(B) Prior to initiating a competitive bidding process for a | 39 |
market-rate offer under division (A) of this section, the electric | 40 |
distribution utility shall file an application with the | 41 |
commission. An electric distribution utility may file its | 42 |
application with the commission prior to the effective date of the | 43 |
commission rules required under division (A)(2) of this section, | 44 |
and, as the commission determines necessary, the utility shall | 45 |
immediately conform its filing to the rules upon their taking | 46 |
effect. | 47 |
The commission shall initiate a proceeding and, within ninety | 70 |
days after the application's filing date, shall determine by order | 71 |
whether the electric distribution utility and its market-rate | 72 |
offer meet all of the foregoing requirements. If the finding is | 73 |
positive, the electric distribution utility may initiate its | 74 |
competitive bidding process. If the finding is negative as to one | 75 |
or more requirements, the commission in the order shall direct the | 76 |
electric distribution utility regarding how any deficiency may be | 77 |
remedied in a timely manner to the commission's satisfaction; | 78 |
otherwise, the electric distribution utility shall withdraw the | 79 |
application. However, if such remedy is made and the subsequent | 80 |
finding is positive and also if the electric distribution utility | 81 |
made a simultaneous filing under this section and section 4928.143 | 82 |
of the Revised Code, the utility shall not initiate its | 83 |
competitive bid until at least one hundred fifty days after the | 84 |
filing date of those applications. | 85 |
(C) Upon the completion of the competitive bidding process | 86 |
authorized by divisions (A) and (B) of this section, including for | 87 |
the purpose of division (D) of this section, the commission shall | 88 |
select the least-cost bid winner or winners of that process, and | 89 |
such selected bid or bids, as prescribed as retail rates by the | 90 |
commission, shall be the electric distribution utility's standard | 91 |
service offer unless the commission, by order issued before the | 92 |
third calendar day following the conclusion of the competitive | 93 |
bidding process for the market rate offer, determines that one or | 94 |
more of the following criteria were not met: | 95 |
All costs incurred by the electric distribution utility as a | 102 |
result of or related to the competitive bidding process or to | 103 |
procuring generation service to provide the standard service | 104 |
offer, including the costs of energy and capacity and the costs of | 105 |
all other products and services procured as a result of the | 106 |
competitive bidding process, shall be timely recovered through the | 107 |
standard service offer price, and, for that purpose, the | 108 |
commission shall approve a reconciliation mechanism, other | 109 |
recovery mechanism, or a combination of such mechanisms for the | 110 |
utility. | 111 |
(D) The first application filed under this section by an | 112 |
electric distribution utility that, as of July 31, 2008, directly | 113 |
owns, in whole or in part, operating electric generating | 114 |
facilities that had been used and useful in this state shall | 115 |
require that a portion of that utility's standard service offer | 116 |
load for the first five years of the market rate offer be | 117 |
competitively bid under division (A) of this section as follows: | 118 |
ten per cent of the load in year one, not more than twenty per | 119 |
cent in year two, thirty per cent in year three, forty per cent in | 120 |
year four, and fifty per cent in year five. Consistent with those | 121 |
percentages, the commission shall determine the actual percentages | 122 |
for each year of years one through five. The standard service | 123 |
offer price for retail electric generation service under this | 124 |
first application shall be a proportionate blend of the bid price | 125 |
and the generation service price for the remaining standard | 126 |
service offer load, which latter price shall be equal to the | 127 |
electric distribution utility's most recent standard service offer | 128 |
price, adjusted upward or downward as the commission determines | 129 |
reasonable, relative to the jurisdictional portion of any known | 130 |
and measurable changes from the level of any one or more of the | 131 |
following costs as reflected in that most recent standard service | 132 |
offer price: | 133 |
In making any adjustment to the most recent standard service | 144 |
offer price on the basis of costs described in division (D) of | 145 |
this section, the commission shall include the benefits that may | 146 |
become available to the electric distribution utility as a result | 147 |
of or in connection with the costs included in the adjustment, | 148 |
including, but not limited to, the utility's receipt of emissions | 149 |
credits or its receipt of tax benefits or of other benefits, and, | 150 |
accordingly, the commission may impose such conditions on the | 151 |
adjustment to ensure that any such benefits are properly aligned | 152 |
with the associated cost responsibility. The commission shall also | 153 |
determine how such adjustments will affect the electric | 154 |
distribution utility's return on common equity that may be | 155 |
achieved by those adjustments. The commission shall not apply its | 156 |
consideration of the return on common equity to reduce any | 157 |
adjustments authorized under this division unless the adjustments | 158 |
will cause the electric distribution utility to earn a return on | 159 |
common equity that is significantly in excess of the return on | 160 |
common equity that is earned by publicly traded companies, | 161 |
including utilities, that face comparable business and financial | 162 |
risk, with such adjustments for capital structure as may be | 163 |
appropriate. The burden of proof for demonstrating that | 164 |
significantly excessive earnings will not occur shall be on the | 165 |
electric distribution utility. | 166 |
Additionally, the commission may adjust the electric | 167 |
distribution utility's most recent standard service offer price by | 168 |
such just and reasonable amount that the commission determines | 169 |
necessary to address any emergency that threatens the utility's | 170 |
financial integrity or to ensure that the resulting revenue | 171 |
