Am. H. B. No. 85 As Reported by the Senate Energy and Public Utilities Committee

Representatives Blessing, Combs, Flowers, Hagan, Martin, Reinhard, Smith, G.

Senator Jacobson

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, affirmative consent of 21
each person owning, occupying, controlling, or using an electric 22
load center proposed to be aggregated or will occur automatically 23
for all such persons pursuant to the opt-out requirements of 24
division (D) of this section. The aggregation of mercantile 25
commercial customers shall occur only with the prior, affirmative 26
consent of each such person owning, occupying, controlling, or 27
using an electric load center proposed to be aggregated. Nothing 28
in this division, however, authorizes the aggregation of ~~such~~the 29
retail electric loads of an electric load center, as defined in 30
section 4933.81 of the Revised Code, that is located in the 31
certified territory of a nonprofit electric supplier under 32
sections 4933.81 to 4933.90 of the Revised Code or an electric 33
load center served by transmission or distribution facilities of a 34
municipal electric utility. 35

       (B) If an ordinance or resolution adopted under division (A) 36
of this section specifies that aggregation of customers that are 37
not mercantile commercial customers will occur automatically as 38
described in that division, the ordinance or resolution shall 39
direct the board of elections to submit the question of the 40
authority to aggregate to the electors of the respective municipal 41
corporation, township, or unincorporated area of a county at a 42
special election on the day of the next primary or general 43
election in the municipal corporation, township, or county. The 44
legislative authority or board shall certify a copy of the 45
ordinance or resolution to the board of elections not less than 46
seventy-five days before the day of the special election. No 47
ordinance or resolution adopted under division (A) of this section 48
that provides for an election under this division shall take 49
effect unless approved by a majority of the electors voting upon 50
the ordinance or resolution at the election held pursuant to this 51
division. 52

       (C) Upon the applicable requisite authority under divisions 53
(A) and (B) of this section, the legislative authority or board 54
shall develop a plan of operation and governance for the 55
aggregation program so authorized. Before adopting a plan under 56
this division, the legislative authority or board shall hold at 57
least two public hearings on the plan. Before the first hearing, 58
the legislative authority or board shall publish notice of the 59
hearings once a week for two consecutive weeks in a newspaper of 60
general circulation in the jurisdiction. The notice shall 61
summarize the plan and state the date, time, and location of each 62
hearing. 63

       (D) No legislative authority or board, pursuant to an 64
ordinance or resolution under divisions (A) and (B) of this 65
section that provides for automatic aggregation of customers that 66
are not mercantile commercial customers as described in division 67
(A) of this section, shall aggregate the electrical load of any 68
electric load center located within its jurisdiction unless it in 69
advance clearly discloses to the person owning, occupying, 70
controlling, or using the load center that the person will be 71
enrolled automatically in the aggregation program and will remain 72
so enrolled unless the person affirmatively elects by a stated 73
procedure not to be so enrolled. The disclosure shall state 74
prominently the rates, charges, and other terms and conditions of 75
enrollment. The stated procedure shall allow any person enrolled 76
in the aggregation program the opportunity to opt out of the 77
program every two years, without paying a switching fee. Any such 78
person that opts out of the aggregation program pursuant to the 79
stated procedure shall default to the standard service offer 80
provided under division (A) of section 4928.14 or division (D) of 81
section 4928.35 of the Revised Code until the person chooses an 82
alternative supplier. 83

       (E)(1) With respect to a governmental aggregation for a 84
municipal corporation that is authorized pursuant to ~~division~~ 85
divisions (A) to (D) of this section, resolutions may be proposed 86
by initiative or referendum petitions in accordance with sections 87
731.28 to 731.41 of the Revised Code. 88

       (2) With respect to a governmental aggregation for a township 89
or the unincorporated area of a county, which aggregation is 90
authorized pursuant to ~~division~~divisions (A) to (D) of this 91
section, resolutions may be proposed by initiative or referendum 92
petitions in accordance with sections 731.28 to 731.40 of the 93
Revised Code, except that: 94

       (a) The petitions shall be filed, respectively, with the 95
township fiscal officer or the board of county commissioners, who 96
shall perform those duties imposed under those sections upon the 97
city auditor or village clerk. 98

       (b) The petitions shall contain the signatures of not less 99
than ten per cent of the total number of electors in, 100
respectively, the township or the unincorporated area of the 101
county who voted for the office of governor at the preceding 102
general election for that office in that area. 103

       (F) A governmental aggregator under division (A) of this 104
section is not a public utility engaging in the wholesale purchase 105
and resale of electricity, and provision of the aggregated service 106
is not a wholesale utility transaction. A governmental aggregator 107
shall be subject to supervision and regulation by the public 108
utilities commission only to the extent of any competitive retail 109
electric service it provides and commission authority under this 110
chapter. 111

