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H. B. No. 312 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Cosponsor:
Representative Smith
A BILL
To amend sections 4905.31 and 4928.34 of the Revised
Code to permit a public utility electric light
company to recover costs of an economic and job
retention program from all public utility electric
light customers in Ohio.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. To amend sections 4905.31 and 4928.34 of the
Revised Code to read as follows:
Sec. 4905.31. (A) Chapters 4901., 4903., 4905., 4907., 4909.,
4921., 4923., 4927., 4928., and 4929. of the Revised Code do not
prohibit a public utility from filing a schedule or establishing
or entering into any reasonable arrangement with another public
utility or with one or more of its customers, consumers, or
employees, and do not prohibit a mercantile customer of an
electric distribution utility as those terms are defined in
section 4928.01 of the Revised Code or a group of those customers
from establishing a reasonable arrangement with that utility or
another public utility electric light company, providing for any
of the following:
(A)(1) The division or distribution of its surplus profits;
(B)(2) A sliding scale of charges, including variations in
rates based upon stipulated variations in cost as provided in the
schedule or arrangement.
(C)(3) A minimum charge for service to be rendered unless
such minimum charge is made or prohibited by the terms of the
franchise, grant, or ordinance under which such public utility is
operated;
(D)(4) A classification of service based upon the quantity
used, the time when used, the purpose for which used, the duration
of use, and any other reasonable consideration;
(E)(5)(a) Any other financial device that may be practicable
or advantageous to the parties interested. In the case of a
schedule or arrangement concerning a public utility electric light
company, such other financial device may include a any of the
following:
(i) A device to recover costs incurred in conjunction with
any economic development and job retention program of the utility
within its certified territory from all public utility electric
light company customers in this state, including recovery of
revenue foregone as a result of any such program; any
(ii) Any development and implementation of peak demand
reduction and energy efficiency programs under section 4928.66 of
the Revised Code; any
(iii) Any acquisition and deployment of advanced metering,
including the costs of any meters prematurely retired as a result
of the advanced metering implementation; and compliance
(iv) Compliance with any government mandate.
(b) After January 1, 2018, the public utilities commission
shall not approve, with respect to a public utility electric light
company, any application for, or modification or extension of, any
schedule or arrangement filed pursuant to division (A)(5)(a)(i) of
this section. Such a schedule or arrangement may continue in
effect after that date for any period previously approved by the
commission.
(B) No such schedule or arrangement is lawful unless it is
filed with and approved by the commission pursuant to an
application that is submitted by the public utility or the
mercantile customer or group of mercantile customers of an
electric distribution utility and is posted on the commission's
docketing information system and is accessible through the
internet.
(C) Every such public utility is required to conform its
schedules of rates, tolls, and charges to such arrangement,
sliding scale, classification, or other device, and where variable
rates are provided for in any such schedule or arrangement, the
cost data or factors upon which such rates are based and fixed
shall be filed with the commission in such form and at such times
as the commission directs.
(D) Every such schedule or reasonable arrangement shall be
under the supervision and regulation of the commission, and is
subject to change, alteration, or modification by the commission.
Sec. 4928.34. (A) The public utilities commission shall not
approve or prescribe a transition plan under division (A) or (B)
of section 4928.33 of the Revised Code unless the commission first
makes all of the following determinations:
(1) The unbundled components for the electric transmission
component of retail electric service, as specified in the
utility's rate unbundling plan required by division (A)(1) of
section 4928.31 of the Revised Code, equal the tariff rates
determined by the federal energy regulatory commission that are in
effect on the date of the approval of the transition plan under
sections 4928.31 to 4928.40 of the Revised Code, as each such rate
is determined applicable to each particular customer class and
rate schedule by the commission. The unbundled transmission
component shall include a sliding scale of charges under division
(B)(A)(2) of section 4905.31 of the Revised Code to ensure that
refunds determined or approved by the federal energy regulatory
commission are flowed through to retail electric customers.
(2) The unbundled components for retail electric distribution
service in the rate unbundling plan equal the difference between
the costs attributable to the utility's transmission and
distribution rates and charges under its schedule of rates and
charges in effect on the effective date of this section, based
upon the record in the most recent rate proceeding of the utility
for which the utility's schedule was established, and the tariff
rates for electric transmission service determined by the federal
energy regulatory commission as described in division (A)(1) of
this section.
(3) All other unbundled components required by the commission
in the rate unbundling plan equal the costs attributable to the
particular service as reflected in the utility's schedule of rates
and charges in effect on the effective date of this section.
(4) The unbundled components for retail electric generation
service in the rate unbundling plan equal the residual amount
remaining after the determination of the transmission,
distribution, and other unbundled components, and after any
adjustments necessary to reflect the effects of the amendment of
section 5727.111 of the Revised Code by Sub. S.B. No. 3 of the
123rd general assembly.
(5) All unbundled components in the rate unbundling plan have
been adjusted to reflect any base rate reductions on file with the
commission and as scheduled to be in effect by December 31, 2005,
under rate settlements in effect on the effective date of this
section. However, all earnings obligations, restrictions, or caps
imposed on an electric utility in a commission order prior to the
effective date of this section are void.
