As Reported by House Public Utilities Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 3 5
1999-2000 6
SENATORS JOHNSON-FINAN-BLESSING-HERINGTON-ARMBRUSTER- 8
HOTTINGER-SPADA-WACHTMANN-MUMPER-GARDNER-KEARNS- 10
REPRESENTATIVES MEAD-OLMAN-TRAKAS-SCHULER-GOODMAN-HOOPS-CATES
_________________________________________________________________ 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,
4905.402, 4905.42, 4905.46, 4905.70, 4906.10, 16
4909.01, 4909.05, 4909.15, 4909.161, 4911.18, 17
4933.14, 4933.15, 4933.33, 4933.81, 4935.03, 18
4935.04, 5117.01, 5117.02, 5117.03, 5117.04, 19
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, 20
5117.12, 5701.03, 5703.052, 5703.053, 5705.34, 21
5727.01, 5727.02, 5727.05, 5727.06, 5727.11, 22
5727.111, 5727.15, 5727.30, 5727.31, 5727.311, 23
5727.32, 5727.33, 5727.38, 5727.42, 5727.45,
5727.47, 5727.53, 5727.60, 5727.61, 5727.72, 24
5727.99, 5733.04, 5733.05, 5733.051, 5733.057, 25
5733.06, 5733.09, 5733.33, 5733.98, 5739.011,
5739.02, 5747.31, and 5747.98; to enact sections 27
4928.01 to 4928.20, 4928.31 to 4928.43, 4928.431,
4928.44, 4928.51 to 4928.58, 4928.61 to 4928.63, 29
4928.67, 5727.03, 5727.80 to 5727.95, 5733.059, 30
5733.0510, and 5733.39; and to repeal sections
4905.301, 4905.66, 4905.67, 4905.68, 4905.69, 31
4909.157, 4909.158, 4909.159, 4909.191, 4909.192, 32
4909.193, 4913.01, 4913.02, 4913.03, 4913.04,
4913.05, 4913.06, 4913.07, 4933.27, 4933.34, 34
5727.231, 5727.391, and 5727.73 of the Revised 35
Code to provide for competition in retail 36
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electric service, including provisions regarding
market structure, consumer protection, and 37
transition revenues; to levy a kilowatt-hour 38
excise tax on electric distribution companies; to
revise taxes for electric companies and rural 39
electric companies; to reduce tax assessment 40
rates on certain electric company and rural 41
electric company tangible personal property; and 42
to terminate the Electric Employee Assistance 43
Advisory Board on December 31, 2005, by repealing 44
section 4928.431 of the Revised Code on that 45
date.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 47
Section 1. That sections 113.061, 133.04, 715.013, 718.01, 49
1551.33, 1551.35, 3317.028, 4905.01, 4905.02, 4905.03, 4905.10, 51
4905.14, 4905.34, 4905.40, 4905.402, 4905.42, 4905.46, 4905.70, 52
4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 4911.18, 4933.14, 53
4933.15, 4933.33, 4933.81, 4935.03, 4935.04, 5117.01, 5117.02, 55
5117.03, 5117.04, 5117.05, 5117.07, 5117.08, 5117.09, 5117.10, 56
5117.12, 5701.03, 5703.052, 5703.053, 5705.34, 5727.01, 5727.02, 58
5727.05, 5727.06, 5727.11, 5727.111, 5727.15, 5727.30, 5727.31, 59
5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 5727.45, 5727.47, 60
5727.53, 5727.60, 5727.61, 5727.72, 5727.99, 5733.04, 5733.05, 61
5733.051, 5733.057, 5733.06, 5733.09, 5733.33, 5733.98, 5739.011,
5739.02, 5747.31, and 5747.98 be amended and sections 4928.01, 64
4928.02, 4928.03, 4928.04, 4928.05, 4928.06, 4928.07, 4928.08, 65
4928.09, 4928.10, 4928.11, 4928.12, 4928.13, 4928.14, 4928.15, 66
4928.16, 4928.17, 4928.18, 4928.19, 4928.20, 4928.31, 4928.32, 67
4928.33, 4928.34, 4928.35, 4928.36, 4928.37, 4928.38, 4928.39, 68
4928.40, 4928.41, 4928.42, 4928.43, 4928.431, 4928.44, 4928.51,
4928.52, 4928.53, 4928.54, 4928.55, 4928.56, 4928.57, 4928.58, 69
4928.61, 4928.62, 4928.63, 4928.67, 5727.03, 5727.80, 5727.81, 71
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5727.82, 5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 5727.88, 72
5727.89, 5727.90, 5727.91, 5727.92, 5727.93, 5727.94, 5727.95, 73
5733.059, 5733.0510, and 5733.39 of the Revised Code be enacted 75
to read as follows:
Sec. 113.061. The treasurer of state shall adopt rules in 84
accordance with Chapter 119. of the Revised Code governing the 85
remittance of taxes by electronic funds transfer as required 86
under sections 5727.311, 5727.83, 5733.022, 5735.062, 5739.032, 87
5739.122, 5741.121, and 5747.072 of the Revised Code and any 89
other section of the Revised Code under which a person is 90
required to remit taxes by electronic funds transfer. The rules 91
shall govern the modes of electronic funds transfer acceptable to 92
the treasurer OF STATE and under what circumstances each mode is 93
acceptable, the content and format of electronic funds transfers, 95
the coordination of payment by electronic funds transfer and 96
filing of associated tax reports and returns, the remittance of 97
taxes by means other than electronic funds transfer by persons 98
otherwise required to do so but relieved of the requirement by 99
the treasurer of state, and any other matter that in the opinion 100
of the treasurer of state facilitates payment by electronic funds 101
transfer in a manner consistent with those sections. 102
Upon failure by a person, if so required, to remit taxes by 104
electronic funds transfer in the manner prescribed under section 105
5727.83, 5733.022, 5735.062, 5739.032, 5739.122, 5741.121, or 107
5747.072 of the Revised Code and rules adopted under this 108
section, the treasurer of state shall notify the tax commissioner 109
of such failure if the treasurer OF STATE determines that such 110
failure was not due to reasonable cause or was due to willful 112
neglect, and shall provide the tax commissioner with any 113
information used in making that determination. The tax 114
commissioner may assess an additional charge as specified in the 115
respective section of the Revised Code governing the requirement 116
to remit taxes by electronic funds transfer. 117
The treasurer of state may implement means of 119
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acknowledging, upon the request of a taxpayer, receipt of tax 120
remittances made by electronic funds transfer, and may adopt 121
rules governing acknowledgments. The cost of acknowledging 122
receipt of electronic remittances shall be paid by the person 123
requesting acknowledgment. 124
The treasurer of state, not the tax commissioner, is 126
responsible for resolving any problems involving electronic funds 127
transfer transmissions. 128
Sec. 133.04. (A) As used in this chapter, "net 137
indebtedness" means, as determined pursuant to this section, the 138
principal amount of the outstanding securities of a subdivision 139
less the amount held in a bond retirement fund to the extent such 140
amount is not taken into account in determining the principal 141
amount outstanding under division (AA) of section 133.01 of the 142
Revised Code. For purposes of this definition, the principal 143
amount of outstanding securities includes the principal amount of 144
outstanding securities of another subdivision apportioned to the 145
subdivision as a result of acquisition of territory, and excludes 146
the principal amount of outstanding securities of the subdivision 147
apportioned to another subdivision as a result of loss of 148
territory and the payment or reimbursement obligations of the 149
subdivision under credit enhancement facilities relating to 150
outstanding securities. 151
(B) In calculating the net indebtedness of a subdivision, 153
none of the following securities, including anticipatory 154
securities issued in anticipation of their issuance, shall be 155
considered: 156
(1) Securities issued in anticipation of the levy or 158
collection of special assessments, either in original or refunded 159
form; 160
(2) Securities issued in anticipation of the collection of 162
current revenues for the fiscal year or other period not to 163
exceed twelve consecutive months, or securities issued in 164
anticipation of the collection of the proceeds from a 165
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specifically identified voter-approved tax levy; 166
(3) Securities issued for purposes described in section 168
133.12 of the Revised Code; 169
(4) Securities issued under Chapter 122., 140., 165., 171
725., or 761., or section 131.23 of the Revised Code; 172
(5) Securities issued to pay final judgments or 174
court-approved settlements under authorizing laws and securities 175
issued under section 2744.081 of the Revised Code; 176
(6) Securities issued to pay costs of permanent 178
improvements to the extent they are issued in anticipation of the 179
receipt of, and are payable as to principal from, federal or 180
state grants or distributions for, or legally available for, that 182
principal or for the costs of those permanent improvements; 183
(7) Securities issued to evidence loans from the state 185
capital improvements fund pursuant to Chapter 164. of the Revised 186
Code or from the state infrastructure bank pursuant to section 187
5531.09 of the Revised Code; 188
(8) SECURITIES ISSUED IN AN AMOUNT EQUAL TO THE PROPERTY 190
TAX REPLACEMENT PAYMENTS RECEIVED UNDER SECTION 5727.85 OR 191
5727.86 OF THE REVISED CODE; 192
(9) Other securities, including self-supporting 194
securities, excepted by law from the calculation of net 195
indebtedness or from the application of this chapter; 196
(9)(10) Any other securities outstanding on October 30, 198
1989, and then excepted from the calculation of net indebtedness 202
or from the application of this chapter, and securities issued at 203
any time to fund or refund those securities. 204
Sec. 715.013. Except as otherwise expressly authorized by 213
the Revised Code, no municipal corporation shall levy a tax that 214
is the same as or similar to a tax levied under Chapter 322., 215
3734., 3769., 4123., 4141., 4301., 4303., 4305., 4307., 4309., 216
5707., 5725., 5727., 5728., 5729., 5731., 5735., 5737., 5739., 217
5741., 5743., or 5749. of the Revised Code. 218
This section does not prohibit a municipal corporation from 220
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levying a tax on amounts received for admission to any place OR, 221
ON AND AFTER JANUARY 1, 2002, ON THE INCOME OF AN ELECTRIC 222
COMPANY OR COMBINED COMPANY, AS DEFINED IN SECTION 5727.01 OF THE 224
REVISED CODE.
Sec. 718.01. (A) As used in this chapter: 233
(1) "Internal Revenue Code" means the Internal Revenue 235
Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. 236
(2) "Schedule C" means internal revenue service schedule C 238
filed by a taxpayer pursuant to the Internal Revenue Code. 239
(3) "Form 2106" means internal revenue service form 2106 241
filed by a taxpayer pursuant to the Internal Revenue Code. 242
(4) "Intangible income" means income of any of the 244
following types: income yield, interest, dividends, or other 245
income arising from the ownership, sale, exchange, or other 246
disposition of intangible property including, but not limited to, 247
investments, deposits, money, or credits as those terms are
defined in Chapter 5701. of the Revised Code. 248
(B) No municipal corporation with respect to that income 250
which THAT it may tax shall tax such income at other than a 252
uniform rate.
(C) No municipal corporation shall levy a tax on income at 254
a rate in excess of one per cent without having obtained the 255
approval of the excess by a majority of the electors of the 256
municipality voting on the question at a general, primary, or 257
special election. The legislative authority of the municipal 258
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the 259
ordinance together with a resolution specifying the date the 260
election is to be held and directing the board of elections to 261
conduct the election. The ballot shall be in the following form: 262
"Shall the Ordinance providing for a... per cent levy on income 263
for (Brief description of the purpose of the proposed levy) be
passed? 264
FOR THE INCOME TAX 266
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AGAINST THE INCOME TAX" 268
In the event of an affirmative vote, the proceeds of the 270
levy may be used only for the specified purpose. 271
(D)(1) Except as otherwise provided in division (D)(2) of 273
this section, no municipal corporation shall exempt from a tax on 274
income, compensation for personal services of individuals over 275
eighteen years of age or the net profit from a business or 276
profession.
(2) The legislative authority of a municipal corporation 278
may, by ordinance or resolution, exempt from a tax on income any 279
compensation arising from the grant, sale, exchange, or other 280
disposition of a stock option; the exercise of a stock option; or 281
the sale, exchange, or other disposition of stock purchased under 282
a stock option.
(E) Nothing in this section shall prevent a municipal 284
corporation from permitting lawful deductions as prescribed by 285
ordinance. If a taxpayer's taxable income includes income 286
against which the taxpayer has taken a deduction for federal 287
income tax purposes as reportable on the taxpayer's form 2106, 288
and against which a like deduction has not been allowed by the
municipal corporation, the municipal corporation shall deduct 289
from the taxpayer's taxable income an amount equal to the 290
deduction shown on such form allowable against such income, to 291
the extent not otherwise so allowed as a deduction by the 292
municipal corporation. In the case of a taxpayer who has a net
profit from a business or profession that is operated as a sole 293
proprietorship, no municipal corporation may tax or use as the 294
base for determining the amount of the net profit that shall be 295
considered as having a taxable situs in the municipal 296
corporation, a greater amount than the net profit reported by the
taxpayer on schedule C filed in reference to the year in question 297
as taxable income from such sole proprietorship, except as 298
otherwise specifically provided by ordinance or regulation. 299
(F) No municipal corporation shall tax any of the 301
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following:
(1) The military pay or allowances of members of the armed 303
forces of the United States and of members of their reserve 304
components, including the Ohio national guard; 305
(2) The income of religious, fraternal, charitable, 307
scientific, literary, or educational institutions to the extent 308
that such income is derived from tax-exempt real estate, 309
tax-exempt tangible or intangible property, or tax-exempt 310
activities;
(3) Except as otherwise provided in division (G) of this 312
section, intangible income; 313
(4) Compensation paid under section 3501.28 or 3501.36 of 315
the Revised Code to a person serving as a precinct election 316
official, to the extent that such compensation does not exceed 317
one thousand dollars annually. Such compensation in excess of 318
one thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer 319
of such compensation to withhold any tax from that compensation. 320
(5) Compensation paid to an employee of a transit 322
authority, regional transit authority, or regional transit 323
commission created under Chapter 306. of the Revised Code for 324
operating a transit bus or other motor vehicle for the authority 325
or commission in or through the municipal corporation, unless the
bus or vehicle is operated on a regularly scheduled route, the 326
operator is subject to such a tax by reason of residence or 327
domicile in the municipal corporation, or the headquarters of the 328
authority or commission is located within the municipal 329
corporation.
(6) The income of a public utility when that public 332
utility is subject to the tax levied under section 5727.30 of the 333
Revised Code, EXCEPT STARTING JANUARY 1, 2002, THE INCOME OF AN 334
ELECTRIC COMPANY OR COMBINED COMPANY, AS DEFINED IN SECTION 335
5727.01 OF THE REVISED CODE, MAY BE TAXED BY A MUNICIPAL 336
CORPORATION. FOR A COMBINED COMPANY, ONLY THE INCOME ATTRIBUTED 337
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FROM THE ACTIVITY OF AN ELECTRIC COMPANY SHALL BE SUBJECT TO
TAXATION BY A MUNICIPAL CORPORATION. THE INCOME OF AN ELECTRIC 338
COMPANY OR COMBINED COMPANY SUBJECT TO TAXATION BY A MUNICIPAL 339
CORPORATION SHALL BE COMPUTED BY TAKING INTO ACCOUNT THE 340
ADJUSTMENTS PROVIDED BY DIVISION (I)(16) OF SECTION 5733.04 OF 341
THE REVISED CODE. 342
(G) Any municipal corporation that taxes any type of 344
intangible income on March 29, 1988, pursuant to Section 3 of 345
Amended Substitute Senate Bill No. 238 of the 116th general 346
assembly, may continue to tax that type of income after 1988 if a 347
majority of the electors of the municipal corporation voting on 348
the question of whether to permit the taxation of that type of
intangible income after 1988 vote in favor thereof at an election 349
held on November 8, 1988. 350
(H) Nothing in this section or section 718.02 of the 352
Revised Code, shall authorize the levy of any tax on income which 354
THAT a municipal corporation is not authorized to levy under 356
existing laws or shall require a municipal corporation to allow a 357
deduction from taxable income for losses incurred from a sole 358
proprietorship or partnership.
Sec. 1551.33. (A) The director of development shall 367
appoint and fix the compensation of the director of the Ohio coal 368
development office established under section 1551.32 of the 369
Revised Code. The director of the office shall serve at the 370
pleasure of the director of development. 371
(B) The director of the office shall do all of the 373
following:
(1) Biennially prepare and maintain the Ohio coal 375
development agenda required under section 1551.34 of the Revised 376
Code; 377
(2) Propose and support policies for the office consistent 379
with the Ohio coal development agenda and develop means to 380
implement the agenda; 381
(3) Apportion for the office's administrative costs no 383
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more than ten per cent of the moneys credited to the Ohio coal 384
development fund created under section 1551.36 of the Revised 385
Code; 386
(4) Initiate, undertake, and support projects to carry out 388
the office's purposes and ensure that the projects are consistent 389
with and meet the selection criteria established by the Ohio coal 390
development agenda; 391
(5) Actively encourage joint participation in and, when 393
feasible, joint funding of the office's projects with 394
governmental agencies, electric utilities, universities and 395
colleges, other public or private interests, or any other person; 396
(6) Establish a table of organization for and employ such 398
employees and agents as are necessary for the administration and 399
operation of the office; 400
(7) Appoint specified members of and convene the technical 402
advisory committee established under section 1551.35 of the 403
Revised Code; 404
(8) Review, with the assistance of the technical advisory 406
committee, proposed coal research and development projects as 407
defined in section 1555.01 of the Revised Code, and coal 408
development projects, submitted to the office by public utilities 409
for the purposes PURPOSE of sections 4905.301, SECTION 4905.304, 411
and 4909.191 of the Revised Code. If the director and the 412
advisory committee determine that any such facility or project 413
has as its purpose the enhanced use of Ohio coal in an 414
environmentally acceptable, cost effective manner, promotes 415
energy conservation, is cost effective, and is environmentally 416
sound, the director shall submit to the public utilities 417
commission a report recommending that the commission allow the 418
recovery of costs associated with the facility or project under 419
section 4905.301, 4905.304, or 4909.191 of the Revised Code and 420
including the reasons for the recommendation; 421
(9) Establish such policies, procedures, and guidelines as 423
are necessary to achieve the office's purposes. 424
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(C) With the approval of the director of development, the 426
director of the office may exercise any of the powers and duties 427
of the director of development as the directors consider 428
appropriate or desirable to achieve the office's purposes, 429
including, but not limited to, the powers and duties enumerated 430
in sections 1551.11, 1551.12, 1551.13, and 1551.15 of the Revised 431
Code. 432
Additionally, the director of the office may make loans to 434
governmental agencies or persons for projects to carry out the 435
office's purposes. Fees, charges, rates of interest, times of 436
payment of interest and principal, and other terms, conditions, 437
and provisions of the loans shall be such as the director of the 438
office determines to be appropriate and in furtherance of the 439
purposes for which the loans are made. The mortgage lien 440
securing any moneys lent by the director of the office may be 441
subordinate to the mortgage lien securing any moneys lent or 442
invested by a financial institution, but shall be superior to 443
that securing any moneys lent or expended by any other person. 444
The moneys used in making the loans shall be disbursed upon order 445
of the director of the office. 446
Sec. 1551.35. (A) There is hereby established a technical 455
advisory committee to assist the director of the Ohio coal 456
development office established under section 1551.32 of the 457
Revised Code in achieving the office's purposes. The director 458
shall appoint to the committee one member of the public utilities 459
commission of Ohio and one representative each of coal production 460
companies, the united mine workers of America, electric 461
utilities, manufacturers that use Ohio coal, and environmental 462
organizations, as well as two people with a background in coal 463
research and development technology, one of whom is employed at 464
the time of the member's appointment by a state university, as 466
defined in section 3345.011 of the Revised Code. In addition, 467
the committee shall include four legislative members. The 468
speaker and minority leader of the house of representatives each 469
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shall appoint one member of the house of representatives, and the 470
president and minority leader of the senate each shall appoint 471
one member of the senate, to the committee. The director of 472
environmental protection, representing the environmental 474
protection agency, the Ohio air quality development authority, 475
and the Ohio water development authority, shall serve on the 476
committee as members ex officio. Any member of the committee may
designate in writing a substitute to serve in the member's 477
absence on the committee. The director of environmental 478
protection may designate in writing the chief of the air 479
pollution control division of the agency to represent the agency. 480
Members shall serve on the committee at the pleasure of their 481
appointing authority. Members of the committee appointed by the 482
director of the office and, notwithstanding section 101.26 of the 483
Revised Code, legislative members of the committee, when engaged 484
in their official duties as members of the committee, shall be 485
compensated on a per diem basis in accordance with division (J) 486
of section 124.15 of the Revised Code, except that the member of 487
the public utilities commission of Ohio and, while employed by a 488
state university, the member with a background in coal research, 489
shall not be so compensated. Members shall receive their actual 490
and necessary expenses incurred in the performance of their 491
duties.
(B) The technical advisory committee shall review and make 493
recommendations concerning the Ohio coal development agenda 494
required under section 1551.34 of the Revised Code, project 495
proposals, research and development projects submitted to the 496
office by public utilities for the purposes PURPOSE of sections 498
4905.301, SECTION 4905.304, and 4909.191 of the Revised Code, 499
proposals for grants, loans, and loan guarantees for purposes of 500
sections 1555.01 to 1555.06 of the Revised Code, and such other 501
topics as the director of the office considers appropriate. 502
(C) The technical advisory committee may hold an executive 504
session at any regular or special meeting for the purpose of 505
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considering research and development project proposals or 506
applications for assistance submitted to the Ohio coal 507
development office under section 1551.33, or sections 1555.01 to 508
1555.06, of the Revised Code, to the extent that such proposals 509
or applications consist of trade secrets or other proprietary 510
information. 511
Any materials or data submitted to, made available to, or 513
received by the director of development or the director of the 514
Ohio coal development office in connection with agreements for 515
assistance entered into under this chapter or Chapter 1555. of 517
the Revised Code, or any information taken from such materials or 518
data for any purpose, to the extent that the materials or data 519
consist of trade secrets or other proprietary information, are 520
not public records for the purposes of section 149.43 of the 521
Revised Code.
As used in this division, "trade secrets" has the same 523
meaning as in section 1333.61 of the Revised Code. 524
Sec. 3317.028. (A) On or before the fifteenth day of May 533
in each calendar year, the tax commissioner shall determine for 534
each school district whether the taxable value of all tangible 535
personal property, including utility tangible personal property, 536
subject to taxation by the district in the preceding tax year was 537
less or greater than the taxable value of such property during 538
the second preceding tax year. If any such decrease exceeds five 539
per cent of the district's tangible personal property taxable 540
value included in the total taxable value used in the district's 541
state aid computation for the fiscal year that ends in the 542
current calendar year, or if any such increase exceeds five per 543
cent of the district's total taxable value used in the district's 544
state aid computation for the fiscal year that ends in the 545
current calendar year, the tax commissioner shall certify BOTH OF 546
THE FOLLOWING to the department of education: 548
(A)(1) The taxable value of the tangible personal property 550
increase or decrease, including utility tangible personal 551
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property increase or decrease, which shall be considered a change 552
in valuation; and 553
(B)(2) The decrease or increase in taxes charged and 555
payable on such change in taxable value calculated in the same 556
manner as in division (A)(3) of section 3317.021 of the Revised 557
Code.
(B) NOTWITHSTANDING DIVISION (A) OF THIS SECTION, WHEN 561
DETERMINING UNDER THAT DIVISION IN CALENDAR YEAR 2002 WHETHER THE 562
TAXABLE VALUE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAXATION 563
BY EACH SCHOOL DISTRICT IN THE PRECEDING TAX YEAR WAS LESS OR 564
GREATER THAN THE TAXABLE VALUE OF SUCH PROPERTY DURING THE SECOND 565
PRECEDING TAX YEAR, THE TAX COMMISSIONER SHALL EXCLUDE FROM THE 566
TAXABLE VALUE FOR BOTH YEARS THE TAX VALUE LOSS, AS DEFINED IN 567
SECTION 5727.84 OF THE REVISED CODE.
(C) Upon receipt of such certification, the department of 569
education shall reduce or increase by the respective amounts 570
certified, the taxable value and the taxes charged and payable 571
that were used in the district's state aid computation under 572
section 3317.022 of the Revised Code for the fiscal year that 574
ends in the current calendar year and shall recompute the state 575
aid for such fiscal year. During the last six months of the 576
fiscal year, the department shall pay the district a sum equal to 577
one-half of the recomputed payments in lieu of the payments 578
otherwise required under such sections.
Sec. 4905.01. As used in this chapter: 587
(A) "Railroad" has the meaning set forth in section 589
4907.02 of the Revised Code. 590
(B) "Motor transportation company" has the meaning set 592
forth in sections 4905.03 and 4921.02 of the Revised Code. 593
(C) "Trailer," "public highway," "fixed termini," "regular 595
route," and "irregular route" have the meanings set forth in 596
section 4921.02 of the Revised Code. 597
(D) "Private motor carrier," "contract carrier by motor 599
vehicle," "motor vehicle," and "charter party trip" have the 600
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meanings set forth in section 4923.02 of the Revised Code. 601
(E) "Delivery cost" means the cost of delivery of fuel, to 603
be used for the generation of electricity, from the site of 604
production directly to the site of an electric generating 605
facility. 606
(F) "Acquisition cost" means the cost to an electric light 608
company of acquiring fuel for generation of electricity. In the 609
case of a fuel supply owned by the company, such term shall also 610
include the cost of legally extracting the fuel and its handling 611
prior to its shipment to the company. In the case of a coal 612
supply owned or controlled in whole or in part by the company, 613
such term shall not exceed a price that is, in the judgment of 614
the public utilities commission, reasonable when compared to the 615
average cost per million British thermal units of similar quality 616
coal purchased from all independent like mining operations under 617
similar term contracts during the same period. In determining a 618
reasonable price for coal from a coal supply owned or controlled 619
in whole or in part by the company, the public utilities 620
commission shall consider the use of: 621
(1) Capital by the developer of the mining operation in a 623
manner that did not: 624
(a) Take into account intermediate or long-term trends in 626
the coal mining industry; or 627
(b) Incorporate a design consistent with long-term 629
dependability; and 630
(c) Take into account the intermediate or long-term cost 632
and reliable energy supply interests of the company's customers; 633
or 634
(2) Ineffective operating techniques. Such term does not 636
embrace any associated cost, including, but not limited to, 637
delivery cost, the cost of handling the fuel after its delivery 638
to such facility, the cost of such processing, readying, or 639
refinement of the fuel as may be necessary in order to use the 640
fuel to generate electricity, or the cost of disposing of any 641
16
residue of such fuel after it has been so used. To the extent 642
the washing of coal is required, by law or rule, to remove or 643
reduce sulfur compounds or any other impurity, "acquisition cost" 644
includes the cost of such washing. 645
(G) "Fuel component" means acquisition and delivery costs 647
of fuel for the generation of electricity, including the 648
allowable costs of purchased power as defined in section 4909.159 649
of the Revised Code, divided by the corresponding number of net 650
kilowatt hours generated and purchased. 651
(H) "Base period" means the most recent six-month period 653
for which the public utilities commission has determined either 654
the amount of the fuel component or the fuel cost per kilowatt 655
hour included in the base rates of an electric light company, 656
whichever is last determined. 657
(I) "Current period" means the six-month period 659
immediately succeeding the base period for which the public 660
utilities commission has determined the amount of the fuel 661
component in the base rate of an electric light company. 662
(J) "Ohio coal research and development costs" means all 664
reasonable costs associated with a facility or project undertaken 665
by a public utility for which a recommendation to allow the 666
recovery of costs associated therewith has been made under 667
division (B)(8) of section 1551.33 of the Revised Code, 668
including, but not limited to, capital costs, such as costs of 669
debt and equity; construction and operation costs; termination 670
and retirement costs; costs of feasibility and marketing studies 671
associated with the project; and the acquisition and delivery 672
costs of Ohio coal used in the project, less any expenditures of 673
grant moneys. 674
(K) "Compliance facility" means property that is designed, 676
constructed, or installed, and used, at a coal-fired electric 677
generating facility for the primary purpose of complying with 678
Phase I acid rain control requirements under Title IV of the 679
"Clean Air Act Amendments of 1990," 104 Stat. 2584, 42 U.S.C.A. 680
17
7651, and that controls or limits emissions of sulfur or nitrogen 681
compounds resulting from the combustion of coal through the 682
removal or reduction of those compounds before, during, or after 683
the combustion of the coal, but before the combustion products 684
are emitted into the atmosphere. "Compliance facility" also 685
includes any of the following: 686
(1) A facility that removes sulfur compounds from coal 688
before the combustion of the coal and that is located off the 689
premises of the electric generating facility where the coal 690
processed by the compliance facility is burned; 691
(2) Modifications to the electric generating facility 693
where the compliance facility is constructed or installed that 694
are necessary to accommodate the construction or installation, 695
and operation, of the compliance facility; 696
(3) A byproduct disposal facility, as defined in section 698
3734.051 of the Revised Code, that exclusively disposes of wastes 699
produced by the compliance facility and other coal combustion 700
byproducts produced by the generating unit in or to which the 701
compliance facility is incorporated or connected regardless of 702
whether the byproduct disposal facility is located on the same 703
premises as the compliance facility or generating unit that 704
produces the wastes disposed of at the facility; 705
(4) Facilities or equipment that is acquired, constructed, 707
or installed, and used, at a coal-fired electric generating 708
facility exclusively for the purpose of handling the byproducts 709
produced by the compliance facility or other coal combustion 710
byproducts produced by the generating unit in or to which the 711
compliance facility is incorporated or connected. 712
Sec. 4905.02. As used in this chapter, "public utility" 721
includes every corporation, company, copartnership, person, or 722
association, their lessees, trustees, or receivers, defined in 723
section 4905.03 of the Revised Code, including all public 724
utilities that operate their utilities not for profit, except the 725
following:
18
(A) Electric light companies that operate their utilities 727
not for profit;
(B) Public utilities, other than telephone companies, that 729
are owned and operated exclusively by and solely for the 730
utilities' customers, including any consumer or group of 732
consumers purchasing, delivering, storing, or transporting, or 733
seeking to purchase, deliver, store, or transport, natural gas 734
exclusively by and solely for the consumer's or consumers' own 735
intended use as the end user or end users and not for profit; 736
(C) Public utilities that are owned or operated by any 738
municipal corporation;
(D) Railroads as defined in sections 4907.02 and 4907.03 740
of the Revised Code; 741
(E) ELECTRIC LIGHT COMPANIES THAT SUPPLY ONLY COMPETITIVE 743
RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 OF THE 744
REVISED CODE AND THAT DO NOT SUPPLY NONCOMPETITIVE RETAIL 745
ELECTRIC SERVICE AS DEFINED IN THAT SECTION.
Sec. 4905.03. As used in this chapter: 754
(A) Any person, firm, copartnership, voluntary 756
association, joint-stock association, company, or corporation, 757
wherever organized or incorporated, is: 758
(1) A telegraph company, when engaged in the business of 760
transmitting telegraphic messages to, from, through, or in this 761
state; 762
(2) A telephone company, when engaged in the business of 764
transmitting telephonic messages to, from, through, or in this 765
state and as such is a common carrier; 766
(3) A motor transportation company, when engaged in the 768
business of carrying and transporting persons or property or the 769
business of providing or furnishing such transportation service, 770
for hire, in or by motor-propelled vehicles of any kind, 771
including trailers, for the public in general, over any public 772
street, road, or highway in this state, except as provided in 773
section 4921.02 of the Revised Code; 774
19
(4) An electric light company, when engaged in the 776
business of supplying electricity for light, heat, or power 777
purposes to consumers within this state, INCLUDING SUPPLYING 778
ELECTRIC TRANSMISSION SERVICE FOR ELECTRICITY DELIVERED TO 779
CONSUMERS IN THIS STATE, BUT EXCLUDING A REGIONAL TRANSMISSION 780
ORGANIZATION APPROVED BY THE FEDERAL ENERGY REGULATORY 781
COMMISSION;
(5) A gas company, when engaged in the business of 783
supplying artificial gas for lighting, power, or heating purposes 784
to consumers within this state or when engaged in the business of 785
supplying artificial gas to gas companies or to natural gas 786
companies within this state, but a producer engaged in supplying 787
to one or more gas or natural gas companies, only such artificial 789
gas as is manufactured by that producer as a by-product of some 790
other process in which the producer is primarily engaged within 791
this state is not thereby a gas company. All rates, rentals, 792
tolls, schedules, charges of any kind, or agreements between any 793
gas company and any other gas company or any natural gas company 794
providing for the supplying of artificial gas and for 795
compensation for the same are subject to the jurisdiction of the 796
public utilities commission.
(6) A natural gas company, when engaged in the business of 798
supplying natural gas for lighting, power, or heating purposes to 799
consumers within this state. Notwithstanding the above, neither 801
the delivery nor sale of Ohio-produced natural gas by a producer 803
or gatherer under a public utilities commission-ordered
exemption, adopted before, as to producers, or after, as to 805
producers or gatherers, January 1, 1996, or the delivery or sale 806
of Ohio-produced natural gas by a producer or gatherer of 807
Ohio-produced natural gas, either to a lessor under an oil and 809
gas lease of the land on which the producer's drilling unit is 810
located, or the grantor incident to a right-of-way or easement to 811
the producer or gatherer, shall cause the producer or gatherer to 812
be a natural gas company for the purposes of this section. 813
20
All rates, rentals, tolls, schedules, charges of any kind, 816
or agreements between a natural gas company and other natural gas 817
companies or gas companies providing for the supply of natural 818
gas and for compensation for the same are subject to the 819
jurisdiction of the public utilities commission. The commission, 820
upon application made to it, may relieve any producer or gatherer 821
of natural gas, defined in this section as a gas company or a 823
natural gas company, of compliance with the obligations imposed 824
by this chapter and Chapters 4901., 4903., 4907., 4909., 4921., 826
and 4923. of the Revised Code, so long as the producer or 827
gatherer is not affiliated with or under the control of a gas 828
company or a natural gas company engaged in the transportation or 830
distribution of natural gas, or so long as the producer or 831
gatherer does not engage in the distribution of natural gas to 832
consumers.
Nothing in division (A)(6) of this section limits the 834
authority of the commission to enforce sections 4905.90 to 835
4905.96 of the Revised Code.
(7) A pipe-line company, when engaged in the business of 837
transporting natural gas, oil, or coal or its derivatives through 838
pipes or tubing, either wholly or partly within this state; 839
(8) A water-works company, when engaged in the business of 841
supplying water through pipes or tubing, or in a similar manner, 842
to consumers within this state; 843
(9) A heating or cooling company, when engaged in the 845
business of supplying water, steam, or air through pipes or 846
tubing to consumers within this state for heating or cooling 847
purposes; 848
(10) A messenger company, when engaged in the business of 850
supplying messengers for any purpose; 851
(11) A street railway company, when engaged in the 853
business of operating as a common carrier, a railway, wholly or 854
partly within this state, with one or more tracks upon, along, 855
above, or below any public road, street, alleyway, or ground, 856
21
within any municipal corporation, operated by any motive power 857
other than steam and not a part of an interurban railroad, 858
whether the railway is termed street, inclined-plane, elevated, 860
or underground railway; 861
(12) A suburban railroad company, when engaged in the 863
business of operating as a common carrier, whether wholly or 864
partially within this state, a part of a street railway 865
constructed or extended beyond the limits of a municipal 866
corporation, and not a part of an interurban railroad; 867
(13) An interurban railroad company, when engaged in the 869
business of operating a railroad, wholly or partially within this 870
state, with one or more tracks from one municipal corporation or 871
point in this state to another municipal corporation or point in 872
this state, whether constructed upon the public highways or upon 873
private rights-of-way, outside of municipal corporations, using 874
electricity or other motive power than steam power for the 875
transportation of passengers, packages, express matter, United 876
States mail, baggage, and freight. Such an interurban railroad 877
company is included in the term "railroad" as used in section 878
4907.02 of the Revised Code. 879
(14) A sewage disposal system company, when engaged in the 881
business of sewage disposal services through pipes or tubing, and 882
treatment works, or in a similar manner, within this state. 883
(B) "Motor-propelled vehicle" means any automobile, 885
automobile truck, motor bus, or any other self-propelled vehicle 886
not operated or driven upon fixed rails or tracks. 887
Nothing in this section shall be construed to mean that an 889
electric light company operated not for profit, owned and 890
operated exclusively by and solely for its customers, or owned or 891
operated by a municipal corporation, is subject to sections 892
4905.66, 4905.67, 4905.68, and 4905.69 of the Revised Code. 893
Sec. 4905.10. (A) For the sole purpose of maintaining and 902
administering the public utilities commission and exercising its 903
supervision and jurisdiction over the railroads and public 904
22
utilities of the state, an amount equivalent to the appropriation 905
from the public utilities fund CREATED UNDER DIVISION (B) OF THIS 906
SECTION to the public utilities commission for railroad and 908
public utilities regulation in each fiscal year shall be 909
apportioned among and assessed against the railroads EACH 910
RAILROAD and public utilities UTILITY within the state by the 912
commission by first computing an assessment as though it were to 913
be made in proportion to the intrastate gross earnings or 914
receipts, excluding earnings or receipts from sales to other 915
public utilities for resale, of the railroads and RAILROAD OR 916
public utilities UTILITY for the calendar year next preceding 917
that in which the assessments are ASSESSMENT IS made. The 919
COMMISSION MAY INCLUDE IN THAT FIRST COMPUTATION ANY AMOUNT OF A 921
RAILROAD'S OR PUBLIC UTILITY'S INTRASTATE GROSS EARNINGS OR
RECEIPTS THAT WERE UNDERREPORTED IN A PRIOR YEAR. IN ADDITION TO 922
WHATEVER PENALTIES APPLY UNDER THE REVISED CODE TO SUCH 923
UNDERREPORTING, THE COMMISSION SHALL ASSESS THE RAILROAD OR 925
PUBLIC UTILITY INTEREST AT THE RATE STATED IN DIVISION (A) OF 926
SECTION 1343.01 OF THE REVISED CODE. THE COMMISSION SHALL 928
DEPOSIT ANY INTEREST SO COLLECTED INTO THE PUBLIC UTILITIES FUND. 929
THE final computation of the assessment shall consist of 934
imposing upon each railroad and public utility whose assessment 935
under the first computation would have been fifty dollars or less 936
an assessment of fifty dollars and recomputing the assessment 937
ASSESSMENTS of the remaining railroads and public utilities by 939
apportioning an amount equal to the appropriation to the public 940
utilities commission for administration of the utilities division 941
in each fiscal year less the total amount to be recovered from 942
those paying the minimum assessment, in proportion to the 943
intrastate gross earnings or receipts of the remaining railroads 944
and public utilities for the calendar year next preceding that in 945
which the assessments are made.
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 947
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 948
23
ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF THE REVISED 949
CODE, OR AN ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 950
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 951
4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE THOSE 952
SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 953
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 954
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE COMMISSION 955
PURSUANT TO DIVISION (F) OF SECTION 4928.06 OF THE REVISED CODE, 956
AND VERIFIED BY THE COMMISSION. 957
(B) On or before the first day of October in each year, 959
the commission shall notify each such railroad and public utility 960
of the sum assessed against it, whereupon payment shall be made 961
to the commission, which shall deposit it into the state treasury 962
to the credit of the public utilities fund, which is hereby 964
created. Any such amounts paid into the fund but not expended by 965
the commission shall be credited ratably, after first deducting 966
any deficits accumulated from prior years, by the commission to 967
railroads and public utilities that pay more than the minimum 968
assessment, according to the respective portions of such sum 969
assessable against them for the ensuing calendar year. The 970
assessments for such calendar year shall be reduced 971
correspondingly. 972
(C) Within five days after the beginning of each fiscal 974
year, the director of budget and management shall transfer from 975
the general revenue fund to the public utilities fund an amount 976
sufficient for maintaining and administering the public utilities 978
commission and exercising its supervision and jurisdiction over 979
the railroads and public utilities of the state during the first 980
four months of the fiscal year. The director shall transfer the 981
same amount back to the general revenue fund from the public 982
utilities fund at such time as the director determines that the 983
balance of the public utilities fund is sufficient to support the 984
appropriations from the fund for the fiscal year. The director 985
may transfer less than that amount if the director determines 986
24
that the revenues of the public utilities fund during the fiscal 987
year will be insufficient to support the appropriations from the 988
fund for the fiscal year, in which case the amount not paid back 989
to the general revenue fund shall be payable to the general 990
revenue fund in future fiscal years. 991
(C)(D) FOR THE PURPOSE OF THIS SECTION ONLY, "PUBLIC 993
UTILITY" INCLUDES, IN ADDITION TO AN ELECTRIC UTILITY AS DEFINED 995
IN SECTION 4928.01 OF THE REVISED CODE, AN ELECTRIC SERVICES
COMPANY, AN ELECTRIC COOPERATIVE, OR A GOVERNMENTAL AGGREGATOR 997
SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED 999
CODE, TO THE EXTENT OF THE COMPANY'S, COOPERATIVE'S, OR 1,000
AGGREGATOR'S ENGAGEMENT IN THE BUSINESS OF SUPPLYING OR ARRANGING 1,001
FOR THE SUPPLY IN THIS STATE OF ANY RETAIL ELECTRIC SERVICE FOR 1,002
WHICH IT MUST BE SO CERTIFIED. 1,003
(E) Each public utilities commissioner shall receive a 1,005
salary fixed at the level set by pay range 49 under schedule E-2 1,006
of section 124.152 of the Revised Code. 1,007
Sec. 4905.14. (A) Every public utility shall file an 1,016
annual report with the public utilities commission. The report 1,017
shall be filed at the time and in the form prescribed by the 1,018
commission, shall be duly verified, and shall cover the yearly 1,019
period fixed by the commission. The commission shall prescribe 1,020
the character of the information to be embodied in the annual 1,021
report, and shall furnish to each public utility a blank form for 1,022
it. Every public utility also shall file a copy of the annual 1,023
report with the office of consumers' counsel; the copy shall be 1,024
filed at the same time that the original is filed with the 1,025
commission. If any annual report filed with the commission is 1,026
defective or erroneous, the commission may order that it be 1,027
amended within a prescribed time. Any amendments made pursuant 1,028
to such an order shall be filed with the commission and with the 1,029
office of consumers' counsel. Each annual report filed with the 1,030
commission shall be preserved in the office of the commission. 1,031
The commission may, at any time, require specific answers to 1,032
25
questions upon which it desires information. 1,033
(B) On the first day of July and the first day of November 1,035
of each year, each gas company, AND natural gas company, and 1,036
electric light company shall file with the commission a report in 1,038
quintuplicate stating: 1,039
(1) The total demand, stated in terms of kilowatt hours or 1,041
cubic feet, that the company projects will be expected of the 1,042
company for the following twelve months; 1,043
(2) With respect to electric light companies, the supply 1,045
of fuel for the generation of electricity that they will possess 1,046
as of the first day of July and the first day of November; 1,047
(3) With respect to gas companies and natural gas 1,049
companies, the THE pertinent details of supply contracts with 1,050
pipeline companies and producers for the following twelve months 1,051
that they have executed and the quantity of the gas that they 1,052
will possess in storage and will be available for delivery as of 1,053
the first day of July and the first day of November; 1,054
(4)(3) Where it appears from a comparison of the 1,056
information reported in division (B)(1) of this section with that 1,057
reported in division (B)(2) or (3) of this section that the total 1,058
demand projected by the company for the twelve months following 1,059
the date of the report will exceed the ability of the company to 1,060
furnish it, the means which the company intends to employ in 1,061
order to prevent any interruption or curtailment of service. 1,062
(C) The public utilities commission may require any 1,064
telephone company to file with its annual report, supplementary 1,065
reports of each exchange area owned or operated by it, in such 1,066
detail as the commission may prescribe. Upon request of fifteen 1,067
per cent of the subscribers of any telephone exchange, the public 1,068
utilities commission shall require the report for such exchange 1,069
area. 1,070
Sec. 4905.34. EXCEPT AS PROVIDED IN SECTIONS 4905.33 AND 1,079
4905.35 AND CHAPTER 4928. OF THE REVISED CODE, Chapters 4901., 1,080
4903., 4905., 4907., 4909., 4921., and 4923. of the Revised Code 1,083
26
do not prevent any public utility or railroad from granting any 1,084
of its property for any public purpose, or granting reduced rates 1,085
or free service of any kind to the United States, to the state or 1,086
any political subdivision of the state, for charitable purposes, 1,087
for fairs or expositions, to a law enforcement officer residing
in free housing provided pursuant to section 3735.43 of the 1,088
Revised Code, or to any officer or employee of such public 1,091
utility or railroad or the officer's or employee's family. All 1,092
contracts and agreements made or entered into by such public
utility or railroad for such use, reduced rates, or free service 1,093
are valid and enforcible at law. As used in this section, 1,094
"employee" includes furloughed, pensioned, and superannuated 1,096
employees.
Sec. 4905.40. (A) A public utility or a railroad may, 1,105
when authorized by order of the public utilities commission, 1,106
issue stocks, bonds, notes, and other evidences of indebtedness, 1,107
payable at periods of more than twelve months after their date of 1,108
issuance, when necessary: 1,109
(1) For the acquisition of property, the construction, 1,111
completion, extension, renewal, or improvement of its facilities, 1,112
or the improvement of its service; or 1,113
(2) For reorganization or readjustment of its indebtedness 1,115
and capitalization, for the discharge or lawful refunding of its 1,116
obligation, or for the reimbursement of moneys actually expended 1,117
for such purposes from income or from any other moneys in the 1,118
treasury of the public utility or railroad not secured or 1,119
obtained from the issue of stocks, bonds, notes, or other 1,120
evidences of indebtedness of such public utility or railroad. No 1,121
reimbursement of moneys expended for such purposes from income or 1,122
other moneys in the treasury shall be authorized unless the 1,123
applicant has kept its accounts and vouchers of such expenditures 1,124
in such manner as to enable the commission to ascertain the 1,125
amount and purposes of such expenditures. 1,126
(B) Any public utility, subject to the jurisdiction of the 1,128
27
commission, may, when authorized by the commission, issue shares 1,129
of common capital stock to acquire or pay for shares of common 1,130
capital stock of a public utility of this or an adjoining state 1,131
whose property is so located as to permit the operation of the 1,132
properties of such utilities as an integrated system if the 1,133
applicant owns, or by this issue will acquire, not less than 1,134
sixty-five per cent of the issued and outstanding common capital 1,135
shares of the company whose shares are to be acquired, and if the 1,136
consideration to be capitalized by the acquiring company does not 1,137
exceed the par or stated value at which the shares so acquired 1,138
were issued. 1,139
(C) Any bonds, notes, or other evidences of indebtedness 1,141
payable at periods of more than twelve months after their date 1,142
may be issued as provided in sections 4905.40 to 4905.43 of the 1,144
Revised Code, regardless of the amount of the capital stock of 1,145
the public utility or railroad, subject to the approval of the 1,146
commission of the excess of such bonds, notes, or other evidences 1,147
of indebtedness above the amount of the capital stock of such 1,148
public utility or railroad. 1,149
(D) The commission shall authorize on the best terms 1,151
obtainable such issues of stocks, bonds, and other evidences of 1,152
indebtedness as are necessary to enable any public utility to 1,153
comply with any contract made between such public utility and any 1,154
municipal corporation prior to June 30, 1911. 1,155
(E) The commission may authorize A PUBLIC UTILITY THAT IS 1,157
an electric light company to issue equity securities, or debt 1,159
securities having a term of more than twelve months from the date 1,160
of issuance, for the purpose of yielding to the company the 1,161
capacity to acquire a facility that produces fuel for the 1,162
generation of electricity.
(F) In any proceeding under division (A)(1) of this 1,164
section initiated by a public utility, the commission shall 1,165
determine and set forth in its order: 1,166
(1) Whether the purpose to which the issue or any proceeds 1,168
28
of it shall be applied was or is reasonably required by the 1,169
utility to meet its present and prospective obligations to 1,170
provide utility service; 1,171
(2) Whether the amount of the issue and the probable cost 1,173
of such stocks, bonds, notes, or other evidences of indebtedness 1,174
is just and reasonable; 1,175
(3) What effect, if any, the issuance of such stocks, 1,177
bonds, notes, or other evidences of indebtedness and the cost 1,178
thereof will have upon the present and prospective revenue 1,179
requirements of the utility. 1,180
(G) Sections 4905.40 to 4905.42 of the Revised Code do not 1,182
apply to stocks, bonds, notes, or other evidence of indebtedness 1,183
issued for the purpose of financing oil or natural gas drilling, 1,184
producing, gathering, and associated activities and facilities by 1,185
a producer which supplies to no more than twenty purchasers only 1,186
such gas as is produced, gathered, or purchased by such producer 1,187
within this state. 1,188
(H) Each public utility seeking authorization from the 1,190
commission for the issuance of securities to finance the 1,191
installation, construction, extension, or improvement of an air 1,192
quality facility, as defined in section 3706.01 of the Revised 1,193
Code, shall consider the availability of financing therefor from 1,194
the Ohio air quality development authority and shall demonstrate 1,195
to the commission that the proposed financing will be obtained on 1,196
the best terms obtainable. 1,197
Sec. 4905.402. (A) As used in this section: 1,206
(1) "Control" means the possession of the power to direct 1,208
the management and policies of a domestic telephone company or a 1,209
holding company of a domestic telephone company, OR THE 1,210
MANAGEMENT AND POLICIES OF A DOMESTIC ELECTRIC UTILITY OR A 1,211
HOLDING COMPANY OF A DOMESTIC ELECTRIC UTILITY, through the 1,212
ownership of voting securities, by contract, or otherwise, but 1,213
does not include the power that results from holding an official 1,214
position or the possession of corporate office with the domestic 1,215
29
telephone company OR UTILITY or THE holding company. Control is 1,217
presumed to exist if any person, directly or indirectly, owns, 1,218
controls, holds the power to vote, or holds with the power to 1,219
vote proxies which THAT constitute, twenty per cent or more of 1,220
the total voting power of the domestic telephone company OR 1,222
UTILITY or THE holding company. 1,223
(2) "ELECTRIC UTILITY" HAS THE SAME MEANING AS IN SECTION 1,225
4928.07 OF THE REVISED CODE. 1,226
(3) "Holding company" excludes any securities broker 1,228
performing the usual and customary broker's function. 1,229
(3)(4) "Telephone company" means any company described in 1,231
division (A)(2) of section 4905.03 of the Revised Code that is a 1,232
public utility under section 4905.02 of the Revised Code and 1,233
provides basic local exchange service, as defined in section 1,234
4927.01 of the Revised Code. 1,235
(B) No person shall acquire control, directly or 1,237
indirectly, of a domestic telephone company or a holding company 1,238
controlling a domestic telephone company OR OF A DOMESTIC 1,239
ELECTRIC UTILITY OR A HOLDING COMPANY CONTROLLING A DOMESTIC 1,240
ELECTRIC UTILITY unless that person obtains the prior approval of 1,242
the public utilities commission under this section. To obtain 1,243
approval the person shall file an application with the commission 1,244
demonstrating that the acquisition will promote public 1,245
convenience and result in the provision of adequate service for a 1,246
reasonable rate, rental, toll, or charge. The application shall 1,247
contain such information as the commission may require. If the 1,248
commission considers a hearing necessary, it may fix a time and 1,249
place for hearing. If, after review of the application and after 1,250
any necessary hearing, the commission is satisfied that approval 1,251
of the application will promote public convenience and result in 1,252
the provision of adequate service for a reasonable rate, rental, 1,253
toll, or charge, the commission shall approve the application and 1,254
make such order as it considers proper. If the commission fails 1,255
to issue an order within thirty days of the filing of the 1,256
30
application, or within twenty days of the conclusion of a 1,257
hearing, if one is held, the application shall be deemed approved 1,258
by operation of law. 1,259
(C) The public utilities commission shall adopt such rules 1,261
as it finds necessary to carry out this section. 1,262
(D) If it appears to the public utilities commission or to 1,264
any person who THAT may be adversely affected that any person is 1,265
engaged in or about to engage in any acts or practices that would 1,266
violate this section, the attorney general, when directed to do 1,267
so by the commission, or the person claiming to be adversely 1,268
affected may bring an action in any court of common pleas that 1,269
has jurisdiction and venue to enjoin such acts or practices and 1,270
enforce compliance with this section. Upon a proper showing, the 1,271
court shall grant, without bond, a restraining order or temporary 1,272
or permanent injunction. 1,273
(E) The courts of this state have jurisdiction over every 1,275
person not a resident of or domiciled or authorized to do 1,276
business in this state who THAT files, or is prohibited from 1,277
acting without first filing, an application under division (B) of 1,279
this section, and over all actions involving such person arising 1,280
out of violations of this section. The secretary of state shall 1,281
be the agent for service of process for any such person in any 1,282
action, suit, or proceeding arising out of violations of this 1,283
section. Copies of all such lawful process shall be served upon 1,284
the secretary of state and transmitted by certified mail, with 1,285
return receipt requested, by the secretary of state to such 1,286
person at his THE PERSON'S last known address. 1,287
Sec. 4905.42. To determine whether it should issue the 1,296
order referred to in section 4905.40 of the Revised Code, the 1,297
public utilities commission shall hold such hearings, make such 1,298
inquiries or investigations, and examine such witnesses, books, 1,299
papers, documents, and contracts as it deems proper. Within 1,300
forty-five days after an electric light company submits an 1,301
application under that section pertaining to the issuance of 1,302
31
stocks, bonds, notes, or other evidence of indebtedness to 1,303
acquire, construct, or install a compliance facility, the 1,304
commission shall complete its review and shall render a decision 1,305
on the application. 1,306
An order issued under this section shall fix the amount, 1,308
character, and terms of any issue of stocks, bonds, notes, or 1,309
other evidence of indebtedness, and the purposes to which the 1,310
issue or any proceeds of it shall be applied, shall recite that 1,311
the money, property, consideration, or labor procured or to be 1,312
procured or paid for by such issue was or is reasonably required 1,313
for the purposes specified in the order, and shall recite the 1,314
value of any property, consideration, or service, as found by the 1,315
commission, for which in whole or in part such issue is proposed 1,316
to be made. 1,317
No public utility or railroad shall, without the consent of 1,319
the commission, apply any such issue or its proceeds to any 1,320
purpose not specified in the order. Such public utilities or 1,321
railroads may issue notes for proper corporate purposes, payable 1,322
at periods of not more than twelve months, without the consent of 1,323
the commission, but no such notes shall, in whole or in part, 1,324
directly or indirectly, be refunded by any issue of stocks or 1,325
bonds, or by any evidence of indebtedness, running for more than 1,326
twelve months, without the consent of the commission. 1,327
All stocks, bonds, notes, or other evidence of indebtedness 1,329
issued by any public utility or railroad without the permission 1,330
of the commission are void. No interstate railroad or public 1,331
utility shall be required to apply to the commission for 1,332
authority to issue stocks, bonds, notes, or other evidence of 1,333
indebtedness for the acquisition of property, the construction, 1,334
completion, extension, or improvement of its facilities, or the 1,335
improvement or maintenance of its service outside this state, or 1,336
for authority for the discharge or refunding of obligations 1,337
issued or incurred for such purposes or the reimbursement of 1,338
moneys actually expended for such purposes outside this state. 1,339
32
No pipe-line company--when engaged in the business of 1,341
transporting oil through pipes or tubing, either wholly or 1,342
partly--within this state, shall be required to apply to the 1,343
commission for authority to issue stocks, bonds, notes, or other 1,344
evidence of indebtedness for the purpose of acquiring or paying 1,345
for stocks, bonds, notes, or other evidence of indebtedness of 1,346
any other corporation organized under the laws of this state, any 1,347
other state, the District of Columbia, the United States, any 1,348
territory of the United States, any foreign country, or 1,349
otherwise. 1,350
No company that is both a pipe-line company engaged as such 1,352
in the business of transporting natural gas through pipes or 1,353
tubing in interstate commerce, wholly or partly within this 1,354
state, and a natural gas company engaged as such in this state 1,355
solely in the business of supplying natural gas to gas companies 1,356
or to natural gas companies shall be required to apply to the 1,357
commission for authority to issue stocks, bonds, notes, or other 1,358
evidence of indebtedness. 1,359
Sec. 4905.46. (A) No public utility or railroad shall 1,368
declare any stock, bond, or scrip dividend or distribution, or 1,369
divide the proceeds of the sale of any stock, bond, or scrip 1,370
among its stockholders, unless it is authorized to do so by the 1,371
public utilities commission. 1,372
(B) Unless it is authorized to do so by the commission: 1,374
(1) No public utility which is a part of an electric 1,376
utility holding company system exempt under section 3(a)(1) or 1,377
(2) of the "Public Utility Holding Company Act of 1935," 49 Stat. 1,378
803, 15 U.S.C. 79c, and the rules and regulations promulgated 1,379
thereunder, shall invest in, lend funds to, guarantee the 1,380
obligations of, otherwise finance, or transfer assets to any 1,381
company which is not a public utilty as defined by Ohio law or 1,382
the law of any other state, and which is affiliated or associated 1,383
with it in the same holding company system. This limitation on 1,384
investments, loans, guarantees, or other financing does not apply 1,385
33
to transactions in the ordinary course of the companies' public 1,386
utilities business operations in which one entity acts on behalf 1,387
of, or with respect to, another within the holding company 1,388
system. 1,389
(2) No electric utility holding company exempt under 1,391
section 3(a)(1) or (2) of the "Public Utility Holding Company Act 1,392
of 1935," 49 Stat. 803, 15 U.S.C. 79c, and the rules and 1,393
regulations promulgated thereunder, which directly owns, controls 1,394
or holds with the power to vote ten per cent or more of the 1,395
outstanding voting securities of an electric light company, or is 1,396
itself an electric light company, shall make any investment, 1,397
including loans, in any subsidiary, affiliate, or associate that 1,398
is not a public utility as defined by Ohio law or the law of 1,399
another state, that would cause the company's capital investments 1,400
in all such non-utility subsidiaries, affiliates, and associates 1,401
to exceed, at the time such proposed investment is made, fifteen 1,402
per cent or more of the aggregate capitalization of the holding 1,403
company on a consolidated basis. This limitation, however, does 1,404
not extend to investments made with funds provided from 1,405
nonutility subsidiaries, affiliates, or associates. 1,406
(C) The commission shall not approve a transfer of assets 1,408
subject to division (B)(1) of this section for at least 1,409
forty-five days after an application for approval has been filed 1,410
with it, in order to afford interested persons the opportunity to 1,411
submit objections to approval of the application and to request a 1,412
public hearing. If the commission, after such forty-five day 1,413
period but within one hundred thirty-five days after the 1,414
application was filed, does not disapprove the application, the 1,415
application shall be deemed approved. 1,416
(D) Nothing in division (B) or (C) of this section affects 1,417
the authority of a public utility or railroad to declare and pay 1,418
interest or dividends on, or otherwise act with respect to, 1,419
stocks, bonds, notes, or other evidences of indebtedness once 1,420
issued pursuant to sections 4905.40 to 4905.42 of the Revised 1,421
34
Code. 1,422
(E) No telephone company shall declare any cash, stock, 1,424
bond, or scrip dividend or distribution, or divide the proceeds 1,425
of the sale of any stock, bond, or scrip among its common or 1,426
voting shareholders, while such telephone company is in violation 1,427
of any order of the commission, or against which telephone 1,428
company there exists a finding of inadequate service, except when 1,429
the public utilities commission makes a finding after hearing and 1,430
notice, as provided in section 4905.26 of the Revised Code, that 1,431
such dividend or distribution will in no way postpone compliance 1,432
with any order or affect the adequacy of service rendered or to 1,433
be rendered by such telephone company. Provided that if IF a 1,434
telephone company, while in violation of any order of the 1,435
commission, or against which there exists a finding of inadequate 1,436
service, desires to declare a cash dividend or distribution 1,437
without the consent of the commission, it shall set aside in a 1,438
special reserve fund a sum of money equivalent to the amount 1,439
necessary to pay the proposed dividend or distribution, which, 1,440
while said company is in violation of said order or against which 1,441
such finding exists, may be expended only with the consent of the 1,442
commission. 1,443
Sec. 4905.70. The public utilities commission shall 1,452
initiate programs that will promote and encourage conservation of 1,453
energy and a reduction in the growth rate of energy consumption, 1,454
promote economic efficiencies, and take into account long-run 1,455
incremental costs. Notwithstanding sections 4905.31, 4905.33, 1,456
4905.35, and 4909.151 of the Revised Code, the public utilities 1,457
commission shall examine and issue written findings on the 1,458
declining block rate structure, lifeline rates, long-run 1,459
incremental pricing, peak load and off-peak pricing, time of day 1,460
and seasonal pricing, interruptible load pricing, and single rate 1,461
pricing where rates do not vary because of classification of 1,462
customers or amount of usage. The public utilities commission 1,463
shall establish criteria for the investigation, identification, 1,464
35
and remedy of the existence of any excess capacity, exclusive of 1,465
capacity used primarily for Ohio coal research and development, 1,466
as defined in section 1555.01 of the Revised Code, the costs of 1,467
which have been allowed for recovery under section 4905.301 or 1,468
4909.15 of the Revised Code, in the generating systems of 1,469
electric light companies. The public utilities commission, by a 1,470
rule adopted no later than October 1, 1977, and effective and 1,471
applicable no later than November 1, 1977, shall require each 1,472
electric light company to offer to such of their residential 1,473
customers whose residences are primarily heated by electricity 1,474
the option of their usage being metered by a demand or load 1,475
meter. A UNDER THE RULE, A customer who selects such option may, 1,477
under the rule, be required by the company, where no such meter 1,478
is already installed, to pay for such meter and its installation. 1,479
The rule shall require each company to bill such of its customers 1,480
who select such option for those kilowatt hours in excess of a 1,481
prescribed number of kilowatt hours per kilowatt of billing 1,482
demand, at a rate per kilowatt hour that reflects the lower cost 1,483
of providing service during off-peak periods. 1,484
Sec. 4906.10. (A) The power siting board shall render a 1,493
decision upon the record either granting or denying the 1,494
application as filed, or granting it upon such terms, conditions, 1,495
or modifications of the construction, operation, or maintenance 1,496
of the major utility facility as the board considers appropriate. 1,497
The certificate shall be conditioned upon the facility being in 1,498
compliance with standards and rules adopted under sections 1,499
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 1,500
6111. of the Revised Code. The period of initial operation under 1,502
a certificate shall expire two years after the date on which 1,503
electric power is first generated by the facility. During the 1,504
period of initial operation, the facility shall be subject to the 1,505
enforcement and monitoring powers of the director of
environmental protection under Chapters 3704., 3734., and 6111. 1,506
of the Revised Code and to the emergency provisions under those 1,508
36
chapters. If a major utility facility constructed in accordance 1,509
with the terms and conditions of its certificate is unable to 1,510
operate in compliance with all applicable requirements of state 1,511
laws, rules, and standards pertaining to air pollution, the 1,512
facility may apply to the director of environmental protection 1,513
for a conditional operating permit under division (G) of section 1,514
3704.03 of the Revised Code and the rules adopted thereunder. 1,515
The operation of a major utility facility in compliance with a 1,516
conditional operating permit is not in violation of its 1,517
certificate. After the expiration of the period of initial 1,518
operation of a major utility facility, the facility shall be 1,519
under the jurisdiction of the environmental protection agency and 1,520
shall comply with all laws, rules, and standards pertaining to 1,521
air pollution, water pollution, and solid and hazardous waste 1,522
disposal.
The board shall not grant a certificate for the 1,524
construction, operation, and maintenance of a major utility 1,525
facility, either as proposed or as modified by the board, unless 1,526
it finds and determines all of the following: 1,527
(1) The basis of the need for the facility;. IN THE CASE 1,529
OF A MAJOR UTILITY FACILITY DESCRIBED IN DIVISION (B)(1) OF 1,530
SECTION 4906.01 OF THE REVISED CODE TO BE CONSTRUCTED ON OR AFTER 1,531
THE EFFECTIVE DATE OF THIS AMENDMENT, THE BOARD SHALL PRESUME THE 1,533
NEED FOR THE FACILITY AS THAT NEED IS STATED IN AN APPLICATION
PURSUANT TO DIVISION (A)(3) OF SECTION 4906.06 OF THE REVISED 1,534
CODE.
(2) The nature of the probable environmental impact; 1,536
(3) That the facility represents the minimum adverse 1,538
environmental impact, considering the state of available 1,539
technology and the nature and economics of the various 1,540
alternatives, and other pertinent considerations; 1,541
(4) In the case of an electric transmission line, that the 1,543
facility is consistent with regional plans for expansion of the 1,544
electric power grid of the electric systems serving this state 1,545
37
and interconnected utility systems and that the facility will 1,546
serve the interests of electric system economy and reliability; 1,547
(5) That the facility will comply with Chapters 3704., 1,549
3734., and 6111. of the Revised Code and all rules and standards 1,550
adopted under those chapters and under sections 1501.33, 1501.34, 1,551
and 4561.32 of the Revised Code. In determining whether the 1,552
facility will comply with all rules and standards adopted under 1,553
section 4561.32 of the Revised Code, the board shall consult with 1,554
the office of aviation of the division of multi-modal planning 1,556
and programs of the department of transportation under section 1,558
4561.341 of the Revised Code.
(6) That the facility will serve the public interest, 1,560
convenience, and necessity; 1,561
(7) In addition to the provisions contained in divisions 1,563
(A)(1) to (6) of this section and rules adopted under those 1,565
divisions, what its impact will be on the viability as 1,566
agricultural land of any land in an existing agricultural 1,567
district established under Chapter 929. of the Revised Code that 1,568
is located within the site and alternative site of the proposed 1,569
major utility facility. Rules adopted to evaluate impact under 1,570
division (A)(7) of this section shall not require the 1,571
compilation, creation, submission, or production of any 1,572
information, document, or other data pertaining to land not 1,573
located within the site and alternative site. 1,574
(8) That the facility incorporates maximum feasible water 1,576
conservation practices as determined by the board, considering 1,577
available technology and the nature and economics of the various 1,578
alternatives. 1,579
(B) If the board determines that the location of all or a 1,581
part of the proposed facility should be modified, it may 1,582
condition its certificate upon that modification, provided that 1,583
the municipal corporations and counties, and persons residing 1,584
therein, affected by the modification shall have been given 1,585
reasonable notice thereof. 1,586
38
(C) A copy of the decision and any opinion issued 1,588
therewith shall be served upon each party. 1,589
Sec. 4909.01. As used in this chapter: 1,599
(A) "Public utility" has the meaning set forth in section 1,601
4905.02 of the Revised Code. 1,602
(B) "Telegraph company," "telephone company," "electric 1,604
light company," "gas company," "natural gas company," "pipeline 1,605
company," "water-works company," "sewage disposal system 1,606
company," "heating or cooling company," "messenger company," 1,607
"street railway company," "suburban railroad company," 1,608
"interurban railroad company," and "motor-propelled vehicle" have 1,609
the meanings set forth in section 4905.03 of the Revised Code. 1,610
(C) "Railroad" has the meaning set forth in section 1,612
4907.02 of the Revised Code. 1,613
(D) "Motor transportation company" has the meaning set 1,615
forth in sections 4905.03 and 4921.02 of the Revised Code. 1,616
(E) "Trailers," "public highway," "fixed termini," 1,618
"regular route," and "irregular route" have the meanings set 1,619
forth in section 4921.02 of the Revised Code. 1,620
(F) "Private motor carrier," "contract carrier by motor 1,622
vehicle," "motor vehicle," and "charter party trip" have the 1,623
meanings set forth in section 4923.02 of the Revised Code. 1,624
(G) "Delivery cost" and "acquisition cost" have the 1,626
meanings set forth in section 4905.01 of the Revised Code. 1,627
(H) "Compliance facility" has the meaning set forth in 1,629
section 4905.01 of the Revised Code. 1,630
Nothing in this section shall be construed to mean that an 1,632
electric light company operated not for profit or one that is 1,633
owned or operated by a municipal corporation is subject to 1,634
section 4909.191 of the Revised Code. 1,635
Sec. 4909.05. As used in this section: 1,644
(A) A "lease purchase agreement" is an agreement pursuant 1,646
to which a public utility leasing property is required to make 1,647
rental payments for the term of the agreement and either the 1,648
39
utility is granted the right to purchase the property upon the 1,649
completion of the term of the agreement and upon the payment of 1,650
an additional fixed sum of money or title to the property vests 1,651
in the utility upon the making of the final rental payment. 1,652
(B) A "leaseback" is the sale or transfer of property by a 1,654
public utility to another person contemporaneously followed by 1,655
the leasing of the property to the public utility on a long-term 1,656
basis. 1,657
The public utilities commission shall prescribe the form 1,659
and details of the valuation report of the property of each 1,660
public utility or railroad in the state. Such report shall 1,661
include all the kinds and classes of property, with the value of 1,662
each, owned or held by each public utility or railroad used and 1,663
useful for the service and convenience of the public. Such 1,664
report shall contain the following facts in detail: 1,665
(C) The original cost of each parcel of land owned in fee 1,667
and in use at the date certain determined by the commission; and 1,668
also a statement of the conditions of acquisition, whether by 1,669
direct purchase, by donation, by exercise of the power of eminent 1,670
domain, or otherwise; 1,671
(D) The actual acquisition cost, not including periodic 1,673
rental fees, of rights-of-way, trailways, or other land rights 1,674
held by virtue of easements, leases, or other forms of grants of 1,675
rights as to usage; 1,676
(E) The original cost of all other kinds and classes of 1,678
property used and useful in the rendition of service to the 1,679
public. Such original costs of property, other than land owned 1,680
in fee, shall be the cost, as determined to be reasonable by the 1,681
commission, to the person that first dedicated the property to 1,682
the public use and shall be set forth in property accounts and 1,683
subaccounts as prescribed by the commission. To the extent that 1,684
the costs of property comprising a coal research and development 1,685
facility, as defined in section 1555.01 of the Revised Code, or a 1,686
coal development project, as defined in section 1551.30 of the 1,687
40
Revised Code, have been allowed for recovery as Ohio coal 1,688
research and development costs under section 4905.301, 4905.304, 1,689
or 4909.191 of the Revised Code, none of those costs shall be 1,690
included as a cost of property under this division. 1,691
(F) The cost of property constituting all or part of a 1,693
project leased to or used by the utility under Chapter 165., 1,694
3706., 6121., or 6123. of the Revised Code and not included under 1,695
division (E) of this section exclusive of any interest directly 1,696
or indirectly paid by the utility with respect thereto whether or 1,697
not capitalized; 1,698
(G) In the discretion of the commission, the cost to a 1,700
utility, in an amount determined to be reasonable by the 1,701
commission, of property constituting all or part of a project 1,702
leased to the utility under a lease purchase agreement or a 1,703
leaseback and not included under division (E) of this section 1,704
exclusive of any interest directly or indirectly paid by the 1,705
utility with respect thereto whether or not capitalized; 1,706
(H) The proper and adequate reserve for depreciation, as 1,708
determined to be reasonable by the commission; 1,709
(I) Any sums of money or property that the company may 1,711
have received as total or partial defrayal of the cost of its 1,712
property; 1,713
(J) The valuation of the property of the company, which 1,715
shall be the sum of the amounts contained in the report pursuant 1,716
to divisions (C), (D), (E), (F), and (G) of this section, less 1,717
the sum of the amounts contained in the report pursuant to 1,718
divisions (H) and (I) of this section. 1,719
The report shall show separately the property used and 1,721
useful to such public utility or railroad in the furnishing of 1,722
the service to the public, and the property held by such public 1,723
utility or railroad for other purposes, and such other items as 1,724
the commission considers proper. The commission may require an 1,725
additional report showing the extent to which the property is 1,726
used and useful. Such reports shall be filed in the office of 1,727
41
the commission for the information of the governor and the 1,728
general assembly. 1,729
Sec. 4909.15. (A) The public utilities commission, when 1,738
fixing and determining just and reasonable rates, fares, tolls, 1,739
rentals, and charges, shall determine: 1,740
(1) The valuation as of the date certain of the property 1,742
of the public utility used and useful in rendering the public 1,743
utility service for which rates are to be fixed and determined. 1,744
The valuation so determined shall be the total value as set forth 1,745
in division (J) of section 4909.05 of the Revised Code, and a 1,746
reasonable allowance for materials and supplies and cash working 1,747
capital, as determined by the public utilities commission. 1,748
The commission may, in its discretion, MAY include in the 1,750
valuation a reasonable allowance for construction work in 1,751
progress but, in no event, may such an allowance be made by the 1,752
commission until it has determined that the particular 1,753
construction project is at least seventy-five per cent complete. 1,754
In the case of a construction project involving the 1,756
installation, renovation, or maintenance of pollution control 1,757
equipment, the commission may include the project in the 1,758
valuation as construction work in progress as of the date that 1,759
the particular construction project is at least seventy-five per 1,760
cent complete. 1,761
As used in this division, "pollution control equipment" 1,763
means any construction project undertaken, in whole or in part, 1,764
to reduce sulfur or nitrous oxide emissions to levels established 1,765
by federal, state, or local statute, law, ordinance, regulation, 1,766
or order. The commission shall determine by rule what projects 1,767
qualify as pollution control equipment. 1,768
In determining the percentage completion of a particular 1,770
construction project, the commission shall consider, among other 1,771
relevant criteria, the per cent of time elapsed in construction; 1,772
the per cent of construction funds, excluding allowance for funds 1,773
used during construction, expended, or obligated to such 1,774
42
construction funds budgeted where all such funds are adjusted to 1,775
reflect current purchasing power; and any physical inspection 1,776
performed by or on behalf of any party, including the 1,777
commission's staff. 1,778
A reasonable allowance for construction work in progress 1,780
other than for construction projects involving the installation, 1,781
renovation, or maintenance of pollution control equipment shall 1,782
not exceed ten per cent of the total valuation as stated in this 1,783
division, not including such allowance for construction work in 1,784
progress. 1,785
The allowance for construction work in progress for 1,787
construction projects involving the installation, renovation, or 1,788
maintenance of pollution control equipment shall be the dollar 1,789
value of the project and shall not exceed, together with any 1,790
other allowance for construction work in progress granted under 1,791
this division, twenty per cent of the total valuation as stated 1,792
in this division, not including such allowance for construction 1,793
work in progress. 1,794
Where the commission permits an allowance for construction 1,796
work in progress, the dollar value of the project or portion 1,797
thereof included in the valuation as construction work in 1,798
progress shall not be included in the valuation as plant in 1,799
service until such time as the total revenue effect of the 1,800
construction work in progress allowance is offset by the total 1,801
revenue effect of the plant in service exclusion. Carrying 1,802
charges calculated in a manner similar to allowance for funds 1,803
used during construction shall accrue on that portion of the 1,804
project in service but not reflected in rates as plant in 1,805
service, and such accrued carrying charges shall be included in 1,806
the valuation of the property at the conclusion of the offset 1,807
period for purposes of division (J) of section 4909.05 of the 1,808
Revised Code. 1,809
From and after April 10, 1985, no allowance for 1,811
construction work in progress as it relates to a particular 1,812
43
construction project shall be reflected in rates for a period 1,813
exceeding forty-eight consecutive months commencing on the date 1,814
the initial rates reflecting such allowance become effective, 1,815
except as otherwise provided in this division. 1,816
In the case of a nuclear generating facility that has not 1,818
been granted a full construction permit by the nuclear regulatory 1,819
commission on or before April 10, 1985, the utility, within six 1,820
months after the granting of such permit, shall submit to the 1,821
public utilities commission a projected in service date for such 1,822
facility. Thereafter, no allowance for construction work in 1,823
progress as it relates to such nuclear generating facility shall 1,824
be reflected in rates for a period exceeding forty-eight 1,825
consecutive months commencing on the date the initial rates 1,826
reflecting such allowance become effective, or for a period 1,827
commencing on the date the initial rates reflecting such 1,828
allowance become effective and ending on the projected in service 1,829
date previously submitted to the commission, whichever period 1,830
expires first. 1,831
The applicable maximum period in rates for an allowance for 1,833
construction work in progress as it relates to a particular 1,834
construction project shall be tolled if, and to the extent, a 1,835
delay in the in-service date of the project is caused by the 1,836
action or inaction of any federal, state, county, or municipal 1,837
agency having jurisdiction, where such action or inaction relates 1,838
to a change in a rule, standard, or approval of such agency, and 1,839
where such action or inaction is not the result of the failure of 1,840
the utility to reasonably endeavor to comply with any rule, 1,841
standard, or approval prior to such change. 1,842
In the event that such period expires before the project 1,844
goes in INTO service, the commission shall EXCLUDE, from the date 1,846
of expiration, exclude the allowance for the project as 1,847
construction work in progress from rates, except that the 1,848
commission may extend the expiration date up to twelve months for 1,849
good cause shown. 1,850
44
In the event that a utility has permanently canceled, 1,852
abandoned, or terminated construction of a project for which it 1,853
was previously permitted a construction work in progress 1,854
allowance, the commission shall immediately SHALL exclude the 1,855
allowance for the project from the valuation. 1,857
In the event that a construction work in progress project 1,859
previously included in the valuation is removed from the 1,860
valuation pursuant to this division, any revenues collected by 1,861
the utility from its customers after April 10, 1985, which THAT 1,862
resulted from such prior inclusion shall be offset against future 1,863
revenues over the same period of time as the project was included 1,864
in the valuation as construction work in progress. The total 1,865
revenue effect of such offset shall not exceed the total revenues 1,866
previously collected. 1,867
In no event shall the total revenue effect of any offset or 1,869
offsets provided herein UNDER DIVISION (A)(1) OF THIS SECTION 1,871
exceed the total revenue effect of any construction work in 1,872
progress allowance.
(2) A fair and reasonable rate of return to the utility on 1,874
the valuation as determined in division (A)(1) of this section; 1,875
(3) The dollar annual return to which the utility is 1,877
entitled by applying the fair and reasonable rate of return as 1,878
determined under division (A)(2) of this section to the valuation 1,879
of the utility determined under division (A)(1) of this section; 1,880
(4) The cost to the utility of rendering the public 1,882
utility service for the test period less the total of any 1,883
interest on cash or credit refunds paid, pursuant to section 1,884
4909.42 of the Revised Code, by the utility during the test 1,885
period. 1,886
(a) Any depreciation expense of a compliance facility 1,888
shall be calculated under division (A)(4) of this section on the 1,889
basis of the useful service life of the compliance facility or 1,890
the remaining useful life of the electric generating unit in 1,891
connection with which the compliance facility was acquired, 1,892
45
constructed, or installed, whichever is the shorter time. 1,893
Division (A)(4)(a) of this section applies only to depreciation 1,894
expense of a compliance facility contained in the environmental 1,895
compliance plan of the electric light company approved under 1,896
Chapter 4913. of the Revised Code or in its compliance strategy 1,897
examined under section 4909.158 of the Revised Code. 1,898
(b) Federal, state, and local taxes imposed on or measured 1,901
by net income may, in the discretion of the commission, be 1,902
computed by the normalization method of accounting, provided the 1,903
utility maintains accounting reserves that reflect differences 1,904
between taxes actually payable and taxes on a normalized basis, 1,905
provided that no determination as to the treatment in the 1,906
rate-making process of such taxes shall be made that will result 1,908
in loss of any tax depreciation or other tax benefit to which the 1,909
utility would otherwise be entitled, and further provided that 1,910
such tax benefit as redounds to the utility as a result of such a 1,911
computation may not be retained by the company, used to fund any 1,912
dividend or distribution, or utilized for any purpose other than 1,913
the defrayal of the operating expenses of the utility and the 1,914
defrayal of the expenses of the utility in connection with 1,915
construction work.
(c)(b) The amount of any tax credits granted to an 1,917
electric light company under section 5727.391 5733.39 of the 1,918
Revised Code shall not be retained by the company, used to fund 1,920
any dividend or distribution, or utilized for any purposes other 1,921
than the defrayal of the allowable operating expenses of the 1,922
company and the defrayal of the allowable expenses of the company 1,923
in connection with the installation, acquisition, construction, 1,924
or use of a compliance facility. The amount of the tax credits 1,925
granted to an electric light company under that section shall be 1,926
returned to its customers within three years after initially 1,927
claiming the credit through an offset to the company's rates or 1,928
fuel component, as determined by the commission, as set forth in 1,929
schedules filed by the company under section 4905.30 of the 1,930
46
Revised Code. As used in division (A)(4)(c) of this section, 1,931
"compliance facility" has the same meaning as in section 5727.391 1,932
5733.39 of the Revised Code. 1,934
(B) The public utilities commission shall compute the 1,936
gross annual revenues to which the utility is entitled by adding 1,937
the dollar amount of return under division (A)(3) of this section 1,938
to the cost of rendering the public utility service for the test 1,939
period under division (A)(4) of this section. 1,940
(C) The test period, unless otherwise ordered by the 1,942
public utilities commission, shall be the twelve-month period 1,943
beginning six months prior to the date the application is filed 1,944
and ending six months subsequent to that date. In no event shall 1,945
the test period end more than nine months subsequent to the date 1,946
the application is filed. The revenues and expenses of the 1,947
utility shall be determined during the test period. The date 1,948
certain shall be not later than the date of filing. 1,949
(D) When the public utilities commission is of the 1,951
opinion, after hearing and after making the determinations under 1,952
divisions (A) and (B) of this section, that any rate, fare, 1,953
charge, toll, rental, schedule, classification, or service, or 1,954
any joint rate, fare, charge, toll, rental, schedule, 1,955
classification, or service rendered, charged, demanded, exacted, 1,956
or proposed to be rendered, charged, demanded, or exacted, is, or 1,957
will be, unjust, unreasonable, unjustly discriminatory, unjustly 1,958
preferential, or in violation of law, that the service is, or 1,959
will be, inadequate, or that the maximum rates, charges, tolls, 1,960
or rentals chargeable by any such public utility are insufficient 1,961
to yield reasonable compensation for the service rendered, and 1,962
are unjust and unreasonable, the commission shall: 1,963
(1) With due regard among other things to the value of all 1,965
property of the public utility actually used and useful for the 1,966
convenience of the public as determined under division (A)(1) of 1,967
this section, excluding from such value the value of any 1,968
franchise or right to own, operate, or enjoy the same in excess 1,969
47
of the amount, exclusive of any tax or annual charge, actually 1,970
paid to any political subdivision of the state or county, as the 1,971
consideration for the grant of such franchise or right, and 1,972
excluding any value added to such property by reason of a 1,973
monopoly or merger, with due regard in determining the dollar 1,974
annual return under division (A)(3) of this section to the 1,975
necessity of making reservation out of the income for surplus, 1,976
depreciation, and contingencies, and; 1,977
(2) With due regard to all such other matters as are 1,979
proper, according to the facts in each case, 1,980
(a) Including a fair and reasonable rate of return 1,982
determined by the commission with reference to a cost of debt 1,983
equal to the actual embedded cost of debt of such public utility, 1,984
(b) But not including the portion of any periodic rental 1,986
or use payments representing that cost of property which THAT is 1,987
included in the valuation report under divisions (F) and (G) of 1,988
section 4909.05 of the Revised Code, fix and determine the just 1,989
and reasonable rate, fare, charge, toll, rental, or service to be 1,990
rendered, charged, demanded, exacted, or collected for the 1,991
performance or rendition of the service that will provide the 1,992
public utility the allowable gross annual revenues under division 1,993
(B) of this section, and order such just and reasonable rate, 1,994
fare, charge, toll, rental, or service to be substituted for the 1,995
existing one. After such determination and order no change in 1,996
the rate, fare, toll, charge, rental, schedule, classification, 1,997
or service shall be made, rendered, charged, demanded, exacted, 1,998
or changed by such public utility without the order of the 1,999
commission, and any other rate, fare, toll, charge, rental, 2,000
classification, or service is prohibited. 2,001
(E) Upon application of any person or any public utility, 2,003
and after notice to the parties in interest and opportunity to be 2,004
heard as provided in Chapters 4901., 4903., 4905., 4907., 4909., 2,005
4921., and 4923. of the Revised Code for other hearings, has been 2,006
given, the commission may rescind, alter, or amend an order 2,007
48
fixing any rate, fare, toll, charge, rental, classification, or 2,008
service, or any other order made by the commission. Certified 2,009
copies of such orders shall be served and take effect as provided 2,010
for original orders. 2,011
Sec. 4909.161. (A) Notwithstanding the provisions of 2,020
Chapters 4905. and 4909. of the Revised Code, the payment of any 2,022
type of increased excise tax levy shall be considered to be a 2,023
normal expense incurred by a public utility in the course of 2,024
rendering service to the public, and may be recovered as such in
accordance with an order of the public utilities commission. Any 2,025
public utility required to pay any such increased excise tax levy 2,026
may file with the public utilities commission revised rate 2,027
schedules which THAT will permit full recovery on an interim or 2,029
permanent basis in its rates, of the amount of any resultant 2,030
increased tax payments and the commission shall promptly act to
approve such schedules. 2,031
(B) NOTWITHSTANDING CHAPTERS 4905. AND 4909. OF THE 2,036
REVISED CODE, THE PAYMENT OF THE KILOWATT-HOUR TAX IMPOSED BY 2,039
SECTION 5727.81 OF THE REVISED CODE SHALL BE CONSIDERED A NORMAL 2,042
EXPENSE INCURRED BY AN ELECTRIC DISTRIBUTION UTILITY, AS DEFINED
IN SECTION 4928.01 OF THE REVISED CODE, IN THE COURSE OF 2,043
RENDERING SERVICE TO THE PUBLIC, AND MAY BE RECOVERED AS SUCH IN 2,044
ACCORDANCE WITH AN ORDER OF THE COMMISSION. AN ELECTRIC 2,045
DISTRIBUTION UTILITY REQUIRED TO PAY THE KILOWATT-HOUR TAX MAY 2,046
FILE WITH THE COMMISSION REVISED RATE SCHEDULES, CONSISTENT WITH 2,047
CHAPTERS 4905. AND 4909. AND DIVISION (A)(6) OF SECTION 4928.34 2,049
OF THE REVISED CODE, THAT WILL PERMIT FULL RECOVERY ON A 2,051
PERMANENT BASIS IN ITS RATES, OF THE AMOUNT OF ANY RESULTANT TAX 2,052
PAYMENTS, AFTER TAKING INTO ACCOUNT ANY REDUCTIONS OF TAXES IN 2,054
ITS RATES RESULTING FROM SUB. S.B. NO. 3 OF THE 123rd GENERAL 2,056
ASSEMBLY, AND THE COMMISSION SHALL ACT PROMPTLY TO APPROVE THOSE 2,058
SCHEDULES.
