Bill Text: OH HB95 | 2011-2012 | 129th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: To permit certain rate-calculation adjustments for natural gas companies, alter public notice requirements for rate cases, and, for natural gas companies, to make other regulatory changes concerning audits, alternative rate plans, and forecast reports, and allowing applications for natural gas company capital expenditure programs.

Spectrum: Partisan Bill (Republican 21-0)

Status: (Passed) 2011-09-09 - Effective Date [HB95 Detail]

Download: Ohio-2011-HB95-Engrossed.html

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As Passed by the House

129th General Assembly Regular Session 2011-2012

Sub. H. B. No. 95

Representative Stautberg 

Cosponsors: Representatives Blessing, Uecker, Mecklenborg, Balderson, Hayes, Goodwin, Martin, Beck, Coley, Roegner, Buchy, Gardner, Gonzales, Grossman, Hackett, Hagan, C., Newbold, Thompson, Wachtmann Speaker Batchelder 

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A BILL

To amend sections 4903.083, 4905.302, 4909.05,

1

4909.06, 4909.07, 4909.08, 4909.15, 4909.156,

2

4909.17, 4909.18, 4909.19, 4928.18, 4929.05,

3

4929.051, 4929.11, and 4935.04 and to enact

4

sections 4909.191 and 4929.111 of the Revised Code

5

to permit certain rate-calculation adjustments for

6

natural gas companies, alter public notice

7

requirements for rate cases, and, for natural gas

8

companies, to make other regulatory changes

9

concerning audits, alternative rate plans, and

10

forecast reports, and allowing applications for

11

natural gas company capital expenditure programs.

12

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

Section 1.  That sections 4903.083, 4905.302, 4909.05,	13
4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 4909.17, 4909.18,	14
4909.19, 4928.18, 4929.05, 4929.051, 4929.11, and 4935.04 be	15
amended and sections 4909.191 and 4929.111 of the Revised Code be	16
enacted to read as follows:	17

Sec. 4903.083. (A) For all cases involving applications for	18
an increase in rates pursuant to section 4909.18 of the Revised	19
Code the public utilities commission shall hold public hearings in	20
each municipal corporation in the affected service area having a	21
population in excess of one hundred thousand persons, provided	22
that, at least one public hearing shall be held in each affected	23
service area. At least one such hearing shall be held after 5:00	24
p.m. Notice of such hearing shall be published by the public	25
utilities commission once each week for two consecutive weeks in a	26
newspaper of general circulation in the service area. Said notice	27
shall state prominently the total amount of the revenue increase	28
requested in the application for the increase and shall list a	29
brief summary of the then known major issues in contention as set	30
forth in the respective parties' and intervenor's objections to	31
the staff report filed pursuant to section 4909.19 of the Revised	32
Code. The public utilities. The first publication of the notice	33
shall be made in its entirety and may be made in a preprinted	34
insert in the newspaper. The second publication may be abbreviated	35
if all of the following apply:	36

(1) The abbreviated notice is at least half the size of the	37
notice in the first publication.	38

(2) At the same time the abbreviated notice is published, the	39
notice in the first publication is posted in its entirety on the	40
newspaper's web site, if the newspaper has a web site, and the	41
commission's web site.	42

(3) The abbreviated notice contains a statement of the web	43
site posting or postings, as applicable, and instructions for	44
accessing the posting or postings.	45

(B) The commission shall determine a uniform format for the	46
content of all notices required under this section, and shall	47
consider costs and technological efficiencies in making that	48
determination. Defects in the contentpublication of said notice	49
shall not affect the legality or sufficiency of notices published	50
under this section provided that the public utilities commission	51
meets the substantial compliance provision ofhas substantially	52
complied with this section, as described in section 4905.09 of the	53
Revised Code.	54

Sec. 4905.302.  (A)(1) For the purpose of this section, the	55
term "purchased gas adjustment clause" means:	56

(a) A provision in a schedule of a gas company or natural gas	57
company that requires or allows the company to, without adherence	58
to section 4909.18 or 4909.19 of the Revised Code, adjust the	59
rates that it charges to its customers in accordance with any	60
fluctuation in the cost to the company of obtaining the gas that	61
it sells, that has occurred since the time any order has been	62
issued by the public utilities commission establishing rates for	63
the company pertaining to those customers;	64

(b) A provision in an ordinance adopted pursuant to section	65
743.26 or 4909.34 of the Revised Code or Section 4 of Article	66
XVIII, Ohio Constitution, with respect to which a gas company or	67
natural gas company is required or allowed to adjust the rates it	68
charges under such an ordinance in accordance with any fluctuation	69
in the cost to the company of obtaining the gas that it sells,	70
that has occurred since the time of the adoption of the ordinance.	71

(2) For the purpose of this section, the term "special	72
purchase" means any purchase of interstate natural gas, any	73
purchase of liquifiedliquefied natural gas, and any purchase of	74
synthetic natural gas from any source developed after the	75
effective date of this section, April 27, 1976, provided that this	76
purchase be of less than one hundred twenty days duration and the	77
price for this purchase is not regulated by the federal power	78
commission. For the purpose of this division, the expansion or	79
enlargement of a synthetic natural gas plant existing at such date	80
shall be considered a source so developed.	81

(3) For the purpose of this section, the term "residential	82
customer" means urban, suburban, and rural patrons of gas	83
companies and natural gas companies insofar as their needs for gas	84
are limited to their residence. Such term includes those patrons	85
whose rates have been set under an ordinance adopted pursuant to	86
sections 743.26 and 4909.34 of the Revised Code or Section 4 of	87
Article XVIII, Ohio Constitution.	88

(B) A purchased gas adjustment clause may not allow, and no	89
such clause may be interpreted to allow, a gas company or natural	90
gas company that has obtained an order from the public utilities	91
commission permitting the company to curtail the service of any	92
customer or class of customers other than residential customers,	93
such order being based on the company's inability to secure a	94
sufficient quantity of natural gas, to distribute the cost of any	95
special purchase made subsequent to the effective date of such	96
order, to the extent that such purchase decreases the level of	97
curtailment of any such customer or class of customers, to any	98
class of customers of the company that was not curtailed, to any	99
class of residential customers of the company, or to any class of	100
customers of the company whose level of curtailment was not	101
decreased and whose consumption increased as a result of, or in	102
connection with, the special purchase.	103

(C)(1) The commission shall promulgate a purchased gas	104
adjustment rule, consistent with this section, that establishes a	105
uniform purchased gas adjustment clause to be included in the	106
schedule of gas companies and natural gas companies subject to the	107
jurisdiction of the public utilities commission and that	108
establishes investigative procedures and proceedings including,	109
but not limited to, periodic reports, audits, and hearings.	110

(2) The commission shall not require that a management or	111
performance audit pertaining to the purchased gas adjustment	112
clause of a gas or natural gas company, or a hearing related to	113
such an audit, be conducted more frequently than once every three	114
years. Any such management or performance audit and any such	115
hearing shall be strictly limited to the gas or natural gas	116
company's gas or natural gas production and purchasing policies.	117
No such management or performance audit and no such hearing shall	118
extend in scope beyond matters that are necessary to determine the	119
following:	120

(a) That the gas or natural gas company's purchasing policies	121
are designed to meet the company's service requirements;	122

(b) That the gas or natural gas company's procurement	123
planning is sufficient to reasonably ensure reliable service at	124
optimal prices and consistent with the company's long-term	125
strategic supply plan;	126

