H. B. No. 85 As Introduced

Representative Blessing

A BILL

To amend section 4928.20 and to enact section 4928.21 1
of the Revised Code to limit retail electric 2
service automatic governmental aggregation and to 3
create a "Do Not Aggregate" list. 4

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 4928.20 be amended and section 5
4928.21 of the Revised Code be enacted to read as follows: 6

       Sec. 4928.20. (A) The legislative authority of a municipal 7
corporation may adopt an ordinance, or the board of township 8
trustees of a township or the board of county commissioners of a 9
county may adopt a resolution, under which, on or after the 10
starting date of competitive retail electric service, it may 11
aggregate in accordance with this section the retail electrical 12
loads located, respectively, within the municipal corporation, 13
township, or unincorporated area of the county and, for that 14
purpose, may enter into service agreements to facilitate for those 15
loads the sale and purchase of electricity. The legislative 16
authority or board also may exercise such authority jointly with 17
any other such legislative authority or board. AnFor customers 18
that are not mercantile commercial customers, an ordinance or 19
resolution under this division shall specify whether the 20
aggregation will occur only with the prior consent of each person 21
owning, occupying, controlling, or using an electric load center 22
proposed to be aggregated or will occur automatically for all such 23
persons pursuant to the opt-out requirements of division (D) of 24
this section. The aggregation of mercantile commercial customers 25
shall occur only with the prior consent of each person owning, 26
occupying, controlling, or using an electric load center proposed 27
to be aggregated. Nothing in this division, however, authorizes 28
the aggregation of such retail electric loads of an electric load 29
center, as defined in section 4933.81 of the Revised Code, that is 30
located in the certified territory of a nonprofit electric 31
supplier under sections 4933.81 to 4933.90 of the Revised Code or 32
an electric load center served by transmission or distribution 33
facilities of a municipal electric utility. 34

       (B) If an ordinance or resolution adopted under division (A) 35
of this section specifies that aggregation of customers that are 36
not mercantile commercial customers will occur automatically as 37
described in that division, the ordinance or resolution shall 38
direct the board of elections to submit the question of the 39
authority to aggregate to the electors of the respective municipal 40
corporation, township, or unincorporated area of a county at a 41
special election on the day of the next primary or general 42
election in the municipal corporation, township, or county. The 43
legislative authority or board shall certify a copy of the 44
ordinance or resolution to the board of elections not less than 45
seventy-five days before the day of the special election. No 46
ordinance or resolution adopted under division (A) of this section 47
that provides for an election under this division shall take 48
effect unless approved by a majority of the electors voting upon 49
the ordinance or resolution at the election held pursuant to this 50
division. 51

       (C) Upon the applicable requisite authority under divisions 52
(A) and (B) of this section, the legislative authority or board 53
shall develop a plan of operation and governance for the 54
aggregation program so authorized. Before adopting a plan under 55
this division, the legislative authority or board shall hold at 56
least two public hearings on the plan. Before the first hearing, 57
the legislative authority or board shall publish notice of the 58
hearings once a week for two consecutive weeks in a newspaper of 59
general circulation in the jurisdiction. The notice shall 60
summarize the plan and state the date, time, and location of each 61
hearing. 62

       (D) No legislative authority or board, pursuant to an 63
ordinance or resolution under divisions (A) and (B) of this 64
section that provides for automatic aggregation of customers that 65
are not mercantile commercial customers as described in division 66
(A) of this section, shall aggregate the electrical load of any 67
electric load center located within its jurisdiction unless it in 68
advance clearly discloses to the person owning, occupying, 69
controlling, or using the load center that the person will be 70
enrolled automatically in the aggregation program and will remain 71
so enrolled unless the person affirmatively elects by a stated 72
procedure not to be so enrolled. The disclosure shall state 73
prominently the rates, charges, and other terms and conditions of 74
enrollment. The stated procedure shall allow any person enrolled 75
in the aggregation program the opportunity to opt out of the 76
program every two years, without paying a switching fee. Any such 77
person that opts out of the aggregation program pursuant to the 78
stated procedure shall default to the standard service offer 79
provided under division (A) of section 4928.14 or division (D) of 80
section 4928.35 of the Revised Code until the person chooses an 81
alternative supplier. 82

       (E)(1) With respect to a governmental aggregation for a 83
municipal corporation that is authorized pursuant to division (A) 84
to (D) of this section, resolutions may be proposed by initiative 85
or referendum petitions in accordance with sections 731.28 to 86
731.41 of the Revised Code. 87

       (2) With respect to a governmental aggregation for a township 88
or the unincorporated area of a county, which aggregation is 89
authorized pursuant to division (A) to (D) of this section, 90
resolutions may be proposed by initiative or referendum petitions 91
in accordance with sections 731.28 to 731.40 of the Revised Code, 92
except that: 93

