Bill Text: OH SB310 | 2013-2014 | 130th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: To make changes to the renewable energy, energy efficiency, and peak demand reduction requirements, to prohibit the imposition of a waiting period before enrolling an eligible customer in the percentage of income payment plan, and to create a study committee.
Spectrum: Partisan Bill (Republican 18-0)
Status: (Passed) 2014-09-12 - Effective Date [SB310 Detail]
Download: Ohio-2013-SB310-Introduced.html
As Introduced
A BILL
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Bill Title: To make changes to the renewable energy, energy efficiency, and peak demand reduction requirements, to prohibit the imposition of a waiting period before enrolling an eligible customer in the percentage of income payment plan, and to create a study committee.
Spectrum: Partisan Bill (Republican 18-0)
Status: (Passed) 2014-09-12 - Effective Date [SB310 Detail]
Download: Ohio-2013-SB310-Introduced.html
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Senator Balderson
To amend sections 4928.20, 4928.64, 4928.65, and | 1 |
4928.66 and to enact sections 4928.641 and | 2 |
4928.661 of the Revised Code to make changes to | 3 |
the renewable energy, energy efficiency, and peak | 4 |
demand reduction requirements and to create a | 5 |
study committee. | 6 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4928.20, 4928.64, 4928.65, and | 7 |
4928.66 be amended and sections 4928.641 and 4928.661 of the | 8 |
Revised Code be enacted to read as follows: | 9 |
Sec. 4928.20. (A) The legislative authority of a municipal | 10 |
corporation may adopt an ordinance, or the board of township | 11 |
trustees of a township or the board of county commissioners of a | 12 |
county may adopt a resolution, under which, on or after the | 13 |
starting date of competitive retail electric service, it may | 14 |
aggregate in accordance with this section the retail electrical | 15 |
loads located, respectively, within the municipal corporation, | 16 |
township, or unincorporated area of the county and, for that | 17 |
purpose, may enter into service agreements to facilitate for those | 18 |
loads the sale and purchase of electricity. The legislative | 19 |
authority or board also may exercise such authority jointly with | 20 |
any other such legislative authority or board. For customers that | 21 |
are not mercantile customers, an ordinance or resolution under | 22 |
this division shall specify whether the aggregation will occur | 23 |
only with the prior, affirmative consent of each person owning, | 24 |
occupying, controlling, or using an electric load center proposed | 25 |
to be aggregated or will occur automatically for all such persons | 26 |
pursuant to the opt-out requirements of division (D) of this | 27 |
section. The aggregation of mercantile customers shall occur only | 28 |
with the prior, affirmative consent of each such person owning, | 29 |
occupying, controlling, or using an electric load center proposed | 30 |
to be aggregated. Nothing in this division, however, authorizes | 31 |
the aggregation of the retail electric loads of an electric load | 32 |
center, as defined in section 4933.81 of the Revised Code, that is | 33 |
located in the certified territory of a nonprofit electric | 34 |
supplier under sections 4933.81 to 4933.90 of the Revised Code or | 35 |
an electric load center served by transmission or distribution | 36 |
facilities of a municipal electric utility. | 37 |
(B) If an ordinance or resolution adopted under division (A) | 38 |
of this section specifies that aggregation of customers that are | 39 |
not mercantile customers will occur automatically as described in | 40 |
that division, the ordinance or resolution shall direct the board | 41 |
of elections to submit the question of the authority to aggregate | 42 |
to the electors of the respective municipal corporation, township, | 43 |
or unincorporated area of a county at a special election on the | 44 |
day of the next primary or general election in the municipal | 45 |
corporation, township, or county. The legislative authority or | 46 |
board shall certify a copy of the ordinance or resolution to the | 47 |
board of elections not less than ninety days before the day of the | 48 |
special election. No ordinance or resolution adopted under | 49 |
division (A) of this section that provides for an election under | 50 |
this division shall take effect unless approved by a majority of | 51 |
the electors voting upon the ordinance or resolution at the | 52 |
election held pursuant to this division. | 53 |
(C) Upon the applicable requisite authority under divisions | 54 |
(A) and (B) of this section, the legislative authority or board | 55 |
shall develop a plan of operation and governance for the | 56 |
aggregation program so authorized. Before adopting a plan under | 57 |
this division, the legislative authority or board shall hold at | 58 |
least two public hearings on the plan. Before the first hearing, | 59 |
the legislative authority or board shall publish notice of the | 60 |
hearings once a week for two consecutive weeks in a newspaper of | 61 |
general circulation in the jurisdiction or as provided in section | 62 |
7.16 of the Revised Code. The notice shall summarize the plan and | 63 |
state the date, time, and location of each hearing. | 64 |
(D) No legislative authority or board, pursuant to an | 65 |
ordinance or resolution under divisions (A) and (B) of this | 66 |
section that provides for automatic aggregation of customers that | 67 |
are not mercantile customers as described in division (A) of this | 68 |
section, shall aggregate the electrical load of any electric load | 69 |
center located within its jurisdiction unless it in advance | 70 |
clearly discloses to the person owning, occupying, controlling, or | 71 |
using the load center that the person will be enrolled | 72 |
automatically in the aggregation program and will remain so | 73 |
enrolled unless the person affirmatively elects by a stated | 74 |
procedure not to be so enrolled. The disclosure shall state | 75 |
prominently the rates, charges, and other terms and conditions of | 76 |
enrollment. The stated procedure shall allow any person enrolled | 77 |
in the aggregation program the opportunity to opt out of the | 78 |
program every three years, without paying a switching fee. Any | 79 |
such person that opts out before the commencement of the | 80 |
aggregation program pursuant to the stated procedure shall default | 81 |
to the standard service offer provided under section 4928.14 or | 82 |
division (D) of section 4928.35 of the Revised Code until the | 83 |
person chooses an alternative supplier. | 84 |