(c) That the gas or natural gas company has reviewed existing	127
and potential supply sources;	128

(3) Unless otherwise ordered by the commission for good cause	129
shown and except as provided in division (D) of this section:	130

(a) The commission's staff shall conduct any audit or other	131
investigation of a natural gas company having fifteen thousand or	132
fewer customers in this state that may be required under the	133
purchased gas adjustment rule.	134

(b) Except as provided in section 4905.10 of the Revised	135
Code, the commission shall not impose upon such company any fee,	136
expense, or cost of such audit or other investigation or any	137
related hearing under this section.	138

(3)(4) Unless otherwise ordered by the commission for good	139
cause shown either by an interested party or by the commission on	140
its own motion, no natural gas company having fifteen thousand or	141
fewer customers in this state shall be subject under the purchased	142
gas adjustment rule to any audit or other investigation or any	143
related hearing, other than a financial audit or, as necessary,	144
any hearing related to a financial audit.	145

(4)(5) In issuing an order under division (C)(2)(3) or (3)(4)	146
of this section, the commission shall file a written opinion	147
setting forth the reasons showing good cause under such division	148
and the specific matters to be audited, investigated, or subjected	149
to hearing. Nothing in division (C)(2)(3) or (3)(4) of this	150
section relieves such a natural gas company from the duty to file	151
such information as the commission may require under the rule for	152
the purpose of showing that a company has charged its customers	153
accurately for the cost of gas obtained.	154

(D) A natural gas company that does not sell natural gas	155
under a purchased gas adjustment clause shall not be subject to	156
this section.	157

(E) Nothing in this section or any other provision of law	158
shall be construed to mean that the commission, in the event of	159
any cost distribution allowed under this section, may issue an	160
order pursuant to which the prudent and reasonable cost of gas to	161
a gas company or natural gas company of any special purchase may	162
not be recovered by the company. For the purpose of this division,	163
such cost of gas neither includes any applicable franchise taxes	164
nor the ordinary losses of gas experienced by the company in the	165
process of transmission and distribution.	166

(E)(F) The commission shall not at any time prevent or	167
restrain such costs as are distributable under this section from	168
being so distributed, unless the commission has reason to believe	169
that an arithmetic or accounting inaccuracy exists with respect to	170
such a distribution or that the company has not accurately	171
represented the amount of the cost of a special purchase, or has	172
followed imprudent or unreasonable procurement policies and	173
practices, has made errors in the estimation of cubic feet sold,	174
or has employed such other practices, policies, or factors as the	175
commission considers inappropriate.	176

(F)(G) The cost of natural gas under this section shall not	177
include any cost recovered by a natural gas company pursuant to	178
section 4929.25 of the Revised Code.	179

Sec. 4909.05.  As used in this section:

180

(A) A "lease purchase agreement" is an agreement pursuant to	181
which a public utility leasing property is required to make rental	182
payments for the term of the agreement and either the utility is	183
granted the right to purchase the property upon the completion of	184
the term of the agreement and upon the payment of an additional	185
fixed sum of money or title to the property vests in the utility	186
upon the making of the final rental payment.	187

(B) A "leaseback" is the sale or transfer of property by a	188
public utility to another person contemporaneously followed by the	189
leasing of the property to the public utility on a long-term	190
basis.	191

(C) The public utilities commission shall prescribe the form	192
and details of the valuation report of the property of each public	193
utility or railroad in the state. Such report shall include all	194
the kinds and classes of property, with the value of each, owned	195
or, held, or, with respect to a natural gas company, projected to	196
be owned or held as of the date certain, by each public utility or	197
railroad used and useful, or, with respect to a natural gas	198
company, projected to be used and useful as of the date certain,	199
for the service and convenience of the public. Such report shall	200
contain the following facts in detail:	201

(C)(1) The original cost of each parcel of land owned in fee	202
and in use at the date certain, or, with respect to a natural gas	203
company, projected to be owned in fee and in use as of the date	204
certain, determined by the commission; and also a statement of the	205
conditions of acquisition, whether by direct purchase, by	206
donation, by exercise of the power of eminent domain, or	207
otherwise;	208

(D)(2) The actual acquisition cost, not including periodic	209
rental fees, of rights-of-way, trailways, or other land rights	210
held, or, with respect to a natural gas company, projected to be	211
held as of the date certain, by virtue of easements, leases, or	212
other forms of grants of rights as to usage;	213

(E)(3) The original cost of all other kinds and classes of	214
property used and useful, or, with respect to a natural gas	215
company, projected to be used and useful as of the date certain,	216
in the rendition of service to the public. Such original costs of	217
property, other than land owned in fee, shall be the cost, as	218
determined to be reasonable by the commission, to the person that	219
first dedicated or dedicates the property to the public use and	220
shall be set forth in property accounts and subaccounts as	221
prescribed by the commission. To the extent that the costs of	222
property comprising a coal research and development facility, as	223
defined in section 1555.01 of the Revised Code, or a coal	224
development project, as defined in section 1551.30 of the Revised	225
Code, have been allowed for recovery as Ohio coal research and	226
development costs under section 4905.304 of the Revised Code, none	227
of those costs shall be included as a cost of property under this	228
division.	229

(F)(4) The cost of property constituting all or part of a	230
project leased to or used by the utility, or, with respect to a	231
natural gas company, projected to be leased to or used by the	232
utility as of the date certain, under Chapter 165., 3706., 6121.,	233
or 6123. of the Revised Code and not included under division	234
(E)(C)(3) of this section exclusive of any interest directly or	235
indirectly paid by the utility with respect thereto whether or not	236
capitalized;	237

(G)(5) In the discretion of the commission, the cost to a	238
utility, in an amount determined to be reasonable by the	239
commission, of property constituting all or part of a project	240
leased to the utility, or, with respect to a natural gas company,	241
projected to be leased to the utility as of the date certain,	242
under a lease purchase agreement or a leaseback and not included	243
under division (E)(C)(3) of this section exclusive of any interest	244
directly or indirectly paid by the utility with respect thereto	245
whether or not capitalized;	246

(H)(6) The proper and adequate reserve for depreciation, as	247
determined to be reasonable by the commission;	248

(I)(7) Any sums of money or property that the company may	249
have received, or, with respect to a natural gas company, is	250
projected to receive as of the date certain, as total or partial	251
defrayal of the cost of its property;	252

(J)(8) The valuation of the property of the company, which	253
shall be the sum of the amounts contained in the report pursuant	254
to divisions (C), (D), (E), (F), and (G)(1) to (5) of this	255
section, less the sum of the amounts contained in the report	256
pursuant to divisions (H)(C)(6) and (I)(7) of this section.	257

The report shall show separately the property used and useful	258
to such public utility or railroad in the furnishing of the	259
service to the public, and the property held by such public	260
utility or railroad for other purposes, and the property projected	261
to be used and useful to or held by a natural gas company as of	262
the date certain, and such other items as the commission considers	263
proper. The commission may require an additional report showing	264
the extent to which the property is used and useful, or, with	265
respect to a natural gas company, projected to be used and useful	266
as of the date certain. Such reports shall be filed in the office	267
of the commission for the information of the governor and the	268
general assembly.	269

