OR IN THE BUSINESSES OF 3,064
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING 3,065
A PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE, UNLESS 3,066
THE UTILITY IMPLEMENTS AND OPERATES UNDER A CORPORATE SEPARATION 3,067
PLAN THAT IS APPROVED BY THE PUBLIC UTILITIES COMMISSION UNDER 3,068
THIS SECTION, IS CONSISTENT WITH THE POLICY SPECIFIED IN SECTION 3,069
4928.02 OF THE REVISED CODE, AND ACHIEVES ALL OF THE FOLLOWING: 3,070
(1) THE PLAN PROVIDES, AT MINIMUM, FOR THE PROVISION OF 3,072
THE COMPETITIVE RETAIL ELECTRIC SERVICE OR THE NONELECTRIC 3,073
PRODUCT OR SERVICE THROUGH A FULLY SEPARATED AFFILIATE OF THE 3,074
UTILITY, AND THE PLAN INCLUDES SEPARATE ACCOUNTING REQUIREMENTS, 3,075
THE CODE OF CONDUCT AS ORDERED BY THE COMMISSION PURSUANT TO A 3,076
RULE IT SHALL ADOPT UNDER DIVISION (A) OF SECTION 4928.06 OF THE 3,077
REVISED CODE, AND SUCH OTHER MEASURES AS ARE NECESSARY TO 3,078
EFFECTUATE THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED 3,079
CODE.
(2) THE PLAN SATISFIES THE PUBLIC INTEREST IN PREVENTING 3,081
UNFAIR COMPETITIVE ADVANTAGE AND PREVENTING THE ABUSE OF MARKET 3,082
POWER.
74
(3) THE PLAN IS SUFFICIENT TO ENSURE THAT THE UTILITY WILL 3,084
NOT EXTEND ANY UNDUE PREFERENCE OR ADVANTAGE TO ANY AFFILIATE, 3,085
DIVISION, OR PART OF ITS OWN BUSINESS ENGAGED IN THE BUSINESS OF 3,086
SUPPLYING THE COMPETITIVE RETAIL ELECTRIC SERVICE OR NONELECTRIC 3,087
PRODUCT OR SERVICE, AND TO ENSURE THAT ANY SUCH AFFILIATE, 3,088
DIVISION, OR PART WILL NOT RECEIVE UNDUE PREFERENCE OR ADVANTAGE 3,089
FROM ANY AFFILIATE, DIVISION, OR PART OF THE BUSINESS ENGAGED IN 3,090
BUSINESS OF SUPPLYING THE NONCOMPETITIVE RETAIL ELECTRIC SERVICE. 3,091
NO SUCH UTILITY, AFFILIATE, DIVISION, OR PART SHALL EXTEND SUCH 3,092
UNDUE PREFERENCE.
(B) THE COMMISSION MAY APPROVE, MODIFY AND APPROVE, OR 3,094
DISAPPROVE A CORPORATE SEPARATION PLAN FILED WITH THE COMMISSION 3,095
UNDER DIVISION (A) OF THIS SECTION. AS PART OF THE CODE OF 3,096
CONDUCT REQUIRED UNDER DIVISION (A)(1) OF THIS SECTION, THE 3,097
COMMISSION SHALL ADOPT RULES PURSUANT TO DIVISION (A) OF SECTION 3,098
4928.06 OF THE REVISED CODE REGARDING CORPORATE SEPARATION AND 3,099
PROCEDURES FOR PLAN FILING AND APPROVAL. THE RULES SHALL INCLUDE 3,100
LIMITATIONS ON AFFILIATE PRACTICES SOLELY FOR THE PURPOSE OF 3,101
MAINTAINING A SEPARATION OF THE AFFILIATE'S BUSINESS FROM THE 3,102
BUSINESS OF THE UTILITY TO PREVENT UNFAIR COMPETITIVE ADVANTAGE 3,104
BY VIRTUE OF THAT RELATIONSHIP. THE RULES ALSO SHALL INCLUDE AN 3,105
OPPORTUNITY FOR ANY PERSON HAVING A REAL AND SUBSTANTIAL INTEREST
IN THE CORPORATE SEPARATION PLAN TO FILE SPECIFIC OBJECTIONS TO 3,107
THE PLAN AND PROPOSE SPECIFIC RESPONSES TO ISSUES RAISED IN THE 3,109
OBJECTIONS, WHICH OBJECTIONS AND RESPONSES THE COMMISSION SHALL 3,110
ADDRESS IN ITS FINAL ORDER. PRIOR TO COMMISSION APPROVAL OF THE 3,111
PLAN, THE COMMISSION SHALL AFFORD A HEARING UPON THOSE ASPECTS OF 3,112
THE PLAN THAT THE COMMISSION DETERMINES REASONABLY REQUIRE A 3,113
HEARING. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF A 3,114
SUBSTANTIALLY INADEQUATE PLAN UNDER THIS SECTION. 3,115
(C) THE COMMISSION SHALL ISSUE AN ORDER APPROVING OR 3,117
MODIFYING AND APPROVING A CORPORATE SEPARATION PLAN UNDER THIS 3,118
SECTION, TO BE EFFECTIVE ON THE DATE SPECIFIED IN THE ORDER, ONLY 3,120
UPON FINDINGS THAT THE PLAN REASONABLY COMPLIES WITH THE 3,121
75
REQUIREMENTS OF DIVISION (A) OF THIS SECTION AND WILL PROVIDE FOR 3,122
ONGOING COMPLIANCE WITH THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE. 3,123
(D) ANY PARTY MAY SEEK AN AMENDMENT TO A CORPORATE 3,125
SEPARATION PLAN APPROVED UNDER THIS SECTION, AND THE COMMISSION, 3,126
PURSUANT TO A REQUEST FROM ANY PARTY OR ON ITS OWN INITIATIVE, 3,127
MAY ORDER AS IT CONSIDERS NECESSARY THE FILING OF AN AMENDED 3,128
CORPORATE SEPARATION PLAN TO REFLECT CHANGED CIRCUMSTANCES. 3,129
(E) NOTWITHSTANDING SECTION 4905.20, 4905.21, 4905.46, OR 3,131
4905.48 OF THE REVISED CODE, AN ELECTRIC UTILITY MAY DIVEST 3,132
ITSELF OF ANY GENERATING ASSET AT ANY TIME WITHOUT COMMISSION 3,133
APPROVAL, SUBJECT TO THE PROVISIONS OF TITLE XLIX OF THE REVISED 3,134
CODE RELATING TO THE TRANSFER OF TRANSMISSION, DISTRIBUTION, OR
ANCILLARY SERVICE PROVIDED BY SUCH GENERATING ASSET. 3,135
Sec. 4928.18. (A) NOTWITHSTANDING DIVISION (D)(2)(a) OF 3,138
SECTION 4909.15 OF THE REVISED CODE, NOTHING IN THIS CHAPTER 3,139
PREVENTS THE PUBLIC UTILITIES COMMISSION FROM EXERCISING ITS 3,140
AUTHORITY UNDER TITLE XLIX OF THE REVISED CODE TO PROTECT 3,142
CUSTOMERS OF RETAIL ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC
UTILITY FROM ANY ADVERSE EFFECT OF THE UTILITY'S PROVISION OF A 3,143
PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE. 3,145
(B) THE COMMISSION HAS JURISDICTION UNDER SECTION 4905.26 3,147
OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 3,148
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 3,150
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 3,151
DETERMINE WHETHER AN ELECTRIC UTILITY OR ITS AFFILIATE HAS 3,152
VIOLATED ANY PROVISION OF SECTION 4928.17 OF THE REVISED CODE OR
AN ORDER ISSUED OR RULE ADOPTED UNDER THAT SECTION. FOR THIS 3,154
PURPOSE, THE COMMISSION MAY EXAMINE SUCH BOOKS, ACCOUNTS, OR 3,155
OTHER RECORDS KEPT BY AN ELECTRIC UTILITY OR ITS AFFILIATE AS MAY 3,156
RELATE TO THE BUSINESSES FOR WHICH CORPORATE SEPARATION IS 3,157
REQUIRED UNDER SECTION 4928.17 OF THE REVISED CODE, AND MAY 3,158
INVESTIGATE SUCH UTILITY OR AFFILIATE OPERATIONS AS MAY RELATE TO
THOSE BUSINESSES AND INVESTIGATE THE INTERRELATIONSHIP OF THOSE 3,160
76
OPERATIONS. ANY SUCH EXAMINATION OR INVESTIGATION BY THE
COMMISSION SHALL BE GOVERNED BY CHAPTER 4903. OF THE REVISED 3,162
CODE.
(C) IN ADDITION TO ANY REMEDIES OTHERWISE PROVIDED BY LAW, 3,164
THE COMMISSION, REGARDING A DETERMINATION OF A VIOLATION PURSUANT 3,165
TO DIVISION (B) OF THIS SECTION, MAY DO ANY OF THE FOLLOWING: 3,167
(1) ISSUE AN ORDER DIRECTING THE UTILITY OR AFFILIATE TO 3,169
COMPLY;
(2) MODIFY AN ORDER AS THE COMMISSION FINDS REASONABLE AND 3,171
APPROPRIATE AND ORDER THE UTILITY OR AFFILIATE TO COMPLY WITH THE 3,172
MODIFIED ORDER; 3,173
(3) SUSPEND OR ABROGATE AN ORDER, IN WHOLE OR IN PART; 3,175
(4) ISSUE AN ORDER THAT THE UTILITY OR AFFILIATE PAY 3,177
RESTITUTION TO ANY PERSON INJURED BY THE VIOLATION OR FAILURE TO 3,178
COMPLY;
(5) IMPOSE A FORFEITURE ON THE UTILITY OR AFFILIATE OF UP 3,180
TO TWENTY-FIVE THOUSAND DOLLARS PER DAY PER VIOLATION. THE 3,182
RECOVERY AND DEPOSIT OF ANY SUCH FORFEITURE SHALL BE SUBJECT TO 3,183
SECTIONS 4905.57 AND 4905.59 OF THE REVISED CODE.
(D) IN ADDITION TO ANY OTHER REMEDIES AUTHORIZED BY LAW, 3,185
THE COMMISSION, REGARDING A VIOLATION BY AN ELECTRIC UTILITY 3,186
RELATING TO A CORPORATE SEPARATION PLAN INVOLVING COMPETITIVE 3,188
RETAIL ELECTRIC SERVICE, MAY DO EITHER OF THE FOLLOWING: 3,189
(1) SUSPEND OR ABROGATE AN ORDER, TO THE EXTENT IT IS IN 3,191
EFFECT, AUTHORIZING AN OPPORTUNITY FOR THE UTILITY TO RECEIVE 3,192
TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED BY THE 3,193
COMMISSION UNDER SECTION 4928.33 OF THE REVISED CODE; 3,194
(2) NOTWITHSTANDING ANY PROVISION OF SECTIONS 4933.81 TO 3,196
4933.90 OF THE REVISED CODE TO THE CONTRARY, ISSUE AN ORDER 3,197
AUTHORIZING ANOTHER ELECTRIC LIGHT COMPANY TO FURNISH 3,198
NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO ALL ELECTRIC LOAD 3,199
CENTERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY 3,201
WITHOUT A FINDING OF PHYSICALLY INADEQUATE SERVICE UNDER SECTION 3,202
4933.83 OF THE REVISED CODE.
77
(E) SECTION 4905.61 OF THE REVISED CODE APPLIES IN THE 3,204
CASE OF ANY VIOLATION OF SECTION 4928.17 OF THE REVISED CODE OR 3,205
OF ANY RULE ADOPTED OR ORDER ISSUED UNDER THAT SECTION. 3,206
Sec. 4928.19. AS PART OF THEIR ONGOING CONSUMER EDUCATION 3,208
EFFORTS, THE PUBLIC UTILITIES COMMISSION AND THE OFFICE OF THE 3,209
CONSUMERS' COUNSEL SHALL ENGAGE IN COOPERATIVE AGENCY EFFORTS TO 3,210
EDUCATE CONSUMERS IN THIS STATE REGARDING ELECTRIC INDUSTRY 3,211
RESTRUCTURING UNDER THIS CHAPTER. 3,212
Sec. 4928.20. (A) THE LEGISLATIVE AUTHORITY OF A 3,214
MUNICIPAL CORPORATION THROUGH THE ADOPTION OF AN ORDINANCE, OR 3,215
THE BOARD OF TOWNSHIP TRUSTEES OF A TOWNSHIP OR THE BOARD OF 3,217
COUNTY COMMISSIONERS OF A COUNTY THROUGH THE ADOPTION OF A 3,218
RESOLUTION, MAY PROVIDE THROUGH AGGREGATION FOR THE SUPPLY, ON OR
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 3,219
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE TO ELECTRIC LOAD 3,220
CENTERS LOCATED RESPECTIVELY, WITHIN THE MUNICIPAL CORPORATION, 3,221
TOWNSHIP, OR UNINCORPORATED AREA OF THE COUNTY, EXCEPT TO THE 3,222
EXTENT SUCH AGGREGATION IS OTHERWISE PROHIBITED BY SECTIONS 3,223
4933.81 TO 4933.90 OF THE REVISED CODE OR OTHER LAW OF THIS
STATE. BUT NO SUCH AGGREGATION SHALL OCCUR UNLESS THE PERSON 3,225
OWNING, OCCUPYING, CONTROLLING, OR USING THE ELECTRIC LOAD 3,226
CENTERS PROVIDES PRIOR WRITTEN CONSENT. 3,227
(B) A GOVERNMENTAL AGGREGATOR UNDER DIVISION (A) OF THIS 3,229
SECTION IS NOT A PUBLIC UTILITY ENGAGING IN THE WHOLESALE 3,231
PURCHASE AND RESALE OF ELECTRICITY, AND PROVISION OF THE 3,232
AGGREGATED SERVICE IS NOT A WHOLESALE UTILITY TRANSACTION. A 3,234
GOVERNMENTAL AGGREGATOR SHALL BE SUBJECT TO SUPERVISION AND 3,235
REGULATION BY THE PUBLIC UTILITIES COMMISSION ONLY TO THE EXTENT 3,236
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE IT PROVIDES AND 3,237
COMMISSION AUTHORITY UNDER THIS CHAPTER.
(C) THIS SECTION DOES NOT APPLY IN THE CASE OF A MUNICIPAL 3,239
CORPORATION THAT SUPPLIES SUCH AGGREGATED SERVICE TO ELECTRIC 3,240
LOAD CENTERS TO WHICH ITS MUNICIPAL ELECTRIC UTILITY ALSO 3,241
SUPPLIES A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 3,242
78
TRANSMISSION OR DISTRIBUTION FACILITIES THE UTILITY SINGLY OR 3,243
JOINTLY OWNS OR OPERATES. 3,244
Sec. 4928.31. (A) NOT LATER THAN NINETY DAYS AFTER THE 3,246
EFFECTIVE DATE OF THIS SECTION, AN ELECTRIC UTILITY SUPPLYING 3,247
RETAIL ELECTRIC SERVICE IN THIS STATE ON THAT DATE SHALL FILE 3,249
WITH THE PUBLIC UTILITIES COMMISSION A PLAN FOR THE UTILITY'S 3,250
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE DURING THE 3,251
MARKET DEVELOPMENT PERIOD. THIS TRANSITION PLAN SHALL BE IN SUCH 3,252
FORM AS THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,253
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE AND SHALL 3,254
INCLUDE ALL OF THE FOLLOWING:
(1) A RATE UNBUNDLING PLAN THAT SPECIFIES, CONSISTENT WITH 3,256
DIVISIONS (A)(1) TO (7) OF SECTION 4928.34 OF THE REVISED CODE 3,257
AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF 3,258
SECTION 4928.06 OF THE REVISED CODE, THE UNBUNDLED COMPONENTS FOR 3,259
ELECTRIC GENERATION, TRANSMISSION, AND DISTRIBUTION SERVICE AND 3,260
SUCH OTHER UNBUNDLED SERVICE COMPONENTS AS THE COMMISSION 3,261
REQUIRES, TO BE CHARGED BY THE UTILITY BEGINNING ON THE STARTING 3,262
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE AND THAT INCLUDES 3,263
INFORMATION THE COMMISSION REQUIRES TO FIX AND DETERMINE THOSE 3,264
COMPONENTS;
(2) A CORPORATE SEPARATION PLAN CONSISTENT WITH SECTION 3,266
4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,267
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,269
CODE;
(3) SUCH PLAN OR PLANS AS THE COMMISSION REQUIRES TO 3,271
ADDRESS OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,272
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,273
SERVICE CONSISTENT WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,274
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE; 3,275
(4) AN EMPLOYEE ASSISTANCE PLAN FOR PROVIDING SEVERANCE, 3,277
RETRAINING, EARLY RETIREMENT, RETENTION, OUTPLACEMENT, AND OTHER 3,279
ASSISTANCE FOR THE UTILITY'S EMPLOYEES WHOSE EMPLOYMENT IS 3,280
AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING UNDER THIS CHAPTER; 3,281
79
(5) A CONSUMER EDUCATION PLAN CONSISTENT WITH SECTION 3,283
4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,284
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,285
CODE.
ADDITIONALLY, A TRANSITION PLAN UNDER THIS SECTION MAY 3,287
INCLUDE AN APPLICATION FOR THE OPPORTUNITY TO RECEIVE TRANSITION 3,288
REVENUES AS AUTHORIZED UNDER SECTIONS 4928.31 TO 4928.40 OF THE 3,290
REVISED CODE, WHICH APPLICATION SHALL BE CONSISTENT WITH THOSE 3,292
SECTIONS AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION 3,293
(A) OF SECTION 4928.06 OF THE REVISED CODE. THE TRANSITION PLAN
ALSO MAY INCLUDE A PLAN FOR THE INDEPENDENT OPERATION OF THE 3,294
UTILITY'S TRANSMISSION FACILITIES CONSISTENT WITH SECTION 4928.12 3,295
OF THE REVISED CODE, DIVISION (A)(13) OF SECTION 4928.34 OF THE 3,296
REVISED CODE, AND ANY RULES ADOPTED BY THE COMMISSION UNDER 3,297
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE.
THE COMMISSION MAY REJECT AND REQUIRE REFILING, IN WHOLE OR 3,299
IN PART, OF ANY SUBSTANTIALLY INADEQUATE TRANSITION PLAN. 3,300
(B) THE ELECTRIC UTILITY SHALL PROVIDE PUBLIC NOTICE OF 3,302
ITS FILING UNDER DIVISION (A) OF THIS SECTION, IN A FORM AND 3,303
MANNER THAT THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,304
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. HOWEVER, 3,305
THE ADOPTION OF RULES REGARDING THE PUBLIC NOTICE UNDER THIS 3,306
DIVISION, REGARDING THE FORM OF THE TRANSITION PLAN UNDER 3,307
DIVISION (A) OF THIS SECTION, AND REGARDING PROCEDURES FOR 3,308
EXPEDITED DISCOVERY UNDER DIVISION (A) OF SECTION 4928.32 OF THE 3,309
REVISED CODE ARE NOT SUBJECT TO DIVISION (D) OF SECTION 111.15 OF 3,310
THE REVISED CODE.
Sec. 4928.32. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,312
ESTABLISH REASONABLE PROCEDURES FOR EXPEDITED DISCOVERY IN ANY 3,313
PROCEEDING INITIATED TO CONSIDER A TRANSITION PLAN FILED UNDER 3,315
SECTION 4928.31 OF THE REVISED CODE.
(B) NOT LATER THAN FORTY-FIVE DAYS AFTER THE DATE ON WHICH 3,317
AN ELECTRIC UTILITY FILES A TRANSITION PLAN UNDER SECTION 4928.31 3,318
OF THE REVISED CODE, ANY PERSON HAVING A REAL AND SUBSTANTIAL 3,319
80
INTEREST IN THE TRANSITION PLAN MAY FILE WITH THE COMMISSION 3,320
PRELIMINARY OBJECTIONS TO THE TRANSITION PLAN, WHICH SHALL 3,321
IDENTIFY WITH SPECIFICITY ISSUES PERTAINING TO ANY ASPECT OF THE 3,322
TRANSITION PLAN, AND ANY SUCH PERSON MAY PROPOSE SPECIFIC 3,323
RESPONSES TO THOSE ISSUES. THE COMMISSION SHALL ADDRESS THOSE 3,324
OBJECTIONS AND RESPONSES IN ITS FINAL ORDER. 3,325
IN ADDITION, NOT LATER THAN NINETY DAYS AFTER THE PLAN'S 3,327
FILING, THE COMMISSION STAFF SHALL FILE WITH THE COMMISSION A 3,329
REPORT OF ITS RECOMMENDATIONS WITH RESPECT TO THE PLAN. PRIOR TO 3,330
COMMISSION APPROVAL OF THE PLAN, THE COMMISSION SHALL AFFORD A 3,331
HEARING UPON THOSE ASPECTS OF THE PLAN THAT THE COMMISSION 3,332
DETERMINES REASONABLY REQUIRE A HEARING.
(C) THE COMMISSION SHALL MAINTAIN A COMPLETE RECORD OF ALL 3,334
PROCEEDINGS RELATIVE TO A TRANSITION PLAN FILED UNDER SECTION 3,335
4928.31 OF THE REVISED CODE AND SHALL ISSUE AND FILE WITH THE 3,336
RECORD OF THE CASE FINDINGS OF FACT AND WRITTEN OPINIONS SETTING 3,337
FORTH THE REASONS FOR ANY MODIFICATION TO OR ITS APPROVAL OF A 3,338
TRANSITION PLAN. 3,339
Sec. 4928.33. (A) NOT LATER THAN TWO HUNDRED SEVENTY-FIVE 3,341
DAYS AFTER THE DATE AN ELECTRIC UTILITY FILES A TRANSITION PLAN 3,342
UNDER SECTION 4928.31 OF THE REVISED CODE, BUT, IN ANY EVENT, NOT 3,343
LATER THAN OCTOBER 31, 2000, THE PUBLIC UTILITIES COMMISSION 3,345
SHALL ISSUE A FINAL ORDER APPROVING THE TRANSITION PLAN AS FILED 3,346
UNDER SECTION 4928.31 OF THE REVISED CODE OR AN ORDER MODIFYING 3,347
AND APPROVING THAT PLAN. THE ORDER IS SUBJECT TO SECTION 4903.15 3,348
OF THE REVISED CODE AND IS SUBJECT TO REVIEW AND APPEAL UNDER 3,349
CHAPTER 4903. OF THE REVISED CODE.
(B) IF THE COMMISSION FAILS TO ISSUE, BY OCTOBER 31, 2000, 3,352
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, 3,353
THE COMMISSION SHALL ISSUE AN INTERIM ORDER PRESCRIBING A 3,355
TRANSITION PLAN, TO HAVE EFFECT ON AN INTERIM BASIS ONLY, AND 3,356
CONTAINING THE PLAN COMPONENTS REQUIRED BY DIVISION (A) OF 3,357
SECTION 4928.31 OF THE REVISED CODE AND PROVIDING FOR THE 3,359
81
OPPORTUNITY FOR TRANSITION REVENUE RECEIPT IF SUCH AN APPLICATION
WERE INCLUDED IN THE PLAN FILED BY THE UTILITY UNDER THAT 3,360
SECTION. THE INTERIM ORDER IS SUBJECT TO SECTION 4903.15 OF THE 3,361
REVISED CODE BUT IS NOT SUBJECT TO REVIEW AND APPEAL UNDER 3,362
CHAPTER 4903. OF THE REVISED CODE. 3,363
AN INTERIM PLAN PRESCRIBED UNDER THE INTERIM ORDER SHALL BE 3,365
EFFECTIVE FOR THE ELECTRIC UTILITY BEGINNING ON THE STARTING DATE 3,366
OF COMPETITIVE RETAIL ELECTRIC SERVICE AND SHALL CONTINUE IN 3,367
EFFECT UNTIL SUCH TIME AS ANY OTHER REPLACEMENT TRANSITION PLAN 3,368
TAKES EFFECT PURSUANT TO A FINAL COMMISSION ORDER OR RESOLUTION 3,369
OF AN APPEAL. ANY INTERIM PLAN SO PRESCRIBED SHALL COMPLY WITH 3,370
THE APPLICABLE PROVISIONS OF SECTION 4928.34 OF THE REVISED CODE. 3,372
A FINAL COMMISSION ORDER SHALL PROVIDE FOR A RECONCILIATION OF
THOSE AMOUNTS DETERMINED IN THE FINAL ORDER RELATIVE TO DIVISION 3,373
(A) OF SECTION 4928.31 OF THE REVISED CODE AS COMPARED TO THE 3,374
INTERIM AMOUNTS AS DETERMINED UNDER THIS DIVISION. 3,375
(C) NO ELECTRIC UTILITY REQUIRED TO FILE A TRANSITION PLAN 3,377
UNDER SECTION 4928.31 OF THE REVISED CODE SHALL FAIL TO IMPLEMENT 3,378
A TRANSITION PLAN APPROVED OR PRESCRIBED FOR THE UTILITY BY A 3,379
COMMISSION ORDER ISSUED UNDER DIVISION (A) OR (B) OF THIS 3,380
SECTION. NO ELECTRIC UTILITY SHALL PROVIDE RETAIL ELECTRIC 3,381
SERVICE IN THIS STATE DURING THE MARKET DEVELOPMENT PERIOD EXCEPT 3,382
PURSUANT TO SUCH AN APPROVED OR PRESCRIBED TRANSITION PLAN. 3,383
Sec. 4928.34. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,385
NOT APPROVE OR PRESCRIBE A TRANSITION PLAN UNDER DIVISION (A) OR 3,386
(B) OF SECTION 4928.33 OF THE REVISED CODE UNLESS THE COMMISSION 3,388
FIRST MAKES ALL OF THE FOLLOWING DETERMINATIONS: 3,389
(1) THE UNBUNDLED COMPONENTS FOR THE ELECTRIC TRANSMISSION 3,391
COMPONENT OF RETAIL ELECTRIC SERVICE, AS SPECIFIED IN THE 3,392
UTILITY'S RATE UNBUNDLING PLAN REQUIRED BY DIVISION (A)(1) OF 3,394
SECTION 4928.31 OF THE REVISED CODE, EQUAL THE TARIFF RATES 3,395
DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION THAT ARE
IN EFFECT ON THE DATE OF THE APPROVAL OF THE TRANSITION PLAN 3,396
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AS EACH 3,397
82
SUCH RATE IS DETERMINED APPLICABLE TO EACH PARTICULAR CUSTOMER 3,399
CLASS BY THE COMMISSION.
(2) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,401
DISTRIBUTION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE 3,402
DIFFERENCE BETWEEN THE COSTS ATTRIBUTABLE TO THE UTILITY'S 3,403
TRANSMISSION AND DISTRIBUTION RATES AND CHARGES UNDER ITS 3,404
SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE EFFECTIVE DATE OF 3,405
THIS SECTION, BASED UPON THE RECORD IN THE MOST RECENT RATE 3,406
PROCEEDING OF THE UTILITY FOR WHICH THE UTILITY'S SCHEDULE WAS
ESTABLISHED, AND THE TARIFF RATES FOR ELECTRIC TRANSMISSION 3,408
SERVICE DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION AS 3,409
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION. 3,410
(3) ALL OTHER UNBUNDLED COMPONENTS REQUIRED BY THE 3,412
COMMISSION IN THE RATE UNBUNDLING PLAN EQUAL THE COSTS 3,413
ATTRIBUTABLE TO THE PARTICULAR SERVICE AS REFLECTED IN THE 3,414
UTILITY'S SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE 3,415
EFFECTIVE DATE OF THIS SECTION.
(4) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,417
GENERATION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE RESIDUAL 3,418
AMOUNT REMAINING AFTER THE DETERMINATION OF THE TRANSMISSION, 3,419
DISTRIBUTION, AND OTHER UNBUNDLED COMPONENTS. 3,420
(5) ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN 3,422
HAVE BEEN ADJUSTED TO REFLECT ANY RATE REDUCTIONS UNDER RATE 3,423
SETTLEMENTS IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION. 3,424
HOWEVER, ALL EARNINGS OBLIGATIONS, RESTRICTIONS, OR CAPS IMPOSED 3,425
ON AN ELECTRIC UTILITY IN A COMMISSION ORDER PRIOR TO THE 3,426
EFFECTIVE DATE OF THIS SECTION ARE VOID. 3,427
(6) SUBJECT TO DIVISION (A)(5) OF THIS SECTION, THE TOTAL 3,429
OF ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN ARE 3,431
CAPPED AND DO NOT EXCEED THE TOTAL OF ALL RATES AND CHARGES IN
EFFECT UNDER THE APPLICABLE BUNDLED SCHEDULE OF THE ELECTRIC 3,432
UTILITY PURSUANT TO SECTION 4905.30 OF THE REVISED CODE IN EFFECT 3,433
ON THE DAY BEFORE THE EFFECTIVE DATE OF THIS SECTION, INCLUDING 3,435
THE TRANSITION CHARGE DETERMINED UNDER SECTION 4928.40 OF THE 3,436
83
REVISED CODE, ANY CHANGES IN THE TAXATION OF ELECTRIC UTILITIES 3,437
AND RETAIL ELECTRIC SERVICE UNDER SUB. S.B. NO. 3 OF THE 123rd 3,439
GENERAL ASSEMBLY, THE UNIVERSAL SERVICE RIDER AUTHORIZED BY 3,441
SECTION 4928.51 OF THE REVISED CODE, AND THE TEMPORARY RIDER 3,442
AUTHORIZED BY SECTION 4928.61 OF THE REVISED CODE. FOR THE
PURPOSE OF THIS DIVISION, THE RATE CAP APPLICABLE TO A CUSTOMER 3,444
RECEIVING ELECTRIC SERVICE PURSUANT TO AN ARRANGEMENT APPROVED BY 3,446
THE COMMISSION UNDER SECTION 4905.31 OF THE REVISED CODE IS THE 3,447
TOTAL OF ALL RATES AND CHARGES IN EFFECT UNDER THE CONTRACT. 3,449
(7) THE RATE UNBUNDLING PLAN COMPLIES WITH ANY RULES 3,451
ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 3,452
OF THE REVISED CODE.
(8) THE CORPORATE SEPARATION PLAN REQUIRED BY DIVISION 3,454
(A)(2) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,455
SECTION 4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,456
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,458
CODE.
(9) ANY PLAN OR PLANS THE COMMISSION REQUIRES TO ADDRESS 3,460
OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,461
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,462
SERVICE COMPLY WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,463
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 3,464
(10) THE EMPLOYEE ASSISTANCE PLAN REQUIRED BY DIVISION 3,466
(A)(4) OF SECTION 4928.31 OF THE REVISED CODE SUFFICIENTLY 3,467
PROVIDES SEVERANCE, RETRAINING, EARLY RETIREMENT, RETENTION, 3,468
OUTPLACEMENT, AND OTHER ASSISTANCE FOR THE UTILITY'S EMPLOYEES 3,469
WHOSE EMPLOYMENT IS AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING
UNDER THIS CHAPTER. 3,471
(11) THE CONSUMER EDUCATION PLAN REQUIRED UNDER DIVISION 3,473
(A)(5) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,474
SECTION 4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,475
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,476
CODE.
(12) THE TRANSITION REVENUES FOR WHICH AN ELECTRIC UTILITY 3,478
84
IS AUTHORIZED A REVENUE OPPORTUNITY UNDER SECTIONS 4928.31 TO 3,480
4928.40 OF THE REVISED CODE ARE THE ALLOWABLE TRANSITION COSTS OF 3,481
THE UTILITY AS SUCH COSTS ARE DETERMINED BY THE COMMISSION 3,482
PURSUANT TO SECTION 4928.39 OF THE REVISED CODE, AND THE 3,483
TRANSITION CHARGES FOR THE CUSTOMER CLASSES OF THE UTILITY ARE 3,485
THE CHARGES DETERMINED PURSUANT TO SECTION 4928.40 OF THE REVISED 3,486
CODE.
(13) ANY INDEPENDENT TRANSMISSION PLAN INCLUDED IN THE 3,489
TRANSITION PLAN FILED UNDER SECTION 4928.31 OF THE REVISED CODE
REASONABLY COMPLIES WITH SECTION 4928.12 OF THE REVISED CODE AND 3,490
ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 3,492
4928.06 OF THE REVISED CODE, UNLESS THE COMMISSION, FOR GOOD 3,493
CAUSE SHOWN, AUTHORIZES THE UTILITY TO DEFER COMPLIANCE UNTIL AN 3,494
ORDER IS ISSUED UNDER DIVISION (G) OF SECTION 4928.35 OF THE 3,495
REVISED CODE.
(14) THE UTILITY IS IN COMPLIANCE WITH SECTIONS 4928.01 TO 3,497
4928.11 OF THE REVISED CODE AND ANY RULES OR ORDERS OF THE 3,498
COMMISSION ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,500
IN ADDITION, A TRANSITION PLAN APPROVED BY THE COMMISSION 3,502
UNDER SECTION 4928.33 OF THE REVISED CODE BUT NOT CONTAINING AN 3,503
APPROVED INDEPENDENT TRANSMISSION PLAN SHALL CONTAIN THE EXPRESS 3,504
CONDITIONS THAT THE UTILITY WILL COMPLY WITH AN ORDER ISSUED 3,505
UNDER DIVISION (G) OF SECTION 4928.35 OF THE REVISED CODE. 3,506
(B) SUBJECT TO DIVISION (E) OF SECTION 4928.17 OF THE 3,509
REVISED CODE, IF THE COMMISSION FINDS THAT ANY PART OF THE
TRANSITION PLAN WOULD CONSTITUTE AN ABANDONMENT UNDER SECTIONS 3,511
4905.20 AND 4905.21 OF THE REVISED CODE, THE COMMISSION SHALL NOT 3,512
APPROVE THAT PART OF THE TRANSITION PLAN UNLESS IT MAKES THE 3,513
FINDING REQUIRED FOR APPROVAL OF AN ABANDONMENT APPLICATION UNDER 3,514
SECTION 4905.21 OF THE REVISED CODE. SECTIONS 4905.20 AND 3,516
4905.21 OF THE REVISED CODE OTHERWISE SHALL NOT APPLY TO A 3,518
TRANSITION PLAN UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED 3,519
CODE.
Sec. 4928.35. (A) UPON APPROVAL OF ITS TRANSITION PLAN 3,521
85
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AN 3,522
ELECTRIC UTILITY SHALL FILE IN ACCORDANCE WITH SECTION 4905.30 OF 3,523
THE REVISED CODE SCHEDULES CONTAINING THE UNBUNDLED RATE 3,525
COMPONENTS SET IN THE APPROVED PLAN IN ACCORDANCE WITH SECTION 3,526
4928.34 OF THE REVISED CODE. THE SCHEDULES SHALL BE IN EFFECT
FOR THE DURATION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD, 3,527
SHALL BE SUBJECT TO THE CAP SPECIFIED IN DIVISION (A)(6) OF 3,528
SECTION 4928.34 OF THE REVISED CODE, AND SHALL NOT BE ADJUSTED 3,529
DURING THAT PERIOD BY THE PUBLIC UTILITIES COMMISSION EXCEPT AS 3,530
OTHERWISE AUTHORIZED BY DIVISION (B) OF THIS SECTION OR AS 3,531
OTHERWISE AUTHORIZED BY FEDERAL LAW. 3,532
(B) EFFORTS SHALL BE MADE TO REACH AGREEMENTS WITH 3,534
ELECTRIC UTILITIES IN MATTERS OF LITIGATION REGARDING PROPERTY 3,535
VALUATION ISSUES. IRRESPECTIVE OF THOSE EFFORTS, THE UNBUNDLED 3,536
COMPONENTS FOR AN ELECTRIC UTILITY'S RETAIL ELECTRIC GENERATION 3,537
SERVICE AND DISTRIBUTION SERVICE, AS PROVIDED IN DIVISION (A) OF 3,538
THIS SECTION, ARE NOT SUBJECT TO ADJUSTMENT FOR THE UTILITY'S 3,539
MARKET DEVELOPMENT PERIOD, EXCEPT THAT THE COMMISSION SHALL ORDER 3,540
AN EQUITABLE REDUCTION IN THOSE COMPONENTS FOR ALL CUSTOMER 3,541
CLASSES TO REFLECT ANY REFUND A UTILITY RECEIVES AS A RESULT OF 3,542
THE RESOLUTION OF UTILITY PERSONAL PROPERTY TAX VALUATION 3,543
LITIGATION THAT IS RESOLVED ON OR AFTER THE EFFECTIVE DATE OF 3,544
THIS SECTION AND PRIOR TO THE END OF THE MARKET DEVELOPMENT 3,545
PERIOD. IMMEDIATELY UPON THE ISSUANCE OF THAT ORDER, THE 3,546
ELECTRIC UTILITY SHALL FILE REVISED RATE SCHEDULES UNDER SECTION 3,547
4909.18 OF THE REVISED CODE TO EFFECT THE ORDER. 3,548
(C) THE SCHEDULE UNDER DIVISION (A) OF THIS SECTION 3,550
CONTAINING THE UNBUNDLED DISTRIBUTION COMPONENTS SHALL PROVIDE 3,552
THAT ELECTRIC DISTRIBUTION SERVICE UNDER THE SCHEDULE WILL BE 3,553
AVAILABLE TO ALL RETAIL ELECTRIC SERVICE CUSTOMERS IN THE 3,554
ELECTRIC UTILITY'S CERTIFIED TERRITORY AND THEIR SUPPLIERS ON A 3,555
NONDISCRIMINATORY AND COMPARABLE BASIS ON AND AFTER THE STARTING 3,556
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. THE SCHEDULE ALSO 3,557
SHALL INCLUDE AN OBLIGATION TO BUILD DISTRIBUTION FACILITIES WHEN 3,558
86
NECESSARY TO PROVIDE ADEQUATE DISTRIBUTION SERVICE, PROVIDED THAT 3,559
A CUSTOMER REQUESTING THAT SERVICE MAY BE REQUIRED TO PAY ALL OR 3,560
PART OF THE REASONABLE INCREMENTAL COST OF THE NEW FACILITIES, IN 3,561
ACCORDANCE WITH RULES, POLICY, PRECEDENTS, OR ORDERS OF THE 3,562
COMMISSION.
(D) DURING THE MARKET DEVELOPMENT PERIOD, AN ELECTRIC 3,564
DISTRIBUTION UTILITY SHALL PROVIDE CONSUMERS ON A COMPARABLE AND 3,565
NONDISCRIMINATORY BASIS WITHIN ITS CERTIFIED TERRITORY A STANDARD 3,567
SERVICE OFFER OF ALL COMPETITIVE RETAIL ELECTRIC SERVICES
NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC SERVICE TO CONSUMERS, 3,568
INCLUDING A FIRM SUPPLY OF ELECTRIC GENERATION SERVICE PRICED IN 3,569
ACCORDANCE WITH THE SCHEDULE CONTAINING THE UTILITY'S UNBUNDLED 3,570
GENERATION SERVICE COMPONENT. IMMEDIATELY UPON APPROVAL OF ITS 3,571
TRANSITION PLAN, THE UTILITY SHALL FILE THE STANDARD SERVICE 3,572
OFFER WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED 3,573
CODE. DURING THE MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 3,574
SUPPLIER TO DELIVER RETAIL ELECTRIC GENERATION SERVICE SHALL 3,575
RESULT IN THE SUPPLIER'S CUSTOMERS, AFTER REASONABLE NOTICE, 3,576
DEFAULTING TO THE UTILITY'S STANDARD SERVICE OFFER FILED UNDER 3,577
THIS DIVISION UNTIL THE CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. 3,578
A SUPPLIER IS DEEMED UNDER THIS SECTION TO HAVE FAILED TO DELIVER 3,579
SUCH SERVICE IF ANY OF THE CONDITIONS SPECIFIED IN DIVISIONS 3,580
(B)(1) TO (4) OF SECTION 4928.14 OF THE REVISED CODE IS MET. 3,581
(E) AN AMENDMENT OF A CORPORATE SEPARATION PLAN CONTAINED 3,583
IN A TRANSITION PLAN APPROVED BY THE COMMISSION UNDER SECTION 3,584
4928.33 OF THE REVISED CODE SHALL BE FILED AND APPROVED AS A 3,585
CORPORATE SEPARATION PLAN PURSUANT TO SECTION 4928.17 OF THE 3,586
REVISED CODE. 3,587
(F) ANY CHANGE TO AN ELECTRIC UTILITY'S OPPORTUNITY TO 3,589
RECEIVE TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED IN 3,590
ACCORDANCE WITH SECTION 4928.33 OF THE REVISED CODE SHALL BE 3,591
AUTHORIZED ONLY AS PROVIDED IN SECTIONS 4928.31 TO 4928.40 OF THE 3,592
REVISED CODE. 3,593
(G) THE COMMISSION, BY ORDER, SHALL REQUIRE EACH ELECTRIC 3,595
87
UTILITY WHOSE APPROVED TRANSITION PLAN DID NOT INCLUDE AN 3,596
INDEPENDENT TRANSMISSION PLAN AS DESCRIBED IN DIVISION (A)(13) OF 3,597
SECTION 4928.34 OF THE REVISED CODE TO BE A MEMBER OF, AND 3,598
TRANSFER CONTROL OF TRANSMISSION FACILITIES IT OWNS OR CONTROLS 3,599
IN THIS STATE TO, ONE OR MORE QUALIFYING TRANSMISSION ENTITIES, 3,600
AS DESCRIBED IN DIVISION (B) OF SECTION 4928.12 OF THE REVISED 3,601
CODE, THAT ARE PLANNED TO BE OPERATIONAL ON AND AFTER DECEMBER 3,602
31, 2005. THE COMMISSION'S ORDER MAY SPECIFY AN EARLIER DATE ON 3,604
WHICH THE TRANSMISSION ENTITY OR ENTITIES ARE PLANNED TO BE 3,605
OPERATIONAL IF THE COMMISSION CONSIDERS IT NECESSARY TO CARRY OUT 3,606
THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE OR TO 3,608
ENCOURAGE EFFECTIVE COMPETITION IN RETAIL ELECTRIC SERVICE IN 3,609
THIS STATE.
UPON THE ISSUANCE OF THE ORDER, EACH SUCH UTILITY SHALL 3,611
FILE WITH THE COMMISSION A PLAN FOR SUCH INDEPENDENT OPERATION OF 3,612
THE UTILITY'S TRANSMISSION FACILITIES CONSISTENT WITH THIS 3,613
DIVISION. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF ANY 3,614
SUBSTANTIALLY INADEQUATE PLAN SUBMITTED UNDER THIS DIVISION. 3,615
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, THE 3,617
COMMISSION SHALL APPROVE THE PLAN UPON A FINDING THAT THE PLAN 3,618
WILL RESULT IN THE UTILITY'S COMPLIANCE WITH THE ORDER, THIS 3,619
DIVISION, AND ANY RULES ADOPTED UNDER DIVISION (A) OF SECTION 3,620
4928.06 OF THE REVISED CODE. THE APPROVED INDEPENDENT 3,621
TRANSMISSION PLAN SHALL BE DEEMED A PART OF THE UTILITY'S 3,622
TRANSITION PLAN FOR PURPOSES OF SECTIONS 4928.31 TO 4928.40 OF 3,623
THE REVISED CODE.
Sec. 4928.36. THE PUBLIC UTILITIES COMMISSION HAS 3,625
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 3,626
COMPLAINT BY ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 3,628
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 3,629
ELECTRIC SERVICE, TO DETERMINE WHETHER AN ELECTRIC UTILITY HAS 3,630
FAILED TO IMPLEMENT, IN CONFORMANCE WITH AN ORDER UNDER SECTION 3,631
4928.33 OF THE REVISED CODE OR IN ONGOING COMPLIANCE WITH 3,633
APPLICABLE PROVISIONS OF THE POLICY SPECIFIED IN SECTION 4928.02
88
OF THE REVISED CODE, A TRANSITION PLAN APPROVED UNDER SECTION 3,634
4928.33 OF THE REVISED CODE. IF, AFTER REASONABLE NOTICE AND 3,636
OPPORTUNITY FOR HEARING AS PROVIDED IN SECTION 4905.26 OF THE 3,638
REVISED CODE, THE COMMISSION DETERMINES THAT THE UTILITY HAS 3,639
FAILED TO SO COMPLY, THE COMMISSION, IN ADDITION TO ANY OTHER 3,640
REMEDIES PROVIDED BY LAW, MAY USE THE REMEDIES SPECIFIED IN 3,641
DIVISIONS (C)(1) TO (3) AND (D)(1) AND (2) OF SECTION 4928.18 OF 3,642
THE REVISED CODE TO ENFORCE COMPLIANCE. 3,643
Sec. 4928.37. (A)(1) SECTIONS 4928.31 TO 4928.40 OF THE 3,645
REVISED CODE PROVIDE AN ELECTRIC UTILITY THE OPPORTUNITY TO 3,647
RECEIVE TRANSITION REVENUES THAT MAY ASSIST IT IN MAKING THE
TRANSITION TO A FULLY COMPETITIVE RETAIL ELECTRIC GENERATION 3,649
MARKET. AN ELECTRIC UTILITY FOR WHICH TRANSITION REVENUES ARE 3,650
APPROVED PURSUANT TO SECTIONS 4928.31 TO 4928.40 OF THE REVISED 3,651
CODE SHALL RECEIVE THOSE REVENUES THROUGH BOTH OF THE FOLLOWING 3,652
MECHANISMS BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 3,653
ELECTRIC SERVICE AND ENDING ON THE EXPIRATION DATE OF ITS MARKET 3,654
DEVELOPMENT PERIOD AS DETERMINED UNDER SECTION 4928.40 OF THE 3,655
REVISED CODE:
(a) PAYMENT OF UNBUNDLED RATES FOR RETAIL ELECTRIC 3,657
SERVICES BY EACH CUSTOMER THAT IS SUPPLIED RETAIL ELECTRIC 3,658
GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD BY THE 3,659
CUSTOMER'S ELECTRIC DISTRIBUTION UTILITY, WHICH RATES SHALL BE 3,660
SPECIFIED IN SCHEDULES FILED UNDER SECTION 4928.35 OF THE REVISED 3,661
CODE;
(b) PAYMENT OF A NONBYPASSABLE AND COMPETITIVELY NEUTRAL 3,663
TRANSITION CHARGE BY EACH CUSTOMER THAT IS SUPPLIED RETAIL 3,664
ELECTRIC GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD 3,665
BY AN ENTITY OTHER THAN THE CUSTOMER'S ELECTRIC DISTRIBUTION 3,666
UTILITY, AS SUCH TRANSITION CHARGE IS DETERMINED UNDER SECTION 3,667
4928.40 OF THE REVISED CODE. THE TRANSITION CHARGE SHALL BE 3,668
PAYABLE BY EACH SUCH RETAIL ELECTRIC DISTRIBUTION SERVICE 3,670
CUSTOMER IN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY FOR 3,671
WHICH THE TRANSITION REVENUES ARE APPROVED AND SHALL BE BILLED ON 3,672
89
EACH KILOWATT HOUR OF ELECTRICITY DELIVERED TO THE CUSTOMER BY 3,673
THE ELECTRIC DISTRIBUTION UTILITY AS REGISTERED ON THE CUSTOMER'S 3,674
METER DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD AS KILOWATT 3,676
HOUR IS DEFINED IN SECTION 4909.161 OF THE REVISED CODE. THE 3,677
TRANSITION CHARGE FOR EACH CUSTOMER CLASS SHALL REFLECT THE COST
ALLOCATION TO THAT CLASS AS PROVIDED UNDER BUNDLED RATES AND 3,678
CHARGES IN EFFECT ON THE DAY BEFORE THE EFFECTIVE DATE OF THIS 3,679
SECTION. ADDITIONALLY, AS REFLECTED IN SECTION 4928.39 OR 3,681
4928.40 OF THE REVISED CODE, THE TRANSITION CHARGES SHALL BE
STRUCTURED TO PROVIDE SHOPPING INCENTIVES TO CUSTOMERS SUFFICIENT 3,683
TO ENCOURAGE THE DEVELOPMENT OF EFFECTIVE COMPETITION IN THE 3,684
SUPPLY OF RETAIL ELECTRIC GENERATION SERVICE. TO THE EXTENT 3,685
POSSIBLE, THE LEVEL AND STRUCTURE OF THE TRANSITION CHARGE SHALL 3,687
BE DESIGNED TO AVOID REVENUE RESPONSIBILITY SHIFTS AMONG THE 3,688
UTILITY'S CUSTOMER CLASSES AND RATE SCHEDULES.
(2)(a) NOTWITHSTANDING DIVISION (A)(1)(b) OF THIS SECTION, 3,692
THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON ELECTRICITY 3,693
SUPPLIED BY A MUNICIPAL ELECTRIC UTILITY TO A RETAIL ELECTRIC 3,694
DISTRIBUTION SERVICE CUSTOMER IN THE CERTIFIED TERRITORY OF THE 3,696
ELECTRIC UTILITY FOR WHICH THE TRANSITION REVENUES ARE APPROVED, 3,697
IF THE MUNICIPAL ELECTRIC UTILITY PROVIDES ELECTRIC TRANSMISSION 3,698
OR DISTRIBUTION SERVICE, OR BOTH SERVICES, THROUGH TRANSMISSION 3,699
OR DISTRIBUTION FACILITIES SINGLY OR JOINTLY OWNED OR OPERATED BY 3,700
THE MUNICIPAL ELECTRIC UTILITY.
(b) THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON 3,702
ELECTRICITY SUPPLIED OR CONSUMED IN THIS STATE EXCEPT SUCH 3,703
ELECTRICITY AS IS DELIVERED TO A RETAIL CUSTOMER BY AN ELECTRIC 3,704
DISTRIBUTION UTILITY AND IS REGISTERED ON THE CUSTOMER'S METER 3,705
DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD.
(3) THE TRANSITION CHARGE SHALL NOT BE DISCOUNTED BY ANY 3,707
PARTY UNLESS THERE IS A DETERMINATION BY THE DEPARTMENT OF 3,708
DEVELOPMENT THAT SUCH A DISCOUNT IS PART OF AN APPROVED ECONOMIC 3,709
DEVELOPMENT PACKAGE INVOLVING STATE OR LOCAL FUNDING AND IS 3,710
NECESSARY FOR ECONOMIC DEVELOPMENT TO OCCUR WITHIN THIS STATE 3,711
90
INSTEAD OF ANOTHER STATE.
(4) NOTHING PREVENTS PAYMENT OF ALL OR PART OF THE 3,713
TRANSITION CHARGE BY ANOTHER PARTY ON A CUSTOMER'S BEHALF IF THAT 3,714
PAYMENT DOES NOT CONTRAVENE SECTIONS 4905.33 TO 4905.35 OF THE 3,715
REVISED CODE OR THIS CHAPTER. 3,716
(B) THE ELECTRIC UTILITY SHALL SEPARATELY ITEMIZE AND 3,718
DISCLOSE, OR CAUSE ITS BILLING AND COLLECTION AGENT TO SEPARATELY 3,719
ITEMIZE AND DISCLOSE, THE TRANSITION CHARGE ON THE CUSTOMER'S 3,720
BILL IN ACCORDANCE WITH REASONABLE SPECIFICATIONS THE COMMISSION 3,721
SHALL PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF 3,722
THE REVISED CODE.
Sec. 4928.38. PURSUANT TO A TRANSITION PLAN APPROVED UNDER 3,724
SECTION 4928.33 OF THE REVISED CODE, AN ELECTRIC UTILITY IN THIS 3,726
STATE MAY RECEIVE TRANSITION REVENUES UNDER SECTIONS 4928.31 TO 3,728
4928.40 OF THE REVISED CODE, BEGINNING ON THE STARTING DATE OF 3,730
COMPETITIVE RETAIL ELECTRIC SERVICE. EXCEPT AS PROVIDED IN
SECTIONS 4905.33 TO 4905.35 OF THE REVISED CODE AND THIS CHAPTER, 3,732
AN ELECTRIC UTILITY THAT RECEIVES SUCH TRANSITION REVENUES SHALL 3,733
BE WHOLLY RESPONSIBLE FOR HOW TO USE THOSE REVENUES AND WHOLLY 3,734
RESPONSIBLE FOR WHETHER IT IS IN A COMPETITIVE POSITION AFTER THE 3,735
MARKET DEVELOPMENT PERIOD. THE UTILITY'S RECEIPT OF TRANSITION 3,736
REVENUES SHALL TERMINATE AT THE END OF THE MARKET DEVELOPMENT 3,737
PERIOD. WITH THE TERMINATION OF THAT APPROVED REVENUE SOURCE, 3,738
THE UTILITY SHALL BE FULLY ON ITS OWN IN THE COMPETITIVE MARKET. 3,739
THE COMMISSION SHALL NOT AUTHORIZE THE RECEIPT OF TRANSITION 3,740
REVENUES OR ANY EQUIVALENT REVENUES BY AN ELECTRIC UTILITY EXCEPT 3,741
AS EXPRESSLY AUTHORIZED IN SECTIONS 4928.31 TO 4928.40 OF THE 3,742
REVISED CODE.