       (G) This section does not apply in the case of a municipal 112
corporation that supplies such aggregated service to electric load 113
centers to which its municipal electric utility also supplies a 114
noncompetitive retail electric service through transmission or 115
distribution facilities the utility singly or jointly owns or 116
operates. 117

       (H) A governmental aggregator shall not include in its 118
aggregation the accounts of any of the following: 119

       (1) A customer that has opted out of the aggregation; 120

       (2) A customer in contract with a certified competitive 121
retail electric services provider; 122

       (3) A customer that has a special contract with an electric 123
distribution utility; 124

       (4) A customer that is not located within the governmental 125
aggregator's governmental boundaries; 126

       (5) Subject to division (C) of section 4928.21 of the Revised 127
Code, a customer who appears on the "do not aggregate" list 128
maintained under that section. 129

       Sec. 4928.21. (A) A customer that desires to remove itself 130
from the pool of customers eligible to participate in governmental 131
aggregation under section 4928.20 of the Revised Code may register 132
with the public utilities commission to appear on the "do not 133
aggregate" list. 134

       (B) The commission, by rule, shall establish a "do not 135
aggregate" list. The commission shall maintain the "do not 136
aggregate" list and make it publicly available on the commission's 137
web site. 138

       (C) If a customer is enrolled in a governmental aggregation 139
program at the time the customer first appears on the "do not 140
aggregate" list, the governmental aggregator shall remove the 141
customer from the program at the next two-year opt out opportunity 142
that is available to the customer under division (D) of section 143
4928.20 of the Revised Code. 144

       Section 2. That existing section 4928.20 of the Revised Code 145
is hereby repealed. 146

       Section 3. A mercantile commercial customer that is enrolled 147
in an automatic governmental aggregation on the effective date of 148
this act shall remain enrolled in that aggregation program until 149
the earlier of the customer providing notice and paying any 150
switching fee that may be required pursuant to rules adopted by 151
the Public Utilities Commission or until the arrival of the 152
program's next opt-out opportunity under division (D) of section 153
4928.20 of the Revised Code as amended by this act. The automatic 154
enrollment of the mercantile commercial customer in the 155
governmental aggregation shall then terminate by operation of law. 156
Thereafter, in accordance with division (A) of that section, the 157
mercantile commercial customer shall be enrolled in a governmental 158
aggregation only with the customer's prior, affirmative consent. 159

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, affirmative consent of	21
each person owning, occupying, controlling, or using an electric	22
load center proposed to be aggregated or will occur automatically	23
for all such persons pursuant to the opt-out requirements of	24
division (D) of this section. The aggregation of mercantile	25
commercial customers shall occur only with the prior, affirmative	26
consent of each such person owning, occupying, controlling, or	27
using an electric load center proposed to be aggregated. Nothing	28
in this division, however, authorizes the aggregation of ~~such~~the	29
retail electric loads of an electric load center, as defined in	30
section 4933.81 of the Revised Code, that is located in the	31
certified territory of a nonprofit electric supplier under	32
sections 4933.81 to 4933.90 of the Revised Code or an electric	33
load center served by transmission or distribution facilities of a	34
municipal electric utility.	35

(B) If an ordinance or resolution adopted under division (A)	36
of this section specifies that aggregation of customers that are	37
not mercantile commercial customers will occur automatically as	38
described in that division, the ordinance or resolution shall	39
direct the board of elections to submit the question of the	40
authority to aggregate to the electors of the respective municipal	41
corporation, township, or unincorporated area of a county at a	42
special election on the day of the next primary or general	43
election in the municipal corporation, township, or county. The	44
legislative authority or board shall certify a copy of the	45
ordinance or resolution to the board of elections not less than	46
seventy-five days before the day of the special election. No	47
ordinance or resolution adopted under division (A) of this section	48
that provides for an election under this division shall take	49
effect unless approved by a majority of the electors voting upon	50
the ordinance or resolution at the election held pursuant to this	51
division.	52

(C) Upon the applicable requisite authority under divisions	53
(A) and (B) of this section, the legislative authority or board	54
shall develop a plan of operation and governance for the	55
aggregation program so authorized. Before adopting a plan under	56
this division, the legislative authority or board shall hold at	57
least two public hearings on the plan. Before the first hearing,	58
the legislative authority or board shall publish notice of the	59
hearings once a week for two consecutive weeks in a newspaper of	60
general circulation in the jurisdiction. The notice shall	61
summarize the plan and state the date, time, and location of each	62
hearing.	63