Sec. 4909.06.  The investigation and report required by	270
section 4909.05 of the Revised Code shall show, when the public	271
utilities commission deems it necessary, the amounts, dates, and	272
rates of interest of all bonds outstanding against each public	273
utility or railroad, the property upon which such bonds are a	274
lien, the amounts paid for them, and, the original capital stock	275
and the moneys received by any such public utility or railroad by	276
reason of any issue of stock, bonds, or other securities. Such	277
report shall also show the net and gross receipts of such public	278
utility or railroad and the method by which moneys were expended	279
or paid out and the purpose of such payments. The commission may	280
prescribe the procedure to be followed in making the investigation	281
and valuation, the form in which the results of the ascertainment	282
of the value of each public utility or railroad shall be	283
submitted, and the classifications of the elements that constitute	284
the ascertained value. Such investigation shall also show the	285
value of the property of every public utility or railroad as a	286
whole, and if such property is in more than one county, the value	287
of its property in each of such counties.	288

"Valuation" and "value," as used in this section, may	289
include, with respect to a natural gas company, projected	290
valuation and value as of the date certain, if applicable because	291
of a future date certain under section 4909.15 of the Revised	292
Code.	293

Sec. 4909.07.  The public utilities commission, during the	294
making of the valuation provided for in sections 4909.04 to	295
4909.13, inclusive, of the Revised Code, and after its completion,	296
shall in like manner keep itself informed through its engineers,	297
experts, and other assistants of all extensions, improvements, or	298
other changes in the condition and value of the property of all	299
public utilities or railroads and shall ascertain the value of	300
such extensions, improvements, and changes. The commission shall,	301
as is required for the proper regulation of such public utilities	302
or railroads, revise and correct its valuations of property,	303
showing such revisions and corrections as a whole and as to each	304
county. Such revisions and corrections shall be filed in the same	305
manner as original reports.	306

"Valuation" and "value," as used in this section, may	307
include, with respect to a natural gas company, projected	308
valuation and value as of the date certain, if applicable because	309
of a future date certain under section 4909.15 of the Revised	310
Code.	311

Sec. 4909.08.  When the public utilities commission has	312
completed the valuation of the property of any public utility or	313
railroad and before such valuation becomes final, it shall give	314
notice by registered letter to such public utility or railroad,	315
and if a substantial portion of said public utility or railroad is	316
situated in a municipal corporation, then to the mayor of such	317
municipal corporation, stating the valuations placed upon the	318
several kinds and classes of property of such public utility or	319
railroad and upon the property as a whole and give such further	320
notice by publication or otherwise as it shall deem necessary to	321
appraiseapprise the public of such valuation. If, within thirty	322
days after such notification, no protest has been filed with the	323
commission, such valuation becomes final. If notice of protest has	324
been filed by any public utility or railroad, the commission shall	325
fix a time for hearing such protest and shall consider at such	326
hearing any matter material thereto presented by such public	327
utility, railroad, or municipal corporation, in support of its	328
protest or by any representative of the public against such	329
protest. If, after the hearing of any protest of any valuation so	330
fixed, the commission is of the opinion that its inventory is	331
incomplete or inaccurate or that its valuation is incorrect, it	332
shall make such changes as are necessary and shall issue an order	333
making such corrected valuations final. A final valuation by the	334
commission and all classifications made for the ascertainment of	335
such valuations shall be public and are prima-facie evidence	336
relative to the value of the property.	337

"Valuation" and "value," as used in this section, may	338
include, with respect to a natural gas company, projected	339
valuation and value as of the date certain, if applicable because	340
of a future date certain under section 4909.15 of the Revised	341
Code.	342

Sec. 4909.15.  (A) The public utilities commission, when	343
fixing and determining just and reasonable rates, fares, tolls,	344
rentals, and charges, shall determine:	345

(1) The valuation as of the date certain of the property of	346
the public utility used and useful or, with respect to a natural	347
gas company, projected to be used and useful as of the date	348
certain, in rendering the public utility service for which rates	349
are to be fixed and determined. The valuation so determined shall	350
be the total value as set forth in division (J)(C)(8) of section	351
4909.05 of the Revised Code, and a reasonable allowance for	352
materials and supplies and cash working capital, as determined by	353
the commission.	354

The commission, in its discretion, may include in the	355
valuation a reasonable allowance for construction work in progress	356
but, in no event, may such an allowance be made by the commission	357
until it has determined that the particular construction project	358
is at least seventy-five per cent complete.	359

In determining the percentage completion of a particular	360
construction project, the commission shall consider, among other	361
relevant criteria, the per cent of time elapsed in construction;	362
the per cent of construction funds, excluding allowance for funds	363
used during construction, expended, or obligated to such	364
construction funds budgeted where all such funds are adjusted to	365
reflect current purchasing power; and any physical inspection	366
performed by or on behalf of any party, including the commission's	367
staff.	368

A reasonable allowance for construction work in progress	369
shall not exceed ten per cent of the total valuation as stated in	370
this division, not including such allowance for construction work	371
in progress.	372

Where the commission permits an allowance for construction	373
work in progress, the dollar value of the project or portion	374
thereof included in the valuation as construction work in progress	375
shall not be included in the valuation as plant in service until	376
such time as the total revenue effect of the construction work in	377
progress allowance is offset by the total revenue effect of the	378
plant in service exclusion. Carrying charges calculated in a	379
manner similar to allowance for funds used during construction	380
shall accrue on that portion of the project in service but not	381
reflected in rates as plant in service, and such accrued carrying	382
charges shall be included in the valuation of the property at the	383
conclusion of the offset period for purposes of division (J)(C)(8)	384
of section 4909.05 of the Revised Code.	385

From and after April 10, 1985, no allowance for construction	386
work in progress as it relates to a particular construction	387
project shall be reflected in rates for a period exceeding	388
forty-eight consecutive months commencing on the date the initial	389
rates reflecting such allowance become effective, except as	390
otherwise provided in this division.	391

The applicable maximum period in rates for an allowance for	392
construction work in progress as it relates to a particular	393
construction project shall be tolled if, and to the extent, a	394
delay in the in-service date of the project is caused by the	395
action or inaction of any federal, state, county, or municipal	396
agency having jurisdiction, where such action or inaction relates	397
to a change in a rule, standard, or approval of such agency, and	398
where such action or inaction is not the result of the failure of	399
the utility to reasonably endeavor to comply with any rule,	400
standard, or approval prior to such change.	401

In the event that such period expires before the project goes	402
into service, the commission shall exclude, from the date of	403
expiration, the allowance for the project as construction work in	404
progress from rates, except that the commission may extend the	405
expiration date up to twelve months for good cause shown.	406

In the event that a utility has permanently canceled,	407
abandoned, or terminated construction of a project for which it	408
was previously permitted a construction work in progress	409
allowance, the commission immediately shall exclude the allowance	410
for the project from the valuation.	411

In the event that a construction work in progress project	412
previously included in the valuation is removed from the valuation	413
pursuant to this division, any revenues collected by the utility	414
from its customers after April 10, 1985, that resulted from such	415
prior inclusion shall be offset against future revenues over the	416
same period of time as the project was included in the valuation	417
as construction work in progress. The total revenue effect of such	418
offset shall not exceed the total revenues previously collected.	419

In no event shall the total revenue effect of any offset or	420
offsets provided under division (A)(1) of this section exceed the	421
total revenue effect of any construction work in progress	422
allowance.	423

(2) A fair and reasonable rate of return to the utility on	424
the valuation as determined in division (A)(1) of this section;	425