available to the utility for providing the standard service offer | 172 |
is not so inadequate as to result, directly or indirectly, in a | 173 |
taking of property without compensation pursuant to Section 19 of | 174 |
Article I, Ohio Constitution. The electric distribution utility | 175 |
has the burden of demonstrating that any adjustment to its most | 176 |
recent standard service offer price is proper in accordance with | 177 |
this division. | 178 |
(E) Beginning in the second year of a blended price under | 179 |
division (D) of this section and notwithstanding any other | 180 |
requirement of this section, the commission may alter | 181 |
prospectively the proportions specified in that division to | 182 |
mitigate any effect of an abrupt or significant change in the | 183 |
electric distribution utility's standard service offer price that | 184 |
would otherwise result in general or with respect to any rate | 185 |
group or rate schedule but for such alteration. Any such | 186 |
alteration shall be made not more often than annually, and the | 187 |
commission shall not, by altering those proportions and in any | 188 |
event, including because of the length of time, as authorized | 189 |
under division (C) of this section, taken to approve the market | 190 |
rate offer, cause the duration of the blending period to exceed | 191 |
ten years as counted from the effective date of the approved | 192 |
market rate offer. Additionally, any such alteration shall be | 193 |
limited to an alteration affecting the prospective proportions | 194 |
used during the blending period and shall not affect any blending | 195 |
proportion previously approved and applied by the commission under | 196 |
this division. | 197 |
Sec. 4928.143. (A) For the purpose of complying with section | 203 |
4928.141 of the Revised Code, an electric distribution utility may | 204 |
file an application for public utilities commission approval of an | 205 |
electric security plan as prescribed under division (B) of this | 206 |
section. The utility may file that application prior to the | 207 |
effective date of any rules the commission may adopt for the | 208 |
purpose of this section, and, as the commission determines | 209 |
necessary, the utility immediately shall conform its filing to | 210 |
those rules upon their taking effect. | 211 |
(b) A reasonable allowance for construction work in progress | 234 |
for any of the electric distribution utility's cost of | 235 |
constructing an electric generating facility or for an | 236 |
environmental expenditure for any electric generating facility of | 237 |
the electric distribution utility, provided the cost is incurred | 238 |
or the expenditure occurs on or after January 1, 2009. Any such | 239 |
allowance shall be subject to the construction work in progress | 240 |
allowance limitations of division (A) of section 4909.15 of the | 241 |
Revised Code, except that the commission may authorize such an | 242 |
allowance upon the incurrence of the cost or occurrence of the | 243 |
expenditure. No such allowance for generating facility | 244 |
construction shall be authorized, however, unless the commission | 245 |
first determines in the proceeding that there is need for the | 246 |
facility based on resource planning projections submitted by the | 247 |
electric distribution utility. Further, no such allowance shall be | 248 |
authorized unless the facility's construction was sourced through | 249 |
a competitive bid process, regarding which process the commission | 250 |
may adopt rules. An allowance approved under division (B)(2)(b) of | 251 |
this section shall be established as a nonbypassable surcharge for | 252 |
the life of the facility. | 253 |
(c) The establishment of a nonbypassable surcharge for the | 254 |
life of an electric generating facility that is owned or operated | 255 |
by the electric distribution utility, was sourced through a | 256 |
competitive bid process subject to any such rules as the | 257 |
commission adopts under division (B)(2)(b) of this section, and is | 258 |
newly used and useful on or after January 1, 2009, which surcharge | 259 |
shall cover all costs of the utility specified in the application, | 260 |
excluding costs recovered through a surcharge under division | 261 |
(B)(2)(b) of this section. However, no surcharge shall be | 262 |
authorized unless the commission first determines in the | 263 |
proceeding that there is need for the facility based on resource | 264 |
planning projections submitted by the electric distribution | 265 |
utility. Additionally, if a surcharge is authorized for a facility | 266 |
pursuant to plan approval under division (C) of this section and | 267 |
as a condition of the continuation of the surcharge, the electric | 268 |
distribution utility shall dedicate to Ohio consumers the capacity | 269 |
and energy and the rate associated with the cost of that facility. | 270 |
Before the commission authorizes any surcharge pursuant to this | 271 |
division, it may consider, as applicable, the effects of any | 272 |
decommissioning, deratings, and retirements. | 273 |
(d) Terms, conditions, or charges relating to limitations on | 274 |
customer shopping for retail electric generation service, | 275 |
bypassability, standby, back-up, or supplemental power service, | 276 |
default service, carrying costs, amortization periods, and | 277 |
accounting or deferrals, including future recovery of such | 278 |
deferrals, as would have the effect of stabilizing or providing | 279 |
certainty regarding retail electric service; | 280 |
(h) Provisions regarding the utility's distribution service, | 297 |
including, without limitation and notwithstanding any provision of | 298 |
Title XLIX of the Revised Code to the contrary, provisions | 299 |
regarding single issue ratemaking, a revenue decoupling mechanism | 300 |
or any other incentive ratemaking, and provisions regarding | 301 |
distribution infrastructure and modernization incentives for the | 302 |
electric distribution utility. The latter may include a long-term | 303 |
energy delivery infrastructure modernization plan for that utility | 304 |
or any plan providing for the utility's recovery of costs, | 305 |
including lost revenue, shared savings, and avoided costs, and a | 306 |
just and reasonable rate of return on such infrastructure | 307 |
modernization. As part of its determination as to whether to allow | 308 |
in an electric distribution utility's electric security plan | 309 |
