As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 375

Representative Yates 

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A BILL

To amend sections 4928.01 and 4928.10 and to enact

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section 4905.67 of the Revised Code to require

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certain public utilities to provide billing and

3

collection services to customers at no charge.

4

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

Section 1. That sections 4928.01 and 4928.10 be amended and	5
section 4905.67 of the Revised Code be enacted to read as follows:	6

Sec. 4905.67.  A public utility that is an electric light	7
company, a telephone company, or a water-works company shall not	8
use a third party for billing and collection services and shall	9
provide such services to customers at no charge.	10

Sec. 4928.01.  (A) As used in this chapter:

11

(1) "Ancillary service" means any function necessary to the	12
provision of electric transmission or distribution service to a	13
retail customer and includes, but is not limited to, scheduling,	14
system control, and dispatch services; reactive supply from	15
generation resources and voltage control service; reactive supply	16
from transmission resources service; regulation service; frequency	17
response service; energy imbalance service; operating	18
reserve-spinning reserve service; operating reserve-supplemental	19
reserve service; load following; back-up supply service;	20
real-power loss replacement service; dynamic scheduling; system	21
black start capability; and network stability service.	22

(2) "Billing and collection agent" means a fully independent	23
agent, not affiliated with or otherwise controlled by an electric	24
utility, electric services company, electric cooperative, or	25
governmental aggregator subject to certification under section	26
4928.08 of the Revised Code, to the extent that the agent is under	27
contract with such utility, company, cooperative, or aggregator	28
solely to provide billing and collection for retail electric	29
service on behalf of the utility company, cooperative, or	30
aggregator.	31

(3) "Certified territory" means the certified territory	32
established for an electric supplier under sections 4933.81 to	33
4933.90 of the Revised Code.	34

(4) "Competitive retail electric service" means a component	35
of retail electric service that is competitive as provided under	36
division (B) of this section.	37

(5) "Electric cooperative" means a not-for-profit electric	38
light company that both is or has been financed in whole or in	39
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	40
7 U.S.C. 901, and owns or operates facilities in this state to	41
generate, transmit, or distribute electricity, or a not-for-profit	42
successor of such company.	43

(6) "Electric distribution utility" means an electric utility	44
that supplies at least retail electric distribution service.	45

(7) "Electric light company" has the same meaning as in	46
section 4905.03 of the Revised Code and includes an electric	47
services company, but excludes any self-generator to the extent	48
that it consumes electricity it so produces, sells that	49
electricity for resale, or obtains electricity from a generating	50
facility it hosts on its premises.	51

(8) "Electric load center" has the same meaning as in section	52
4933.81 of the Revised Code.	53

(9) "Electric services company" means an electric light	54
company that is engaged on a for-profit or not-for-profit basis in	55
the business of supplying or arranging for the supply of only a	56
competitive retail electric service in this state. "Electric	57
services company" includes a power marketer, power broker,	58
aggregator, or independent power producer but excludes an electric	59
cooperative, municipal electric utility, governmental aggregator,	60
or billing and collection agent.	61

(10) "Electric supplier" has the same meaning as in section	62
4933.81 of the Revised Code.	63

(11) "Electric utility" means an electric light company that	64
has a certified territory and is engaged on a for-profit basis	65
either in the business of supplying a noncompetitive retail	66
electric service in this state or in the businesses of supplying	67
both a noncompetitive and a competitive retail electric service	68
in this state. "Electric utility" excludes a municipal electric	69
utility or a billing and collection agent.	70

(12) "Firm electric service" means electric service other	71
than nonfirm electric service.	72

(13) "Governmental aggregator" means a legislative authority	73
of a municipal corporation, a board of township trustees, or a	74
board of county commissioners acting as an aggregator for the	75
provision of a competitive retail electric service under authority	76
conferred under section 4928.20 of the Revised Code.	77

(14) A person acts "knowingly," regardless of the person's	78
purpose, when the person is aware that the person's conduct will	79
probably cause a certain result or will probably be of a certain	80
nature. A person has knowledge of circumstances when the person is	81
aware that such circumstances probably exist.	82