(D) No legislative authority or board, pursuant to an	64
ordinance or resolution under divisions (A) and (B) of this	65
section that provides for automatic aggregation of customers that	66
are not mercantile commercial customers as described in division	67
(A) of this section, shall aggregate the electrical load of any	68
electric load center located within its jurisdiction unless it in	69
advance clearly discloses to the person owning, occupying,	70
controlling, or using the load center that the person will be	71
enrolled automatically in the aggregation program and will remain	72
so enrolled unless the person affirmatively elects by a stated	73
procedure not to be so enrolled. The disclosure shall state	74
prominently the rates, charges, and other terms and conditions of	75
enrollment. The stated procedure shall allow any person enrolled	76
in the aggregation program the opportunity to opt out of the	77
program every two years, without paying a switching fee. Any such	78
person that opts out of the aggregation program pursuant to the	79
stated procedure shall default to the standard service offer	80
provided under division (A) of section 4928.14 or division (D) of	81
section 4928.35 of the Revised Code until the person chooses an	82
alternative supplier.	83

(E)(1) With respect to a governmental aggregation for a	84
municipal corporation that is authorized pursuant to ~~division~~	85
divisions (A) to (D) of this section, resolutions may be proposed	86
by initiative or referendum petitions in accordance with sections	87
731.28 to 731.41 of the Revised Code.	88

(2) With respect to a governmental aggregation for a township	89
or the unincorporated area of a county, which aggregation is	90
authorized pursuant to ~~division~~divisions (A) to (D) of this	91
section, resolutions may be proposed by initiative or referendum	92
petitions in accordance with sections 731.28 to 731.40 of the	93
Revised Code, except that:	94

(a) The petitions shall be filed, respectively, with the	95
township fiscal officer or the board of county commissioners, who	96
shall perform those duties imposed under those sections upon the	97
city auditor or village clerk.	98

(b) The petitions shall contain the signatures of not less	99
than ten per cent of the total number of electors in,	100
respectively, the township or the unincorporated area of the	101
county who voted for the office of governor at the preceding	102
general election for that office in that area.	103

(F) A governmental aggregator under division (A) of this	104
section is not a public utility engaging in the wholesale purchase	105
and resale of electricity, and provision of the aggregated service	106
is not a wholesale utility transaction. A governmental aggregator	107
shall be subject to supervision and regulation by the public	108
utilities commission only to the extent of any competitive retail	109
electric service it provides and commission authority under this	110
chapter.	111

(G) This section does not apply in the case of a municipal	112
corporation that supplies such aggregated service to electric load	113
centers to which its municipal electric utility also supplies a	114
noncompetitive retail electric service through transmission or	115
distribution facilities the utility singly or jointly owns or	116
operates.	117

(H) A governmental aggregator shall not include in its	118
aggregation the accounts of any of the following:	119

(2) A customer in contract with a certified competitive	121
retail electric services provider;	122

(3) A customer that has a special contract with an electric	123
distribution utility;	124

(4) A customer that is not located within the governmental	125
aggregator's governmental boundaries;	126

(5) Subject to division (C) of section 4928.21 of the Revised	127
Code, a customer who appears on the "do not aggregate" list	128
maintained under that section.	129

Sec. 4928.21. (A) A customer that desires to remove itself	130
from the pool of customers eligible to participate in governmental	131
aggregation under section 4928.20 of the Revised Code may register	132
with the public utilities commission to appear on the "do not	133
aggregate" list.	134

(B) The commission, by rule, shall establish a "do not	135
aggregate" list. The commission shall maintain the "do not	136
aggregate" list and make it publicly available on the commission's	137
web site.	138

(C) If a customer is enrolled in a governmental aggregation	139
program at the time the customer first appears on the "do not	140
aggregate" list, the governmental aggregator shall remove the	141
customer from the program at the next two-year opt out opportunity	142
that is available to the customer under division (D) of section	143
4928.20 of the Revised Code.	144

Section 2. That existing section 4928.20 of the Revised Code	145
is hereby repealed.	146

Section 3. A mercantile commercial customer that is enrolled	147
in an automatic governmental aggregation on the effective date of	148
this act shall remain enrolled in that aggregation program until	149
the earlier of the customer providing notice and paying any	150
switching fee that may be required pursuant to rules adopted by	151
the Public Utilities Commission or until the arrival of the	152
program's next opt-out opportunity under division (D) of section	153
4928.20 of the Revised Code as amended by this act. The automatic	154
enrollment of the mercantile commercial customer in the	155
governmental aggregation shall then terminate by operation of law.	156
Thereafter, in accordance with division (A) of that section, the	157
mercantile commercial customer shall be enrolled in a governmental	158
aggregation only with the customer's prior, affirmative consent.	159