inclusion of any provision described in division (B)(2)(h) of this | 310 |
section, the commission shall examine the reliability of the | 311 |
electric distribution utility's distribution system and ensure | 312 |
that customers' and the electric distribution utility's | 313 |
expectations are aligned and that the electric distribution | 314 |
utility is placing sufficient emphasis on and dedicating | 315 |
sufficient resources to the reliability of its distribution | 316 |
system. | 317 |
(C)(1) The burden of proof in the proceeding shall be on the | 324 |
electric distribution utility. The commission shall issue an order | 325 |
under this division for an initial application under this section | 326 |
not later than one hundred fifty days after the application's | 327 |
filing date and, for any subsequent application by the utility | 328 |
under this section, not later than two hundred seventy-five days | 329 |
after the application's filing date. Subject to division (D) of | 330 |
this section, the commission by order shall approve or modify and | 331 |
approve an application filed under division (A) of this section if | 332 |
it finds that the electric security plan so approved, including | 333 |
its pricing and all other terms and conditions, including any | 334 |
deferrals and any future recovery of deferrals, is more favorable | 335 |
in the aggregate as compared to the expected results that would | 336 |
otherwise apply under section 4928.142 of the Revised Code. | 337 |
Additionally, if the commission so approves an application that | 338 |
contains a surcharge under division (B)(2)(b) or (c) of this | 339 |
section, the commission shall ensure that the benefits derived for | 340 |
any purpose for which the surcharge is established are reserved | 341 |
and made available to those that bear the surcharge. Otherwise, | 342 |
the commission by order shall disapprove the application. | 343 |
(b) If the utility terminates an application pursuant to | 349 |
division (C)(2)(a) of this section or if the commission | 350 |
disapproves an application under division (C)(1) of this section, | 351 |
the commission shall issue such order as is necessary to continue | 352 |
the provisions, terms, and conditions of the utility's most recent | 353 |
standard service offer, along with any expected increases or | 354 |
decreases in fuel costs from those contained in that offer, until | 355 |
a subsequent offer is authorized pursuant to this section or | 356 |
section 4928.142 of the Revised Code, respectively. | 357 |
(D) Regarding the rate plan requirement of division (A) of | 358 |
section 4928.141 of the Revised Code, if an electric distribution | 359 |
utility that has a rate plan that extends beyond December 31, | 360 |
2008, files an application under this section for the purpose of | 361 |
its compliance with division (A) of section 4928.141 of the | 362 |
Revised Code, that rate plan and its terms and conditions are | 363 |
hereby incorporated into its proposed electric security plan and | 364 |
shall continue in effect until the date scheduled under the rate | 365 |
plan for its expiration, and that portion of the electric security | 366 |
plan shall not be subject to commission approval or disapproval | 367 |
under division (C) of this section, and the earnings test provided | 368 |
for in division (F) of this section shall not apply until after | 369 |
the expiration of the rate plan. However, that utility may include | 370 |
in its electric security plan under this section, and the | 371 |
commission may approve, modify and approve, or disapprove subject | 372 |
to division (C) of this section, provisions for the incremental | 373 |
recovery or the deferral of any costs that are not being recovered | 374 |
under the rate plan and that the utility incurs during that | 375 |
continuation period to comply with section 4928.141, division (B) | 376 |
of section 4928.64,of the Revised Code or division (A) of section | 377 |
4928.66 of the Revised Code. | 378 |
(E) If an electric security plan approved under division (C) | 379 |
of this section, except one withdrawn by the utility as authorized | 380 |
under that division, has a term, exclusive of phase-ins or | 381 |
deferrals, that exceeds three years from the effective date of the | 382 |
plan, the commission shall test the plan in the fourth year, and | 383 |
if applicable, every fourth year thereafter, to determine whether | 384 |
the plan, including its then-existing pricing and all other terms | 385 |
and conditions, including any deferrals and any future recovery of | 386 |
deferrals, continues to be more favorable in the aggregate and | 387 |
during the remaining term of the plan as compared to the expected | 388 |
results that would otherwise apply under section 4928.142 of the | 389 |
Revised Code. The commission shall also determine the prospective | 390 |
effect of the electric security plan to determine if that effect | 391 |
is substantially likely to provide the electric distribution | 392 |
utility with a return on common equity that is significantly in | 393 |
excess of the return on common equity that is likely to be earned | 394 |
by publicly traded companies, including utilities, that face | 395 |
comparable business and financial risk, with such adjustments for | 396 |
capital structure as may be appropriate. The burden of proof for | 397 |
demonstrating that significantly excessive earnings will not occur | 398 |
shall be on the electric distribution utility. If the test results | 399 |
are in the negative or the commission finds that continuation of | 400 |
the electric security plan will result in a return on equity that | 401 |
is significantly in excess of the return on common equity that is | 402 |
likely to be earned by publicly traded companies, including | 403 |
utilities, that will face comparable business and financial risk, | 404 |
with such adjustments for capital structure as may be appropriate, | 405 |
during the balance of the plan, the commission may terminate the | 406 |
electric security plan, but not until it shall have provided | 407 |
interested parties with notice and an opportunity to be heard. The | 408 |
commission may impose such conditions on the plan's termination as | 409 |
it considers reasonable and necessary to accommodate the | 410 |
transition from an approved plan to the more advantageous | 411 |
alternative. In the event of an electric security plan's | 412 |