Sec. 4928.39. UPON THE FILING OF AN APPLICATION BY AN 3,744
ELECTRIC UTILITY UNDER SECTION 4928.31 OF THE REVISED CODE FOR 3,745
THE OPPORTUNITY TO RECEIVE TRANSITION REVENUES UNDER SECTIONS 3,746
4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC UTILITIES 3,747
COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE REVISED CODE, 3,748
SHALL DETERMINE THE TOTAL ALLOWABLE AMOUNT OF THE TRANSITION 3,749
91
COSTS OF THE UTILITY TO BE RECEIVED AS TRANSITION REVENUES UNDER 3,750
THOSE SECTIONS. SUCH AMOUNT SHALL BE THE JUST AND REASONABLE 3,751
TRANSITION COSTS OF THE UTILITY, WHICH COSTS THE COMMISSION FINDS 3,752
MEET ALL OF THE FOLLOWING CRITERIA: 3,753
(A) THE COSTS WERE PRUDENTLY INCURRED. 3,755
(B) THE COSTS ARE A LEGITIMATE AND VERIFIABLE RESULT OF 3,757
ELECTRIC RESTRUCTURING UNDER THIS CHAPTER. 3,758
(C) THE COSTS ARE UNRECOVERABLE IN A COMPETITIVE MARKET. 3,760
(D) THE COSTS ARE DIRECTLY ASSIGNABLE OR ALLOCABLE TO 3,762
RETAIL ELECTRIC GENERATION SERVICE PROVIDED TO CONSUMERS IN THIS 3,763
STATE.
TRANSITION COSTS UNDER THIS SECTION SHALL NOT INCLUDE THE 3,765
COSTS OF EMPLOYEE ASSISTANCE UNDER THE EMPLOYEE ASSISTANCE PLAN 3,766
INCLUDED IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER SECTION 3,767
4928.33 OF THE REVISED CODE.
FURTHER, IF REQUESTED IN THE APPLICATION, THE COMMISSION'S 3,769
ORDER UNDER THIS SECTION SHALL SEPARATELY IDENTIFY REGULATORY 3,770
ASSETS OF THE UTILITY THAT ARE A PART OF THE TOTAL ALLOWABLE 3,771
AMOUNT OF TRANSITION COSTS DETERMINED UNDER THIS SECTION AND 3,772
SEPARATELY IDENTIFY THAT PORTION OF A TRANSITION CHARGE
DETERMINED UNDER SECTION 4928.40 OF THE REVISED CODE THAT IS 3,773
ALLOCABLE TO THOSE ASSETS, WHICH PORTION OF A TRANSITION CHARGE 3,775
SHALL BE SUBJECT TO ADJUSTMENT ONLY PROSPECTIVELY AND AFTER THE 3,776
MIDPOINT OF THE MARKET DEVELOPMENT PERIOD. 3,777
THE ELECTRIC UTILITY SHALL HAVE THE BURDEN OF DEMONSTRATING 3,779
ALLOWABLE TRANSITION COSTS AS AUTHORIZED UNDER THIS SECTION. THE 3,780
COMMISSION MAY IMPOSE REASONABLE COMMITMENTS UPON THE UTILITY'S 3,781
COLLECTION OF THE TRANSITION REVENUES TO ENSURE THAT THOSE 3,782
REVENUES ARE USED TO ELIMINATE THE ALLOWABLE TRANSITION COSTS OF 3,783
THE UTILITY DURING THE MARKET DEVELOPMENT PERIOD AND ARE NOT 3,784
AVAILABLE FOR USE BY THE UTILITY TO ACHIEVE AN UNDUE COMPETITIVE 3,785
ADVANTAGE, OR TO IMPOSE AN UNDUE DISADVANTAGE, IN THE PROVISION 3,786
BY THE UTILITY OF REGULATED OR UNREGULATED PRODUCTS OR SERVICES. 3,787
Sec. 4928.40. (A) UPON DETERMINING UNDER SECTION 4928.39 3,789
92
OF THE REVISED CODE THE ALLOWABLE TRANSITION COSTS OF AN ELECTRIC 3,791
UTILITY AUTHORIZED FOR COLLECTION AS TRANSITION REVENUES UNDER
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC 3,792
UTILITIES COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE 3,793
REVISED CODE, SHALL ESTABLISH THE TRANSITION CHARGE FOR EACH 3,794
CUSTOMER CLASS OF THE ELECTRIC UTILITY AND, TO THE EXTENT 3,795
POSSIBLE, EACH RATE SCHEDULE WITHIN EACH SUCH CUSTOMER CLASS, 3,796
WITH ALL SUCH TRANSITION CHARGES BEING COLLECTED AS PROVIDED IN 3,798
DIVISION (A)(1)(b) OF SECTION 4928.37 OF THE REVISED CODE DURING
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 3,799
COMMISSION EXTENDS THE UTILITY'S MARKET DEVELOPMENT PERIOD FOR UP 3,801
TO FIVE YEARS, TO THE EXTENT THE COMMISSION DETERMINES NECESSARY 3,802
TO REDUCE THE LEVEL OF THE TRANSITION CHARGES APPLICABLE TO ANY 3,803
RATE SCHEDULE IN ORDER TO ENCOURAGE EFFECTIVE COMPETITION. 3,804
FACTORS THE COMMISSION SHALL CONSIDER IN PRESCRIBING THE 3,806
EXPIRATION DATE OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AND 3,807
THE TRANSITION CHARGE FOR EACH CUSTOMER CLASS AND RATE SCHEDULE 3,808
OF THE UTILITY INCLUDE, BUT ARE NOT LIMITED TO, THE TOTAL 3,809
ALLOWABLE AMOUNT OF TRANSITION COSTS OF THE ELECTRIC UTILITY AS 3,810
DETERMINED UNDER SECTION 4928.39 OF THE REVISED CODE; THE 3,811
RELEVANT MARKET PRICE FOR THE DELIVERED SUPPLY OF ELECTRICITY TO 3,812
CUSTOMERS IN THAT CUSTOMER CLASS AND, TO THE EXTENT POSSIBLE, IN 3,813
EACH RATE SCHEDULE AS DETERMINED BY THE COMMISSION; AND SUCH 3,814
SHOPPING INCENTIVES BY CUSTOMER CLASS AS ARE CONSIDERED NECESSARY 3,815
TO INDUCE, AT THE MINIMUM, A TWENTY PER CENT LOAD SWITCHING RATE
BY CUSTOMER CLASS HALFWAY THROUGH THE UTILITY'S MARKET 3,816
DEVELOPMENT PERIOD BUT NOT LATER THAN DECEMBER 31, 2003. IN NO 3,817
CASE SHALL THE COMMISSION ESTABLISH A SHOPPING INCENTIVE IN AN 3,818
AMOUNT EXCEEDING THE UNBUNDLED COMPONENT FOR RETAIL ELECTRIC 3,819
GENERATION SERVICE SET IN THE UTILITY'S APPROVED TRANSITION PLAN 3,820
UNDER SECTION 4928.33 OF THE REVISED CODE, AND IN NO CASE SHALL 3,822
THE COMMISSION ESTABLISH A TRANSITION CHARGE IN AN AMOUNT LESS 3,823
93
THAN ZERO.
(B) THE COMMISSION MAY CONDUCT A PERIODIC REVIEW NO MORE 3,825
OFTEN THAN ANNUALLY AND, AS IT DETERMINES NECESSARY, ADJUST THE 3,827
TRANSITION CHARGES OF THE ELECTRIC UTILITY AS INITIALLY 3,828
ESTABLISHED UNDER DIVISION (A) OF THIS SECTION OR SUBSEQUENTLY 3,829
ADJUSTED UNDER THIS DIVISION. ANY SUCH ADJUSTMENT SHALL BE IN 3,830
ACCORDANCE WITH DIVISION (A) OF THIS SECTION AND MAY REFLECT 3,831
CHANGES IN THE RELEVANT MARKET. 3,832
(C) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE 3,834
COMMISSION SHALL ISSUE AN ORDER UNDER SECTION 4928.33 OF THE 3,836
REVISED CODE APPROVING A TRANSITION PLAN FOR AN ELECTRIC UTILITY 3,837
THAT CONTAINS A RATE REDUCTION FOR RESIDENTIAL CUSTOMERS OF THAT 3,838
UTILITY, PROVIDED THAT THE RATE REDUCTION SHALL NOT INCREASE THE 3,839
RATES OR TRANSITION COST RESPONSIBILITY OF ANY OTHER CUSTOMER 3,840
CLASS OF THE UTILITY. THE RATE REDUCTION SHALL BE IN EFFECT ONLY 3,841
FOR SUCH PORTION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AS 3,842
THE COMMISSION SHALL SPECIFY AND SHALL BE APPLIED TO THE 3,843
UNBUNDLED GENERATION COMPONENT FOR RETAIL ELECTRIC GENERATION 3,844
SERVICE AS SET IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER 3,845
SECTION 4928.33 OF THE REVISED CODE SUBJECT TO THE PRICE CAP FOR
RESIDENTIAL CUSTOMERS REQUIRED UNDER DIVISION (A)(6) OF SECTION 3,846
4928.34 OF THE REVISED CODE. THE AMOUNT OF THE RATE REDUCTION 3,847
SHALL BE FIVE PER CENT OF THE AMOUNT OF THAT UNBUNDLED GENERATION 3,849
COMPONENT, BUT SHALL NOT UNDULY DISCOURAGE MARKET ENTRY BY 3,850
ALTERNATIVE SUPPLIERS SEEKING TO SERVE THE RESIDENTIAL MARKET IN 3,851
THIS STATE. THE COMMISSION, AFTER REASONABLE NOTICE AND 3,852
OPPORTUNITY FOR HEARING, MAY TERMINATE THE RATE REDUCTION BY 3,853
ORDER UPON A FINDING THAT THE RATE REDUCTION IS UNDULY 3,854
DISCOURAGING MARKET ENTRY BY SUCH ALTERNATIVE SUPPLIERS. NO SUCH 3,855
TERMINATION OF THE RATE REDUCTION SHALL TAKE EFFECT PRIOR TO THE 3,856
MIDPOINT OF THE UTILITY'S MARKET DEVELOPMENT PERIOD.
(D) BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 3,858
ELECTRIC SERVICE, NO ELECTRIC UTILITY IN THIS STATE SHALL 3,859
PROHIBIT THE RESALE OF ELECTRIC GENERATION SERVICE OR IMPOSE 3,860
94
UNREASONABLE OR DISCRIMINATORY CONDITIONS OR LIMITATIONS ON THE 3,861
RESALE OF ELECTRIC GENERATION SERVICE. 3,862
Sec. 4928.41. THE TRANSITION REVENUE AUTHORITY PROVIDED 3,864
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE FOR 3,865
ELECTRIC UTILITIES DOES NOT AFFECT THE AUTHORITY OF AN ELECTRIC 3,866
COOPERATIVE IN THIS STATE TO RECEIVE TRANSITION REVENUES. 3,867
Sec. 4928.42. PRIOR TO THE STARTING DATE OF COMPETITIVE 3,869
RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES COMMISSION, IN 3,870
CONSULTATION WITH THE CONSUMERS' COUNSEL AND WITH OTHER STATE 3,871
AGENCIES AS CONSIDERED NECESSARY, SHALL PRESCRIBE AND ADOPT BY 3,872
ORDER A GENERAL PLAN BY WHICH EACH ELECTRIC UTILITY SHALL PROVIDE 3,873
DURING ITS MARKET DEVELOPMENT PERIOD CONSUMER EDUCATION ON 3,874
ELECTRIC RESTRUCTURING UNDER THIS CHAPTER. THE GENERAL PLAN 3,875
SHALL REQUIRE THE UTILITIES TO SPEND ON SUCH CONSUMER EDUCATION 3,876
WITHIN THEIR RESPECTIVE CERTIFIED SERVICE TERRITORIES IN THE 3,877
AGGREGATE UP TO SIXTEEN MILLION DOLLARS IN THE FIRST YEAR OF THAT 3,878
PERIOD AND AN ADDITIONAL SEVENTEEN MILLION DOLLARS IN THE 3,879
AGGREGATE IN DECREASING AMOUNTS OVER THE REMAINING YEARS OF EACH 3,880
UTILITY'S MARKET DEVELOPMENT PERIOD, WITH THE AGGREGATE AMOUNTS 3,881
DIVIDED AMONG THE UTILITIES BASED ON THEIR RESPECTIVE NUMBER OF 3,882
CUSTOMERS AS OF DECEMBER 31, 1997. THE GENERAL PLAN SHALL 3,883
PROHIBIT SUCH CONSUMER EDUCATION FROM OCCURRING IN COMBINATION 3,884
WITH MARKETING FOR THE UTILITY'S OR ITS AFFILIATE'S RETAIL 3,885
ELECTRIC SERVICES.
Sec. 4928.43. EACH STATE AGENCY THAT PROVIDES EMPLOYMENT 3,887
ASSISTANCE AND JOB TRAINING PROGRAMS, INCLUDING THE BUREAU OF 3,888
EMPLOYMENT SERVICES AND THE DEPARTMENT OF DEVELOPMENT, SHALL 3,889
PROVIDE CONCENTRATED ATTENTION THROUGH THOSE PROGRAMS TO 3,890
ASSISTING EMPLOYEES WHOSE EMPLOYMENT IN ELECTRIC 3,891
GENERATION-RELATED ACTIVITIES AND OTHER RELATED AREAS IS AFFECTED 3,892
BY ELECTRIC INDUSTRY RESTRUCTURING UNDER THIS CHAPTER. 3,893
Sec. 4928.44. (A) THE PUBLIC UTILITIES COMMISSION MAY 3,895
DETERMINE, BY ORDER AND AFTER REASONABLE NOTICE AND OPPORTUNITY 3,896
FOR HEARING, THAT CUSTOMERS THAT ARE NONFIRM ELECTRIC SERVICE 3,897
95
CUSTOMERS OF ELECTRIC UTILITIES ON THE EFFECTIVE DATE OF THIS 3,898
SECTION WOULD BE ASSISTED BY THE IMPLEMENTATION BY EACH SUCH 3,899
UTILITY OF A SERVICE SCHEDULE THAT COMPLIES WITH DIVISION (C) OF 3,900
THIS SECTION. IN THE ORDER, THE COMMISSION SHALL SPECIFY THE 3,901
PERIOD OF TIME, ENDING NOT LATER THAN DECEMBER 31, 2005, DURING 3,902
WHICH THE SERVICE OFFERING WOULD BE AVAILABLE TO ANY SUCH NONFIRM 3,903
ELECTRIC SERVICE CUSTOMERS OR A GROUP OF SUCH CUSTOMERS. UPON 3,904
THE ISSUANCE OF THE ORDER, ANY SUCH NONFIRM ELECTRIC SERVICE 3,905
CUSTOMER OR A GROUP OF SUCH CUSTOMERS SHALL BE, FOR THE PURPOSES 3,906
OF THIS SECTION, ELIGIBLE CUSTOMERS IN EACH ELECTRIC UTILITY'S 3,907
TRANSMISSION TARIFF SUBJECT TO THE JURISDICTION OF THE FEDERAL 3,908
ENERGY REGULATORY COMMISSION FOR THE PERIOD SPECIFIED IN THE 3,909
ORDER, AND EACH ELECTRIC UTILITY WITH NONFIRM CUSTOMERS SHALL 3,910
FILE A SERVICE SCHEDULE PURSUANT TO SECTION 4909.18 OF THE 3,911
REVISED CODE TO EFFECTUATE THIS SERVICE OFFERING. 3,912
(B) THE SERVICE SCHEDULE AUTHORIZED UNDER DIVISION (A) OF 3,914
THIS SECTION, FOR THE PERIOD ENDING NOT LATER THAN DECEMBER 31, 3,915
2005, AS SPECIFIED IN THE COMMISSION'S ORDER UNDER THAT DIVISION, 3,916
SHALL PROVIDE FOR BOTH OF THE FOLLOWING: 3,917
(1) FOR SERVICE AND BILLING PURPOSES, CONJUNCTIVE METERING 3,919
FOR A GROUP OF CUSTOMERS THAT ARE NONFIRM CUSTOMERS ON THE 3,920
EFFECTIVE DATE OF THIS SECTION; 3,921
(2) DIRECT, COMPARABLE AND NONDISCRIMINATORY ACCESS TO THE 3,923
TRANSMISSION AND DISTRIBUTION SERVICES, CAPACITIES, FUNCTIONS, 3,924
AND FACILITIES OF THE ELECTRIC UTILITY BY ANY CUSTOMER THAT IS A 3,925
NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE OF THIS 3,926
SECTION OR BY A GROUP OF ANY SUCH CUSTOMERS, FOR THE PURPOSE OF 3,927
SECURING FROM A SUPPLIER OR SUPPLIERS OF THE CUSTOMER'S OR 3,928
GROUP'S CHOICE ALL OR A PORTION OF THE CUSTOMER'S OR GROUP'S 3,929
ELECTRIC POWER AND ENERGY REQUIREMENTS IN EXCESS OF ANY 3,930
REQUIREMENTS SUPPLIED BY AN ELECTRIC UTILITY ON A FIRM BASIS. 3,931
THE FAILURE OF AN ELECTRIC UTILITY TO FILE SUCH SCHEDULE 3,933
CONSTITUTES INADEQUATE SERVICE UNDER TITLE XLIX OF THE REVISED 3,934
CODE.
96
(C) THE SERVICE OFFERING AUTHORIZED PURSUANT TO THIS 3,936
SECTION SHALL BE IN ADDITION TO ANY SERVICE OPTIONS OTHERWISE 3,937
AVAILABLE TO A NONFIRM ELECTRIC SERVICE CUSTOMER OR GROUP OF 3,938
NONFIRM ELECTRIC SERVICE CUSTOMERS. IF A CUSTOMER THAT IS A 3,939
NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE OF THIS 3,940
SECTION OR A GROUP OF SUCH CUSTOMERS ELECTS TO MEET ALL OR A 3,941
PORTION OF THE CUSTOMER'S OR GROUP'S ELECTRIC POWER AND ENERGY 3,942
REQUIREMENTS NOT SERVED BY AN ELECTRIC UTILITY DURING A TIME OF 3,943
NONEMERGENCY CURTAILMENT OR INTERRUPTION IN EXCESS OF ANY 3,944
REQUIREMENTS SUPPLIED BY AN ELECTRIC UTILITY ON A FIRM BASIS, BY 3,945
PURCHASING ELECTRICITY AND RELATED SERVICES FROM A SUPPLIER OR 3,946
SUPPLIERS OTHER THAN THAT ELECTRIC UTILITY, ANY EXISTING SERVICE 3,947
ARRANGEMENT UNDER SECTION 4905.31 OF THE REVISED CODE OR ANY
EXISTING SCHEDULE UNDER SECTION 4905.30 OF THE REVISED CODE SHALL 3,949
BE MODIFIED TO PERMIT THIS ELECTION TO OCCUR WITHOUT ECONOMIC 3,950
PENALTY AND TO FACILITATE THE CUSTOMER'S OR GROUP'S ACCESS TO THE 3,951
ELECTRIC MARKET FOR THE PURPOSE OF MANAGING SUPPLY AND PRICE 3,952
VOLATILITY RISKS.
(D) NOTHING IN DIVISIONS (A) TO (C) OF THIS SECTION 3,954
AFFECTS ANY OBLIGATION OF AN ELECTRIC UTILITY TO CURTAIL OR 3,955
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 3,956
THE CURTAILMENT OR INTERRUPTION. NOTHING IN THOSE DIVISIONS 3,957
SHALL BE CONSTRUED OR APPLIED TO INCREASE RATES AND CHARGES FOR 3,958
FIRM ELECTRIC SERVICE CUSTOMERS INCLUDING RESIDENTIAL FIRM 3,959
ELECTRIC SERVICE CUSTOMERS.
Sec. 4928.51. (A) THERE IS HEREBY ESTABLISHED IN THE 3,961
STATE TREASURY A UNIVERSAL SERVICE FUND, INTO WHICH SHALL BE 3,962
DEPOSITED ALL UNIVERSAL SERVICE REVENUES REMITTED TO THE DIRECTOR 3,963
OF DEVELOPMENT UNDER THIS SECTION, FOR THE EXCLUSIVE PURPOSES OF 3,964
PROVIDING FUNDING FOR THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS 3,965
AND FOR THE CONSUMER EDUCATION PROGRAM AUTHORIZED UNDER SECTION 3,966
4928.56 OF THE REVISED CODE, AND PAYING THE ADMINISTRATIVE COSTS 3,967
97
OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 3,968
EDUCATION PROGRAM. INTEREST ON THE FUND SHALL BE CREDITED TO THE 3,969
FUND. DISBURSEMENTS FROM THE FUND SHALL BE MADE TO ANY SUPPLIER 3,970
THAT PROVIDES A COMPETITIVE RETAIL ELECTRIC SERVICE TO A CUSTOMER 3,971
WHO IS APPROVED TO RECEIVE ASSISTANCE UNDER A SPECIFIED 3,972
LOW-INCOME CUSTOMER ASSISTANCE PROGRAM AND TO ANY AUTHORIZED 3,973
PROVIDER OF WEATHERIZATION OR ENERGY EFFICIENCY SERVICE TO A 3,974
CUSTOMER APPROVED TO RECEIVE SUCH ASSISTANCE UNDER A SPECIFIED 3,975
LOW-INCOME CUSTOMER ASSISTANCE PROGRAM. 3,976
(B) UNIVERSAL SERVICE REVENUES SHALL INCLUDE ALL OF THE 3,978
FOLLOWING: 3,979
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 3,981
AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 2000, 3,982
ATTRIBUTABLE TO THE COLLECTION FROM CUSTOMERS OF THE UNIVERSAL 3,984
SERVICE RIDER PRESCRIBED UNDER SECTION 4928.52 OF THE REVISED 3,985
CODE;
(2) REVENUES REMITTED TO THE DIRECTOR THAT HAVE BEEN 3,987
COLLECTED BY AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 3,988
2000, AS CUSTOMER PAYMENTS UNDER THE PERCENTAGE OF INCOME PAYMENT 3,990
PLAN PROGRAM, INCLUDING REVENUES REMITTED UNDER DIVISION (C) OF 3,991
THIS SECTION;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 3,993
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 3,994
COOPERATIVE IN THIS STATE NOT EARLIER THAN JULY 1, 2000, UPON THE 3,996
UTILITY'S OR COOPERATIVE'S DECISION TO PARTICIPATE IN THE 3,997
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS.
(C) BEGINNING JULY 1, 2000, AN ELECTRIC DISTRIBUTION 3,999
UTILITY SHALL TRANSFER TO THE DIRECTOR THE RIGHT TO COLLECT ALL 4,001
ARREARAGE PAYMENTS OF A CUSTOMER FOR PERCENTAGE OF INCOME PAYMENT 4,002
PLAN PROGRAM DEBT OWED TO THE UTILITY ON THE DAY BEFORE THAT DATE 4,003
OR RETAIN THE RIGHT TO COLLECT THAT DEBT BUT REMIT TO THE 4,004
DIRECTOR ALL PROGRAM REVENUES RECEIVED BY THE UTILITY FOR THAT 4,005
CUSTOMER.
(D) THE PUBLIC UTILITIES COMMISSION SHALL COMPLETE AN 4,007
98
AUDIT OF EACH ELECTRIC UTILITY BY JULY 1, 2000, FOR THE PURPOSE 4,008
OF ESTABLISHING A BASELINE FOR THE PERCENTAGE OF INCOME PAYMENT 4,009
PLAN PROGRAM COMPONENT OF THE LOW-INCOME ASSISTANCE PROGRAMS. 4,010
Sec. 4928.52. (A) BEGINNING JULY 1,2000, THE UNIVERSAL 4,012
SERVICE RIDER SHALL REPLACE THE PERCENTAGE OF INCOME PAYMENT PLAN 4,014
RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION AND ANY 4,016
AMOUNT IN THE RATES OF AN ELECTRIC UTILITY FOR THE FUNDING OF 4,017
LOW-INCOME ENERGY EFFICIENCY PROGRAMS. THE UNIVERSAL SERVICE
RIDER SHALL BE A RIDER ON RETAIL ELECTRIC DISTRIBUTION SERVICE 4,020
RATES AS SUCH RATES ARE DETERMINED BY THE PUBLIC UTILITIES 4,021
COMMISSION PURSUANT TO THIS CHAPTER. THE UNIVERSAL SERVICE RIDER 4,022
FOR THE FIRST FIVE YEARS AFTER THE STARTING DATE OF COMPETITIVE 4,023
RETAIL ELECTRIC SERVICE SHALL BE THE SUM OF ALL OF THE FOLLOWING: 4,024
(1) THE LEVEL OF THE PERCENTAGE OF INCOME PAYMENT PLAN 4,026
PROGRAM RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION; 4,027
(2) AN AMOUNT EQUAL TO THE LEVEL OF FUNDING FOR LOW-INCOME 4,029
CUSTOMER ENERGY EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC 4,030
UTILITY RATES IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION; 4,031
(3) ANY ADDITIONAL AMOUNT NECESSARY AND SUFFICIENT TO FUND 4,033
THROUGH THE UNIVERSAL SERVICE RIDER THE ADMINISTRATIVE COSTS OF 4,034
THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,035
EDUCATION PROGRAM CREATED IN SECTION 4928.56 OF THE REVISED CODE. 4,036
(B) IF, DURING OR AFTER THE FIVE-YEAR PERIOD SPECIFIED IN 4,038
DIVISION (A) OF THIS SECTION, THE DIRECTOR OF DEVELOPMENT, AFTER 4,040
CONSULTATION WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED 4,041
UNDER SECTION 4928.58 OF THE REVISED CODE, DETERMINES THAT 4,042
REVENUES IN THE UNIVERSAL SERVICE FUND AND REVENUES FROM FEDERAL 4,044
OR OTHER SOURCES OF FUNDING FOR THOSE PROGRAMS, INCLUDING GENERAL 4,046
REVENUE FUND APPROPRIATIONS FOR THE OHIO ENERGY CREDIT PROGRAM, 4,047
WILL BE INSUFFICIENT TO COVER THE ADMINISTRATIVE COSTS OF THE 4,048
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER
EDUCATION PROGRAM AND PROVIDE ADEQUATE FUNDING FOR THOSE 4,049
PROGRAMS, THE DIRECTOR SHALL FILE A PETITION WITH THE COMMISSION 4,050
FOR AN INCREASE IN THE UNIVERSAL SERVICE RIDER. THE COMMISSION, 4,051
99
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, MAY ADJUST 4,052
THE UNIVERSAL SERVICE RIDER BY THE MINIMUM AMOUNT NECESSARY TO 4,053
PROVIDE THE ADDITIONAL REVENUES. THE COMMISSION SHALL NOT 4,054
DECREASE THE UNIVERSAL SERVICE RIDER WITHOUT THE APPROVAL OF THE 4,055
DIRECTOR, AFTER CONSULTATION BY THE DIRECTOR WITH THE ADVISORY 4,056
BOARD.
(C) THE UNIVERSAL SERVICE RIDER ESTABLISHED UNDER DIVISION 4,058
(A) OR (B) OF THIS SECTION SHALL BE SET IN SUCH A MANNER SO AS 4,060
NOT TO SHIFT AMONG THE CUSTOMER CLASSES OF ELECTRIC DISTRIBUTION 4,061
UTILITIES THE COSTS OF FUNDING LOW-INCOME CUSTOMER ASSISTANCE 4,063
PROGRAMS.
Sec. 4928.53. (A) BEGINNING JULY 1, 2000, THE DIRECTOR OF 4,066
DEVELOPMENT IS HEREBY AUTHORIZED TO ADMINISTER THE LOW-INCOME 4,067
CUSTOMER ASSISTANCE PROGRAMS. FOR THAT PURPOSE, THE TAX 4,068
COMMISSIONER AND THE PUBLIC UTILITIES COMMISSION SHALL COOPERATE 4,069
WITH AND PROVIDE SUCH ASSISTANCE AS THE DIRECTOR REQUIRES FOR 4,070
ADMINISTRATION OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. 4,071
THE DIRECTOR SHALL CONSOLIDATE THE ADMINISTRATION OF AND REDESIGN 4,073
AND COORDINATE THE OPERATIONS OF THOSE PROGRAMS WITHIN THE
DEPARTMENT TO PROVIDE, TO THE MAXIMUM EXTENT POSSIBLE, FOR 4,075
EFFICIENT PROGRAM ADMINISTRATION AND A ONE-STOP APPLICATION AND 4,076
ELIGIBILITY DETERMINATION PROCESS AT THE LOCAL LEVEL FOR 4,077
CONSUMERS.
(B)(1) NOT LATER THAN MARCH 1, 2000, THE DIRECTOR, IN 4,079
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, SHALL ADOPT 4,081
RULES TO CARRY OUT SECTIONS 4928.51 TO 4928.58 OF THE REVISED 4,083
CODE AND ENSURE THE EFFECTIVE AND EFFICIENT ADMINISTRATION AND 4,085
OPERATION OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE 4,086
RULES SHALL TAKE EFFECT ON THE JULY 1, 2000. 4,087
(2) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,090
DIVISION FOR THE OHIO ENERGY CREDIT PROGRAM SHALL BE SUBJECT TO 4,091
SUCH RULE-MAKING AUTHORITY AS IS CONFERRED ON THE DIRECTOR BY 4,092
SECTIONS 5117.01 TO 5117.12 OF THE REVISED CODE, AS AMENDED BY 4,093
SUB. S.B. NO. 3 OF THE 123rd GENERAL ASSEMBLY, EXCEPT THAT RULES 4,095
100
INITIALLY ADOPTED BY THE DIRECTOR FOR THE OHIO ENERGY CREDIT 4,096
PROGRAM SHALL INCORPORATE THE SUBSTANCE OF THOSE SECTIONS AS THEY 4,097
EXIST ON THE EFFECTIVE DATE OF THIS SECTION. 4,098
(3) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,100
DIVISION FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL 4,101
INCLUDE AUTHORITY TO ADOPT RULES PRESCRIBING CRITERIA FOR 4,102
CUSTOMER ELIGIBILITY AND POLICIES REGARDING PAYMENT AND CREDITING 4,103
ARRANGEMENTS AND RESPONSIBILITIES, PROCEDURES FOR VERIFYING 4,104
CUSTOMER ELIGIBILITY, PROCEDURES FOR DISBURSING PUBLIC FUNDS TO 4,105
SUPPLIERS AND OTHERWISE ADMINISTERING FUNDS UNDER THE DIRECTOR'S 4,106
JURISDICTION, AND REQUIREMENTS AS TO TIMELY REMITTANCES OF 4,107
REVENUES DESCRIBED IN DIVISION (B) OF SECTION 4928.51 OF THE 4,108
REVISED CODE. THE DIRECTOR'S AUTHORITY IN DIVISION (B)(3) OF 4,109
THIS SECTION EXCLUDES AUTHORITY TO PRESCRIBE SERVICE 4,112
DISCONNECTION AND CUSTOMER BILLING POLICIES AND PROCEDURES AND TO 4,113
ADDRESS COMPLAINTS AGAINST SUPPLIERS UNDER THE PERCENTAGE OF 4,114
PAYMENT PLAN PROGRAM, WHICH EXCLUDED AUTHORITY SHALL BE EXERCISED 4,115
BY THE PUBLIC UTILITIES COMMISSION, IN COORDINATION WITH THE 4,116
DIRECTOR. RULES INITIALLY ADOPTED BY THE DIRECTOR FOR THE 4,117
PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL INCORPORATE THE 4,118
ELIGIBILITY CRITERIA AND PAYMENT ARRANGEMENT AND RESPONSIBILITY 4,119
POLICIES SET FORTH IN RULE 4901:1-18-04(B) OF THE OHIO 4,121
ADMINISTRATIVE CODE IN EFFECT ON THE EFFECTIVE DATE OF THIS 4,122
SECTION.
Sec. 4928.54. BEGINNING ON THE STARTING DATE OF 4,124
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,125
MAY AGGREGATE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM CUSTOMERS 4,126
FOR THE PURPOSE OF COMPETITIVELY AUCTIONING THE SUPPLY OF 4,127
COMPETITIVE RETAIL ELECTRIC GENERATION SERVICE TO BIDDERS 4,128
CERTIFIED UNDER SECTION 4928.08 OF THE REVISED CODE AND FURTHER
QUALIFIED UNDER ELIGIBILITY CRITERIA THE DIRECTOR PRESCRIBES BY 4,130
RULE UNDER DIVISION (B) OF SECTION 4928.53 OF THE REVISED CODE 4,131
AFTER CONSULTATION WITH THE COMMISSION AND ELECTRIC LIGHT 4,132
COMPANIES REGARDING ANY SUCH RULE. THE OBJECTIVES OF THE AUCTION 4,133
101
SHALL BE TO PROVIDE RELIABLE RETAIL ELECTRIC GENERATION SERVICE 4,134
TO CUSTOMERS, BASED ON SELECTION CRITERIA THAT THE WINNING BID 4,135
PROVIDE THE LOWEST COST AND BEST VALUE TO CUSTOMERS. THE RULES
ADOPTED BY THE DIRECTOR UNDER DIVISION (B) OF SECTION 4928.53 OF 4,137
THE REVISED CODE SHALL ENSURE A FAIR AND UNBIASED AUCTION PROCESS 4,138
AND THE PERFORMANCE OF ANY WINNING BIDDER.
Sec. 4928.55. THE DIRECTOR OF DEVELOPMENT SHALL ESTABLISH 4,141
AN ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM TARGETED TO 4,142
HIGH-COST, HIGH-VOLUME USE STRUCTURES OCCUPIED BY CUSTOMERS 4,144
ELIGIBLE FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM, WITH 4,145
THE GOAL TO REDUCING THE ENERGY BILLS OF THE OCCUPANTS. 4,146
ACCEPTANCE OF ENERGY EFFICIENCY AND WEATHERIZATION SERVICES 4,147
PROVIDED BY THE PROGRAM SHALL BE A CONDITION FOR THE ELIGIBILITY 4,148
OF ANY SUCH CUSTOMER TO PARTICIPATE IN THE PERCENTAGE OF INCOME 4,149
PAYMENT PLAN PROGRAM. ANY DIFFERENCE BETWEEN UNIVERSAL SERVICE 4,150
FUND REVENUES UNDER SECTION 4928.51 OF THE REVISED CODE AND ANY
SAVINGS IN PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM COSTS AS A 4,152
RESULT OF COMPETITIVE AUCTIONING UNDER SECTION 4928.54 OF THE 4,153
REVISED CODE SHALL BE REINVESTED IN THE TARGETED ENERGY 4,154
EFFICIENCY AND WEATHERIZATION PROGRAM.
Sec. 4928.56. THE DIRECTOR OF DEVELOPMENT MAY ADOPT RULES 4,156
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE ESTABLISHING 4,158
AN EDUCATION PROGRAM FOR CONSUMERS ELIGIBLE TO PARTICIPATE IN THE 4,159
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE EDUCATION PROGRAM 4,160
SHALL PROVIDE INFORMATION TO CONSUMERS REGARDING ENERGY 4,162
EFFICIENCY AND ENERGY CONSERVATION.
Sec. 4928.57. ON AND AFTER THE STARTING DATE OF 4,164
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,165
SHALL PROVIDE A REPORT EVERY TWO YEARS UNTIL 2008 TO THE STANDING 4,166
COMMITTEES OF THE GENERAL ASSEMBLY THAT DEAL WITH PUBLIC UTILITY 4,168
MATTERS, REGARDING THE EFFECTIVENESS OF THE LOW-INCOME CUSTOMER
ASSISTANCE PROGRAMS AND THE CONSUMER EDUCATION PROGRAM, AND THE 4,170
EFFECTIVENESS OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,171
CREATED UNDER SECTIONS 4928.61 TO 4928.63 OF THE REVISED CODE. 4,172
102
Sec. 4928.58. (A) THERE IS HEREBY CREATED THE PUBLIC 4,174
BENEFITS ADVISORY BOARD, WHICH HAS THE PURPOSE OF ENSURING THAT 4,175
ENERGY SERVICES BE PROVIDED TO LOW-INCOME CONSUMERS IN THIS STATE 4,177
IN AN AFFORDABLE MANNER CONSISTENT WITH THE POLICY SPECIFIED IN 4,178
SECTION 4928.02 OF THE REVISED CODE. THE ADVISORY BOARD SHALL 4,179
CONSIST OF TWENTY-ONE MEMBERS AS FOLLOWS: THE DIRECTOR OF 4,180
DEVELOPMENT, THE CHAIRPERSON OF THE PUBLIC UTILITIES COMMISSION, 4,182
THE CONSUMERS' COUNSEL, AND THE DIRECTOR OF THE AIR QUALITY
DEVELOPMENT AUTHORITY, EACH SERVING EX OFFICIO AND REPRESENTED BY 4,184
A DESIGNEE AT THE OFFICIAL'S DISCRETION; TWO MEMBERS OF THE HOUSE 4,185
OF REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE OF 4,186
REPRESENTATIVES, NEITHER OF THE SAME POLITICAL PARTY, AND TWO 4,187
MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE SENATE, 4,188
NEITHER OF THE SAME POLITICAL PARTY; AND THIRTEEN MEMBERS
APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE 4,189
SENATE, CONSISTING OF ONE REPRESENTATIVE OF SUPPLIERS OF 4,190
COMPETITIVE RETAIL ELECTRIC SERVICE; ONE REPRESENTATIVE OF THE 4,191
RESIDENTIAL CLASS OF ELECTRIC UTILITY CUSTOMERS; ONE 4,192
REPRESENTATIVE OF THE INDUSTRIAL CLASS OF ELECTRIC UTILITY 4,193
CUSTOMERS; ONE REPRESENTATIVE OF THE COMMERCIAL CLASS OF ELECTRIC 4,195
UTILITY CUSTOMERS; ONE REPRESENTATIVE OF AGRICULTURAL OR RURAL
CUSTOMERS OF AN ELECTRIC UTILITY; TWO CUSTOMERS RECEIVING 4,196
ASSISTANCE UNDER ONE OR MORE OF THE LOW-INCOME CUSTOMER 4,197
ASSISTANCE PROGRAMS, TO REPRESENT CUSTOMERS ELIGIBLE FOR ANY SUCH 4,198
ASSISTANCE, INCLUDING SENIOR CITIZENS; ONE REPRESENTATIVE OF THE 4,199
GENERAL PUBLIC; ONE REPRESENTATIVE OF LOCAL INTAKE AGENCIES; ONE 4,201
REPRESENTATIVE OF A COMMUNITY-BASED ORGANIZATION SERVING 4,202
LOW-INCOME CUSTOMERS; ONE REPRESENTATIVE OF ENVIRONMENTAL 4,203
PROTECTION INTERESTS; ONE REPRESENTATIVE OF LENDING INSTITUTIONS; 4,205
AND ONE PERSON CONSIDERED AN EXPERT IN ENERGY EFFICIENCY OR 4,206
RENEWABLES TECHNOLOGY. INITIAL APPOINTMENTS SHALL BE MADE NOT 4,207
LATER THAN NOVEMBER 1, 1999.
(B) INITIAL TERMS OF SIX OF THE APPOINTED MEMBERS SHALL 4,209
END ON JUNE 30, 2003, AND INITIAL TERMS OF THE REMAINING SEVEN 4,211
103
APPOINTED MEMBERS SHALL END ON JUNE 30, 2004. THEREAFTER, TERMS 4,212
OF APPOINTED MEMBERS SHALL BE FOR THREE YEARS, WITH EACH TERM 4,213
ENDING ON THE SAME DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. 4,214
EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF THE MEMBER'S 4,216
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 4,217
APPOINTED. MEMBERS MAY BE REAPPOINTED. 4,218
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,220
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,221
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,222
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,223
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,224
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,225
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,226
HAS ELAPSED, WHICHEVER OCCURS FIRST.
(C) BOARD MEMBERS SHALL BE REIMBURSED FOR THEIR ACTUAL AND 4,228
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF BOARD DUTIES. 4,229
SUCH REIMBURSEMENTS CONSTITUTE, AS APPLICABLE, ADMINISTRATIVE 4,230
COSTS OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS FOR THE 4,231
PURPOSE OF DIVISION (A) OF SECTION 4928.51 OF THE REVISED CODE OR 4,232
ADMINISTRATIVE COSTS OF THE ENERGY EFFICIENCY REVOLVING LOAN 4,233
PROGRAM FOR THE PURPOSE OF DIVISION (A) OF SECTION 4528.61 OF THE 4,234
REVISED CODE.
(D) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,236
AMONG ITS MEMBERS. ONLY BOARD MEMBERS APPOINTED BY THE GOVERNOR 4,237
WITH THE ADVICE AND CONSENT OF THE SENATE SHALL BE VOTING MEMBERS 4,238
OF THE BOARD; EACH SHALL HAVE ONE VOTE IN ALL DELIBERATIONS OF 4,239
THE BOARD. A MAJORITY OF THE VOTING MEMBERS CONSTITUTE A QUORUM. 4,240
(E) THE DUTIES OF THE ADVISORY BOARD SHALL BE AS FOLLOWS: 4,242
(1) ADVISE THE DIRECTOR IN THE ADMINISTRATION OF THE 4,245
UNIVERSAL SERVICE FUND AND THE LOW-INCOME CUSTOMER ASSISTANCE 4,246
PROGRAMS AND ADVISE THE DIRECTOR ON THE DIRECTOR'S RECOMMENDATION 4,247
TO THE COMMISSION REGARDING THE APPROPRIATE LEVEL OF THE 4,248
UNIVERSAL SERVICE RIDER;
(2) ADVISE THE DIRECTOR ON THE ADMINISTRATION OF THE 4,250
104
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM AND THE ENERGY 4,251
EFFICIENCY REVOLVING LOAN PROGRAM FUND UNDER SECTIONS 4928.61 TO 4,252
4928.63 OF THE REVISED CODE. 4,253
(F) THE ADVISORY BOARD IS NOT AN AGENCY, AS DEFINED IN 4,255
SECTION 101.82 OF THE REVISED CODE, FOR PURPOSES OF DIVISIONS (A) 4,256
AND (B) OF SECTION 101.84 OF THE REVISED CODE. 4,257
Sec. 4928.61. (A) THERE IS HEREBY ESTABLISHED IN THE 4,259
STATE TREASURY AN ENERGY EFFICIENCY REVOLVING LOAN FUND, INTO 4,260
WHICH SHALL BE DEPOSITED ALL ENERGY EFFICIENCY REVENUES REMITTED 4,261
TO THE DIRECTOR OF DEVELOPMENT UNDER DIVISION (B) OF THIS 4,262
SECTION, FOR THE EXCLUSIVE PURPOSES OF FUNDING THE ENERGY 4,263
EFFICIENCY REVOLVING LOAN PROGRAM CREATED UNDER SECTION 4928.62 4,265
OF THE REVISED CODE AND PAYING THE PROGRAM'S ADMINISTRATIVE 4,266
COSTS. INTEREST ON THE FUND SHALL BE CREDITED TO THE FUND. 4,267
(B) ENERGY EFFICIENCY REVENUES SHALL INCLUDE ALL OF THE 4,269
FOLLOWING: 4,270
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,272
EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE OF A TEMPORARY 4,273
RIDER ON RETAIL ELECTRIC DISTRIBUTION SERVICE RATES AS SUCH RATES 4,274
ARE DETERMINED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO 4,275
THIS CHAPTER. THE RIDER SHALL BE A UNIFORM AMOUNT STATEWIDE, 4,276
DETERMINED BY THE DIRECTOR OF DEVELOPMENT, AFTER CONSULTATION 4,277
WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED BY SECTION 4,278
4928.58 OF THE REVISED CODE. THE AMOUNT SHALL BE DETERMINED BY 4,279
DIVIDING AN AGGREGATE REVENUE TARGET FOR A GIVEN YEAR AS 4,280
DETERMINED BY THE DIRECTOR, AFTER CONSULTATION WITH THE ADVISORY
BOARD, BY THE NUMBER OF CUSTOMERS OF ELECTRIC DISTRIBUTION 4,281
UTILITIES IN THIS STATE IN THE PRIOR YEAR. SUCH AGGREGATE 4,282
REVENUE TARGET SHALL NOT EXCEED MORE THAN FIFTEEN MILLION DOLLARS 4,283
IN ANY YEAR THROUGH 2005 AND SHALL NOT EXCEED MORE THAN FIVE 4,284
MILLION DOLLARS IN ANY YEAR AFTER 2005. THE RIDER SHALL BE
IMPOSED BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,286
ELECTRIC SERVICE AND SHALL TERMINATE AT THE END OF TEN YEARS 4,287
FOLLOWING THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY
105
REVOLVING LOAN FUND, INCLUDING INTEREST, REACHES ONE HUNDRED 4,288
MILLION DOLLARS, WHICHEVER IS FIRST. 4,289
(2) REVENUES FROM ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,291
LOAN REPAYMENTS AND PAYMENTS FROM ENERGY EFFICIENCY REVOLVING 4,292
LOAN PROGRAM LOAN COLLECTIONS PURSUANT TO SECTION 4928.62 OF THE 4,293
REVISED CODE;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,295
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,296
COOPERATIVE IN THIS STATE NOT EARLIER THAN THE STARTING DATE OF 4,297
COMPETITIVE RETAIL ELECTRIC SERVICE UPON THE UTILITY'S OR 4,298
COOPERATIVE'S DECISION TO PARTICIPATE IN THE ENERGY EFFICIENCY 4,299
REVOLVING LOAN PROGRAM.
(C)(1) EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE 4,301
SHALL REMIT TO THE DIRECTOR ON A QUARTERLY BASIS THE REVENUES 4,303
DESCRIBED IN DIVISIONS (B)(1) AND (2) OF THIS SECTION. SUCH 4,304
REMITTANCES SHALL BEGIN WITH THE FIRST QUARTER FOLLOWING THE 4,305
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. 4,306
(2) EACH PARTICIPATING ELECTRIC COOPERATIVE AND 4,308
PARTICIPATING MUNICIPAL ELECTRIC UTILITY SHALL REMIT TO THE 4,309
DIRECTOR ON A QUARTERLY BASIS THE REVENUES DESCRIBED IN DIVISION 4,310
(B)(3) OF THIS SECTION. SUCH REMITTANCES SHALL BEGIN WITH THE 4,311
FIRST QUARTER FOLLOWING THE PARTICIPATING COOPERATIVE'S OR 4,312
UTILITY'S DECISION TO PARTICIPATE. 4,313
(3) ALL REMITTANCES UNDER DIVISIONS (C)(1) AND (2) OF THIS 4,315
SECTION SHALL CONTINUE ONLY UNTIL THE END OF TEN YEARS FOLLOWING 4,316
THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY REVOLVING LOAN 4,318
FUND, INCLUDING INTEREST, REACHES ONE HUNDRED MILLION DOLLARS, 4,319
WHICHEVER IS FIRST.
Sec. 4928.62. (A) BEGINNING ON THE STARTING DATE OF 4,321
COMPETITIVE RETAIL ELECTRIC SERVICE, THERE IS HEREBY CREATED THE 4,322
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM, WHICH SHALL BE 4,323
ADMINISTERED BY THE DIRECTOR OF DEVELOPMENT. UNDER THE PROGRAM, 4,324
THE DIRECTOR MAY AUTHORIZE THE USE OF MONEYS IN THE ENERGY 4,325
EFFICIENCY REVOLVING LOAN FUND FOR FINANCIAL ASSISTANCE FOR 4,326
106
PROJECTS IN THIS STATE. TO THE EXTENT FEASIBLE GIVEN APPROVED 4,327
APPLICATIONS FOR ASSISTANCE, THE ASSISTANCE SHALL BE DISTRIBUTED 4,328
AMONG THE CERTIFIED TERRITORIES OF ELECTRIC DISTRIBUTION
UTILITIES AND PARTICIPATING ELECTRIC COOPERATIVES, AND AMONG THE 4,329
SERVICE AREAS OF PARTICIPATING MUNICIPAL ELECTRIC UTILITIES, IN 4,330
AMOUNTS PROPORTIONATE TO THE REMITTANCES OF EACH UTILITY AND 4,331
COOPERATIVE UNDER DIVISIONS (B)(1) AND (3) OF SECTION 4928.61 OF 4,333
THE REVISED CODE. THE ASSISTANCE SHALL BE MADE OR PROVIDED
THROUGH APPROVED LENDING INSTITUTIONS IN THE FORM OF LOANS AT 4,334
BELOW MARKET RATES, LOAN GUARANTEES FOR SUCH LOANS, AND LINKED 4,335
DEPOSITS FOR SUCH LOANS. THE DIRECTOR SHALL NOT AUTHORIZE 4,337
FINANCIAL ASSISTANCE UNDER THE PROGRAM UNLESS THE DIRECTOR FIRST 4,338
DETERMINES ALL OF THE FOLLOWING:
(1) THE PROJECT WILL INCLUDE AN INVESTMENT IN PRODUCTS, 4,340
TECHNOLOGIES, OR SERVICES, INCLUDING ENERGY EFFICIENCY FOR 4,341
LOW-INCOME HOUSING, FOR RESIDENTIAL, SMALL COMMERCIAL AND SMALL 4,342
INDUSTRIAL BUSINESS, LOCAL GOVERNMENT, EDUCATIONAL INSTITUTION, 4,343
NONPROFIT ENTITY, OR AGRICULTURAL CUSTOMERS OF AN ELECTRIC 4,344
DISTRIBUTION UTILITY IN THIS STATE OR A PARTICIPATING MUNICIPAL 4,345
ELECTRIC UTILITY OR ELECTRIC COOPERATIVE IN THIS STATE. 4,346
(2) THE PROJECT WILL IMPROVE ENERGY EFFICIENCY IN A 4,348
COST-EFFICIENT MANNER BY USING BOTH THE MOST APPROPRIATE 4,349
NATIONAL, FEDERAL, OR OTHER STANDARDS FOR PRODUCTS AS DETERMINED 4,350
BY THE DIRECTOR, AND THE BEST PRACTICES FOR USE OF TECHNOLOGY, 4,351
PRODUCTS, OR SERVICES IN THE CONTEXT OF THE TOTAL FACILITY OR 4,352
BUILDING.
(3) THE PROJECT WILL BENEFIT THE ECONOMIC AND 4,354
ENVIRONMENTAL WELFARE OF THE CITIZENS OF THIS STATE. 4,355
(4) THE RECEIPT OF FINANCIAL ASSISTANCE IS A MAJOR FACTOR 4,357
IN THE APPLICANT'S DECISION TO PROCEED WITH OR INVEST IN THE 4,358
PROJECT.
(B) IN CARRYING OUT SECTIONS 4928.61 TO 4928.63 OF THE 4,360
REVISED CODE, THE DIRECTOR MAY DO ALL OF THE FOLLOWING FOR THE 4,362
PURPOSE OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM: 4,363
107
(1) ACQUIRE IN THE NAME OF THE DIRECTOR ANY PROPERTY OF 4,365
ANY KIND OR CHARACTER IN ACCORDANCE WITH THIS SECTION, BY 4,366
PURCHASE, PURCHASE AT FORECLOSURE, OR EXCHANGE, ON SUCH TERMS AND 4,367
IN SUCH MANNER AS THE DIRECTOR CONSIDERS PROPER; 4,368
(2) MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS 4,370
NECESSARY OR INCIDENTAL TO THE PERFORMANCE OF THE DIRECTOR'S 4,371
DUTIES AND THE EXERCISE OF THE DIRECTOR'S POWERS UNDER THOSE 4,372
SECTIONS;
(3) EMPLOY OR ENTER INTO CONTRACTS WITH FINANCIAL 4,374
CONSULTANTS, MARKETING CONSULTANTS, CONSULTING ENGINEERS, 4,375
ARCHITECTS, MANAGERS, CONSTRUCTION EXPERTS, ATTORNEYS, TECHNICAL 4,376
MONITORS, ENERGY EVALUATORS, OR OTHER EMPLOYEES OR AGENTS AS THE 4,377
DIRECTOR CONSIDERS NECESSARY, AND SHALL FIX THEIR COMPENSATION; 4,378
(4) ADOPT RULES PRESCRIBING THE APPLICATION PROCEDURES FOR 4,380
FINANCIAL ASSISTANCE UNDER THE PROGRAM; THE TERMS AND CONDITIONS 4,381
OF ANY LOANS, LOAN GUARANTEES, LINKED DEPOSITS, AND CONTRACTS; 4,382
CRITERIA PERTAINING TO THE ELIGIBILITY OF PARTICIPATING LENDING 4,383
INSTITUTIONS; AND ANY OTHER MATTERS NECESSARY FOR THE 4,385
IMPLEMENTATION OF THE PROGRAM;
(5) DO ALL THINGS NECESSARY AND APPROPRIATE FOR THE 4,387
OPERATION OF THE PROGRAM. 4,388
(C) FINANCIAL STATEMENTS, FINANCIAL DATA, AND TRADE 4,390
SECRETS SUBMITTED TO OR RECEIVED BY THE DIRECTOR FROM AN 4,391
APPLICANT OR RECIPIENT OF FINANCIAL ASSISTANCE UNDER SECTIONS 4,392
4928.61 TO 4928.63 OF THE REVISED CODE, OR ANY INFORMATION TAKEN 4,393
FROM THOSE STATEMENTS, DATA, OR TRADE SECRETS FOR ANY PURPOSE, 4,394
ARE NOT PUBLIC RECORDS FOR THE PURPOSE OF SECTION 149.43 OF THE 4,395
REVISED CODE.