Sec. 4911.18. (A) For the sole purpose of maintaining and 2,067
administering the office of the consumers' counsel and exercising 2,068
49
the powers of the consumers' counsel under this chapter, an 2,069
amount equal to the appropriation to the office of the consumers' 2,070
counsel in each fiscal year shall be apportioned among and 2,071
assessed against the EACH public utilities UTILITY within the 2,073
state, as defined in section 4911.01 of the Revised Code, by 2,074
first computing an assessment as though it were to be made in 2,075
proportion to the intrastate gross earnings or receipts of the 2,076
public utilities companies UTILITY for the calendar year next 2,077
preceding that in which the assessments are ASSESSMENT IS made, 2,079
excluding earnings or receipts from sales to other public 2,081
utilities for resale. THE OFFICE MAY INCLUDE IN THAT FIRST 2,082
COMPUTATION ANY AMOUNT OF A RAILROAD'S OR PUBLIC UTILITY'S 2,083
INTRASTATE GROSS EARNINGS OR RECEIPTS UNDERREPORTED IN A PRIOR 2,084
YEAR. IN ADDITION TO WHATEVER PENALTIES APPLY UNDER THE REVISED 2,085
CODE TO SUCH UNDERREPORTING, THE OFFICE SHALL ASSESS THE RAILROAD 2,087
OR PUBLIC UTILITY INTEREST AT THE RATE STATED IN DIVISION (A) OF 2,088
SECTION 1343.01 OF THE REVISED CODE. THE OFFICE SHALL DEPOSIT 2,090
ANY INTEREST SO COLLECTED INTO THE CONSUMERS' COUNSEL OPERATING
FUND. 2,091
The final computation of the assessment shall consist of 2,093
imposing upon each company PUBLIC UTILITY whose assessment under 2,094
the first computation would have been fifty dollars or less an 2,096
assessment of fifty dollars and recomputing the assessment of the 2,097
remaining companies by apportioning an amount equal to the 2,098
appropriation to the office of consumers' counsel in each fiscal 2,099
year less the total amount to be recovered from those paying the 2,100
minimum assessment, in proportion to the intrastate gross 2,101
earnings or receipts of the remaining companies for the calendar 2,102
year next preceding that in which the assessments are made, 2,103
excluding earnings or receipts from sales to other public 2,104
utilities for resale. 2,105
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 2,107
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 2,108
ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF THE REVISED 2,109
50
CODE, OR AN ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 2,110
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 2,111
4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE THOSE 2,113
SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 2,114
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 2,115
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE PUBLIC 2,116
UTILITIES COMMISSION PURSUANT TO DIVISION (F) OF SECTION 4928.06 2,117
OF THE REVISED CODE, AND VERIFIED BY THE COMMISSION. 2,119
(B) On or before the first day of October in each year, 2,121
the OFFICE OF CONSUMERS' counsel shall notify each public utility 2,122
company of the sum assessed against it, whereupon payment shall 2,124
be made to the counsel, who shall deposit it into the state 2,125
treasury to the credit of the consumers' counsel operating fund, 2,127
which is hereby created. Any such amounts paid into the fund but 2,130
not expended by the counsel OFFICE shall be credited ratably by 2,132
the counsel OFFICE to the public utility companies which 2,134
UTILITIES THAT pay more than the minimum assessment, according to 2,136
the respective portions of such sum assessable against them for 2,137
the ensuing calendar year, after first deducting any deficits
accumulated from prior years. The assessments for such calendar 2,138
year shall be reduced correspondingly. 2,139
(C) Within five days after the beginning of each fiscal 2,141
year, the director of budget and management shall transfer from 2,142
the general revenue fund to the consumers' counsel operating fund 2,143
an amount sufficient for maintaining and administering the office 2,144
of the consumers' counsel and exercising the powers of the 2,145
consumers' counsel under this chapter during the first four 2,146
months of the fiscal year. Not later than the thirty-first day 2,147
of December of the fiscal year, the same amount shall be 2,149
transferred back to the general revenue fund from the consumers' 2,150
counsel operating fund.
(D) AS USED IN THIS SECTION, "PUBLIC UTILITY" INCLUDES, IN 2,152
ADDITION TO AN ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF 2,153
THE REVISED CODE, AN ELECTRIC SERVICES COMPANY, AN ELECTRIC 2,155
51
COOPERATIVE, OR A GOVERNMENTAL AGGREGATOR SUBJECT TO
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE 2,157
EXTENT OF THE COMPANY'S, COOPERATIVE'S, OR AGGREGATOR'S
ENGAGEMENT IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE 2,158
SUPPLY IN THIS STATE OF ANY RETAIL ELECTRIC SERVICE FOR WHICH IT 2,160
MUST BE SO CERTIFIED.
Sec. 4928.01. (A) AS USED IN THIS CHAPTER: 2,162
(1) "ANCILLARY SERVICE" MEANS ANY FUNCTION NECESSARY TO 2,164
THE PROVISION OF ELECTRIC TRANSMISSION OR DISTRIBUTION SERVICE TO 2,165
A RETAIL CUSTOMER AND INCLUDES, BUT IS NOT LIMITED TO, 2,166
SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICES; REACTIVE 2,167
SUPPLY FROM GENERATION RESOURCES AND VOLTAGE CONTROL SERVICE; 2,168
REACTIVE SUPPLY FROM TRANSMISSION RESOURCES SERVICE; REGULATION 2,169
SERVICE; FREQUENCY RESPONSE SERVICE; ENERGY IMBALANCE SERVICE; 2,170
OPERATING RESERVE-SPINNING RESERVE SERVICE; OPERATING 2,171
RESERVE-SUPPLEMENTAL RESERVE SERVICE; LOAD FOLLOWING; BACK-UP 2,172
SUPPLY SERVICE; REAL-POWER LOSS REPLACEMENT SERVICE; DYNAMIC 2,173
SCHEDULING; SYSTEM BLACK START CAPABILITY; AND NETWORK STABILITY 2,174
SERVICE.
(2) "BILLING AND COLLECTION AGENT" MEANS A FULLY 2,176
INDEPENDENT AGENT, NOT AFFILIATED WITH OR OTHERWISE CONTROLLED BY 2,177
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,178
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,179
UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE EXTENT THAT THE 2,180
AGENT IS UNDER CONTRACT WITH SUCH UTILITY, COMPANY, COOPERATIVE,
OR AGGREGATOR SOLELY TO PROVIDE BILLING AND COLLECTION FOR RETAIL 2,182
ELECTRIC SERVICE ON BEHALF OF THE UTILITY COMPANY, COOPERATIVE, 2,183
OR AGGREGATOR.
(3) "CERTIFIED TERRITORY" MEANS THE CERTIFIED TERRITORY 2,185
ESTABLISHED FOR AN ELECTRIC SUPPLIER UNDER SECTIONS 4933.81 TO 2,186
4933.90 OF THE REVISED CODE AS AMENDED BY SUB. S.B. NO. 3 OF THE 2,188
123rd GENERAL ASSEMBLY. 2,189
(4) "COMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,191
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS COMPETITIVE AS 2,192
52
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,193
(5) "ELECTRIC COOPERATIVE" MEANS A NOT-FOR-PROFIT ELECTRIC 2,195
LIGHT COMPANY THAT BOTH IS OR HAS BEEN FINANCED IN WHOLE OR IN 2,196
PART UNDER THE "RURAL ELECTRIFICATION ACT OF 1936," 49 STAT. 2,200
1363, 7 U.S.C. 901, AND OWNS OR OPERATES FACILITIES IN THIS STATE 2,202
TO GENERATE, TRANSMIT, OR DISTRIBUTE ELECTRICITY, OR A 2,203
NOT-FOR-PROFIT SUCCESSOR OF SUCH COMPANY.
(6) "ELECTRIC DISTRIBUTION UTILITY" MEANS AN ELECTRIC 2,205
UTILITY THAT SUPPLIES AT LEAST RETAIL ELECTRIC DISTRIBUTION 2,206
SERVICE.
(7) "ELECTRIC LIGHT COMPANY" HAS THE SAME MEANING AS IN 2,208
SECTION 4905.03 OF THE REVISED CODE AND INCLUDES AN ELECTRIC 2,209
SERVICES COMPANY, BUT EXCLUDES ANY CUSTOMER-GENERATOR TO THE 2,211
EXTENT IT CONSUMES ELECTRICITY IT SO PRODUCES OR TO THE EXTENT IT 2,212
SELLS FOR RESALE ELECTRICITY IT SO PRODUCES. 2,213
(8) "ELECTRIC LOAD CENTER" HAS THE SAME MEANING AS IN 2,215
SECTION 4933.81 OF THE REVISED CODE. 2,216
(9) "ELECTRIC SERVICES COMPANY" MEANS AN ELECTRIC LIGHT 2,218
COMPANY THAT IS ENGAGED ON A FOR-PROFIT OR NOT-FOR-PROFIT BASIS 2,219
IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE SUPPLY OF ONLY 2,220
A COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,222
SERVICES COMPANY" INCLUDES A POWER MARKETER, POWER BROKER, 2,223
AGGREGATOR, OR INDEPENDENT POWER PRODUCER BUT EXCLUDES AN 2,224
ELECTRIC COOPERATIVE, MUNICIPAL ELECTRIC UTILITY, GOVERNMENTAL 2,226
AGGREGATOR, OR BILLING AND COLLECTION AGENT.
(10) "ELECTRIC SUPPLIER" HAS THE SAME MEANING AS IN 2,228
SECTION 4933.81 OF THE REVISED CODE. 2,229
(11) "ELECTRIC UTILITY" MEANS AN ELECTRIC LIGHT COMPANY 2,231
THAT IS ENGAGED ON A FOR-PROFIT BASIS IN THE BUSINESS OF 2,234
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE
OR IN THE BUSINESSES OF SUPPLYING BOTH A NONCOMPETITIVE AND A 2,236
COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,237
UTILITY" EXCLUDES A MUNICIPAL ELECTRIC UTILITY OR A BILLING AND 2,239
COLLECTION AGENT.
53
(12) "FIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE OTHER 2,242
THAN NONFIRM ELECTRIC SERVICE.
(13) "GOVERNMENTAL AGGREGATOR" MEANS A LEGISLATIVE 2,244
AUTHORITY OF A MUNICIPAL CORPORATION, A BOARD OF TOWNSHIP 2,245
TRUSTEES, OR A BOARD OF COUNTY COMMISSIONERS ACTING AS AN 2,246
AGGREGATOR FOR THE PROVISION OF A COMPETITIVE RETAIL ELECTRIC 2,247
SERVICE UNDER AUTHORITY CONFERRED UNDER SECTION 4928.20 OF THE 2,249
REVISED CODE.
(14) A PERSON ACTS "KNOWINGLY," REGARDLESS OF THE PERSON'S 2,251
PURPOSE, WHEN THE PERSON IS AWARE THAT THE PERSON'S CONDUCT WILL 2,252
PROBABLY CAUSE A CERTAIN RESULT OR WILL PROBABLY BE OF A CERTAIN 2,253
NATURE. A PERSON HAS KNOWLEDGE OF CIRCUMSTANCES WHEN THE PERSON 2,254
IS AWARE THAT SUCH CIRCUMSTANCES PROBABLY EXIST. 2,255
(15) "LEVEL OF FUNDING FOR LOW-INCOME CUSTOMER ENERGY 2,257
EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC UTILITY RATES" 2,258
MEANS THE LEVEL OF FUNDS SPECIFICALLY INCLUDED IN AN ELECTRIC 2,259
UTILITY'S RATES ON THE EFFECTIVE DATE OF THIS SECTION PURSUANT TO 2,260
AN ORDER OF THE PUBLIC UTILITIES COMMISSION ISSUED UNDER CHAPTER 2,261
4905. OR 4909. OF THE REVISED CODE AND IN EFFECT ON THE DAY 2,262
BEFORE THE EFFECTIVE DATE OF THIS SECTION, FOR THE PURPOSE OF 2,264
IMPROVING THE ENERGY EFFICIENCY OF HOUSING FOR THE UTILITY'S 2,265
LOW-INCOME CUSTOMERS. THE TERM EXCLUDES THE LEVEL OF ANY SUCH 2,266
FUNDS COMMITTED TO A SPECIFIC NONPROFIT ORGANIZATION OR 2,267
ORGANIZATIONS PURSUANT TO A STIPULATION OR CONTRACT. 2,268
(16) "LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS" MEANS THE 2,270
PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM AS PRESCRIBED IN RULES 2,271
4901:1-18-02(B) TO (G) AND 4901:1-18-04(B) OF THE OHIO 2,273
ADMINISTRATIVE CODE IN EFFECT ON THE EFFECTIVE DATE OF THIS 2,274
SECTION OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER SECTION 2,276
4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; THE HOME 2,277
ENERGY ASSISTANCE PROGRAM AS PRESCRIBED IN SECTION 5117.21 OF THE 2,278
REVISED CODE AND IN EXECUTIVE ORDER 97-1023-V OR, IF MODIFIED 2,279
PURSUANT TO AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, 2,280
THE PROGRAM AS MODIFIED; THE HOME WEATHERIZATION ASSISTANCE 2,282
54
PROGRAM AS PRESCRIBED IN DIVISION (A)(6) OF SECTION 122.011 AND 2,283
IN SECTION 122.02 OF THE REVISED CODE OR, IF MODIFIED PURSUANT TO 2,285
AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM
AS MODIFIED; THE OHIO ENERGY CREDIT PROGRAM AS PRESCRIBED IN 2,286
SECTIONS 5117.01 TO 5117.05, 5117.07 TO 5117.12, AND 5117.99 OF 2,287
THE REVISED CODE OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER 2,288
SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; AND 2,289
THE TARGETED ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM 2,290
ESTABLISHED UNDER SECTION 4928.55 OF THE REVISED CODE. 2,291
(17) "MARKET DEVELOPMENT PERIOD" FOR AN ELECTRIC UTILITY 2,293
MEANS THE PERIOD OF TIME BEGINNING ON THE STARTING DATE OF 2,294
COMPETITIVE RETAIL ELECTRIC SERVICE AND ENDING ON THE APPLICABLE 2,295
DATE FOR THAT UTILITY AS SPECIFIED IN SECTION 4928.40 OF THE 2,296
REVISED CODE, IRRESPECTIVE OF WHETHER THE UTILITY APPLIES TO 2,297
RECEIVE TRANSITION REVENUES UNDER THIS CHAPTER. 2,298
(18) "MARKET POWER" MEANS THE ABILITY TO IMPOSE ON 2,300
CUSTOMERS A SUSTAINED PRICE FOR A PRODUCT OR SERVICE ABOVE THE 2,301
PRICE THAT WOULD PREVAIL IN A COMPETITIVE MARKET. 2,302
(19) "MERCANTILE COMMERCIAL CUSTOMER" MEANS A COMMERCIAL 2,305
OR INDUSTRIAL CUSTOMER IF THE ELECTRICITY CONSUMED IS FOR 2,306
NONRESIDENTIAL USE AND THE CUSTOMER CONSUMES MORE THAN SEVEN 2,307
HUNDRED THOUSAND KILOWATT HOURS PER YEAR OR IS PART OF A NATIONAL 2,308
ACCOUNT INVOLVING MULTIPLE FACILITIES IN ONE OR MORE STATES. 2,309
(20) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 2,311
CORPORATION THAT OWNS OR OPERATES FACILITIES TO GENERATE, 2,312
TRANSMIT, OR DISTRIBUTE ELECTRICITY. 2,313
(21) "NONCOMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,315
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS NONCOMPETITIVE AS 2,316
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,317
(22) "NONFIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE 2,320
PROVIDED PURSUANT TO A SCHEDULE FILED UNDER SECTION 4905.30 OF 2,321
THE REVISED CODE OR PURSUANT TO AN ARRANGEMENT UNDER SECTION 2,322
4905.31 OF THE REVISED CODE, WHICH SCHEDULE OR ARRANGEMENT 2,324
INCLUDES CONDITIONS THAT MAY REQUIRE THE CUSTOMER TO CURTAIL OR 2,325
55
INTERRUPT ELECTRIC USAGE DURING NONEMERGENCY CIRCUMSTANCES UPON
NOTIFICATION BY AN ELECTRIC UTILITY. 2,326
(23) "PERCENTAGE OF INCOME PAYMENT PLAN ARREARS" MEANS 2,329
FUNDS ELIGIBLE FOR COLLECTION THROUGH THE PERCENTAGE OF INCOME 2,330
PAYMENT PLAN RIDER, BUT UNCOLLECTED AS OF JULY 1, 2000. 2,332
(24) "PERSON" HAS THE SAME MEANING AS IN SECTION 1.59 OF 2,334
THE REVISED CODE. 2,336
(25) "PROJECT" MEANS ANY REAL OR PERSONAL PROPERTY 2,338
CONNECTED WITH ALL OR PART OF AN INDUSTRIAL, DISTRIBUTION, 2,339
COMMERCIAL, OR RESEARCH FACILITY, NOT-FOR-PROFIT FACILITY, OR 2,340
RESIDENCE THAT IS TO BE ACQUIRED, CONSTRUCTED, RECONSTRUCTED, 2,341
ENLARGED, IMPROVED, FURNISHED, OR EQUIPPED, OR ANY COMBINATION OF 2,342
THOSE ACTIVITIES, WITH AID FURNISHED PURSUANT TO SECTIONS 4928.61 2,343
TO 4928.63 OF THE REVISED CODE FOR THE PURPOSES OF 2,345
NOT-FOR-PROFIT, INDUSTRIAL, COMMERCIAL, DISTRIBUTION,
RESIDENTIAL, AND RESEARCH DEVELOPMENT IN THIS STATE. "PROJECT" 2,347
INCLUDES, BUT IS NOT LIMITED TO, ANY SMALL-SCALE RENEWABLES 2,348
PROJECT.
(26) "REGULATORY ASSETS" MEANS THE UNAMORTIZED NET 2,351
REGULATORY ASSETS THAT ARE CAPITALIZED OR DEFERRED ON THE 2,352
REGULATORY BOOKS OF THE ELECTRIC UTILITY, PURSUANT TO AN ORDER OR 2,353
PRACTICE OF THE PUBLIC UTILITIES COMMISSION OR PURSUANT TO 2,354
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS A RESULT OF A PRIOR
COMMISSION RATE-MAKING DECISION, AND THAT WOULD OTHERWISE HAVE 2,355
BEEN CHARGED TO EXPENSE AS INCURRED OR WOULD NOT HAVE BEEN 2,356
CAPITALIZED OR OTHERWISE DEFERRED FOR FUTURE REGULATORY 2,357
CONSIDERATION ABSENT COMMISSION ACTION. "REGULATORY ASSETS" 2,358
INCLUDES, BUT IS NOT LIMITED TO, ALL DEFERRED DEMAND-SIDE 2,359
MANAGEMENT COSTS; ALL DEFERRED PERCENTAGE OF INCOME PAYMENT PLAN 2,360
ARREARS; POST-IN-SERVICE CAPITALIZED CHARGES AND ASSETS 2,361
RECOGNIZED IN CONNECTION WITH STATEMENT OF FINANCIAL ACCOUNTING 2,362
STANDARDS NO. 109 (RECEIVABLES FROM CUSTOMERS FOR INCOME TAXES); 2,363
FUTURE NUCLEAR DECOMMISSIONING COSTS AND FUEL DISPOSAL COSTS AS 2,364
THOSE COSTS HAVE BEEN DETERMINED BY THE COMMISSION IN THE 2,365
56
ELECTRIC UTILITY'S MOST RECENT RATE OR ACCOUNTING APPLICATION 2,366
PROCEEDING ADDRESSING SUCH COSTS; THE UNDERPRECIATED COSTS OF 2,367
SAFETY AND RADIATION CONTROL EQUIPMENT ON NUCLEAR GENERATING 2,368
PLANTS OWNED OR LEASED BY AN ELECTRIC UTILITY; AND FUEL COSTS 2,369
CURRENTLY DEFERRED PURSUANT TO THE TERMS OF ONE OR MORE 2,370
SETTLEMENT AGREEMENTS APPROVED BY THE COMMISSION. 2,371
(27) "RETAIL ELECTRIC SERVICE" MEANS ANY SERVICE INVOLVED 2,373
IN SUPPLYING OR ARRANGING FOR THE SUPPLY OF ELECTRICITY TO 2,374
ULTIMATE CONSUMERS IN THIS STATE, FROM THE POINT OF GENERATION TO 2,375
THE POINT OF CONSUMPTION. FOR THE PURPOSES OF THIS CHAPTER, 2,376
RETAIL ELECTRIC SERVICE INCLUDES ONE OR MORE OF THE FOLLOWING 2,377
"SERVICE COMPONENTS": GENERATION SERVICE, AGGREGATION SERVICE, 2,378
POWER MARKETING SERVICE, POWER BROKERAGE SERVICE, TRANSMISSION 2,379
SERVICE, DISTRIBUTION SERVICE, ANCILLARY SERVICE, METERING 2,380
SERVICE, AND BILLING AND COLLECTION SERVICE. 2,381
(28) "SMALL ELECTRIC GENERATION FACILITY" MEANS AN 2,384
ELECTRIC GENERATION PLANT AND ASSOCIATED FACILITIES DESIGNED FOR, 2,385
OR CAPABLE OF, OPERATION AT A CAPACITY OF LESS THAN TWO 2,386
MEGAWATTS.
(29) "STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,388
SERVICE" MEANS JANUARY 1, 2001, EXCEPT AS PROVIDED IN DIVISION 2,389
(C) OF THIS SECTION. 2,390
(30) "CUSTOMER-GENERATOR" MEANS A USER OF A NET METERING 2,392
SYSTEM.
(31) "NET METERING" MEANS MEASURING THE DIFFERENCE IN AN 2,394
APPLICABLE BILLING PERIOD BETWEEN THE ELECTRICITY SUPPLIED BY AN 2,395
ELECTRIC SERVICE PROVIDER AND THE ELECTRICITY GENERATED BY A 2,396
CUSTOMER-GENERATOR WHICH IS FED BACK TO THE ELECTRIC SERVICE 2,397
PROVIDER.
(32) "NET METERING SYSTEM" MEANS A FACILITY FOR THE 2,399
PRODUCTION OF ELECTRICAL ENERGY THAT DOES ALL OF THE FOLLOWING: 2,400
(a) USES AS ITS FUEL EITHER SOLAR, WIND, BIOMASS, OR 2,402
HYDROPOWER, OR USES A MICROTURBINE OR A FUEL CELL; 2,403
(b) IS LOCATED ON A CUSTOMER-GENERATOR'S PREMISES; 2,405
57
(c) OPERATES IN PARALLEL WITH THE ELECTRIC UTILITY'S 2,407
TRANSMISSION AND DISTRIBUTION FACILITIES; 2,408
(d) IS INTENDED PRIMARILY TO OFFSET PART OR ALL OF THE 2,410
CUSTOMER-GENERATOR'S REQUIREMENTS FOR ELECTRICITY. 2,411
(B) FOR THE PURPOSES OF THIS CHAPTER, A RETAIL ELECTRIC 2,413
SERVICE COMPONENT SHALL BE DEEMED A COMPETITIVE RETAIL ELECTRIC 2,414
SERVICE IF THE SERVICE COMPONENT IS COMPETITIVE PURSUANT TO A 2,416
DECLARATION BY A PROVISION OF THE REVISED CODE OR PURSUANT TO AN 2,417
ORDER OF THE PUBLIC UTILITIES COMMISSION AUTHORIZED UNDER
DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE. OTHERWISE, 2,420
THE SERVICE COMPONENT SHALL BE DEEMED A NONCOMPETITIVE RETAIL 2,421
ELECTRIC SERVICE.
(C) PRIOR TO JANUARY 1, 2001, AND AFTER APPLICATION BY AN 2,424
ELECTRIC UTILITY, NOTICE, AND AN OPPORTUNITY TO BE HEARD, THE
PUBLIC UTILITIES COMMISSION MAY ISSUE AN ORDER DELAYING THE 2,427
JANUARY 1, 2001, STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,428
SERVICE FOR THE ELECTRIC UTILITY FOR A SPECIFIED NUMBER OF DAYS 2,429
NOT TO EXCEED SIX MONTHS, BUT ONLY FOR EXTREME TECHNICAL 2,430
CONDITIONS PRECLUDING THE START OF COMPETITIVE RETAIL ELECTRIC 2,431
SERVICE ON JANUARY 1, 2001. 2,432
Sec. 4928.02. IT IS THE POLICY OF THIS STATE TO DO THE 2,434
FOLLOWING THROUGHOUT THIS STATE BEGINNING ON THE STARTING DATE OF 2,435
COMPETITIVE RETAIL ELECTRIC SERVICE: 2,436
(A) ENSURE THE AVAILABILITY TO CONSUMERS OF ADEQUATE, 2,438
RELIABLE, SAFE, EFFICIENT, NONDISCRIMINATORY, AND REASONABLY 2,439
PRICED RETAIL ELECTRIC SERVICE; 2,440
(B) ENSURE THE AVAILABILITY OF UNBUNDLED AND COMPARABLE 2,442
RETAIL ELECTRIC SERVICE THAT PROVIDES CONSUMERS WITH THE 2,443
SUPPLIER, PRICE, TERMS, CONDITIONS, AND QUALITY OPTIONS THEY 2,445
ELECT TO MEET THEIR RESPECTIVE NEEDS;
(C) ENSURE DIVERSITY OF ELECTRICITY SUPPLIES AND 2,447
SUPPLIERS, BY GIVING CONSUMERS EFFECTIVE CHOICES OVER THE 2,448
SELECTION OF THOSE SUPPLIES AND SUPPLIERS AND BY ENCOURAGING THE 2,449
DEVELOPMENT OF DISTRIBUTED AND SMALL GENERATION FACILITIES; 2,450
58
(D) ENCOURAGE INNOVATION AND MARKET ACCESS FOR 2,452
COST-EFFECTIVE SUPPLY- AND DEMAND-SIDE RETAIL ELECTRIC SERVICE; 2,453
(E) ENCOURAGE COST-EFFECTIVE AND EFFICIENT ACCESS TO 2,455
INFORMATION REGARDING THE OPERATION OF THE TRANSMISSION AND 2,456
DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES IN ORDER TO PROMOTE 2,458
EFFECTIVE CUSTOMER CHOICE OF RETAIL ELECTRIC SERVICE;
(F) RECOGNIZE THE CONTINUING EMERGENCE OF COMPETITIVE 2,460
ELECTRICITY MARKETS THROUGH THE DEVELOPMENT AND IMPLEMENTATION OF 2,461
FLEXIBLE REGULATORY TREATMENT; 2,462
(G) ENSURE EFFECTIVE COMPETITION IN THE PROVISION OF 2,464
RETAIL ELECTRIC SERVICE BY AVOIDING ANTICOMPETITIVE SUBSIDIES 2,465
FLOWING FROM A NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO A 2,467
COMPETITIVE RETAIL ELECTRIC SERVICE OR TO A PRODUCT OR SERVICE 2,468
OTHER THAN RETAIL ELECTRIC SERVICE, AND VICE VERSA;
(H) ENSURE RETAIL ELECTRIC SERVICE CONSUMERS PROTECTION 2,470
AGAINST UNREASONABLE SALES PRACTICES, MARKET DEFICIENCIES, AND 2,471
MARKET POWER; 2,472
(I) FACILITATE THE STATE'S EFFECTIVENESS IN THE GLOBAL 2,474
ECONOMY. 2,475
Sec. 4928.03. BEGINNING ON THE STARTING DATE OF 2,477
COMPETITIVE RETAIL ELECTRIC SERVICE, RETAIL ELECTRIC GENERATION, 2,478
AGGREGATION, POWER MARKETING, AND POWER BROKERAGE SERVICES 2,479
SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED TERRITORY OF AN 2,480
ELECTRIC UTILITY ARE COMPETITIVE RETAIL ELECTRIC SERVICES THAT 2,481
THE CONSUMERS MAY OBTAIN SUBJECT TO THIS CHAPTER FROM ANY 2,482
SUPPLIER OR SUPPLIERS. IN ACCORDANCE WITH A FILING UNDER 2,483
DIVISION (F) OF SECTION 4933.81 OF THE REVISED CODE, RETAIL 2,484
ELECTRIC GENERATION, AGGREGATION, POWER MARKETING, OR POWER 2,485
BROKERAGE SERVICES SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,486
TERRITORY OF AN ELECTRIC COOPERATIVE THAT HAS MADE THE FILING ARE 2,487
COMPETITIVE RETAIL ELECTRIC SERVICES THAT THE CONSUMERS MAY 2,489
OBTAIN SUBJECT TO THIS CHAPTER FROM ANY SUPPLIER OR SUPPLIERS. 2,490
BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 2,492
ELECTRIC SERVICE AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 2,493
59
EACH CONSUMER IN THIS STATE AND THE SUPPLIERS TO A CONSUMER SHALL 2,494
HAVE COMPARABLE AND NONDISCRIMINATORY ACCESS TO NONCOMPETITIVE 2,495
RETAIL ELECTRIC SERVICES OF AN ELECTRIC UTILITY IN THIS STATE 2,496
WITHIN ITS CERTIFIED TERRITORY FOR THE PURPOSE OF SATISFYING THE 2,498
CONSUMER'S ELECTRICITY REQUIREMENTS IN KEEPING WITH THE POLICY 2,499
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE. 2,501
Sec. 4928.04. (A) THE PUBLIC UTILITIES COMMISSION BY 2,503
ORDER MAY DECLARE THAT RETAIL ANCILLARY, METERING, OR BILLING AND 2,504
COLLECTION SERVICE SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,506
TERRITORY OF AN ELECTRIC UTILITY ON OR AFTER THE STARTING DATE OF 2,507
COMPETITIVE RETAIL ELECTRIC SERVICE IS A COMPETITIVE RETAIL 2,508
ELECTRIC SERVICE THAT THE CONSUMERS MAY OBTAIN FROM ANY SUPPLIER 2,509
OR SUPPLIERS SUBJECT TO THIS CHAPTER. THE COMMISSION MAY ISSUE 2,510
SUCH ORDER, AFTER INVESTIGATION AND PUBLIC HEARING, ONLY IF IT 2,511
FIRST DETERMINES EITHER OF THE FOLLOWING: 2,512
(1) THERE WILL BE EFFECTIVE COMPETITION WITH RESPECT TO 2,514
THE SERVICE. 2,515
(2) THE CUSTOMERS OF THE SERVICE HAVE REASONABLY AVAILABLE 2,517
ALTERNATIVES. 2,518
THE COMMISSION SHALL INITIATE A PROCEEDING ON OR BEFORE 2,520
MARCH 31, 2003, ON THE QUESTION OF THE DESIRABILITY, FEASIBILITY, 2,521
AND TIMING OF ANY SUCH COMPETITION. 2,522
(B) IN CARRYING OUT DIVISION (A) OF THIS SECTION, THE 2,524
COMMISSION MAY PRESCRIBE DIFFERENT CLASSIFICATIONS, PROCEDURES, 2,525
TERMS, OR CONDITIONS FOR DIFFERENT ELECTRIC UTILITIES AND FOR THE
RETAIL ELECTRIC SERVICES THEY PROVIDE THAT ARE DECLARED 2,526
COMPETITIVE PURSUANT TO THAT DIVISION, PROVIDED THE 2,527
CLASSIFICATIONS, PROCEDURES, TERMS, OR CONDITIONS ARE REASONABLE 2,528
AND DO NOT CONFER ANY UNDUE ECONOMIC, COMPETITIVE, OR MARKET 2,529
ADVANTAGE OR PREFERENCE UPON ANY ELECTRIC UTILITY. 2,530
Sec. 4928.05. (A)(1) ON AND AFTER THE STARTING DATE OF 2,532
COMPETITIVE RETAIL ELECTRIC SERVICE, A COMPETITIVE RETAIL 2,534
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC UTILITY SHALL NOT BE 2,535
SUBJECT TO SUPERVISION AND REGULATION BY A MUNICIPAL CORPORATION 2,536
60
UNDER CHAPTER 743. OF THE REVISED CODE OR BY THE PUBLIC UTILITIES 2,537
COMMISSION UNDER CHAPTERS 4901. TO 4909., 4933., 4935., OR 4963. 2,538
OF THE REVISED CODE, EXCEPT SECTIONS 4905.10, 4905.33, 4905.35, 2,540
AND 4933.81 TO 4933.90; EXCEPT SECTIONS 4905.06, 4935.03,
4963.40, AND 4963.41 OF THE REVISED CODE REGARDING SERVICE 2,542
RELIABILITY AND PUBLIC SAFETY; AND EXCEPT AS OTHERWISE PROVIDED 2,543
IN THIS CHAPTER. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,544
EXCEPTED PROVISIONS WITH RESPECT TO A COMPETITIVE RETAIL ELECTRIC 2,545
SERVICE SHALL BE SUCH AUTHORITY AS IS PROVIDED FOR THEIR 2,546
ENFORCEMENT UNDER CHAPTERS 4901. TO 4909., 4933., 4935., AND 2,547
4963. OF THE REVISED CODE AND THIS CHAPTER.
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,549
ELECTRIC SERVICE, A COMPETITIVE RETAIL ELECTRIC SERVICE SUPPLIED 2,550
BY AN ELECTRIC COOPERATIVE SHALL NOT BE SUBJECT TO SUPERVISION 2,551
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,552
4933., 4935., OR 4963. OF THE REVISED CODE, EXCEPT AS OTHERWISE 2,553
EXPRESSLY PROVIDED IN SECTIONS 4928.01 TO 4928.10 AND 4928.16 OF 2,554
THE REVISED CODE.
(2) ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,556
ELECTRIC SERVICE, A NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,557
SUPPLIED BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SUPERVISION 2,558
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,559
4933., 4935., AND 4963. OF THE REVISED CODE AND THIS CHAPTER, TO 2,560
THE EXTENT THAT AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE 2,562
COMMISSION'S AUTHORITY TO ENFORCE THOSE PROVISIONS WITH RESPECT 2,563
TO A NONCOMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE THE 2,564
AUTHORITY PROVIDED UNDER THOSE CHAPTERS AND THIS CHAPTER, TO THE 2,565
EXTENT THE AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. 2,566
THE COMMISSION SHALL EXERCISE ITS JURISDICTION WITH RESPECT 2,568
TO THE DELIVERY OF ELECTRICITY BY AN ELECTRIC UTILITY IN THIS 2,569
STATE ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,570
ELECTRIC SERVICE SO AS TO ENSURE THAT NO ASPECT OF THE DELIVERY 2,571
OF ELECTRICITY BY THE UTILITY TO CONSUMERS IN THIS STATE THAT 2,572
CONSISTS OF A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IS 2,573
61
UNREGULATED.
ON AND AFTER THAT STARTING DATE, A NONCOMPETITIVE RETAIL 2,575
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC COOPERATIVE SHALL NOT BE 2,577
SUBJECT TO SUPERVISION AND REGULATION BY THE COMMISSION UNDER 2,578
CHAPTERS 4901. TO 4909., 4933., 4935., AND 4963. OF THE REVISED 2,579
CODE, EXCEPT SECTIONS 4933.81 TO 4933.90 AND 4935.03 OF THE
REVISED CODE. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,580
EXCEPTED SECTIONS WITH RESPECT TO A NONCOMPETITIVE RETAIL 2,581
ELECTRIC SERVICE OF AN ELECTRIC COOPERATIVE SHALL BE SUCH
AUTHORITY AS IS PROVIDED FOR THEIR ENFORCEMENT UNDER CHAPTERS 2,582
4933. AND 4935. OF THE REVISED CODE. 2,583
(B) NOTHING IN THIS CHAPTER AFFECTS THE AUTHORITY OF THE 2,585
COMMISSION UNDER TITLE XLIX OF THE REVISED CODE TO REGULATE AN 2,586
ELECTRIC LIGHT COMPANY IN THIS STATE OR AN ELECTRIC SERVICE 2,587
SUPPLIED IN THIS STATE PRIOR TO THE STARTING DATE OF COMPETITIVE 2,588
RETAIL ELECTRIC SERVICE. 2,589
Sec. 4928.06. (A) BEGINNING ON THE STARTING DATE OF 2,591
COMPETITIVE RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES 2,592
COMMISSION SHALL ENSURE THAT THE POLICY SPECIFIED IN SECTION 2,594
4928.02 OF THE REVISED CODE IS EFFECTUATED. TO THE EXTENT 2,596
NECESSARY, THE COMMISSION SHALL ADOPT RULES TO CARRY OUT THIS 2,597
CHAPTER. INITIAL RULES NECESSARY FOR THE COMMENCEMENT OF THE 2,598
COMPETITIVE RETAIL ELECTRIC SERVICE UNDER THIS CHAPTER SHALL BE 2,599
ADOPTED WITHIN ONE HUNDRED EIGHTY DAYS AFTER THE EFFECTIVE DATE 2,600
OF THIS SECTION. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, 2,601
THE PROCEEDINGS AND ORDERS OF THE COMMISSION UNDER THE CHAPTER 2,602
SHALL BE SUBJECT TO AND GOVERNED BY CHAPTER 4903. OF THE REVISED 2,603
CODE. 2,604
(B) IF THE COMMISSION DETERMINES, ON OR AFTER THE STARTING 2,607
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, THAT THERE IS A 2,608
DECLINE OR LOSS OF EFFECTIVE COMPETITION WITH RESPECT TO A 2,609
COMPETITIVE RETAIL ELECTRIC SERVICE OF AN ELECTRIC UTILITY, WHICH 2,610
SERVICE WAS DECLARED COMPETITIVE BY COMMISSION ORDER ISSUED 2,612
PURSUANT TO DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE, 2,613
62
THE COMMISSION SHALL ENSURE THAT THAT SERVICE IS PROVIDED AT 2,614
COMPENSATORY, FAIR, AND NONDISCRIMINATORY PRICES AND TERMS AND 2,615
CONDITIONS.
(C) IN ADDITION TO ITS AUTHORITY UNDER SECTION 4928.04 OF 2,617
THE REVISED CODE AND DIVISIONS (A) AND (B) OF THIS SECTION, THE 2,619
COMMISSION, ON AN ONGOING BASIS, SHALL MONITOR AND EVALUATE THE 2,620
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE FOR THE 2,621
PURPOSE OF DISCERNING ANY NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,622
THAT SHOULD BE AVAILABLE ON A COMPETITIVE BASIS ON OR AFTER THE 2,623
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE PURSUANT TO 2,624
A DECLARATION IN THE REVISED CODE, AND FOR THE PURPOSE OF 2,625
DISCERNING ANY COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS NO 2,627
LONGER SUBJECT TO EFFECTIVE COMPETITION ON OR AFTER THAT DATE. 2,628
UPON SUCH EVALUATION, THE COMMISSION PERIODICALLY SHALL REPORT 2,629
ITS FINDINGS AND ANY RECOMMENDATIONS FOR LEGISLATION TO THE 2,630
STANDING COMMITTEES OF BOTH HOUSES OF THE GENERAL ASSEMBLY THAT 2,631
HAVE PRIMARY JURISDICTION REGARDING PUBLIC UTILITY LEGISLATION. 2,632
UNTIL 2008, THE COMMISSION AND THE CONSUMER'S COUNSEL ALSO SHALL 2,633
PROVIDE BIENNIAL REPORTS TO THOSE STANDING COMMITTEES, REGARDING 2,634
THE EFFECTIVENESS OF COMPETITION IN THE SUPPLY OF COMPETITIVE 2,635
RETAIL ELECTRIC SERVICES IN THIS STATE. IN ADDITION, UNTIL THE 2,637
END OF ALL MARKET DEVELOPMENT PERIODS AS DETERMINED OR EXTENDED 2,638
BY THE COMMISSION UNDER SECTION 4928.40 OF THE REVISED CODE,
THOSE STANDING COMMITTEES SHALL MEET AT LEAST BIENNIALLY TO 2,639
CONSIDER THE EFFECT ON THIS STATE OF ELECTRIC SERVICE 2,640
RESTRUCTURING AND TO RECEIVE REPORTS FROM THE COMMISSION, 2,641
CONSUMERS' COUNSEL, AND DIRECTOR OF DEVELOPMENT. 2,642
(D) IN DETERMINING, FOR PURPOSES OF DIVISION (B) OR (C) OF 2,645
THIS SECTION, WHETHER THERE IS EFFECTIVE COMPETITION IN THE 2,646
PROVISION OF A RETAIL ELECTRIC SERVICE OR REASONABLY AVAILABLE 2,648
ALTERNATIVES FOR THAT SERVICE, THE COMMISSION SHALL CONSIDER 2,649
FACTORS INCLUDING, BUT NOT LIMITED TO, ALL OF THE FOLLOWING: 2,650
(1) THE NUMBER AND SIZE OF ALTERNATIVE PROVIDERS OF THAT 2,652
SERVICE;
63
(2) THE EXTENT TO WHICH THE SERVICE IS AVAILABLE FROM 2,654
ALTERNATIVE SUPPLIERS IN THE RELEVANT MARKET; 2,655
(3) THE ABILITY OF ALTERNATIVE SUPPLIERS TO MAKE 2,657
FUNCTIONALLY EQUIVALENT OR SUBSTITUTE SERVICES READILY AVAILABLE 2,658
AT COMPETITIVE PRICES, TERMS, AND CONDITIONS; 2,659
(4) OTHER INDICATORS OF MARKET POWER, WHICH MAY INCLUDE 2,661
MARKET SHARE, GROWTH IN MARKET SHARE, EASE OF ENTRY, AND THE 2,662
AFFILIATION OF SUPPLIERS OF SERVICES. 2,663
THE BURDEN OF PROOF SHALL BE ON ANY ENTITY REQUESTING, 2,665
UNDER DIVISION (B) OR (C) OF THIS SECTION, A DETERMINATION BY THE 2,666
COMMISSION OF THE EXISTENCE OF OR A LACK OF EFFECTIVE COMPETITION 2,667
OR REASONABLY AVAILABLE ALTERNATIVES. 2,668
(E)(1) BEGINNING ON THE STARTING DATE OF COMPETITIVE 2,670
RETAIL ELECTRIC SERVICE, THE COMMISSION HAS AUTHORITY UNDER 2,671
CHAPTERS 4901. TO 4909. OF THE REVISED CODE, AND SHALL EXERCISE 2,672
THAT AUTHORITY, TO RESOLVE ABUSES OF MARKET POWER BY ANY ELECTRIC 2,673
UTILITY THAT INTERFERE WITH EFFECTIVE COMPETITION IN THE 2,674
PROVISION OF RETAIL ELECTRIC SERVICE. 2,675
(2) IN ADDITION TO THE COMMISSION'S AUTHORITY UNDER 2,677
DIVISION (E)(1) OF THIS SECTION, THE COMMISSION, BEGINNING THE 2,679
FIRST YEAR AFTER THE MARKET DEVELOPMENT PERIOD OF A PARTICULAR 2,680
ELECTRIC UTILITY AND AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,681
HEARING, MAY TAKE SUCH MEASURES WITHIN A TRANSMISSION CONSTRAINED 2,682
AREA IN THE UTILITY'S CERTIFIED TERRITORY AS ARE NECESSARY TO 2,683
ENSURE THAT RETAIL ELECTRIC GENERATION SERVICE IS PROVIDED AT 2,684
REASONABLE RATES WITHIN THAT AREA. THE COMMISSION MAY EXERCISE 2,685
THIS AUTHORITY ONLY UPON FINDINGS THAT AN ELECTRIC UTILITY IS OR 2,686
HAS ENGAGED IN THE ABUSE OF MARKET POWER AND THAT THAT ABUSE IS 2,687
NOT ADEQUATELY MITIGATED BY RULES AND PRACTICES OF ANY 2,688
INDEPENDENT TRANSMISSION ENTITY CONTROLLING THE TRANSMISSION 2,689
FACILITIES. ANY SUCH MEASURE SHALL BE TAKEN ONLY TO THE EXTENT 2,690
NECESSARY TO PROTECT CUSTOMERS IN THE AREA FROM THE PARTICULAR 2,691
ABUSE OF MARKET POWER AND TO THE EXTENT THE COMMISSION'S 2,692
AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE MEASURE SHALL 2,693
64
REMAIN IN EFFECT UNTIL THE COMMISSION, AFTER REASONABLE NOTICE 2,694
AND OPPORTUNITY FOR HEARING, DETERMINES THAT THE PARTICULAR ABUSE 2,695
OF MARKET POWER HAS BEEN MITIGATED.
(F) AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,697
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,698
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE SHALL 2,699
PROVIDE THE COMMISSION WITH SUCH INFORMATION, REGARDING A 2,700
COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO 2,701
CERTIFICATION, AS THE COMMISSION CONSIDERS NECESSARY TO CARRY OUT 2,703
THIS CHAPTER. AN ELECTRIC UTILITY SHALL PROVIDE THE COMMISSION 2,704
WITH SUCH INFORMATION AS THE COMMISSION CONSIDERS NECESSARY TO 2,705
CARRY OUT DIVISIONS (B) TO (E) OF THIS SECTION. THE COMMISSION 2,706
SHALL TAKE SUCH MEASURES AS IT CONSIDERS NECESSARY TO PROTECT THE 2,707
CONFIDENTIALITY OF ANY SUCH INFORMATION. 2,708
THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO FILE 2,711
WITH THE COMMISSION ON AND AFTER THE STARTING DATE OF COMPETITIVE 2,712
RETAIL ELECTRIC SERVICE AN ANNUAL REPORT OF ITS INTRASTATE GROSS 2,713
RECEIPTS AND SALES OF KILOWATT HOURS OF ELECTRICITY, AND SHALL 2,714
REQUIRE EACH ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, AND 2,715
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION TO FILE AN 2,717
ANNUAL REPORT ON AND AFTER THAT STARTING DATE OF SUCH RECEIPTS 2,718
AND SALES FROM THE PROVISION OF THOSE RETAIL ELECTRIC SERVICES 2,719
FOR WHICH IT IS SUBJECT TO CERTIFICATION. FOR THE PURPOSE OF THE 2,720
REPORTS, SALES OF KILOWATT HOURS OF ELECTRICITY ARE DEEMED TO 2,721
OCCUR AT THE METER OF THE RETAIL CUSTOMER. 2,722
Sec. 4928.07. TO THE MAXIMUM EXTENT PRACTICABLE ON OR 2,724
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 2,725
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,726
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,727
UNDER SECTION 4928.08 OF THE REVISED CODE SHALL SEPARATELY PRICE 2,729
COMPETITIVE RETAIL ELECTRIC SERVICES, AND THE PRICES SHALL BE 2,730
ITEMIZED ON THE BILL OF A CUSTOMER OR OTHERWISE DISCLOSED TO THE 2,731
CUSTOMER. ALTHOUGH A COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,732
BE SUPPLIED TO ANY CONSUMER ON SUCH A BASIS, SUCH AN ELECTRIC 2,733
65
UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 2,734
GOVERNMENTAL AGGREGATOR MAY REPACKAGE THE SERVICE ON OR AFTER THE 2,735
STARTING DATE AND OFFER IT ON A BUNDLED BASIS WITH OTHER RETAIL 2,736
ELECTRIC SERVICES TO MEET CONSUMER PREFERENCES. SUCH REPACKAGING 2,737
BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SECTIONS 4905.33 TO 2,738
4905.35 OF THE REVISED CODE. REPACKAGING BY SUCH AN ELECTRIC 2,740
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL
AGGREGATOR SHALL BE SUBJECT TO THE LIMITATION THAT NO SUCH 2,741
ENTITY, AS TO A COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH THE 2,742
COMPANY, COOPERATIVE, OR AGGREGATOR IS SUBJECT TO CERTIFICATION, 2,743
SHALL FURNISH FREE SERVICE OR SERVICE FOR LESS THAN ACTUAL COST 2,744
FOR THE PURPOSE OF DESTROYING COMPETITION. 2,745
Sec. 4928.08. (A) THIS SECTION APPLIES TO AN ELECTRIC 2,747
COOPERATIVE, OR TO A GOVERNMENTAL AGGREGATOR THAT IS A MUNICIPAL 2,748
ELECTRIC UTILITY, ONLY TO THE EXTENT OF A COMPETITIVE RETAIL 2,750
ELECTRIC SERVICE IT PROVIDES TO A CUSTOMER TO WHOM IT DOES NOT 2,751
PROVIDE A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 2,752
TRANSMISSION OR DISTRIBUTION FACILITIES IT SINGLY OR JOINTLY OWNS 2,753
OR OPERATES.
(B) NO ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,755
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SHALL PROVIDE A 2,756
COMPETITIVE RETAIL ELECTRIC SERVICE TO A CONSUMER IN THIS STATE 2,757
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,758
SERVICE WITHOUT FIRST BEING CERTIFIED BY THE PUBLIC UTILITIES 2,759
COMMISSION REGARDING ITS MANAGERIAL, TECHNICAL, AND FINANCIAL 2,760
CAPABILITY TO PROVIDE THAT SERVICE AND PROVIDING A FINANCIAL 2,761
GUARANTEE SUFFICIENT TO PROTECT CUSTOMERS AND ELECTRIC 2,762
DISTRIBUTION UTILITIES FROM DEFAULT. CERTIFICATION SHALL BE 2,763
GRANTED PURSUANT TO PROCEDURES AND STANDARDS THE COMMISSION SHALL 2,764
PRESCRIBE IN ACCORDANCE WITH DIVISION (C) OF THIS SECTION, EXCEPT 2,765
THAT CERTIFICATION OR CERTIFICATION RENEWAL SHALL BE DEEMED 2,766
APPROVED THIRTY DAYS AFTER THE FILING OF AN APPLICATION WITH THE 2,767
COMMISSION UNLESS THE COMMISSION SUSPENDS THAT APPROVAL FOR GOOD 2,768
CAUSE SHOWN. IN THE CASE OF SUCH A SUSPENSION, THE COMMISSION 2,769
66
SHALL ACT TO APPROVE OR DENY CERTIFICATION OR CERTIFICATION 2,770
RENEWAL TO THE APPLICANT NOT LATER THAN NINETY DAYS AFTER THE 2,771
DATE OF THE SUSPENSION. 2,772
(C) CAPABILITY STANDARDS ADOPTED IN RULES UNDER DIVISION 2,775
(B) OF THIS SECTION SHALL BE SUFFICIENT TO ENSURE COMPLIANCE WITH 2,776
THE MINIMUM SERVICE REQUIREMENTS ESTABLISHED UNDER SECTION 2,777
4928.10 OF THE REVISED CODE AND WITH SECTION 4928.09 OF THE 2,779
REVISED CODE. THE STANDARDS SHALL ALLOW FLEXIBILITY FOR 2,780
VOLUNTARY AGGREGATION, TO ENCOURAGE MARKET CREATIVITY IN 2,781
RESPONDING TO CONSUMER NEEDS AND DEMANDS, AND SHALL ALLOW 2,783
FLEXIBILITY FOR ELECTRIC SERVICES COMPANIES THAT EXCLUSIVELY 2,784
PROVIDE INSTALLATION OF SMALL ELECTRIC GENERATION FACILITIES, TO 2,785
PROVIDE EASE OF MARKET ACCESS. THE RULES SHALL INCLUDE 2,786
PROCEDURES FOR BIENNIALLY RENEWING CERTIFICATION. 2,787
(D) THE COMMISSION MAY SUSPEND, RESCIND, OR CONDITIONALLY 2,789
RESCIND THE CERTIFICATION OF ANY ELECTRIC UTILITY, ELECTRIC 2,791
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,792
AGGREGATOR ISSUED UNDER THIS SECTION IF THE COMMISSION 2,793
DETERMINES, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, 2,794
THAT THE UTILITY, COMPANY, COOPERATIVE, OR AGGREGATOR HAS FAILED 2,795
TO COMPLY WITH ANY APPLICABLE CERTIFICATION STANDARDS OR HAS 2,796
ENGAGED IN ANTICOMPETITIVE OR UNFAIR, DECEPTIVE, OR 2,797
UNCONSCIONABLE ACTS OR PRACTICES IN THIS STATE. 2,798
(E) NO ELECTRIC DISTRIBUTION UTILITY ON AND AFTER THE 2,800
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,801
KNOWINGLY DISTRIBUTE ELECTRICITY, TO A RETAIL CONSUMER IN THIS 2,802
STATE, FOR ANY SUPPLIER OF ELECTRICITY THAT HAS NOT BEEN 2,803
CERTIFIED BY THE COMMISSION PURSUANT TO THIS SECTION. 2,804
Sec. 4928.09. (A)(1) NO PERSON SHALL OPERATE IN THIS 2,806
STATE AS AN ELECTRIC UTILITY, AN ELECTRIC SERVICES COMPANY, OR A 2,807
BILLING AND COLLECTION AGENT ON AND AFTER THE STARTING DATE OF 2,808
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT PERSON FIRST DOES 2,810
BOTH OF THE FOLLOWING:
(a) CONSENTS IRREVOCABLY TO THE JURISDICTION OF THE COURTS 2,812
67
OF THIS STATE AND SERVICE OF PROCESS IN THIS STATE, INCLUDING, 2,813
WITHOUT LIMITATION, SERVICE OF SUMMONSES AND SUBPOENAS, FOR ANY 2,815
CIVIL OR CRIMINAL PROCEEDING ARISING OUT OF OR RELATING TO SUCH 2,816
OPERATION, BY PROVIDING THAT IRREVOCABLE CONSENT IN ACCORDANCE 2,817
WITH DIVISION (A)(4) OF THIS SECTION;
(b) DESIGNATES AN AGENT AUTHORIZED TO RECEIVE THAT SERVICE 2,819
OF PROCESS IN THIS STATE, BY FILING WITH THE COMMISSION A 2,820
DOCUMENT DESIGNATING THAT AGENT. 2,821
(2) NO PERSON SHALL CONTINUE TO OPERATE AS SUCH AN 2,823
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, OR BILLING AND 2,824
COLLECTION AGENT UNLESS THAT PERSON CONTINUES TO CONSENT TO SUCH 2,825
JURISDICTION AND SERVICE OF PROCESS IN THIS STATE AND CONTINUES 2,826
TO DESIGNATE AN AGENT AS PROVIDED UNDER THIS DIVISION, BY 2,827
REFILING IN ACCORDANCE WITH DIVISION (A)(4) OF THIS SECTION THE 2,828
APPROPRIATE DOCUMENTS FILED UNDER DIVISION (A)(1) OF THIS SECTION 2,829
OR, AS APPLICABLE, THE APPROPRIATE AMENDED DOCUMENTS FILED UNDER 2,830
DIVISION (A)(3) OF THIS SECTION. SUCH REFILING SHALL OCCUR 2,831
DURING THE MONTH OF DECEMBER OF EVERY FOURTH YEAR AFTER THE 2,832
INITIAL FILING OF A DOCUMENT UNDER DIVISION (A)(1) OF THIS 2,833
SECTION.
(3) IF THE ADDRESS OF THE PERSON FILING A DOCUMENT UNDER 2,835
DIVISION (A)(1) OR (2) OF THIS SECTION CHANGES, OR IF A PERSON'S 2,836
AGENT OR THE ADDRESS OF THE AGENT CHANGES, FROM THAT LISTED ON 2,837
THE MOST RECENTLY FILED OF SUCH DOCUMENTS, THE PERSON SHALL FILE
AN AMENDED DOCUMENT CONTAINING THE NEW INFORMATION. 2,838
(4) THE CONSENT AND DESIGNATION REQUIRED BY DIVISIONS 2,840
(A)(1) TO (3) OF THIS SECTION SHALL BE IN WRITING, ON FORMS 2,841
PRESCRIBED BY THE PUBLIC UTILITIES COMMISSION. THE ORIGINAL OF
EACH SUCH DOCUMENT OR AMENDED DOCUMENT SHALL BE LEGIBLE AND SHALL 2,842
BE FILED WITH THE COMMISSION, WITH A COPY FILED WITH THE OFFICE 2,843
OF THE CONSUMERS' COUNSEL AND WITH THE ATTORNEY GENERAL'S OFFICE. 2,844
(B) A PERSON WHO ENTERS THIS STATE PURSUANT TO A SUMMONS, 2,846
SUBPOENA, OR OTHER FORM OF PROCESS AUTHORIZED BY THIS SECTION IS 2,847
NOT SUBJECT TO ARREST OR SERVICE OF PROCESS, WHETHER CIVIL OR 2,848
68
CRIMINAL, IN CONNECTION WITH OTHER MATTERS THAT AROSE BEFORE THE 2,849
PERSON'S ENTRANCE INTO THIS STATE PURSUANT TO SUCH SUMMONS, 2,850
SUBPOENA, OR OTHER FORM OF PROCESS. 2,851
(C) DIVISIONS (A) AND (B) OF THIS SECTION DO NOT APPLY TO 2,853
ANY OF THE FOLLOWING: 2,854
(1) A CORPORATION INCORPORATED UNDER THE LAWS OF THIS 2,856
STATE THAT HAS APPOINTED A STATUTORY AGENT PURSUANT TO SECTION 2,857
1701.07 OR 1702.06 OF THE REVISED CODE; 2,858
(2) A FOREIGN CORPORATION LICENSED TO TRANSACT BUSINESS IN 2,860
THIS STATE THAT HAS APPOINTED A DESIGNATED AGENT PURSUANT TO 2,861
SECTION 1703.041 OF THE REVISED CODE; 2,862
(3) ANY OTHER PERSON THAT IS A RESIDENT OF THIS STATE OR 2,864
THAT FILES CONSENT TO SERVICE OF PROCESS AND DESIGNATES A 2,865
STATUTORY AGENT PURSUANT TO OTHER LAWS OF THIS STATE. 2,866
Sec. 4928.10. FOR THE PROTECTION OF CONSUMERS IN THIS 2,868
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,869
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE SPECIFYING 2,870
THE NECESSARY MINIMUM SERVICE REQUIREMENTS, ON OR AFTER THE 2,871
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, OF AN 2,872
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,873
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,874
UNDER SECTION 4928.08 OF THE REVISED CODE REGARDING THE PROVISION 2,875
DIRECTLY OR THROUGH ITS BILLING AND COLLECTION AGENT OF 2,876
COMPETITIVE RETAIL ELECTRIC SERVICES FOR WHICH IT IS SUBJECT TO
CERTIFICATION. RULES ADOPTED UNDER THIS SECTION SHALL INCLUDE A 2,878
PROHIBITION AGAINST UNFAIR, DECEPTIVE, AND UNCONSCIONABLE ACTS 2,879
AND PRACTICES IN THE MARKETING, SOLICITATION, AND SALE OF SUCH A 2,880
COMPETITIVE RETAIL ELECTRIC SERVICE AND IN THE ADMINISTRATION OF 2,881
ANY CONTRACT FOR SERVICE, AND ALSO SHALL INCLUDE ADDITIONAL 2,882
CONSUMER PROTECTIONS CONCERNING ALL OF THE FOLLOWING: 2,883
(A) CONTRACT DISCLOSURE. THE RULES SHALL INCLUDE 2,885
REQUIREMENTS THAT AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,886
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,888
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE DO BOTH 2,889
69
OF THE FOLLOWING:
(1) PROVIDE CONSUMERS WITH ADEQUATE, ACCURATE, AND 2,891
UNDERSTANDABLE PRICING AND TERMS AND CONDITIONS OF SERVICE, 2,892
INCLUDING ANY SWITCHING FEES, AND WITH A DOCUMENT CONTAINING THE 2,893
TERMS AND CONDITIONS OF PRICING AND SERVICE BEFORE THE CONSUMER 2,894
ENTERS INTO THE CONTRACT FOR SERVICE; 2,895
(2) DISCLOSE THE CONDITIONS UNDER WHICH A CUSTOMER MAY 2,897
RESCIND A CONTRACT WITHOUT PENALTY. 2,898
(B) SERVICE TERMINATION. THE RULES SHALL INCLUDE 2,900
DISCLOSURE OF THE TERMS IDENTIFYING HOW CUSTOMERS MAY SWITCH OR 2,901
TERMINATE SERVICE, INCLUDING ANY REQUIRED NOTICE AND ANY
PENALTIES. 2,902
(C) MINIMUM CONTENT OF CUSTOMER BILLS. THE RULES SHALL 2,904
INCLUDE ALL OF THE FOLLOWING REQUIREMENTS, WHICH SHALL BE 2,905
STANDARDIZED:
(1) PRICE DISCLOSURE AND DISCLOSURES OF TOTAL BILLING 2,907
UNITS FOR THE BILLING PERIOD AND HISTORICAL ANNUAL USAGE; 2,908
(2) TO THE MAXIMUM EXTENT PRACTICABLE, SEPARATE LISTING OF 2,910
EACH SERVICE COMPONENT TO ENABLE A CUSTOMER TO RECALCULATE ITS 2,911
BILL FOR ACCURACY; 2,912
(3) IDENTIFICATION OF THE SUPPLIER OF EACH SERVICE; 2,914
(4) STATEMENT OF WHERE AND HOW PAYMENT MAY BE MADE AND 2,916
PROVISION OF A TOLL-FREE OR LOCAL CUSTOMER ASSISTANCE AND 2,917
COMPLAINT NUMBER FOR THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,918
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR, AS 2,919
WELL AS A CONSUMER ASSISTANCE TELEPHONE NUMBER OR NUMBERS FOR 2,920
STATE AGENCIES, SUCH AS THE COMMISSION, THE OFFICE OF THE 2,921
CONSUMERS' COUNSEL, AND THE ATTORNEY GENERAL'S OFFICE, WITH THE 2,922
AVAILABLE HOURS NOTED;
(5) OTHER THAN FOR THE FIRST BILLING AFTER THE STARTING 2,924
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, HIGHLIGHTING AND 2,925
CLEAR EXPLANATION ON EACH CUSTOMER BILL, FOR TWO CONSECUTIVE 2,926
BILLING PERIODS, OF ANY CHANGES IN THE RATES, TERMS, AND 2,927
CONDITIONS OF SERVICE. 2,928
70
(D) DISCONNECTION AND SERVICE TERMINATION, INCLUDING 2,930
REQUIREMENTS WITH RESPECT TO MASTER-METERED BUILDINGS. THE RULES 2,931
SHALL INCLUDE POLICIES AND PROCEDURES THAT ARE CONSISTENT WITH 2,933
SECTIONS 4933.121 AND 4933.122 OF THE REVISED CODE AND THE 2,935
COMMISSION'S RULES ADOPTED UNDER THOSE SECTIONS, AND THAT PROVIDE
FOR ALL OF THE FOLLOWING: 2,936
(1) COORDINATION BETWEEN SUPPLIERS FOR THE PURPOSE OF 2,938
MAINTAINING SERVICE; 2,939
(2) THE ALLOCATION OF PARTIAL PAYMENTS BETWEEN SUPPLIERS 2,941
WHEN SERVICE COMPONENTS ARE JOINTLY BILLED; 2,942
(3) A PROHIBITION AGAINST BLOCKING, OR AUTHORIZING THE 2,944
BLOCKING OF, CUSTOMER ACCESS TO A NONCOMPETITIVE RETAIL ELECTRIC 2,945
SERVICE WHEN A CUSTOMER IS DELINQUENT IN PAYMENTS TO THE ELECTRIC 2,946
UTILITY OR ELECTRIC SERVICES COMPANY FOR A COMPETITIVE RETAIL 2,947
ELECTRIC SERVICE;
(4) A PROHIBITION AGAINST SWITCHING, OR AUTHORIZING THE 2,949
SWITCHING OF, A CUSTOMER'S SUPPLIER OF COMPETITIVE RETAIL 2,950
ELECTRIC SERVICE WITHOUT THE PRIOR CONSENT OF THE CUSTOMER IN 2,951
ACCORDANCE WITH APPROPRIATE CONFIRMATION PRACTICES, WHICH MAY 2,952
INCLUDE INDEPENDENT, THIRD-PARTY VERIFICATION PROCEDURES. 2,953
(5) A REQUIREMENT OF DISCLOSURE OF THE CONDITIONS UNDER 2,955
WHICH A CUSTOMER MAY RESCIND A DECISION TO SWITCH ITS SUPPLIER 2,956
WITHOUT PENALTY; 2,957
(6) SPECIFICATION OF ANY REQUIRED NOTICE AND ANY PENALTY 2,959
FOR EARLY TERMINATION OF CONTRACT. 2,960
(E) MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY. 2,962
HOWEVER, SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS 2,963
FOR ELECTRIC GENERATION SERVICE SHALL BE DETERMINED PRIMARILY 2,965
THROUGH MARKET EXPECTATIONS AND CONTRACTUAL RELATIONSHIPS. 2,966
(F) GENERATION RESOURCE MIX AND ENVIRONMENTAL 2,968
CHARACTERISTICS OF POWER SUPPLIES. THE RULES SHALL INCLUDE 2,969
REQUIREMENTS FOR DETERMINATION OF THE APPROXIMATE GENERATION
RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS OF THE POWER 2,970
SUPPLIES AND DISCLOSURE TO THE CUSTOMER PRIOR TO THE CUSTOMER 2,971
71
ENTERING INTO A CONTRACT TO PURCHASE AND FOUR TIMES PER YEAR 2,972
UNDER THE CONTRACT. THE RULES ALSO SHALL REQUIRE THAT THE 2,973
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,974
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR PROVIDE, OR CAUSE ITS 2,975
BILLING AND COLLECTION AGENT TO PROVIDE, A CUSTOMER WITH 2,976
STANDARDIZED INFORMATION COMPARING THE PROJECTED, WITH THE ACTUAL
AND VERIFIABLE, RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS. 2,977
THIS DISCLOSURE SHALL OCCUR NOT LESS THAN ANNUALLY OR NOT LESS 2,978
THAN ONCE DURING THE CONTRACT PERIOD IF THE CONTRACT PERIOD IS 2,979
LESS THAN ONE YEAR, AND PRIOR TO ANY RENEWAL OF A CONTRACT. 2,980
(G) CUSTOMER INFORMATION. THE RULES SHALL INCLUDE 2,982
REQUIREMENTS THAT THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,984
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR MAKE 2,985
GENERIC CUSTOMER LOAD PATTERN INFORMATION AVAILABLE TO OTHER 2,986
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,987
BASIS, AND MAKE CUSTOMER-SPECIFIC INFORMATION AVAILABLE TO OTHER 2,988
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,989
BASIS UNLESS, AS TO CUSTOMER-SPECIFIC INFORMATION, THE CUSTOMER 2,990
OBJECTS. THE RULES SHALL ENSURE THAT EACH SUCH UTILITY, COMPANY, 2,991
COOPERATIVE, OR AGGREGATOR PROVIDE CLEAR AND FREQUENT NOTICE TO 2,992
ITS CUSTOMERS OF THE RIGHT TO OBJECT AND OF APPLICABLE 2,993
PROCEDURES. THE RULES SHALL ESTABLISH THE EXACT LANGUAGE THAT 2,994
SHALL BE USED IN ALL SUCH NOTICES.
Sec. 4928.11. (A) FOR THE PROTECTION OF CONSUMERS IN THIS 2,996
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,998
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE THAT SPECIFY 2,999
MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS FOR 3,000
NONCOMPETITIVE RETAIL ELECTRIC SERVICES SUPPLIED BY AN ELECTRIC 3,001
UTILITY IN THIS STATE, TO THE EXTENT SUCH AUTHORITY IS NOT 3,002
PREEMPTED BY FEDERAL LAW. THE RULES SHALL INCLUDE PRESCRIPTIVE 3,003
STANDARDS FOR INSPECTION, MAINTENANCE, REPAIR, AND REPLACEMENT OF 3,004
THE TRANSMISSION AND DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES; 3,005
SHALL APPLY TO EACH SUBSTANTIAL TYPE OF TRANSMISSION OR 3,006
DISTRIBUTION EQUIPMENT OR FACILITY; SHALL ESTABLISH UNIFORM 3,007
72
INTERCONNECTION STANDARDS TO ENSURE TRANSMISSION AND DISTRIBUTION 3,008
SYSTEM SAFETY AND RELIABILITY AND SHALL OTHERWISE PROVIDE FOR 3,009
HIGH QUALITY, SAFE, AND RELIABLE ELECTRIC SERVICE; SHALL INCLUDE 3,010
STANDARDS FOR OPERATION, RELIABILITY, AND SAFETY DURING PERIODS 3,011
OF EMERGENCY AND DISASTER; AND SHALL INCLUDE VOLTAGE STANDARDS 3,012
FOR EFFICIENT OPERATION OF SINGLE-PHASE MOTORS. THE RULES 3,013
REGARDING INTERCONNECTION SHALL SEEK TO PREVENT BARRIERS TO NEW 3,015
TECHNOLOGY AND SHALL NOT MAKE COMPLIANCE UNDULY BURDENSOME OR 3,016
EXPENSIVE. WHEN QUESTIONS ARISE ABOUT SPECIFIC EQUIPMENT TO MEET 3,017
INTERCONNECTION STANDARDS, THE COMMISSION SHALL INITIATE 3,018
PROCEEDINGS OPEN TO THE PUBLIC TO SOLICIT COMMENTS FROM ALL 3,019
INTERESTED PARTIES. ADDITIONALLY, RULES UNDER THIS DIVISION 3,020
SHALL INCLUDE NONDISCRIMINATORY METERING STANDARDS. 3,021
(B) THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO 3,023
REPORT ANNUALLY TO THE COMMISSION ON AND AFTER THE STARTING DATE 3,024
OF COMPETITIVE RETAIL ELECTRIC SERVICE, REGARDING ITS COMPLIANCE 3,025
WITH THE RULES REQUIRED UNDER DIVISION (A) OF THIS SECTION. THE 3,026
COMMISSION SHALL MAKE THE FILED REPORTS AVAILABLE TO THE PUBLIC. 3,027
PERIODICALLY AS DETERMINED BY COMMISSION RULE UNDER DIVISION (A) 3,028
OF SECTION 4928.06 OF THE REVISED CODE AND IN A PROCEEDING 3,029
INITIATED UNDER DIVISION (B) OF SECTION 4928.16 OF THE REVISED 3,030
CODE, THE COMMISSION SHALL REVIEW A UTILITY'S REPORT TO DETERMINE 3,032
THE UTILITY'S COMPLIANCE AND MAY ACT PURSUANT TO DIVISION (B) OF 3,033
SECTION 4928.16 OF THE REVISED CODE TO ENFORCE COMPLIANCE. 3,034
Sec. 4928.12. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,036
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ENTITY SHALL 3,037
OWN OR CONTROL TRANSMISSION FACILITIES AS DEFINED UNDER FEDERAL 3,038
LAW AND LOCATED IN THIS STATE ON OR AFTER THE STARTING DATE OF 3,039
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT ENTITY IS A 3,040
MEMBER OF, AND TRANSFERS CONTROL OF THOSE FACILITIES TO, ONE OR 3,041
MORE QUALIFYING TRANSMISSION ENTITIES, AS DESCRIBED IN DIVISION 3,042
(B) OF THIS SECTION, THAT ARE OPERATIONAL.
(B) AN ENTITY THAT OWNS OR CONTROLS TRANSMISSION 3,044
FACILITIES LOCATED IN THIS STATE COMPLIES WITH DIVISION (A) OF 3,046
73
THIS SECTION IF EACH TRANSMISSION ENTITY OF WHICH IT IS A MEMBER 3,047
MEETS ALL OF THE FOLLOWING SPECIFICATIONS: 3,048
(1) THE TRANSMISSION ENTITY IS APPROVED BY THE FEDERAL 3,050
ENERGY REGULATORY COMMISSION. 3,051
(2) THE TRANSMISSION ENTITY EFFECTS SEPARATE CONTROL OF 3,053
TRANSMISSION FACILITIES FROM CONTROL OF GENERATION FACILITIES. 3,054
(3) THE TRANSMISSION ENTITY IMPLEMENTS, TO THE EXTENT 3,056
REASONABLY POSSIBLE, POLICIES AND PROCEDURES DESIGNED TO MINIMIZE 3,057
PANCAKED TRANSMISSION RATES WITHIN THIS STATE. 3,058
(4) THE TRANSMISSION ENTITY IMPROVES SERVICE RELIABILITY 3,060
WITHIN THIS STATE. 3,061
(5) THE TRANSMISSION ENTITY ACHIEVES THE OBJECTIVES OF AN 3,063
OPEN AND COMPETITIVE ELECTRIC GENERATION MARKETPLACE, ELIMINATION 3,064
OF BARRIERS TO MARKET ENTRY, AND PRECLUSION OF CONTROL OF 3,065
BOTTLENECK ELECTRIC TRANSMISSION FACILITIES IN THE PROVISION OF 3,066
RETAIL ELECTRIC SERVICE. 3,067
(6) THE TRANSMISSION ENTITY IS OF SUFFICIENT SCOPE OR 3,069
OTHERWISE OPERATES TO SUBSTANTIALLY INCREASE ECONOMICAL SUPPLY 3,071
OPTIONS FOR CONSUMERS.
(7) THE GOVERNANCE STRUCTURE OR CONTROL OF THE 3,073
TRANSMISSION ENTITY IS INDEPENDENT OF THE USERS OF THE 3,074
TRANSMISSION FACILITIES, AND NO MEMBER OF ITS BOARD OF DIRECTORS 3,075
HAS AN AFFILIATION, WITH SUCH A USER OR WITH AN AFFILIATE OF A 3,076
USER DURING THE MEMBER'S TENURE ON THE BOARD, SUCH AS TO UNDULY 3,078
AFFECT THE TRANSMISSION ENTITY'S PERFORMANCE. FOR THE PURPOSE OF
DIVISION (B)(7) OF THIS SECTION, A "USER" IS ANY ENTITY OR 3,079
AFFILIATE OF THAT ENTITY THAT BUYS OR SELLS ELECTRIC ENERGY IN 3,080
THE TRANSMISSION ENTITY'S REGION OR IN A NEIGHBORING REGION. 3,081
(8) THE TRANSMISSION ENTITY OPERATES UNDER POLICIES THAT 3,083
PROMOTE POSITIVE PERFORMANCE DESIGNED TO SATISFY THE ELECTRICITY 3,084
REQUIREMENTS OF CUSTOMERS. 3,085
(9) THE TRANSMISSION ENTITY IS CAPABLE OF MAINTAINING 3,087
REAL-TIME RELIABILITY OF THE ELECTRIC TRANSMISSION SYSTEM, 3,088
ENSURING COMPARABLE AND NONDISCRIMINATORY TRANSMISSION ACCESS AND 3,089
74
NECESSARY SERVICES, MINIMIZING SYSTEM CONGESTION, AND FURTHER 3,090
ADDRESSING REAL OR POTENTIAL TRANSMISSION CONSTRAINTS. 3,091
(C) TO THE EXTENT THAT A TRANSMISSION ENTITY UNDER 3,093
DIVISION (A) OF THIS SECTION IS AUTHORIZED TO BUILD TRANSMISSION 3,095
FACILITIES, THAT TRANSMISSION ENTITY HAS THE POWERS PROVIDED IN 3,096
AND IS SUBJECT TO SECTIONS 1723.01 TO 1723.08 OF THE REVISED 3,097
CODE.
(D) FOR THE PURPOSE OF FORMING OR PARTICIPATING IN A 3,099
REGIONAL REGULATORY OVERSIGHT BODY OR MECHANISM DEVELOPED FOR ANY 3,100
TRANSMISSION ENTITY UNDER DIVISION (A) OF THIS SECTION THAT IS OF 3,101
REGIONAL SCOPE AND OPERATES WITHIN THIS STATE: 3,102
(1) THE COMMISSION SHALL MAKE JOINT INVESTIGATIONS, HOLD 3,104
JOINT HEARINGS, WITHIN OR OUTSIDE THIS STATE, AND ISSUE JOINT OR 3,105
CONCURRENT ORDERS IN CONJUNCTION OR CONCURRENCE WITH ANY OFFICIAL 3,106
OR AGENCY OF ANY STATE OR OF THE UNITED STATES, WHETHER IN THE 3,107
HOLDING OF THOSE INVESTIGATIONS OR HEARINGS, OR IN THE MAKING OF 3,109
THOSE ORDERS, THE COMMISSION IS FUNCTIONING UNDER AGREEMENTS OR 3,110
COMPACTS BETWEEN STATES, UNDER THE CONCURRENT POWER OF STATES TO 3,111
REGULATE INTERSTATE COMMERCE, AS AN AGENCY OF THE UNITED STATES, 3,112
OR OTHERWISE. 3,113
(2) THE COMMISSION SHALL NEGOTIATE AND ENTER INTO 3,115
AGREEMENTS OR COMPACTS WITH AGENCIES OF OTHER STATES FOR 3,116
COOPERATIVE REGULATORY EFFORTS AND FOR THE ENFORCEMENT OF THE 3,117
RESPECTIVE STATE LAWS REGARDING THE TRANSMISSION ENTITY. 3,118
(E) IF A QUALIFYING TRANSMISSION ENTITY IS NOT OPERATIONAL 3,121
AS CONTEMPLATED IN DIVISION (A) OF THIS SECTION, DIVISION (A)(13) 3,123
OF SECTION 4928.34 OF THE REVISED CODE, OR DIVISION (G) OF
SECTION 4928.35 OF THE REVISED CODE, THE COMMISSION BY RULE OR 3,124
ORDER SHALL TAKE SUCH MEASURES OR IMPOSE SUCH REQUIREMENTS ON ALL 3,126
FOR-PROFIT ENTITIES THAT OWN OR CONTROL ELECTRIC TRANSMISSION 3,127
FACILITIES LOCATED IN THIS STATE AS THE COMMISSION DETERMINES 3,128
NECESSARY AND PROPER TO ACHIEVE INDEPENDENT, NONDISCRIMINATORY 3,129
OPERATION OF, AND SEPARATE OWNERSHIP AND CONTROL OF, SUCH 3,130
ELECTRIC TRANSMISSION FACILITIES ON OR AFTER THE STARTING DATE OF 3,131
75
COMPETITIVE RETAIL ELECTRIC SERVICE. 3,132
Sec. 4928.13. THROUGH A PERIODIC FILING WITH THE PUBLIC 3,134
UTILITIES COMMISSION IN SUCH FORM AS THE COMMISSION SHALL 3,135
PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF THE 3,136
REVISED CODE, EACH ELECTRIC UTILITY THAT OWNS NUCLEAR GENERATION 3,137
FACILITIES LOCATED IN THIS STATE SHALL DEMONSTRATE COMPLIANCE 3,138
WITH DECOMMISSIONING REQUIREMENTS OF THE NUCLEAR REGULATORY
COMMISSION AND PUBLIC UTILITIES COMMISSION AND SHALL DEMONSTRATE 3,140
ADEQUATE FINANCING MECHANISMS TO FUND FACILITY DECOMMISSIONING. 3,141
Sec. 4928.14. (A) AFTER ITS MARKET DEVELOPMENT PERIOD, AN 3,143
ELECTRIC DISTRIBUTION UTILITY IN THIS STATE SHALL PROVIDE 3,144
CONSUMERS, ON A COMPARABLE AND NONDISCRIMINATORY BASIS WITHIN ITS 3,146
CERTIFIED TERRITORY, A MARKET-BASED STANDARD SERVICE OFFER OF ALL 3,148
COMPETITIVE RETAIL ELECTRIC SERVICES NECESSARY TO MAINTAIN 3,149
ESSENTIAL ELECTRIC SERVICE TO CONSUMERS, INCLUDING A FIRM SUPPLY 3,150
OF ELECTRIC GENERATION SERVICE. SUCH OFFER SHALL BE FILED WITH 3,151
THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE 3,152
REVISED CODE.
(B) AFTER THAT MARKET DEVELOPMENT PERIOD, EACH ELECTRIC 3,154
DISTRIBUTION UTILITY ALSO SHALL OFFER CUSTOMERS WITHIN ITS 3,155
CERTIFIED TERRITORY AN OPTION TO PURCHASE COMPETITIVE RETAIL 3,156
ELECTRIC SERVICE THE PRICE OF WHICH IS DETERMINED THROUGH A 3,157
COMPETITIVE BIDDING PROCESS. PRIOR TO JANUARY 1, 2004, THE 3,158
COMMISSION SHALL ADOPT RULES CONCERNING THE CONDUCT OF THE 3,159
COMPETITIVE BIDDING PROCESS, INCLUDING THE INFORMATION 3,160
REQUIREMENTS NECESSARY FOR CUSTOMERS TO CHOOSE THIS OPTION AND 3,161
THE REQUIREMENTS TO EVALUATE QUALIFIED BIDDERS. THE COMMISSION 3,162
MAY REQUIRE THAT THE COMPETITIVE BIDDING PROCESS BE REVIEWED BY 3,163
AN INDEPENDENT THIRD PARTY. NO GENERATION SUPPLIER SHALL BE 3,164
PROHIBITED FROM PARTICIPATING IN THE BIDDING PROCESS, PROVIDED 3,165
THAT ANY WINNING BIDDER SHALL BE CONSIDERED A CERTIFIED SUPPLIER 3,166
FOR PURPOSES OF OBLIGATIONS TO CUSTOMERS. AT THE ELECTION OF THE 3,167
ELECTRIC DISTRIBUTION UTILITY, AND APPROVAL OF THE COMMISSION, 3,168
THE COMPETITIVE BIDDING OPTION UNDER THIS DIVISION MAY BE USED AS 3,169
76
THE MARKET-BASED STANDARD OFFER REQUIRED BY DIVISION (A) OF THIS 3,170
SECTION. THE COMMISSION MAY DETERMINE AT ANY TIME THAT A 3,171
COMPETITIVE BIDDING PROCESS IS NOT REQUIRED, IF OTHER MEANS TO 3,172
ACCOMPLISH GENERALLY THE SAME OPTION FOR CUSTOMERS IS READILY 3,173
AVAILABLE IN THE MARKET AND A REASONABLE MEANS FOR CUSTOMER 3,174
PARTICIPATION IS DEVELOPED. 3,175
(C) AFTER THE MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 3,177
SUPPLIER TO PROVIDE RETAIL ELECTRIC GENERATION SERVICE TO 3,178
CUSTOMERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC 3,179
DISTRIBUTION UTILITY SHALL RESULT IN THE SUPPLIER'S CUSTOMERS, 3,180
AFTER REASONABLE NOTICE, DEFAULTING TO THE UTILITY'S STANDARD 3,181
SERVICE OFFER FILED UNDER DIVISION (A) OF THIS SECTION UNTIL THE 3,182
CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. A SUPPLIER IS DEEMED 3,183
UNDER THIS DIVISION TO HAVE FAILED TO PROVIDE SUCH SERVICE IF THE 3,185
COMMISSION FINDS, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 3,186
HEARING, THAT ANY OF THE FOLLOWING CONDITIONS ARE MET:
(1) THE SUPPLIER HAS DEFAULTED ON ITS CONTRACTS WITH 3,188
CUSTOMERS, IS IN RECEIVERSHIP, OR HAS FILED FOR BANKRUPTCY. 3,189
(2) THE SUPPLIER IS NO LONGER CAPABLE OF PROVIDING THE 3,191
SERVICE. 3,192
(3) THE SUPPLIER IS UNABLE TO PROVIDE DELIVERY TO 3,194
TRANSMISSION OR DISTRIBUTION FACILITIES FOR SUCH PERIOD OF TIME 3,195
AS MAY BE REASONABLY SPECIFIED BY COMMISSION RULE ADOPTED UNDER 3,196
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 3,197
(4) THE SUPPLIER'S CERTIFICATION HAS BEEN SUSPENDED, 3,199
CONDITIONALLY RESCINDED, OR RESCINDED UNDER DIVISION (D) OF 3,200
SECTION 4928.08 OF THE REVISED CODE.