(E)(1) With respect to a governmental aggregation for a | 85 |
municipal corporation that is authorized pursuant to divisions (A) | 86 |
to (D) of this section, resolutions may be proposed by initiative | 87 |
or referendum petitions in accordance with sections 731.28 to | 88 |
731.41 of the Revised Code. | 89 |
(2) With respect to a governmental aggregation for a township | 90 |
or the unincorporated area of a county, which aggregation is | 91 |
authorized pursuant to divisions (A) to (D) of this section, | 92 |
resolutions may be proposed by initiative or referendum petitions | 93 |
in accordance with sections 731.28 to 731.40 of the Revised Code, | 94 |
except that: | 95 |
(a) The petitions shall be filed, respectively, with the | 96 |
township fiscal officer or the board of county commissioners, who | 97 |
shall perform those duties imposed under those sections upon the | 98 |
city auditor or village clerk. | 99 |
(b) The petitions shall contain the signatures of not less | 100 |
than ten per cent of the total number of electors in, | 101 |
respectively, the township or the unincorporated area of the | 102 |
county who voted for the office of governor at the preceding | 103 |
general election for that office in that area. | 104 |
(F) A governmental aggregator under division (A) of this | 105 |
section is not a public utility engaging in the wholesale purchase | 106 |
and resale of electricity, and provision of the aggregated service | 107 |
is not a wholesale utility transaction. A governmental aggregator | 108 |
shall be subject to supervision and regulation by the public | 109 |
utilities commission only to the extent of any competitive retail | 110 |
electric service it provides and commission authority under this | 111 |
chapter. | 112 |
(G) This section does not apply in the case of a municipal | 113 |
corporation that supplies such aggregated service to electric load | 114 |
centers to which its municipal electric utility also supplies a | 115 |
noncompetitive retail electric service through transmission or | 116 |
distribution facilities the utility singly or jointly owns or | 117 |
operates. | 118 |
(H) A governmental aggregator shall not include in its | 119 |
aggregation the accounts of any of the following: | 120 |
(1) A customer that has opted out of the aggregation; | 121 |
(2) A customer in contract with a certified electric services | 122 |
company; | 123 |
(3) A customer that has a special contract with an electric | 124 |
distribution utility; | 125 |
(4) A customer that is not located within the governmental | 126 |
aggregator's governmental boundaries; | 127 |
(5) Subject to division (C) of section 4928.21 of the Revised | 128 |
Code, a customer who appears on the "do not aggregate" list | 129 |
maintained under that section. | 130 |
(I) Customers that are part of a governmental aggregation | 131 |
under this section shall be responsible only for such portion of a | 132 |
surcharge under section 4928.144 of the Revised Code that is | 133 |
proportionate to the benefits, as determined by the commission, | 134 |
that electric load centers within the jurisdiction of the | 135 |
governmental aggregation as a group receive. The proportionate | 136 |
surcharge so established shall apply to each customer of the | 137 |
governmental aggregation while the customer is part of that | 138 |
aggregation. If a customer ceases being such a customer, the | 139 |
otherwise applicable surcharge shall apply. Nothing in this | 140 |
section shall result in less than full recovery by an electric | 141 |
distribution utility of any surcharge authorized under section | 142 |
4928.144 of the Revised Code. Nothing in this section shall result | 143 |
in less than the full and timely imposition, charging, collection, | 144 |
and adjustment by an electric distribution utility, its assignee, | 145 |
or any collection agent, of the phase-in-recovery charges | 146 |
authorized pursuant to a final financing order issued pursuant to | 147 |
sections 4928.23 to 4928.2318 of the Revised Code. | 148 |
(J) On behalf of the customers that are part of a | 149 |
governmental aggregation under this section and by filing written | 150 |
notice with the public utilities commission, the legislative | 151 |
authority that formed or is forming that governmental aggregation | 152 |
may elect not to receive standby service within the meaning of | 153 |
division (B)(2)(d) of section 4928.143 of the Revised Code from an | 154 |
electric distribution utility in whose certified territory the | 155 |
governmental aggregation is located and that operates under an | 156 |
approved electric security plan under that section. Upon the | 157 |
filing of that notice, the electric distribution utility shall not | 158 |
charge any such customer to whom competitive retail electric | 159 |
generation service is provided by another supplier under the | 160 |
governmental aggregation for the standby service. Any such | 161 |
consumer that returns to the utility for competitive retail | 162 |
electric service shall pay the market price of power incurred by | 163 |
the utility to serve that consumer plus any amount attributable to | 164 |
the utility's cost of compliance with the | 165 |
energy resource provisions of section 4928.64 of the Revised Code | 166 |
to serve the consumer. Such market price shall include, but not be | 167 |
limited to, capacity and energy charges; all charges associated | 168 |
with the provision of that power supply through the regional | 169 |
transmission organization, including, but not limited to, | 170 |
transmission, ancillary services, congestion, and settlement and | 171 |
administrative charges; and all other costs incurred by the | 172 |
utility that are associated with the procurement, provision, and | 173 |
administration of that power supply, as such costs may be approved | 174 |
by the commission. The period of time during which the market | 175 |
price and | 176 |
assessed on the consumer shall be from the time the consumer so | 177 |
returns to the electric distribution utility until the expiration | 178 |
of the electric security plan. However, if that period of time is | 179 |
expected to be more than two years, the commission may reduce the | 180 |
time period to a period of not less than two years. | 181 |
(K) The commission shall adopt rules to encourage and promote | 182 |
large-scale governmental aggregation in this state. For that | 183 |
purpose, the commission shall conduct an immediate review of any | 184 |
rules it has adopted for the purpose of this section that are in | 185 |
effect on the effective date of the amendment of this section by | 186 |
S.B. 221 of the 127th general assembly, July 31, 2008. Further, | 187 |
within the context of an electric security plan under section | 188 |
