Ohio Code 4928.37 – Receiving transition revenues
(A)(1) Sections 4928.31 to 4928.40 of the Revised Code provide an electric utility the opportunity to receive transition revenues that may assist it in making the transition to a fully competitive retail electric generation market. An electric Utility for which transition revenues are approved pursuant to sections 4928.31 to 4928.40 of the Revised Code shall receive those revenues through both of the following mechanisms beginning on the starting date of competitive retail electric service and ending on the expiration date of its market development period as determined under section 4928.40 of the Revised Code:
Terms Used In Ohio Code 4928.37
- Another: when used to designate the owner of property which is the subject of an offense, includes not only natural persons but also every other owner of property. See Ohio Code 1.02
- Billing and collection agent: means a fully independent agent, not affiliated with or otherwise controlled by an electric utility, electric services company, electric cooperative, or governmental aggregator subject to certification under section 4928. See Ohio Code 4928.01
- Certified territory: means the certified territory established for an electric supplier under sections 4933. See Ohio Code 4928.01
- Competitive retail electric service: means a component of retail electric service that is competitive as provided under division (B) of this section. See Ohio Code 4928.01
- Electric distribution utility: means an electric utility that supplies at least retail electric distribution service. See Ohio Code 4928.01
- Electric utility: means an electric light company that has a certified territory and is engaged on a for-profit basis either in the business of supplying a noncompetitive retail electric service in this state or in the businesses of supplying both a noncompetitive and a competitive retail electric service in this state. See Ohio Code 4928.01
- Municipal electric utility: means a municipal corporation that owns or operates facilities to generate, transmit, or distribute electricity. See Ohio Code 4928.01
- Rule: includes regulation. See Ohio Code 1.59
- Self-generator: means an entity in this state that owns or hosts on its premises an electric generation facility that produces electricity primarily for the owner's consumption and that may provide any such excess electricity to another entity, whether the facility is installed or operated by the owner or by an agent under a contract. See Ohio Code 4928.01
- state: means the state of Ohio. See Ohio Code 1.59
(a) Payment of unbundled rates for retail electric services by each customer that is supplied retail electric generation service during the market development period by the customer’s electric distribution utility, which rates shall be specified in schedules filed under section 4928.35 of the Revised Code;
(b) Payment of a nonbypassable and competitively neutral transition charge by each customer that is supplied retail electric generation service during the market development period by an entity other than the customer’s electric distribution utility, as such transition charge is determined under section 4928.40 of the Revised Code. The transition charge shall be payable by each such retail electric distribution service customer in the certified territory of the electric utility for which the transition revenues are approved and shall be billed on each kilowatt hour of electricity delivered to the customer by the electric distribution utility as registered on the customer’s meter during the utility’s market development period as kilowatt hour is defined in section 4909.161 of the Revised Code or, if no meter is used, as based on an estimate of kilowatt hours used or consumed by the customer. The transition charge for each customer class shall reflect the cost allocation to that class as provided under bundled rates and charges in effect on the day before the effective date of this section. Additionally, as reflected in section 4928.40 of the Revised Code, the transition charges shall be structured to provide shopping incentives to customers sufficient to encourage the development of effective competition in the supply of retail electric generation service. To the extent possible, the level and structure of the transition charge shall be designed to avoid revenue responsibility shifts among the utility’s customer classes and rate schedules.
(2)(a) Notwithstanding division (A)(1)(b) of this section, the transition charge shall not be payable on electricity supplied by a municipal electric utility to a retail electric distribution service customer in the certified territory of the electric utility for which the transition revenues are approved, if the municipal electric utility provides electric transmission or distribution service, or both services, through transmission or distribution facilities singly or jointly owned or operated by the municipal electric utility, and if the municipal electric utility was in existence, operating, and providing service as of January 1, 1999.
(b) The transition charge shall not be payable on electricity supplied or consumed in this state except such electricity as is delivered to a retail customer by an electric distribution utility and is registered on the customer’s meter during the utility’s market development period or, if no meter is used, is based on an estimate of kilowatt hours used or consumed by the customer. However, no transition charge shall be payable on electricity that is both produced and consumed in this state by a self-generator.
(3) The transition charge shall not be discounted by any party.
(4) Nothing prevents payment of all or part of the transition charge by another party on a customer’s behalf if that payment does not contravene sections 4905.33 to 4905.35 of the Revised Code or this chapter.
(B) The electric utility shall separately itemize and disclose, or cause its billing and collection agent to separately itemize and disclose, the transition charge on the customer’s bill in accordance with reasonable specifications the commission shall prescribe by rule under division (A) of section 4928.06 of the Revised Code.