Allow alternative rate plans for certain natural gas companies
Legislative Analysis Report Allow alternative rate plans for certain natural gas companies
1. Primary Purpose of the Bill
This bill allows natural gas companies in Ohio to establish alternative rate plans and special commercial agreements to serve very large gas consumers, known as large load customers. It also changes how utility property is valued for rate-making, allowing natural gas companies to use projected future costs and multiple valuation dates to adjust their rates. Additionally, it speeds up the rate approval process by automatically approving rate applications if the Public Utilities Commission of Ohio (PUCO) does not rule on them within a set timeframe.
UtilitiesEnergyBusiness and Commerce
2. Changes to Existing Law
ORC Sec. 4903.30 Establishes strict rules for when the Public Utilities Commission of Ohio (PUCO) can approve settlements in utility cases, requiring the utility's agreement and proof that the settlement benefits ratepayers.
ORC Sec. 4909.15 Allows natural gas companies to use forecasted test periods and multiple valuation dates to adjust their base rates based on projected future property investments.
ORC Sec. 4909.42 Shortens the deadline for PUCO to rule on rate increase applications from 545 days to 365 days, after which the rate increase is automatically approved as a matter of law without refund obligations.
ORC Sec. 4929.052 Permits natural gas companies to use projected test periods of up to two years for annual rider rate adjustments or include construction work in progress in their revenue requirements.
ORC Sec. 4929.053 Mandates PUCO approval for alternative rate plans designed to recover costs associated with complying with federal or state environmental and safety regulations.
ORC Sec. 4929.054 to 4929.0510 Creates a framework for natural gas companies to enter into special commercial agreements with large load customers (those using over 1.2 million Mcf of gas annually) under alternative rate plans that are fast-tracked for approval.
3. Key Information for Citizens
🗳️ What You Need to Know
- Natural gas companies will be able to adjust customer rates based on projected future spending rather than just historical costs.
- If the state utility commission (PUCO) fails to make a decision on a gas company's rate increase request within 365 days, the rate hike is automatically approved and customers cannot get refunds.
- Large industrial gas users consuming over 1.2 million Mcf of gas per year can enter into customized, fast-tracked contracts with gas companies, and the revenue from these deals will not count against the gas company in standard rate cases.
- Gas companies can more easily pass safety and environmental compliance costs directly to customers through special rate adjustments.
4. Entities Affected
- Natural gas companies
- Large industrial gas consumers
- Residential and commercial natural gas ratepayers
- Public Utilities Commission of Ohio (PUCO)
5. Regulatory Impact & Enforcement
Agency Authority: The Public Utilities Commission of Ohio (PUCO) is given new guidelines for approving utility settlements, reviewing forecasted test periods, and fast-tracking alternative rate plans and commercial agreements for large load customers.
Penalties & Mandates: Not applicable
Implementation Timeline: Not applicable
6. Estimated Fiscal Impact
State Revenue Impact
Not applicable
Local Government Impact
Not applicable
Implementation Costs
Not applicable
Net Annual Fiscal Effect
Not applicable
Policy doesn’t happen in a vacuum. Meet the representatives and senators who introduced this bill and are pushing it through the chamber. Click on any sponsor to see their district, party affiliation, and what other legislation they’ve championed this session.
Primary Sponsors
Shane Wilkin
District
17
Chamber
Senate
Party
Republican
Co-Sponsors
Related Topics
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Taxation & Finance
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Environment
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Business & Commerce
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Local Government
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Most legislative decisions are made in committee rooms, not on the chamber floor. Here, you can track which committees have been assigned to review, amend, or report on this bill. Stay informed on where the bill is currently being debated and which chairpersons hold the power to move it forward.
Status Changes
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Senate |
Governor |
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Referred to committee
Oct 22 2025
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Referred to committee
Feb 19 2025
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Reported - Substitute
Oct 15 2025
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Sent To The Governor
Dec 09 2025
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Signed By The Governor
Dec 19 2025
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Documents
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