4928.143 of the Revised Code, the commission shall consider the | 189 |
effect on large-scale governmental aggregation of any | 190 |
nonbypassable generation charges, however collected, that would be | 191 |
established under that plan, except any nonbypassable generation | 192 |
charges that relate to any cost incurred by the electric | 193 |
distribution utility, the deferral of which has been authorized by | 194 |
the commission prior to the effective date of the amendment of | 195 |
this section by S.B. 221 of the 127th general assembly, July 31, | 196 |
2008. | 197 |
Sec. 4928.64. (A)(1) As used in | 198 |
199 | |
renewable energy resource" means | 200 |
renewable energy resource, as defined in section 4928.01 of the | 201 |
Revised Code that has a placed-in-service date of January 1, 1998, | 202 |
or after; a renewable energy resource created on or after January | 203 |
1, 1998, by the modification or retrofit of any facility placed in | 204 |
service prior to January 1, 1998; or a mercantile customer-sited | 205 |
206 | |
or existing, that the mercantile customer commits for integration | 207 |
into the electric distribution utility's demand-response, energy | 208 |
efficiency, or peak demand reduction programs as provided under | 209 |
division (A)(2)(c) of section 4928.66 of the Revised Code, | 210 |
including, but not limited to, any of the following: | 211 |
(a) A resource that has the effect of improving the | 212 |
relationship between real and reactive power; | 213 |
(b) A resource that makes efficient use of waste heat or | 214 |
other thermal capabilities owned or controlled by a mercantile | 215 |
customer; | 216 |
(c) Storage technology that allows a mercantile customer more | 217 |
flexibility to modify its demand or load and usage | 218 |
characteristics; | 219 |
(d) Electric generation equipment owned or controlled by a | 220 |
mercantile customer that uses | 221 |
renewable energy resource | 222 |
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(2) For the purpose of this section and as it considers | 229 |
appropriate, the public utilities commission may classify any new | 230 |
technology as such | 231 |
renewable energy resource. | 232 |
(B)(1) By | 233 |
utility shall provide from | 234 |
resources, including, at its discretion, | 235 |
renewable energy resources obtained pursuant to an electricity | 236 |
supply contract, a portion of the electricity supply required for | 237 |
its standard service offer under section 4928.141 of the Revised | 238 |
Code, and an electric services company shall provide a portion of | 239 |
its electricity supply for retail consumers in this state from | 240 |
241 | |
its discretion, | 242 |
obtained pursuant to an electricity supply contract. That portion | 243 |
shall equal | 244 |
number of kilowatt hours of electricity sold by the subject | 245 |
utility or company to any and all retail electric consumers whose | 246 |
electric load centers are served by that utility and are located | 247 |
within the utility's certified territory or, in the case of an | 248 |
electric services company, are served by the company and are | 249 |
located within this state. However, nothing in this section | 250 |
precludes a utility or company from providing a greater | 251 |
percentage. The baseline for a utility's or company's compliance | 252 |
with the | 253 |
this section shall be the average of such total kilowatt hours it | 254 |
sold in the preceding three calendar years, except that the | 255 |
commission may reduce a utility's or company's baseline to adjust | 256 |
for new economic growth in the utility's certified territory or, | 257 |
in the case of an electric services company, in the company's | 258 |
service area in this state. | 259 |
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(2) | 263 |
of this section shall | 264 |
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cent from solar energy resources | 266 |
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(3) At least one-half of the qualifying renewable energy | 285 |
resources implemented by the utility or company shall be met | 286 |
through facilities located in this state; the remainder shall be | 287 |
met with resources that can be shown to be deliverable into this | 288 |
state. | 289 |
(C)(1) The commission annually shall review an electric | 290 |
distribution utility's or electric services company's compliance | 291 |
with the | 292 |
requirements under divisions (B)(1) and (2) of this section and, | 293 |
in the course of that review, shall identify any undercompliance | 294 |
or noncompliance of the utility or company that it determines is | 295 |
weather-related, related to equipment or resource shortages for | 296 |
297 | |
applicable, or is otherwise outside the utility's or company's | 298 |
control. | 299 |
(2) Subject to the cost cap provisions of division (C)(3) of | 300 |
this section, if the commission determines, after notice and | 301 |
opportunity for hearing, and based upon its findings in that | 302 |
review regarding avoidable undercompliance or noncompliance, but | 303 |
subject to division (C)(4) of this section, that the utility or | 304 |
company has failed to comply with | 305 |
requirements under divisions (B)(1) and (2) of this section, the | 306 |
commission shall impose a renewable energy compliance payment on | 307 |
the utility or company. | 308 |
(a) The compliance payment pertaining to the solar energy | 309 |
resource | 310 |
section shall be | 311 |
of undercompliance or noncompliance in the period under review | 312 |
313 | |
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315 | |
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(b) The compliance payment pertaining to the renewable energy | 317 |
resource | 318 |
section shall equal the number of additional renewable energy | 319 |
credits that the electric distribution utility or electric | 320 |
services company would have needed to comply with the | 321 |
322 | |
that shall begin at forty-five dollars and shall be adjusted | 323 |
annually by the commission to reflect any change in the consumer | 324 |
price index as defined in section 101.27 of the Revised Code, but | 325 |
shall not be less than forty-five dollars. | 326 |
(c) The compliance payment shall not be passed through by the | 327 |
electric distribution utility or electric services company to | 328 |
consumers. The compliance payment shall be remitted to the | 329 |
commission, for deposit to the credit of the advanced energy fund | 330 |
created under section 4928.61 of the Revised Code. Payment of the | 331 |
compliance payment shall be subject to such collection and | 332 |
