(A) Notice of intent
The applicant shall notify the commission staff by letter addressed to the directors of the utilities department and the consumer services department of its intent to file an application at least thirty calendar days prior to the expected date of filing.
(B) Form of an application
(1) An application shall be in a form substantially similar to the form contained in the appendix of this rule.
(2) All testimony supporting the application shall be filed with the application.
(3) An applicant shall file with the commission the original and ten copies of its application and supporting testimony.
(4) An applicant shall provide one copy of its application and supporting testimony to the office of the consumers' counsel and mail a copy to each party of record in its previous alternative rate plan or rate case proceeding. An applicant shall have available one copy of its plan in each principal business office for public inspection.
(5) An exemption shall be designated by the commission's docketing division using the acronym EXM.
(C) Exhibits to an exemption application
(1) The applicant shall fully demonstrate that it is in substantial compliance with the policy of this state specified in section 4929.02 of the Revised Code. The applicant shall also include a detailed discussion as to how the approval of the proposed exemption(s) will promote such policy. The applicant shall explain how granting the exemption(s) will affect the applicant's percentage of income payment plan customers, and if applicable, how any adverse impacts on these customers will be mitigated.
The applicant shall provide a discussion showing that the requested exemption(s) does not involve undue discrimination for similarly situated customers. The applicant shall provide a description of the internal process for addressing customer complaints and inquiries. The applicant shall also include the name of a contact person to work with the commission staff. This person shall have the authority to resolve customer complaints and inquiries received by commission staff. The applicant shall also provide clear and accurate, written materials related to service and product offerings which promote effective customer choice and the provision of adequate customer service.
(2) The application shall include a detailed discussion of why the applicant believes it is currently subject to effective competition in the provision of each commodity sales service or ancillary service for which it is requesting an exemption and/or a detailed discussion of why the applicant believes the customers in the relevant market currently have reasonably available alternatives to each commodity sales service or ancillary service for which it is requesting an exemption. Detailed discussions shall include all supporting documentation which shall include empirical data. The detailed discussions of effective competition are required to demonstrate the degree of competitive behavior in the relevant market. The discussion shall include, but is not limited to, the following:
(a) The degree to which the product is of substantially the same quality provided by any or all of the sellers.
(b) The degree to which buyers and sellers are readily able to enter or leave the market and switch between sellers and buyers. (i.e., existence of entry and exit barriers and the discussion of any barriers which might exist).
(c) The degree to which buyers and sellers have readily available information about the market.
(d) How and to what degree the product is available in the relevant market from alternative providers. (include a detailed discussion of the extent to which the functionally equivalent substitute service(s) are available from alternative providers in the relevant market and the number of sellers, their respective share of the market, the expected growth in the market, the expected growth in suppliers, and growth in their respective shares.).
(e) Affiliations between suppliers.
(f) All data and calculations necessary to measure market concentration or market power in the relevant market, e.g., the four firm concentration ratio, Herfindahl-Hirschmen index, Lerner index, and any other index(s) chosen to support the application.
(3) The application shall also include the following information:
(a) A detailed description of each commodity sales service(s) and/or ancillary service(s) for which the applicant is requesting an exemption.
(b) The potential number of customers for each commodity sales service(s) and/or ancillary service(s) for which the applicant is requesting an exemption.
(c) A discussion of the availability of upstream capacity needed to support the service(s) for which the applicant is requesting an exemption.
(d) If, pursuant to division (E)(D) of section 4929.04 of the Revised Code, the application requests an. exemption for all of the applicant's commodity sales services, it shall contain, in addition to the information required in paragraphs (C)(3)(a) to (C)(3)(c) of this rule, a showing that the applicant offers distribution services on a fully open, equal, and unbundled basis to all its customers, and that all such customers reasonably may acquire commodity sales services from suppliers other than the applicant.
(4) Applicants proposing to provide exempt services on an integrated company basis (as opposed to provision of exempt services by a separate affiliate or subsidiary company) shall, consistent with division (F)(E)(1) of section 4929.04 of the Revised Code, submit a proposed separation plan to ensure to the maximum extent practicable that operations, resources, and employees involved in providing marketing or exempt commodity sales services or ancillary services are operated and accounted for separate from nonexempt operations. The applicant shall provide a detailed discussion of its proposed separation plan and address how the proposed separation plan satisfies each item presented below or, alternatively, why these are not applicable.
(a) Describe how the plan is consistent with the policy of the state under section 4929.02 of the Revised Code.