Sec. 4928.63. THE DIRECTOR OF DEVELOPMENT AND THE PUBLIC 4,397
BENEFITS ADVISORY BOARD HAVE THE POWERS AND DUTIES PROVIDED IN 4,399
SECTIONS 4928.61 AND 4928.62 OF THE REVISED CODE, IN ORDER TO 4,400
PROMOTE THE WELFARE OF THE PEOPLE OF THIS STATE, TO STABILIZE THE
ECONOMY, TO ASSIST IN THE IMPROVEMENT AND DEVELOPMENT WITHIN THIS 4,401
STATE OF NOT-FOR-PROFIT ENTITY, INDUSTRIAL, COMMERCIAL, 4,402
108
DISTRIBUTION, RESIDENTIAL, AND RESEARCH BUILDINGS AND ACTIVITIES 4,403
REQUIRED FOR THE PEOPLE OF THIS STATE, TO IMPROVE THE ECONOMIC 4,404
WELFARE OF THE PEOPLE OF THIS STATE, AND ALSO TO ASSIST IN THE 4,405
IMPROVEMENT OF AIR, WATER, OR THERMAL POLLUTION CONTROL 4,406
FACILITIES AND SOLID WASTE DISPOSAL FACILITIES. IT IS HEREBY 4,407
DETERMINED THAT THE ACCOMPLISHMENT OF THOSE PURPOSES IS ESSENTIAL 4,408
SO THAT THE PEOPLE OF THIS STATE MAY MAINTAIN THEIR PRESENT HIGH 4,409
STANDARDS IN COMPARISON WITH THE PEOPLE OF OTHER STATES AND SO 4,410
THAT OPPORTUNITIES FOR IMPROVING THE ECONOMIC WELFARE OF THE 4,411
PEOPLE OF THIS STATE, FOR IMPROVING THE HOUSING OF RESIDENTS OF 4,412
THIS STATE, AND FOR FAVORABLE MARKETS FOR THE PRODUCTS OF THIS 4,413
STATE'S NATURAL RESOURCES, AGRICULTURE, AND MANUFACTURING SHALL 4,414
BE IMPROVED; AND THAT IT IS NECESSARY FOR THIS STATE TO ESTABLISH 4,415
THE PROGRAM AUTHORIZED PURSUANT TO SECTIONS 4928.61 AND 4928.62 4,416
OF THE REVISED CODE, TO ESTABLISH THE ENERGY EFFICIENCY REVOLVING 4,417
LOAN PROGRAM AND PROGRAM FUND AND THE ENERGY EFFICIENCY REVOLVING 4,418
LOAN PROGRAM ADVISORY BOARD, AND TO VEST THE DIRECTOR AND THE 4,419
BOARD WITH THE POWERS AND DUTIES PROVIDED IN SECTIONS 4928.61 AND 4,420
4928.62 OF THE REVISED CODE.
Sec. 4933.33. Annually, each electric light DISTRIBUTION 4,429
company AS DEFINED IN SECTION 5727.80 OF THE REVISED CODE shall 4,430
cause to appear on each customer bill, or shall distribute to 4,431
each of its customers, the following statement: 4,432
"Under state law, the amount you are being billed includes: 4,434
(1) Gross receipts KILOWATT-HOUR taxes that have been in 4,436
effect since 1969 2001 and are currently at $........%. (The 4,439
current total percentage DOLLAR figure of the total gross 4,440
receipts KILOWATT-HOUR taxes levied in Chapter 5727. BY SECTION 4,442
5727.81 of the Revised Code and any other section of law shall be 4,444
placed in the blank); and
(2) Assessments to assist in the support of the operations 4,446
of the PUCO and the office of the consumers' counsel that have 4,447
been in effect since 1912 and 1977, respectively." 4,448
Nothing in this section shall be construed to mean either 4,450
109
that an electric light DISTRIBUTION company operated not for 4,451
profit or one that is owned or operated by a municipal 4,453
corporation is subject to this section or that an electric light 4,454
company subject to this section may not cause such appearance or 4,455
distribute such statement on a more frequent basis. 4,456
Sec. 4933.81. As used in sections 4933.81 to 4933.90 of 4,465
the Revised Code: 4,466
(A) "Electric supplier" means any electric light company 4,468
as defined in section 4905.03 of the Revised Code, including 4,469
electric light companies organized as nonprofit corporations, but 4,470
not including a municipal corporation CORPORATIONS or other unit 4,472
UNITS of local government that provides PROVIDE electric service. 4,473
(B) "Adequate facilities" means distribution lines or 4,475
facilities having sufficient capacity to meet the maximum 4,476
estimated electric service requirements of its existing customers 4,477
and of any new customer occurring during the year following the 4,478
commencement of permanent electric service, and to assure all 4,479
such customers of reasonable continuity and quality of service. 4,480
Distribution facilities and lines of an electric supplier shall 4,481
be considered "adequate facilities" if such supplier offers to 4,482
undertake to make its distribution facilities and lines meet such 4,483
service requirements and can, in the determination of the public 4,484
utilities commission, CAN do so within a reasonable time. 4,485
(C) "Distribution line" means any electric line having a 4,487
design voltage below thirty-five thousand volts phase to phase 4,488
which THAT is being or has been used primarily to provide 4,489
electric service directly to electric load centers by the owner 4,490
of such line. 4,491
(D) "Existing distribution line" means any distribution 4,493
line of an electric supplier which was in existence on January 1, 4,494
1977, or under constructon CONSTRUCTION on such THAT date. 4,496
(E) "Electric load center" means all the 4,498
electric-consuming facilities of any type or character owned, 4,499
occupied, controlled, or used by a person at a single location, 4,500
110
which facilities have been, are, or will be connected to and 4,501
served at a metered point of delivery and to which electric 4,502
service has been, is, or will be rendered. 4,503
(F) "Electric service" means retail electric service 4,505
furnished to an electric load center for ultimate consumption and 4,506
does not include, BUT EXCLUDES furnishing electric power or 4,508
energy at wholesale for resale. IN THE CASE OF A FOR-PROFIT 4,509
ELECTRIC SUPPLIER AND BEGINNING ON THE STARTING DATE OF 4,511
COMPETITIVE RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 4,512
OF THE REVISED CODE, "ELECTRIC SERVICE" ALSO EXCLUDES A 4,513
COMPETITIVE RETAIL ELECTRIC SERVICE. IN THE CASE OF A 4,514
NOT-FOR-PROFIT ELECTRIC SUPPLIER AND BEGINNING ON THAT STARTING 4,515
DATE, "ELECTRIC SERVICE" ALSO EXCLUDES ANY SERVICE COMPONENT OF A
COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS SPECIFIED IN AN 4,517
IRREVOCABLE FILING THE ELECTRIC SUPPLIER MAKES WITH THE PUBLIC 4,518
UTILITIES COMMISSION FOR INFORMATIONAL PURPOSES ONLY TO ELIMINATE 4,519
PERMANENTLY ITS CERTIFIED TERRITORY UNDER SECTIONS 4933.81 TO 4,520
4933.90 OF THE REVISED CODE AS TO THAT SERVICE COMPONENT. THE 4,521
FILING SHALL SPECIFY THE DATE ON WHICH SUCH TERRITORY IS SO 4,522
ELIMINATED. NOTWITHSTANDING DIVISION (B) OF SECTION 4928.01 OF 4,523
THE REVISED CODE, SUCH A SERVICE COMPONENT MAY INCLUDE RETAIL 4,524
ANCILLARY, METERING, OR BILLING AND COLLECTION SERVICE 4,525
IRRESPECTIVE OF WHETHER THAT SERVICE COMPONENT HAS OR HAS NOT
BEEN DECLARED COMPETITIVE UNDER SECTION 4928.04 OF THE REVISED 4,526
CODE. UPON RECEIPT OF THE FILING BY THE COMMISSION, THE 4,527
NOT-FOR-PROFIT ELECTRIC SUPPLIER'S CERTIFIED TERRITORY SHALL BE 4,528
ELIMINATED PERMANENTLY AS TO THE SERVICE COMPONENT SPECIFIED IN 4,529
THE FILING AS OF THE DATE SPECIFIED IN THE FILING. AS USED IN 4,530
THIS DIVISION, "COMPETITIVE RETAIL ELECTRIC SERVICE" AND "RETAIL 4,532
ELECTRIC SERVICE" HAVE THE SAME MEANINGS AS IN SECTION 4928.01 OF 4,533
THE REVISED CODE.
(G) "Certified territory" means a geographical area the 4,535
boundaries of which have been established pursuant to sections 4,536
4933.81 to 4933.90 of the Revised Code within which an electric 4,537
111
supplier is authorized and required to provide electric service. 4,538
(H) "Other unit of local government" means any 4,540
governmental unit or body that may come into existence after the 4,541
effective date of this section JULY 12, 1978, with powers and 4,543
authority similar to those of a municipal corporation, or which 4,544
THAT is created to replace or exercise the relevant powers of any 4,545
one or more municipal corporations. 4,546
Sec. 4935.04. (A) As used in this chapter: 4,555
(1) "Major utility facility" means: 4,557
(a) An electric generating plant and associated facilities 4,559
designed for, or capable of, operation at a capacity of fifty 4,560
megawatts or more; 4,561
(b) An electric transmission line and associated 4,563
facilities of a design capacity of one hundred twenty-five 4,564
kilovolts or more; 4,565
(c)(b) A gas or natural gas transmission line and 4,567
associated facilities designed for, or capable of, transporting 4,568
gas or natural gas at pressures in excess of one hundred 4,569
twenty-five pounds per square inch. 4,570
"Major utility facility" does not include electric, gas, or 4,572
natural gas distributing lines and gas or natural gas gathering 4,573
lines and associated facilities as defined by the public 4,574
utilities commission; facilities owned or operated by industrial 4,576
firms, persons, or institutions that produce or transmit gas, OR 4,577
natural gas, or electricity primarily for their own use or as a 4,579
byproduct of their operations; gas or natural gas transmission 4,580
lines and associated facilities over which an agency of the 4,581
United States has certificate jurisdiction; facilities owned or 4,582
operated by a person furnishing gas or natural gas directly to
fifteen thousand or fewer customers within this state. 4,583
(2) "Person" has the meaning set forth in section 4906.01 4,585
of the Revised Code. 4,586
(B) Each person owning or operating a gas or natural gas 4,588
transmission line and associated facilities within this state 4,589
112
over which an agency of the United States has certificate 4,590
jurisdiction shall furnish to the commission a copy of the energy 4,591
information filed by the person with that agency of the United 4,593
States.
(C) Each person owning or operating a major utility 4,595
facility within this state, or furnishing gas, natural gas, or 4,597
electricity directly to more than fifteen thousand customers 4,599
within this state annually shall furnish a report to the 4,600
commission for its review. The report shall be termed the 4,602
long-term forecast report and shall contain: 4,603
(1) A year-by-year, ten-year forecast of annual energy 4,605
demand, peak load, reserves, and a general description of the 4,606
resource plan to meet demand; 4,607
(2) A range of projected loads during the period; 4,609
(3) A description of major utility facilities planned to 4,611
be added or taken out of service in the next ten years, including 4,612
prospective sites for generating plants and, to the extent the 4,613
information is available, PROSPECTIVE SITES for transmission line 4,614
locations; 4,615
(4) For gas and natural gas, a projection of anticipated 4,617
supply, supply prices, and sources of supply over the forecast 4,618
period; 4,619
(5) For electricity, a range of projected loads and a 4,621
projection of annual energy demand, anticipated generating 4,622
capacity, and system seasonal peak demand for a twenty-year 4,623
period; 4,624
(6) A description of proposed changes in the transmission 4,626
system planned for the next five years; 4,627
(7)(6) A month-by-month forecast of both energy demand and 4,629
peak load for electric utilities, and gas sendout for gas and 4,630
natural gas utilities, for the next two years. The report shall 4,631
describe the major utility facilities that, in the judgment of 4,633
such person, will be required to supply system demands during the 4,634
forecast period. The report from a gas or natural gas utility 4,635
113
shall cover the ten- and five-year periods next succeeding the 4,636
date of the report, and the report from an electric utility shall 4,637
cover the twenty-, ten-, and five-year periods next succeeding 4,638
the date of the report. Each report shall be made available to 4,639
the public and furnished upon request to municipal corporations 4,640
and governmental agencies charged with the duty of protecting the 4,641
environment or of planning land use. The report shall be in such 4,642
form and shall contain such information as may be prescribed by 4,643
the commission. 4,644
Each person not owning or operating a major utility 4,646
facility within this state and serving fifteen thousand or fewer 4,648
gas, OR natural gas, or electric customers within this state 4,650
shall furnish such information as the commission may require 4,651
REQUIRES.
(D) The commission shall: 4,653
(1) Review and comment on the reports filed under division 4,655
(C) of this section, and make the information contained therein 4,656
IN THE REPORTS readily available to the public and other 4,658
interested government agencies; 4,659
(2) Compile and publish each year the general locations of 4,661
the proposed power plant sites and general locations of proposed 4,662
and existing transmission line routes within its jurisdiction as 4,663
identified in the reports filed under division (C) of this 4,664
section, identifying the general location of such sites and 4,665
routes and the approximate year when construction is expected to 4,666
commence, and to make such information readily available to the 4,667
public, to each newspaper of daily or weekly circulation within 4,668
the area affected by the proposed site and route, and to 4,669
interested federal, state, and local agencies; 4,670
(3) Hold a public hearing: 4,672
(a) On the first long-term forecast report filed after 4,674
January 11, 1983; 4,675
(b) At least once in every five years, on the latest 4,677
report furnished by any person subject to this section; 4,678
114
(c) On the latest report furnished by any person subject 4,680
to this section if the report contains a substantial change from 4,681
the preceding report furnished by that person. "Substantial 4,682
change" includes, but is not limited to: 4,683
(i) The addition or cancellation of a generating facility 4,685
of fifty megawatts or more in the report furnished pursuant to 4,686
division (C) of this section; 4,687
(ii) A change in forecasted peak loads or energy 4,689
consumption over the forecast period of greater than an average 4,690
of one-half of one per cent per year; 4,691
(iii)(ii) Demonstration of good cause to the commission by 4,693
an interested party. 4,694
The commission shall fix a time for the hearing, which 4,696
shall be not later than ninety days after the report is filed, 4,697
and publish notice of the date, time of day, and location of the 4,698
hearing in a newspaper of general circulation in each county in 4,699
which the person furnishing the report has or intends to locate a 4,700
major utility facility and will provide service during the period 4,701
covered by the report. The notice shall be published not less 4,702
than fifteen nor more than thirty days before the hearing and 4,703
shall state the matters to be considered. 4,704
Absent a showing of good cause, the commission shall not 4,706
hold hearings under division (D)(3) of this section with respect 4,707
to persons who, as the primary purpose of their business, furnish 4,708
gas, OR natural gas, or electricity directly to fifteen thousand 4,710
or fewer customers within this state solely for direct 4,711
consumption by those customers. 4,712
(4) Require such information from persons subject to its 4,714
jurisdiction as necessary to assist in the conduct of hearings 4,715
and any investigation or studies it may undertake; 4,716
(5) Conduct any studies or investigations that are 4,718
necessary or appropriate to carry out its responsibilities under 4,719
this section. 4,720
(E)(1) The scope of the hearing held under division (D)(3) 4,722
115
of this section shall be limited to issues relating to 4,723
forecasting. The power siting board, the office of consumers' 4,724
counsel, and all other persons having an interest in the 4,725
proceedings shall be afforded the opportunity to be heard and to 4,726
be represented by counsel. The commission may adjourn the 4,727
hearing from time to time. 4,728
(2) The hearing shall include, but not be limited to, a 4,730
review of: 4,731
(a) The projected loads and energy requirements for each 4,733
year of the period; 4,734
(b) The estimated installed capacity and supplies to meet 4,736
the projected load requirements. 4,737
(F) Based upon the report furnished pursuant to division 4,739
(C) of this section and the hearing record, the commission, 4,740
within ninety days from the close of the record in the hearing, 4,741
shall determine if: 4,742
(1) All information relating to current activities, 4,744
facilities agreements, and published energy policies of the state 4,745
has been completely and accurately represented; 4,746
(2) The load requirements are based on substantially 4,748
accurate historical information and adequate methodology; 4,749
(3) The forecasting methods consider the relationships 4,751
between price and energy consumption; 4,752
(4) The report identifies and projects reductions in 4,754
energy demands due to energy conservation measures in the 4,755
industrial, commercial, residential, transportation, and energy 4,756
production sectors in the service area; 4,757
(5) Utility company forecasts of loads and resources are 4,759
reasonable in relation to population growth estimates made by 4,760
state and federal agencies, transportation, and economic 4,761
development plans and forecasts, and make recommendations where 4,762
possible for necessary and reasonable alternatives to meet 4,763
forecasted electric power demand; 4,764
(6) The report considers plans for expansion of the 4,766
116
regional power grid and the planned facilities of other utilities 4,767
in the state; 4,768
(7) All assumptions made in the forecast are reasonable 4,770
and adequately documented. 4,771
(G) The commission shall adopt rules under section 111.15 4,773
of the Revised Code to establish criteria for evaluating the 4,774
long-term forecasts of needs for gas and electric power 4,775
TRANSMISSION SERVICE, to conduct hearings held under this 4,776
section, to establish reasonable fees to defray the direct cost 4,778
of the hearings and the review process, and such other rules as 4,779
are necessary and convenient to implement this section. 4,780
(H) The hearing record produced under this section and the 4,782
determinations of the commission shall be introduced into 4,783
evidence and shall be considered in determining the basis of need 4,784
for power siting board deliberations under division (A)(1) of 4,785
section 4906.10 of the Revised Code. The hearing record produced 4,786
under this section shall be introduced into evidence and shall be 4,787
considered by the public utilities commission in its initiation 4,788
of programs, examinations, AND findings, investigations, and 4,789
remedies under section 4905.70 of the Revised Code, and shall be 4,791
considered in their THE COMMISSION'S determinations with respect 4,792
to the establishment of just and reasonable rates under section 4,794
4909.15 of the Revised Code and financing utility facilities and 4,795
authorizing issuance of all securities under sections 4905.40, 4,796
4905.401, 4905.41, and 4905.42 of the Revised Code. The forecast 4,797
findings also shall serve as the basis for all other energy 4,799
planning and development activities of the state government where 4,800
electric and gas data are required. 4,801
(I)(1) No court other than the supreme court shall have 4,803
power to review, suspend, or delay any determination made by the 4,804
commission under this section, or enjoin, restrain, or interfere 4,805
with the commission in the performance of official duties. A 4,806
writ of mandamus shall not be issued against the commission by 4,807
any court other than the supreme court. 4,808
117
(2) A final determination made by the commission shall be 4,810
reversed, vacated, or modified by the supreme court on appeal, 4,811
if, upon consideration of the record, such court is of the 4,812
opinion that such determination was unreasonable or unlawful. 4,813
The proceeding to obtain such reversal, vacation, or 4,815
modification shall be by notice of appeal, filed with the 4,816
commission by any party to the proceeding before it, against the 4,817
commission, setting forth the determination appealed from and 4,818
errors complained of. The notice of appeal shall be served, 4,819
unless waived, upon the commission by leaving a copy at the 4,820
office of the chairman CHAIRPERSON of the commission at Columbus. 4,822
The court may permit an interested party to intervene by 4,823
cross-appeal.
(3) No proceeding to reverse, vacate, or modify a 4,825
determination of the commission is commenced unless the notice of 4,826
appeal is filed within sixty days after the date of the 4,827
determination. 4,828
Sec. 5117.01. (A) As used in this chapter SECTIONS 4,837
5117.01 TO 5117.12 OF THE REVISED CODE: 4,838
(1)(A) "Credit" means the credit on utility heating bills 4,840
granted under division (A) of section 5117.09 of the Revised 4,841
Code. 4,842
(2)(B) "Current monthly bill" means the amount charged for 4,844
energy consumed in the most recent monthly billing period and 4,845
does not include any past due balance. 4,846
(3)(C) "Current total income" means the adjusted gross 4,848
income of the head of household and the person's spouse for the 4,850
six-month period beginning the first day of January and ending 4,851
the thirtieth day of June of the year in which an application is 4,852
made, as determined under the "Internal Revenue Code of 1954," 4,853
68A Stat. 3, 26 U.S.C. 1, as amended, minus the amount of 4,854
disability benefits included in adjusted gross income but not to 4,855
exceed twenty-six hundred dollars, plus old age and survivors 4,856
benefits received pursuant to the "Social Security Act," 4,857
118
retirement, pension, annuity, or other retirement payments or 4,858
benefits not included in federal adjusted gross income; payments 4,859
received pursuant to the "Railroad Retirement Act," 50 Stat. 307, 4,860
45 U.S.C. 228, and interest on federal, state, and local 4,861
government obligations. Disability benefits paid by the veterans 4,862
administration or a branch of the armed forces of the United 4,863
States on account of an injury or disability are not included in 4,864
current total income. 4,865
(4)(D) "Energy company" means every retail propane dealer 4,867
that distributes propane by pipeline, and every electric light, 4,868
rural electric, gas, or natural gas company. 4,869
(5)(E) "Energy dealer" means every retail dealer of fuel 4,871
oil, propane, coal, wood, and kerosene. 4,872
(6)(F) "Head of household" means a person who occupies a 4,874
household as the person's homestead and who is financially 4,875
responsible for its other occupants, if any, or the spouse of 4,877
such a person if both occupy the same household. No person is a 4,878
head of household if the person occupies a household for the 4,879
taxable year prior to the year in which an application is filed 4,881
and was claimed as a dependent on the federal income tax return 4,882
of another occupant of the same household and was not the 4,883
taxpayer's spouse or if the person could have been claimed if 4,885
such a return had been filed for such year and was not the other 4,886
occupant's spouse.
(7)(G) "Household" means any dwelling unit, including a 4,888
unit in a multiple unit dwelling, a manufactured home, or a 4,890
mobile home, to which utility heating services or energy 4,892
commodities are provided.
(8)(H) "Payment" means the one hundred twenty-five-dollar 4,894
payment provided under division (A) of section 5117.10 of the 4,895
Revised Code. 4,896
(9)(I) "Permanently and totally disabled" refers to a 4,898
person who has, on the first day of July of the year an 4,899
application is made, some impairment in body or mind that makes 4,900
119
the person unfit to work at any substantially remunerative 4,902
employment that the person would otherwise be reasonably able to 4,904
perform and that will, with reasonable probability, continue for 4,905
an indefinite period of at least twelve months without any 4,906
present indication of recovery therefrom, or who has been 4,907
certified as permanently and totally disabled by a state or 4,908
federal agency having the function of so classifying persons. 4,909
(10)(J) "Sixty-five years of age or older" refers to a 4,911
person who has attained age sixty-four prior to the first day of 4,912
January of the year of application for reduction in utility 4,913
charges.
(11)(K) "Total income" means the adjusted gross income of 4,915
the head of household and the person's spouse for the year 4,917
preceding the year in which an application is made, as determined 4,918
under the "Internal Revenue Code of 1954," 68A Stat. 3, 26 U.S.C. 4,919
1, as amended, minus the amount of disability benefits included 4,920
in adjusted gross income but not to exceed fifty-two hundred 4,921
dollars, plus old age and survivors benefits received pursuant to 4,922
the "Social Security Act," retirement, pension, annuity, or other 4,923
retirement payments or benefits not included in federal adjusted 4,924
gross income; payments received pursuant to the "Railroad 4,925
Retirement Act," 50 Stat. 307, 45 U.S.C. 228; and interest on 4,926
federal, state, and local government obligations. Disability 4,927
benefits paid by the veteran's administration DEPARTMENT OF 4,928
VETERANS AFFAIRS or a branch of the armed forces of the United 4,930
States on account of an injury or disability shall not be 4,931
included in total income.
(B) As used in sections 5117.01 to 5117.12 of the Revised 4,933
Code: 4,934
(1) "Applicant" means any person who has submitted an 4,936
application under division (C) of section 5117.03 of the Revised 4,937
Code. 4,938
(2) "Application" means the application in section 5117.03 4,940
of the Revised Code. 4,941
120
(3) "Program" means the Ohio energy credit program 4,943
established under sections 5117.01 to 5117.12 of the Revised 4,944
Code. 4,945
(4)(L) "Purchased power costs" means charges for the costs 4,947
of power purchased by an electric light company under Chapters 4,948
4905. and 4909. of the Revised Code and includes charges 4,949
resulting from the exchange of electric power. 4,950
Sec. 5117.02. (A) The DIRECTOR OF DEVELOPMENT, TO THE 4,959
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, shall 4,960
adopt rules, or amendments and rescissions of rules, PURSUANT TO 4,961
SECTION 4928.52 OF THE REVISED CODE, for the administration of 4,962
THE OHIO ENERGY CREDIT PROGRAM UNDER sections 5117.01 to 5117.12 4,964
of the Revised Code.
(B) As a means of efficiently administering the program 4,966
established by sections 5117.01 to 5117.12 of the Revised Code, 4,967
the tax commissioner DIRECTOR may extend, by as much as a total 4,968
of thirty days, any date specified in such sections for the 4,970
performance of a particular action by an individual or an 4,971
officer.
(C)(1) Except as provided in division (C)(2) of this 4,973
section, the DIRECTOR, TO THE EXTENT NECESSARY IN CONSULTATION 4,974
WITH THE tax commissioner, shall ADOPT, in accordance with 4,975
divisions (A), (B), (C), (D), (E), and (H) of section 119.03 and 4,976
section 119.04 of the Revised Code, adopt whatever rules, or 4,977
amendments or rescissions of rules are required by or are 4,978
otherwise necessary to implement sections 5117.01 to 5117.12 of 4,979
the Revised Code. A rule, amendment, or rescission adopted under 4,980
this division is not exempt from the hearing requirements of 4,981
section 119.03 of the Revised Code pursuant to division (G) of 4,982
that section, or subject to section 111.15 or 5703.14 of the 4,983
Revised Code. 4,984
(2) If an emergency necessitates the immediate adoption of 4,986
a rule, or the immediate adoption of an amendment or rescission 4,987
of a rule that is required by or otherwise necessary to implement 4,988
121
sections 5117.01 to 5117.12 of the Revised Code, the DIRECTOR, TO 4,989
THE EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner 4,991
may, immediately MAY adopt the emergency rule, amendment, or 4,993
rescission without complying with division (A), (B), (C), (D),
(E), or (H) of section 119.03 of the Revised Code so long as he 4,994
THE DIRECTOR states the reasons for the necessity in the 4,995
emergency rule, amendment, or rescission. The emergency rule, 4,996
amendment, or rescission is effective on the day copies of the 4,997
emergency rule, amendment, or rescission, in final form and in 4,998
compliance with division (A)(2) of section 119.04 of the Revised 4,999
Code, are filed as follows: two certified copies of the 5,000
emergency rule, amendment, or rescission shall be filed with both 5,001
the secretary of state and the director of the legislative 5,002
service commission, and one certified copy of the emergency rule, 5,003
amendment, or rescission shall be filed with the joint committee 5,004
on agency rule review. If all copies are not filed on the same 5,005
day, the emergency rule, amendment, or rescission is effective on 5,006
the day on which the latest filing is made. An emergency rule, 5,007
amendment, or rescission adopted under this division is not 5,008
subject to section 111.15, division (F) of section 119.03, or 5,009
section 5703.14 of the Revised Code. An emergency rule, 5,010
amendment, or rescission adopted under this division continues in 5,011
effect until amended or rescinded by the DIRECTOR, TO THE EXTENT 5,012
NECESSARY IN CONSULTATION WITH THE tax commissioner, in 5,013
accordance with division (C)(1) or (2) of this section, except 5,014
that the rescission of an emergency rescission does not revive 5,015
the rule rescinded. 5,016
(D) Except where otherwise provided, each form, 5,018
application, notice, and the like used in fulfilling the 5,019
requirements of sections 5117.01 to 5117.12 of the Revised Code 5,020
shall be approved by the DIRECTOR, TO THE EXTENT NECESSARY IN 5,021
CONSULTATION WITH THE tax commissioner. 5,022
Sec. 5117.03. (A)(1) The DIRECTOR OF DEVELOPMENT, TO THE 5,031
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, shall 5,032
122
prescribe the form of THE application FOR ASSISTANCE UNDER THE 5,033
OHIO ENERGY CREDIT PROGRAM. The application shall be in the form 5,034
of a signed statement, shall require no more information than is 5,035
necessary to establish an applicant's eligibility under section 5,036
5117.07 of the Revised Code, and shall be clear and concise in 5,037
its format, requirements, and instructions. The form shall 5,038
request the following information: 5,039
(a) The name and address of the applicant; 5,041
(b) The type of energy or commodity that is the source of 5,043
the heat produced by the primary heating system in the residence 5,044
of the applicant; 5,045
(c) The name of the energy company or energy dealer that 5,047
supplies the energy or commodity that is the source of the heat 5,048
produced by the primary heating system in the residence of the 5,049
applicant and, if the applicant receives his THE APPLICANT'S 5,050
energy from a company, the applicant's account number; 5,051
(d) The applicant's total income or current total income; 5,053
(e) In the case of an application based upon physical 5,055
disability, a certification signed by a physician, in the case of 5,056
an application based upon mental disability, a certification 5,057
signed by a physician or psychologist, or in the case of either 5,058
such disability, a certification from a state or federal agency 5,059
having the function of so classifying persons; 5,060
(f) The age of the applicant; 5,062
(g) Any other information required to make eligibility 5,064
determinations under section 5117.07 of the Revised Code. 5,065
Each form shall contain a statement that signing such 5,067
application constitutes a delegation of authority by the 5,068
applicant to the commissioner to examine any financial records 5,069
that relate to income earned by the applicant as stated on the 5,070
application for the purpose of determining eligibility under 5,071
section 5117.07 of the Revised Code and possible violation of 5,072
division (B) of section 5117.11 of the Revised Code. 5,073
(2) The tax commissioner shall mail or otherwise provide 5,075
123
an application form to each person requesting such form. 5,076
(B)(1) The DIRECTOR, TO THE EXTENT NECESSARY IN 5,078
CONSULTATION WITH THE tax commissioner, shall devise and 5,079
prescribe an application renewal form on which the head of 5,080
household may indicate by check mark that he THE HEAD OF 5,081
HOUSEHOLD received a credit or payment for the preceding heating 5,083
season. Application renewal forms shall seek from persons 5,084
applying on such basis a certification by the applicant attesting 5,085
to his THE APPLICANT'S permanent and total disability and the 5,086
name of a physician, psychologist, or government agency willing 5,087
to provide an additional certification if so requested under 5,088
division (D) of section 5117.07 of the Revised Code. Such forms 5,089
shall also include such other information as the DIRECTOR, TO THE 5,090
EXTENT NECESSARY IN CONSULTATION WITH THE tax commissioner, 5,091
requires and shall be clear and concise in format, requirements, 5,092
and instructions. 5,093
(2) On or before the fifteenth day of June, the tax 5,095
commissioner DIRECTOR shall mail or otherwise provide an 5,096
application renewal form to each head of household who received a 5,098
credit or payment during the preceding heating season. 5,099
(3) Application renewal forms shall be reviewed and 5,101
disposed of in the same manner provided for application forms in 5,102
section 5117.07 of the Revised Code. 5,103
(C) Applications and application renewal forms shall be 5,105
returned to the tax commissioner DIRECTOR no later than the first 5,107
day of September. If an applicant is determined eligible for a 5,108
credit under division (A)(1) of section 5117.07 of the Revised 5,109
Code and the applicant's account number is not provided on the 5,110
application form pursuant to division (A)(1)(c) of this section, 5,111
the tax commissioner DIRECTOR shall make a good faith effort to 5,112
acquire such number before certifying the applicant's eligibility 5,114
to an energy company under section 5117.08 of the Revised Code. 5,115
The tax commissioner DIRECTOR may request an energy company to 5,116
assist in efforts to acquire an applicant's account number and, 5,118
124
if so requested, a company shall cooperate in such efforts. 5,119
Sec. 5117.04. (A) Every energy company and energy dealer 5,128
shall, at least once during June, and once during August, SHALL 5,129
begin to distribute to each of its residential heating customers 5,131
a plain and clear notice, printed in ten-point type on a sheet or 5,132
card on which no other words appear on either the front or back, 5,133
that states the right of qualified residential customers to 5,134
receive a credit or payment UNDER THE OHIO ENERGY CREDIT PROGRAM 5,136
and that explains in detail, in a fashion reasonably calculated 5,137
to inform, the relevant mechanisms established under sections 5,138
5117.01 to 5117.12 of the Revised Code to effectuate that right. 5,139
The notice shall also contain, in ten-point boldface type, the 5,140
following statement: "The right of eligible customers to receive 5,141
a credit against utility bills or a payment for energy bills is 5,142
provided in legislation (House Bill 657) passed by the General 5,143
Assembly and signed by the Governor."
(B) The tax commissioner DIRECTOR OF DEVELOPMENT shall 5,145
cause to be printed notices of the type specified in division (A) 5,147
of this section and application forms in sufficient quantity for 5,148
distribution. The tax commissioner DIRECTOR shall maintain a 5,149
system for distributing application forms to appropriate public 5,151
locations. The distribution system shall be designed to make 5,152
application forms available to as many qualified persons as 5,153
possible.
(C) The tax commissioner DIRECTOR shall arrange for the 5,155
establishment of a toll-free telephone number to enable all 5,156
persons in this state to make inquiries and obtain information 5,157
concerning the credits or payments. 5,158
Sec. 5117.05. The tax commissioner DIRECTOR OF 5,167
DEVELOPMENT, in consultation with the commission on 5,168
Hispanic-Latino affairs, shall develop an outreach program, 5,170
including Spanish-speaking communication formats, designed to 5,171
make all Spanish-speaking persons who meet the eligibility 5,172
requirements for participation in the Ohio energy credit program 5,173
125
aware of the nature and extent of available benefits and methods 5,174
for acquiring and making applications. The program shall include
assistance to such persons in making applications. The 5,175
commissioner DIRECTOR shall implement the program in cooperation 5,177
with the commission on Hispanic-Latino affairs. 5,178
Sec. 5117.07. (A) On or before the first day of October, 5,187
the tax commissioner DIRECTOR OF DEVELOPMENT shall review all 5,188
applications submitted under division (C) of section 5117.03 of 5,190
the Revised Code and shall determine the eligibility of each 5,191
applicant to receive a credit or payment. 5,192
(1) An applicant is eligible for a credit of thirty per 5,194
cent if the applicant is a head of household, has a total income 5,195
of five thousand dollars or less or a current total income of two 5,196
thousand five hundred dollars or less, owns and occupies or rents 5,197
and occupies a household receiving the source of energy for its 5,198
primary heating system from an energy company and such energy is 5,199
separately metered, and is either of the following: 5,200
(a) Sixty-five years of age or older; 5,202
(b) Permanently and totally disabled. 5,204
(2) An applicant is eligible for a credit of twenty-five 5,206
per cent if the applicant is a head of household, has a total 5,207
income of more than five thousand dollars but not more than nine 5,208
thousand dollars or a current total income of more than two 5,209
thousand five hundred dollars but not more than four thousand 5,210
five hundred dollars, is sixty-five years of age or older or 5,211
permanently and totally disabled, and owns and occupies or rents 5,212
and occupies a household receiving the source of energy for its 5,213
primary heating system from an energy company and such energy is 5,214
separately metered. 5,215
(3) An applicant is eligible for a payment if either of 5,217
the following applies to the applicant: 5,218
(a) He THE APPLICANT would be eligible for the credit 5,220
under division (A)(1) or (2) of this section but for the fact 5,222
that the source of energy for the primary heating system of the 5,223
126
applicant's household is not separately metered; 5,224
(b) He THE APPLICANT is a head of household, has a total 5,226
income of no more than nine thousand dollars or a current total 5,228
income of no more than four thousand five hundred dollars, is 5,229
sixty-five years of age or older or permanently and totally 5,230
disabled, and owns and occupies or rents and occupies a household 5,231
receiving the source of energy for its primary heating system 5,232
from an energy dealer.
(4) In the case of a multiple unit dwelling for which 5,234
separate metering for the source of energy for its primary 5,235
heating system is not provided, more than one applicant occupying 5,236
such dwelling may be determined eligible for a payment under 5,237
division (A)(3)(a) of this section. 5,238
(B) Notwithstanding division (A) of this section: 5,240
(1) No head of household who resides in public housing or 5,242
receives a rent subsidy from a government agency is eligible for 5,243
a credit or payment unless the person's rent subsidy does not 5,244
reflect the costs of his THAT PERSON'S household receiving the 5,245
source of energy for its primary heating system; 5,247
(2) A resident of a nursing home, hospital, or other 5,249
extended health care facility is not eligible for a credit or 5,250
payment for the costs of providing the source of energy for the 5,251
primary heating system of the facility. 5,252
(C) The DIRECTOR, IN CONSULTATION WITH THE tax 5,254
commissioner, shall establish a procedure whereby he THE 5,256
COMMISSIONER can verify total income and current total income for 5,257
the calendar year in which an applicant is determined eligible 5,258
for a payment or credit. If a person receives a credit or 5,259
payment that he THE PERSON is ineligible to receive under 5,260
division (A) of this section AS DETERMINED BY THE COMMISSIONER, 5,262
that person shall refund to the tax commissioner DIRECTOR the 5,264
credit or payment, or excess portion of a credit or payment, he 5,265
THAT PERSON received. The sum refunded shall be deposited in the 5,266
state treasury to the credit of the general revenue fund 5,267
127
UNIVERSAL SERVICE FUND CREATED IN SECTION 4928.51 OF THE REVISED 5,268
CODE.
(D) The tax commissioner DIRECTOR may request an 5,270
additional certification of permanent and total disability for 5,271
any applicant claiming such status on an application renewal form 5,272
submitted under section 5117.03 of the Revised Code. Such 5,273
certification shall be requested from the person or agency named 5,274
on the form pursuant to division (B)(1) of section 5117.03 of the 5,275
Revised Code. If such additional certification is refused due to 5,276
a conclusion by the person or agency that the applicant is not 5,277
permanently and totally disabled, the commissioner DIRECTOR shall 5,279
determine the applicant ineligible for any credit or payment. If 5,280
such additional certification is unavailable or refused for any 5,281
other reason, the tax commissioner DIRECTOR may determine the 5,282
applicant to be eligible for a credit or payment provided he THE 5,284
DIRECTOR has good cause to believe the applicant is permanently 5,286
and totally disabled.
(E) On or before the first day of October, the tax 5,288
commissioner DIRECTOR shall notify each applicant of the 5,289
disposition of his THE APPLICANT'S application under divisions 5,291
(A) and (B) of this section. At the same time, he THE DIRECTOR 5,293
shall notify the applicant, regardless of whether his THE 5,295
APPLICANT'S application is approved or disapproved, that the 5,296
applicant may be eligible to participate in a state or federal 5,297
weatherization program and should contact his THE APPLICANT'S 5,298
community action agency for further information. If an 5,300
application is disapproved, the applicant may appeal to the tax 5,301
commissioner DIRECTOR for a hearing on the matter. A notice of 5,303
disapproval shall include a detailed explanation of the 5,304
applicant's right of appeal under this chapter. Any such appeal 5,305
shall be on an appeal form prescribed by the tax commissioner 5,306
DIRECTOR and shall be filed with the tax commissioner DIRECTOR 5,308
within twenty days of the receipt of the notice of disapproval. 5,310
Sec. 5117.08. (A)(1) On or before the tenth day of 5,319
128
October, the tax commissioner DIRECTOR OF DEVELOPMENT shall begin 5,321
to prepare and certify to each energy company that provides 5,322
energy for home heating a list containing the name and account 5,323
number of each head of household determined eligible for a credit 5,324
under divisions (A) and (B) of section 5117.07 of the Revised 5,325
Code and served by that company, the address of the household, 5,326
and the source of the heat produced by the primary heating system 5,327
in the residence of the applicant. The tax commissioner may 5,328
DIRECTOR, for good cause, MAY certify addenda to such lists, 5,330
containing the names of any heads of household whose names were 5,331
not included in the earlier lists but who, except for failure to 5,332
meet the deadline requirements of sections 5117.01 to 5117.12 of 5,333
the Revised Code, would have been certified in the original 5,334
lists. Within thirty days of receipt of such list and in any 5,335
month for which a credit is required under sections 5117.01 to 5,336
5117.12 of the Revised Code, the company may verify that each 5,337
head of household on the commissioner's DIRECTOR'S list receives 5,338
energy for home heating at the household address appearing on 5,340
such list or that the source of heat produced by the primary 5,341
heating system in the household is energy supplied by the 5,342
company. If the company determines that a person listed does not 5,343
receive energy for home heating at such address or that the 5,344
source of the heat produced by the primary heating system in the 5,345
residence of such person is not supplied by the company, it shall 5,346
notify the commissioner DIRECTOR of such fact and may refuse to 5,348
grant the credit provided under division (A) of section 5117.07 5,349
of the Revised Code. Upon receipt of such notice, the 5,350
commissioner DIRECTOR shall determine the accuracy of the 5,352
determination of the company and, should he THE DIRECTOR not 5,353
concur with the company, shall order the company to provide the 5,354
credit.
(2) The good faith exercise by any company of any power of 5,356
refusal granted under division (A)(1) of this section does not 5,357
subject such company to any penalty or liability provided under 5,358
129
division (A) of section 5117.11 of the Revised Code. 5,359
(B)(1) Nothing in sections 5117.01 to 5117.12 of the 5,361
Revised Code shall be construed to abridge the right of an 5,362
otherwise eligible applicant to receive a credit or payment 5,363
because he THE APPLICANT has either changed the location of his 5,365
THE APPLICANT'S residence or the nature of the occupancy of his 5,366
THE APPLICANT'S residence, as between a tenant or an owner, at a 5,368
time that could, as a result of the operation of sections 5117.01 5,369
to 5117.12 of the Revised Code, cause him THE APPLICANT to be 5,370
disqualified from receiving, or continuing to receive, the credit 5,371
or payment.
(2) Where a person who submits a form or information 5,373
required under sections 5117.01 to 5117.10 of the Revised Code 5,374
does so in a timely fashion but, because of the occurrence of an 5,375
error or omission with respect to such form or information, 5,376
either on his THE PERSON'S OWN part or on the part of those 5,377
persons required by sections 5117.01 to 5117.12 of the Revised 5,379
Code to take administrative, executive, or ministerial action 5,380
regarding such form or information, the certification of 5,381
eligibility by the tax commissioner DIRECTOR to an energy company 5,382
takes place after the expiration of a deadline imposed under 5,383
sections 5117.01 to 5117.12 of the Revised Code, the company 5,384
shall grant the credit within thirty days and, whenever 5,385
appropriate, grant the credit on a retroactive basis. 5,386
(3) The tax commissioner DIRECTOR shall adopt a rule 5,388
ensuring that the requirements of divisions (B)(1) and (2) of 5,389
this section are effectuated. 5,390
Sec. 5117.09. (A) With respect to each of its residential 5,399
customers, every energy company shall, after receipt of a 5,400
certification list provided under division (A) of section 5117.08 5,401
of the Revised Code, cause the granting of a credit in accordance 5,402
with this section against the monthly billing of each household 5,403
appearing on the list except as provided in division (A) of 5,404
section 5117.08 of the Revised Code. In the case of an applicant 5,405
130
who has a total income of five thousand dollars or less or a 5,406
current total income of two thousand five hundred dollars or 5,407
less, the credit shall amount to thirty per cent of the current 5,408
monthly bill rendered to such household by the company for the 5,409
billing months of December, January, February, March, and April 5,410
following the receipt of a list on which the household appears. 5,411
In the case of an applicant who has a total income of more than 5,412
five thousand dollars but not more than nine thousand dollars or 5,413
a current total income of more than two thousand five hundred 5,414
dollars but not more than four thousand five hundred dollars, the 5,415
credit shall amount to twenty-five per cent of the current 5,416
monthly bill rendered to such household by the company for the 5,417
billing months of December, January, February, March, and April 5,418
following the receipt of a list on which the household appears. 5,419
If purchased power costs are incurred by an energy company during 5,420
the billing month for which a credit is provided under this 5,421
division, the credit shall also be applied to such costs, whether 5,422
or not the costs are charged to a current montly MONTHLY bill for 5,423
such months. 5,424
(B) Every energy company shall read the meter of each of 5,426
its qualified residential customers who may receive a credit 5,427
under division (A) of this section at least one time for the 5,428
service period of November and at least one time in the service 5,429
period for the current monthly bill rendered for the billing 5,430
month of April. In the event a company is unable to read a meter 5,431
because of failure to gain access after a good faith effort or 5,432
because a certification list was supplied to the utility fewer 5,433
than thirty days prior to the normal date of meter reading, the 5,434
company may render a calculated bill. In such instances, the 5,435
company shall make an adjustment to the amount of the credit 5,436
granted to the customer based upon the next actual reading of the 5,437
meter if the reading shows the previous calculation to have been 5,438
in error and set forth the amount of such adjustments in the 5,439
report required to be filed with the tax commissioner DIRECTOR OF 5,440
131
DEVELOPMENT under division (D) of this section. 5,441
(C) On each billing that is subject to a credit under 5,443
division (A) of this section, there shall appear in ten-point 5,444
type both the amount of the credit and to the left of such amount 5,445
"Ohio Energy Credit." 5,446
(D) On or before the fifteenth day of each month following 5,448
one in which credits were provided under division (A) of this 5,449
section, each energy company shall, on a form prescribed by the 5,450
tax commissioner DIRECTOR and requesting information that he THE 5,452
DIRECTOR determines is necessary for the purpose of verifying the 5,454
propriety of the payment of credits, certify to the commissioner 5,455
DIRECTOR the total amount of all credits it granted pursuant to 5,457
division (A) of this section during the preceding month. Not 5,458
later than thirty days after his receipt of such certification, 5,459
the commissioner DIRECTOR shall pay the company the amount 5,461
certified. If the commissioner DIRECTOR determines that a 5,463
company previously received amounts greater than the amounts of 5,464
credits properly granted, such company, upon notice from the 5,465
commissioner DIRECTOR, shall reimburse the commissioner DIRECTOR 5,466
in the amount of the overpayments. Such reimbursements shall be 5,467
deposited in the general revenue fund. 5,468
(E)(l) Any energy company that purposely fails to grant 5,470
the credit provided under division (A) of this section is liable 5,471
to each person entitled to the credit and certified to the 5,472
company by the tax commissioner DIRECTOR pursuant to division (A) 5,474
of section 5117.08 of the Revised Code in treble the amount of 5,475
the total credit not granted. The consumers' counsel may, on 5,476
behalf of any person or persons not granted the credit, MAY bring 5,477
an action to recover such treble damages in the court of common 5,478
pleas of the county in which is located the office of the company 5,479
nearest the household of any such person or persons. The 5,480
consumers' counsel may also, on behalf of any persons not granted 5,481
the credit, MAY bring a class action to recover such treble 5,482
damages in the court of common pleas of any county in which is 5,483
132
located an office of the company and, if feasible, in which is 5,484
located a significant number of members of the class. Any treble 5,485
damage recovery under this division does not, in any manner, 5,486
diminish any other liability provided under sections 5117.01 to 5,487
5117.12 of the Revised Code. Clerical errors shall not be 5,488
considered an offense or incur liability under this division. 5,489
(2) An action shall be brought by the consumers' counsel 5,491
under division (E)(1) of this section only after he THE 5,492
CONSUMERS' COUNSEL has made a good faith attempt to dispose of 5,494
the claim by settlement, including a good faith request for only 5,495
such information in the possession of an energy company as is 5,496
needed to determine the existence or extent of such a right of 5,497
action.
(3) Nothing in division (E)(1) of this section shall be 5,499
construed to prevent persons acting without the assistance of the 5,500
consumers' counsel from bringing an action or class action under 5,501
such division. 5,502
Sec. 5117.10. (A) On or before the fifteenth day of 5,511
January, the tax commissioner DIRECTOR OF DEVELOPMENT shall pay 5,512
each applicant determined eligible for a payment under divisions 5,514
(A) and (B) of section 5117.07 of the Revised Code one hundred 5,515
twenty-five dollars.
(B) The tax commissioner DIRECTOR may withhold from any 5,517
payment to which a person would otherwise be entitled under 5,519
division (A) of this section any amount that the tax commissioner 5,520
DIRECTOR determines was erroneously received by such person in a 5,522
preceding year under this or the program established under Am. 5,523
Sub. H.B. 230, as amended by Am. H.B. 937, Am. Sub. H.B. 1073, 5,524
Am. Sub. S.B. 493, and Am. Sub. S.B. 523 of the 112th general 5,525
assembly, provided the tax commissioner DIRECTOR has employed all 5,526
other legal methods reasonably available to obtain reimbursement 5,528
for the erroneous payment or credit prior to the commencement of 5,529
the current program year.
(C) Payments made under this section and credits granted 5,531
133
under section 5117.09 of the Revised Code shall not be considered 5,532
income for the purpose of determining eligibility or the level of 5,533
benefits or assistance under section 329.042 or Chapters 5107., 5,534
5111., and 5115. of the Revised Code; supplemental security 5,536
income payments under Title XVI of the "Social Security Act," 49 5,537
Stat. 620 (1935), 42 U.S.C. 301, as amended; or any other program 5,538
under which eligibility or the level of benefits or assistance is 5,539
based upon need measured by income.
Sec. 5117.12. (A) On or before the thirty-first day of 5,548
August of each year, each energy company shall file a written 5,549
report with the tax commissioner DIRECTOR OF DEVELOPMENT 5,550
regarding the impact, if any, of the requirements of division (E) 5,552
of section 5117.11 of the Revised Code on the number of 5,553
uncollectible and past due residential accounts for the 5,554
twelve-month period ending on the preceding thirty-first day of 5,555
July. The report shall include such information as is prescribed 5,556
by the tax commissioner DIRECTOR. The information shall be based 5,558
on actual reviews of residential customer accounts and shall be 5,559
presented in verifiable form. The tax commissioner DIRECTOR may 5,560
consult with the public utilities commission and the consumers' 5,562
counsel in prescribing the contents of such reports and complying 5,563
with the requirements of division (C)(4) of this section. 5,564
(B) Before the thirty-first day of January of each year, 5,566
the tax commissioner DIRECTOR shall prepare a written report 5,567
including a final review of the Ohio energy credit program for 5,569
which applications were required to be mailed or provided by the 5,570
fifteenth day of June of the second preceding calendar year 5,571
pursuant to section 5117.03 of the Revised Code and an interim 5,572
review of the program for which applications were required to be 5,573
mailed or provided by the fifteenth day of June of the preceding 5,574
calendar year under such section. On or before the thirty-first 5,575
day of January of each year, the commissioner DIRECTOR shall 5,576
provide written copies of such report to the speaker of the house 5,578
of representatives, president of the senate, minority leaders of 5,579
134
the house of representatives and senate, chairpersons of the 5,581
house finance and appropriations committee and senate finance 5,582
committee, chairpersons of the committees of the house of 5,583
representatives and senate customarily entrusted with matters 5,584
concerning public utilities, clerk of the house of 5,585
representatives, and clerk of the senate. 5,586
(C) Each report prepared under division (B) of this 5,588
section shall include a review of: 5,589
(1) Program costs; 5,591
(2) The number of persons receiving credits or payments 5,593
under the program; 5,594
(3) Progress in the implementation of any changes in the 5,596
program made by the general assembly within the period covered by 5,597
the report; 5,598
(4) The impact, if any, of the requirements of division 5,600
(E) of section 5117.11 of the Revised Code on the number of 5,601
uncollectible and past due residential accounts of energy 5,602
companies for the twelve-month period ending on the preceding 5,603
thirty-first day of July; 5,604
(5) The impact of any federal energy assistance programs 5,606
available to the same groups of people as are eligible for the 5,607
energy credit program under sections 5117.01 to 5117.12 of the 5,608
Revised Code, together with any recommendations on modifications 5,609
that may, because of the federal programs, be needed in the 5,610
energy credit program; 5,611
(6) Any suggestions for improving the program; 5,613
(7) Any other matters considered appropriate by the 5,615
commissioner DIRECTOR. 5,616
(D) The tax commissioner DIRECTOR shall consult with the 5,618
auditor of state, energy companies, energy dealers, department of 5,620
aging, and commission on Hispanic-Latino affairs in the 5,622
preparation of any report under this section. The commissioner 5,623
DIRECTOR may require information from such agencies for the 5,625
purpose of preparing such report.