(3) The dollar annual return to which the utility is entitled	426
by applying the fair and reasonable rate of return as determined	427
under division (A)(2) of this section to the valuation of the	428
utility determined under division (A)(1) of this section;	429

(4) The cost to the utility of rendering the public utility	430
service for the test period used for the determination under	431
division (C)(1) of this section, less the total of any interest on	432
cash or credit refunds paid, pursuant to section 4909.42 of the	433
Revised Code, by the utility during the test period.	434

(a) Federal, state, and local taxes imposed on or measured by	435
net income may, in the discretion of the commission, be computed	436
by the normalization method of accounting, provided the utility	437
maintains accounting reserves that reflect differences between	438
taxes actually payable and taxes on a normalized basis, provided	439
that no determination as to the treatment in the rate-making	440
process of such taxes shall be made that will result in loss of	441
any tax depreciation or other tax benefit to which the utility	442
would otherwise be entitled, and further provided that such tax	443
benefit as redounds to the utility as a result of such a	444
computation may not be retained by the company, used to fund any	445
dividend or distribution, or utilized for any purpose other than	446
the defrayal of the operating expenses of the utility and the	447
defrayal of the expenses of the utility in connection with	448
construction work.	449

(b) The amount of any tax credits granted to an electric	450
light company under section 5727.391 of the Revised Code for Ohio	451
coal burned prior to January 1, 2000, shall not be retained by the	452
company, used to fund any dividend or distribution, or utilized	453
for any purposes other than the defrayal of the allowable	454
operating expenses of the company and the defrayal of the	455
allowable expenses of the company in connection with the	456
installation, acquisition, construction, or use of a compliance	457
facility. The amount of the tax credits granted to an electric	458
light company under that section for Ohio coal burned prior to	459
January 1, 2000, shall be returned to its customers within three	460
years after initially claiming the credit through an offset to the	461
company's rates or fuel component, as determined by the	462
commission, as set forth in schedules filed by the company under	463
section 4905.30 of the Revised Code. As used in division	464
(A)(4)(c)(b) of this section, "compliance facility" has the same	465
meaning as in section 5727.391 of the Revised Code.	466

(B) The commission shall compute the gross annual revenues to	467
which the utility is entitled by adding the dollar amount of	468
return under division (A)(3) of this section to the cost, for the	469
test period used for the determination under division (C)(1) of	470
this section, of rendering the public utility service for the test	471
period under division (A)(4) of this section.	472

(C)(1) Except as provided in division (D) of this section,	473
the revenues and expenses of the utility shall be determined	474
during a test period. The utility may propose a test period,	475
unless otherwise ordered by the commission, shall be thefor this	476
determination that is any twelve-month period beginning not more	477
than six months prior to the date the application is filed and	478
ending six months subsequent to that date. In no event shall the	479
test period endnot more than nine months subsequent to thethat	480
date the application is filed. The test period for determining	481
revenues and expenses of the utility shall be determined during	482
the test period proposed by the utility, unless otherwise ordered	483
by the commission. The	484

(2) The date certain shall be not later than the date of	485
filing, except that it shall be, for a natural gas company, not	486
later than the end of the test period.	487

(D) A natural gas company may propose adjustments to the	488
revenues and expenses to be determined under division (C)(1) of	489
this section for any changes that are, during the test period or	490
the twelve-month period immediately following the test period,	491
reasonably expected to occur. The natural gas company shall	492
identify and quantify, individually, any proposed adjustments. The	493
commission shall incorporate the proposed adjustments into the	494
determination if the adjustments are just and reasonable.	495

(E) When the commission is of the opinion, after hearing and	496
after making the determinations under divisions (A) and (B) of	497
this section, that any rate, fare, charge, toll, rental, schedule,	498
classification, or service, or any joint rate, fare, charge, toll,	499
rental, schedule, classification, or service rendered, charged,	500
demanded, exacted, or proposed to be rendered, charged, demanded,	501
or exacted, is, or will be, unjust, unreasonable, unjustly	502
discriminatory, unjustly preferential, or in violation of law,	503
that the service is, or will be, inadequate, or that the maximum	504
rates, charges, tolls, or rentals chargeable by any such public	505
utility are insufficient to yield reasonable compensation for the	506
service rendered, and are unjust and unreasonable, the commission	507
shall:	508

(1) With due regard among other things to the value of all	509
property of the public utility actually used and useful for the	510
convenience of the public as determined under division (A)(1) of	511
this section, excluding from such value the value of any franchise	512
or right to own, operate, or enjoy the same in excess of the	513
amount, exclusive of any tax or annual charge, actually paid to	514
any political subdivision of the state or county, as the	515
consideration for the grant of such franchise or right, and	516
excluding any value added to such property by reason of a monopoly	517
or merger, with due regard in determining the dollar annual return	518
under division (A)(3) of this section to the necessity of making	519
reservation out of the income for surplus, depreciation, and	520
contingencies, and;	521

(2) With due regard to all such other matters as are proper,	522
according to the facts in each case,	523

(a) Including a fair and reasonable rate of return determined	524
by the commission with reference to a cost of debt equal to the	525
actual embedded cost of debt of such public utility,	526

(b) But not including the portion of any periodic rental or	527
use payments representing that cost of property that is included	528
in the valuation report under divisions (F)(C)(4) and (G)(5) of	529
section 4909.05 of the Revised Code, fix and determine the just	530
and reasonable rate, fare, charge, toll, rental, or service to be	531
rendered, charged, demanded, exacted, or collected for the	532
performance or rendition of the service that will provide the	533
public utility the allowable gross annual revenues under division	534
(B) of this section, and order such just and reasonable rate,	535
fare, charge, toll, rental, or service to be substituted for the	536
existing one. After such determination and order no change in the	537
rate, fare, toll, charge, rental, schedule, classification, or	538
service shall be made, rendered, charged, demanded, exacted, or	539
changed by such public utility without the order of the	540
commission, and any other rate, fare, toll, charge, rental,	541
classification, or service is prohibited.	542

(E)(F) Upon application of any person or any public utility,	543
and after notice to the parties in interest and opportunity to be	544
heard as provided in Chapters 4901., 4903., 4905., 4907., 4909.,	545
4921., and 4923. of the Revised Code for other hearings, has been	546
given, the commission may rescind, alter, or amend an order fixing	547
any rate, fare, toll, charge, rental, classification, or service,	548
or any other order made by the commission. Certified copies of	549
such orders shall be served and take effect as provided for	550
original orders.	551

Sec. 4909.156.  In fixing the just, reasonable, and	552
compensatory rates, joint rates, tolls, classifications, charges,	553
or rentals to be observed and charged for service by any public	554
utility, the public utilities commission shall, in action upon an	555
application filed pursuant to section 4909.18 of the Revised Code,	556
require a public utility to file a report showing the	557
proportionate amounts of the valuation of the property of the	558
utility, as determined under section 4909.05 or the Revised Code,	559
and the proportionate amounts of the revenues and expenses of the	560
utility that are proposed to be considered as attributable to the	561
service area involved in the application.	562

"Valuation," as used in this section, may include, with	563
respect to a natural gas company, projected valuation as of the	564
date certain, if applicable because of a future date certain under	565
section 4909.15 of the Revised Code.	566

