Ohio § 4928.66

§ 4928.66.

(A)(1)(a) Beginning in 2009, an electric distribution utility shall implement energy efficiency

programs that achieve energy savings equivalent to at least three-tenths of one per

cent of the total, annual average, and normalized kilowatt-hour sales of the electric

distribution utility during the preceding three calendar years to customers in this

state.  An energy efficiency program may include a combined heat and power system placed

into service or retrofitted on or after the effective date of the amendment of this

section by S.B. 315 of the 129th general assembly, September 10, 2012, or a waste

energy recovery system placed into service or retrofitted on or after September 10,

2012, except that a waste energy recovery system described in division (A)(38)(b) of section 4928.01 of the Revised Code may be included only if it was placed into service between January 1, 2002, and December

31, 2004.  For a waste energy recovery or combined heat and power system, the savings shall

be as estimated by the public utilities commission.  The savings requirement, using such a three-year average, shall increase to an additional

five-tenths of one per cent in 2010, seven-tenths of one per cent in 2011, eight-tenths

of one per cent in 2012, nine-tenths of one per cent in 2013, and one per cent in

2014.  In 2015 and 2016, an electric distribution utility shall achieve energy savings

equal to the result of subtracting the cumulative energy savings achieved since 2009

from the product of multiplying the baseline for energy savings, described in division

(A)(2)(a) of this section, by four and two-tenths of one per cent.  If the result is zero or less for the year for which the calculation is being made,

the utility shall not be required to achieve additional energy savings for that year,

but may achieve additional energy savings for that year.  The annual savings requirements shall be, for years 2017, 2018, 2019, and 2020,

an additional one per cent of the baseline.  For purposes of a waste energy recovery or combined heat and power system, an electric

distribution utility shall not apply more than the total annual percentage of the

electric distribution utility's industrial-customer load, relative to the electric

distribution utility's total load, to the annual energy savings requirement. (b) Beginning in 2009, an electric distribution utility shall implement peak demand reduction

programs designed to achieve a one per cent reduction in peak demand in 2009 and an

additional seventy-five hundredths of one per cent reduction each year through 2014.  In 2015 and 2016, an electric distribution utility shall achieve a reduction in

peak demand equal to the result of subtracting the cumulative peak demand reductions

achieved since 2009 from the product of multiplying the baseline for peak demand reduction,

described in division (A)(2)(a) of this section, by four and seventy-five hundredths

of one per cent.  If the result is zero or less for the year for which the calculation is being made,

the utility shall not be required to achieve an additional reduction in peak demand

for that year, but may achieve an additional reduction in peak demand for that year.  In 2017 and each year thereafter through 2020, the utility shall achieve an additional

seventy-five hundredths of one per cent reduction in peak demand. (2) For the purposes of divisions (A)(1)(a) and (b) of this section: (a) The baseline for energy savings under division (A)(1)(a) of this section shall be

the average of the total kilowatt hours the electric distribution utility sold in

the preceding three calendar years.  The baseline for a peak demand reduction under division (A)(1)(b) of this section

shall be the average peak demand on the utility in the preceding three calendar years,

except that the commission may reduce either baseline to adjust for new economic growth

in the utility's certified territory.  Neither baseline shall include the load and usage of any of the following customers: (i) Beginning January 1, 2017, a customer for which a reasonable arrangement has been

approved under section 4905.31 of the Revised Code ; (ii) A customer that has opted out of the utility's portfolio plan under section 4928.6611 of the Revised Code ; (iii) A customer that has opted out of the utility's portfolio plan under Section 8 of

