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PUC Adopts New Rules to Apply to Low-Income Customers
May 13, 2025 the Public Utilities Commission of Ohio (PUCO) issued an order adopting new rules to be contained in a new chapter of the administrative code designated Ohio Adm.Code Chapter 4901:1-44, regarding the funding mechanism pertaining to the Percentage of Income Payment Plan riders of Ohio electric distribution utilities.
“As background, on June 30, 2025, Governor DeWine signed Amended Substitute House Bill Number 96 (Am. Sub. HB 96). Among other items, Am. Sub. HB 96 adopted amendments to sections of the Ohio Revised Code that prescribed requirements for the Percentage of Income Payment Plan (PIPP) program.1 Pursuant to Am. Sub. HB 96, beginning January 1, 2026, the Universal Service Fund (USF) rider2 will be replaced with the PIPP rider on retail electric distribution rates as determined by the Commission. R.C. 4928.52. As contemplated by the legislation, the PIPP rider will recover (1) the prudently incurred costs of providing the PIPP program for each electric distribution utility (EDU); (2) the EDUs’ allocated shares for funding the low-income customer assistance programs administered by the Ohio Department of Jobs and Family Services (JFS), according to each EDU’s annual distribution service revenues; and (3) any amount necessary to fund administrative costs of the low income customer assistance programs. R.C. 4928.52(A)(1)-(3), (B)(1). Similar to the USF rider, the Commission will continue to administer the PIPP rider and perform periodic audits of each EDU’s PIPP rider. R.C. 4928.545. Furthermore, Am. Sub. HB 96 requires the Commission to adopt rules for the administration of the PIPP rider and to cooperate with, and provide assistance to, the JFS Director regarding low-income customer assistance program administration. R.C. 4928.545. The legislation also transfers the requirement to establish a competitive procurement process for the supply of competitive retail electric service for PIPP program customers from the Ohio Department of Development (ODOD) to the Commission. R.C. 4928.54.”
The newly adopted rules remain subject to the Joint Committee on Agency Rule Review (JCARR) process.