Sec. 4909.17.  No rate, joint rate, toll, classification,	567
charge, or rental, no change in any rate, joint rate, toll,	568
classification, charge, or rental, and no regulation or practice	569
affecting any rate, joint rate, toll, classification, charge, or	570
rental of a public utility shall become effective until the public	571
utilities commission, by order, determines it to be just and	572
reasonable, except as provided in this section and sections	573
4909.18 and, 4909.19, and 4909.191 of the Revised Code. Such	574
sections do not apply to any rate, joint rate, toll,	575
classification, charge, or rental, or any regulation or practice	576
affecting the same, of railroads, street and electric railways,	577
motor transportation companies, and pipe line companies.	578

Sec. 4909.18.  Any public utility desiring to establish any	579
rate, joint rate, toll, classification, charge, or rental, or to	580
modify, amend, change, increase, or reduce any existing rate,	581
joint rate, toll, classification, charge, or rental, or any	582
regulation or practice affecting the same, shall file a written	583
application with the public utilities commission. Except for	584
actions under section 4909.16 of the Revised Code, no public	585
utility may issue the notice of intent to file an application	586
pursuant to division (B) of section 4909.43 of the Revised Code to	587
increase any existing rate, joint rate, toll, classification,	588
charge, or rental, until a final order under this section has been	589
issued by the commission on any pending prior application to	590
increase the same rate, joint rate, toll, classification, charge,	591
or rental or until two hundred seventy-five days after filing such	592
application, whichever is sooner. Such application shall be	593
verified by the president or a vice-president and the secretary or	594
treasurer of the applicant. Such application shall contain a	595
schedule of the existing rate, joint rate, toll, classification,	596
charge, or rental, or regulation or practice affecting the same, a	597
schedule of the modification amendment, change, increase, or	598
reduction sought to be established, and a statement of the facts	599
and grounds upon which such application is based. If such	600
application proposes a new service or the use of new equipment, or	601
proposes the establishment or amendment of a regulation, the	602
application shall fully describe the new service or equipment, or	603
the regulation proposed to be established or amended, and shall	604
explain how the proposed service or equipment differs from	605
services or equipment presently offered or in use, or how the	606
regulation proposed to be established or amended differs from	607
regulations presently in effect. The application shall provide	608
such additional information as the commission may require in its	609
discretion. If the commission determines that such application is	610
not for an increase in any rate, joint rate, toll, classification,	611
charge, or rental, the commission may permit the filing of the	612
schedule proposed in the application and fix the time when such	613
schedule shall take effect. If it appears to the commission that	614
the proposals in the application may be unjust or unreasonable,	615
the commission shall set the matter for hearing and shall give	616
notice of such hearing by sending written notice of the date set	617
for the hearing to the public utility and publishing notice of the	618
hearing one time in a newspaper of general circulation in each	619
county in the service area affected by the application. At such	620
hearing, the burden of proof to show that the proposals in the	621
application are just and reasonable shall be upon the public	622
utility. After such hearing, the commission shall, where	623
practicable, issue an appropriate order within six months from the	624
date the application was filed.	625

If the commission determines that said application is for an	626
increase in any rate, joint rate, toll, classification, charge, or	627
rental there shall also, unless otherwise ordered by the	628
commission, be filed with the application in duplicate the	629
following exhibits:	630

(A) A report of its property used and useful, or, with	631
respect to a natural gas company, projected to be used and useful	632
as of the date certain, in rendering the service referred to in	633
such application, as provided in section 4909.05 of the Revised	634
Code;	635

(B) A complete operating statement of its last fiscal year,	636
showing in detail all its receipts, revenues, and incomes from all	637
sources, all of its operating costs and other expenditures, and	638
any analysis such public utility deems applicable to the matter	639
referred to in said application;	640

(C) A statement of the income and expense anticipated under	641
the application filed;	642

(D) A statement of financial condition summarizing assets,	643
liabilities, and net worth;	644

(E) A proposed notice for newspaper publication fully	645
disclosing the substance of the application. The notice shall	646
prominently state that any person, firm, corporation, or	647
association may file, pursuant to section 4909.19 of the Revised	648
Code, an objection to such increase which may allege that such	649
application contains proposals that are unjust and discriminatory	650
or unreasonable. The notice shall further include the average	651
percentage increase in rate that a representative industrial,	652
commercial, and residential customer will bear should the increase	653
be granted in full;	654

(F) Such other information as the commission may require in	655
its discretion.	656

Sec. 4909.19. (A) Upon the filing of any application for	657
increase provided for by section 4909.18 of the Revised Code the	658
public utility shall forthwith publish the substance and prayer	659
notice of such application, in a form approved by the public	660
utilities commission, once a week for threetwo consecutive weeks	661
in a newspaper published and in general circulation throughout the	662
territory in which such public utility operates and directly	663
affected by the matters referred to in said application, and. The	664
notice shall include instructions for direct electronic access to	665
the application or other documents on file with the public	666
utilities commission. The first publication of the notice shall be	667
made in its entirety and may be made in a preprinted insert in the	668
newspaper. The second publication may be abbreviated if all of the	669
following apply:	670

(1) The abbreviated notice is at least one-fourth of the size	671
of the notice in the first publication.	672

(2) At the same time the abbreviated notice is published, the	673
notice in the first publication is posted in its entirety on the	674
newspaper's web site, if the newspaper has a web site, and the	675
commission's web site.	676

(3) The abbreviated notice contains a statement of the web	677
site posting or postings, as applicable, and instructions for	678
accessing the posting or postings.	679

(B) The commission shall determine a format for the content	680
of all notices required under this section, and shall consider	681
costs and technological efficiencies in making that determination.	682
Defects in the publication of said notice shall not affect the	683
legality or sufficiency of notices published under this section	684
provided that the commission has substantially complied with this	685
section, as described in section 4905.09 of the Revised Code.	686

(C) The commission shall at once cause an investigation to be	687
made of the facts set forth in said application and the exhibits	688
attached thereto, and of the matters connected therewith. Within a	689
reasonable time as determined by the commission after the filing	690
of such application, a written report shall be made and filed with	691
the commission, a copy of which shall be sent by certified mail to	692
the applicant, the mayor of any municipal corporation affected by	693
the application, and to such other persons as the commission deems	694
interested. If no objection to such report is made by any party	695
interested within thirty days after such filing and the mailing of	696
copies thereof, the commission shall fix a date within ten days	697
for the final hearing upon said application, giving notice thereof	698
to all parties interested. At such hearing the commission shall	699
consider the matters set forth in said application and make such	700
order respecting the prayer thereof as to it seems just and	701
reasonable.	702

If objections are filed with the commission, the commission	703
shall cause a pre-hearing conference to be held between all	704
parties, intervenors, and the commission staff in all cases	705
involving more than one hundred thousand customers.	706

If objections are filed with the commission within thirty	707
days after the filing of such report, the application shall be	708
promptly set down for hearing of testimony before the commission	709
or be forthwith referred to an attorney examiner designated by the	710
commission to take all the testimony with respect to the	711
application and objections which may be offered by any interested	712
party. The commission shall also fix the time and place to take	713
testimony giving ten days' written notice of such time and place	714
to all parties. The taking of testimony shall commence on the date	715
fixed in said notice and shall continue from day to day until	716
completed. The attorney examiner may, upon good cause shown, grant	717
continuances for not more than three days, excluding Saturdays,	718
Sundays, and holidays. The commission may grant continuances for a	719
longer period than three days upon its order for good cause shown.	720
At any hearing involving rates or charges sought to be increased,	721
the burden of proof to show that the increased rates or charges	722
are just and reasonable shall be on the public utility.	723