135
Sec. 5701.03. As used in Title LVII of the Revised Code: 5,634
(A) "Personal property" includes every tangible thing that 5,636
is the subject of ownership, whether animate or inanimate, 5,637
including a business fixture, and that does not constitute real 5,638
property as defined in section 5701.02 of the Revised Code. 5,639
"Personal property" also includes every share, portion, right, or 5,640
interest, either legal or equitable, in and to every ship, 5,641
vessel, or boat, used or designed to be used in business either 5,642
exclusively or partially in navigating any of the waters within 5,643
or bordering on this state, whether such ship, vessel, or boat is 5,644
within the jurisdiction of this state or elsewhere. "Personal 5,645
property" does not include money as defined in section 5701.04 of 5,646
the Revised Code, motor vehicles registered by the owner thereof, 5,647
ELECTRICITY, or, for purposes of any tax levied on personal 5,649
property, patterns, jigs, dies, or drawings that are held for use 5,650
and not for sale in the ordinary course of business, except to 5,651
the extent that the value of the ELECTRICITY, patterns, jigs, 5,652
dies, or drawings is included in the valuation of inventory 5,654
produced for sale.
(B) "Business fixture" means an item of tangible personal 5,656
property that has become permanently attached or affixed to the 5,657
land or to a building, structure, or improvement, and that 5,658
primarily benefits the business conducted by the occupant on the 5,659
premises and not the realty. "Business fixture" includes, but is 5,660
not limited to, machinery, equipment, signs, storage bins and 5,661
tanks, whether above or below ground, and broadcasting, 5,662
transportation, transmission, and distribution systems, whether 5,663
above or below ground. "Business fixture" also means those 5,664
portions of buildings, structures, and improvements that are 5,665
specially designed, constructed, and used for the business 5,666
conducted in the building, structure, or improvement, including, 5,667
but not limited to, foundations and supports for machinery and 5,668
equipment. "Business fixture" does not include fixtures that are 5,669
common to buildings, including, but not limited to, heating, 5,670
136
ventilation, and air conditioning systems primarily used to 5,671
control the environment for people or animals, tanks, towers, and 5,672
lines for potable water or water for fire control, electrical and 5,673
communication lines, and other fixtures that primarily benefit 5,674
the realty and not the business conducted by the occupant on the 5,675
premises. 5,676
Sec. 5703.052. There is hereby created in the state 5,685
treasury the tax refund fund, from which refunds shall be paid 5,686
for taxes illegally or erroneously assessed or collected, or for 5,687
any other reason overpaid, that are levied by Chapter 4301., 5,688
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 5,689
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36, 5,690
4303.33, 5707.03, 5725.18, 5727.38, AND 5727.81, and former 5,692
sections 5727.27 and 5727.40 of the Revised Code. Refunds for 5,694
fees illegally or erroneously assessed or collected, or for any 5,695
other reason overpaid, that are levied by sections 3734.90 to 5,696
3734.9014 of the Revised Code also shall be paid from the fund. 5,697
However, refunds for taxes levied under section 5739.101 of the 5,698
Revised Code shall not be paid from the tax refund fund, but 5,699
shall be paid as provided in section 5739.104 of the Revised 5,700
Code.
Upon certification by the tax commissioner to the treasurer 5,702
of state of a tax refund, fee refund, or tax credit due, or by 5,703
the superintendent of insurance of a domestic or foreign 5,704
insurance tax refund, the treasurer of state may place the amount 5,705
certified to the credit of the fund. The certified amount 5,706
transferred shall be derived from current receipts of the same 5,707
tax or the fee for which the refund arose or, in the case of a 5,708
tax credit refund, from the current receipts of the taxes levied 5,709
by sections 5739.02 and 5741.02 of the Revised Code. 5,710
If the tax refund arises from a tax payable to the general 5,712
revenue fund, and current receipts from that source are 5,713
inadequate to make the transfer of the amount so certified, the 5,714
treasurer of state may transfer such certified amount from 5,715
137
current receipts of the sales tax levied by section 5739.02 of 5,716
the Revised Code. 5,717
Sec. 5703.053. As used in this section, "postal service" 5,726
means the United States postal service. 5,727
An application to the tax commissioner for a tax refund 5,729
under sections 4307.05, 4307.07, 5727.91, 5728.061, 5735.122, 5,730
5735.13, 5735.14, 5735.141, 5735.142, 5739.07, 5741.10, 5743.05, 5,732
5743.53, 5749.08, and 5753.06 of the Revised Code or division (B) 5,733
of section 5703.05 of the Revised Code, or a fee refunded under 5,734
section 3734.905 of the Revised Code, that is received after the 5,735
last day for filing under such section shall be considered to 5,736
have been filed in a timely manner if: 5,737
(A) The application is delivered by the postal service and 5,739
the earliest postal service postmark on the cover in which the 5,740
application is enclosed is not later than the last day for filing 5,741
the application; 5,742
(B) The application is delivered by the postal service, 5,744
the only postmark on the cover in which the application is 5,745
enclosed was affixed by a private postal meter, the date of that 5,746
postmark is not later than the last day for filing the 5,747
application, and the application is received within seven days of 5,748
such last day; or 5,749
(C) The application is delivered by the postal service, no 5,751
postmark date was affixed to the cover in which the application 5,752
is enclosed or the date of the postmark so affixed is not 5,753
legible, and the application is received within seven days of the 5,754
last day for making the application. 5,755
Sec. 5703.14. (A) Any rule adopted by the board of tax 5,764
appeals and any rule of the department of taxation adopted by the 5,765
tax commissioner shall be effective on the tenth day after the 5,766
day on which the rule in final form and in compliance with 5,767
division (B) of this section is filed by the board or the 5,768
commissioner as follows: 5,769
(1) Two certified copies of the rule shall be filed with 5,771
138
both the secretary of state and the director of the legislative 5,772
service commission; 5,773
(2) Two certified copies of the rule shall be filed with 5,775
the joint committee on agency rule review. Division (A)(2) of 5,776
this section does not apply to any rule to which division (H) of 5,777
section 119.03 of the Revised Code does not apply. 5,778
If all copies are not filed on the same day, the rule shall 5,780
be effective on the tenth day after the day on which the latest 5,781
filing is made. If the board or the commissioner in adopting a 5,782
rule designates an effective date that is later than the 5,783
effective date provided for by this division, the rule if filed 5,784
as required by this division shall become effective on the later 5,785
date designated by the board or commissioner. 5,786
(B) The board and commissioner shall file the rule in 5,788
compliance with the following standards and procedures: 5,789
(1) The rule shall be numbered in accordance with the 5,791
numbering system devised by the director for the Ohio 5,792
administrative code. 5,793
(2) The rule shall be prepared and submitted in compliance 5,795
with the rules of the legislative service commission. 5,796
(3) The rule shall clearly state the date on which it is 5,798
to be effective and the date on which it will expire, if known. 5,799
(4) Each rule that amends or rescinds another rule shall 5,801
clearly refer to the rule that is amended or rescinded. Each 5,802
amendment shall fully restate the rule as amended. 5,803
If the director of the legislative service commission or 5,805
his THE DIRECTOR'S designee gives the board or commissioner 5,806
written notice pursuant to section 103.05 of the Revised Code 5,807
that a rule filed by the board or commissioner is not in 5,808
compliance with the rules of the legislative service commission, 5,809
the board or commissioner shall within thirty days after receipt 5,810
of the notice conform the rule to the rules of the legislative 5,811
service commission as directed in the notice. 5,812
All rules of the department and board filed pursuant to 5,814
139
division (A)(1) of this section shall be recorded by the 5,815
secretary of state and the director under the name of the 5,816
department or board and shall be numbered in accordance with the 5,817
numbering system devised by the director. The secretary of state 5,818
and the director shall preserve the rules in an accessible 5,819
manner. Each such rule shall be a public record open to public 5,820
inspection and may be lent to any law publishing company that 5,821
wishes to reproduce it. Each such rule shall also be made 5,822
available to interested parties upon request directed to the 5,823
department. 5,824
(C) Applications for review of any rule adopted and 5,826
promulgated by the commissioner may be filed with the board by 5,827
any person who has been or may be injured by the operation of the 5,828
rule. The appeal may be taken at any time after the rule is 5,829
filed with the secretary of the state, the director of the 5,830
legislative service commission, and, if applicable, the joint 5,831
committee on agency rule review. Failure to file an appeal does 5,832
not preclude any person from seeking any other remedy against the 5,833
application of the rule to him THE PERSON. The applications 5,834
shall set forth, or have attached thereto and incorporated by 5,835
reference, a true copy of the rule, and shall allege that the 5,836
rule complained of is unreasonable and shall state the grounds 5,837
upon which the allegation is based. Upon the filing of the 5,838
application, the board shall notify the commissioner of the 5,839
filing of the application, fix a time for hearing the 5,840
application, notify the commissioner and the applicant of the 5,841
time for the hearing, and afford both an opportunity to be heard. 5,842
The appellant, the tax commissioner, and any other interested 5,843
persons that the board permits, may introduce evidence. The 5,844
burden of proof to show that the rule is unreasonable shall be 5,845
upon the appellant. After the hearing, the board shall determine 5,846
whether the rule complained of is reasonable or unreasonable. A 5,847
determination that the rule complained of is unreasonable shall 5,848
require a majority vote of the three members of the board, and 5,849
140
the reasons for the determination shall be entered on the journal 5,850
of the board. 5,851
Upon determining that the rule complained of is 5,853
unreasonable, the board shall file copies of its determination as 5,854
follows: 5,855
(1) Two certified copies of the determination shall be 5,857
filed with both the secretary of state and the director of the 5,858
legislative service commission, who shall note the date of their 5,859
receipt of the certified copies conspicuously in their files of 5,860
the rules of the department; 5,861
(2) Two certified copies of the determination shall be 5,863
filed with the joint committee on agency rule review. Division 5,864
(C)(2) of this section does not apply to any rule to which 5,865
division (H) of section 119.03 of the Revised Code does not 5,866
apply. 5,867
On the tenth day after the copies of the determination have 5,869
been received by the secretary of state, the director, and, if 5,870
applicable, the joint committee, the rule referred to in the 5,871
determination shall cease to be in effect. If all copies of the 5,872
determination are not filed on the same day, the rule shall 5,873
remain in effect until the tenth day after the day on which the 5,874
latest filing is made. This section does not apply to licenses 5,875
issued under sections 5735.02, 5739.17, and 5743.15 of the 5,876
Revised Code, which shall be governed by sections 119.01 to 5,877
119.13 of the Revised Code. 5,878
The board is not required to hear an application for the 5,880
review of any rule where the grounds of the allegation that the 5,881
rule is unreasonable have been previously contained in an 5,882
application for review and have been previously heard and passed 5,883
upon by the board. 5,884
(D) This section does not apply to the adoption of any 5,886
rule, or to the amendment or rescission of any rule by the 5,887
DIRECTOR OF DEVELOPMENT IN CONSULTATION WITH THE tax commissioner 5,889
under division (C)(1) or (2) of section 5117.02 of the Revised 5,890
141
Code.
(E) As used in this section, "substantive revision" has 5,892
the same meaning as in division (J) of section 119.01 of the 5,893
Revised Code. 5,894
Sec. 5705.34. When the budget commission has completed its 5,903
work with respect to a tax budget, it shall certify its action to 5,904
the taxing authority, together with an estimate by the county 5,906
auditor of the rate of each tax necessary to be levied by the 5,907
taxing authority within its subdivision or taxing unit, and what
part thereof is in excess of, and what part within, the ten-mill 5,908
tax limitation. The certification shall also indicate the date 5,909
on which each tax levied by the taxing authority will expire. 5,910
Each
IF A TAXING AUTHORITY LEVIES A TAX FOR A FIXED SUM OF MONEY 5,912
OR TO PAY DEBT CHARGES FOR THE TAX YEAR FOR WHICH THE TAX BUDGET 5,913
IS PREPARED, AND THE TAX WAS LEVIED IN TAX YEAR 1998, THE COUNTY 5,914
AUDITOR, WHEN ESTIMATING THE RATE AT WHICH THE TAX SHALL BE 5,915
LEVIED IN THE CURRENT YEAR, SHALL ESTIMATE THE RATE NECESSARY TO 5,916
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 5,917
5727.86 OF THE REVISED CODE. THE ESTIMATED RATE SHALL BE THE 5,918
RATE OF THE LEVY THAT THE BUDGET COMMISSION CERTIFIES WITH ITS 5,919
ACTION UNDER THIS SECTION. 5,920
EACH taxing authority, by ordinance or resolution, shall 5,922
authorize the necessary tax levies and certify them to the county 5,923
auditor before the first day of October in each year, or at such 5,924
later date as is approved by the tax commissioner, except that 5,925
the certification by a board of education shall be made by the 5,926
first day of April or at such later date as is approved by the 5,927
commissioner, and except that a township board of park
commissioners that is appointed by the board of township trustees 5,928
and oversees a township park district that contains only 5,929
unincorporated territory shall authorize only those taxes 5,930
approved by, and only at the rate approved by, the board of 5,931
142
township trustees as required by division (C) of section 511.27
of the Revised Code. If the levying of a tax to be placed on the 5,932
duplicate of the current year is approved by the electors of the 5,933
subdivision under sections 5705.01 to 5705.47 of the Revised 5,934
Code; if the rate of a school district tax is increased due to 5,935
the repeal of a school district income tax and property tax rate 5,936
reduction at an election held pursuant to section 5748.04 of the
Revised Code; or if refunding bonds to refund all or a part of 5,937
the principal of bonds payable from a tax levy for the ensuing 5,938
fiscal year are issued or sold and in the process of delivery, 5,939
the budget commission shall reconsider and revise its action on 5,940
the budget of the subdivision or school library district for 5,941
whose benefit the tax is to be levied after the returns of such
election are fully canvassed, or after the issuance or sale of 5,942
such refunding bonds is certified to it. 5,943
Sec. 5727.01. As used in this chapter: 5,952
(A) "Public utility" means each person referred to as a 5,954
telephone company, telegraph company, electric company, natural 5,955
gas company, pipe-line company, water-works company, water 5,956
transportation company, heating company, rural electric company, 5,957
or railroad company. 5,958
(B) "Gross receipts" means the entire receipts for 5,960
business done by any person from operation as a public utility, 5,961
or incidental thereto, or in connection therewith, INCLUDING ANY 5,962
RECEIPTS RECEIVED UNDER CHAPTER 4928. OF THE REVISED CODE. The 5,963
gross receipts for business done by an incorporated company 5,964
engaged in operation as a public utility includes the entire 5,965
receipts for business done by such company under the exercise of 5,966
its corporate powers, whether from the operation as a public 5,967
utility or from any other business. 5,968
(C) "Rural electric company" means any nonprofit 5,970
corporation, organization, association, or cooperative engaged in 5,971
the business of supplying electricity to its members or persons 5,972
owning an interest therein in an area the major portion of which 5,973
143
is rural. 5,974
(D) Any person: 5,976
(1) Is a telegraph company when engaged in the business of 5,978
transmitting telegraphic messages to, from, through, or in this 5,979
state; 5,980
(2) Is a telephone company when primarily engaged in the 5,982
business of providing local exchange telephone service, excluding 5,983
cellular radio service, in this state; 5,984
(3) Is an electric company when engaged in the business of 5,986
generating, transmitting, or distributing electricity within this 5,987
state for use by others, BUT EXCLUDES A RURAL ELECTRIC COMPANY; 5,988
(4) Is a natural gas company when engaged in the business 5,990
of supplying natural gas for lighting, power, or heating purposes 5,991
to consumers within this state; 5,992
(5) Is a pipe-line company when engaged in the business of 5,994
transporting natural gas, oil, or coal or its derivatives through 5,995
pipes or tubing, either wholly or partially within this state; 5,996
(6) Is a water-works company when engaged in the business 5,998
of supplying water through pipes or tubing, or in a similar 5,999
manner, to consumers within this state; 6,000
(7) Is a water transportation company when engaged in the 6,002
transportation of passengers or property, by boat or other 6,003
watercraft, over any waterway, whether natural or artificial, 6,004
from one point within this state to another point within this 6,005
state, or between points within this state and points without 6,006
this state; 6,007
(8) Is a heating company when engaged in the business of 6,009
supplying water, steam, or air through pipes or tubing to 6,010
consumers within this state for heating purposes; 6,011
(9) Is a railroad company when engaged in the business of 6,013
owning or operating a railroad either wholly or partially within 6,014
this state on rights-of-way acquired and held exclusively by such 6,016
company, or otherwise, and includes a passenger, street, 6,017
suburban, or interurban railroad company. 6,018
144
As used in division (D)(2) of this section, "local exchange 6,020
telephone service" means making available or furnishing access 6,021
and a dial tone to all persons within a local calling area for 6,022
use in originating and receiving voice grade communications over 6,023
a switched network operated by the provider of the service within 6,024
the area and for gaining access to other telecommunication 6,025
services. 6,026
(E) "Taxable property" means the property required by 6,028
section 5727.06 of the Revised Code to be assessed by the tax 6,029
commissioner, but does not include either of the following: 6,030
(1) An item of tangible personal property that for the 6,032
period subsequent to the effective date of an air, water, or 6,033
noise pollution control certificate and continuing so long as the 6,034
certificate is in force, has been certified as part of the 6,035
pollution control facility with respect to which the certificate 6,036
has been issued; 6,037
(2) An item of tangible personal property that during the 6,039
construction of a plant or facility and until the item is first 6,040
capable of operation, whether actually used in operation or not, 6,041
is incorporated in or being held exclusively for incorporation in 6,042
that plant or facility. 6,043
(F) "Taxing district" means a municipal corporation or 6,045
township, or part thereof, in which the aggregate rate of 6,046
taxation is uniform. 6,047
(G) "Telecommunications service" has the same meaning as 6,049
in division (AA) of section 5739.01 of the Revised Code. 6,050
(H) "Interexchange telecommunications company" means a 6,052
person that is engaged in the business of transmitting telephonic 6,053
messages to, from, through, or in this state, but that is not a 6,054
telephone company. 6,055
(I) "Sale and leaseback transaction" means a transaction 6,057
in which a public utility or interexchange telecommunications 6,058
company sells any tangible personal property to a person other 6,059
than a public utility or interexchange telecommunications company 6,060
145
and within the same calendar year leases that property back from 6,061
the buyer. 6,062
(J) "PRODUCTION EQUIPMENT" MEANS ALL TAXABLE STEAM, 6,064
NUCLEAR, HYDRAULIC, AND OTHER PRODUCTION PLANT EQUIPMENT USED TO 6,065
GENERATE ELECTRICITY. FOR TAX YEARS PRIOR TO 2001, "PRODUCTION 6,066
EQUIPMENT" INCLUDES TAXABLE STATION EQUIPMENT THAT IS LOCATED AT 6,067
A PRODUCTION PLANT. 6,068
(K) "TAX YEAR" MEANS THE YEAR FOR WHICH PROPERTY OR GROSS 6,070
RECEIPTS ARE SUBJECT TO ASSESSMENT UNDER THIS CHAPTER. THIS 6,071
DIVISION DOES NOT LIMIT THE TAX COMMISSIONER'S ABILITY TO ASSESS 6,072
AND VALUE PROPERTY OR GROSS RECEIPTS OUTSIDE THE TAX YEAR. 6,073
(L) "COMBINED COMPANY" MEANS ANY PERSON ENGAGED IN THE 6,075
ACTIVITY OF AN ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY THAT IS 6,076
ALSO ENGAGED IN THE ACTIVITY OF A HEATING COMPANY OR A NATURAL 6,077
GAS COMPANY, OR ANY COMBINATION THEREOF. 6,078
Sec. 5727.02. As used in this chapter, "public utility," 6,087
"electric company," "natural gas company," "pipe-line company," 6,088
"water-works company," "water transportation company" or "heating 6,089
company" does not include ANY OF THE FOLLOWING: 6,090
(A) Any person that is engaged in some other primary 6,092
business to which the supplying of electricity, heat, natural 6,093
gas, water, water transportation, steam, or air to others is 6,094
incidental; or. AS USED IN THIS DIVISION, "SUPPLYING OF 6,095
ELECTRICITY" MEANS GENERATING, TRANSMITTING, OR DISTRIBUTING 6,096
ELECTRICITY.
(B) Any person that supplies electricity, natural gas, 6,098
water, water transportation, steam, or air to its tenants, 6,099
whether for a separate charge or otherwise; or 6,100
(C) Any person whose primary business in this state 6,102
consists of producing, refining, or marketing petroleum or its 6,103
products. 6,104
Sec. 5727.03. (A) A COMBINED COMPANY SHALL FILE A 6,106
SEPARATE REPORT UNDER SECTION 5727.08 OF THE REVISED CODE FOR 6,108
EACH LISTED ACTIVITY OF A COMBINED COMPANY. THE TAX COMMISSIONER 6,110
146
SHALL SEPARATELY VALUE, APPORTION, AND ASSESS THE COMPANY'S 6,111
PROPERTY. DIVISIONS (B)(1), (2), AND (3) OF THIS SECTION SHALL 6,112
BE USED TO DETERMINE THE TAXABLE PROPERTY THAT CANNOT DIRECTLY BE 6,113
ATTRIBUTED TO PROVIDING ONE OF THE LISTED ACTIVITIES OF A 6,114
COMBINED COMPANY. BEGINNING WITH THE PUBLIC UTILITY EXCISE TAX 6,116
ASSESSED BY THE TAX COMMISSIONER ON OR BEFORE THE FIRST MONDAY IN 6,117
NOVEMBER 2002, DIVISION (C) OF THIS SECTION SHALL BE USED BY THE 6,119
TAX COMMISSIONER TO SEPARATE THE GROSS RECEIPTS OF A COMBINED 6,120
COMPANY ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A 6,121
RURAL ELECTRIC COMPANY.
(B)(1) THE TAXABLE PROPERTY TO ATTRIBUTE TO AN ELECTRIC 6,123
COMPANY OR A RURAL ELECTRIC COMPANY ACTIVITY SHALL BE THE TAXABLE 6,124
COST OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED TO A 6,125
LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED BY A NUMERATOR 6,126
THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE DIRECTLY 6,127
ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A RURAL 6,128
ELECTRIC COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE 6,129
COST THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES 6,130
OF A COMBINED COMPANY. 6,131
(2) THE TAXABLE PROPERTY TO ATTRIBUTE TO A HEATING COMPANY 6,133
SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE DIRECTLY 6,134
ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED 6,135
BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE 6,136
DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A HEATING COMPANY AND A 6,137
DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST THAT CAN BE 6,138
DIRECTLY ATTRIBUTED TO ALL LISTED ACTIVITIES OF A COMBINED 6,139
COMPANY.
(3) THE TAXABLE PROPERTY TO ATTRIBUTE TO A NATURAL GAS 6,141
COMPANY SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE 6,142
DIRECTLY ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY 6,143
MULTIPLIED BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY 6,144
THAT CAN BE DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A NATURAL GAS 6,145
COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST 6,146
THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES OF A 6,147
147
COMBINED COMPANY. 6,148
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THE REVISED 6,150
CODE, A COMBINED COMPANY SHALL CONTINUE TO BE SUBJECT TO THE 6,151
EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE. FROM 6,152
THE REPORT FILED BY A COMBINED COMPANY UNDER SECTION 5727.31 OF 6,153
THE REVISED CODE, THE TAX COMMISSIONER SHALL EXCLUDE THE TAXABLE 6,155
GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO THE ACTIVITY OF AN 6,156
ELECTRIC COMPANY OR A RURAL ELECTRIC COMPANY. IN ADDITION, THE 6,157
TAX COMMISSIONER SHALL EXCLUDE THE PORTION OF TAXABLE GROSS 6,158
RECEIPTS THAT CANNOT BE ATTRIBUTED TO A LISTED COMBINED PUBLIC 6,159
UTILITY ACTIVITY OR ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO 6,160
THE EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE BY 6,161
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 6,162
THAT IS THE SUM OF THE TAXABLE GROSS RECEIPTS THAT CAN BE 6,163
DIRECTLY ATTRIBUTED TO A LISTED COMBINED COMPANY ACTIVITY OR 6,164
ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO THE EXCISE TAX IMPOSED 6,165
BY SECTION 5727.30 OF THE REVISED CODE. FOR PURPOSES OF 6,166
DETERMINING THE TAXABLE GROSS RECEIPTS FOR PROVIDING ELECTRIC 6,167
COMPANY OR RURAL ELECTRIC COMPANY SERVICE UNDER THIS DIVISION, 6,168
THE TAXABLE GROSS RECEIPTS AS REPORTED UNDER SECTION 5727.32 OF 6,169
THE REVISED CODE AND DETERMINED UNDER SECTION 5727.33 OF THE 6,170
REVISED CODE, PRIOR TO THE AMENDMENT OF THOSE SECTIONS BY 6,171
SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd GENERAL ASSEMBLY, SHALL 6,175
BE USED.
Sec. 5727.05. This chapter does SECTIONS 5727.01 TO 6,184
5727.61 OF THE REVISED CODE DO not apply to either of the 6,185
following:
(A) Nonprofit corporations as defined in division (C) of 6,187
section 1702.01 of the Revised Code that are engaged exclusively 6,188
in the treatment, distribution, and sale of water to consumers; 6,189
(B) Municipal corporations within this state. 6,191
Sec. 5727.06. (A) Except as otherwise provided by law, 6,200
148
the following constitutes the taxable property of a public 6,201
utility or interexchange telecommunications company that shall be 6,202
assessed by the tax commissioner: 6,203
(1) In the case of a railroad company, all real property 6,205
and tangible personal property owned or operated by the railroad 6,206
company in this state on the thirty-first day of December of the 6,207
preceding year; 6,208
(2) In the case of a water transportation company, all 6,210
tangible personal property, except watercraft, owned or operated 6,211
by the water transportation company in this state on the 6,212
thirty-first day of December of the preceding year and all 6,213
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year; 6,214
(3) In the case of all other public utilities and 6,216
interexchange telecommunications companies, all tangible personal 6,217
property that on the thirty-first day of December of the 6,218
preceding year was both located in this state and: 6,219
(a) Owned by the public utility or interexchange 6,221
telecommunications company; or 6,222
(b) Leased by the public utility or interexchange 6,224
telecommunications company under a sale and leaseback 6,225
transaction. 6,226
(B) In the case of an interexchange telecommunications 6,228
company, all taxable property shall be subject to the provisions 6,229
of this chapter and shall be valued by the commissioner in 6,230
accordance with division (B)(A) of section 5727.11 of the Revised 6,232
Code and assessed by the commissioner in accordance with division 6,233
(G) of section 5727.111 of the Revised Code. A person described 6,235
by this division shall file the report required by section 6,236
5727.08 of the Revised Code. Persons described in this division 6,237
shall not be considered taxpayers, as defined in division (B) of 6,238
section 5711.01 of the Revised Code, and shall not be required to 6,239
file a return and list their taxable property under any provision 6,240
of Chapter 5711. of the Revised Code. 6,241
149
(C) The lien of the state for taxes levied each year on 6,243
the real and personal property of public utilities and 6,244
interexchange telecommunications companies shall attach thereto 6,245
on the thirty-first day of December of the preceding year. 6,246
(D) Property that is required by division (A)(3)(b) of 6,248
this section to be assessed by the tax commissioner under this 6,249
chapter shall not be listed by the owner of the property under 6,250
Chapter 5711. of the Revised Code. 6,251
(E) The tax commissioner may adopt rules governing the 6,253
listing of the taxable property of public utilities and 6,254
interexchange telecommunications companies and the determination 6,255
of true value. 6,256
Sec. 5727.11. (A) As used in this section, section 6,265
5727.111, and division (C) of section 5727.15 of the Revised 6,266
Code, "production equipment" means all taxable steam, nuclear, 6,267
hydraulic, and other production plant equipment, and all taxable 6,268
station equipment that is located at a production plant. 6,269
(B) Except as provided in divisions (B), (C), (D), (E), 6,272
and (G)(F) of this section, the true value of all taxable 6,274
property required by division (A)(2) or (3) of section 5727.06 of 6,276
the Revised Code to be assessed by the tax commissioner shall be 6,277
determined by a method of valuation using cost as capitalized on 6,278
the public utility's books and records less composite annual 6,279
allowances as prescribed by the commissioner. If the 6,280
commissioner finds that application of this method will not 6,281
result in the determination of true value of the public utility's 6,282
taxable property, he THE COMMISSIONER may use another method of 6,284
valuation. The cost of property subject to a sale and leaseback 6,285
transaction is the cost of the property as capitalized on the 6,286
books and records of the public utility owning the property 6,287
immediately prior to the sale and leaseback transaction.
(C)(B) The true value of current gas stored underground is 6,289
the cost of that gas shown on the books and records of the public 6,290
utility on the thirty-first day of December of the preceding 6,291
150
year. 6,292
(D)(C) The true value of noncurrent gas stored underground 6,294
is thirty-five per cent of the cost of that gas shown on the 6,295
books and records of the public utility on the thirty-first day 6,296
of December of the preceding year. 6,297
(E) The (D)(1) EXCEPT AS PROVIDED IN DIVISION (D)(2) OF 6,300
THIS SECTION, THE true value of the production equipment of an 6,301
electric company and the true value of all taxable property of a 6,302
rural electric company is the equipment's or property's cost as 6,303
capitalized on the company's books and records less fifty per 6,304
cent of that cost as an allowance for depreciation and 6,305
obsolescence. The cost of equipment or property subject to a 6,306
sale and leaseback transaction is the cost of the property as 6,307
capitalized on the books and records of the public utility owning 6,308
the equipment or property immediately prior to the sale and 6,309
leaseback transaction. 6,310
(2) THE TRUE VALUE OF THE PRODUCTION EQUIPMENT OF AN 6,312
ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY PURCHASED, 6,313
TRANSFERRED, OR PLACED INTO SERVICE AFTER THE EFFECTIVE DATE OF 6,315
THIS AMENDMENT IS THE PURCHASE PRICE OF THE EQUIPMENT AS 6,316
CAPITALIZED ON THE COMPANY'S BOOKS AND RECORDS LESS COMPOSITE 6,317
ANNUAL ALLOWANCES AS PRESCRIBED BY THE TAX COMMISSIONER. 6,318
(F)(E) The true value of taxable property described in 6,320
division (A)(2) or (3) of section 5727.06 of the Revised Code 6,321
shall not include the allowance for funds used during 6,322
construction or interest during construction which THAT has been 6,323
capitalized on the public utility's books and records as part of 6,325
the total cost of the taxable property. THIS DIVISION SHALL NOT 6,326
APPLY TO THE TAXABLE PROPERTY OF AN ELECTRIC COMPANY OR A RURAL 6,327
ELECTRIC COMPANY, EXCLUDING TRANSMISSION AND DISTRIBUTION 6,328
PROPERTY, FIRST PLACED INTO SERVICE AFTER DECEMBER 31, 2000, OR 6,329
TO THE TAXABLE PROPERTY A PERSON PURCHASES, WHICH INCLUDES 6,330
TRANSFERS, IF THAT PROPERTY WAS USED IN BUSINESS BY THE SELLER
PRIOR TO THE PURCHASE. 6,331
151
(G)(F) The true value of watercraft owned or operated by a 6,333
water transportation company shall be determined by multiplying 6,335
the true value of the watercraft as determined under division 6,336
(B)(A) of this section by a fraction, the numerator of which is 6,338
the number of revenue-earning miles traveled by the watercraft in
the waters of this state and the denominator of which is the 6,339
number of revenue-earning miles traveled by the watercraft in all 6,340
waters.
(G) THE COST OF PROPERTY SUBJECT TO A SALE AND LEASEBACK 6,342
TRANSACTION IS THE COST OF THE PROPERTY AS CAPITALIZED ON THE 6,343
BOOKS AND RECORDS OF THE PUBLIC UTILITY OWNING THE PROPERTY 6,345
IMMEDIATELY PRIOR TO THE SALE AND LEASEBACK TRANSACTION.
Sec. 5727.111. The taxable property of each public 6,354
utility, except a railroad company, and of each interexchange 6,355
telecommunications company shall be assessed at the following 6,356
percentages of true value: 6,357
(A) Fifty per cent in the case OF THE TAXABLE TRANSMISSION 6,359
AND DISTRIBUTION PROPERTY of a rural electric company, AND 6,361
TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE PROPERTY; 6,362
(B) In the case of a telephone or telegraph company, the 6,365
percentage provided under division (E) of section 5711.22 of the 6,366
Revised Code TWENTY-FIVE PER CENT for taxable property first 6,368
subject to taxation in this state for tax year 1995 or 6,369
thereafter, and eighty-eight per cent for all other taxable
property;
(C) Eighty-eight per cent in the case of a natural gas or 6,371
pipe-line company; 6,372
(D) Eighty-eight per cent in the case of a water-works or 6,374
heating company; 6,375
(E) One hundred per cent in the case of the taxable 6,377
production equipment of an electric company; 6,378
(F) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION 6,381
(E)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of all 6,382
taxable personal THE TAXABLE TRANSMISSION AND DISTRIBUTION 6,383
152
property of an electric company, other than its production 6,385
equipment AND TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE
PROPERTY; 6,386
(2) PROPERTY LISTED AND ASSESSED UNDER DIVISIONS (B)(1) 6,388
AND (2) OF SECTION 5711.22 OF THE REVISED CODE SHALL CONTINUE TO 6,390
BE ASSESSED AT ONE HUNDRED PER CENT FOR PRODUCTION EQUIPMENT AND
EIGHTY-EIGHT PER CENT FOR ALL OTHER TAXABLE PROPERTY UNTIL 6,391
JANUARY 1, 2002. 6,392
(G) The percentage provided under division (E) of section 6,395
5711.22 of the Revised Code (F) TWENTY-FIVE PER CENT in the case 6,396
of an interexchange telecommunications company; 6,398
(H)(G) Twenty-five per cent in the case of a water 6,400
transportation company. 6,401
Sec. 5727.15. When all the taxable property of a public 6,410
utility is located in one taxing district, the tax commissioner 6,411
shall apportion the total taxable value thereof to that taxing 6,412
district. 6,413
When taxable property of a public utility is located in 6,415
more than one taxing district, the commissioner shall apportion 6,416
the total taxable value thereof among the taxing districts as 6,417
follows: 6,418
(A)(1) In the case of a telegraph, interexchange 6,420
telecommunications, or telephone company that owns miles of wire 6,421
in this state, the value apportioned to each taxing district 6,423
shall be the same percentage of the total value apportioned to 6,424
all taxing districts as the miles of wire owned by the company 6,425
within the taxing district are to the total miles of wire owned 6,426
by the company within this state;
(2) In the case of a telegraph, interexchange 6,428
telecommunications, or telephone company that does not own miles 6,429
of wire in this state, the value apportioned to each taxing 6,430
district shall be the same percentage of the total value 6,431
apportioned to all taxing districts as the cost of the taxable
property physically located in the taxing district is of the 6,432
153
total cost of all taxable property physically located in this 6,433
state.
(B) In the case of a railroad company: 6,435
(1) The taxable value of real and personal property not 6,437
used in railroad operations shall be apportioned according to its 6,438
situs; 6,439
(2) The taxable value of personal property used in 6,441
railroad operations shall be apportioned to each taxing district 6,442
in proportion to the miles of track and trackage rights, weighted 6,443
to reflect the relative use of such personal property in each 6,444
taxing district; 6,445
(3) The taxable value of real property used in railroad 6,447
operations shall be apportioned to each taxing district in 6,448
proportion to its relative value in each taxing district. 6,449
(C) In the case of an electric company: 6,451
(1) Seventy per cent of the THE TAXABLE value of all 6,453
production equipment and of all station equipment that is not 6,454
production equipment shall be apportioned to the taxing district 6,455
in which such property is physically located; and 6,456
(2) The remaining value of such property, together with 6,458
the value of all other taxable PERSONAL property, shall be 6,459
apportioned to each taxing district in the per cent PROPORTION 6,461
that the cost of all transmission and distribution THE TAXABLE 6,463
PERSONAL property physically located in the EACH taxing district 6,465
is of the total cost of all transmission and distribution TAXABLE 6,466
PERSONAL property physically located in this state. 6,467
(3) If an electric company's taxable value for the current 6,469
year includes the value of any production equipment at a plant at 6,470
which the initial cost of the plant's production equipment 6,471
exceeded one billion dollars, then prior to making the 6,472
apportionments required for that company by divisions (C)(1) and 6,473
(2) of this section, the tax commissioner shall do the following: 6,474
(a) Subtract four hundred twenty million dollars from the 6,476
total taxable value of the production equipment at that plant for 6,477
154
the current tax year. 6,478
(b) Multiply the difference thus obtained by a fraction, 6,480
the numerator of which is the portion of the taxable value of 6,481
that plant's production equipment included in the company's total 6,482
value for the current tax year, and the denominator of which is 6,483
the total taxable value of such equipment included in the total 6,484
taxable value of all electric companies for such year. 6,485
(c) Apportion the product thus obtained to taxing 6,487
districts in the manner prescribed in division (C)(2) of this 6,488
section. 6,489
(d) Deduct the amounts so apportioned from the taxable 6,491
value of the company's production equipment at the plant, prior 6,492
to making the apportionments required by divisions (C)(1) and (2) 6,493
of this section. 6,494
For purposes of division (C) of this section, "initial 6,496
cost" applies only to production equipment of plants placed in 6,497
commercial operation on or after January 1, 1987, and means the 6,498
cost of all production equipment at a plant for the first year 6,499
the plant's equipment was subject to taxation. 6,500
(D) In the case of all other public utilities, the value 6,502
of the property to be apportioned shall be apportioned to each 6,503
taxing district in proportion to the entire value of such 6,504
property within this state. 6,505
Sec. 5727.30. Each public utility, except ELECTRIC 6,514
COMPANIES, RURAL ELECTRIC COMPANIES, AND railroad companies, 6,515
shall be subject to an annual excise tax, as provided by sections 6,517
5727.31 to 5727.62 of the Revised Code, for the privilege of 6,518
owning property in this state or doing business in this state 6,519
during the twelve-month period next succeeding the period upon 6,520
which the tax is based. The tax shall be imposed against each
such public utility which THAT, on the first day of such 6,522
twelve-month period, owns property in this state or is doing 6,524
business in this state, and the lien for the tax, including any 6,526
penalties and interest accruing thereon, shall attach on such day 6,527
155
to the property of the public utility in this state.
Sec. 5727.31. (A) Each public utility, except railroad 6,536
companies, doing business or owning property in this state shall 6,537
SUBJECT TO THE TAX IMPOSED UNDER SECTION 5727.30 OF THE REVISED 6,538
CODE, annually, on or before the first day of August, SHALL file 6,539
with the tax commissioner a statement in such form as the 6,540
commissioner prescribes. 6,541
(B)(1) Annually, on or before the fifteenth day of October 6,543
of the current year, each public utility subject to the excise 6,544
taxes levied by this chapter whose estimated excise taxes for the 6,545
current year as based upon the statement required to be filed in 6,546
that year by division (A) of this section are, in the case of a 6,547
public utility other than a natural gas company, one thousand 6,548
dollars or more, or are, in the case of a natural gas company, 6,549
three hundred twenty-five thousand dollars or more, shall file 6,550
with the treasurer of state a report, in such form as the tax 6,551
commissioner prescribes, showing the amount of excise tax 6,552
estimated to be charged or levied pursuant to law for the current 6,553
year upon the basis of such annual statement, and shall remit a 6,554
portion of the estimated excise taxes shown to be due by the 6,555
report. The portion of the estimated excise taxes due at the 6,556
time the report is filed shall be one-third of its total excise 6,557
taxes estimated to be charged or levied for the current year 6,558
based upon the annual statement filed under division (A) of this 6,559
section. 6,560
(2) Annually, on or before the first day of March and 6,562
June, each public utility subject to the excise taxes levied by 6,563
this chapter whose excise taxes as based upon its last preceding 6,564
annual statement filed under division (A) of this section prior 6,565
to the first day of January were, in the case of a public utility 6,566
other than a natural gas company, one thousand dollars or more, 6,567
or were, in the case of a natural gas company, three hundred 6,568
twenty-five thousand dollars or more, shall file with the 6,569
treasurer of state a report, in such form as the tax commissioner 6,570
156
prescribes, showing the amount of excise tax charged or levied 6,571
pursuant to law upon the basis of such annual statement, and 6,572
shall remit a portion of the excise taxes shown to be due by each 6,573
such report. The portion of the excise taxes due at the time 6,574
each such report is filed shall be one-third of its total excise 6,575
taxes so charged or levied based upon such annual statement. 6,576
(C) Any public utility subject to the excise taxes imposed 6,578
by this chapter SECTION 5727.30 OF THE REVISED CODE whose tax as 6,580
certified under section 5727.38 of the Revised Code in a year 6,581
equals or exceeds the amount specified for that year in section 6,582
5727.311 of the Revised Code shall make the payments required 6,583
under this section in the second ensuing and each succeeding year 6,584
in the manner prescribed by section 5727.311 of the Revised Code, 6,585
except as otherwise prescribed by that section. 6,586
(D)(1) For purposes of this section, a report required to 6,588
be filed under division (B) of this section is considered filed 6,589
when it is received by the treasurer of state. 6,590
(2) For purposes of this section and sections 5727.311 and 6,592
5727.42 of the Revised Code, remittance of an excise tax required 6,593
to be made under this section is considered to be made when the 6,594
remittance is received by the treasurer of state, or when 6,595
credited to an account designated by the treasurer of state for 6,596
the receipt of tax remittances. 6,597
Sec. 5727.311. (A) Any public utility subject to an 6,606
excise tax imposed by this chapter SECTION 5727.30 OF THE REVISED 6,607
CODE whose tax as certified by the tax commissioner under section 6,609
5727.38 of the Revised Code in the year indicated in the 6,610
following schedule equals or exceeds the amount indicated for 6,611
that year in the schedule FIFTY THOUSAND DOLLARS shall make each 6,613
payment required under division (B) of section 5727.31 of the 6,614
Revised Code for the second ensuing and each succeeding year by 6,615
electronic funds transfer as prescribed by division (B) of this 6,616
section. Year for which 6,617
157
tax was certified 1992 1993 and 6,618
thereafter
Amount of tax $100,000 $50,000 6,619
certified
If the tax certified by the tax commissioner in each of two 6,621
consecutive years beginning with 1993 is less than fifty thousand 6,622
dollars, the public utility is relieved of the requirement to 6,623
remit taxes by electronic funds transfer for the year that next 6,624
follows the second of the consecutive years in which the tax 6,625
certified is less than fifty thousand dollars, and is relieved of 6,626
that requirement for each succeeding year unless the tax 6,627
certified in a subsequent year equals or exceeds fifty thousand 6,628
dollars. The tax commissioner shall notify each public utility 6,629
required to remit taxes by electronic funds transfer of the 6,630
public utility's obligation to do so, shall maintain an updated 6,631
list of those public utilities, and shall timely certify the list 6,632
and any additions thereto or deletions therefrom to the treasurer 6,633
of state. Failure by the tax commissioner to notify a public 6,634
utility subject to this section to remit taxes by electronic 6,635
funds transfer does not relieve the public utility of its 6,636
obligation to remit taxes by electronic funds transfer. 6,637
(B) Public utilities required by this section to remit 6,639
periodic payments by electronic funds transfer shall remit such 6,640
payments to the treasurer of state in the manner prescribed by 6,641
rules adopted by the treasurer OF STATE under section 113.061 of 6,642
the Revised Code. The payment of public utility excise taxes by 6,643
electronic funds transfer does not affect a public utility's 6,644
obligation to file the annual statement and periodic reports in 6,645
the manner and at the times prescribed by section 5727.31 of the 6,646
Revised Code. 6,647
A public utility required by this section to remit taxes by 6,649
electronic funds transfer may apply to the treasurer of state in 6,650
the manner prescribed by the treasurer OF STATE to be excused 6,651
from that requirement. The treasurer of state may excuse the 6,652
158
public utility from remittance by electronic funds transfer for 6,653
good cause shown for the period of time requested by the public 6,654
utility or for a portion of that period. The treasurer OF STATE 6,655
shall notify the tax commissioner and the public utility of the 6,656
treasurer's TREASURER OF STATE'S decision as soon as is 6,657
practicable. 6,658
(C) If a public utility required by this section to remit 6,660
taxes by electronic funds transfer remits those taxes by some 6,661
means other than by electronic funds transfer as prescribed by 6,662
this section and the rules adopted by the treasurer of state, and 6,663
the treasurer OF STATE determines that the failure to remit taxes 6,664
as required was not due to reasonable cause or was due to willful 6,665
neglect, the treasurer OF STATE may impose an additional charge 6,666
on the public utility equal to five per cent of the amount of the 6,667
taxes required to be paid by electronic funds transfer, but not 6,668
to exceed five thousand dollars. Any additional charge imposed 6,669
under this section is in addition to any other penalty or charge 6,670
imposed under this chapter, and shall be considered as revenue 6,671
arising from excise taxes imposed by this chapter. 6,672
No additional charge shall be assessed under this division 6,674
against a public utility that has been notified of its obligation 6,675
to remit taxes under this section and that remits its first two 6,676
tax payments after such notification by some means other than 6,677
electronic funds transfer. The additional charge may be assessed 6,678
upon the remittance of any subsequent tax payment that the public 6,679
utility remits by some means other than electronic funds 6,680
transfer. 6,681
Sec. 5727.32. The statement required by section 5727.31 of 6,690
the Revised Code for the purpose of the public utility excise tax 6,691
shall contain: 6,692
(A) The name of the company; 6,694
(B) The nature of the company, whether a person, 6,696
association, or corporation, and under the laws of what state or 6,697
country organized; 6,698
159
(C) The location of its principal office; 6,700
(D) The name and post-office address of the president, 6,702
secretary, auditor, treasurer, and superintendent or general 6,703
manager; 6,704
(E) The name and post-office address of the chief officer 6,706
or managing agent of the company in this state; 6,707
(F) The amount of the excise taxes paid or to be paid with 6,709
the reports made during the current calendar year as provided by 6,710
section 5727.31 of the Revised Code; 6,711
(G) In the case of telegraph and telephone companies: 6,713
(1) The gross receipts from all sources, whether messages, 6,715
telephone tolls, rentals, or otherwise, for business done within 6,716
this state, including all sums earned or charged, whether 6,717
actually received or not, for the year ending on the thirtieth 6,718
day of June, and the company's proportion of gross receipts for 6,719
business done by it within this state in connection with other 6,720
companies, firms, corporations, persons, or associations, but 6,721
excluding all of the following: 6,722
(a) All of the receipts derived wholly from interstate 6,724
business or business done for or with the federal government; 6,725
(b) The receipts of amounts billed on behalf of other 6,727
entities; 6,728
(c) The receipts from sales to other telephone companies 6,730
for resale; 6,731
(d) For the year ending June 30, 1990, and each subsequent 6,733
year, receipts RECEIPTS from sales to providers of 6,734
telecommunications service for resale, receipts from incoming or 6,736
outgoing wide area transmission service or wide area transmission 6,737
type service, including eight hundred or eight-hundred-type 6,738
service, and receipts from private communications service. 6,739
As used in this division, "receipts from sales to other 6,741
telephone companies for resale" and "receipts from sales to 6,742
providers of telecommunications service for resale" include, but 6,743
are not limited to, receipts of carrier access charges. "Carrier 6,744
160
access charges" means compensation paid to the taxpayer telephone 6,745
company by another telephone company or by a provider of 6,746
telecommunications service for the use of the taxpayer's 6,747
facilities to originate or terminate telephone calls or 6,748
telecommunications service. 6,749
(2) The total gross receipts for such period from business 6,751
done within this state. 6,752
(H) In the case of all public utilities, except ELECTRIC 6,754
COMPANIES, RURAL ELECTRIC COMPANIES, telegraph COMPANIES, and 6,756
telephone companies:
(1) The gross receipts of the company, actually received, 6,758
from all sources for business done within this state for the year 6,759
next preceding the first day of May, including the company's 6,760
proportion of gross receipts for business done by it within this 6,761
state in connection with other companies, firms, corporations, 6,762
persons, or associations, but excluding all of the following: 6,763
(a) Receipts from interstate business or business done for 6,765
the federal government; 6,766
(b) Receipts from sales to other public utilities for 6,768
resale, provided such other public utility is required to file a 6,769
statement pursuant to section 5727.31 of the Revised Code; 6,770
(c) For the year ending April 30, 1990, and each 6,772
subsequent year, receipts from the transmission or delivery of 6,773
electricity to or for a rural electric company, provided that the 6,774
electricity that has been so transmitted or delivered is for 6,775
resale by the rural electric company; 6,776
(d) Receipts of an electric company, derived from the 6,778
provision of electricity and other services to a qualified former 6,779
owner of the production facilities which generated the 6,780
electricity from which those receipts were derived. As used in 6,781
this division, a "qualified former owner" means a person who 6,782
meets both of the following conditions: 6,783
(i) On or before October 11, 1991, the person had sold to 6,785
an electric company part of the production facility at which the 6,786
161
electricity is generated, and, for at least twenty years prior to 6,787
that sale, the facility was used to generate electricity, but it 6,788
was not owned in whole or in part during that period by an 6,789
electric company. 6,790
(ii) At the time the electric company provided the 6,792
electricity or other services for which the exclusion is claimed, 6,793
the person, or a successor or assign of the person, owned not 6,794
less than a twenty per cent ownership of the production facility 6,795
and the rights to not less than twenty per cent of the production 6,796
of that facility; and the person, or a successor or assign of the 6,797
person, engaged primarily in a business other than providing 6,798
electricity to others. 6,799
(e) Receipts of a natural gas company of amounts billed on 6,801
behalf of other entities. Transportation and billing and 6,802
collection fees charged to other entities shall be included in 6,803
the gross receipts of a natural gas company. 6,804
(2) The total gross receipts of such company for such 6,806
period in this state from business done within the state. 6,807
The reports required by section 5727.31 of the Revised Code 6,809
shall contain: 6,810
(a) The name and principal mailing address of the company; 6,812
(b) The total amount of the gross receipts excise taxes 6,814
charged or levied as based upon its last preceding annual 6,815
statement filed prior to the first day of January of the year in 6,816
which such report is filed; 6,817
(c) The amount of the excise taxes due with the report as 6,819
provided by section 5727.31 of the Revised Code. 6,820
Sec. 5727.33. (A) For the purpose of computing the public 6,829
utility excise tax, the tax commissioner shall ascertain and 6,830
determine the entire gross receipts actually received from all 6,831
sources, excluding the receipts described in divisions (B), (C), 6,832
AND (D), and (E) of this section, of each electric, rural 6,833
electric, natural gas, pipe-line, water-works, heating, and water 6,834
transportation company for business done within this state for 6,835
162
the year ending on the thirtieth day of April, and of each 6,836
telegraph and telephone company for business done within this 6,837
state for the year ending on the thirtieth day of June. 6,838
(B) In ascertaining and determining the gross receipts of 6,840
each of the companies named in this section, the commissioner 6,841
shall exclude all of the following: 6,842
(1) All receipts derived wholly from interstate business; 6,844
(2) All receipts derived wholly from business done for or 6,846
with the federal government; 6,847
(3) For the year ending April 30, 1990, and each 6,849
subsequent year, all receipts derived wholly from the 6,850
transmission or delivery of electricity to or for a rural 6,851
electric company, provided that the electricity that has been so 6,852
transmitted or delivered is for resale by the rural electric 6,853
company; 6,854
(4) All receipts from the sale of merchandise; 6,856
(5)(4) All receipts from sales to other public utilities, 6,858
except railroad, telegraph, and telephone companies, for resale, 6,859
provided the other public utility is required to file a statement 6,860
pursuant to section 5727.31 of the Revised Code. 6,861
(C) In ascertaining and determining the gross receipts of 6,863
a telephone company, the commissioner shall exclude all of the 6,865
following: 6,866
(1) For the year ending June 30, 1988, and each subsequent 6,868
year, receipts RECEIPTS of amounts billed on behalf of other 6,869
entities; 6,870
(2) For the year ending June 30, 1988, and each subsequent 6,872
year, receipts RECEIPTS from sales to other telephone companies 6,873
for resale, as defined in division (G) of section 5727.32 of the 6,874
Revised Code; 6,875
(3) For the year ending June 30, 1990, and each subsequent 6,877
year, receipts RECEIPTS from incoming or outgoing wide area 6,878
transmission service or wide area transmission type service, 6,880
including eight hundred or eight-hundred-type service; 6,881
163
(4) For the year ending June 30, 1990, and each subsequent 6,883
year, receipts RECEIPTS from private communications service as 6,884
described in division (AA)(2) of section 5739.01 of the Revised 6,886
Code;
(5) For the year ending June 30, 1990, and each subsequent 6,888
year, receipts RECEIPTS from sales to providers of 6,889
telecommunications service for resale, as defined in division (G) 6,891
of section 5727.32 of the Revised Code. 6,892
(D) In ascertaining and determining the gross receipts of 6,894
an electric company, the commissioner shall exclude receipts 6,895
derived from the provision of electricity and other services to a 6,896
qualified former owner of the production facilities which 6,897
generated the electricity from which those receipts were derived. 6,898
As used in this division, a "qualified former owner" means a 6,899
person who meets both of the following conditions: 6,900
(1) On or before October 11, 1991, the person had sold to 6,902
an electric company part of the production facility at which the 6,903
electricity is generated, and, for at least twenty years prior to 6,904
that sale, the facility was used to generate electricity, but it 6,905
was not owned in whole or in part during that period by an 6,906
electric company. 6,907
(2) At the time the electric company provided the 6,909
electricity or other services for which the exclusion is claimed, 6,910
the person, or a successor or assign of the person, owned not 6,911
less than a twenty per cent ownership of the production facility 6,912
and the rights to not less than twenty per cent of the production 6,913
of that facility. 6,914
(E) In ascertaining and determining the gross receipts of 6,916
a natural gas company, the commissioner shall exclude receipts of 6,917
amounts billed on behalf of other entities. Transportation and 6,918
billing and collection fees charged to other entities shall be 6,919
included in the gross receipts of a natural gas company. 6,920
The amount ascertained by the commissioner under this 6,922
section, less a deduction of twenty-five thousand dollars, shall 6,923
164
be the gross receipts of such companies for business done within 6,924
this state for that year. 6,925
Sec. 5727.38. On or before the first Monday of November, 6,934
annually, the tax commissioner shall assess an excise tax against 6,935
each public utility, except ELECTRIC COMPANIES, RURAL ELECTRIC 6,936
COMPANIES, AND railroad companies. The tax shall be computed by 6,937
multiplying the gross receipts as determined by the commissioner 6,938
under section 5727.33 of the Revised Code by six and 6,940
three-fourths per cent in the case of pipe-line companies and
four and three-fourths per cent in the case of all other 6,941
companies. The minimum tax for any such company for owning 6,942
property or doing business in this state shall be ten FIFTY 6,943
dollars. The assessment shall be certified to the taxpayer and 6,945
treasurer of state.
