PUC Opens Reviews Of Rules Governing Default Service, Utility Affiliate Relationships, RPS

The Public Utilities Commission of Ohio has opened periodic reviews, as required by statute, of the rules governing electric security plans, competitive bidding plans, and the Standard Service Offer (Ohio Adm.Code Chapter 4901:1-35, Case 22-862-EL-ORD); utility affiliates (OAC Chapter 4901:1-37; Case 22-866-EL-ORD); transmission cost recovery (OAC Chapter 4901:1-36; Case 22-865-EL-ORD); green pricing programs (OAC Chapter 4901:1-42, Case 22-868-EL-ORD); Alternative Energy Portfolio Standards (Chapter 4901:1-40, Case 22-871-EL-ORD); and unique arrangements (OAC Chapter 4901:1-38, 22-867-EL-ORD)

Generally, PUCO does not propose any substantive changes with respect to the retail market in any of the rules. However, the proceedings may serve as a forum for stakeholders to see substantive changes

With respect to the Standard Service Offer rules (Chapter 4901:1-35), PUCO does propose to eliminate the current language in the rules concerning the blending of auction rates and costs from utility-owned generation, when such utility-owned generation is recovered through the bypassable generation rate. Currently, all of the utilities source SSO supply through competitive auctions, and any utility-owned generation (or share of generation) is recovered on a nonbypassable basis, and thus no such blending of the SSO rate occurs

No substantive changes impacting the retail market are proposed to the utility affiliate rules under Chapter 4901:1-37

With respect to the Transmission Cost Recovery Rider rule (Chapter 4901:1-36) PUCO proposes deleting current language stating that, "The transmission cost recovery rider shall be avoidable by all customers who choose alternative generation suppliers and the electric utility no longer bears the responsibility of providing generation and transmission service to the customers."

Several Ohio utilities have implemented nonbypassable transmission charges, to recover costs of "non-market" RTO charges, for which the utility assumes the obligation of all customers, including those on competitive retail supply (except in limited large C&I opt-out instances)

Several of the proposed changes strike what appear to be duplicative rules, wherein the requirement would still exist elsewhere in rule, or in statute

For example, under the green pricing program rules (voluntary green products), PUCO proposes to delete language stating that, "Any Ohio EDU or CRES provider offering a green pricing program shall report participation statistics, consistent with the requirements of Chapter 4901:1-25 of the Administrative Code." However, such entities would still be required to report certain green program information under Chapter 4901:1-25

Similarly, under the Alternative Energy Portfolio Standards rule (Chapter 4901:1-40), PUCO proposes deleting language stating that, "All costs incurred by an electric utility in complying with the requirements of section 4928.64 of the Revised Code shall be avoidable by any consumer that has exercised choice of electricity supplier during such time that a customer is served by an electric services company."

However, such costs are still required to be bypassable per statute R.C. 4928.64, which provides that, "All costs incurred by an electric distribution utility in complying with the requirements of this section [AEPS] shall be bypassable by any consumer that has exercised choice of supplier under section 4928.03 of the Revised Code."

With respect to utility-customer arrangements, Chapter 4901:1-38, PUCO proposes to delete in their entirety the rules governing "economic development arrangements" and "energy efficiency arrangements". PUCO proposes various changes to the "unique arrangements" rule