termination pursuant to this division, the commission shall permit | 413 |
the continued deferral and phase-in of any amounts that occurred | 414 |
prior to that termination and the recovery of those amounts as | 415 |
contemplated under that electric security plan. | 416 |
(F) With regard to the provisions that are included in an | 417 |
electric security plan under this section, the commission shall | 418 |
consider, following the end of each annual period of the plan, if | 419 |
any such adjustments resulted in excessive earnings as measured by | 420 |
whether the earned return on common equity of the electric | 421 |
distribution utility is significantly in excess of the return on | 422 |
common equity that was earned during the same period by publicly | 423 |
traded companies, including utilities, that face comparable | 424 |
business and financial risk, with such adjustments for capital | 425 |
structure as may be appropriate. Consideration also shall be given | 426 |
to the capital requirements of future committed investments in | 427 |
this state. The burden of proof for demonstrating that | 428 |
significantly excessive earnings did not occur shall be on the | 429 |
electric distribution utility. If the commission finds that such | 430 |
adjustments, in the aggregate, did result in significantly | 431 |
excessive earnings, it shall require the electric distribution | 432 |
utility to return to consumers the amount of the excess by | 433 |
prospective adjustments; provided that, upon making such | 434 |
prospective adjustments, the electric distribution utility shall | 435 |
have the right to terminate the plan and immediately file an | 436 |
application pursuant to section 4928.142 of the Revised Code. Upon | 437 |
termination of a plan under this division, rates shall be set on | 438 |
the same basis as specified in division (C)(2)(b) of this section, | 439 |
and the commission shall permit the continued deferral and | 440 |
phase-in of any amounts that occurred prior to that termination | 441 |
and the recovery of those amounts as contemplated under that | 442 |
electric security plan. In making its determination of | 443 |
significantly excessive earnings under this division, the | 444 |
commission shall not consider, directly or indirectly, the | 445 |
revenue, expenses, or earnings of any affiliate or parent company. | 446 |
Sec. 4928.20. (A) The legislative authority of a municipal | 447 |
corporation may adopt an ordinance, or the board of township | 448 |
trustees of a township or the board of county commissioners of a | 449 |
county may adopt a resolution, under which, on or after the | 450 |
starting date of competitive retail electric service, it may | 451 |
aggregate in accordance with this section the retail electrical | 452 |
loads located, respectively, within the municipal corporation, | 453 |
township, or unincorporated area of the county and, for that | 454 |
purpose, may enter into service agreements to facilitate for those | 455 |
loads the sale and purchase of electricity. The legislative | 456 |
authority or board also may exercise such authority jointly with | 457 |
any other such legislative authority or board. For customers that | 458 |
are not mercantile customers, an ordinance or resolution under | 459 |
this division shall specify whether the aggregation will occur | 460 |
only with the prior, affirmative consent of each person owning, | 461 |
occupying, controlling, or using an electric load center proposed | 462 |
to be aggregated or will occur automatically for all such persons | 463 |
pursuant to the opt-out requirements of division (D) of this | 464 |
section. The aggregation of mercantile customers shall occur only | 465 |
with the prior, affirmative consent of each such person owning, | 466 |
occupying, controlling, or using an electric load center proposed | 467 |
to be aggregated. Nothing in this division, however, authorizes | 468 |
the aggregation of the retail electric loads of an electric load | 469 |
center, as defined in section 4933.81 of the Revised Code, that is | 470 |
located in the certified territory of a nonprofit electric | 471 |
supplier under sections 4933.81 to 4933.90 of the Revised Code or | 472 |
an electric load center served by transmission or distribution | 473 |
facilities of a municipal electric utility. | 474 |
(B) If an ordinance or resolution adopted under division (A) | 475 |
of this section specifies that aggregation of customers that are | 476 |
not mercantile customers will occur automatically as described in | 477 |
that division, the ordinance or resolution shall direct the board | 478 |
of elections to submit the question of the authority to aggregate | 479 |
to the electors of the respective municipal corporation, township, | 480 |
or unincorporated area of a county at a special election on the | 481 |
day of the next primary or general election in the municipal | 482 |
corporation, township, or county. The legislative authority or | 483 |
board shall certify a copy of the ordinance or resolution to the | 484 |
board of elections not less than ninety days before the day of the | 485 |
special election. No ordinance or resolution adopted under | 486 |
division (A) of this section that provides for an election under | 487 |
this division shall take effect unless approved by a majority of | 488 |
the electors voting upon the ordinance or resolution at the | 489 |
election held pursuant to this division. | 490 |
(C) Upon the applicable requisite authority under divisions | 491 |
(A) and (B) of this section, the legislative authority or board | 492 |
shall develop a plan of operation and governance for the | 493 |
aggregation program so authorized. Before adopting a plan under | 494 |
this division, the legislative authority or board shall hold at | 495 |
least two public hearings on the plan. Before the first hearing, | 496 |
the legislative authority or board shall publish notice of the | 497 |
hearings once a week for two consecutive weeks in a newspaper of | 498 |
general circulation in the jurisdiction or as provided in section | 499 |
7.16 of the Revised Code. The notice shall summarize the plan and | 500 |
state the date, time, and location of each hearing. | 501 |
(D) No legislative authority or board, pursuant to an | 502 |
ordinance or resolution under divisions (A) and (B) of this | 503 |
section that provides for automatic aggregation of customers that | 504 |
are not mercantile customers as described in division (A) of this | 505 |