       (a) The petitions shall be filed, respectively, with the 94
township clerk or the board of county commissioners, who shall 95
perform those duties imposed under those sections upon the city 96
auditor or village clerk. 97

       (b) The petitions shall contain the signatures of not less 98
than ten per cent of the total number of electors in, 99
respectively, the township or the unincorporated area of the 100
county who voted for the office of governor at the preceding 101
general election for that office in that area. 102

       (F) A governmental aggregator under division (A) of this 103
section is not a public utility engaging in the wholesale purchase 104
and resale of electricity, and provision of the aggregated service 105
is not a wholesale utility transaction. A governmental aggregator 106
shall be subject to supervision and regulation by the public 107
utilities commission only to the extent of any competitive retail 108
electric service it provides and commission authority under this 109
chapter. 110

       (G) This section does not apply in the case of a municipal 111
corporation that supplies such aggregated service to electric load 112
centers to which its municipal electric utility also supplies a 113
noncompetitive retail electric service through transmission or 114
distribution facilities the utility singly or jointly owns or 115
operates. 116

       (H) A governmental aggregator shall not include in its 117
aggregation the accounts of any of the following: 118

       (1) A customer that has opted out of the aggregation; 119

       (2) A customer in contract with a certified competitive 120
retail electric services provider; 121

       (3) A customer that has a special contract with an electric 122
distribution utility; 123

       (4) A customer that is not located within the governmental 124
aggregator's governmental boundaries. 125

       (5) Subject to division (C) of section 4928.21 of the Revised 126
Code, a customer who appears on the "do not aggregate" list 127
maintained under that section. 128

       Sec. 4928.21. (A) A customer that desires to remove itself 129
from the pool of customers eligible to participate in governmental 130
aggregation under section 4928.20 of the Revised Code may register 131
with the public utilities commission to appear on the "do not 132
aggregate" list. 133

       (B) The commission, by rule, shall establish a "do not 134
aggregate" list. The commission shall maintain the "do not 135
aggregate" list and make it publicly available on the commission's 136
web site. 137

       (C) If a customer is enrolled in a governmental aggregation 138
program at the time the customer first appears on the "do not 139
aggregate" list, the governmental aggregator shall remove the 140
customer from the program at the next two-year opt out opportunity 141
that is available to the customer under division (D) of section 142
4928.20 of the Revised Code. 143

       Section 2. That existing section 4928.20 of the Revised Code 144
is hereby repealed. 145

Section 1. That section 4928.20 be amended and section	5
4928.21 of the Revised Code be enacted to read as follows:	6

Sec. 4928.20. (A) The legislative authority of a municipal	7
corporation may adopt an ordinance, or the board of township	8
trustees of a township or the board of county commissioners of a	9
county may adopt a resolution, under which, on or after the	10
starting date of competitive retail electric service, it may	11
aggregate in accordance with this section the retail electrical	12
loads located, respectively, within the municipal corporation,	13
township, or unincorporated area of the county and, for that	14
purpose, may enter into service agreements to facilitate for those	15
loads the sale and purchase of electricity. The legislative	16
authority or board also may exercise such authority jointly with	17
any other such legislative authority or board. AnFor customers	18
that are not mercantile commercial customers, an ordinance or	19
resolution under this division shall specify whether the	20
aggregation will occur only with the prior consent of each person	21
owning, occupying, controlling, or using an electric load center	22
proposed to be aggregated or will occur automatically for all such	23
persons pursuant to the opt-out requirements of division (D) of	24
this section. The aggregation of mercantile commercial customers	25
shall occur only with the prior consent of each person owning,	26
occupying, controlling, or using an electric load center proposed	27
to be aggregated. Nothing in this division, however, authorizes	28
the aggregation of such retail electric loads of an electric load	29
center, as defined in section 4933.81 of the Revised Code, that is	30
located in the certified territory of a nonprofit electric	31
supplier under sections 4933.81 to 4933.90 of the Revised Code or	32
an electric load center served by transmission or distribution	33
facilities of a municipal electric utility.	34

(B) If an ordinance or resolution adopted under division (A)	35
of this section specifies that aggregation of customers that are	36
not mercantile commercial customers will occur automatically as	37
described in that division, the ordinance or resolution shall	38
direct the board of elections to submit the question of the	39
authority to aggregate to the electors of the respective municipal	40
corporation, township, or unincorporated area of a county at a	41
special election on the day of the next primary or general	42
election in the municipal corporation, township, or county. The	43
legislative authority or board shall certify a copy of the	44
ordinance or resolution to the board of elections not less than	45
seventy-five days before the day of the special election. No	46
ordinance or resolution adopted under division (A) of this section	47
that provides for an election under this division shall take	48
effect unless approved by a majority of the electors voting upon	49
the ordinance or resolution at the election held pursuant to this	50
division.	51