Sec. 4928.15. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,202
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ELECTRIC 3,204
UTILITY SHALL SUPPLY NONCOMPETITIVE RETAIL ELECTRIC DISTRIBUTION 3,206
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 3,207
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 3,208
FOR THAT SERVICE THAT IS CONSISTENT WITH THE STATE POLICY 3,209
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED WITH
77
THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE 3,211
REVISED CODE. THE SCHEDULE SHALL PROVIDE THAT ELECTRIC 3,212
DISTRIBUTION SERVICE UNDER THE SCHEDULE IS AVAILABLE TO ALL 3,213
CONSUMERS WITHIN THE UTILITY'S CERTIFIED TERRITORY AND TO ANY 3,214
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 3,215
BASIS. DISTRIBUTION SERVICE RATES AND CHARGES UNDER THE SCHEDULE 3,216
SHALL BE ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. 3,217
OF THE REVISED CODE. THE SCHEDULE SHALL INCLUDE AN OBLIGATION TO 3,219
BUILD DISTRIBUTION FACILITIES WHEN NECESSARY TO PROVIDE ADEQUATE 3,221
DISTRIBUTION SERVICE, PROVIDED THAT A CUSTOMER REQUESTING THAT
SERVICE MAY BE REQUIRED TO PAY ALL OR PART OF THE REASONABLE 3,223
INCREMENTAL COST OF THE NEW FACILITIES, IN ACCORDANCE WITH RULES, 3,224
POLICY, PRECEDENTS, OR ORDERS OF THE COMMISSION. 3,225
(B) EXCEPT AS OTHERWISE PROVIDED IN SECTIONS 4928.31 TO 3,227
4928.40 OF THE REVISED CODE AND EXCEPT AS PREEMPTED BY FEDERAL 3,229
LAW, NO ELECTRIC UTILITY SHALL SUPPLY THE TRANSMISSION SERVICE OR 3,230
ANCILLARY SERVICE COMPONENT OF NONCOMPETITIVE RETAIL ELECTRIC 3,231
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 3,232
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 3,233
FOR THAT SERVICE COMPONENT THAT IS CONSISTENT WITH THE STATE 3,234
POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED 3,235
WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED CODE. 3,236
THE SCHEDULE SHALL PROVIDE THAT TRANSMISSION OR ANCILLARY SERVICE 3,237
UNDER THE SCHEDULE IS AVAILABLE TO ALL CONSUMERS AND TO ANY 3,238
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 3,239
BASIS. SERVICE RATES AND CHARGES UNDER THE SCHEDULE SHALL BE 3,240
ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. OF THE 3,242
REVISED CODE.
(C) A CUSTOMER-GENERATOR SHALL HAVE ACCESS TO BACKUP 3,244
ELECTRICITY SUPPLY FROM ITS COMPETITIVE ELECTRIC GENERATION 3,245
SERVICE PROVIDER AT A RATE TO BE DETERMINED BY CONTRACT. 3,246
Sec. 4928.16. (A)(1) THE PUBLIC UTILITIES COMMISSION HAS 3,248
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 3,249
COMPLAINT OF ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 3,250
78
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 3,251
ELECTRIC SERVICE, REGARDING THE PROVISION BY AN ELECTRIC UTILITY, 3,252
ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 3,253
AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE
REVISED CODE OF ANY SERVICE FOR WHICH IT IS SUBJECT TO 3,254
CERTIFICATION.
(2) THE COMMISSION ALSO HAS JURISDICTION UNDER SECTION 3,256
4905.26 OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 3,257
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 3,259
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 3,260
DETERMINE WHETHER AN ELECTRIC UTILITY HAS VIOLATED OR FAILED TO 3,261
COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.15, ANY 3,262
PROVISION OF DIVISIONS (A) TO (D) OF SECTION 4928.35 OF THE 3,265
REVISED CODE, OR ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE 3,267
SECTIONS; OR WHETHER AN ELECTRIC SERVICES COMPANY, ELECTRIC
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 3,269
UNDER SECTION 4928.08 OF THE REVISED CODE HAS VIOLATED OR FAILED 3,271
TO COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.10 OF 3,272
THE REVISED CODE REGARDING A COMPETITIVE RETAIL ELECTRIC SERVICE 3,273
FOR WHICH IT IS SUBJECT TO CERTIFICATION OR ANY RULE OR ORDER 3,274
ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,276
(3) IF A CONTRACT BETWEEN A MERCANTILE COMMERCIAL CUSTOMER 3,278
AND AN ELECTRIC SERVICES COMPANY STATES THAT THE FORUM FOR A 3,279
COMMERCIAL DISPUTE INVOLVING THAT COMPANY IS THROUGH A CERTIFIED 3,280
COMMERCIAL ARBITRATION PROCESS, THAT PROCESS SET FORTH IN THE 3,281
CONTRACT AND AGREED TO BY THE SIGNATORIES SHALL BE THE EXCLUSIVE 3,282
FORUM UNLESS ALL PARTIES TO THE CONTRACT AGREE IN WRITING TO AN 3,284
AMENDED PROCESS. THE COMPANY SHALL NOTIFY THE COMMISSION FOR 3,285
INFORMATIONAL PURPOSES OF ALL MATTERS FOR WHICH A CONTRACT REMEDY 3,286
IS INVOKED TO RESOLVE A DISPUTE.
(4) THE COMMISSION, BY RULE ADOPTED PURSUANT TO DIVISION 3,288
(A) OF SECTION 4928.06 OF THE REVISED CODE, SHALL ADOPT 3,289
ALTERNATIVE DISPUTE RESOLUTION PROCEDURES FOR COMPLAINTS BY 3,290
NONMERCANTILE, NONRESIDENTIAL CUSTOMERS, INCLUDING ARBITRATION 3,291
79
THROUGH A CERTIFIED COMMERCIAL ARBITRATION PROCESS AND AT THE 3,292
COMMISSION. THE COMMISSION ALSO BY SUCH RULE MAY ADOPT 3,293
ALTERNATIVE DISPUTE RESOLUTION PROCEDURES FOR COMPLAINTS BY 3,294
RESIDENTIAL CUSTOMERS.
(B) IN ADDITION TO ITS AUTHORITY UNDER DIVISION (C) OF 3,296
SECTION 4928.08 OF THE REVISED CODE AND TO ANY OTHER REMEDIES 3,298
PROVIDED BY LAW, THE COMMISSION, AFTER REASONABLE NOTICE AND 3,300
OPPORTUNITY FOR HEARING IN ACCORDANCE WITH SECTION 4905.26 OF THE 3,302
REVISED CODE, MAY DO ANY OF THE FOLLOWING: 3,303
(1) ORDER RESCISSION OF A CONTRACT, OR RESTITUTION TO 3,305
CUSTOMERS INCLUDING DAMAGES DUE TO ELECTRIC POWER FLUCTUATIONS, 3,306
IN ANY COMPLAINT BROUGHT PURSUANT TO DIVISION (A)(1) OR (2) OF 3,307
THIS SECTION; 3,308
(2) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,310
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,312
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC UTILITY 3,313
HAS VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF SECTIONS 3,314
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,315
SECTION 4928.35 OF THE REVISED CODE, OR ANY RULE OR ORDER ADOPTED 3,319
OR ISSUED UNDER THOSE SECTIONS. IN ADDITION, THE COMMISSION MAY
ORDER ANY REMEDY PROVIDED UNDER SECTION 4905.22, 4905.37, OR 3,320
4905.38 OF THE REVISED CODE IF THE VIOLATION OR FAILURE TO COMPLY 3,321
BY AN ELECTRIC UTILITY RELATED TO THE PROVISION OF A 3,322
NONCOMPETITIVE RETAIL ELECTRIC SERVICE. 3,323
(3) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,325
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,326
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC SERVICES 3,328
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT 3,329
TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE HAS 3,331
VIOLATED OR FAILED TO COMPLY, REGARDING A COMPETITIVE RETAIL 3,333
ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO CERTIFICATION, WITH 3,334
ANY PROVISION OF SECTIONS 4928.01 TO 4928.10 OF THE REVISED CODE 3,336
OR ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,337
(C)(1) IN ADDITION TO THE AUTHORITY CONFERRED UNDER 3,339
80
SECTION 4911.15 OF THE REVISED CODE, THE CONSUMERS' COUNSEL MAY 3,340
FILE A COMPLAINT UNDER DIVISION (A)(1) OR (2) OF THIS SECTION ON 3,341
BEHALF OF RESIDENTIAL CONSUMERS IN THIS STATE OR APPEAR BEFORE 3,342
THE COMMISSION AS A REPRESENTATIVE OF THOSE CONSUMERS PURSUANT TO 3,344
ANY COMPLAINT FILED UNDER DIVISION (A)(1) OR (2) OF THIS SECTION. 3,345
(2) IN ADDITION TO THE AUTHORITY CONFERRED UNDER SECTION 3,347
4911.19 OF THE REVISED CODE, THE CONSUMERS' COUNSEL, UPON 3,348
REASONABLE GROUNDS ON AND AFTER THE STARTING DATE OF COMPETITIVE 3,349
RETAIL ELECTRIC SERVICE, MAY FILE WITH THE COMMISSION UNDER 3,350
SECTION 4905.26 OF THE REVISED CODE A COMPLAINT FOR DISCOVERY IF 3,351
THE RECIPIENT OF AN INQUIRY UNDER SECTION 4911.19 OF THE REVISED 3,352
CODE FAILS TO PROVIDE A RESPONSE WITHIN THE TIME SPECIFIED IN 3,353
THAT SECTION.
(D) SECTION 4905.61 OF THE REVISED CODE APPLIES TO A 3,355
VIOLATION BY AN ELECTRIC UTILITY OF, OR TO A FAILURE OF AN 3,356
ELECTRIC UTILITY TO COMPLY WITH, ANY PROVISION OF SECTIONS 3,357
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,358
SECTION 4928.35 OF THE REVISED CODE, OR ANY RULE OR ORDER ADOPTED 3,359
OR ISSUED UNDER THOSE SECTIONS. 3,360
Sec. 4928.17. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,362
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE AND BEGINNING ON 3,363
THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, NO 3,364
ELECTRIC UTILITY SHALL ENGAGE IN THIS STATE, EITHER DIRECTLY OR 3,365
THROUGH AN AFFILIATE, IN THE BUSINESSES OF SUPPLYING A 3,366
NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING A 3,367
COMPETITIVE RETAIL ELECTRIC SERVICE, OR IN THE BUSINESSES OF 3,368
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING 3,369
A PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE, UNLESS 3,370
THE UTILITY IMPLEMENTS AND OPERATES UNDER A CORPORATE SEPARATION 3,371
PLAN THAT IS APPROVED BY THE PUBLIC UTILITIES COMMISSION UNDER 3,372
THIS SECTION, IS CONSISTENT WITH THE POLICY SPECIFIED IN SECTION 3,373
4928.02 OF THE REVISED CODE, AND ACHIEVES ALL OF THE FOLLOWING: 3,374
(1) THE PLAN PROVIDES, AT MINIMUM, FOR THE PROVISION OF 3,376
THE COMPETITIVE RETAIL ELECTRIC SERVICE OR THE NONELECTRIC 3,377
81
PRODUCT OR SERVICE THROUGH A FULLY SEPARATED AFFILIATE OR 3,378
FUNCTIONALLY SEPARATE ORGANIZATION OF THE UTILITY, AND THE PLAN 3,379
INCLUDES SEPARATE ACCOUNTING REQUIREMENTS, AND INCLUDES THE CODE 3,380
OF CONDUCT AS ORDERED BY THE COMMISSION PURSUANT TO A RULE IT 3,382
SHALL ADOPT UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,383
CODE, CONSISTENT WITH THE POLICY SPECIFIED IN SECTION 4928.02 OF 3,385
THE REVISED CODE.
(2) THE PLAN SATISFIES THE PUBLIC INTEREST IN PREVENTING 3,387
UNFAIR COMPETITIVE ADVANTAGE AND PREVENTING THE ABUSE OF MARKET 3,388
POWER.
(3) THE PLAN IS SUFFICIENT TO ENSURE THAT THE UTILITY WILL 3,390
NOT EXTEND ANY UNDUE PREFERENCE OR ADVANTAGE TO ANY AFFILIATE, 3,391
DIVISION, OR PART OF ITS OWN BUSINESS ENGAGED IN THE BUSINESS OF 3,392
SUPPLYING THE COMPETITIVE RETAIL ELECTRIC SERVICE OR NONELECTRIC 3,393
PRODUCT OR SERVICE, INCLUDING, BUT NOT LIMITED TO, UTILITY 3,394
RESOURCES SUCH AS TRUCKS, TOOLS, OFFICE EQUIPMENT, OFFICE SPACE, 3,395
SUPPLIES, CUSTOMER AND MARKETING INFORMATION, ADVERTISING, 3,396
BILLING AND MAILING SYSTEMS, PERSONNEL, AND TRAINING, WITHOUT
COMPENSATION BASED UPON FULLY LOADED EMBEDDED COSTS CHARGED TO 3,397
THE AFFILIATE; AND TO ENSURE THAT ANY SUCH AFFILIATE, DIVISION, 3,399
OR PART WILL NOT RECEIVE UNDUE PREFERENCE OR ADVANTAGE FROM ANY 3,400
AFFILIATE, DIVISION, OR PART OF THE BUSINESS ENGAGED IN BUSINESS 3,401
OF SUPPLYING THE NONCOMPETITIVE RETAIL ELECTRIC SERVICE. NO SUCH 3,402
UTILITY, AFFILIATE, DIVISION, OR PART SHALL EXTEND SUCH UNDUE 3,403
PREFERENCE. NOTWITHSTANDING ANY OTHER DIVISION OF THIS SECTION, 3,404
A UTILITY'S OBLIGATION UNDER DIVISION (A)(3) OF THIS SECTION 3,405
SHALL BE EFFECTIVE JANUARY 1, 2000. 3,406
(B) THE COMMISSION MAY APPROVE, MODIFY AND APPROVE, OR 3,408
DISAPPROVE A CORPORATE SEPARATION PLAN FILED WITH THE COMMISSION 3,409
UNDER DIVISION (A) OF THIS SECTION. AS PART OF THE CODE OF 3,410
CONDUCT REQUIRED UNDER DIVISION (A)(1) OF THIS SECTION, THE 3,411
COMMISSION SHALL ADOPT RULES PURSUANT TO DIVISION (A) OF SECTION 3,412
4928.06 OF THE REVISED CODE REGARDING CORPORATE SEPARATION AND 3,413
PROCEDURES FOR PLAN FILING AND APPROVAL. THE RULES SHALL INCLUDE 3,414
82
LIMITATIONS ON AFFILIATE PRACTICES SOLELY FOR THE PURPOSE OF 3,415
MAINTAINING A SEPARATION OF THE AFFILIATE'S BUSINESS FROM THE 3,416
BUSINESS OF THE UTILITY TO PREVENT UNFAIR COMPETITIVE ADVANTAGE 3,418
BY VIRTUE OF THAT RELATIONSHIP. THE RULES ALSO SHALL INCLUDE AN 3,419
OPPORTUNITY FOR ANY PERSON HAVING A REAL AND SUBSTANTIAL INTEREST
IN THE CORPORATE SEPARATION PLAN TO FILE SPECIFIC OBJECTIONS TO 3,421
THE PLAN AND PROPOSE SPECIFIC RESPONSES TO ISSUES RAISED IN THE 3,423
OBJECTIONS, WHICH OBJECTIONS AND RESPONSES THE COMMISSION SHALL 3,424
ADDRESS IN ITS FINAL ORDER. PRIOR TO COMMISSION APPROVAL OF THE 3,425
PLAN, THE COMMISSION SHALL AFFORD A HEARING UPON THOSE ASPECTS OF 3,426
THE PLAN THAT THE COMMISSION DETERMINES REASONABLY REQUIRE A 3,427
HEARING. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF A 3,428
SUBSTANTIALLY INADEQUATE PLAN UNDER THIS SECTION. 3,429
(C) THE COMMISSION SHALL ISSUE AN ORDER APPROVING OR 3,431
MODIFYING AND APPROVING A CORPORATE SEPARATION PLAN UNDER THIS 3,432
SECTION, TO BE EFFECTIVE ON THE DATE SPECIFIED IN THE ORDER, ONLY 3,434
UPON FINDINGS THAT THE PLAN REASONABLY COMPLIES WITH THE 3,435
REQUIREMENTS OF DIVISION (A) OF THIS SECTION AND WILL PROVIDE FOR 3,436
ONGOING COMPLIANCE WITH THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE. 3,437
(D) ANY PARTY MAY SEEK AN AMENDMENT TO A CORPORATE 3,439
SEPARATION PLAN APPROVED UNDER THIS SECTION, AND THE COMMISSION, 3,440
PURSUANT TO A REQUEST FROM ANY PARTY OR ON ITS OWN INITIATIVE, 3,441
MAY ORDER AS IT CONSIDERS NECESSARY THE FILING OF AN AMENDED 3,442
CORPORATE SEPARATION PLAN TO REFLECT CHANGED CIRCUMSTANCES. 3,443
(E) NOTWITHSTANDING SECTION 4905.20, 4905.21, 4905.46, OR 3,445
4905.48 OF THE REVISED CODE, AN ELECTRIC UTILITY MAY DIVEST 3,446
ITSELF OF ANY GENERATING ASSET AT ANY TIME WITHOUT COMMISSION 3,447
APPROVAL, SUBJECT TO THE PROVISIONS OF TITLE XLIX OF THE REVISED 3,448
CODE RELATING TO THE TRANSFER OF TRANSMISSION, DISTRIBUTION, OR
ANCILLARY SERVICE PROVIDED BY SUCH GENERATING ASSET. 3,449
Sec. 4928.18. (A) NOTWITHSTANDING DIVISION (D)(2)(a) OF 3,452
SECTION 4909.15 OF THE REVISED CODE, NOTHING IN THIS CHAPTER 3,453
PREVENTS THE PUBLIC UTILITIES COMMISSION FROM EXERCISING ITS 3,454
83
AUTHORITY UNDER TITLE XLIX OF THE REVISED CODE TO PROTECT 3,456
CUSTOMERS OF RETAIL ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC
UTILITY FROM ANY ADVERSE EFFECT OF THE UTILITY'S PROVISION OF A 3,457
PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE. 3,459
(B) THE COMMISSION HAS JURISDICTION UNDER SECTION 4905.26 3,461
OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 3,462
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 3,464
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 3,465
DETERMINE WHETHER AN ELECTRIC UTILITY OR ITS AFFILIATE HAS 3,466
VIOLATED ANY PROVISION OF SECTION 4928.17 OF THE REVISED CODE OR
AN ORDER ISSUED OR RULE ADOPTED UNDER THAT SECTION. FOR THIS 3,468
PURPOSE, THE COMMISSION MAY EXAMINE SUCH BOOKS, ACCOUNTS, OR 3,469
OTHER RECORDS KEPT BY AN ELECTRIC UTILITY OR ITS AFFILIATE AS MAY 3,470
RELATE TO THE BUSINESSES FOR WHICH CORPORATE SEPARATION IS 3,471
REQUIRED UNDER SECTION 4928.17 OF THE REVISED CODE, AND MAY 3,472
INVESTIGATE SUCH UTILITY OR AFFILIATE OPERATIONS AS MAY RELATE TO
THOSE BUSINESSES AND INVESTIGATE THE INTERRELATIONSHIP OF THOSE 3,474
OPERATIONS. ANY SUCH EXAMINATION OR INVESTIGATION BY THE
COMMISSION SHALL BE GOVERNED BY CHAPTER 4903. OF THE REVISED 3,476
CODE.
(C) IN ADDITION TO ANY REMEDIES OTHERWISE PROVIDED BY LAW, 3,478
THE COMMISSION, REGARDING A DETERMINATION OF A VIOLATION PURSUANT 3,479
TO DIVISION (B) OF THIS SECTION, MAY DO ANY OF THE FOLLOWING: 3,481
(1) ISSUE AN ORDER DIRECTING THE UTILITY OR AFFILIATE TO 3,483
COMPLY;
(2) MODIFY AN ORDER AS THE COMMISSION FINDS REASONABLE AND 3,485
APPROPRIATE AND ORDER THE UTILITY OR AFFILIATE TO COMPLY WITH THE 3,486
MODIFIED ORDER; 3,487
(3) SUSPEND OR ABROGATE AN ORDER, IN WHOLE OR IN PART; 3,489
(4) ISSUE AN ORDER THAT THE UTILITY OR AFFILIATE PAY 3,491
RESTITUTION TO ANY PERSON INJURED BY THE VIOLATION OR FAILURE TO 3,492
COMPLY.
(D) SECTION 4905.61 OF THE REVISED CODE APPLIES IN THE 3,494
CASE OF ANY VIOLATION OF SECTION 4928.17 OF THE REVISED CODE OR 3,495
84
OF ANY RULE ADOPTED OR ORDER ISSUED UNDER THAT SECTION. 3,496
Sec. 4928.19. AS PART OF THEIR ONGOING CONSUMER EDUCATION 3,498
EFFORTS, THE PUBLIC UTILITIES COMMISSION AND THE OFFICE OF THE 3,499
CONSUMERS' COUNSEL SHALL ENGAGE IN COOPERATIVE AGENCY EFFORTS TO 3,500
EDUCATE CONSUMERS IN THIS STATE REGARDING ELECTRIC INDUSTRY 3,501
RESTRUCTURING UNDER THIS CHAPTER. 3,502
Sec. 4928.20. (A) ON OR AFTER THE STARTING DATE OF 3,504
COMPETITIVE RETAIL ELECTRIC SERVICE, THE LEGISLATIVE AUTHORITY OF 3,505
A MUNICIPAL CORPORATION MAY ADOPT AN ORDINANCE, OR THE BOARD OF 3,506
TOWNSHIP TRUSTEES OF A TOWNSHIP OR THE BOARD OF COUNTY 3,507
COMMISSIONERS OF A COUNTY MAY ADOPT A RESOLUTION, UNDER WHICH IT 3,508
MAY AGGREGATE IN ACCORDANCE WITH THIS SECTION THE RETAIL 3,509
ELECTRICAL LOADS LOCATED, RESPECTIVELY, WITHIN THE MUNICIPAL 3,510
CORPORATION, TOWNSHIP, OR UNINCORPORATED AREA OF THE COUNTY AND, 3,511
FOR THAT PURPOSE, MAY ENTER INTO SERVICE AGREEMENTS TO FACILITATE 3,512
FOR THOSE LOADS THE SALE AND PURCHASE OF ELECTRICITY. THE 3,513
LEGISLATIVE AUTHORITY OR BOARD ALSO MAY EXERCISE SUCH AUTHORITY 3,514
JOINTLY WITH ANY OTHER SUCH LEGISLATIVE AUTHORITY OR BOARD. AN 3,515
ORDINANCE OR RESOLUTION UNDER THIS DIVISION SHALL SPECIFY WHETHER 3,516
THE AGGREGATION WILL OCCUR ONLY WITH THE PRIOR CONSENT OF EACH 3,517
PERSON OWNING, OCCUPYING, CONTROLLING, OR USING AN ELECTRIC LOAD 3,518
CENTER PROPOSED TO BE AGGREGATED OR WILL OCCUR AUTOMATICALLY FOR 3,519
ALL SUCH PERSONS PURSUANT TO THE OPT-OUT REQUIREMENTS OF DIVISION 3,520
(D) OF THIS SECTION. NOTHING IN THIS DIVISION, HOWEVER, 3,521
AUTHORIZES THE AGGREGATION OF SUCH RETAIL ELECTRIC LOADS OF AN 3,523
ELECTRIC LOAD CENTER, AS DEFINED IN SECTION 4933.81 OF THE
REVISED CODE, THAT IS LOCATED IN THE CERTIFIED TERRITORY OF A 3,525
NONPROFIT ELECTRIC SUPPLIER UNDER SECTIONS 4933.81 TO 4933.90 OF
THE REVISED CODE OR AN ELECTRIC LOAD CENTER SERVED BY 3,526
TRANSMISSION OR DISTRIBUTION FACILITIES OF A MUNICIPAL ELECTRIC 3,527
UTILITY.
(B) IF AN ORDINANCE OR RESOLUTION ADOPTED UNDER DIVISION 3,530
(A) OF THIS SECTION SPECIFIES THAT AGGREGATION WILL OCCUR 3,531
AUTOMATICALLY AS DESCRIBED IN THAT DIVISION, THE ORDINANCE OR 3,532
85
RESOLUTION SHALL DIRECT THE BOARD OF ELECTIONS TO SUBMIT THE 3,533
QUESTION OF THE AUTHORITY TO AGGREGATE TO THE ELECTORS OF THE 3,534
RESPECTIVE MUNICIPAL CORPORATION, TOWNSHIP, OR UNINCORPORATED 3,535
AREA OF A COUNTY AT A SPECIAL ELECTION ON THE DAY OF THE NEXT 3,536
PRIMARY OR GENERAL ELECTION IN THE MUNICIPAL CORPORATION, 3,537
TOWNSHIP, OR COUNTY. THE LEGISLATIVE AUTHORITY OR BOARD SHALL 3,538
CERTIFY A COPY OF THE ORDINANCE OR RESOLUTION TO THE BOARD OF 3,539
ELECTIONS NOT LESS THAN SEVENTY-FIVE DAYS BEFORE THE DAY OF THE 3,540
SPECIAL ELECTION. NO ORDINANCE OR RESOLUTION ADOPTED UNDER 3,541
DIVISION (A) OF THIS SECTION THAT PROVIDES FOR AN ELECTION UNDER 3,542
THIS DIVISION SHALL TAKE EFFECT UNLESS APPROVED BY A MAJORITY OF 3,543
THE ELECTORS VOTING UPON THE ORDINANCE OR RESOLUTION AT THE
ELECTION HELD PURSUANT TO THIS DIVISION. 3,544
(C) UPON THE APPLICABLE REQUISITE AUTHORITY UNDER 3,546
DIVISIONS (A) AND (B) OF THIS SECTION, THE LEGISLATIVE AUTHORITY 3,547
OR BOARD SHALL DEVELOP A PLAN OF OPERATION AND GOVERNANCE FOR THE 3,548
AGGREGATION PROGRAM SO AUTHORIZED. BEFORE ADOPTING A PLAN UNDER 3,549
THIS DIVISION, THE LEGISLATIVE AUTHORITY OR BOARD SHALL HOLD AT 3,550
LEAST TWO PUBLIC HEARINGS ON THE PLAN. BEFORE THE FIRST HEARING, 3,551
THE LEGISLATIVE AUTHORITY OR BOARD SHALL PUBLISH NOTICE OF THE 3,552
HEARINGS ONCE A WEEK FOR TWO CONSECUTIVE WEEKS IN A NEWSPAPER OF 3,553
GENERAL CIRCULATION IN THE JURISDICTION. THE NOTICE SHALL 3,554
SUMMARIZE THE PLAN AND STATE THE DATE, TIME, AND LOCATION OF EACH 3,555
HEARING. 3,556
(D) NO LEGISLATIVE AUTHORITY OR BOARD, PURSUANT TO AN 3,558
ORDINANCE OR RESOLUTION UNDER DIVISIONS (A) AND (B) OF THIS 3,559
SECTION THAT PROVIDES FOR AUTOMATIC AGGREGATION AS DESCRIBED IN 3,560
DIVISION (A) OF THIS SECTION, SHALL AGGREGATE THE ELECTRICAL LOAD 3,561
OF ANY ELECTRIC LOAD CENTER LOCATED WITHIN ITS JURISDICTION 3,562
UNLESS IT IN ADVANCE CLEARLY DISCLOSES TO THE PERSON OWNING,
OCCUPYING, CONTROLLING, OR USING THE LOAD CENTER THAT THE PERSON 3,564
WILL BE ENROLLED AUTOMATICALLY IN THE AGGREGATION PROGRAM AND 3,565
WILL REMAIN SO ENROLLED UNLESS THE PERSON AFFIRMATIVELY ELECTS BY 3,566
A STATED PROCEDURE NOT TO BE SO ENROLLED. THE DISCLOSURE SHALL 3,567
86
STATE PROMINENTLY THE RATES, CHARGES, AND OTHER TERMS AND 3,568
CONDITIONS OF ENROLLMENT. THE STATED PROCEDURE SHALL ALLOW ANY 3,569
PERSON ENROLLED IN THE AGGREGATION PROGRAM THE OPPORTUNITY TO OPT 3,570
OUT OF THE PROGRAM EVERY TWO YEARS, WITHOUT PAYING A SWITCHING 3,571
FEE. ANY SUCH PERSON THAT OPTS OUT OF THE AGGREGATION PROGRAM 3,573
PURSUANT TO THE STATED PROCEDURE SHALL DEFAULT TO THE STANDARD 3,574
SERVICE OFFER PROVIDED UNDER DIVISION (A) OF SECTION 4928.14 OR 3,575
DIVISION (D) OF SECTION 4928.35 OF THE REVISED CODE UNTIL THE 3,576
PERSON CHOOSES AN ALTERNATIVE SUPPLIER.
(E)(1) WITH RESPECT TO A GOVERNMENTAL AGGREGATION FOR A 3,578
MUNICIPAL CORPORATION THAT IS AUTHORIZED PURSUANT TO DIVISION (A) 3,579
TO (D) OF THIS SECTION, RESOLUTIONS MAY BE PROPOSED BY INITIATIVE 3,581
OR REFERENDUM PETITIONS IN ACCORDANCE WITH SECTIONS 731.28 TO 3,582
731.41 OF THE REVISED CODE. 3,583
(2) WITH RESPECT TO A GOVERNMENTAL AGGREGATION FOR A 3,585
TOWNSHIP OR THE UNINCORPORATED AREA OF A COUNTY, WHICH 3,586
AGGREGATION IS AUTHORIZED PURSUANT TO DIVISION (A) TO (D) OF THIS 3,587
SECTION, RESOLUTIONS MAY BE PROPOSED BY INITIATIVE OR REFERENDUM 3,589
PETITIONS IN ACCORDANCE WITH SECTIONS 731.28 TO 731.40 OF THE 3,590
REVISED CODE, EXCEPT THAT: 3,591
(a) THE PETITIONS SHALL BE FILED, RESPECTIVELY, WITH THE 3,593
TOWNSHIP CLERK OR THE BOARD OF COUNTY COMMISSIONERS, WHO SHALL 3,594
PERFORM THOSE DUTIES IMPOSED UNDER THOSE SECTIONS UPON THE CITY 3,596
AUDITOR OR VILLAGE CLERK.
(b) THE PETITIONS SHALL CONTAIN THE SIGNATURES OF NOT LESS 3,598
THAN TEN PER CENT OF THE TOTAL NUMBER OF ELECTORS IN, 3,599
RESPECTIVELY, THE TOWNSHIP OR THE UNINCORPORATED AREA OF THE 3,601
COUNTY WHO VOTED FOR THE OFFICE OF GOVERNOR AT THE PRECEDING 3,602
GENERAL ELECTION FOR THAT OFFICE IN THAT AREA.
(F) A GOVERNMENTAL AGGREGATOR UNDER DIVISION (A) OF THIS 3,604
SECTION IS NOT A PUBLIC UTILITY ENGAGING IN THE WHOLESALE 3,606
PURCHASE AND RESALE OF ELECTRICITY, AND PROVISION OF THE 3,607
AGGREGATED SERVICE IS NOT A WHOLESALE UTILITY TRANSACTION. A 3,609
GOVERNMENTAL AGGREGATOR SHALL BE SUBJECT TO SUPERVISION AND 3,610
87
REGULATION BY THE PUBLIC UTILITIES COMMISSION ONLY TO THE EXTENT 3,611
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE IT PROVIDES AND 3,612
COMMISSION AUTHORITY UNDER THIS CHAPTER.
(G) THIS SECTION DOES NOT APPLY IN THE CASE OF A MUNICIPAL 3,614
CORPORATION THAT SUPPLIES SUCH AGGREGATED SERVICE TO ELECTRIC 3,615
LOAD CENTERS TO WHICH ITS MUNICIPAL ELECTRIC UTILITY ALSO 3,616
SUPPLIES A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 3,617
TRANSMISSION OR DISTRIBUTION FACILITIES THE UTILITY SINGLY OR 3,618
JOINTLY OWNS OR OPERATES. 3,619
Sec. 4928.31. (A) NOT LATER THAN NINETY DAYS AFTER THE 3,621
EFFECTIVE DATE OF THIS SECTION, AN ELECTRIC UTILITY SUPPLYING 3,622
RETAIL ELECTRIC SERVICE IN THIS STATE ON THAT DATE SHALL FILE 3,624
WITH THE PUBLIC UTILITIES COMMISSION A PLAN FOR THE UTILITY'S 3,625
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE DURING THE 3,626
MARKET DEVELOPMENT PERIOD. THIS TRANSITION PLAN SHALL BE IN SUCH 3,627
FORM AS THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,628
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE AND SHALL 3,629
INCLUDE ALL OF THE FOLLOWING:
(1) A RATE UNBUNDLING PLAN THAT SPECIFIES, CONSISTENT WITH 3,631
DIVISIONS (A)(1) TO (7) OF SECTION 4928.34 OF THE REVISED CODE 3,632
AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF 3,633
SECTION 4928.06 OF THE REVISED CODE, THE UNBUNDLED COMPONENTS FOR 3,634
ELECTRIC GENERATION, TRANSMISSION, AND DISTRIBUTION SERVICE AND 3,635
SUCH OTHER UNBUNDLED SERVICE COMPONENTS AS THE COMMISSION 3,636
REQUIRES, TO BE CHARGED BY THE UTILITY BEGINNING ON THE STARTING 3,637
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE AND THAT INCLUDES 3,638
INFORMATION THE COMMISSION REQUIRES TO FIX AND DETERMINE THOSE 3,639
COMPONENTS;
(2) A CORPORATE SEPARATION PLAN CONSISTENT WITH SECTION 3,641
4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,642
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,644
CODE;
(3) SUCH PLAN OR PLANS AS THE COMMISSION REQUIRES TO 3,646
ADDRESS OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,647
88
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,648
SERVICE CONSISTENT WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,649
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE; 3,650
(4) AN EMPLOYEE ASSISTANCE PLAN FOR PROVIDING SEVERANCE, 3,652
RETRAINING, EARLY RETIREMENT, RETENTION, OUTPLACEMENT, AND OTHER 3,654
ASSISTANCE FOR THE UTILITY'S EMPLOYEES WHOSE EMPLOYMENT IS 3,655
AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING UNDER THIS CHAPTER; 3,656
(5) A CONSUMER EDUCATION PLAN CONSISTENT WITH SECTION 3,658
4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,659
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,660
CODE.
ADDITIONALLY, A TRANSITION PLAN UNDER THIS SECTION MAY 3,662
INCLUDE AN APPLICATION FOR THE OPPORTUNITY TO RECEIVE TRANSITION 3,663
REVENUES AS AUTHORIZED UNDER SECTIONS 4928.31 TO 4928.40 OF THE 3,665
REVISED CODE, WHICH APPLICATION SHALL BE CONSISTENT WITH THOSE 3,667
SECTIONS AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION 3,668
(A) OF SECTION 4928.06 OF THE REVISED CODE. THE TRANSITION PLAN
ALSO MAY INCLUDE A PLAN FOR THE INDEPENDENT OPERATION OF THE 3,669
UTILITY'S TRANSMISSION FACILITIES CONSISTENT WITH SECTION 4928.12 3,670
OF THE REVISED CODE, DIVISION (A)(13) OF SECTION 4928.34 OF THE 3,671
REVISED CODE, AND ANY RULES ADOPTED BY THE COMMISSION UNDER 3,672
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE.
THE COMMISSION MAY REJECT AND REQUIRE REFILING, IN WHOLE OR 3,674
IN PART, OF ANY SUBSTANTIALLY INADEQUATE TRANSITION PLAN. 3,675
(B) THE ELECTRIC UTILITY SHALL PROVIDE PUBLIC NOTICE OF 3,677
ITS FILING UNDER DIVISION (A) OF THIS SECTION, IN A FORM AND 3,678
MANNER THAT THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,679
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. HOWEVER, 3,680
THE ADOPTION OF RULES REGARDING THE PUBLIC NOTICE UNDER THIS 3,681
DIVISION, REGARDING THE FORM OF THE TRANSITION PLAN UNDER 3,682
DIVISION (A) OF THIS SECTION, AND REGARDING PROCEDURES FOR 3,683
EXPEDITED DISCOVERY UNDER DIVISION (A) OF SECTION 4928.32 OF THE 3,684
REVISED CODE ARE NOT SUBJECT TO DIVISION (D) OF SECTION 111.15 OF 3,685
THE REVISED CODE.
89
Sec. 4928.32. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,687
ESTABLISH REASONABLE PROCEDURES FOR EXPEDITED DISCOVERY IN ANY 3,688
PROCEEDING INITIATED TO CONSIDER A TRANSITION PLAN FILED UNDER 3,690
SECTION 4928.31 OF THE REVISED CODE.
(B) NOT LATER THAN FORTY-FIVE DAYS AFTER THE DATE ON WHICH 3,692
AN ELECTRIC UTILITY FILES A TRANSITION PLAN UNDER SECTION 4928.31 3,693
OF THE REVISED CODE, ANY PERSON HAVING A REAL AND SUBSTANTIAL 3,694
INTEREST IN THE TRANSITION PLAN MAY FILE WITH THE COMMISSION 3,695
PRELIMINARY OBJECTIONS TO THE TRANSITION PLAN, WHICH SHALL 3,696
IDENTIFY WITH SPECIFICITY ISSUES PERTAINING TO ANY ASPECT OF THE 3,697
TRANSITION PLAN, AND ANY SUCH PERSON MAY PROPOSE SPECIFIC 3,698
RESPONSES TO THOSE ISSUES. THE COMMISSION SHALL ADDRESS THOSE 3,699
OBJECTIONS AND RESPONSES IN ITS FINAL ORDER. 3,700
IN ADDITION, NOT LATER THAN NINETY DAYS AFTER THE PLAN'S 3,702
FILING, THE COMMISSION STAFF SHALL FILE WITH THE COMMISSION A 3,704
REPORT OF ITS RECOMMENDATIONS WITH RESPECT TO THE PLAN. PRIOR TO 3,705
COMMISSION APPROVAL OF THE PLAN, THE COMMISSION SHALL AFFORD A 3,706
HEARING UPON THOSE ASPECTS OF THE PLAN THAT THE COMMISSION 3,707
DETERMINES REASONABLY REQUIRE A HEARING.
(C) THE COMMISSION SHALL MAINTAIN A COMPLETE RECORD OF ALL 3,709
PROCEEDINGS RELATIVE TO A TRANSITION PLAN FILED UNDER SECTION 3,710
4928.31 OF THE REVISED CODE AND SHALL ISSUE AND FILE WITH THE 3,711
RECORD OF THE CASE FINDINGS OF FACT AND WRITTEN OPINIONS SETTING 3,712
FORTH THE REASONS FOR ANY MODIFICATION TO OR ITS APPROVAL OF A 3,713
TRANSITION PLAN. 3,714
Sec. 4928.33. (A) NOT LATER THAN TWO HUNDRED SEVENTY-FIVE 3,716
DAYS AFTER THE DATE AN ELECTRIC UTILITY FILES A TRANSITION PLAN 3,717
UNDER SECTION 4928.31 OF THE REVISED CODE, BUT, IN ANY EVENT, NOT 3,718
LATER THAN OCTOBER 31, 2000, THE PUBLIC UTILITIES COMMISSION 3,720
SHALL ISSUE A FINAL ORDER APPROVING THE TRANSITION PLAN AS FILED 3,721
UNDER SECTION 4928.31 OF THE REVISED CODE OR AN ORDER MODIFYING 3,722
AND APPROVING THAT PLAN. THE ORDER IS SUBJECT TO SECTION 4903.15 3,723
OF THE REVISED CODE AND IS SUBJECT TO REVIEW AND APPEAL UNDER 3,724
CHAPTER 4903. OF THE REVISED CODE.
90
(B) IF THE COMMISSION FAILS TO ISSUE, BY OCTOBER 31, 2000, 3,727
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, 3,728
THE COMMISSION SHALL ISSUE AN INTERIM ORDER PRESCRIBING A 3,730
TRANSITION PLAN, TO HAVE EFFECT ON AN INTERIM BASIS ONLY, AND 3,731
CONTAINING THE PLAN COMPONENTS REQUIRED BY DIVISION (A) OF 3,732
SECTION 4928.31 OF THE REVISED CODE AND PROVIDING FOR THE 3,734
OPPORTUNITY FOR TRANSITION REVENUE RECEIPT IF SUCH AN APPLICATION
WERE INCLUDED IN THE PLAN FILED BY THE UTILITY UNDER THAT 3,735
SECTION. THE INTERIM ORDER IS SUBJECT TO SECTION 4903.15 OF THE 3,736
REVISED CODE BUT IS NOT SUBJECT TO REVIEW AND APPEAL UNDER 3,737
CHAPTER 4903. OF THE REVISED CODE. 3,738
AN INTERIM PLAN PRESCRIBED UNDER THE INTERIM ORDER SHALL BE 3,740
EFFECTIVE FOR THE ELECTRIC UTILITY BEGINNING ON THE STARTING DATE 3,741
OF COMPETITIVE RETAIL ELECTRIC SERVICE AND SHALL CONTINUE IN 3,742
EFFECT UNTIL SUCH TIME AS ANY OTHER REPLACEMENT TRANSITION PLAN 3,743
TAKES EFFECT PURSUANT TO A FINAL COMMISSION ORDER OR RESOLUTION 3,744
OF AN APPEAL. ANY INTERIM PLAN SO PRESCRIBED SHALL COMPLY WITH 3,745
THE APPLICABLE PROVISIONS OF SECTION 4928.34 OF THE REVISED CODE. 3,747
A FINAL COMMISSION ORDER SHALL PROVIDE FOR A RECONCILIATION OF
THOSE AMOUNTS DETERMINED IN THE FINAL ORDER RELATIVE TO DIVISION 3,748
(A) OF SECTION 4928.31 OF THE REVISED CODE AS COMPARED TO THE 3,749
INTERIM AMOUNTS AS DETERMINED UNDER THIS DIVISION. 3,750
(C) NO ELECTRIC UTILITY REQUIRED TO FILE A TRANSITION PLAN 3,752
UNDER SECTION 4928.31 OF THE REVISED CODE SHALL FAIL TO IMPLEMENT 3,753
A TRANSITION PLAN APPROVED OR PRESCRIBED FOR THE UTILITY BY A 3,754
COMMISSION ORDER ISSUED UNDER DIVISION (A) OR (B) OF THIS 3,755
SECTION. NO ELECTRIC UTILITY SHALL PROVIDE RETAIL ELECTRIC 3,756
SERVICE IN THIS STATE DURING THE MARKET DEVELOPMENT PERIOD EXCEPT 3,757
PURSUANT TO SUCH AN APPROVED OR PRESCRIBED TRANSITION PLAN. 3,758
Sec. 4928.34. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,760
NOT APPROVE OR PRESCRIBE A TRANSITION PLAN UNDER DIVISION (A) OR 3,761
(B) OF SECTION 4928.33 OF THE REVISED CODE UNLESS THE COMMISSION 3,763
FIRST MAKES ALL OF THE FOLLOWING DETERMINATIONS: 3,764
91
(1) THE UNBUNDLED COMPONENTS FOR THE ELECTRIC TRANSMISSION 3,766
COMPONENT OF RETAIL ELECTRIC SERVICE, AS SPECIFIED IN THE 3,767
UTILITY'S RATE UNBUNDLING PLAN REQUIRED BY DIVISION (A)(1) OF 3,769
SECTION 4928.31 OF THE REVISED CODE, EQUAL THE TARIFF RATES 3,770
DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION THAT ARE
IN EFFECT ON THE DATE OF THE APPROVAL OF THE TRANSITION PLAN 3,771
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AS EACH 3,772
SUCH RATE IS DETERMINED APPLICABLE TO EACH PARTICULAR CUSTOMER 3,774
CLASS AND RATE SCHEDULE BY THE COMMISSION. THE UNBUNDLED 3,775
TRANSMISSION COMPONENT SHALL INCLUDE A SLIDING SCALE OF CHARGES 3,776
UNDER DIVISION (B) OF SECTION 4905.31 OF THE REVISED CODE TO 3,778
ENSURE THAT REFUNDS DETERMINED OR APPROVED BY THE FEDERAL ENERGY 3,779
REGULATORY COMMISSION ARE FLOWED THROUGH TO RETAIL ELECTRIC 3,781
CUSTOMERS.
(2) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,783
DISTRIBUTION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE 3,784
DIFFERENCE BETWEEN THE COSTS ATTRIBUTABLE TO THE UTILITY'S 3,785
TRANSMISSION AND DISTRIBUTION RATES AND CHARGES UNDER ITS 3,786
SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE EFFECTIVE DATE OF 3,787
THIS SECTION, BASED UPON THE RECORD IN THE MOST RECENT RATE 3,788
PROCEEDING OF THE UTILITY FOR WHICH THE UTILITY'S SCHEDULE WAS
ESTABLISHED, AND THE TARIFF RATES FOR ELECTRIC TRANSMISSION 3,790
SERVICE DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION AS 3,791
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION. 3,792
(3) ALL OTHER UNBUNDLED COMPONENTS REQUIRED BY THE 3,794
COMMISSION IN THE RATE UNBUNDLING PLAN EQUAL THE COSTS 3,795
ATTRIBUTABLE TO THE PARTICULAR SERVICE AS REFLECTED IN THE 3,796
UTILITY'S SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE 3,797
EFFECTIVE DATE OF THIS SECTION.
(4) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,799
GENERATION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE RESIDUAL 3,800
AMOUNT REMAINING AFTER THE DETERMINATION OF THE TRANSMISSION, 3,801
DISTRIBUTION, AND OTHER UNBUNDLED COMPONENTS, AND AFTER ANY 3,802
ADJUSTMENTS NECESSARY TO REFLECT THE EFFECTS OF THE AMENDMENT OF 3,803
92
SECTION 5727.111 OF THE REVISED CODE BY SUB. S. B. NO. 3 OF THE 3,807
123rd GENERAL ASSEMBLY. 3,808
(5) ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN 3,810
HAVE BEEN ADJUSTED TO REFLECT ANY BASE RATE REDUCTIONS ON FILE 3,811
WITH THE COMMISSION AND AS SCHEDULED TO BE IN EFFECT DURING THE 3,812
MARKET DEVELOPMENT PERIOD UNDER RATE SETTLEMENTS IN EFFECT ON THE 3,814
EFFECTIVE DATE OF THIS SECTION. ALL SUCH BASE RATE REDUCTIONS
SHALL BE INCLUDED IN THE UNBUNDLED GENERATION COMPONENT. 3,815
HOWEVER, ALL EARNINGS OBLIGATIONS, RESTRICTIONS, OTHER 3,816
REQUIREMENTS, OR CAPS IMPOSED ON AN ELECTRIC UTILITY IN A 3,818
COMMISSION ORDER PRIOR TO THE EFFECTIVE DATE OF THIS SECTION ARE 3,819
VOID.
(6) SUBJECT TO DIVISION (A)(5) OF THIS SECTION, THE TOTAL 3,821
OF ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN ARE 3,823
CAPPED AND SHALL EQUAL DURING THE MARKET DEVELOPMENT PERIOD,
EXCEPT AS SPECIFICALLY PROVIDED IN THIS CHAPTER, THE TOTAL OF ALL 3,825
RATES AND CHARGES IN EFFECT UNDER THE APPLICABLE BUNDLED SCHEDULE 3,826
OF THE ELECTRIC UTILITY PURSUANT TO SECTION 4905.30 OF THE 3,827
REVISED CODE IN EFFECT ON THE DAY BEFORE THE EFFECTIVE DATE OF 3,829
THIS SECTION, INCLUDING THE TRANSITION CHARGE DETERMINED UNDER 3,830
SECTION 4928.40 OF THE REVISED CODE, ADJUSTED FOR ANY CHANGES IN
THE TAXATION OF ELECTRIC UTILITIES AND RETAIL ELECTRIC SERVICE 3,831
UNDER SUB. S.B. NO. 3 OF THE 123rd GENERAL ASSEMBLY, THE 3,834
UNIVERSAL SERVICE RIDER AUTHORIZED BY SECTION 4928.51 OF THE 3,835
REVISED CODE, AND THE TEMPORARY RIDER AUTHORIZED BY SECTION 3,836
4928.61 OF THE REVISED CODE. FOR THE PURPOSE OF THIS DIVISION, 3,838
THE RATE CAP APPLICABLE TO A CUSTOMER RECEIVING ELECTRIC SERVICE 3,839
PURSUANT TO AN ARRANGEMENT APPROVED BY THE COMMISSION UNDER 3,840
SECTION 4905.31 OF THE REVISED CODE IS, FOR THE TERM OF THE 3,841
ARRANGEMENT, THE TOTAL OF ALL RATES AND CHARGES IN EFFECT UNDER 3,842
THE ARRANGEMENT. 3,843
(7) THE RATE UNBUNDLING PLAN COMPLIES WITH ANY RULES 3,845
ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 3,846
OF THE REVISED CODE.
93
(8) THE CORPORATE SEPARATION PLAN REQUIRED BY DIVISION 3,848
(A)(2) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,849
SECTION 4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,850
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,852
CODE.
(9) ANY PLAN OR PLANS THE COMMISSION REQUIRES TO ADDRESS 3,854
OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,855
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,856
SERVICE COMPLY WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,857
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 3,858
(10) THE EMPLOYEE ASSISTANCE PLAN REQUIRED BY DIVISION 3,860
(A)(4) OF SECTION 4928.31 OF THE REVISED CODE SUFFICIENTLY 3,861
PROVIDES SEVERANCE, RETRAINING, EARLY RETIREMENT, RETENTION, 3,862
OUTPLACEMENT, AND OTHER ASSISTANCE FOR THE UTILITY'S EMPLOYEES 3,863
WHOSE EMPLOYMENT IS AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING
UNDER THIS CHAPTER. 3,865
(11) THE CONSUMER EDUCATION PLAN REQUIRED UNDER DIVISION 3,867
(A)(5) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,868
SECTION 4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,869
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,870
CODE.
(12) THE TRANSITION REVENUES FOR WHICH AN ELECTRIC UTILITY 3,872
IS AUTHORIZED A REVENUE OPPORTUNITY UNDER SECTIONS 4928.31 TO 3,874
4928.40 OF THE REVISED CODE ARE THE ALLOWABLE TRANSITION COSTS OF 3,875
THE UTILITY AS SUCH COSTS ARE DETERMINED BY THE COMMISSION 3,876
PURSUANT TO SECTION 4928.39 OF THE REVISED CODE, AND THE 3,877
TRANSITION CHARGES FOR THE CUSTOMER CLASSES AND RATE SCHEDULES OF 3,878
THE UTILITY ARE THE CHARGES DETERMINED PURSUANT TO SECTION 3,879
4928.40 OF THE REVISED CODE. 3,880
(13) ANY INDEPENDENT TRANSMISSION PLAN INCLUDED IN THE 3,883
TRANSITION PLAN FILED UNDER SECTION 4928.31 OF THE REVISED CODE
REASONABLY COMPLIES WITH SECTION 4928.12 OF THE REVISED CODE AND 3,884
ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 3,886
4928.06 OF THE REVISED CODE, UNLESS THE COMMISSION, FOR GOOD 3,887
94
CAUSE SHOWN, AUTHORIZES THE UTILITY TO DEFER COMPLIANCE UNTIL AN 3,888
ORDER IS ISSUED UNDER DIVISION (G) OF SECTION 4928.35 OF THE 3,889
REVISED CODE.
(14) THE UTILITY IS IN COMPLIANCE WITH SECTIONS 4928.01 TO 3,891
4928.11 OF THE REVISED CODE AND ANY RULES OR ORDERS OF THE 3,892
COMMISSION ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,894
(15) ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN 3,896
HAVE BEEN ADJUSTED TO REFLECT THE ELIMINATION OF THE TAX ON GROSS 3,897
RECEIPTS IMPOSED BY SECTION 5727.30 OF THE REVISED CODE. 3,898
IN ADDITION, A TRANSITION PLAN APPROVED BY THE COMMISSION 3,900
UNDER SECTION 4928.33 OF THE REVISED CODE BUT NOT CONTAINING AN 3,901
APPROVED INDEPENDENT TRANSMISSION PLAN SHALL CONTAIN THE EXPRESS 3,902
CONDITIONS THAT THE UTILITY WILL COMPLY WITH AN ORDER ISSUED 3,903
UNDER DIVISION (G) OF SECTION 4928.35 OF THE REVISED CODE. 3,904
(B) SUBJECT TO DIVISION (E) OF SECTION 4928.17 OF THE 3,907
REVISED CODE, IF THE COMMISSION FINDS THAT ANY PART OF THE
TRANSITION PLAN WOULD CONSTITUTE AN ABANDONMENT UNDER SECTIONS 3,909
4905.20 AND 4905.21 OF THE REVISED CODE, THE COMMISSION SHALL NOT 3,910
APPROVE THAT PART OF THE TRANSITION PLAN UNLESS IT MAKES THE 3,911
FINDING REQUIRED FOR APPROVAL OF AN ABANDONMENT APPLICATION UNDER 3,912
SECTION 4905.21 OF THE REVISED CODE. SECTIONS 4905.20 AND 3,914
4905.21 OF THE REVISED CODE OTHERWISE SHALL NOT APPLY TO A 3,916
TRANSITION PLAN UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED 3,917
CODE.
Sec. 4928.35. (A) UPON APPROVAL OF ITS TRANSITION PLAN 3,919
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AN 3,920
ELECTRIC UTILITY SHALL FILE IN ACCORDANCE WITH SECTION 4905.30 OF 3,921
THE REVISED CODE SCHEDULES CONTAINING THE UNBUNDLED RATE 3,923
COMPONENTS SET IN THE APPROVED PLAN IN ACCORDANCE WITH SECTION 3,924
4928.34 OF THE REVISED CODE. THE SCHEDULES SHALL BE IN EFFECT
FOR THE DURATION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD, 3,925
SHALL BE SUBJECT TO THE CAP SPECIFIED IN DIVISION (A)(6) OF 3,926
SECTION 4928.34 OF THE REVISED CODE, AND SHALL NOT BE ADJUSTED 3,927
DURING THAT PERIOD BY THE PUBLIC UTILITIES COMMISSION EXCEPT AS 3,928
95
OTHERWISE AUTHORIZED BY DIVISION (B) OF THIS SECTION OR AS 3,929
OTHERWISE AUTHORIZED BY FEDERAL LAW OR EXCEPT TO REFLECT ANY 3,930
CHANGE IN TAX LAW OR TAX REGULATION THAT HAS A MATERIAL EFFECT ON 3,931
THE ELECTRIC UTILITY.
(B) EFFORTS SHALL BE MADE TO REACH AGREEMENTS WITH 3,933
ELECTRIC UTILITIES IN MATTERS OF LITIGATION REGARDING PROPERTY 3,934
VALUATION ISSUES. IRRESPECTIVE OF THOSE EFFORTS, THE UNBUNDLED 3,935
COMPONENTS FOR AN ELECTRIC UTILITY'S RETAIL ELECTRIC GENERATION 3,936
SERVICE AND DISTRIBUTION SERVICE, AS PROVIDED IN DIVISION (A) OF 3,937
THIS SECTION, ARE NOT SUBJECT TO ADJUSTMENT FOR THE UTILITY'S 3,938
MARKET DEVELOPMENT PERIOD, EXCEPT THAT THE COMMISSION SHALL ORDER 3,939
AN EQUITABLE REDUCTION IN THOSE COMPONENTS FOR ALL CUSTOMER 3,940
CLASSES TO REFLECT ANY REFUND A UTILITY RECEIVES AS A RESULT OF 3,941
THE RESOLUTION OF UTILITY PERSONAL PROPERTY TAX VALUATION 3,942
LITIGATION THAT IS RESOLVED ON OR AFTER THE EFFECTIVE DATE OF 3,943
THIS SECTION AND PRIOR TO THE END OF THE MARKET DEVELOPMENT 3,944
PERIOD. IMMEDIATELY UPON THE ISSUANCE OF THAT ORDER, THE 3,945
ELECTRIC UTILITY SHALL FILE REVISED RATE SCHEDULES UNDER SECTION 3,946
4909.18 OF THE REVISED CODE TO EFFECT THE ORDER. 3,947
(C) THE SCHEDULE UNDER DIVISION (A) OF THIS SECTION 3,949
CONTAINING THE UNBUNDLED DISTRIBUTION COMPONENTS SHALL PROVIDE 3,951
THAT ELECTRIC DISTRIBUTION SERVICE UNDER THE SCHEDULE WILL BE 3,952
AVAILABLE TO ALL RETAIL ELECTRIC SERVICE CUSTOMERS IN THE 3,953
ELECTRIC UTILITY'S CERTIFIED TERRITORY AND THEIR SUPPLIERS ON A 3,954
NONDISCRIMINATORY AND COMPARABLE BASIS ON AND AFTER THE STARTING 3,955
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. THE SCHEDULE ALSO 3,956
SHALL INCLUDE AN OBLIGATION TO BUILD DISTRIBUTION FACILITIES WHEN 3,957
NECESSARY TO PROVIDE ADEQUATE DISTRIBUTION SERVICE, PROVIDED THAT 3,958
A CUSTOMER REQUESTING THAT SERVICE MAY BE REQUIRED TO PAY ALL OR 3,959
PART OF THE REASONABLE INCREMENTAL COST OF THE NEW FACILITIES, IN 3,960
ACCORDANCE WITH RULES, POLICY, PRECEDENTS, OR ORDERS OF THE 3,961
COMMISSION.
(D) DURING THE MARKET DEVELOPMENT PERIOD, AN ELECTRIC 3,963
DISTRIBUTION UTILITY SHALL PROVIDE CONSUMERS ON A COMPARABLE AND 3,964
96
NONDISCRIMINATORY BASIS WITHIN ITS CERTIFIED TERRITORY A STANDARD 3,966
SERVICE OFFER OF ALL COMPETITIVE RETAIL ELECTRIC SERVICES
NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC SERVICE TO CONSUMERS, 3,967
INCLUDING A FIRM SUPPLY OF ELECTRIC GENERATION SERVICE PRICED IN 3,968
ACCORDANCE WITH THE SCHEDULE CONTAINING THE UTILITY'S UNBUNDLED 3,969
GENERATION SERVICE COMPONENT. IMMEDIATELY UPON APPROVAL OF ITS 3,970
TRANSITION PLAN, THE UTILITY SHALL FILE THE STANDARD SERVICE 3,971
OFFER WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED 3,972
CODE. DURING THE MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 3,973
SUPPLIER TO DELIVER RETAIL ELECTRIC GENERATION SERVICE SHALL 3,974
RESULT IN THE SUPPLIER'S CUSTOMERS, AFTER REASONABLE NOTICE, 3,975
DEFAULTING TO THE UTILITY'S STANDARD SERVICE OFFER FILED UNDER 3,976
THIS DIVISION UNTIL THE CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. 3,977
A SUPPLIER IS DEEMED UNDER THIS SECTION TO HAVE FAILED TO DELIVER 3,978
SUCH SERVICE IF ANY OF THE CONDITIONS SPECIFIED IN DIVISIONS 3,979
(B)(1) TO (4) OF SECTION 4928.14 OF THE REVISED CODE IS MET. 3,980
(E) AN AMENDMENT OF A CORPORATE SEPARATION PLAN CONTAINED 3,982
IN A TRANSITION PLAN APPROVED BY THE COMMISSION UNDER SECTION 3,983
4928.33 OF THE REVISED CODE SHALL BE FILED AND APPROVED AS A 3,984
CORPORATE SEPARATION PLAN PURSUANT TO SECTION 4928.17 OF THE 3,985
REVISED CODE. 3,986
(F) ANY CHANGE TO AN ELECTRIC UTILITY'S OPPORTUNITY TO 3,988
RECEIVE TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED IN 3,989
ACCORDANCE WITH SECTION 4928.33 OF THE REVISED CODE SHALL BE 3,990
AUTHORIZED ONLY AS PROVIDED IN SECTIONS 4928.31 TO 4928.40 OF THE 3,991
REVISED CODE. 3,992
(G) THE COMMISSION, BY ORDER, SHALL REQUIRE EACH ELECTRIC 3,994
UTILITY WHOSE APPROVED TRANSITION PLAN DID NOT INCLUDE AN 3,995
INDEPENDENT TRANSMISSION PLAN AS DESCRIBED IN DIVISION (A)(13) OF 3,996
SECTION 4928.34 OF THE REVISED CODE TO BE A MEMBER OF, AND 3,997
TRANSFER CONTROL OF TRANSMISSION FACILITIES IT OWNS OR CONTROLS 3,998
IN THIS STATE TO, ONE OR MORE QUALIFYING TRANSMISSION ENTITIES, 3,999
AS DESCRIBED IN DIVISION (B) OF SECTION 4928.12 OF THE REVISED 4,000
CODE, THAT ARE PLANNED TO BE OPERATIONAL ON AND AFTER DECEMBER 4,001
97
31, 2003. HOWEVER, THE COMMISSION MAY EXTEND THAT DATE IF, FOR 4,003
REASONS BEYOND THE CONTROL OF THE UTILITY, A QUALIFYING 4,004
TRANSMISSION ENTITY IS NOT PLANNED TO BE OPERATIONAL ON THAT 4,005
DATE. THE COMMISSION'S ORDER MAY SPECIFY AN EARLIER DATE ON 4,006
WHICH THE TRANSMISSION ENTITY OR ENTITIES ARE PLANNED TO BE 4,007
OPERATIONAL IF THE COMMISSION CONSIDERS IT NECESSARY TO CARRY OUT 4,008
THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE OR TO 4,010
ENCOURAGE EFFECTIVE COMPETITION IN RETAIL ELECTRIC SERVICE IN 4,011
THIS STATE.
UPON THE ISSUANCE OF THE ORDER, EACH SUCH UTILITY SHALL 4,013
FILE WITH THE COMMISSION A PLAN FOR SUCH INDEPENDENT OPERATION OF 4,014
THE UTILITY'S TRANSMISSION FACILITIES CONSISTENT WITH THIS 4,015
DIVISION. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF ANY 4,016
SUBSTANTIALLY INADEQUATE PLAN SUBMITTED UNDER THIS DIVISION. 4,017
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, THE 4,019
COMMISSION SHALL APPROVE THE PLAN UPON A FINDING THAT THE PLAN 4,020
WILL RESULT IN THE UTILITY'S COMPLIANCE WITH THE ORDER, THIS 4,021
DIVISION, AND ANY RULES ADOPTED UNDER DIVISION (A) OF SECTION 4,022
4928.06 OF THE REVISED CODE. THE APPROVED INDEPENDENT 4,023
TRANSMISSION PLAN SHALL BE DEEMED A PART OF THE UTILITY'S 4,024
TRANSITION PLAN FOR PURPOSES OF SECTIONS 4928.31 TO 4928.40 OF 4,025
THE REVISED CODE.
Sec. 4928.36. THE PUBLIC UTILITIES COMMISSION HAS 4,027
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 4,028
COMPLAINT BY ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 4,030
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 4,031
ELECTRIC SERVICE, TO DETERMINE WHETHER AN ELECTRIC UTILITY HAS 4,032
FAILED TO IMPLEMENT, IN CONFORMANCE WITH AN ORDER UNDER SECTION 4,033
4928.33 OF THE REVISED CODE OR IN ONGOING COMPLIANCE WITH 4,035
APPLICABLE PROVISIONS OF THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE, A TRANSITION PLAN APPROVED UNDER SECTION 4,036
4928.33 OF THE REVISED CODE. IF, AFTER REASONABLE NOTICE AND 4,038
OPPORTUNITY FOR HEARING AS PROVIDED IN SECTION 4905.26 OF THE 4,040
REVISED CODE, THE COMMISSION DETERMINES THAT THE UTILITY HAS 4,041
98
FAILED TO SO COMPLY, THE COMMISSION, IN ADDITION TO ANY OTHER 4,042
REMEDIES PROVIDED BY LAW, MAY USE THE REMEDIES SPECIFIED IN 4,043
DIVISIONS (C)(1) TO (3) OF SECTION 4928.18 OF THE REVISED CODE TO 4,045
ENFORCE COMPLIANCE.
Sec. 4928.37. (A)(1) SECTIONS 4928.31 TO 4928.40 OF THE 4,047
REVISED CODE PROVIDE AN ELECTRIC UTILITY THE OPPORTUNITY TO 4,049
RECEIVE TRANSITION REVENUES THAT MAY ASSIST IT IN MAKING THE
TRANSITION TO A FULLY COMPETITIVE RETAIL ELECTRIC GENERATION 4,051
MARKET. AN ELECTRIC UTILITY FOR WHICH TRANSITION REVENUES ARE 4,052
APPROVED PURSUANT TO SECTIONS 4928.31 TO 4928.40 OF THE REVISED 4,053
CODE SHALL RECEIVE THOSE REVENUES THROUGH BOTH OF THE FOLLOWING 4,054
MECHANISMS BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,055
ELECTRIC SERVICE AND ENDING ON THE EXPIRATION DATE OF ITS MARKET 4,056
DEVELOPMENT PERIOD AS DETERMINED UNDER SECTION 4928.40 OF THE 4,057
REVISED CODE:
(a) PAYMENT OF UNBUNDLED RATES FOR RETAIL ELECTRIC 4,059
SERVICES BY EACH CUSTOMER THAT IS SUPPLIED RETAIL ELECTRIC 4,060
GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD BY THE 4,061
CUSTOMER'S ELECTRIC DISTRIBUTION UTILITY, WHICH RATES SHALL BE 4,062
SPECIFIED IN SCHEDULES FILED UNDER SECTION 4928.35 OF THE REVISED 4,063
CODE;
(b) PAYMENT OF A NONBYPASSABLE AND COMPETITIVELY NEUTRAL 4,065
TRANSITION CHARGE BY EACH CUSTOMER THAT IS SUPPLIED RETAIL 4,066
ELECTRIC GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD 4,067
BY AN ENTITY OTHER THAN THE CUSTOMER'S ELECTRIC DISTRIBUTION 4,068
UTILITY, AS SUCH TRANSITION CHARGE IS DETERMINED UNDER SECTION 4,069
4928.40 OF THE REVISED CODE. THE TRANSITION CHARGE SHALL BE 4,070
PAYABLE BY EACH SUCH RETAIL ELECTRIC DISTRIBUTION SERVICE 4,072
CUSTOMER IN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY FOR 4,073
WHICH THE TRANSITION REVENUES ARE APPROVED AND SHALL BE BILLED ON 4,074
EACH KILOWATT HOUR OF ELECTRICITY DELIVERED TO THE CUSTOMER BY 4,075
THE ELECTRIC DISTRIBUTION UTILITY AS REGISTERED ON THE CUSTOMER'S 4,076
METER DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD AS KILOWATT 4,078
HOUR IS DEFINED IN SECTION 4909.161 OF THE REVISED CODE OR, IF NO
99
METER IS USED, AS BASED ON AN ESTIMATE OF KILOWATT HOURS USED OR 4,079
CONSUMED BY THE CUSTOMER. THE TRANSITION CHARGE FOR EACH 4,080
CUSTOMER CLASS SHALL REFLECT THE COST ALLOCATION TO THAT CLASS AS 4,081
PROVIDED UNDER BUNDLED RATES AND CHARGES IN EFFECT ON THE DAY 4,082
BEFORE THE EFFECTIVE DATE OF THIS SECTION. ADDITIONALLY, AS 4,083
REFLECTED IN SECTION 4928.40 OF THE REVISED CODE, THE TRANSITION 4,084
CHARGES SHALL BE STRUCTURED TO PROVIDE SHOPPING INCENTIVES TO 4,086
CUSTOMERS SUFFICIENT TO ENCOURAGE THE DEVELOPMENT OF EFFECTIVE 4,087
COMPETITION IN THE SUPPLY OF RETAIL ELECTRIC GENERATION SERVICE. 4,088
TO THE EXTENT POSSIBLE, THE LEVEL AND STRUCTURE OF THE TRANSITION 4,089
CHARGE SHALL BE DESIGNED TO AVOID REVENUE RESPONSIBILITY SHIFTS 4,090
AMONG THE UTILITY'S CUSTOMER CLASSES AND RATE SCHEDULES. 4,091
(2)(a) NOTWITHSTANDING DIVISION (A)(1)(b) OF THIS SECTION, 4,095
THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON ELECTRICITY 4,096
SUPPLIED BY A MUNICIPAL ELECTRIC UTILITY TO A RETAIL ELECTRIC 4,097
DISTRIBUTION SERVICE CUSTOMER IN THE CERTIFIED TERRITORY OF THE 4,099
ELECTRIC UTILITY FOR WHICH THE TRANSITION REVENUES ARE APPROVED, 4,100
IF THE MUNICIPAL ELECTRIC UTILITY PROVIDES ELECTRIC TRANSMISSION 4,101
OR DISTRIBUTION SERVICE, OR BOTH SERVICES, THROUGH TRANSMISSION 4,102
OR DISTRIBUTION FACILITIES SINGLY OR JOINTLY OWNED OR OPERATED BY 4,103
THE MUNICIPAL ELECTRIC UTILITY, AND IF THE MUNICIPAL ELECTRIC 4,104
UTILITY WAS IN EXISTENCE, OPERATING, AND PROVIDING SERVICE AS OF
JANUARY 1, 1999. 4,105
(b) THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON 4,107
ELECTRICITY SUPPLIED OR CONSUMED IN THIS STATE EXCEPT SUCH 4,108
ELECTRICITY AS IS DELIVERED TO A RETAIL CUSTOMER BY AN ELECTRIC 4,109
DISTRIBUTION UTILITY AND IS REGISTERED ON THE CUSTOMER'S METER 4,110
DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD.
(3) THE TRANSITION CHARGE SHALL NOT BE DISCOUNTED BY ANY 4,112
PARTY UNLESS THERE IS A DETERMINATION BY THE DEPARTMENT OF 4,113
DEVELOPMENT THAT SUCH A DISCOUNT IS PART OF AN APPROVED ECONOMIC 4,114
DEVELOPMENT PACKAGE INVOLVING STATE OR LOCAL FUNDING AND IS 4,115
NECESSARY FOR ECONOMIC DEVELOPMENT TO OCCUR WITHIN THIS STATE 4,116
INSTEAD OF ANOTHER STATE.
100
(4) NOTHING PREVENTS PAYMENT OF ALL OR PART OF THE 4,118
TRANSITION CHARGE BY ANOTHER PARTY ON A CUSTOMER'S BEHALF IF THAT 4,119
PAYMENT DOES NOT CONTRAVENE SECTIONS 4905.33 TO 4905.35 OF THE 4,120
REVISED CODE OR THIS CHAPTER. 4,121
(B) THE ELECTRIC UTILITY SHALL SEPARATELY ITEMIZE AND 4,123
DISCLOSE, OR CAUSE ITS BILLING AND COLLECTION AGENT TO SEPARATELY 4,124
ITEMIZE AND DISCLOSE, THE TRANSITION CHARGE ON THE CUSTOMER'S 4,125
BILL IN ACCORDANCE WITH REASONABLE SPECIFICATIONS THE COMMISSION 4,126
SHALL PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF 4,127
THE REVISED CODE.
Sec. 4928.38. PURSUANT TO A TRANSITION PLAN APPROVED UNDER 4,129
SECTION 4928.33 OF THE REVISED CODE, AN ELECTRIC UTILITY IN THIS 4,131
STATE MAY RECEIVE TRANSITION REVENUES UNDER SECTIONS 4928.31 TO 4,133
4928.40 OF THE REVISED CODE, BEGINNING ON THE STARTING DATE OF 4,135
COMPETITIVE RETAIL ELECTRIC SERVICE. EXCEPT AS PROVIDED IN
SECTIONS 4905.33 TO 4905.35 OF THE REVISED CODE AND THIS CHAPTER, 4,137
AN ELECTRIC UTILITY THAT RECEIVES SUCH TRANSITION REVENUES SHALL 4,138
BE WHOLLY RESPONSIBLE FOR HOW TO USE THOSE REVENUES AND WHOLLY 4,139
RESPONSIBLE FOR WHETHER IT IS IN A COMPETITIVE POSITION AFTER THE 4,140
MARKET DEVELOPMENT PERIOD. THE UTILITY'S RECEIPT OF TRANSITION 4,141
REVENUES SHALL TERMINATE AT THE END OF THE MARKET DEVELOPMENT 4,142
PERIOD. WITH THE TERMINATION OF THAT APPROVED REVENUE SOURCE, 4,143
THE UTILITY SHALL BE FULLY ON ITS OWN IN THE COMPETITIVE MARKET. 4,144
THE COMMISSION SHALL NOT AUTHORIZE THE RECEIPT OF TRANSITION 4,145
REVENUES OR ANY EQUIVALENT REVENUES BY AN ELECTRIC UTILITY EXCEPT 4,146
AS EXPRESSLY AUTHORIZED IN SECTIONS 4928.31 TO 4928.40 OF THE 4,147
REVISED CODE.
Sec. 4928.39. UPON THE FILING OF AN APPLICATION BY AN 4,149
ELECTRIC UTILITY UNDER SECTION 4928.31 OF THE REVISED CODE FOR 4,150
THE OPPORTUNITY TO RECEIVE TRANSITION REVENUES UNDER SECTIONS 4,151
4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC UTILITIES 4,152
COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE REVISED CODE, 4,153
SHALL DETERMINE THE TOTAL ALLOWABLE AMOUNT OF THE TRANSITION 4,154
COSTS OF THE UTILITY TO BE RECEIVED AS TRANSITION REVENUES UNDER 4,155
101
THOSE SECTIONS. SUCH AMOUNT SHALL BE THE JUST AND REASONABLE 4,156
TRANSITION COSTS OF THE UTILITY, WHICH COSTS THE COMMISSION FINDS 4,157
MEET ALL OF THE FOLLOWING CRITERIA: 4,158
(A) THE COSTS WERE PRUDENTLY INCURRED. 4,160
(B) THE COSTS ARE LEGITIMATE, NET, VERIFIABLE, AND 4,162
DIRECTLY ASSIGNABLE OR ALLOCABLE TO RETAIL ELECTRIC SERVICE 4,163
PROVIDED TO ELECTRIC CONSUMERS IN THIS STATE. 4,164
(C) THE COSTS ARE UNRECOVERABLE IN A COMPETITIVE MARKET. 4,166
(D) THE UTILITY WOULD OTHERWISE BE ENTITLED TO RECOVER THE 4,168
COSTS. 4,169
TRANSITION COSTS UNDER THIS SECTION SHALL INCLUDE THE COSTS 4,171
OF EMPLOYEE ASSISTANCE UNDER THE EMPLOYEE ASSISTANCE PLAN 4,172
INCLUDED IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER SECTION 4,173
4928.33 OF THE REVISED CODE, WHICH COSTS EXCEED THOSE COSTS 4,174
CONTEMPLATED IN LABOR CONTRACTS IN EFFECT ON THE EFFECTIVE DATE
OF THIS SECTION. 4,175
FURTHER, THE COMMISSION'S ORDER UNDER THIS SECTION SHALL 4,178
SEPARATELY IDENTIFY REGULATORY ASSETS OF THE UTILITY THAT ARE A
PART OF THE TOTAL ALLOWABLE AMOUNT OF TRANSITION COSTS DETERMINED 4,179
UNDER THIS SECTION AND SEPARATELY IDENTIFY THAT PORTION OF A 4,180
TRANSITION CHARGE DETERMINED UNDER SECTION 4928.40 OF THE REVISED 4,181
CODE THAT IS ALLOCABLE TO THOSE ASSETS, WHICH PORTION OF A 4,182
TRANSITION CHARGE SHALL BE SUBJECT TO ADJUSTMENT ONLY 4,183
PROSPECTIVELY AND AFTER DECEMBER 31, 2004. 4,184
THE ELECTRIC UTILITY SHALL HAVE THE BURDEN OF DEMONSTRATING 4,186
ALLOWABLE TRANSITION COSTS AS AUTHORIZED UNDER THIS SECTION. THE 4,187
COMMISSION MAY IMPOSE REASONABLE COMMITMENTS UPON THE UTILITY'S 4,188
COLLECTION OF THE TRANSITION REVENUES TO ENSURE THAT THOSE 4,189
REVENUES ARE USED TO ELIMINATE THE ALLOWABLE TRANSITION COSTS OF 4,190
THE UTILITY DURING THE MARKET DEVELOPMENT PERIOD AND ARE NOT 4,191
AVAILABLE FOR USE BY THE UTILITY TO ACHIEVE AN UNDUE COMPETITIVE 4,192
ADVANTAGE, OR TO IMPOSE AN UNDUE DISADVANTAGE, IN THE PROVISION 4,193
BY THE UTILITY OF REGULATED OR UNREGULATED PRODUCTS OR SERVICES. 4,194
Sec. 4928.40. (A) UPON DETERMINING UNDER SECTION 4928.39 4,196
102
OF THE REVISED CODE THE ALLOWABLE TRANSITION COSTS OF AN ELECTRIC 4,198
UTILITY AUTHORIZED FOR COLLECTION AS TRANSITION REVENUES UNDER
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC 4,199
UTILITIES COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE 4,200
REVISED CODE, SHALL ESTABLISH THE TRANSITION CHARGE FOR EACH 4,201
CUSTOMER CLASS OF THE ELECTRIC UTILITY AND, TO THE EXTENT 4,202
POSSIBLE, EACH RATE SCHEDULE WITHIN EACH SUCH CUSTOMER CLASS, 4,203
WITH ALL SUCH TRANSITION CHARGES BEING COLLECTED AS PROVIDED IN 4,205
DIVISION (A)(1)(b) OF SECTION 4928.37 OF THE REVISED CODE DURING 4,206
A MARKET DEVELOPMENT PERIOD FOR THE UTILITY, ENDING ON SUCH DATE 4,207
AS THE COMMISSION SHALL REASONABLY PRESCRIBE. THE MARKET
DEVELOPMENT PERIOD SHALL END NOT LATER THAN DECEMBER 31, 2005. 4,208
HOWEVER, THE COMMISSION MAY SET THE UTILITY'S RECOVERY OF THE 4,209
REVENUE REQUIREMENTS ASSOCIATED WITH REGULATORY ASSETS TO END NOT 4,210
LATER THAN DECEMBER 31, 2010, BUT SHALL NOT INCREASE THE CHARGE 4,211
RECOVERING SUCH REVENUE REQUIREMENTS ASSOCIATED WITH REGULATORY 4,212
ASSETS.
FACTORS THE COMMISSION SHALL CONSIDER IN PRESCRIBING THE 4,214
EXPIRATION DATE OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AND 4,215
THE TRANSITION CHARGE FOR EACH CUSTOMER CLASS AND RATE SCHEDULE 4,216
OF THE UTILITY INCLUDE, BUT ARE NOT LIMITED TO, THE TOTAL 4,217
ALLOWABLE AMOUNT OF TRANSITION COSTS OF THE ELECTRIC UTILITY AS 4,218
DETERMINED UNDER SECTION 4928.39 OF THE REVISED CODE; THE 4,219
RELEVANT MARKET PRICE FOR THE DELIVERED SUPPLY OF ELECTRICITY TO 4,220
CUSTOMERS IN THAT CUSTOMER CLASS AND, TO THE EXTENT POSSIBLE, IN 4,221
EACH RATE SCHEDULE AS DETERMINED BY THE COMMISSION; AND SUCH 4,222
SHOPPING INCENTIVES BY CUSTOMER CLASS AS ARE CONSIDERED NECESSARY 4,223
TO INDUCE, AT THE MINIMUM, A TWENTY PER CENT LOAD SWITCHING RATE
BY CUSTOMER CLASS HALFWAY THROUGH THE UTILITY'S MARKET 4,224
DEVELOPMENT PERIOD BUT NOT LATER THAN DECEMBER 31, 2003. IN NO 4,225
CASE SHALL THE COMMISSION ESTABLISH A SHOPPING INCENTIVE IN AN 4,226
AMOUNT EXCEEDING THE UNBUNDLED COMPONENT FOR RETAIL ELECTRIC 4,227
GENERATION SERVICE SET IN THE UTILITY'S APPROVED TRANSITION PLAN 4,228
UNDER SECTION 4928.33 OF THE REVISED CODE, AND IN NO CASE SHALL 4,230
103
THE COMMISSION ESTABLISH A TRANSITION CHARGE IN AN AMOUNT LESS 4,231
THAN ZERO.
(B) THE COMMISSION MAY CONDUCT A PERIODIC REVIEW NO MORE 4,233
OFTEN THAN ANNUALLY AND, AS IT DETERMINES NECESSARY, ADJUST THE 4,235
TRANSITION CHARGES OF THE ELECTRIC UTILITY AS INITIALLY 4,236
ESTABLISHED UNDER DIVISION (A) OF THIS SECTION OR SUBSEQUENTLY 4,237
ADJUSTED UNDER THIS DIVISION. ANY SUCH ADJUSTMENT SHALL BE IN 4,238
ACCORDANCE WITH DIVISION (A) OF THIS SECTION AND MAY REFLECT 4,239
CHANGES IN THE RELEVANT MARKET. 4,240
(C) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE 4,242
COMMISSION SHALL ISSUE AN ORDER UNDER SECTION 4928.33 OF THE 4,244
REVISED CODE APPROVING A TRANSITION PLAN FOR AN ELECTRIC UTILITY 4,245
THAT CONTAINS A RATE REDUCTION FOR RESIDENTIAL CUSTOMERS OF THAT 4,246
UTILITY, PROVIDED THAT THE RATE REDUCTION SHALL NOT INCREASE THE 4,247
RATES OR TRANSITION COST RESPONSIBILITY OF ANY OTHER CUSTOMER 4,248
CLASS OF THE UTILITY. THE RATE REDUCTION SHALL BE IN EFFECT ONLY 4,249
FOR SUCH PORTION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AS 4,250
THE COMMISSION SHALL SPECIFY AND SHALL BE APPLIED TO THE 4,251
UNBUNDLED GENERATION COMPONENT FOR RETAIL ELECTRIC GENERATION 4,252
SERVICE AS SET IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER 4,253
SECTION 4928.33 OF THE REVISED CODE SUBJECT TO THE PRICE CAP FOR
RESIDENTIAL CUSTOMERS REQUIRED UNDER DIVISION (A)(6) OF SECTION 4,254
4928.34 OF THE REVISED CODE. THE AMOUNT OF THE RATE REDUCTION 4,255
SHALL BE FIVE PER CENT OF THE AMOUNT OF THAT UNBUNDLED GENERATION 4,257
COMPONENT, BUT SHALL NOT UNDULY DISCOURAGE MARKET ENTRY BY 4,258
ALTERNATIVE SUPPLIERS SEEKING TO SERVE THE RESIDENTIAL MARKET IN 4,259
THIS STATE. THE COMMISSION, AFTER REASONABLE NOTICE AND 4,260
OPPORTUNITY FOR HEARING, MAY TERMINATE THE RATE REDUCTION BY 4,261
ORDER UPON A FINDING THAT THE RATE REDUCTION IS UNDULY 4,262
DISCOURAGING MARKET ENTRY BY SUCH ALTERNATIVE SUPPLIERS. NO SUCH 4,263
TERMINATION OF THE RATE REDUCTION SHALL TAKE EFFECT PRIOR TO THE 4,264
MIDPOINT OF THE UTILITY'S MARKET DEVELOPMENT PERIOD.
(D) BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,266
ELECTRIC SERVICE, NO ELECTRIC UTILITY IN THIS STATE SHALL 4,267
104
PROHIBIT THE RESALE OF ELECTRIC GENERATION SERVICE OR IMPOSE 4,268
UNREASONABLE OR DISCRIMINATORY CONDITIONS OR LIMITATIONS ON THE 4,269
RESALE OF ELECTRIC GENERATION SERVICE. 4,270
(E) NOTWITHSTANDING ANY PROVISION OF TITLE XLIX OF THE 4,273
REVISED CODE TO THE CONTRARY, ANY CUSTOMER THAT RECEIVES A 4,274
NONCOMPETITIVE RETAIL ELECTRIC SERVICE FROM AN ELECTRIC 4,275
DISTRIBUTION UTILITY SHALL BE A RETAIL ELECTRIC DISTRIBUTION 4,276
SERVICE CUSTOMER, IRRESPECTIVE OF THE VOLTAGE LEVEL AT WHICH 4,277
SERVICE IS TAKEN.