S.B. 310 of the 130th general assembly. (b) The commission may amend the benchmarks set forth in division (A)(1)(a) or (b) of

this section if, after application by the electric distribution utility, the commission

determines that the amendment is necessary because the utility cannot reasonably achieve

the benchmarks due to regulatory, economic, or technological reasons beyond its reasonable

control. (c) Compliance with divisions (A)(1)(a) and (b) of this section shall be measured by

including the effects of all demand-response programs for mercantile customers of

the subject electric distribution utility, all waste energy recovery systems and all

combined heat and power systems, and all such mercantile customer-sited energy efficiency,

including waste energy recovery and combined heat and power, and peak demand reduction

programs, adjusted upward by the appropriate loss factors.  Any mechanism designed to recover the cost of energy efficiency, including waste

energy recovery and combined heat and power, and peak demand reduction programs under

divisions (A)(1)(a) and (b) of this section may exempt mercantile customers that commit

their demand-response or other customer-sited capabilities, whether existing or new,

for integration into the electric distribution utility's demand-response, energy efficiency,

including waste energy recovery and combined heat and power, or peak demand reduction

programs, if the commission determines that that exemption reasonably encourages such

customers to commit those capabilities to those programs.  If a mercantile customer makes such existing or new demand-response, energy efficiency,

including waste energy recovery and combined heat and power, or peak demand reduction

capability available to an electric distribution utility pursuant to division (A)(2)(c)

of this section, the electric utility's baseline under division (A)(2)(a) of this

section shall be adjusted to exclude the effects of all such demand-response, energy

efficiency, including waste energy recovery and combined heat and power, or peak demand

reduction programs that may have existed during the period used to establish the baseline.  The baseline also shall be normalized for changes in numbers of customers, sales,

weather, peak demand, and other appropriate factors so that the compliance measurement

is not unduly influenced by factors outside the control of the electric distribution

utility. (d)(i) Programs implemented by a utility may include the following: (I) Demand-response programs; (II) Smart grid investment programs, provided that such programs are demonstrated to be

cost-beneficial; (III) Customer-sited programs, including waste energy recovery and combined heat and power

systems; (IV) Transmission and distribution infrastructure improvements that reduce line losses; (V) Energy efficiency savings and peak demand reduction that are achieved, in whole or

in part, as a result of funding provided from the electric partnership plan fund

established by section 4928.51 of the Revised Code to benefit low-income customers through programs that include, but are not limited

to, energy audits, the installation of energy efficiency insulation, appliances, and

windows, and other weatherization measures. (ii) No energy efficiency or peak demand reduction achieved under divisions (A)(2)(d)(i)(IV)

and (V) of this section shall qualify for shared savings. (iii) Division (A)(2)(c) of this section shall be applied to include facilitating efforts

by a mercantile customer or group of those customers to offer customer-sited demand-response,

energy efficiency, including waste energy recovery and combined heat and power, or

peak demand reduction capabilities to the electric distribution utility as part of

a reasonable arrangement submitted to the commission pursuant to section 4905.31 of the Revised Code . (e) No programs or improvements described in division (A)(2)(d) of this section shall

conflict with any statewide building code adopted by the board of building standards. (B) In accordance with rules it shall adopt, the public utilities commission shall produce

and docket at the commission an annual report containing the results of its verification

of the annual levels of energy efficiency and of peak demand reductions achieved by

each electric distribution utility pursuant to division (A) of this section.  A copy of the report shall be provided to the consumers' counsel. (C) If the commission determines, after notice and opportunity for hearing and based

upon its report under division (B) of this section, that an electric distribution

utility has failed to comply with an energy efficiency or peak demand reduction requirement

of division (A) of this section, the commission shall assess a forfeiture on the utility

as provided under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code , either in the amount, per day per undercompliance or noncompliance, relative to

the period of the report, equal to that prescribed for noncompliances under section 4905.54 of the Revised Code , or in an amount equal to the then existing market value of one renewable energy

credit per megawatt hour of undercompliance or noncompliance.  Revenue from any forfeiture assessed under this division shall be deposited to the

credit of the advanced energy fund created under section 4928.61 of the Revised Code . (D) The commission may establish rules regarding the content of an application by an

