PUCO clarifies rules to implement electric security plans, market-rate offers

COLUMBUS, OHIO (Feb. 11, 2009) – The Public Utilities Commission of Ohio (PUCO) today modified rules implementing parts of Ohio’s new electricity law, Senate Bill 221. The Commission clarified the original intent of the rules, based on arguments raised on rehearing by several advocacy groups and utilities.

Changes were made to rules outlining the requirements for Ohio’s electric utilities to file electric security plans and market-rate offers, enter into reasonable arrangements for economic development and energy efficiency arrangements, develop corporate separation plans and establish transmission cost recovery riders. The rule modifications include, among others:

• Electric utilities that use a competitive bidding process to establish a market-rate offer must include in their plans an explanation of known and anticipated obstacles that may create barriers to the adoption of the bidding process.
• Affected parties may file a motion to intervene on any issues concerning an electric utility’s application to recover transmission-related costs.
• Electric suppliers may not use customer lists provided to them by electric utilities for any purpose other than marketing electric service to customers.
• Electric utilities that apply to the Commission to sell or transfer generating assets must include in their applications the fair market and book values of all property to be transferred and state how the fair market value was determined.
• Electric utilities and mercantile customers that apply to the Commission to enter into economic development or energy efficiency arrangements must include in their application a copy of the proposed arrangement and information on all associated incentives.

On May 1, 2008, Gov. Ted Strickland signed SB 221 into law, marking the one year anniversary of the date he outlined his Energy, Jobs, and Progress Plan to stabilize electricity prices, create jobs and expand Ohio’s green energy industry. SB 221 became effective on July 31, 2008 and incorporates a system under which rates would be set by the PUCO and outlines a path for electric utilities to implement market-based pricing.

On Sept. 17, 2008, the PUCO adopted rules to implement the portions of SB 221 that govern electric security plans, market-rate offers, corporate separation plans and economic development and energy efficiency arrangements. On Oct. 17, 2008, the PUCO received applications for rehearing of these rules from Ohio Consumer and Environmental Advocates, American Electric Power, FirstEnergy, the Alliance for Real Energy Options, Duke Energy Ohio, and the Ohio Environmental Council. On Nov. 5, 2008, the PUCO granted rehearing for further consideration of the matters raised in the applications  

The PUCO will file the modified rules with the Joint Committee on Agency Rule Review, the Secretary of State and the Legislative Service Commission.

A copy of today’s Commission entry on rehearing is available at www.PUCO.ohio.gov. Click on the link to the Docketing Information System (DIS) and enter the case number 08-777-EL-ORD. A copy of the rules adopted today by the Commission can be accessed at www.PUCO.ohio.gov/PUCO/rules.

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08-777-EL-ORD