(C) Upon the applicable requisite authority under divisions	52
(A) and (B) of this section, the legislative authority or board	53
shall develop a plan of operation and governance for the	54
aggregation program so authorized. Before adopting a plan under	55
this division, the legislative authority or board shall hold at	56
least two public hearings on the plan. Before the first hearing,	57
the legislative authority or board shall publish notice of the	58
hearings once a week for two consecutive weeks in a newspaper of	59
general circulation in the jurisdiction. The notice shall	60
summarize the plan and state the date, time, and location of each	61
hearing.	62

(D) No legislative authority or board, pursuant to an	63
ordinance or resolution under divisions (A) and (B) of this	64
section that provides for automatic aggregation of customers that	65
are not mercantile commercial customers as described in division	66
(A) of this section, shall aggregate the electrical load of any	67
electric load center located within its jurisdiction unless it in	68
advance clearly discloses to the person owning, occupying,	69
controlling, or using the load center that the person will be	70
enrolled automatically in the aggregation program and will remain	71
so enrolled unless the person affirmatively elects by a stated	72
procedure not to be so enrolled. The disclosure shall state	73
prominently the rates, charges, and other terms and conditions of	74
enrollment. The stated procedure shall allow any person enrolled	75
in the aggregation program the opportunity to opt out of the	76
program every two years, without paying a switching fee. Any such	77
person that opts out of the aggregation program pursuant to the	78
stated procedure shall default to the standard service offer	79
provided under division (A) of section 4928.14 or division (D) of	80
section 4928.35 of the Revised Code until the person chooses an	81
alternative supplier.	82

(E)(1) With respect to a governmental aggregation for a	83
municipal corporation that is authorized pursuant to division (A)	84
to (D) of this section, resolutions may be proposed by initiative	85
or referendum petitions in accordance with sections 731.28 to	86
731.41 of the Revised Code.	87

(2) With respect to a governmental aggregation for a township	88
or the unincorporated area of a county, which aggregation is	89
authorized pursuant to division (A) to (D) of this section,	90
resolutions may be proposed by initiative or referendum petitions	91
in accordance with sections 731.28 to 731.40 of the Revised Code,	92
except that:	93

(a) The petitions shall be filed, respectively, with the	94
township clerk or the board of county commissioners, who shall	95
perform those duties imposed under those sections upon the city	96
auditor or village clerk.	97

(b) The petitions shall contain the signatures of not less	98
than ten per cent of the total number of electors in,	99
respectively, the township or the unincorporated area of the	100
county who voted for the office of governor at the preceding	101
general election for that office in that area.	102

(F) A governmental aggregator under division (A) of this	103
section is not a public utility engaging in the wholesale purchase	104
and resale of electricity, and provision of the aggregated service	105
is not a wholesale utility transaction. A governmental aggregator	106
shall be subject to supervision and regulation by the public	107
utilities commission only to the extent of any competitive retail	108
electric service it provides and commission authority under this	109
chapter.	110

(G) This section does not apply in the case of a municipal	111
corporation that supplies such aggregated service to electric load	112
centers to which its municipal electric utility also supplies a	113
noncompetitive retail electric service through transmission or	114
distribution facilities the utility singly or jointly owns or	115
operates.	116

(H) A governmental aggregator shall not include in its	117
aggregation the accounts of any of the following:	118

(2) A customer in contract with a certified competitive	120
retail electric services provider;	121

(3) A customer that has a special contract with an electric	122
distribution utility;	123

(4) A customer that is not located within the governmental	124
aggregator's governmental boundaries.	125

(5) Subject to division (C) of section 4928.21 of the Revised	126
Code, a customer who appears on the "do not aggregate" list	127
maintained under that section.	128

Sec. 4928.21. (A) A customer that desires to remove itself	129
from the pool of customers eligible to participate in governmental	130
aggregation under section 4928.20 of the Revised Code may register	131
with the public utilities commission to appear on the "do not	132
aggregate" list.	133

(B) The commission, by rule, shall establish a "do not	134
aggregate" list. The commission shall maintain the "do not	135
aggregate" list and make it publicly available on the commission's	136
web site.	137

(C) If a customer is enrolled in a governmental aggregation	138
program at the time the customer first appears on the "do not	139
aggregate" list, the governmental aggregator shall remove the	140
customer from the program at the next two-year opt out opportunity	141
that is available to the customer under division (D) of section	142
4928.20 of the Revised Code.	143

Section 2. That existing section 4928.20 of the Revised Code	144
is hereby repealed.	145