Sec. 4928.41. THE TRANSITION REVENUE AUTHORITY PROVIDED 4,279
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE FOR 4,280
ELECTRIC UTILITIES DOES NOT AFFECT THE AUTHORITY OF AN ELECTRIC 4,281
COOPERATIVE IN THIS STATE TO RECEIVE TRANSITION REVENUES. 4,282
Sec. 4928.42. PRIOR TO THE STARTING DATE OF COMPETITIVE 4,284
RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES COMMISSION, IN 4,285
CONSULTATION WITH THE CONSUMERS' COUNSEL AND WITH OTHER STATE 4,286
AGENCIES AS CONSIDERED NECESSARY, SHALL PRESCRIBE AND ADOPT BY 4,287
ORDER A GENERAL PLAN BY WHICH EACH ELECTRIC UTILITY SHALL PROVIDE 4,288
DURING ITS MARKET DEVELOPMENT PERIOD CONSUMER EDUCATION ON 4,289
ELECTRIC RESTRUCTURING UNDER THIS CHAPTER. THE GENERAL PLAN 4,290
SHALL REQUIRE THE UTILITIES TO SPEND ON SUCH CONSUMER EDUCATION 4,291
WITHIN THEIR RESPECTIVE CERTIFIED SERVICE TERRITORIES IN THE 4,292
AGGREGATE UP TO SIXTEEN MILLION DOLLARS IN THE FIRST YEAR OF THAT 4,293
PERIOD AND AN ADDITIONAL SEVENTEEN MILLION DOLLARS IN THE 4,294
AGGREGATE IN DECREASING AMOUNTS OVER THE REMAINING YEARS OF EACH 4,295
UTILITY'S MARKET DEVELOPMENT PERIOD, WITH THE AGGREGATE AMOUNTS 4,296
DIVIDED AMONG THE UTILITIES BASED ON THEIR RESPECTIVE NUMBER OF 4,297
CUSTOMERS AS OF DECEMBER 31, 1997. THE GENERAL PLAN SHALL 4,298
PROHIBIT SUCH CONSUMER EDUCATION FROM OCCURRING IN COMBINATION 4,299
WITH MARKETING FOR THE UTILITY'S OR ITS AFFILIATE'S RETAIL 4,300
ELECTRIC SERVICES.
Sec. 4928.43. (A) EACH STATE AGENCY THAT PROVIDES 4,302
EMPLOYMENT ASSISTANCE AND JOB TRAINING PROGRAMS, INCLUDING THE 4,304
BUREAU OF EMPLOYMENT SERVICES AND THE DEPARTMENT OF DEVELOPMENT, 4,305
105
SHALL PROVIDE CONCENTRATED ATTENTION THROUGH THOSE PROGRAMS TO 4,306
ASSISTING EMPLOYEES WHOSE EMPLOYMENT IS AFFECTED BY ELECTRIC 4,307
INDUSTRY RESTRUCTURING UNDER THIS CHAPTER. 4,308
(B) TO THE EXTENT NOT PROHIBITED BY FEDERAL LAW OR ANY LAW 4,310
OF THIS STATE AND EXCEPT AS OTHERWISE PROVIDED IN A LABOR 4,311
CONTRACT OR OTHER AGREEMENT, NO UNENCUMBERED MONEY IN A PENSION 4,313
FUND FOR EMPLOYEES OF ELECTRIC UTILITIES SHALL BE USED FOR ANY 4,314
PURPOSE OTHER THAN TO PAY ALLOWABLE PENSIONS OR EARLY RETIREMENT 4,315
BUYOUTS FOR THE EMPLOYEES. 4,316
Sec. 4928.431. (A)(1) THERE IS HEREBY CREATED AN ELECTRIC 4,319
EMPLOYEE ASSISTANCE ADVISORY BOARD, CONSISTING OF TWELVE MEMBERS, 4,320
AS FOLLOWS: TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES 4,321
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, NEITHER 4,322
OF THE SAME POLITICAL PARTY; TWO MEMBERS OF THE SENATE APPOINTED 4,323
BY THE PRESIDENT OF THE SENATE, NEITHER OF THE SAME POLITICAL 4,324
PARTY; AND FOUR REPRESENTATIVES OF ELECTRIC UTILITIES IN THIS 4,325
STATE AND FOUR REPRESENTATIVES OF ELECTRIC INDUSTRY EMPLOYEES, 4,326
ALL APPOINTED BY THE GOVERNOR. INITIAL APPOINTMENTS SHALL BE 4,327
MADE NOT LATER THAN DECEMBER 31, 1999. 4,328
(2) INITIAL TERMS OF THE MEMBERS APPOINTED BY THE GOVERNOR 4,330
SHALL END ON DECEMBER 31, 2001. THEREAFTER, TERMS OF APPOINTED 4,332
MEMBERS SHALL BE FOR TWO YEARS WITH EACH TERM ENDING ON THE SAME 4,333
DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. EACH MEMBER SHALL 4,334
HOLD OFFICE FROM THE DATE OF THE MEMBER'S APPOINTMENT UNTIL THE 4,335
END OF THE TERM FOR WHICH THE MEMBER WAS APPOINTED. MEMBERS MAY 4,336
BE REAPPOINTED. 4,337
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,339
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,340
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,341
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,342
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,343
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,344
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,345
HAS ELAPSED, WHICHEVER OCCURS FIRST. BOARD MEMBERS SHALL RECEIVE 4,346
106
NO COMPENSATION OR REIMBURSEMENT FOR EXPENSES. 4,347
(3) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,349
AMONG ITS MEMBERS. ONLY BOARD MEMBERS APPOINTED BY THE GOVERNOR 4,350
SHALL BE VOTING MEMBERS OF THE BOARD; EACH SHALL HAVE ONE VOTE IN 4,352
ALL DELIBERATIONS OF THE BOARD. A MAJORITY OF THE VOTING MEMBERS 4,353
CONSTITUTES A QUORUM.
(B) THE DUTIES OF THE ADVISORY BOARD SHALL BE TO MAKE 4,355
RECOMMENDATIONS TO THE PUBLIC UTILITIES COMMISSION REGARDING ITS 4,356
APPROVAL OF AN EMPLOYEE ASSISTANCE PLAN FILED IN ACCORDANCE WITH 4,357
SECTION 4928.31 OF THE REVISED CODE AND REGARDING GENERAL 4,358
ELIGIBILITY STANDARDS APPLICABLE TO BENEFITS UNDER THE PLAN FOR 4,359
AFFECTED EMPLOYEES. 4,360
Sec. 4928.44. (A) THE PUBLIC UTILITIES COMMISSION MAY 4,362
DETERMINE, BY ORDER AND AFTER REASONABLE NOTICE AND OPPORTUNITY 4,363
FOR HEARING, THAT CUSTOMERS THAT ARE NONFIRM ELECTRIC SERVICE 4,364
CUSTOMERS OF ELECTRIC UTILITIES ON THE EFFECTIVE DATE OF THIS 4,365
SECTION WOULD BE ASSISTED BY THE IMPLEMENTATION BY EACH SUCH 4,366
UTILITY OF A SERVICE SCHEDULE THAT COMPLIES WITH DIVISION (C) OF 4,367
THIS SECTION. IN THE ORDER, THE COMMISSION SHALL SPECIFY THE 4,368
PERIOD OF TIME, ENDING NOT LATER THAN DECEMBER 31, 2005, DURING 4,369
WHICH THE SERVICE OFFERING WOULD BE AVAILABLE TO ANY SUCH NONFIRM 4,370
ELECTRIC SERVICE CUSTOMERS OR A GROUP OF SUCH CUSTOMERS. UPON 4,371
THE ISSUANCE OF THE ORDER, ANY SUCH NONFIRM ELECTRIC SERVICE 4,372
CUSTOMER OR A GROUP OF SUCH CUSTOMERS SHALL BE, FOR THE PURPOSES 4,373
OF THIS SECTION, ELIGIBLE CUSTOMERS IN EACH ELECTRIC UTILITY'S 4,374
TRANSMISSION TARIFF SUBJECT TO THE JURISDICTION OF THE FEDERAL 4,375
ENERGY REGULATORY COMMISSION FOR THE PERIOD SPECIFIED IN THE 4,376
ORDER, AND EACH ELECTRIC UTILITY WITH NONFIRM CUSTOMERS SHALL 4,377
FILE A SERVICE SCHEDULE PURSUANT TO SECTION 4909.18 OF THE 4,378
REVISED CODE TO EFFECTUATE THIS SERVICE OFFERING. 4,379
(B) THE SERVICE SCHEDULE AUTHORIZED UNDER DIVISION (A) OF 4,381
THIS SECTION, FOR THE PERIOD ENDING NOT LATER THAN DECEMBER 31, 4,382
2005, AS SPECIFIED IN THE COMMISSION'S ORDER UNDER THAT DIVISION, 4,383
SHALL PROVIDE FOR DIRECT, COMPARABLE AND NONDISCRIMINATORY ACCESS 4,384
107
TO THE TRANSMISSION AND DISTRIBUTION SERVICES, CAPACITIES, 4,385
FUNCTIONS, AND FACILITIES OF THE ELECTRIC UTILITY BY ANY CUSTOMER 4,386
THAT IS A NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE 4,387
OF THIS SECTION OR BY A GROUP OF ANY SUCH CUSTOMERS, FOR THE 4,388
PURPOSE OF SECURING FROM A SUPPLIER OR SUPPLIERS OF THE 4,389
CUSTOMER'S OR GROUP'S CHOICE ALL OR A PORTION OF THE CUSTOMER'S 4,390
OR GROUP'S ELECTRIC POWER AND ENERGY REQUIREMENTS NOT SERVED BY 4,391
AN ELECTRIC UTILITY DURING A TIME OF NONEMERGENCY CURTAILMENT OR 4,392
INTERRUPTION.
THE FAILURE OF AN ELECTRIC UTILITY TO FILE SUCH SCHEDULE 4,394
CONSTITUTES INADEQUATE SERVICE UNDER TITLE XLIX OF THE REVISED 4,395
CODE.
(C) THE SERVICE OFFERING AUTHORIZED PURSUANT TO THIS 4,397
SECTION SHALL BE IN ADDITION TO ANY SERVICE OPTIONS OTHERWISE 4,398
AVAILABLE TO A NONFIRM ELECTRIC SERVICE CUSTOMER OR GROUP OF 4,399
NONFIRM ELECTRIC SERVICE CUSTOMERS. IF A CUSTOMER THAT IS A 4,400
NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE OF THIS 4,401
SECTION OR A GROUP OF SUCH CUSTOMERS ELECTS TO MEET ALL OR A 4,402
PORTION OF THE CUSTOMER'S OR GROUP'S ELECTRIC POWER AND ENERGY 4,403
REQUIREMENTS NOT SERVED BY AN ELECTRIC UTILITY DURING A TIME OF 4,404
NONEMERGENCY CURTAILMENT OR INTERRUPTION, BY PURCHASING 4,405
ELECTRICITY AND RELATED SERVICES FROM A SUPPLIER OR SUPPLIERS 4,406
OTHER THAN THAT ELECTRIC UTILITY, ANY EXISTING SERVICE 4,407
ARRANGEMENT UNDER SECTION 4905.31 OF THE REVISED CODE OR ANY
EXISTING SCHEDULE UNDER SECTION 4905.30 OF THE REVISED CODE SHALL 4,409
BE MODIFIED TO PERMIT THIS ELECTION TO OCCUR WITHOUT ECONOMIC 4,410
PENALTY AND TO FACILITATE THE CUSTOMER'S OR GROUP'S ACCESS TO THE 4,411
ELECTRIC MARKET FOR THE PURPOSE OF MANAGING SUPPLY AND PRICE 4,412
VOLATILITY RISKS.
(D) NOTHING IN DIVISIONS (A) TO (C) OF THIS SECTION 4,414
AFFECTS ANY OBLIGATION OF AN ELECTRIC UTILITY TO CURTAIL OR 4,415
INTERRUPT ELECTRIC TRANSMISSION OR DISTRIBUTION SERVICE TO THE
EXTENT REQUIRED TO PROTECT THE INTERESTS OF FIRM ELECTRIC SERVICE
CUSTOMERS FROM AN INJURY THAT IS OTHERWISE UNAVOIDABLE BUT FOR 4,416
108
THE CURTAILMENT OR INTERRUPTION. NOTHING IN THOSE DIVISIONS 4,417
SHALL BE CONSTRUED OR APPLIED TO INCREASE RATES AND CHARGES FOR 4,418
FIRM ELECTRIC SERVICE CUSTOMERS INCLUDING RESIDENTIAL FIRM 4,419
ELECTRIC SERVICE CUSTOMERS.
Sec. 4928.51. (A) THERE IS HEREBY ESTABLISHED IN THE 4,421
STATE TREASURY A UNIVERSAL SERVICE FUND, INTO WHICH SHALL BE 4,422
DEPOSITED ALL UNIVERSAL SERVICE REVENUES REMITTED TO THE DIRECTOR 4,423
OF DEVELOPMENT UNDER THIS SECTION, FOR THE EXCLUSIVE PURPOSES OF 4,424
PROVIDING FUNDING FOR THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS 4,425
AND FOR THE CONSUMER EDUCATION PROGRAM AUTHORIZED UNDER SECTION 4,426
4928.56 OF THE REVISED CODE, AND PAYING THE ADMINISTRATIVE COSTS 4,427
OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,428
EDUCATION PROGRAM. INTEREST ON THE FUND SHALL BE CREDITED TO THE 4,429
FUND. DISBURSEMENTS FROM THE FUND SHALL BE MADE TO ANY SUPPLIER 4,430
THAT PROVIDES A COMPETITIVE RETAIL ELECTRIC SERVICE OR A 4,431
NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO A CUSTOMER WHO IS 4,433
APPROVED TO RECEIVE ASSISTANCE UNDER A SPECIFIED LOW-INCOME
CUSTOMER ASSISTANCE PROGRAM AND TO ANY AUTHORIZED PROVIDER OF 4,434
WEATHERIZATION OR ENERGY EFFICIENCY SERVICE TO A CUSTOMER 4,435
APPROVED TO RECEIVE SUCH ASSISTANCE UNDER A SPECIFIED LOW-INCOME 4,436
CUSTOMER ASSISTANCE PROGRAM. 4,437
(B) UNIVERSAL SERVICE REVENUES SHALL INCLUDE ALL OF THE 4,439
FOLLOWING: 4,440
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,442
AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 2000, 4,443
ATTRIBUTABLE TO THE COLLECTION FROM CUSTOMERS OF THE UNIVERSAL 4,445
SERVICE RIDER PRESCRIBED UNDER SECTION 4928.52 OF THE REVISED 4,446
CODE;
(2) REVENUES REMITTED TO THE DIRECTOR THAT HAVE BEEN 4,448
COLLECTED BY AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 4,449
2000, AS CUSTOMER PAYMENTS UNDER THE PERCENTAGE OF INCOME PAYMENT 4,451
PLAN PROGRAM, INCLUDING REVENUES REMITTED UNDER DIVISION (C) OF 4,452
THIS SECTION;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,454
109
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,455
COOPERATIVE IN THIS STATE NOT EARLIER THAN JULY 1, 2000, UPON THE 4,457
UTILITY'S OR COOPERATIVE'S DECISION TO PARTICIPATE IN THE 4,458
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS.
(C)(1) BEGINNING JULY 1, 2000, AN ELECTRIC DISTRIBUTION 4,460
UTILITY SHALL TRANSFER TO THE DIRECTOR THE RIGHT TO COLLECT ALL 4,462
ARREARAGE PAYMENTS OF A CUSTOMER FOR PERCENTAGE OF INCOME PAYMENT 4,463
PLAN PROGRAM DEBT OWED TO THE UTILITY ON THE DAY BEFORE THAT DATE 4,464
OR RETAIN THE RIGHT TO COLLECT THAT DEBT BUT REMIT TO THE 4,465
DIRECTOR ALL PROGRAM REVENUES RECEIVED BY THE UTILITY FOR THAT 4,466
CUSTOMER.
(2) A CURRENT OR PAST PERCENTAGE OF INCOME PAYMENT PLAN 4,467
PROGRAM CUSTOMER IS RELIEVED OF ANY PAYMENT OBLIGATION UNDER THE 4,468
PERCENTAGE OF INCOME PAYMENT PROGRAM FOR ANY UNPAID ARREARS 4,469
ACCRUED BY THE CUSTOMER UNDER THE PROGRAM AS OF THE EFFECTIVE 4,470
DATE OF THIS SECTION IF THE CUSTOMER, AS DETERMINED BY THE 4,471
DIRECTOR, MEETS BOTH OF THE FOLLOWING CRITERIA: 4,472
(a) THE CUSTOMER AS OF THAT DATE HAS COMPLIED WITH 4,473
CUSTOMER PAYMENT RESPONSIBILITIES UNDER THE PROGRAM. 4,474
(b) THE CUSTOMER IS PERMANENTLY AND TOTALLY DISABLED AS 4,475
DEFINED IN SECTION 5117.01 OF THE REVISED CODE OR IS SIXTY-FIVE 4,477
YEARS OF AGE OR OLDER AS DEFINED IN THAT SECTION. 4,478
(D) THE PUBLIC UTILITIES COMMISSION SHALL COMPLETE AN 4,480
AUDIT OF EACH ELECTRIC UTILITY BY JULY 1, 2000, FOR THE PURPOSE 4,481
OF ESTABLISHING A BASELINE FOR THE PERCENTAGE OF INCOME PAYMENT 4,482
PLAN PROGRAM COMPONENT OF THE LOW-INCOME ASSISTANCE PROGRAMS. 4,483
Sec. 4928.52. (A) BEGINNING JULY 1, 2000, THE UNIVERSAL 4,485
SERVICE RIDER SHALL REPLACE THE PERCENTAGE OF INCOME PAYMENT PLAN 4,487
RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION AND ANY 4,489
AMOUNT IN THE RATES OF AN ELECTRIC UTILITY FOR THE FUNDING OF 4,490
LOW-INCOME CUSTOMER ENERGY EFFICIENCY PROGRAMS. THE UNIVERSAL
SERVICE RIDER SHALL BE A RIDER ON RETAIL ELECTRIC DISTRIBUTION 4,493
SERVICE RATES AS SUCH RATES ARE DETERMINED BY THE PUBLIC 4,494
UTILITIES COMMISSION PURSUANT TO THIS CHAPTER. THE UNIVERSAL 4,495
110
SERVICE RIDER FOR THE FIRST FIVE YEARS AFTER THE STARTING DATE OF 4,496
COMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE THE SUM OF ALL OF 4,497
THE FOLLOWING:
(1) THE LEVEL OF THE PERCENTAGE OF INCOME PAYMENT PLAN 4,499
PROGRAM RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION; 4,500
(2) AN AMOUNT EQUAL TO THE LEVEL OF FUNDING FOR LOW-INCOME 4,502
CUSTOMER ENERGY EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC 4,503
UTILITY RATES IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION; 4,504
(3) ANY ADDITIONAL AMOUNT NECESSARY AND SUFFICIENT TO FUND 4,506
THROUGH THE UNIVERSAL SERVICE RIDER THE ADMINISTRATIVE COSTS OF 4,507
THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,508
EDUCATION PROGRAM CREATED IN SECTION 4928.56 OF THE REVISED CODE. 4,509
(B) IF, DURING OR AFTER THE FIVE-YEAR PERIOD SPECIFIED IN 4,511
DIVISION (A) OF THIS SECTION, THE DIRECTOR OF DEVELOPMENT, AFTER 4,513
CONSULTATION WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED 4,514
UNDER SECTION 4928.58 OF THE REVISED CODE, DETERMINES THAT 4,515
REVENUES IN THE UNIVERSAL SERVICE FUND AND REVENUES FROM FEDERAL 4,517
OR OTHER SOURCES OF FUNDING FOR THOSE PROGRAMS, INCLUDING GENERAL 4,519
REVENUE FUND APPROPRIATIONS FOR THE OHIO ENERGY CREDIT PROGRAM, 4,520
WILL BE INSUFFICIENT TO COVER THE ADMINISTRATIVE COSTS OF THE 4,521
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER
EDUCATION PROGRAM AND PROVIDE ADEQUATE FUNDING FOR THOSE 4,522
PROGRAMS, THE DIRECTOR SHALL FILE A PETITION WITH THE COMMISSION 4,523
FOR AN INCREASE IN THE UNIVERSAL SERVICE RIDER. THE COMMISSION, 4,524
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, MAY ADJUST 4,525
THE UNIVERSAL SERVICE RIDER BY THE MINIMUM AMOUNT NECESSARY TO 4,526
PROVIDE THE ADDITIONAL REVENUES. THE COMMISSION SHALL NOT 4,527
DECREASE THE UNIVERSAL SERVICE RIDER WITHOUT THE APPROVAL OF THE 4,528
DIRECTOR, AFTER CONSULTATION BY THE DIRECTOR WITH THE ADVISORY 4,529
BOARD.
(C) THE UNIVERSAL SERVICE RIDER ESTABLISHED UNDER DIVISION 4,531
(A) OR (B) OF THIS SECTION SHALL BE SET IN SUCH A MANNER SO AS 4,533
NOT TO SHIFT AMONG THE CUSTOMER CLASSES OF ELECTRIC DISTRIBUTION 4,534
UTILITIES THE COSTS OF FUNDING LOW-INCOME CUSTOMER ASSISTANCE 4,536
111
PROGRAMS.
Sec. 4928.53. (A) BEGINNING JULY 1, 2000, THE DIRECTOR OF 4,539
DEVELOPMENT IS HEREBY AUTHORIZED TO ADMINISTER THE LOW-INCOME 4,540
CUSTOMER ASSISTANCE PROGRAMS. FOR THAT PURPOSE, THE PUBLIC 4,542
UTILITIES COMMISSION SHALL COOPERATE WITH AND PROVIDE SUCH 4,543
ASSISTANCE AS THE DIRECTOR REQUIRES FOR ADMINISTRATION OF THE 4,544
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE DIRECTOR SHALL 4,545
CONSOLIDATE THE ADMINISTRATION OF AND REDESIGN AND COORDINATE THE 4,546
OPERATIONS OF THOSE PROGRAMS WITHIN THE DEPARTMENT TO PROVIDE, TO 4,548
THE MAXIMUM EXTENT POSSIBLE, FOR EFFICIENT PROGRAM ADMINISTRATION 4,549
AND A ONE-STOP APPLICATION AND ELIGIBILITY DETERMINATION PROCESS 4,550
AT THE LOCAL LEVEL FOR CONSUMERS.
(B)(1) NOT LATER THAN MARCH 1, 2000, THE DIRECTOR, IN 4,552
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, SHALL ADOPT 4,554
RULES TO CARRY OUT SECTIONS 4928.51 TO 4928.58 OF THE REVISED 4,556
CODE AND ENSURE THE EFFECTIVE AND EFFICIENT ADMINISTRATION AND 4,558
OPERATION OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE 4,559
RULES SHALL TAKE EFFECT ON THE JULY 1, 2000. 4,560
(2) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,563
DIVISION FOR THE OHIO ENERGY CREDIT PROGRAM SHALL BE SUBJECT TO 4,564
SUCH RULE-MAKING AUTHORITY AS IS CONFERRED ON THE DIRECTOR BY 4,565
SECTIONS 5117.01 TO 5117.12 OF THE REVISED CODE, AS AMENDED BY 4,566
SUB. S.B. NO. 3 OF THE 123rd GENERAL ASSEMBLY, EXCEPT THAT RULES 4,568
INITIALLY ADOPTED BY THE DIRECTOR FOR THE OHIO ENERGY CREDIT 4,569
PROGRAM SHALL INCORPORATE THE SUBSTANCE OF THOSE SECTIONS AS THEY 4,570
EXIST ON THE EFFECTIVE DATE OF THIS SECTION. 4,571
(3) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,573
DIVISION FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL 4,574
INCLUDE AUTHORITY TO ADOPT RULES PRESCRIBING CRITERIA FOR 4,575
CUSTOMER ELIGIBILITY AND POLICIES REGARDING PAYMENT AND CREDITING 4,576
ARRANGEMENTS AND RESPONSIBILITIES, PROCEDURES FOR VERIFYING 4,577
CUSTOMER ELIGIBILITY, PROCEDURES FOR DISBURSING PUBLIC FUNDS TO 4,578
SUPPLIERS AND OTHERWISE ADMINISTERING FUNDS UNDER THE DIRECTOR'S 4,579
JURISDICTION, AND REQUIREMENTS AS TO TIMELY REMITTANCES OF 4,580
112
REVENUES DESCRIBED IN DIVISION (B) OF SECTION 4928.51 OF THE 4,581
REVISED CODE. THE DIRECTOR'S AUTHORITY IN DIVISION (B)(3) OF 4,582
THIS SECTION EXCLUDES AUTHORITY TO PRESCRIBE SERVICE 4,585
DISCONNECTION AND CUSTOMER BILLING POLICIES AND PROCEDURES AND TO 4,586
ADDRESS COMPLAINTS AGAINST SUPPLIERS UNDER THE PERCENTAGE OF 4,587
PAYMENT PLAN PROGRAM, WHICH EXCLUDED AUTHORITY SHALL BE EXERCISED 4,588
BY THE PUBLIC UTILITIES COMMISSION, IN COORDINATION WITH THE 4,589
DIRECTOR. RULES ADOPTED BY THE DIRECTOR UNDER THIS DIVISION FOR 4,591
THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL SPECIFY A 4,592
LEVEL OF PAYMENT RESPONSIBILITY TO BE BORNE BY AN ELIGIBLE 4,593
CUSTOMER BASED ON A PERCENTAGE OF THE CUSTOMER'S INCOME. RULES 4,595
INITIALLY ADOPTED BY THE DIRECTOR FOR THE PERCENTAGE OF INCOME 4,596
PAYMENT PLAN PROGRAM SHALL INCORPORATE THE ELIGIBILITY CRITERIA 4,597
AND PAYMENT ARRANGEMENT AND RESPONSIBILITY POLICIES SET FORTH IN 4,598
RULE 4901:1-18-04(B) OF THE OHIO ADMINISTRATIVE CODE IN EFFECT ON 4,600
THE EFFECTIVE DATE OF THIS SECTION.
Sec. 4928.54. BEGINNING ON THE STARTING DATE OF 4,602
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,603
MAY AGGREGATE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM CUSTOMERS 4,604
FOR THE PURPOSE OF COMPETITIVELY AUCTIONING THE SUPPLY OF 4,605
COMPETITIVE RETAIL ELECTRIC GENERATION SERVICE TO BIDDERS 4,606
CERTIFIED UNDER SECTION 4928.08 OF THE REVISED CODE AND FURTHER
QUALIFIED UNDER ELIGIBILITY CRITERIA THE DIRECTOR PRESCRIBES BY 4,608
RULE UNDER DIVISION (B) OF SECTION 4928.53 OF THE REVISED CODE 4,609
AFTER CONSULTATION WITH THE COMMISSION AND ELECTRIC LIGHT 4,610
COMPANIES REGARDING ANY SUCH RULE. THE OBJECTIVES OF THE AUCTION 4,611
SHALL BE TO PROVIDE RELIABLE RETAIL ELECTRIC GENERATION SERVICE 4,612
TO CUSTOMERS, BASED ON SELECTION CRITERIA THAT THE WINNING BID 4,613
PROVIDE THE LOWEST COST AND BEST VALUE TO CUSTOMERS. THE RULES
ADOPTED BY THE DIRECTOR UNDER DIVISION (B) OF SECTION 4928.53 OF 4,615
THE REVISED CODE SHALL ENSURE A FAIR AND UNBIASED AUCTION PROCESS 4,616
AND THE PERFORMANCE OF ANY WINNING BIDDER.
Sec. 4928.55. THE DIRECTOR OF DEVELOPMENT SHALL ESTABLISH 4,619
AN ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM TARGETED, TO THE 4,620
113
EXTENT PRACTICABLE, TO HIGH-COST, HIGH-VOLUME USE STRUCTURES 4,622
OCCUPIED BY CUSTOMERS ELIGIBLE FOR THE PERCENTAGE OF INCOME 4,623
PAYMENT PLAN PROGRAM, WITH THE GOAL OF REDUCING THE ENERGY BILLS 4,624
OF THE OCCUPANTS. ACCEPTANCE OF ENERGY EFFICIENCY AND 4,625
WEATHERIZATION SERVICES PROVIDED BY THE PROGRAM SHALL BE A 4,626
CONDITION FOR THE ELIGIBILITY OF ANY SUCH CUSTOMER TO PARTICIPATE 4,627
IN THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM. ANY DIFFERENCE 4,628
BETWEEN UNIVERSAL SERVICE FUND REVENUES UNDER SECTION 4928.51 OF 4,629
THE REVISED CODE AND ANY SAVINGS IN PERCENTAGE OF INCOME PAYMENT 4,630
PLAN PROGRAM COSTS AS A RESULT OF COMPETITIVE AUCTIONING UNDER 4,631
SECTION 4928.54 OF THE REVISED CODE SHALL BE REINVESTED IN THE 4,633
TARGETED ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM.
Sec. 4928.56. THE DIRECTOR OF DEVELOPMENT MAY ADOPT RULES 4,635
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE ESTABLISHING 4,637
AN EDUCATION PROGRAM FOR CONSUMERS ELIGIBLE TO PARTICIPATE IN THE 4,638
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE EDUCATION PROGRAM 4,639
SHALL PROVIDE INFORMATION TO CONSUMERS REGARDING ENERGY 4,641
EFFICIENCY AND ENERGY CONSERVATION.
Sec. 4928.57. ON AND AFTER THE STARTING DATE OF 4,643
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,644
SHALL PROVIDE A REPORT EVERY TWO YEARS UNTIL 2008 TO THE STANDING 4,645
COMMITTEES OF THE GENERAL ASSEMBLY THAT DEAL WITH PUBLIC UTILITY 4,647
MATTERS, REGARDING THE EFFECTIVENESS OF THE LOW-INCOME CUSTOMER
ASSISTANCE PROGRAMS AND THE CONSUMER EDUCATION PROGRAM, AND THE 4,649
EFFECTIVENESS OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,650
CREATED UNDER SECTIONS 4928.61 TO 4928.63 OF THE REVISED CODE. 4,651
Sec. 4928.58. (A) THERE IS HEREBY CREATED THE PUBLIC 4,653
BENEFITS ADVISORY BOARD, WHICH HAS THE PURPOSE OF ENSURING THAT 4,654
ENERGY SERVICES BE PROVIDED TO LOW-INCOME CONSUMERS IN THIS STATE 4,656
IN AN AFFORDABLE MANNER CONSISTENT WITH THE POLICY SPECIFIED IN 4,657
SECTION 4928.02 OF THE REVISED CODE. THE ADVISORY BOARD SHALL 4,658
CONSIST OF TWENTY-ONE MEMBERS AS FOLLOWS: THE DIRECTOR OF 4,659
DEVELOPMENT, THE CHAIRPERSON OF THE PUBLIC UTILITIES COMMISSION, 4,661
THE CONSUMERS' COUNSEL, AND THE DIRECTOR OF THE AIR QUALITY
114
DEVELOPMENT AUTHORITY, EACH SERVING EX OFFICIO AND REPRESENTED BY 4,663
A DESIGNEE AT THE OFFICIAL'S DISCRETION; TWO MEMBERS OF THE HOUSE 4,664
OF REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE OF 4,665
REPRESENTATIVES, NEITHER OF THE SAME POLITICAL PARTY, AND TWO 4,666
MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE SENATE, 4,667
NEITHER OF THE SAME POLITICAL PARTY; AND THIRTEEN MEMBERS
APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE 4,668
SENATE, CONSISTING OF ONE REPRESENTATIVE OF SUPPLIERS OF 4,669
COMPETITIVE RETAIL ELECTRIC SERVICE; ONE REPRESENTATIVE OF THE 4,670
RESIDENTIAL CLASS OF ELECTRIC UTILITY CUSTOMERS; ONE 4,671
REPRESENTATIVE OF THE INDUSTRIAL CLASS OF ELECTRIC UTILITY 4,672
CUSTOMERS; ONE REPRESENTATIVE OF THE COMMERCIAL CLASS OF ELECTRIC 4,674
UTILITY CUSTOMERS; ONE REPRESENTATIVE OF AGRICULTURAL OR RURAL
CUSTOMERS OF AN ELECTRIC UTILITY; TWO CUSTOMERS RECEIVING 4,675
ASSISTANCE UNDER ONE OR MORE OF THE LOW-INCOME CUSTOMER 4,676
ASSISTANCE PROGRAMS, TO REPRESENT CUSTOMERS ELIGIBLE FOR ANY SUCH 4,677
ASSISTANCE, INCLUDING SENIOR CITIZENS; ONE REPRESENTATIVE OF THE 4,678
GENERAL PUBLIC; ONE REPRESENTATIVE OF LOCAL INTAKE AGENCIES; ONE 4,680
REPRESENTATIVE OF A COMMUNITY-BASED ORGANIZATION SERVING 4,681
LOW-INCOME CUSTOMERS; ONE REPRESENTATIVE OF ENVIRONMENTAL 4,682
PROTECTION INTERESTS; ONE REPRESENTATIVE OF LENDING INSTITUTIONS; 4,684
AND ONE PERSON CONSIDERED AN EXPERT IN ENERGY EFFICIENCY OR 4,685
RENEWABLES TECHNOLOGY. INITIAL APPOINTMENTS SHALL BE MADE NOT 4,686
LATER THAN NOVEMBER 1, 1999.
(B) INITIAL TERMS OF SIX OF THE APPOINTED MEMBERS SHALL 4,688
END ON JUNE 30, 2003, AND INITIAL TERMS OF THE REMAINING SEVEN 4,690
APPOINTED MEMBERS SHALL END ON JUNE 30, 2004. THEREAFTER, TERMS 4,691
OF APPOINTED MEMBERS SHALL BE FOR THREE YEARS, WITH EACH TERM 4,692
ENDING ON THE SAME DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. 4,693
EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF THE MEMBER'S 4,695
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 4,696
APPOINTED. MEMBERS MAY BE REAPPOINTED. 4,697
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,699
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,700
115
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,701
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,702
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,703
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,704
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,705
HAS ELAPSED, WHICHEVER OCCURS FIRST.
(C) BOARD MEMBERS SHALL BE REIMBURSED FOR THEIR ACTUAL AND 4,707
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF BOARD DUTIES. 4,708
SUCH REIMBURSEMENTS CONSTITUTE, AS APPLICABLE, ADMINISTRATIVE 4,709
COSTS OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS FOR THE 4,710
PURPOSE OF DIVISION (A) OF SECTION 4928.51 OF THE REVISED CODE OR 4,711
ADMINISTRATIVE COSTS OF THE ENERGY EFFICIENCY REVOLVING LOAN 4,712
PROGRAM FOR THE PURPOSE OF DIVISION (A) OF SECTION 4528.61 OF THE 4,713
REVISED CODE.
(D) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,715
AMONG ITS MEMBERS. ONLY BOARD MEMBERS APPOINTED BY THE GOVERNOR 4,716
WITH THE ADVICE AND CONSENT OF THE SENATE SHALL BE VOTING MEMBERS 4,717
OF THE BOARD; EACH SHALL HAVE ONE VOTE IN ALL DELIBERATIONS OF 4,718
THE BOARD. A MAJORITY OF THE VOTING MEMBERS CONSTITUTE A QUORUM. 4,719
(E) THE DUTIES OF THE ADVISORY BOARD SHALL BE AS FOLLOWS: 4,721
(1) ADVISE THE DIRECTOR IN THE ADMINISTRATION OF THE 4,724
UNIVERSAL SERVICE FUND AND THE LOW-INCOME CUSTOMER ASSISTANCE 4,725
PROGRAMS AND ADVISE THE DIRECTOR ON THE DIRECTOR'S RECOMMENDATION 4,726
TO THE COMMISSION REGARDING THE APPROPRIATE LEVEL OF THE 4,727
UNIVERSAL SERVICE RIDER;
(2) ADVISE THE DIRECTOR ON THE ADMINISTRATION OF THE 4,729
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM AND THE ENERGY 4,730
EFFICIENCY REVOLVING LOAN PROGRAM FUND UNDER SECTIONS 4928.61 TO 4,731
4928.63 OF THE REVISED CODE. 4,732
(F) THE ADVISORY BOARD IS NOT AN AGENCY, AS DEFINED IN 4,734
SECTION 101.82 OF THE REVISED CODE, FOR PURPOSES OF DIVISIONS (A) 4,735
AND (B) OF SECTION 101.84 OF THE REVISED CODE. 4,736
Sec. 4928.61. (A) THERE IS HEREBY ESTABLISHED IN THE 4,738
STATE TREASURY AN ENERGY EFFICIENCY REVOLVING LOAN FUND, INTO 4,739
116
WHICH SHALL BE DEPOSITED ALL ENERGY EFFICIENCY REVENUES REMITTED 4,740
TO THE DIRECTOR OF DEVELOPMENT UNDER DIVISION (B) OF THIS 4,741
SECTION, FOR THE EXCLUSIVE PURPOSES OF FUNDING THE ENERGY 4,742
EFFICIENCY REVOLVING LOAN PROGRAM CREATED UNDER SECTION 4928.62 4,744
OF THE REVISED CODE AND PAYING THE PROGRAM'S ADMINISTRATIVE 4,745
COSTS. INTEREST ON THE FUND SHALL BE CREDITED TO THE FUND. 4,746
(B) ENERGY EFFICIENCY REVENUES SHALL INCLUDE ALL OF THE 4,748
FOLLOWING: 4,749
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,751
EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE OF A TEMPORARY 4,752
RIDER ON RETAIL ELECTRIC DISTRIBUTION SERVICE RATES AS SUCH RATES 4,753
ARE DETERMINED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO 4,754
THIS CHAPTER. THE RIDER SHALL BE A UNIFORM AMOUNT STATEWIDE, 4,755
DETERMINED BY THE DIRECTOR OF DEVELOPMENT, AFTER CONSULTATION 4,756
WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED BY SECTION 4,757
4928.58 OF THE REVISED CODE. THE AMOUNT SHALL BE DETERMINED BY 4,758
DIVIDING AN AGGREGATE REVENUE TARGET FOR A GIVEN YEAR AS 4,759
DETERMINED BY THE DIRECTOR, AFTER CONSULTATION WITH THE ADVISORY
BOARD, BY THE NUMBER OF CUSTOMERS OF ELECTRIC DISTRIBUTION 4,760
UTILITIES IN THIS STATE IN THE PRIOR YEAR. SUCH AGGREGATE 4,761
REVENUE TARGET SHALL NOT EXCEED MORE THAN FIFTEEN MILLION DOLLARS 4,762
IN ANY YEAR THROUGH 2005 AND SHALL NOT EXCEED MORE THAN FIVE 4,763
MILLION DOLLARS IN ANY YEAR AFTER 2005. THE RIDER SHALL BE
IMPOSED BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,765
ELECTRIC SERVICE AND SHALL TERMINATE AT THE END OF TEN YEARS 4,766
FOLLOWING THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY
REVOLVING LOAN FUND, INCLUDING INTEREST, REACHES ONE HUNDRED 4,767
MILLION DOLLARS, WHICHEVER IS FIRST. 4,768
(2) REVENUES FROM ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,770
LOAN REPAYMENTS AND PAYMENTS FROM ENERGY EFFICIENCY REVOLVING 4,771
LOAN PROGRAM LOAN COLLECTIONS PURSUANT TO SECTION 4928.62 OF THE 4,772
REVISED CODE;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,774
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,775
117
COOPERATIVE IN THIS STATE NOT EARLIER THAN THE STARTING DATE OF 4,776
COMPETITIVE RETAIL ELECTRIC SERVICE UPON THE UTILITY'S OR 4,777
COOPERATIVE'S DECISION TO PARTICIPATE IN THE ENERGY EFFICIENCY 4,778
REVOLVING LOAN PROGRAM.
(C)(1) EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE 4,780
SHALL REMIT TO THE DIRECTOR ON A QUARTERLY BASIS THE REVENUES 4,782
DESCRIBED IN DIVISIONS (B)(1) AND (2) OF THIS SECTION. SUCH 4,783
REMITTANCES SHALL BEGIN WITH THE FIRST QUARTER FOLLOWING THE 4,784
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. 4,785
(2) EACH PARTICIPATING ELECTRIC COOPERATIVE AND 4,787
PARTICIPATING MUNICIPAL ELECTRIC UTILITY SHALL REMIT TO THE 4,788
DIRECTOR ON A QUARTERLY BASIS THE REVENUES DESCRIBED IN DIVISION 4,789
(B)(3) OF THIS SECTION. SUCH REMITTANCES SHALL BEGIN WITH THE 4,790
FIRST QUARTER FOLLOWING THE PARTICIPATING COOPERATIVE'S OR 4,791
UTILITY'S DECISION TO PARTICIPATE. 4,792
(3) ALL REMITTANCES UNDER DIVISIONS (C)(1) AND (2) OF THIS 4,794
SECTION SHALL CONTINUE ONLY UNTIL THE END OF TEN YEARS FOLLOWING 4,795
THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY REVOLVING LOAN 4,797
FUND, INCLUDING INTEREST, REACHES ONE HUNDRED MILLION DOLLARS, 4,798
WHICHEVER IS FIRST.
(D) ANY MONEYS COLLECTED IN RATES FOR NON-LOW-INCOME 4,800
CUSTOMER ENERGY EFFICIENCY PROGRAMS, AS OF THE EFFECTIVE DATE OF 4,801
THIS SECTION AND NOT CONTRIBUTED TO THE ENERGY EFFICIENCY 4,802
REVOLVING LOAN FUND UNDER DIVISION (B)(1) OF THIS SECTION, SHALL 4,803
BE USED TO CONTINUE TO FUND COST-EFFECTIVE, RESIDENTIAL ENERGY 4,804
EFFICIENCY PROGRAMS, BE CONTRIBUTED INTO THE UNIVERSAL SERVICE 4,806
FUND AS A SUPPLEMENT TO THAT REQUIRED UNDER SECTION 4928.53 OF 4,807
THE REVISED CODE, OR BE RETURNED TO RATEPAYERS IN THE FORM OF A 4,808
RATE REDUCTION AT THE OPTION OF THE AFFECTED ELECTRIC
DISTRIBUTION UTILITY. 4,809
Sec. 4928.62. (A) BEGINNING ON THE STARTING DATE OF 4,811
COMPETITIVE RETAIL ELECTRIC SERVICE, THERE IS HEREBY CREATED THE 4,812
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM, WHICH SHALL BE 4,813
ADMINISTERED BY THE DIRECTOR OF DEVELOPMENT. UNDER THE PROGRAM, 4,814
118
THE DIRECTOR MAY AUTHORIZE THE USE OF MONEYS IN THE ENERGY 4,815
EFFICIENCY REVOLVING LOAN FUND FOR FINANCIAL ASSISTANCE FOR 4,816
PROJECTS IN THIS STATE. TO THE EXTENT FEASIBLE GIVEN APPROVED 4,817
APPLICATIONS FOR ASSISTANCE, THE ASSISTANCE SHALL BE DISTRIBUTED 4,818
AMONG THE CERTIFIED TERRITORIES OF ELECTRIC DISTRIBUTION
UTILITIES AND PARTICIPATING ELECTRIC COOPERATIVES, AND AMONG THE 4,819
SERVICE AREAS OF PARTICIPATING MUNICIPAL ELECTRIC UTILITIES, IN 4,820
AMOUNTS PROPORTIONATE TO THE REMITTANCES OF EACH UTILITY AND 4,821
COOPERATIVE UNDER DIVISIONS (B)(1) AND (3) OF SECTION 4928.61 OF 4,823
THE REVISED CODE. THE ASSISTANCE SHALL BE MADE OR PROVIDED
THROUGH APPROVED LENDING INSTITUTIONS IN THE FORM OF LOANS AT 4,824
BELOW MARKET RATES, LOAN GUARANTEES FOR SUCH LOANS, AND LINKED 4,825
DEPOSITS FOR SUCH LOANS. THE DIRECTOR SHALL NOT AUTHORIZE 4,827
FINANCIAL ASSISTANCE UNDER THE PROGRAM UNLESS THE DIRECTOR FIRST 4,828
DETERMINES ALL OF THE FOLLOWING:
(1) THE PROJECT WILL INCLUDE AN INVESTMENT IN PRODUCTS, 4,830
TECHNOLOGIES, OR SERVICES, INCLUDING ENERGY EFFICIENCY FOR 4,831
LOW-INCOME HOUSING, FOR RESIDENTIAL, SMALL COMMERCIAL AND SMALL 4,832
INDUSTRIAL BUSINESS, LOCAL GOVERNMENT, EDUCATIONAL INSTITUTION, 4,833
NONPROFIT ENTITY, OR AGRICULTURAL CUSTOMERS OF AN ELECTRIC 4,834
DISTRIBUTION UTILITY IN THIS STATE OR A PARTICIPATING MUNICIPAL 4,835
ELECTRIC UTILITY OR ELECTRIC COOPERATIVE IN THIS STATE. 4,836
(2) THE PROJECT WILL IMPROVE ENERGY EFFICIENCY IN A 4,838
COST-EFFICIENT MANNER BY USING BOTH THE MOST APPROPRIATE 4,839
NATIONAL, FEDERAL, OR OTHER STANDARDS FOR PRODUCTS AS DETERMINED 4,840
BY THE DIRECTOR, AND THE BEST PRACTICES FOR USE OF TECHNOLOGY, 4,841
PRODUCTS, OR SERVICES IN THE CONTEXT OF THE TOTAL FACILITY OR 4,842
BUILDING.
(3) THE PROJECT WILL BENEFIT THE ECONOMIC AND 4,844
ENVIRONMENTAL WELFARE OF THE CITIZENS OF THIS STATE. 4,845
(4) THE RECEIPT OF FINANCIAL ASSISTANCE IS A MAJOR FACTOR 4,847
IN THE APPLICANT'S DECISION TO PROCEED WITH OR INVEST IN THE 4,848
PROJECT.
(B) IN CARRYING OUT SECTIONS 4928.61 TO 4928.63 OF THE 4,850
119
REVISED CODE, THE DIRECTOR MAY DO ALL OF THE FOLLOWING FOR THE 4,852
PURPOSE OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM: 4,853
(1) ACQUIRE IN THE NAME OF THE DIRECTOR ANY PROPERTY OF 4,855
ANY KIND OR CHARACTER IN ACCORDANCE WITH THIS SECTION, BY 4,856
PURCHASE, PURCHASE AT FORECLOSURE, OR EXCHANGE, ON SUCH TERMS AND 4,857
IN SUCH MANNER AS THE DIRECTOR CONSIDERS PROPER; 4,858
(2) MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS 4,860
NECESSARY OR INCIDENTAL TO THE PERFORMANCE OF THE DIRECTOR'S 4,861
DUTIES AND THE EXERCISE OF THE DIRECTOR'S POWERS UNDER THOSE 4,862
SECTIONS;
(3) EMPLOY OR ENTER INTO CONTRACTS WITH FINANCIAL 4,864
CONSULTANTS, MARKETING CONSULTANTS, CONSULTING ENGINEERS, 4,865
ARCHITECTS, MANAGERS, CONSTRUCTION EXPERTS, ATTORNEYS, TECHNICAL 4,866
MONITORS, ENERGY EVALUATORS, OR OTHER EMPLOYEES OR AGENTS AS THE 4,867
DIRECTOR CONSIDERS NECESSARY, AND SHALL FIX THEIR COMPENSATION; 4,868
(4) ADOPT RULES PRESCRIBING THE APPLICATION PROCEDURES FOR 4,870
FINANCIAL ASSISTANCE UNDER THE PROGRAM; THE TERMS AND CONDITIONS 4,871
OF ANY LOANS, LOAN GUARANTEES, LINKED DEPOSITS, AND CONTRACTS; 4,872
CRITERIA PERTAINING TO THE ELIGIBILITY OF PARTICIPATING LENDING 4,873
INSTITUTIONS; AND ANY OTHER MATTERS NECESSARY FOR THE 4,875
IMPLEMENTATION OF THE PROGRAM;
(5) DO ALL THINGS NECESSARY AND APPROPRIATE FOR THE 4,877
OPERATION OF THE PROGRAM. 4,878
(C) FINANCIAL STATEMENTS, FINANCIAL DATA, AND TRADE 4,880
SECRETS SUBMITTED TO OR RECEIVED BY THE DIRECTOR FROM AN 4,881
APPLICANT OR RECIPIENT OF FINANCIAL ASSISTANCE UNDER SECTIONS 4,882
4928.61 TO 4928.63 OF THE REVISED CODE, OR ANY INFORMATION TAKEN 4,883
FROM THOSE STATEMENTS, DATA, OR TRADE SECRETS FOR ANY PURPOSE, 4,884
ARE NOT PUBLIC RECORDS FOR THE PURPOSE OF SECTION 149.43 OF THE 4,885
REVISED CODE.
Sec. 4928.63. THE DIRECTOR OF DEVELOPMENT AND THE PUBLIC 4,887
BENEFITS ADVISORY BOARD HAVE THE POWERS AND DUTIES PROVIDED IN 4,889
SECTIONS 4928.61 AND 4928.62 OF THE REVISED CODE, IN ORDER TO 4,890
PROMOTE THE WELFARE OF THE PEOPLE OF THIS STATE, TO STABILIZE THE
120
ECONOMY, TO ASSIST IN THE IMPROVEMENT AND DEVELOPMENT WITHIN THIS 4,891
STATE OF NOT-FOR-PROFIT ENTITY, INDUSTRIAL, COMMERCIAL, 4,892
DISTRIBUTION, RESIDENTIAL, AND RESEARCH BUILDINGS AND ACTIVITIES 4,893
REQUIRED FOR THE PEOPLE OF THIS STATE, TO IMPROVE THE ECONOMIC 4,894
WELFARE OF THE PEOPLE OF THIS STATE, AND ALSO TO ASSIST IN THE 4,895
IMPROVEMENT OF AIR, WATER, OR THERMAL POLLUTION CONTROL 4,896
FACILITIES AND SOLID WASTE DISPOSAL FACILITIES. IT IS HEREBY 4,897
DETERMINED THAT THE ACCOMPLISHMENT OF THOSE PURPOSES IS ESSENTIAL 4,898
SO THAT THE PEOPLE OF THIS STATE MAY MAINTAIN THEIR PRESENT HIGH 4,899
STANDARDS IN COMPARISON WITH THE PEOPLE OF OTHER STATES AND SO 4,900
THAT OPPORTUNITIES FOR IMPROVING THE ECONOMIC WELFARE OF THE 4,901
PEOPLE OF THIS STATE, FOR IMPROVING THE HOUSING OF RESIDENTS OF 4,902
THIS STATE, AND FOR FAVORABLE MARKETS FOR THE PRODUCTS OF THIS 4,903
STATE'S NATURAL RESOURCES, AGRICULTURE, AND MANUFACTURING SHALL 4,904
BE IMPROVED; AND THAT IT IS NECESSARY FOR THIS STATE TO ESTABLISH 4,905
THE PROGRAM AUTHORIZED PURSUANT TO SECTIONS 4928.61 AND 4928.62 4,906
OF THE REVISED CODE, TO ESTABLISH THE ENERGY EFFICIENCY REVOLVING 4,907
LOAN PROGRAM AND PROGRAM FUND AND THE ENERGY EFFICIENCY REVOLVING 4,908
LOAN PROGRAM ADVISORY BOARD, AND TO VEST THE DIRECTOR AND THE 4,909
BOARD WITH THE POWERS AND DUTIES PROVIDED IN SECTIONS 4928.61 AND 4,910
4928.62 OF THE REVISED CODE.
Sec. 4928.67. (A)(1) BEGINNING ON THE STARTING DATE OF 4,912
COMPETITIVE RETAIL ELECTRIC SERVICE, A RETAIL ELECTRIC SERVICE 4,913
PROVIDER IN THIS STATE SHALL DEVELOP A STANDARD CONTRACT OR 4,914
TARIFF PROVIDING FOR NET ENERGY METERING. ANY TIME THAT THE 4,915
TOTAL RATED GENERATING CAPACITY USED BY CUSTOMER-GENERATORS IS 4,916
LESS THAN ONE PER CENT OF THE PROVIDER'S AGGREGATE CUSTOMER PEAK 4,917
DEMAND IN THIS STATE, THE PROVIDER SHALL MAKE THIS CONTRACT OR 4,918
TARIFF AVAILABLE TO CUSTOMER-GENERATORS, UPON REQUEST AND ON A 4,919
FIRST-COME, FIRST-SERVED BASIS. THE CONTRACT OR TARIFF SHALL BE 4,920
IDENTICAL IN RATE STRUCTURE, ALL RETAIL RATE COMPONENTS, AND ANY 4,921
MONTHLY CHARGES, TO THE CONTRACT OR TARIFF TO WHICH THE SAME 4,922
CUSTOMER WOULD BE ASSIGNED IF THAT CUSTOMER WERE NOT A 4,923
CUSTOMER-GENERATOR.
121
(2) NET METERING UNDER THIS SECTION SHALL BE ACCOMPLISHED 4,925
USING A SINGLE METER CAPABLE OF REGISTERING THE FLOW OF 4,926
ELECTRICITY IN EACH DIRECTION. IF ITS EXISTING ELECTRICAL METER 4,927
IS NOT CAPABLE OF MEASURING THE FLOW OF ELECTRICITY IN TWO 4,928
DIRECTIONS, THE CUSTOMER-GENERATOR SHALL BE RESPONSIBLE FOR ALL 4,929
EXPENSES INVOLVED IN PURCHASING AND INSTALLING A METER THAT IS 4,930
CAPABLE OF MEASURING ELECTRICITY FLOW IN TWO DIRECTIONS. 4,931
(3) SUCH AN ELECTRIC SERVICE PROVIDER, AT ITS OWN EXPENSE 4,933
AND WITH THE WRITTEN CONSENT OF THE CUSTOMER-GENERATOR, MAY 4,934
INSTALL ONE OR MORE ADDITIONAL METERS TO MONITOR THE FLOW OF 4,935
ELECTRICITY IN EACH DIRECTION. 4,936
(B) CONSISTENT WITH THE OTHER PROVISIONS OF THIS SECTION, 4,938
THE MEASUREMENT OF NET ELECTRICITY SUPPLIED OR GENERATED SHALL BE 4,939
CALCULATED IN THE FOLLOWING MANNER: 4,940
(1) THE ELECTRIC SERVICE PROVIDER SHALL MEASURE THE NET 4,942
ELECTRICITY PRODUCED OR CONSUMED DURING THE BILLING PERIOD, IN 4,943
ACCORDANCE WITH NORMAL METERING PRACTICES. 4,944
(2) IF THE ELECTRICITY SUPPLIED BY THE ELECTRIC SERVICE 4,946
PROVIDER EXCEEDS THE ELECTRICITY GENERATED BY THE 4,947
CUSTOMER-GENERATOR AND FED BACK TO THE ELECTRIC SERVICE PROVIDER 4,948
DURING THE BILLING PERIOD, THE CUSTOMER-GENERATOR SHALL BE BILLED 4,949
FOR THE NET ELECTRICITY SUPPLIED BY THE ELECTRIC SERVICE 4,950
PROVIDER, IN ACCORDANCE WITH NORMAL METERING PRACTICES. IF 4,951
ELECTRICITY IS PROVIDED TO THE ELECTRIC SERVICE PROVIDER, THE 4,952
CREDITS FOR THAT ELECTRICITY SHALL APPEAR IN THE NEXT BILLING 4,953
CYCLE.
(C)(1) A NET METERING SYSTEM USED BY A CUSTOMER-GENERATOR 4,955
SHALL MEET ALL APPLICABLE SAFETY AND PERFORMANCE STANDARDS 4,956
ESTABLISHED BY THE NATIONAL ELECTRICAL CODE, THE INSTITUTE OF 4,957
ELECTRICAL AND ELECTRONICS ENGINEERS, AND UNDERWRITERS 4,958
LABORATORIES.
(2) THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES 4,960
RELATING TO ADDITIONAL CONTROL AND TESTING REQUIREMENTS FOR 4,961
CUSTOMER-GENERATORS WHICH THE COMMISSION DETERMINES ARE NECESSARY 4,962
122
TO PROTECT PUBLIC AND WORKER SAFETY AND SYSTEM RELIABILITY. 4,963
(D) AN ELECTRIC SERVICE PROVIDER SHALL NOT REQUIRE A 4,965
CUSTOMER-GENERATOR WHOSE NET METERING SYSTEM MEETS THE STANDARDS 4,966
AND REQUIREMENTS PROVIDED FOR IN DIVISIONS (C)(1) AND (D) OF THIS 4,968
SECTION TO DO ANY OF THE FOLLOWING:
(1) COMPLY WITH ADDITIONAL SAFETY OR PERFORMANCE 4,970
STANDARDS;
(2) PERFORM OR PAY FOR ADDITIONAL TESTS; 4,972
(3) PURCHASE ADDITIONAL LIABILITY INSURANCE. 4,974
Sec. 4933.14. (A) Except section 4931.08 of the Revised 4,983
Code AND EXCEPT AS OTHERWISE PROVIDED IN DIVISION (B) OF THIS 4,984
SECTION, sections 4931.01 to 4931.23, inclusive, and 4933.13 to 4,987
4933.16, inclusive, of the Revised Code, apply to companies A 4,989
COMPANY organized for supplying public and private buildings, 4,990
manufacturing establishments, streets, alleys, lanes, lands, 4,991
squares, and public places with electric light and power, and to 4,992
an automatic package carrier. Except as provided by section 4,993
4931.08 of the Revised Code AND EXCEPT AS OTHERWISE PROVIDED IN 4,994
DIVISION (B) OF THIS SECTION, every such company shall have HAS 4,997
the powers and be IS subject to the restrictions prescribed for A 4,999
telegraph companies COMPANY by sections 4931.01 to 4931.23, 5,000
inclusive, of the Revised Code. 5,002
(B) SECTIONS 4931.04, 4931.06, 4931.07, 4931.12, AND 5,004
4931.13 OF THE REVISED CODE APPLY TO A COMPANY ORGANIZED FOR 5,005
SUPPLYING ELECTRICITY ONLY IF THE COMPANY TRANSMITS OR 5,006
DISTRIBUTES ELECTRICITY, AND EVERY SUCH COMPANY HAS THE POWERS
AND IS SUBJECT TO THE RESTRICTIONS PRESCRIBED FOR A TELEGRAPH 5,007
COMPANY BY THOSE SECTIONS EXCEPT FOR THE PURPOSE OF ERECTING, 5,008
OPERATING, OR MAINTAINING AN ELECTRIC GENERATING STATION. 5,009
Sec. 4933.15. Any company organized for manufacturing, 5,018
generating, selling, supplying, or transmitting electricity, for 5,020
public and private use, may, for FOR the purpose of making 5,022
preliminary examinations and surveys, ANY COMPANY TRANSMITTING OR 5,023
DISTRIBUTING ELECTRICITY IN THE STATE FOR PUBLIC OR PRIVATE USE 5,024
123
MAY enter upon any land held by any individual or corporation, 5,026
whether acquired by purchase, appropriation proceedings, or 5,027
otherwise, unless such land is owned by and essential to the 5,028
purposes of another corporation possessing the power of eminent 5,029
domain, and. THE COMPANY ALSO may appropriate so much of such 5,030
land, or any right or interest therein IN THE LAND, including any 5,031
trees, edifices, or buildings thereon ON THE LAND, as is deemed 5,033
necessary for the EITHER OF THE FOLLOWING PURPOSES: 5,035
(A) THE erection, operation, or maintenance of an electric 5,039
plant, including its generating stations, substations, switching 5,040
stations, transmission and distribution lines, poles, towers, 5,041
piers, conduits, cables, AND wires, and other necessary 5,043
structures and appliances, or for rights BUT EXCLUDING ITS 5,045
GENERATING STATIONS;
(B) RIGHTS-of-way over such land and adjacent lands for 5,049
the purpose of access to any part of such land. The 5,051
THE right of appropriation shall be exercised in the same 5,054
manner provided by sections 163.01 to 163.22, inclusive, of the 5,055
Revised Code. 5,056
Sec. 4933.33. Annually, each electric light DISTRIBUTION 5,065
company AS DEFINED IN SECTION 5727.80 OF THE REVISED CODE shall 5,066
cause to appear on each customer bill, or shall distribute to 5,067
each of its customers, the following statement: 5,068
"Under state law, the amount you are being billed includes: 5,070
(1) Gross receipts KILOWATT-HOUR taxes that have been in 5,072
effect since 1969 2001 and are currently at $........%. (The 5,075
current total percentage DOLLAR figure of the total gross 5,076
receipts KILOWATT-HOUR taxes levied in Chapter 5727. BY SECTION 5,078
5727.81 of the Revised Code and any other section of law shall be 5,080
placed in the blank); and
(2) Assessments to assist in the support of the operations 5,082
of the PUCO and the office of the consumers' counsel that have 5,083
been in effect since 1912 and 1977, respectively." 5,084
Nothing in this section shall be construed to mean either 5,086
124
that an electric light DISTRIBUTION company operated not for 5,087
profit or one that is owned or operated by a municipal 5,089
corporation is subject to this section or that an electric light 5,090
company subject to this section may not cause such appearance or 5,091
distribute such statement on a more frequent basis. 5,092
Sec. 4933.81. As used in sections 4933.81 to 4933.90 of 5,101
the Revised Code: 5,102
(A) "Electric supplier" means any electric light company 5,104
as defined in section 4905.03 of the Revised Code, including 5,105
electric light companies organized as nonprofit corporations, but 5,106
not including a municipal corporation CORPORATIONS or other unit 5,108
UNITS of local government that provides PROVIDE electric service. 5,109
(B) "Adequate facilities" means distribution lines or 5,111
facilities having sufficient capacity to meet the maximum 5,112
estimated electric service requirements of its existing customers 5,113
and of any new customer occurring during the year following the 5,114
commencement of permanent electric service, and to assure all 5,115
such customers of reasonable continuity and quality of service. 5,116
Distribution facilities and lines of an electric supplier shall 5,117
be considered "adequate facilities" if such supplier offers to 5,118
undertake to make its distribution facilities and lines meet such 5,119
service requirements and can, in the determination of the public 5,120
utilities commission, CAN do so within a reasonable time. 5,121
(C) "Distribution line" means any electric line having a 5,123
design voltage below thirty-five thousand volts phase to phase 5,124
which THAT is being or has been used primarily to provide 5,125
electric service directly to electric load centers by the owner 5,126
of such line. 5,127
(D) "Existing distribution line" means any distribution 5,129
line of an electric supplier which was in existence on January 1, 5,130
1977, or under constructon CONSTRUCTION on such THAT date. 5,132
(E) "Electric load center" means all the 5,134
electric-consuming facilities of any type or character owned, 5,135
occupied, controlled, or used by a person at a single location, 5,136
125
which facilities have been, are, or will be connected to and 5,137
served at a metered point of delivery and to which electric 5,138
service has been, is, or will be rendered. 5,139
(F) "Electric service" means retail electric service 5,141
furnished to an electric load center for ultimate consumption and 5,142
does not include, BUT EXCLUDES furnishing electric power or 5,144
energy at wholesale for resale. IN THE CASE OF A FOR-PROFIT 5,145
ELECTRIC SUPPLIER AND BEGINNING ON THE STARTING DATE OF 5,147
COMPETITIVE RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 5,148
OF THE REVISED CODE, "ELECTRIC SERVICE" ALSO EXCLUDES A 5,149
COMPETITIVE RETAIL ELECTRIC SERVICE. IN THE CASE OF A 5,150
NOT-FOR-PROFIT ELECTRIC SUPPLIER AND BEGINNING ON THAT STARTING 5,151
DATE, "ELECTRIC SERVICE" ALSO EXCLUDES ANY SERVICE COMPONENT OF
COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS SPECIFIED IN AN 5,153
IRREVOCABLE FILING THE ELECTRIC SUPPLIER MAKES WITH THE PUBLIC 5,154
UTILITIES COMMISSION FOR INFORMATIONAL PURPOSES ONLY TO ELIMINATE 5,155
PERMANENTLY ITS CERTIFIED TERRITORY UNDER SECTIONS 4933.81 TO 5,156
4933.90 OF THE REVISED CODE AS TO THAT SERVICE COMPONENT. THE 5,157
FILING SHALL SPECIFY THE DATE ON WHICH SUCH TERRITORY IS SO 5,158
ELIMINATED. NOTWITHSTANDING DIVISION (B) OF SECTION 4928.01 OF 5,159
THE REVISED CODE, SUCH A SERVICE COMPONENT MAY INCLUDE RETAIL 5,160
ANCILLARY, METERING, OR BILLING AND COLLECTION SERVICE 5,161
IRRESPECTIVE OF WHETHER THAT SERVICE COMPONENT HAS OR HAS NOT
BEEN DECLARED COMPETITIVE UNDER SECTION 4928.04 OF THE REVISED 5,162
CODE. UPON RECEIPT OF THE FILING BY THE COMMISSION, THE 5,163
NOT-FOR-PROFIT ELECTRIC SUPPLIER'S CERTIFIED TERRITORY SHALL BE 5,164
ELIMINATED PERMANENTLY AS TO THE SERVICE COMPONENT SPECIFIED IN 5,165
THE FILING AS OF THE DATE SPECIFIED IN THE FILING. AS USED IN 5,166
THIS DIVISION, "COMPETITIVE RETAIL ELECTRIC SERVICE" AND "RETAIL 5,168
ELECTRIC SERVICE" HAVE THE SAME MEANINGS AS IN SECTION 4928.01 OF 5,169
THE REVISED CODE.
(G) "Certified territory" means a geographical area the 5,171
boundaries of which have been established pursuant to sections 5,172
4933.81 to 4933.90 of the Revised Code within which an electric 5,173
126
supplier is authorized and required to provide electric service. 5,174
(H) "Other unit of local government" means any 5,176
governmental unit or body that may come into existence after the 5,177
effective date of this section JULY 12, 1978, with powers and 5,179
authority similar to those of a municipal corporation, or which 5,180
THAT is created to replace or exercise the relevant powers of any 5,181
one or more municipal corporations. 5,182
Sec. 4935.03. (A) The public utilities commission shall 5,191
adopt, and may amend or rescind, rules in accordance with section 5,192
111.15 of the Revised Code, with the approval of the governor, 5,193
defining various foreseen types and levels of energy emergency 5,194
conditions for critical shortages or interruptions in the supply 5,195
of electric power, natural gas, coal, or individual petroleum 5,196
fuels and specifying appropriate measures to be taken at each 5,197
level or for each type of energy emergency as necessary to 5,198
protect the public health or safety or prevent unnecessary or 5,199
avoidable damage to property. The rules may prescribe different 5,200
measures for each different type or level of declared energy 5,201
emergency, and for any type or level shall empower the governor 5,202
to: 5,203
(1) Restrict the energy consumption of state and local 5,205
government offices and industrial and commercial establishments; 5,206
(2) Restrict or curtail public or private transportation 5,208
or require or encourage the use of car pools or mass transit 5,209
systems; 5,210
(3) Order, during a declared energy emergency, any 5,212
electric light, natural gas or gas, or pipeline company; ANY 5,213
SUPPLIER SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE 5,214
REVISED CODE; electric power or gas utility that is owned by a 5,216
municipal corporation or not for profit; coal producer or 5,217
supplier; ELECTRIC POWER PRODUCER OR MARKETER; or petroleum fuel 5,218
producer, refiner, wholesale distributor, or retail dealer to 5,219
sell electricity, gas, coal, or petroleum fuel in order to 5,220
alleviate hardship, or if possible to acquire or produce 5,221
127
emergency supplies to meet emergency needs; 5,222
(4) Order, during a declared energy emergency, other 5,224
energy conservation or emergency energy production or 5,225
distribution measures to be taken in order to alleviate hardship; 5,226
(5) Mobilize emergency management, national guard, law 5,228
enforcement, or emergency medical services. 5,229
The rules shall be designed to protect the public health 5,231
and safety and prevent unnecessary or avoidable damage to 5,232
property. They shall encourage the equitable distribution of 5,233
available electric power and fuel supplies among all geographic 5,234
regions in the state. 5,235
(B) The governor may, after consultation with the chairman 5,237
of the commission, declare an energy emergency by filing with the 5,238
secretary of state a written declaration of an energy emergency 5,239
at any time he finds that the health, safety, or welfare of the 5,240
residents of this state or of one or more counties of this state 5,241
is so imminently and substantially threatened by an energy 5,242
shortage that immediate action of state government is necessary 5,243
to prevent loss of life, protect the public health or safety, and 5,244
prevent unnecessary or avoidable damage to property. The 5,245
declaration shall state the counties, utility service areas, or 5,246
fuel market areas affected, or its statewide effect, and what 5,247
fuels or forms of energy are in critically short supply. An 5,248
energy emergency goes into immediate effect upon filing and 5,249
continues in effect for the period prescribed in the declaration, 5,250
but not more than thirty days. At the end of any thirty-day or 5,251
shorter energy emergency, the governor may issue another 5,252
declaration extending the emergency. The general assembly may by 5,253
concurrent resolution terminate any declaration of an energy 5,254
emergency. The emergency is terminated at the time of filing of 5,255
the concurrent resolution with the secretary of state. When an 5,256
energy emergency is declared, the commission shall implement the 5,257
measures which it determines are appropriate for the type and 5,258
level of emergency in effect. 5,259
128
(C) Energy emergency orders issued by the governor 5,261
pursuant to this section shall take effect immediately upon 5,262
issuance, and the person to whom the order is directed shall 5,263
initiate compliance measures immediately upon receiving the 5,264
order. During an energy emergency the attorney general or the 5,265
prosecuting attorney of the county where violation of a rule 5,266
adopted or order issued under this section occurs may bring an 5,267
action for immediate injunction or other appropriate relief to 5,268
secure prompt compliance. The court may issue an ex parte 5,269
temporary order without notice which shall enforce the 5,270
prohibitions, restrictions, or actions that are necessary to 5,271
secure compliance with the rule or order. Compliance with rules 5,272
or orders issued under this section is a matter of statewide 5,273
concern. 5,274
(D) During a declared energy emergency the governor may 5,276
use the services, equipment, supplies, and facilities of existing 5,277
departments, offices, and agencies of the state and of the 5,278
political subdivisions thereof to the maximum extent practicable 5,279
and necessary to meet the energy emergency, and the officers and 5,280
personnel of all such departments, offices, and agencies shall 5,281
cooperate with and extend such services and facilities to the 5,282
governor upon request. 5,283
(E) During an energy emergency declared under this 5,285
section, no person shall violate any rule adopted or order issued 5,286
under this section. Whoever violates this division is guilty of 5,287
a minor misdemeanor on a first offense, and a misdemeanor of the 5,288
first degree upon subsequent offenses or if the violation was 5,289
purposely committed. 5,290
Sec. 4935.04. (A) As used in this chapter: 5,299
(1) "Major utility facility" means: 5,301
(a) An electric generating plant and associated facilities 5,303
designed for, or capable of, operation at a capacity of fifty 5,304
megawatts or more; 5,305
(b) An electric transmission line and associated 5,307
129
facilities of a design capacity of one hundred twenty-five 5,308
kilovolts or more; 5,309
(c)(b) A gas or natural gas transmission line and 5,311
associated facilities designed for, or capable of, transporting 5,312
gas or natural gas at pressures in excess of one hundred 5,313
twenty-five pounds per square inch. 5,314
"Major utility facility" does not include electric, gas, or 5,316
natural gas distributing lines and gas or natural gas gathering 5,317
lines and associated facilities as defined by the public 5,318
utilities commission; facilities owned or operated by industrial 5,320
firms, persons, or institutions that produce or transmit gas, OR 5,321
natural gas, or electricity primarily for their own use or as a 5,323
byproduct of their operations; gas or natural gas transmission 5,324
lines and associated facilities over which an agency of the 5,325
United States has certificate jurisdiction; facilities owned or 5,326
operated by a person furnishing gas or natural gas directly to
fifteen thousand or fewer customers within this state. 5,327
(2) "Person" has the meaning set forth in section 4906.01 5,329
of the Revised Code. 5,330
(B) Each person owning or operating a gas or natural gas 5,332
transmission line and associated facilities within this state 5,333
over which an agency of the United States has certificate 5,334
jurisdiction shall furnish to the commission a copy of the energy 5,335
information filed by the person with that agency of the United 5,337
States.
(C) Each person owning or operating a major utility 5,339
facility within this state, or furnishing gas, natural gas, or 5,341
electricity directly to more than fifteen thousand customers 5,343
within this state annually shall furnish a report to the 5,344
commission for its review. The report shall be termed the 5,346
long-term forecast report and shall contain: 5,347
(1) A year-by-year, ten-year forecast of annual energy 5,349
demand, peak load, reserves, and a general description of the 5,350
resource plan to meet demand; 5,351
130
(2) A range of projected loads during the period; 5,353
(3) A description of major utility facilities planned to 5,355
be added or taken out of service in the next ten years, including 5,356
prospective sites for generating plants and, to the extent the 5,357
information is available, PROSPECTIVE SITES for transmission line 5,358
locations; 5,359
(4) For gas and natural gas, a projection of anticipated 5,361
supply, supply prices, and sources of supply over the forecast 5,362
period; 5,363
(5) For electricity, a range of projected loads and a 5,365
projection of annual energy demand, anticipated generating 5,366
capacity, and system seasonal peak demand for a twenty-year 5,367
period; 5,368
(6) A description of proposed changes in the transmission 5,370
system planned for the next five years; 5,371
(7)(6) A month-by-month forecast of both energy demand and 5,373
peak load for electric utilities, and gas sendout for gas and 5,374
natural gas utilities, for the next two years. The report shall 5,375
describe the major utility facilities that, in the judgment of 5,377
such person, will be required to supply system demands during the 5,378
forecast period. The report from a gas or natural gas utility 5,379
shall cover the ten- and five-year periods next succeeding the 5,380
date of the report, and the report from an electric utility shall 5,381
cover the twenty-, ten-, and five-year periods next succeeding 5,382
the date of the report. Each report shall be made available to 5,383
the public and furnished upon request to municipal corporations 5,384
and governmental agencies charged with the duty of protecting the 5,385
environment or of planning land use. The report shall be in such 5,386
form and shall contain such information as may be prescribed by 5,387
the commission. 5,388
Each person not owning or operating a major utility 5,390
facility within this state and serving fifteen thousand or fewer 5,392
gas, OR natural gas, or electric customers within this state 5,394
shall furnish such information as the commission may require 5,395
131
REQUIRES.
(D) The commission shall: 5,397
(1) Review and comment on the reports filed under division 5,399
(C) of this section, and make the information contained therein 5,400
IN THE REPORTS readily available to the public and other 5,402
interested government agencies; 5,403
(2) Compile and publish each year the general locations of 5,405
the proposed power plant sites and general locations of proposed 5,406
and existing transmission line routes within its jurisdiction as 5,407
identified in the reports filed under division (C) of this 5,408
section, identifying the general location of such sites and 5,409
routes and the approximate year when construction is expected to 5,410
commence, and to make such information readily available to the 5,411
public, to each newspaper of daily or weekly circulation within 5,412
the area affected by the proposed site and route, and to 5,413
interested federal, state, and local agencies; 5,414
(3) Hold a public hearing: 5,416
(a) On the first long-term forecast report filed after 5,418
January 11, 1983; 5,419
(b) At least once in every five years, on the latest 5,421
report furnished by any person subject to this section; 5,422
(c) On the latest report furnished by any person subject 5,424
to this section if the report contains a substantial change from 5,425
the preceding report furnished by that person. "Substantial 5,426
change" includes, but is not limited to: 5,427
(i) The addition or cancellation of a generating facility 5,429
of fifty megawatts or more in the report furnished pursuant to 5,430
division (C) of this section; 5,431
(ii) A change in forecasted peak loads or energy 5,433
consumption over the forecast period of greater than an average 5,434
of one-half of one per cent per year; 5,435
(iii)(ii) Demonstration of good cause to the commission by 5,437
an interested party. 5,438
The commission shall fix a time for the hearing, which 5,440
132
shall be not later than ninety days after the report is filed, 5,441
and publish notice of the date, time of day, and location of the 5,442
hearing in a newspaper of general circulation in each county in 5,443
which the person furnishing the report has or intends to locate a 5,444
major utility facility and will provide service during the period 5,445
covered by the report. The notice shall be published not less 5,446
than fifteen nor more than thirty days before the hearing and 5,447
shall state the matters to be considered. 5,448
Absent a showing of good cause, the commission shall not 5,450
hold hearings under division (D)(3) of this section with respect 5,451
to persons who, as the primary purpose of their business, furnish 5,452
gas, OR natural gas, or electricity directly to fifteen thousand 5,454
or fewer customers within this state solely for direct 5,455
consumption by those customers. 5,456
(4) Require such information from persons subject to its 5,458
jurisdiction as necessary to assist in the conduct of hearings 5,459
and any investigation or studies it may undertake; 5,460
(5) Conduct any studies or investigations that are 5,462
necessary or appropriate to carry out its responsibilities under 5,463
this section. 5,464
(E)(1) The scope of the hearing held under division (D)(3) 5,466
of this section shall be limited to issues relating to 5,467
forecasting. The power siting board, the office of consumers' 5,468
counsel, and all other persons having an interest in the 5,469
proceedings shall be afforded the opportunity to be heard and to 5,470
be represented by counsel. The commission may adjourn the 5,471
hearing from time to time. 5,472
(2) The hearing shall include, but not be limited to, a 5,474
review of: 5,475
(a) The projected loads and energy requirements for each 5,477
year of the period; 5,478
(b) The estimated installed capacity and supplies to meet 5,480
the projected load requirements. 5,481
(F) Based upon the report furnished pursuant to division 5,483
133
(C) of this section and the hearing record, the commission, 5,484
within ninety days from the close of the record in the hearing, 5,485
shall determine if: 5,486
(1) All information relating to current activities, 5,488
facilities agreements, and published energy policies of the state 5,489
has been completely and accurately represented; 5,490
(2) The load requirements are based on substantially 5,492
accurate historical information and adequate methodology; 5,493
(3) The forecasting methods consider the relationships 5,495
between price and energy consumption; 5,496
(4) The report identifies and projects reductions in 5,498
energy demands due to energy conservation measures in the 5,499
industrial, commercial, residential, transportation, and energy 5,500
production sectors in the service area; 5,501
(5) Utility company forecasts of loads and resources are 5,503
reasonable in relation to population growth estimates made by 5,504
state and federal agencies, transportation, and economic 5,505
development plans and forecasts, and make recommendations where 5,506
possible for necessary and reasonable alternatives to meet 5,507
forecasted electric power demand; 5,508
(6) The report considers plans for expansion of the 5,510
regional power grid and the planned facilities of other utilities 5,511
in the state; 5,512
(7) All assumptions made in the forecast are reasonable 5,514
and adequately documented. 5,515
(G) The commission shall adopt rules under section 111.15 5,517
of the Revised Code to establish criteria for evaluating the 5,518
long-term forecasts of needs for gas and electric power 5,519
TRANSMISSION SERVICE, to conduct hearings held under this 5,520
section, to establish reasonable fees to defray the direct cost 5,522
of the hearings and the review process, and such other rules as 5,523
are necessary and convenient to implement this section. 5,524
(H) The hearing record produced under this section and the 5,526
determinations of the commission shall be introduced into 5,527
134
evidence and shall be considered in determining the basis of need 5,528
for power siting board deliberations under division (A)(1) of 5,529
section 4906.10 of the Revised Code. The hearing record produced 5,530
under this section shall be introduced into evidence and shall be 5,531
considered by the public utilities commission in its initiation 5,532
of programs, examinations, AND findings, investigations, and 5,533
remedies under section 4905.70 of the Revised Code, and shall be 5,535
considered in their THE COMMISSION'S determinations with respect 5,536
to the establishment of just and reasonable rates under section 5,538
4909.15 of the Revised Code and financing utility facilities and 5,539
authorizing issuance of all securities under sections 4905.40, 5,540
4905.401, 4905.41, and 4905.42 of the Revised Code. The forecast 5,541
findings also shall serve as the basis for all other energy 5,543
planning and development activities of the state government where 5,544
electric and gas data are required. 5,545
(I)(1) No court other than the supreme court shall have 5,547
power to review, suspend, or delay any determination made by the 5,548
commission under this section, or enjoin, restrain, or interfere 5,549
with the commission in the performance of official duties. A 5,550
writ of mandamus shall not be issued against the commission by 5,551
any court other than the supreme court. 5,552
(2) A final determination made by the commission shall be 5,554
reversed, vacated, or modified by the supreme court on appeal, 5,555
if, upon consideration of the record, such court is of the 5,556
opinion that such determination was unreasonable or unlawful. 5,557
The proceeding to obtain such reversal, vacation, or 5,559
modification shall be by notice of appeal, filed with the 5,560
commission by any party to the proceeding before it, against the 5,561
commission, setting forth the determination appealed from and 5,562
errors complained of. The notice of appeal shall be served, 5,563
unless waived, upon the commission by leaving a copy at the 5,564
office of the chairman CHAIRPERSON of the commission at Columbus. 5,566
The court may permit an interested party to intervene by 5,567
cross-appeal.
135
(3) No proceeding to reverse, vacate, or modify a 5,569
determination of the commission is commenced unless the notice of 5,570
appeal is filed within sixty days after the date of the 5,571
determination. 5,572
Sec. 5117.01. (A) As used in this chapter SECTIONS 5,581
5117.01 TO 5117.12 OF THE REVISED CODE: 5,582
(1)(A) "Credit" means the credit on utility heating bills 5,584
granted under division (A) of section 5117.09 of the Revised 5,585
Code. 5,586
(2)(B) "Current monthly bill" means the amount charged for 5,588
energy consumed in the most recent monthly billing period and 5,589
does not include any past due balance. 5,590
(3)(C) "Current total income" means the adjusted gross 5,592
income of the head of household and the person's spouse for the 5,594
six-month period beginning the first day of January and ending 5,595
the thirtieth day of June of the year in which an application is 5,596
made, as determined under the "Internal Revenue Code of 1954," 5,597
68A Stat. 3, 26 U.S.C. 1, as amended, minus the amount of 5,598
disability benefits included in adjusted gross income but not to 5,599
exceed twenty-six hundred dollars, plus old age and survivors 5,600
benefits received pursuant to the "Social Security Act," 5,601
retirement, pension, annuity, or other retirement payments or 5,602
benefits not included in federal adjusted gross income; payments 5,603
received pursuant to the "Railroad Retirement Act," 50 Stat. 307, 5,604
45 U.S.C. 228, and interest on federal, state, and local 5,605
government obligations. Disability benefits paid by the veterans 5,606
administration or a branch of the armed forces of the United 5,607
States on account of an injury or disability are not included in 5,608
current total income. 5,609
(4)(D) "Energy company" means every retail propane dealer 5,611
that distributes propane by pipeline, and every electric light, 5,612
rural electric, gas, or natural gas company. 5,613
(5)(E) "Energy dealer" means every retail dealer of fuel 5,615
oil, propane, coal, wood, and kerosene. 5,616
136
(6)(F) "Head of household" means a person who occupies a 5,618
household as the person's homestead and who is financially 5,619
responsible for its other occupants, if any, or the spouse of 5,621
such a person if both occupy the same household. No person is a 5,622
head of household if the person occupies a household for the 5,623
taxable year prior to the year in which an application is filed 5,625
and was claimed as a dependent on the federal income tax return 5,626
of another occupant of the same household and was not the 5,627
taxpayer's spouse or if the person could have been claimed if 5,629
such a return had been filed for such year and was not the other 5,630
occupant's spouse.
(7)(G) "Household" means any dwelling unit, including a 5,632
unit in a multiple unit dwelling, a manufactured home, or a 5,634
mobile home, to which utility heating services or energy 5,636
commodities are provided.
(8)(H) "Payment" means the one hundred twenty-five-dollar 5,638
payment provided under division (A) of section 5117.10 of the 5,639
Revised Code. 5,640
(9)(I) "Permanently and totally disabled" refers to a 5,642
person who has, on the first day of July of the year an 5,643
application is made, some impairment in body or mind that makes 5,644
the person unfit to work at any substantially remunerative 5,646
employment that the person would otherwise be reasonably able to 5,648
perform and that will, with reasonable probability, continue for 5,649
an indefinite period of at least twelve months without any 5,650
present indication of recovery therefrom, or who has been 5,651
certified as permanently and totally disabled by a state or 5,652
federal agency having the function of so classifying persons. 5,653
(10)(J) "Sixty-five years of age or older" refers to a 5,655
person who has attained age sixty-four prior to the first day of 5,656
January of the year of AN application for reduction in utility 5,657
charges IS MADE. 5,658
(11)(K) "Total income" means the adjusted gross income of 5,660
the head of household and the person's spouse for the year 5,662
137
preceding the year in which an application is made, as determined 5,663
under the "Internal Revenue Code of 1954," 68A Stat. 3, 26 U.S.C. 5,664
1, as amended, minus the amount of disability benefits included 5,665
in adjusted gross income but not to exceed fifty-two hundred 5,666
dollars, plus old age and survivors benefits received pursuant to 5,667
the "Social Security Act," retirement, pension, annuity, or other 5,668
retirement payments or benefits not included in federal adjusted 5,669
gross income; payments received pursuant to the "Railroad 5,670
Retirement Act," 50 Stat. 307, 45 U.S.C. 228; and interest on 5,671
federal, state, and local government obligations. Disability 5,672
benefits paid by the veteran's administration DEPARTMENT OF 5,673
VETERANS AFFAIRS or a branch of the armed forces of the United 5,675
States on account of an injury or disability shall not be 5,676
included in total income.