Sec. 5727.42. (A) The treasurer of state shall maintain a 6,954
list of all excise taxes levied and payments made pursuant to 6,955
this chapter THE ANNUAL EXCISE TAX IMPOSED BY SECTION 5727.30 OF 6,957
THE REVISED CODE. The treasurer of state shall collect and the 6,958
taxpayer shall pay all taxes and any penalties thereon. Payments 6,959
may be made by mail, in person, by electronic funds transfer if 6,960
required to do so by section 5727.311 of the Revised Code, or by 6,961
any other means authorized by the treasurer of state. The 6,962
treasurer of state may adopt rules concerning the methods and 6,963
timeliness of payment. 6,964
(B) Each tax bill issued pursuant to this section shall 6,966
separately reflect the taxes due, due date, and any other 6,967
information considered necessary. Except as otherwise provided 6,968
in division (F) of this section, the last day on which payment 6,969
may be made without penalty shall be at least twenty but not more 6,970
than thirty days from the date of mailing the tax bill. The 6,971
treasurer of state shall mail the tax bill, and the mailing 6,972
thereof shall be prima-facie evidence of receipt thereof by the 6,973
taxpayer. 6,974
(C) The treasurer of state shall refund taxes as provided 6,976
165
in this section, but no refund shall be made to a taxpayer having 6,977
a delinquent claim certified pursuant to this section that 6,978
remains unpaid. The treasurer of state may consult the attorney 6,979
general regarding such claims. 6,980
(D) Within twenty days after receipt of any excise tax 6,982
assessment certified to him THE TREASURER OF STATE, the treasurer 6,984
of state shall:
(1) Ascertain the difference between the total taxes shown 6,986
on such assessment and the sum of all advance ESTIMATED payments, 6,988
exclusive of any penalties thereon, previously made for that 6,989
year.
(2) If the difference is a deficiency, the treasurer of 6,991
state shall issue a tax bill. 6,992
(3) If the difference is an excess, the treasurer of state 6,994
shall certify the name of the taxpayer and the amount to be 6,995
refunded to the director of budget and management for payment to 6,996
the taxpayer. 6,997
If the taxpayer has a deficiency for one tax year and an 6,999
excess for another tax year, or any combination thereof for more 7,000
than two years, the treasurer of state may determine the net 7,001
result and, depending on such result, proceed to mail a tax bill 7,002
or certify a refund. 7,003
(E) If a taxpayer fails to pay all taxes on or before the 7,005
due date shown on the tax bill, or fails to make an advance 7,006
ESTIMATED payment on or before the due date prescribed in 7,008
division (B) of section 5727.31 of the Revised Code, but makes 7,009
payment within ten calendar days of such date, the treasurer of 7,010
state shall add a penalty equal to five per cent of the amount 7,011
that should have been timely paid. If payment is not made within 7,012
ten days of such date, the treasurer of state shall add a penalty 7,013
equal to fifteen per cent of the amount that should have been 7,014
timely paid. The treasurer of state shall prepare a delinquent 7,015
claim for each tax bill on which penalties were added and certify 7,016
such claims to the attorney general and tax commissioner. The 7,017
166
attorney general shall proceed to collect the delinquent taxes 7,018
and penalties thereon in the manner prescribed by law and notify 7,019
the treasurer of state and tax commissioner of all collections. 7,020
(F) The last day on which a natural gas company that is 7,022
not required to make payments under division (B) of section 7,023
5727.31 of the Revised Code may pay its taxes without penalty 7,024
shall be the fifteenth day of March of the year following the 7,025
year in which the commissioner is required to certify his THE 7,026
assessment of the company's tax under section 5727.38 of the 7,027
Revised Code. The tax due date shall be reflected on the tax 7,028
bill. 7,029
Sec. 5727.45. Four and two-tenths per cent of all excise 7,038
taxes and penalties collected under sections 5727.01 to 5727.62 7,039
of the Revised Code shall be credited to the local government 7,040
fund for distribution in accordance with section 5747.50 of the 7,041
Revised Code, six-tenths of one per cent shall be credited to the 7,042
local government revenue assistance fund for distribution in 7,044
accordance with section 5747.61 of the Revised Code, and
ninety-five and two-tenths per cent shall be credited to the 7,045
general revenue fund. 7,046
On or before the first day of December, annually, the tax 7,048
commissioner shall certify to the treasurer of state the amounts 7,049
to be credited to the local government fund and local government 7,050
revenue assistance fund from the general revenue fund to ensure 7,051
that the sum of the amounts credited to the local government fund 7,052
and local government revenue assistance fund for the calendar 7,053
year equals the sum that would have been credited during that 7,054
year if the credit authorized by section 5727.391 of the Revised 7,055
Code did not exist. The treasurer shall credit any such 7,056
additional amounts to the two funds not later than the fifth day 7,057
of December, annually. 7,058
Sec. 5727.47. A copy of each assessment certified pursuant 7,071
to section 5727.23, 5727.231, or 5727.38 of the Revised Code 7,072
shall be mailed to the public utility, and its mailing shall be 7,073
167
prima-facie evidence of its receipt by the public utility to 7,074
which it is addressed. If a public utility objects to any 7,075
assessment certified to it pursuant to such sections, it may file 7,076
a petition for reassessment with the tax commissioner. The 7,077
petition must be made in writing, signed by the authorized agent 7,078
of the utility having knowledge of the facts, and filed with the 7,079
commissioner, in person or by certified mail, within thirty days 7,080
from the date that the assessment was mailed. If the petition is 7,081
filed by certified mail, the date of the United States postmark 7,082
placed on the sender's receipt by the postal employee to whom the 7,083
petition is presented shall be treated as the date of filing. A 7,084
true copy of the assessment objected to shall be attached to the 7,085
petition and shall be incorporated by reference into the 7,086
petition, but the failure to attach a copy of the assessment and 7,087
incorporate it by reference does not invalidate the petition. The 7,089
petition also shall indicate the utility's objections, but
additional objections may be raised in writing if received prior 7,090
to the date shown on the final determination by the commissioner. 7,091
Notwithstanding the fact that a petition has been filed, 7,093
the tax with respect to the assessment objected to shall be paid 7,094
as required by law. The acceptance of the tax payment by the 7,095
treasurer of state or any county treasurer shall not prejudice 7,096
any claim for taxes on final determination by the commissioner or 7,097
final decision by the board of tax appeals or any court. 7,098
Upon receipt of a properly filed petition, the commissioner 7,100
shall notify the treasurer of state or the auditor of each county 7,101
to which the assessment objected to has been certified. 7,102
Unless the petitioner waives a hearing, the commissioner 7,104
shall assign a time and place for the hearing on the petition and 7,105
notify the petitioner of the time and place of the hearing by 7,106
personal service or certified mail, but the commissioner may 7,107
continue the hearing from time to time if necessary. 7,108
The commissioner may make such correction to the assessment 7,110
as he THE COMMISSIONER finds proper. The commissioner shall 7,111
168
serve a copy of his THE COMMISSIONER'S final determination on the 7,113
petitioner by personal service or certified mail, and his THE 7,114
COMMISSIONER'S decision in the matter shall be final, subject to 7,116
appeal as provided in section 5717.02 of the Revised Code. The 7,117
commissioner also shall transmit a copy of his THE final 7,118
determination to the treasurer of state or applicable county 7,119
auditor. In the absence of any further appeal, or when a 7,120
decision of the board of tax appeals or of any court to which the 7,121
decision has been appealed becomes final, the commissioner shall 7,122
notify the public utility and, as appropriate, the treasurer of 7,123
state who shall proceed under section 5727.42 of the Revised 7,124
Code, or the applicable county auditor who shall proceed under 7,125
section 5727.471 of the Revised Code. The notification is not 7,126
subject to further appeal. 7,127
Sec. 5727.53. The taxes, fees, and penalties provided by 7,136
sections 5727.01 to 5727.62, inclusive, of the Revised Code, THIS 7,137
CHAPTER THAT ARE REMITTED TO THE TREASURER OF STATE may be 7,139
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 7,141
in which such public utility is doing business, or in which the 7,142
line of any street, suburban, or interurban railroad company or 7,143
railroad company is located, and such court of common pleas shall 7,144
have jurisdiction of such THE action regardless of the amount 7,145
involved. The attorney general, on request of the tax 7,146
commissioner, shall institute such action in the court of common 7,147
pleas of Franklin County COUNTY or of any of such counties the 7,148
commissioner directs. In any such action it shall be sufficient 7,149
to allege that the tax, fee, or penalty sought to be recovered 7,150
stands charged on the delinquent duplicate of the treasurer of 7,151
state, and that the same has been unpaid for a period of thirty 7,152
days after having been placed thereon. Sums recovered in any 7,153
such action shall be paid into the state treasury to the credit 7,154
of the general revenue fund IN THE SAME MANNER AS THE TAX. 7,155
Sec. 5727.60. If a public utility required to file a 7,164
169
report with the tax commissioner by sections 5727.02 to 5727.62, 7,165
inclusive, of the Revised Code, PERSON fails to make such FILE A 7,167
report, it shall be subject to a penalty of ten dollars per day 7,169
for each day's omission after the time limited for making such
report WITHIN THE TIME PRESCRIBED BY SECTION 5727.08 OR 5727.31 7,170
OF THE REVISED CODE, INCLUDING ANY EXTENSIONS OF TIME GRANTED BY 7,172
THE TAX COMMISSIONER, A PENALTY OF FIFTY DOLLARS PER MONTH, NOT 7,173
TO EXCEED FIVE HUNDRED DOLLARS, MAY BE IMPOSED FOR EACH MONTH OR 7,174
FRACTION OF A MONTH ELAPSING BETWEEN THE DUE DATE OF THE REPORT, 7,175
INCLUDING ANY EXTENSIONS, AND THE DATE THE REPORT WAS FILED. THE 7,176
PENALTY UNDER THIS SECTION FOR FAILING TO FILE A REPORT REQUIRED 7,177
BY SECTION 5727.08 OF THE REVISED CODE SHALL BE PAID INTO THE 7,178
STATE GENERAL REVENUE FUND. IF THE PENALTY IS NOT PAID WITHIN
FIFTEEN DAYS AFTER NOTICE OF THE PENALTY IS MAILED TO THE PERSON 7,179
WHO FAILED TO TIMELY FILE THE REPORT, THE TAX COMMISSIONER SHALL 7,180
CERTIFY THE PENALTY AS A CLAIM TO THE ATTORNEY GENERAL FOR 7,181
COLLECTION. THE PENALTY UNDER THIS SECTION FOR FAILING TO FILE 7,182
THE REPORT REQUIRED BY SECTION 5727.31 OF THE REVISED CODE SHALL 7,183
BE DEPOSITED INTO THE STATE TREASURY IN THE SAME MANNER AS THE 7,184
TAX IS DEPOSITED, AND THE COMMISSIONER MAY COLLECT THE PENALTY BY 7,186
ASSESSMENT PURSUANT TO SECTION 5727.38 OF THE REVISED CODE. THE 7,187
TAX COMMISSIONER MAY ABATE THIS PENALTY IN FULL OR IN PART. 7,188
Sec. 5727.61. Every public utility required by law to make 7,197
returns, statements, or reports to the tax commissioner UNDER 7,198
SECTIONS 5727.01 TO 5727.62 OF THE REVISED CODE shall file 7,200
therewith, in such form as the commissioner prescribes, an
affidavit subscribed and sworn to by a person or officer having 7,201
knowledge of the facts setting forth that such public utility has 7,202
not, during the preceding year, except as permitted by sections 7,203
3517.082, 3599.03, and 3599.031 of the Revised Code, directly or 7,204
indirectly paid, used or offered, consented, or agreed to pay or 7,205
use any of its money or property for or in aid of or opposition 7,206
to a political party, a candidate for election or nomination to 7,208
public office, or a political action committee, legislative 7,209
170
campaign fund, or organization that supports or opposes any such 7,210
candidate or in any manner used any of its money or property for 7,211
any partisan political purpose whatever, or for the reimbursement 7,212
or indemnification of any person for money or property so used. 7,213
Such forms of affidavit as the commissioner prescribes shall be 7,214
attached to or made a part of the return, statement, or report 7,215
required to be made by such public utility under sections 5727.01 7,216
to 5727.62 of the Revised Code. 7,217
Sec. 5727.72. No officer, employee, or agent of a 7,226
telegraph or telephone company PERSON SUBJECT TO THIS CHAPTER 7,227
shall refuse to attend before a lawful board of appraisers and 7,228
assessors THE DEPARTMENT OF TAXATION when required to do so, or 7,229
refuse to bring with him THE OFFICER, EMPLOYEE, OR AGENT and 7,231
submit for inspection any books or papers of such company PERSON 7,232
in his THE OFFICER'S, EMPLOYEE'S, OR AGENT'S possession, custody, 7,234
or control, or refuse to answer any questions put to him THE 7,235
OFFICER, EMPLOYEE, OR AGENT concerning the organization, 7,237
business, or property of such company PERSON.
Sec. 5727.80. AS USED IN SECTIONS 5727.80 TO 5727.95 OF 7,239
THE REVISED CODE: 7,241
(A) "ELECTRIC DISTRIBUTION COMPANY" MEANS EITHER OF THE 7,244
FOLLOWING:
(1) A PERSON WHO DISTRIBUTES ELECTRICITY THROUGH A METER 7,246
OF AN END USER IN THIS STATE; 7,247
(2) THE END USER OF ELECTRICITY IN THIS STATE, IF THE END 7,250
USER OBTAINS ELECTRICITY THAT IS NOT DISTRIBUTED OR TRANSMITTED 7,251
TO THE END USER BY AN ELECTRIC DISTRIBUTION COMPANY THAT IS 7,252
REQUIRED TO REMIT THE TAX IMPOSED BY SECTION 5727.81 OF THE 7,254
REVISED CODE. "ELECTRIC DISTRIBUTION COMPANY" DOES NOT INCLUDE 7,255
THE END USER OF ELECTRICITY IN THIS STATE WHO SELF-GENERATES 7,256
ELECTRICITY THAT IS USED DIRECTLY BY THAT END USER ON THE SAME 7,257
SITE THAT THE ELECTRICITY IS GENERATED. 7,258
(B) "KILOWATT HOUR" MEANS ONE THOUSAND WATT HOURS OF 7,260
ELECTRICITY. 7,261
171
(C) "METER OF AN END USER IN THIS STATE" MEANS THE LAST 7,264
METER USED TO MEASURE THE KILOWATT HOURS DISTRIBUTED BY AN 7,265
ELECTRIC DISTRIBUTION COMPANY TO A LOCATION IN THIS STATE, THE 7,266
LAST METER LOCATED OUTSIDE OF THIS STATE THAT IS USED TO MEASURE 7,267
THE KILOWATT HOURS CONSUMED AT A LOCATION IN THIS STATE, OR, IF 7,268
NO METER IS USED, THE ESTIMATED KILOWATT HOURS DISTRIBUTED TO AN 7,269
UNMETERED LOCATION IN THIS STATE.
(D) "PERSON" HAS THE SAME MEANING AS IN SECTION 5701.01 OF 7,271
THE REVISED CODE, BUT ALSO INCLUDES A POLITICAL SUBDIVISION OF 7,272
THE STATE. 7,273
(E) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 7,276
CORPORATION THAT OWNS OR OPERATES A SYSTEM FOR THE DISTRIBUTION 7,277
OF ELECTRICITY.
(F) "QUALIFIED END USER" MEANS AN END USER OF ELECTRICITY 7,279
THAT USES MORE THAN THREE MILLION KILOWATT HOURS OF ELECTRICITY 7,281
AT ONE MANUFACTURING LOCATION IN THIS STATE FOR A CALENDAR DAY 7,282
FOR USE IN A MANUFACTURING PROCESS THAT FEATURES AN
ELECTROCHEMICAL REACTION IN WHICH ELECTRONS FROM DIRECT CURRENT 7,284
ELECTRICITY REMAIN A PART OF THE PRODUCT BEING MANUFACTURED. 7,285
(G) "SELF-ASSESSING PURCHASER" MEANS A PURCHASER THAT 7,287
MEETS ALL THE REQUIREMENTS OF, AND PAYS THE EXCISE TAX IN 7,288
ACCORDANCE WITH, DIVISION (C) OF SECTION 5727.81 OF THE REVISED 7,289
CODE.
Sec. 5727.81. (A) ON AND AFTER MAY 1, 2001, FOR THE 7,293
PURPOSE OF RAISING REVENUE FOR PUBLIC EDUCATION AND STATE AND 7,294
LOCAL GOVERNMENT OPERATIONS, AN EXCISE TAX IS HEREBY LEVIED AND 7,295
IMPOSED ON AN ELECTRIC DISTRIBUTION COMPANY, AT THE FOLLOWING
RATES PER KILOWATT HOUR OF ELECTRICITY DISTRIBUTED IN A 7,296
THIRTY-DAY PERIOD BY THE COMPANY THROUGH A METER OF AN END USER 7,297
IN THIS STATE:
KILOWATT HOURS DISTRIBUTED TO RATE PER 7,300
AN END USER KILOWATT HOUR 7,301
FOR THE FIRST 2,000 $.00465 7,302
FOR THE NEXT 2,001 TO 15,000 $.00419 7,303
172
FOR 15,001 AND ABOVE $.00301 7,304
THE ELECTRIC DISTRIBUTION COMPANY SHALL BASE THE MONTHLY 7,307
TAX ON THE KILOWATT HOURS OF ELECTRICITY DISTRIBUTED TO AN END 7,308
USER THROUGH THE METER OF THE END USER THAT IS NOT MEASURED FOR A 7,309
THIRTY-DAY PERIOD BY DIVIDING THE DAYS IN THE MEASUREMENT PERIOD 7,311
INTO THE TOTAL KILOWATT HOURS MEASURED DURING THE MEASUREMENT 7,312
PERIOD TO OBTAIN A DAILY AVERAGE USAGE. THE TAX SHALL BE 7,313
DETERMINED BY OBTAINING THE SUM OF DIVISIONS (A)(1), (2), AND (3) 7,314
OF THIS SECTION AND MULTIPLYING THAT AMOUNT BY THE NUMBER OF DAYS
IN THE MEASUREMENT PERIOD: 7,315
(1) MULTIPLYING $0.00465 PER KILOWATT HOUR FOR THE FIRST 7,317
SIXTY-SEVEN KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 7,318
(2) MULTIPLYING $0.00419 FOR THE NEXT SIXTY-EIGHT TO FIVE 7,320
HUNDRED KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 7,321
(3) MULTIPLYING $0.00301 FOR THE REMAINING KILOWATT HOURS 7,323
DISTRIBUTED USING A DAILY AVERAGE. 7,324
EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, THE 7,326
ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX TO THE TREASURER 7,327
OF STATE IN ACCORDANCE WITH SECTION 5727.82 OF THE REVISED CODE. 7,329
ONLY THE DISTRIBUTION OF ELECTRICITY THROUGH A METER OF AN END 7,331
USER IN THIS STATE SHALL BE USED BY THE ELECTRIC DISTRIBUTION 7,332
COMPANY TO COMPUTE THE AMOUNT OR ESTIMATED AMOUNT OF TAX DUE. 7,333
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 7,335
EACH ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED BY 7,336
THIS SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES: 7,337
(1) THE ELECTRICITY IS DISTRIBUTED BY THE COMPANY THROUGH 7,339
A METER OF AN END USER IN THIS STATE; 7,340
(2) THE COMPANY IS DISTRIBUTING ELECTRICITY THROUGH A 7,342
METER LOCATED IN ANOTHER STATE, BUT THE ELECTRICITY IS CONSUMED 7,343
IN THIS STATE IN THE MANNER PRESCRIBED BY THE TAX COMMISSIONER; 7,345
(3) THE COMPANY IS DISTRIBUTING ELECTRICITY IN THIS STATE 7,347
WITHOUT THE USE OF A METER, BUT THE ELECTRICITY IS CONSUMED IN 7,348
THIS STATE AS ESTIMATED AND IN THE MANNER PRESCRIBED BY THE TAX 7,350
COMMISSIONER.
173
(C)(1) A COMMERCIAL OR INDUSTRIAL PURCHASER THAT RECEIVES 7,353
ELECTRICITY THROUGH A METER OF AN END USER IN THIS STATE AND 7,354
CONSUMES ON THE AVERAGE, OVER THE COURSE OF THE PREVIOUS CALENDAR 7,355
YEAR, MORE THAN TWENTY MEGAWATTS OF ELECTRICITY DURING A 7,356
THIRTY-DAY PERIOD MAY ELECT TO SELF-ASSESS THE EXCISE TAX IMPOSED 7,357
BY THIS SECTION AT THE RATE OF SEVEN PER CENT OF THE TOTAL PRICE 7,358
OF ELECTRICITY DELIVERED THROUGH A METER OF AN END USER IN THIS 7,359
STATE. PAYMENT OF THE TAX SHALL BE MADE DIRECTLY TO THE 7,360
TREASURER OF STATE IN ACCORDANCE WITH DIVISIONS (A)(3) AND (4) OF 7,361
SECTION 5727.82 OF THE REVISED CODE OR, IF THE ELECTRIC 7,362
DISTRIBUTION COMPANY SERVING THE SELF-ASSESSING PURCHASER IS A 7,363
MUNICIPAL ELECTRIC UTILITY AND THE PURCHASER IS WITHIN THE 7,364
MUNICIPAL CORPORATION'S CORPORATE LIMITS, TO SUCH MUNICIPAL 7,365
CORPORATION'S GENERAL FUND IN ACCORDANCE WITH DIVISION (A)(2) OF 7,366
SECTION 5727.82 OF THE REVISED CODE, AND UPON PAYING IN THIS 7,367
MANNER, THE SELF-ASSESSING PURCHASER SHALL NOT BE REQUIRED TO PAY 7,368
THE EXCISE TAX TO THE ELECTRIC DISTRIBUTION COMPANY FROM WHICH
ITS ELECTRICITY IS DELIVERED. 7,369
(2) APPLICATION FOR REGISTRATION AS A SELF-ASSESSING 7,371
PURCHASER SHALL BE MADE ON A FORM PRESCRIBED BY THE TAX 7,372
COMMISSIONER. THE REGISTRATION SHALL REMAIN IN EFFECT UNTIL 7,373
CANCELED BY THE REGISTRANT UPON WRITTEN NOTIFICATION TO THE 7,374
COMMISSIONER OF THE ELECTION TO PAY THE TAX IN ACCORDANCE WITH 7,375
DIVISION (A) OF THIS SECTION. A SELF-ASSESSING PURCHASER SHALL 7,376
GIVE WRITTEN NOTICE TO THE ELECTRIC DISTRIBUTION COMPANY FROM
WHICH ITS ELECTRICITY IS DELIVERED OF ITS SELF-ASSESSING STATUS, 7,377
AND THE ELECTRIC DISTRIBUTION COMPANY IS RELIEVED OF THE
OBLIGATION TO PAY THE TAX IMPOSED BY DIVISION (A) OF THIS SECTION 7,378
FOR ELECTRICITY DISTRIBUTED TO THAT SELF-ASSESSING PURCHASER. 7,379
(D) THE TAX IMPOSED BY THIS SECTION DOES NOT APPLY TO THE 7,382
DISTRIBUTION OF ANY KILOWATT HOURS OF ELECTRICITY TO THE FEDERAL 7,383
GOVERNMENT OR TO AN END USER FOR ANY DAY THE END USER IS A 7,384
QUALIFIED END USER. THE EXEMPTION UNDER THIS DIVISION FOR A
QUALIFIED END USER ONLY APPLIES TO THE MANUFACTURING LOCATION 7,385
174
WHERE THE QUALIFIED END USER USES MORE THAN THREE MILLION 7,386
KILOWATT HOURS PER DAY.
Sec. 5727.82. (A)(1) EXCEPT AS PROVIDED IN DIVISIONS 7,389
(A)(2) AND (D) OF THIS SECTION, BY THE TWENTIETH DAY OF EACH 7,390
MONTH, EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX 7,391
IMPOSED BY SECTION 5727.81 OF THE REVISED CODE SHALL FILE WITH 7,393
THE TREASURER OF STATE A RETURN AS PRESCRIBED BY THE TAX 7,394
COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF TAX DUE 7,396
FOR THE PRECEDING MONTH. THE FIRST PAYMENT OF THIS TAX SHALL BE
MADE ON OR BEFORE JUNE 20, 2001. 7,397
(2) IF THE ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY 7,399
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE IS A 7,402
MUNICIPAL ELECTRIC UTILITY, IT MAY RETAIN IN ITS GENERAL FUND 7,403
THAT PORTION OF THE TAX ON THE KILOWATT HOURS DISTRIBUTED TO END 7,404
USERS LOCATED WITHIN THE BOUNDARIES OF THE MUNICIPAL CORPORATION. 7,405
HOWEVER, THE MUNICIPAL ELECTRIC UTILITY SHALL MAKE PAYMENT IN 7,406
ACCORDANCE WITH DIVISION (A)(1) OF THIS SECTION OF THE TAX DUE ON 7,408
THE KILOWATT HOURS DISTRIBUTED TO END USERS LOCATED OUTSIDE THE 7,409
BOUNDARIES OF THE MUNICIPAL CORPORATION. 7,410
(3) BY THE TWENTIETH DAY OF EACH MONTH, EACH 7,413
SELF-ASSESSING PURCHASER THAT UNDER DIVISION (C) OF SECTION 7,414
5727.81 OF THE REVISED CODE PAYS DIRECTLY TO THE TREASURER OF 7,416
STATE THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 7,417
SHALL FILE WITH THE TREASURER OF STATE A RETURN AS PRESCRIBED BY 7,418
THE TAX COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF 7,419
THE TAX DUE FOR THE PRECEDING MONTH. 7,420
(4) AS PRESCRIBED BY THE TAX COMMISSIONER, THE RETURN 7,422
SHALL BE SIGNED BY THE COMPANY OR SELF-ASSESSING PURCHASER 7,423
REQUIRED TO FILE IT, OR AN AUTHORIZED EMPLOYEE, OFFICER, OR AGENT 7,424
OF THE COMPANY OR PURCHASER. THE TREASURER OF STATE SHALL MARK 7,425
ON THE RETURN THE DATE IT WAS RECEIVED AND INDICATE PAYMENT OR 7,426
NONPAYMENT OF THE TAX SHOWN TO BE DUE ON THE RETURN. THE 7,427
TREASURER OF STATE IMMEDIATELY SHALL TRANSMIT ALL RETURNS TO THE 7,428
TAX COMMISSIONER. THE RETURN SHALL BE DEEMED FILED WHEN RECEIVED 7,429
175
BY THE TREASURER OF STATE.
(B) ANY ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,431
PURCHASER REQUIRED BY THIS SECTION TO FILE A RETURN WHO FAILS TO 7,433
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 7,434
REQUIRED TO BE PAID FOR THE REPORTING PERIOD, WHICHEVER IS 7,435
GREATER. THE TAX COMMISSIONER MAY COLLECT THE ADDITIONAL CHARGE 7,436
BY ASSESSMENT PURSUANT TO SECTION 5727.89 OF THE REVISED CODE. 7,439
THE COMMISSIONER MAY ABATE ALL OR A PORTION OF THE ADDITIONAL 7,440
CHARGE AND MAY ADOPT RULES GOVERNING SUCH ABATEMENTS. 7,441
(C) IF ANY TAX DUE IS NOT PAID TIMELY IN ACCORDANCE WITH 7,444
THIS SECTION, THE ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,445
PURCHASER LIABLE FOR THE TAX SHALL PAY INTEREST, CALCULATED AT 7,446
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 7,448
CODE, FROM THE DATE THE TAX PAYMENT WAS DUE TO THE DATE OF 7,449
PAYMENT OR TO THE DATE AN ASSESSMENT IS ISSUED, WHICHEVER OCCURS 7,450
FIRST. INTEREST SHALL BE PAID IN THE SAME MANNER AS THE TAX, AND 7,451
THE COMMISSIONER MAY COLLECT THE INTEREST BY ASSESSMENT PURSUANT 7,452
TO SECTION 5727.89 OF THE REVISED CODE. 7,453
(D) NOT LATER THAN THE TENTH DAY OF EACH MONTH, A 7,455
QUALIFIED END USER SHALL REPORT IN WRITING TO THE ELECTRIC 7,456
DISTRIBUTION COMPANY THAT DISTRIBUTES ELECTRICITY TO THE END USER 7,457
THE KILOWATT HOURS THAT WERE CONSUMED AS A QUALIFIED END USER FOR 7,458
THE PRIOR MONTH AND THE NUMBER OF DAYS, IF ANY, ON WHICH THE END 7,459
USER WAS NOT A QUALIFIED END USER. FOR EACH CALENDAR DAY THE END 7,460
USER WAS NOT A QUALIFIED END USER, THE END USER SHALL REPORT IN 7,461
WRITING TO THE ELECTRIC DISTRIBUTION COMPANY THE NUMBER OF 7,462
KILOWATT HOURS USED ON THAT DAY, AND THE ELECTRIC DISTRIBUTION 7,463
COMPANY SHALL PAY THE TAX IMPOSED UNDER SECTION 5727.81 OF THE 7,464
REVISED CODE ON EACH KILOWATT HOUR THAT WAS NOT DISTRIBUTED TO A 7,465
QUALIFIED END USER. THE ELECTRIC DISTRIBUTION COMPANY MAY RELY 7,466
IN GOOD FAITH ON A QUALIFIED END USER'S REPORT FILED UNDER THIS 7,467
DIVISION. IF IT IS DETERMINED THAT THE END USER WAS NOT A 7,468
QUALIFIED END USER FOR ANY CALENDAR DAY OR THE QUANTITY OF 7,469
176
ELECTRICITY USED BY THE QUALIFIED END USER WAS OVERSTATED, THE 7,470
TAX COMMISSIONER SHALL ASSESS AND COLLECT ANY TAX IMPOSED UNDER 7,471
SECTION 5727.81 OF THE REVISED CODE DIRECTLY FROM THE QUALIFIED 7,473
END USER. AS REQUESTED BY THE COMMISSIONER, EACH END USER
REPORTING TO AN ELECTRIC DISTRIBUTION COMPANY THAT IT IS A 7,474
QUALIFIED END USER SHALL PROVIDE DOCUMENTATION TO THE 7,475
COMMISSIONER THAT ESTABLISHES THE VOLUME OF ELECTRICITY CONSUMED 7,477
DAILY BY THE QUALIFIED END USER. 7,478
Sec. 5727.83. (A) IF THE TOTAL AMOUNT OF TAX REQUIRED TO 7,480
BE REMITTED BY AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,481
PURCHASER TO THIS STATE UNDER SECTION 5727.82 OF THE REVISED CODE 7,484
FOR ANY CALENDAR YEAR EQUALS OR EXCEEDS FIFTY THOUSAND DOLLARS,
THE COMPANY OR SELF-ASSESSING PURCHASER SHALL REMIT EACH MONTHLY 7,485
TAX PAYMENT IN THE SECOND ENSUING AND EACH SUCCEEDING TAX YEAR BY 7,487
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY DIVISIONS (B) AND (C) 7,488
OF THIS SECTION. FOR THE FIRST YEAR THE TAX LEVIED BY SECTION 7,489
5727.81 OF THE REVISED CODE IS IMPOSED, ANY ELECTRIC DISTRIBUTION 7,491
COMPANY THAT, PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, WAS AN 7,492
ELECTRIC COMPANY OR A RURAL ELECTRIC COMPANY REQUIRED TO REMIT 7,494
TAXES BY ELECTRONIC FUNDS TRANSFER UNDER SECTION 5727.311 OF THE
REVISED CODE SHALL REMIT THE TAX IMPOSED BY SECTION 5727.81 OF 7,496
THE REVISED CODE BY ELECTRONIC FUNDS TRANSFER IN ACCORDANCE WITH 7,497
THIS SECTION.
IF THE TAX PAYMENT FOR EACH OF TWO CONSECUTIVE YEARS IS 7,499
LESS THAN FIFTY THOUSAND DOLLARS, THE COMPANY OR SELF-ASSESSING 7,500
PURCHASER IS RELIEVED OF THE REQUIREMENT TO REMIT TAXES BY 7,501
ELECTRONIC FUNDS TRANSFER FOR THE YEAR THAT NEXT FOLLOWS THE 7,502
SECOND OF THE CONSECUTIVE YEARS IN WHICH THE TAX PAYMENT IS LESS 7,503
THAN FIFTY THOUSAND DOLLARS, AND IS RELIEVED OF THAT REQUIREMENT 7,505
FOR EACH SUCCEEDING YEAR UNLESS THE TAX PAYMENT IN A SUBSEQUENT 7,506
YEAR EQUALS OR EXCEEDS FIFTY THOUSAND DOLLARS.
THE TAX COMMISSIONER SHALL NOTIFY EACH ELECTRIC 7,508
DISTRIBUTION COMPANY AND SELF-ASSESSING PURCHASER REQUIRED TO 7,509
REMIT TAXES BY ELECTRONIC FUNDS TRANSFER OF THE OBLIGATION TO DO 7,510
177
SO, SHALL MAINTAIN AN UPDATED LIST OF THOSE COMPANIES AND 7,511
PURCHASERS, AND SHALL TIMELY CERTIFY TO THE TREASURER OF STATE 7,513
THE LIST AND ANY ADDITIONS THERETO OR DELETIONS THEREFROM. 7,514
FAILURE BY THE TAX COMMISSIONER TO NOTIFY A COMPANY OR 7,515
SELF-ASSESSING PURCHASER SUBJECT TO THIS SECTION TO REMIT TAXES 7,516
BY ELECTRONIC FUNDS TRANSFER DOES NOT RELIEVE THE COMPANY OR 7,517
SELF-ASSESSING PURCHASER OF ITS OBLIGATION TO REMIT TAXES IN THAT 7,518
MANNER.
(B) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,520
PURCHASER REQUIRED BY THIS SECTION TO REMIT PAYMENTS BY 7,523
ELECTRONIC FUNDS TRANSFER SHALL REMIT SUCH PAYMENTS TO THE 7,524
TREASURER OF STATE IN THE MANNER PRESCRIBED BY RULES ADOPTED BY 7,525
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 7,526
REVISED CODE. THE PAYMENT OF TAXES BY ELECTRONIC FUNDS TRANSFER 7,528
DOES NOT AFFECT A COMPANY'S OR SELF-ASSESSING PURCHASER'S
OBLIGATION TO FILE THE MONTHLY RETURN AS REQUIRED UNDER SECTION 7,530
5727.82 OF THE REVISED CODE.
(C) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,532
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 7,533
FUNDS TRANSFER MAY APPLY TO THE TREASURER OF STATE IN THE MANNER 7,535
PRESCRIBED BY THE TREASURER OF STATE TO BE EXCUSED FROM THAT
REQUIREMENT. THE TREASURER OF STATE MAY EXCUSE THE COMPANY OR 7,536
SELF-ASSESSING PURCHASER FROM REMITTANCE BY ELECTRONIC FUNDS 7,538
TRANSFER FOR GOOD CAUSE SHOWN FOR THE PERIOD OF TIME REQUESTED BY 7,539
THE COMPANY OR SELF-ASSESSING PURCHASER OR FOR A PORTION OF THAT 7,540
PERIOD. THE TREASURER OF STATE SHALL NOTIFY THE TAX COMMISSIONER 7,541
AND THE COMPANY OR SELF-ASSESSING PURCHASER OF THE TREASURER OF 7,542
STATE'S DECISION AS SOON AS IS PRACTICABLE. 7,543
(D) IF AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,545
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 7,548
FUNDS TRANSFER REMITS THOSE TAXES BY SOME MEANS OTHER THAN BY 7,549
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY THIS SECTION AND THE 7,550
RULES ADOPTED BY THE TREASURER OF STATE, AND THE TREASURER OF 7,551
178
STATE DETERMINES THAT SUCH FAILURE WAS NOT DUE TO REASONABLE
CAUSE OR WAS DUE TO WILLFUL NEGLECT, THE TREASURER OF STATE SHALL 7,552
NOTIFY THE TAX COMMISSIONER OF THE FAILURE TO REMIT BY ELECTRONIC 7,553
FUNDS TRANSFER AND SHALL PROVIDE THE COMMISSIONER WITH ANY 7,554
INFORMATION USED IN MAKING THAT DETERMINATION. THE TAX 7,555
COMMISSIONER MAY COLLECT AN ADDITIONAL CHARGE BY ASSESSMENT IN 7,556
THE MANNER PRESCRIBED BY SECTION 5727.89 OF THE REVISED CODE. 7,557
THE ADDITIONAL CHARGE SHALL EQUAL FIVE PER CENT OF THE AMOUNT OF 7,558
THE TAXES REQUIRED TO BE PAID BY ELECTRONIC FUNDS TRANSFER, BUT 7,559
SHALL NOT EXCEED FIVE THOUSAND DOLLARS. ANY ADDITIONAL CHARGE 7,560
ASSESSED UNDER THIS SECTION IS IN ADDITION TO ANY OTHER PENALTY 7,561
OR CHARGE IMPOSED UNDER THIS CHAPTER, AND SHALL BE CONSIDERED AS 7,562
REVENUE ARISING FROM THE TAX IMPOSED UNDER THIS CHAPTER. THE TAX 7,563
COMMISSIONER MAY ABATE ALL OR A PORTION OF SUCH A CHARGE AND MAY 7,564
ADOPT RULES GOVERNING SUCH ABATEMENTS. 7,565
NO ADDITIONAL CHARGE SHALL BE ASSESSED UNDER THIS DIVISION 7,567
AGAINST AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 7,568
PURCHASER THAT HAS BEEN NOTIFIED OF ITS OBLIGATION TO REMIT TAXES 7,571
UNDER THIS SECTION AND THAT REMITS ITS FIRST TWO TAX PAYMENTS 7,572
AFTER SUCH NOTIFICATION BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 7,573
TRANSFER. THE ADDITIONAL CHARGE MAY BE ASSESSED UPON THE 7,574
REMITTANCE OF ANY SUBSEQUENT TAX PAYMENT THAT THE COMPANY OR
PURCHASER REMITS BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 7,576
TRANSFER.
Sec. 5727.84. (A) AS USED IN THIS SECTION AND SECTIONS 7,578
5727.85, 5727.86, AND 5727.87 OF THE REVISED CODE: 7,580
(1) "SCHOOL DISTRICT" MEANS A CITY, LOCAL, OR EXEMPTED 7,582
VILLAGE SCHOOL DISTRICT. 7,583
(2) "JOINT VOCATIONAL SCHOOL DISTRICT" MEANS A JOINT 7,585
VOCATIONAL SCHOOL DISTRICT CREATED UNDER SECTION 3311.16 OF THE 7,586
REVISED CODE, AND INCLUDES A COOPERATIVE EDUCATION SCHOOL 7,588
DISTRICT CREATED UNDER SECTION 3311.52 OR 3311.521 OF THE REVISED 7,589
CODE AND A COUNTY SCHOOL FINANCING DISTRICT CREATED UNDER SECTION 7,590
3311.50 OF THE REVISED CODE. 7,591
179
(3) "LOCAL TAXING UNIT" MEANS A SUBDIVISION, AS DEFINED IN 7,593
SECTION 5705.01 OF THE REVISED CODE, BUT EXCLUDES SCHOOL 7,594
DISTRICTS AND JOINT VOCATIONAL SCHOOL DISTRICTS. 7,595
(4) "STATE EDUCATION AID" MEANS THE SUM OF THE STATE BASIC 7,597
AID AND STATE SPECIAL EDUCATION AID AMOUNTS COMPUTED FOR A SCHOOL 7,598
DISTRICT UNDER DIVISIONS (A) AND (B) OF SECTION 3317.022 OF THE 7,599
REVISED CODE. 7,600
(5) "STATE EDUCATION AID OFFSET" MEANS THE AMOUNT 7,602
CERTIFIED FOR EACH SCHOOL DISTRICT UNDER DIVISION (A)(1) OF 7,603
SECTION 5727.85 OF THE REVISED CODE. 7,604
(6) "ADJUSTED TOTAL TAXABLE VALUE" HAS THE SAME MEANING AS 7,606
IN SECTION 3317.02 OF THE REVISED CODE. 7,607
(7) "TAX VALUE LOSS" MEANS THE AMOUNT DETERMINED UNDER 7,609
DIVISION (C) OF THIS SECTION. 7,610
(8) "FIXED-RATE LEVY" MEANS ANY TAX LEVIED ON PROPERTY 7,612
OTHER THAN A FIXED-SUM LEVY. 7,613
(9) "FIXED-RATE LEVY LOSS" MEANS THE AMOUNT DETERMINED 7,615
UNDER DIVISION (D) OF THIS SECTION. 7,616
(10) "FIXED-SUM LEVY" MEANS A TAX LEVIED ON PROPERTY AT 7,618
WHATEVER RATE IS REQUIRED TO PRODUCE A SPECIFIED AMOUNT OF TAX 7,619
MONEY OR TO PAY DEBT CHARGES, AND INCLUDES SCHOOL DISTRICT 7,620
EMERGENCY LEVIES IMPOSED PURSUANT TO SECTION 5705.194 OF THE 7,621
REVISED CODE.
(11) "FIXED-SUM LEVY LOSS" MEANS THE AMOUNT DETERMINED 7,623
UNDER DIVISION (E) OF THIS SECTION. 7,624
(12) "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX 7,626
(ALL ITEMS, ALL URBAN CONSUMERS) PREPARED BY THE BUREAU OF LABOR 7,627
STATISTICS OF THE UNITED STATES DEPARTMENT OF LABOR. 7,628
(B) ALL MONEY ARISING FROM THE TAX IMPOSED BY SECTION 7,630
5727.81 OF THE REVISED CODE SHALL BE CREDITED AS FOLLOWS: 7,631
(1) FIFTY-NINE AND NINE HUNDRED SEVENTY-SIX 7,633
ONE-THOUSANDTHS PER CENT, PLUS AN AMOUNT EQUAL TO THE STATE 7,634
EDUCATION AID OFFSET, SHALL BE CREDITED TO THE GENERAL REVENUE 7,635
FUND.
180
(2) TWO AND SIX HUNDRED FORTY-SIX ONE-THOUSANDTHS PER CENT 7,637
SHALL BE CREDITED TO THE LOCAL GOVERNMENT FUND, FOR DISTRIBUTION 7,638
IN ACCORDANCE WITH SECTION 5747.50 OF THE REVISED CODE. 7,639
(3) THREE HUNDRED SEVENTY-EIGHT ONE-THOUSANDTHS PER CENT 7,641
SHALL BE CREDITED TO THE LOCAL GOVERNMENT REVENUE ASSISTANCE 7,642
FUND, FOR DISTRIBUTION IN ACCORDANCE WITH SECTION 5747.61 OF THE 7,643
REVISED CODE. 7,644
(4) TWENTY-FIVE AND NINE-TENTHS PER CENT, LESS AN AMOUNT 7,646
EQUAL TO THE STATE EDUCATION AID OFFSET, SHALL BE CREDITED TO THE 7,647
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 7,648
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 7,649
PAYMENTS DESCRIBED IN SECTION 5727.85 OF THE REVISED CODE. 7,650
(5) ELEVEN AND ONE-TENTH PER CENT SHALL BE CREDITED TO THE 7,652
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 7,653
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 7,654
PAYMENTS DESCRIBED IN SECTION 5727.86 OF THE REVISED CODE. 7,655
(C) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 7,657
SHALL DETERMINE FOR EACH TAXING DISTRICT ITS TAX VALUE LOSS, 7,658
WHICH IS THE SUM OF THE AMOUNTS DESCRIBED IN DIVISIONS (C)(1) AND 7,659
(2) OF THIS SECTION: 7,660
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,662
DESCRIBED IN DIVISION (C)(1)(b) FROM THE AMOUNT DESCRIBED IN 7,663
DIVISION (C)(1)(a) OF THIS SECTION. 7,664
(a) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 7,666
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 7,667
COMMISSIONER FOR TAX YEAR 1998 ON A PRELIMINARY ASSESSMENT, OR AN 7,668
AMENDED PRELIMINARY ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 1999, 7,669
AND AS APPORTIONED TO THE TAXING DISTRICT FOR TAX YEAR 1998; 7,670
(b) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 7,672
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 7,673
COMMISSIONER FOR TAX YEAR 1998 HAD THE PROPERTY BEEN APPORTIONED 7,674
TO THE TAXING DISTRICT FOR TAX YEAR 2001, AND ASSESSED AT THE 7,675
RATES IN EFFECT FOR TAX YEAR 2001. 7,676
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,678
181
DESCRIBED IN DIVISION (C)(2)(b) FROM THE AMOUNT DESCRIBED IN 7,679
DIVISION (C)(2)(a) OF THIS SECTION. 7,680
(a) THE THREE-YEAR AVERAGE FOR TAX YEARS 1996, 1997, AND 7,682
1998 OF THE ASSESSED VALUE FROM NUCLEAR FUEL MATERIALS AND 7,683
ASSEMBLIES ASSESSED AGAINST A PERSON UNDER CHAPTER 5711. OF THE 7,684
REVISED CODE FROM THE LEASING OF THEM TO AN ELECTRIC COMPANY FOR 7,685
THOSE RESPECTIVE TAX YEARS, AS REFLECTED IN THE PRELIMINARY 7,686
ASSESSMENTS;
(b) THE THREE-YEAR AVERAGE ASSESSED VALUE FROM NUCLEAR 7,688
FUEL MATERIALS AND ASSEMBLIES ASSESSED UNDER DIVISION (C)(2)(a) 7,689
OF THIS SECTION FOR TAX YEARS 1996, 1997, AND 1998, AS REFLECTED 7,690
IN THE PRELIMINARY ASSESSMENTS, USING AN ASSESSMENT RATE OF
TWENTY-FIVE PER CENT. 7,691
THE TAX COMMISSIONER MAY REQUEST THAT ELECTRIC COMPANIES 7,693
AND RURAL ELECTRIC COMPANIES FILE A REPORT TO HELP DETERMINE THE 7,694
TAX VALUE LOSS UNDER DIVISION (C) OF THIS SECTION. THE REPORT 7,695
SHALL BE FILED WITHIN THIRTY DAYS OF THE COMMISSIONER'S REQUEST. 7,696
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 7,697
REVISED CODE. 7,698
(D) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 7,700
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 7,701
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-RATE LEVY LOSS, WHICH 7,702
IS ITS TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN EFFECT IN TAX 7,704
YEAR 1998 FOR FIXED-RATE LEVIES.
(E) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 7,706
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 7,708
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-SUM LEVY LOSS, WHICH IS 7,709
THE AMOUNT OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 7,710
DIVISION (E)(2) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 7,711
DIVISION (E)(1) OF THIS SECTION: 7,712
(1) THE TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN 7,714
EFFECT IN TAX YEAR 1998 FOR FIXED-SUM LEVIES FOR ALL TAXING 7,715
DISTRICTS WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 7,716
182
DISTRICT, AND LOCAL TAXING UNIT. FOR THE YEARS 2002 THROUGH 7,717
2006, THIS COMPUTATION SHALL INCLUDE SCHOOL DISTRICT EMERGENCY 7,718
LEVIES THAT EXISTED IN 1998, AND ALL OTHER FIXED-SUM LEVIES THAT 7,719
EXISTED IN 1998 AND CONTINUE TO BE CHARGED IN THE TAX YEAR 7,720
PRECEDING THE DISTRIBUTION YEAR. FOR THE YEARS 2007 THROUGH 7,721
2016, THIS COMPUTATION SHALL EXCLUDE ALL SCHOOL DISTRICT 7,722
EMERGENCY LEVIES AND ALL OTHER FIXED-SUM LEVIES THAT EXISTED IN 7,723
1998 BUT ARE NO LONGER IN EFFECT IN THE TAX YEAR PRECEDING THE 7,724
DISTRIBUTION YEAR.
(2) THE TOTAL TAXABLE VALUE IN TAX YEAR 1998 IN EACH 7,726
SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, AND LOCAL 7,727
TAXING UNIT MULTIPLIED BY ONE-FOURTH OF ONE MILL. 7,728
IF THE COMPUTATION UNDER DIVISION (E) OF THIS SECTION FOR 7,730
ANY SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR LOCAL 7,731
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 7,732
REVISED CODE OR DIVISION (A)(2) OF SECTION 5727.86 OF THE REVISED 7,734
CODE SHALL BE APPORTIONED AMONG ALL CONTRIBUTING FIXED-SUM LEVIES 7,736
IN THE PROPORTION OF EACH LEVY TO THE SUM OF ALL FIXED-SUM LEVIES 7,737
WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR 7,738
LOCAL TAXING UNIT.
Sec. 5727.85. (A) BY THE THIRTY-FIRST DAY OF JULY OF EACH 7,741
YEAR, BEGINNING IN 2002 AND ENDING IN 2016, THE DEPARTMENT OF 7,742
EDUCATION SHALL DETERMINE THE FOLLOWING FOR EACH SCHOOL DISTRICT 7,743
ELIGIBLE FOR PAYMENT UNDER DIVISION (C) OF THIS SECTION: 7,744
(1) THE STATE EDUCATION AID OFFSET, WHICH IS THE 7,746
DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 7,747
DIVISION (A)(1)(b) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 7,749
DIVISION (A)(1)(a) OF THIS SECTION: 7,750
(a) THE STATE EDUCATION AID COMPUTED FOR THE SCHOOL 7,752
DISTRICT FOR THE CURRENT FISCAL YEAR ON THE BASIS OF THE ADJUSTED 7,753
TOTAL TAXABLE VALUE; 7,754
(b) THE STATE EDUCATION AID THAT WOULD BE COMPUTED FOR THE 7,756
SCHOOL DISTRICT FOR THE CURRENT FISCAL YEAR IF THE DISTRICT'S 7,757
183
ADJUSTED TOTAL TAXABLE VALUE INCLUDED THE TAX VALUE LOSS FOR ALL 7,758
TAXING DISTRICTS IN THE SCHOOL DISTRICT.
