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Industrial Customers Seek Rule To Make All Transmission Costs Bypassable (Assigned To Retail Suppliers Or LSE)
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In comments in a PUC of Ohio rulemaking concerning transmission cost recovery, the Ohio Manufacturers’ Association Energy Group (OMAEG) proposed language that would make all transmission costs bypassable
Current Ohio rule language provides that transmission costs shall be bypassable to the extent the utility is not bearing the responsibility of the transmission costs for shopping customers. Because at Ohio utilities the EDCs assume transmission costs for all customers, the relevant transmission cost rider is non-bypassable, except under certain pilots at certain EDCs
OMAEG stated, "Customers should have the option to pay for their transmission costs from an alternative generation supplier and not still be beholden to an electric distribution utility."
OMAEG stated, "Alternative generation suppliers are likely to pass through transmission costs to customers exactly as how the supplier would be billed for transmission as the load serving entity (LSE). In PJM, transmission is billed to LSEs similar to how generation capacity is billed, on coincident peak loads. Transmission investments are also justified by increases in coincident peak loads on transmission facilities. Thus, wholesale transmission billing follows cost-causation principles and incentivizes behind-the-meter load management as an alternative to front-of-the-meter transmission system upgrades."
In separately filed comments, the Ohio Consumers' Counsel sought, among other things, a 5% annual cap on utility transmission rider cost increases. To the extent transmission costs become bypassable as proposed by OMAEG, OCC's proposed cap, if adopted, could skew the price to compare
Case 26-60-EL-ORD
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OCC Seeks Cap On Transmission Cost Rate Increases
May 6, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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