enforcement procedures as apply to the collection of a forfeiture | 333 |
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code. | 334 |
(3) An electric distribution utility or an electric services | 335 |
company | 336 |
337 | |
338 | |
339 | |
340 | |
341 | |
342 | |
continue to comply, or be subject to any obligation to continue to | 343 |
comply, in any year, with a requirement under division (B)(1) or | 344 |
(2) of this section, if continued compliance for that year would | 345 |
exceed a cost cap that equals the product of three per cent | 346 |
multiplied by the sales supply amount. The sales supply amount is | 347 |
the product of the sales baseline multiplied by the generation | 348 |
supply dollar amount. For purposes of division (C)(3) of this | 349 |
section: | 350 |
(a) "Sales baseline" means the sales baseline in megawatt | 351 |
hours for the applicable compliance year, which consists of an | 352 |
average of the utility's or company's annual retail sales of | 353 |
electricity sold in the state from the three preceding years. | 354 |
(b) "Generation supply dollar amount" means the reasonably | 355 |
expected dollar amount per megawatt hour for the generation supply | 356 |
available to consumers pursuant to section 4928.141 of the Revised | 357 |
Code during the applicable compliance year, which consists of a | 358 |
weighted average of the cost of the standard service offer supply | 359 |
for delivery during that compliance year, net of distribution | 360 |
losses. With respect to an electric services company, generation | 361 |
supply dollar amount means the average weighted cost of generation | 362 |
supply of the relevant electric distribution utility. | 363 |
(c) In making the calculation under division (C)(3) of this | 364 |
section, any exemption from taxes and assessments granted under | 365 |
section 5727.75 of the Revised Code shall be treated as if it had | 366 |
not been granted. | 367 |
(4)(a) An electric distribution utility or electric services | 368 |
company may request the commission to make a force majeure | 369 |
determination pursuant to this division regarding all or part of | 370 |
the utility's or company's compliance with any minimum | 371 |
requirement under division (B)(1) or (2) of this section during | 372 |
the period of review occurring pursuant to division (C)(2) of this | 373 |
section. The commission may require the electric distribution | 374 |
utility or electric services company to make solicitations for | 375 |
renewable energy resource credits as part of its default service | 376 |
before the utility's or company's request of force majeure under | 377 |
this division can be made. | 378 |
(b) Within ninety days after the filing of a request by an | 379 |
electric distribution utility or electric services company under | 380 |
division (C)(4)(a) of this section, the commission shall determine | 381 |
if qualifying renewable energy resources are reasonably available | 382 |
in the marketplace in sufficient quantities for the utility or | 383 |
company to comply with the | 384 |
during the review period. In making this determination, the | 385 |
commission shall consider whether the electric distribution | 386 |
utility or electric services company has made a good faith effort | 387 |
to acquire sufficient qualifying renewable energy or, as | 388 |
applicable, solar energy resources to so comply, including, but | 389 |
not limited to, by banking or seeking renewable energy resource | 390 |
credits or by seeking the resources through long-term contracts. | 391 |
Additionally, the commission shall consider the availability of | 392 |
qualifying renewable energy or solar energy resources in this | 393 |
state and other jurisdictions in the PJM interconnection regional | 394 |
transmission organization or its successor and the | 395 |
midcontinent independent system operator or its successor. | 396 |
(c) If, pursuant to division (C)(4)(b) of this section, the | 397 |
commission determines that qualifying renewable energy or solar | 398 |
energy resources are not reasonably available to permit the | 399 |
electric distribution utility or electric services company to | 400 |
comply, during the period of review, with the | 401 |
402 | |
and (2) of this section, the commission shall modify that | 403 |
compliance obligation of the utility or company as it determines | 404 |
appropriate to accommodate the finding. Commission modification | 405 |
shall not automatically reduce the obligation for the electric | 406 |
distribution utility's or electric services company's compliance | 407 |
in subsequent years. If it modifies the electric distribution | 408 |
utility or electric services company obligation under division | 409 |
(C)(4)(c) of this section, the commission may require the utility | 410 |
or company, if sufficient renewable energy resource credits exist | 411 |
in the marketplace, to acquire additional renewable energy | 412 |
resource credits in subsequent years equivalent to the utility's | 413 |
or company's modified obligation under division (C)(4)(c) of this | 414 |
section. | 415 |
(5) The commission shall establish a process to provide for | 416 |
at least an annual review of the | 417 |
resource market in this state and in the service territories of | 418 |
the regional transmission organizations that manage transmission | 419 |
systems located in this state. The commission shall use the | 420 |
results of this study to identify any needed changes to the amount | 421 |
of the renewable energy compliance payment specified under | 422 |
divisions (C)(2)(a) and (b) of this section. Specifically, the | 423 |
commission may increase the amount to ensure that payment of | 424 |
compliance payments is not used to achieve compliance with this | 425 |
section in lieu of actually acquiring or realizing energy derived | 426 |
from qualifying renewable energy resources. However, if the | 427 |
commission finds that the amount of the compliance payment should | 428 |
be otherwise changed, the commission shall present this finding to | 429 |
the general assembly for legislative enactment. | 430 |
(D) | 431 |
assembly in accordance with section 101.68 of the Revised Code a | 432 |
report describing all of the following: | 433 |
| 434 |
electric services companies with division (B) of this section; | 435 |
| 436 |
purchased by utilities and companies for the year covered in the | 437 |
report; | 438 |
| 439 |
encouraging the use of | 440 |
resources in supplying this state's electricity needs in a manner | 441 |
that considers available technology, costs, job creation, and | 442 |
economic impacts. | 443 |
The commission shall begin providing the information | 444 |
described in division (D) | 445 |
submitted after | 446 |
447 | |
