| Sec. 4928.71. Notwithstanding any provision that authorizes | 15 |
|
or requires earlier termination or expiration, the terms and | 16 |
|
conditions of an electric distribution utility's rate | 17 |
|
stabilization plan in effect on the effective date of this section | 18 |
|
shall remain in effect regarding the utility's provision of retail | 19 |
|
electric service in its certified electric distribution territory | 20 |
|
until such date as the public utilities commission, on its own | 21 |
|
initiative or pursuant to the application of any person, specifies | 22 |
|
in a final order, after notice and an opportunity to be heard, | 23 |
|
that there is effective competition in the provision of retail | 24 |
|
generation service in that territory. For that purpose, the | 25 |
|
commission shall consider the factors specified in and applicable | 26 |
|
to services described in division (D) of section 4928.06 of the | 27 |
|
Revised Code. | 28 |
| (1) Authorize or require one or more electric distribution | 34 |
|
utilities, the
certified electric distribution territories of | 35 |
|
which have
inadequate electric generating capacity as determined | 36 |
|
by the
commission, to construct one or more electric generating | 37 |
|
facilities in this state. Chapter 4906. and division (E) of | 38 |
|
section 4928.17 of the Revised Code shall not apply to any such | 39 |
|
facility. In exercising its authority under section 4905.20, | 40 |
|
4905.21, 4905.46, or 4905.48 of the Revised Code, the commission | 41 |
|
shall deny the divestiture of any such facility if the divestiture | 42 |
|
will adversely affect the adequacy of generating capacity for | 43 |
|
consumers in this state. | 44 |
| (2) Provide for the design and
construction of one or more | 45 |
|
electric generating facilities in this
state under jurisdiction | 46 |
|
of the commission hereby conferred. For that purpose, the | 47 |
|
commission may hire such expertise as it
determines necessary to | 48 |
|
design, construct, and operate any such
facility; and shall have | 49 |
|
such power as is necessary to ensure the
facility is built using | 50 |
|
best practices, and built in a financially
prudent manner with | 51 |
|
maximum, reasonable cost-effectiveness for
consumers. Financing | 52 |
|
may include cash, installment payments with
or without a | 53 |
|
mortgage, lease-purchase agreements, leases with an
option to | 54 |
|
purchase, or the issuance of securities under sections
4928.73 to | 55 |
|
4928.735 of the Revised Code. | 56 |
| (B)(1) For the purpose of financing all or part of the costs | 57 |
|
of designing and constructing a facility authorized or required | 58 |
|
under division (A)(1) or (2) of this section, the commission by | 59 |
|
order may establish a just and reasonable surcharge on electric | 60 |
|
distribution rates if, after notice and hearing, it determines | 61 |
|
that the surcharge will enable the construction of the facility in | 62 |
|
a financially prudent manner with maximum, reasonable | 63 |
|
cost-effectiveness for consumers. The surcharge may be established | 64 |
|
on the distribution rates of customers in all certified | 65 |
|
territories in this state or customers of one or more certified | 66 |
|
territories as the commission determines just and reasonable. If | 67 |
|
the surcharge is established for a facility authorized or required | 68 |
|
under division (A)(1) of this section, the commission shall | 69 |
|
ensure, through such means or methods the commission determines | 70 |
|
reasonably appropriate, that the benefits of the facility to | 71 |
|
surcharge customers and to the utility or utilities under that | 72 |
|
division are justly and reasonably shared proportionate to their | 73 |
|
respective financial contributions to the facility's design and | 74 |
|
construction costs. | 75 |
| (2) The surcharge shall not exceed the amount the commission | 76 |
|
determines necessary to pay only the design and construction costs | 77 |
|
of the facility or facilities over and above any other money as | 78 |
|
will be or is applied to those costs. Such costs shall include | 79 |
|
architectural and engineering fees, land acquisition or | 80 |
|
remediation costs, and such other third-party costs related to a | 81 |