(15) "Level of funding for low-income customer energy	83
efficiency programs provided through electric utility rates" means	84
the level of funds specifically included in an electric utility's	85
rates on October 5, 1999, pursuant to an order of the public	86
utilities commission issued under Chapter 4905. or 4909. of the	87
Revised Code and in effect on October 4, 1999, for the purpose of	88
improving the energy efficiency of housing for the utility's	89
low-income customers. The term excludes the level of any such	90
funds committed to a specific nonprofit organization or	91
organizations pursuant to a stipulation or contract.	92

(16) "Low-income customer assistance programs" means the	93
percentage of income payment plan program, the home energy	94
assistance program, the home weatherization assistance program,	95
and the targeted energy efficiency and weatherization program.	96

(17) "Market development period" for an electric utility	97
means the period of time beginning on the starting date of	98
competitive retail electric service and ending on the applicable	99
date for that utility as specified in section 4928.40 of the	100
Revised Code, irrespective of whether the utility applies to	101
receive transition revenues under this chapter.	102

(18) "Market power" means the ability to impose on customers	103
a sustained price for a product or service above the price that	104
would prevail in a competitive market.	105

(19) "Mercantile customer" means a commercial or industrial	106
customer if the electricity consumed is for nonresidential use and	107
the customer consumes more than seven hundred thousand kilowatt	108
hours per year or is part of a national account involving multiple	109
facilities in one or more states.	110

(20) "Municipal electric utility" means a municipal	111
corporation that owns or operates facilities to generate,	112
transmit, or distribute electricity.	113

(21) "Noncompetitive retail electric service" means a	114
component of retail electric service that is noncompetitive as	115
provided under division (B) of this section.	116

(22) "Nonfirm electric service" means electric service	117
provided pursuant to a schedule filed under section 4905.30 of the	118
Revised Code or pursuant to an arrangement under section 4905.31	119
of the Revised Code, which schedule or arrangement includes	120
conditions that may require the customer to curtail or interrupt	121
electric usage during nonemergency circumstances upon	122
notification by an electric utility.	123

(23) "Percentage of income payment plan arrears" means funds	124
eligible for collection through the percentage of income payment	125
plan rider, but uncollected as of July 1, 2000.	126

(24) "Person" has the same meaning as in section 1.59 of the	127
Revised Code.	128

(25) "Advanced energy project" means any technologies,	129
products, activities, or management practices or strategies that	130
facilitate the generation or use of electricity or energy and that	131
reduce or support the reduction of energy consumption or support	132
the production of clean, renewable energy for industrial,	133
distribution, commercial, institutional, governmental, research,	134
not-for-profit, or residential energy users, including, but not	135
limited to, advanced energy resources and renewable energy	136
resources. "Advanced energy project" also includes any project	137
described in division (A), (B), or (C) of section 4928.621 of the	138
Revised Code.	139

(26) "Regulatory assets" means the unamortized net	140
regulatory assets that are capitalized or deferred on the	141
regulatory books of the electric utility, pursuant to an order or	142
practice of the public utilities commission or pursuant to	143
generally accepted accounting principles as a result of a prior	144
commission rate-making decision, and that would otherwise have	145
been charged to expense as incurred or would not have been	146
capitalized or otherwise deferred for future regulatory	147
consideration absent commission action. "Regulatory assets"	148
includes, but is not limited to, all deferred demand-side	149
management costs; all deferred percentage of income payment plan	150
arrears; post-in-service capitalized charges and assets recognized	151
in connection with statement of financial accounting standards no.	152
109 (receivables from customers for income taxes); future nuclear	153
decommissioning costs and fuel disposal costs as those costs have	154
been determined by the commission in the electric utility's most	155
recent rate or accounting application proceeding addressing such	156
costs; the undepreciated costs of safety and radiation control	157
equipment on nuclear generating plants owned or leased by an	158
electric utility; and fuel costs currently deferred pursuant to	159
the terms of one or more settlement agreements approved by the	160
commission.	161