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE STATE 7,760
EDUCATION AID OFFSET DETERMINED UNDER DIVISION (A)(1) OF THIS 7,761
SECTION FROM THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION 7,762
(D) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 7,763
DISTRICTS IN EACH SCHOOL DISTRICT. THE DEPARTMENT OF EDUCATION 7,764
SHALL CERTIFY THE AMOUNT SO DETERMINED TO THE DIRECTOR OF BUDGET 7,765
AND MANAGEMENT.
(B) NOT LATER THAN THE THIRTY-FIRST DAY OF OCTOBER OF THE 7,768
YEARS 2006 THROUGH 2016, THE DEPARTMENT OF EDUCATION SHALL 7,769
DETERMINE ALL OF THE FOLLOWING FOR EACH SCHOOL DISTRICT: 7,770
(1) THE AMOUNT OBTAINED BY SUBTRACTING THE DISTRICT'S 7,772
STATE EDUCATION AID COMPUTED FOR FISCAL YEAR 2002 FROM THE 7,773
DISTRICT'S STATE EDUCATION AID COMPUTED FOR THE CURRENT FISCAL 7,774
YEAR;
(2) THE INFLATION-ADJUSTED PROPERTY TAX LOSS. THE 7,776
INFLATION-ADJUSTED PROPERTY TAX LOSS EQUALS THE FIXED-RATE LEVY 7,777
LOSS DETERMINED UNDER DIVISION (D) OF SECTION 5727.84 OF THE 7,779
REVISED CODE FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT 7,780
PLUS THE PRODUCT OBTAINED BY MULTIPLYING THAT LOSS BY THE 7,781
CUMULATIVE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FROM 7,782
JANUARY 1, 2002, TO THE THIRTIETH DAY OF JUNE OF THE CURRENT 7,783
YEAR.
(3) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 7,785
COMPUTED UNDER DIVISION (B)(1) FROM THE AMOUNT OF THE 7,786
INFLATION-ADJUSTED PROPERTY TAX LOSS. IF THIS DIFFERENCE IS ZERO 7,787
OR A NEGATIVE NUMBER, NO FURTHER PAYMENTS SHALL BE MADE UNDER 7,788
DIVISION (C) OF THIS SECTION TO THE SCHOOL DISTRICT FROM THE 7,789
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND. IF THE DIFFERENCE 7,791
IS GREATER THAN ZERO, THE DEPARTMENT OF EDUCATION SHALL CERTIFY
THE AMOUNT CALCULATED IN DIVISION (A)(2) OF THIS SECTION TO THE 7,793
DIRECTOR OF BUDGET AND MANAGEMENT NOT LATER THAN THE THIRTY-FIRST 7,794
DAY OF DECEMBER OF EACH YEAR, BEGINNING IN 2006 AND ENDING IN 7,796
184
2016.
(C) FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT, THE 7,798
DIRECTOR OF BUDGET AND MANAGEMENT SHALL PAY FROM THE SCHOOL 7,799
DISTRICT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED 7,800
INCOME TAX FUND IN THE PROPER COUNTY TREASURY ALL OF THE 7,801
FOLLOWING: 7,802
(1) IN FEBRUARY 2002, ONE-HALF OF THE FIXED-RATE LEVY LOSS 7,804
CERTIFIED UNDER DIVISION (D) OF SECTION 5727.84 OF THE REVISED 7,807
CODE ON OR BEFORE THE DAY PRESCRIBED FOR THE SETTLEMENT UNDER 7,808
DIVISION (A) OF SECTION 321.24 OF THE REVISED CODE. 7,809
(2) FROM AUGUST 2002 THROUGH AUGUST 2006, ONE-HALF OF THE 7,812
AMOUNT CERTIFIED FOR THAT FISCAL YEAR UNDER DIVISION (A)(2) OF 7,813
THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 7,814
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 7,815
REVISED CODE. 7,816
(3) FROM FEBRUARY 2007 THROUGH AUGUST 2016, ONE-HALF OF 7,818
THE AMOUNT CERTIFIED FOR THAT CALENDAR YEAR UNDER DIVISION (B)(3) 7,820
OF THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 7,821
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 7,822
REVISED CODE. 7,823
THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 7,825
DIVISIONS (C)(1), (2), AND (3) OF THIS SECTION TO THE PROPER 7,826
SCHOOL DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS 7,827
TAXES, AND THE SCHOOL DISTRICT SHALL APPORTION THE AMOUNTS SO
RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE 7,828
AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 7,829
(D) NOT LATER THAN JANUARY 1, 2002, FOR ALL TAXING 7,831
DISTRICTS IN EACH JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 7,833
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 7,834
MANAGEMENT THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D) 7,836
OF SECTION 5727.84 OF THE REVISED CODE. FROM FEBRUARY 2002 TO 7,838
AUGUST 2016, THE DIRECTOR SHALL PAY FROM THE SCHOOL DISTRICT 7,839
PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX 7,840
FUND IN THE PROPER COUNTY TREASURY, ONE-HALF OF THE FIXED-RATE 7,841
185
LEVY LOSS SO CERTIFIED FOR EACH YEAR ON OR BEFORE EACH OF THE 7,842
DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER DIVISIONS (A) AND (C) 7,843
OF SECTION 321.24 OF THE REVISED CODE. THE COUNTY TREASURER 7,845
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 7,846
THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS 7,847
AS IF THOSE AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 7,848
(E)(1) NOT LATER THAN JANUARY 1, 2002, FOR EACH SCHOOL 7,850
DISTRICT AND JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 7,851
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND
MANAGEMENT THE FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) 7,852
OF SECTION 5727.84 OF THE REVISED CODE. THE CERTIFICATION SHALL 7,853
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 7,854
COUNTY UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY 7,855
ONE-HALF OF THE FIXED-SUM LEVY LOSS SO CERTIFIED FOR EACH YEAR ON 7,856
OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER 7,857
DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED CODE. THE 7,859
COUNTY TREASURER SHALL DISTRIBUTE THE AMOUNTS TO THE PROPER 7,860
SCHOOL DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT AS IF THEY
HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE DISTRICT SHALL 7,861
APPORTION THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN THE SAME 7,862
PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED AND COLLECTED AS 7,863
TAXES. NO PAYMENTS SHALL BE MADE UNDER THIS DIVISION ONCE ALL 7,864
FIXED-SUM LEVIES IN EFFECT IN 1998 HAVE EXPIRED.
(2) BEGINNING IN 2003 AND ENDING IN 2016, BY THE 7,866
THIRTY-FIRST DAY OF JANUARY OF EACH YEAR, THE TAX COMMISSIONER 7,867
SHALL REVIEW THE CERTIFICATION ORIGINALLY MADE UNDER DIVISION 7,869
(E)(1) OF THIS SECTION. IF THE COMMISSIONER DETERMINES THAT A 7,870
FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 7,871
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 7,872
ALL SUBSEQUENT YEARS SHALL BE MADE TO THE DIRECTOR OF BUDGET AND 7,873
186
MANAGEMENT. 7,874
(F) BY AUGUST 5, 2002, THE TAX COMMISSIONER SHALL ESTIMATE 7,877
THE AMOUNT OF MONEY IN THE SCHOOL DISTRICT PROPERTY TAX 7,878
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE 7,879
PAYMENTS IN THAT MONTH UNDER DIVISIONS (C), (D), AND (E) OF THIS 7,880
SECTION. NOTWITHSTANDING DIVISION (C) OF THIS SECTION, THE 7,881
DEPARTMENT OF EDUCATION, IN CONSULTATION WITH THE TAX 7,882
COMMISSIONER AND FROM THOSE EXCESS FUNDS, MAY PAY ANY SCHOOL 7,884
DISTRICT FOUR AND ONE-HALF TIMES THE AMOUNT CERTIFIED UNDER
DIVISION (A)(2) OF THIS SECTION. PAYMENTS SHALL BE MADE IN ORDER 7,885
FROM THE SMALLEST ANNUAL LOSS TO THE LARGEST ANNUAL LOSS. A 7,886
PAYMENT MADE UNDER THIS DIVISION SHALL BE IN LIEU OF THE PAYMENT 7,888
TO BE MADE IN AUGUST 2002 UNDER DIVISION (C)(2) OF THIS SECTION. 7,889
NO PAYMENTS SHALL BE MADE IN THE MANNER ESTABLISHED IN THIS 7,890
DIVISION TO ANY SCHOOL DISTRICT WITH ANNUAL LOSSES FROM PERMANENT 7,891
IMPROVEMENT FIXED-RATE LEVIES IN EXCESS OF TWENTY THOUSAND 7,892
DOLLARS, OR ANNUAL LOSSES FROM ANY OTHER FIXED-RATE LEVIES IN 7,893
EXCESS OF TWENTY THOUSAND DOLLARS. A SCHOOL DISTRICT RECEIVING A 7,894
PAYMENT UNDER THIS DIVISION IS NO LONGER ENTITLED TO ANY FURTHER 7,895
PAYMENTS UNDER DIVISION (C) OF THIS SECTION. 7,896
(G) ON THE THIRTY-FIRST DAY OF JULY OF 2003, 2004, 2005, 7,898
AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY OF 2007 7,900
AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE SCHOOL 7,901
DISTRICT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT NEEDED 7,902
TO MAKE PAYMENTS FROM THE FUND UNDER DIVISIONS (C), (D), AND (E) 7,903
OF THIS SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET 7,905
AND MANAGEMENT SHALL DISTRIBUTE THE EXCESS AMONG SCHOOL DISTRICTS 7,906
AND JOINT VOCATIONAL SCHOOL DISTRICTS. THE AMOUNT DISTRIBUTED TO 7,908
EACH DISTRICT SHALL BEAR THE SAME PROPORTION TO THE EXCESS 7,909
REMAINING IN THE FUND AS THE ADM OF THE DISTRICT BEARS TO THE ADM 7,910
OF ALL OF THE DISTRICTS. FOR THE PURPOSE OF THIS DIVISION, "ADM" 7,911
MEANS THE FORMULA ADM IN THE CASE OF A SCHOOL DISTRICT, AND THE 7,913
AVERAGE DAILY MEMBERSHIP REPORTED UNDER SECTION 3317.03 OF THE 7,914
REVISED CODE IN THE CASE OF A JOINT VOCATIONAL SCHOOL DISTRICT. 7,915
187
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 7,917
MANAGEMENT, THE EXCESS REMAINING IN THE SCHOOL DISTRICT PROPERTY 7,918
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 7,919
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 7,920
CREDIT OF THE FUND.
AMOUNTS RECEIVED BY A SCHOOL DISTRICT OR JOINT VOCATIONAL 7,922
SCHOOL DISTRICT UNDER THIS DIVISION SHALL BE USED EXCLUSIVELY FOR 7,923
CAPITAL IMPROVEMENTS. 7,924
(H) IF THE TOTAL AMOUNT IN THE SCHOOL DISTRICT PROPERTY 7,926
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 7,927
DIVISIONS (C), (D), AND (E) OF THIS SECTION, THE PAYMENTS 7,928
REQUIRED UNDER DIVISION (E) OF THIS SECTION SHALL BE MADE FIRST 7,929
IN THEIR ENTIRETY. AFTER ALL PAYMENTS ARE MADE UNDER DIVISION 7,930
(E) OF THIS SECTION, PAYMENTS UNDER DIVISIONS (C) AND (D) OF THIS 7,931
SECTION SHALL BE MADE FROM THE BALANCE OF MONEY AVAILABLE IN THE 7,932
PROPORTION OF EACH SCHOOL DISTRICT'S OR JOINT VOCATIONAL SCHOOL 7,933
DISTRICT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF PAYMENTS UNDER 7,934
DIVISIONS (C) AND (D) OF THIS SECTION. 7,935
(I) IF ALL OR A PART OF THE TERRITORY OF A SCHOOL DISTRICT 7,937
OR JOINT VOCATIONAL SCHOOL DISTRICT IS MERGED WITH OR TRANSFERRED 7,938
TO ANOTHER DISTRICT, THE TAX COMMISSIONER SHALL ADJUST THE
PAYMENTS MADE UNDER THIS SECTION TO EACH OF THE DISTRICTS IN 7,939
PROPORTION TO THE TAX VALUE LOSS APPORTIONED TO THE MERGED OR 7,940
TRANSFERRED TERRITORY. 7,941
(J) THERE IS HEREBY CREATED THE ELECTRIC PROPERTY TAX 7,943
STUDY COMMITTEE, EFFECTIVE JANUARY 1, 2011. THE COMMITTEE SHALL 7,944
CONSIST OF THE FOLLOWING SEVEN MEMBERS: THE TAX COMMISSIONER, 7,945
THREE MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE 7,946
SENATE, AND THREE MEMBERS OF THE HOUSE OF REPRESENTATIVES 7,947
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. THE 7,948
APPOINTMENTS SHALL BE MADE NOT LATER THAN JANUARY 31, 2011. THE 7,949
TAX COMMISSIONER SHALL BE THE CHAIRPERSON OF THE COMMITTEE. 7,950
THE COMMITTEE SHALL STUDY THE EXTENT TO WHICH EACH SCHOOL 7,952
DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT HAS BEEN 7,953
188
COMPENSATED, UNDER SECTIONS 5727.84 AND 5727.85 OF THE REVISED 7,954
CODE AS ENACTED BY SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd 7,955
GENERAL ASSEMBLY AND ANY SUBSEQUENT ACTS, FOR THE PROPERTY TAX 7,956
LOSS CAUSED BY THE REDUCTION IN THE ASSESSMENT RATES FOR ELECTRIC
AND RURAL ELECTRIC COMPANY TANGIBLE PERSONAL PROPERTY. NOT LATER 7,957
THAN JUNE 30, 2011, THE COMMITTEE SHALL ISSUE A REPORT OF ITS 7,958
FINDINGS, INCLUDING ANY RECOMMENDATIONS FOR PROVIDING ADDITIONAL 7,959
COMPENSATION FOR THE PROPERTY TAX LOSS OR REGARDING REMEDIAL
LEGISLATION, TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF 7,960
THE HOUSE OF REPRESENTATIVES, AT WHICH TIME THE COMMITTEE SHALL 7,961
CEASE TO EXIST.
THE DEPARTMENT OF TAXATION AND DEPARTMENT OF EDUCATION 7,963
SHALL PROVIDE SUCH INFORMATION AND ASSISTANCE AS IS REQUIRED FOR 7,964
THE COMMITTEE TO CARRY OUT ITS DUTIES. 7,965
Sec. 5727.86. (A) NOT LATER THAN JANUARY 1, 2002, THE TAX 7,967
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 7,968
MANAGEMENT, FOR ALL TAXING DISTRICTS IN EACH LOCAL TAXING UNIT,
THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D), AND THE 7,969
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E), OF SECTION 7,970
5727.84 OF THE REVISED CODE. BASED ON THAT CERTIFICATION, THE 7,971
DIRECTOR SHALL COMPUTE THE PAYMENTS TO BE MADE TO EACH LOCAL 7,972
TAXING UNIT FOR EACH YEAR ACCORDING TO DIVISIONS (A)(1), (2), AND 7,973
(3) AND DIVISION (E) OF THIS SECTION, AND SHALL DISTRIBUTE THE 7,975
PAYMENTS IN THE MANNER PRESCRIBED BY DIVISION (C) OF THIS 7,976
SECTION. THE CERTIFICATION OF THE FIXED-SUM LEVY LOSS SHALL 7,977
COVER A PERIOD OF TIME SUFFICIENT TO INCLUDE ALL FIXED-SUM LEVIES 7,978
IN EFFECT IN 1998 UNTIL THEY ARE DUE TO EXPIRE. 7,979
(1) EXCEPT AS PROVIDED IN DIVISION (A)(3) OF THIS SECTION, 7,981
FOR FIXED-RATE LEVY LOSSES DETERMINED UNDER DIVISION (D) OF 7,982
SECTION 5727.84 OF THE REVISED CODE, PAYMENTS SHALL BE MADE IN 7,983
EACH OF THE FOLLOWING YEARS AT THE FOLLOWING PERCENTAGE OF THE 7,984
FIXED-RATE LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 7,985
SECTION:
YEAR PERCENTAGE 7,988
189
2002 100% 7,990
2003 100% 7,991
2004 100% 7,992
2005 100% 7,993
2006 100% 7,994
2007 80% 7,995
2008 80% 7,996
2009 80% 7,997
2010 80% 7,998
2011 80% 7,999
2012 66.7% 8,000
2013 53.4% 8,001
2014 40.1% 8,002
2015 26.8% 8,003
2016 13.5% 8,005
2017 AND THEREAFTER 0% 8,007
(2) FOR FIXED-SUM LEVY LOSSES DETERMINED UNDER DIVISION 8,010
(E) OF SECTION 5727.84 OF THE REVISED CODE, ONE HUNDRED PER CENT 8,011
OF THE FIXED-SUM LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 8,012
SECTION FOR PAYMENTS REQUIRED TO BE MADE IN 2002 AND THEREAFTER. 8,013
(3) A LOCAL TAXING UNIT IN A COUNTY OF LESS THAN TWO 8,015
HUNDRED FIFTY SQUARE MILES THAT RECEIVES EIGHTY PER CENT OR MORE 8,016
OF ITS COMBINED GENERAL FUND AND BOND RETIREMENT FUND REVENUES 8,017
FROM PROPERTY TAXES AND ROLLBACKS BASED ON 1997 ACTUAL REVENUES 8,018
AS PRESENTED IN ITS 1999 TAX BUDGET, AND IN WHICH ELECTRIC 8,019
COMPANIES AND RURAL ELECTRIC COMPANIES COMPRISE OVER TWENTY PER 8,020
CENT OF ITS PROPERTY VALUATION, SHALL RECEIVE ONE HUNDRED PER 8,021
CENT OF ITS FIXED-RATE LEVY LOSSES CERTIFIED UNDER DIVISION (A) 8,022
OF THIS SECTION IN YEARS 2002 TO 2016. 8,023
(B) BEGINNING IN 2003, BY THE THIRTY-FIRST DAY OF JANUARY 8,026
OF EACH YEAR, THE TAX COMMISSIONER SHALL REVIEW THE CERTIFICATION 8,027
ORIGINALLY MADE UNDER DIVISION (A) OF THIS SECTION OF THE 8,028
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) OF SECTION 8,029
5727.84 OF THE REVISED CODE. IF THE COMMISSIONER DETERMINES THAT 8,031
190
A FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 8,032
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 8,033
ALL SUBSEQUENT YEARS SHALL BE MADE. 8,034
(C) PAYMENTS TO LOCAL TAXING UNITS REQUIRED TO BE MADE 8,036
UNDER DIVISIONS (A) AND (E) OF THIS SECTION SHALL BE PAID FROM 8,037
THE LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY 8,039
UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY. 8,040
ONE-HALF OF THE AMOUNT CERTIFIED UNDER THOSE DIVISIONS SHALL BE 8,041
PAID ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS 8,042
UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED 8,044
CODE. THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 8,045
DIVISION (A) OF THIS SECTION TO THE PROPER LOCAL TAXING UNIT AS 8,046
IF THEY HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE LOCAL
TAXING UNIT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG ITS 8,047
FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED
AND COLLECTED AS TAXES. AMOUNTS DISTRIBUTED UNDER DIVISION (E) 8,048
OF THIS SECTION SHALL BE CREDITED TO THE GENERAL FUND OF THE 8,049
LOCAL TAXING UNIT THAT RECEIVES THEM. 8,050
(D) BY FEBRUARY 5, 2002, THE TAX COMMISSIONER SHALL 8,052
ESTIMATE THE AMOUNT OF MONEY IN THE LOCAL GOVERNMENT PROPERTY TAX 8,053
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE
PAYMENTS IN THAT MONTH UNDER DIVISION (C) OF THIS SECTION. 8,054
NOTWITHSTANDING DIVISION (A) OF THIS SECTION, THE TAX 8,055
COMMISSIONER MAY PAY ANY LOCAL TAXING UNIT, FROM THOSE EXCESS
FUNDS, NINE AND FOUR-TENTHS TIMES THE AMOUNT COMPUTED FOR 2002 8,056
UNDER DIVISION (A)(1) OF THIS SECTION. A PAYMENT MADE UNDER THIS 8,057
DIVISION SHALL BE IN LIEU OF THE PAYMENT TO BE MADE IN FEBRUARY 8,058
2002 UNDER DIVISION (A)(1) OF THIS SECTION. A LOCAL TAXING UNIT 8,059
RECEIVING A PAYMENT UNDER THIS DIVISION WILL NO LONGER BE 8,060
ENTITLED TO ANY FURTHER PAYMENTS UNDER DIVISION (A)(1) OF THIS 8,061
SECTION.
(E) ON THE THIRTY-FIRST DAY OF JULY OF 2002, 2003, 2004, 8,063
2005, AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY 8,065
OF 2007 AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE 8,066
191
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT 8,067
NEEDED TO BE DISTRIBUTED FROM THE FUND UNDER DIVISION (A) OF THIS 8,068
SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET AND 8,069
MANAGEMENT SHALL DISTRIBUTE THE EXCESS TO EACH COUNTY AS FOLLOWS: 8,070
(1) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN 8,072
PROPORTION TO EACH COUNTY'S POPULATION. 8,073
(2) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN THE 8,075
PROPORTION THAT THE AMOUNTS DETERMINED UNDER DIVISIONS (D) AND 8,077
(E) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 8,078
DISTRICTS IN THE COUNTY IS OF THE TOTAL AMOUNTS SO DETERMINED FOR 8,079
ALL TAXING DISTRICTS IN THE STATE. 8,080
THE AMOUNTS DISTRIBUTED TO EACH COUNTY UNDER THIS DIVISION 8,082
SHALL BE DISTRIBUTED BY THE COUNTY BUDGET COMMISSION TO EACH 8,083
LOCAL TAXING UNIT IN THE COUNTY IN THE PROPORTION THAT THE UNIT'S 8,084
CURRENT TAXES CHARGED AND PAYABLE ARE OF THE TOTAL CURRENT TAXES 8,085
CHARGED AND PAYABLE OF ALL THE LOCAL TAXING UNITS IN THE COUNTY. 8,086
AS USED IN THIS DIVISION, "CURRENT TAXES CHARGED AND PAYABLE" 8,087
MEANS THE TAXES CHARGED AND PAYABLE AS MOST RECENTLY DETERMINED 8,088
FOR LOCAL TAXING UNITS IN THE COUNTY. 8,089
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 8,091
MANAGEMENT, THE EXCESS REMAINING IN THE LOCAL GOVERNMENT PROPERTY 8,092
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 8,093
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 8,094
CREDIT OF THE FUND.
(F) IF THE TOTAL AMOUNT IN THE LOCAL GOVERNMENT PROPERTY 8,096
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 8,097
DIVISION (C) OF THIS SECTION, THE PAYMENTS REQUIRED UNDER 8,098
DIVISION (A)(2) OF THIS SECTION SHALL BE MADE FIRST IN THEIR 8,099
ENTIRETY. AFTER ALL SUCH PAYMENTS ARE MADE, PAYMENTS UNDER 8,100
DIVISIONS (A)(1) AND (3) OF THIS SECTION SHALL BE MADE FROM THE 8,101
BALANCE OF MONEY AVAILABLE IN THE PROPORTION OF EACH LOCAL TAXING 8,102
UNIT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF ALL PAYMENTS TO BE 8,103
MADE UNDER DIVISION (A)(2) OF THIS SECTION. 8,105
(G) IF ALL OR A PART OF THE TERRITORIES OF TWO OR MORE 8,107
192
LOCAL TAXING UNITS ARE MERGED, OR UNINCORPORATED TERRITORY OF A 8,108
TOWNSHIP IS ANNEXED BY A MUNICIPAL CORPORATION, THE TAX 8,109
COMMISSIONER SHALL ADJUST THE PAYMENTS MADE UNDER THIS SECTION TO 8,110
EACH OF THE LOCAL TAXING UNITS IN PROPORTION TO THE TAX VALUE 8,111
LOSS APPORTIONED TO THE MERGED OR ANNEXED TERRITORY, OR AS 8,112
OTHERWISE PROVIDED BY A WRITTEN AGREEMENT BETWEEN THE LEGISLATIVE 8,113
AUTHORITIES OF THE LOCAL TAXING UNITS CERTIFIED TO THE TAX 8,114
COMMISSIONER NOT LATER THAN THE FIRST DAY OF JUNE OF THE CALENDAR 8,115
YEAR IN WHICH THE PAYMENT IS TO BE MADE. 8,116
Sec. 5727.87. (A) AS USED IN THIS SECTION: 8,118
(1) "ADMINISTRATIVE FEES" MEANS THE DOLLAR PERCENTAGES 8,120
ALLOWED BY THE COUNTY AUDITOR FOR SERVICES OR BY THE COUNTY 8,121
TREASURER AS FEES, OR PAID TO THE CREDIT OF THE REAL ESTATE 8,122
ASSESSMENT FUND, UNDER DIVISIONS (A) AND (B) OF SECTION 319.54 8,123
AND DIVISION (A) OF SECTION 321.26 OF THE REVISED CODE. 8,125
(2) "ADMINISTRATIVE FEE LOSS" MEANS A COUNTY'S LOSS OF 8,127
ADMINISTRATIVE FEES DUE TO ITS TAX VALUE LOSS, DETERMINED AS 8,128
FOLLOWS:
(a) FOR PURPOSES OF THE DETERMINATION MADE UNDER DIVISION 8,130
(B) OF THIS SECTION IN THE YEARS 2002 THROUGH 2006, THE 8,132
ADMINISTRATIVE FEE LOSS SHALL BE COMPUTED BY MULTIPLYING THE 8,133
AMOUNTS DETERMINED FOR ALL TAXING DISTRICTS IN THE COUNTY UNDER 8,134
DIVISIONS (D) AND (E) OF SECTION 5727.84 OF THE REVISED CODE BY 8,136
NINE THOUSAND SIX HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER 8,138
CENT, IF TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 8,139
EXCEEDED ONE HUNDRED FIFTY MILLION DOLLARS, OR ONE AND ONE 8,140
THOUSAND ONE HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER CENT, IF 8,141
TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 WERE ONE 8,142
HUNDRED FIFTY MILLION DOLLARS OR LESS; 8,143
(b) FOR PURPOSES OF THE DETERMINATION UNDER DIVISION (B) 8,145
OF THIS SECTION IN THE YEARS 2007 THROUGH 2011, THE 8,147
ADMINISTRATIVE FEE LOSS SHALL BE DETERMINED BY SUBTRACTING FROM 8,148
THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES COLLECTED IN THE COUNTY 8,149
IN TAX YEAR 1998, THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES 8,150
193
COLLECTED IN THE COUNTY IN THE CURRENT CALENDAR YEAR. 8,151
(B) NOT LATER THAN THE FIRST DAY OF JUNE OF 2002 THROUGH 8,153
2011, THE COUNTY AUDITOR SHALL DETERMINE THE ADMINISTRATIVE FEE 8,156
LOSS FOR THE COUNTY AND CERTIFY IT TO THE COUNTY BUDGET 8,157
COMMISSION. NOTWITHSTANDING DIVISIONS (C), (D), AND (E) OF 8,158
SECTION 5727.85 AND DIVISION (C) OF SECTION 5727.86 OF THE 8,160
REVISED CODE, PRIOR TO DISTRIBUTION BY THE COUNTY TREASURER OF 8,162
THE PAYMENTS PROVIDED UNDER THOSE DIVISIONS, THE COUNTY BUDGET 8,163
COMMISSION SHALL DEDUCT FROM THOSE PAYMENTS THE AMOUNT OF THE 8,164
ADMINISTRATIVE FEE LOSS CERTIFIED BY THE COUNTY AUDITOR, AS 8,165
FOLLOWS:
(1) SEVENTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,167
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISIONS (C), (D), 8,169
AND (E) OF SECTION 5727.85 OF THE REVISED CODE. 8,170
(2) THIRTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,172
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISION (C) OF 8,173
SECTION 5727.86 OF THE REVISED CODE. 8,174
(C) ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,176
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,177
REVISED CODE IN THE YEARS 2002 THROUGH 2011, THE COUNTY BUDGET 8,179
COMMISSION SHALL PAY ONE-HALF OF THE AMOUNT OF THE ADMINISTRATIVE 8,180
FEE LOSS TO THE COUNTY AUDITOR, COUNTY TREASURER, OR REAL ESTATE 8,181
ASSESSMENT FUND AS IF THE AMOUNT HAD BEEN ALLOWED AS 8,182
ADMINISTRATIVE FEES, AND SHALL DEPOSIT THE AMOUNT IN THE SAME 8,183
FUNDS AS IF ALLOWED AS ADMINISTRATIVE FEES. 8,184
AFTER PAYMENT OF THE ADMINISTRATIVE FEE LOSS ON OR BEFORE 8,186
AUGUST 10, 2011, ALL PAYMENTS UNDER THIS SECTION SHALL CEASE. 8,187
Sec. 5727.88. THE TAX COMMISSIONER SHALL ADMINISTER 8,189
SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE AND MAY ADOPT 8,192
SUCH RULES AS ARE NECESSARY TO ADMINISTER THOSE SECTIONS. UPON 8,194
REQUEST OF THE TAX COMMISSIONER, THE PUBLIC UTILITIES COMMISSION
SHALL ASSIST THE TAX COMMISSIONER BY PROVIDING INFORMATION 8,195
REGARDING ANY ELECTRIC DISTRIBUTION COMPANY THAT IS SUBJECT TO 8,196
REGULATION BY THE COMMISSION. 8,197
194
Sec. 5727.89. (A) THE TAX COMMISSIONER MAY MAKE AN 8,200
ASSESSMENT, BASED ON ANY INFORMATION IN THE COMMISSIONER'S
POSSESSION, AGAINST ANY ELECTRIC DISTRIBUTION COMPANY, 8,201
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER THAT FAILS TO 8,204
FILE A RETURN OR PAY ANY TAX, INTEREST, OR ADDITIONAL CHARGE AS 8,205
REQUIRED BY SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE. 8,207
WHEN INFORMATION IN THE POSSESSION OF THE TAX COMMISSIONER 8,209
INDICATES THAT A PERSON LIABLE FOR THE TAX IMPOSED BY SECTION 8,211
5727.81 OF THE REVISED CODE HAS NOT PAID THE FULL AMOUNT OF TAX 8,214
DUE, THE COMMISSIONER MAY AUDIT A REPRESENTATIVE SAMPLE OF THE 8,215
PERSON'S BUSINESS AND MAY ISSUE AN ASSESSMENT BASED ON THE AUDIT. 8,216
THE COMMISSIONER SHALL GIVE THE PERSON ASSESSED WRITTEN NOTICE OF 8,217
THE ASSESSMENT BY PERSONAL SERVICE OR CERTIFIED MAIL. 8,218
THE TAX COMMISSIONER MAY ISSUE AN ASSESSMENT FOR WHICH THE 8,220
TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WAS DUE AND 8,221
UNPAID ON THE DATE THE PERSON WAS INFORMED BY AN AGENT OF THE TAX 8,223
COMMISSIONER OF AN INVESTIGATION OR AUDIT OF THE PERSON. ANY 8,224
PAYMENT OF THE TAX FOR THE PERIOD COVERED BY THE ASSESSMENT, 8,225
AFTER THE PERSON IS SO INFORMED, SHALL BE CREDITED AGAINST THE 8,226
ASSESSMENT. 8,227
A PENALTY OF FIFTEEN PER CENT SHALL BE ADDED TO ALL AMOUNTS 8,230
ASSESSED UNDER THIS SECTION. THE COMMISSIONER MAY ADOPT RULES 8,231
PROVIDING FOR THE REMISSION OF PENALTIES.
(B) UNLESS THE PARTY ASSESSED FILES WITH THE TAX 8,234
COMMISSIONER WITHIN THIRTY DAYS AFTER SERVICE OF THE NOTICE OF 8,235
ASSESSMENT, EITHER PERSONALLY OR BY CERTIFIED MAIL, A WRITTEN 8,236
PETITION FOR REASSESSMENT SIGNED BY THE PARTY ASSESSED OR THE 8,237
PARTY'S AUTHORIZED AGENT HAVING KNOWLEDGE OF THE FACTS, THE 8,238
ASSESSMENT IS FINAL AND THE AMOUNT OF THE ASSESSMENT IS DUE AND 8,239
PAYABLE FROM THE PARTY ASSESSED TO THE TREASURER OF STATE. THE 8,240
PETITION SHALL INDICATE THE OBJECTIONS OF THE PARTY ASSESSED, BUT 8,241
ADDITIONAL OBJECTIONS MAY BE RAISED IN WRITING PRIOR TO THE DATE 8,242
SHOWN ON THE FINAL DETERMINATION OF THE TAX COMMISSIONER. THE 8,243
COMMISSIONER SHALL GRANT THE PETITIONER A HEARING ON THE 8,244
195
PETITION, UNLESS WAIVED BY THE PETITIONER. 8,245
(C) THE COMMISSIONER MAY MAKE ANY CORRECTION TO THE 8,248
ASSESSMENT THAT THE COMMISSIONER FINDS PROPER AND SHALL ISSUE A 8,249
FINAL DETERMINATION THEREON. THE COMMISSIONER SHALL SERVE A COPY 8,250
OF THE FINAL DETERMINATION ON THE PETITIONER EITHER BY PERSONAL 8,251
SERVICE OR BY CERTIFIED MAIL, AND THE COMMISSIONER'S DECISION IN 8,252
THE MATTER IS FINAL, SUBJECT TO APPEAL UNDER SECTION 5717.02 OF 8,253
THE REVISED CODE. 8,255
(D) AFTER AN ASSESSMENT BECOMES FINAL, IF ANY PORTION OF 8,258
THE ASSESSMENT, INCLUDING ACCRUED INTEREST, REMAINS UNPAID, A 8,259
CERTIFIED COPY OF THE COMMISSIONER'S ENTRY MAKING THE ASSESSMENT 8,260
FINAL MAY BE FILED IN THE OFFICE OF THE CLERK OF THE COURT OF 8,261
COMMON PLEAS IN THE COUNTY IN WHICH THE PARTY ASSESSED RESIDES OR 8,262
IN WHICH THE PARTY'S BUSINESS IS CONDUCTED. IF THE PARTY 8,263
ASSESSED MAINTAINS NO PLACE OF BUSINESS IN THIS STATE AND IS NOT 8,264
A RESIDENT OF THIS STATE, THE CERTIFIED COPY OF THE ENTRY MAY BE 8,266
FILED IN THE OFFICE OF THE CLERK OF THE COURT OF COMMON PLEAS OF 8,267
FRANKLIN COUNTY. 8,268
THE CLERK, IMMEDIATELY UPON THE FILING OF THE ENTRY, SHALL 8,270
ENTER A JUDGMENT FOR THE STATE AGAINST THE PERSON ASSESSED IN THE 8,272
AMOUNT SHOWN ON THE ENTRY. THE JUDGMENT MAY BE FILED BY THE
CLERK IN A LOOSE-LEAF BOOK ENTITLED "SPECIAL JUDGMENTS FOR THE 8,273
KILOWATT-HOUR TAX," AND SHALL HAVE THE SAME EFFECT AS OTHER 8,274
JUDGMENTS. EXECUTION SHALL ISSUE UPON THE JUDGMENT AT THE 8,275
REQUEST OF THE TAX COMMISSIONER, AND ALL LAWS APPLICABLE TO SALES 8,276
ON EXECUTION SHALL APPLY TO SALES MADE UNDER THE JUDGMENT. 8,277
THE PORTION OF THE ASSESSMENT NOT PAID WITHIN THIRTY DAYS 8,279
AFTER THE DAY THE ASSESSMENT WAS ISSUED SHALL BEAR INTEREST AT 8,280
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 8,283
CODE FROM THE DAY THE TAX COMMISSIONER ISSUES THE ASSESSMENT 8,284
UNTIL THE DAY THE ASSESSMENT IS PAID. INTEREST SHALL BE PAID IN 8,285
THE SAME MANNER AS THE TAX AND MAY BE COLLECTED BY THE ISSUANCE 8,286
OF AN ASSESSMENT UNDER THIS SECTION. 8,287
(E) IF THE TAX COMMISSIONER BELIEVES THAT COLLECTION OF 8,290
196
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WILL BE 8,292
JEOPARDIZED UNLESS PROCEEDINGS TO COLLECT OR SECURE COLLECTION OF 8,293
THE TAX ARE INSTITUTED WITHOUT DELAY, THE COMMISSIONER MAY ISSUE 8,294
A JEOPARDY ASSESSMENT AGAINST THE ELECTRIC DISTRIBUTION COMPANY, 8,295
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER LIABLE FOR THE 8,298
TAX. UPON ISSUANCE OF THE JEOPARDY ASSESSMENT, THE COMMISSIONER 8,299
IMMEDIATELY SHALL FILE AN ENTRY WITH THE CLERK OF THE COURT OF 8,300
COMMON PLEAS IN THE MANNER PRESCRIBED BY DIVISION (D) OF THIS 8,301
SECTION. NOTICE OF THE JEOPARDY ASSESSMENT SHALL BE SERVED ON 8,302
THE PARTY ASSESSED OR THE PARTY'S LEGAL REPRESENTATIVE WITHIN 8,303
FIVE DAYS OF THE FILING OF THE ENTRY WITH THE CLERK. THE TOTAL 8,304
AMOUNT ASSESSED IS IMMEDIATELY DUE AND PAYABLE, UNLESS THE PARTY 8,305
ASSESSED FILES A PETITION FOR REASSESSMENT IN ACCORDANCE WITH 8,306
DIVISION (B) OF THIS SECTION AND PROVIDES SECURITY IN A FORM 8,308
SATISFACTORY TO THE COMMISSIONER AND IN AN AMOUNT SUFFICIENT TO 8,309
SATISFY THE UNPAID BALANCE OF THE ASSESSMENT. FULL OR PARTIAL 8,310
PAYMENT OF THE ASSESSMENT DOES NOT PREJUDICE THE COMMISSIONER'S 8,311
CONSIDERATION OF THE PETITION FOR REASSESSMENT. 8,312
(F) ALL MONEY COLLECTED BY THE TAX COMMISSIONER UNDER THIS 8,315
SECTION SHALL BE PAID TO THE TREASURER OF STATE, AND WHEN PAID 8,316
SHALL BE CONSIDERED AS REVENUE ARISING FROM THE TAX IMPOSED BY 8,317
SECTION 5727.81 OF THE REVISED CODE. 8,319
Sec. 5727.90. NO ASSESSMENT OF THE TAX IMPOSED BY SECTION 8,321
5727.81 OF THE REVISED CODE SHALL BE MADE BY THE TAX COMMISSIONER 8,324
MORE THAN FOUR YEARS AFTER THE DATE ON WHICH THE RETURN FOR THE 8,325
PERIOD ASSESSED WAS DUE OR FILED, WHICHEVER DATE IS LATER. THIS 8,326
SECTION DOES NOT BAR AN ASSESSMENT WHEN ANY OF THE FOLLOWING 8,327
OCCUR:
(A) THE PARTY ASSESSED FAILED TO FILE A RETURN AS REQUIRED 8,330
BY SECTION 5727.82 OF THE REVISED CODE; 8,332
(B) THE PARTY ASSESSED KNOWINGLY FILED A FALSE OR 8,335
FRAUDULENT RETURN;
(C) THE PARTY ASSESSED AND THE TAX COMMISSIONER WAIVED IN 8,338
WRITING THE TIME LIMITATION. 8,339
197
Sec. 5727.91. (A) THE TREASURER OF STATE SHALL REFUND THE 8,342
AMOUNT OF TAX PAID UNDER SECTION 5727.81 OF THE REVISED CODE THAT 8,344
WAS PAID ILLEGALLY OR ERRONEOUSLY, OR PAID ON AN ILLEGAL OR 8,345
ERRONEOUS ASSESSMENT. AN ELECTRIC DISTRIBUTION COMPANY OR 8,346
SELF-ASSESSING PURCHASER SHALL FILE AN APPLICATION FOR A REFUND 8,347
WITH THE TAX COMMISSIONER ON A FORM PRESCRIBED BY THE
COMMISSIONER, WITHIN FOUR YEARS OF THE ILLEGAL OR ERRONEOUS 8,348
PAYMENT OF THE TAX. 8,349
UPON THE FILING OF THE APPLICATION, THE COMMISSIONER SHALL 8,351
DETERMINE THE AMOUNT OF REFUND DUE AND CERTIFY THAT AMOUNT TO THE 8,353
DIRECTOR OF BUDGET AND MANAGEMENT AND THE TREASURER OF STATE FOR 8,354
PAYMENT FROM THE TAX REFUND FUND UNDER SECTION 5703.052 OF THE 8,355
REVISED CODE. IF THE APPLICATION FOR REFUND IS FOR TAXES PAID ON 8,357
AN ILLEGAL OR ERRONEOUS ASSESSMENT, THE TAX COMMISSIONER SHALL 8,358
INCLUDE IN THE CERTIFIED AMOUNT INTEREST CALCULATED AT THE RATE 8,359
PER ANNUM UNDER SECTION 5703.47 OF THE REVISED CODE FROM THE DATE 8,361
OF OVERPAYMENT TO THE DATE OF THE COMMISSIONER'S CERTIFICATION. 8,363
(B) IF AN ELECTRIC DISTRIBUTION COMPANY ENTITLED TO A 8,366
REFUND OF TAXES UNDER THIS SECTION IS INDEBTED TO THE STATE FOR 8,367
ANY TAX OR FEE ADMINISTERED BY THE TAX COMMISSIONER THAT IS PAID 8,368
TO THE STATE OR ANY CHARGE, PENALTY, OR INTEREST ARISING FROM 8,370
SUCH A TAX OR FEE, THE AMOUNT REFUNDABLE MAY BE APPLIED IN 8,371
SATISFACTION OF THE DEBT. IF THE AMOUNT REFUNDABLE IS LESS THAN 8,372
THE AMOUNT OF THE DEBT, IT MAY BE APPLIED IN PARTIAL SATISFACTION 8,373
OF THE DEBT. IF THE AMOUNT REFUNDABLE IS GREATER THAN THE AMOUNT 8,374
OF THE DEBT, THE AMOUNT REMAINING AFTER SATISFACTION OF THE DEBT 8,375
SHALL BE REFUNDED. IF THE ELECTRIC DISTRIBUTION COMPANY HAS MORE 8,376
THAN ONE SUCH DEBT, ANY DEBT SUBJECT TO SECTION 5739.33 OR 8,377
DIVISION (G) OF SECTION 5747.07 OF THE REVISED CODE SHALL BE 8,380
SATISFIED FIRST. THIS SECTION APPLIES ONLY TO DEBTS THAT HAVE 8,381
BECOME FINAL. 8,382
(C) ANY ELECTRIC DISTRIBUTION COMPANY THAT CAN 8,385
SUBSTANTIATE TO THE TAX COMMISSIONER THAT THE TAX IMPOSED BY 8,386
SECTION 5727.81 OF THE REVISED CODE WAS PAID ON ELECTRICITY 8,388
198
DISTRIBUTED VIA WIRES AND CONSUMED AT A LOCATION OUTSIDE OF THIS 8,389
STATE MAY CLAIM A REFUND IN THE MANNER AND WITHIN THE TIME PERIOD 8,390
PRESCRIBED IN DIVISION (A) OF THIS SECTION. 8,392
(D) BEFORE A REFUND IS ISSUED UNDER THIS SECTION, AN 8,394
ELECTRIC DISTRIBUTION COMPANY SHALL CERTIFY, AS PRESCRIBED BY THE 8,395
TAX COMMISSIONER, THAT IT EITHER DID NOT INCLUDE THE TAX IMPOSED 8,396
BY SECTION 5727.81 OF THE REVISED CODE IN ITS DISTRIBUTION CHARGE 8,397
TO AN ELECTRIC CUSTOMER UPON WHICH A REFUND OF THE TAX IS 8,398
CLAIMED, OR IT HAS REFUNDED OR CREDITED TO THE ELECTRIC CUSTOMER 8,399
THE EXCESS DISTRIBUTION CHARGE RELATED TO THE TAX THAT WAS 8,400
ERRONEOUSLY INCLUDED IN THE ELECTRIC CUSTOMER'S DISTRIBUTION
CHARGE. 8,401
Sec. 5727.92. EVERY PERSON LIABLE FOR THE TAX IMPOSED BY 8,404
SECTION 5727.81 OF THE REVISED CODE SHALL KEEP COMPLETE AND 8,406
ACCURATE RECORDS OF ALL ELECTRIC DISTRIBUTIONS AND OTHER RECORDS 8,407
AS REQUIRED BY THE TAX COMMISSIONER. THE RECORDS SHALL BE 8,409
PRESERVED FOR FOUR YEARS AFTER THE RETURN FOR THE TAXES TO WHICH 8,410
THE RECORDS PERTAIN IS DUE OR FILED, WHICHEVER IS LATER. THE 8,411
RECORDS SHALL BE AVAILABLE FOR INSPECTION BY THE TAX COMMISSIONER 8,412
OR THE COMMISSIONER'S AUTHORIZED AGENT, UPON REQUEST OF THE 8,413
COMMISSIONER OR SUCH AGENT.
Sec. 5727.93. (A) NO PERSON SHALL DISTRIBUTE ELECTRICITY 8,416
TO A METER OF AN END USER IN THIS STATE WHO IS NOT REGISTERED 8,417
WITH THE TAX COMMISSIONER AS AN ELECTRIC DISTRIBUTION COMPANY. 8,418
(B) EACH PERSON REQUIRED TO REGISTER UNDER DIVISION (A) OF 8,422
THIS SECTION SHALL REGISTER PRIOR TO DISTRIBUTING ELECTRICITY TO 8,423
A METER OF AN END USER IN THIS STATE. THE TAX COMMISSIONER SHALL 8,424
PRESCRIBE THE FORM OF THE REGISTRATION APPLICATION. THE
COMMISSIONER SHALL ASSIGN AN IDENTIFICATION NUMBER TO EACH 8,425
REGISTRATION AND NOTIFY THE REGISTRANT OF THAT NUMBER. THE 8,426
REGISTRATION SHALL REMAIN IN EFFECT UNTIL CANCELED IN WRITING BY 8,427
THE REGISTRANT UPON THE CESSATION OF DISTRIBUTING ELECTRICITY TO 8,428
A METER OF AN END USER IN THIS STATE OR UNTIL SUCH REGISTRATION 8,429
IS DENIED, REVOKED, OR CANCELED BY THE COMMISSIONER. A 8,430
199
REGISTRATION MAY BE REVOKED OR CANCELED BY THE TAX COMMISSIONER 8,431
AS PROVIDED BY CHAPTER 119. OF THE REVISED CODE, FOR FAILURE OF 8,434
AN ELECTRIC DISTRIBUTION COMPANY TO PAY THE TAX IMPOSED BY 8,435
SECTION 5727.81 OF THE REVISED CODE OR TO COMPLY WITH SECTIONS 8,437
5727.80 TO 5727.95 OF THE REVISED CODE. AN ELECTRIC DISTRIBUTION 8,440
COMPANY WHOSE REGISTRATION IS DENIED MAY PETITION FOR A HEARING, 8,441
IN ACCORDANCE WITH THE PROCEDURES SET FORTH IN DIVISIONS (B) AND 8,443
(C) OF SECTION 5727.89 OF THE REVISED CODE, NOT LATER THAN THIRTY 8,446
DAYS AFTER RECEIVING THE DENIAL, AND THE FINAL DETERMINATION IS 8,447
SUBJECT TO APPEAL UNDER SECTION 5717.02 OF THE REVISED CODE. 8,450
(C) THE TAX COMMISSIONER SHALL MAINTAIN A LIST OF THE 8,453
ELECTRIC DISTRIBUTION COMPANIES REGISTERED UNDER THIS SECTION. 8,454
THE LIST SHALL CONTAIN THE NAME AND ADDRESS OF EACH COMPANY 8,455
REGISTERED BY THE COMMISSIONER. THE LIST AND SUBSEQUENT UPDATES 8,456
OF IT SHALL BE OPEN TO PUBLIC INSPECTION.
Sec. 5727.94. EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED 8,458
TO PAY THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 8,461
SHALL PROVIDE TO ITS CUSTOMERS IN THIS STATE THE STATEMENT 8,462
REQUIRED BY SECTION 4933.33 OF THE REVISED CODE. 8,464
Sec. 5727.95. (A) NO ELECTRIC DISTRIBUTION COMPANY OR 8,466
SELF-ASSESSING PURCHASER SHALL FAIL TO FILE ANY RETURN OR REPORT 8,468
REQUIRED TO BE FILED PURSUANT TO SECTION 5727.82 OF THE REVISED 8,470
CODE, OR FILE OR CAUSE TO BE FILED ANY INCOMPLETE, FALSE, OR 8,471
FRAUDULENT RETURN, REPORT, OR STATEMENT, OR AID OR ABET ANOTHER 8,472
IN THE FILING OF ANY FALSE OR FRAUDULENT RETURN, REPORT, OR 8,473
STATEMENT.
(B) NO PERSON SHALL DISTRIBUTE ELECTRICITY TO A METER OF 8,476
AN END USER IN THIS STATE WITHOUT HOLDING A VALID REGISTRATION 8,477
ISSUED UNDER SECTION 5727.93 OF THE REVISED CODE. 8,479
Sec. 5727.99. (A) Whoever violates section 5727.55 of the 8,488
Revised Code shall be fines FINED not less than one hundred nor 8,489
more than one thousand dollars. 8,490
(B) Whoever violates section 5727.71 of the Revised Code 8,492
shall be fined not more than five hundred dollars and imprisoned 8,493
200
not more than thirty days.
(C) Whoever violates section 5727.72 or 5727.73 of the 8,495
Revised Code shall be fined not more than five hundred dollars or 8,497
imprisoned not more than thirty days, or both. 8,498
(D) WHOEVER VIOLATES SECTIONS 5727.80 TO 5727.83, OR 8,500
SECTIONS 5727.88 TO 5727.95 OF THE REVISED CODE OR ANY RULE 8,503
ADOPTED BY THE TAX COMMISSIONER UNDER THOSE SECTIONS, IS GUILTY 8,504
OF A MISDEMEANOR OF THE FIRST DEGREE ON THE FIRST OFFENSE; ON 8,505
EACH SUBSEQUENT OFFENSE, THE PERSON IS GUILTY OF A FELONY OF THE 8,506
FOURTH DEGREE.
Sec. 5733.04. As used in this chapter: 8,515
(A) "Issued and outstanding shares of stock" applies to 8,517
nonprofit corporations, as provided in section 5733.01 of the 8,518
Revised Code, and includes, but is not limited to, membership 8,519
certificates and other instruments evidencing ownership of an 8,520
interest in such nonprofit corporations, and with respect to a 8,521
financial institution which THAT does not have capital stock, 8,522
"issued and outstanding shares of stock" includes, but is not 8,524
limited to, ownership interests of depositors in the capital 8,525
employed in such an institution. 8,526
(B) "Taxpayer" means a corporation subject to the tax 8,528
imposed by section 5733.06 of the Revised Code. 8,529
(C) "Resident" means a corporation organized under the 8,531
laws of this state. 8,532
(D) "Commercial domicile" means the principal place from 8,534
which the trade or business of the taxpayer is directed or 8,535
managed. 8,536
(E) "Taxable year" means the period prescribed by division 8,539
(A) of section 5733.031 of the Revised Code upon the net income 8,541
of which the value of the taxpayer's issued and outstanding 8,542
shares of stock is determined under division (B) of section 8,544
5733.05 of the Revised Code or the period prescribed by division 8,545
(A) of section 5733.031 of the Revised Code that immediately 8,547
precedes the date as of which the total value of the corporation 8,549
201
is determined under division (A) or (C) of section 5733.05 of the 8,550
Revised Code.
(F) "Tax year" means the calendar year in and for which 8,552
the tax imposed by section 5733.06 of the Revised Code is 8,554
required to be paid.