When the taking of testimony is completed, a full and	724
complete record of such testimony noting all objections made and	725
exceptions taken by any party or counsel, shall be made, signed by	726
the attorney examiner, and filed with the commission. Prior to the	727
formal consideration of the application by the commission and the	728
rendition of any order respecting the prayer of the application, a	729
quorum of the commission shall consider the recommended opinion	730
and order of the attorney examiner, in an open, formal, public	731
proceeding in which an overview and explanation is presented	732
orally. Thereafter, the commission shall make such order	733
respecting the prayer of such application as seems just and	734
reasonable to it.	735

In all proceedings before the commission in which the taking	736
of testimony is required, except when heard by the commission,	737
attorney examiners shall be assigned by the commission to take	738
such testimony and fix the time and place therefor, and such	739
testimony shall be taken in the manner prescribed in this section.	740
All testimony shall be under oath or affirmation and taken down	741
and transcribed by a reporter and made a part of the record in the	742
case. The commission may hear the testimony or any part thereof in	743
any case without having the same referred to an attorney examiner	744
and may take additional testimony. Testimony shall be taken and a	745
record made in accordance with such general rules as the	746
commission prescribes and subject to such special instructions in	747
any proceedings as it, by order, directs.	748

Sec. 4909.191. (A) If the public utilities commission, under	749
division (D) of section 4909.15 of the Revised Code, incorporated	750
proposed adjustments to revenues and expenses into the	751
commission's determination under that section, the natural gas	752
company shall, not later than ninety days after actual data for	753
all of the incorporated adjustments becomes known, submit to the	754
commission proposed rate or charge adjustments that provide for	755
the recalculation of rates or charges, reflective of	756
customer-class responsibility, corresponding to the differences,	757
if any, between the incorporated adjustments to revenues and	758
expenses and the actual revenues and expenses associated with the	759
incorporated adjustments.	760

(B) If the commission incorporated projected value or	761
valuation of property into the commission's determination under	762
division (A)(1) of section 4909.15 of the Revised Code, the	763
natural gas company shall, not later than ninety days after data	764
for the actual value or valuation as of the date certain becomes	765
known, submit to the commission proposed rate or charge	766
adjustments that provide for the recalculation of rates or	767
charges, reflective of customer-class responsibility,	768
corresponding to the differences, if any, between the projected	769
value or valuation incorporated into the commission's	770
determination and the actual value or valuation as of the date	771
certain.	772

(C) The commission shall review the proposed rate or charge	773
adjustments submitted under divisions (A) and (B) of this section.	774
The review shall not include a hearing unless the commission finds	775
that the proposed rate or charge adjustments may be unreasonable,	776
in which case the commission may, in its discretion, schedule the	777
matter for a hearing.	778

(D) The commission shall issue, not later than one hundred	779
fifty days after the date that any proposed rate or charge	780
adjustments are submitted under division (A) or (B) of this	781
section, a final order on the proposed rate or charge adjustments.	782
Any rate or charge adjustments authorized under this division	783
shall be limited to amounts that are not greater than those	784
consistent with the proposed adjustments to revenues and expenses	785
that were incorporated into the commission's determination under	786
division (D) of section 4909.15 of the Revised Code, and not	787
greater than those consistent with the incorporated projected	788
value or valuation. In no event shall rate or charge adjustments	789
authorized under this division be upward.	790

After the commission has issued such a final order, the	791
natural gas company, if applicable, shall submit to the commission	792
proposed reconciliation adjustments that refund to customers the	793
difference between the actual revenues collected by the natural	794
gas company, under the rates and charges determined by the	795
commission under section 4909.15 of the Revised Code, and the	796
rates or charges recalculated under the adjustments authorized	797
under this division. The reconciliation adjustments shall be	798
effective for a twelve-month period.	799

(E) The reconciliation adjustments ordered under division (D)	800
of this section may be subject to a final reconciliation by the	801
commission. Any such final reconciliation shall occur after the	802
twelve-month period described in division (D) of this section.	803

Sec. 4928.18.  (A) Notwithstanding division (D)(E)(2)(a) of	804
section 4909.15 of the Revised Code, nothing in this chapter	805
prevents the public utilities commission from exercising its	806
authority under Title XLIX of the Revised Code to protect	807
customers of retail electric service supplied by an electric	808
utility from any adverse effect of the utility's provision of a	809
product or service other than retail electric service.	810

(B) The commission has jurisdiction under section 4905.26 of	811
the Revised Code, upon complaint of any person or upon complaint	812
or initiative of the commission on or after the starting date of	813
competitive retail electric service, to determine whether an	814
electric utility or its affiliate has violated any provision of	815
section 4928.17 of the Revised Code or an order issued or rule	816
adopted under that section. For this purpose, the commission may	817
examine such books, accounts, or other records kept by an electric	818
utility or its affiliate as may relate to the businesses for which	819
corporate separation is required under section 4928.17 of the	820
Revised Code, and may investigate such utility or affiliate	821
operations as may relate to those businesses and investigate the	822
interrelationship of those operations. Any such examination or	823
investigation by the commission shall be governed by Chapter 4903.	824
of the Revised Code.	825

(C) In addition to any remedies otherwise provided by law,	826
the commission, regarding a determination of a violation pursuant	827
to division (B) of this section, may do any of the following:	828

(1) Issue an order directing the utility or affiliate to	829
comply;	830

(2) Modify an order as the commission finds reasonable and	831
appropriate and order the utility or affiliate to comply with the	832
modified order;	833

(3) Suspend or abrogate an order, in whole or in part;

834

(4) Issue an order that the utility or affiliate pay	835
restitution to any person injured by the violation or failure to	836
comply;	837

(D) In addition to any remedies otherwise provided by law,	838
the commission, regarding a determination of a violation pursuant	839
to division (B) of this section and commensurate with the severity	840
of the violation, the source of the violation, any pattern of	841
violations, or any monetary damages caused by the violation, may	842
do either of the following:	843

(1) Impose a forfeiture on the utility or affiliate of up to	844
twenty-five thousand dollars per day per violation. The recovery	845
and deposit of any such forfeiture shall be subject to sections	846
4905.57 and 4905.59 of the Revised Code.	847

(2) Regarding a violation by an electric utility relating to	848
a corporate separation plan involving competitive retail electric	849
service, suspend or abrogate all or part of an order, to the	850
extent it is in effect, authorizing an opportunity for the utility	851
to receive transition revenues under a transition plan approved by	852
the commission under section 4928.33 of the Revised Code.	853

Corporate separation under this section does not prohibit the	854
common use of employee benefit plans, facilities, equipment, or	855
employees, subject to proper accounting and the code of conduct	856
ordered by the commission as provided in division (A)(1) of this	857
section.	858

(E) Section 4905.61 of the Revised Code applies in the case	859
of any violation of section 4928.17 of the Revised Code or of any	860
rule adopted or order issued under that section.	861

Sec. 4929.05.  (A) As part of an application filed pursuant	862
to section 4909.18 of the Revised Code, aA natural gas company	863
may request approval of an alternative rate plan by filing an	864
application under section 4909.18 of the Revised Code, regardless	865
of whether the application is for an increase in rates. After	866
notice, investigation, andwhich may include a hearing, and after	867
determining just and reasonable rates and charges for the natural	868
gas company pursuant to section 4909.15 of the Revised Code,at	869
the discretion of the public utilities commission, the commission	870
shall authorize the applicant to implement an alternative rate	871
plan if the natural gas company has made a showing and the	872
commission finds that bothall of the following conditions are	873
met:	874

(1) The natural gas company is in compliance with section	875
4905.35 of the Revised Code and is in substantial compliance with	876
the policy of this state specified in section 4929.02 of the	877
Revised Code;.	878

(2) The natural gas company is expected to continue to be in	879
substantial compliance with the policy of this state specified in	880
section 4929.02 of the Revised Code after implementation of the	881
alternative rate plan.	882

(3) The alternative rate plan is just and reasonable.