(27) "Retail electric service" means any service involved in	162
supplying or arranging for the supply of electricity to ultimate	163
consumers in this state, from the point of generation to the	164
point of consumption. For the purposes of this chapter, retail	165
electric service includes one or more of the following "service	166
components": generation service, aggregation service, power	167
marketing service, power brokerage service, transmission service,	168
distribution service, ancillary service, metering service, and	169
billing and collection service.	170

(28) "Starting date of competitive retail electric service"	171
means January 1, 2001.	172

(29) "Customer-generator" means a user of a net metering	173
system.	174

(30) "Net metering" means measuring the difference in an	175
applicable billing period between the electricity supplied by an	176
electric service provider and the electricity generated by a	177
customer-generator that is fed back to the electric service	178
provider.	179

(31) "Net metering system" means a facility for the	180
production of electrical energy that does all of the following:	181

(a) Uses as its fuel either solar, wind, biomass, landfill	182
gas, or hydropower, or uses a microturbine or a fuel cell;	183

(b) Is located on a customer-generator's premises;

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(c) Operates in parallel with the electric utility's	185
transmission and distribution facilities;	186

(d) Is intended primarily to offset part or all of the	187
customer-generator's requirements for electricity.	188

(32) "Self-generator" means an entity in this state that	189
owns or hosts on its premises an electric generation facility	190
that produces electricity primarily for the owner's consumption	191
and that may provide any such excess electricity to another	192
entity, whether the facility is installed or operated by the	193
owner or by an agent under a contract.	194

(33) "Rate plan" means the standard service offer in effect	195
on the effective date of the amendment of this section by S.B. 221	196
of the 127th general assembly, July 31, 2008.	197

(34) "Advanced energy resource" means any of the following:

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(a) Any method or any modification or replacement of any	199
property, process, device, structure, or equipment that increases	200
the generation output of an electric generating facility to the	201
extent such efficiency is achieved without additional carbon	202
dioxide emissions by that facility;	203

(b) Any distributed generation system consisting of customer	204
cogeneration of electricity and thermal output simultaneously,	205
primarily to meet the energy needs of the customer's facilities;	206

(c) Clean coal technology that includes a carbon-based	207
product that is chemically altered before combustion to	208
demonstrate a reduction, as expressed as ash, in emissions of	209
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	210
sulfur trioxide in accordance with the American society of testing	211
and materials standard D1757A or a reduction of metal oxide	212
emissions in accordance with standard D5142 of that society, or	213
clean coal technology that includes the design capability to	214
control or prevent the emission of carbon dioxide, which design	215
capability the commission shall adopt by rule and shall be based	216
on economically feasible best available technology or, in the	217
absence of a determined best available technology, shall be of	218
the highest level of economically feasible design capability for	219
which there exists generally accepted scientific opinion;	220

(d) Advanced nuclear energy technology consisting of	221
generation III technology as defined by the nuclear regulatory	222
commission; other, later technology; or significant improvements	223
to existing facilities;	224

(e) Any fuel cell used in the generation of electricity,	225
including, but not limited to, a proton exchange membrane fuel	226
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	227
solid oxide fuel cell;	228

(f) Advanced solid waste or construction and demolition	229
debris conversion technology, including, but not limited to,	230
advanced stoker technology, and advanced fluidized bed	231
gasification technology, that results in measurable greenhouse	232
gas emissions reductions as calculated pursuant to the United	233
States environmental protection agency's waste reduction model	234
(WARM).	235

(g) Demand-side management and any energy efficiency	236
improvement;	237

(h) Methane gas emitted from an operating or abandoned coal	238
mine.	239

(35) "Renewable energy resource" means solar photovoltaic or	240
solar thermal energy, wind energy, power produced by a	241
hydroelectric facility, geothermal energy, fuel derived from	242
solid wastes, as defined in section 3734.01 of the Revised	243
Code, through fractionation, biological decomposition, or other	244
process that does not principally involve combustion, biomass	245
energy, biologically derived methane gas, or energy derived	246
from nontreated by-products of the pulping process or wood	247
manufacturing process, including bark, wood chips, sawdust,	248
and lignin in spent pulping liquors. "Renewable energy	249
resource" includes, but is not limited to, any fuel cell used	250
in the generation of electricity, including, but not limited	251
to, a proton exchange membrane fuel cell, phosphoric acid fuel	252
cell, molten carbonate fuel cell, or solid oxide fuel cell; wind	253
turbine located in the state's territorial waters of Lake Erie;	254
storage facility that will promote the better utilization of a	255
renewable energy resource that primarily generates off peak; or	256
distributed generation system used by a customer to generate	257
electricity from any such energy. As used in division (A)(35)	258
of this section, "hydroelectric facility" means a hydroelectric	259
generating facility that is located at a dam on a river, or on	260
any water discharged to a river, that is within or bordering this	261
state or within or bordering an adjoining state and meets all of	262
the following standards:	263

