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Proposed PUC Rules Would Require Retail Suppliers To Reimburse Utility For Incremental Costs Incurred To Correct Improper Switches
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A proposed update to natural gas utility customer service rules in Ohio would provide that utilities may seek to recover from retail suppliers incremental costs associated with correcting an improper initiation of a switch
Specifically, a proposed new rule issued by the PUC of Ohio would provide, "If the [PUCO] staff determines that a customer's regulated sales service or competitive retail natural gas service was switched without the customer's authorization, and if the gas or natural gas company [utility] is not at fault, the gas or natural gas company [utility] may then seek reimbursement from the retail natural gas supplier or governmental aggregator that improperly initiation [sic] the switch by providing an itemized list of any incremental costs incurred by the gas or natural gas company [utility] to correct the unauthorized switch, including any switching fees."
A proposed new rule would also provide that, if the utility returns a customer to the utility's "regulated sales service" either without customer authorization or without the direction of the current supplier or PUCO, then the utility would be required to reimburse the customer, as well as the supplier for the supplier's incremental costs, as detailed below.
Note that the proposed rule's language only refers to the utility's "regulated sales service" and not the default SSO or SCO (or marketer monthly/default rate) which are in place at most of the choice LDCs in Ohio, and scheduled to be in place at all of the choice LDCs in April 2026. At some utilities, the term "regulated sales service" means service to choice-ineligible customers, though priced at the default rate (SSO or SCO)
Specifically, as proposed, if the natural gas utility switches the customer served by a retail natural gas supplier or governmental aggregator to the utility's "regulated sales service" without authorization by the customer, without authorization by the appropriate retail natural gas supplier or governmental aggregator, or without authorization from a Commission order, the utility shall:
(a) By the next billing cycle, take either of the two following actions:
(i) If reported to staff within thirty calendar days after being issued a bill from the alleged slammer, absolve the customer of any liability for any charges assessed to the customer, excluding the distribution charges, and refund to the customer any charges collected from the customer.
(ii) If reported to staff more than thirty calendar days after being issued a bill from the alleged slammer, credit the customer any fees the utility charged in excess of the amount the customer would have paid its previous provider for the same usage.
(b) If the customer cannot be returned to the original contract terms with its previous provider, the slamming utility shall credit or refund to the customer the value of the customer's contract with the previous provider by the next billing cycle and for the remaining term of the contract immediately prior to the slam.
(c) Reimburse the retail natural gas supplier or the governmental aggregator for any incremental costs incurred by the provider to correct the unauthorized switch within thirty calendar days of receiving an itemized invoice of the incurred incremental costs.
The proposed rule changes also clarify language addressing utility obligations concerning slamming, in order to cover unauthorized changes from one retail supplier to another retail supplier
Currently, when read literally, the rules' current language provides that certain utility obligations concerning slamming only apply if a customer contacts a natural gas utility alleging that the customer's supplier has been switched without authorization from "regulated sales service" to a retail natural gas supplier or governmental aggregator, with no specific language for any obligation related to a slam from one supplier to another supplier
The proposed rule changes also add language providing that, as part of the cooperation required from the utility in slamming investigations, the utility shall specifically assist PUCO Staff in determining any restitution owed to the customer.
The proposed rule changes are part of a customary review of PUCO's minimum gas service standards in Ohio Adm.Code Chapter 4901:1-13.
The current rules subject to review also address utility-supplier coordination and utility consolidated billing (including the price to compare message on utility bills), though PUCO does not propose any changes in these areas. However, the rulemaking may serve as a forum for stakeholders to seek changes to these provisions.
Generally, rules governing retail suppliers are not contained within Ohio Adm.Code Chapter 4901:1-13
As potentially related to uncollectibles (and thus POR, about which PUCO Staff has expressed concern in separate proceedings), the proposed rules would change the due date for customer bills issued by utilities to 21 days, from the current 14 days (or 17 days if the bill is issued from outside Ohio)
Also potentially related to uncollectibles is that the proposed rule would require the utility to obtain actual readings of its customer meters at least once every quarter, versus the current rule of once every 12 months
Case 25-177-GA-ORD
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September 3, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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