(G) "Internal Revenue Code" means the "Internal Revenue 8,556
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 8,557
(H) "Federal income tax" means the income tax imposed by 8,559
the Internal Revenue Code. 8,560
(I) Except as provided in section 5733.058 of the Revised 8,562
Code, "net income" means the taxpayer's taxable income before 8,564
operating loss deduction and special deductions, as required to 8,565
be reported for the taxpayer's taxable year under the Internal 8,566
Revenue Code, subject to the following adjustments:
(1)(a) Deduct any net operating loss incurred in any 8,568
taxable years ending in 1971 or thereafter but exclusive of any 8,569
net operating loss incurred in taxable years ending prior to 8,570
January 1, 1971. This deduction shall not be allowed in any tax 8,571
year commencing before December 31, 1973, but shall be carried 8,572
over and allowed in tax years commencing after December 31, 1973, 8,573
until fully utilized in the next succeeding taxable year or years 8,574
in which the taxpayer has net income, but in no case for more 8,575
than the designated carryover period as described in division 8,576
(I)(1)(b) of this section. The amount of such net operating 8,577
loss, as determined under the allocation and apportionment 8,578
provisions of section 5733.051 and division (B) of section 8,579
5733.05 of the Revised Code for the year in which the net 8,580
operating loss occurs, shall be deducted from net income, as 8,581
determined under the allocation and apportionment provisions of 8,582
section 5733.051 and division (B) of section 5733.05 of the 8,583
Revised Code, to the extent necessary to reduce net income to 8,584
zero with the remaining unused portion of the deduction, if any, 8,585
carried forward to the remaining years of the designated 8,586
carryover period as described in division (I)(1)(b) of this 8,587
202
section, or until fully utilized, whichever occurs first. 8,588
(b) For losses incurred in taxable years ending on or 8,590
before December 31, 1981, the designated carryover period shall 8,591
be the five consecutive taxable years after the taxable year in 8,592
which the net operating loss occurred. For losses incurred in 8,593
taxable years ending on or after January 1, 1982, the designated 8,594
carryover period shall be the fifteen consecutive taxable years 8,595
after the taxable year in which the net operating loss occurs. 8,596
(c) The tax commissioner may require a taxpayer to furnish 8,598
any information necessary to support a claim for deduction under 8,599
division (I)(1)(a) of this section and no deduction shall be 8,600
allowed unless the information is furnished. 8,601
(2) Deduct any amount included in net income by 8,603
application of section 78 or 951 of the Internal Revenue Code, 8,604
amounts received for royalties, technical or other services 8,605
derived from sources outside the United States, and dividends 8,606
received from a subsidiary, associate, or affiliated corporation 8,607
that neither transacts any substantial portion of its business 8,608
nor regularly maintains any substantial portion of its assets 8,609
within the United States. For purposes of determining net 8,610
foreign source income deductible under division (I)(2) of this 8,611
section, the amount of gross income from all such sources other 8,612
than income derived by application of section 78 or 951 of the 8,613
Internal Revenue Code shall be reduced by: 8,614
(a) The amount of any reimbursed expenses for personal 8,616
services performed by employees of the taxpayer for the 8,617
subsidiary, associate, or affiliated corporation; 8,618
(b) Ten per cent of the amount of royalty income and 8,620
technical assistance fees; 8,621
(c) Fifteen per cent of the amount of dividends and all 8,623
other income. 8,624
The amounts described in divisions (I)(2)(a) to (c) of this 8,626
section are deemed to be the expenses attributable to the 8,627
production of deductible foreign source income unless the 8,628
203
taxpayer shows, by clear and convincing evidence, less actual 8,629
expenses, or the tax commissioner shows, by clear and convincing 8,630
evidence, more actual expenses. 8,631
(3) Add any loss or deduct any gain resulting from the 8,633
sale, exchange, or other disposition of a capital asset, or an 8,634
asset described in section 1231 of the Internal Revenue Code, to 8,635
the extent that such loss or gain occurred prior to the first 8,636
taxable year on which the tax provided for in section 5733.06 of 8,637
the Revised Code is computed on the corporation's net income. 8,638
For purposes of division (I)(3) of this section, the amount of 8,639
the prior loss or gain shall be measured by the difference 8,640
between the original cost or other basis of the asset and the 8,641
fair market value as of the beginning of the first taxable year 8,642
on which the tax provided for in section 5733.06 of the Revised 8,643
Code is computed on the corporation's net income. At the option 8,644
of the taxpayer, the amount of the prior loss or gain may be a 8,645
percentage of the gain or loss, which percentage shall be 8,646
determined by multiplying the gain or loss by a fraction, the 8,647
numerator of which is the number of months from the acquisition 8,648
of the asset to the beginning of the first taxable year on which 8,649
the fee provided in section 5733.06 of the Revised Code is 8,650
computed on the corporation's net income, and the denominator of 8,651
which is the number of months from the acquisition of the asset 8,652
to the sale, exchange, or other disposition of the asset. 8,653
(4) Deduct the dividend received deduction provided by 8,655
section 243 of the Internal Revenue Code. 8,656
(5) Deduct any interest or interest equivalent on public 8,658
obligations and purchase obligations to the extent included in 8,659
federal taxable income. As used in divisions (I)(5) and (6) of 8,660
this section, "public obligations," "purchase obligations," and 8,661
"interest or interest equivalent" have the same meanings as in 8,662
section 5709.76 of the Revised Code. 8,663
(6) Add any loss or deduct any gain resulting from the 8,665
sale, exchange, or other disposition of public obligations to the 8,666
204
extent included in federal taxable income. 8,667
(7) To the extent not otherwise allowed, deduct any 8,669
dividends or distributions received by a taxpayer from a public 8,670
utility, EXCLUDING AN ELECTRIC COMPANY, if the taxpayer owns at 8,671
least eighty per cent of the issued and outstanding common stock 8,673
of the PUBLIC utility. As used in division (I)(7) of this 8,674
section, "public utility" or "utility" means a public utility as 8,675
defined in Chapter 5727. of the Revised Code, whether or not the 8,676
PUBLIC utility is doing business in the state.
(8) To the extent not otherwise allowed, deduct any 8,678
dividends received by a taxpayer from an insurance company, if 8,679
the taxpayer owns at least eighty per cent of the issued and 8,680
outstanding common stock of the insurance company. As used in 8,681
division (I)(8) of this section, "insurance company" means an 8,682
insurance company which THAT is taxable under Chapter 5725. or 8,683
5729. of the Revised Code. 8,684
(9) Deduct expenditures for modifying existing buildings 8,686
or structures to meet American national standards institute 8,687
standard A-117.1-1961 (R-1971), as amended; provided, that no 8,688
deduction shall be allowed to the extent that such deduction is 8,689
not permitted under federal law or under rules of the tax 8,690
commissioner. Those deductions as are allowed may be taken over 8,691
a period of five years. The tax commissioner shall adopt rules 8,692
under Chapter 119. of the Revised Code establishing reasonable 8,693
limitations on the extent that expenditures for modifying 8,694
existing buildings or structures are attributable to the purpose 8,695
of making the buildings or structures accessible to and usable by 8,696
physically handicapped persons. 8,697
(10) Deduct the amount of wages and salaries, if any, not 8,699
otherwise allowable as a deduction but that would have been 8,700
allowable as a deduction in computing federal taxable income 8,701
before operating loss deduction and special deductions for the 8,702
taxable year, had the targeted jobs credit allowed and determined 8,703
under sections 38, 51, and 52 of the Internal Revenue Code not 8,704
205
been in effect. 8,705
(11) Deduct net interest income on obligations of the 8,707
United States and its territories and possessions or of any 8,708
authority, commission, or instrumentality of the United States to 8,709
the extent the laws of the United States prohibit inclusion of 8,710
the net interest for purposes of determining the value of the 8,711
taxpayer's issued and outstanding shares of stock under division 8,712
(B) of section 5733.05 of the Revised Code. As used in division 8,713
(I)(11) of this section, "net interest" means interest net of any 8,714
expenses taken on the federal income tax return that would not 8,715
have been allowed under section 265 of the Internal Revenue Code 8,716
if the interest were exempt from federal income tax. 8,717
(12)(a) Except as set forth in division (I)(12)(d) of this 8,719
section, to the extent not included in computing the taxpayer's 8,720
federal taxable income before operating loss deduction and 8,721
special deductions, add gains and deduct losses from direct or 8,722
indirect sales, exchanges, or other dispositions, made by a 8,723
related entity who is not a taxpayer, of the taxpayer's indirect, 8,724
beneficial, or constructive investment in the stock or debt of 8,725
another entity, unless the gain or loss has been included in 8,726
computing the federal taxable income before operating loss 8,727
deduction and special deductions of another taxpayer with a more 8,728
closely related investment in the stock or debt of the other 8,729
entity. The amount of gain added or loss deducted shall not 8,730
exceed the product obtained by multiplying such gain or loss by 8,731
the taxpayer's proportionate share, directly, indirectly, 8,732
beneficially, or constructively, of the outstanding stock of the 8,733
related entity immediately prior to the direct or indirect sale, 8,734
exchange, or other disposition. 8,735
(b) Except as set forth in division (I)(12)(e) of this 8,737
section, to the extent not included in computing the taxpayer's 8,738
federal taxable income before operating loss deduction and 8,739
special deductions, add gains and deduct losses from direct or 8,740
indirect sales, exchanges, or other dispositions made by a 8,741
206
related entity who is not a taxpayer, of intangible property 8,742
other than stock, securities, and debt, if such property was 8,743
owned, or used in whole or in part, at any time prior to or at 8,744
the time of the sale, exchange, or disposition by either the 8,745
taxpayer or by a related entity that was a taxpayer at any time 8,746
during the related entity's ownership or use of such property, 8,747
unless the gain or loss has been included in computing the 8,748
federal taxable income before operating loss deduction and 8,749
special deductions of another taxpayer with a more closely 8,750
related ownership or use of such intangible property. The 8,751
amount of gain added or loss deducted shall not exceed the 8,752
product obtained by multiplying such gain or loss by the 8,753
taxpayer's proportionate share, directly, indirectly, 8,754
beneficially, or constructively, of the outstanding stock of the 8,755
related entity immediately prior to the direct or indirect sale, 8,756
exchange, or other disposition. 8,757
(c) As used in division (I)(12) of this section, "related 8,759
entity" means those entities described in divisions (I)(12)(c)(i) 8,760
to (iii) of this section: 8,761
(i) An individual stockholder, or a member of the 8,763
stockholder's family enumerated in section 318 of the Internal 8,764
Revenue Code, if the stockholder and the members of the 8,765
stockholder's family own, directly, indirectly, beneficially, or 8,766
constructively, in the aggregate, at least fifty per cent of the 8,767
value of the taxpayer's outstanding stock; 8,768
(ii) A stockholder, or a stockholder's partnership, 8,770
estate, trust, or corporation, if the stockholder and the 8,771
stockholder's partnerships, estates, trusts, and corporations own 8,772
directly, indirectly, beneficially, or constructively, in the 8,773
aggregate, at least fifty per cent of the value of the taxpayer's 8,774
outstanding stock; 8,775
(iii) A corporation, or a party related to the corporation 8,777
in a manner that would require an attribution of stock from the 8,778
corporation to the party or from the party to the corporation 8,779
207
under division (I)(12)(c)(iv) of this section, if the taxpayer 8,780
owns, directly, indirectly, beneficially, or constructively, at 8,781
least fifty per cent of the value of the corporation's 8,782
outstanding stock. 8,783
(iv) The attribution rules of section 318 of the Internal 8,785
Revenue Code apply for purposes of determining whether the 8,786
ownership requirements in divisions (I)(12)(c)(i) to (iii) of 8,787
this section have been met. 8,788
(d) For purposes of the adjustments required by division 8,790
(I)(12)(a) of this section, the term "investment in the stock or 8,791
debt of another entity" means only those investments where the 8,792
taxpayer and the taxpayer's related entities directly, 8,793
indirectly, beneficially, or constructively own, in the 8,794
aggregate, at any time during the twenty-four month period 8,795
commencing one year prior to the direct or indirect sale, 8,796
exchange, or other disposition of such investment at least fifty 8,797
per cent or more of the value of either the outstanding stock or 8,798
such debt of such other entity. 8,799
(e) For purposes of the adjustments required by division 8,801
(I)(12)(b) of this section, the term "related entity" excludes 8,802
all of the following: 8,803
(i) Foreign corporations as defined in section 7701 of the 8,805
Internal Revenue Code; 8,806
(ii) Foreign partnerships as defined in section 7701 of 8,808
the Internal Revenue Code; 8,809
(iii) Corporations, partnerships, estates, and trusts 8,811
created or organized in or under the laws of the Commonwealth of 8,812
Puerto Rico or any possession of the United States; 8,813
(iv) Foreign estates and foreign trusts as defined in 8,815
section 7701 of the Internal Revenue Code. 8,816
The exclusions described in divisions (I)(12)(e)(i) to (iv) 8,818
of this section do not apply if the corporation, partnership, 8,819
estate, or trust is described in any one of divisions (C)(1) to 8,820
(5) of section 5733.042 of the Revised Code. 8,821
208
(f) Nothing in division (I)(12) of this section shall 8,823
require or permit a taxpayer to add any gains or deduct any 8,824
losses described in divisions (I)(12)(f)(i) and (ii) of this 8,825
section: 8,826
(i) Gains or losses recognized for federal income tax 8,828
purposes by an individual, estate, or trust without regard to the 8,829
attribution rules described in division (I)(12)(c) of this 8,830
section, and; 8,831
(ii) A related entity's gains or losses described in 8,833
division (I)(12)(b) if the taxpayer's ownership of or use of such 8,834
intangible property was limited to a period not exceeding nine 8,835
months and was attributable to a transaction or a series of 8,836
transactions executed in accordance with the election or 8,837
elections made by the taxpayer or a related entity pursuant to 8,838
section 338 of the Internal Revenue Code. 8,839
(13) Any adjustment required by section 5733.042 of the 8,841
Revised Code. 8,842
(14) Add any amount claimed as a credit under section 8,845
5733.0611 of the Revised Code to the extent that such amount 8,848
satisfies either of the following:
(a) It was deducted or excluded from the computation of 8,850
the corporation's taxable income before operating loss deduction 8,852
and special deductions as required to be reported for the 8,853
corporation's taxable year under the Internal Revenue Code; 8,856
(b) It resulted in a reduction of the corporation's 8,858
taxable income before operating loss deduction and special 8,860
deductions as required to be reported for any of the 8,861
corporation's taxable years under the Internal Revenue Code. 8,864
(15) Deduct the amount contributed by the taxpayer to an 8,867
individual development account program established by a county 8,868
department of human services pursuant to sections 329.11 to 8,869
329.14 of the Revised Code for the purpose of matching funds 8,872
deposited by program participants. On request of the tax 8,873
commissioner, the taxpayer shall provide any information that, in 8,874
209
the tax commissioner's opinion, is necessary to establish the 8,875
amount deducted under division (I)(15) of this section. 8,876
(16) IN THE CASE OF AN ELECTRIC COMPANY THAT WAS SUBJECT 8,878
TO THE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE WITH 8,879
RESPECT TO ITS GROSS RECEIPTS RECEIVED DURING THE PERIOD OF MAY 8,881
1, 2000, THROUGH MAY 1, 2001, THE ALLOWANCE FOR DEPRECIATION AND 8,882
THE COMPUTATION OF GAIN OR LOSS ON THE SALE OR OTHER DISPOSITION 8,883
OF ALL ASSETS PLACED IN SERVICE PRIOR TO JANUARY 1, 2002, SHALL 8,884
BE MADE WITH REFERENCE TO THE OHIO TAX BASIS OF THOSE ASSETS IN 8,885
ACCORDANCE WITH RULES PRESCRIBED BY THE TAX COMMISSIONER. FOR 8,887
THE PURPOSE OF THIS DIVISION, THE "OHIO TAX BASIS" MEANS THE 8,888
ADJUSTED BOOK BASIS LESS THE ADJUSTED TAX BASIS OF THE ASSETS AS 8,889
RECORDED ON THE COMPANY'S BOOKS OF ACCOUNTS AS OF DECEMBER 31, 8,890
2001. THE OHIO TAX BASIS SHALL BE AMORTIZED OVER A PERIOD OF 8,891
FORTY YEARS AS FOLLOWS:
IN YEARS 1 TO 10 1% PER YEAR 8,894
IN YEARS 11 TO 20 2% PER YEAR 8,896
IN YEARS 21 TO 30 3% PER YEAR 8,898
IN YEARS 31 TO 40 4% PER YEAR 8,900
THE ADJUSTMENTS UNDER THIS SECTION SHALL CONTINUE TO APPLY 8,903
TO ASSETS TRANSFERRED UNDER A REORGANIZATION WITHIN THE MEANING 8,904
OF SECTION 368A OF THE INTERNAL REVENUE CODE, OR ON THE 8,907
ORGANIZATION OF A CORPORATION PRINCIPALLY IN CONSIDERATION FOR 8,908
THE ISSUANCE OF ITS STOCK. 8,909
(J) Any term used in this chapter has the same meaning as 8,911
when used in comparable context in the laws of the United States 8,912
relating to federal income taxes unless a different meaning is 8,913
clearly required. Any reference in this chapter to the Internal 8,914
Revenue Code includes other laws of the United States relating to 8,915
federal income taxes. 8,916
(K) "Financial institution" has the meaning given by 8,918
section 5725.01 of the Revised Code but does not include a 8,920
production credit association as described in 85 Stat. 597, 12 8,921
U.S.C.A. 2091. 8,923
210
(L)(1) A "qualifying holding company" is any corporation 8,926
satisfying all of the following requirements: 8,927
(a) Subject to divisions (L)(2) and (3) of this section, 8,930
the net book value of the corporation's intangible assets is 8,931
greater than or equal to ninety per cent of the net book value of 8,932
all of its assets and at least fifty per cent of the net book 8,933
value of all of its assets represents direct or indirect 8,934
investments in the equity of, loans and advances to, and accounts 8,936
receivable due from related members;
(b) At least ninety per cent of the corporation's gross 8,939
income for the taxable year is attributable to the following: 8,940
(i) The maintenance, management, ownership, acquisition, 8,942
use, and disposition of its intangible property, its aircraft the 8,944
use of which is not subject to regulation under 14 C.F.R. part 8,946
121 or part 135, and any real property described in division 8,947
(L)(2)(c) of this section; 8,949
(ii) The collection and distribution of income from such 8,952
property.
(c) The corporation is not a financial institution on the 8,955
last day of the taxable year ending prior to the first day of the 8,957
tax year;
(d) The corporation's related members make a good faith 8,960
and reasonable effort to make timely and fully the adjustments 8,961
required by division (C)(2) of section 5733.05 of the Revised 8,963
Code and to pay timely and fully all uncontested taxes, interest, 8,964
penalties, and other fees and charges imposed under this chapter; 8,965
(e) Subject to division (L)(4) of this section, the 8,968
corporation elects to be treated as a qualifying holding company 8,969
for the tax year. 8,970
A corporation otherwise satisfying divisions (L)(1)(a) to 8,974
(e) of this section that does not elect to be a qualifying 8,975
holding company is not a qualifying holding company for the 8,976
purposes of this chapter.
(2)(a)(i) For purposes of making the ninety per cent 8,979
211
computation under division (L)(1)(a) of this section, the net 8,982
book value of the corporation's assets shall not include the net 8,983
book value of aircraft or real property described in division 8,984
(L)(1)(b)(i) of this section. 8,986
(ii) For purposes of making the fifty per cent computation 8,989
under division (L)(1)(a) of this section, the net book value of 8,991
assets shall include the net book value of aircraft or real 8,992
property described in division (L)(1)(b)(i) of this section. 8,995
(b)(i) As used in division (L) of this section, 8,998
"intangible asset" includes, but is not limited to, the 8,999
corporation's direct interest in each pass-through entity only if 9,000
at all times during the corporation's taxable year ending prior 9,001
to the first day of the tax year the corporation's and the 9,002
corporation's related members' combined direct and indirect 9,003
interests in the capital or profits of such pass-through entity 9,004
do not exceed fifty per cent. If the corporation's interest in 9,005
the pass-through entity is an intangible asset for that taxable 9,006
year, then the distributive share of any income from the 9,007
pass-through entity shall be income from an intangible asset for 9,008
that taxable year.
(ii) If a corporation's and the corporation's related 9,011
members' combined direct and indirect interests in the capital or 9,012
profits of a pass-through entity exceed fifty per cent at any 9,013
time during the corporation's taxable year ending prior to the 9,014
first day of the tax year, "intangible asset" does not include 9,015
the corporation's direct interest in the pass-through entity, and 9,016
the corporation shall include in its assets its proportionate 9,017
share of the assets of any such pass-through entity and shall 9,018
include in its gross income its distributive share of the gross 9,019
income of such pass-through entity in the same form as was earned 9,020
by the pass-through entity. 9,021
(iii) A pass-through entity's direct or indirect 9,024
proportionate share of any other pass-through entity's assets 9,025
shall be included for the purpose of computing the corporation's 9,026
212
proportionate share of the pass-through entity's assets under 9,027
division (L)(2)(b)(ii) of this section, and such pass-through 9,029
entity's distributive share of any other pass-through entity's 9,030
gross income shall be included for purposes of computing the 9,031
corporation's distributive share of the pass-through entity's 9,032
gross income under division (L)(2)(b)(ii) of this section. 9,035
(c) For the purposes of divisions (L)(1)(b)(i), 9,038
(1)(b)(ii), (2)(a)(i), and (2)(a)(ii) of this section, real 9,041
property is described in division (L)(2)(c) of this section only 9,043
if all of the following conditions are present at all times 9,044
during the taxable year ending prior to the first day of the tax 9,045
year:
(i) The real property serves as the headquarters of the 9,048
corporation's trade or business, or is the place from which the 9,049
corporation's trade or business is principally managed or 9,050
directed;
(ii) Not more than ten per cent of the value of the real 9,053
property and not more than ten per cent of the square footage of 9,054
the building or buildings that are part of the real property is
used, made available, or occupied for the purpose of providing, 9,055
acquiring, transferring, selling, or disposing of tangible 9,057
property or services in the normal course of business to persons 9,058
other than related members, the corporation's employees and their 9,059
families, and such related members' employees and their families. 9,060
(d) As used in division (L) of this section, "related 9,062
member" has the same meaning as in division (A)(6) of section 9,065
5733.042 of the Revised Code without regard to division (B) of 9,068
that section.
(3) The percentages described in division (L)(1)(a) of 9,072
this section shall be equal to the quarterly average of those 9,073
percentages as calculated during the corporation's taxable year 9,074
ending prior to the first day of the tax year. 9,075
(4) With respect to the election described in division 9,077
(L)(1)(e) of this section: 9,079
213
(a) The election need not accompany a timely filed report; 9,082
(b) The election need not accompany the report; rather, 9,084
the election may accompany a subsequently filed but timely 9,085
application for refund and timely amended report, or a 9,087
subsequently filed but timely petition for reassessment; 9,088
(c) The election is not irrevocable; 9,091
(d) The election applies only to the tax year specified by 9,094
the corporation;
(e) The corporation's related members comply with division 9,096
(L)(1)(d) of this section. 9,097
Nothing in division (L)(4) of this section shall be 9,100
construed to extend any statute of limitations set forth in this 9,101
chapter. 9,102
(M) "Qualifying controlled group" means two or more 9,105
corporations that satisfy the ownership and control requirements 9,106
of division (A) of section 5733.052 of the Revised Code. 9,109
(N) "Limited liability company" means any limited 9,111
liability company formed under Chapter 1705. of the Revised Code 9,113
or under the laws of any other state.
(O) "Pass-through entity" means a corporation that has 9,116
made an election under subchapter S of Chapter 1 of Subtitle A of 9,118
the Internal Revenue Code for its taxable year under that code, 9,121
or a partnership, limited liability company, or any other person, 9,122
other than an individual, trust, or estate, if the partnership, 9,123
limited liability company, or other person is not classified for 9,124
federal income tax purposes as an association taxed as a 9,125
corporation. 9,126
(P) "ELECTRIC COMPANY" AND "COMBINED COMPANY" HAVE THE 9,128
SAME MEANINGS AS IN SECTION 5727.01 OF THE REVISED CODE. 9,130
Sec. 5733.05. As used in this section, "qualified 9,139
research" means laboratory research, experimental research, and 9,140
other similar types of research; research in developing or 9,141
improving a product; or research in developing or improving the 9,142
means of producing a product. It does not include market 9,143
214
research, consumer surveys, efficiency surveys, management 9,144
studies, ordinary testing or inspection of materials or products 9,145
for quality control, historical research, or literary research. 9,146
"Product" as used in this paragraph does not include services or 9,147
intangible property. 9,148
The annual report determines the value of the issued and 9,151
outstanding shares of stock of the taxpayer, which under division 9,152
(A) or divisions (B) and (C) of this section is the base or 9,153
measure of the franchise tax liability. Such determination shall 9,154
be made as of the date shown by the report to have been the 9,155
beginning of the corporation's annual accounting period that 9,156
includes the first day of January of the tax year. For the 9,157
purposes of this chapter, the value of the issued and outstanding 9,159
shares of stock of any corporation that is a financial 9,161
institution shall be deemed to be the value as calculated in 9,163
accordance with division (A) of this section. For the purposes 9,165
of this chapter, the value of the issued and outstanding shares 9,166
of stock of any corporation that is not a financial institution 9,167
shall be deemed to be the values as calculated in accordance with 9,168
divisions (B) and (C) of this section. 9,169
(A) The total value, as shown by the books of the 9,171
financial institution, of its capital, surplus, whether earned or 9,173
unearned, undivided profits, and reserves shall be determined as 9,175
prescribed by section 5733.056 of the Revised Code for tax years 9,176
1998 and thereafter. 9,177
(B) The sum of the corporation's net income during the 9,179
corporation's taxable year, allocated or apportioned to this 9,181
state as prescribed in divisions (B)(1) and (2) of this section, 9,183
and subject to sections 5733.052, 5733.053, 5733.057, and 9,184
5733.058 of the Revised Code:
(1) The net income allocated to this state as provided by 9,186
section 5733.051 of the Revised Code. 9,187
(2) The amount of Ohio apportioned net income from sources 9,189
other than those allocated under section 5733.051 of the Revised 9,190
215
Code, which shall be determined by multiplying the corporation's 9,191
net income by a fraction. The numerator of the fraction is the 9,193
sum of the following products: the property factor multiplied by 9,196
twenty, the payroll factor multiplied by twenty, and the sales 9,197
factor multiplied by sixty. The denominator of the fraction is 9,199
one hundred, provided that the denominator shall be reduced by 9,201
twenty if the property factor has a denominator of zero, by 9,203
twenty if the payroll factor has a denominator of zero, and by 9,204
sixty if the sales factor has a denominator of zero.
The property, payroll, and sales factors shall be 9,206
determined as follows:
(a) The property factor is a fraction the numerator of 9,208
which is the average value of the corporation's real and tangible 9,209
personal property owned or rented, and used in the trade or 9,210
business in this state during the taxable year, and the 9,211
denominator of which is the average value of all the 9,212
corporation's real and tangible personal property owned or 9,213
rented, and used in the trade or business everywhere during such 9,214
year. There shall be excluded from the numerator and denominator 9,215
of the property factor the original cost of all of the following 9,216
property within Ohio: property with respect to which a 9,217
"pollution control facility" certificate has been issued pursuant 9,218
to section 5709.21 of the Revised Code; property with respect to 9,219
which an "industrial water pollution control certificate" has 9,220
been issued pursuant to section 6111.31 of the Revised Code; and 9,221
property used exclusively during the taxable year for qualified 9,222
research. 9,223
(i) Property owned by the corporation is valued at its 9,225
original cost. Property rented by the corporation is valued at 9,226
eight times the net annual rental rate. "Net annual rental rate" 9,227
means the annual rental rate paid by the corporation less any 9,228
annual rental rate received by the corporation from subrentals. 9,229
(ii) The average value of property shall be determined by 9,231
averaging the values at the beginning and the end of the taxable 9,232
216
year, but the tax commissioner may require the averaging of 9,233
monthly values during the taxable year, if reasonably required to 9,234
reflect properly the average value of the corporation's property. 9,235
(b) The payroll factor is a fraction the numerator of 9,237
which is the total amount paid in this state during the taxable 9,238
year by the corporation for compensation, and the denominator of 9,239
which is the total compensation paid everywhere by the 9,240
corporation during such year. There shall be excluded from the 9,241
numerator and the denominator of the payroll factor the total 9,242
compensation paid in this state to employees who are primarily 9,243
engaged in qualified research. 9,244
(i) Compensation means any form of remuneration paid to an 9,246
employee for personal services. 9,247
(ii) Compensation is paid in this state if: (1) the 9,249
recipient's service is performed entirely within this state, (2) 9,250
the recipient's service is performed both within and without this 9,251
state, but the service performed without this state is incidental 9,252
to the recipient's service within this state, (3) some of the 9,253
service is performed within this state and either the base of 9,254
operations, or if there is no base of operations, the place from 9,255
which the service is directed or controlled is within this state, 9,256
or the base of operations or the place from which the service is 9,257
directed or controlled is not in any state in which some part of 9,258
the service is performed, but the recipient's residence is in 9,259
this state. 9,260
(iii) Compensation is paid in this state to any employee 9,262
of a common or contract motor carrier corporation, who performs 9,263
the employee's regularly assigned duties on a motor vehicle in 9,265
more than one state, in the same ratio by which the mileage 9,266
traveled by such employee within the state bears to the total 9,267
mileage traveled by such employee everywhere during the taxable 9,268
year.
(c) The sales factor is a fraction the numerator of which 9,270
is the total sales in this state by the corporation during the 9,271
217
taxable year, and the denominator of which is the total sales by 9,272
the corporation everywhere during such year. In determining the 9,273
numerator and denominator of the sales factor, receipts from the 9,274
sale or other disposal of a capital asset or an asset described 9,275
in section 1231 of the Internal Revenue Code shall be eliminated. 9,276
Also, in determining the numerator and denominator of the sales 9,277
factor, in the case of a reporting corporation owning at least 9,278
eighty per cent of the issued and outstanding common stock of one 9,279
or more public utilities or insurance companies OR PUBLIC 9,280
UTILITIES, EXCEPT AN ELECTRIC COMPANY, or owning at least 9,283
twenty-five per cent of the issued and outstanding common stock 9,284
of one or more financial institutions, receipts received by the 9,285
reporting corporation from such utilities, insurance companies, 9,286
and financial institutions shall be eliminated.
For the purpose of this section and section 5733.03 of the 9,288
Revised Code, sales of tangible personal property are in this 9,289
state where such property is received in this state by the 9,290
purchaser. In the case of delivery of tangible personal property 9,291
by common carrier or by other means of transportation, the place 9,292
at which such property is ultimately received after all 9,293
transportation has been completed shall be considered as the 9,294
place at which such property is received by the purchaser. 9,295
Direct delivery in this state, other than for purposes of 9,296
transportation, to a person or firm designated by a purchaser 9,297
constitutes delivery to the purchaser in this state, and direct 9,298
delivery outside this state to a person or firm designated by a 9,299
purchaser does not constitute delivery to the purchaser in this 9,300
state, regardless of where title passes or other conditions of 9,301
sale. 9,302
FOR THE PURPOSES OF THIS SECTION AND SECTION 5733.03 OF THE 9,304
REVISED CODE, SALES OF ELECTRICITY AND THE TRANSMISSION AND 9,306
DISTRIBUTION OF ELECTRICITY BY AN ELECTRIC COMPANY SHALL BE 9,307
TREATED AS A SALE OF A SERVICE AND NOT AS A SALE OF TANGIBLE 9,309
PERSONAL PROPERTY.
218
Sales, other than sales of tangible personal property, are 9,311
in this state if either: 9,312
(i) The income-producing activity is performed solely in 9,314
this state; 9,315
(ii) The income-producing activity is performed both 9,317
within and without this state and a greater proportion of the 9,318
income-producing activity is performed within this state than in 9,320
any other state, based on costs of performance. 9,321
(d) If the allocation and apportionment provisions of 9,323
division (B) of this section do not fairly represent the extent 9,325
of the taxpayer's business activity in this state, the taxpayer 9,326
may request, which request must be in writing and must accompany 9,327
the report, timely filed petition for reassessment, or timely 9,328
filed amended report, or the tax commissioner may require, in 9,329
respect to all or any part of the taxpayer's allocated or 9,330
apportioned base, if reasonable, any one or more of the 9,331
following:
(i) Separate accounting; 9,333
(ii) The exclusion of any one or more of the factors; 9,335
(iii) The inclusion of one or more additional factors 9,337
which THAT will fairly represent the taxpayer's allocated or 9,338
apportioned base in this state. 9,339
An alternative method will be effective only with approval 9,341
by the tax commissioner. 9,342
Nothing in this section shall be construed to extend any 9,344
statute of limitations set forth in this chapter. 9,345
(C)(1) Subject to divisions (C)(2) and (3) of this 9,348
section, the total value, as shown on the books of each
corporation that is not a qualified holding company, of the net 9,349
book value of a corporation's assets less the net carrying value 9,351
of its liabilities. For the purposes of determining that total 9,352
value, any reserves shown on the corporation's books shall be 9,353
considered liabilities or contra assets, except for any reserves 9,354
that are deemed appropriations of retained earnings under 9,355
219
generally accepted accounting principles. 9,356
(2)(a) If, on the last day of the taxpayer's taxable year 9,359
preceding the tax year, the taxpayer is a related member to a 9,360
corporation that elects to be a qualifying holding company for 9,361
the tax year beginning after the last day of the taxpayer's 9,362
taxable year, or if, on the last day of the taxpayer's taxable 9,363
year preceding the tax year, a corporation that elects to be a 9,364
qualifying holding company for the tax year beginning after the 9,365
last day of the taxpayer's taxable year is a related member to 9,366
the taxpayer, then the taxpayer's total value shall be adjusted 9,367
by the qualifying amount. Except as otherwise provided under 9,368
division (C)(2)(b) of this section, "qualifying amount" means the 9,369
amount that, when added to the taxpayer's total value, and when 9,371
subtracted from the net carrying value of the taxpayer's 9,372
liabilities computed without regard to division (C)(2) of this 9,374
section, or when subtracted from the taxpayer's total value and 9,376
when added to the net carrying value of the taxpayer's 9,377
liabilities computed without regard to division (C)(2) of this 9,379
section, results in the taxpayer's debt-to-equity ratio equaling 9,380
the debt-to-equity ratio of the qualifying controlled group on 9,381
the last day of the taxable year ending prior to the first day of 9,382
the tax year computed on a consolidated basis in accordance with 9,384
general accepted accounting principles. For the purposes of 9,385
division (C)(2)(a) of this section, the corporation's total 9,386
value, after the adjustment required by that division, shall not 9,387
exceed the net book value of the corporation's assets. 9,388
(b)(i) The amount added to the taxpayer's total value and 9,391
subtracted from the net carrying value of the taxpayer's 9,392
liabilities shall not exceed the amount of the net carrying value 9,393
of the taxpayer's liabilities owed to the taxpayer's related 9,395
members.
(ii) A liability owed to the taxpayer's related members 9,397
includes, but is not limited to, any amount that the corporation 9,399
owes to a person that is not a related member if the 9,400
220
corporation's related member or related members in whole or in 9,401
part guarantee any portion or all of that amount, or pledge, 9,402
hypothecate, mortgage, or carry out any similar transactions to 9,403
secure any portion or all of that amount. 9,404
(3) The base upon which the tax is levied under division 9,406
(C) of section 5733.06 of the Revised Code shall be computed by 9,408
multiplying the amount determined under divisions (C)(1) and (2) 9,410
of this section by the fraction determined under divisions 9,411
(B)(2)(a) to (c) of this section and, if applicable, divisions 9,414
(B)(2)(d)(ii) to (iv) of this section but without regard to 9,416
section 5733.052 of the Revised Code. 9,417
(4) For purposes of division (C) of this section, "related 9,421
member" has the same meaning as in division (A)(6) of section 9,422
5733.042 of the Revised Code without regard to division (B) of 9,423
that section.
Sec. 5733.06. The tax hereby charged each corporation 9,432
subject to this chapter shall be the GREATER OF THE sum of 9,433
divisions (A) and (B) of this section, AFTER THE REDUCTION, IF 9,434
ANY, PROVIDED BY DIVISION (J) OF THIS SECTION, or division (C) of 9,436
this section, whichever is greater AFTER THE REDUCTION, IF ANY, 9,437
PROVIDED BY DIVISION (J) OF THIS SECTION, except that the tax 9,439
hereby charged each financial institution subject to this chapter 9,440
shall be the amount computed under division (D) of this section: 9,441
(A) Except as set forth in division (F) of this section, 9,443
five and one-tenth per cent upon the first fifty thousand dollars 9,444
of the value of the taxpayer's issued and outstanding shares of 9,445
stock as determined under division (B) of section 5733.05 of the 9,446
Revised Code; 9,447
(B) Except as set forth in division (F) of this section, 9,449
eight and one-half per cent upon the value so determined in 9,451
excess of fifty thousand dollars; or 9,452
(C) Except as otherwise provided under division (G) of 9,455
this section, four mills times that portion of the value of the 9,456
issued and outstanding shares of stock as determined under
221
division (C) of section 5733.05 of the Revised Code. For the 9,457
purposes of division (C) of this section, division (C)(2) of 9,459
section 5733.065, and division (C) of section 5733.066 of the
Revised Code, the value of the issued and outstanding shares of 9,460
stock of a qualified holding company is zero. 9,461
(D) The tax charged each financial institution subject to 9,463
this chapter shall be that portion of the value of the issued and 9,464
outstanding shares of stock as determined under division (A) of 9,465
section 5733.05 of the Revised Code, multiplied by the following 9,467
amounts:
(1) For tax years prior to the 1999 tax year, fifteen 9,469
mills; 9,470
(2) For the 1999 tax year, fourteen mills; 9,472
(3) For tax year 2000 and thereafter, thirteen mills. 9,474
(E) No tax shall be charged from any corporation which 9,476
THAT has been adjudicated bankrupt, or for which a receiver has 9,477
been appointed, or which THAT has made a general assignment for 9,478
the benefit of creditors, except for the portion of the then 9,480
current tax year during which the tax commissioner finds such 9,481
corporation had the power to exercise its corporate franchise 9,482
unimpaired by such proceedings or act. The minimum payment for 9,483
all corporations shall be fifty dollars. 9,484
The tax charged to corporations under this chapter for the 9,486
privilege of engaging in business in this state, which is an 9,487
excise tax levied on the value of the issued and outstanding 9,488
shares of stock, shall in no manner be construed as prohibiting 9,489
or otherwise limiting the powers of municipal corporations, joint 9,490
economic development zones created under section 715.691 of the 9,491
Revised Code, and joint economic development districts created 9,492
under section 715.70 or 715.71 or sections 715.72 to 715.81 of 9,493
the Revised Code in this state to impose an income tax on the 9,494
income of such corporations.
(F) If two or more taxpayers satisfy the ownership or 9,496
control requirements of division (A) of section 5733.052 of the 9,497
222
Revised Code, each such taxpayer shall substitute "the taxpayer's 9,498
pro-rata amount" for "fifty thousand dollars" in divisions (A) 9,499
and (B) of this section. For purposes of this division, "the
taxpayer's pro-rata amount" is an amount that, when added to the 9,500
other such taxpayers' pro-rata amounts, does not exceed fifty 9,501
thousand dollars. For the purpose of making that computation, 9,502
the taxpayer's pro-rata amount shall not be less than zero. 9,503
Nothing in this division derogates from or eliminates the
requirement to make the alternative computation of tax under 9,504
division (C) of this section. 9,505
(G) The tax liability of any corporation under division 9,507
(C) of this section shall not exceed one hundred fifty thousand 9,508
dollars.
(H)(1) For the purposes of division (H) of this section, 9,510
"exiting corporation" means a corporation that satisfies all of 9,511
the following conditions: 9,512
(a) The corporation had nexus with or in this state under 9,514
the Constitution of the United States during any portion of a 9,515
calendar year;
(b) The corporation was not a taxpayer on the first day of 9,517
January immediately following that calendar year; 9,518
(c) The corporation was not a financial institution on the 9,520
first day of January immediately following that calendar year; 9,521
(d) The corporation was not a transferor as defined in 9,523
section 5733.053 of the Revised Code during any portion of that 9,524
calendar year;
(e) During any portion of that calendar year, or any 9,526
portion of the immediately preceding calendar year, the 9,527
corporation had net income that was not included in a report 9,528
filed pursuant to section 5733.02, 5733.021, 5733.03, or 5733.031 9,529
of the Revised Code;
(f) The corporation would have been subject to the tax 9,531
computed under divisions (A), (B), (C), (F), and (G) of this 9,532
section if the corporation is assumed to have had nexus with or 9,533
223
in this state under the Constitution of the United States on the 9,534
first day of January immediately following the calendar year 9,535
referred to in division (H)(1)(a) of this section.
(2) For the purposes of division (H) of this section, 9,537
"unreported net income" means net income that was not previously 9,538
included in a report filed pursuant to section 5733.02, 5733.021, 9,539
5733.03, or 5733.031 of the Revised Code and that was realized or 9,540
recognized during the calendar year referred to in division 9,541
(H)(1) of this section or the immediately preceding calendar
year.
(3) Each exiting corporation shall pay a tax computed by 9,543
first allocating and apportioning the unreported net income 9,544
pursuant to division (B) of section 5733.05 and sections SECTION 9,545
5733.051 and, if applicable, section 5733.052 of the Revised 9,547
Code. The exiting corporation then shall compute the tax due on
its unreported net income allocated and apportioned to this state 9,548
by applying divisions (A), (B), and (F) of this section to that 9,549
income.
(4) Divisions (C) and (G) of this section, division (D)(2) 9,551
of section 5733.065, and division (C) of section 5733.066 of the 9,552
Revised Code do not apply to an exiting corporation, but exiting 9,553
corporations are subject to every other provision of this 9,554
chapter.
(5) Notwithstanding sections 5733.02, 5733.021, and 9,556
5733.03 of the Revised Code to the contrary, each exiting 9,557
corporation shall report and pay the tax due under division (H) 9,558
of this section on or before the thirty-first day of May 9,559
immediately following the calendar year referred to in division 9,560
(H)(1)(a) of this section. The exiting corporation shall file
that report on the form most recently prescribed by the tax 9,561
commissioner for the purposes of complying with sections 5733.02 9,562
and 5733.03 of the Revised Code. Upon request by the 9,563
corporation, the tax commissioner may extend the date for filing 9,564
the report.
224
(6) The tax commissioner may adopt rules governing 9,566
division (H) of this section. 9,567
(I) Any reference in the Revised Code to "the tax imposed 9,569
by section 5733.06 of the Revised Code" or "the tax due under 9,570
section 5733.06 of the Revised Code" includes the taxes imposed 9,571
under sections 5733.065 and 5733.066 of the Revised Code. 9,572
(J)(1) DIVISION (J) OF THIS SECTION APPLIES SOLELY TO A 9,575
COMBINED COMPANY. SECTION 5733.057 OF THE REVISED CODE SHALL 9,576
APPLY WHEN CALCULATING THE ADJUSTMENTS REQUIRED BY DIVISION (J) 9,578
OF THIS SECTION. 9,579
(2) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 9,583
TAX CALCULATED IN DIVISIONS (A) AND (B) OF THIS SECTION SHALL BE 9,584
REDUCED BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY A 9,586
FRACTION, THE NUMERATOR OF WHICH IS THE TOTAL TAXABLE GROSS 9,587
RECEIPTS ATTRIBUTED TO PROVIDING PUBLIC UTILITY ACTIVITY OTHER 9,588
THAN AS AN ELECTRIC COMPANY UNDER SECTION 5727.03 OF THE REVISED 9,589
CODE FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE 9,590
MEASURED IMMEDIATELY PRECEDING THE TAX YEAR, AND THE DENOMINATOR
OF WHICH IS THE TOTAL GROSS RECEIPTS FROM ALL SOURCES FOR THE 9,591
YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 9,592
IMMEDIATELY PRECEDING THE TAX YEAR. NOTHING HEREIN SHALL BE 9,593
CONSTRUED TO EXCLUDE FROM THE DENOMINATOR ANY ITEM OF INCOME 9,594
DESCRIBED IN SECTION 5733.051 OF THE REVISED CODE. 9,597
(3) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 9,601
TAX CALCULATED IN DIVISION (C) OF THIS SECTION SHALL BE REDUCED 9,603
BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY THE FRACTION 9,604
DESCRIBED IN DIVISION (J)(2) OF THIS SECTION. 9,606
(4) IN NO EVENT SHALL THE REDUCTION PROVIDED BY DIVISION 9,610
(J)(2) OR (J)(3) OF THIS SECTION EXCEED THE AMOUNT OF THE EXCISE 9,613
TAX PAID IN ACCORDANCE WITH SECTION 5727.38 OF THE REVISED CODE, 9,616
FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 9,617
IMMEDIATELY PRECEDING THE TAX YEAR. 9,618
Sec. 5733.09. (A) An incorporated company, whether 9,627
foreign or domestic, owning and operating a public utility in 9,628
225
this state, and as such required by law to file reports with the 9,629
tax commissioner and to pay an excise tax upon its gross 9,630
receipts, and insurance, fraternal, beneficial, bond investment, 9,631
and other corporations required by law to file annual reports 9,632
with the superintendent of insurance and dealers in intangibles, 9,633
the shares of which ARE, or the capital or ownership in capital 9,634
employed by such dealer is, subject to the taxes imposed by 9,635
section 5707.03 of the Revised Code, shall not be subject to this 9,636
chapter, except for sections 5733.031, 5733.042, 5733.05, 9,637
5733.052, 5733.053, 5733.069, 5733.0611, 5733.40, 5733.41, and 9,638
sections 5747.40 to 5747.453 of the Revised Code. AN ELECTRIC 9,639
COMPANY SUBJECT TO THE FILING REQUIREMENTS OF SECTION 5727.08 OF 9,640
THE REVISED CODE OR OTHERWISE HAVING NEXUS WITH OR IN THIS STATE 9,642
UNDER THE CONSTITUTION OF THE UNITED STATES, OR ANY OTHER 9,647
CORPORATION HAVING ANY GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO 9,648
PROVIDING PUBLIC UTILITY SERVICE AS AN ELECTRIC COMPANY OR HAVING 9,649
ANY PROPERTY DIRECTLY ATTRIBUTABLE TO PROVIDING PUBLIC UTILITY 9,650
SERVICE AS AN ELECTRIC COMPANY, IS SUBJECT TO THIS CHAPTER. 9,651
(B) A corporation that has made an election under 9,653
subchapter S, chapter one, subtitle A, of the Internal Revenue 9,654
Code for its taxable year under such code is exempt from the tax 9,655
imposed by section 5733.06 of the Revised Code that is based on 9,656
that taxable year. 9,657
A corporation that makes such an election shall file a 9,659
notice of such election with the tax commissioner between the 9,660
first day of January and the thirty-first day of March of each 9,661
tax year that the election is in effect. 9,662
(C) An entity defined to be a "real estate investment 9,664
trust" by section 856 of the Internal Revenue Code, a "regulated 9,665
investment company" by section 851 of the Internal Revenue Code, 9,666
or a "real estate mortgage investment conduit" by section 860D of 9,667
the Internal Revenue Code, is exempt from taxation for a tax year 9,668
as a corporation under this chapter and is exempt from taxation 9,669
for a return year as a dealer in intangibles under Chapter 5725. 9,670
226
of the Revised Code if it provides the report required by this 9,671
division. By the last day of March of the tax or return year the 9,672
entity shall submit to the tax commissioner the name of the 9,673
entity with a list of the names, addresses, and social security 9,674
or federal identification numbers of all investors, shareholders, 9,675
and other similar investors who owned any interest or invested in 9,676
the entity during the preceding calendar year. The commissioner 9,677
may extend the date by which the report must be submitted for 9,678
reasonable cause shown by the entity. The commissioner may 9,679
prescribe the form of the report required for exemption under 9,680
this division. 9,681
(D)(1) As used in this division: 9,683
(a) "Commercial printer" means a person primarily engaged 9,686
in the business of commercial printing. However, "commercial 9,687
printer" does not include a person primarily engaged in the 9,688
business of providing duplicating services using photocopy 9,689
machines or other xerographic processes. 9,690
(b) "Commercial printing" means printing by one or more 9,693
common processes such as letterpress, lithography, gravure, 9,694
screen, or digital imaging, and includes related activities such 9,695
as binding, platemaking, prepress operation, cartographic 9,696
composition, and typesetting.
(c) "Contract for printing" means an oral or written 9,699
agreement for the purchase of printed materials produced by a 9,700
commercial printer.
(d) "Intangible property located at the premises of a 9,703
commercial printer" means intangible property of any kind owned 9,704
or licensed by a customer of the commercial printer and furnished 9,705
to the commercial printer for use in commercial printing. 9,706
(e) "Printed material" means any tangible personal 9,709
property produced or processed by a commercial printer pursuant 9,710
to a contract for printing.
(f) "Related member" has the same meaning as in division 9,713
(A)(6) of section 5733.042 of the Revised Code without regard to 9,714
227
division (B) of that section. 9,716
(2) Except as provided in divisions (D)(3) and (4) of this 9,718
section, a corporation not otherwise subject to the tax imposed 9,719
by section 5733.06 of the Revised Code for a tax year does not 9,720
become subject to that tax for the tax year solely by reason of 9,722
any one or more of the following occurring in this state during 9,723
the taxable year that ends immediately prior to the tax year: 9,724
(a) Ownership by the corporation or a related member of 9,727
the corporation of tangible personal property or intangible 9,728
property located during all or any portion of the taxable year or 9,729
on the first day of the tax year at the premises of a commercial 9,730
printer with which the corporation or the corporation's related 9,731
member has a contract for printing with respect to such property 9,732
or the premises of a commercial printer's related member with 9,733
which the corporation or the corporation's related member has a 9,734
contract for printing with respect to such property; 9,735
(b) Sales by the corporation or a related member of the 9,738
corporation of property produced at and shipped or distributed 9,739
from the premises of a commercial printer with which the 9,740
corporation or the corporation's related member has a contract 9,741
for printing with respect to such property or the premises of a 9,742
commercial printer's related member with which the corporation or 9,743
the corporation's related member has a contract for printing with 9,744
respect to such property;
(c) Activities of employees, officers, agents, or 9,747
contractors of the corporation or a related member of the 9,748
corporation on the premises of a commercial printer with which 9,749
the corporation or the corporation's related member has a 9,750
contract for printing or the premises of a commercial printer's 9,751
related member with which the corporation or the corporation's 9,752
related member has a contract for printing, where the activities 9,753
are directly and solely related to quality control, distribution, 9,754
or printing services, or any combination thereof, performed by or 9,755
at the direction of the commercial printer or the commercial 9,756
228
printer's related member.
(3) The exemption under this division does not apply for a 9,758
taxable year to any corporation having on the first day of 9,759
January of the tax year or at any time during the taxable year 9,761
ending immediately preceding the first day of January of the tax 9,763
year a related member which, on the first day of January of the 9,764
tax year or during any portion of such taxable year of the 9,765
corporation, has nexus in or with this state under the 9,766
Constitution of the United States or holds a certificate of 9,768
compliance with the laws of this state authorizing it to do 9,769
business in this state.
(4) With respect to allowing the exemption under this 9,771
division, the tax commissioner shall be guided by the doctrines 9,772
of "economic reality," "sham transaction," "step transaction," 9,773
and "substance over form." A corporation shall bear the burden 9,774
of establishing by a preponderance of the evidence that any 9,775
transaction giving rise to an exemption claimed under this 9,776
division did not have as a principal purpose the avoidance of any 9,778
portion of the tax imposed by section 5733.06 of the Revised
Code.