|
facility's design or construction. | 82 |
| (3) An electric distribution utility shall remit the | 83 |
|
surcharge revenue quarterly to the commission. The revenue shall | 84 |
|
be deposited to the credit of the generating capacity fund, which | 85 |
|
fund shall be in the custody of the treasurer of state, but shall | 86 |
|
not be part of the state treasury. All interest and other earnings | 87 |
|
on the fund shall be credited to the fund. The fund shall be used | 88 |
|
first to pay any debt charges and any special fund deposits in | 89 |
|
compliance with securities documents executed under section | 90 |
|
4928.734 of the Revised Code and then to any other cost specified | 91 |
|
in division (B)(2) of this section. | 92 |
| Sec. 4928.731. (A) When directed by the public utilities | 106 |
|
commission and in the amount determined by the commission, the | 107 |
|
issuing authority shall issue securities for the sole purpose of | 108 |
|
financing the design and construction of one or more electric | 109 |
|
generating facilities pursuant to division (A)(2) of
section | 110 |
|
4928.72 of the Revised
Code. The securities shall be
secured | 111 |
|
only by the revenue generated from a
surcharge
authorized
under | 112 |
|
division (B) of that section. The authority also may issue | 113 |
|
securities to fund or refund, and issue securities in anticipation | 114 |
|
of the
proceeds of, those securities. | 115 |
| (D) The authority may appoint or provide
for the appointment | 124 |
|
of agents, consultants, independent
contractors, or any other | 125 |
|
type of administrative, investment,
financial, or accounting | 126 |
|
experts as are necessary, in the judgment
of the authority, to | 127 |
|
carry out the authority's duties under
sections 4928.73 to | 128 |
|
4928.735 of the Revised Code. | 129 |
| Sec. 4928.732. Securities issued under section 4928.731 of | 130 |
|
the Revised Code are special obligation securities and are not | 131 |
|
general obligations of this state. Such securities shall not | 132 |
|
constitute debt for which the full faith and credit of this state | 133 |
|
may be pledged. The holder or owner of the securities shall have | 134 |
|
no right to have money raised by taxation by this state or any | 135 |
|
political subdivision of this state obligated or pledged, and | 136 |
|
money
so raised shall not be obligated or pledged, for the | 137 |
|
payment of
principal or interest on such securities, and each | 138 |
|
security shall
bear on its face a statement to that effect. Money | 139 |
|
received by the
public utilities commission pursuant to division | 140 |
|
(B) of section 4928.72 of the
Revised Code shall not
be | 141 |
|
considered money raised by taxation. | 142 |
| Sec. 4928.733. The proceeds from the issuance of securities | 143 |
|
under section 4928.731 of the Revised Code shall be deposited into | 144 |
|
the generating capacity securities fund, which is hereby created. | 145 |
|
The
fund shall be in the custody of the treasurer of state, but | 146 |
|
shall
not be part of the state treasury. The fund shall consist | 147 |
|
of the
proceeds of the securities and shall be used to pay only | 148 |
|
design, construction, and related costs specified in division | 149 |
|
(B)(2) of section 4928.72 of the Revised
Code and may be used to | 150 |
|
pay for costs and expenses related to the
issuance of the | 151 |
|
securities at the discretion of the issuing
authority. All | 152 |
|
interest and other earnings of the fund shall be
credited to the | 153 |
|
fund. | 154 |
| Sec. 4928.734. The issuing authority shall take all action | 155 |
|
necessary to pay the debt incurred by the issuance of securities | 156 |
|
pursuant to section 4928.731 of the Revised Code and shall execute | 157 |
|
all necessary documents to provide for the pledge, protection, and | 158 |
|
disposition of any pledged revenue raised from the surcharge | 159 |
|
authorized under division (B) of section 4928.72 of
the Revised | 160 |
|
Code
from which debt charges and any special fund
deposits are | 161 |
|
to be
paid. Those necessary documents include the
issued | 162 |
|
securities,
trust agreements, leases, and other financing | 163 |
|
documents. | 164 |