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ALJ Seeks Comments On Proposed Rules Re: Fixed Introductory Rate That Converts To A Variable Rate Upon The Expiration Of The Fixed Rate Term
As reported previously, HB 15 passed both chambers of the Ohio legislature and was signed by Governor DeWine on May 15, 2025. The new law is effective August 14, 2025.
HB 15 applies all consumer protections adopted under R.C. 4928.10, minimum service requirements for competitive electricity services to residential and small commercial customers.
“Small commercial customer” means any customer that receives electric service pursuant to a nonresidential tariff if the customer’s demand for electricity does not exceed 25 kW within the last twelve months. The term “small commercial customer” excludes a customer which:
(a) Manages multiple electric meters and, within the last twelve months, the electricity demand for at least one of the meters is twenty-five kilowatts or more; or
(b) Has, at the customer’s discretion, aggregated the demand for the customer-managed meters.
From the ALJ’s request for comments on proposed rule changes:
{¶ 1} On May 15, 2025, Governor DeWine signed Substitute House Bill Number 15 (Sub. HB 15). Among other items, Sub. HB 15 adopted two new sections of the Ohio Revised Code (R.C.), R.C. 4928.102 and 4929.221.1 Specifically, R.C. 4928.102 and 4929.221 instructs the Commission to adopt rules imposing certain notice requirements on competitive retail electric service suppliers (CRES) and competitive retail natural gas service suppliers (CRNGS), respectively, when residential and certain small commercial or non mercantile commercial customers have a contract for a fixed introductory rate that converts to a variable rate upon the expiration of the fixed rate term.
{¶ 2} Attached to this Entry are two proposed rules to satisfy the notice requirements outlined in R.C. 4928.102 and 4929.221. Comments concerning the proposed rules are due July 11, 2025.
{¶ 5} All interested persons or entities wishing to file comments with the Commission regarding the proposed rules do so no later than July 11, 2025.” {Emphasis added}
Proposed rule changes to 4901:1-29-13
Notification Requirements for Fixed Introductory Rate Contracts:
(A) If a competitive retail natural gas service supplier offers a residential customer or non mercantile commercial customer a contract for a fixed introductory rate that converts to a variable rate upon the expiration of the fixed rate, the competitive retail natural gas service supplier shall send two notices to each residential and non mercantile commercial customer that enters into such a contract. Each notice shall provide all of the following information to the customer:
(1) The fixed rate that is expiring under the contract;
(2) The expiration date of the contract’s fixed rate;
(3) The address for the commission web site that, as a comparison tool, lists rates offered by competitive retail natural gas service suppliers.
(B) The second notice shall include all of the requirements in paragraph (A) of this rule and shall also identify the initial rate to be charged upon the contract’s conversion to a variable rate.
(C) The notices shall be sent by standard United States mail or electronically with a customer’s verifiable consent, as follows:
(1) The competitive retail natural gas service supplier shall send the first notice not earlier than ninety days, and not later than sixty days, prior to the expiration of the fixed rate.
(2) The competitive retail natural gas service supplier shall send the second notice not earlier than forty-five days, and not later than fifteen days, prior to the expiration of the fixed rate.
(D) A competitive retail natural gas service supplier shall provide an annual notice, by standard United States mail or electronically with a customer’s verifiable consent, to each residential and non-mercantile commercial customer that has entered into a contract with the competitive retail natural gas service supplier that has converted to a variable rate upon the expiration of the contract’s fixed introductory rate. The notice shall inform the customer that the customer is currently subject to a variable rate and that other fixed rate contracts are available.
(E) Competitive retail natural gas service suppliers shall ensure that all notices required under paragraphs (A) through (D) of this rule comply with the following:
(1) The notices must use clear and unambiguous language in order to enable the customer to make an informed decision; and
(2) The notices must be designed in a way to ensure that they cannot be confused with marketing materials.”
Note: The new law contains other provisions not covered in this proposed rule. As reported previously other changes contained in the new law include:
Requires electric utility’s standard service offer (SSO) to be established only as a market-rate offer (MRO) by eliminating the electric security plan (ESP) option and making the MRO mandatory. Electric Service Plans are abolished to be replaced with market rate offers or MROs. Specifically, HB 15 strikes in its entirety the prior statutory provisions authorizing electric utilities to rely on electric security plans (ESP) to establish the Standard Service Offer whereby SSO may now only be established under a “market-rate offer” (MRO). Note however, that existing electric security plans may continue until the expiration date of the last delivery year for which PUCO has already approved a SSO procurement plan.
“The commission shall adopt, for each electric distribution utility that provides customers with a standard service offer in compliance with sections 4928.141 and 4928.142 of the Revised Code [i.e. the MRO], a nonbypassable cost recovery mechanism relating to transmission, ancillary, congestion, or any related service required for such standard service offer that includes provisions for the recovery of any cost of such service that the electric distribution utility incurs pursuant to the standard service offer.”
Other than providing the SSO, “no electric utility shall provide a competitive retail electric service in this state if that service was deemed competitive or otherwise legally classified as competitive prior to the effective date of this section.”
Prohibits electric utilities from recovering the cost of legacy generation resources, like OVEC, from ratepayers.
Directs the PUCO to establish financial assurance standards for electric and gas suppliers while repealing the existing performance bond requirement for gas suppliers. Allows utilities to establish financial security requirements for retail suppliers. PUCO, “shall establish rules to require an electric services company to maintain financial assurances sufficient to protect customers and electric distribution utilities from default.” “Such rules also shall specifically allow an electric distribution utility to set reasonable standards for its security and the security of its customers through financial requirements set in its tariffs,” Note that under HB 15 an “electric services company” includes retail suppliers but excludes brokers and aggregators. Note that similar provisions pertain to retail natural gas suppliers.
Allows enroll-by-wallet for retail customers. “A customer who consents to a change of supplier shall not be required to provide customer account information to the supplier if the customer provides a valid form of government-issued identification issued to the customer or a sufficient alternative form of identification that allows the supplier to establish the customer’s identity accurately.”
Allows any alternative billing and payment structures (including daily, weekly, or milestone-based payments; online only billing or payment; and prepayment) agreed to by C&I customers and retail electric suppliers;
Prohibits an electric utility from using any electric storage system to participate in the wholesale market if the utility purchased or acquired that system for distribution service.
Repeals provisions of law that allowed for certain solar energy resources to apply to the Ohio Air Quality Development Authority (OAQDA) to receive payments for solar energy credits.
Allows new Electric Distribution Behind the Meter Generation Service. The new law allows an electric distribution utility to supply behind the meter electric generation service, provided that any behind the meter electric generation facilities that the utility intends to use to supply such service were filed with the Public Utilities Commission under section 4928.47 of the Revised Code, as that section existed prior to its repeal by H.B. 15 of the 136th General Assembly, no later than March 31.
Administrative Law Judge Entry Requesting Comments On Proposed Rules (07/01/2025)
25-0710-GE-ORD (06/30/2025)
(In the Matter of the Consideration of Rules as Required by Newly Adopted R.C. 4928.102 and 4929.221)

