Skip to main content
Back To Top Top Back To Top
This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and universities.

Chapter 4901:1-38 | Arrangements

 
 
 
Rule
Rule 4901:1-38-01 | Definitions.
 

(A) "Affidavit" means a written declaration made under oath before a notary public or other authorized officer.

(B) "Commission" means the public utilities commission of Ohio.

(C) "Delta revenue" means the deviation resulting from the difference in rate levels between the otherwise applicable rate schedule and the result of any reasonable arrangement approved by the commission.

(D) "Electric utility" has the meaning set forth in division (A)(11) of section 4928.01 of the Revised Code.

(E) "Energy efficiency production facilities" means any customer that manufactures or assembles products that promote the more efficient use of energy (i.e., increase the ratio of energy end use services (i.e., heat, light, and drive power) derived from a device or process to energy inputs necessary to derive such end use services as compared with other devices or processes that are commonly installed to derive the same energy use services); or, any customer that manufactures, assembles or distributes products that are used in the production of clean, renewable energy.

(F) "Mercantile customer" has the meaning set forth in division (A)(19) of section 4928.01 of the Revised Code.

(G) "Nonfirm electric service" means electric service provided pursuant to a schedule filed under section 4905.30 or 4928.141 of the Revised Code, or pursuant to an arrangement under section 4905.31 of the Revised Code, which schedule or arrangement includes conditions that may require the customer to curtail or interrupt electric usage during nonemergency circumstances upon notification by the electric utility.

(H) "Staff" means the staff of the commission or its authorized representative.

Last updated June 20, 2023 at 9:25 AM

Supplemental Information

Authorized By: 4905.31, 4928.02, 4928.06
Amplifies: 4905.31, 4928.02
Five Year Review Date: 7/15/2026
Prior Effective Dates: 4/2/2009
Rule 4901:1-38-02 | Purpose and scope.
 

(A) The purpose of this chapter is to facilitate the state's effectiveness in the global economy, to promote job growth and retention in the state, to ensure the availability of reasonably priced electric service, to promote energy efficiency and to provide a means of giving appropriate incentives to technologies that can adapt successfully to environmental mandates in furtherance of the policy of the state of Ohio embodied in section 4928.02 of the Revised Code.

(B) The commission may, upon an application or a motion filed by a party, waive any requirement of this chapter, other than a requirement mandated by statute, for good cause shown.

Last updated February 28, 2023 at 10:25 AM

Supplemental Information

Authorized By: 4905.04, 4905.06
Amplifies: 4905.31, 4928.02
Five Year Review Date: 7/15/2026
Rule 4901:1-38-05 | Unique arrangements.
 

(A) An electric utility may file an application pursuant to section 4905.31 of the Revised Code for commission approval of a reasonable arrangement with one or more of its non-mercantile customers, consumers, or employees.

(1) An electric utility filing an application for commission approval of a reasonable arrangement with one or more of its customers, consumers, or employees bears the burden of proof that the proposed arrangement is reasonable and does not violate the provisions of sections 4905.33 and 4905.35 of the Revised Code, and shall submit an affidavit from a company official as to the veracity of the information provided.

(2) Upon the filing of an application for a reasonable arrangement, the commission may fix a time and place for a hearing if the application appears to be unjust or unreasonable.

(B) A mercantile customer, or a group of mercantile customers, of an electric utility may file an application for commission approval of a reasonable arrangement with the electric utility.

(1) Each customer requesting to take service pursuant to a reasonable arrangement with the electric utility has the burden of proof that, at a minimum the arrangement is in the public interest.

(2) A mercantile customer filing an application for commission approval of a reasonable arrangement has the burden of proof that the proposed arrangement is reasonable and does not violate the provisions of sections 4905.33 and 4905.35 of the Revised Code.

(3) Upon the filing of an application for a reasonable arrangement, the commission may fix a time and place for a hearing if the application appears to be unjust or unreasonable.

(C) The applicant may describe how the reasonable arrangement will further the policy of the state of Ohio embodied in section 4928.02 of the Revised Code.

(D) Reasonable arrangements shall reflect terms and conditions for circumstances for which the electric utility's tariffs have not already provided.

(E) Customer information provided to the electric utility to obtain a reasonable arrangement shall be treated by the electric utility as confidential, with the exception of customer names and addresses, which may be disclosed in filings with the commission.

(F) Affected parties may file a motion to intervene and file comments and objections to any application filed under this rule within twenty days of the date of the filing of the application.

Last updated June 20, 2023 at 9:25 AM

Supplemental Information

Authorized By: 4905.31, 4928.02, 4928.06
Amplifies: 4905.31, 4928.02
Five Year Review Date: 7/15/2026
Rule 4901:1-38-06 | Reporting requirements.
 