(6) Subject to division (A)(5) of this section, the total of
all unbundled components in the rate unbundling plan are capped
and shall equal during the market development period, except as
specifically provided in this chapter, the total of all rates and
charges in effect under the applicable bundled schedule of the
electric utility pursuant to section 4905.30 of the Revised Code
in effect on the day before the effective date of this section,
including the transition charge determined under section 4928.40
of the Revised Code, adjusted for any changes in the taxation of
electric utilities and retail electric service under Sub. S.B. No.
3 of the 123rd General Assembly, the universal service rider
authorized by section 4928.51 of the Revised Code, and the
temporary rider authorized by section 4928.61 of the Revised Code.
For the purpose of this division, the rate cap applicable to a
customer receiving electric service pursuant to an arrangement
approved by the commission under section 4905.31 of the Revised
Code is, for the term of the arrangement, the total of all rates
and charges in effect under the arrangement. For any rate schedule
filed pursuant to section 4905.30 of the Revised Code or any
arrangement subject to approval pursuant to section 4905.31 of the
Revised Code, the initial tax-related adjustment to the rate cap
required by this division shall be equal to the rate of taxation
specified in section 5727.81 of the Revised Code and applicable to
the schedule or arrangement. To the extent such total annual
amount of the tax-related adjustment is greater than or less than
the comparable amount of the total annual tax reduction
experienced by the electric utility as a result of the provisions
of Sub. S.B. No. 3 of the 123rd general assembly, such difference
shall be addressed by the commission through accounting
procedures, refunds, or an annual surcharge or credit to
customers, or through other appropriate means, to avoid placing
the financial responsibility for the difference upon the electric
utility or its shareholders. Any adjustments in the rate of
taxation specified in section 5727.81 of the Revised Code section
shall not occur without a corresponding adjustment to the rate cap
for each such rate schedule or arrangement. The department of
taxation shall advise the commission and self-assessors under
section 5727.81 of the Revised Code prior to the effective date of
any change in the rate of taxation specified under that section,
and the commission shall modify the rate cap to reflect that
adjustment so that the rate cap adjustment is effective as of the
effective date of the change in the rate of taxation. This
division shall be applied, to the extent possible, to eliminate
any increase in the price of electricity for customers that
otherwise may occur as a result of establishing the taxes
contemplated in section 5727.81 of the Revised Code.
(7) The rate unbundling plan complies with any rules adopted
by the commission under division (A) of section 4928.06 of the
Revised Code.
(8) The corporate separation plan required by division (A)(2)
of section 4928.31 of the Revised Code complies with section
4928.17 of the Revised Code and any rules adopted by the
commission under division (A) of section 4928.06 of the Revised
Code.
(9) Any plan or plans the commission requires to address
operational support systems and any other technical implementation
issues pertaining to competitive retail electric service comply
with any rules adopted by the commission under division (A) of
section 4928.06 of the Revised Code.
(10) The employee assistance plan required by division (A)(4)
of section 4928.31 of the Revised Code sufficiently provides
severance, retraining, early retirement, retention, outplacement,
and other assistance for the utility's employees whose employment
is affected by electric industry restructuring under this chapter.
(11) The consumer education plan required under division
(A)(5) of section 4928.31 of the Revised Code complies with former
section 4928.42 of the Revised Code and any rules adopted by the
commission under division (A) of section 4928.06 of the Revised
Code.
(12) The transition revenues for which an electric utility is
authorized a revenue opportunity under sections 4928.31 to 4928.40
of the Revised Code are the allowable transition costs of the
utility as such costs are determined by the commission pursuant to
section 4928.39 of the Revised Code, and the transition charges
for the customer classes and rate schedules of the utility are the
charges determined pursuant to section 4928.40 of the Revised
Code.
(13) Any independent transmission plan included in the
transition plan filed under section 4928.31 of the Revised Code
reasonably complies with section 4928.12 of the Revised Code and
any rules adopted by the commission under division (A) of section
4928.06 of the Revised Code, unless the commission, for good cause
shown, authorizes the utility to defer compliance until an order
is issued under division (G) of section 4928.35 of the Revised
Code.
(14) The utility is in compliance with sections 4928.01 to
4928.11 of the Revised Code and any rules or orders of the
commission adopted or issued under those sections.
(15) All unbundled components in the rate unbundling plan
have been adjusted to reflect the elimination of the tax on gross
receipts imposed by section 5727.30 of the Revised Code.
In addition, a transition plan approved by the commission
under section 4928.33 of the Revised Code but not containing an
approved independent transmission plan shall contain the express
conditions that the utility will comply with an order issued under
division (G) of section 4928.35 of the Revised Code.
(B) Subject to division (E) of section 4928.17 of the Revised
Code, if the commission finds that any part of the transition plan
would constitute an abandonment under sections 4905.20 and 4905.21
of the Revised Code, the commission shall not approve that part of
the transition plan unless it makes the finding required for
approval of an abandonment application under section 4905.21 of
the Revised Code. Sections 4905.20 and 4905.21 of the Revised Code
otherwise shall not apply to a transition plan under sections
4928.31 to 4928.40 of the Revised Code.
Section 2. That existing sections 4905.31 and 4928.34 of the
Revised Code are hereby repealed.
Section 3. Any financial device to recover costs in
conjunction with any economic development and job retention
program established and approved under section 4905.31 of the
Revised Code, as that section existed prior to the effective date
of this act, shall continue in effect in accordance with the terms
of that device, unless altered, changed, or modified by the Public
Utilities Commission.
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