section, shall aggregate the electrical load of any electric load | 506 |
center located within its jurisdiction unless it in advance | 507 |
clearly discloses to the person owning, occupying, controlling, or | 508 |
using the load center that the person will be enrolled | 509 |
automatically in the aggregation program and will remain so | 510 |
enrolled unless the person affirmatively elects by a stated | 511 |
procedure not to be so enrolled. The disclosure shall state | 512 |
prominently the rates, charges, and other terms and conditions of | 513 |
enrollment. The stated procedure shall allow any person enrolled | 514 |
in the aggregation program the opportunity to opt out of the | 515 |
program every three years, without paying a switching fee. Any | 516 |
such person that opts out before the commencement of the | 517 |
aggregation program pursuant to the stated procedure shall default | 518 |
to the standard service offer provided under section 4928.14 or | 519 |
division (D) of section 4928.35 of the Revised Code until the | 520 |
person chooses an alternative supplier. | 521 |
(I) Customers that are part of a governmental aggregation | 568 |
under this section shall be responsible only for such portion of a | 569 |
surcharge under section 4928.144 of the Revised Code that is | 570 |
proportionate to the benefits, as determined by the commission, | 571 |
that electric load centers within the jurisdiction of the | 572 |
governmental aggregation as a group receive. The proportionate | 573 |
surcharge so established shall apply to each customer of the | 574 |
governmental aggregation while the customer is part of that | 575 |
aggregation. If a customer ceases being such a customer, the | 576 |
otherwise applicable surcharge shall apply. Nothing in this | 577 |
section shall result in less than full recovery by an electric | 578 |
distribution utility of any surcharge authorized under section | 579 |
4928.144 of the Revised Code. Nothing in this section shall result | 580 |
in less than the full and timely imposition, charging, collection, | 581 |
and adjustment by an electric distribution utility, its assignee, | 582 |
or any collection agent, of the phase-in-recovery charges | 583 |
authorized pursuant to a final financing order issued pursuant to | 584 |
sections 4928.23 to 4928.2318 of the Revised Code. | 585 |
(J) On behalf of the customers that are part of a | 586 |
governmental aggregation under this section and by filing written | 587 |
notice with the public utilities commission, the legislative | 588 |
authority that formed or is forming that governmental aggregation | 589 |
may elect not to receive standby service within the meaning of | 590 |
division (B)(2)(d) of section 4928.143 of the Revised Code from an | 591 |
electric distribution utility in whose certified territory the | 592 |
governmental aggregation is located and that operates under an | 593 |
approved electric security plan under that section. Upon the | 594 |
filing of that notice, the electric distribution utility shall not | 595 |
charge any such customer to whom competitive retail electric | 596 |
generation service is provided by another supplier under the | 597 |
governmental aggregation for the standby service. Any such | 598 |
consumer that returns to the utility for competitive retail | 599 |
electric service shall pay the market price of power incurred by | 600 |
the utility to serve that consumer plus any amount attributable to | 601 |
the utility's cost of compliance with the alternative energy | 602 |
resource provisions of section 4928.64 of the Revised Code to | 603 |
serve the consumer. Such market price shall include, but not be | 604 |
limited to, capacity and energy charges; all charges associated | 605 |
with the provision of that power supply through the regional | 606 |
transmission organization, including, but not limited to, | 607 |
transmission, ancillary services, congestion, and settlement and | 608 |
administrative charges; and all other costs incurred by the | 609 |
utility that are associated with the procurement, provision, and | 610 |
administration of that power supply, as such costs may be approved | 611 |
by the commission. The period of time during which the market | 612 |
price and alternative energy resource amount shall be so assessed | 613 |
on the consumer shall be from the time the consumer so returns to | 614 |
the electric distribution utility until the expiration of the | 615 |
electric security plan. However, if that period of time is | 616 |
expected to be more than two years, the commission may reduce the | 617 |
time period to a period of not less than two years. | 618 |
(K) The commission shall adopt rules to encourage and promote | 619 |
large-scale governmental aggregation in this state. For that | 620 |
purpose, the commission shall conduct an immediate review of any | 621 |
rules it has adopted for the purpose of this section that are in | 622 |
effect on the effective date of the amendment of this section by | 623 |
S.B. 221 of the 127th general assembly, July 31, 2008. Further, | 624 |
within the context of an electric security plan under section | 625 |
4928.143 of the Revised Code, the commission shall consider the | 626 |
effect on large-scale governmental aggregation of any | 627 |
nonbypassable generation charges, however collected, that would be | 628 |
established under that plan, except any nonbypassable generation | 629 |
charges that relate to any cost incurred by the electric | 630 |
distribution utility, the deferral of which has been authorized by | 631 |
the commission prior to the effective date of the amendment of | 632 |
this section by S.B. 221 of the 127th general assembly, July 31, | 633 |
2008. | 634 |
(1) Revenues remitted to the director after collection by | 645 |
each electric distribution utility in this state of a temporary | 646 |
rider on retail electric distribution service rates as such rates | 647 |
are determined by the public utilities commission pursuant to this | 648 |
chapter. The rider shall be a uniform amount statewide, determined | 649 |
by the director of development, after consultation with the public | 650 |
benefits advisory board created by section 4928.58 of the Revised | 651 |
Code. The amount shall be determined by dividing an aggregate | 652 |
revenue target for a given year as determined by the director, | 653 |
after consultation with the advisory board, by the number of | 654 |
