Chapter 4901:1-43 Recovery of Infrastructure Development Costs

4901:1-43-01 Definitions.

(A) "Annual report" means a report filed annually by any natural gas company with a commission-approved infrastructure development rider pursuant to this chapter.

(B) "Application" means an application for a natural gas infrastructure development rider pursuant to this chapter.

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

(D) "Infrastructure development" shall have the meaning set forth in division (A) of section 4929.16 of the Revised Code.

(E) "Infrastructure development costs" shall have the meaning set forth in division (B) of section 4929.16 of the Revised Code.

(F) "Natural gas company" means a company that meets the definition of a natural gas company set forth in section 4905.03 of the Revised Code and that also meets the definition of a public utility under section 4905.02 of the Revised Code.

(G) "Notice" means a notice filing for a natural gas infrastructure development project pursuant to this chapter.

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

Cite as Ohio Admin. Code 4901:1-43-01

Effective: 9/29/2016
Five Year Review (FYR) Dates: 09/19/2021
Promulgated Under: 111.15
Statutory Authority: 4929.163, 4929.164, 4929.10
Rule Amplifies: 4929.16 , 4929.161, 4929.162, 4929.163, 4929.164, 4929.165, 4929.166, 4929.167

4901:1-43-02 Purpose and scope.

(A) This chapter authorizes a natural gas company to file an application with the commission for approval of an infrastructure development rider to recover prudently incurred infrastructure development costs of one or more economic development projects approved under section 4929.163 or 4929.164 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.

Cite as Ohio Admin. Code 4901:1-43-02

Effective: 9/29/2016
Five Year Review (FYR) Dates: 09/19/2021
Promulgated Under: 111.15
Statutory Authority: 4929.163, 4929.164, 4929.10
Rule Amplifies: 4929.16 , 4929.161, 4929.162, 4929.163, 4929.164, 4929.165, 4929.166, 4929.167

4901:1-43-03 Project information and approval process.

(A) Pursuant to division (A) of section 4929.163 of the Revised Code, a natural gas company may file, prior to beginning construction, for approval of an economic development project through an economic development project notice with the commission's docketing division. This notice shall contain the following information:

(1) The name and location of the project.

(2) A background of the subject company of the economic development project.

(3) The level of total investment and capital expenditure by the subject company and the economic development impact. This description shall contain the following information:

(a) Estimated state and local taxable base increase.

(b) Anticipated number of new jobs created and jobs retained by the project.

(c) Description of the community served and the benefits to that community.

(4) To the maximum extent practicable, a description of other potential locations that may compete with the proposed location, including the type, location, and time frame of potentially competing projects.

(5) The level of infrastructure investment anticipated by the natural gas company.

This description shall contain the following information:

(a) A description of how the infrastructure development costs are projected to generate a return less than the most recently authorized rate of return.

(b) A description of how the utility will not exceed the two dollar cap on an annual basis.

(B) Following its review of the information set forth in paragraph (A) of this rule, and any other information consistent with section 4929.163 of the Revised Code, the commission may approve a project if both of the following apply:

(1) The infrastructure development costs for the project are projected to generate a return on the company's investment that is less than the most recently authorized rate of return.

(2) The amount of infrastructure development costs to be incurred by the company per calendar year, for the project and all other projects previously approved under this section, is not projected to exceed the product of two dollars multiplied by the aggregate number of the company's customers in this state.

(C) A notice filed pursuant to division (A) of section 4929.163 of the Revised Code shall be deemed automatically approved on the thirtieth day after the date of the notice filing unless the notice filing is suspended by the commission for good cause shown. If the notice filing is suspended, the commission shall approve, deny, modify, or hold a hearing on the notice filing not later than forty-five days after the date that the suspension begins.

(D) Pursuant to division (A) of section 4929.164 of the Revised Code, a natural gas company may file with the commission's docketing division a certified site project notice for approval of an economic development project that has been certified by or submitted to the director of development services under the Site Ohio certification program. This notice shall contain the following:

(1) The name and location of the project site.

(2) A description and background of the site along with the anticipated impact to the community.

(3) The level of infrastructure investment anticipated by the natural gas company.

This description shall contain the following information:

(a) A description of how the infrastructure development costs are projected to generate a return less than the most recently authorized rate of return.

(b) A description of how the utility will not exceed the one dollar cap on an annual basis.

(4) A copy of any Site Ohio applications, approvals, or any other relevant materials.

(E) Following its review of the information set forth in paragraph (D) of this rule, and any other information consistent with section 4929.164 of the Revised Code, the commission may approve a project if both of the following apply:

(1) The infrastructure development costs for the project are projected to generate a return on the company's investment that is less than the most recently authorized rate of return.

(2) The amount of infrastructure development costs to be incurred by the company per calendar year, for the project and all other projects previously approved under this section, is not projected to exceed the product of one dollar multiplied by the aggregate number of the company's customers in this state.

(F) A notice filed pursuant to division (A) of section 4929.164 of the Revised Code shall be deemed automatically approved on the ninetieth day after the date of the notice filing unless the notice filing is suspended by the commission for good cause shown. If the notice filing is suspended, the commission shall approve, deny, modify, or hold a hearing on the notice filing not later than forty-five days after the date that the suspension begins.

Cite as Ohio Admin. Code 4901:1-43-03

Effective: 9/29/2016
Five Year Review (FYR) Dates: 09/19/2021
Promulgated Under: 111.15
Statutory Authority: 4929.163, 4929.164, 4929.10
Rule Amplifies: 4929.16 , 4929.161, 4929.162, 4929.163, 4929.164, 4929.165, 4929.166, 4929.167

4901:1-43-04 Cost recovery rider process.

(A) Each natural gas company which seeks recovery of economic development project costs shall first file an application with the commission's docketing division for an infrastructure development rider pursuant to section 4929.161 of the Revised Code. The initial application shall include all information set forth upon forms as may be prescribed by the commission.

(B) Each natural gas company with an approved infrastructure development rider shall update the rider rate on an annual basis as set forth by commission order. Each annual report to update the infrastructure development rider shall include all information set forth upon forms as may be prescribed by the commission.

(C) The commission may order that consultants be hired, with costs billed to the natural gas company, to conduct prudence and/or financial reviews of the costs incurred and recovered through the infrastructure development rider.

(D) Each annual report to update the infrastructure development rider should be made not less than seventy-five days prior to the proposed effective date of the updated rider rate. Proposed rates will become effective on the seventy-sixth day, unless suspended by the commission for good cause shown, and shall be subject to reconciliation adjustments following any hearing, if necessary.

(E) Affected parties may file a motion to intervene and submit comments on any issues within the following timelines:

(1) A motion to intervene and submit comments concerning any notice filed under paragraph (A) of rule 4901:1-43-03 of the Administrative Code must be submitted to the commission within fifteen days of the date of the filing of the notice.

(2) A motion to intervene and submit comments concerning any notice filed under paragraph (D) of rule 4901:1-43-03 of the Administrative Code must be submitted to the commission within forty days of the date of the filing of the notice.

(3) A motion to intervene and submit comments concerning an annual report to update the infrastructure development rider filed under this rule must be submitted to the commission within forty-five days of the date of the filing of the annual report.

Cite as Ohio Admin. Code 4901:1-43-04

Effective: 9/29/2016
Five Year Review (FYR) Dates: 09/19/2021
Promulgated Under: 111.15
Statutory Authority: 4929.163, 4929.164, 4929.10
Rule Amplifies: 4929.16 , 4929.161, 4929.162, 4929.163, 4929.164, 4929.165, 4929.166, 4929.167