(B) As used in sections 5117.01 to 5117.12 of the Revised 5,678
Code: 5,679
(1) "Applicant" means any person who has submitted an 5,681
application under division (C) of section 5117.03 of the Revised 5,682
Code. 5,683
(2) "Application" means the application in section 5117.03 5,685
of the Revised Code. 5,686
(3) "Program" means the Ohio energy credit program 5,688
established under sections 5117.01 to 5117.12 of the Revised 5,689
Code. 5,690
(4)(L) "Purchased power costs" means charges for the costs 5,692
of power purchased by an electric light company under Chapters 5,693
4905. and 4909. of the Revised Code and includes charges 5,694
resulting from the exchange of electric power. 5,695
Sec. 5117.02. (A) The tax commissioner DIRECTOR OF 5,704
DEVELOPMENT shall adopt rules, or amendments and rescissions of 5,706
rules, PURSUANT TO SECTION 4928.52 OF THE REVISED CODE, for the 5,707
administration of THE OHIO ENERGY CREDIT PROGRAM UNDER sections 5,708
5117.01 to 5117.12 of the Revised Code. 5,709
(B) As a means of efficiently administering the program 5,711
138
established by sections 5117.01 to 5117.12 of the Revised Code, 5,712
the tax commissioner DIRECTOR may extend, by as much as a total 5,713
of thirty days, any date specified in such sections for the 5,715
performance of a particular action by an individual or an 5,716
officer.
(C)(1) Except as provided in division (C)(2) of this 5,718
section, the tax commissioner DIRECTOR shall ADOPT, in accordance 5,720
with divisions (A), (B), (C), (D), (E), and (H) of section 119.03 5,721
and section 119.04 of the Revised Code, adopt whatever rules, or 5,722
amendments or rescissions of rules are required by or are 5,723
otherwise necessary to implement sections 5117.01 to 5117.12 of 5,724
the Revised Code. A rule, amendment, or rescission adopted under 5,725
this division is not exempt from the hearing requirements of 5,726
section 119.03 of the Revised Code pursuant to division (G) of 5,727
that section, or subject to section 111.15 or 5703.14 of the 5,728
Revised Code. 5,729
(2) If an emergency necessitates the immediate adoption of 5,731
a rule, or the immediate adoption of an amendment or rescission 5,732
of a rule that is required by or otherwise necessary to implement 5,733
sections 5117.01 to 5117.12 of the Revised Code, the tax 5,735
commissioner may DIRECTOR immediately MAY adopt the emergency 5,737
rule, amendment, or rescission without complying with division 5,739
(A), (B), (C), (D), (E), or (H) of section 119.03 of the Revised 5,740
Code so long as he THE DIRECTOR states the reasons for the 5,741
necessity in the emergency rule, amendment, or rescission. The 5,742
emergency rule, amendment, or rescission is effective on the day 5,743
copies of the emergency rule, amendment, or rescission, in final 5,744
form and in compliance with division (A)(2) of section 119.04 of 5,745
the Revised Code, are filed as follows: two certified copies of 5,746
the emergency rule, amendment, or rescission shall be filed with 5,747
both the secretary of state and the director of the legislative 5,748
service commission, and one certified copy of the emergency rule, 5,749
amendment, or rescission shall be filed with the joint committee 5,750
on agency rule review. If all copies are not filed on the same 5,751
139
day, the emergency rule, amendment, or rescission is effective on 5,752
the day on which the latest filing is made. An emergency rule, 5,753
amendment, or rescission adopted under this division is not 5,754
subject to section 111.15, division (F) of section 119.03, or 5,755
section 5703.14 of the Revised Code. An emergency rule, 5,756
amendment, or rescission adopted under this division continues in 5,757
effect until amended or rescinded by the tax commissioner 5,759
DIRECTOR in accordance with division (C)(1) or (2) of this 5,760
section, except that the rescission of an emergency rescission 5,761
does not revive the rule rescinded. 5,762
(D) Except where otherwise provided, each form, 5,764
application, notice, and the like used in fulfilling the 5,765
requirements of sections 5117.01 to 5117.12 of the Revised Code 5,766
shall be approved by the tax commissioner DIRECTOR. 5,767
Sec. 5117.03. (A)(1) The tax commissioner DIRECTOR OF 5,776
DEVELOPMENT shall prescribe the form of THE application FOR 5,778
ASSISTANCE UNDER THE OHIO ENERGY CREDIT PROGRAM. The application 5,779
shall be in the form of a signed statement, shall require no more 5,780
information than is necessary to establish an applicant's 5,781
eligibility under section 5117.07 of the Revised Code, and shall 5,782
be clear and concise in its format, requirements, and 5,783
instructions. The form shall request the following information: 5,784
(a) The name and address of the applicant; 5,786
(b) The type of energy or commodity that is the source of 5,788
the heat produced by the primary heating system in the residence 5,789
of the applicant; 5,790
(c) The name of the energy company or energy dealer that 5,792
supplies the energy or commodity that is the source of the heat 5,793
produced by the primary heating system in the residence of the 5,794
applicant and, if the applicant receives his THE APPLICANT'S 5,795
energy from a company, the applicant's account number; 5,796
(d) The applicant's total income or current total income; 5,798
(e) In the case of an application based upon physical 5,800
disability, a certification signed by a physician, in the case of 5,801
140
an application based upon mental disability, a certification 5,802
signed by a physician or psychologist, or in the case of either 5,803
such disability, a certification from a state or federal agency 5,804
having the function of so classifying persons; 5,805
(f) The age of the applicant; 5,807
(g) Any other information required to make eligibility 5,809
determinations under section 5117.07 of the Revised Code. 5,810
Each form shall contain a statement that signing such 5,812
application constitutes a delegation of authority by the 5,813
applicant to the commissioner DIRECTOR to examine any financial 5,814
records that relate to income earned by the applicant as stated 5,816
on the application for the purpose of determining eligibility 5,817
under section 5117.07 of the Revised Code and possible violation 5,818
of division (B) of section 5117.11 of the Revised Code. 5,819
(2) The tax commissioner DIRECTOR shall mail or otherwise 5,821
provide an application form to each person requesting such form. 5,823
(B)(1) The tax commissioner DIRECTOR shall devise and 5,825
prescribe an application renewal form on which the head of 5,827
household may indicate by check mark that he THE HEAD OF 5,828
HOUSEHOLD received a credit or payment for the preceding heating 5,830
season. Application renewal forms shall seek from persons 5,831
applying on such basis a certification by the applicant attesting 5,832
to his THE APPLICANT'S permanent and total disability and the 5,833
name of a physician, psychologist, or government agency willing 5,834
to provide an additional certification if so requested under 5,835
division (D) of section 5117.07 of the Revised Code. Such forms 5,836
shall also include such other information as the tax commissioner 5,837
DIRECTOR requires and shall be clear and concise in format, 5,839
requirements, and instructions. 5,840
(2) On or before the fifteenth day of June, the tax 5,842
commissioner DIRECTOR shall mail or otherwise provide an 5,843
application renewal form to each head of household who received a 5,845
credit or payment during the preceding heating season. 5,846
(3) Application renewal forms shall be reviewed and 5,848
141
disposed of in the same manner provided for application forms in 5,849
section 5117.07 of the Revised Code. 5,850
(C) Applications and application renewal forms shall be 5,852
returned to the tax commissioner DIRECTOR no later than the first 5,854
day of September. If an applicant is determined eligible for a 5,855
credit under division (A)(1) of section 5117.07 of the Revised 5,856
Code and the applicant's account number is not provided on the 5,857
application form pursuant to division (A)(1)(c) of this section, 5,858
the tax commissioner DIRECTOR shall make a good faith effort to 5,859
acquire such number before certifying the applicant's eligibility 5,861
to an energy company under section 5117.08 of the Revised Code. 5,862
The tax commissioner DIRECTOR may request an energy company to 5,863
assist in efforts to acquire an applicant's account number and, 5,865
if so requested, a company shall cooperate in such efforts. 5,866
Sec. 5117.04. (A) Every energy company and energy dealer 5,875
shall, at least once during June, and once during August, SHALL 5,876
begin to distribute to each of its residential heating customers 5,878
a plain and clear notice, printed in ten-point type on a sheet or 5,879
card on which no other words appear on either the front or back, 5,880
that states the right of qualified residential customers to 5,881
receive a credit or payment UNDER THE OHIO ENERGY CREDIT PROGRAM 5,883
and that explains in detail, in a fashion reasonably calculated 5,884
to inform, the relevant mechanisms established under sections 5,885
5117.01 to 5117.12 of the Revised Code to effectuate that right. 5,886
The notice shall also contain, in ten-point boldface type, the 5,887
following statement: "The right of eligible customers to receive 5,888
a credit against utility bills or a payment for energy bills is 5,889
provided in legislation (House Bill 657) passed by the General 5,890
Assembly and signed by the Governor."
(B) The tax commissioner DIRECTOR OF DEVELOPMENT shall 5,892
cause to be printed notices of the type specified in division (A) 5,894
of this section and application forms in sufficient quantity for 5,895
distribution. The tax commissioner DIRECTOR shall maintain a 5,896
system for distributing application forms to appropriate public 5,898
142
locations. The distribution system shall be designed to make 5,899
application forms available to as many qualified persons as 5,900
possible.
(C) The tax commissioner DIRECTOR shall arrange for the 5,902
establishment of a toll-free telephone number to enable all 5,903
persons in this state to make inquiries and obtain information 5,904
concerning the credits or payments. 5,905
Sec. 5117.05. The tax commissioner DIRECTOR OF 5,914
DEVELOPMENT, in consultation with the commission on 5,915
Hispanic-Latino affairs, shall develop an outreach program, 5,917
including Spanish-speaking communication formats, designed to 5,918
make all Spanish-speaking persons who meet the eligibility 5,919
requirements for participation in the Ohio energy credit program 5,920
aware of the nature and extent of available benefits and methods 5,921
for acquiring and making applications. The program shall include
assistance to such persons in making applications. The 5,922
commissioner DIRECTOR shall implement the program in cooperation 5,924
with the commission on Hispanic-Latino affairs. 5,925
Sec. 5117.07. (A) On or before the first day of October, 5,934
the tax commissioner DIRECTOR OF DEVELOPMENT shall review all 5,935
applications submitted under division (C) of section 5117.03 of 5,937
the Revised Code and shall determine the eligibility of each 5,938
applicant to receive a credit or payment. 5,939
(1) An applicant is eligible for a credit of thirty per 5,941
cent if the applicant is a head of household, has a total income 5,942
of five thousand dollars or less or a current total income of two 5,943
thousand five hundred dollars or less, owns and occupies or rents 5,944
and occupies a household receiving the source of energy for its 5,945
primary heating system from an energy company and such energy is 5,946
separately metered, and is either of the following: 5,947
(a) Sixty-five years of age or older; 5,949
(b) Permanently and totally disabled. 5,951
(2) An applicant is eligible for a credit of twenty-five 5,953
per cent if the applicant is a head of household, has a total 5,954
143
income of more than five thousand dollars but not more than nine 5,955
thousand dollars or a current total income of more than two 5,956
thousand five hundred dollars but not more than four thousand 5,957
five hundred dollars, is sixty-five years of age or older or 5,958
permanently and totally disabled, and owns and occupies or rents 5,959
and occupies a household receiving the source of energy for its 5,960
primary heating system from an energy company and such energy is 5,961
separately metered. 5,962
(3) An applicant is eligible for a payment if either of 5,964
the following applies to the applicant: 5,965
(a) He THE APPLICANT would be eligible for the credit 5,967
under division (A)(1) or (2) of this section but for the fact 5,969
that the source of energy for the primary heating system of the 5,970
applicant's household is not separately metered; 5,971
(b) He THE APPLICANT is a head of household, has a total 5,973
income of no more than nine thousand dollars or a current total 5,975
income of no more than four thousand five hundred dollars, is 5,976
sixty-five years of age or older or permanently and totally 5,977
disabled, and owns and occupies or rents and occupies a household 5,978
receiving the source of energy for its primary heating system 5,979
from an energy dealer.
(4) In the case of a multiple unit dwelling for which 5,981
separate metering for the source of energy for its primary 5,982
heating system is not provided, more than one applicant occupying 5,983
such dwelling may be determined eligible for a payment under 5,984
division (A)(3)(a) of this section. 5,985
(B) Notwithstanding division (A) of this section: 5,987
(1) No head of household who resides in public housing or 5,989
receives a rent subsidy from a government agency is eligible for 5,990
a credit or payment unless the person's rent subsidy does not 5,991
reflect the costs of his THAT PERSON'S household receiving the 5,992
source of energy for its primary heating system; 5,994
(2) A resident of a nursing home, hospital, or other 5,996
extended health care facility is not eligible for a credit or 5,997
144
payment for the costs of providing the source of energy for the 5,998
primary heating system of the facility. 5,999
(C) The tax commissioner DIRECTOR shall establish a 6,002
procedure whereby he THE DIRECTOR can verify total income and 6,003
current total income for the calendar year in which an applicant 6,005
is determined eligible for a payment or credit. If a person 6,006
receives a credit or payment that he THE PERSON is ineligible to 6,007
receive under division (A) of this section AS DETERMINED BY THE 6,009
DIRECTOR, that person shall refund to the tax commissioner 6,010
DIRECTOR the credit or payment, or excess portion of a credit or 6,011
payment, he THAT PERSON received. The sum refunded shall be 6,012
deposited in the state treasury to the credit of the general 6,014
revenue fund UNIVERSAL SERVICE FUND CREATED IN SECTION 4928.51 OF 6,015
THE REVISED CODE.
(D) The tax commissioner DIRECTOR may request an 6,017
additional certification of permanent and total disability for 6,018
any applicant claiming such status on an application renewal form 6,019
submitted under section 5117.03 of the Revised Code. Such 6,020
certification shall be requested from the person or agency named 6,021
on the form pursuant to division (B)(1) of section 5117.03 of the 6,022
Revised Code. If such additional certification is refused due to 6,023
a conclusion by the person or agency that the applicant is not 6,024
permanently and totally disabled, the commissioner DIRECTOR shall 6,026
determine the applicant ineligible for any credit or payment. If 6,027
such additional certification is unavailable or refused for any 6,028
other reason, the tax commissioner DIRECTOR may determine the 6,029
applicant to be eligible for a credit or payment provided he THE 6,031
DIRECTOR has good cause to believe the applicant is permanently 6,033
and totally disabled.
(E) On or before the first day of October, the tax 6,035
commissioner DIRECTOR shall notify each applicant of the 6,036
disposition of his THE APPLICANT'S application under divisions 6,038
(A) and (B) of this section. At the same time, he THE DIRECTOR 6,040
shall notify the applicant, regardless of whether his THE 6,042
145
APPLICANT'S application is approved or disapproved, that the 6,043
applicant may be eligible to participate in a state or federal 6,044
weatherization program and should contact his THE APPLICANT'S 6,045
community action agency for further information. If an 6,047
application is disapproved, the applicant may appeal to the tax 6,048
commissioner DIRECTOR for a hearing on the matter. A notice of 6,050
disapproval shall include a detailed explanation of the 6,051
applicant's right of appeal under this chapter. Any such appeal 6,052
shall be on an appeal form prescribed by the tax commissioner 6,053
DIRECTOR and shall be filed with the tax commissioner DIRECTOR 6,055
within twenty days of the receipt of the notice of disapproval. 6,057
Sec. 5117.08. (A)(1) On or before the tenth day of 6,066
October, the tax commissioner DIRECTOR OF DEVELOPMENT shall begin 6,068
to prepare and certify to each energy company that provides 6,069
energy for home heating a list containing the name and account 6,070
number of each head of household determined eligible for a credit 6,071
under divisions (A) and (B) of section 5117.07 of the Revised 6,072
Code and served by that company, the address of the household, 6,073
and the source of the heat produced by the primary heating system 6,074
in the residence of the applicant. The tax commissioner may 6,075
DIRECTOR, for good cause, MAY certify addenda to such lists, 6,077
containing the names of any heads of household whose names were 6,078
not included in the earlier lists but who, except for failure to 6,079
meet the deadline requirements of sections 5117.01 to 5117.12 of 6,080
the Revised Code, would have been certified in the original 6,081
lists. Within thirty days of receipt of such list and in any 6,082
month for which a credit is required under sections 5117.01 to 6,083
5117.12 of the Revised Code, the company may verify that each 6,084
head of household on the commissioner's DIRECTOR'S list receives 6,085
energy for home heating at the household address appearing on 6,087
such list or that the source of heat produced by the primary 6,088
heating system in the household is energy supplied by the 6,089
company. If the company determines that a person listed does not 6,090
receive energy for home heating at such address or that the 6,091
146
source of the heat produced by the primary heating system in the 6,092
residence of such person is not supplied by the company, it shall 6,093
notify the commissioner DIRECTOR of such fact and may refuse to 6,095
grant the credit provided under division (A) of section 5117.07 6,096
of the Revised Code. Upon receipt of such notice, the 6,097
commissioner DIRECTOR shall determine the accuracy of the 6,099
determination of the company and, should he THE DIRECTOR not 6,100
concur with the company, shall order the company to provide the 6,101
credit.
(2) The good faith exercise by any company of any power of 6,103
refusal granted under division (A)(1) of this section does not 6,104
subject such company to any penalty or liability provided under 6,105
division (A) of section 5117.11 of the Revised Code. 6,106
(B)(1) Nothing in sections 5117.01 to 5117.12 of the 6,108
Revised Code shall be construed to abridge the right of an 6,109
otherwise eligible applicant to receive a credit or payment 6,110
because he THE APPLICANT has either changed the location of his 6,112
THE APPLICANT'S residence or the nature of the occupancy of his 6,113
THE APPLICANT'S residence, as between a tenant or an owner, at a 6,115
time that could, as a result of the operation of sections 5117.01 6,116
to 5117.12 of the Revised Code, cause him THE APPLICANT to be 6,117
disqualified from receiving, or continuing to receive, the credit 6,118
or payment.
(2) Where a person who submits a form or information 6,120
required under sections 5117.01 to 5117.10 of the Revised Code 6,121
does so in a timely fashion but, because of the occurrence of an 6,122
error or omission with respect to such form or information, 6,123
either on his THE PERSON'S OWN part or on the part of those 6,124
persons required by sections 5117.01 to 5117.12 of the Revised 6,126
Code to take administrative, executive, or ministerial action 6,127
regarding such form or information, the certification of 6,128
eligibility by the tax commissioner DIRECTOR to an energy company 6,129
takes place after the expiration of a deadline imposed under 6,130
sections 5117.01 to 5117.12 of the Revised Code, the company 6,131
147
shall grant the credit within thirty days and, whenever 6,132
appropriate, grant the credit on a retroactive basis. 6,133
(3) The tax commissioner DIRECTOR shall adopt a rule 6,135
ensuring that the requirements of divisions (B)(1) and (2) of 6,136
this section are effectuated. 6,137
Sec. 5117.09. (A) With respect to each of its residential 6,146
customers, every energy company shall, after receipt of a 6,147
certification list provided under division (A) of section 5117.08 6,148
of the Revised Code, cause the granting of a credit in accordance 6,149
with this section against the monthly billing of each household 6,150
appearing on the list except as provided in division (A) of 6,151
section 5117.08 of the Revised Code. In the case of an applicant 6,152
who has a total income of five thousand dollars or less or a 6,153
current total income of two thousand five hundred dollars or 6,154
less, the credit shall amount to thirty per cent of the current 6,155
monthly bill rendered to such household by the company for the 6,156
billing months of December, January, February, March, and April 6,157
following the receipt of a list on which the household appears. 6,158
In the case of an applicant who has a total income of more than 6,159
five thousand dollars but not more than nine thousand dollars or 6,160
a current total income of more than two thousand five hundred 6,161
dollars but not more than four thousand five hundred dollars, the 6,162
credit shall amount to twenty-five per cent of the current 6,163
monthly bill rendered to such household by the company for the 6,164
billing months of December, January, February, March, and April 6,165
following the receipt of a list on which the household appears. 6,166
If purchased power costs are incurred by an energy company during 6,167
the billing month for which a credit is provided under this 6,168
division, the credit shall also be applied to such costs, whether 6,169
or not the costs are charged to a current montly MONTHLY bill for 6,170
such months. 6,171
(B) Every energy company shall read the meter of each of 6,173
its qualified residential customers who may receive a credit 6,174
under division (A) of this section at least one time for the 6,175
148
service period of November and at least one time in the service 6,176
period for the current monthly bill rendered for the billing 6,177
month of April. In the event a company is unable to read a meter 6,178
because of failure to gain access after a good faith effort or 6,179
because a certification list was supplied to the utility fewer 6,180
than thirty days prior to the normal date of meter reading, the 6,181
company may render a calculated bill. In such instances, the 6,182
company shall make an adjustment to the amount of the credit 6,183
granted to the customer based upon the next actual reading of the 6,184
meter if the reading shows the previous calculation to have been 6,185
in error and set forth the amount of such adjustments in the 6,186
report required to be filed with the tax commissioner DIRECTOR OF 6,187
DEVELOPMENT under division (D) of this section. 6,188
(C) On each billing that is subject to a credit under 6,190
division (A) of this section, there shall appear in ten-point 6,191
type both the amount of the credit and to the left of such amount 6,192
"Ohio Energy Credit." 6,193
(D) On or before the fifteenth day of each month following 6,195
one in which credits were provided under division (A) of this 6,196
section, each energy company shall, on a form prescribed by the 6,197
tax commissioner DIRECTOR and requesting information that he THE 6,199
DIRECTOR determines is necessary for the purpose of verifying the 6,201
propriety of the payment of credits, certify to the commissioner 6,202
DIRECTOR the total amount of all credits it granted pursuant to 6,204
division (A) of this section during the preceding month. Not 6,205
later than thirty days after his receipt of such certification, 6,206
the commissioner DIRECTOR shall pay the company the amount 6,208
certified. If the commissioner DIRECTOR determines that a 6,210
company previously received amounts greater than the amounts of 6,211
credits properly granted, such company, upon notice from the 6,212
commissioner DIRECTOR, shall reimburse the commissioner DIRECTOR 6,213
in the amount of the overpayments. Such reimbursements shall be 6,214
deposited in the general revenue fund. 6,215
(E)(l) Any energy company that purposely fails to grant 6,217
149
the credit provided under division (A) of this section is liable 6,218
to each person entitled to the credit and certified to the 6,219
company by the tax commissioner DIRECTOR pursuant to division (A) 6,221
of section 5117.08 of the Revised Code in treble the amount of 6,222
the total credit not granted. The consumers' counsel may, on 6,223
behalf of any person or persons not granted the credit, MAY bring 6,224
an action to recover such treble damages in the court of common 6,225
pleas of the county in which is located the office of the company 6,226
nearest the household of any such person or persons. The 6,227
consumers' counsel may also, on behalf of any persons not granted 6,228
the credit, MAY bring a class action to recover such treble 6,229
damages in the court of common pleas of any county in which is 6,230
located an office of the company and, if feasible, in which is 6,231
located a significant number of members of the class. Any treble 6,232
damage recovery under this division does not, in any manner, 6,233
diminish any other liability provided under sections 5117.01 to 6,234
5117.12 of the Revised Code. Clerical errors shall not be 6,235
considered an offense or incur liability under this division. 6,236
(2) An action shall be brought by the consumers' counsel 6,238
under division (E)(1) of this section only after he THE 6,239
CONSUMERS' COUNSEL has made a good faith attempt to dispose of 6,241
the claim by settlement, including a good faith request for only 6,242
such information in the possession of an energy company as is 6,243
needed to determine the existence or extent of such a right of 6,244
action.
(3) Nothing in division (E)(1) of this section shall be 6,246
construed to prevent persons acting without the assistance of the 6,247
consumers' counsel from bringing an action or class action under 6,248
such division. 6,249
Sec. 5117.10. (A) On or before the fifteenth day of 6,258
January, the tax commissioner DIRECTOR OF DEVELOPMENT shall pay 6,259
each applicant determined eligible for a payment under divisions 6,261
(A) and (B) of section 5117.07 of the Revised Code one hundred 6,262
twenty-five dollars.
150
(B) The tax commissioner DIRECTOR may withhold from any 6,264
payment to which a person would otherwise be entitled under 6,266
division (A) of this section any amount that the tax commissioner 6,267
DIRECTOR determines was erroneously received by such person in a 6,269
preceding year under this or the program established under Am. 6,270
Sub. H.B. 230, as amended by Am. H.B. 937, Am. Sub. H.B. 1073, 6,271
Am. Sub. S.B. 493, and Am. Sub. S.B. 523 of the 112th general 6,272
assembly, provided the tax commissioner DIRECTOR has employed all 6,273
other legal methods reasonably available to obtain reimbursement 6,275
for the erroneous payment or credit prior to the commencement of 6,276
the current program year.
(C) Payments made under this section and credits granted 6,278
under section 5117.09 of the Revised Code shall not be considered 6,279
income for the purpose of determining eligibility or the level of 6,280
benefits or assistance under section 329.042 or Chapters 5107., 6,281
5111., and 5115. of the Revised Code; supplemental security 6,283
income payments under Title XVI of the "Social Security Act," 49 6,284
Stat. 620 (1935), 42 U.S.C. 301, as amended; or any other program 6,285
under which eligibility or the level of benefits or assistance is 6,286
based upon need measured by income.
Sec. 5117.12. (A) On or before the thirty-first day of 6,295
August of each year, each energy company shall file a written 6,296
report with the tax commissioner DIRECTOR OF DEVELOPMENT 6,297
regarding the impact, if any, of the requirements of division (E) 6,299
of section 5117.11 of the Revised Code on the number of 6,300
uncollectible and past due residential accounts for the 6,301
twelve-month period ending on the preceding thirty-first day of 6,302
July. The report shall include such information as is prescribed 6,303
by the tax commissioner DIRECTOR. The information shall be based 6,305
on actual reviews of residential customer accounts and shall be 6,306
presented in verifiable form. The tax commissioner DIRECTOR may 6,307
consult with the public utilities commission and the consumers' 6,309
counsel in prescribing the contents of such reports and complying 6,310
with the requirements of division (C)(4) of this section. 6,311
151
(B) Before the thirty-first day of January of each year, 6,313
the tax commissioner DIRECTOR shall prepare a written report 6,314
including a final review of the Ohio energy credit program for 6,316
which applications were required to be mailed or provided by the 6,317
fifteenth day of June of the second preceding calendar year 6,318
pursuant to section 5117.03 of the Revised Code and an interim 6,319
review of the program for which applications were required to be 6,320
mailed or provided by the fifteenth day of June of the preceding 6,321
calendar year under such section. On or before the thirty-first 6,322
day of January of each year, the commissioner DIRECTOR shall 6,323
provide written copies of such report to the speaker of the house 6,325
of representatives, president of the senate, minority leaders of 6,326
the house of representatives and senate, chairpersons of the 6,328
house finance and appropriations committee and senate finance 6,329
committee, chairpersons of the committees of the house of 6,330
representatives and senate customarily entrusted with matters 6,331
concerning public utilities, clerk of the house of 6,332
representatives, and clerk of the senate. 6,333
(C) Each report prepared under division (B) of this 6,335
section shall include a review of: 6,336
(1) Program costs; 6,338
(2) The number of persons receiving credits or payments 6,340
under the program; 6,341
(3) Progress in the implementation of any changes in the 6,343
program made by the general assembly within the period covered by 6,344
the report; 6,345
(4) The impact, if any, of the requirements of division 6,347
(E) of section 5117.11 of the Revised Code on the number of 6,348
uncollectible and past due residential accounts of energy 6,349
companies for the twelve-month period ending on the preceding 6,350
thirty-first day of July; 6,351
(5) The impact of any federal energy assistance programs 6,353
available to the same groups of people as are eligible for the 6,354
energy credit program under sections 5117.01 to 5117.12 of the 6,355
152
Revised Code, together with any recommendations on modifications 6,356
that may, because of the federal programs, be needed in the 6,357
energy credit program; 6,358
(6) Any suggestions for improving the program; 6,360
(7) Any other matters considered appropriate by the 6,362
commissioner DIRECTOR. 6,363
(D) The tax commissioner DIRECTOR shall consult with the 6,365
auditor of state, energy companies, energy dealers, department of 6,367
aging, and commission on Hispanic-Latino affairs in the 6,369
preparation of any report under this section. The commissioner 6,370
DIRECTOR may require information from such agencies for the 6,372
purpose of preparing such report.
Sec. 5701.03. As used in Title LVII of the Revised Code: 6,381
(A) "Personal property" includes every tangible thing that 6,383
is the subject of ownership, whether animate or inanimate, 6,384
including a business fixture, and that does not constitute real 6,385
property as defined in section 5701.02 of the Revised Code. 6,386
"Personal property" also includes every share, portion, right, or 6,387
interest, either legal or equitable, in and to every ship, 6,388
vessel, or boat, used or designed to be used in business either 6,389
exclusively or partially in navigating any of the waters within 6,390
or bordering on this state, whether such ship, vessel, or boat is 6,391
within the jurisdiction of this state or elsewhere. "Personal 6,392
property" does not include money as defined in section 5701.04 of 6,393
the Revised Code, motor vehicles registered by the owner thereof, 6,394
ELECTRICITY, or, for purposes of any tax levied on personal 6,396
property, patterns, jigs, dies, or drawings that are held for use 6,397
and not for sale in the ordinary course of business, except to 6,398
the extent that the value of the ELECTRICITY, patterns, jigs, 6,399
dies, or drawings is included in the valuation of inventory 6,401
produced for sale.
(B) "Business fixture" means an item of tangible personal 6,403
property that has become permanently attached or affixed to the 6,404
land or to a building, structure, or improvement, and that 6,405
153
primarily benefits the business conducted by the occupant on the 6,406
premises and not the realty. "Business fixture" includes, but is 6,407
not limited to, machinery, equipment, signs, storage bins and 6,408
tanks, whether above or below ground, and broadcasting, 6,409
transportation, transmission, and distribution systems, whether 6,410
above or below ground. "Business fixture" also means those 6,411
portions of buildings, structures, and improvements that are 6,412
specially designed, constructed, and used for the business 6,413
conducted in the building, structure, or improvement, including, 6,414
but not limited to, foundations and supports for machinery and 6,415
equipment. "Business fixture" does not include fixtures that are 6,416
common to buildings, including, but not limited to, heating, 6,417
ventilation, and air conditioning systems primarily used to 6,418
control the environment for people or animals, tanks, towers, and 6,419
lines for potable water or water for fire control, electrical and 6,420
communication lines, and other fixtures that primarily benefit 6,421
the realty and not the business conducted by the occupant on the 6,422
premises. 6,423
Sec. 5703.052. There is hereby created in the state 6,432
treasury the tax refund fund, from which refunds shall be paid 6,433
for taxes illegally or erroneously assessed or collected, or for 6,434
any other reason overpaid, that are levied by Chapter 4301., 6,435
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 6,436
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36, 6,437
4303.33, 5707.03, 5725.18, 5727.38 and former sections 5727.27, 6,439
and 5727.40 5727.81 of the Revised Code. Refunds for fees 6,441
illegally or erroneously assessed or collected, or for any other 6,442
reason overpaid, that are levied by sections 3734.90 to 3734.9014 6,443
of the Revised Code also shall be paid from the fund. However, 6,444
refunds for taxes levied under section 5739.101 of the Revised 6,445
Code shall not be paid from the tax refund fund, but shall be 6,446
paid as provided in section 5739.104 of the Revised Code. 6,447
Upon certification by the tax commissioner to the treasurer 6,449
of state of a tax refund, fee refund, or tax credit due, or by 6,450
154
the superintendent of insurance of a domestic or foreign 6,451
insurance tax refund, the treasurer of state may place the amount 6,452
certified to the credit of the fund. The certified amount 6,453
transferred shall be derived from current receipts of the same 6,454
tax or the fee for which the refund arose or, in the case of a 6,455
tax credit refund, from the current receipts of the taxes levied 6,456
by sections 5739.02 and 5741.02 of the Revised Code. 6,457
If the tax refund arises from a tax payable to the general 6,459
revenue fund, and current receipts from that source are 6,460
inadequate to make the transfer of the amount so certified, the 6,461
treasurer of state may transfer such certified amount from 6,462
current receipts of the sales tax levied by section 5739.02 of 6,463
the Revised Code. 6,464
Sec. 5703.053. As used in this section, "postal service" 6,473
means the United States postal service. 6,474
An application to the tax commissioner for a tax refund 6,476
under sections 4307.05, 4307.07, 5727.91, 5728.061, 5735.122, 6,477
5735.13, 5735.14, 5735.141, 5735.142, 5739.07, 5741.10, 5743.05, 6,479
5743.53, 5749.08, and 5753.06 of the Revised Code or division (B) 6,480
of section 5703.05 of the Revised Code, or a fee refunded under 6,481
section 3734.905 of the Revised Code, that is received after the 6,482
last day for filing under such section shall be considered to 6,483
have been filed in a timely manner if: 6,484
(A) The application is delivered by the postal service and 6,486
the earliest postal service postmark on the cover in which the 6,487
application is enclosed is not later than the last day for filing 6,488
the application; 6,489
(B) The application is delivered by the postal service, 6,491
the only postmark on the cover in which the application is 6,492
enclosed was affixed by a private postal meter, the date of that 6,493
postmark is not later than the last day for filing the 6,494
application, and the application is received within seven days of 6,495
such last day; or 6,496
(C) The application is delivered by the postal service, no 6,498
155
postmark date was affixed to the cover in which the application 6,499
is enclosed or the date of the postmark so affixed is not 6,500
legible, and the application is received within seven days of the 6,501
last day for making the application. 6,502
Sec. 5705.34. When the budget commission has completed its 6,511
work with respect to a tax budget, it shall certify its action to 6,512
the taxing authority, together with an estimate by the county 6,514
auditor of the rate of each tax necessary to be levied by the 6,515
taxing authority within its subdivision or taxing unit, and what
part thereof is in excess of, and what part within, the ten-mill 6,516
tax limitation. The certification shall also indicate the date 6,517
on which each tax levied by the taxing authority will expire. 6,518
Each
IF A TAXING AUTHORITY LEVIES A TAX FOR A FIXED SUM OF MONEY 6,520
OR TO PAY DEBT CHARGES FOR THE TAX YEAR FOR WHICH THE TAX BUDGET 6,521
IS PREPARED, AND THE TAX WAS LEVIED IN TAX YEAR 1998, THE COUNTY 6,522
AUDITOR, WHEN ESTIMATING THE RATE AT WHICH THE TAX SHALL BE 6,523
LEVIED IN THE CURRENT YEAR, SHALL ESTIMATE THE RATE NECESSARY TO 6,524
RAISE THE REQUIRED SUM LESS THE ESTIMATED AMOUNT OF ANY PAYMENTS
MADE FOR THE TAX YEAR TO A TAXING UNIT UNDER SECTIONS 5727.85 AND 6,525
5727.86 OF THE REVISED CODE. THE ESTIMATED RATE SHALL BE THE 6,526
RATE OF THE LEVY THAT THE BUDGET COMMISSION CERTIFIES WITH ITS 6,527
ACTION UNDER THIS SECTION. 6,528
EACH taxing authority, by ordinance or resolution, shall 6,530
authorize the necessary tax levies and certify them to the county 6,531
auditor before the first day of October in each year, or at such 6,532
later date as is approved by the tax commissioner, except that 6,533
the certification by a board of education shall be made by the 6,534
first day of April or at such later date as is approved by the 6,535
commissioner, and except that a township board of park
commissioners that is appointed by the board of township trustees 6,536
and oversees a township park district that contains only 6,537
unincorporated territory shall authorize only those taxes 6,538
approved by, and only at the rate approved by, the board of 6,539
156
township trustees as required by division (C) of section 511.27
of the Revised Code. If the levying of a tax to be placed on the 6,540
duplicate of the current year is approved by the electors of the 6,541
subdivision under sections 5705.01 to 5705.47 of the Revised 6,542
Code; if the rate of a school district tax is increased due to 6,543
the repeal of a school district income tax and property tax rate 6,544
reduction at an election held pursuant to section 5748.04 of the
Revised Code; or if refunding bonds to refund all or a part of 6,545
the principal of bonds payable from a tax levy for the ensuing 6,546
fiscal year are issued or sold and in the process of delivery, 6,547
the budget commission shall reconsider and revise its action on 6,548
the budget of the subdivision or school library district for 6,549
whose benefit the tax is to be levied after the returns of such
election are fully canvassed, or after the issuance or sale of 6,550
such refunding bonds is certified to it. 6,551
Sec. 5727.01. As used in this chapter: 6,560
(A) "Public utility" means each person referred to as a 6,562
telephone company, telegraph company, electric company, natural 6,563
gas company, pipe-line company, water-works company, water 6,564
transportation company, heating company, rural electric company, 6,565
or railroad company. 6,566
(B) "Gross receipts" means the entire receipts for 6,568
business done by any person from operation as a public utility, 6,569
or incidental thereto, or in connection therewith, INCLUDING ANY 6,570
RECEIPTS RECEIVED UNDER CHAPTER 4928. OF THE REVISED CODE. The 6,571
gross receipts for business done by an incorporated company 6,572
engaged in operation as a public utility includes the entire 6,573
receipts for business done by such company under the exercise of 6,574
its corporate powers, whether from the operation as a public 6,575
utility or from any other business. 6,576
(C) "Rural electric company" means any nonprofit 6,578
corporation, organization, association, or cooperative engaged in 6,579
the business of supplying electricity to its members or persons 6,580
owning an interest therein in an area the major portion of which 6,581
157
is rural. 6,582
(D) Any person: 6,584
(1) Is a telegraph company when engaged in the business of 6,586
transmitting telegraphic messages to, from, through, or in this 6,587
state; 6,588
(2) Is a telephone company when primarily engaged in the 6,590
business of providing local exchange telephone service, excluding 6,591
cellular radio service, in this state; 6,592
(3) Is an electric company when engaged in the business of 6,594
generating, transmitting, or distributing electricity within this 6,595
state for use by others, BUT EXCLUDES A RURAL ELECTRIC COMPANY; 6,596
(4) Is a natural gas company when engaged in the business 6,598
of supplying natural gas for lighting, power, or heating purposes 6,599
to consumers within this state; 6,600
(5) Is a pipe-line company when engaged in the business of 6,602
transporting natural gas, oil, or coal or its derivatives through 6,603
pipes or tubing, either wholly or partially within this state; 6,604
(6) Is a water-works company when engaged in the business 6,606
of supplying water through pipes or tubing, or in a similar 6,607
manner, to consumers within this state; 6,608
(7) Is a water transportation company when engaged in the 6,610
transportation of passengers or property, by boat or other 6,611
watercraft, over any waterway, whether natural or artificial, 6,612
from one point within this state to another point within this 6,613
state, or between points within this state and points without 6,614
this state; 6,615
(8) Is a heating company when engaged in the business of 6,617
supplying water, steam, or air through pipes or tubing to 6,618
consumers within this state for heating purposes; 6,619
(9) Is a railroad company when engaged in the business of 6,621
owning or operating a railroad either wholly or partially within 6,622
this state on rights-of-way acquired and held exclusively by such 6,624
company, or otherwise, and includes a passenger, street, 6,625
suburban, or interurban railroad company. 6,626
158
As used in division (D)(2) of this section, "local exchange 6,628
telephone service" means making available or furnishing access 6,629
and a dial tone to all persons within a local calling area for 6,630
use in originating and receiving voice grade communications over 6,631
a switched network operated by the provider of the service within 6,632
the area and for gaining access to other telecommunication 6,633
services. 6,634
(E) "Taxable property" means the property required by 6,636
section 5727.06 of the Revised Code to be assessed by the tax 6,637
commissioner, but does not include either of the following: 6,638
(1) An item of tangible personal property that for the 6,640
period subsequent to the effective date of an air, water, or 6,641
noise pollution control certificate and continuing so long as the 6,642
certificate is in force, has been certified as part of the 6,643
pollution control facility with respect to which the certificate 6,644
has been issued; 6,645
(2) An item of tangible personal property that during the 6,647
construction of a plant or facility and until the item is first 6,648
capable of operation, whether actually used in operation or not, 6,649
is incorporated in or being held exclusively for incorporation in 6,650
that plant or facility. 6,651
(F) "Taxing district" means a municipal corporation or 6,653
township, or part thereof, in which the aggregate rate of 6,654
taxation is uniform. 6,655
(G) "Telecommunications service" has the same meaning as 6,657
in division (AA) of section 5739.01 of the Revised Code. 6,658
(H) "Interexchange telecommunications company" means a 6,660
person that is engaged in the business of transmitting telephonic 6,661
messages to, from, through, or in this state, but that is not a 6,662
telephone company. 6,663
(I) "Sale and leaseback transaction" means a transaction 6,665
in which a public utility or interexchange telecommunications 6,666
company sells any tangible personal property to a person other 6,667
than a public utility or interexchange telecommunications company 6,668
159
and within the same calendar year leases that property back from 6,669
the buyer. 6,670
(J) "PRODUCTION EQUIPMENT" MEANS ALL TAXABLE STEAM, 6,672
NUCLEAR, HYDRAULIC, AND OTHER PRODUCTION PLANT EQUIPMENT USED TO 6,673
GENERATE ELECTRICITY. FOR TAX YEARS PRIOR TO 2001, "PRODUCTION 6,674
EQUIPMENT" INCLUDES TAXABLE STATION EQUIPMENT THAT IS LOCATED AT 6,675
A PRODUCTION PLANT. 6,676
(K) "TAX YEAR" MEANS THE YEAR FOR WHICH PROPERTY OR GROSS 6,678
RECEIPTS ARE SUBJECT TO ASSESSMENT UNDER THIS CHAPTER. THIS 6,679
DIVISION DOES NOT LIMIT THE TAX COMMISSIONER'S ABILITY TO ASSESS 6,680
AND VALUE PROPERTY OR GROSS RECEIPTS OUTSIDE THE TAX YEAR. 6,681
(L) "COMBINED COMPANY" MEANS ANY PERSON ENGAGED IN THE 6,683
ACTIVITY OF AN ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY THAT IS 6,684
ALSO ENGAGED IN THE ACTIVITY OF A HEATING COMPANY OR A NATURAL 6,685
GAS COMPANY, OR ANY COMBINATION THEREOF. 6,686
Sec. 5727.02. As used in this chapter, "public utility," 6,695
"electric company," "natural gas company," "pipe-line company," 6,696
"water-works company," "water transportation company" or "heating 6,697
company" does not include ANY OF THE FOLLOWING: 6,698
(A) Any person that is engaged in some other primary 6,700
business to which the supplying of electricity, heat, natural 6,701
gas, water, water transportation, steam, or air to others is 6,702
incidental; or. AS USED IN THIS DIVISION, "SUPPLYING OF 6,703
ELECTRICITY" MEANS GENERATING, TRANSMITTING, OR DISTRIBUTING 6,704
ELECTRICITY.
(B) Any person that supplies electricity, natural gas, 6,706
water, water transportation, steam, or air to its tenants, 6,707
whether for a separate charge or otherwise; or 6,708
(C) Any person whose primary business in this state 6,710
consists of producing, refining, or marketing petroleum or its 6,711
products. 6,712
Sec. 5727.03. (A) A COMBINED COMPANY SHALL FILE A 6,714
SEPARATE REPORT UNDER SECTION 5727.08 OF THE REVISED CODE FOR 6,716
EACH LISTED ACTIVITY OF A COMBINED COMPANY. THE TAX COMMISSIONER 6,718
160
SHALL SEPARATELY VALUE, APPORTION, AND ASSESS THE COMPANY'S 6,719
PROPERTY. DIVISIONS (B)(1), (2), AND (3) OF THIS SECTION SHALL 6,720
BE USED TO DETERMINE THE TAXABLE PROPERTY THAT CANNOT DIRECTLY BE 6,721
ATTRIBUTED TO PROVIDING ONE OF THE LISTED ACTIVITIES OF A 6,722
COMBINED COMPANY. BEGINNING WITH THE PUBLIC UTILITY EXCISE TAX 6,724
ASSESSED BY THE TAX COMMISSIONER ON OR BEFORE THE FIRST MONDAY IN 6,725
NOVEMBER 2002, DIVISION (C) OF THIS SECTION SHALL BE USED BY THE 6,727
TAX COMMISSIONER TO SEPARATE THE GROSS RECEIPTS OF A COMBINED 6,728
COMPANY ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A 6,729
RURAL ELECTRIC COMPANY.
(B)(1) THE TAXABLE PROPERTY TO ATTRIBUTE TO AN ELECTRIC 6,731
COMPANY OR A RURAL ELECTRIC COMPANY ACTIVITY SHALL BE THE TAXABLE 6,732
COST OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED TO A 6,733
LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED BY A NUMERATOR 6,734
THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE DIRECTLY 6,735
ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A RURAL 6,736
ELECTRIC COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE 6,737
COST THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES 6,738
OF A COMBINED COMPANY. 6,739
(2) THE TAXABLE PROPERTY TO ATTRIBUTE TO A HEATING COMPANY 6,741
SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE DIRECTLY 6,742
ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED 6,743
BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE 6,744
DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A HEATING COMPANY AND A 6,745
DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST THAT CAN BE 6,746
DIRECTLY ATTRIBUTED TO ALL LISTED ACTIVITIES OF A COMBINED 6,747
COMPANY.
(3) THE TAXABLE PROPERTY TO ATTRIBUTE TO A NATURAL GAS 6,749
COMPANY SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE 6,750
DIRECTLY ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY 6,751
MULTIPLIED BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY 6,752
THAT CAN BE DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A NATURAL GAS 6,753
COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST 6,754
THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES OF A 6,755
161
COMBINED COMPANY. 6,756
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THE REVISED 6,758
CODE, A COMBINED COMPANY SHALL CONTINUE TO BE SUBJECT TO THE 6,759
EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE. FROM 6,760
THE REPORT FILED BY A COMBINED COMPANY UNDER SECTION 5727.31 OF 6,761
THE REVISED CODE, THE TAX COMMISSIONER SHALL EXCLUDE THE TAXABLE 6,763
GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO THE ACTIVITY OF AN 6,764
ELECTRIC COMPANY OR A RURAL ELECTRIC COMPANY. IN ADDITION, THE 6,765
TAX COMMISSIONER SHALL EXCLUDE THE PORTION OF TAXABLE GROSS 6,766
RECEIPTS THAT CANNOT BE ATTRIBUTED TO A LISTED COMBINED PUBLIC 6,767
UTILITY ACTIVITY OR ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO 6,768
THE EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE BY 6,769
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 6,770
THAT IS THE SUM OF THE TAXABLE GROSS RECEIPTS THAT CAN BE 6,771
DIRECTLY ATTRIBUTED TO A LISTED COMBINED COMPANY ACTIVITY OR 6,772
ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO THE EXCISE TAX IMPOSED 6,773
BY SECTION 5727.30 OF THE REVISED CODE. FOR PURPOSES OF 6,774
DETERMINING THE TAXABLE GROSS RECEIPTS FOR PROVIDING ELECTRIC 6,775
COMPANY OR RURAL ELECTRIC COMPANY SERVICE UNDER THIS DIVISION, 6,776
THE TAXABLE GROSS RECEIPTS AS REPORTED UNDER SECTION 5727.32 OF 6,777
THE REVISED CODE AND DETERMINED UNDER SECTION 5727.33 OF THE 6,778
REVISED CODE, PRIOR TO THE AMENDMENT OF THOSE SECTIONS BY 6,779
SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd GENERAL ASSEMBLY, SHALL 6,783
BE USED.
Sec. 5727.05. This chapter does SECTIONS 5727.01 TO 6,792
5727.61 OF THE REVISED CODE DO not apply to either of the 6,793
following:
(A) Nonprofit corporations as defined in division (C) of 6,795
section 1702.01 of the Revised Code that are engaged exclusively 6,796
in the treatment, distribution, and sale of water to consumers; 6,797
(B) Municipal corporations within this state. 6,799
Sec. 5727.06. (A) Except as otherwise provided by law, 6,808
162
the following constitutes the taxable property of a public 6,809
utility or interexchange telecommunications company that shall be 6,810
assessed by the tax commissioner: 6,811
(1) In the case of a railroad company, all real property 6,813
and tangible personal property owned or operated by the railroad 6,814
company in this state on the thirty-first day of December of the 6,815
preceding year; 6,816
(2) In the case of a water transportation company, all 6,818
tangible personal property, except watercraft, owned or operated 6,819
by the water transportation company in this state on the 6,820
thirty-first day of December of the preceding year and all 6,821
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year; 6,822
(3) In the case of all other public utilities and 6,824
interexchange telecommunications companies, all tangible personal 6,825
property that on the thirty-first day of December of the 6,826
preceding year was both located in this state and: 6,827
(a) Owned by the public utility or interexchange 6,829
telecommunications company; or 6,830
(b) Leased by the public utility or interexchange 6,832
telecommunications company under a sale and leaseback 6,833
transaction. 6,834
(B) In the case of an interexchange telecommunications 6,836
company, all taxable property shall be subject to the provisions 6,837
of this chapter and shall be valued by the commissioner in 6,838
accordance with division (B)(A) of section 5727.11 of the Revised 6,840
Code and assessed by the commissioner in accordance with division 6,841
(G) of section 5727.111 of the Revised Code. A person described 6,843
by this division shall file the report required by section 6,844
5727.08 of the Revised Code. Persons described in this division 6,845
shall not be considered taxpayers, as defined in division (B) of 6,846
section 5711.01 of the Revised Code, and shall not be required to 6,847
file a return and list their taxable property under any provision 6,848
of Chapter 5711. of the Revised Code. 6,849
163
(C) The lien of the state for taxes levied each year on 6,851
the real and personal property of public utilities and 6,852
interexchange telecommunications companies shall attach thereto 6,853
on the thirty-first day of December of the preceding year. 6,854
(D) Property that is required by division (A)(3)(b) of 6,856
this section to be assessed by the tax commissioner under this 6,857
chapter shall not be listed by the owner of the property under 6,858
Chapter 5711. of the Revised Code. 6,859
(E) The tax commissioner may adopt rules governing the 6,861
listing of the taxable property of public utilities and 6,862
interexchange telecommunications companies and the determination 6,863
of true value. 6,864
Sec. 5727.11. (A) As used in this section, section 6,873
5727.111, and division (C) of section 5727.15 of the Revised 6,874
Code, "production equipment" means all taxable steam, nuclear, 6,875
hydraulic, and other production plant equipment, and all taxable 6,876
station equipment that is located at a production plant. 6,877
(B) Except as OTHERWISE provided in divisions (C), (D), 6,879
(E), and (G) of this section, the true value of all taxable 6,881
property required by division (A)(2) or (3) of section 5727.06 of 6,883
the Revised Code to be assessed by the tax commissioner shall be 6,884
determined by a method of valuation using cost as capitalized on 6,885
the public utility's books and records less composite annual 6,886
allowances as prescribed by the commissioner. If the 6,887
commissioner finds that application of this method will not 6,888
result in the determination of true value of the public utility's 6,889
taxable property, he THE COMMISSIONER may use another method of 6,891
valuation. The cost of property subject to a sale and leaseback 6,892
transaction is the cost of the property as capitalized on the 6,893
books and records of the public utility owning the property 6,894
immediately prior to the sale and leaseback transaction.
(C)(B) The true value of current gas stored underground is 6,896
the cost of that gas shown on the books and records of the public 6,897
utility on the thirty-first day of December of the preceding 6,898
164
year. 6,899
(D)(C) The true value of noncurrent gas stored underground 6,901
is thirty-five per cent of the cost of that gas shown on the 6,902
books and records of the public utility on the thirty-first day 6,903
of December of the preceding year. 6,904
(E) The (D)(1) EXCEPT AS PROVIDED IN DIVISION (D)(2) OF 6,907
THIS SECTION, THE true value of the production equipment of an 6,908
electric company and the true value of all taxable property of a 6,909
rural electric company is the equipment's or property's cost as 6,910
capitalized on the company's books and records less fifty per 6,911
cent of that cost as an allowance for depreciation and 6,912
obsolescence. The cost of equipment or property subject to a 6,913
sale and leaseback transaction is the cost of the property as 6,914
capitalized on the books and records of the public utility owning 6,915
the equipment or property immediately prior to the sale and 6,916
leaseback transaction. 6,917
(2) THE TRUE VALUE OF THE PRODUCTION EQUIPMENT OF AN 6,919
ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY PURCHASED, 6,920
TRANSFERRED, OR PLACED INTO SERVICE AFTER THE EFFECTIVE DATE OF 6,922
THIS AMENDMENT IS THE PURCHASE PRICE OF THE EQUIPMENT AS 6,923
CAPITALIZED ON THE COMPANY'S BOOKS AND RECORDS LESS COMPOSITE 6,924
ANNUAL ALLOWANCES AS PRESCRIBED BY THE TAX COMMISSIONER. 6,925
(F)(E) The true value of taxable property described in 6,927
division (A)(2) or (3) of section 5727.06 of the Revised Code 6,928
shall not include the allowance for funds used during 6,929
construction or interest during construction which THAT has been 6,930
capitalized on the public utility's books and records as part of 6,932
the total cost of the taxable property. THIS DIVISION SHALL NOT 6,933
APPLY TO THE TAXABLE PROPERTY OF AN ELECTRIC COMPANY OR A RURAL 6,934
ELECTRIC COMPANY, EXCLUDING TRANSMISSION AND DISTRIBUTION 6,935
PROPERTY, FIRST PLACED INTO SERVICE AFTER DECEMBER 31, 2000, OR 6,936
TO THE TAXABLE PROPERTY A PERSON PURCHASES, WHICH INCLUDES 6,937
TRANSFERS, IF THAT PROPERTY WAS USED IN BUSINESS BY THE SELLER
PRIOR TO THE PURCHASE. 6,938
165
(G)(F) The true value of watercraft owned or operated by a 6,940
water transportation company shall be determined by multiplying 6,942
the true value of the watercraft as determined under division 6,943
(B)(A) of this section by a fraction, the numerator of which is 6,945
the number of revenue-earning miles traveled by the watercraft in
the waters of this state and the denominator of which is the 6,946
number of revenue-earning miles traveled by the watercraft in all 6,947
waters.
(G) THE COST OF PROPERTY SUBJECT TO A SALE AND LEASEBACK 6,949
TRANSACTION IS THE COST OF THE PROPERTY AS CAPITALIZED ON THE 6,950
BOOKS AND RECORDS OF THE PUBLIC UTILITY OWNING THE PROPERTY 6,952
IMMEDIATELY PRIOR TO THE SALE AND LEASEBACK TRANSACTION.
(H) THE DETERMINATION OF COST AS CAPITALIZED ON THE BOOKS 6,954
AND RECORDS OF A PUBLIC UTILITY INCLUDES, BUT IS NOT LIMITED TO, 6,955
ANY REGULATORY ASSETS ASSOCIATED WITH TAXABLE PERSONAL PROPERTY, 6,957
THE COST OF WHICH THE PUBLIC UTILITY IS ALLOWED AN OPPORTUNITY TO 6,959
RECOVER FROM ITS CUSTOMERS.
Sec. 5727.111. The taxable property of each public 6,968
utility, except a railroad company, and of each interexchange 6,969
telecommunications company shall be assessed at the following 6,970
percentages of true value: 6,971
(A) Fifty per cent in the case OF THE TAXABLE TRANSMISSION 6,973
AND DISTRIBUTION PROPERTY of a rural electric company, AND 6,975
TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE PROPERTY; 6,976
(B) In the case of a telephone or telegraph company, the 6,979
percentage provided under division (E) of section 5711.22 of the 6,980
Revised Code TWENTY-FIVE PER CENT for taxable property first 6,982
subject to taxation in this state for tax year 1995 or 6,983
thereafter, and eighty-eight per cent for all other taxable
property;
(C) Eighty-eight per cent in the case of a natural gas or 6,985
pipe-line company; 6,986
(D) Eighty-eight per cent in the case of a water-works or 6,988
heating company; 6,989
166
(E) One hundred per cent in the case of the taxable 6,991
production equipment of an electric company; 6,992
(F) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION 6,995
(E)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of all 6,996
taxable personal THE TAXABLE TRANSMISSION AND DISTRIBUTION 6,997
property of an electric company, other than its production 6,999
equipment AND TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE
PROPERTY; 7,000
(2) PROPERTY LISTED AND ASSESSED UNDER DIVISIONS (B)(1) 7,002
AND (2) OF SECTION 5711.22 OF THE REVISED CODE SHALL CONTINUE TO 7,004
BE ASSESSED AT ONE HUNDRED PER CENT FOR PRODUCTION EQUIPMENT AND
EIGHTY-EIGHT PER CENT FOR ALL OTHER TAXABLE PROPERTY UNTIL 7,005
JANUARY 1, 2002. 7,006
(G) The percentage provided under division (E) of section 7,009
5711.22 of the Revised Code (F) TWENTY-FIVE PER CENT in the case 7,010
of an interexchange telecommunications company; 7,012
(H)(G) Twenty-five per cent in the case of a water 7,014
transportation company. 7,015
Sec. 5727.15. When all the taxable property of a public 7,024
utility is located in one taxing district, the tax commissioner 7,025
shall apportion the total taxable value thereof to that taxing 7,026
district. 7,027
When taxable property of a public utility is located in 7,029
more than one taxing district, the commissioner shall apportion 7,030
the total taxable value thereof among the taxing districts as 7,031
follows: 7,032
(A)(1) In the case of a telegraph, interexchange 7,034
telecommunications, or telephone company that owns miles of wire 7,035
in this state, the value apportioned to each taxing district 7,037
shall be the same percentage of the total value apportioned to 7,038
all taxing districts as the miles of wire owned by the company 7,039
within the taxing district are to the total miles of wire owned 7,040
by the company within this state;
(2) In the case of a telegraph, interexchange 7,042
167
telecommunications, or telephone company that does not own miles 7,043
of wire in this state, the value apportioned to each taxing 7,044
district shall be the same percentage of the total value 7,045
apportioned to all taxing districts as the cost of the taxable
property physically located in the taxing district is of the 7,046
total cost of all taxable property physically located in this 7,047
state.
(B) In the case of a railroad company: 7,049
(1) The taxable value of real and personal property not 7,051
used in railroad operations shall be apportioned according to its 7,052
situs; 7,053
(2) The taxable value of personal property used in 7,055
railroad operations shall be apportioned to each taxing district 7,056
in proportion to the miles of track and trackage rights, weighted 7,057
to reflect the relative use of such personal property in each 7,058
taxing district; 7,059
(3) The taxable value of real property used in railroad 7,061
operations shall be apportioned to each taxing district in 7,062
proportion to its relative value in each taxing district. 7,063
(C) In the case of an electric company: 7,065
(1) Seventy per cent of the THE TAXABLE value of all 7,067
production equipment and of all station equipment that is not 7,068
production equipment shall be apportioned to the taxing district 7,069
in which such property is physically located; and 7,070
(2) The remaining value of such property, together with 7,072
the value of all other taxable PERSONAL property, shall be 7,073
apportioned to each taxing district in the per cent PROPORTION 7,075
that the cost of all transmission and distribution THE TAXABLE 7,077
PERSONAL property physically located in the EACH taxing district 7,079
is of the total cost of all transmission and distribution TAXABLE 7,080
PERSONAL property physically located in this state. 7,081
(3) If an electric company's taxable value for the current 7,083
year includes the value of any production equipment at a plant at 7,084
which the initial cost of the plant's production equipment 7,085
168
exceeded one billion dollars, then prior to making the 7,086
apportionments required for that company by divisions (C)(1) and 7,087
(2) of this section, the tax commissioner shall do the following: 7,088
(a) Subtract four hundred twenty million dollars from the 7,090
total taxable value of the production equipment at that plant for 7,091
the current tax year. 7,092
(b) Multiply the difference thus obtained by a fraction, 7,094
the numerator of which is the portion of the taxable value of 7,095
that plant's production equipment included in the company's total 7,096
value for the current tax year, and the denominator of which is 7,097
the total taxable value of such equipment included in the total 7,098
taxable value of all electric companies for such year. 7,099
(c) Apportion the product thus obtained to taxing 7,101
districts in the manner prescribed in division (C)(2) of this 7,102
section. 7,103
(d) Deduct the amounts so apportioned from the taxable 7,105
value of the company's production equipment at the plant, prior 7,106
to making the apportionments required by divisions (C)(1) and (2) 7,107
of this section. 7,108
For purposes of division (C) of this section, "initial 7,110
cost" applies only to production equipment of plants placed in 7,111
commercial operation on or after January 1, 1987, and means the 7,112
cost of all production equipment at a plant for the first year 7,113
the plant's equipment was subject to taxation. 7,114
(D) In the case of all other public utilities, the value 7,116
of the property to be apportioned shall be apportioned to each 7,117
taxing district in proportion to the entire value of such 7,118
property within this state. 7,119
Sec. 5727.30. Each public utility, except ELECTRIC 7,128
COMPANIES, RURAL ELECTRIC COMPANIES, AND railroad companies, 7,129
shall be subject to an annual excise tax, as provided by sections 7,131
5727.31 to 5727.62 of the Revised Code, for the privilege of 7,132
owning property in this state or doing business in this state 7,133
during the twelve-month period next succeeding the period upon 7,134
169
which the tax is based. The tax shall be imposed against each
such public utility which THAT, on the first day of such 7,136
twelve-month period, owns property in this state or is doing 7,138
business in this state, and the lien for the tax, including any 7,140
penalties and interest accruing thereon, shall attach on such day 7,141
to the property of the public utility in this state.
Sec. 5727.31. (A) Each public utility, except railroad 7,150
companies, doing business or owning property in this state shall 7,151
SUBJECT TO THE TAX IMPOSED UNDER SECTION 5727.30 OF THE REVISED 7,152
CODE, annually, on or before the first day of August, SHALL file 7,153
with the tax commissioner a statement in such form as the 7,154
commissioner prescribes. 7,155
(B)(1) Annually, on or before the fifteenth day of October 7,157
of the current year, each public utility subject to the excise 7,158
taxes levied by this chapter whose estimated excise taxes for the 7,159
current year as based upon the statement required to be filed in 7,160
that year by division (A) of this section are, in the case of a 7,161
public utility other than a natural gas company, one thousand 7,162
dollars or more, or are, in the case of a natural gas company, 7,163
three hundred twenty-five thousand dollars or more, shall file 7,164
with the treasurer of state a report, in such form as the tax 7,165
commissioner prescribes, showing the amount of excise tax 7,166
estimated to be charged or levied pursuant to law for the current 7,167
year upon the basis of such annual statement, and shall remit a 7,168
portion of the estimated excise taxes shown to be due by the 7,169
report. The portion of the estimated excise taxes due at the 7,170
time the report is filed shall be one-third of its total excise 7,171
taxes estimated to be charged or levied for the current year 7,172
based upon the annual statement filed under division (A) of this 7,173
section. 7,174
(2) Annually, on or before the first day of March and 7,176
June, each public utility subject to the excise taxes levied by 7,177
this chapter whose excise taxes as based upon its last preceding 7,178
annual statement filed under division (A) of this section prior 7,179
170
to the first day of January were, in the case of a public utility 7,180
other than a natural gas company, one thousand dollars or more, 7,181
or were, in the case of a natural gas company, three hundred 7,182
twenty-five thousand dollars or more, shall file with the 7,183
treasurer of state a report, in such form as the tax commissioner 7,184
prescribes, showing the amount of excise tax charged or levied 7,185
pursuant to law upon the basis of such annual statement, and 7,186
shall remit a portion of the excise taxes shown to be due by each 7,187
such report. The portion of the excise taxes due at the time 7,188
each such report is filed shall be one-third of its total excise 7,189
taxes so charged or levied based upon such annual statement. 7,190
(C) Any public utility subject to the excise taxes imposed 7,192
by this chapter SECTION 5727.30 OF THE REVISED CODE whose tax as 7,194
certified under section 5727.38 of the Revised Code in a year 7,195
equals or exceeds the amount specified for that year in section 7,196
5727.311 of the Revised Code shall make the payments required 7,197
under this section in the second ensuing and each succeeding year 7,198
in the manner prescribed by section 5727.311 of the Revised Code, 7,199
except as otherwise prescribed by that section. 7,200
(D)(1) For purposes of this section, a report required to 7,202
be filed under division (B) of this section is considered filed 7,203
when it is received by the treasurer of state. 7,204
(2) For purposes of this section and sections 5727.311 and 7,206
5727.42 of the Revised Code, remittance of an excise tax required 7,207
to be made under this section is considered to be made when the 7,208
remittance is received by the treasurer of state, or when 7,209
credited to an account designated by the treasurer of state for 7,210
the receipt of tax remittances. 7,211
Sec. 5727.311. (A) Any public utility subject to an 7,220
excise tax imposed by this chapter SECTION 5727.30 OF THE REVISED 7,221
CODE whose tax as certified by the tax commissioner under section 7,223
5727.38 of the Revised Code in the year indicated in the 7,224
following schedule equals or exceeds the amount indicated for 7,225
that year in the schedule FIFTY THOUSAND DOLLARS shall make each 7,227
171
payment required under division (B) of section 5727.31 of the 7,228
Revised Code for the second ensuing and each succeeding year by 7,229
electronic funds transfer as prescribed by division (B) of this 7,230
section. Year for which 7,231
tax was certified 1992 1993 and 7,232
thereafter
Amount of tax $100,000 $50,000 7,233
certified
If the tax certified by the tax commissioner in each of two 7,235
consecutive years beginning with 1993 is less than fifty thousand 7,236
dollars, the public utility is relieved of the requirement to 7,237
remit taxes by electronic funds transfer for the year that next 7,238
follows the second of the consecutive years in which the tax 7,239
certified is less than fifty thousand dollars, and is relieved of 7,240
that requirement for each succeeding year unless the tax 7,241
certified in a subsequent year equals or exceeds fifty thousand 7,242
dollars. The tax commissioner shall notify each public utility 7,243
required to remit taxes by electronic funds transfer of the 7,244
public utility's obligation to do so, shall maintain an updated 7,245
list of those public utilities, and shall timely certify the list 7,246
and any additions thereto or deletions therefrom to the treasurer 7,247
of state. Failure by the tax commissioner to notify a public 7,248
utility subject to this section to remit taxes by electronic 7,249
funds transfer does not relieve the public utility of its 7,250
obligation to remit taxes by electronic funds transfer. 7,251
(B) Public utilities required by this section to remit 7,253
periodic payments by electronic funds transfer shall remit such 7,254
payments to the treasurer of state in the manner prescribed by 7,255
rules adopted by the treasurer OF STATE under section 113.061 of 7,256
the Revised Code. The payment of public utility excise taxes by 7,257
electronic funds transfer does not affect a public utility's 7,258
obligation to file the annual statement and periodic reports in 7,259
the manner and at the times prescribed by section 5727.31 of the 7,260
172
Revised Code. 7,261
A public utility required by this section to remit taxes by 7,263
electronic funds transfer may apply to the treasurer of state in 7,264
the manner prescribed by the treasurer OF STATE to be excused 7,265
from that requirement. The treasurer of state may excuse the 7,266
public utility from remittance by electronic funds transfer for 7,267
good cause shown for the period of time requested by the public 7,268
utility or for a portion of that period. The treasurer OF STATE 7,269
shall notify the tax commissioner and the public utility of the 7,270
treasurer's TREASURER OF STATE'S decision as soon as is 7,271
practicable. 7,272
(C) If a public utility required by this section to remit 7,274
taxes by electronic funds transfer remits those taxes by some 7,275
means other than by electronic funds transfer as prescribed by 7,276
this section and the rules adopted by the treasurer of state, and 7,277
the treasurer OF STATE determines that the failure to remit taxes 7,278
as required was not due to reasonable cause or was due to willful 7,279
neglect, the treasurer OF STATE may impose an additional charge 7,280
on the public utility equal to five per cent of the amount of the 7,281
taxes required to be paid by electronic funds transfer, but not 7,282
to exceed five thousand dollars. Any additional charge imposed 7,283
under this section is in addition to any other penalty or charge 7,284
imposed under this chapter, and shall be considered as revenue 7,285
arising from excise taxes imposed by this chapter. 7,286
No additional charge shall be assessed under this division 7,288
against a public utility that has been notified of its obligation 7,289
to remit taxes under this section and that remits its first two 7,290
tax payments after such notification by some means other than 7,291
electronic funds transfer. The additional charge may be assessed 7,292
upon the remittance of any subsequent tax payment that the public 7,293
utility remits by some means other than electronic funds 7,294
transfer. 7,295
Sec. 5727.32. The statement required by section 5727.31 of 7,304
the Revised Code for the purpose of the public utility excise tax 7,305
173
shall contain: 7,306
(A) The name of the company; 7,308
(B) The nature of the company, whether a person, 7,310
association, or corporation, and under the laws of what state or 7,311
country organized; 7,312
(C) The location of its principal office; 7,314
(D) The name and post-office address of the president, 7,316
secretary, auditor, treasurer, and superintendent or general 7,317
manager; 7,318
(E) The name and post-office address of the chief officer 7,320
or managing agent of the company in this state; 7,321
(F) The amount of the excise taxes paid or to be paid with 7,323
the reports made during the current calendar year as provided by 7,324
section 5727.31 of the Revised Code; 7,325
(G) In the case of telegraph and telephone companies: 7,327
(1) The gross receipts from all sources, whether messages, 7,329
telephone tolls, rentals, or otherwise, for business done within 7,330
this state, including all sums earned or charged, whether 7,331
actually received or not, for the year ending on the thirtieth 7,332
day of June, and the company's proportion of gross receipts for 7,333
business done by it within this state in connection with other 7,334
companies, firms, corporations, persons, or associations, but 7,335
excluding all of the following: 7,336
(a) All of the receipts derived wholly from interstate 7,338
business or business done for or with the federal government; 7,339
(b) The receipts of amounts billed on behalf of other 7,341
entities; 7,342
(c) The receipts from sales to other telephone companies 7,344
for resale; 7,345
(d) For the year ending June 30, 1990, and each subsequent 7,347
year, receipts RECEIPTS from sales to providers of 7,348
telecommunications service for resale, receipts from incoming or 7,350
outgoing wide area transmission service or wide area transmission 7,351
type service, including eight hundred or eight-hundred-type 7,352
174
service, and receipts from private communications service. 7,353
As used in this division, "receipts from sales to other 7,355
telephone companies for resale" and "receipts from sales to 7,356
providers of telecommunications service for resale" include, but 7,357
are not limited to, receipts of carrier access charges. "Carrier 7,358
access charges" means compensation paid to the taxpayer telephone 7,359
company by another telephone company or by a provider of 7,360
telecommunications service for the use of the taxpayer's 7,361
facilities to originate or terminate telephone calls or 7,362
telecommunications service. 7,363
(2) The total gross receipts for such period from business 7,365
done within this state. 7,366
(H) In the case of all public utilities, except ELECTRIC 7,368
COMPANIES, RURAL ELECTRIC COMPANIES, telegraph COMPANIES, and 7,370
telephone companies:
(1) The gross receipts of the company, actually received, 7,372
from all sources for business done within this state for the year 7,373
next preceding the first day of May, including the company's 7,374
proportion of gross receipts for business done by it within this 7,375
state in connection with other companies, firms, corporations, 7,376
persons, or associations, but excluding all of the following: 7,377
(a) Receipts from interstate business or business done for 7,379
the federal government; 7,380
(b) Receipts from sales to other public utilities for 7,382
resale, provided such other public utility is required to file a 7,383
statement pursuant to section 5727.31 of the Revised Code; 7,384
(c) For the year ending April 30, 1990, and each 7,386
subsequent year, receipts from the transmission or delivery of 7,387
electricity to or for a rural electric company, provided that the 7,388
electricity that has been so transmitted or delivered is for 7,389
resale by the rural electric company; 7,390
(d) Receipts of an electric company, derived from the 7,392
provision of electricity and other services to a qualified former 7,393
owner of the production facilities which generated the 7,394
175
electricity from which those receipts were derived. As used in 7,395
this division, a "qualified former owner" means a person who 7,396
meets both of the following conditions: 7,397
(i) On or before October 11, 1991, the person had sold to 7,399
an electric company part of the production facility at which the 7,400
electricity is generated, and, for at least twenty years prior to 7,401
that sale, the facility was used to generate electricity, but it 7,402
was not owned in whole or in part during that period by an 7,403
electric company. 7,404
(ii) At the time the electric company provided the 7,406
electricity or other services for which the exclusion is claimed, 7,407
the person, or a successor or assign of the person, owned not 7,408
less than a twenty per cent ownership of the production facility 7,409
and the rights to not less than twenty per cent of the production 7,410
of that facility; and the person, or a successor or assign of the 7,411
person, engaged primarily in a business other than providing 7,412
electricity to others. 7,413
(e) Receipts of a natural gas company of amounts billed on 7,415
behalf of other entities. Transportation and billing and 7,416
collection fees charged to other entities shall be included in 7,417
the gross receipts of a natural gas company. 7,418
(2) The total gross receipts of such company for such 7,420
period in this state from business done within the state. 7,421
The reports required by section 5727.31 of the Revised Code 7,423
shall contain: 7,424
(a) The name and principal mailing address of the company; 7,426
(b) The total amount of the gross receipts excise taxes 7,428
charged or levied as based upon its last preceding annual 7,429
statement filed prior to the first day of January of the year in 7,430
which such report is filed; 7,431
(c) The amount of the excise taxes due with the report as 7,433
provided by section 5727.31 of the Revised Code. 7,434
Sec. 5727.33. (A) For the purpose of computing the public 7,443
utility excise tax, the tax commissioner shall ascertain and 7,444
176
determine the entire gross receipts actually received from all 7,445
sources, excluding the receipts described in divisions (B), (C), 7,446
AND (D), and (E) of this section, of each electric, rural 7,447
electric, natural gas, pipe-line, water-works, heating, and water 7,448
transportation company for business done within this state for 7,449
the year ending on the thirtieth day of April, and of each 7,450
telegraph and telephone company for business done within this 7,451
state for the year ending on the thirtieth day of June. 7,452
(B) In ascertaining and determining the gross receipts of 7,454
each of the companies named in this section, the commissioner 7,455
shall exclude all of the following: 7,456
(1) All receipts derived wholly from interstate business; 7,458
(2) All receipts derived wholly from business done for or 7,460
with the federal government; 7,461
(3) For the year ending April 30, 1990, and each 7,463
subsequent year, all receipts derived wholly from the 7,464
transmission or delivery of electricity to or for a rural 7,465
electric company, provided that the electricity that has been so 7,466
transmitted or delivered is for resale by the rural electric 7,467
company; 7,468
(4) All receipts from the sale of merchandise; 7,470
(5)(4) All receipts from sales to other public utilities, 7,472
except railroad, telegraph, and telephone companies, for resale, 7,473
provided the other public utility is required to file a statement 7,474
pursuant to section 5727.31 of the Revised Code. 7,475
(C) In ascertaining and determining the gross receipts of 7,477
a telephone company, the commissioner shall exclude all of the 7,479
following: 7,480
(1) For the year ending June 30, 1988, and each subsequent 7,482
year, receipts RECEIPTS of amounts billed on behalf of other 7,483
entities; 7,484
(2) For the year ending June 30, 1988, and each subsequent 7,486
year, receipts RECEIPTS from sales to other telephone companies 7,487
for resale, as defined in division (G) of section 5727.32 of the 7,488
177
Revised Code; 7,489
(3) For the year ending June 30, 1990, and each subsequent 7,491
year, receipts RECEIPTS from incoming or outgoing wide area 7,492
transmission service or wide area transmission type service, 7,494
including eight hundred or eight-hundred-type service; 7,495
(4) For the year ending June 30, 1990, and each subsequent 7,497
year, receipts RECEIPTS from private communications service as 7,498
described in division (AA)(2) of section 5739.01 of the Revised 7,500
Code;
(5) For the year ending June 30, 1990, and each subsequent 7,502
year, receipts RECEIPTS from sales to providers of 7,503
telecommunications service for resale, as defined in division (G) 7,505
of section 5727.32 of the Revised Code. 7,506
(D) In ascertaining and determining the gross receipts of 7,508
an electric company, the commissioner shall exclude receipts 7,509
derived from the provision of electricity and other services to a 7,510
qualified former owner of the production facilities which 7,511
generated the electricity from which those receipts were derived. 7,512
As used in this division, a "qualified former owner" means a 7,513
person who meets both of the following conditions: 7,514
(1) On or before October 11, 1991, the person had sold to 7,516
an electric company part of the production facility at which the 7,517
electricity is generated, and, for at least twenty years prior to 7,518
that sale, the facility was used to generate electricity, but it 7,519
was not owned in whole or in part during that period by an 7,520
electric company. 7,521
(2) At the time the electric company provided the 7,523
electricity or other services for which the exclusion is claimed, 7,524
the person, or a successor or assign of the person, owned not 7,525
less than a twenty per cent ownership of the production facility 7,526
and the rights to not less than twenty per cent of the production 7,527
of that facility. 7,528
(E) In ascertaining and determining the gross receipts of 7,530
a natural gas company, the commissioner shall exclude receipts of 7,531
178
amounts billed on behalf of other entities. Transportation and 7,532
billing and collection fees charged to other entities shall be 7,533
included in the gross receipts of a natural gas company. 7,534
The amount ascertained by the commissioner under this 7,536
section, less a deduction of twenty-five thousand dollars, shall 7,537
be the gross receipts of such companies for business done within 7,538
this state for that year. 7,539
Sec. 5727.38. On or before the first Monday of November, 7,548
annually, the tax commissioner shall assess an excise tax against 7,549
each public utility except railroad companies SUBJECT TO THE 7,550
EXCISE TAX UNDER SECTION 5727.30 OF THE REVISED CODE. The tax 7,551
shall be computed by multiplying the gross receipts as determined 7,553
by the commissioner under section 5727.33 of the Revised Code by 7,555
six and three-fourths per cent in the case of pipe-line companies
and four and three-fourths per cent in the case of all other 7,556
companies. The minimum tax for any such company for owning 7,557
property or doing business in this state shall be ten FIFTY 7,558
dollars. The assessment shall be certified to the taxpayer and 7,560
treasurer of state.
Sec. 5727.42. (A) The treasurer of state shall maintain a 7,569
list of all excise taxes levied and payments made pursuant to 7,570
this chapter THE ANNUAL EXCISE TAX IMPOSED BY SECTION 5727.30 OF 7,572
THE REVISED CODE. The treasurer of state shall collect and the 7,573
taxpayer shall pay all taxes and any penalties thereon. Payments 7,574
may be made by mail, in person, by electronic funds transfer if 7,575
required to do so by section 5727.311 of the Revised Code, or by 7,576
any other means authorized by the treasurer of state. The 7,577
treasurer of state may adopt rules concerning the methods and 7,578
timeliness of payment. 7,579
(B) Each tax bill issued pursuant to this section shall 7,581
separately reflect the taxes due, due date, and any other 7,582
information considered necessary. Except as otherwise provided 7,583
in division (F) of this section, the last day on which payment 7,584
may be made without penalty shall be at least twenty but not more 7,585
179
than thirty days from the date of mailing the tax bill. The 7,586
treasurer of state shall mail the tax bill, and the mailing 7,587
thereof shall be prima-facie evidence of receipt thereof by the 7,588
taxpayer. 7,589
(C) The treasurer of state shall refund taxes as provided 7,591
in this section, but no refund shall be made to a taxpayer having 7,592
a delinquent claim certified pursuant to this section that 7,593
remains unpaid. The treasurer of state may consult the attorney 7,594
general regarding such claims. 7,595
(D) Within twenty days after receipt of any excise tax 7,597
assessment certified to him THE TREASURER OF STATE, the treasurer 7,599
of state shall:
(1) Ascertain the difference between the total taxes shown 7,601
on such assessment and the sum of all advance ESTIMATED payments, 7,603
exclusive of any penalties thereon, previously made for that 7,604
year.
(2) If the difference is a deficiency, the treasurer of 7,606
state shall issue a tax bill. 7,607
(3) If the difference is an excess, the treasurer of state 7,609
shall certify the name of the taxpayer and the amount to be 7,610
refunded to the director of budget and management for payment to 7,611
the taxpayer. 7,612
If the taxpayer has a deficiency for one tax year and an 7,614
excess for another tax year, or any combination thereof for more 7,615
than two years, the treasurer of state may determine the net 7,616
result and, depending on such result, proceed to mail a tax bill 7,617
or certify a refund. 7,618
(E) If a taxpayer fails to pay all taxes on or before the 7,620
due date shown on the tax bill, or fails to make an advance 7,621
ESTIMATED payment on or before the due date prescribed in 7,623
division (B) of section 5727.31 of the Revised Code, but makes 7,624
payment within ten calendar days of such date, the treasurer of 7,625
state shall add a penalty equal to five per cent of the amount 7,626
that should have been timely paid. If payment is not made within 7,627
180
ten days of such date, the treasurer of state shall add a penalty 7,628
equal to fifteen per cent of the amount that should have been 7,629
timely paid. The treasurer of state shall prepare a delinquent 7,630
claim for each tax bill on which penalties were added and certify 7,631
such claims to the attorney general and tax commissioner. The 7,632
attorney general shall proceed to collect the delinquent taxes 7,633
and penalties thereon in the manner prescribed by law and notify 7,634
the treasurer of state and tax commissioner of all collections. 7,635
(F) The last day on which a natural gas company that is 7,637
not required to make payments under division (B) of section 7,638
5727.31 of the Revised Code may pay its taxes without penalty 7,639
shall be the fifteenth day of March of the year following the 7,640
year in which the commissioner is required to certify his THE 7,641
assessment of the company's tax under section 5727.38 of the 7,642
Revised Code. The tax due date shall be reflected on the tax 7,643
bill. 7,644
Sec. 5727.45. Four and two-tenths per cent of all excise 7,653
taxes and penalties collected under sections 5727.01 to 5727.62 7,654
of the Revised Code shall be credited to the local government 7,655
fund for distribution in accordance with section 5747.50 of the 7,656
Revised Code, six-tenths of one per cent shall be credited to the 7,657
local government revenue assistance fund for distribution in 7,659
accordance with section 5747.61 of the Revised Code, and
ninety-five and two-tenths per cent shall be credited to the 7,660
general revenue fund. 7,661
On or before the first day of December, annually, the tax 7,663
commissioner shall certify to the treasurer of state the amounts 7,664
to be credited to the local government fund and local government 7,665
revenue assistance fund from the general revenue fund to ensure 7,666
that the sum of the amounts credited to the local government fund 7,667
and local government revenue assistance fund for the calendar 7,668
year equals the sum that would have been credited during that 7,669
year if the credit authorized by section 5727.391 of the Revised 7,670
Code did not exist. The treasurer shall credit any such 7,671
181
additional amounts to the two funds not later than the fifth day 7,672
of December, annually. 7,673
Sec. 5727.47. A copy of each assessment certified pursuant 7,686
to section 5727.23, 5727.231, or 5727.38 of the Revised Code 7,687
shall be mailed to the public utility, and its mailing shall be 7,688
prima-facie evidence of its receipt by the public utility to 7,689
which it is addressed. If a public utility objects to any 7,690
assessment certified to it pursuant to such sections, it may file 7,691
a petition for reassessment with the tax commissioner. The 7,692
petition must be made in writing, signed by the authorized agent 7,693
of the utility having knowledge of the facts, and filed with the 7,694
commissioner, in person or by certified mail, within thirty days 7,695
from the date that the assessment was mailed. If the petition is 7,696
filed by certified mail, the date of the United States postmark 7,697
placed on the sender's receipt by the postal employee to whom the 7,698
petition is presented shall be treated as the date of filing. A 7,699
true copy of the assessment objected to shall be attached to the 7,700
petition and shall be incorporated by reference into the 7,701
petition, but the failure to attach a copy of the assessment and 7,702
incorporate it by reference does not invalidate the petition. The 7,704
petition also shall indicate the utility's objections, but
additional objections may be raised in writing if received prior 7,705
to the date shown on the final determination by the commissioner. 7,706
Notwithstanding the fact that a petition has been filed, 7,708
the tax with respect to the assessment objected to shall be paid 7,709
as required by law. The acceptance of the tax payment by the 7,710
treasurer of state or any county treasurer shall not prejudice 7,711
any claim for taxes on final determination by the commissioner or 7,712
final decision by the board of tax appeals or any court. 7,713
Upon receipt of a properly filed petition, the commissioner 7,715
shall notify the treasurer of state or the auditor of each county 7,716
to which the assessment objected to has been certified. 7,717
Unless the petitioner waives a hearing, the commissioner 7,719
shall assign a time and place for the hearing on the petition and 7,720
182
notify the petitioner of the time and place of the hearing by 7,721
personal service or certified mail, but the commissioner may 7,722
continue the hearing from time to time if necessary. 7,723
The commissioner may make such correction to the assessment 7,725
as he THE COMMISSIONER finds proper. The commissioner shall 7,726
serve a copy of his THE COMMISSIONER'S final determination on the 7,728
petitioner by personal service or certified mail, and his THE 7,729
COMMISSIONER'S decision in the matter shall be final, subject to 7,731
appeal as provided in section 5717.02 of the Revised Code. The 7,732
commissioner also shall transmit a copy of his THE final 7,733
determination to the treasurer of state or applicable county 7,734
auditor. In the absence of any further appeal, or when a 7,735
decision of the board of tax appeals or of any court to which the 7,736
decision has been appealed becomes final, the commissioner shall 7,737
notify the public utility and, as appropriate, the treasurer of 7,738
state who shall proceed under section 5727.42 of the Revised 7,739
Code, or the applicable county auditor who shall proceed under 7,740
section 5727.471 of the Revised Code. The notification is not 7,741
subject to further appeal. 7,742
Sec. 5727.53. The taxes, fees, and penalties provided by 7,751
sections 5727.01 to 5727.62, inclusive, of the Revised Code, THIS 7,752
CHAPTER THAT ARE REMITTED TO THE TREASURER OF STATE may be 7,754
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 7,756
in which such public utility is doing business, or in which the 7,757
line of any street, suburban, or interurban railroad company or 7,758
railroad company is located, and such court of common pleas shall 7,759
have jurisdiction of such THE action regardless of the amount 7,760
involved. The attorney general, on request of the tax 7,761
commissioner, shall institute such action in the court of common 7,762
pleas of Franklin County COUNTY or of any of such counties the 7,763
commissioner directs. In any such action it shall be sufficient 7,764
to allege that the tax, fee, or penalty sought to be recovered 7,765
stands charged on the delinquent duplicate of the treasurer of 7,766
183
state, and that the same has been unpaid for a period of thirty 7,767
days after having been placed thereon. Sums recovered in any 7,768
such action shall be paid into the state treasury to the credit 7,769
of the general revenue fund IN THE SAME MANNER AS THE TAX. 7,770
Sec. 5727.60. If a public utility required to file a 7,779
report with the tax commissioner by sections 5727.02 to 5727.62, 7,780
inclusive, of the Revised Code, PERSON fails to make such FILE A 7,782
report, it shall be subject to a penalty of ten dollars per day 7,784
for each day's omission after the time limited for making such
report WITHIN THE TIME PRESCRIBED BY SECTION 5727.08 OR 5727.31 7,785
OF THE REVISED CODE, INCLUDING ANY EXTENSIONS OF TIME GRANTED BY 7,787
THE TAX COMMISSIONER, A PENALTY OF FIFTY DOLLARS PER MONTH, NOT 7,788
TO EXCEED FIVE HUNDRED DOLLARS, MAY BE IMPOSED FOR EACH MONTH OR 7,789
FRACTION OF A MONTH ELAPSING BETWEEN THE DUE DATE OF THE REPORT, 7,790
INCLUDING ANY EXTENSIONS, AND THE DATE THE REPORT WAS FILED. THE 7,791
PENALTY UNDER THIS SECTION FOR FAILING TO FILE A REPORT REQUIRED 7,792
BY SECTION 5727.08 OF THE REVISED CODE SHALL BE PAID INTO THE 7,793
STATE GENERAL REVENUE FUND. IF THE PENALTY IS NOT PAID WITHIN
FIFTEEN DAYS AFTER NOTICE OF THE PENALTY IS MAILED TO THE PERSON 7,794
WHO FAILED TO TIMELY FILE THE REPORT, THE TAX COMMISSIONER SHALL 7,795
CERTIFY THE PENALTY AS A CLAIM TO THE ATTORNEY GENERAL FOR 7,796
COLLECTION. THE PENALTY UNDER THIS SECTION FOR FAILING TO FILE 7,797
THE REPORT REQUIRED BY SECTION 5727.31 OF THE REVISED CODE SHALL 7,798
BE DEPOSITED INTO THE STATE TREASURY IN THE SAME MANNER AS THE 7,799
TAX IS DEPOSITED, AND THE COMMISSIONER MAY COLLECT THE PENALTY BY 7,801
ASSESSMENT PURSUANT TO SECTION 5727.38 OF THE REVISED CODE. THE 7,802
TAX COMMISSIONER MAY ABATE THIS PENALTY IN FULL OR IN PART. 7,803
Sec. 5727.61. Every public utility required by law to make 7,812
returns, statements, or reports to the tax commissioner UNDER 7,813
SECTIONS 5727.01 TO 5727.62 OF THE REVISED CODE shall file 7,815
therewith, in such form as the commissioner prescribes, an
affidavit subscribed and sworn to by a person or officer having 7,816
knowledge of the facts setting forth that such public utility has 7,817
not, during the preceding year, except as permitted by sections 7,818
184
3517.082, 3599.03, and 3599.031 of the Revised Code, directly or 7,819
indirectly paid, used or offered, consented, or agreed to pay or 7,820
use any of its money or property for or in aid of or opposition 7,821
to a political party, a candidate for election or nomination to 7,823
public office, or a political action committee, legislative 7,824
campaign fund, or organization that supports or opposes any such 7,825
candidate or in any manner used any of its money or property for 7,826
any partisan political purpose whatever, or for the reimbursement 7,827
or indemnification of any person for money or property so used. 7,828
Such forms of affidavit as the commissioner prescribes shall be 7,829
attached to or made a part of the return, statement, or report 7,830
required to be made by such public utility under sections 5727.01 7,831
to 5727.62 of the Revised Code. 7,832
Sec. 5727.72. No officer, employee, or agent of a 7,841
telegraph or telephone company PERSON SUBJECT TO THIS CHAPTER 7,842
shall refuse to attend before a lawful board of appraisers and 7,843
assessors THE DEPARTMENT OF TAXATION when required to do so, or 7,844
refuse to bring with him THE OFFICER, EMPLOYEE, OR AGENT and 7,846
submit for inspection any books or papers of such company PERSON 7,847
in his THE OFFICER'S, EMPLOYEE'S, OR AGENT'S possession, custody, 7,849
or control, or refuse to answer any questions put to him THE 7,850
OFFICER, EMPLOYEE, OR AGENT concerning the organization, 7,852
business, or property of such company PERSON.
