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PUC Declines, At This Time, To Open Statewide Review Of Default Service Product; & SOS For Data Centers, In Adopting New Default Service Rules
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The PUC of Ohio has adopted amended rules governing the electricity standard service offer (SSO), with most of the changes reflecting statutory changes which eliminated the use of electric security plans for default service, and which require the use of a market rate offer process (MROs)
PUCO generally maintained the existing rules applicable to MROs, and the proceeding was more notable for changes sought by various stakeholders
The Retail Energy Supply Association had urged PUCO to use the rulemaking as a forum to consider changes to default service -- including the SSO product type and the separation of customer classes (versus the current slice of system procurements) -- in light of changes in the energy markets and electric industry, including the proliferation of data centers and other large loads. RESA noted that PUCO, in prior orders, has stated that PUCO is committed to monitoring the impact that data centers may have on the energy system in Ohio
However, PUCO held that the SSO rulemaking is not the appropriate venue to begin a statewide review of default service and related issues
In light of such, PUCO also denied various changes to the SSO rules specific to data centers that had been proposed by the Ohio Consumers' Counsel
RESA had also sought via the rulemaking to eliminate the switching fee which still exists at several utilities, and which is applicable only to switches to competitive retail supply and not to default service
PUCO denied this request to eliminate the switching fee. While PUCO in another proceeding, in which RESA had also sought elimination of the switching fee, had suggested that, "the more
appropriate proceeding to review such fees would be in an SSO proceeding," PUCO in today's order states, "The issue of whether switching fees should be imposed,
and if so, how much those fees should be, may better be addressed on a case-by-case basis
for each utility rather than in a rulemaking proceeding."
"[W]e find that other, more
appropriate venues exist for review of switching fees," PUCO said
PUCO rejected a proposal from AEP Ohio which would have provided utilities with flexibility to propose changes to the SSO procurements during the term of an approved SSO plan
AEP Ohio had proposed that, during the term of an electric utility’s approved SSO, the electric utility may file for an amendment of the CBP [competitive bid plan] component of the SSO to make procedural updates or modifications to the auction process in lieu of filing a new SSO application. Notably, AEP Ohio had proposed that such SSO modification would be automatically approved after 45 days if PUCO did not act upon the proposal within such timeframe
In rejecting this proposal from AEP Ohio, PUCO said, "To
the extent a CBP would require procedural updates or modifications, applicants are already
able to coordinate with Staff and other stakeholders to make such adjustments as needed."
The amended SSO rules eliminate the current requirement that a utility filing a new SSO plan shall hold a technical conference at the start of the newly proposed SSO application. This elimination of the technical conference was opposed by RESA
PUCO said that, "few parties take advantage of," the currently required technical conference, and PUCO noted that parties may obtain information and provide comments concerning an SSO application as parties to an SSO case
Modifying an earlier proposed rule deletion which would have relieved utilities from demonstrating, as part of an SSO application, that their corporate separation plan complies with statute, PUCO, by amending other rule language, will still require that an SSO application shall
include an attestation that the utility’s corporate separation plan is still in compliance with
all relevant statutes and rules, and shall include an explanation as to why any granted waivers, that are sought to
be continued, are still necessary
While PUCO has adopted final rule language, the rules, under the customary process, remain subject to review by the Joint Committee on Agency Rule Review. An effective date would be established after JCARR review, though PUCO would establish the effective date to be the "earliest date permitted" upon conclusion of the JCARR process
Case 26-0059-EL-ORD, 26-59-EL-ORD
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PUC Declines To Eliminate Switching Fee
July 22, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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