(a) The facility provides for river flows that are not	264
detrimental for fish, wildlife, and water quality, including	265
seasonal flow fluctuations as defined by the applicable licensing	266
agency for the facility.	267

(b) The facility demonstrates that it complies with the	268
water quality standards of this state, which compliance may	269
consist of certification under Section 401 of the "Clean Water	270
Act of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and	271
demonstrates that it has not contributed to a finding by this	272
state that the river has impaired water quality under Section	273
303(d) of the "Clean Water Act of 1977," 114 Stat. 870, 33	274
U.S.C. 1313.	275

(c) The facility complies with mandatory prescriptions	276
regarding fish passage as required by the federal energy	277
regulatory commission license issued for the project, regarding	278
fish protection for riverine, anadromous, and catadromus fish.	279

(d) The facility complies with the recommendations of the	280
Ohio environmental protection agency and with the terms of its	281
federal energy regulatory commission license regarding watershed	282
protection, mitigation, or enhancement, to the extent of each	283
agency's respective jurisdiction over the facility.	284

(e) The facility complies with provisions of the "Endangered	285
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	286
amended.	287

(f) The facility does not harm cultural resources of the	288
area. This can be shown through compliance with the terms of its	289
federal energy regulatory commission license or, if the facility	290
is not regulated by that commission, through development of a plan	291
approved by the Ohio historic preservation office, to the extent	292
it has jurisdiction over the facility.	293

(g) The facility complies with the terms of its federal	294
energy regulatory commission license or exemption that are related	295
to recreational access, accommodation, and facilities or, if the	296
facility is not regulated by that commission, the facility	297
complies with similar requirements as are recommended by	298
resource agencies, to the extent they have jurisdiction over the	299
facility; and the facility provides access to water to the	300
public without fee or charge.	301

(h) The facility is not recommended for removal by any	302
federal agency or agency of any state, to the extent the	303
particular agency has jurisdiction over the facility.	304

(B) For the purposes of this chapter, a retail electric	305
service component shall be deemed a competitive retail electric	306
service if the service component is competitive pursuant to a	307
declaration by a provision of the Revised Code or pursuant to an	308
order of the public utilities commission authorized under division	309
(A) of section 4928.04 of the Revised Code. Otherwise, the	310
service component shall be deemed a noncompetitive retail electric	311
service.	312

Sec. 4928.10.  For the protection of consumers in this state,	313
the public utilities commission shall adopt rules under division	314
(A) of section 4928.06 of the Revised Code specifying the	315
necessary minimum service requirements, on or after the starting	316
date of competitive retail electric service, of an electric	317
utility, electric services company, electric cooperative, or	318
governmental aggregator subject to certification under section	319
4928.08 of the Revised Code regarding the provision, directly or	320
through itsan electric cooperative's or governmental aggregator's	321
billing and collection agent, of competitive retail electric	322
services for which it is subject to certification. Rules adopted	323
under this section shall include a prohibition against unfair,	324
deceptive, and unconscionable acts and practices in the marketing,	325
solicitation, and sale of such a competitive retail electric	326
service and in the administration of any contract for service, and	327
also shall include additional consumer protections concerning all	328
of the following:	329

(A) Contract disclosure. The rules shall include requirements	330
that an electric utility, electric services company, electric	331
cooperative, or governmental aggregator subject to certification	332
under section 4928.08 of the Revised Code do both of the	333
following:	334