Application of the doctrines listed in division (D)(4) of 9,781
this section is not limited to this division. 9,782
Sec. 5733.39. (A) AS USED IN THIS SECTION: 9,785
(1) "COMPLIANCE FACILITY" MEANS PROPERTY THAT IS DESIGNED, 9,787
CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC 9,788
GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING WITH 9,790
PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE 9,792
"CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 9,793
7651, AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN 9,794
COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE 9,795
REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER 9,796
THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS 9,797
ARE EMITTED INTO THE ATMOSPHERE. "COMPLIANCE FACILITY" ALSO 9,798
INCLUDES ANY OF THE FOLLOWING: 9,799
229
(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL 9,801
BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE 9,802
PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL 9,803
PROCESSED BY THE COMPLIANCE FACILITY IS BURNED; 9,804
(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY 9,806
WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT 9,807
ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, 9,808
AND OPERATION, OF THE COMPLIANCE FACILITY; 9,809
(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 9,811
3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES 9,812
PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION 9,813
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 9,814
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF 9,815
WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME 9,816
PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT 9,817
PRODUCES THE WASTES DISPOSED OF AT THE FACILITY; 9,818
(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, 9,820
OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING 9,821
FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS 9,822
PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION 9,823
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 9,824
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED; 9,825
(e) A FLUE GAS DESULFURIZATION SYSTEM THAT IS CONNECTED TO 9,828
A COAL-FIRED ELECTRIC GENERATING UNIT AND THAT EITHER WAS PLACED 9,829
IN SERVICE PRIOR TO JULY 10, 1991, OR CONSTRUCTION OF WHICH WAS 9,830
COMMENCED PRIOR TO THAT DATE;
(f) FACILITIES OR EQUIPMENT ACQUIRED, CONSTRUCTED, OR 9,833
INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING UNIT
PRIMARILY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS PRODUCED BY 9,834
A COMPLIANCE FACILITY OR OTHER COAL COMBUSTION BYPRODUCTS 9,835
PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE COMPLIANCE 9,836
FACILITY IS INCORPORATED OR CONNECTED. 9,837
(2) "OHIO COAL" HAS THE SAME MEANING AS IN SECTION 4913.01 9,840
OF THE REVISED CODE. 9,841
230
(3) "SALE AND LEASEBACK TRANSACTION" HAS THE SAME MEANING 9,843
AS IN SECTION 5727.01 OF THE REVISED CODE. 9,846
(B) BEGINNING IN TAX YEAR 2002, AN ELECTRIC COMPANY SHALL 9,849
BE ALLOWED A NONREFUNDABLE CREDIT AGAINST THE TAX IMPOSED BY 9,850
SECTION 5733.06 OF THE REVISED CODE FOR OHIO COAL USED IN ANY OF 9,853
ITS COAL-FIRED ELECTRIC GENERATING UNITS AFTER APRIL 30, 2001. 9,854
SECTION 5733.057 OF THE REVISED CODE SHALL APPLY WHEN CALCULATING 9,858
THE CREDIT ALLOWED BY THIS SECTION. THE CREDIT SHALL BE CLAIMED 9,859
AT THE RATE OF ONE DOLLAR PER TON OF OHIO COAL BURNED IN A 9,860
COAL-FIRED ELECTRIC GENERATING UNIT DURING THE TAXABLE YEAR 9,861
ENDING IMMEDIATELY PRECEDING THE TAX YEAR. THE CREDIT IS ALLOWED 9,863
ONLY IF ALL OF THE FOLLOWING CONDITIONS ARE MET DURING SUCH 9,864
TAXABLE YEAR:
(1) THE COAL-FIRED ELECTRIC GENERATING UNIT IS OWNED AND 9,866
USED BY THE COMPANY CLAIMING THE CREDIT OR LEASED AND USED BY 9,867
THAT COMPANY UNDER A SALE AND LEASEBACK TRANSACTION. 9,868
(2) A COMPLIANCE FACILITY IS ATTACHED TO, INCORPORATED IN, 9,871
OR USED IN CONJUNCTION WITH THE COAL-FIRED GENERATING UNIT. 9,872
(3) EITHER OF THE FOLLOWING APPLIES: 9,874
(a) IN THE CASE OF A COAL-FIRED ELECTRIC GENERATING UNIT 9,877
THAT BURNS COAL IN COMBINATION WITH ANOTHER FUEL FOR THE PURPOSE 9,878
OF COMPLYING WITH PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER 9,881
TITLE IV OF THE "CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 9,887
2584, 42 U.S.C.A. 7651, AT LEAST EIGHTY PER CENT OF THE HEAT 9,889
INPUT DURING THE TAXABLE YEAR IS FROM OHIO COAL. 9,891
(b) IN THE CASE OF ANY OTHER COAL-FIRED ELECTRIC 9,893
GENERATING UNIT, AT LEAST NINETY PER CENT OF THE HEAT INPUT 9,894
DURING THE TAXABLE YEAR IS FROM OHIO COAL. 9,896
(C) THE CREDIT SHALL BE CLAIMED IN THE ORDER REQUIRED 9,899
UNDER SECTION 5733.98 OF THE REVISED CODE. IF THE CREDIT EXCEEDS 9,901
THE TAX IMPOSED BY SECTION 5733.06 OF THE REVISED CODE AFTER ALL 9,904
OTHER NONREFUNDABLE CREDITS FOR THE TAX YEAR AS SET FORTH IN 9,905
SECTION 5733.98 OF THE REVISED CODE, THE EXCESS SHALL NOT BE 9,907
ALLOWED AS A CREDIT EITHER AGAINST THE TAXES DUE FOR ANY OTHER 9,908
231
YEAR OR AGAINST ANY OTHER TAX OR FEE. NOTHING HEREIN SHALL BE 9,909
CONSTRUED TO PROVIDE FOR CARRYOVER OR CARRYBACK OF ANY UNUSED 9,911
CREDIT PROVIDED BY ANY OTHER SECTION OF THE REVISED CODE OR FOR 9,913
THE APPLICATION OF ANY UNUSED CREDIT PROVIDED BY ANY OTHER 9,914
SECTION OF THE REVISED CODE AGAINST ANY OTHER TAX OR FEE IF SUCH 9,917
SECTION DOES NOT EXPRESSLY PROVIDE EITHER FOR A CARRYOVER OR 9,918
CARRYBACK OF ANY UNUSED CREDIT OR FOR THE APPLICATION OF AN 9,919
UNUSED CREDIT AGAINST ANY OTHER TAX OR FEE. 9,920
(D) THE SUM OF THE CREDITS ALLOWED FOR ALL YEARS UNDER 9,923
SECTION 5727.391 OF THE REVISED CODE FOR COAL BURNED IN EACH 9,925
COAL-FIRED ELECTRIC GENERATING UNIT AND THE SUM OF THE CREDITS 9,926
ALLOWED FOR ALL TAX YEARS UNDER THIS SECTION SHALL NOT EXCEED 9,927
TWENTY PER CENT OF THE COST OF THE COMPLIANCE FACILITY ATTACHED 9,928
TO, INCORPORATED IN, OR USED IN CONJUNCTION WITH THE UNIT. IF A 9,929
COMPLIANCE FACILITY IS USED IN CONJUNCTION WITH MORE THAN ONE 9,930
GENERATING UNIT, THE TAX COMMISSIONER SHALL PRORATE ITS COST 9,931
AMONG THE UNITS. 9,932
(E) THE DIRECTOR OF ENVIRONMENTAL PROTECTION, UPON THE 9,935
REQUEST OF THE TAX COMMISSIONER, SHALL CERTIFY WHETHER A FACILITY 9,936
IS A COMPLIANCE FACILITY. IN THE CASE OF A COMPLIANCE FACILITY 9,937
OWNED BY AN ELECTRIC COMPANY, THE PUBLIC UTILITIES COMMISSION 9,938
SHALL CERTIFY TO THE TAX COMMISSIONER THE COST OF THE FACILITY AS 9,939
OF THE DATE IT WAS PLACED IN SERVICE. IN THE CASE OF A 9,940
COMPLIANCE FACILITY OWNED BY A PERSON OTHER THAN AN ELECTRIC 9,941
COMPANY, THE TAX COMMISSIONER SHALL DETERMINE THE COST OF THE 9,942
FACILITY AS OF THE DATE IT WAS PLACED IN SERVICE. IF THE OWNER 9,943
OF SUCH A FACILITY FAILS TO FURNISH THE INFORMATION NECESSARY TO 9,944
MAKE THAT DETERMINATION, NO CREDIT SHALL BE ALLOWED. 9,945
Sec. 5733.98. (A) To provide a uniform procedure for 9,954
calculating the amount of tax imposed by section 5733.06 of the 9,955
Revised Code that is due under this chapter, a taxpayer shall 9,957
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised 9,958
Code:
232
(1) The credit for taxes paid by a qualifying pass-through 9,960
entity allowed under section 5733.0611 of the Revised Code; 9,961
(2) The credit for qualifying affiliated groups under 9,963
section 5733.068 of the Revised Code; 9,964
(3) The subsidiary corporation credit under section 9,966
5733.067 of the Revised Code; 9,967
(4) The savings and loan assessment credit under section 9,969
5733.063 of the Revised Code; 9,970
(5) The credit for recycling and litter prevention 9,972
donations under section 5733.064 of the Revised Code; 9,974
(6) The credit for employers that enter into agreements 9,977
with child day-care centers under section 5733.36 of the Revised 9,978
Code;
(7) The credit for employers that reimburse employee child 9,980
day-care expenses under section 5733.38 of the Revised Code; 9,982
(8) The credit for manufacturing investments under section 9,984
5733.061 of the Revised Code; 9,985
(9) The credit for purchases of new manufacturing 9,987
machinery and equipment under section 5733.31 or section 5733.311 9,988
of the Revised Code; 9,989
(10) The second credit for purchases of new manufacturing 9,992
machinery and equipment under section 5733.33 of the Revised 9,993
Code;
(11) The enterprise zone credit under section 5709.66 of 9,995
the Revised Code; 9,996
(12) The credit for the eligible costs associated with a 9,998
voluntary action under section 5733.34 of the Revised Code; 10,000
(13) The credit for employers that establish on-site child 10,003
day-care under section 5733.37 of the Revised Code; 10,004
(14) The credit for purchases of qualifying grape 10,006
production property under section 5733.32 of the Revised Code; 10,007
(15) The export sales credit under section 5733.069 of the 10,010
Revised Code;
(16) The credit for research and development and 10,012
233
technology transfer investors under section 5733.35 of the 10,013
Revised Code;
(17) The enterprise zone credits under section 5709.65 of 10,016
the Revised Code;
(18) THE CREDIT FOR USING OHIO COAL UNDER SECTION 5733.39 10,018
OF THE REVISED CODE;
(19) The refundable jobs creation credit under section 10,020
5733.0610 of the Revised Code. 10,021
(B) For any credit except the refundable jobs creation 10,023
credit, the amount of the credit for a tax year shall not exceed 10,024
the tax due after allowing for any other credit that precedes it 10,025
in the order required under this section. Any excess amount of a 10,026
particular credit may be carried forward if authorized under the 10,027
section creating that credit. 10,028
Sec. 5739.011. (A) As used in this section: 10,037
(1) "Manufacturer" means a person who is engaged in 10,039
manufacturing, processing, assembling, or refining a product for 10,040
sale. 10,041
(2) "Manufacturing facility" means a single location where 10,043
a manufacturing operation is conducted, including locations 10,044
consisting of one or more buildings or structures in a contiguous 10,045
area owned or controlled by the manufacturer. 10,046
(3) "Materials handling" means the movement of the product 10,048
being or to be manufactured, during which movement the product is 10,049
not undergoing any substantial change or alteration in its state 10,050
or form. 10,051
(4) "Testing" means a process or procedure to identify the 10,053
properties or assure the quality of a material or product. 10,054
(5) "Completed product" means a manufactured item that is 10,056
in the form and condition as it will be sold by the manufacturer. 10,057
An item is completed when all processes that change or alter its 10,058
state or form or enhance its value are finished, even though the 10,059
item subsequently will be tested to ensure its quality or be 10,060
packaged for storage or shipment. 10,061
234
(6) "Continuous manufacturing operation" means the process 10,063
in which raw materials or components are moved through the steps 10,064
whereby manufacturing occurs. Materials handling of raw 10,065
materials or parts from the point of receipt or pre-production 10,066
PREPRODUCTION storage or of a completed product, to or from 10,067
storage, to or from packaging, or to the place from which the 10,069
completed product will be shipped, is not a part of a continuous 10,070
manufacturing operation. 10,071
(B) For purposes of division (E)(9) of section 5739.01 of 10,073
the Revised Code, the "thing transferred" includes, but is not 10,074
limited to, any of the following: 10,075
(1) Production machinery and equipment that act upon the 10,077
product or machinery and equipment that treat the materials or 10,078
parts in preparation for the manufacturing operation; 10,079
(2) Materials handling equipment that moves the product 10,081
through a continuous manufacturing operation; equipment that 10,082
temporarily stores the product during the manufacturing 10,083
operation; or, excluding motor vehicles licensed to operate on 10,084
public highways, equipment used in intraplant or interplant 10,085
transfers of work in process where the plant or plants between 10,086
which such transfers occur are manufacturing facilities operated 10,087
by the same person; 10,088
(3) Catalysts, solvents, water, acids, oil, and similar 10,090
consumables that interact with the product and that are an 10,091
integral part of the manufacturing operation; 10,092
(4) Machinery, equipment, and other tangible personal 10,094
property used during the manufacturing operation that control, 10,095
physically support, produce power for, lubricate, or are 10,096
otherwise necessary for the functioning of production machinery 10,097
and equipment and the continuation of the manufacturing 10,098
operation; 10,099
(5) Machinery, equipment, fuel, power, material, parts, 10,101
and other tangible personal property used to manufacture 10,102
machinery, equipment, or other tangible personal property used in 10,103
235
manufacturing a product for sale; 10,104
(6) Machinery, equipment, and other tangible personal 10,106
property used by a manufacturer to test raw materials, the 10,107
product being manufactured, or the completed product; 10,108
(7) Machinery and equipment used to handle or temporarily 10,110
store scrap that is intended to be reused in the manufacturing 10,111
operation at the same manufacturing facility; 10,112
(8) Electricity, coke COKE, gas, water, steam, and similar 10,114
substances used in the manufacturing operation; machinery and 10,115
equipment used for, and fuel consumed in, producing or extracting 10,116
those substances; and machinery, equipment, and other tangible 10,117
personal property used to treat, filter, pump, alter voltage, or 10,118
otherwise make the substance suitable for use in the 10,119
manufacturing operation; AND MACHINERY AND EQUIPMENT USED TO 10,120
PRODUCE ELECTRICITY FOR USE IN THE MANUFACTURING OPERATION; 10,121
(9) Machinery, equipment, and other tangible personal 10,123
property used to transport or transmit electricity, coke, gas, 10,124
water, steam, or similar substances used in the manufacturing 10,125
operation from the point of generation, if produced by the 10,126
manufacturer, or from the point where the substance enters the 10,127
manufacturing facility, if purchased by the manufacturer, to the 10,128
manufacturing operation; 10,129
(10) Machinery, equipment, and other tangible personal 10,131
property that treats, filters, cools, refines, or otherwise 10,132
renders water, steam, acid, oil, solvents, or similar substances 10,133
used in the manufacturing operation reusable, provided that the 10,134
substances are intended for reuse and not for disposal, sale, or 10,135
transportation from the manufacturing facility; 10,136
(11) Parts, components, and repair and installation 10,138
services for items described in division (B) of this section. 10,139
(C) For purposes of division (E)(9) of section 5739.01 of 10,141
the Revised Code, the "thing transferred" does not include any of 10,142
the following: 10,143
(1) Tangible personal property used in administrative, 10,145
236
personnel, security, inventory control, record-keeping, ordering, 10,146
billing, or similar functions; 10,147
(2) Tangible personal property used in storing raw 10,149
materials or parts prior to the commencement of the manufacturing 10,150
operation or used to handle or store a completed product, 10,151
including storage that actively maintains a completed product in 10,152
a marketable state or form; 10,153
(3) Tangible personal property used to handle or store 10,155
scrap or waste intended for disposal, sale, or other disposition, 10,156
other than reuse in the manufacturing operation at the same 10,157
manufacturing facility; 10,158
(4) Tangible personal property that is or is to be 10,160
incorporated into realty; 10,161
(5) Machinery, equipment, and other tangible personal 10,163
property used for ventilation, dust, or gas collection, humidity 10,164
or temperature regulation, or similar environmental control, 10,165
except machinery, equipment, and other tangible personal property 10,166
that totally regulates the environment in a special and limited 10,167
area of the manufacturing facility where the regulation is 10,168
essential for production to occur; 10,169
(6) Tangible personal property used for the protection and 10,171
safety of workers, unless the property is attached to or 10,172
incorporated into machinery and equipment used in a continuous 10,173
manufacturing operation; 10,174
(7) Tangible personal property used to store fuel, water, 10,176
solvents, acid, oil, or similar items consumed in the 10,177
manufacturing operation; 10,178
(8) Machinery, equipment, and other tangible personal 10,180
property used for research and development; 10,181
(9) Machinery, equipment, and other tangible personal 10,183
property used to clean, repair, or maintain real or personal 10,184
property in the manufacturing facility; 10,185
(10) Motor vehicles registered for operation on the public 10,187
highways. 10,188
237
(D) For purposes of division (E)(9) of section 5739.01 of 10,190
the Revised Code, if the "thing transferred" is a machine used by 10,191
a manufacturer in both a taxable and an exempt manner, it shall 10,192
be totally taxable or totally exempt from taxation based upon its 10,193
quantified primary use. If the "things transferred" are 10,194
fungibles, they shall be taxed based upon the proportion of the 10,195
fungibles used in a taxable manner. 10,196
Sec. 5739.02. For the purpose of providing revenue with 10,205
which to meet the needs of the state, for the use of the general 10,206
revenue fund of the state, for the purpose of securing a thorough 10,207
and efficient system of common schools throughout the state, for 10,208
the purpose of affording revenues, in addition to those from 10,209
general property taxes, permitted under constitutional 10,210
limitations, and from other sources, for the support of local 10,211
governmental functions, and for the purpose of reimbursing the 10,212
state for the expense of administering this chapter, an excise 10,213
tax is hereby levied on each retail sale made in this state. 10,214
(A) The tax shall be collected pursuant to the schedules 10,216
in section 5739.025 of the Revised Code. 10,217
The tax applies and is collectible when the sale is made, 10,219
regardless of the time when the price is paid or delivered. 10,220
In the case of a sale, the price of which consists in whole 10,222
or in part of rentals for the use of the thing transferred, the 10,223
tax, as regards such rentals, shall be measured by the 10,224
installments thereof. 10,225
In the case of a sale of a service defined under division 10,227
(MM) or (NN) of section 5739.01 of the Revised Code, the price of 10,228
which consists in whole or in part of a membership for the 10,229
receipt of the benefit of the service, the tax applicable to the 10,230
sale shall be measured by the installments thereof. 10,231
(B) The tax does not apply to the following: 10,233
(1) Sales to the state or any of its political 10,235
subdivisions, or to any other state or its political subdivisions 10,236
if the laws of that state exempt from taxation sales made to this 10,237
238
state and its political subdivisions; 10,238
(2) Sales of food for human consumption off the premises 10,240
where sold; 10,241
(3) Sales of food sold to students only in a cafeteria, 10,243
dormitory, fraternity, or sorority maintained in a private, 10,244
public, or parochial school, college, or university; 10,245
(4) Sales of newspapers, and of magazine subscriptions 10,247
shipped by second class mail, and sales or transfers of magazines 10,248
distributed as controlled circulation publications; 10,249
(5) The furnishing, preparing, or serving of meals without 10,251
charge by an employer to an employee provided the employer 10,252
records the meals as part compensation for services performed or 10,253
work done; 10,254
(6) Sales of motor fuel upon receipt, use, distribution, 10,257
or sale of which in this state a tax is imposed by the law of 10,258
this state, but this exemption shall not apply to the sale of 10,259
motor fuel on which a refund of the tax is allowable under 10,260
section 5735.14 of the Revised Code; and the tax commissioner may 10,261
deduct the amount of tax levied by this section applicable to the 10,262
price of motor fuel when granting a refund of motor fuel tax 10,263
pursuant to section 5735.14 of the Revised Code and shall cause 10,264
the amount deducted to be paid into the general revenue fund of 10,265
this state;
(7) Sales of natural gas by a natural gas company, of 10,267
electricity by an electric company, of water by a water-works 10,268
company, or of steam by a heating company, if in each case the 10,269
thing sold is delivered to consumers through wires, pipes, or 10,270
conduits, and all sales of communications services by a telephone 10,271
or telegraph company, all terms as defined in section 5727.01 of 10,272
the Revised Code; 10,273
(8) Casual sales by a person, or auctioneer employed 10,275
directly by the person to conduct such sales, except as to such 10,277
sales of motor vehicles, watercraft or outboard motors required 10,278
to be titled under section 1548.06 of the Revised Code, 10,279
239
watercraft documented with the United States coast guard, 10,280
snowmobiles, and all-purpose vehicles as defined in section 10,281
4519.01 of the Revised Code; 10,282
(9) Sales of services or tangible personal property, other 10,284
than motor vehicles, mobile homes, and manufactured homes, by 10,286
churches or by nonprofit organizations operated exclusively for 10,287
charitable purposes as defined in division (B)(12) of this 10,288
section, provided that the number of days on which such tangible 10,289
personal property or services, other than items never subject to 10,290
the tax, are sold does not exceed six in any calendar year. If 10,291
the number of days on which such sales are made exceeds six in 10,292
any calendar year, the church or organization shall be considered 10,293
to be engaged in business and all subsequent sales by it shall be 10,294
subject to the tax. In counting the number of days, all sales by 10,295
groups within a church or within an organization shall be 10,296
considered to be sales of that church or organization, except 10,297
that sales made by separate student clubs and other groups of 10,298
students of a primary or secondary school, and sales made by a 10,299
parent-teacher association, booster group, or similar 10,300
organization that raises money to support or fund curricular or 10,301
extracurricular activities of a primary or secondary school, 10,302
shall not be considered to be sales of such school, and sales by 10,303
each such club, group, association, or organization shall be 10,304
counted separately for purposes of the six-day limitation. This 10,305
division does not apply to sales by a noncommercial educational 10,306
radio or television broadcasting station. 10,307
(10) Sales not within the taxing power of this state under 10,309
the Constitution of the United States; 10,310
(11) The transportation of persons or property, unless the 10,312
transportation is by a private investigation and security 10,313
service; 10,314
(12) Sales of tangible personal property or services to 10,316
churches, to organizations exempt from taxation under section 10,317
501(c)(3) of the Internal Revenue Code of 1986, and to any other 10,318
240
nonprofit organizations operated exclusively for charitable 10,319
purposes in this state, no part of the net income of which inures 10,320
to the benefit of any private shareholder or individual, and no 10,321
substantial part of the activities of which consists of carrying 10,322
on propaganda or otherwise attempting to influence legislation; 10,323
sales to offices administering one or more homes for the aged or 10,324
one or more hospital facilities exempt under section 140.08 of 10,325
the Revised Code; and sales to organizations described in 10,326
division (D) of section 5709.12 of the Revised Code. 10,327
"Charitable purposes" means the relief of poverty; the 10,329
improvement of health through the alleviation of illness, 10,330
disease, or injury; the operation of an organization exclusively 10,332
for the provision of professional, laundry, printing, and 10,333
purchasing services to hospitals or charitable institutions; the 10,335
operation of a home for the aged, as defined in section 5701.13 10,336
of the Revised Code; the operation of a radio or television 10,337
broadcasting station that is licensed by the federal 10,338
communications commission as a noncommercial educational radio or 10,339
television station; the operation of a nonprofit animal adoption 10,341
service or a county humane society; the promotion of education by 10,342
an institution of learning that maintains a faculty of qualified 10,343
instructors, teaches regular continuous courses of study, and
confers a recognized diploma upon completion of a specific 10,344
curriculum; the operation of a parent-teacher association, 10,345
booster group, or similar organization primarily engaged in the 10,346
promotion and support of the curricular or extracurricular 10,347
activities of a primary or secondary school; the operation of a 10,348
community or area center in which presentations in music, 10,349
dramatics, the arts, and related fields are made in order to 10,350
foster public interest and education therein; the production of 10,351
performances in music, dramatics, and the arts; or the promotion 10,353
of education by an organization engaged in carrying on research
in, or the dissemination of, scientific and technological 10,354
knowledge and information primarily for the public. 10,355
241
Nothing in this division shall be deemed to exempt sales to 10,357
any organization for use in the operation or carrying on of a 10,358
trade or business, or sales to a home for the aged for use in the 10,359
operation of independent living facilities as defined in division 10,360
(A) of section 5709.12 of the Revised Code. 10,361
(13) Building and construction materials and services sold 10,363
to construction contractors for incorporation into a structure or 10,364
improvement to real property under a construction contract with 10,365
this state or a political subdivision thereof, or with the United 10,366
States government or any of its agencies; building and 10,367
construction materials and services sold to construction 10,368
contractors for incorporation into a structure or improvement to 10,369
real property that are accepted for ownership by this state or 10,371
any of its political subdivisions, or by the United States 10,372
government or any of its agencies at the time of completion of 10,373
such structures or improvements; building and construction 10,374
materials sold to construction contractors for incorporation into 10,375
a horticulture structure or livestock structure for a person 10,376
engaged in the business of horticulture or producing livestock; 10,377
building materials and services sold to a construction contractor 10,378
for incorporation into a house of public worship or religious 10,379
education, or a building used exclusively for charitable purposes 10,380
under a construction contract with an organization whose purpose 10,381
is as described in division (B)(12) of this section; building and 10,382
construction materials sold for incorporation into the original 10,383
construction of a sports facility under section 307.696 of the 10,384
Revised Code; and building and construction materials and 10,385
services sold to a construction contractor for incorporation into 10,386
real property outside this state if such materials and services, 10,387
when sold to a construction contractor in the state in which the 10,388
real property is located for incorporation into real property in 10,389
that state, would be exempt from a tax on sales levied by that 10,390
state; 10,391
(14) Sales of ships or vessels or rail rolling stock used 10,393
242
or to be used principally in interstate or foreign commerce, and 10,394
repairs, alterations, fuel, and lubricants for such ships or 10,395
vessels or rail rolling stock; 10,396
(15) Sales to persons engaged in any of the activities 10,398
mentioned in division (E)(2) or (9) of section 5739.01 of the 10,399
Revised Code, to persons engaged in making retail sales, or to 10,400
persons who purchase for sale from a manufacturer tangible 10,401
personal property that was produced by the manufacturer in 10,402
accordance with specific designs provided by the purchaser, of 10,403
packages, including material and parts for packages, and of 10,404
machinery, equipment, and material for use primarily in packaging 10,405
tangible personal property produced for sale by or on the order 10,406
of the person doing the packaging, or sold at retail. "Packages" 10,407
includes bags, baskets, cartons, crates, boxes, cans, bottles, 10,408
bindings, wrappings, and other similar devices and containers, 10,409
and "packaging" means placing therein. 10,410
(16) Sales of food to persons using food stamp coupons to 10,412
purchase the food. As used in division (B)(16) of this section, 10,413
"food" has the same meaning as in the "Food Stamp Act of 1977," 10,414
91 Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations 10,415
adopted pursuant to that act. 10,416
(17) Sales to persons engaged in farming, agriculture, 10,418
horticulture, or floriculture, of tangible personal property for 10,419
use or consumption directly in the production by farming, 10,420
agriculture, horticulture, or floriculture of other tangible 10,421
personal property for use or consumption directly in the 10,422
production of tangible personal property for sale by farming, 10,423
agriculture, horticulture, or floriculture; or material and parts 10,424
for incorporation into any such tangible personal property for 10,425
use or consumption in production; and of tangible personal 10,426
property for such use or consumption in the conditioning or 10,427
holding of products produced by and for such use, consumption, or 10,428
sale by persons engaged in farming, agriculture, horticulture, or 10,429
floriculture, except where such property is incorporated into 10,430
243
real property; 10,431
(18) Sales of drugs dispensed by a licensed pharmacist 10,434
upon the order of a licensed health professional authorized to 10,436
prescribe drugs to a human being, as the term "licensed health
professional authorized to prescribe drugs" is defined in section 10,437
4729.01 of the Revised Code; insulin as recognized in the 10,439
official United States pharmacopoeia; urine and blood testing 10,440
materials when used by diabetics or persons with hypoglycemia to 10,441
test for glucose or acetone; hypodermic syringes and needles when 10,442
used by diabetics for insulin injections; epoetin alfa when 10,443
purchased for use in the treatment of persons with end-stage 10,444
renal disease; hospital beds when purchased for use by persons 10,446
with medical problems for medical purposes; and oxygen and 10,447
oxygen-dispensing equipment when purchased for use by persons 10,448
with medical problems for medical purposes;
(19) Sales of artificial limbs or portion thereof, breast 10,450
prostheses, and other prosthetic devices for humans; braces or 10,451
other devices for supporting weakened or nonfunctioning parts of 10,452
the human body; wheelchairs; devices used to lift wheelchairs 10,453
into motor vehicles and parts and accessories to such devices; 10,454
crutches or other devices to aid human perambulation; and items 10,455
of tangible personal property used to supplement impaired 10,456
functions of the human body such as respiration, hearing, or 10,457
elimination. No exemption under this division shall be allowed 10,458
for nonprescription drugs, medicines, or remedies; items or 10,459
devices used to supplement vision; items or devices whose 10,460
function is solely or primarily cosmetic; or physical fitness 10,461
equipment. This division does not apply to sales to a physician 10,462
or medical facility for use in the treatment of a patient. 10,463
(20) Sales of emergency and fire protection vehicles and 10,465
equipment to nonprofit organizations for use solely in providing 10,466
fire protection and emergency services for political subdivisions 10,467
of the state; 10,468
(21) Sales of tangible personal property manufactured in 10,470
244
this state, if sold by the manufacturer in this state to a 10,471
retailer for use in the retail business of the retailer outside 10,472
of this state and if possession is taken from the manufacturer by 10,474
the purchaser within this state for the sole purpose of 10,475
immediately removing the same from this state in a vehicle owned 10,476
by the purchaser;
(22) Sales of services provided by the state or any of its 10,478
political subdivisions, agencies, instrumentalities, 10,479
institutions, or authorities, or by governmental entities of the 10,480
state or any of its political subdivisions, agencies, 10,481
instrumentalities, institutions, or authorities; 10,482
(23) Sales of motor vehicles to nonresidents of this state 10,484
upon the presentation of an affidavit executed in this state by 10,485
the nonresident purchaser affirming that the purchaser is a 10,486
nonresident of this state, that possession of the motor vehicle 10,487
is taken in this state for the sole purpose of immediately 10,488
removing it from this state, that the motor vehicle will be 10,489
permanently titled and registered in another state, and that the 10,490
motor vehicle will not be used in this state; 10,491
(24) Sales to persons engaged in the preparation of eggs 10,493
for sale of tangible personal property used or consumed directly 10,494
in such preparation, including such tangible personal property 10,495
used for cleaning, sanitizing, preserving, grading, sorting, and 10,496
classifying by size; packages, including material and parts for 10,497
packages, and machinery, equipment, and material for use in 10,498
packaging eggs for sale; and handling and transportation 10,499
equipment and parts therefor, except motor vehicles licensed to 10,500
operate on public highways, used in intraplant or interplant 10,501
transfers or shipment of eggs in the process of preparation for 10,502
sale, when the plant or plants within or between which such 10,503
transfers or shipments occur are operated by the same person. 10,504
"Packages" includes containers, cases, baskets, flats, fillers, 10,505
filler flats, cartons, closure materials, labels, and labeling 10,506
materials, and "packaging" means placing therein. 10,507
245
(25)(a) Sales of water to a consumer for residential use, 10,509
except the sale of bottled water, distilled water, mineral water, 10,510
carbonated water, or ice; 10,511
(b) Sales of water by a nonprofit corporation engaged 10,513
exclusively in the treatment, distribution, and sale of water to 10,514
consumers, if such water is delivered to consumers through pipes 10,515
or tubing. 10,516
(26) Fees charged for inspection or reinspection of motor 10,518
vehicles under section 3704.14 of the Revised Code; 10,519
(27) Sales of solar, wind, or hydrothermal energy systems 10,521
that meet the guidelines established under division (B) of 10,522
section 1551.20 of the Revised Code, components of such systems 10,523
that are identified under division (B) or (D) of that section, or 10,524
charges for the installation of such systems or components, made 10,525
during the period from August 14, 1979, through December 31, 10,526
1985; 10,527
(28) Sales to persons licensed to conduct a food service 10,529
operation pursuant to section 3732.03 of the Revised Code, of 10,530
tangible personal property primarily used directly for the 10,531
following:
(a) To prepare food for human consumption for sale; 10,533
(b) To preserve food that has been or will be prepared for 10,536
human consumption for sale by the food service operator, not
including tangible personal property used to display food for 10,537
selection by the consumer; 10,538
(c) To clean tangible personal property used to prepare or 10,540
serve food for human consumption for sale. 10,541
(29) Sales of animals by nonprofit animal adoption 10,543
services or county humane societies; 10,544
(30) Sales of services to a corporation described in 10,546
division (A) of section 5709.72 of the Revised Code, and sales of 10,547
tangible personal property that qualifies for exemption from 10,548
taxation under section 5709.72 of the Revised Code; 10,549
(31) Sales and installation of agricultural land tile, as 10,551
246
defined in division (B)(5)(a) of section 5739.01 of the Revised 10,552
Code; 10,553
(32) Sales and erection or installation of portable grain 10,555
bins, as defined in division (B)(5)(b) of section 5739.01 of the 10,556
Revised Code; 10,557
(33) The sale, lease, repair, and maintenance of;, parts 10,559
for;, or items attached to or incorporated in, motor vehicles 10,561
that are primarily used for transporting tangible personal 10,563
property by a person engaged in highway transportation for hire; 10,564
(34) Sales to the state headquarters of any veterans' 10,566
organization in Ohio that is either incorporated and issued a 10,567
charter by the congress of the United States or is recognized by 10,568
the United States veterans administration, for use by the 10,569
headquarters; 10,570
(35) Sales to a telecommunications service vendor of 10,572
tangible personal property and services used directly and 10,573
primarily in transmitting, receiving, switching, or recording any 10,574
interactive, two-way electromagnetic communications, including 10,575
voice, image, data, and information, through the use of any 10,576
medium, including, but not limited to, poles, wires, cables, 10,577
switching equipment, computers, and record storage devices and 10,578
media, and component parts for the tangible personal property. 10,579
The exemption provided in division (B)(35) of this section shall 10,580
be in lieu of all other exceptions under division (E)(2) of 10,581
section 5739.01 of the Revised Code to which a telecommunications 10,582
service vendor may otherwise be entitled based upon the use of 10,583
the thing purchased in providing the telecommunications service. 10,584
(36) Sales of investment metal bullion and investment 10,586
coins. "Investment metal bullion" means any elementary precious 10,587
metal that has been put through a process of smelting or 10,588
refining, including, but not limited to, gold, silver, platinum, 10,589
and palladium, and which is in such state or condition that its 10,590
value depends upon its content and not upon its form. 10,591
"Investment metal bullion" does not include fabricated precious 10,592
247
metal that has been processed or manufactured for one or more 10,594
specific and customary industrial, professional, or artistic 10,595
uses. "Investment coins" means numismatic coins or other forms 10,596
of money and legal tender manufactured of gold, silver, platinum, 10,597
palladium, or other metal under the laws of the United States or 10,598
any foreign nation with a fair market value greater than any 10,599
statutory or nominal value of such coins. 10,600
(37)(a) Sales where the purpose of the consumer is to use 10,602
or consume the things transferred in making retail sales and 10,603
consisting of newspaper inserts, catalogues, coupons, flyers, 10,604
gift certificates, or other advertising material that prices and 10,606
describes tangible personal property offered for retail sale. 10,607
(b) Sales to direct marketing vendors of preliminary 10,609
materials such as photographs, artwork, and typesetting that will 10,610
be used in printing advertising material; of printed matter that 10,611
offers free merchandise or chances to win sweepstake prizes and 10,612
that is mailed to potential customers with advertising material 10,613
described in division (B)(37)(a) of this section; and of 10,614
equipment such as telephones, computers, facsimile machines, and 10,615
similar tangible personal property primarily used to accept 10,616
orders for direct marketing retail sales. 10,617
(c) Sales of automatic food vending machines that preserve 10,619
food with a shelf life of forty-five days or less by 10,620
refrigeration and dispense it to the consumer. 10,621
For purposes of division (B)(37) of this section, "direct 10,623
marketing" means the method of selling where consumers order 10,624
tangible personal property by United States mail, delivery 10,625
service, or telecommunication and the vendor delivers or ships 10,626
the tangible personal property sold to the consumer from a 10,627
warehouse, catalogue distribution center, or similar fulfillment 10,628
facility by means of the United States mail, delivery service, or 10,629
common carrier. 10,630
(38) Sales to a person engaged in the business of 10,632
horticulture or producing livestock of materials to be 10,633
248
incorporated into a horticulture structure or livestock 10,634
structure; 10,635
(39) The sale of a motor vehicle that is used exclusively 10,637
for a vanpool ridesharing arrangement to persons participating in 10,638
the vanpool ridesharing arrangement when the vendor is selling 10,639
the vehicle pursuant to a contract between the vendor and the 10,640
department of transportation;
(40) Sales of personal computers, computer monitors, 10,642
computer keyboards, modems, and other peripheral computer 10,643
equipment to an individual who is licensed or certified to teach 10,644
in an elementary or a secondary school in this state for use by 10,645
that individual in preparation for teaching elementary or
secondary school students; 10,646
(41) Sales to a professional racing team of any of the 10,648
following: 10,649
(a) Motor racing vehicles; 10,651
(b) Repair services for motor racing vehicles; 10,654
(c) Items of property that are attached to or incorporated 10,657
in motor racing vehicles, including engines, chassis, and all 10,658
other components of the vehicles, and all spare, replacement, and 10,659
rebuilt parts or components of the vehicles; except not including 10,660
tires, consumable fluids, paint, and accessories consisting of 10,661
instrumentation sensors and related items added to the vehicle to 10,662
collect and transmit data by means of telemetry and other forms 10,663
of communication.
(42) Sales of used manufactured homes and used mobile 10,665
homes, as defined in section 5739.0210 of the Revised Code, made 10,666
on or after January 1, 2000; 10,667
(43) SALES OF TANGIBLE PERSONAL PROPERTY AND SERVICES TO A 10,669
PROVIDER OF ELECTRICITY USED OR CONSUMED DIRECTLY AND PRIMARILY 10,670
IN GENERATING, TRANSMITTING, OR DISTRIBUTING ELECTRICITY FOR USE 10,671
BY OTHERS, INCLUDING PROPERTY THAT IS OR IS TO BE INCORPORATED 10,672
INTO AND WILL BECOME A PART OF THE CONSUMER'S PRODUCTION, 10,673
TRANSMISSION, OR DISTRIBUTION SYSTEM AND THAT RETAINS ITS 10,674
249
CLASSIFICATION AS TANGIBLE PERSONAL PROPERTY AFTER INCORPORATION; 10,675
FUEL OR POWER USED IN THE PRODUCTION, TRANSMISSION, OR 10,676
DISTRIBUTION OF ELECTRICITY; AND TANGIBLE PERSONAL PROPERTY AND 10,677
SERVICES USED IN THE REPAIR AND MAINTENANCE OF THE PRODUCTION, 10,678
TRANSMISSION, OR DISTRIBUTION SYSTEM, INCLUDING ONLY THOSE MOTOR 10,679
VEHICLES AS ARE SPECIALLY DESIGNED AND EQUIPPED FOR SUCH USE. 10,680
THE EXEMPTION PROVIDED IN THIS DIVISION SHALL BE IN LIEU OF ALL 10,681
OTHER EXCEPTIONS IN DIVISION (E)(2) OF SECTION 5739.01 OF THE 10,682
REVISED CODE TO WHICH A PROVIDER OF ELECTRICITY MAY OTHERWISE BE 10,684
ENTITLED BASED ON THE USE OF THE TANGIBLE PERSONAL PROPERTY OR 10,685
SERVICE PURCHASED IN GENERATING, TRANSMITTING, OR DISTRIBUTING 10,686
ELECTRICITY.
For the purpose of the proper administration of this 10,688
chapter, and to prevent the evasion of the tax, it is presumed 10,689
that all sales made in this state are subject to the tax until 10,690
the contrary is established. 10,691
As used in this section, except in division (B)(16) of this 10,693
section, "food" includes cereals and cereal products, milk and 10,694
milk products including ice cream, meat and meat products, fish 10,695
and fish products, eggs and egg products, vegetables and 10,696
vegetable products, fruits, fruit products, and pure fruit 10,697
juices, condiments, sugar and sugar products, coffee and coffee 10,698
substitutes, tea, and cocoa and cocoa products. It does not 10,699
include: spirituous or malt liquors; soft drinks; sodas and 10,700
beverages that are ordinarily dispensed at bars and soda 10,701
fountains or in connection therewith, other than coffee, tea, and 10,702
cocoa; root beer and root beer extracts; malt and malt extracts; 10,703
mineral oils, cod liver oils, and halibut liver oil; medicines, 10,704
including tonics, vitamin preparations, and other products sold 10,705
primarily for their medicinal properties; and water, including 10,706
mineral, bottled, and carbonated waters, and ice. 10,707
(C) The levy of an excise tax on transactions by which 10,709
lodging by a hotel is or is to be furnished to transient guests 10,710
pursuant to this section and division (B) of section 5739.01 of 10,711
250
the Revised Code does not prevent any of the following: 10,712
(1) A municipal corporation or township from levying an 10,714
excise tax for any lawful purpose not to exceed three per cent on 10,715
transactions by which lodging by a hotel is or is to be furnished 10,716
to transient guests in addition to the tax levied by this 10,717
section. If a municipal corporation or township repeals a tax 10,718
imposed under division (C)(1) of this section and a county in 10,719
which the municipal corporation or township has territory has a 10,720
tax imposed under division (C) of section 5739.024 of the Revised 10,721
Code in effect, the municipal corporation or township may not 10,722
reimpose its tax as long as that county tax remains in effect. A 10,723
municipal corporation or township in which a tax is levied under 10,724
division (B)(2) of section 351.021 of the Revised Code may not 10,725
increase the rate of its tax levied under division (C)(1) of this 10,726
section to any rate that would cause the total taxes levied under 10,727
both of those divisions to exceed three per cent on any lodging 10,728
transaction within the municipal corporation or township. 10,729
(2) A municipal corporation or a township from levying an 10,731
additional excise tax not to exceed three per cent on such 10,732
transactions pursuant to division (B) of section 5739.024 of the 10,733
Revised Code. Such tax is in addition to any tax imposed under 10,734
division (C)(1) of this section. 10,735
(3) A county from levying an excise tax pursuant to 10,737
division (A) of section 5739.024 of the Revised Code. 10,738
(4) A county from levying an excise tax not to exceed 10,740
three per cent of such transactions pursuant to division (C) of 10,741
section 5739.024 of the Revised Code. Such a tax is in addition 10,742
to any tax imposed under division (C)(3) of this section. 10,743
(5) A convention facilities authority, as defined in 10,745
division (A) of section 351.01 of the Revised Code, from levying 10,746
the excise taxes provided for in division (B) of section 351.021 10,747
of the Revised Code. 10,748
(6) A county from levying an excise tax not to exceed one 10,750
and one-half per cent of such transactions pursuant to division 10,751
251
(D) of section 5739.024 of the Revised Code. Such tax is in 10,752
addition to any tax imposed under division (C)(3) or (4) of this 10,753
section. 10,754
(7) A county from levying an excise tax not to exceed one 10,756
and one-half per cent of such transactions pursuant to division 10,757
(E) of section 5739.024 of the Revised Code. Such a tax is in 10,758
addition to any tax imposed under division (C)(3), (4), or (6) of 10,759
this section. 10,760
(D) The levy of this tax on retail sales of recreation and 10,762
sports club service shall not prevent a municipal corporation 10,763
from levying any tax on recreation and sports club dues or on any 10,764
income generated by recreation and sports club dues. 10,765
Section 2. That existing sections 113.061, 133.04, 10,767
715.013, 718.01, 1551.33, 1551.35, 3317.028, 4905.01, 4905.02, 10,769
4905.03, 4905.10, 4905.14, 4905.34, 4905.40, 4905.42, 4905.70, 10,770
4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 4911.18, 4933.33, 10,771
4933.81, 4935.04, 5117.01, 5117.02, 5117.03, 5117.04, 5117.05, 10,772
5117.07, 5117.08, 5117.09, 5117.10, 5117.12, 5701.03, 5703.052, 10,774
5703.053, 5703.14, 5705.34, 5727.01, 5727.02, 5727.05, 5727.06, 10,775
5727.11, 5727.111, 5727.15, 5727.30, 5727.31, 5727.311, 5727.32, 10,777
5727.33, 5727.38, 5727.42, 5727.45, 5727.47, 5727.53, 5727.60, 10,778
5727.61, 5727.72, 5727.99, 5733.04, 5733.05, 5733.06, 5733.09, 10,779
5733.98, 5739.011, and 5739.02 and sections 4905.301, 4905.66, 10,781
4905.67, 4905.68, 4905.69, 4909.157, 4909.158, 4909.159, 10,782
4909.191, 4909.192, 4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 10,783
4913.05, 4913.06, 4913.07, 4933.27, 4933.34, 5727.231, and 10,784
5727.73 of the Revised Code are hereby repealed.
Section 3. Sections 5727.111 and 5727.15 of the Revised 10,786
Code, as amended by this act, shall first apply to tax year 2001. 10,787
Section 4. Sections 4933.33, 5727.30, 5727.32, 5727.33, 10,789
and 5727.38 of the Revised Code, as amended by this act, shall 10,790
first apply to the excise tax assessed by the Tax Commissioner 10,791
for tax year 2002.
Section 5. Sections 1551.33, 1551.35, 4905.01, 4905.02, 10,793
252
4905.03, 4905.10, 4905.14, 4905.34, 4905.40, 4905.42, 4905.70, 10,794
4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 4935.04, and 10,795
5703.14 of the Revised Code, as amended by this act, shall take 10,796
effect on January 1, 2001, but if the Public Utilities Commission 10,797
issues an order under division (C) of section 4928.01 of the 10,798
Revised Code, as enacted by this act, the amendments to such 10,799
sections shall be applied accordingly. In addition, the 10,800
amendment of division (A)(4)(b) of section 4909.15 of the Revised 10,801
Code, as amended by this act, shall not be applied until January 10,802
1, 2002.
Section 6. Section 5727.45 of the Revised Code, as amended 10,804
by this act, shall take effect January 1, 2002. 10,805
Section 7. Sections 5117.01, 5117.02, 5117.03, 5117.04, 10,807
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, and 5117.12 of the 10,808
Revised Code, as amended by this act, shall take effect on July 10,810
1, 2000.
Section 8. Section 5727.391 of the Revised Code is hereby 10,813
repealed effective January 1, 2002.
Section 9. Sections 4905.301, 4905.66, 4905.67, 4905.68, 10,816
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 4909.192, 10,817
4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 4913.05, 4913.06, 10,818
4913.07, 4933.27, and 4933.34 of the Revised Code, as repealed by 10,819
this act, shall take effect on January 1, 2001, but if the Public 10,820
Utilities Commission issues an order under division (C) of 10,821
section 4928.01 of the Revised Code, as enacted by this act, the 10,822
repeal of such sections shall be applied accordingly. 10,823
Section 10. The Public Utilities Commission, Consumers' 10,825
Counsel, and the Attorney General shall develop a memorandum of 10,826
understanding not later than January 1, 2000, to establish a 10,827
system to respond effectively and efficiently to residential 10,828
consumer inquiries and complaints and shall provide a joint 10,829
report to the General Assembly on the efforts of the three 10,830
agencies not later than June 30, 2002. 10,831
Section 11. (A) As used in this section: 10,833
253
(1) "Electric company" and "rural electric company" have 10,835
the same meanings as in section 5727.01 of the Revised Code. 10,836
(2) "Gross receipts" means gross receipts determined in 10,838
accordance with section 5727.33 of the Revised Code. 10,839
(B) Each electric company and rural electric company shall 10,841
pay the public utility excise tax imposed by section 5727.30 of 10,842
the Revised Code on the company's gross receipts received during 10,843
the period of May 1, 2000, through May 1, 2001. Notwithstanding 10,845
section 5727.31 of the Revised Code, each electric company and 10,846
rural electric company shall make tax payments toward that 10,847
liability. The first payment must be made on or before October 10,848
15, 2000, and shall equal one-third of the estimated liability 10,849
shown in the report filed on or before August 1, 2000. The 10,850
second payment must be made on or before March 1, 2001, and shall 10,852
equal one-third of the tax assessed by the Tax Commissioner on or 10,853
before the first Monday in November, 2000. The last payment must 10,854
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 10,855
period of May 1, 2000, through May 1, 2001, shall be filed by an 10,856
electric company or a rural electric company on or before August 10,857
1, 2001, in accordance with division (A) of section 5727.31 and 10,858
section 5727.32 of the Revised Code. 10,859
On or before the first Monday of November 2001, the Tax 10,861
Commissioner shall assess an excise tax equal to four and 10,862
three-quarters per cent of the gross receipts received by 10,863
electric companies and rural electric companies during the period 10,865
of May 1, 2000, through May 1, 2001. Except as provided in 10,866
section 5727.03 of the Revised Code, as enacted by this act, 10,867
after payment of this assessment, electric companies and rural 10,868
electric companies are not subject to the excise tax imposed by 10,869
section 5727.30 of the Revised Code. 10,870
Section 12. Electric companies, as defined in section 10,872
5727.01 of the Revised Code, shall first be subject to the 10,873
corporation franchise tax under Chapter 5733. of the Revised Code 10,874
254
for tax year 2002, as "tax year" is defined in section 5733.04 of 10,875
the Revised Code. For tax year 2002, an electric company shall 10,876
pay two-thirds of its total corporation franchise tax liability 10,877
under Chapter 5733. of the Revised Code. The amendments in this 10,878
act to sections 4909.15, 5733.04, 5733.05, 5733.06, 5733.09, and 10,879
5733.98 of the Revised Code, and the enactment in this act of 10,880
section 5733.39 of the Revised Code, first apply for tax year 10,881
2002.
Section 13. An electric company that is entitled to carry 10,883
forward a credit against its public utility excise tax liability 10,884
under section 5727.391 of the Revised Code before the repeal of 10,885
that section under this act, is not entitled to carry forward any 10,886
amount remaining after its last public utility excise tax payment 10,887
and claim that amount as a credit against its corporation 10,888
franchise tax liability under section 5733.39 of the Revised 10,889
Code, as enacted by this act. The credit granted under section 10,890
5727.391 of the Revised Code only applies through the last 10,891
assessment issued by the Tax Commissioner under Section 11 of 10,892
this act.
Section 14. The tax levied under section 5727.81 of the 10,894
Revised Code first applies on and after May 1, 2001. Before that 10,895
date, any electric distribution company shall register with the 10,896
Tax Commissioner in accordance with section 5727.93 of the 10,897
Revised Code, as enacted by this act. 10,898
Section 15. Notwithstanding section 4933.81, as amended by 10,900
this act, sections 4933.82 to 4933.90 of the Revised Code, and 10,901
any provision of this act, the Public Utilities Commission by 10,902
order may establish a residential market pilot program prior to 10,903
the starting date of competitive retail electric service as 10,904
defined in section 4928.01 of the Revised Code, as enacted by 10,905
this act. The program shall enable the commission and the 10,906
General Assembly to make an initial evaluation of the effect of 10,907
competitive retail electric service on the residential market. 10,908
The program shall allow at least five per cent but not more than 10,909
255
fifteen per cent of the residential customers of electric 10,911
utilities in this state to select their electric generation 10,912
supplier. Every residential customer shall be eligible to 10,913
participate in a lottery or similar arrangement, as prescribed in 10,914
the order, for the final selection of customer participants. In
the order, the commission shall establish transition charges as 10,915
contemplated under sections 4928.31 to 4928.40 of the Revised 10,916
Code, as enacted by this act, to be in effect for the duration of 10,917
the program, with shopping incentives sufficient to allow for 10,918
market development during the program. The commission shall 10,919
report to the General Assembly not later than November 1, 2000, 10,920
its findings and recommendations about the program and the effect 10,921
of competitive retail electric service on the residential market. 10,922
Section 16. The intent of division (C) of section 5727.81 10,924
of the Revised Code, as enacted by this act, is to craft a 10,925
revenue neutral solution for all customer classes, with any 10,926
margin of error being resolved in favor of residential customers. 10,927
Section 17. Section 5727.47 of the Revised Code is 10,929
presented in this act as a composite of the section as amended by 10,930
both Am. Sub. H.B. 904 and Am. S.B. 358 of the 119th General 10,931
Assembly, with the new language of neither of the acts shown in 10,932
capital letters. This is in recognition of the principle stated 10,933
in division (B) of section 1.52 of the Revised Code that such 10,934
amendments are to be harmonized where not substantively 10,935
irreconcilable and constitutes a legislative finding that such is 10,936
the resulting version in effect prior to the effective date of 10,937
this act.
Section 18. If any provision of law that constitutes the 10,939
whole or part of a codified or uncodified section of law 10,940
contained in this act, or if any application of any provision of 10,941
law that constitutes the whole or part of a codified or 10,942
uncodified section of law contained in this act, is held invalid, 10,943
the invalidity does not affect other provisions of law or 10,944
applications of provisions of law that can be given effect 10,945
256
without the invalid provision of law or application. To this
end, the provisions of law of which the codified and uncodified 10,946
sections contained in this act are composed, and their 10,947
applications, are independent and severable. 10,948