customers of electric distribution utilities in this state in the | 655 |
prior year. Such aggregate revenue target shall not exceed more | 656 |
than fifteen million dollars in any year through 2005 and shall | 657 |
not exceed more than five million dollars in any year after 2005. | 658 |
The rider shall be imposed beginning on the effective date of the | 659 |
amendment of this section by Sub. H.B. 251 of the 126th general | 660 |
assembly, January 4, 2007, and shall terminate at the end of ten | 661 |
years following the starting date of competitive retail electric | 662 |
service or until the advanced energy fund, including interest, | 663 |
reaches one hundred million dollars, whichever is first. | 664 |
(2) Each participating electric cooperative and participating | 684 |
municipal electric utility shall remit to the director on a | 685 |
quarterly basis the revenues described in division (B)(3) of this | 686 |
section. Such remittances shall occur within thirty days after the | 687 |
end of each calendar quarter. For the purpose of division (B)(3) | 688 |
of this section, the participation of an electric cooperative or | 689 |
municipal electric utility in the energy efficiency revolving loan | 690 |
program as it existed immediately prior to the effective date of | 691 |
the amendment of this section by Sub. H.B. 251 of the 126th | 692 |
general assembly, January 4, 2007, does not constitute a decision | 693 |
to participate in the advanced energy fund under this section as | 694 |
so amended. | 695 |
(D) Any moneys collected in rates for non-low-income customer | 701 |
energy efficiency programs, as of October 5, 1999, and not | 702 |
contributed to the energy efficiency revolving loan fund | 703 |
authorized under this section prior to the effective date of its | 704 |
amendment by Sub. H.B. 251 of the 126th general assembly, January | 705 |
4, 2007, shall be used to continue to fund cost-effective, | 706 |
residential energy efficiency programs, be contributed into the | 707 |
universal service fund as a supplement to that required under | 708 |
section 4928.53 of the Revised Code, or be returned to ratepayers | 709 |
in the form of a rate reduction at the option of the affected | 710 |
electric distribution utility. | 711 |
(5) Adopt rules prescribing the application procedures for | 754 |
financial assistance under the advanced energy program; the fees, | 755 |
charges, interest rates, payment schedules, local match | 756 |
requirements, and other terms and conditions of any grants, | 757 |
contracts, loans, loan participation agreements, linked deposits, | 758 |
and energy production incentives; criteria pertaining to the | 759 |
eligibility of participating lending institutions; and any other | 760 |
matters necessary for the implementation of the program; | 761 |
(E) Nothing in the amendments of sections 4928.61, 4928.62, | 777 |
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th | 778 |
general assembly shall affect any pending or effected assistance, | 779 |
pending or effected purchases or exchanges of property made, or | 780 |
pending or effected contracts or agreements entered into pursuant | 781 |
to division (A) or (B) of this section as the section existed | 782 |
prior to the effective date of those amendments, January 4, 2007, | 783 |
or shall affect the exemption provided under division (C) of this | 784 |
section as the section existed prior to that effective date. | 785 |
(B) Notwithstanding sections 123.01 and 127.16 of the Revised | 797 |
Code the director of transportation may lease or lease-purchase | 798 |
all or any part of a transportation facility to or from one or | 799 |
more persons, one or more governmental agencies, a transportation | 800 |
improvement district, or any combination thereof, and may grant | 801 |
leases, easements, or licenses for lands under the control of the | 802 |
department of transportation. The director may adopt rules | 803 |
necessary to give effect to this section. | 804 |
(C)(D) Any lease or lease-purchase agreement under which the | 809 |
department is the lessee shall be for a period not exceeding the | 810 |
then current two-year period for which appropriations have been | 811 |
made by the general assembly to the department, and such agreement | 812 |
may contain such other terms as the department and the other | 813 |
parties thereto agree, notwithstanding any other provision of law, | 814 |
including provisions that rental payments in amounts sufficient to | 815 |
pay bond service charges payable during the current two-year lease | 816 |
term shall be an absolute and unconditional obligation of the | 817 |
department independent of all other duties under the agreement | 818 |
without set-off or deduction or any other similar rights or | 819 |
defenses. Any such agreement may provide for renewal of the | 820 |
agreement at the end of each term for another term, not exceeding | 821 |
two years, provided that no renewal shall be effective until the | 822 |
effective date of an appropriation enacted by the general assembly | 823 |
from which the department may lawfully pay rentals under such | 824 |
agreement. Any such agreement may include, without limitation, any | 825 |
agreement by the department with respect to any costs of | 826 |
transportation facilities to be included prior to acquisition and | 827 |
construction of such transportation facilities. Any such agreement | 828 |
shall not constitute a debt or pledge of the faith and credit of | 829 |
the state, or of any political subdivision of the state, and the | 830 |
lessor shall have no right to have taxes or excises levied by the | 831 |
general assembly, or the taxing authority of any political | 832 |
subdivision of the state, for the payment of rentals thereunder. | 833 |
Any such agreement shall contain a statement to that effect. | 834 |
(F)(G) In accordance with section 5501.031 of the Revised | 884 |
Code, to further efforts to promote energy conservation and energy | 885 |
efficiency, the director may grant a lease, easement, or license | 886 |
in a transportation facility to a utility service provider that | 887 |
has received its certificate from the Ohio power siting board or | 888 |
appropriate local entity for construction, placement, or operation | 889 |
of an alternative energy generating facility service provider as | 890 |
defined in section 4928.64 of the Revised Code. An interest | 891 |
granted under this division is subject to all of the following | 892 |