Sec. 5727.80. AS USED IN SECTIONS 5727.80 TO 5727.95 OF 7,854
THE REVISED CODE: 7,856
(A) "ELECTRIC DISTRIBUTION COMPANY" MEANS EITHER OF THE 7,859
FOLLOWING:
(1) A PERSON WHO DISTRIBUTES ELECTRICITY THROUGH A METER 7,861
OF AN END USER IN THIS STATE; 7,862
(2) THE END USER OF ELECTRICITY IN THIS STATE, IF THE END 7,865
USER OBTAINS ELECTRICITY THAT IS NOT DISTRIBUTED OR TRANSMITTED 7,866
TO THE END USER BY AN ELECTRIC DISTRIBUTION COMPANY THAT IS 7,867
REQUIRED TO REMIT THE TAX IMPOSED BY SECTION 5727.81 OF THE 7,869
REVISED CODE. "ELECTRIC DISTRIBUTION COMPANY" DOES NOT INCLUDE 7,870
185
THE END USER OF ELECTRICITY IN THIS STATE WHO SELF-GENERATES 7,871
ELECTRICITY THAT IS USED DIRECTLY BY THAT END USER ON THE SAME 7,872
SITE THAT THE ELECTRICITY IS GENERATED. 7,873
(B) "KILOWATT HOUR" MEANS ONE THOUSAND WATT HOURS OF 7,875
ELECTRICITY. 7,876
(C) "METER OF AN END USER IN THIS STATE" MEANS THE LAST 7,879
METER USED TO MEASURE THE KILOWATT HOURS DISTRIBUTED BY AN 7,880
ELECTRIC DISTRIBUTION COMPANY TO A LOCATION IN THIS STATE, THE 7,881
LAST METER LOCATED OUTSIDE OF THIS STATE THAT IS USED TO MEASURE 7,882
THE KILOWATT HOURS CONSUMED AT A LOCATION IN THIS STATE, OR, IF 7,883
NO METER IS USED, THE ESTIMATED KILOWATT HOURS DISTRIBUTED TO AN 7,884
UNMETERED LOCATION IN THIS STATE.
(D) "PERSON" HAS THE SAME MEANING AS IN SECTION 5701.01 OF 7,886
THE REVISED CODE, BUT ALSO INCLUDES A POLITICAL SUBDIVISION OF 7,887
THE STATE. 7,888
(E) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 7,891
CORPORATION THAT OWNS OR OPERATES A SYSTEM FOR THE DISTRIBUTION 7,892
OF ELECTRICITY.
(F) "QUALIFIED END USER" MEANS AN END USER OF ELECTRICITY 7,894
THAT USES MORE THAN THREE MILLION KILOWATT HOURS OF ELECTRICITY 7,896
AT ONE MANUFACTURING LOCATION IN THIS STATE FOR A CALENDAR DAY 7,897
FOR USE IN A MANUFACTURING PROCESS THAT FEATURES AN
ELECTROCHEMICAL REACTION IN WHICH ELECTRONS FROM DIRECT CURRENT 7,899
ELECTRICITY REMAIN A PART OF THE PRODUCT BEING MANUFACTURED. 7,900
(G) "SELF-ASSESSING PURCHASER" MEANS A PURCHASER THAT 7,902
MEETS ALL THE REQUIREMENTS OF, AND PAYS THE EXCISE TAX IN 7,903
ACCORDANCE WITH, DIVISION (C) OF SECTION 5727.81 OF THE REVISED 7,904
CODE.
(H) "SIX MONTH REVENUE DIFFERENTIAL FOR SELF-ASSESSING 7,906
PURCHASERS" MEANS THIRTY-ONE MILLION SIX HUNDRED FIFTY THOUSAND 7,907
DOLLARS LESS THE AMOUNT PAID UNDER DIVISION (C)(1)(a) OF SECTION 7,909
5727.81 OF THE REVISED CODE BY ALL SELF-ASSESSING PURCHASERS FOR 7,911
THE SIX-MONTH PERIOD ENDING IN THE MONTH PRIOR TO THE DATE OF THE 7,913
CALCULATIONS REQUIRED UNDER DIVISIONS (C)(1)(b) AND (c) OF 7,914
186
SECTION 5727.81 OF THE REVISED CODE. 7,915
(I) "TWELVE MONTH REVENUE DIFFERENTIAL FOR SELF-ASSESSING 7,917
PURCHASERS" MEANS SIXTY-THREE MILLION THREE HUNDRED THOUSAND 7,918
DOLLARS LESS THE AMOUNT PAID UNDER DIVISION (C)(1)(a) OF SECTION 7,920
5727.81 OF THE REVISED CODE BY ALL SELF-ASSESSING PURCHASERS FOR 7,921
THE TWELVE-MONTH PERIOD ENDING IN THE MONTH PRIOR TO THE DATE OF
THE CALCULATION REQUIRED UNDER DIVISION (C)(1)(d) OF SECTION 7,922
5727.81 OF THE REVISED CODE. 7,923
Sec. 5727.81. (A) FOR THE PURPOSE OF RAISING REVENUE FOR 7,926
PUBLIC EDUCATION AND STATE AND LOCAL GOVERNMENT OPERATIONS, AN 7,927
EXCISE TAX IS HEREBY LEVIED AND IMPOSED ON AN ELECTRIC 7,928
DISTRIBUTION COMPANY FOR ALL ELECTRICITY DISTRIBUTED BY SUCH 7,929
COMPANY THAT HAS MAY 1, 2001, AS PART OF ITS MEASUREMENT PERIOD, 7,930
AT THE FOLLOWING RATES PER KILOWATT HOUR OF ELECTRICITY 7,931
DISTRIBUTED IN A THIRTY-DAY PERIOD BY THE COMPANY THROUGH A METER 7,932
OF AN END USER IN THIS STATE:
KILOWATT HOURS DISTRIBUTED TO RATE PER 7,935
AN END USER KILOWATT HOUR 7,936
FOR THE FIRST 2,000 $.00465 7,937
FOR THE NEXT 2,001 TO 15,000 $.00419 7,938
FOR 15,001 AND ABOVE $.00363 7,939
THE ELECTRIC DISTRIBUTION COMPANY SHALL BASE THE MONTHLY 7,942
TAX ON THE KILOWATT HOURS OF ELECTRICITY DISTRIBUTED TO AN END 7,943
USER THROUGH THE METER OF THE END USER THAT IS NOT MEASURED FOR A 7,944
THIRTY-DAY PERIOD BY DIVIDING THE DAYS IN THE MEASUREMENT PERIOD 7,946
INTO THE TOTAL KILOWATT HOURS MEASURED DURING THE MEASUREMENT 7,947
PERIOD TO OBTAIN A DAILY AVERAGE USAGE. THE TAX SHALL BE 7,948
DETERMINED BY OBTAINING THE SUM OF DIVISIONS (A)(1), (2), AND (3) 7,949
OF THIS SECTION AND MULTIPLYING THAT AMOUNT BY THE NUMBER OF DAYS
IN THE MEASUREMENT PERIOD: 7,950
(1) MULTIPLYING $0.00465 PER KILOWATT HOUR FOR THE FIRST 7,952
SIXTY-SEVEN KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 7,953
(2) MULTIPLYING $0.00419 FOR THE NEXT SIXTY-EIGHT TO FIVE 7,955
HUNDRED KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 7,956
187
(3) MULTIPLYING $0.00363 FOR THE REMAINING KILOWATT HOURS 7,958
DISTRIBUTED USING A DAILY AVERAGE. 7,959
EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, THE 7,961
ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX TO THE TREASURER 7,962
OF STATE IN ACCORDANCE WITH SECTION 5727.82 OF THE REVISED CODE. 7,964
ONLY THE DISTRIBUTION OF ELECTRICITY THROUGH A METER OF AN 7,967
END USER IN THIS STATE SHALL BE USED BY THE ELECTRIC DISTRIBUTION 7,968
COMPANY TO COMPUTE THE AMOUNT OR ESTIMATED AMOUNT OF TAX DUE. IN 7,969
THE EVENT A METER IS NOT ACTUALLY READ FOR A MEASUREMENT PERIOD, 7,970
THE ESTIMATED KILOWATT HOURS DISTRIBUTED BY AN ELECTRIC 7,971
DISTRIBUTION COMPANY TO COLLECT ITS DISTRIBUTION CHARGES MAY BE 7,972
USED.
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 7,974
EACH ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED BY 7,975
THIS SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES: 7,976
(1) THE ELECTRICITY IS DISTRIBUTED BY THE COMPANY THROUGH 7,978
A METER OF AN END USER IN THIS STATE; 7,979
(2) THE COMPANY IS DISTRIBUTING ELECTRICITY THROUGH A 7,981
METER LOCATED IN ANOTHER STATE, BUT THE ELECTRICITY IS CONSUMED 7,982
IN THIS STATE IN THE MANNER PRESCRIBED BY THE TAX COMMISSIONER; 7,984
(3) THE COMPANY IS DISTRIBUTING ELECTRICITY IN THIS STATE 7,986
WITHOUT THE USE OF A METER, BUT THE ELECTRICITY IS CONSUMED IN 7,987
THIS STATE AS ESTIMATED AND IN THE MANNER PRESCRIBED BY THE TAX 7,989
COMMISSIONER.
(C)(1)(a) A COMMERCIAL OR INDUSTRIAL PURCHASER THAT 7,992
RECEIVES ELECTRICITY THROUGH A METER OF AN END USER IN THIS STATE 7,993
AND CONSUMES ON THE AVERAGE, OVER THE COURSE OF THE PREVIOUS 7,994
CALENDAR YEAR, MORE THAN ONE HUNDRED TWENTY MILLION KILOWATT 7,995
HOURS OF ELECTRICITY DURING A THIRTY-DAY PERIOD MAY ELECT TO 7,997
SELF-ASSESS THE EXCISE TAX IMPOSED BY THIS SECTION AT THE RATE OF 7,998
$.00075 PER KILOWATT HOUR AND FOUR PER CENT OF THE TOTAL PRICE OF
ELECTRICITY DELIVERED THROUGH A METER OF AN END USER IN THIS 8,000
STATE. PAYMENT OF THE TAX SHALL BE MADE DIRECTLY TO THE 8,001
TREASURER OF STATE IN ACCORDANCE WITH DIVISIONS (A)(3) AND (4) OF 8,002
188
SECTION 5727.82 OF THE REVISED CODE OR, IF THE ELECTRIC 8,003
DISTRIBUTION COMPANY SERVING THE SELF-ASSESSING PURCHASER IS A 8,004
MUNICIPAL ELECTRIC UTILITY AND THE PURCHASER IS WITHIN THE 8,005
MUNICIPAL CORPORATION'S CORPORATE LIMITS, TO SUCH MUNICIPAL 8,006
CORPORATION'S GENERAL FUND IN ACCORDANCE WITH DIVISION (A)(2) OF 8,007
SECTION 5727.82 OF THE REVISED CODE, AND UPON PAYING IN THIS 8,008
MANNER, THE SELF-ASSESSING PURCHASER SHALL NOT BE REQUIRED TO PAY 8,009
THE EXCISE TAX TO THE ELECTRIC DISTRIBUTION COMPANY FROM WHICH 8,010
ITS ELECTRICITY IS DELIVERED. 8,011
(b) ON OR BEFORE DECEMBER 10, 2001, THE TAX COMMISSIONER 8,013
SHALL CALCULATE THE SIX MONTH REVENUE DIFFERENTIAL FOR 8,015
SELF-ASSESSING PURCHASERS. IF THE SIX MONTH REVENUE DIFFERENTIAL 8,017
IS GREATER THAN FIVE HUNDRED THOUSAND DOLLARS, THE TAX
COMMISSIONER SHALL INCREASE THE PERCENTAGE OF TOTAL PRICE TAX 8,019
RATE TO BE CHARGED FOR THE SIX-MONTH PERIOD BEGINNING IN THE 8,020
MONTH FOLLOWING THAT IN WHICH THE CALCULATION IS DONE. THE NEW 8,021
TAX RATE SHALL BE THE RATE IN EFFECT DURING THE CURRENT PERIOD 8,022
MULTIPLIED BY THE SUM OF ONE PLUS THE PRODUCT OF (i) A FRACTION, 8,023
THE NUMERATOR OF WHICH IS THE SIX MONTH REVENUE DIFFERENTIAL 8,024
MULTIPLIED BY TWO AND THE DENOMINATOR OF WHICH IS THE AMOUNT PAID 8,025
DURING THE PERIOD BY ALL SELF-ASSESSING PURCHASERS ON THE
PERCENTAGE OF TOTAL PRICE BASIS AND (ii) A FRACTION, THE 8,026
NUMERATOR OF WHICH IS TOTAL KILOWATT HOURS CONSUMED DURING THE 8,027
PERIOD BY SELF-ASSESSING PURCHASERS AND THE DENOMINATOR OF WHICH 8,028
IS ELEVEN BILLION TWENTY-FIVE MILLION. 8,029
IF THE SIX MONTH REVENUE DIFFERENTIAL IS LESS THAN NEGATIVE 8,031
FIVE HUNDRED THOUSAND DOLLARS, THE TAX COMMISSIONER SHALL 8,032
DECREASE THE PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR 8,033
THE SIX MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN 8,034
WHICH THE CALCULATION IS MADE. THE NEW TAX RATE SHALL BE THE 8,035
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,036
ONE PLUS THE PRODUCT OF (i) A FRACTION, THE NUMERATOR OF WHICH IS 8,037
THE SIX MONTH REVENUE DIFFERENTIAL MULTIPLIED BY TWO AND THE 8,038
DENOMINATOR OF WHICH IS THE AMOUNT PAID DURING THE PERIOD BY ALL 8,039
189
SELF-ASSESSING PURCHASERS ON THE PERCENTAGE OF TOTAL PRICE BASIS 8,040
AND (ii) A FRACTION, THE NUMERATOR OF WHICH IS ELEVEN BILLION 8,041
TWENTY-FIVE MILLION AND THE DENOMINATOR OF WHICH IS TOTAL 8,042
KILOWATT HOURS CONSUMED DURING THE PERIOD BY SELF-ASSESSING
PURCHASERS. 8,043
(c) ON OR BEFORE JUNE 10, 2002, THE TAX COMMISSIONER SHALL 8,045
CALCULATE THE SIX MONTH REVENUE DIFFERENTIAL FOR SELF-ASSESSING 8,046
PURCHASERS. IF THE SIX MONTH REVENUE DIFFERENTIAL IS GREATER 8,047
THAN FIVE HUNDRED THOUSAND DOLLARS, THE TAX COMMISSIONER SHALL
INCREASE THE PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR 8,048
THE TWELVE MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN 8,049
WHICH THE CALCULATION IS MADE. THE NEW TAX RATE SHALL BE THE 8,050
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,051
ONE PLUS THE PRODUCT OF (i) A FRACTION, THE NUMERATOR OF WHICH IS 8,052
THE SIX MONTH REVENUE DIFFERENTIAL AND THE DENOMINATOR OF WHICH 8,053
IS THE AMOUNT PAID DURING THE PERIOD BY ALL SELF-ASSESSING 8,054
PURCHASERS ON THE PERCENTAGE OF TOTAL PRICE BASIS AND (ii) A 8,055
FRACTION, THE NUMERATOR OF WHICH IS TOTAL KILOWATT HOURS CONSUMED 8,056
DURING THE PERIOD BY SELF-ASSESSING PURCHASERS AND THE 8,057
DENOMINATOR OF WHICH IS ELEVEN BILLION TWENTY-FIVE MILLION. 8,058
IF THE SIX MONTH REVENUE DEFERENTIAL IS LESS THAN NEGATIVE 8,060
FIVE HUNDRED THOUSAND DOLLARS, THE TAX COMMISSIONER SHALL 8,061
DECREASE THE PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR 8,062
THE TWELVE MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN 8,063
WHICH THE CALCULATION IS MADE. THE NEW TAX RATE SHALL BE THE 8,064
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,065
ONE PLUS THE PRODUCT OF (i) A FRACTION, THE NUMERATOR OF WHICH IS 8,066
THE SIX MONTH REVENUE DIFFERENTIAL AND THE DENOMINATOR OF WHICH 8,067
IS THE AMOUNT PAID DURING THE PERIOD BY ALL SELF-ASSESSING 8,068
PURCHASERS ON THE PERCENTAGE OF TOTAL PRICE BASIS AND (ii) A 8,069
FRACTION, THE NUMERATOR OF WHICH IS ELEVEN BILLION TWENTY-FIVE 8,070
MILLION AND THE DENOMINATOR OF WHICH IS TOTAL KILOWATT HOURS 8,071
CONSUMED DURING THE PERIOD BY SELF-ASSESSING PURCHASERS.
(d) ON OR BEFORE JUNE 10, 2003, 2004, 2005, 2006, AND 8,073
190
2007, THE TAX COMMISSIONER SHALL CALCULATE THE TWELVE MONTH 8,074
REVENUE DIFFERENTIAL FOR SELF-ASSESSING PURCHASERS. IF THE 8,075
TWELVE MONTH REVENUE DIFFERENTIAL IS GREATER THAN ONE MILLION 8,076
DOLLARS, THE TAX COMMISSIONER SHALL INCREASE THE PERCENTAGE OF 8,077
TOTAL PRICE TAX RATE TO BE CHARGED FOR THE TWELVE MONTH PERIOD 8,078
BEGINNING IN THE MONTH FOLLOWING THAT IN WHICH THE CALCULATION IS 8,079
MADE, EXCEPT THAT THE RATE CALCULATED IN 2007 SHALL BECOME THE 8,080
PERMANENT TAX RATE. IN EACH YEAR, THE NEW TAX RATE SHALL BE THE 8,081
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,082
ONE PLUS A FRACTION, THE NUMERATOR OF WHICH IS THE TWELVE MONTH 8,083
REVENUE DIFFERENTIAL AND THE DENOMINATOR OF WHICH IS THE AMOUNT 8,084
PAID DURING THE PERIOD BY ALL SELF-ASSESSING PURCHASERS ON THE 8,085
PERCENTAGE OF TOTAL PRICE BASIS. 8,086
IF THE REVENUE DIFFERENTIAL IS LESS THAN NEGATIVE ONE 8,088
MILLION DOLLARS, THE TAX COMMISSIONER SHALL DECREASE THE 8,089
PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR THE TWELVE 8,090
MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN WHICH THE 8,091
CALCULATION IS MADE, EXCEPT THAT THE RATE CALCULATED IN 2007 8,092
SHALL BECOME THE PERMANENT TAX RATE. IN EACH YEAR, THE NEW TAX 8,093
RATE SHALL BE THE RATE IN EFFECT DURING THE CURRENT PERIOD 8,094
MULTIPLIED BY THE SUM OF ONE PLUS A FRACTION, THE NUMERATOR OF 8,095
WHICH IS THE TWELVE MONTH REVENUE DIFFERENTIAL AND THE 8,096
DENOMINATOR OF WHICH IS THE AMOUNT PAID DURING THE PERIOD BY ALL 8,097
SELF-ASSESSING PURCHASERS ON THE PERCENTAGE OF PRICE BASIS. 8,098
(2) APPLICATION FOR REGISTRATION AS A SELF-ASSESSING 8,100
PURCHASER SHALL BE MADE ON A FORM PRESCRIBED BY THE TAX 8,101
COMMISSIONER. AT THE TIME OF MAKING THE APPLICATION AND BY THE 8,103
FIRST DAY OF MAY OF EACH YEAR, EXCLUDING MAY 1, 2000, A 8,104
SELF-ASSESSING PURCHASER SHALL PAY A FEE OF FIVE HUNDRED DOLLARS 8,105
TO THE TREASURER OF STATE FOR DEPOSIT TO THE KILOWATT HOUR EXCISE 8,106
TAX ADMINISTRATION FUND, WHICH IS HEREBY CREATED IN THE STATE 8,107
TREASURY. MONEY IN THE FUND SHALL BE USED TO DEFRAY THE TAX 8,108
COMMISSIONER'S COST IN ADMINISTERING THE TAX OWED UNDER SECTION 8,109
5727.81 OF THE REVISED CODE BY SELF-ASSESSING PURCHASERS. AFTER 8,110
191
THE APPLICATION IS APPROVED BY THE TAX COMMISSIONER, THE 8,111
REGISTRATION SHALL REMAIN IN EFFECT UNTIL CANCELED BY THE 8,112
REGISTRANT UPON WRITTEN NOTIFICATION TO THE COMMISSIONER OF THE 8,113
ELECTION TO PAY THE TAX IN ACCORDANCE WITH DIVISION (A) OF THIS 8,114
SECTION, OR BY THE TAX COMMISSIONER FOR NOT PAYING THE TAX OR FEE 8,115
UNDER DIVISION (C) OF THIS SECTION, OR MEETING THE QUALIFICATIONS 8,116
IN DIVISION (C)(1) OF THIS SECTION. THE TAX COMMISSIONER SHALL 8,117
GIVE WRITTEN NOTICE TO THE ELECTRIC DISTRIBUTION COMPANY FROM 8,119
WHICH ELECTRICITY IS DELIVERED TO A SELF-ASSESSING PURCHASER OF 8,120
THE PURCHASER'S SELF-ASSESSING STATUS, AND THE ELECTRIC 8,121
DISTRIBUTION COMPANY IS RELIEVED OF THE OBLIGATION TO PAY THE TAX 8,123
IMPOSED BY DIVISION (A) OF THIS SECTION FOR ELECTRICITY 8,124
DISTRIBUTED TO THAT SELF-ASSESSING PURCHASER UNTIL IT IS NOTIFIED 8,125
BY THE TAX COMMISSIONER THAT THE SELF-ASSESSING PURCHASER'S 8,126
REGISTRATION IS CANCELED. WITHIN FIFTEEN DAYS OF NOTIFICATION OF 8,127
THE CANCELED REGISTRATION, THE ELECTRIC DISTRIBUTION COMPANY 8,128
SHALL BE RESPONSIBLE FOR PAYMENT OF THE TAX IMPOSED BY DIVISION 8,129
(A) OF THIS SECTION ON ELECTRICITY DISTRIBUTED TO A PURCHASER 8,130
THAT IS NO LONGER REGISTERED AS A SELF-ASSESSING PURCHASER. A 8,132
SELF-ASSESSING PURCHASER WITH A CANCELED REGISTRATION MUST FILE A 8,133
REPORT AND REMIT THE TAX IMPOSED BY DIVISION (A) OF THIS SECTION 8,134
ON ALL ELECTRICITY IT RECEIVES FOR ANY MEASUREMENT PERIOD PRIOR 8,135
TO THE TAX BEING REPORTED AND PAID BY THE ELECTRIC DISTRIBUTION 8,137
COMPANY. A SELF-ASSESSING PURCHASER WHOSE REGISTRATION IS 8,138
CANCELED BY THE TAX COMMISSIONER IS NOT ELIGIBLE TO REGISTER AS A 8,139
SELF-ASSESSING PURCHASER FOR TWO YEARS AFTER THE REGISTRATION IS
CANCELED. 8,140
(D) THE TAX IMPOSED BY THIS SECTION DOES NOT APPLY TO THE 8,143
DISTRIBUTION OF ANY KILOWATT HOURS OF ELECTRICITY TO THE FEDERAL 8,144
GOVERNMENT, TO AN END USER LOCATED AT A FEDERAL FACILITY THAT 8,145
USES ELECTRICITY FOR THE ENRICHMENT OF URANIUM, OR TO AN END USER 8,146
FOR ANY DAY THE END USER IS A QUALIFIED END USER. THE EXEMPTION 8,147
UNDER THIS DIVISION FOR A QUALIFIED END USER ONLY APPLIES TO THE 8,148
MANUFACTURING LOCATION WHERE THE QUALIFIED END USER USES MORE 8,149
192
THAN THREE MILLION KILOWATT HOURS PER DAY.
Sec. 5727.82. (A)(1) EXCEPT AS PROVIDED IN DIVISIONS 8,152
(A)(2) AND (D) OF THIS SECTION, BY THE TWENTIETH DAY OF EACH 8,153
MONTH, EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX 8,154
IMPOSED BY SECTION 5727.81 OF THE REVISED CODE SHALL FILE WITH 8,156
THE TREASURER OF STATE A RETURN AS PRESCRIBED BY THE TAX 8,157
COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF TAX DUE 8,159
FOR THE PRECEDING MONTH. THE FIRST PAYMENT OF THIS TAX SHALL BE
MADE ON OR BEFORE JUNE 20, 2001. 8,160
(2) IF THE ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY 8,162
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE IS A 8,165
MUNICIPAL ELECTRIC UTILITY, IT MAY RETAIN IN ITS GENERAL FUND 8,166
THAT PORTION OF THE TAX ON THE KILOWATT HOURS DISTRIBUTED TO END 8,167
USERS LOCATED WITHIN THE BOUNDARIES OF THE MUNICIPAL CORPORATION. 8,168
HOWEVER, THE MUNICIPAL ELECTRIC UTILITY SHALL MAKE PAYMENT IN 8,169
ACCORDANCE WITH DIVISION (A)(1) OF THIS SECTION OF THE TAX DUE ON 8,171
THE KILOWATT HOURS DISTRIBUTED TO END USERS LOCATED OUTSIDE THE 8,172
BOUNDARIES OF THE MUNICIPAL CORPORATION. 8,173
(3) BY THE TWENTIETH DAY OF EACH MONTH, EACH 8,176
SELF-ASSESSING PURCHASER THAT UNDER DIVISION (C) OF SECTION 8,177
5727.81 OF THE REVISED CODE PAYS DIRECTLY TO THE TREASURER OF 8,179
STATE THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 8,180
SHALL FILE WITH THE TREASURER OF STATE A RETURN AS PRESCRIBED BY 8,181
THE TAX COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF 8,182
THE TAX DUE FOR THE PRECEDING MONTH. 8,183
(4) AS PRESCRIBED BY THE TAX COMMISSIONER, THE RETURN 8,185
SHALL BE SIGNED BY THE COMPANY OR SELF-ASSESSING PURCHASER 8,186
REQUIRED TO FILE IT, OR AN AUTHORIZED EMPLOYEE, OFFICER, OR AGENT 8,187
OF THE COMPANY OR PURCHASER. THE TREASURER OF STATE SHALL MARK 8,188
ON THE RETURN THE DATE IT WAS RECEIVED AND INDICATE PAYMENT OR 8,189
NONPAYMENT OF THE TAX SHOWN TO BE DUE ON THE RETURN. THE 8,190
TREASURER OF STATE IMMEDIATELY SHALL TRANSMIT ALL RETURNS TO THE 8,191
TAX COMMISSIONER. THE RETURN SHALL BE DEEMED FILED WHEN RECEIVED 8,192
BY THE TREASURER OF STATE.
193
(B) ANY ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,194
PURCHASER REQUIRED BY THIS SECTION TO FILE A RETURN WHO FAILS TO 8,196
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 8,197
REQUIRED TO BE PAID FOR THE REPORTING PERIOD, WHICHEVER IS 8,198
GREATER. THE TAX COMMISSIONER MAY COLLECT THE ADDITIONAL CHARGE 8,199
BY ASSESSMENT PURSUANT TO SECTION 5727.89 OF THE REVISED CODE. 8,202
THE COMMISSIONER MAY ABATE ALL OR A PORTION OF THE ADDITIONAL 8,203
CHARGE AND MAY ADOPT RULES GOVERNING SUCH ABATEMENTS. 8,204
(C) IF ANY TAX DUE IS NOT PAID TIMELY IN ACCORDANCE WITH 8,207
THIS SECTION, THE ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,208
PURCHASER LIABLE FOR THE TAX SHALL PAY INTEREST, CALCULATED AT 8,209
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 8,211
CODE, FROM THE DATE THE TAX PAYMENT WAS DUE TO THE DATE OF 8,212
PAYMENT OR TO THE DATE AN ASSESSMENT IS ISSUED, WHICHEVER OCCURS 8,213
FIRST. INTEREST SHALL BE PAID IN THE SAME MANNER AS THE TAX, AND 8,214
THE COMMISSIONER MAY COLLECT THE INTEREST BY ASSESSMENT PURSUANT 8,215
TO SECTION 5727.89 OF THE REVISED CODE. 8,216
(D) NOT LATER THAN THE TENTH DAY OF EACH MONTH, A 8,218
QUALIFIED END USER SHALL REPORT IN WRITING TO THE ELECTRIC 8,219
DISTRIBUTION COMPANY THAT DISTRIBUTES ELECTRICITY TO THE END USER 8,220
THE KILOWATT HOURS THAT WERE CONSUMED AS A QUALIFIED END USER FOR 8,221
THE PRIOR MONTH AND THE NUMBER OF DAYS, IF ANY, ON WHICH THE END 8,222
USER WAS NOT A QUALIFIED END USER. FOR EACH CALENDAR DAY THE END 8,223
USER WAS NOT A QUALIFIED END USER, THE END USER SHALL REPORT IN 8,224
WRITING TO THE ELECTRIC DISTRIBUTION COMPANY THE NUMBER OF 8,225
KILOWATT HOURS USED ON THAT DAY, AND THE ELECTRIC DISTRIBUTION 8,226
COMPANY SHALL PAY THE TAX IMPOSED UNDER SECTION 5727.81 OF THE 8,227
REVISED CODE ON EACH KILOWATT HOUR THAT WAS NOT DISTRIBUTED TO A 8,228
QUALIFIED END USER. THE ELECTRIC DISTRIBUTION COMPANY MAY RELY 8,229
IN GOOD FAITH ON A QUALIFIED END USER'S REPORT FILED UNDER THIS 8,230
DIVISION. IF IT IS DETERMINED THAT THE END USER WAS NOT A 8,231
QUALIFIED END USER FOR ANY CALENDAR DAY OR THE QUANTITY OF 8,232
ELECTRICITY USED BY THE QUALIFIED END USER WAS OVERSTATED, THE 8,233
194
TAX COMMISSIONER SHALL ASSESS AND COLLECT ANY TAX IMPOSED UNDER 8,234
SECTION 5727.81 OF THE REVISED CODE DIRECTLY FROM THE QUALIFIED 8,236
END USER. AS REQUESTED BY THE COMMISSIONER, EACH END USER
REPORTING TO AN ELECTRIC DISTRIBUTION COMPANY THAT IT IS A 8,237
QUALIFIED END USER SHALL PROVIDE DOCUMENTATION TO THE 8,238
COMMISSIONER THAT ESTABLISHES THE VOLUME OF ELECTRICITY CONSUMED 8,240
DAILY BY THE QUALIFIED END USER. 8,241
Sec. 5727.83. (A) AN ELECTRIC DISTRIBUTION COMPANY OR 8,243
SELF-ASSESSING PURCHASER SHALL REMIT EACH MONTHLY TAX PAYMENT BY 8,245
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY DIVISIONS (B) AND (C) 8,247
OF THIS SECTION.
THE TAX COMMISSIONER SHALL NOTIFY EACH ELECTRIC 8,249
DISTRIBUTION COMPANY AND SELF-ASSESSING PURCHASER OF THE 8,250
OBLIGATION TO REMIT TAXES BY ELECTRONIC FUNDS TRANSFER, SHALL 8,252
MAINTAIN AN UPDATED LIST OF THOSE COMPANIES AND PURCHASERS, AND
SHALL TIMELY CERTIFY TO THE TREASURER OF STATE THE LIST AND ANY 8,254
ADDITIONS THERETO OR DELETIONS THEREFROM. FAILURE BY THE TAX 8,255
COMMISSIONER TO NOTIFY A COMPANY OR SELF-ASSESSING PURCHASER 8,256
SUBJECT TO THIS SECTION TO REMIT TAXES BY ELECTRONIC FUNDS 8,257
TRANSFER DOES NOT RELIEVE THE COMPANY OR SELF-ASSESSING PURCHASER 8,258
OF ITS OBLIGATION TO REMIT TAXES IN THAT MANNER. 8,259
(B) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,261
PURCHASER REQUIRED BY THIS SECTION TO REMIT PAYMENTS BY 8,264
ELECTRONIC FUNDS TRANSFER SHALL REMIT SUCH PAYMENTS TO THE 8,265
TREASURER OF STATE IN THE MANNER PRESCRIBED BY RULES ADOPTED BY 8,266
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 8,267
REVISED CODE. THE PAYMENT OF TAXES BY ELECTRONIC FUNDS TRANSFER 8,269
DOES NOT AFFECT A COMPANY'S OR SELF-ASSESSING PURCHASER'S
OBLIGATION TO FILE THE MONTHLY RETURN AS REQUIRED UNDER SECTION 8,271
5727.82 OF THE REVISED CODE.
(C) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,273
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 8,274
FUNDS TRANSFER MAY APPLY TO THE TREASURER OF STATE IN THE MANNER 8,276
195
PRESCRIBED BY THE TREASURER OF STATE TO BE EXCUSED FROM THAT
REQUIREMENT. THE TREASURER OF STATE MAY EXCUSE THE COMPANY OR 8,277
SELF-ASSESSING PURCHASER FROM REMITTANCE BY ELECTRONIC FUNDS 8,279
TRANSFER FOR GOOD CAUSE SHOWN FOR THE PERIOD OF TIME REQUESTED BY 8,280
THE COMPANY OR SELF-ASSESSING PURCHASER OR FOR A PORTION OF THAT 8,281
PERIOD. THE TREASURER OF STATE SHALL NOTIFY THE TAX COMMISSIONER 8,282
AND THE COMPANY OR SELF-ASSESSING PURCHASER OF THE TREASURER OF 8,283
STATE'S DECISION AS SOON AS IS PRACTICABLE. 8,284
(D) IF AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,286
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 8,289
FUNDS TRANSFER REMITS THOSE TAXES BY SOME MEANS OTHER THAN BY 8,290
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY THIS SECTION AND THE 8,291
RULES ADOPTED BY THE TREASURER OF STATE, AND THE TREASURER OF 8,292
STATE DETERMINES THAT SUCH FAILURE WAS NOT DUE TO REASONABLE
CAUSE OR WAS DUE TO WILLFUL NEGLECT, THE TREASURER OF STATE SHALL 8,293
NOTIFY THE TAX COMMISSIONER OF THE FAILURE TO REMIT BY ELECTRONIC 8,294
FUNDS TRANSFER AND SHALL PROVIDE THE COMMISSIONER WITH ANY 8,295
INFORMATION USED IN MAKING THAT DETERMINATION. THE TAX 8,296
COMMISSIONER MAY COLLECT AN ADDITIONAL CHARGE BY ASSESSMENT IN 8,297
THE MANNER PRESCRIBED BY SECTION 5727.89 OF THE REVISED CODE. 8,298
THE ADDITIONAL CHARGE SHALL EQUAL FIVE PER CENT OF THE AMOUNT OF 8,299
THE TAXES REQUIRED TO BE PAID BY ELECTRONIC FUNDS TRANSFER, BUT 8,300
SHALL NOT EXCEED FIVE THOUSAND DOLLARS. ANY ADDITIONAL CHARGE 8,301
ASSESSED UNDER THIS SECTION IS IN ADDITION TO ANY OTHER PENALTY 8,302
OR CHARGE IMPOSED UNDER THIS CHAPTER, AND SHALL BE CONSIDERED AS 8,303
REVENUE ARISING FROM THE TAX IMPOSED UNDER THIS CHAPTER. THE TAX 8,304
COMMISSIONER MAY ABATE ALL OR A PORTION OF SUCH A CHARGE AND MAY 8,305
ADOPT RULES GOVERNING SUCH ABATEMENTS. 8,306
NO ADDITIONAL CHARGE SHALL BE ASSESSED UNDER THIS DIVISION 8,308
AGAINST AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,309
PURCHASER THAT HAS BEEN NOTIFIED OF ITS OBLIGATION TO REMIT TAXES 8,312
UNDER THIS SECTION AND THAT REMITS ITS FIRST TWO TAX PAYMENTS 8,313
AFTER SUCH NOTIFICATION BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 8,314
TRANSFER. THE ADDITIONAL CHARGE MAY BE ASSESSED UPON THE 8,315
196
REMITTANCE OF ANY SUBSEQUENT TAX PAYMENT THAT THE COMPANY OR
PURCHASER REMITS BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 8,317
TRANSFER.
Sec. 5727.84. (A) AS USED IN THIS SECTION AND SECTIONS 8,319
5727.85, 5727.86, AND 5727.87 OF THE REVISED CODE: 8,321
(1) "SCHOOL DISTRICT" MEANS A CITY, LOCAL, OR EXEMPTED 8,323
VILLAGE SCHOOL DISTRICT. 8,324
(2) "JOINT VOCATIONAL SCHOOL DISTRICT" MEANS A JOINT 8,326
VOCATIONAL SCHOOL DISTRICT CREATED UNDER SECTION 3311.16 OF THE 8,327
REVISED CODE, AND INCLUDES A COOPERATIVE EDUCATION SCHOOL 8,329
DISTRICT CREATED UNDER SECTION 3311.52 OR 3311.521 OF THE REVISED 8,330
CODE AND A COUNTY SCHOOL FINANCING DISTRICT CREATED UNDER SECTION 8,331
3311.50 OF THE REVISED CODE. 8,332
(3) "LOCAL TAXING UNIT" MEANS A SUBDIVISION OR TAXING 8,334
UNIT, AS DEFINED IN SECTION 5705.01 OF THE REVISED CODE, OR A 8,335
PARK DISTRICT CREATED UNDER CHAPTER 1545. OF THE REVISED CODE, 8,336
BUT EXCLUDES SCHOOL DISTRICTS AND JOINT VOCATIONAL SCHOOL 8,338
DISTRICTS.
(4) "STATE EDUCATION AID" MEANS THE SUM OF THE STATE BASIC 8,340
AID AND STATE SPECIAL EDUCATION AID AMOUNTS COMPUTED FOR A SCHOOL 8,341
DISTRICT UNDER DIVISIONS (A) AND (B) OF SECTION 3317.022 OF THE 8,343
REVISED CODE. 8,344
(5) "STATE EDUCATION AID OFFSET" MEANS THE AMOUNT 8,346
CERTIFIED FOR EACH SCHOOL DISTRICT UNDER DIVISION (A)(1) OF 8,347
SECTION 5727.85 OF THE REVISED CODE. 8,348
(6) "ADJUSTED TOTAL TAXABLE VALUE" HAS THE SAME MEANING AS 8,350
IN SECTION 3317.02 OF THE REVISED CODE. 8,351
(7) "TAX VALUE LOSS" MEANS THE AMOUNT DETERMINED UNDER 8,353
DIVISION (C) OF THIS SECTION. 8,354
(8) "FIXED-RATE LEVY" MEANS ANY TAX LEVIED ON PROPERTY 8,356
OTHER THAN A FIXED-SUM LEVY. 8,357
(9) "FIXED-RATE LEVY LOSS" MEANS THE AMOUNT DETERMINED 8,359
UNDER DIVISION (D) OF THIS SECTION. 8,360
(10) "FIXED-SUM LEVY" MEANS A TAX LEVIED ON PROPERTY AT 8,362
197
WHATEVER RATE IS REQUIRED TO PRODUCE A SPECIFIED AMOUNT OF TAX 8,363
MONEY OR TO PAY DEBT CHARGES, AND INCLUDES SCHOOL DISTRICT 8,364
EMERGENCY LEVIES IMPOSED PURSUANT TO SECTION 5705.194 OF THE 8,365
REVISED CODE.
(11) "FIXED-SUM LEVY LOSS" MEANS THE AMOUNT DETERMINED 8,367
UNDER DIVISION (E) OF THIS SECTION. 8,368
(12) "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX 8,370
(ALL ITEMS, ALL URBAN CONSUMERS) PREPARED BY THE BUREAU OF LABOR 8,371
STATISTICS OF THE UNITED STATES DEPARTMENT OF LABOR. 8,372
(B) ALL MONEY ARISING FROM THE TAX IMPOSED BY SECTION 8,374
5727.81 OF THE REVISED CODE SHALL BE CREDITED AS FOLLOWS: 8,375
(1) FIFTY-NINE AND NINE HUNDRED SEVENTY-SIX 8,377
ONE-THOUSANDTHS PER CENT, PLUS AN AMOUNT EQUAL TO THE STATE 8,378
EDUCATION AID OFFSET, SHALL BE CREDITED TO THE GENERAL REVENUE 8,379
FUND.
(2) TWO AND SIX HUNDRED FORTY-SIX ONE-THOUSANDTHS PER CENT 8,381
SHALL BE CREDITED TO THE LOCAL GOVERNMENT FUND, FOR DISTRIBUTION 8,382
IN ACCORDANCE WITH SECTION 5747.50 OF THE REVISED CODE. 8,383
(3) THREE HUNDRED SEVENTY-EIGHT ONE-THOUSANDTHS PER CENT 8,385
SHALL BE CREDITED TO THE LOCAL GOVERNMENT REVENUE ASSISTANCE 8,386
FUND, FOR DISTRIBUTION IN ACCORDANCE WITH SECTION 5747.61 OF THE 8,387
REVISED CODE. 8,388
(4) TWENTY-FIVE AND NINE-TENTHS PER CENT, LESS AN AMOUNT 8,390
EQUAL TO THE STATE EDUCATION AID OFFSET, SHALL BE CREDITED TO THE 8,391
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 8,392
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 8,393
PAYMENTS DESCRIBED IN SECTION 5727.85 OF THE REVISED CODE. 8,394
(5) ELEVEN AND ONE-TENTH PER CENT SHALL BE CREDITED TO THE 8,396
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 8,397
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 8,398
PAYMENTS DESCRIBED IN SECTION 5727.86 OF THE REVISED CODE. 8,399
(6) IN ANY YEAR THAT THE REVENUE ARISING FROM THE TAX 8,401
LEVIED BY SECTION 5727.81 OF THE REVISED CODE IS LESS THAN FIVE 8,402
HUNDRED FIFTY-TWO MILLION DOLLARS, THE AMOUNT CREDITED TO THE 8,404
198
GENERAL REVENUE FUND UNDER DIVISION (B)(1) OF THIS SECTION SHALL 8,405
BE REDUCED BY THE AMOUNT NECESSARY TO CREDIT TO EACH OF THE FUNDS 8,406
IN DIVISIONS (B)(2),(3),(4), AND (5) OF THIS SECTION THE AMOUNT 8,407
IT WOULD HAVE RECEIVED IF THE TAX DID RAISE FIVE HUNDRED 8,408
FIFTY-TWO MILLION DOLLARS FOR THAT YEAR, AND THE AMOUNT OF THAT 8,409
REDUCTION SHALL BE SO CREDITED. 8,410
(C) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 8,412
SHALL DETERMINE FOR EACH TAXING DISTRICT ITS TAX VALUE LOSS, 8,414
WHICH IS THE SUM OF THE AMOUNTS DESCRIBED IN DIVISIONS (C)(1) AND 8,415
(2) OF THIS SECTION: 8,416
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 8,418
DESCRIBED IN DIVISION (C)(1)(b) FROM THE AMOUNT DESCRIBED IN 8,419
DIVISION (C)(1)(a) OF THIS SECTION. 8,420
(a) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 8,422
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 8,423
COMMISSIONER FOR TAX YEAR 1998 ON A PRELIMINARY ASSESSMENT, OR AN 8,424
AMENDED PRELIMINARY ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 1999, 8,425
AND AS APPORTIONED TO THE TAXING DISTRICT FOR TAX YEAR 1998; 8,426
(b) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 8,428
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 8,429
COMMISSIONER FOR TAX YEAR 1998 HAD THE PROPERTY BEEN APPORTIONED 8,430
TO THE TAXING DISTRICT FOR TAX YEAR 2001, AND ASSESSED AT THE 8,431
RATES IN EFFECT FOR TAX YEAR 2001. 8,432
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 8,434
DESCRIBED IN DIVISION (C)(2)(b) FROM THE AMOUNT DESCRIBED IN 8,435
DIVISION (C)(2)(a) OF THIS SECTION. 8,436
(a) THE THREE-YEAR AVERAGE FOR TAX YEARS 1996, 1997, AND 8,438
1998 OF THE ASSESSED VALUE FROM NUCLEAR FUEL MATERIALS AND 8,439
ASSEMBLIES ASSESSED AGAINST A PERSON UNDER CHAPTER 5711. OF THE 8,440
REVISED CODE FROM THE LEASING OF THEM TO AN ELECTRIC COMPANY FOR 8,441
THOSE RESPECTIVE TAX YEARS, AS REFLECTED IN THE PRELIMINARY 8,442
ASSESSMENTS;
(b) THE THREE-YEAR AVERAGE ASSESSED VALUE FROM NUCLEAR 8,444
FUEL MATERIALS AND ASSEMBLIES ASSESSED UNDER DIVISION (C)(2)(a) 8,445
199
OF THIS SECTION FOR TAX YEARS 1996, 1997, AND 1998, AS REFLECTED 8,446
IN THE PRELIMINARY ASSESSMENTS, USING AN ASSESSMENT RATE OF
TWENTY-FIVE PER CENT. 8,447
THE TAX COMMISSIONER MAY REQUEST THAT ELECTRIC COMPANIES 8,449
AND RURAL ELECTRIC COMPANIES FILE A REPORT TO HELP DETERMINE THE 8,450
TAX VALUE LOSS UNDER DIVISION (C) OF THIS SECTION. THE REPORT 8,451
SHALL BE FILED WITHIN THIRTY DAYS OF THE COMMISSIONER'S REQUEST. 8,452
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 8,453
REVISED CODE. 8,454
(D) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 8,456
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 8,457
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-RATE LEVY LOSS, WHICH 8,458
IS ITS TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN EFFECT IN TAX 8,460
YEAR 1998 FOR FIXED-RATE LEVIES.
(E) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 8,462
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 8,464
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-SUM LEVY LOSS, WHICH IS 8,465
THE AMOUNT OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 8,466
DIVISION (E)(2) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 8,467
DIVISION (E)(1) OF THIS SECTION: 8,468
(1) THE TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN 8,470
EFFECT IN TAX YEAR 1998 FOR FIXED-SUM LEVIES FOR ALL TAXING 8,471
DISTRICTS WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 8,472
DISTRICT, AND LOCAL TAXING UNIT. FOR THE YEARS 2002 THROUGH 8,473
2006, THIS COMPUTATION SHALL INCLUDE SCHOOL DISTRICT EMERGENCY 8,474
LEVIES THAT EXISTED IN 1998, AND ALL OTHER FIXED-SUM LEVIES THAT 8,475
EXISTED IN 1998 AND CONTINUE TO BE CHARGED IN THE TAX YEAR 8,476
PRECEDING THE DISTRIBUTION YEAR. FOR THE YEARS 2007 THROUGH 8,477
2016, THIS COMPUTATION SHALL EXCLUDE ALL SCHOOL DISTRICT 8,478
EMERGENCY LEVIES AND ALL OTHER FIXED-SUM LEVIES THAT EXISTED IN 8,479
1998 BUT ARE NO LONGER IN EFFECT IN THE TAX YEAR PRECEDING THE 8,480
DISTRIBUTION YEAR.
(2) THE TOTAL TAXABLE VALUE IN TAX YEAR 1998 IN EACH 8,482
200
SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, AND LOCAL 8,483
TAXING UNIT MULTIPLIED BY ONE-FOURTH OF ONE MILL. 8,484
IF THE COMPUTATION UNDER DIVISION (E) OF THIS SECTION FOR 8,486
ANY SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR LOCAL 8,487
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 8,488
REVISED CODE OR DIVISION (A)(2) OF SECTION 5727.86 OF THE REVISED 8,490
CODE SHALL BE APPORTIONED AMONG ALL CONTRIBUTING FIXED-SUM LEVIES 8,492
IN THE PROPORTION OF EACH LEVY TO THE SUM OF ALL FIXED-SUM LEVIES 8,493
WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR 8,494
LOCAL TAXING UNIT.
Sec. 5727.85. (A) BY THE THIRTY-FIRST DAY OF JULY OF EACH 8,497
YEAR, BEGINNING IN 2002 AND ENDING IN 2016, THE DEPARTMENT OF 8,498
EDUCATION SHALL DETERMINE THE FOLLOWING FOR EACH SCHOOL DISTRICT 8,499
ELIGIBLE FOR PAYMENT UNDER DIVISION (C) OF THIS SECTION: 8,500
(1) THE STATE EDUCATION AID OFFSET, WHICH IS THE 8,502
DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 8,503
DIVISION (A)(1)(b) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 8,505
DIVISION (A)(1)(a) OF THIS SECTION: 8,506
(a) THE STATE EDUCATION AID COMPUTED FOR THE SCHOOL 8,508
DISTRICT FOR THE CURRENT FISCAL YEAR ON THE BASIS OF THE ADJUSTED 8,509
TOTAL TAXABLE VALUE; 8,510
(b) THE STATE EDUCATION AID THAT WOULD BE COMPUTED FOR THE 8,512
SCHOOL DISTRICT FOR THE CURRENT FISCAL YEAR IF THE DISTRICT'S 8,513
ADJUSTED TOTAL TAXABLE VALUE INCLUDED THE TAX VALUE LOSS FOR ALL 8,514
TAXING DISTRICTS IN THE SCHOOL DISTRICT.
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE STATE 8,516
EDUCATION AID OFFSET DETERMINED UNDER DIVISION (A)(1) OF THIS 8,517
SECTION FROM THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION 8,518
(D) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 8,519
DISTRICTS IN EACH SCHOOL DISTRICT. THE DEPARTMENT OF EDUCATION 8,520
SHALL CERTIFY THE AMOUNT SO DETERMINED TO THE DIRECTOR OF BUDGET 8,521
AND MANAGEMENT.
(B) NOT LATER THAN THE THIRTY-FIRST DAY OF OCTOBER OF THE 8,524
201
YEARS 2006 THROUGH 2016, THE DEPARTMENT OF EDUCATION SHALL 8,525
DETERMINE ALL OF THE FOLLOWING FOR EACH SCHOOL DISTRICT: 8,526
(1) THE AMOUNT OBTAINED BY SUBTRACTING THE DISTRICT'S 8,528
STATE EDUCATION AID COMPUTED FOR FISCAL YEAR 2002 FROM THE 8,529
DISTRICT'S STATE EDUCATION AID COMPUTED FOR THE CURRENT FISCAL 8,530
YEAR;
(2) THE INFLATION-ADJUSTED PROPERTY TAX LOSS. THE 8,532
INFLATION-ADJUSTED PROPERTY TAX LOSS EQUALS THE FIXED-RATE LEVY 8,533
LOSS DETERMINED UNDER DIVISION (D) OF SECTION 5727.84 OF THE 8,535
REVISED CODE FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT 8,536
PLUS THE PRODUCT OBTAINED BY MULTIPLYING THAT LOSS BY THE 8,537
CUMULATIVE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FROM 8,538
JANUARY 1, 2002, TO THE THIRTIETH DAY OF JUNE OF THE CURRENT 8,539
YEAR.
(3) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 8,541
COMPUTED UNDER DIVISION (B)(1) FROM THE AMOUNT OF THE 8,542
INFLATION-ADJUSTED PROPERTY TAX LOSS. IF THIS DIFFERENCE IS ZERO 8,543
OR A NEGATIVE NUMBER, NO FURTHER PAYMENTS SHALL BE MADE UNDER 8,544
DIVISION (C) OF THIS SECTION TO THE SCHOOL DISTRICT FROM THE 8,545
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND. IF THE DIFFERENCE 8,547
IS GREATER THAN ZERO, THE DEPARTMENT OF EDUCATION SHALL CERTIFY
THE AMOUNT CALCULATED IN DIVISION (A)(2) OF THIS SECTION TO THE 8,549
DIRECTOR OF BUDGET AND MANAGEMENT NOT LATER THAN THE THIRTY-FIRST 8,550
DAY OF DECEMBER OF EACH YEAR, BEGINNING IN 2006 AND ENDING IN 8,552
2016.
(C) FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT, THE 8,554
DIRECTOR OF BUDGET AND MANAGEMENT SHALL PAY FROM THE SCHOOL 8,555
DISTRICT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED 8,556
INCOME TAX FUND IN THE PROPER COUNTY TREASURY ALL OF THE 8,557
FOLLOWING: 8,558
(1) IN FEBRUARY 2002, ONE-HALF OF THE FIXED-RATE LEVY LOSS 8,560
CERTIFIED UNDER DIVISION (D) OF SECTION 5727.84 OF THE REVISED 8,563
CODE ON OR BEFORE THE DAY PRESCRIBED FOR THE SETTLEMENT UNDER 8,564
DIVISION (A) OF SECTION 321.24 OF THE REVISED CODE. 8,565
202
(2) FROM AUGUST 2002 THROUGH AUGUST 2006, ONE-HALF OF THE 8,568
AMOUNT CERTIFIED FOR THAT FISCAL YEAR UNDER DIVISION (A)(2) OF 8,569
THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,570
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,571
REVISED CODE. 8,572
(3) FROM FEBRUARY 2007 THROUGH AUGUST 2016, ONE-HALF OF 8,574
THE AMOUNT CERTIFIED FOR THAT CALENDAR YEAR UNDER DIVISION (B)(3) 8,576
OF THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,577
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,578
REVISED CODE. 8,579
THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 8,581
DIVISIONS (C)(1), (2), AND (3) OF THIS SECTION TO THE PROPER 8,582
SCHOOL DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS 8,583
TAXES, AND THE SCHOOL DISTRICT SHALL APPORTION THE AMOUNTS SO
RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE 8,584
AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 8,585
(D) NOT LATER THAN JANUARY 1, 2002, FOR ALL TAXING 8,587
DISTRICTS IN EACH JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 8,589
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 8,590
MANAGEMENT THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D) 8,592
OF SECTION 5727.84 OF THE REVISED CODE. FROM FEBRUARY 2002 TO 8,594
AUGUST 2016, THE DIRECTOR SHALL PAY FROM THE SCHOOL DISTRICT 8,595
PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX 8,596
FUND IN THE PROPER COUNTY TREASURY, ONE-HALF OF THE FIXED-RATE 8,597
LEVY LOSS SO CERTIFIED FOR EACH YEAR ON OR BEFORE EACH OF THE 8,598
DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER DIVISIONS (A) AND (C) 8,599
OF SECTION 321.24 OF THE REVISED CODE. THE COUNTY TREASURER 8,601
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 8,602
THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS 8,603
AS IF THOSE AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 8,604
(E)(1) NOT LATER THAN JANUARY 1, 2002, FOR EACH SCHOOL 8,606
DISTRICT AND JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 8,607
203
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND
MANAGEMENT THE FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) 8,608
OF SECTION 5727.84 OF THE REVISED CODE. THE CERTIFICATION SHALL 8,609
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 8,610
COUNTY UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY 8,611
ONE-HALF OF THE FIXED-SUM LEVY LOSS SO CERTIFIED FOR EACH YEAR ON 8,612
OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER 8,613
DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED CODE. THE 8,615
COUNTY TREASURER SHALL DISTRIBUTE THE AMOUNTS TO THE PROPER 8,616
SCHOOL DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT AS IF THEY
HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE DISTRICT SHALL 8,617
APPORTION THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN THE SAME 8,618
PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED AND COLLECTED AS 8,619
TAXES. NO PAYMENTS SHALL BE MADE UNDER THIS DIVISION ONCE ALL 8,620
FIXED-SUM LEVIES IN EFFECT IN 1998 HAVE EXPIRED.
(2) BEGINNING IN 2003 AND ENDING IN 2016, BY THE 8,622
THIRTY-FIRST DAY OF JANUARY OF EACH YEAR, THE TAX COMMISSIONER 8,623
SHALL REVIEW THE CERTIFICATION ORIGINALLY MADE UNDER DIVISION 8,625
(E)(1) OF THIS SECTION. IF THE COMMISSIONER DETERMINES THAT A 8,626
FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 8,627
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 8,628
ALL SUBSEQUENT YEARS SHALL BE MADE TO THE DIRECTOR OF BUDGET AND 8,629
MANAGEMENT. 8,630
(F) BY AUGUST 5, 2002, THE TAX COMMISSIONER SHALL ESTIMATE 8,633
THE AMOUNT OF MONEY IN THE SCHOOL DISTRICT PROPERTY TAX 8,634
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE 8,635
PAYMENTS IN THAT MONTH UNDER DIVISIONS (C), (D), AND (E) OF THIS 8,636
SECTION. NOTWITHSTANDING DIVISION (C) OF THIS SECTION, THE 8,637
DEPARTMENT OF EDUCATION, IN CONSULTATION WITH THE TAX 8,638
COMMISSIONER AND FROM THOSE EXCESS FUNDS, MAY PAY ANY SCHOOL 8,640
DISTRICT FOUR AND ONE-HALF TIMES THE AMOUNT CERTIFIED UNDER
DIVISION (A)(2) OF THIS SECTION. PAYMENTS SHALL BE MADE IN ORDER 8,641
204
FROM THE SMALLEST ANNUAL LOSS TO THE LARGEST ANNUAL LOSS. A 8,642
PAYMENT MADE UNDER THIS DIVISION SHALL BE IN LIEU OF THE PAYMENT 8,644
TO BE MADE IN AUGUST 2002 UNDER DIVISION (C)(2) OF THIS SECTION. 8,645
NO PAYMENTS SHALL BE MADE IN THE MANNER ESTABLISHED IN THIS 8,646
DIVISION TO ANY SCHOOL DISTRICT WITH ANNUAL LOSSES FROM PERMANENT 8,647
IMPROVEMENT FIXED-RATE LEVIES IN EXCESS OF TWENTY THOUSAND 8,648
DOLLARS, OR ANNUAL LOSSES FROM ANY OTHER FIXED-RATE LEVIES IN 8,649
EXCESS OF TWENTY THOUSAND DOLLARS. A SCHOOL DISTRICT RECEIVING A 8,650
PAYMENT UNDER THIS DIVISION IS NO LONGER ENTITLED TO ANY FURTHER 8,651
PAYMENTS UNDER DIVISION (C) OF THIS SECTION. 8,652
(G) ON THE THIRTY-FIRST DAY OF JULY OF 2003, 2004, 2005, 8,654
AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY OF 2007 8,656
AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE SCHOOL 8,657
DISTRICT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT NEEDED 8,658
TO MAKE PAYMENTS FROM THE FUND UNDER DIVISIONS (C), (D), AND (E) 8,659
OF THIS SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET 8,661
AND MANAGEMENT SHALL DISTRIBUTE THE EXCESS AMONG SCHOOL DISTRICTS 8,662
AND JOINT VOCATIONAL SCHOOL DISTRICTS. THE AMOUNT DISTRIBUTED TO 8,664
EACH DISTRICT SHALL BEAR THE SAME PROPORTION TO THE EXCESS 8,665
REMAINING IN THE FUND AS THE ADM OF THE DISTRICT BEARS TO THE ADM 8,666
OF ALL OF THE DISTRICTS. FOR THE PURPOSE OF THIS DIVISION, "ADM" 8,667
MEANS THE FORMULA ADM IN THE CASE OF A SCHOOL DISTRICT, AND THE 8,669
AVERAGE DAILY MEMBERSHIP REPORTED UNDER SECTION 3317.03 OF THE 8,670
REVISED CODE IN THE CASE OF A JOINT VOCATIONAL SCHOOL DISTRICT. 8,671
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 8,673
MANAGEMENT, THE EXCESS REMAINING IN THE SCHOOL DISTRICT PROPERTY 8,674
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 8,675
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 8,676
CREDIT OF THE FUND.
AMOUNTS RECEIVED BY A SCHOOL DISTRICT OR JOINT VOCATIONAL 8,678
SCHOOL DISTRICT UNDER THIS DIVISION SHALL BE USED EXCLUSIVELY FOR 8,679
CAPITAL IMPROVEMENTS. 8,680
(H) IF THE TOTAL AMOUNT IN THE SCHOOL DISTRICT PROPERTY 8,682
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 8,683
205
DIVISIONS (C), (D), AND (E) OF THIS SECTION, THE PAYMENTS 8,684
REQUIRED UNDER DIVISION (E) OF THIS SECTION SHALL BE MADE FIRST 8,685
IN THEIR ENTIRETY. AFTER ALL PAYMENTS ARE MADE UNDER DIVISION 8,686
(E) OF THIS SECTION, PAYMENTS UNDER DIVISIONS (C) AND (D) OF THIS 8,687
SECTION SHALL BE MADE FROM THE BALANCE OF MONEY AVAILABLE IN THE 8,688
PROPORTION OF EACH SCHOOL DISTRICT'S OR JOINT VOCATIONAL SCHOOL 8,689
DISTRICT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF PAYMENTS UNDER 8,690
DIVISIONS (C) AND (D) OF THIS SECTION. 8,691
(I) IF ALL OR A PART OF THE TERRITORY OF A SCHOOL DISTRICT 8,693
OR JOINT VOCATIONAL SCHOOL DISTRICT IS MERGED WITH OR TRANSFERRED 8,694
TO ANOTHER DISTRICT, THE TAX COMMISSIONER SHALL ADJUST THE
PAYMENTS MADE UNDER THIS SECTION TO EACH OF THE DISTRICTS IN 8,695
PROPORTION TO THE TAX VALUE LOSS APPORTIONED TO THE MERGED OR 8,696
TRANSFERRED TERRITORY. 8,697
(J) THERE IS HEREBY CREATED THE ELECTRIC PROPERTY TAX 8,699
STUDY COMMITTEE, EFFECTIVE JANUARY 1, 2011. THE COMMITTEE SHALL 8,700
CONSIST OF THE FOLLOWING SEVEN MEMBERS: THE TAX COMMISSIONER, 8,701
THREE MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE 8,702
SENATE, AND THREE MEMBERS OF THE HOUSE OF REPRESENTATIVES 8,703
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. THE 8,704
APPOINTMENTS SHALL BE MADE NOT LATER THAN JANUARY 31, 2011. THE 8,705
TAX COMMISSIONER SHALL BE THE CHAIRPERSON OF THE COMMITTEE. 8,706
THE COMMITTEE SHALL STUDY THE EXTENT TO WHICH EACH SCHOOL 8,708
DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT HAS BEEN 8,709
COMPENSATED, UNDER SECTIONS 5727.84 AND 5727.85 OF THE REVISED 8,710
CODE AS ENACTED BY SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd 8,711
GENERAL ASSEMBLY AND ANY SUBSEQUENT ACTS, FOR THE PROPERTY TAX 8,712
LOSS CAUSED BY THE REDUCTION IN THE ASSESSMENT RATES FOR ELECTRIC
AND RURAL ELECTRIC COMPANY TANGIBLE PERSONAL PROPERTY. NOT LATER 8,713
THAN JUNE 30, 2011, THE COMMITTEE SHALL ISSUE A REPORT OF ITS 8,714
FINDINGS, INCLUDING ANY RECOMMENDATIONS FOR PROVIDING ADDITIONAL 8,715
COMPENSATION FOR THE PROPERTY TAX LOSS OR REGARDING REMEDIAL
LEGISLATION, TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF 8,716
THE HOUSE OF REPRESENTATIVES, AT WHICH TIME THE COMMITTEE SHALL 8,717
206
CEASE TO EXIST.
THE DEPARTMENT OF TAXATION AND DEPARTMENT OF EDUCATION 8,719
SHALL PROVIDE SUCH INFORMATION AND ASSISTANCE AS IS REQUIRED FOR 8,720
THE COMMITTEE TO CARRY OUT ITS DUTIES. 8,721
Sec. 5727.86. (A) NOT LATER THAN JANUARY 1, 2002, THE TAX 8,723
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 8,724
MANAGEMENT, FOR ALL TAXING DISTRICTS IN EACH LOCAL TAXING UNIT,
THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D), AND THE 8,725
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E), OF SECTION 8,726
5727.84 OF THE REVISED CODE. BASED ON THAT CERTIFICATION, THE 8,727
DIRECTOR SHALL COMPUTE THE PAYMENTS TO BE MADE TO EACH LOCAL 8,728
TAXING UNIT FOR EACH YEAR ACCORDING TO DIVISIONS (A)(1), (2), AND 8,729
(3) AND DIVISION (E) OF THIS SECTION, AND SHALL DISTRIBUTE THE 8,731
PAYMENTS IN THE MANNER PRESCRIBED BY DIVISION (C) OF THIS 8,732
SECTION. THE CERTIFICATION OF THE FIXED-SUM LEVY LOSS SHALL 8,733
COVER A PERIOD OF TIME SUFFICIENT TO INCLUDE ALL FIXED-SUM LEVIES 8,734
IN EFFECT IN 1998 UNTIL THEY ARE DUE TO EXPIRE. 8,735
(1) EXCEPT AS PROVIDED IN DIVISION (A)(3) OF THIS SECTION, 8,737
FOR FIXED-RATE LEVY LOSSES DETERMINED UNDER DIVISION (D) OF 8,738
SECTION 5727.84 OF THE REVISED CODE, PAYMENTS SHALL BE MADE IN 8,739
EACH OF THE FOLLOWING YEARS AT THE FOLLOWING PERCENTAGE OF THE 8,740
FIXED-RATE LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 8,741
SECTION:
YEAR PERCENTAGE 8,744
2002 100% 8,746
2003 100% 8,747
2004 100% 8,748
2005 100% 8,749
2006 100% 8,750
2007 80% 8,751
2008 80% 8,752
2009 80% 8,753
2010 80% 8,754
2011 80% 8,755
207
2012 66.7% 8,756
2013 53.4% 8,757
2014 40.1% 8,758
2015 26.8% 8,759
2016 13.5% 8,761
2017 AND THEREAFTER 0% 8,763
(2) FOR FIXED-SUM LEVY LOSSES DETERMINED UNDER DIVISION 8,766
(E) OF SECTION 5727.84 OF THE REVISED CODE, ONE HUNDRED PER CENT 8,767
OF THE FIXED-SUM LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 8,768
SECTION FOR PAYMENTS REQUIRED TO BE MADE IN 2002 AND THEREAFTER. 8,769
(3) A LOCAL TAXING UNIT IN A COUNTY OF LESS THAN TWO 8,771
HUNDRED FIFTY SQUARE MILES THAT RECEIVES EIGHTY PER CENT OR MORE 8,772
OF ITS COMBINED GENERAL FUND AND BOND RETIREMENT FUND REVENUES 8,773
FROM PROPERTY TAXES AND ROLLBACKS BASED ON 1997 ACTUAL REVENUES 8,774
AS PRESENTED IN ITS 1999 TAX BUDGET, AND IN WHICH ELECTRIC 8,775
COMPANIES AND RURAL ELECTRIC COMPANIES COMPRISE OVER TWENTY PER 8,776
CENT OF ITS PROPERTY VALUATION, SHALL RECEIVE ONE HUNDRED PER 8,777
CENT OF ITS FIXED-RATE LEVY LOSSES CERTIFIED UNDER DIVISION (A) 8,778
OF THIS SECTION IN YEARS 2002 TO 2016. 8,779
(B) BEGINNING IN 2003, BY THE THIRTY-FIRST DAY OF JANUARY 8,782
OF EACH YEAR, THE TAX COMMISSIONER SHALL REVIEW THE CERTIFICATION 8,783
ORIGINALLY MADE UNDER DIVISION (A) OF THIS SECTION OF THE 8,784
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) OF SECTION 8,785
5727.84 OF THE REVISED CODE. IF THE COMMISSIONER DETERMINES THAT 8,787
A FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 8,788
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 8,789
ALL SUBSEQUENT YEARS SHALL BE MADE. 8,790
(C) PAYMENTS TO LOCAL TAXING UNITS REQUIRED TO BE MADE 8,792
UNDER DIVISIONS (A) AND (E) OF THIS SECTION SHALL BE PAID FROM 8,793
THE LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY 8,795
UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY. 8,796
ONE-HALF OF THE AMOUNT CERTIFIED UNDER THOSE DIVISIONS SHALL BE 8,797
PAID ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS 8,798
UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED 8,800
208
CODE. THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 8,801
DIVISION (A) OF THIS SECTION TO THE PROPER LOCAL TAXING UNIT AS 8,802
IF THEY HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE LOCAL
TAXING UNIT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG ITS 8,803
FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED
AND COLLECTED AS TAXES. AMOUNTS DISTRIBUTED UNDER DIVISION (E) 8,804
OF THIS SECTION SHALL BE CREDITED TO THE GENERAL FUND OF THE 8,805
LOCAL TAXING UNIT THAT RECEIVES THEM. 8,806
(D) BY FEBRUARY 5, 2002, THE TAX COMMISSIONER SHALL 8,808
ESTIMATE THE AMOUNT OF MONEY IN THE LOCAL GOVERNMENT PROPERTY TAX 8,809
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE
PAYMENTS IN THAT MONTH UNDER DIVISION (C) OF THIS SECTION. 8,810
NOTWITHSTANDING DIVISION (A) OF THIS SECTION, THE TAX 8,811
COMMISSIONER MAY PAY ANY LOCAL TAXING UNIT, FROM THOSE EXCESS
FUNDS, NINE AND FOUR-TENTHS TIMES THE AMOUNT COMPUTED FOR 2002 8,812
UNDER DIVISION (A)(1) OF THIS SECTION. A PAYMENT MADE UNDER THIS 8,813
DIVISION SHALL BE IN LIEU OF THE PAYMENT TO BE MADE IN FEBRUARY 8,814
2002 UNDER DIVISION (A)(1) OF THIS SECTION. A LOCAL TAXING UNIT 8,815
RECEIVING A PAYMENT UNDER THIS DIVISION WILL NO LONGER BE 8,816
ENTITLED TO ANY FURTHER PAYMENTS UNDER DIVISION (A)(1) OF THIS 8,817
SECTION.
(E) ON THE THIRTY-FIRST DAY OF JULY OF 2002, 2003, 2004, 8,819
2005, AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY 8,821
OF 2007 AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE 8,822
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT 8,823
NEEDED TO BE DISTRIBUTED FROM THE FUND UNDER DIVISION (A) OF THIS 8,824
SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET AND 8,825
MANAGEMENT SHALL DISTRIBUTE THE EXCESS TO EACH COUNTY AS FOLLOWS: 8,826
(1) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN 8,828
PROPORTION TO EACH COUNTY'S POPULATION. 8,829
(2) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN THE 8,831
PROPORTION THAT THE AMOUNTS DETERMINED UNDER DIVISIONS (D) AND 8,833
(E) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 8,834
DISTRICTS IN THE COUNTY IS OF THE TOTAL AMOUNTS SO DETERMINED FOR 8,835
209
ALL TAXING DISTRICTS IN THE STATE. 8,836
THE AMOUNTS DISTRIBUTED TO EACH COUNTY UNDER THIS DIVISION 8,838
SHALL BE DISTRIBUTED BY THE COUNTY BUDGET COMMISSION TO EACH 8,839
LOCAL TAXING UNIT IN THE COUNTY IN THE PROPORTION THAT THE UNIT'S 8,840
CURRENT TAXES CHARGED AND PAYABLE ARE OF THE TOTAL CURRENT TAXES 8,841
CHARGED AND PAYABLE OF ALL THE LOCAL TAXING UNITS IN THE COUNTY. 8,842
AS USED IN THIS DIVISION, "CURRENT TAXES CHARGED AND PAYABLE" 8,843
MEANS THE TAXES CHARGED AND PAYABLE AS MOST RECENTLY DETERMINED 8,844
FOR LOCAL TAXING UNITS IN THE COUNTY. 8,845
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 8,847
MANAGEMENT, THE EXCESS REMAINING IN THE LOCAL GOVERNMENT PROPERTY 8,848
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 8,849
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 8,850
CREDIT OF THE FUND.
(F) IF THE TOTAL AMOUNT IN THE LOCAL GOVERNMENT PROPERTY 8,852
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 8,853
DIVISION (C) OF THIS SECTION, THE PAYMENTS REQUIRED UNDER 8,854
DIVISION (A)(2) OF THIS SECTION SHALL BE MADE FIRST IN THEIR 8,855
ENTIRETY. AFTER ALL SUCH PAYMENTS ARE MADE, PAYMENTS UNDER 8,856
DIVISIONS (A)(1) AND (3) OF THIS SECTION SHALL BE MADE FROM THE 8,857
BALANCE OF MONEY AVAILABLE IN THE PROPORTION OF EACH LOCAL TAXING 8,858
UNIT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF ALL PAYMENTS TO BE 8,859
MADE UNDER DIVISIONS (A)(1) AND (3) OF THIS SECTION. 8,861
(G) IF ALL OR A PART OF THE TERRITORIES OF TWO OR MORE 8,863
LOCAL TAXING UNITS ARE MERGED, OR UNINCORPORATED TERRITORY OF A 8,864
TOWNSHIP IS ANNEXED BY A MUNICIPAL CORPORATION, THE TAX 8,865
COMMISSIONER SHALL ADJUST THE PAYMENTS MADE UNDER THIS SECTION TO 8,866
EACH OF THE LOCAL TAXING UNITS IN PROPORTION TO THE TAX VALUE 8,867
LOSS APPORTIONED TO THE MERGED OR ANNEXED TERRITORY, OR AS 8,868
OTHERWISE PROVIDED BY A WRITTEN AGREEMENT BETWEEN THE LEGISLATIVE 8,869
AUTHORITIES OF THE LOCAL TAXING UNITS CERTIFIED TO THE TAX 8,870
COMMISSIONER NOT LATER THAN THE FIRST DAY OF JUNE OF THE CALENDAR 8,871
YEAR IN WHICH THE PAYMENT IS TO BE MADE. 8,872
Sec. 5727.87. (A) AS USED IN THIS SECTION: 8,874
210
(1) "ADMINISTRATIVE FEES" MEANS THE DOLLAR PERCENTAGES 8,876
ALLOWED BY THE COUNTY AUDITOR FOR SERVICES OR BY THE COUNTY 8,877
TREASURER AS FEES, OR PAID TO THE CREDIT OF THE REAL ESTATE 8,878
ASSESSMENT FUND, UNDER DIVISIONS (A) AND (B) OF SECTION 319.54 8,879
AND DIVISION (A) OF SECTION 321.26 OF THE REVISED CODE. 8,881
(2) "ADMINISTRATIVE FEE LOSS" MEANS A COUNTY'S LOSS OF 8,883
ADMINISTRATIVE FEES DUE TO ITS TAX VALUE LOSS, DETERMINED AS 8,884
FOLLOWS:
(a) FOR PURPOSES OF THE DETERMINATION MADE UNDER DIVISION 8,886
(B) OF THIS SECTION IN THE YEARS 2002 THROUGH 2006, THE 8,888
ADMINISTRATIVE FEE LOSS SHALL BE COMPUTED BY MULTIPLYING THE 8,889
AMOUNTS DETERMINED FOR ALL TAXING DISTRICTS IN THE COUNTY UNDER 8,890
DIVISIONS (D) AND (E) OF SECTION 5727.84 OF THE REVISED CODE BY 8,892
NINE THOUSAND SIX HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER 8,894
CENT, IF TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 8,895
EXCEEDED ONE HUNDRED FIFTY MILLION DOLLARS, OR ONE AND ONE 8,896
THOUSAND ONE HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER CENT, IF 8,897
TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 WERE ONE 8,898
HUNDRED FIFTY MILLION DOLLARS OR LESS; 8,899
(b) FOR PURPOSES OF THE DETERMINATION UNDER DIVISION (B) 8,901
OF THIS SECTION IN THE YEARS 2007 THROUGH 2011, THE 8,903
ADMINISTRATIVE FEE LOSS SHALL BE DETERMINED BY SUBTRACTING FROM 8,904
THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES COLLECTED IN THE COUNTY 8,905
IN TAX YEAR 1998, THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES 8,906
COLLECTED IN THE COUNTY IN THE CURRENT CALENDAR YEAR. 8,907
(B) NOT LATER THAN THE FIRST DAY OF JUNE OF 2002 THROUGH 8,909
2011, THE COUNTY AUDITOR SHALL DETERMINE THE ADMINISTRATIVE FEE 8,912
LOSS FOR THE COUNTY AND CERTIFY IT TO THE COUNTY BUDGET 8,913
COMMISSION. NOTWITHSTANDING DIVISIONS (C), (D), AND (E) OF 8,914
SECTION 5727.85 AND DIVISION (C) OF SECTION 5727.86 OF THE 8,916
REVISED CODE, PRIOR TO DISTRIBUTION BY THE COUNTY TREASURER OF 8,918
THE PAYMENTS PROVIDED UNDER THOSE DIVISIONS, THE COUNTY BUDGET 8,919
COMMISSION SHALL DEDUCT FROM THOSE PAYMENTS THE AMOUNT OF THE 8,920
ADMINISTRATIVE FEE LOSS CERTIFIED BY THE COUNTY AUDITOR, AS 8,921
211
FOLLOWS:
(1) SEVENTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,923
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISIONS (C), (D), 8,925
AND (E) OF SECTION 5727.85 OF THE REVISED CODE. 8,926
(2) THIRTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 8,928
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISION (C) OF 8,929
SECTION 5727.86 OF THE REVISED CODE. 8,930
(C) ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,932
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,933
REVISED CODE IN THE YEARS 2002 THROUGH 2011, THE COUNTY BUDGET 8,935
COMMISSION SHALL PAY ONE-HALF OF THE AMOUNT OF THE ADMINISTRATIVE 8,936
FEE LOSS TO THE COUNTY AUDITOR, COUNTY TREASURER, OR REAL ESTATE 8,937
ASSESSMENT FUND AS IF THE AMOUNT HAD BEEN ALLOWED AS 8,938
ADMINISTRATIVE FEES, AND SHALL DEPOSIT THE AMOUNT IN THE SAME 8,939
FUNDS AS IF ALLOWED AS ADMINISTRATIVE FEES. 8,940
AFTER PAYMENT OF THE ADMINISTRATIVE FEE LOSS ON OR BEFORE 8,942
AUGUST 10, 2011, ALL PAYMENTS UNDER THIS SECTION SHALL CEASE. 8,943
Sec. 5727.88. THE TAX COMMISSIONER SHALL ADMINISTER 8,945
SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE AND MAY ADOPT 8,948
SUCH RULES AS ARE NECESSARY TO ADMINISTER THOSE SECTIONS. UPON 8,950
REQUEST OF THE TAX COMMISSIONER, THE PUBLIC UTILITIES COMMISSION
SHALL ASSIST THE TAX COMMISSIONER BY PROVIDING INFORMATION 8,951
REGARDING ANY ELECTRIC DISTRIBUTION COMPANY THAT IS SUBJECT TO 8,952
REGULATION BY THE COMMISSION. 8,953
Sec. 5727.89. (A) THE TAX COMMISSIONER MAY MAKE AN 8,956
ASSESSMENT, BASED ON ANY INFORMATION IN THE COMMISSIONER'S
POSSESSION, AGAINST ANY ELECTRIC DISTRIBUTION COMPANY, 8,957
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER THAT FAILS TO 8,960
FILE A RETURN OR PAY ANY TAX, INTEREST, OR ADDITIONAL CHARGE AS 8,961
REQUIRED BY SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE. 8,963
WHEN INFORMATION IN THE POSSESSION OF THE TAX COMMISSIONER 8,965
INDICATES THAT A PERSON LIABLE FOR THE TAX IMPOSED BY SECTION 8,967
5727.81 OF THE REVISED CODE HAS NOT PAID THE FULL AMOUNT OF TAX 8,970
DUE, THE COMMISSIONER MAY AUDIT A REPRESENTATIVE SAMPLE OF THE 8,971
212
PERSON'S BUSINESS AND MAY ISSUE AN ASSESSMENT BASED ON THE AUDIT. 8,972
THE COMMISSIONER SHALL GIVE THE PERSON ASSESSED WRITTEN NOTICE OF 8,973
THE ASSESSMENT BY PERSONAL SERVICE OR CERTIFIED MAIL. 8,974
THE TAX COMMISSIONER MAY ISSUE AN ASSESSMENT FOR WHICH THE 8,976
TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WAS DUE AND 8,977
UNPAID ON THE DATE THE PERSON WAS INFORMED BY AN AGENT OF THE TAX 8,979
COMMISSIONER OF AN INVESTIGATION OR AUDIT OF THE PERSON. ANY 8,980
PAYMENT OF THE TAX FOR THE PERIOD COVERED BY THE ASSESSMENT, 8,981
AFTER THE PERSON IS SO INFORMED, SHALL BE CREDITED AGAINST THE 8,982
ASSESSMENT. 8,983
A PENALTY OF FIFTEEN PER CENT SHALL BE ADDED TO ALL AMOUNTS 8,986
ASSESSED UNDER THIS SECTION. THE COMMISSIONER MAY ADOPT RULES 8,987
PROVIDING FOR THE REMISSION OF PENALTIES.