883

(B) The applicant shall have the burden of proof under this	884
section.	885

(C) No request may be made under this section prior to one	886
hundred eighty days after the effective date of this section.	887

Sec. 4929.051. (A) An alternative rate plan filed by a	888
natural gas company under section 4929.05 of the Revised Code and	889
proposing to initiate or continue a revenue decoupling mechanism	890
mayshall be considered an application not for an increase in	891
rates if the rates, joint rates, tolls, classifications, charges,	892
or rentals are based upon the billing determinants and revenue	893
requirement authorized by the public utilities commission in the	894
company's most recent rate case proceeding and the plan also	895
establishes, continues, or expands an energy efficiency or energy	896
conservation program.	897

(B) An alternative rate plan filed by a natural gas company	898
under section 4929.05 of the Revised Code and seeking	899
authorization to continue a previously approved alternative rate	900
plan shall be considered an application not for an increase in	901
rates.	902

Sec. 4929.11. Nothing in the Revised Code prohibits(A) Upon	903
an application filed under this section, and the public utilities	904
commission may allow, any automatic adjustment mechanism or device	905
in a natural gas company's rate schedules that allows a natural	906
gas company's rates or charges for a regulated service or goods to	907
fluctuate automatically in accordance with changes in a specified	908
cost or costs.	909

(B) Upon an application filed under section 4909.18 or	910
4929.05 of the Revised Code, the commission may allow any	911
automatic adjustment mechanism or device as described in division	912
(A) of this section.	913

Sec. 4929.111. (A) A natural gas company may file an	914
application with the public utilities commission under section	915
4909.18, 4929.05, or 4929.11 of the Revised Code to implement a	916
capital expenditure program for any of the following:	917

(1) Any infrastructure expansion, infrastructure improvement,	918
or infrastructure replacement program;	919

(2) Any program to install, upgrade, or replace information	920
technology systems;	921

(3) Any program reasonably necessary to comply with any	922
rules, regulations, or orders of the commission or other	923
governmental entity having jurisdiction.	924

(B) An application submitted under division (A) of this	925
section shall specify the total cost of the capital expenditure	926
program.	927

(C) If the commission finds that the capital expenditure	928
program is consistent with the natural gas company's obligation	929
under section 4905.22 of the Revised Code to furnish necessary and	930
adequate services and facilities, which services and facilities	931
the commission finds to be just and reasonable, the commission	932
shall approve the application. Any deferral or recovery authorized	933
under division (D) of this section shall be limited to amounts	934
that are no greater than those consistent with the total cost of	935
the capital expenditure program as set forth in the application,	936
unless the commission in its discretion authorizes additional	937
recovery under this section.	938

(D) In approving an application under division (C) of this	939
section, the commission shall authorize the natural gas company to	940
defer or recover in an application that the natural gas company	941
may file under section 4909.18, 4929.05, or 4929.11 of the Revised	942
Code, both of the following:	943

(1) A regulatory asset for the post-in-service carrying costs	944
on that portion of the assets of the capital expenditure program	945
that are placed in service but not reflected in rates as plant in	946
service;	947

(2) A regulatory asset for the incremental depreciation	948
directly attributable to the capital expenditure program and the	949
property tax expense directly attributable to the capital	950
expenditure program.	951

(E) The natural gas company may make any accounting accruals,	952
necessary to establish the regulatory assets authorized under	953
division (D) of this section, in addition to any allowance for	954
funds used during construction.	955

(F)(1) Any accrual for deferral or recovery under division	956
(D) of this section shall be calculated in accordance with the	957
system of accounts established by the commission under section	958
4905.13 of the Revised Code.	959

(2) The natural gas company shall calculate the	960
post-in-service carrying costs, described in division (D)(1) of	961
this section, for every investment in an asset of the capital	962
expenditure program. This calculation shall be based on the cost	963
of long-term debt of the natural gas company.	964

(G) Any accruals for deferral or recovery under division (D)	965
of this section shall commence when the assets of the capital	966
expenditure program are placed in service and shall cease when	967
rates reflecting the cost of those assets are effective.	968

Sec. 4935.04.  (A) As used in this chapter:

969

(1) "Major utility facility" means:

970

(a) An electric transmission line and associated facilities	971
of a design capacity of one hundred twenty-five kilovolts or more;	972

(b) A gas or natural gas transmission line and associated	973
facilities designed for, or capable of, transporting gas or	974
natural gas at pressures in excess of one hundred twenty-five	975
pounds per square inch.	976

"Major utility facility" does not include electric, gas, or	977
natural gas distributing lines and gas or natural gas gathering	978
lines and associated facilities as defined by the public utilities	979
commission; facilities owned or operated by industrial firms,	980
persons, or institutions that produce or transmit gas or natural	981
gas, or electricity primarily for their own use or as a byproduct	982
of their operations; gas or natural gas transmission lines and	983
associated facilities over which an agency of the United States	984
has certificate jurisdiction; facilities owned or operated by a	985
person furnishing gas or natural gas directly to fifteen thousand	986
or fewer customers within this state.	987

(2) "Person" has the meaning set forth in section 4906.01 of	988
the Revised Code.	989

(B) Each person owning or operating a gas or natural gas	990
transmission line and associated facilities within this state over	991
which an agency of the United States has certificate jurisdiction	992
shall furnish to the commission a copy of the energy information	993
filed by the person with that agency of the United States.	994

(C) Each person owning or operating a major utility facility	995
within this state, or furnishing gas, natural gas, or electricity	996
directly to more than fifteen thousand customers within this state	997
annually shall furnish a report to the commission for its review.	998
The report shall be furnished annually, except that for a gas or	999
natural gas company the report shall be furnished every three	1000
years. The report shall be termed the long-term forecast report	1001
and shall contain:	1002

(1) A year-by-year, ten-year forecast of annual energy	1003
demand, peak load, reserves, and a general description of the	1004
resource plan to meet demand;	1005

(2) A range of projected loads during the period;

1006

(3) A description of major utility facilities planned to be	1007
added or taken out of service in the next ten years, including, to	1008
the extent the information is available, prospective sites for	1009
transmission line locations;	1010

(4) For gas and natural gas, a projection of anticipated	1011
supply, supply prices, and sources of supply over the forecast	1012
period;	1013

(5) A description of proposed changes in the transmission	1014
system planned for the next five years;	1015