2012. The commission shall allow and consider public comments on | 448 |
the report prior to its submission to the general assembly. | 449 |
Nothing in the report shall be binding on any person, including | 450 |
any utility or company for the purpose of its compliance with any | 451 |
452 | |
enforcement of that provision under division (C) of this section. | 453 |
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459 | |
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(E) All costs incurred by an electric distribution utility in | 461 |
complying with the requirements of this section shall be | 462 |
bypassable by any consumer that has exercised choice of supplier | 463 |
under section 4928.03 of the Revised Code. | 464 |
Sec. 4928.641. If an electric distribution utility has | 465 |
executed a contract to procure renewable energy resources and | 466 |
there are ongoing costs associated with that contract that are | 467 |
being recovered from customers through a bypassable charge as of | 468 |
the effective date of ...B... of the 130th general assembly, that | 469 |
cost recovery shall continue until the costs associated with the | 470 |
contract are fully recovered. This division applies regardless of | 471 |
whether the utility has, in any year, met the cost cap under | 472 |
division (C)(3) of section 4928.64 of the Revised Code. | 473 |
Sec. 4928.65. An electric distribution utility or electric | 474 |
services company may use renewable energy credits any time in the | 475 |
five calendar years following the date of their purchase or | 476 |
acquisition from any entity, including, but not limited to, a | 477 |
mercantile customer or an owner or operator of a hydroelectric | 478 |
generating facility that is located at a dam on a river, or on any | 479 |
water discharged to a river, that is within or bordering this | 480 |
state or within or bordering an adjoining state, for the purpose | 481 |
of complying with the renewable energy and solar energy resource | 482 |
requirements of
| 483 |
4928.64 of the Revised Code. The public utilities commission shall | 484 |
adopt rules specifying that one unit of credit shall equal one | 485 |
megawatt hour of electricity derived from renewable energy | 486 |
resources, except that, for a generating facility of seventy-five | 487 |
megawatts or greater that is situated within this state and has | 488 |
committed by December 31, 2009, to modify or retrofit its | 489 |
generating unit or units to enable the facility to generate | 490 |
principally from biomass energy by June 30, 2013, each megawatt | 491 |
hour of electricity generated principally from that biomass energy | 492 |
shall equal, in units of credit, the product obtained by | 493 |
multiplying the actual percentage of biomass feedstock heat input | 494 |
used to generate such megawatt hour by the quotient obtained by | 495 |
dividing the then existing unit dollar amount used to determine a | 496 |
renewable energy compliance payment as provided under division | 497 |
(C)(2)(b) of section 4928.64 of the Revised Code by the then | 498 |
existing market value of one renewable energy credit, but such | 499 |
megawatt hour shall not equal less than one unit of credit. The | 500 |
rules also shall provide for this state a system of registering | 501 |
renewable energy credits by specifying which of any generally | 502 |
available registries shall be used for that purpose and not by | 503 |
creating a registry. That selected system of registering renewable | 504 |
energy credits shall allow a hydroelectric generating facility to | 505 |
be eligible for obtaining renewable energy credits and shall allow | 506 |
customer-sited projects or actions the broadest opportunities to | 507 |
be eligible for obtaining renewable energy credits. | 508 |
Sec. 4928.66. (A)(1)(a) Beginning in 2009, an electric | 509 |
distribution utility shall implement energy efficiency programs | 510 |
that achieve energy savings equivalent to at least three-tenths of | 511 |
one per cent of the total, annual average, and normalized | 512 |
kilowatt-hour sales of the electric distribution utility during | 513 |
the preceding three calendar years to customers in this state. An | 514 |
energy efficiency program may include a combined heat and power | 515 |
system placed into service or retrofitted on or after the | 516 |
effective date of the amendment of this section by S.B. 315 of the | 517 |
129th general assembly, September 10, 2012, or a waste energy | 518 |
recovery system placed into service or retrofitted on or after | 519 |
520 | |
system described in division (A)(38)(b) of section 4928.01 of the | 521 |
Revised Code may be included only if it was placed into service | 522 |
between January 1, 2002, and December 31, 2004. For a waste energy | 523 |
recovery or combined heat and power system, the savings shall be | 524 |
as estimated by the public utilities commission. The savings | 525 |
requirement, using such a three-year average, shall increase to an | 526 |
additional five-tenths of one per cent in 2010, seven-tenths of | 527 |
one per cent in 2011, eight-tenths of one per cent in 2012, | 528 |
nine-tenths of one per cent in 2013, and one per cent | 529 |
530 | |
531 | |
requirement shall be four and two-tenths of one per cent
| 532 |
533 | |
this section for energy savings. For purposes of a waste energy | 534 |
recovery or combined heat and power system, an electric | 535 |
distribution utility shall not apply more than the total annual | 536 |
percentage of the electric distribution utility's | 537 |
industrial-customer load, relative to the electric distribution | 538 |
utility's total load, to the annual energy savings requirement. | 539 |
(b) Beginning in 2009, an electric distribution utility shall | 540 |
implement peak demand reduction programs designed to achieve a one | 541 |
per cent reduction in peak demand in 2009 and an additional | 542 |
seventy-five hundredths of one per cent reduction each year | 543 |
through | 544 |
545 | |
546 | |
547 |
(2) For the purposes of divisions (A)(1)(a) and (b) of this | 548 |
section: | 549 |
(a) The baseline for energy savings under division (A)(1)(a) | 550 |
of this section shall be the average of the total kilowatt hours | 551 |
the electric distribution utility sold in the preceding three | 552 |
calendar years, and the baseline for a peak demand reduction under | 553 |
division (A)(1)(b) of this section shall be the average peak | 554 |
demand on the utility in the preceding three calendar years, | 555 |
except that the commission may reduce either baseline to adjust | 556 |
for new economic growth in the utility's certified territory. | 557 |
(b) The commission may amend the benchmarks set forth in | 558 |