(B) UNLESS THE PARTY ASSESSED FILES WITH THE TAX 8,990
COMMISSIONER WITHIN THIRTY DAYS AFTER SERVICE OF THE NOTICE OF 8,991
ASSESSMENT, EITHER PERSONALLY OR BY CERTIFIED MAIL, A WRITTEN 8,992
PETITION FOR REASSESSMENT SIGNED BY THE PARTY ASSESSED OR THE 8,993
PARTY'S AUTHORIZED AGENT HAVING KNOWLEDGE OF THE FACTS, THE 8,994
ASSESSMENT IS FINAL AND THE AMOUNT OF THE ASSESSMENT IS DUE AND 8,995
PAYABLE FROM THE PARTY ASSESSED TO THE TREASURER OF STATE. THE 8,996
PETITION SHALL INDICATE THE OBJECTIONS OF THE PARTY ASSESSED, BUT 8,997
ADDITIONAL OBJECTIONS MAY BE RAISED IN WRITING PRIOR TO THE DATE 8,998
SHOWN ON THE FINAL DETERMINATION OF THE TAX COMMISSIONER. THE 8,999
COMMISSIONER SHALL GRANT THE PETITIONER A HEARING ON THE 9,000
PETITION, UNLESS WAIVED BY THE PETITIONER. 9,001
(C) THE COMMISSIONER MAY MAKE ANY CORRECTION TO THE 9,004
ASSESSMENT THAT THE COMMISSIONER FINDS PROPER AND SHALL ISSUE A 9,005
FINAL DETERMINATION THEREON. THE COMMISSIONER SHALL SERVE A COPY 9,006
OF THE FINAL DETERMINATION ON THE PETITIONER EITHER BY PERSONAL 9,007
SERVICE OR BY CERTIFIED MAIL, AND THE COMMISSIONER'S DECISION IN 9,008
THE MATTER IS FINAL, SUBJECT TO APPEAL UNDER SECTION 5717.02 OF 9,009
THE REVISED CODE. 9,011
(D) AFTER AN ASSESSMENT BECOMES FINAL, IF ANY PORTION OF 9,014
THE ASSESSMENT, INCLUDING ACCRUED INTEREST, REMAINS UNPAID, A 9,015
213
CERTIFIED COPY OF THE COMMISSIONER'S ENTRY MAKING THE ASSESSMENT 9,016
FINAL MAY BE FILED IN THE OFFICE OF THE CLERK OF THE COURT OF 9,017
COMMON PLEAS IN THE COUNTY IN WHICH THE PARTY ASSESSED RESIDES OR 9,018
IN WHICH THE PARTY'S BUSINESS IS CONDUCTED. IF THE PARTY 9,019
ASSESSED MAINTAINS NO PLACE OF BUSINESS IN THIS STATE AND IS NOT 9,020
A RESIDENT OF THIS STATE, THE CERTIFIED COPY OF THE ENTRY MAY BE 9,022
FILED IN THE OFFICE OF THE CLERK OF THE COURT OF COMMON PLEAS OF 9,023
FRANKLIN COUNTY. 9,024
THE CLERK, IMMEDIATELY UPON THE FILING OF THE ENTRY, SHALL 9,026
ENTER A JUDGMENT FOR THE STATE AGAINST THE PERSON ASSESSED IN THE 9,028
AMOUNT SHOWN ON THE ENTRY. THE JUDGMENT MAY BE FILED BY THE
CLERK IN A LOOSE-LEAF BOOK ENTITLED "SPECIAL JUDGMENTS FOR THE 9,029
KILOWATT-HOUR TAX," AND SHALL HAVE THE SAME EFFECT AS OTHER 9,030
JUDGMENTS. EXECUTION SHALL ISSUE UPON THE JUDGMENT AT THE 9,031
REQUEST OF THE TAX COMMISSIONER, AND ALL LAWS APPLICABLE TO SALES 9,032
ON EXECUTION SHALL APPLY TO SALES MADE UNDER THE JUDGMENT. 9,033
THE PORTION OF THE ASSESSMENT NOT PAID WITHIN THIRTY DAYS 9,035
AFTER THE DAY THE ASSESSMENT WAS ISSUED SHALL BEAR INTEREST AT 9,036
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 9,039
CODE FROM THE DAY THE TAX COMMISSIONER ISSUES THE ASSESSMENT 9,040
UNTIL THE DAY THE ASSESSMENT IS PAID. INTEREST SHALL BE PAID IN 9,041
THE SAME MANNER AS THE TAX AND MAY BE COLLECTED BY THE ISSUANCE 9,042
OF AN ASSESSMENT UNDER THIS SECTION. 9,043
(E) IF THE TAX COMMISSIONER BELIEVES THAT COLLECTION OF 9,046
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WILL BE 9,048
JEOPARDIZED UNLESS PROCEEDINGS TO COLLECT OR SECURE COLLECTION OF 9,049
THE TAX ARE INSTITUTED WITHOUT DELAY, THE COMMISSIONER MAY ISSUE 9,050
A JEOPARDY ASSESSMENT AGAINST THE ELECTRIC DISTRIBUTION COMPANY, 9,051
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER LIABLE FOR THE 9,054
TAX. UPON ISSUANCE OF THE JEOPARDY ASSESSMENT, THE COMMISSIONER 9,055
IMMEDIATELY SHALL FILE AN ENTRY WITH THE CLERK OF THE COURT OF 9,056
COMMON PLEAS IN THE MANNER PRESCRIBED BY DIVISION (D) OF THIS 9,057
SECTION. NOTICE OF THE JEOPARDY ASSESSMENT SHALL BE SERVED ON 9,058
THE PARTY ASSESSED OR THE PARTY'S LEGAL REPRESENTATIVE WITHIN 9,059
214
FIVE DAYS OF THE FILING OF THE ENTRY WITH THE CLERK. THE TOTAL 9,060
AMOUNT ASSESSED IS IMMEDIATELY DUE AND PAYABLE, UNLESS THE PARTY 9,061
ASSESSED FILES A PETITION FOR REASSESSMENT IN ACCORDANCE WITH 9,062
DIVISION (B) OF THIS SECTION AND PROVIDES SECURITY IN A FORM 9,064
SATISFACTORY TO THE COMMISSIONER AND IN AN AMOUNT SUFFICIENT TO 9,065
SATISFY THE UNPAID BALANCE OF THE ASSESSMENT. FULL OR PARTIAL 9,066
PAYMENT OF THE ASSESSMENT DOES NOT PREJUDICE THE COMMISSIONER'S 9,067
CONSIDERATION OF THE PETITION FOR REASSESSMENT. 9,068
(F) ALL MONEY COLLECTED BY THE TAX COMMISSIONER UNDER THIS 9,071
SECTION SHALL BE PAID TO THE TREASURER OF STATE, AND WHEN PAID 9,072
SHALL BE CONSIDERED AS REVENUE ARISING FROM THE TAX IMPOSED BY 9,073
SECTION 5727.81 OF THE REVISED CODE. 9,075
Sec. 5727.90. NO ASSESSMENT OF THE TAX IMPOSED BY SECTION 9,077
5727.81 OF THE REVISED CODE SHALL BE MADE BY THE TAX COMMISSIONER 9,080
MORE THAN FOUR YEARS AFTER THE DATE ON WHICH THE RETURN FOR THE 9,081
PERIOD ASSESSED WAS DUE OR FILED, WHICHEVER DATE IS LATER. THIS 9,082
SECTION DOES NOT BAR AN ASSESSMENT WHEN ANY OF THE FOLLOWING 9,083
OCCUR:
(A) THE PARTY ASSESSED FAILED TO FILE A RETURN AS REQUIRED 9,086
BY SECTION 5727.82 OF THE REVISED CODE; 9,088
(B) THE PARTY ASSESSED KNOWINGLY FILED A FALSE OR 9,091
FRAUDULENT RETURN;
(C) THE PARTY ASSESSED AND THE TAX COMMISSIONER WAIVED IN 9,094
WRITING THE TIME LIMITATION. 9,095
Sec. 5727.91. (A) THE TREASURER OF STATE SHALL REFUND THE 9,098
AMOUNT OF TAX PAID UNDER SECTION 5727.81 OF THE REVISED CODE THAT 9,100
WAS PAID ILLEGALLY OR ERRONEOUSLY, OR PAID ON AN ILLEGAL OR 9,101
ERRONEOUS ASSESSMENT. AN ELECTRIC DISTRIBUTION COMPANY OR 9,102
SELF-ASSESSING PURCHASER SHALL FILE AN APPLICATION FOR A REFUND 9,103
WITH THE TAX COMMISSIONER ON A FORM PRESCRIBED BY THE
COMMISSIONER, WITHIN FOUR YEARS OF THE ILLEGAL OR ERRONEOUS 9,104
PAYMENT OF THE TAX. 9,105
UPON THE FILING OF THE APPLICATION, THE COMMISSIONER SHALL 9,107
DETERMINE THE AMOUNT OF REFUND DUE AND CERTIFY THAT AMOUNT TO THE 9,109
215
DIRECTOR OF BUDGET AND MANAGEMENT AND THE TREASURER OF STATE FOR 9,110
PAYMENT FROM THE TAX REFUND FUND UNDER SECTION 5703.052 OF THE 9,111
REVISED CODE. IF THE APPLICATION FOR REFUND IS FOR TAXES PAID ON 9,113
AN ILLEGAL OR ERRONEOUS ASSESSMENT, THE TAX COMMISSIONER SHALL 9,114
INCLUDE IN THE CERTIFIED AMOUNT INTEREST CALCULATED AT THE RATE 9,115
PER ANNUM UNDER SECTION 5703.47 OF THE REVISED CODE FROM THE DATE 9,117
OF OVERPAYMENT TO THE DATE OF THE COMMISSIONER'S CERTIFICATION. 9,119
(B) IF AN ELECTRIC DISTRIBUTION COMPANY ENTITLED TO A 9,122
REFUND OF TAXES UNDER THIS SECTION IS INDEBTED TO THE STATE FOR 9,123
ANY TAX OR FEE ADMINISTERED BY THE TAX COMMISSIONER THAT IS PAID 9,124
TO THE STATE OR ANY CHARGE, PENALTY, OR INTEREST ARISING FROM 9,126
SUCH A TAX OR FEE, THE AMOUNT REFUNDABLE MAY BE APPLIED IN 9,127
SATISFACTION OF THE DEBT. IF THE AMOUNT REFUNDABLE IS LESS THAN 9,128
THE AMOUNT OF THE DEBT, IT MAY BE APPLIED IN PARTIAL SATISFACTION 9,129
OF THE DEBT. IF THE AMOUNT REFUNDABLE IS GREATER THAN THE AMOUNT 9,130
OF THE DEBT, THE AMOUNT REMAINING AFTER SATISFACTION OF THE DEBT 9,131
SHALL BE REFUNDED. IF THE ELECTRIC DISTRIBUTION COMPANY HAS MORE 9,132
THAN ONE SUCH DEBT, ANY DEBT SUBJECT TO SECTION 5739.33 OR 9,133
DIVISION (G) OF SECTION 5747.07 OF THE REVISED CODE SHALL BE 9,136
SATISFIED FIRST. THIS SECTION APPLIES ONLY TO DEBTS THAT HAVE 9,137
BECOME FINAL. 9,138
(C) ANY ELECTRIC DISTRIBUTION COMPANY THAT CAN 9,141
SUBSTANTIATE TO THE TAX COMMISSIONER THAT THE TAX IMPOSED BY 9,142
SECTION 5727.81 OF THE REVISED CODE WAS PAID ON ELECTRICITY 9,144
DISTRIBUTED VIA WIRES AND CONSUMED AT A LOCATION OUTSIDE OF THIS 9,145
STATE MAY CLAIM A REFUND IN THE MANNER AND WITHIN THE TIME PERIOD 9,146
PRESCRIBED IN DIVISION (A) OF THIS SECTION. 9,148
(D) BEFORE A REFUND IS ISSUED UNDER THIS SECTION, AN 9,150
ELECTRIC DISTRIBUTION COMPANY SHALL CERTIFY, AS PRESCRIBED BY THE 9,151
TAX COMMISSIONER, THAT IT EITHER DID NOT INCLUDE THE TAX IMPOSED 9,152
BY SECTION 5727.81 OF THE REVISED CODE IN ITS DISTRIBUTION CHARGE 9,153
TO AN ELECTRIC CUSTOMER UPON WHICH A REFUND OF THE TAX IS 9,154
CLAIMED, OR IT HAS REFUNDED OR CREDITED TO THE ELECTRIC CUSTOMER 9,155
THE EXCESS DISTRIBUTION CHARGE RELATED TO THE TAX THAT WAS 9,156
216
ERRONEOUSLY INCLUDED IN THE ELECTRIC CUSTOMER'S DISTRIBUTION
CHARGE. 9,157
Sec. 5727.92. EVERY PERSON LIABLE FOR THE TAX IMPOSED BY 9,160
SECTION 5727.81 OF THE REVISED CODE SHALL KEEP COMPLETE AND 9,162
ACCURATE RECORDS OF ALL ELECTRIC DISTRIBUTIONS AND OTHER RECORDS 9,163
AS REQUIRED BY THE TAX COMMISSIONER. THE RECORDS SHALL BE 9,165
PRESERVED FOR FOUR YEARS AFTER THE RETURN FOR THE TAXES TO WHICH 9,166
THE RECORDS PERTAIN IS DUE OR FILED, WHICHEVER IS LATER. THE 9,167
RECORDS SHALL BE AVAILABLE FOR INSPECTION BY THE TAX COMMISSIONER 9,168
OR THE COMMISSIONER'S AUTHORIZED AGENT, UPON REQUEST OF THE 9,169
COMMISSIONER OR SUCH AGENT.
Sec. 5727.93. (A) NO PERSON SHALL DISTRIBUTE ELECTRICITY 9,172
TO A METER OF AN END USER IN THIS STATE WHO IS NOT REGISTERED 9,173
WITH THE TAX COMMISSIONER AS AN ELECTRIC DISTRIBUTION COMPANY. 9,174
(B) EACH PERSON REQUIRED TO REGISTER UNDER DIVISION (A) OF 9,178
THIS SECTION SHALL REGISTER PRIOR TO DISTRIBUTING ELECTRICITY TO 9,179
A METER OF AN END USER IN THIS STATE. THE TAX COMMISSIONER SHALL 9,180
PRESCRIBE THE FORM OF THE REGISTRATION APPLICATION. THE
COMMISSIONER SHALL ASSIGN AN IDENTIFICATION NUMBER TO EACH 9,181
REGISTRATION AND NOTIFY THE REGISTRANT OF THAT NUMBER. THE 9,182
REGISTRATION SHALL REMAIN IN EFFECT UNTIL CANCELED IN WRITING BY 9,183
THE REGISTRANT UPON THE CESSATION OF DISTRIBUTING ELECTRICITY TO 9,184
A METER OF AN END USER IN THIS STATE OR UNTIL SUCH REGISTRATION 9,185
IS DENIED, REVOKED, OR CANCELED BY THE COMMISSIONER. A 9,186
REGISTRATION MAY BE REVOKED OR CANCELED BY THE TAX COMMISSIONER 9,187
AS PROVIDED BY CHAPTER 119. OF THE REVISED CODE, FOR FAILURE OF 9,190
AN ELECTRIC DISTRIBUTION COMPANY TO PAY THE TAX IMPOSED BY 9,191
SECTION 5727.81 OF THE REVISED CODE OR TO COMPLY WITH SECTIONS 9,193
5727.80 TO 5727.95 OF THE REVISED CODE. AN ELECTRIC DISTRIBUTION 9,196
COMPANY WHOSE REGISTRATION IS DENIED MAY PETITION FOR A HEARING, 9,197
IN ACCORDANCE WITH THE PROCEDURES SET FORTH IN DIVISIONS (B) AND 9,199
(C) OF SECTION 5727.89 OF THE REVISED CODE, NOT LATER THAN THIRTY 9,202
DAYS AFTER RECEIVING THE DENIAL, AND THE FINAL DETERMINATION IS 9,203
SUBJECT TO APPEAL UNDER SECTION 5717.02 OF THE REVISED CODE. 9,206
217
(C) THE TAX COMMISSIONER SHALL MAINTAIN A LIST OF THE 9,209
ELECTRIC DISTRIBUTION COMPANIES REGISTERED UNDER THIS SECTION. 9,210
THE LIST SHALL CONTAIN THE NAME AND ADDRESS OF EACH COMPANY 9,211
REGISTERED BY THE COMMISSIONER. THE LIST AND SUBSEQUENT UPDATES 9,212
OF IT SHALL BE OPEN TO PUBLIC INSPECTION.
Sec. 5727.94. EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED 9,214
TO PAY THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 9,217
SHALL PROVIDE TO ITS CUSTOMERS IN THIS STATE THE STATEMENT 9,218
REQUIRED BY SECTION 4933.33 OF THE REVISED CODE. 9,220
Sec. 5727.95. (A) NO ELECTRIC DISTRIBUTION COMPANY OR 9,222
SELF-ASSESSING PURCHASER SHALL FAIL TO FILE ANY RETURN OR REPORT 9,224
REQUIRED TO BE FILED PURSUANT TO SECTION 5727.82 OF THE REVISED 9,226
CODE, OR FILE OR CAUSE TO BE FILED ANY INCOMPLETE, FALSE, OR 9,227
FRAUDULENT RETURN, REPORT, OR STATEMENT, OR AID OR ABET ANOTHER 9,228
IN THE FILING OF ANY FALSE OR FRAUDULENT RETURN, REPORT, OR 9,229
STATEMENT.
(B) NO PERSON SHALL DISTRIBUTE ELECTRICITY TO A METER OF 9,232
AN END USER IN THIS STATE WITHOUT HOLDING A VALID REGISTRATION 9,233
ISSUED UNDER SECTION 5727.93 OF THE REVISED CODE. 9,235
Sec. 5727.99. (A) Whoever violates section 5727.55 of the 9,244
Revised Code shall be fines FINED not less than one hundred nor 9,245
more than one thousand dollars. 9,246
(B) Whoever violates section 5727.71 of the Revised Code 9,248
shall be fined not more than five hundred dollars and imprisoned 9,249
not more than thirty days.
(C) Whoever violates section 5727.72 or 5727.73 of the 9,251
Revised Code shall be fined not more than five hundred dollars or 9,253
imprisoned not more than thirty days, or both. 9,254
(D) WHOEVER VIOLATES SECTIONS 5727.80 TO 5727.83, OR 9,256
SECTIONS 5727.88 TO 5727.95 OF THE REVISED CODE OR ANY RULE 9,259
ADOPTED BY THE TAX COMMISSIONER UNDER THOSE SECTIONS, IS GUILTY 9,260
OF A MISDEMEANOR OF THE FIRST DEGREE ON THE FIRST OFFENSE; ON 9,261
EACH SUBSEQUENT OFFENSE, THE PERSON IS GUILTY OF A FELONY OF THE 9,262
FOURTH DEGREE.
218
Sec. 5733.04. As used in this chapter: 9,271
(A) "Issued and outstanding shares of stock" applies to 9,273
nonprofit corporations, as provided in section 5733.01 of the 9,274
Revised Code, and includes, but is not limited to, membership 9,275
certificates and other instruments evidencing ownership of an 9,276
interest in such nonprofit corporations, and with respect to a 9,277
financial institution which THAT does not have capital stock, 9,278
"issued and outstanding shares of stock" includes, but is not 9,280
limited to, ownership interests of depositors in the capital 9,281
employed in such an institution. 9,282
(B) "Taxpayer" means a corporation subject to the tax 9,284
imposed by section 5733.06 of the Revised Code. 9,285
(C) "Resident" means a corporation organized under the 9,287
laws of this state. 9,288
(D) "Commercial domicile" means the principal place from 9,290
which the trade or business of the taxpayer is directed or 9,291
managed. 9,292
(E) "Taxable year" means the period prescribed by division 9,295
(A) of section 5733.031 of the Revised Code upon the net income 9,297
of which the value of the taxpayer's issued and outstanding 9,298
shares of stock is determined under division (B) of section 9,300
5733.05 of the Revised Code or the period prescribed by division 9,301
(A) of section 5733.031 of the Revised Code that immediately 9,303
precedes the date as of which the total value of the corporation 9,305
is determined under division (A) or (C) of section 5733.05 of the 9,306
Revised Code.
(F) "Tax year" means the calendar year in and for which 9,308
the tax imposed by section 5733.06 of the Revised Code is 9,310
required to be paid.
(G) "Internal Revenue Code" means the "Internal Revenue 9,312
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 9,313
(H) "Federal income tax" means the income tax imposed by 9,315
the Internal Revenue Code. 9,316
(I) Except as provided in section 5733.058 of the Revised 9,318
219
Code, "net income" means the taxpayer's taxable income before 9,320
operating loss deduction and special deductions, as required to 9,321
be reported for the taxpayer's taxable year under the Internal 9,322
Revenue Code, subject to the following adjustments:
(1)(a) Deduct any net operating loss incurred in any 9,324
taxable years ending in 1971 or thereafter but exclusive of any 9,325
net operating loss incurred in taxable years ending prior to 9,326
January 1, 1971. This deduction shall not be allowed in any tax 9,327
year commencing before December 31, 1973, but shall be carried 9,328
over and allowed in tax years commencing after December 31, 1973, 9,329
until fully utilized in the next succeeding taxable year or years 9,330
in which the taxpayer has net income, but in no case for more 9,331
than the designated carryover period as described in division 9,332
(I)(1)(b) of this section. The amount of such net operating 9,333
loss, as determined under the allocation and apportionment 9,334
provisions of section 5733.051 and division (B) of section 9,335
5733.05 of the Revised Code for the year in which the net 9,336
operating loss occurs, shall be deducted from net income, as 9,337
determined under the allocation and apportionment provisions of 9,338
section 5733.051 and division (B) of section 5733.05 of the 9,339
Revised Code, to the extent necessary to reduce net income to 9,340
zero with the remaining unused portion of the deduction, if any, 9,341
carried forward to the remaining years of the designated 9,342
carryover period as described in division (I)(1)(b) of this 9,343
section, or until fully utilized, whichever occurs first. 9,344
(b) For losses incurred in taxable years ending on or 9,346
before December 31, 1981, the designated carryover period shall 9,347
be the five consecutive taxable years after the taxable year in 9,348
which the net operating loss occurred. For losses incurred in 9,349
taxable years ending on or after January 1, 1982, the designated 9,350
carryover period shall be the fifteen consecutive taxable years 9,351
after the taxable year in which the net operating loss occurs. 9,352
(c) The tax commissioner may require a taxpayer to furnish 9,354
any information necessary to support a claim for deduction under 9,355
220
division (I)(1)(a) of this section and no deduction shall be 9,356
allowed unless the information is furnished. 9,357
(2) Deduct any amount included in net income by 9,359
application of section 78 or 951 of the Internal Revenue Code, 9,360
amounts received for royalties, technical or other services 9,361
derived from sources outside the United States, and dividends 9,362
received from a subsidiary, associate, or affiliated corporation 9,363
that neither transacts any substantial portion of its business 9,364
nor regularly maintains any substantial portion of its assets 9,365
within the United States. For purposes of determining net 9,366
foreign source income deductible under division (I)(2) of this 9,367
section, the amount of gross income from all such sources other 9,368
than income derived by application of section 78 or 951 of the 9,369
Internal Revenue Code shall be reduced by: 9,370
(a) The amount of any reimbursed expenses for personal 9,372
services performed by employees of the taxpayer for the 9,373
subsidiary, associate, or affiliated corporation; 9,374
(b) Ten per cent of the amount of royalty income and 9,376
technical assistance fees; 9,377
(c) Fifteen per cent of the amount of dividends and all 9,379
other income. 9,380
The amounts described in divisions (I)(2)(a) to (c) of this 9,382
section are deemed to be the expenses attributable to the 9,383
production of deductible foreign source income unless the 9,384
taxpayer shows, by clear and convincing evidence, less actual 9,385
expenses, or the tax commissioner shows, by clear and convincing 9,386
evidence, more actual expenses. 9,387
(3) Add any loss or deduct any gain resulting from the 9,389
sale, exchange, or other disposition of a capital asset, or an 9,390
asset described in section 1231 of the Internal Revenue Code, to 9,391
the extent that such loss or gain occurred prior to the first 9,392
taxable year on which the tax provided for in section 5733.06 of 9,393
the Revised Code is computed on the corporation's net income. 9,394
For purposes of division (I)(3) of this section, the amount of 9,395
221
the prior loss or gain shall be measured by the difference 9,396
between the original cost or other basis of the asset and the 9,397
fair market value as of the beginning of the first taxable year 9,398
on which the tax provided for in section 5733.06 of the Revised 9,399
Code is computed on the corporation's net income. At the option 9,400
of the taxpayer, the amount of the prior loss or gain may be a 9,401
percentage of the gain or loss, which percentage shall be 9,402
determined by multiplying the gain or loss by a fraction, the 9,403
numerator of which is the number of months from the acquisition 9,404
of the asset to the beginning of the first taxable year on which 9,405
the fee provided in section 5733.06 of the Revised Code is 9,406
computed on the corporation's net income, and the denominator of 9,407
which is the number of months from the acquisition of the asset 9,408
to the sale, exchange, or other disposition of the asset. THE 9,410
ADJUSTMENTS DESCRIBED IN THIS DIVISION DO NOT APPLY TO ANY GAIN 9,411
OR LOSS WHERE THE GAIN OR LOSS IS RECOGNIZED BY A QUALIFYING 9,412
TAXPAYER, AS DEFINED IN SECTION 5733.0510 OF THE REVISED CODE, 9,413
WITH RESPECT TO A QUALIFYING TAXABLE EVENT, AS DEFINED IN THAT 9,415
SECTION.
(4) Deduct the dividend received deduction provided by 9,417
section 243 of the Internal Revenue Code. 9,418
(5) Deduct any interest or interest equivalent on public 9,420
obligations and purchase obligations to the extent included in 9,421
federal taxable income. As used in divisions (I)(5) and (6) of 9,422
this section, "public obligations," "purchase obligations," and 9,423
"interest or interest equivalent" have the same meanings as in 9,424
section 5709.76 of the Revised Code. 9,425
(6) Add any loss or deduct any gain resulting from the 9,427
sale, exchange, or other disposition of public obligations to the 9,428
extent included in federal taxable income. 9,429
(7) To the extent not otherwise allowed, deduct any 9,431
dividends or distributions received by a taxpayer from a public 9,432
utility, EXCLUDING AN ELECTRIC COMPANY, if the taxpayer owns at 9,433
least eighty per cent of the issued and outstanding common stock 9,435
222
of the PUBLIC utility. As used in division (I)(7) of this 9,436
section, "public utility" or "utility" means a public utility as 9,437
defined in Chapter 5727. of the Revised Code, whether or not the 9,438
PUBLIC utility is doing business in the state.
(8) To the extent not otherwise allowed, deduct any 9,440
dividends received by a taxpayer from an insurance company, if 9,441
the taxpayer owns at least eighty per cent of the issued and 9,442
outstanding common stock of the insurance company. As used in 9,443
division (I)(8) of this section, "insurance company" means an 9,444
insurance company which THAT is taxable under Chapter 5725. or 9,445
5729. of the Revised Code. 9,446
(9) Deduct expenditures for modifying existing buildings 9,448
or structures to meet American national standards institute 9,449
standard A-117.1-1961 (R-1971), as amended; provided, that no 9,450
deduction shall be allowed to the extent that such deduction is 9,451
not permitted under federal law or under rules of the tax 9,452
commissioner. Those deductions as are allowed may be taken over 9,453
a period of five years. The tax commissioner shall adopt rules 9,454
under Chapter 119. of the Revised Code establishing reasonable 9,455
limitations on the extent that expenditures for modifying 9,456
existing buildings or structures are attributable to the purpose 9,457
of making the buildings or structures accessible to and usable by 9,458
physically handicapped persons. 9,459
(10) Deduct the amount of wages and salaries, if any, not 9,461
otherwise allowable as a deduction but that would have been 9,462
allowable as a deduction in computing federal taxable income 9,463
before operating loss deduction and special deductions for the 9,464
taxable year, had the targeted jobs credit allowed and determined 9,465
under sections 38, 51, and 52 of the Internal Revenue Code not 9,466
been in effect. 9,467
(11) Deduct net interest income on obligations of the 9,469
United States and its territories and possessions or of any 9,470
authority, commission, or instrumentality of the United States to 9,471
the extent the laws of the United States prohibit inclusion of 9,472
223
the net interest for purposes of determining the value of the 9,473
taxpayer's issued and outstanding shares of stock under division 9,474
(B) of section 5733.05 of the Revised Code. As used in division 9,475
(I)(11) of this section, "net interest" means interest net of any 9,476
expenses taken on the federal income tax return that would not 9,477
have been allowed under section 265 of the Internal Revenue Code 9,478
if the interest were exempt from federal income tax. 9,479
(12)(a) Except as set forth in division (I)(12)(d) of this 9,481
section, to the extent not included in computing the taxpayer's 9,482
federal taxable income before operating loss deduction and 9,483
special deductions, add gains and deduct losses from direct or 9,484
indirect sales, exchanges, or other dispositions, made by a 9,485
related entity who is not a taxpayer, of the taxpayer's indirect, 9,486
beneficial, or constructive investment in the stock or debt of 9,487
another entity, unless the gain or loss has been included in 9,488
computing the federal taxable income before operating loss 9,489
deduction and special deductions of another taxpayer with a more 9,490
closely related investment in the stock or debt of the other 9,491
entity. The amount of gain added or loss deducted shall not 9,492
exceed the product obtained by multiplying such gain or loss by 9,493
the taxpayer's proportionate share, directly, indirectly, 9,494
beneficially, or constructively, of the outstanding stock of the 9,495
related entity immediately prior to the direct or indirect sale, 9,496
exchange, or other disposition. 9,497
(b) Except as set forth in division (I)(12)(e) of this 9,499
section, to the extent not included in computing the taxpayer's 9,500
federal taxable income before operating loss deduction and 9,501
special deductions, add gains and deduct losses from direct or 9,502
indirect sales, exchanges, or other dispositions made by a 9,503
related entity who is not a taxpayer, of intangible property 9,504
other than stock, securities, and debt, if such property was 9,505
owned, or used in whole or in part, at any time prior to or at 9,506
the time of the sale, exchange, or disposition by either the 9,507
taxpayer or by a related entity that was a taxpayer at any time 9,508
224
during the related entity's ownership or use of such property, 9,509
unless the gain or loss has been included in computing the 9,510
federal taxable income before operating loss deduction and 9,511
special deductions of another taxpayer with a more closely 9,512
related ownership or use of such intangible property. The 9,513
amount of gain added or loss deducted shall not exceed the 9,514
product obtained by multiplying such gain or loss by the 9,515
taxpayer's proportionate share, directly, indirectly, 9,516
beneficially, or constructively, of the outstanding stock of the 9,517
related entity immediately prior to the direct or indirect sale, 9,518
exchange, or other disposition. 9,519
(c) As used in division (I)(12) of this section, "related 9,521
entity" means those entities described in divisions (I)(12)(c)(i) 9,522
to (iii) of this section: 9,523
(i) An individual stockholder, or a member of the 9,525
stockholder's family enumerated in section 318 of the Internal 9,526
Revenue Code, if the stockholder and the members of the 9,527
stockholder's family own, directly, indirectly, beneficially, or 9,528
constructively, in the aggregate, at least fifty per cent of the 9,529
value of the taxpayer's outstanding stock; 9,530
(ii) A stockholder, or a stockholder's partnership, 9,532
estate, trust, or corporation, if the stockholder and the 9,533
stockholder's partnerships, estates, trusts, and corporations own 9,534
directly, indirectly, beneficially, or constructively, in the 9,535
aggregate, at least fifty per cent of the value of the taxpayer's 9,536
outstanding stock; 9,537
(iii) A corporation, or a party related to the corporation 9,539
in a manner that would require an attribution of stock from the 9,540
corporation to the party or from the party to the corporation 9,541
under division (I)(12)(c)(iv) of this section, if the taxpayer 9,542
owns, directly, indirectly, beneficially, or constructively, at 9,543
least fifty per cent of the value of the corporation's 9,544
outstanding stock. 9,545
(iv) The attribution rules of section 318 of the Internal 9,547
225
Revenue Code apply for purposes of determining whether the 9,548
ownership requirements in divisions (I)(12)(c)(i) to (iii) of 9,549
this section have been met. 9,550
(d) For purposes of the adjustments required by division 9,552
(I)(12)(a) of this section, the term "investment in the stock or 9,553
debt of another entity" means only those investments where the 9,554
taxpayer and the taxpayer's related entities directly, 9,555
indirectly, beneficially, or constructively own, in the 9,556
aggregate, at any time during the twenty-four month period 9,557
commencing one year prior to the direct or indirect sale, 9,558
exchange, or other disposition of such investment at least fifty 9,559
per cent or more of the value of either the outstanding stock or 9,560
such debt of such other entity. 9,561
(e) For purposes of the adjustments required by division 9,563
(I)(12)(b) of this section, the term "related entity" excludes 9,564
all of the following: 9,565
(i) Foreign corporations as defined in section 7701 of the 9,567
Internal Revenue Code; 9,568
(ii) Foreign partnerships as defined in section 7701 of 9,570
the Internal Revenue Code; 9,571
(iii) Corporations, partnerships, estates, and trusts 9,573
created or organized in or under the laws of the Commonwealth of 9,574
Puerto Rico or any possession of the United States; 9,575
(iv) Foreign estates and foreign trusts as defined in 9,577
section 7701 of the Internal Revenue Code. 9,578
The exclusions described in divisions (I)(12)(e)(i) to (iv) 9,580
of this section do not apply if the corporation, partnership, 9,581
estate, or trust is described in any one of divisions (C)(1) to 9,582
(5) of section 5733.042 of the Revised Code. 9,583
(f) Nothing in division (I)(12) of this section shall 9,585
require or permit a taxpayer to add any gains or deduct any 9,586
losses described in divisions (I)(12)(f)(i) and (ii) of this 9,587
section: 9,588
(i) Gains or losses recognized for federal income tax 9,590
226
purposes by an individual, estate, or trust without regard to the 9,591
attribution rules described in division (I)(12)(c) of this 9,592
section, and; 9,593
(ii) A related entity's gains or losses described in 9,595
division (I)(12)(b) if the taxpayer's ownership of or use of such 9,596
intangible property was limited to a period not exceeding nine 9,597
months and was attributable to a transaction or a series of 9,598
transactions executed in accordance with the election or 9,599
elections made by the taxpayer or a related entity pursuant to 9,600
section 338 of the Internal Revenue Code. 9,601
(13) Any adjustment required by section 5733.042 of the 9,603
Revised Code. 9,604
(14) Add any amount claimed as a credit under section 9,607
5733.0611 of the Revised Code to the extent that such amount 9,610
satisfies either of the following:
(a) It was deducted or excluded from the computation of 9,612
the corporation's taxable income before operating loss deduction 9,614
and special deductions as required to be reported for the 9,615
corporation's taxable year under the Internal Revenue Code; 9,618
(b) It resulted in a reduction of the corporation's 9,620
taxable income before operating loss deduction and special 9,622
deductions as required to be reported for any of the 9,623
corporation's taxable years under the Internal Revenue Code. 9,626
(15) Deduct the amount contributed by the taxpayer to an 9,629
individual development account program established by a county 9,630
department of human services pursuant to sections 329.11 to 9,631
329.14 of the Revised Code for the purpose of matching funds 9,634
deposited by program participants. On request of the tax 9,635
commissioner, the taxpayer shall provide any information that, in 9,636
the tax commissioner's opinion, is necessary to establish the 9,637
amount deducted under division (I)(15) of this section. 9,638
(16) ANY ADJUSTMENT REQUIRED BY SECTION 5733.0510 OF THE 9,641
REVISED CODE.
(J) Any term used in this chapter has the same meaning as 9,643
227
when used in comparable context in the laws of the United States 9,644
relating to federal income taxes unless a different meaning is 9,645
clearly required. Any reference in this chapter to the Internal 9,646
Revenue Code includes other laws of the United States relating to 9,647
federal income taxes. 9,648
(K) "Financial institution" has the meaning given by 9,650
section 5725.01 of the Revised Code but does not include a 9,652
production credit association as described in 85 Stat. 597, 12 9,653
U.S.C.A. 2091. 9,655
(L)(1) A "qualifying holding company" is any corporation 9,658
satisfying all of the following requirements: 9,659
(a) Subject to divisions (L)(2) and (3) of this section, 9,662
the net book value of the corporation's intangible assets is 9,663
greater than or equal to ninety per cent of the net book value of 9,664
all of its assets and at least fifty per cent of the net book 9,665
value of all of its assets represents direct or indirect 9,666
investments in the equity of, loans and advances to, and accounts 9,668
receivable due from related members;
(b) At least ninety per cent of the corporation's gross 9,671
income for the taxable year is attributable to the following: 9,672
(i) The maintenance, management, ownership, acquisition, 9,674
use, and disposition of its intangible property, its aircraft the 9,676
use of which is not subject to regulation under 14 C.F.R. part 9,678
121 or part 135, and any real property described in division 9,679
(L)(2)(c) of this section; 9,681
(ii) The collection and distribution of income from such 9,684
property.
(c) The corporation is not a financial institution on the 9,687
last day of the taxable year ending prior to the first day of the 9,689
tax year;
(d) The corporation's related members make a good faith 9,692
and reasonable effort to make timely and fully the adjustments 9,693
required by division (C)(2) of section 5733.05 of the Revised 9,695
Code and to pay timely and fully all uncontested taxes, interest, 9,696
228
penalties, and other fees and charges imposed under this chapter; 9,697
(e) Subject to division (L)(4) of this section, the 9,700
corporation elects to be treated as a qualifying holding company 9,701
for the tax year. 9,702
A corporation otherwise satisfying divisions (L)(1)(a) to 9,706
(e) of this section that does not elect to be a qualifying 9,707
holding company is not a qualifying holding company for the 9,708
purposes of this chapter.
(2)(a)(i) For purposes of making the ninety per cent 9,711
computation under division (L)(1)(a) of this section, the net 9,714
book value of the corporation's assets shall not include the net 9,715
book value of aircraft or real property described in division 9,716
(L)(1)(b)(i) of this section. 9,718
(ii) For purposes of making the fifty per cent computation 9,721
under division (L)(1)(a) of this section, the net book value of 9,723
assets shall include the net book value of aircraft or real 9,724
property described in division (L)(1)(b)(i) of this section. 9,727
(b)(i) As used in division (L) of this section, 9,730
"intangible asset" includes, but is not limited to, the 9,731
corporation's direct interest in each pass-through entity only if 9,732
at all times during the corporation's taxable year ending prior 9,733
to the first day of the tax year the corporation's and the 9,734
corporation's related members' combined direct and indirect 9,735
interests in the capital or profits of such pass-through entity 9,736
do not exceed fifty per cent. If the corporation's interest in 9,737
the pass-through entity is an intangible asset for that taxable 9,738
year, then the distributive share of any income from the 9,739
pass-through entity shall be income from an intangible asset for 9,740
that taxable year.
(ii) If a corporation's and the corporation's related 9,743
members' combined direct and indirect interests in the capital or 9,744
profits of a pass-through entity exceed fifty per cent at any 9,745
time during the corporation's taxable year ending prior to the 9,746
first day of the tax year, "intangible asset" does not include 9,747
229
the corporation's direct interest in the pass-through entity, and 9,748
the corporation shall include in its assets its proportionate 9,749
share of the assets of any such pass-through entity and shall 9,750
include in its gross income its distributive share of the gross 9,751
income of such pass-through entity in the same form as was earned 9,752
by the pass-through entity. 9,753
(iii) A pass-through entity's direct or indirect 9,756
proportionate share of any other pass-through entity's assets 9,757
shall be included for the purpose of computing the corporation's 9,758
proportionate share of the pass-through entity's assets under 9,759
division (L)(2)(b)(ii) of this section, and such pass-through 9,761
entity's distributive share of any other pass-through entity's 9,762
gross income shall be included for purposes of computing the 9,763
corporation's distributive share of the pass-through entity's 9,764
gross income under division (L)(2)(b)(ii) of this section. 9,767
(c) For the purposes of divisions (L)(1)(b)(i), 9,770
(1)(b)(ii), (2)(a)(i), and (2)(a)(ii) of this section, real 9,773
property is described in division (L)(2)(c) of this section only 9,775
if all of the following conditions are present at all times 9,776
during the taxable year ending prior to the first day of the tax 9,777
year:
(i) The real property serves as the headquarters of the 9,780
corporation's trade or business, or is the place from which the 9,781
corporation's trade or business is principally managed or 9,782
directed;
(ii) Not more than ten per cent of the value of the real 9,785
property and not more than ten per cent of the square footage of 9,786
the building or buildings that are part of the real property is
used, made available, or occupied for the purpose of providing, 9,787
acquiring, transferring, selling, or disposing of tangible 9,789
property or services in the normal course of business to persons 9,790
other than related members, the corporation's employees and their 9,791
families, and such related members' employees and their families. 9,792
(d) As used in division (L) of this section, "related 9,794
230
member" has the same meaning as in division (A)(6) of section 9,797
5733.042 of the Revised Code without regard to division (B) of 9,800
that section.
(3) The percentages described in division (L)(1)(a) of 9,804
this section shall be equal to the quarterly average of those 9,805
percentages as calculated during the corporation's taxable year 9,806
ending prior to the first day of the tax year. 9,807
(4) With respect to the election described in division 9,809
(L)(1)(e) of this section: 9,811
(a) The election need not accompany a timely filed report; 9,814
(b) The election need not accompany the report; rather, 9,816
the election may accompany a subsequently filed but timely 9,817
application for refund and timely amended report, or a 9,819
subsequently filed but timely petition for reassessment; 9,820
(c) The election is not irrevocable; 9,823
(d) The election applies only to the tax year specified by 9,826
the corporation;
(e) The corporation's related members comply with division 9,828
(L)(1)(d) of this section. 9,829
Nothing in division (L)(4) of this section shall be 9,832
construed to extend any statute of limitations set forth in this 9,833
chapter. 9,834
(M) "Qualifying controlled group" means two or more 9,837
corporations that satisfy the ownership and control requirements 9,838
of division (A) of section 5733.052 of the Revised Code. 9,841
(N) "Limited liability company" means any limited 9,843
liability company formed under Chapter 1705. of the Revised Code 9,845
or under the laws of any other state.
(O) "Pass-through entity" means a corporation that has 9,848
made an election under subchapter S of Chapter 1 of Subtitle A of 9,850
the Internal Revenue Code for its taxable year under that code, 9,853
or a partnership, limited liability company, or any other person, 9,854
other than an individual, trust, or estate, if the partnership, 9,855
limited liability company, or other person is not classified for 9,856
231
federal income tax purposes as an association taxed as a 9,857
corporation. 9,858
(P) "ELECTRIC COMPANY" AND "COMBINED COMPANY" HAVE THE 9,860
SAME MEANINGS AS IN SECTION 5727.01 OF THE REVISED CODE. 9,862
Sec. 5733.05. As used in this section, "qualified 9,871
research" means laboratory research, experimental research, and 9,872
other similar types of research; research in developing or 9,873
improving a product; or research in developing or improving the 9,874
means of producing a product. It does not include market 9,875
research, consumer surveys, efficiency surveys, management 9,876
studies, ordinary testing or inspection of materials or products 9,877
for quality control, historical research, or literary research. 9,878
"Product" as used in this paragraph does not include services or 9,879
intangible property. 9,880
The annual report determines the value of the issued and 9,883
outstanding shares of stock of the taxpayer, which under division 9,884
(A) or divisions (B) and (C) of this section is the base or 9,885
measure of the franchise tax liability. Such determination shall 9,886
be made as of the date shown by the report to have been the 9,887
beginning of the corporation's annual accounting period that 9,888
includes the first day of January of the tax year. For the 9,889
purposes of this chapter, the value of the issued and outstanding 9,891
shares of stock of any corporation that is a financial 9,893
institution shall be deemed to be the value as calculated in 9,895
accordance with division (A) of this section. For the purposes 9,897
of this chapter, the value of the issued and outstanding shares 9,898
of stock of any corporation that is not a financial institution 9,899
shall be deemed to be the values as calculated in accordance with 9,900
divisions (B) and (C) of this section. 9,901
(A) The total value, as shown by the books of the 9,903
financial institution, of its capital, surplus, whether earned or 9,905
unearned, undivided profits, and reserves shall be determined as 9,907
prescribed by section 5733.056 of the Revised Code for tax years 9,908
1998 and thereafter. 9,909
232
(B) The sum of the corporation's net income during the 9,911
corporation's taxable year, allocated or apportioned to this 9,913
state as prescribed in divisions (B)(1) and (2) of this section, 9,915
and subject to sections 5733.052, 5733.053, 5733.057, and 9,916
5733.058, 5733.059, AND 5733.0510 of the Revised Code: 9,917
(1) The net income allocated to this state as provided by 9,919
section 5733.051 of the Revised Code. 9,920
(2) The amount of Ohio apportioned net income from sources 9,922
other than those allocated under section 5733.051 of the Revised 9,923
Code, which shall be determined by multiplying the corporation's 9,924
net income by a fraction. The numerator of the fraction is the 9,926
sum of the following products: the property factor multiplied by 9,929
twenty, the payroll factor multiplied by twenty, and the sales 9,930
factor multiplied by sixty. The denominator of the fraction is 9,932
one hundred, provided that the denominator shall be reduced by 9,934
twenty if the property factor has a denominator of zero, by 9,936
twenty if the payroll factor has a denominator of zero, and by 9,937
sixty if the sales factor has a denominator of zero.
The property, payroll, and sales factors shall be 9,939
determined as follows:
(a) The property factor is a fraction the numerator of 9,941
which is the average value of the corporation's real and tangible 9,942
personal property owned or rented, and used in the trade or 9,943
business in this state during the taxable year, and the 9,944
denominator of which is the average value of all the 9,945
corporation's real and tangible personal property owned or 9,946
rented, and used in the trade or business everywhere during such 9,947
year. There shall be excluded from the numerator and denominator 9,948
of the property factor the original cost of all of the following 9,949
property within Ohio: property with respect to which a 9,950
"pollution control facility" certificate has been issued pursuant 9,951
to section 5709.21 of the Revised Code; property with respect to 9,952
which an "industrial water pollution control certificate" has 9,953
been issued pursuant to section 6111.31 of the Revised Code; and 9,954
233
property used exclusively during the taxable year for qualified 9,955
research. 9,956
(i) Property owned by the corporation is valued at its 9,958
original cost. Property rented by the corporation is valued at 9,959
eight times the net annual rental rate. "Net annual rental rate" 9,960
means the annual rental rate paid by the corporation less any 9,961
annual rental rate received by the corporation from subrentals. 9,962
(ii) The average value of property shall be determined by 9,964
averaging the values at the beginning and the end of the taxable 9,965
year, but the tax commissioner may require the averaging of 9,966
monthly values during the taxable year, if reasonably required to 9,967
reflect properly the average value of the corporation's property. 9,968
(b) The payroll factor is a fraction the numerator of 9,970
which is the total amount paid in this state during the taxable 9,971
year by the corporation for compensation, and the denominator of 9,972
which is the total compensation paid everywhere by the 9,973
corporation during such year. There shall be excluded from the 9,974
numerator and the denominator of the payroll factor the total 9,975
compensation paid in this state to employees who are primarily 9,976
engaged in qualified research. 9,977
(i) Compensation means any form of remuneration paid to an 9,979
employee for personal services. 9,980
(ii) Compensation is paid in this state if: (1) the 9,982
recipient's service is performed entirely within this state, (2) 9,983
the recipient's service is performed both within and without this 9,984
state, but the service performed without this state is incidental 9,985
to the recipient's service within this state, (3) some of the 9,986
service is performed within this state and either the base of 9,987
operations, or if there is no base of operations, the place from 9,988
which the service is directed or controlled is within this state, 9,989
or the base of operations or the place from which the service is 9,990
directed or controlled is not in any state in which some part of 9,991
the service is performed, but the recipient's residence is in 9,992
this state. 9,993
234
(iii) Compensation is paid in this state to any employee 9,995
of a common or contract motor carrier corporation, who performs 9,996
the employee's regularly assigned duties on a motor vehicle in 9,998
more than one state, in the same ratio by which the mileage 9,999
traveled by such employee within the state bears to the total 10,000
mileage traveled by such employee everywhere during the taxable 10,001
year.
(c) The EXCEPT AS PROVIDED IN SECTION 5733.059 OF THE 10,004
REVISED CODE, THE sales factor is a fraction the numerator of 10,005
which is the total sales in this state by the corporation during 10,006
the taxable year, and the denominator of which is the total sales 10,007
by the corporation everywhere during such year. In determining 10,008
the numerator and denominator of the sales factor, receipts from 10,009
the sale or other disposal of a capital asset or an asset 10,010
described in section 1231 of the Internal Revenue Code shall be 10,011
eliminated. Also, in determining the numerator and denominator 10,012
of the sales factor, in the case of a reporting corporation 10,013
owning at least eighty per cent of the issued and outstanding 10,014
common stock of one or more public utilities or insurance 10,015
companies OR PUBLIC UTILITIES, EXCEPT AN ELECTRIC COMPANY, or 10,017
owning at least twenty-five per cent of the issued and 10,018
outstanding common stock of one or more financial institutions, 10,019
receipts received by the reporting corporation from such 10,020
utilities, insurance companies, and financial institutions shall 10,021
be eliminated.
For the purpose of this section and section 5733.03 of the 10,023
Revised Code, sales of tangible personal property are in this 10,024
state where such property is received in this state by the 10,025
purchaser. In the case of delivery of tangible personal property 10,026
by common carrier or by other means of transportation, the place 10,027
at which such property is ultimately received after all 10,028
transportation has been completed shall be considered as the 10,029
place at which such property is received by the purchaser. 10,030
Direct delivery in this state, other than for purposes of 10,031
235
transportation, to a person or firm designated by a purchaser 10,032
constitutes delivery to the purchaser in this state, and direct 10,033
delivery outside this state to a person or firm designated by a 10,034
purchaser does not constitute delivery to the purchaser in this 10,035
state, regardless of where title passes or other conditions of 10,036
sale. 10,037
Sales EXCEPT AS PROVIDED IN SECTION 5733.059 OF THE REVISED 10,039
CODE, SALES, other than sales of tangible personal property, are 10,040
in this state if either: 10,041
(i) The income-producing activity is performed solely in 10,043
this state; 10,044
(ii) The income-producing activity is performed both 10,046
within and without this state and a greater proportion of the 10,047
income-producing activity is performed within this state than in 10,049
any other state, based on costs of performance. 10,050
(d) If the allocation and apportionment provisions of 10,052
division (B) of this section do not fairly represent the extent 10,054
of the taxpayer's business activity in this state, the taxpayer 10,055
may request, which request must be in writing and must accompany 10,056
the report, timely filed petition for reassessment, or timely 10,057
filed amended report, or the tax commissioner may require, in 10,058
respect to all or any part of the taxpayer's allocated or 10,059
apportioned base, if reasonable, any one or more of the 10,060
following:
(i) Separate accounting; 10,062
(ii) The exclusion of any one or more of the factors; 10,064
(iii) The inclusion of one or more additional factors 10,066
which THAT will fairly represent the taxpayer's allocated or 10,067
apportioned base in this state. 10,068
An alternative method will be effective only with approval 10,070
by the tax commissioner. 10,071
Nothing in this section shall be construed to extend any 10,073
statute of limitations set forth in this chapter. 10,074
(C)(1) Subject to divisions (C)(2) and (3) of this 10,077
236
section, the total value, as shown on the books of each
corporation that is not a qualified holding company, of the net 10,078
book value of a corporation's assets less the net carrying value 10,080
of its liabilities. For the purposes of determining that total 10,081
value, any reserves shown on the corporation's books shall be 10,082
considered liabilities or contra assets, except for any reserves 10,083
that are deemed appropriations of retained earnings under 10,084
generally accepted accounting principles. 10,085
(2)(a) If, on the last day of the taxpayer's taxable year 10,088
preceding the tax year, the taxpayer is a related member to a 10,089
corporation that elects to be a qualifying holding company for 10,090
the tax year beginning after the last day of the taxpayer's 10,091
taxable year, or if, on the last day of the taxpayer's taxable 10,092
year preceding the tax year, a corporation that elects to be a 10,093
qualifying holding company for the tax year beginning after the 10,094
last day of the taxpayer's taxable year is a related member to 10,095
the taxpayer, then the taxpayer's total value shall be adjusted 10,096
by the qualifying amount. Except as otherwise provided under 10,097
division (C)(2)(b) of this section, "qualifying amount" means the 10,098
amount that, when added to the taxpayer's total value, and when 10,100
subtracted from the net carrying value of the taxpayer's 10,101
liabilities computed without regard to division (C)(2) of this 10,103
section, or when subtracted from the taxpayer's total value and 10,105
when added to the net carrying value of the taxpayer's 10,106
liabilities computed without regard to division (C)(2) of this 10,108
section, results in the taxpayer's debt-to-equity ratio equaling 10,109
the debt-to-equity ratio of the qualifying controlled group on 10,110
the last day of the taxable year ending prior to the first day of 10,111
the tax year computed on a consolidated basis in accordance with 10,113
general accepted accounting principles. For the purposes of 10,114
division (C)(2)(a) of this section, the corporation's total 10,115
value, after the adjustment required by that division, shall not 10,116
exceed the net book value of the corporation's assets. 10,117
(b)(i) The amount added to the taxpayer's total value and 10,120
237
subtracted from the net carrying value of the taxpayer's 10,121
liabilities shall not exceed the amount of the net carrying value 10,122
of the taxpayer's liabilities owed to the taxpayer's related 10,124
members.
(ii) A liability owed to the taxpayer's related members 10,126
includes, but is not limited to, any amount that the corporation 10,128
owes to a person that is not a related member if the 10,129
corporation's related member or related members in whole or in 10,130
part guarantee any portion or all of that amount, or pledge, 10,131
hypothecate, mortgage, or carry out any similar transactions to 10,132
secure any portion or all of that amount. 10,133
(3) The base upon which the tax is levied under division 10,135
(C) of section 5733.06 of the Revised Code shall be computed by 10,137
multiplying the amount determined under divisions (C)(1) and (2) 10,139
of this section by the fraction determined under divisions 10,140
(B)(2)(a) to (c) of this section and, if applicable, divisions 10,143
(B)(2)(d)(ii) to (iv) of this section but without regard to 10,145
section 5733.052 of the Revised Code. 10,146
(4) For purposes of division (C) of this section, "related 10,150
member" has the same meaning as in division (A)(6) of section 10,151
5733.042 of the Revised Code without regard to division (B) of 10,152
that section.
Sec. 5733.051. Net SUBJECT TO SECTION 5733.0510 OF THE 10,161
REVISED CODE, NET income of a corporation subject to the tax 10,163
imposed by section 5733.06 of the Revised Code shall be allocated 10,164
and apportioned to this state as follows:
(A) Net rents and royalties from real property located in 10,166
this state are allocable to this state; 10,167
(B) Net rents and royalties from tangible personal 10,169
property, to the extent such property is utilized in this state, 10,170
are allocable to this state if the taxpayer is otherwise subject 10,171
to the tax imposed by section 5733.06 of the Revised Code; 10,173
(C) Capital gains and losses from the sale or other 10,175
disposition of real property located in this state are allocable 10,176
238
to this state; 10,177
(D) Capital gains and losses from the sale or other 10,179
disposition of tangible personal property are allocable to this 10,180
state if the property had a situs in this state at the time of 10,181
sale and the taxpayer is otherwise subject to the tax imposed by 10,182
section 5733.06 of the Revised Code; 10,183
(E) Capital gains and losses from the sale or other 10,185
disposition of intangible property which may produce income 10,186
enumerated in division (F) of this section are allocable on the 10,187
same basis as set forth in such division. Capital gains and 10,188
losses from the sale or other disposition of all other intangible 10,189
property are apportionable under division (H) of this section. 10,190
(F) Dividends or distributions which are not otherwise 10,192
deducted or excluded from net income, other than dividends or 10,193
distributions from a domestic international sales corporation, 10,194
are allocable to this state in accordance with the ratio of the 10,195
book value of the physical assets of the payor of the dividends 10,196
or distributions located in this state divided by the book value 10,197
of the total physical assets of the payor located everywhere. 10,198
Dividends or distributions received from a domestic international 10,199
sales corporation, or from a payor the location of whose physical 10,200
assets is unavailable to the taxpayer, are apportionable under 10,201
division (H) of this section. 10,202
(G) Patent and copyright royalties and technical 10,204
assistance fees, not representing the principal source of gross 10,205
receipts of the taxpayer, are allocable to this state to the 10,206
extent that the activity of the payor thereof giving rise to the 10,207
payment takes place in this state. If the location of the 10,208
payor's activity is unavailable to the taxpayer, such royalties 10,209
and fees are apportionable under division (H) of this section. 10,210
(H) Any other net income, from sources other than those 10,212
enumerated in divisions (A) to (G) of this section, is 10,213
apportionable to this state on the basis of the mechanism 10,214
provided in division (B)(2) of section 5733.05 of the Revised 10,215
239
Code. 10,216
Sec. 5733.057. As used in this section, "adjusted 10,225
qualifying amount" has the same meaning as in section 5733.40 of 10,226
the Revised Code.
Except as otherwise provided in divisions (A) and (B) of 10,228
section 5733.401 and in sections 5733.058 and 5747.401 of the 10,229
Revised Code, in making any computation ALL APPORTIONMENT, 10,231
ALLOCATION, INCOME, GAIN, LOSS, DEDUCTION, TAX, AND CREDIT 10,232
COMPUTATIONS under THIS CHAPTER AND UNDER sections 5733.042, 10,233
5733.05, 5733.051, 5733.052, 5733.053, 5733.40, 5733.41, 5747.41, 10,235
and 5747.43 of the Revised Code, each person shall include in 10,237
that person's items of adjusted qualifying amounts, allocable 10,238
income or loss, if any, apportionable income or loss, property, 10,240
compensation, and sales, the person's entire distributive share 10,241
or proportionate share of the items of adjusted qualifying 10,243
amounts, allocable income or loss, apportionable income or loss, 10,244
property, compensation, and sales of any pass-through entity in 10,245
which the person has a direct or indirect ownership interest at 10,247
any time during the person's taxable year. A pass-through 10,248
entity's direct or indirect distributive share or proportionate 10,249
share of any other pass-through entity's items of adjusted 10,250
qualifying amounts, allocable income or loss, apportionable 10,252
income or loss, property, compensation, and sales shall be 10,253
included for the purposes of computing the person's distributive 10,254
share or proportionate share of the pass-through entity's items 10,256
of adjusted qualifying amounts, allocable income or loss, 10,257
apportionable income or loss, property, compensation, and sales 10,258
under this section. Those items shall be in the same form as was 10,259
recognized by the pass-through entity. 10,260
Sec. 5733.059. (A) AS USED IN THIS SECTION: 10,262
(1) "CUSTOMER" MEANS A PERSON WHO PURCHASES ELECTRICITY 10,264
FOR CONSUMPTION EITHER BY THAT PERSON OR BY THE PERSON'S RELATED 10,265
MEMBER AND THE ELECTRICITY IS NOT FOR RESALE DIRECTLY OR 10,266
INDIRECTLY TO ANY PERSON OTHER THAN A RELATED MEMBER. 10,267
240
(2) "RELATED MEMBER" HAS THE SAME MEANING AS IN DIVISION 10,269
(A)(6) OF SECTION 5733.042 OF THE REVISED CODE WITHOUT REGARD TO 10,270
DIVISION (B) OF THAT SECTION. 10,272
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 10,274
THIS DIVISION APPLIES ONLY TO SALES OF ELECTRIC TRANSMISSION AND 10,275
DISTRIBUTION SERVICES. FOR PURPOSES OF SECTIONS 5733.05 AND 10,276
5747.21 OF THE REVISED CODE: 10,277
(1) SALES OF THE TRANSMISSION OF ELECTRICITY ARE IN THIS 10,279
STATE IN PROPORTION TO THE RATIO OF THE WIRE MILEAGE OF THE 10,280
TAXPAYER'S TRANSMISSION LINES LOCATED IN THIS STATE DIVIDED BY 10,281
THE WIRE MILEAGE OF THE TAXPAYER'S TRANSMISSION LINES LOCATED 10,282
EVERYWHERE. TRANSMISSION WIRE MILEAGE SHALL BE WEIGHTED FOR THE 10,283
VOLTAGE CAPACITY OF EACH LINE. 10,284
(2) SALES OF THE DISTRIBUTION OF ELECTRICITY ARE IN THIS 10,286
STATE IN PROPORTION TO THE RATIO OF THE WIRE MILEAGE OF THE 10,287
TAXPAYER'S DISTRIBUTION LINES LOCATED IN THIS STATE DIVIDED BY 10,288
THE WIRE MILEAGE OF THE TAXPAYER'S DISTRIBUTION LINES LOCATED 10,289
EVERYWHERE. DISTRIBUTION WIRE MILEAGE SHALL NOT BE WEIGHTED FOR 10,290
THE VOLTAGE CAPACITY OF EACH LINE. 10,291
(C) THIS DIVISION APPLIES ONLY TO A PERSON THAT HAS 10,293
TRANSMISSION OR DISTRIBUTION LINES IN THIS STATE. IF A CONTRACT 10,294
FOR THE SALE OF ELECTRICITY INCLUDES THE SELLER'S OR THE SELLER'S
RELATED MEMBER'S OBLIGATION TO TRANSMIT OR DISTRIBUTE THE 10,295
ELECTRICITY AND IF THE SALES CONTRACT SEPARATELY IDENTIFIES THE 10,296
PRICE CHARGED FOR THE TRANSMISSION OR DISTRIBUTION OF 10,297
ELECTRICITY, THE PRICE CHARGED FOR THE TRANSMISSION AND 10,298
DISTRIBUTION OF ELECTRICITY SHALL BE APPORTIONED TO THIS STATE IN 10,299
ACCORDANCE WITH DIVISION (B) OF THIS SECTION. ANY REMAINING 10,300
PORTION OF THE SALES PRICE OF THE ELECTRICITY SHALL BE SITUSED TO
THIS STATE IN ACCORDANCE WITH DIVISION (D) OF THIS SECTION. 10,301
IF THE SALES CONTRACT DOES NOT SEPARATELY IDENTIFY THE 10,303
PRICE CHARGED FOR THE TRANSMISSION OR DISTRIBUTION OF 10,304
ELECTRICITY, THE SALES PRICE OF THE ELECTRICITY SHALL BE SITUSED 10,305
TO THIS STATE IN ACCORDANCE WITH DIVISION (D) OF THIS SECTION. 10,306
241
(D) ANY PERSON WHO MAKES A SALE OF ELECTRICITY SHALL SITUS 10,308
THE FOLLOWING TO THIS STATE: 10,309
(1) A SALE OF ELECTRICITY DIRECTLY OR INDIRECTLY TO A 10,311
CUSTOMER TO THE EXTENT THE CUSTOMER CONSUMES THE ELECTRICITY IN 10,312
THIS STATE;
(2) A SALE OF ELECTRICITY DIRECTLY OR INDIRECTLY TO A 10,314
RELATED MEMBER WHERE THE RELATED MEMBER DIRECTLY OR INDIRECTLY 10,315
SELLS ELECTRICITY TO A CUSTOMER TO THE EXTENT THE CUSTOMER 10,316
CONSUMES THE ELECTRICITY IN THIS STATE; 10,317
(3) A SALE OF ELECTRICITY IF THE SELLER OR THE SELLER'S 10,319
RELATED MEMBER DIRECTLY OR INDIRECTLY DELIVERS THE ELECTRICITY TO 10,320
A LOCATION IN THIS STATE OR DIRECTLY OR INDIRECTLY DELIVERS THE 10,321
ELECTRICITY EXACTLY TO THE BORDER OF THIS STATE AND ANOTHER 10,322
STATE;
(4) A SALE OF ELECTRICITY IF THE SELLER OR THE SELLER'S 10,324
RELATED MEMBER DIRECTLY OR INDIRECTLY DIRECTS THE DELIVERY OF THE 10,325
ELECTRICITY TO A LOCATION IN THIS STATE OR DIRECTLY OR INDIRECTLY 10,326
DIRECTS THE DELIVERY OF THE ELECTRICITY EXACTLY TO THE BORDER OF 10,327
THIS STATE AND ANOTHER STATE. 10,328
(E) IF THE SITUSING PROVISIONS OF THIS SECTION DO NOT 10,330
FAIRLY REPRESENT THE EXTENT OF THE TAXPAYER'S OR THE TAXPAYER'S 10,331
RELATED MEMBER'S ACTIVITY IN THIS STATE, THE TAXPAYER MAY 10,332
REQUEST, OR THE TAX COMMISSIONER MAY REQUIRE, IN RESPECT TO ALL 10,333
OR PART OF A TAXPAYER'S OR RELATED MEMBER'S SALES, IF REASONABLE, 10,334
ANY OF THE FOLLOWING: 10,335
(1) SEPARATE ACCOUNTING; 10,337
(2) THE EXCLUSION OF ONE OR MORE ADDITIONAL SITUSING 10,339
FACTORS THAT WILL FAIRLY REPRESENT THE TAXPAYER'S AND THE RELATED 10,340
MEMBER'S SALES IN THIS STATE; 10,341
(3) THE INCLUSION OF ONE OR MORE ADDITIONAL SITUSING 10,343
FACTORS THAT WILL FAIRLY REPRESENT THE TAXPAYER'S AND THE RELATED 10,344
MEMBER'S SALES IN THIS STATE. 10,345
THE TAXPAYER'S REQUEST SHALL BE IN WRITING AND SHALL BE 10,347
FILED WITH THE REPORT REQUIRED BY SECTION 5733.02 OF THE REVISED 10,348
242
CODE, A TIMELY FILED PETITION FOR REASSESSMENT, OR A TIMELY FILED 10,349
AMENDED REPORT. AN ALTERNATIVE SITUSING METHOD SHALL BE
EFFECTIVE WITH THE APPROVAL OF THE TAX COMMISSIONER. 10,350
NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXTEND ANY 10,352
STATUTE OF LIMITATIONS SET FORTH IN THIS CHAPTER. 10,353
(F) IF THE SITUSING PROVISIONS OF THIS SECTION DO NOT 10,355
FAIRLY REPRESENT ACTIVITY IN THIS STATE, THE TAX COMMISSIONER MAY 10,356
PROMULGATE RULES TO SITUS SALES USING A METHODOLOGY THAT FAIRLY 10,357
REFLECTS SALES IN THIS STATE. 10,358
(G) NOTWITHSTANDING SECTIONS 5733.111 AND 5747.131 OF THE 10,360
REVISED CODE TO THE CONTRARY, A PERSON SITUSING A SALE OUTSIDE 10,361
THIS STATE HAS THE BURDEN TO ESTABLISH BY A PREPONDERANCE OF THE 10,362
EVIDENCE THAT THE DOCTRINES ENUMERATED IN THOSE SECTIONS DO NOT 10,363
APPLY.
Sec. 5733.0510. (A) AS USED IN THIS SECTION: 10,365
(1) "QUALIFYING TAXPAYER" MEANS EITHER OF THE FOLLOWING: 10,367
(a) A PERSON THAT IS AN ELECTRIC COMPANY OR A COMBINED 10,369
COMPANY, BUT ONLY IF THE PERSON WAS SUBJECT TO AND PAID THE TAX 10,371
IMPOSED BY SECTION 5727.30 OF THE REVISED CODE FOR GROSS RECEIPTS 10,372
RECEIVED DURING THE PERIOD OF MAY 1, 2000, THROUGH APRIL 30, 10,373
2001; 10,374
(b) ANY TAXPAYER NOT DESCRIBED IN DIVISION (A)(1)(a) OF 10,377
THIS SECTION IF A PERSON DESCRIBED IN DIVISION (A)(1)(a) OF THIS 10,379
SECTION TRANSFERS ALL OR A PORTION OF ITS ASSETS OR EQUITY 10,380
DIRECTLY OR INDIRECTLY TO THE TAXPAYER, THE TRANSFER OCCURRED AS 10,382
PART OF AN ENTITY ORGANIZATION OR REORGANIZATION, OR SUBSEQUENT
ENTITY ORGANIZATION OR REORGANIZATION, AND THE GAIN OR LOSS WITH 10,384
RESPECT TO THE TRANSFER IS NOT RECOGNIZED IN WHOLE OR IN PART FOR 10,385
FEDERAL INCOME TAX PURPOSES UNDER THE INTERNAL REVENUE CODE ON 10,386
ACCOUNT OF A TRANSFER AS PART OF AN EQUITY ORGANIZATION OR 10,387
REORGANIZATION, OR SUBSEQUENT ORGANIZATION OR REORGANIZATION. 10,388
(2) "QUALIFYING TAXABLE EVENT" MEANS ANY EVENT RESULTING 10,390
IN THE RECOGNITION FOR FEDERAL INCOME TAX PURPOSES OF GAIN OR 10,391
LOSS IN CONNECTION WITH ANY DIRECT OR INDIRECT SALE, DIRECT OR 10,392
243
INDIRECT EXCHANGE, DIRECT OR INDIRECT TRANSFER, DIRECT OR 10,393
INDIRECT RETIREMENT, OR ANY OTHER DIRECT OR INDIRECT DISPOSITION, 10,394
OF ANY QUALIFYING ASSET. 10,395
(3) "QUALIFYING ASSET" MEANS ANY ASSET SHOWN ON THE 10,397
QUALIFYING TAXPAYER'S BOOKS AND RECORDS ON DECEMBER 31, 2000, IN 10,398
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, 10,399
INCLUDING THE COST OF, OR ANY PORTION OF THE COST OF, ANY ASSET 10,400
ACQUIRED AFTER DECEMBER 31, 2000, WHERE SUCH ASSET WAS ACQUIRED 10,401
AS A RESULT OF A TAX-FREE OR TAX-DEFERRED EXCHANGE OF A 10,402
QUALIFYING ASSET.
(4) "NET INCOME" HAS THE SAME MEANING AS IN DIVISION (I) 10,404
OF SECTION 5733.04 OF THE REVISED CODE. 10,405
(5) "BOOK-TAX DIFFERENTIAL" MEANS THE DIFFERENCE, IF ANY, 10,407
BETWEEN AN ASSET'S NET BOOK VALUE SHOWN ON THE QUALIFYING 10,408
TAXPAYER'S BOOKS AND RECORDS ON DECEMBER 31, 2000, IN ACCORDANCE 10,409
WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND SUCH ASSET'S 10,410
ADJUSTED BASIS ON DECEMBER 31, 2000. THE BOOK-TAX DIFFERENTIAL 10,411
MAY BE A NEGATIVE NUMBER. 10,412
(B)(1) IF, WITH RESPECT TO A QUALIFYING ASSET, THERE 10,414
OCCURS A QUALIFYING TAXABLE EVENT AND IF THE GAIN OR LOSS 10,415
RECOGNIZED IS A TYPE OF GAIN OR LOSS THAT IS APPORTIONED AS 10,416
PROVIDED IN DIVISION (B) OF SECTION 5733.05 OF THE REVISED CODE, 10,418
THE QUALIFYING TAXPAYER SHALL REDUCE ITS NET INCOME BY THE AMOUNT 10,419
OF THE BOOK-TAX DIFFERENTIAL FOR THAT QUALIFYING ASSET, IF THE 10,420
BOOK-TAX DIFFERENTIAL IS POSITIVE, AND THE QUALIFYING TAXPAYER 10,421
SHALL INCREASE ITS NET INCOME BY THE ABSOLUTE VALUE OF THE AMOUNT 10,422
OF THE BOOK-TAX DIFFERENTIAL FOR THAT QUALIFYING ASSET, IF THE 10,423
BOOK-TAX DIFFERENTIAL IS NEGATIVE. 10,424
(2) IF, WITH RESPECT TO A QUALIFYING ASSET, THERE OCCURS A 10,426
QUALIFYING TAXABLE EVENT AND IF THE GAIN OR LOSS RECOGNIZED IS A 10,427
TYPE OF GAIN OR LOSS THAT IS ALLOCATED TO THIS STATE AS PROVIDED 10,428
IN SECTION 5733.051 OF THE REVISED CODE, THE QUALIFYING TAXPAYER 10,429
SHALL REDUCE ITS INCOME ALLOCATED TO THIS STATE BY THE AMOUNT OF 10,430
THE BOOK-TAX DIFFERENTIAL FOR THAT QUALIFYING ASSET, IF THE
244
BOOK-TAX DIFFERENTIAL IS POSITIVE, AND THE QUALIFYING TAXPAYER 10,431
SHALL INCREASE ITS INCOME ALLOCATED TO THIS STATE BY THE ABSOLUTE 10,432
VALUE OF THE AMOUNT OF THE BOOK-TAX DIFFERENTIAL FOR THAT 10,433
QUALIFYING ASSET, IF THE BOOK-TAX DIFFERENTIAL IS NEGATIVE. 10,434
(3) IF, WITH RESPECT TO A QUALIFYING TAXABLE EVENT, THE 10,436
PERSON USES THE INSTALLMENT SALES METHOD TO RECOGNIZE GAIN OVER 10,437
MORE THAN ONE YEAR, THE ADJUSTMENTS REQUIRED BY DIVISIONS (B)(1) 10,438
AND (2) OF THIS SECTION SHALL NOT BE MADE ENTIRELY IN THE TAX 10,440
YEAR IMMEDIATELY FOLLOWING THE TAXABLE YEAR IN WHICH THE 10,441
QUALIFYING TAXABLE EVENT OCCURRED BUT SHALL BE MADE IN PART IN 10,442
SUCH TAX YEAR AND IN SUBSEQUENT TAX YEARS IN PROPORTION TO THE 10,443
GAIN RECOGNIZED FOR FEDERAL INCOME TAX PURPOSES IN EACH 10,444
CORRESPONDING TAXABLE YEAR.
(C) NOTHING IN DIVISION (B) OF THIS SECTION SHALL BE 10,446
CONSTRUED TO ALLOW FOR AN ADJUSTMENT MORE THAN ONCE WITH RESPECT 10,448
TO THE SAME QUALIFYING ASSET. 10,449
(D) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO ALLOW 10,451
MORE THAN ONE CORPORATION TO CLAIM AN ADJUSTMENT WITH RESPECT TO 10,452
THE SAME QUALIFYING ASSET. 10,453
Sec. 5733.06. The tax hereby charged each corporation 10,462
subject to this chapter shall be the GREATER OF THE sum of 10,463
divisions (A) and (B) of this section, AFTER THE REDUCTION, IF 10,464
ANY, PROVIDED BY DIVISION (J) OF THIS SECTION, or division (C) of 10,466
this section, whichever is greater AFTER THE REDUCTION, IF ANY, 10,467
PROVIDED BY DIVISION (J) OF THIS SECTION, except that the tax 10,469
hereby charged each financial institution subject to this chapter 10,470
shall be the amount computed under division (D) of this section: 10,471
(A) Except as set forth in division (F) of this section, 10,473
five and one-tenth per cent upon the first fifty thousand dollars 10,474
of the value of the taxpayer's issued and outstanding shares of 10,475
stock as determined under division (B) of section 5733.05 of the 10,476
Revised Code; 10,477
(B) Except as set forth in division (F) of this section, 10,479
eight and one-half per cent upon the value so determined in 10,481
245
excess of fifty thousand dollars; or 10,482
(C) Except as otherwise provided under division (G) of 10,485
this section, four mills times that portion of the value of the 10,486
issued and outstanding shares of stock as determined under
division (C) of section 5733.05 of the Revised Code. For the 10,487
purposes of division (C) of this section, division (C)(2) of 10,489
section 5733.065, and division (C) of section 5733.066 of the
Revised Code, the value of the issued and outstanding shares of 10,490
stock of a qualified holding company is zero. 10,491
(D) The tax charged each financial institution subject to 10,493
this chapter shall be that portion of the value of the issued and 10,494
outstanding shares of stock as determined under division (A) of 10,495
section 5733.05 of the Revised Code, multiplied by the following 10,497
amounts:
(1) For tax years prior to the 1999 tax year, fifteen 10,499
mills; 10,500
(2) For the 1999 tax year, fourteen mills; 10,502
(3) For tax year 2000 and thereafter, thirteen mills. 10,504
(E) No tax shall be charged from any corporation which 10,506
THAT has been adjudicated bankrupt, or for which a receiver has 10,507
been appointed, or which THAT has made a general assignment for 10,508
the benefit of creditors, except for the portion of the then 10,510
current tax year during which the tax commissioner finds such 10,511
corporation had the power to exercise its corporate franchise 10,512
unimpaired by such proceedings or act. The minimum payment for 10,513
all corporations shall be fifty dollars. 10,514
The tax charged to corporations under this chapter for the 10,516
privilege of engaging in business in this state, which is an 10,517
excise tax levied on the value of the issued and outstanding 10,518
shares of stock, shall in no manner be construed as prohibiting 10,519
or otherwise limiting the powers of municipal corporations, joint 10,520
economic development zones created under section 715.691 of the 10,521
Revised Code, and joint economic development districts created 10,522
under section 715.70 or 715.71 or sections 715.72 to 715.81 of 10,523
246
the Revised Code in this state to impose an income tax on the 10,524
income of such corporations.
(F) If two or more taxpayers satisfy the ownership or 10,526
control requirements of division (A) of section 5733.052 of the 10,527
Revised Code, each such taxpayer shall substitute "the taxpayer's 10,528
pro-rata amount" for "fifty thousand dollars" in divisions (A) 10,529
and (B) of this section. For purposes of this division, "the
taxpayer's pro-rata amount" is an amount that, when added to the 10,530
other such taxpayers' pro-rata amounts, does not exceed fifty 10,531
thousand dollars. For the purpose of making that computation, 10,532
the taxpayer's pro-rata amount shall not be less than zero. 10,533
Nothing in this division derogates from or eliminates the
requirement to make the alternative computation of tax under 10,534
division (C) of this section. 10,535
(G) The tax liability of any corporation under division 10,537
(C) of this section shall not exceed one hundred fifty thousand 10,538
dollars.
(H)(1) For the purposes of division (H) of this section, 10,540
"exiting corporation" means a corporation that satisfies all of 10,541
the following conditions: 10,542
(a) The corporation had nexus with or in this state under 10,544
the Constitution of the United States during any portion of a 10,545
calendar year;
(b) The corporation was not a taxpayer on the first day of 10,547
January immediately following that calendar year; 10,548
(c) The corporation was not a financial institution on the 10,550
first day of January immediately following that calendar year; 10,551
(d) The corporation was not a transferor as defined in 10,553
section 5733.053 of the Revised Code during any portion of that 10,554
calendar year;
(e) During any portion of that calendar year, or any 10,556
portion of the immediately preceding calendar year, the 10,557
corporation had net income that was not included in a report 10,558
filed pursuant to section 5733.02, 5733.021, 5733.03, or 5733.031 10,559
247
of the Revised Code;
(f) The corporation would have been subject to the tax 10,561
computed under divisions (A), (B), (C), (F), and (G) of this 10,562
section if the corporation is assumed to have had nexus with or 10,563
in this state under the Constitution of the United States on the 10,564
first day of January immediately following the calendar year 10,565
referred to in division (H)(1)(a) of this section.
(2) For the purposes of division (H) of this section, 10,567
"unreported net income" means net income that was not previously 10,568
included in a report filed pursuant to section 5733.02, 5733.021, 10,569
5733.03, or 5733.031 of the Revised Code and that was realized or 10,570
recognized during the calendar year referred to in division 10,571
(H)(1) of this section or the immediately preceding calendar
year.
(3) Each exiting corporation shall pay a tax computed by 10,573
first allocating and apportioning the unreported net income 10,574
pursuant to division (B) of section 5733.05 and sections SECTION 10,575
5733.051 and, if applicable, section 5733.052 of the Revised 10,577
Code. The exiting corporation then shall compute the tax due on
its unreported net income allocated and apportioned to this state 10,578
by applying divisions (A), (B), and (F) of this section to that 10,579
income.
(4) Divisions (C) and (G) of this section, division (D)(2) 10,581
of section 5733.065, and division (C) of section 5733.066 of the 10,582
Revised Code do not apply to an exiting corporation, but exiting 10,583
corporations are subject to every other provision of this 10,584
chapter.
(5) Notwithstanding sections 5733.02, 5733.021, and 10,586
5733.03 of the Revised Code to the contrary, each exiting 10,587
corporation shall report and pay the tax due under division (H) 10,588
of this section on or before the thirty-first day of May 10,589
immediately following the calendar year referred to in division 10,590
(H)(1)(a) of this section. The exiting corporation shall file
that report on the form most recently prescribed by the tax 10,591
248
commissioner for the purposes of complying with sections 5733.02 10,592
and 5733.03 of the Revised Code. Upon request by the 10,593
corporation, the tax commissioner may extend the date for filing 10,594
the report.
(6) The tax commissioner may adopt rules governing 10,596
division (H) of this section. 10,597
(I) Any reference in the Revised Code to "the tax imposed 10,599
by section 5733.06 of the Revised Code" or "the tax due under 10,600
section 5733.06 of the Revised Code" includes the taxes imposed 10,601
under sections 5733.065 and 5733.066 of the Revised Code. 10,602
(J)(1) DIVISION (J) OF THIS SECTION APPLIES SOLELY TO A 10,605
COMBINED COMPANY. SECTION 5733.057 OF THE REVISED CODE SHALL 10,606
APPLY WHEN CALCULATING THE ADJUSTMENTS REQUIRED BY DIVISION (J) 10,608
OF THIS SECTION. 10,609
(2) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 10,613
TAX CALCULATED IN DIVISIONS (A) AND (B) OF THIS SECTION SHALL BE 10,614
REDUCED BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY A 10,616
FRACTION, THE NUMERATOR OF WHICH IS THE TOTAL TAXABLE GROSS 10,617
RECEIPTS ATTRIBUTED TO PROVIDING PUBLIC UTILITY ACTIVITY OTHER 10,618
THAN AS AN ELECTRIC COMPANY UNDER SECTION 5727.03 OF THE REVISED 10,619
CODE FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE 10,620
MEASURED IMMEDIATELY PRECEDING THE TAX YEAR, AND THE DENOMINATOR
OF WHICH IS THE TOTAL GROSS RECEIPTS FROM ALL SOURCES FOR THE 10,621
YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 10,622
IMMEDIATELY PRECEDING THE TAX YEAR. NOTHING HEREIN SHALL BE 10,623
CONSTRUED TO EXCLUDE FROM THE DENOMINATOR ANY ITEM OF INCOME 10,624
DESCRIBED IN SECTION 5733.051 OF THE REVISED CODE. 10,627
(3) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 10,631
TAX CALCULATED IN DIVISION (C) OF THIS SECTION SHALL BE REDUCED 10,633
BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY THE FRACTION 10,634
DESCRIBED IN DIVISION (J)(2) OF THIS SECTION. 10,636
(4) IN NO EVENT SHALL THE REDUCTION PROVIDED BY DIVISION 10,640
(J)(2) OR (J)(3) OF THIS SECTION EXCEED THE AMOUNT OF THE EXCISE 10,643
TAX PAID IN ACCORDANCE WITH SECTION 5727.38 OF THE REVISED CODE, 10,646
249
FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 10,647
IMMEDIATELY PRECEDING THE TAX YEAR. 10,648
Sec. 5733.09. (A) An incorporated company, whether 10,657
foreign or domestic, owning and operating a public utility in 10,658
this state, and as such required by law to file reports with the 10,659
tax commissioner and to pay an excise tax upon its gross 10,660
receipts, and insurance, fraternal, beneficial, bond investment, 10,661
and other corporations required by law to file annual reports 10,662
with the superintendent of insurance and dealers in intangibles, 10,663
the shares of which ARE, or the capital or ownership in capital 10,664
employed by such dealer is, subject to the taxes imposed by 10,665
section 5707.03 of the Revised Code, shall not be subject to this 10,666
chapter, except for sections 5733.031, 5733.042, 5733.05, 10,667
5733.052, 5733.053, 5733.069, 5733.0611, 5733.40, 5733.41, and 10,668
sections 5747.40 to 5747.453 of the Revised Code. AN ELECTRIC 10,669
COMPANY SUBJECT TO THE FILING REQUIREMENTS OF SECTION 5727.08 OF 10,670
THE REVISED CODE OR OTHERWISE HAVING NEXUS WITH OR IN THIS STATE 10,672
UNDER THE CONSTITUTION OF THE UNITED STATES, OR ANY OTHER 10,677
CORPORATION HAVING ANY GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO 10,678
PROVIDING PUBLIC UTILITY SERVICE AS AN ELECTRIC COMPANY OR HAVING 10,679
ANY PROPERTY DIRECTLY ATTRIBUTABLE TO PROVIDING PUBLIC UTILITY 10,680
SERVICE AS AN ELECTRIC COMPANY, IS SUBJECT TO THIS CHAPTER. 10,681
(B) A corporation that has made an election under 10,683
subchapter S, chapter one, subtitle A, of the Internal Revenue 10,684
Code for its taxable year under such code is exempt from the tax 10,685
imposed by section 5733.06 of the Revised Code that is based on 10,686
that taxable year. 10,687
A corporation that makes such an election shall file a 10,689
notice of such election with the tax commissioner between the 10,690
first day of January and the thirty-first day of March of each 10,691
tax year that the election is in effect. 10,692
(C) An entity defined to be a "real estate investment 10,694
trust" by section 856 of the Internal Revenue Code, a "regulated 10,695
investment company" by section 851 of the Internal Revenue Code, 10,696
250
or a "real estate mortgage investment conduit" by section 860D of 10,697
the Internal Revenue Code, is exempt from taxation for a tax year 10,698
as a corporation under this chapter and is exempt from taxation 10,699
for a return year as a dealer in intangibles under Chapter 5725. 10,700
of the Revised Code if it provides the report required by this 10,701
division. By the last day of March of the tax or return year the 10,702
entity shall submit to the tax commissioner the name of the 10,703
entity with a list of the names, addresses, and social security 10,704
or federal identification numbers of all investors, shareholders, 10,705
and other similar investors who owned any interest or invested in 10,706
the entity during the preceding calendar year. The commissioner 10,707
may extend the date by which the report must be submitted for 10,708
reasonable cause shown by the entity. The commissioner may 10,709
prescribe the form of the report required for exemption under 10,710
this division. 10,711
(D)(1) As used in this division: 10,713
(a) "Commercial printer" means a person primarily engaged 10,716
in the business of commercial printing. However, "commercial 10,717
printer" does not include a person primarily engaged in the 10,718
business of providing duplicating services using photocopy 10,719
machines or other xerographic processes. 10,720
(b) "Commercial printing" means printing by one or more 10,723
common processes such as letterpress, lithography, gravure, 10,724
screen, or digital imaging, and includes related activities such 10,725
as binding, platemaking, prepress operation, cartographic 10,726
composition, and typesetting.
