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PUCO Adopts New PIPP Rules
On May 13, 2026 the Public Utilities Commission (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 (PIPP) riders of utilities
Under this order, (1) beginning 1/1/26, the PIPP rider will replace the existing Universal Service Fund (USF) rider to fund low-income electric assistance programs; (2) the PIPP rider will recover program, low-income assistance, and administrative costs, allocated by distribution revenues. Utilities must remit payments annually, and rider changes take effect after 45 days if not acted on by the PUCO; (3) establishes a competitive auction process to procure generation supply for PIPP customers, requiring initial bids below the standard service offer, with supplemental auctions permitted if needed, and contracts generally lasting 12 months; (4) the PUCO will conduct periodic audits of each utility’s PIPP rider to ensure compliance; and (5) the PUCO rejected proposals to cap auction prices at the SSO level.
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