division (A)(1)(a) or (b) of this section if, after application by | 559 |
the electric distribution utility, the commission determines that | 560 |
the amendment is necessary because the utility cannot reasonably | 561 |
achieve the benchmarks due to regulatory, economic, or | 562 |
technological reasons beyond its reasonable control. | 563 |
(c) Compliance with divisions (A)(1)(a) and (b) of this | 564 |
section shall be measured by including the effects of all | 565 |
demand-response programs for mercantile customers of the subject | 566 |
electric distribution utility, all waste energy recovery systems | 567 |
and all combined heat and power systems, and all such mercantile | 568 |
customer-sited energy efficiency, including waste energy recovery | 569 |
and combined heat and power, and peak demand reduction programs, | 570 |
adjusted upward by the appropriate loss factors. Any mechanism | 571 |
designed to recover the cost of energy efficiency, including waste | 572 |
energy recovery and combined heat and power, and peak demand | 573 |
reduction programs under divisions (A)(1)(a) and (b) of this | 574 |
section may exempt mercantile customers that commit their | 575 |
demand-response or other customer-sited capabilities, whether | 576 |
existing or new, for integration into the electric distribution | 577 |
utility's demand-response, energy efficiency, including waste | 578 |
energy recovery and combined heat and power, or peak demand | 579 |
reduction programs, if the commission determines that that | 580 |
exemption reasonably encourages such customers to commit those | 581 |
capabilities to those programs. If a mercantile customer makes | 582 |
such existing or new demand-response, energy efficiency, including | 583 |
waste energy recovery and combined heat and power, or peak demand | 584 |
reduction capability available to an electric distribution utility | 585 |
pursuant to division (A)(2)(c) of this section, the electric | 586 |
utility's baseline under division (A)(2)(a) of this section shall | 587 |
be adjusted to exclude the effects of all such demand-response, | 588 |
energy efficiency, including waste energy recovery and combined | 589 |
heat and power, or peak demand reduction programs that may have | 590 |
existed during the period used to establish the baseline. The | 591 |
baseline also shall be normalized for changes in numbers of | 592 |
customers, sales, weather, peak demand, and other appropriate | 593 |
factors so that the compliance measurement is not unduly | 594 |
influenced by factors outside the control of the electric | 595 |
distribution utility. | 596 |
(d) Programs implemented by a utility may include | 597 |
demand-response programs grid investment programs, provided that | 598 |
such programs are demonstrated to be cost-beneficial, | 599 |
customer-sited programs, including waste energy recovery and | 600 |
combined heat and power systems, and transmission and distribution | 601 |
infrastructure improvements that reduce line losses. Division | 602 |
(A)(2)(c) of this section shall be applied to include facilitating | 603 |
efforts by a mercantile customer or group of those customers to | 604 |
offer customer-sited demand-response, energy efficiency, including | 605 |
waste energy recovery and combined heat and power, or peak demand | 606 |
reduction capabilities to the electric distribution utility as | 607 |
part of a reasonable arrangement submitted to the commission | 608 |
pursuant to section 4905.31 of the Revised Code. | 609 |
(e) No programs or improvements described in division | 610 |
(A)(2)(d) of this section shall conflict with any statewide | 611 |
building code adopted by the board of building standards. | 612 |
(B) In accordance with rules it shall adopt, the public | 613 |
utilities commission shall produce and docket at the commission an | 614 |
annual report containing the results of its verification of the | 615 |
annual levels of energy efficiency and of peak demand reductions | 616 |
achieved by each electric distribution utility pursuant to | 617 |
division (A) of this section. A copy of the report shall be | 618 |
provided to the consumers' counsel. | 619 |
(C) If the commission determines, after notice and | 620 |
opportunity for hearing and based upon its report under division | 621 |
(B) of this section, that an electric distribution utility has | 622 |
failed to comply with an energy efficiency or peak demand | 623 |
reduction requirement of division (A) of this section, the | 624 |
commission shall assess a forfeiture on the utility as provided | 625 |
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code, | 626 |
either in the amount, per day per undercompliance or | 627 |
noncompliance, relative to the period of the report, equal to that | 628 |
prescribed for noncompliances under section 4905.54 of the Revised | 629 |
Code, or in an amount equal to the then existing market value of | 630 |
one renewable energy credit per megawatt hour of undercompliance | 631 |
or noncompliance. Revenue from any forfeiture assessed under this | 632 |
division shall be deposited to the credit of the advanced energy | 633 |
fund created under section 4928.61 of the Revised Code. | 634 |
(D) The commission may establish rules regarding the content | 635 |
of an application by an electric distribution utility for | 636 |
commission approval of a revenue decoupling mechanism under this | 637 |
division. Such an application shall not be considered an | 638 |
application to increase rates and may be included as part of a | 639 |
proposal to establish, continue, or expand energy efficiency or | 640 |
conservation programs. The commission by order may approve an | 641 |
application under this division if it determines both that the | 642 |
revenue decoupling mechanism provides for the recovery of revenue | 643 |
that otherwise may be forgone by the utility as a result of or in | 644 |
connection with the implementation by the electric distribution | 645 |
utility of any energy efficiency or energy conservation programs | 646 |
and reasonably aligns the interests of the utility and of its | 647 |
customers in favor of those programs. | 648 |
(E) The commission additionally shall adopt rules that | 649 |
require an electric distribution utility to provide a customer | 650 |
upon request with two years' consumption data in an accessible | 651 |
form. | 652 |
Sec. 4928.661. (A) Not later than January 1, 2015, the | 653 |
public utilities commission shall adopt rules governing the | 654 |
disclosure of the costs to customers of the renewable energy | 655 |
resource and energy efficiency savings requirements of sections | 656 |
4928.64 and 4928.66 of the Revised Code. The rules shall include | 657 |
