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Choice State PUC Emphasizes That It Does Not Regulate Retail Natural Gas Supply Service To Mercantile Customers, Says RESA's Sought Clarification Not Needed On Customer Signature Requirement
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The PUC of Ohio denied a rehearing request from the Retail Energy Supply Association which had objected to what RESA argued was a misalignment in the applicability of new customer signature requirement rules for electric enrollments and natural gas enrollments
As first reported by ECM (story here), the Retail Energy Supply Association said that revised new rule language recently adopted by the PUC of Ohio on rehearing creates a misalignment in the types of customers from which retail suppliers must obtain a signature, with the new electric rule applying the signature requirement only to residential and small commercial electric customers, but with the new natural gas rule containing no such limitation based on customer type
The rule language concerns implementation of a form of enroll-by-wallet, in which a retail supplier may enroll a customer by verifying the customer's identity, using one of the three options below to verify such (electric rule quoted, similar language was adopted for gas):
(D)(1) "Customer account information," as that term is defined in division (A) of section 4928.103 of the Revised Code [Ed. note: 4928.103 states that "customer account information" means a unique electric distribution utility number or other customer identification number used by the utility to identify a customer and the customer's account record];
(D)(2) A valid form of government-issued identification issued to the customer; or
(D)(3) A sufficient alternative form of identification that allows the CRES [retail electric] provider to establish the customer's identity accurately
The process generally allows a retail supplier to use a customer's approved ID as authorization for the supplier to obtain, for the purposes of enrollment, the customer's account number from a utility's eligible customer list, and to then enroll the customer using such account number
See more background here
Under PUCO's prior rehearing order, retail suppliers were, for "direct solicitations" only, ordered to obtain a customer's signature acknowledging that the supplier verified the customer's identity. This requirement to obtain a customer's signature acknowledging that the supplier verified the customer's identity is not required for telesales or internet enrollments
However, RESA said that, based on the structure of the existing rules and where this new signature requirement was placed, the electric and gas rules differ as to the provision's applicability
RESA said that, for electricity, the new signature language is within a section of the rule limited to residential and small commercial enrollment
However, for gas, RESA said that the applicable section of the rule contains no limitation applying the rule language to only residential and small commercial enrollment. Rather, as inserted into the gas rule, the new signature requirement would apply to all natural gas customer enrollments
PUCO, in a second rehearing order issued today, said that RESA misreads the applicability of the gas rule. PUCO said that the electric and gas rules are not misaligned
PUCO stressed that, under statute, the Commission only regulates retail natural gas suppliers, "in the business of
supplying or arranging for the supply of competitive retail natural gas service to consumers
in this state that are not mercantile customers." (R.C. 4929.01(N)).
Under statute, a
"mercantile customer", for gas, is, in pertinent part, a non-residential customer who uses, "more than
five hundred thousand cubic feet of natural gas per year at a single location within this
state[.]" (R.C. 4929.01(L)(1))
For reference, 500,000 cubic feet of natural gas is about 500 Dth. For comparison, New York's definition of a small commercial gas customer is a customer using less than or equal to 750 Dth per year
PUCO further said that, in the Commission's rules, the terms "retail natural
gas supplier" and "mercantile customer" have the same meanings as set forth in statute, and
the term "small commercial customer" means a commercial customer who is not a mercantile
customer. [Ohio Adm.Code 4901:1-29-01(Z), (R), (AA)]
"Consequently, as
noted above, the Commission regulates retail natural gas suppliers who enroll and serve residential and non-mercantile (i.e. small commercial) customers, meaning the Commission
does not need to explicitly state that the customer-signed verification requirement for the
natural gas rule applies to residential and small commercial customers because it inherently
applies only to those customers," PUCO said
PUCO further said, "a reading of Ohio Adm.Code
4901:1-29-06(E)(1) reinforces the above analysis that this provision inherently only applies
to residential and small commercial customers, considering it explicitly refers to situations
involving 'enrollment' through 'direct solicitation,' which are terms defined in Ohio
Adm.Code 4901:1-29-01(K) to refer, in pertinent part, to solicitations conducted by a 'retail
natural gas supplier.'"
PUCO said, "We also note that, although other provisions within Ohio
Adm.Code 4901:1-29-06(E) specifically reference the terms 'residential' and 'small
commercial' customers when setting forth certain requirements, in context of the Ohio
Adm.Code 4901:1-29-06(E)(1), as demonstrated above, it is a distinction without a
difference. See Ohio Adm.Code 4901:1-29-06(E)(7)."
As such, PUCO said that the customer-signed verification requirement for the
natural gas rule applies only to residential and small commercial customers
PUCO, therefore, denied rehearing as moot
Case 25-729-GE-ORD
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June 24, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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