electric distribution utility for commission approval of a revenue decoupling mechanism

under this division.  Such an application shall not be considered an application to increase rates and

may be included as part of a proposal to establish, continue, or expand energy efficiency

or conservation programs.  The commission by order may approve an application under this division if it determines

both that the revenue decoupling mechanism provides for the recovery of revenue that

otherwise may be forgone by the utility as a result of or in connection with the implementation

by the electric distribution utility of any energy efficiency or energy conservation

programs and reasonably aligns the interests of the utility and of its customers in

favor of those programs. (E) The commission additionally shall adopt rules that require an electric distribution

utility to provide a customer upon request with two years' consumption data in an

accessible form. (F)(1) As used in divisions (F)(2), (3), and (4) of this section, “portfolio plan” has the

same meaning as in division (C)(1) of section 4928.6610 of the Revised Code . (2) If an electric distribution utility has a portfolio plan in effect as of October

22, 2019, and that plan expires before December 31, 2020, the commission shall extend

the plan through that date.  All portfolio plans shall terminate on that date. (3) If a portfolio plan is extended beyond its commission approved term by division (F)(2)

of this section, the existing plan's budget shall be increased for the extended term

to include an amount equal to the annual average of the approved budget for all years

of the portfolio plan in effect as of October 22, 2019. (4) All other terms and conditions of a portfolio plan extended beyond its commission-approved

term by division (F)(2) of this section shall remain the same unless changes are authorized

by the commission. (G)(1) Not later than February 1, 2021, the commission shall determine the cumulative energy

savings collectively achieved, since 2009, by all electric distribution utilities

in this state as of December 31, 2020.  In determining that cumulative total, the commission shall do both of the following: (a) Include energy savings that were estimated by the commission to be achieved as of

December 31, 2020, and banked under division (G) of section 4928.662 of the Revised Code ; (b) Use an energy savings baseline that is the average of the total kilowatt hours sold

by all electric distribution utilities in this state in the calendar years 2018, 2019,

and 2020.  The baseline shall exclude the load and usage described in division (A)(2)(a)(i),

(ii), and (iii) of this section.  That baseline may also be reduced for new economic growth in the utility's certified

territory as provided in division (A)(2)(a) of this section and adjusted and normalized

as provided in division (A)(2)(c) of this section. (2)(a) If the cumulative energy savings collectively achieved as determined by the commission

under division (G)(1) of this section is at least seventeen and one-half per cent

of the baseline described in division (G)(1)(b) of this section, then full compliance

with division (A)(1)(a) of this section shall be deemed to have been achieved notwithstanding

any provision of this section to the contrary. (b) If the cumulative energy savings collectively achieved as determined by the commission

under division (G)(1) of this section is less than seventeen and one-half per cent

of the baseline described in division (G)(1)(b) of this section, then both of the

following shall apply: (i) The commission shall determine the manner in which further implementation of energy

efficiency programs shall occur as may be reasonably necessary for collective achievement

of cumulative energy savings equal to seventeen and one-half per cent, and not more,

of the baseline described in division (G)(1)(b) of this section. (ii) Full compliance with division (A)(1)(a) of this section shall be deemed to be achieved

as of a date certain established by the commission notwithstanding any provision of

this section to the contrary. (3) Upon the date that full compliance with division (A)(1)(a) of this section is deemed

achieved under division (G)(2)(a) or (b) of this section, any electric distribution

utility cost recovery mechanisms authorized by the commission for compliance with

this section shall terminate except as may be necessary to reconcile the difference

between revenue collected and the allowable cost of compliance associated with compliance

efforts occurring prior to December 31, 2021, for programs re-established under section 4928.661 of the Revised Code , and prior to the date upon which full compliance with division (A)(1)(a) of this

section is deemed achieved, for all other compliance efforts.  No such cost recovery mechanism shall be authorized by the commission beyond the

period of time required to complete this final reconciliation.