Ohio § 4928.34

§ 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) 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 and the percentage of income payment plan

rider authorized by section 4928.52 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 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) 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 .