4901:1-40-07 Cost cap.

(A) An electric utility or electric services company may file an application requesting a determination from the commission that its reasonably expected cost of compliance with an advanced energy resource benchmark would exceed its reasonably expected cost of generation to customers by three per cent or more. The process and timeframes for such a determination shall be set by entry of the commission, the legal director, deputy legal director, or attorney examiner.

(1) The burden of proof for substantiating such a claim shall remain with the electric utility or electric services company.

(2) An electric utility or electric services company shall pursue all reasonable compliance options prior to requesting such a determination from the commission.

(3) In the case that the commission makes such a determination, the electric utility or electric services company may not be required to fully comply with that specific benchmark.

(B) An electric utility or electric services company may file an application requesting a determination from the commission that its reasonably expected cost of compliance with a renewable energy resource benchmark, including a solar energy resource benchmark, would exceed its reasonably expected cost of generation to customers by three per cent or more. The process and timeframes for such a determination shall be set by entry of the commission, the legal director, deputy legal director, or attorney examiner.

(1) The burden of proof for substantiating such a claim shall remain with the electric utility or electric services company.

(2) An electric utility or electric services company shall pursue all reasonable compliance options prior to requesting such a determination from the commission.

(3) In the case that the commission makes such a determination, the electric utility or electric services company may not be required to fully comply with that specific benchmark.

(C) Calculations involving a three per cent cost cap shall consist of comparing the total expected cost of generation to customers of an electric utility or electric services company, while satisfying an alternative energy portfolio standard requirement, to the total expected cost of generation to customers of the electric utility or electric services company without satisfying that alternative energy portfolio standard requirement.

(D) Any costs included in a commission-approved unavoidable surcharge for construction or environmental expenditures of generation resources shall be excluded from consideration as a cost of compliance under the terms of the alternative energy portfolio standard and therefore, would not count against the applicable cost cap. Such costs should, however, be included in the calculation of the total expected cost of generation to customers described in paragraph (C) of this rule.

(E) If the commission makes a determination that a three per cent provision is triggered, the electric utility or electric services company shall comply with each benchmark up to the point that the three per cent increment would be reached for each benchmark.

Effective: 12/10/2009
R.C. 119.032 review dates: 09/30/2013
Promulgated Under: 111.15
Statutory Authority: 4901.13 , 4905.04 , 4905.06 , 4928.02 , 4928.64
Rule Amplifies: 4928.64