(6) A month-by-month forecast of both energy demand and peak	1016
load for electric utilities, and gas sendout for gas and natural	1017
gas utilities, for the next two years. The report shall describe	1018
the major utility facilities that, in the judgment of such person,	1019
will be required to supply system demands during the forecast	1020
period. The report from a gas or natural gas utility shall cover	1021
the ten- and five-year periods next succeeding the date of the	1022
report, and the report from an electric utility shall cover the	1023
twenty-, ten-, and five-year periods next succeeding the date of	1024
the report. Each report shall be made available to the public and	1025
furnished upon request to municipal corporations and governmental	1026
agencies charged with the duty of protecting the environment or of	1027
planning land use. The report shall be in such form and shall	1028
contain such information as may be prescribed by the commission.	1029

Each person not owning or operating a major utility facility	1030
within this state and serving fifteen thousand or fewer gas or	1031
natural gas, or electric customers within this state shall furnish	1032
such information as the commission requires.	1033

(D) The commission shall:

1034

(1) Review and comment on the reports filed under division	1035
(C) of this section, and make the information contained in the	1036
reports readily available to the public and other interested	1037
government agencies;	1038

(2) Compile and publish each year the general locations of	1039
proposed and existing transmission line routes within its	1040
jurisdiction as identified in the reports filed under division (C)	1041
of this section, identifying the general location of such sites	1042
and routes and the approximate year when construction is expected	1043
to commence, and to make such information readily available to the	1044
public, to each newspaper of daily or weekly circulation within	1045
the area affected by the proposed site and route, and to	1046
interested federal, state, and local agencies;	1047

(3) Hold a public hearing:

1048

(a) On the first long-term forecast report filed after	1049
January 11, 1983;	1050

(b) At least once in every five years, on the latest report	1051
furnished by any person subject to this section;	1052

(c) On the latest report furnished by any person subject to	1053
this section if the report contains a substantial change from the	1054
preceding report furnished by that person. "Substantial change"	1055
includes, but is not limited to:	1056

(i) A change in forecasted peak loads or energy consumption	1057
over the forecast period of greater than an average of one-half of	1058
one per cent per year;	1059

(ii) Demonstrationupon the showing of good cause to the	1060
commission by an interested party.	1061

TheIf a hearing is held, the commission shall fix a time for	1062
the hearing, which shall be not later than ninety days after the	1063
report is filed, and publish notice of the date, time of day, and	1064
location of the hearing in a newspaper of general circulation in	1065
each county in which the person furnishing the report has or	1066
intends to locate a major utility facility and will provide	1067
service during the period covered by the report. The notice shall	1068
be published not less than fifteen nor more than thirty days	1069
before the hearing and shall state the matters to be considered.	1070

Absent a showing of good cause, the commission shall not hold	1071
hearings under division (D)(3) of this section with respect to	1072
persons who, as the primary purpose of their business, furnish gas	1073
or natural gas, or electricity directly to fifteen thousand or	1074
fewer customers within this state solely for direct consumption by	1075
those customers.	1076

(4) Require such information from persons subject to its	1077
jurisdiction as necessary to assist in the conduct of hearings and	1078
any investigation or studies it may undertake;	1079

(5) Conduct any studies or investigations that are necessary	1080
or appropriate to carry out its responsibilities under this	1081
section.	1082

(E)(1) The scope of the hearing held under division (D)(3) of	1083
this section shall be limited to issues relating to forecasting.	1084
The power siting board, the office of consumers' counsel, and all	1085
other persons having an interest in the proceedings shall be	1086
afforded the opportunity to be heard and to be represented by	1087
counsel. The commission may adjourn the hearing from time to time.	1088

(2) The hearing shall include, but not be limited to, a	1089
review of:	1090

(a) The projected loads and energy requirements for each year	1091
of the period;	1092

(b) The estimated installed capacity and supplies to meet the	1093
projected load requirements.	1094

(F) Based upon the report furnished pursuant to division (C)	1095
of this section and the hearing record, the commission, within	1096
ninety days from the close of the record in the hearing, shall	1097
determine if:	1098

(1) All information relating to current activities,	1099
facilities agreements, and published energy policies of the state	1100
has been completely and accurately represented;	1101

(2) The load requirements are based on substantially accurate	1102
historical information and adequate methodology;	1103

(3) The forecasting methods consider the relationships	1104
between price and energy consumption;	1105

(4) The report identifies and projects reductions in energy	1106
demands due to energy conservation measures in the industrial,	1107
commercial, residential, transportation, and energy production	1108
sectors in the service area;	1109

(5) Utility company forecasts of loads and resources are	1110
reasonable in relation to population growth estimates made by	1111
state and federal agencies, transportation, and economic	1112
development plans and forecasts, and make recommendations where	1113
possible for necessary and reasonable alternatives to meet	1114
forecasted electric power demand;	1115

(6) The report considers plans for expansion of the regional	1116
power grid and the planned facilities of other utilities in the	1117
state;	1118

(7) All assumptions made in the forecast are reasonable and	1119
adequately documented.	1120

(G) The commission shall adopt rules under section 111.15 of	1121
the Revised Code to establish criteria for evaluating the	1122
long-term forecasts of needs for gas and electric transmission	1123
service, to conduct hearings held under this section, to establish	1124
reasonable fees to defray the direct cost of the hearings and the	1125
review process, and such other rules as are necessary and	1126
convenient to implement this section.	1127

(H) The hearing record produced under this section and the	1128
determinations of the commission shall be introduced into evidence	1129
and shall be considered in determining the basis of need for power	1130
siting board deliberations under division (A)(1) of section	1131
4906.10 of the Revised Code. The hearing record produced under	1132
this section shall be introduced into evidence and shall be	1133
considered by the public utilities commission in its initiation of	1134
programs, examinations, and findings under section 4905.70 of the	1135
Revised Code, and shall be considered in the commission's	1136
determinations with respect to the establishment of just and	1137
reasonable rates under section 4909.15 of the Revised Code and	1138
financing utility facilities and authorizing issuance of all	1139
securities under sections 4905.40, 4905.401, 4905.41, and 4905.42	1140
of the Revised Code. The forecast findings also shall serve as the	1141
basis for all other energy planning and development activities of	1142
the state government where electric and gas data are required.	1143

(I)(1) No court other than the supreme court shall have power	1144
to review, suspend, or delay any determination made by the	1145
commission under this section, or enjoin, restrain, or interfere	1146
with the commission in the performance of official duties. A writ	1147
of mandamus shall not be issued against the commission by any	1148
court other than the supreme court.	1149

(2) A final determination made by the commission shall be	1150
reversed, vacated, or modified by the supreme court on appeal, if,	1151
upon consideration of the record, such court is of the opinion	1152
that such determination was unreasonable or unlawful.	1153

The proceeding to obtain such reversal, vacation, or	1154
modification shall be by notice of appeal, filed with the	1155
commission by any party to the proceeding before it, against the	1156
commission, setting forth the determination appealed from and	1157
errors complained of. The notice of appeal shall be served, unless	1158
waived, upon the commission by leaving a copy at the office of the	1159
chairperson of the commission at Columbus. The court may permit an	1160
interested party to intervene by cross-appeal.	1161

(3) No proceeding to reverse, vacate, or modify a	1162
determination of the commission is commenced unless the notice of	1163
appeal is filed within sixty days after the date of the	1164
determination.	1165

Section 2.  That existing sections 4903.083, 4905.302,	1166
4909.05, 4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 4909.17,	1167
4909.18, 4909.19, 4928.18, 4929.05, 4929.051, 4929.11, and 4935.04	1168
of the Revised Code are hereby repealed.	1169