conditions: | 893 |
(a) On or before December 31, 2013, the owner or a lessee | 950 |
pursuant to a sale and leaseback transaction of the project | 951 |
submits an application to the power siting board for a certificate | 952 |
under section 4906.20 of the Revised Code, or if that section does | 953 |
not apply, submits an application for any approval, consent, | 954 |
permit, or certificate or satisfies any condition required by a | 955 |
public agency or political subdivision of this state for the | 956 |
construction or initial operation of an energy project. | 957 |
(c) For a qualified energy project with a nameplate capacity | 965 |
of five megawatts or greater, a board of county commissioners of a | 966 |
county in which property of the project is located has adopted a | 967 |
resolution under division (E)(1)(b) or (c) of this section to | 968 |
approve the application submitted under division (E) of this | 969 |
section to exempt the property located in that county from | 970 |
taxation. A board's adoption of a resolution rejecting an | 971 |
application or its failure to adopt a resolution approving the | 972 |
application does not affect the tax-exempt status of the qualified | 973 |
energy project's property that is located in another county. | 974 |
(2) If tangible personal property of a qualified energy | 975 |
project using renewable energy resources was exempt from taxation | 976 |
under this section beginning in any of tax years 2011, 2012, 2013, | 977 |
or 2014, and the certification under division (E)(2) of this | 978 |
section has not been revoked, the tangible personal property of | 979 |
the qualified energy project is exempt from taxation for tax year | 980 |
2015 and all ensuing tax years if the property was placed into | 981 |
service before January 1, 2015, as certified in the construction | 982 |
progress report required under division (F)(2) of this section. | 983 |
Tangible personal property that has not been placed into service | 984 |
before that date is taxable property subject to taxation. An | 985 |
energy project for which certification has been revoked is | 986 |
ineligible for further exemption under this section. Revocation | 987 |
does not affect the tax-exempt status of the project's tangible | 988 |
personal property for the tax year in which revocation occurs or | 989 |
any prior tax year. | 990 |
(2) For such a qualified energy project with a nameplate | 999 |
capacity of five megawatts or greater, a board of county | 1000 |
commissioners of a county in which property of the qualified | 1001 |
energy project is located has adopted a resolution under division | 1002 |
(E)(1)(b) or (c) of this section to approve the application | 1003 |
submitted under division (E) of this section to exempt the | 1004 |
property located in that county from taxation. A board's adoption | 1005 |
of a resolution rejecting the application or its failure to adopt | 1006 |
a resolution approving the application does not affect the | 1007 |
tax-exempt status of the qualified energy project's property that | 1008 |
is located in another county. | 1009 |
(b) The director shall forward a copy of each application for | 1030 |
certification of an energy project with a nameplate capacity of | 1031 |
five megawatts or greater to the board of county commissioners of | 1032 |
each county in which the project is located and to each taxing | 1033 |
unit with territory located in each of the affected counties. Any | 1034 |
board that receives from the director a copy of an application | 1035 |
submitted under this division shall adopt a resolution approving | 1036 |
or rejecting the application unless it has adopted a resolution | 1037 |
under division (E)(1)(c) of this section. A resolution adopted | 1038 |
under division (E)(1)(b) or (c) of this section may require an | 1039 |
annual service payment to be made in addition to the service | 1040 |
payment required under division (G) of this section. The sum of | 1041 |
the service payment required in the resolution and the service | 1042 |
payment required under division (G) of this section shall not | 1043 |
exceed nine thousand dollars per megawatt of nameplate capacity | 1044 |
located in the county. The resolution shall specify the time and | 1045 |
manner in which the payments required by the resolution shall be | 1046 |
paid to the county treasurer. The county treasurer shall deposit | 1047 |
the payment to the credit of the county's general fund to be used | 1048 |
for any purpose for which money credited to that fund may be used. | 1049 |
(3) The director shall deny a certification application if | 1076 |
the director determines the person has failed to comply with any | 1077 |
requirement under this section. The director may revoke a | 1078 |
certification if the director determines the person, or subsequent | 1079 |
owner or lessee pursuant to a sale and leaseback transaction of | 1080 |
the qualified energy project, has failed to comply with any | 1081 |
requirement under this section. Upon certification or revocation, | 1082 |
the director shall notify the person, owner, or lessee, the tax | 1083 |
commissioner, and the county auditor of a county in which the | 1084 |
project is located of the certification or revocation. Notice | 1085 |
shall be provided in a manner convenient to the director. | 1086 |
(2) File with the director of development a certified | 1091 |
construction progress report before the first day of March of each | 1092 |
year during the energy facility's construction or installation | 1093 |
indicating the percentage of the project completed, and the | 1094 |
project's nameplate capacity, as of the preceding thirty-first day | 1095 |
of December. Unless otherwise instructed by the director of | 1096 |
development, the owner or lessee of an energy project shall file a | 1097 |
report with the director on or before the first day of March each | 1098 |
year after completion of the energy facility's construction or | 1099 |
installation indicating the project's nameplate capacity as of the | 1100 |
preceding thirty-first day of December. Not later than sixty days | 1101 |
after June 17, 2010, the owner or lessee of an energy project, the | 1102 |
construction of which was completed before June 17, 2010, shall | 1103 |
file a certificate indicating the project's nameplate capacity. | 1104 |
(4) For energy projects with a nameplate capacity of five | 1110 |
megawatts or greater, repair all roads, bridges, and culverts | 1111 |