both of the following requirements: | 658 |
(1) That every electric distribution utility list, on all | 659 |
customer bills, the cost to each individual customer of the | 660 |
utility's compliance with both of the following for the applicable | 661 |
billing period: | 662 |
(a) The renewable energy resource requirements under section | 663 |
4928.64 of the Revised Code; | 664 |
(b) The energy efficiency savings requirements under section | 665 |
4928.66 of the Revised Code. | 666 |
(2) That every electric services company list, on all | 667 |
customer bills, the cost to each individual customer of the | 668 |
company's compliance with the renewable energy resource | 669 |
requirements under section 4928.64 of the Revised Code for the | 670 |
applicable billing period. | 671 |
(B) The costs required to be listed under division (A)(1) of | 672 |
this section shall be listed on each customer's monthly bill as | 673 |
two distinct line items. The cost required to be listed under | 674 |
division (A)(2) of this section shall be listed on each customer's | 675 |
monthly bill as a distinct line item. | 676 |
Section 2. That existing sections 4928.20, 4928.64, 4928.65, | 677 |
and 4928.66 of the Revised Code are hereby repealed. | 678 |
Section 3. (A) There is hereby created the Energy Mandates | 679 |
Study Committee to study Ohio's renewable energy, energy | 680 |
efficiency, and peak demand reduction mandates. The Committee | 681 |
shall consist of the following members: | 682 |
(1) Five members of the House of Representatives appointed by | 683 |
the Speaker of the House of Representatives, with not more than | 684 |
three members from the same political party; | 685 |
(2) Five members of the Senate appointed by the President of | 686 |
the Senate, with not more than three members from the same | 687 |
political party; | 688 |
(3) The Chairperson of the Public Utilities Commission; | 689 |
(4) The Ohio Consumers' Counsel; | 690 |
(5) Two representatives from different electric distribution | 691 |
utilities, as defined in section 4928.01 of the Revised Code, one | 692 |
of whom shall be appointed by the Speaker of the House of | 693 |
Representatives and one of whom shall be appointed by the | 694 |
President of the Senate; | 695 |
(6) One representative from an electric services company, as | 696 |
defined in section 4928.01 of the Revised Code, jointly appointed | 697 |
by the Speaker of the House of Representatives and the President | 698 |
of the Senate; | 699 |
(7) One representative from an advocacy group that focuses on | 700 |
issues related to environmental preservation or the promotion of | 701 |
clean energy, appointed by the Governor; | 702 |
(8) One representative from an advocacy group that focuses on | 703 |
business issues for manufacturers in this state, appointed by the | 704 |
President of the Senate; | 705 |
(9) One representative of industrial customers described in | 706 |
division (A)(19) of section 4928.01 of the Revised Code, appointed | 707 |
by the President of the Senate; | 708 |
(10) One representative of the small business community, | 709 |
appointed by the President of the Senate; | 710 |
(11) One representative of the large business community, | 711 |
appointed by the Speaker of the House of Representatives; | 712 |
(12) One representative of residential consumers, as defined | 713 |
in section 4911.01 of the Revised Code, appointed by the Speaker | 714 |
of the House of Representatives. | 715 |
(B) The Speaker of the House of Representatives and the | 716 |
President of the Senate shall each appoint one legislative member | 717 |
of the Committee to serve as a cochairperson of the Committee. Any | 718 |
vacancies that occur on the Committee shall be filled in the same | 719 |
manner as the original appointment. | 720 |
(C) Not later than December 15, 2015, the Committee shall | 721 |
submit a report of its findings to the House of Representatives | 722 |
and the Senate in accordance with division (B) of section 101.68 | 723 |
of the Revised Code. The Committee shall cease to exist on | 724 |
December 16, 2015. The report shall include, at a minimum, all of | 725 |
the following: | 726 |
(1) A cost-benefit analysis of the renewable energy, energy | 727 |
efficiency, and peak demand reduction mandates, including the | 728 |
projected impact on electric customers if the mandates were to | 729 |
remain at the percentage levels required for 2014, and the | 730 |
projected impact on electric customers if the mandates were to | 731 |
return to the percentage levels required under sections 4928.64 | 732 |
and 4928.66 of the Revised Code as those sections existed prior to | 733 |
the effective date of this section; | 734 |
(2) A recommendation of the best, evidence-based standard for | 735 |
reviewing the mandates in the future, including an examination of | 736 |
readily available technology to attain such a standard; | 737 |
(3) The potential effects of an opt-in system for the | 738 |
mandates, in contrast to an opt-out system for the mandates, and a | 739 |
recommendation as to whether an opt-in system should apply to all | 740 |
electric customers, whether an opt-out system should apply to only | 741 |
industrial customers, or whether a hybrid of these two systems is | 742 |
recommended. | 743 |
Section 4. As used in Sections 5, 6, 7, 8, 9, and 10 of this | 744 |
act: | 745 |
(A) "Customer" means any retail customer of an electric | 746 |
distribution utility to which either of the following applies: | 747 |
(1) The retail customer receives service above the primary | 748 |
voltage level as determined by the utility's tariff | 749 |
classification. | 750 |
(2) The retail customer is a commercial or industrial | 751 |
customer to which both of the following apply: | 752 |
(a) The retail customer receives electricity through a meter | 753 |
of an end user or through more than one meter at a single location | 754 |
in a quantity that exceeds forty-five million kilowatt hours of | 755 |
electricity for the preceding calendar year. | 756 |
(b) The retail customer has made a written request for | 757 |
registration as a self-assessing purchaser pursuant to section | 758 |
5727.81 of the Revised Code. | 759 |
(B) "Electric distribution utility" has the same meaning as | 760 |
in section 4928.01 of the Revised Code. | 761 |
(C) "Portfolio plan" means the comprehensive energy | 762 |
efficiency and peak-demand reduction program portfolio plan | 763 |
required under rules adopted by the Public Utilities Commission | 764 |
and codified in Chapter 4901:1-39 of the Administrative Code or | 765 |
hereafter recodified or amended. | 766 |
Section 5. (A) If an electric distribution utility has a | 767 |
