|
Server : Apache/2.4.62 System : FreeBSD fbsdweb2.web.rcn.net 14.1-RELEASE FreeBSD 14.1-RELEASE releng/14.1-n267679-10e31f0946d8 GENERIC amd64 User : www ( 80) PHP Version : 8.3.8 Disable Function : NONE Directory : /domains/enrgy/statelin/ |
Upload File : |
<html>
<head>
<title>January 2004: Ohio PUC Adopts Rules Governing Market-Based Standard
Service Offer and Competitive Bidding Process</title>
</head>
<body style="font-family: Arial" vlink="#808080">
<div align="center"><center>
<table border="0" cellpadding="8" cellspacing="0" width="98%" bgcolor="#000000">
<tr>
<td width="100%" valign="middle"><a name="top"></a>
<img src="../images/pmamagsm.gif" alt="PMA Online Magazine" border="0" align="right" width="229" height="100"></td>
</tr>
</table>
</center></div><div align="center"><center>
<table border="0" cellpadding="8" width="98%">
<tr>
<td width="15%" valign="top" align="center">
<!--webbot bot="Include" U-Include="sl_sidebar.htm" TAG="BODY" startspan -->
<table border="2" cellpadding="8" width="15%" id="table1" bordercolor="#FFFF00" bgcolor="#C0C0C0">
<tr>
<td width="100%" valign="top" align="center"><map name="FPMap0_I1">
<area href="http://www.powermarketers.com/adrates.html" shape="rect" coords="14, 297, 97, 322">
<area href="http://www.powermarketers.com/pmajobs.htm" shape="rect" coords="11, 230, 95, 257">
<area href="http://www.powermarketers.com/main.htm" target="_parent" shape="rect" coords="12, 163, 96, 189">
<area href="http://www.powermarketers.com/power2.htm" target="_blank" shape="rect" coords="12, 95, 96, 121">
<area href="../pmamag.htm" shape="rect" coords="11, 29, 96, 54"></map><img rectangle="(12,163) (96,189) http://www.powermarketers.com/main.htm##_parent" rectangle="(12,95) (96,121) http://www.powermarketers.com/power2.htm##_blank" rectangle="(11,29) (96,54) ../pmamag.htm" src="../images/magmenu.gif" alt="PMA OnLine Magazine Menu" border="0" align="center" usemap="#FPMap0_I1" width="110" height="350"><p><a href="../searchpma.htm"><img src="../images/archives.gif" alt="Archives Search" border="0" align="center" WIDTH="70" HEIGHT="40"></a></p>
<p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
<p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
Brown, Olson & Gould, P.C. which maintains a nationwide practice in energy law,
public utility law and related commercial transactions.</font></p>
<p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
<br>
<b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
Suite 301<br>
Concord, NH 03301<br>
<a href="mailto:[email protected]">[email protected]</a><br>
(603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p><a href="#top"><img src="../images/b-t-top.gif" alt="Back To Top" border="0" width="71" height="35"></a></td>
</tr>
</table>
<!--webbot bot="Include" i-checksum="45188" endspan --></td>
<td width="69%" valign="top">
<img src="../images/statelin.gif" alt="STATELINE by Robert Olson" border="0" width="375" height="75">
</center><p align="left"><b><u><br>
</u></b></p>
<center>
<p ALIGN="left"><b><u>January 2004<br>
</u><font size="6">Ohio PUC Adopts Rules Governing Market-Based Standard
Service Offer And Competitive Bidding Process</font></b><font size="6"><b><br>
</b></font><strong>by Robert Olson -- Brown, Olson and Wilson, P.C.<br>
</strong><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
200</em>4/01/23)</font></p>
<center>
<p align="left">Under Ohio law, electric distribution utilities (“EDU”) are
required to provide consumers with (1) a “market-based standard service
offer” and (2) an option to buy “competitive retail electric service [priced
through] a competitive bidding process”. ORC Ann. � 4928.14(A) and (B) (the
“Statute”). Each EDU is to make these services available after its
particular market development period terminates. The Public Utilities
Commission of Ohio (the “PUC”) recently adopted rules to implement the
statutory requirement (the “Rules” Case No. 01-2164-EL-ORD, Finding and
Order, issued December 17, 2003. The Rules set forth the general
requirements that each EDU’s standard offer and bid process must ordinarily
satisfy, but the Rules do permit an EDU to propose a plan that varies from
the Rules. <br>
<br>
The Rules provide that the standard offer and bid process are to be made
available to EDU customers who are not receiving electricity through a
competitive retail electric service supplier. Under the standard offer, the
customer will pay a market-based variable rate; under the bid process, the
customer will pay a market-based fixed rate.<br>
<br>
The standard offer’s variable rate must be based on “a transparent forward
market, daily market and/or hourly market” rate. The details of how the
determination will be made are to be proposed in each standard offer
application. The bid process’s fixed rate is the rate resulting from the
bidding process. Bids are to be solicited for the provision of retail
electric service under a supply contract with a term of between one and
three years, and the bid process must include a third-party auctioneer. The
bidders are to bid for a portion of the EDU’s load, and the customers remain
customers of the EDU. The bid process for residential and small commercial
customers must be separate from the bid process for other customer classes,
and the EDU may further subdivide the load of residential and small
commercial customers for bidding and rate purposes.<br>
<br>
Under the Rules, small and general service customers who have not switched
to a competitive supplier by the commencement of the program are to choose
between the EDU’s standard offer and bid process. Such customers who do not
make a choice receive the bid process by default. Customers who switch to a
competitive supplier but return to the EDU by choice or because their
contract has ended may also choose between the standard offer and bid
process, with the bid process being the default option. Customers who return
to the EDU because a competitive supplier failed to provide service
automatically receive service under the standard offer.</p>
<p align="left">Customers who select the bid process are free to choose
another supply option, e.g., standard offer service, at any time. Customers
who do not select the bid process, however, do not have an automatic right
to switch to the bid process without restrictions or conditions, “e.g.,
minimum stays, exit fees, pricing adjustments, etc.”, and the Rules permit
the EDU to propose such restrictions or conditions.<br>
<br>
The Rules specify that EDUs with program commencement as of January 1, 2006
must file their standard offer service and competitive bid applications by
July 1, 2004. For EDUs with an earlier program commencement date, the
standard offer service application must be filed at least six months before
program commencement “so there is at least [a standard offer] available.”
The Rule is unclear as to when such EDUs must file their bid process
application.</p>
<!--webbot bot="Include" u-include="sl_bottom.htm" tag="BODY" startspan -->
<hr color="#FFFF00">
<blockquote>
<p align="left"><font face="Arial">
<small>Robert A. Olson is a partner in the law firm of Brown, Olson &
Gould P.C.
which maintains a nationwide practice in energy law, public utility law and related
commercial transactions. He can be reached at:</small></font><p align="center">
<font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
<br>
<a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
<!--webbot bot="Include" i-checksum="27861" endspan --></td>
</tr>
</table>
</div>
<p align="center"><a href="#top">
<img src="../images/b-t-top.gif" alt="Back To Top" border="0" width="71" height="35"></a></p>
</body>
</html>