affected by construction as reasonably required to restore them to | 1112 |
their preconstruction condition, as determined by the county | 1113 |
engineer in consultation with the local jurisdiction responsible | 1114 |
for the roads, bridges, and culverts. In the event that the county | 1115 |
engineer deems any road, bridge, or culvert to be inadequate to | 1116 |
support the construction or decommissioning of the energy | 1117 |
facility, the road, bridge, or culvert shall be rebuilt or | 1118 |
reinforced to the specifications established by the county | 1119 |
engineer prior to the construction or decommissioning of the | 1120 |
facility. The owner or lessee of the facility shall post a bond in | 1121 |
an amount established by the county engineer and to be held by the | 1122 |
board of county commissioners to ensure funding for repairs of | 1123 |
roads, bridges, and culverts affected during the construction. The | 1124 |
bond shall be released by the board not later than one year after | 1125 |
the date the repairs are completed. The energy facility owner or | 1126 |
lessee pursuant to a sale and leaseback transaction shall post a | 1127 |
bond, as may be required by the Ohio power siting board in the | 1128 |
certificate authorizing commencement of construction issued | 1129 |
pursuant to section 4906.10 of the Revised Code, to ensure funding | 1130 |
for repairs to roads, bridges, and culverts resulting from | 1131 |
decommissioning of the facility. The energy facility owner or | 1132 |
lessee and the county engineer may enter into an agreement | 1133 |
regarding specific transportation plans, reinforcements, | 1134 |
modifications, use and repair of roads, financial security to be | 1135 |
provided, and any other relevant issue. | 1136 |
(6) Maintain a ratio of Ohio-domiciled full-time equivalent | 1143 |
employees employed in the construction or installation of the | 1144 |
energy project to total full-time equivalent employees employed in | 1145 |
the construction or installation of the energy project of not less | 1146 |
than eighty per cent in the case of a solar energy project, and | 1147 |
not less than fifty per cent in the case of any other energy | 1148 |
project. In the case of an energy project for which certification | 1149 |
from the power siting board is required under section 4906.20 of | 1150 |
the Revised Code, the number of full-time equivalent employees | 1151 |
employed in the construction or installation of the energy project | 1152 |
equals the number actually employed or the number projected to be | 1153 |
employed in the certificate application, if such projection is | 1154 |
required under regulations adopted pursuant to section 4906.03 of | 1155 |
the Revised Code, whichever is greater. For all other energy | 1156 |
projects, the number of full-time equivalent employees employed in | 1157 |
the construction or installation of the energy project equals the | 1158 |
number actually employed or the number projected to be employed by | 1159 |
the director of development, whichever is greater. To estimate the | 1160 |
number of employees to be employed in the construction or | 1161 |
installation of an energy project, the director shall use a | 1162 |
generally accepted job-estimating model in use for renewable | 1163 |
energy projects, including but not limited to the job and economic | 1164 |
development impact model. The director may adjust an estimate | 1165 |
produced by a model to account for variables not accounted for by | 1166 |
the model. | 1167 |
(7) For energy projects with a nameplate capacity in excess | 1168 |
of two megawatts, establish a relationship with a member of the | 1169 |
university system of Ohio as defined in section 3345.011 of the | 1170 |
Revised Code or with a person offering an apprenticeship program | 1171 |
registered with the employment and training administration within | 1172 |
the United States department of labor or with the apprenticeship | 1173 |
council created by section 4139.02 of the Revised Code, to educate | 1174 |
and train individuals for careers in the wind or solar energy | 1175 |
industry. The relationship may include endowments, cooperative | 1176 |
programs, internships, apprenticeships, research and development | 1177 |
projects, and curriculum development. | 1178 |
(8) Offer to sell power or renewable energy credits from the | 1179 |
energy project to electric distribution utilities or electric | 1180 |
service companies subject to renewable energy resource | 1181 |
requirements under section 4928.64 of the Revised Code that have | 1182 |
issued requests for proposal for such power or renewable energy | 1183 |
credits. If no electric distribution utility or electric service | 1184 |
company issues a request for proposal on or before December 31, | 1185 |
2010, or accepts an offer for power or renewable energy credits | 1186 |
within forty-five days after the offer is submitted, power or | 1187 |
renewable energy credits from the energy project may be sold to | 1188 |
other persons. Division (F)(8) of this section does not apply if: | 1189 |
(G) The owner or a lessee pursuant to a sale and leaseback | 1204 |
transaction of a qualified energy project shall make annual | 1205 |
service payments in lieu of taxes to the county treasurer on or | 1206 |
before the final dates for payments of taxes on public utility | 1207 |
personal property on the real and public utility personal property | 1208 |
tax list for each tax year for which property of the energy | 1209 |
project is exempt from taxation under this section. The county | 1210 |
treasurer shall allocate the payment on the basis of the project's | 1211 |
physical location. Upon receipt of a payment, or if timely payment | 1212 |
has not been received, the county treasurer shall certify such | 1213 |
receipt or non-receipt to the director of development and tax | 1214 |
commissioner in a form determined by the director and | 1215 |
commissioner, respectively. Each payment shall be in the following | 1216 |
amount: | 1217 |
(1) In the case of a solar energy project, seven thousand | 1218 |
dollars per megawatt of nameplate capacity located in the county | 1219 |
as of December 31, 2010, for tax year 2011, as of December 31, | 1220 |
2011, for tax year 2012, as of December 31, 2012, for tax year | 1221 |
2013, as of December 31, 2013, for tax year 2014, and as of | 1222 |
December 31, 2014, for tax year 2015 and each tax year thereafter; | 1223 |