portfolio plan that is in effect on the effective date of this | 768 |
section, the utility shall do either of the following, at its sole | 769 |
discretion: | 770 |
(1) Continue to implement the portfolio plan with no | 771 |
amendments to the plan, for the duration that the Public Utilities | 772 |
Commission originally approved, subject to divisions (D) and (E) | 773 |
of this section; | 774 |
(2) Seek an amendment of the portfolio plan under division | 775 |
(B) of this section. | 776 |
(B)(1) An electric distribution utility that seeks to amend | 777 |
its portfolio plan under division (A)(2) of this section shall | 778 |
file an application with the Commission to amend the plan not | 779 |
later than thirty days after the effective date of this section. | 780 |
The Commission shall review the application in accordance with its | 781 |
rules as if the application were for a new portfolio plan. The | 782 |
Commission shall review and approve, or modify and approve, the | 783 |
application not later than sixty days after the date that the | 784 |
application is filed. Any portfolio plan amended under this | 785 |
division shall expire on December 31, 2016. | 786 |
(2) Section 4928.66 of the Revised Code, as amended by this | 787 |
act, shall apply to an electric distribution utility that seeks to | 788 |
amend its portfolio plan under division (B) of this section. | 789 |
(C) If an electric distribution utility fails to file an | 790 |
application to amend its portfolio plan under division (B) of this | 791 |
section within the required thirty-day period, the electric | 792 |
distribution utility shall proceed in accordance with division | 793 |
(A)(1) of this section. | 794 |
(D) If an electric distribution utility implements its | 795 |
portfolio plan under division (A)(1) of this section for the | 796 |
plan's original duration and if the plan expires before December | 797 |
31, 2016, the Commission shall automatically extend the plan | 798 |
through December 31, 2016, with no amendments to the plan. | 799 |
(E)(1) The provisions of section 4928.66 of the Revised Code, | 800 |
as it existed prior to the effective date of this section, shall | 801 |
apply to an electric distribution utility that has a portfolio | 802 |
plan that is implemented under division (A)(1) of this section for | 803 |
either of the following time periods: | 804 |
(a) The plan's original duration; | 805 |
(b) The plan's original duration and then, until December 31, | 806 |
2016, if the plan is extended under division (D) of this section. | 807 |
(2) Beginning January 1, 2017, the provisions of section | 808 |
4928.66 of the Revised Code as amended by this act shall apply to | 809 |
the electric distribution utility. | 810 |
Section 6. (A) The Public Utilities Commission shall neither | 811 |
review nor approve an application for a portfolio plan if the | 812 |
application is pending on the effective date of this section. | 813 |
(B) Prior to January 1, 2017, the Commission shall not take | 814 |
any action with regard to any portfolio plan or application | 815 |
regarding a portfolio plan except those actions expressly | 816 |
authorized or required by Section 5 of this act. | 817 |
Section 7. A customer of an electric distribution utility may | 818 |
opt out of the opportunity and ability to obtain direct benefits | 819 |
from the utility's portfolio plan that is amended under division | 820 |
(B) of Section 5 of this act. The opt out shall apply only to the | 821 |
amended plan. The opt out shall extend to all of the customer's | 822 |
accounts, irrespective of the size or service voltage level that | 823 |
are associated with the activities performed by the customer and | 824 |
that are located on or adjacent to the customer's premises. | 825 |
Section 8. Any customer electing to opt out under Section 7 | 826 |
of this act shall do so by providing a written notice of intent to | 827 |
opt out to the electric distribution utility from which it | 828 |
receives service and submitting a complete copy of the opt-out | 829 |
notice to the Secretary of the Public Utilities Commission. | 830 |
The notice provided to the utility shall include all of the | 831 |
following: | 832 |
(A) A statement indicating that the customer has elected to | 833 |
opt out; | 834 |
(B) The effective date of the election to opt out; | 835 |
(C) The account number for each customer account to which the | 836 |
opt out may apply; | 837 |
(D) The physical location of the customer's load center; | 838 |
(E) The date upon which the customer established or plans to | 839 |
establish a process and implement cost-effective measures to | 840 |
improve its energy efficiency savings. | 841 |
Section 9. Upon a customer's election to opt out under | 842 |
Section 7 of this act, no account properly identified under | 843 |
division (C) of Section 8 of this act shall be subject to any cost | 844 |
recovery mechanism under section 4928.66 of the Revised Code, as | 845 |
amended by this act, for the duration of the amended portfolio | 846 |
plan or eligible to participate in, or directly benefit from, | 847 |
programs arising from the amended portfolio plan. This section | 848 |
shall not be interpreted to exempt such an account from any other | 849 |
cost recovery mechanism, including any cost recovery mechanism | 850 |
associated with the renewable energy resource requirements | 851 |
governed by section 4928.64 of the Revised Code. | 852 |
Section 10. (A) Upon a customer's election to opt out under | 853 |
Section 7 of this act, the customer shall prepare and submit a | 854 |
report to the staff of the Public Utilities Commission. The report | 855 |
shall, for the period that the opt out is in effect, summarize the | 856 |
energy efficiency measures implemented by the customer and | 857 |
identify the cumulative energy efficiency savings achieved. The | 858 |
report shall be filed not later than January 1, 2017. | 859 |
(B) Upon submission of the report, the staff of the | 860 |
Commission may request the customer to provide additional | 861 |
information on the measures adopted by the customer and the amount | 862 |
of energy efficiency savings achieved during the period covered by | 863 |
the report. | 864 |
(C) All information contained in a report submitted under | 865 |
this section and any customer responses to requests for additional | 866 |
information shall be deemed to be confidential, proprietary, and a | 867 |
trade secret. No such information or response shall be publicly | 868 |
divulged without written authorization by the customer or used for | 869 |
any purpose other than to identify the measures adopted by the | 870 |
customer and the quantity of energy efficiency savings achieved by | 871 |
the customer. | 872 |