(1) Provide consumers with adequate, accurate, and	335
understandable pricing and terms and conditions of service,	336
including any switching fees, and with a document containing the	337
terms and conditions of pricing and service before the consumer	338
enters into the contract for service;	339

(2) Disclose the conditions under which a customer may	340
rescind a contract without penalty.	341

(B) Service termination. The rules shall include disclosure	342
of the terms identifying how customers may switch or terminate	343
service, including any required notice and any penalties.	344

(C) Minimum content of customer bills. The rules shall	345
include all of the following requirements, which shall be	346
standardized:	347

(1) Price disclosure and disclosures of total billing units	348
for the billing period and historical annual usage;	349

(2) To the maximum extent practicable, separate listing of	350
each service component to enable a customer to recalculate its	351
bill for accuracy;	352

(3) Identification of the supplier of each service;

353

(4) Statement of where and how payment may be made and	354
provision of a toll-free or local customer assistance and	355
complaint number for the electric utility, electric services	356
company, electric cooperative, or governmental aggregator, as well	357
as a consumer assistance telephone number or numbers for state	358
agencies, such as the commission, the office of the consumers'	359
counsel, and the attorney general's office, with the available	360
hours noted;	361

(5) Other than for the first billing after the starting date	362
of competitive retail electric service, highlighting and clear	363
explanation on each customer bill, for two consecutive billing	364
periods, of any changes in the rates, terms, and conditions of	365
service.	366

(D) Disconnection and service termination, including	367
requirements with respect to master-metered buildings. The rules	368
shall include policies and procedures that are consistent with	369
sections 4933.121 and 4933.122 of the Revised Code and the	370
commission's rules adopted under those sections, and that provide	371
for all of the following:	372

(1) Coordination between suppliers for the purpose of	373
maintaining service;	374

(2) The allocation of partial payments between suppliers when	375
service components are jointly billed;	376

(3) A prohibition against blocking, or authorizing the	377
blocking of, customer access to a noncompetitive retail electric	378
service when a customer is delinquent in payments to the electric	379
utility or electric services company for a competitive retail	380
electric service;	381

(4) A prohibition against switching, or authorizing the	382
switching of, a customer's supplier of competitive retail electric	383
service without the prior consent of the customer in accordance	384
with appropriate confirmation practices, which may include	385
independent, third-party verification procedures.	386

(5) A requirement of disclosure of the conditions under which	387
a customer may rescind a decision to switch its supplier without	388
penalty;	389

(6) Specification of any required notice and any penalty for	390
early termination of contract.	391

(E) Minimum service quality, safety, and reliability.	392
However, service quality, safety, and reliability requirements for	393
electric generation service shall be determined primarily through	394
market expectations and contractual relationships.	395

(F) Generation resource mix and environmental characteristics	396
of power supplies. The rules shall include requirements for	397
determination of the approximate generation resource mix and	398
environmental characteristics of the power supplies and disclosure	399
to the customer prior to the customer entering into a contract to	400
purchase and four times per year under the contract. The rules	401
also shall require that the electric utility, electric services	402
company, electric cooperative, or governmental aggregator provide,	403
or cause itsthe electric cooperative's or governmental	404
aggregator's billing and collection agent to provide, a customer	405
with standardized information comparing the projected, with the	406
actual and verifiable, resource mix and environmental	407
characteristics. This disclosure shall occur not less than	408
annually or not less than once during the contract period if the	409
contract period is less than one year, and prior to any renewal of	410
a contract.	411

(G) Customer information. The rules shall include	412
requirements that the electric utility, electric services company,	413
electric cooperative, or governmental aggregator make generic	414
customer load pattern information available to other electric	415
light companies on a comparable and nondiscriminatory basis, and	416
make customer-specific information available to other electric	417
light companies on a comparable and nondiscriminatory basis	418
unless, as to customer-specific information, the customer objects.	419
The rules shall ensure that each such utility, company,	420
cooperative, or aggregator provide clear and frequent notice to	421
its customers of the right to object and of applicable procedures.	422
The rules shall establish the exact language that shall be used in	423
all such notices.	424

Section 2. That existing sections 4928.01 and 4928.10 of the	425
Revised Code are hereby repealed.	426