(b) Describe how the plan will ensure maintenance of applicant's human resources and technical skills necessary to provide safe, reliable, and economic services to nonexempt tariff customers.
(c) Describe the applicant's organization structure and operating practices to physically separate its exempt and nonexempt operations. Applicant's organizational hierarchy and reporting relationships should maximize the functional independence of exempt and nonexempt services. Operating practices that would maximize separations include, but are not limited to, physical separation of operations, assuring protection of customer information maintained by the regulated servicesentity, assuring protection against undue discrimination in favor of exempt services, separate employees for exempt and nonexempt services, and uniform prices, terms, and conditions for contracted services.
(d) Describe how the separation plan provides safeguards and conditions to ensure that costs associated with exempt operations, resources, and employees are not borne by rate payers of regulated services. Describe specific policies, practices, procedures, and controls the applicant will have in place to prevent cross-subsidization by the applicant's regulated customers.
(e) Describe the applicant's accounting and cost allocation policies, practices, and procedures relating to exempt operations. describe all exempt operations, describe all transactions between exempt and nonexempt operations, and describe cost apportionment methodology. Address allocation procedures for office space, office equipment, administrative overhead, and support services. Explain the cost allocation of exempt and nonexempt revenues, expenses, and investment.
(5) The applicant shall submit a proposed code of conduct which governs both the applicant's adherence to the state policy specified in sections 4905.32 and 4929.02 of the Revised Code, and its sharing of information and resources between those employees involved in the provision or marketing of exempt commodity sales services or ancillary services, and those employees involved in the provisioning or marketing of nonexempt commodity sales services or ancillary services.
(6) Provide one scored copy each of all proposed tariff schedules where applicable (schedule E-1) which have all proposed changes underscored and current tariff schedules to which changes are proposed (schedule E-2). Designate in the margin the type of proposed change by using the following designation(s):
(C) - To signify changed regulations
(D) - To signify discontinued rate or regulation
(I) - To signify increased rate
(N) - To signify new rate or regulation
(R) - To signify reduced rate
(S) - To signify reissued matter
(T) - To signify a change in text, but no change in rate or regulation
Identify each page with schedule E-__, page __ of __ in the upper right hand corner of the schedule.
(7) Provide the rationale underlying the proposed changes to the tariff (schedule E-3). Changes common to multiple rate forms need only be discussed once. Reference the appropriate current or proposed rate schedules to which the rationale is applicable. Use the proper schedule and page number.
(8) Provide a description of all dockets in which there are special arrangements with customers pursuant to section 4905.31 of the Revised Code, which customers may be affected by the application.
Before the Public Utilities Commission of Ohio
In the Matter of the Application of )_________________________________(1) )for Approval of a General Exemption of ) Certain Natural Gas Commodity Sales ) Services or Ancillary Services from ) Chapters 4905, 4909, and 4935 except ) Sections 4905.10, 4935.01, and 4935.03, ) and from specified sections of Chapter ) 4933 of the Revised Code. )
Case No. - GA-EXM
_____________________ (2), the applicant in this proceeding, is a natural gas company providing service to ___________ (3) customers in the state of Ohio, of which approximately __________(4) are expected to be affected by this application.
Applicant submits this application pursuant to section 4929.04 of the Revised Code, for approval of an exemption from specified chapters and sections of the Revised Code for ____________________(5). Exhibits _________ through __________ are attached to this application and are incorporated herein
The Applicant requests the Commission to consider the facts and proposals set forth in this application and to approve the applicant's request for an exemption.
President or Vice President
Secretary or Treasurer
Company Official to be Contacted ____________________ Regarding the Application
Mailing Address ____________________
Telephone Number (___)________________
Attorney for Applicant ____________________
STATE OF OHIO
COUNTY OF __________
I, ______________________________________________, President/Vice President and I, ______________________________________, Secretary/Treasurer of____________________ (Exact company name) (Exact company name) hereby verify that the information contained in this application is true and correct to the best of our knowledge.
President / Vice President
Sworn and subscribed before me this __________ day of ___________, _______.
My term expires:
(1) Place the total number of customers served by the applicant within Ohio in blank three and the approximate number of customers proposed to be affected by this application in blank four.
(2) Provide a brief descriptive title of any and all commodity sales service or ancillary service covered by the application, including the customer class(es) for whom the exempted service will be made available in blank five.
(3) The president or vice president, and the secretary or treasurer of the applicant shall sign the application form at blank six and provide the name, address, and telephone number of the person to be contacted regarding questions concerning the application. The verification on page two of the appendix to this rule shall also be completed.