(A) Each electric utility shall require each of its customers served under any reasonable arrangement established pursuant to this chapter to submit an annual report to the electric utility and staff and file an annual report with the commission no later than April thirtieth of each year. The format of that report, to be determined by staff, should ensure a determination of the compliance with the eligibility criteria can be made, the value of any incentives received by the customer(s) are identified, and the potential impact on other customers can be calculated.

(B) The burden of proof to demonstrate ongoing compliance with the reasonable arrangement lies with the customer(s). The electric utility shall summarize the reports provided by customers under paragraph (A) of this rule and submit such summary to staff for review and audit no later than June fifteenth of each year.

Last updated June 20, 2023 at 9:25 AM

Supplemental Information

Authorized By: 4905.31, 4928.02, 4928.06
Amplifies: 4905.31, 4928.02
Five Year Review Date: 7/15/2026
Prior Effective Dates: 4/2/2009
Rule 4901:1-38-07 | Level of incentives.
 

(A) The level of the incentives associated with any reasonable arrangement established pursuant to this chapter will be determined as part of the commission's review and approval of the applications filed pursuant to this chapter. Incentives will only be applicable to the service(s) taken from the electric utility by the customer receiving the incentives.

(B) Incentives may be based on, but not limited to:

(1) Demand discounts.

(2) Percentages of total bills, or portions of bills.

(3) Direct contributions.

(4) Reflections of cost savings to the electric utility.

(5) Shared savings.

(6) Some combination of the required criteria.

(C) Where the calculation of delta revenue under any reasonable arrangement under rule 4901:1-38-05 of the Administrative Code requires consideration of a customers generation charges, the customer will be billed using utility-consolidated billing.

Last updated June 20, 2023 at 9:25 AM

Supplemental Information

Authorized By: 4905.31, 4928.02, 4928.06
Amplifies: 4905.31, 4928.02
Five Year Review Date: 7/15/2026
Prior Effective Dates: 4/2/2009
Rule 4901:1-38-08 | Revenue recovery.
 

(A) Each electric utility that is serving customers pursuant to approved reasonable arrangements, may apply for a rider for the recovery of certain costs associated with its delta revenue for serving those customers pursuant to reasonable arrangements in accordance with the following:

(1) The electric utility may request recovery of direct incremental administrative costs related to the programs as part of the rider. Such cost recovery may, as ordered by the commission, be subject to audit, review, and approval by the commission.

(2) For reasonable arrangements in which incentives are given based upon cost savings to the electric utility (including, but not limited to, nonfirm arrangements, on/off peak pricing, seasonal rates, time-of-day rates, real-time-pricing rates), the cost savings will be an offset to the recovery of the delta revenues.

(3) The amount of the revenue recovery rider will be spread to all customers in proportion based on the current revenue distribution between and among classes. The electric utility shall file the projected impact of the proposed rider on all customers, by customer class.

(4) The rider shall be updated and reconciled, by application to the commission, semiannually. All data submitted in support of the rider update is subject to commission review and audit.

(B) If it appears to the commission that the proposals in the application may be unjust and unreasonable, the commission will set the matter for hearing. At such hearing, the electric utility will bear the burden of proof to show that the revenue recovery rider proposal in the application is just and reasonable.

(C) Affected parties may file a motion to intervene and file comments and objections to any application filed under this rule within twenty days of the date of the filing of the application.

Last updated June 20, 2023 at 9:25 AM

Supplemental Information

Authorized By: 4905.31, 4928.02, 4928.06
Amplifies: 4905.31, 4928.02
Five Year Review Date: 7/15/2026
Prior Effective Dates: 4/2/2009
Rule 4901:1-38-09 | Failure to comply.
 

(A) If the customer being provided with service pursuant to a reasonable arrangement established pursuant to this chapter fails to substantially comply with any of the criteria for eligibility or fails to substantially comply with reporting requirements, the electric utility, after reasonable notice to the customer, shall terminate the arrangement unless otherwise ordered by the commission.

(B) The commission may also direct the electric utility to charge the customer for all or part of the incentives previously provided by the electric utility.

(C) If the customer is required to pay for all or part of the incentives previously provided, the recovered amounts shall be reflected in the calculation of the revenue recovery rider established pursuant to rule 4901:1-38-08 of the Administrative Code.

Last updated July 13, 2023 at 2:28 PM

Supplemental Information

Authorized By: 4905.04, 4905.06
Amplifies: 4905.31, 4928.02
Five Year Review Date: 7/15/2026