(c) "Contract for printing" means an oral or written 10,729
agreement for the purchase of printed materials produced by a 10,730
commercial printer.
(d) "Intangible property located at the premises of a 10,733
commercial printer" means intangible property of any kind owned 10,734
or licensed by a customer of the commercial printer and furnished 10,735
to the commercial printer for use in commercial printing. 10,736
(e) "Printed material" means any tangible personal 10,739
251
property produced or processed by a commercial printer pursuant 10,740
to a contract for printing.
(f) "Related member" has the same meaning as in division 10,743
(A)(6) of section 5733.042 of the Revised Code without regard to 10,744
division (B) of that section. 10,746
(2) Except as provided in divisions (D)(3) and (4) of this 10,748
section, a corporation not otherwise subject to the tax imposed 10,749
by section 5733.06 of the Revised Code for a tax year does not 10,750
become subject to that tax for the tax year solely by reason of 10,752
any one or more of the following occurring in this state during 10,753
the taxable year that ends immediately prior to the tax year: 10,754
(a) Ownership by the corporation or a related member of 10,757
the corporation of tangible personal property or intangible 10,758
property located during all or any portion of the taxable year or 10,759
on the first day of the tax year at the premises of a commercial 10,760
printer with which the corporation or the corporation's related 10,761
member has a contract for printing with respect to such property 10,762
or the premises of a commercial printer's related member with 10,763
which the corporation or the corporation's related member has a 10,764
contract for printing with respect to such property; 10,765
(b) Sales by the corporation or a related member of the 10,768
corporation of property produced at and shipped or distributed 10,769
from the premises of a commercial printer with which the 10,770
corporation or the corporation's related member has a contract 10,771
for printing with respect to such property or the premises of a 10,772
commercial printer's related member with which the corporation or 10,773
the corporation's related member has a contract for printing with 10,774
respect to such property;
(c) Activities of employees, officers, agents, or 10,777
contractors of the corporation or a related member of the 10,778
corporation on the premises of a commercial printer with which 10,779
the corporation or the corporation's related member has a 10,780
contract for printing or the premises of a commercial printer's 10,781
related member with which the corporation or the corporation's 10,782
252
related member has a contract for printing, where the activities 10,783
are directly and solely related to quality control, distribution, 10,784
or printing services, or any combination thereof, performed by or 10,785
at the direction of the commercial printer or the commercial 10,786
printer's related member.
(3) The exemption under this division does not apply for a 10,788
taxable year to any corporation having on the first day of 10,789
January of the tax year or at any time during the taxable year 10,791
ending immediately preceding the first day of January of the tax 10,793
year a related member which, on the first day of January of the 10,794
tax year or during any portion of such taxable year of the 10,795
corporation, has nexus in or with this state under the 10,796
Constitution of the United States or holds a certificate of 10,798
compliance with the laws of this state authorizing it to do 10,799
business in this state.
(4) With respect to allowing the exemption under this 10,801
division, the tax commissioner shall be guided by the doctrines 10,802
of "economic reality," "sham transaction," "step transaction," 10,803
and "substance over form." A corporation shall bear the burden 10,804
of establishing by a preponderance of the evidence that any 10,805
transaction giving rise to an exemption claimed under this 10,806
division did not have as a principal purpose the avoidance of any 10,808
portion of the tax imposed by section 5733.06 of the Revised
Code.
Application of the doctrines listed in division (D)(4) of 10,811
this section is not limited to this division. 10,812
Sec. 5733.33. (A) As used in this section: 10,821
(1) "Manufacturing machinery and equipment" means engines 10,823
and machinery, and tools and implements, of every kind used, or 10,824
designed to be used, in refining and manufacturing. 10,826
"MANUFACTURING MACHINERY AND EQUIPMENT" DOES NOT INCLUDE PROPERTY
ACQUIRED AFTER DECEMBER 31, 1999, THAT IS USED: 10,827
(a) FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY; 10,829
(b) FOR THE GENERATION OF ELECTRICITY IF FIFTY PER CENT OR 10,831
253
MORE OF THE ELECTRICITY THAT THE PROPERTY GENERATES IS CONSUMED, 10,832
DURING THE ONE-HUNDRED-TWENTY-MONTH PERIOD COMMENCING WITH THE 10,834
DATE THE PROPERTY IS PLACED IN SERVICE, BY PERSONS THAT ARE NOT 10,835
RELATED MEMBERS TO THE PERSON WHO GENERATES THE ELECTRICITY. 10,836
(2) "New manufacturing machinery and equipment" means 10,838
manufacturing machinery and equipment, the original use in this 10,839
state of which commences with the taxpayer or with a partnership 10,840
of which the taxpayer is a partner. "NEW MANUFACTURING MACHINERY 10,842
AND EQUIPMENT" DOES NOT INCLUDE PROPERTY ACQUIRED AFTER DECEMBER 10,843
31, 1999, THAT IS USED:
(a) FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY; 10,845
(b) FOR THE GENERATION OF ELECTRICITY IF FIFTY PER CENT OR 10,847
MORE OF THE ELECTRICITY THAT THE PROPERTY GENERATES IS CONSUMED, 10,848
DURING THE ONE-HUNDRED-TWENTY-MONTH PERIOD COMMENCING WITH THE 10,850
DATE THE PROPERTY IS PLACED IN SERVICE, BY PERSONS THAT ARE NOT 10,851
RELATED MEMBERS TO THE PERSON WHO GENERATES THE ELECTRICITY. 10,852
(3)(a) "Purchase" has the same meaning as in section 10,854
179(d)(2) of the Internal Revenue Code. 10,855
(b) Any purchase, for purposes of this section, is 10,857
considered to occur at the time the agreement to acquire the 10,858
property to be purchased becomes binding. 10,859
(c) Notwithstanding section 179(d) of the Internal Revenue 10,861
Code, a taxpayer's direct or indirect acquisition of new 10,862
manufacturing machinery and equipment is not purchased on or 10,863
after July 1, 1995, if the taxpayer, or a person whose 10,864
relationship to the taxpayer is described in subparagraphs (A), 10,865
(B), or (C) of section 179(d)(2) of the Internal Revenue Code, 10,866
had directly or indirectly entered into a binding agreement to 10,867
acquire the property at any time prior to July 1, 1995. 10,868
(4) "Qualifying period" means the period that begins July 10,870
1, 1995, and ends December 31, 2000. 10,871
(5) "County average new manufacturing machinery and 10,873
equipment investment" means either of the following: 10,874
(a) The average annual cost of new manufacturing machinery 10,877
254
and equipment purchased for use in the county during baseline 10,878
years, in the case of a taxpayer or partnership that was in 10,879
existence for more than one year during baseline years. 10,880
(b) Zero, in the case of a taxpayer or partnership that 10,882
was not in existence for more than one year during baseline 10,883
years. 10,884
(6) "Partnership" includes a limited liability company 10,887
formed under Chapter 1705. of the Revised Code or under the laws 10,889
of any other state, provided that the company is not classified 10,890
for federal income tax purposes as an association taxable as a 10,891
corporation. 10,892
(7) "Partner" includes a member of a limited liability 10,894
company formed under Chapter 1705. of the Revised Code or under 10,896
the laws of any other state, provided that the company is not 10,897
classified for federal income tax purposes as an association 10,898
taxable as a corporation. 10,899
(8) "Distressed area" means either a municipal corporation 10,901
that has a population of at least fifty thousand or a county that 10,903
meets two of the following criteria of economic distress, or a 10,904
municipal corporation the majority of the population of which is 10,905
situated in such a county:
(a) Its average rate of unemployment, during the most 10,908
recent five-year period for which data are available, is equal to 10,909
at least one hundred twenty-five per cent of the average rate of 10,910
unemployment for the United States for the same period;
(b) It has a per capita income equal to or below eighty 10,913
per cent of the median county per capita income of the United 10,914
States as determined by the most recently available figures from 10,915
the United States census bureau; 10,916
(c)(i) In the case of a municipal corporation, at least 10,919
twenty per cent of the residents have a total income for the most 10,920
recent census year that is below the official poverty line; 10,921
(ii) In the case of a county, in intercensal years, the 10,924
county has a ratio of transfer payment income to total county 10,925
255
income equal to or greater than twenty-five per cent. 10,926
(9) "Eligible area" means a distressed area, a labor 10,928
surplus area, an inner city area, or a situational distress area. 10,930
(10) "Inner city area" means, in a municipal corporation 10,932
that has a population of at least one hundred thousand and does 10,933
not meet the criteria of a labor surplus area or a distressed 10,934
area, targeted investment areas established by the municipal 10,935
corporation within its boundaries that are comprised of the most 10,936
recent census block tracts that individually have at least twenty 10,937
per cent of their population at or below the state poverty level 10,938
or other census block tracts contiguous to such census block 10,939
tracts.
(11) "Labor surplus area" means an area designated as a 10,941
labor surplus area by the United States department of labor. 10,943
(12) "Official poverty line" has the same meaning as in 10,945
division (A) of section 3923.51 of the Revised Code. 10,946
(13) "Situational distress area" means a county or a 10,948
municipal corporation that has experienced or is experiencing a 10,949
closing or downsizing of a major employer, that will adversely 10,950
affect the county's or municipal corporation's economy. In order 10,952
to be designated as a situational distress area for a period not 10,953
to exceed thirty-six months, the county or municipal corporation 10,954
may petition the director of development. The petition shall 10,955
include written documentation that demonstrates all of the 10,956
following adverse effects on the local economy: 10,957
(a) The number of jobs lost by the closing or downsizing; 10,959
(b) The impact that the job loss has on the county's or 10,962
municipal corporation's unemployment rate as measured by the Ohio 10,963
bureau of employment services; 10,964
(c) The annual payroll associated with the job loss; 10,966
(d) The amount of state and local taxes associated with 10,968
the job loss;
(e) The impact that the closing or downsizing has on the 10,970
suppliers located in the county or municipal corporation. 10,971
256
(14) "Cost" has the same meaning and limitation as in 10,973
section 179(d)(3) of the Internal Revenue Code. 10,974
(15) "Baseline years" means: 10,976
(a) Calendar years 1992, 1993, and 1994, with regard to a 10,978
credit claimed for the purchase during calendar year 1995, 1996, 10,979
1997, or 1998 of new manufacturing machinery and equipment; 10,980
(b) Calendar years 1993, 1994, and 1995, with regard to a 10,982
credit claimed for the purchase during calendar year 1999 of new 10,983
manufacturing machinery and equipment; 10,984
(c) Calendar years 1994, 1995, and 1996, with regard to a 10,986
credit claimed for the purchase during calendar year 2000 of new 10,987
manufacturing machinery and equipment. 10,988
(B)(1) A nonrefundable credit is allowed against the tax 10,991
imposed by section 5733.06 of the Revised Code for a taxpayer 10,992
that purchases new manufacturing machinery and equipment during 10,993
the qualifying period, provided that the new manufacturing 10,994
machinery and equipment are installed in this state no later than 10,995
December 31, 2001. 10,996
(2) The credit is also available to a taxpayer that is a 10,998
partner in a partnership that purchases new manufacturing 10,999
machinery and equipment during the qualifying period, provided 11,000
that the partnership installs the new manufacturing machinery and 11,001
equipment in this state no later than December 31, 2001. The 11,002
taxpayer shall determine the credit amount as provided in 11,004
division (H) of this section.
(3)(a) Except as otherwise provided in division (B)(3)(b) 11,006
of this section, a credit may be claimed under this section in 11,007
excess of one million dollars only if the cost of all 11,008
manufacturing machinery and equipment owned in this state by the 11,009
taxpayer claiming the credit on the last day of the calendar year 11,010
exceeds the cost of all manufacturing machinery and equipment 11,011
owned in this state by the taxpayer on the first day of that 11,012
calendar year.
As used in division (B)(3)(a) of this section, "calendar 11,015
257
year" means the calendar year in which the machinery and
equipment for which the credit is claimed was purchased. 11,016
(b) Division (B)(3)(a) of this section does not apply if 11,019
the taxpayer claiming the credit applies for and is issued a 11,020
waiver of the requirement of that division. A taxpayer may apply 11,021
to the director of the department of development for such a 11,022
waiver in the manner prescribed by the director, and the director 11,023
may issue such a waiver if the director determines that granting 11,024
the credit is necessary to increase or retain employees in this 11,026
state, and that the credit has not caused relocation of 11,027
manufacturing machinery and equipment among counties within this 11,028
state for the primary purpose of qualifying for the credit. 11,029
(C)(1) Except as otherwise provided in division (C)(2) of 11,032
this section, the credit amount is equal to seven and one-half 11,033
per cent of the excess of the cost of the new manufacturing 11,034
machinery and equipment purchased during the calendar year for 11,035
use in a county over the county average new manufacturing 11,036
machinery and equipment investment for that county. 11,037
(2) As used in division (C)(2) of this section, "county 11,040
excess" means the taxpayer's excess cost for a county as computed 11,041
under division (C)(1) of this section.
For a taxpayer with a county excess, whose purchases 11,043
included purchases for use in any eligible area in the county, 11,044
the credit amount is equal to thirteen and one-half per cent of 11,045
the cost of the new manufacturing machinery and equipment 11,047
purchased during the calendar year for use in the eligible areas 11,048
in the county, provided that the cost subject to the thirteen and 11,049
one-half per cent rate shall not exceed the county excess. If 11,050
the county excess is greater than the cost of the new 11,051
manufacturing machinery and equipment purchased during the 11,052
calendar year for use in eligible areas in the county, the credit 11,053
amount also shall include an amount equal to seven and one-half 11,055
per cent of the amount of the difference.
(3) If a taxpayer is allowed a credit for purchases of new 11,057
258
manufacturing machinery and equipment in more than one county or 11,058
eligible area, it shall aggregate the amount of those credits 11,059
each year.
(4) The taxpayer shall claim one-seventh of the credit 11,061
amount for the tax year immediately following the calendar year 11,062
in which the new manufacturing machinery and equipment is 11,063
purchased for use in the county by the taxpayer or partnership. 11,065
One-seventh of the taxpayer credit amount is allowed for each of 11,066
the six ensuing tax years. Except for carried-forward amounts, 11,067
the taxpayer is not allowed any credit amount remaining if the 11,068
new manufacturing machinery and equipment is sold by the taxpayer 11,070
or partnership or is transferred by the taxpayer or partnership 11,071
out of the county before the end of the seven-year period. 11,072
(5)(a) A taxpayer that acquires manufacturing machinery 11,074
and equipment as a result of a merger with the taxpayer with whom 11,076
commenced the original use in this state of the manufacturing 11,077
machinery and equipment, or with a taxpayer that was a partner in 11,078
a partnership with whom commenced the original use in this state 11,079
of the manufacturing machinery and equipment, is entitled to any 11,080
remaining or carried-forward credit amounts to which the taxpayer 11,081
was entitled.
(b) A taxpayer that enters into an agreement under 11,083
division (C)(3) of section 5709.62 of the Revised Code and that 11,084
acquires manufacturing machinery or equipment as a result of 11,086
purchasing a large manufacturing facility, as defined in section
5709.61 of the Revised Code, from another taxpayer with whom 11,087
commenced the original use in this state of the manufacturing 11,089
machinery or equipment, and that operates the large manufacturing 11,090
facility so purchased, is entitled to any remaining or
carried-forward credit amounts to which the other taxpayer who 11,091
sold the facility would have been entitled under this section had 11,093
the other taxpayer not sold the manufacturing facility or 11,094
equipment.
(c) New manufacturing machinery and equipment is not 11,097
259
considered sold if a pass-through entity transfers to another 11,098
pass-through entity substantially all of its assets as part of a 11,099
plan of reorganization under which substantially all gain and 11,100
loss is not recognized by the pass-through entity that is 11,101
transferring the new manufacturing machinery and equipment to the 11,102
transferee and under which the transferee's basis in the new
manufacturing machinery and equipment is determined, in whole or 11,103
in part, by reference to the basis of the pass-through entity 11,104
which transferred the new manufacturing machinery and equipment 11,105
to the transferee. 11,106
(d) Division (C)(5) of this section shall apply only if 11,108
the acquiring taxpayer or transferee does not sell the new 11,110
manufacturing machinery and equipment or transfer the new 11,111
manufacturing machinery and equipment out of the county before 11,112
the end of the seven-year period to which division (C)(4) of this 11,113
section refers.
(e) Division (C)(5)(b) of this section applies only to the 11,116
extent that the taxpayer that sold the manufacturing machinery or 11,117
equipment, upon request, timely provides to the tax commissioner 11,118
any information that the tax commissioner considers to be 11,119
necessary to ascertain any remaining or carried-forward amounts 11,120
to which the taxpayer that sold the facility would have been 11,121
entitled under this section had the taxpayer not sold the 11,122
manufacturing machinery or equipment. Nothing in division 11,123
(C)(5)(b) or (e) of this section shall be construed to allow a 11,125
taxpayer to claim any credit amount with respect to the acquired 11,126
manufacturing machinery or equipment that is greater than the 11,127
amount that would have been available to the other taxpayer that 11,128
sold the manufacturing machinery or equipment had the other 11,129
taxpayer not sold the manufacturing machinery or equipment. 11,130
(D) The taxpayer shall claim the credit in the order 11,133
required under section 5733.98 of the Revised Code. Each year, 11,134
any credit amount in excess of the tax due under section 5733.06 11,135
of the Revised Code after allowing for any other credits that 11,137
260
precede the credit under this section in that order may be 11,138
carried forward for three tax years. 11,139
(E) A taxpayer purchasing new manufacturing machinery and 11,142
equipment and intending to claim the credit shall file, with the 11,143
department of development, a notice of intent to claim the credit 11,144
on a form prescribed by the department of development. The 11,145
department of development shall inform the tax commissioner of 11,146
the notice of intent to claim the credit. 11,147
(F) The director of development shall annually certify, by 11,150
the first day of January of each year during the qualifying 11,151
period, the eligible areas for the tax credit for the calendar 11,152
year that includes that first day of January. The director shall 11,153
send a copy of the certification to the tax commissioner. 11,154
(G) New manufacturing machinery and equipment for which a 11,156
taxpayer claims the credit under section 5733.31, 5733.311, 11,158
5747.26, or 5747.261 of the Revised Code shall not be considered 11,160
new manufacturing machinery and equipment for purposes of the 11,161
credit under this section.
(H)(1) With regard to a taxpayer that is a partner in a 11,163
partnership, the county average new manufacturing machinery and 11,164
equipment investment shall be determined based on the number of 11,165
years, if any, the partnership was in existence during baseline 11,166
years. In determining the county average new manufacturing 11,167
machinery and equipment investment, the excess of the cost of new 11,168
manufacturing machinery and equipment purchased during the 11,169
calendar year, and all other amounts necessary to calculate the
credit allowed by this section, the taxpayer shall include the 11,170
taxpayer's distributive share of the cost of new manufacturing 11,171
machinery and equipment purchased by a partnership in which the 11,172
corporation had a direct or indirect investment during the 11,173
calendar year prior to the first day of a tax year for which the 11,174
taxpayer is claiming the credit. These determinations and 11,175
calculations shall be made for the taxpayer's calendar year 11,176
during which the partnership made the purchase. 11,177
261
(2) Nothing in this section shall be construed to limit or 11,179
disallow pass-through treatment of a pass-through entity's 11,180
income, deductions, credits, or other amounts necessary to 11,181
compute the tax imposed by section 5733.06 of the Revised Code 11,182
and the credits allowed by this chapter. 11,183
(I)(1) NOTWITHSTANDING SECTIONS 5733.11 AND 5747.13 OF THE 11,186
REVISED CODE, BUT SUBJECT TO DIVISION (I)(2) OF THIS SECTION, THE 11,188
TAX COMMISSIONER MAY ISSUE AN ASSESSMENT AGAINST A PERSON WITH
RESPECT TO A CREDIT CLAIMED UNDER THIS SECTION FOR NEW 11,189
MANUFACTURING MACHINERY AND EQUIPMENT DESCRIBED IN DIVISION 11,191
(A)(1)(b) OR (2)(b) OF THIS SECTION, IF THE MACHINERY OR 11,193
EQUIPMENT SUBSEQUENTLY DOES NOT QUALIFY FOR THE CREDIT. 11,194
(2) DIVISION (I)(1) OF THIS SECTION SHALL NOT APPLY AFTER 11,196
THE TWENTY-FOURTH MONTH FOLLOWING THE LAST DAY OF THE PERIOD 11,197
DESCRIBED IN DIVISIONS (A)(1)(b) AND (2)(b) OF THIS SECTION. 11,200
Sec. 5733.39. (A) AS USED IN THIS SECTION: 11,203
(1) "COMPLIANCE FACILITY" MEANS PROPERTY THAT IS DESIGNED, 11,205
CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC 11,206
GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING WITH 11,208
PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE 11,210
"CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 11,211
7651, AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN 11,212
COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE 11,213
REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER 11,214
THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS 11,215
ARE EMITTED INTO THE ATMOSPHERE. "COMPLIANCE FACILITY" ALSO 11,216
INCLUDES ANY OF THE FOLLOWING: 11,217
(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL 11,219
BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE 11,220
PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL 11,221
PROCESSED BY THE COMPLIANCE FACILITY IS BURNED; 11,222
(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY 11,224
WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT 11,225
ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, 11,226
262
AND OPERATION, OF THE COMPLIANCE FACILITY; 11,227
(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 11,229
3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES 11,230
PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION 11,231
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 11,232
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF 11,233
WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME 11,234
PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT 11,235
PRODUCES THE WASTES DISPOSED OF AT THE FACILITY; 11,236
(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, 11,238
OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING 11,239
FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS 11,240
PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION 11,241
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 11,242
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED; 11,243
(e) A FLUE GAS DESULFURIZATION SYSTEM THAT IS CONNECTED TO 11,246
A COAL-FIRED ELECTRIC GENERATING UNIT AND THAT EITHER WAS PLACED 11,247
IN SERVICE PRIOR TO JULY 10, 1991, OR CONSTRUCTION OF WHICH WAS 11,248
COMMENCED PRIOR TO THAT DATE;
(f) FACILITIES OR EQUIPMENT ACQUIRED, CONSTRUCTED, OR 11,251
INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING UNIT
PRIMARILY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS PRODUCED BY 11,252
A COMPLIANCE FACILITY OR OTHER COAL COMBUSTION BYPRODUCTS 11,253
PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE COMPLIANCE 11,254
FACILITY IS INCORPORATED OR CONNECTED. 11,255
(2) "OHIO COAL" HAS THE SAME MEANING AS IN SECTION 4913.01 11,258
OF THE REVISED CODE. 11,259
(3) "SALE AND LEASEBACK TRANSACTION" HAS THE SAME MEANING 11,261
AS IN SECTION 5727.01 OF THE REVISED CODE. 11,264
(B) BEGINNING IN TAX YEAR 2002, AN ELECTRIC COMPANY SHALL 11,267
BE ALLOWED A NONREFUNDABLE CREDIT AGAINST THE TAX IMPOSED BY 11,268
SECTION 5733.06 OF THE REVISED CODE FOR OHIO COAL USED IN ANY OF 11,271
ITS COAL-FIRED ELECTRIC GENERATING UNITS AFTER APRIL 30, 2001. 11,272
SECTION 5733.057 OF THE REVISED CODE SHALL APPLY WHEN CALCULATING 11,276
263
THE CREDIT ALLOWED BY THIS SECTION. THE CREDIT SHALL BE CLAIMED 11,277
AT THE RATE OF ONE DOLLAR PER TON OF OHIO COAL BURNED IN A 11,278
COAL-FIRED ELECTRIC GENERATING UNIT DURING THE TAXABLE YEAR 11,279
ENDING IMMEDIATELY PRECEDING THE TAX YEAR. THE CREDIT IS ALLOWED 11,281
ONLY IF ALL OF THE FOLLOWING CONDITIONS ARE MET DURING SUCH 11,282
TAXABLE YEAR:
(1) THE COAL-FIRED ELECTRIC GENERATING UNIT IS OWNED AND 11,284
USED BY THE COMPANY CLAIMING THE CREDIT OR LEASED AND USED BY 11,285
THAT COMPANY UNDER A SALE AND LEASEBACK TRANSACTION. 11,286
(2) A COMPLIANCE FACILITY IS ATTACHED TO, INCORPORATED IN, 11,289
OR USED IN CONJUNCTION WITH THE COAL-FIRED GENERATING UNIT. 11,290
(3) EITHER OF THE FOLLOWING APPLIES: 11,292
(a) IN THE CASE OF A COAL-FIRED ELECTRIC GENERATING UNIT 11,295
THAT BURNS COAL IN COMBINATION WITH ANOTHER FUEL FOR THE PURPOSE 11,296
OF COMPLYING WITH PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER 11,299
TITLE IV OF THE "CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 11,305
2584, 42 U.S.C.A. 7651, AT LEAST EIGHTY PER CENT OF THE HEAT 11,307
INPUT DURING THE TAXABLE YEAR IS FROM OHIO COAL. 11,309
(b) IN THE CASE OF ANY OTHER COAL-FIRED ELECTRIC 11,311
GENERATING UNIT, AT LEAST NINETY PER CENT OF THE HEAT INPUT 11,312
DURING THE TAXABLE YEAR IS FROM OHIO COAL. 11,314
(C) THE CREDIT SHALL BE CLAIMED IN THE ORDER REQUIRED 11,317
UNDER SECTION 5733.98 OF THE REVISED CODE. IF THE CREDIT EXCEEDS 11,319
THE TAX IMPOSED BY SECTION 5733.06 OF THE REVISED CODE AFTER ALL 11,322
OTHER NONREFUNDABLE CREDITS FOR THE TAX YEAR AS SET FORTH IN 11,323
SECTION 5733.98 OF THE REVISED CODE, THE EXCESS SHALL NOT BE 11,325
ALLOWED AS A CREDIT EITHER AGAINST THE TAXES DUE FOR ANY OTHER 11,326
YEAR OR AGAINST ANY OTHER TAX OR FEE. NOTHING HEREIN SHALL BE 11,327
CONSTRUED TO PROVIDE FOR CARRYOVER OR CARRYBACK OF ANY UNUSED 11,329
CREDIT PROVIDED BY ANY OTHER SECTION OF THE REVISED CODE OR FOR 11,331
THE APPLICATION OF ANY UNUSED CREDIT PROVIDED BY ANY OTHER 11,332
SECTION OF THE REVISED CODE AGAINST ANY OTHER TAX OR FEE IF SUCH 11,335
SECTION DOES NOT EXPRESSLY PROVIDE EITHER FOR A CARRYOVER OR 11,336
CARRYBACK OF ANY UNUSED CREDIT OR FOR THE APPLICATION OF AN 11,337
264
UNUSED CREDIT AGAINST ANY OTHER TAX OR FEE. 11,338
(D) THE SUM OF THE CREDITS ALLOWED FOR ALL YEARS UNDER 11,341
SECTION 5727.391 OF THE REVISED CODE FOR COAL BURNED IN EACH 11,343
COAL-FIRED ELECTRIC GENERATING UNIT AND THE SUM OF THE CREDITS 11,344
ALLOWED FOR ALL TAX YEARS UNDER THIS SECTION SHALL NOT EXCEED 11,345
TWENTY PER CENT OF THE COST OF THE COMPLIANCE FACILITY ATTACHED 11,346
TO, INCORPORATED IN, OR USED IN CONJUNCTION WITH THE UNIT. IF A 11,347
COMPLIANCE FACILITY IS USED IN CONJUNCTION WITH MORE THAN ONE 11,348
GENERATING UNIT, THE TAX COMMISSIONER SHALL PRORATE ITS COST 11,349
AMONG THE UNITS. 11,350
(E) THE DIRECTOR OF ENVIRONMENTAL PROTECTION, UPON THE 11,353
REQUEST OF THE TAX COMMISSIONER, SHALL CERTIFY WHETHER A FACILITY 11,354
IS A COMPLIANCE FACILITY. IN THE CASE OF A COMPLIANCE FACILITY 11,355
OWNED BY AN ELECTRIC COMPANY, THE PUBLIC UTILITIES COMMISSION 11,356
SHALL CERTIFY TO THE TAX COMMISSIONER THE COST OF THE FACILITY AS 11,357
OF THE DATE IT WAS PLACED IN SERVICE. IN THE CASE OF A 11,358
COMPLIANCE FACILITY OWNED BY A PERSON OTHER THAN AN ELECTRIC 11,359
COMPANY, THE TAX COMMISSIONER SHALL DETERMINE THE COST OF THE 11,360
FACILITY AS OF THE DATE IT WAS PLACED IN SERVICE. IF THE OWNER 11,361
OF SUCH A FACILITY FAILS TO FURNISH THE INFORMATION NECESSARY TO 11,362
MAKE THAT DETERMINATION, NO CREDIT SHALL BE ALLOWED. 11,363
Sec. 5733.98. (A) To provide a uniform procedure for 11,372
calculating the amount of tax imposed by section 5733.06 of the 11,373
Revised Code that is due under this chapter, a taxpayer shall 11,375
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised 11,376
Code:
(1) The credit for taxes paid by a qualifying pass-through 11,378
entity allowed under section 5733.0611 of the Revised Code; 11,379
(2) The credit for qualifying affiliated groups under 11,381
section 5733.068 of the Revised Code; 11,382
(3) The subsidiary corporation credit under section 11,384
5733.067 of the Revised Code; 11,385
(4) The savings and loan assessment credit under section 11,387
265
5733.063 of the Revised Code; 11,388
(5) The credit for recycling and litter prevention 11,390
donations under section 5733.064 of the Revised Code; 11,392
(6) The credit for employers that enter into agreements 11,395
with child day-care centers under section 5733.36 of the Revised 11,396
Code;
(7) The credit for employers that reimburse employee child 11,398
day-care expenses under section 5733.38 of the Revised Code; 11,400
(8) The credit for manufacturing investments under section 11,402
5733.061 of the Revised Code; 11,403
(9) The credit for purchases of new manufacturing 11,405
machinery and equipment under section 5733.31 or section 5733.311 11,406
of the Revised Code; 11,407
(10) The second credit for purchases of new manufacturing 11,410
machinery and equipment under section 5733.33 of the Revised 11,411
Code;
(11) The enterprise zone credit under section 5709.66 of 11,413
the Revised Code; 11,414
(12) The credit for the eligible costs associated with a 11,416
voluntary action under section 5733.34 of the Revised Code; 11,418
(13) The credit for employers that establish on-site child 11,421
day-care under section 5733.37 of the Revised Code; 11,422
(14) The credit for purchases of qualifying grape 11,424
production property under section 5733.32 of the Revised Code; 11,425
(15) The export sales credit under section 5733.069 of the 11,428
Revised Code;
(16) The credit for research and development and 11,430
technology transfer investors under section 5733.35 of the 11,431
Revised Code;
(17) The enterprise zone credits under section 5709.65 of 11,434
the Revised Code;
(18) THE CREDIT FOR USING OHIO COAL UNDER SECTION 5733.39 11,436
OF THE REVISED CODE;
(19) The refundable jobs creation credit under section 11,438
266
5733.0610 of the Revised Code. 11,439
(B) For any credit except the refundable jobs creation 11,441
credit, the amount of the credit for a tax year shall not exceed 11,442
the tax due after allowing for any other credit that precedes it 11,443
in the order required under this section. Any excess amount of a 11,444
particular credit may be carried forward if authorized under the 11,445
section creating that credit. 11,446
Sec. 5739.011. (A) As used in this section: 11,455
(1) "Manufacturer" means a person who is engaged in 11,457
manufacturing, processing, assembling, or refining a product for 11,458
sale. 11,459
(2) "Manufacturing facility" means a single location where 11,461
a manufacturing operation is conducted, including locations 11,462
consisting of one or more buildings or structures in a contiguous 11,463
area owned or controlled by the manufacturer. 11,464
(3) "Materials handling" means the movement of the product 11,466
being or to be manufactured, during which movement the product is 11,467
not undergoing any substantial change or alteration in its state 11,468
or form. 11,469
(4) "Testing" means a process or procedure to identify the 11,471
properties or assure the quality of a material or product. 11,472
(5) "Completed product" means a manufactured item that is 11,474
in the form and condition as it will be sold by the manufacturer. 11,475
An item is completed when all processes that change or alter its 11,476
state or form or enhance its value are finished, even though the 11,477
item subsequently will be tested to ensure its quality or be 11,478
packaged for storage or shipment. 11,479
(6) "Continuous manufacturing operation" means the process 11,481
in which raw materials or components are moved through the steps 11,482
whereby manufacturing occurs. Materials handling of raw 11,483
materials or parts from the point of receipt or pre-production 11,484
PREPRODUCTION storage or of a completed product, to or from 11,485
storage, to or from packaging, or to the place from which the 11,487
completed product will be shipped, is not a part of a continuous 11,488
267
manufacturing operation. 11,489
(B) For purposes of division (E)(9) of section 5739.01 of 11,491
the Revised Code, the "thing transferred" includes, but is not 11,492
limited to, any of the following: 11,493
(1) Production machinery and equipment that act upon the 11,495
product or machinery and equipment that treat the materials or 11,496
parts in preparation for the manufacturing operation; 11,497
(2) Materials handling equipment that moves the product 11,499
through a continuous manufacturing operation; equipment that 11,500
temporarily stores the product during the manufacturing 11,501
operation; or, excluding motor vehicles licensed to operate on 11,502
public highways, equipment used in intraplant or interplant 11,503
transfers of work in process where the plant or plants between 11,504
which such transfers occur are manufacturing facilities operated 11,505
by the same person; 11,506
(3) Catalysts, solvents, water, acids, oil, and similar 11,508
consumables that interact with the product and that are an 11,509
integral part of the manufacturing operation; 11,510
(4) Machinery, equipment, and other tangible personal 11,512
property used during the manufacturing operation that control, 11,513
physically support, produce power for, lubricate, or are 11,514
otherwise necessary for the functioning of production machinery 11,515
and equipment and the continuation of the manufacturing 11,516
operation; 11,517
(5) Machinery, equipment, fuel, power, material, parts, 11,519
and other tangible personal property used to manufacture 11,520
machinery, equipment, or other tangible personal property used in 11,521
manufacturing a product for sale; 11,522
(6) Machinery, equipment, and other tangible personal 11,524
property used by a manufacturer to test raw materials, the 11,525
product being manufactured, or the completed product; 11,526
(7) Machinery and equipment used to handle or temporarily 11,528
store scrap that is intended to be reused in the manufacturing 11,529
operation at the same manufacturing facility; 11,530
268
(8) Electricity, coke COKE, gas, water, steam, and similar 11,532
substances used in the manufacturing operation; machinery and 11,533
equipment used for, and fuel consumed in, producing or extracting 11,534
those substances; and machinery, equipment, and other tangible 11,535
personal property used to treat, filter, pump, alter voltage, or 11,536
otherwise make the substance suitable for use in the 11,537
manufacturing operation; AND MACHINERY AND EQUIPMENT USED TO 11,538
PRODUCE ELECTRICITY FOR USE IN THE MANUFACTURING OPERATION; 11,539
(9) Machinery, equipment, and other tangible personal 11,541
property used to transport or transmit electricity, coke, gas, 11,542
water, steam, or similar substances used in the manufacturing 11,543
operation from the point of generation, if produced by the 11,544
manufacturer, or from the point where the substance enters the 11,545
manufacturing facility, if purchased by the manufacturer, to the 11,546
manufacturing operation; 11,547
(10) Machinery, equipment, and other tangible personal 11,549
property that treats, filters, cools, refines, or otherwise 11,550
renders water, steam, acid, oil, solvents, or similar substances 11,551
used in the manufacturing operation reusable, provided that the 11,552
substances are intended for reuse and not for disposal, sale, or 11,553
transportation from the manufacturing facility; 11,554
(11) Parts, components, and repair and installation 11,556
services for items described in division (B) of this section. 11,557
(C) For purposes of division (E)(9) of section 5739.01 of 11,559
the Revised Code, the "thing transferred" does not include any of 11,560
the following: 11,561
(1) Tangible personal property used in administrative, 11,563
personnel, security, inventory control, record-keeping, ordering, 11,564
billing, or similar functions; 11,565
(2) Tangible personal property used in storing raw 11,567
materials or parts prior to the commencement of the manufacturing 11,568
operation or used to handle or store a completed product, 11,569
including storage that actively maintains a completed product in 11,570
a marketable state or form; 11,571
269
(3) Tangible personal property used to handle or store 11,573
scrap or waste intended for disposal, sale, or other disposition, 11,574
other than reuse in the manufacturing operation at the same 11,575
manufacturing facility; 11,576
(4) Tangible personal property that is or is to be 11,578
incorporated into realty; 11,579
(5) Machinery, equipment, and other tangible personal 11,581
property used for ventilation, dust, or gas collection, humidity 11,582
or temperature regulation, or similar environmental control, 11,583
except machinery, equipment, and other tangible personal property 11,584
that totally regulates the environment in a special and limited 11,585
area of the manufacturing facility where the regulation is 11,586
essential for production to occur; 11,587
(6) Tangible personal property used for the protection and 11,589
safety of workers, unless the property is attached to or 11,590
incorporated into machinery and equipment used in a continuous 11,591
manufacturing operation; 11,592
(7) Tangible personal property used to store fuel, water, 11,594
solvents, acid, oil, or similar items consumed in the 11,595
manufacturing operation; 11,596
(8) Machinery, equipment, and other tangible personal 11,598
property used for research and development; 11,599
(9) Machinery, equipment, and other tangible personal 11,601
property used to clean, repair, or maintain real or personal 11,602
property in the manufacturing facility; 11,603
(10) Motor vehicles registered for operation on the public 11,605
highways. 11,606
(D) For purposes of division (E)(9) of section 5739.01 of 11,608
the Revised Code, if the "thing transferred" is a machine used by 11,609
a manufacturer in both a taxable and an exempt manner, it shall 11,610
be totally taxable or totally exempt from taxation based upon its 11,611
quantified primary use. If the "things transferred" are 11,612
fungibles, they shall be taxed based upon the proportion of the 11,613
fungibles used in a taxable manner. 11,614
270
Sec. 5739.02. For the purpose of providing revenue with 11,623
which to meet the needs of the state, for the use of the general 11,624
revenue fund of the state, for the purpose of securing a thorough 11,625
and efficient system of common schools throughout the state, for 11,626
the purpose of affording revenues, in addition to those from 11,627
general property taxes, permitted under constitutional 11,628
limitations, and from other sources, for the support of local 11,629
governmental functions, and for the purpose of reimbursing the 11,630
state for the expense of administering this chapter, an excise 11,631
tax is hereby levied on each retail sale made in this state. 11,632
(A) The tax shall be collected pursuant to the schedules 11,634
in section 5739.025 of the Revised Code. 11,635
The tax applies and is collectible when the sale is made, 11,637
regardless of the time when the price is paid or delivered. 11,638
In the case of a sale, the price of which consists in whole 11,640
or in part of rentals for the use of the thing transferred, the 11,641
tax, as regards such rentals, shall be measured by the 11,642
installments thereof. 11,643
In the case of a sale of a service defined under division 11,645
(MM) or (NN) of section 5739.01 of the Revised Code, the price of 11,646
which consists in whole or in part of a membership for the 11,647
receipt of the benefit of the service, the tax applicable to the 11,648
sale shall be measured by the installments thereof. 11,649
(B) The tax does not apply to the following: 11,651
(1) Sales to the state or any of its political 11,653
subdivisions, or to any other state or its political subdivisions 11,654
if the laws of that state exempt from taxation sales made to this 11,655
state and its political subdivisions; 11,656
(2) Sales of food for human consumption off the premises 11,658
where sold; 11,659
(3) Sales of food sold to students only in a cafeteria, 11,661
dormitory, fraternity, or sorority maintained in a private, 11,662
public, or parochial school, college, or university; 11,663
(4) Sales of newspapers, and of magazine subscriptions 11,665
271
shipped by second class mail, and sales or transfers of magazines 11,666
distributed as controlled circulation publications; 11,667
(5) The furnishing, preparing, or serving of meals without 11,669
charge by an employer to an employee provided the employer 11,670
records the meals as part compensation for services performed or 11,671
work done; 11,672
(6) Sales of motor fuel upon receipt, use, distribution, 11,675
or sale of which in this state a tax is imposed by the law of 11,676
this state, but this exemption shall not apply to the sale of 11,677
motor fuel on which a refund of the tax is allowable under 11,678
section 5735.14 of the Revised Code; and the tax commissioner may 11,679
deduct the amount of tax levied by this section applicable to the 11,680
price of motor fuel when granting a refund of motor fuel tax 11,681
pursuant to section 5735.14 of the Revised Code and shall cause 11,682
the amount deducted to be paid into the general revenue fund of 11,683
this state;
(7) Sales of natural gas by a natural gas company, of 11,685
electricity by an electric company, of water by a water-works 11,686
company, or of steam by a heating company, if in each case the 11,687
thing sold is delivered to consumers through wires, pipes, or 11,688
conduits, and all sales of communications services by a telephone 11,689
or telegraph company, all terms as defined in section 5727.01 of 11,690
the Revised Code; 11,691
(8) Casual sales by a person, or auctioneer employed 11,693
directly by the person to conduct such sales, except as to such 11,695
sales of motor vehicles, watercraft or outboard motors required 11,696
to be titled under section 1548.06 of the Revised Code, 11,697
watercraft documented with the United States coast guard, 11,698
snowmobiles, and all-purpose vehicles as defined in section 11,699
4519.01 of the Revised Code; 11,700
(9) Sales of services or tangible personal property, other 11,702
than motor vehicles, mobile homes, and manufactured homes, by 11,704
churches or by nonprofit organizations operated exclusively for 11,705
charitable purposes as defined in division (B)(12) of this 11,706
272
section, provided that the number of days on which such tangible 11,707
personal property or services, other than items never subject to 11,708
the tax, are sold does not exceed six in any calendar year. If 11,709
the number of days on which such sales are made exceeds six in 11,710
any calendar year, the church or organization shall be considered 11,711
to be engaged in business and all subsequent sales by it shall be 11,712
subject to the tax. In counting the number of days, all sales by 11,713
groups within a church or within an organization shall be 11,714
considered to be sales of that church or organization, except 11,715
that sales made by separate student clubs and other groups of 11,716
students of a primary or secondary school, and sales made by a 11,717
parent-teacher association, booster group, or similar 11,718
organization that raises money to support or fund curricular or 11,719
extracurricular activities of a primary or secondary school, 11,720
shall not be considered to be sales of such school, and sales by 11,721
each such club, group, association, or organization shall be 11,722
counted separately for purposes of the six-day limitation. This 11,723
division does not apply to sales by a noncommercial educational 11,724
radio or television broadcasting station. 11,725
(10) Sales not within the taxing power of this state under 11,727
the Constitution of the United States; 11,728
(11) The transportation of persons or property, unless the 11,730
transportation is by a private investigation and security 11,731
service; 11,732
(12) Sales of tangible personal property or services to 11,734
churches, to organizations exempt from taxation under section 11,735
501(c)(3) of the Internal Revenue Code of 1986, and to any other 11,736
nonprofit organizations operated exclusively for charitable 11,737
purposes in this state, no part of the net income of which inures 11,738
to the benefit of any private shareholder or individual, and no 11,739
substantial part of the activities of which consists of carrying 11,740
on propaganda or otherwise attempting to influence legislation; 11,741
sales to offices administering one or more homes for the aged or 11,742
one or more hospital facilities exempt under section 140.08 of 11,743
273
the Revised Code; and sales to organizations described in 11,744
division (D) of section 5709.12 of the Revised Code. 11,745
"Charitable purposes" means the relief of poverty; the 11,747
improvement of health through the alleviation of illness, 11,748
disease, or injury; the operation of an organization exclusively 11,750
for the provision of professional, laundry, printing, and 11,751
purchasing services to hospitals or charitable institutions; the 11,753
operation of a home for the aged, as defined in section 5701.13 11,754
of the Revised Code; the operation of a radio or television 11,755
broadcasting station that is licensed by the federal 11,756
communications commission as a noncommercial educational radio or 11,757
television station; the operation of a nonprofit animal adoption 11,759
service or a county humane society; the promotion of education by 11,760
an institution of learning that maintains a faculty of qualified 11,761
instructors, teaches regular continuous courses of study, and
confers a recognized diploma upon completion of a specific 11,762
curriculum; the operation of a parent-teacher association, 11,763
booster group, or similar organization primarily engaged in the 11,764
promotion and support of the curricular or extracurricular 11,765
activities of a primary or secondary school; the operation of a 11,766
community or area center in which presentations in music, 11,767
dramatics, the arts, and related fields are made in order to 11,768
foster public interest and education therein; the production of 11,769
performances in music, dramatics, and the arts; or the promotion 11,771
of education by an organization engaged in carrying on research
in, or the dissemination of, scientific and technological 11,772
knowledge and information primarily for the public. 11,773
Nothing in this division shall be deemed to exempt sales to 11,775
any organization for use in the operation or carrying on of a 11,776
trade or business, or sales to a home for the aged for use in the 11,777
operation of independent living facilities as defined in division 11,778
(A) of section 5709.12 of the Revised Code. 11,779
(13) Building and construction materials and services sold 11,781
to construction contractors for incorporation into a structure or 11,782
274
improvement to real property under a construction contract with 11,783
this state or a political subdivision thereof, or with the United 11,784
States government or any of its agencies; building and 11,785
construction materials and services sold to construction 11,786
contractors for incorporation into a structure or improvement to 11,787
real property that are accepted for ownership by this state or 11,789
any of its political subdivisions, or by the United States 11,790
government or any of its agencies at the time of completion of 11,791
such structures or improvements; building and construction 11,792
materials sold to construction contractors for incorporation into 11,793
a horticulture structure or livestock structure for a person 11,794
engaged in the business of horticulture or producing livestock; 11,795
building materials and services sold to a construction contractor 11,796
for incorporation into a house of public worship or religious 11,797
education, or a building used exclusively for charitable purposes 11,798
under a construction contract with an organization whose purpose 11,799
is as described in division (B)(12) of this section; building and 11,800
construction materials sold for incorporation into the original 11,801
construction of a sports facility under section 307.696 of the 11,802
Revised Code; and building and construction materials and 11,803
services sold to a construction contractor for incorporation into 11,804
real property outside this state if such materials and services, 11,805
when sold to a construction contractor in the state in which the 11,806
real property is located for incorporation into real property in 11,807
that state, would be exempt from a tax on sales levied by that 11,808
state; 11,809
(14) Sales of ships or vessels or rail rolling stock used 11,811
or to be used principally in interstate or foreign commerce, and 11,812
repairs, alterations, fuel, and lubricants for such ships or 11,813
vessels or rail rolling stock; 11,814
(15) Sales to persons engaged in any of the activities 11,816
mentioned in division (E)(2) or (9) of section 5739.01 of the 11,817
Revised Code, to persons engaged in making retail sales, or to 11,818
persons who purchase for sale from a manufacturer tangible 11,819
275
personal property that was produced by the manufacturer in 11,820
accordance with specific designs provided by the purchaser, of 11,821
packages, including material and parts for packages, and of 11,822
machinery, equipment, and material for use primarily in packaging 11,823
tangible personal property produced for sale by or on the order 11,824
of the person doing the packaging, or sold at retail. "Packages" 11,825
includes bags, baskets, cartons, crates, boxes, cans, bottles, 11,826
bindings, wrappings, and other similar devices and containers, 11,827
and "packaging" means placing therein. 11,828
(16) Sales of food to persons using food stamp coupons to 11,830
purchase the food. As used in division (B)(16) of this section, 11,831
"food" has the same meaning as in the "Food Stamp Act of 1977," 11,832
91 Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations 11,833
adopted pursuant to that act. 11,834
(17) Sales to persons engaged in farming, agriculture, 11,836
horticulture, or floriculture, of tangible personal property for 11,837
use or consumption directly in the production by farming, 11,838
agriculture, horticulture, or floriculture of other tangible 11,839
personal property for use or consumption directly in the 11,840
production of tangible personal property for sale by farming, 11,841
agriculture, horticulture, or floriculture; or material and parts 11,842
for incorporation into any such tangible personal property for 11,843
use or consumption in production; and of tangible personal 11,844
property for such use or consumption in the conditioning or 11,845
holding of products produced by and for such use, consumption, or 11,846
sale by persons engaged in farming, agriculture, horticulture, or 11,847
floriculture, except where such property is incorporated into 11,848
real property; 11,849
(18) Sales of drugs dispensed by a licensed pharmacist 11,852
upon the order of a licensed health professional authorized to 11,854
prescribe drugs to a human being, as the term "licensed health
professional authorized to prescribe drugs" is defined in section 11,855
4729.01 of the Revised Code; insulin as recognized in the 11,857
official United States pharmacopoeia; urine and blood testing 11,858
276
materials when used by diabetics or persons with hypoglycemia to 11,859
test for glucose or acetone; hypodermic syringes and needles when 11,860
used by diabetics for insulin injections; epoetin alfa when 11,861
purchased for use in the treatment of persons with end-stage 11,862
renal disease; hospital beds when purchased for use by persons 11,864
with medical problems for medical purposes; and oxygen and 11,865
oxygen-dispensing equipment when purchased for use by persons 11,866
with medical problems for medical purposes;
(19) Sales of artificial limbs or portion thereof, breast 11,868
prostheses, and other prosthetic devices for humans; braces or 11,869
other devices for supporting weakened or nonfunctioning parts of 11,870
the human body; wheelchairs; devices used to lift wheelchairs 11,871
into motor vehicles and parts and accessories to such devices; 11,872
crutches or other devices to aid human perambulation; and items 11,873
of tangible personal property used to supplement impaired 11,874
functions of the human body such as respiration, hearing, or 11,875
elimination. No exemption under this division shall be allowed 11,876
for nonprescription drugs, medicines, or remedies; items or 11,877
devices used to supplement vision; items or devices whose 11,878
function is solely or primarily cosmetic; or physical fitness 11,879
equipment. This division does not apply to sales to a physician 11,880
or medical facility for use in the treatment of a patient. 11,881
(20) Sales of emergency and fire protection vehicles and 11,883
equipment to nonprofit organizations for use solely in providing 11,884
fire protection and emergency services for political subdivisions 11,885
of the state; 11,886
(21) Sales of tangible personal property manufactured in 11,888
this state, if sold by the manufacturer in this state to a 11,889
retailer for use in the retail business of the retailer outside 11,890
of this state and if possession is taken from the manufacturer by 11,892
the purchaser within this state for the sole purpose of 11,893
immediately removing the same from this state in a vehicle owned 11,894
by the purchaser;
(22) Sales of services provided by the state or any of its 11,896
277
political subdivisions, agencies, instrumentalities, 11,897
institutions, or authorities, or by governmental entities of the 11,898
state or any of its political subdivisions, agencies, 11,899
instrumentalities, institutions, or authorities; 11,900
(23) Sales of motor vehicles to nonresidents of this state 11,902
upon the presentation of an affidavit executed in this state by 11,903
the nonresident purchaser affirming that the purchaser is a 11,904
nonresident of this state, that possession of the motor vehicle 11,905
is taken in this state for the sole purpose of immediately 11,906
removing it from this state, that the motor vehicle will be 11,907
permanently titled and registered in another state, and that the 11,908
motor vehicle will not be used in this state; 11,909
(24) Sales to persons engaged in the preparation of eggs 11,911
for sale of tangible personal property used or consumed directly 11,912
in such preparation, including such tangible personal property 11,913
used for cleaning, sanitizing, preserving, grading, sorting, and 11,914
classifying by size; packages, including material and parts for 11,915
packages, and machinery, equipment, and material for use in 11,916
packaging eggs for sale; and handling and transportation 11,917
equipment and parts therefor, except motor vehicles licensed to 11,918
operate on public highways, used in intraplant or interplant 11,919
transfers or shipment of eggs in the process of preparation for 11,920
sale, when the plant or plants within or between which such 11,921
transfers or shipments occur are operated by the same person. 11,922
"Packages" includes containers, cases, baskets, flats, fillers, 11,923
filler flats, cartons, closure materials, labels, and labeling 11,924
materials, and "packaging" means placing therein. 11,925
(25)(a) Sales of water to a consumer for residential use, 11,927
except the sale of bottled water, distilled water, mineral water, 11,928
carbonated water, or ice; 11,929
(b) Sales of water by a nonprofit corporation engaged 11,931
exclusively in the treatment, distribution, and sale of water to 11,932
consumers, if such water is delivered to consumers through pipes 11,933
or tubing. 11,934
278
(26) Fees charged for inspection or reinspection of motor 11,936
vehicles under section 3704.14 of the Revised Code; 11,937
(27) Sales of solar, wind, or hydrothermal energy systems 11,939
that meet the guidelines established under division (B) of 11,940
section 1551.20 of the Revised Code, components of such systems 11,941
that are identified under division (B) or (D) of that section, or 11,942
charges for the installation of such systems or components, made 11,943
during the period from August 14, 1979, through December 31, 11,944
1985; 11,945
(28) Sales to persons licensed to conduct a food service 11,947
operation pursuant to section 3732.03 of the Revised Code, of 11,948
tangible personal property primarily used directly for the 11,949
following:
(a) To prepare food for human consumption for sale; 11,951
(b) To preserve food that has been or will be prepared for 11,954
human consumption for sale by the food service operator, not
including tangible personal property used to display food for 11,955
selection by the consumer; 11,956
(c) To clean tangible personal property used to prepare or 11,958
serve food for human consumption for sale. 11,959
(29) Sales of animals by nonprofit animal adoption 11,961
services or county humane societies; 11,962
(30) Sales of services to a corporation described in 11,964
division (A) of section 5709.72 of the Revised Code, and sales of 11,965
tangible personal property that qualifies for exemption from 11,966
taxation under section 5709.72 of the Revised Code; 11,967
(31) Sales and installation of agricultural land tile, as 11,969
defined in division (B)(5)(a) of section 5739.01 of the Revised 11,970
Code; 11,971
(32) Sales and erection or installation of portable grain 11,973
bins, as defined in division (B)(5)(b) of section 5739.01 of the 11,974
Revised Code; 11,975
(33) The sale, lease, repair, and maintenance of;, parts 11,977
for;, or items attached to or incorporated in, motor vehicles 11,979
279
that are primarily used for transporting tangible personal 11,981
property by a person engaged in highway transportation for hire; 11,982
(34) Sales to the state headquarters of any veterans' 11,984
organization in Ohio that is either incorporated and issued a 11,985
charter by the congress of the United States or is recognized by 11,986
the United States veterans administration, for use by the 11,987
headquarters; 11,988
(35) Sales to a telecommunications service vendor of 11,990
tangible personal property and services used directly and 11,991
primarily in transmitting, receiving, switching, or recording any 11,992
interactive, two-way electromagnetic communications, including 11,993
voice, image, data, and information, through the use of any 11,994
medium, including, but not limited to, poles, wires, cables, 11,995
switching equipment, computers, and record storage devices and 11,996
media, and component parts for the tangible personal property. 11,997
The exemption provided in division (B)(35) of this section shall 11,998
be in lieu of all other exceptions under division (E)(2) of 11,999
section 5739.01 of the Revised Code to which a telecommunications 12,000
service vendor may otherwise be entitled based upon the use of 12,001
the thing purchased in providing the telecommunications service. 12,002
(36) Sales of investment metal bullion and investment 12,004
coins. "Investment metal bullion" means any elementary precious 12,005
metal that has been put through a process of smelting or 12,006
refining, including, but not limited to, gold, silver, platinum, 12,007
and palladium, and which is in such state or condition that its 12,008
value depends upon its content and not upon its form. 12,009
"Investment metal bullion" does not include fabricated precious 12,010
metal that has been processed or manufactured for one or more 12,012
specific and customary industrial, professional, or artistic 12,013
uses. "Investment coins" means numismatic coins or other forms 12,014
of money and legal tender manufactured of gold, silver, platinum, 12,015
palladium, or other metal under the laws of the United States or 12,016
any foreign nation with a fair market value greater than any 12,017
statutory or nominal value of such coins. 12,018
280
(37)(a) Sales where the purpose of the consumer is to use 12,020
or consume the things transferred in making retail sales and 12,021
consisting of newspaper inserts, catalogues, coupons, flyers, 12,022
gift certificates, or other advertising material that prices and 12,024
describes tangible personal property offered for retail sale. 12,025
(b) Sales to direct marketing vendors of preliminary 12,027
materials such as photographs, artwork, and typesetting that will 12,028
be used in printing advertising material; of printed matter that 12,029
offers free merchandise or chances to win sweepstake prizes and 12,030
that is mailed to potential customers with advertising material 12,031
described in division (B)(37)(a) of this section; and of 12,032
equipment such as telephones, computers, facsimile machines, and 12,033
similar tangible personal property primarily used to accept 12,034
orders for direct marketing retail sales. 12,035
(c) Sales of automatic food vending machines that preserve 12,037
food with a shelf life of forty-five days or less by 12,038
refrigeration and dispense it to the consumer. 12,039
For purposes of division (B)(37) of this section, "direct 12,041
marketing" means the method of selling where consumers order 12,042
tangible personal property by United States mail, delivery 12,043
service, or telecommunication and the vendor delivers or ships 12,044
the tangible personal property sold to the consumer from a 12,045
warehouse, catalogue distribution center, or similar fulfillment 12,046
facility by means of the United States mail, delivery service, or 12,047
common carrier. 12,048
(38) Sales to a person engaged in the business of 12,050
horticulture or producing livestock of materials to be 12,051
incorporated into a horticulture structure or livestock 12,052
structure; 12,053
(39) The sale of a motor vehicle that is used exclusively 12,055
for a vanpool ridesharing arrangement to persons participating in 12,056
the vanpool ridesharing arrangement when the vendor is selling 12,057
the vehicle pursuant to a contract between the vendor and the 12,058
department of transportation;
281
(40) Sales of personal computers, computer monitors, 12,060
computer keyboards, modems, and other peripheral computer 12,061
equipment to an individual who is licensed or certified to teach 12,062
in an elementary or a secondary school in this state for use by 12,063
that individual in preparation for teaching elementary or
secondary school students; 12,064
(41) Sales to a professional racing team of any of the 12,066
following: 12,067
(a) Motor racing vehicles; 12,069
(b) Repair services for motor racing vehicles; 12,072
(c) Items of property that are attached to or incorporated 12,075
in motor racing vehicles, including engines, chassis, and all 12,076
other components of the vehicles, and all spare, replacement, and 12,077
rebuilt parts or components of the vehicles; except not including 12,078
tires, consumable fluids, paint, and accessories consisting of 12,079
instrumentation sensors and related items added to the vehicle to 12,080
collect and transmit data by means of telemetry and other forms 12,081
of communication.
(42) Sales of used manufactured homes and used mobile 12,083
homes, as defined in section 5739.0210 of the Revised Code, made 12,084
on or after January 1, 2000; 12,085
(43) SALES OF TANGIBLE PERSONAL PROPERTY AND SERVICES TO A 12,087
PROVIDER OF ELECTRICITY USED OR CONSUMED DIRECTLY AND PRIMARILY 12,088
IN GENERATING, TRANSMITTING, OR DISTRIBUTING ELECTRICITY FOR USE 12,089
BY OTHERS, INCLUDING PROPERTY THAT IS OR IS TO BE INCORPORATED 12,090
INTO AND WILL BECOME A PART OF THE CONSUMER'S PRODUCTION, 12,091
TRANSMISSION, OR DISTRIBUTION SYSTEM AND THAT RETAINS ITS 12,092
CLASSIFICATION AS TANGIBLE PERSONAL PROPERTY AFTER INCORPORATION; 12,093
FUEL OR POWER USED IN THE PRODUCTION, TRANSMISSION, OR 12,094
DISTRIBUTION OF ELECTRICITY; AND TANGIBLE PERSONAL PROPERTY AND 12,095
SERVICES USED IN THE REPAIR AND MAINTENANCE OF THE PRODUCTION, 12,096
TRANSMISSION, OR DISTRIBUTION SYSTEM, INCLUDING ONLY THOSE MOTOR 12,097
VEHICLES AS ARE SPECIALLY DESIGNED AND EQUIPPED FOR SUCH USE. 12,098
THE EXEMPTION PROVIDED IN THIS DIVISION SHALL BE IN LIEU OF ALL 12,099
282
OTHER EXCEPTIONS IN DIVISION (E)(2) OF SECTION 5739.01 OF THE 12,100
REVISED CODE TO WHICH A PROVIDER OF ELECTRICITY MAY OTHERWISE BE 12,102
ENTITLED BASED ON THE USE OF THE TANGIBLE PERSONAL PROPERTY OR 12,103
SERVICE PURCHASED IN GENERATING, TRANSMITTING, OR DISTRIBUTING 12,104
ELECTRICITY.
For the purpose of the proper administration of this 12,106
chapter, and to prevent the evasion of the tax, it is presumed 12,107
that all sales made in this state are subject to the tax until 12,108
the contrary is established. 12,109
As used in this section, except in division (B)(16) of this 12,111
section, "food" includes cereals and cereal products, milk and 12,112
milk products including ice cream, meat and meat products, fish 12,113
and fish products, eggs and egg products, vegetables and 12,114
vegetable products, fruits, fruit products, and pure fruit 12,115
juices, condiments, sugar and sugar products, coffee and coffee 12,116
substitutes, tea, and cocoa and cocoa products. It does not 12,117
include: spirituous or malt liquors; soft drinks; sodas and 12,118
beverages that are ordinarily dispensed at bars and soda 12,119
fountains or in connection therewith, other than coffee, tea, and 12,120
cocoa; root beer and root beer extracts; malt and malt extracts; 12,121
mineral oils, cod liver oils, and halibut liver oil; medicines, 12,122
including tonics, vitamin preparations, and other products sold 12,123
primarily for their medicinal properties; and water, including 12,124
mineral, bottled, and carbonated waters, and ice. 12,125
(C) The levy of an excise tax on transactions by which 12,127
lodging by a hotel is or is to be furnished to transient guests 12,128
pursuant to this section and division (B) of section 5739.01 of 12,129
the Revised Code does not prevent any of the following: 12,130
(1) A municipal corporation or township from levying an 12,132
excise tax for any lawful purpose not to exceed three per cent on 12,133
transactions by which lodging by a hotel is or is to be furnished 12,134
to transient guests in addition to the tax levied by this 12,135
section. If a municipal corporation or township repeals a tax 12,136
imposed under division (C)(1) of this section and a county in 12,137
283
which the municipal corporation or township has territory has a 12,138
tax imposed under division (C) of section 5739.024 of the Revised 12,139
Code in effect, the municipal corporation or township may not 12,140
reimpose its tax as long as that county tax remains in effect. A 12,141
municipal corporation or township in which a tax is levied under 12,142
division (B)(2) of section 351.021 of the Revised Code may not 12,143
increase the rate of its tax levied under division (C)(1) of this 12,144
section to any rate that would cause the total taxes levied under 12,145
both of those divisions to exceed three per cent on any lodging 12,146
transaction within the municipal corporation or township. 12,147
(2) A municipal corporation or a township from levying an 12,149
additional excise tax not to exceed three per cent on such 12,150
transactions pursuant to division (B) of section 5739.024 of the 12,151
Revised Code. Such tax is in addition to any tax imposed under 12,152
division (C)(1) of this section. 12,153
(3) A county from levying an excise tax pursuant to 12,155
division (A) of section 5739.024 of the Revised Code. 12,156
(4) A county from levying an excise tax not to exceed 12,158
three per cent of such transactions pursuant to division (C) of 12,159
section 5739.024 of the Revised Code. Such a tax is in addition 12,160
to any tax imposed under division (C)(3) of this section. 12,161
(5) A convention facilities authority, as defined in 12,163
division (A) of section 351.01 of the Revised Code, from levying 12,164
the excise taxes provided for in division (B) of section 351.021 12,165
of the Revised Code. 12,166
(6) A county from levying an excise tax not to exceed one 12,168
and one-half per cent of such transactions pursuant to division 12,169
(D) of section 5739.024 of the Revised Code. Such tax is in 12,170
addition to any tax imposed under division (C)(3) or (4) of this 12,171
section. 12,172
(7) A county from levying an excise tax not to exceed one 12,174
and one-half per cent of such transactions pursuant to division 12,175
(E) of section 5739.024 of the Revised Code. Such a tax is in 12,176
addition to any tax imposed under division (C)(3), (4), or (6) of 12,177
284
this section. 12,178
(D) The levy of this tax on retail sales of recreation and 12,180
sports club service shall not prevent a municipal corporation 12,181
from levying any tax on recreation and sports club dues or on any 12,182
income generated by recreation and sports club dues. 12,183
Sec. 5747.31. (A) This section applies to an individual 12,192
or estate that is a proprietor or a pass-through entity investor. 12,193
(B)(1) A taxpayer described in division (A) of this 12,195
section is allowed a credit that shall be computed and claimed in 12,196
the same manner as the credit allowed to corporations in section 12,197
5733.33 of the Revised Code, with the following adjustments: 12,198
(a) The taxpayer shall claim one-seventh of the credit 12,200
amount for the calendar year in which the new manufacturing 12,201
machinery and equipment is purchased for use in the county by the 12,202
taxpayer or partnership. One-seventh of the taxpayer credit 12,203
amount is allowed for each of the six ensuing taxable years. 12,204
(b) Substitute "taxable year" for the phrase "calendar 12,207
year prior to the first day of a tax year" wherever the phrase 12,208
appears in division (H)(1) of section 5733.33 of the Revised 12,210
Code. 12,211
(2) The taxpayer shall claim the credit in the order 12,213
required under section 5747.98 of the Revised Code. 12,214
(3) THE TAXPAYER SHALL FILE WITH THE DEPARTMENT OF 12,216
DEVELOPMENT A NOTICE OF INTENT TO CLAIM THE CREDIT IN ACCORDANCE 12,217
WITH DIVISION (E) OF SECTION 5733.33 OF THE REVISED CODE. 12,218
(C)(1) A TAXPAYER DESCRIBED IN DIVISION (A) OF THIS 12,220
SECTION IS ALLOWED A CREDIT THAT SHALL BE COMPUTED IN THE SAME 12,223
MANNER AS THE CREDIT ALLOWED TO A CORPORATION IN SECTION 5733.39 12,224
OF THE REVISED CODE, WITH THE FOLLOWING ADJUSTMENTS: 12,225
(a) SUBSTITUTE "TAXABLE YEAR" FOR "TAX YEAR" WHEREVER "TAX 12,227
YEAR" APPEARS IN SECTION 5733.39 OF THE REVISED CODE; 12,228
(b) SUBSTITUTE "5747.02" FOR "5733.06" WHEREVER "5733.06" 12,230
APPEARS IN SECTION 5733.39 OF THE REVISED CODE; 12,231
(c) SUBSTITUTE "5747.98" FOR "5733.98" WHEREVER "5733.98" 12,233
285
APPEARS IN SECTION 5733.39 OF THE REVISED CODE; 12,234
(d) THE CREDIT ALLOWED UNDER DIVISION (C) OF THIS SECTION 12,237
SHALL BE SUBJECT TO THE SAME DISALLOWANCE FOR THE CARRYOVER OR 12,238
CARRYBACK OF ANY UNUSED CREDIT AS PROVIDED IN DIVISION (C) OF 12,239
SECTION 5733.39 OF THE REVISED CODE. 12,240
(2) NOTWITHSTANDING SECTION 5747.131 OF THE REVISED CODE 12,242
TO THE CONTRARY, A TAXPAYER CLAIMING A CREDIT UNDER THIS DIVISION 12,244
HAS THE BURDEN OF ESTABLISHING BY A PREPONDERANCE OF THE EVIDENCE 12,245
THAT THE DOCTRINES ENUMERATED IN SECTION 5747.131 OF THE REVISED 12,246
CODE DO NOT APPLY WITH RESPECT TO THE CREDIT PROVIDED BY THIS 12,248
DIVISION.
(D) Nothing in this section shall be construed to limit or 12,250
disallow pass-through treatment of a pass-through entity's 12,251
income, deductions, credits, or other amounts necessary to 12,252
compute the tax imposed by section 5747.02 of the Revised Code 12,253
and the credits allowed by this chapter.
(D) The taxpayer shall file with the department of 12,255
development a notice of intent to claim the credit in accordance 12,256
with division (E) of section 5733.33 of the Revised Code. 12,257
Sec. 5747.98. (A) To provide a uniform procedure for 12,266
calculating the amount of tax due under section 5747.02 of the 12,267
Revised Code, a taxpayer shall claim any credits to which the 12,268
taxpayer is entitled in the following order: 12,270
(2)(1) The retirement income credit under division (B) of 12,272
section 5747.055 of the Revised Code; 12,273
(3)(2) The senior citizen credit under division (C) of 12,275
section 5747.05 of the Revised Code; 12,276
(4)(3) The lump sum distribution credit under division (D) 12,278
of section 5747.05 of the Revised Code; 12,279
(5)(4) The dependent care credit under section 5747.054 of 12,281
the Revised Code; 12,282
(6)(5) The lump sum retirement income credit under 12,284
division (C) of section 5747.055 of the Revised Code; 12,285
(7)(6) The lump sum retirement income credit under 12,287
286
division (D) of section 5747.055 of the Revised Code; 12,288
(8)(7) The lump sum retirement income credit under 12,290
division (E) of section 5747.055 of the Revised Code; 12,291
(9)(8) The credit for displaced workers who pay for job 12,293
training under section 5747.27 of the Revised Code; 12,294
(10)(9) The campaign contribution credit under section 12,296
5747.29 of the Revised Code; 12,299
(11)(10) The twenty-dollar personal exemption credit under 12,301
section 5747.022 of the Revised Code; 12,302
(12)(11) The joint filing credit under division (G) of 12,304
section 5747.05 of the Revised Code; 12,305
(13)(12) The nonresident credit under division (A) of 12,307
section 5747.05 of the Revised Code; 12,308
(14)(13) The credit for a resident's out-of-state income 12,310
under division (B) of section 5747.05 of the Revised Code; 12,311
(15)(14) The credit for employers that enter into 12,314
agreements with child day-care centers under section 5747.34 of
the Revised Code; 12,315
(16)(15) The credit for employers that reimburse employee 12,317
child day-care expenses under section 5747.36 of the Revised 12,319
Code;
(17)(16) The credit for manufacturing investments under 12,321
section 5747.051 of the Revised Code; 12,322
(18)(17) The credit for purchases of new manufacturing 12,324
machinery and equipment under section 5747.26 or section 5747.261 12,326
of the Revised Code;
(19)(18) The second credit for purchases of new 12,328
manufacturing machinery and equipment AND THE CREDIT FOR USING 12,330
OHIO COAL under section 5747.31 of the Revised Code; 12,331
(20)(19) The enterprise zone credit under section 5709.66 12,333
of the Revised Code; 12,334
(21)(20) The credit for the eligible costs associated with 12,336
a voluntary action under section 5747.32 of the Revised Code; 12,338
(22)(21) The credit for employers that establish on-site 12,341
287
child day-care centers under section 5747.35 of the Revised Code; 12,342
(23)(22) The credit for purchases of qualifying grape 12,344
production property under section 5747.28 of the Revised Code; 12,345
(24)(23) The export sales credit under section 5747.057 of 12,347
the Revised Code; 12,348
(25)(24) The credit for research and development and 12,350
technology transfer investors under section 5747.33 of the 12,351
Revised Code;
(26)(25) The enterprise zone credits under section 5709.65 12,354
of the Revised Code;
(27)(26) The refundable jobs creation credit under section 12,357
5747.058 of the Revised Code;
(28)(27) The refundable credit for taxes paid by a 12,359
qualifying entity granted under section 5747.059 of the Revised 12,360
Code;
(29)(28) The refundable credits for taxes paid by a 12,362
qualifying pass-through entity granted under division (J) of 12,365
section 5747.08 of the Revised Code.
(B) For any credit except the refundable credits 12,367
enumerated in divisions (A)(27)(26), (28)(27), and (29)(28) of 12,370
this section and the credit granted under division (I) of section
5747.08 of the Revised Code, the amount of the credit for a 12,372
taxable year shall not exceed the tax due after allowing for any 12,373
other credit that precedes it in the order required under this 12,374
section. Any excess amount of a particular credit may be carried 12,375
forward if authorized under the section creating that credit. 12,376
Nothing in this chapter shall be construed to allow a taxpayer to 12,377
claim, directly or indirectly, a credit more than once for a 12,378
taxable year.
Section 2. That existing sections 113.061, 133.04, 12,380
715.013, 718.01, 1551.33, 1551.35, 3317.028, 4905.01, 4905.02, 12,382
4905.03, 4905.10, 4905.14, 4905.34, 4905.40, 4905.402, 4905.42, 12,383
4905.46, 4905.70, 4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 12,384
4911.18, 4933.14, 4933.15, 4933.33, 4933.81, 4935.03, 4935.04, 12,385
288
5117.01, 5117.02, 5117.03, 5117.04, 5117.05, 5117.07, 5117.08, 12,386
5117.09, 5117.10, 5117.12, 5701.03, 5703.052, 5703.053, 5705.34, 12,388
5727.01, 5727.02, 5727.05, 5727.06, 5727.11, 5727.111, 5727.15, 12,390
5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 12,391
5727.45, 5727.47, 5727.53, 5727.60, 5727.61, 5727.72, 5727.99,
5733.04, 5733.05, 5733.051, 5733.057, 5733.06, 5733.09, 5733.33, 12,392
5733.98, 5739.011, 5739.02, 5747.31, and 5747.98 and sections 12,394
4905.301, 4905.66, 4905.67, 4905.68, 4905.69, 4909.157, 4909.158, 12,395
4909.159, 4909.191, 4909.192, 4909.193, 4913.01, 4913.02, 12,396
4913.03, 4913.04, 4913.05, 4913.06, 4913.07, 4933.27, 4933.34, 12,397
5727.231, and 5727.73 of the Revised Code are hereby repealed. 12,398
Section 3. Sections 5727.111 and 5727.15 of the Revised 12,400
Code, as amended by this act, shall first apply to tax year 2001. 12,401
Section 4. Sections 4933.33, 5727.30, 5727.32, and 5727.33 12,403
of the Revised Code, as amended by this act, shall first apply to 12,404
the excise tax assessed by the Tax Commissioner for tax year 12,405
2002.
Section 5. Sections 1551.33, 1551.35, 4905.01, 4905.02, 12,407
4905.03, 4905.10, 4905.14, 4905.34, 4905.40, 4905.402, 4905.42, 12,408
4905.70, 4909.01, 4909.05, 4909.15, 4909.161, 4935.04, and 12,409
5703.14 of the Revised Code, as amended by this act, shall take 12,410
effect on January 1, 2001, but if the Public Utilities Commission 12,411
issues an order under division (C) of section 4928.01 of the 12,412
Revised Code, as enacted by this act, the amendments to such 12,413
sections shall be applied accordingly. In addition, the 12,414
amendment of division (A)(4)(b) of section 4909.15 of the Revised 12,415
Code, as amended by this act, shall not be applied until January 12,416
1, 2002.
Section 6. Section 5727.45 of the Revised Code, as amended 12,418
by this act, shall take effect January 1, 2002. 12,419
Section 7. Sections 5117.01, 5117.02, 5117.03, 5117.04, 12,421
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, and 5117.12 of the 12,422
Revised Code, as amended by this act, shall take effect on July 12,424
1, 2000.
289
Section 8. Section 5727.391 of the Revised Code is hereby 12,427
repealed effective January 1, 2002.
Section 9. Sections 4905.301, 4905.66, 4905.67, 4905.68, 12,430
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 4909.192, 12,431
4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 4913.05, 4913.06, 12,432
4913.07, 4933.27, and 4933.34 of the Revised Code, as repealed by 12,433
this act, shall take effect on January 1, 2001, but if the Public 12,434
Utilities Commission issues an order under division (C) of 12,435
section 4928.01 of the Revised Code, as enacted by this act, the 12,436
repeal of such sections shall be applied accordingly. 12,437
Section 10. The Public Utilities Commission, Consumers' 12,439
Counsel, and the Attorney General shall develop a memorandum of 12,440
understanding not later than January 1, 2000, to establish a 12,441
system to respond effectively and efficiently to residential 12,442
consumer inquiries and complaints and shall provide a joint 12,443
report to the General Assembly on the efforts of the three 12,444
agencies not later than June 30, 2002. 12,445
Section 11. (A) As used in this section: 12,447
(1) "Electric company," "combined company," and "rural 12,449
electric company" have the same meanings as in section 5727.01 of 12,451
the Revised Code.
(2) "Gross receipts" means gross receipts determined in 12,453
accordance with section 5727.33 of the Revised Code and any 12,455
receipts received by an electric company, combined company, or 12,456
rural electric company after April 30, 2001, from the 12,457
distribution of electricity that was not subject to the excise 12,458
tax imposed by section 5727.81 of the Revised Code. 12,459
(B) Each electric company, combined company, and rural 12,461
electric company shall pay the public utility excise tax imposed 12,463
by section 5727.30 of the Revised Code on the company's gross 12,464
receipts received during the period of May 1, 2000, through May 12,465
1, 2001. Receipts received after August 1, 2001, are not subject 12,467
to the tax on gross receipts under this section if an electric 12,468
company, combined company, or rural electric company takes 12,469
290
reasonable collection measures to collect the gross receipts. 12,470
Notwithstanding section 5727.31 of the Revised Code, each 12,471
electric company, combined company, and rural electric company 12,472
shall make tax payments toward that liability. The first payment 12,474
must be made on or before October 15, 2000, and shall equal 12,475
one-third of the estimated liability shown in the report filed on 12,476
or before August 1, 2000. The second payment must be made on or 12,477
before March 1, 2001, and shall equal one-third of the tax 12,478
assessed by the Tax Commissioner on or before the first Monday in 12,479
November, 2000. The last payment must be made on or before June 12,480
1, 2001, and shall equal one-fourth of the tax assessed by the 12,481
commissioner. The final report for the period of May 1, 2000, 12,482
through May 1, 2001, shall be filed by an electric company, a
combined company, or a rural electric company on or before August 12,484
1, 2001, in accordance with division (A) of section 5727.31 and 12,485
section 5727.32 of the Revised Code. 12,486
On or before the first Monday of November 2001, the Tax 12,488
Commissioner shall assess an excise tax equal to four and 12,489
three-quarters per cent of the gross receipts received by 12,490
electric companies, combined companies, and rural electric 12,491
companies during the period of May 1, 2000, through May 1, 2001. 12,493
Except as provided in section 5727.03 of the Revised Code, as 12,494
enacted by this act, after payment of this assessment, electric 12,495
companies, rural electric companies, and combined companies, to 12,496
the extent of their activities as an electric company, are not 12,497
subject to the excise tax imposed by section 5727.30 of the 12,498
Revised Code. 12,499
Section 12. Electric companies, as defined in section 12,501
5727.01 of the Revised Code, shall first be subject to the 12,502
corporation franchise tax under Chapter 5733. of the Revised Code 12,503
for tax year 2002, as "tax year" is defined in section 5733.04 of 12,504
the Revised Code. For tax year 2002, an electric company shall 12,505
pay two-thirds of its total corporation franchise tax liability 12,506
under Chapter 5733. of the Revised Code. The amendments in this 12,507
291
act to sections 4909.15, 5733.04, 5733.05, 5733.051, 5733.057, 12,508
5733.06, 5733.09, 5733.33, 5733.98, 5747.31, and 5747.98 of the 12,509
Revised Code, and the enactment in this act of sections 5733.059, 12,510
5733.0510, and 5733.39 of the Revised Code, first apply for tax 12,512
year 2002.
Section 13. An electric company that is entitled to carry 12,514
forward a credit against its public utility excise tax liability 12,515
under section 5727.391 of the Revised Code before the repeal of 12,516
that section under this act, is not entitled to carry forward any 12,517
amount remaining after its last public utility excise tax payment 12,518
and claim that amount as a credit against its corporation 12,519
franchise tax liability under section 5733.39 of the Revised 12,520
Code, as enacted by this act. The credit granted under section 12,521
5727.391 of the Revised Code only applies through the last 12,522
assessment issued by the Tax Commissioner under Section 11 of 12,523
this act.
Section 14. The tax levied under section 5727.81 of the 12,525
Revised Code first applies on and after May 1, 2001. Before that 12,526
date, any electric distribution company shall register with the 12,527
Tax Commissioner in accordance with section 5727.93 of the 12,528
Revised Code, as enacted by this act. 12,529
Section 15. The intent of division (C) of section 5727.81 12,531
of the Revised Code, as enacted by this act, is to craft a 12,532
revenue neutral solution for all customer classes, with any 12,533
margin of error being resolved in favor of residential customers. 12,534
Section 16. The Director of Development shall study and 12,537
report to the General Assembly concerning the desirability of 12,538
implementing a tax credit program for the creation of new jobs in 12,539
Ohio to manufacture or assemble generating equipment and 12,540
components for global use. The director shall determine and 12,541
recommend how the tax credit should be structured to encourage 12,542
investments in facilities, equipment, and services related to the 12,543
manufacture, assembly, shipping preparation, and transportation 12,544
of generation equipment or components for global use, and to 12,545
292
create new jobs as a result of such investments.
On or before December 31, 2000, the Director of Development 12,547
shall issue a report of its findings to the Senate and House of 12,548
Representatives in accordance with division (B) of section 101.68 12,549
of the Revised Code. 12,550
Section 17. Section 5727.47 of the Revised Code is 12,552
presented in this act as a composite of the section as amended by 12,553
both Am. Sub. H.B. 904 and Am. S.B. 358 of the 119th General 12,554
Assembly, with the new language of neither of the acts shown in 12,555
capital letters. This is in recognition of the principle stated 12,556
in division (B) of section 1.52 of the Revised Code that such 12,557
amendments are to be harmonized where not substantively 12,558
irreconcilable and constitutes a legislative finding that such is 12,559
the resulting version in effect prior to the effective date of 12,560
this act.
Section 18. Section 4928.431 of the Revised Code, as 12,563
enacted by this act, is hereby repealed effective December 31, 12,564
2005, at which time the Electric Employee Assistance Advisory 12,565
Board created by that section shall cease to exist. 12,566
Section 19. If any provision of law that constitutes the 12,568
whole or part of a codified or uncodified section of law 12,569
contained in this act, or if any application of any provision of 12,570
law that constitutes the whole or part of a codified or 12,571
uncodified section of law contained in this act, is held invalid, 12,572
the invalidity does not affect other provisions of law or 12,573
applications of provisions of law that can be given effect 12,574
without the invalid provision of law or application. To this
end, the provisions of law of which the codified and uncodified 12,575
sections contained in this act are composed, and their 12,576
applications, are independent and severable. 12,577
Section 20. It is the intent of the General Assembly to 12,579
enact laws prescribing a uniform set of procedures for the 12,580
taxation of electric company income by municipal corporations and 12,581
to have such laws in effect prior to the time those companies 12,582
293
become subject to municipal income taxes, as authorized by this 12,583
act.