OhioSB 103136th General Assembly (2025-2026)SenateWALLET

Allow alternative rate plans for certain natural gas companies

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 6 benefits, 0 costs, 4 mixed.

Forecasted utility rates limit extra charges

Utilities using forecasted rates generally cannot add separate capital-investment charges on top of base rates. Previously approved capital-investment charges end when the new rates begin. The required forecast-to-actual adjustment mechanism remains allowed, as do natural gas infrastructure development charges. These limits do not guarantee a lower total bill.

Large gas deals must protect customers

Gas companies with a pending or approved infrastructure development charge can seek special plans for very large customers. Eligible customers use, or are expected to use, more than 1,200,000 Mcf of gas in a 12-month period. Plans must prevent direct or indirect cost shifts to customers outside the plan, including costs from unused infrastructure. Agreements must provide a monthly credit tied to the annual infrastructure development charge to compensate other customers for system use. The credit is set in a separate proceeding that allocates costs among customers. Approval also requires an economic development support letter and company certification that plan costs will not raise other customers' base rates.

Water customers get line replacement help

Water companies can replace customer-owned lines during main replacement work, emergencies, company lead-line programs, or legally required replacements. Customers keep legal ownership, and companies are not required to replace every customer-owned line. If you replaced your line, the company must reimburse you after confirming it was lead or another material requiring replacement. Request reimbursement within 12 months after the work is completed; the law does not set the payment amount. Rate-case property reports must include company and customer line replacement costs, checks of unknown line materials, and customer reimbursements.

More power systems qualify as generators

More systems can qualify under Ohio's definition of a linear generator, including systems made from specified components. They no longer need to operate without a flame or spark or support multiple fuels. They must still turn straight-line motion directly into electricity and adjust power output across all loads.

Large gas companies face regular reviews

Natural gas companies serving 250,000 or more customers must file a rate case by December 31, 2029. They must file again at least every three years. These reviews do not guarantee lower customer bills.

Utilities must disclose rate-setting financial details

Utilities choosing forecasted rates must supply full-book financial information and itemized reports of expected property values. These reports replace the ordinary property-reporting rules and detail land, property costs, leases, and depreciation reserves. Gas, water, and sewer companies using the fixed-date option report property expected to be used and useful on that date. Rate filings must show the area's share of property values, income, and costs; water reports also include line replacements and reimbursements. Ohio's utility commission can require more detail and must protect trade secrets and private business information. Final property values are public and serve as evidence unless rebutted. The commission sets a fair return with reference to existing debt costs; allowed annual revenue combines that return with service costs. On request, it can spread tax costs across accounting periods, preserving tax benefits and preventing retention beyond operating and construction needs.

Electric transmission charges become less prescriptive

Ohio's utility commission no longer must require a charge that all distribution customers pay for standard-offer transmission services. This removes the required collection method for transmission, support services, congestion, and related costs. The commission can still allow a separate transmission charge that is adjusted to match actual costs. The law does not establish whether household bills rise or fall.

Utilities can set three-year forecasted rates

Electric, gas, water, and sewer companies can request base rates for three consecutive 12-month periods in one case. Year one uses a 13-month average of property values; years two and three adjust for approved added investments. All three years require adjustments comparing forecasts with actual investments, income, and costs, including returns on actual investments. Only property found used and useful qualifies, and the company must file another rate case after year three. The separate 12-month test-period option remains: it can start up to six months before filing and end nine months afterward.

Utility rate cases face firm deadlines

The law covers electric, gas, water, and sewer applications seeking higher rates or changes to practices affecting rates. After 275 days without a final decision, the utility can request a temporary increase; any party can request a decrease. Temporary changes cannot exceed the midpoint of staff-recommended rates and remain subject to later adjustments and refunds. They last until the commission's final decision. The commission must approve, deny, or modify the application within 360 days after filing, or it is automatically approved.

Large gas deals get faster approval

Gas companies can negotiate large-customer rates and service terms that differ from their most recent approved rates. Filed agreements are automatically approved unless the commission finds a legal conflict within 90 days. Special rate plans are approved after 90 days unless the commission suspends approval for good cause. After suspension, another 90 days without an order also triggers approval. Approved plan applications do not count as rate-increase applications, and payments under approved agreements do not count as revenue in ordinary rate cases.

Sponsors & Cosponsors

Sponsor

Shane Wilkin
Republican • Senate

Cosponsors

Adam C. Bird
Republican • House
Adam Holmes
Republican • House
Adam Mathews
Republican • House
Al Cutrona
Republican • Senate
Andrea White
Republican • House
Andrew O. Brenner
Republican • Senate
Angela N. King
Republican • House
Ashley Bryant Bailey
Democratic • House
Bernard Willis
Republican • House
Bill Reineke
Republican • Senate
Bill Roemer
Republican • House
Bob Peterson
Republican • House
Brian Lampton
Republican • House
Brian Lorenz
Republican • House
Brian M. Chavez
Republican • Senate
C. Allison Russo
Democratic • House
Casey Weinstein
Democratic • Senate
Catherine D. Ingram
Democratic • Senate
Chris Glassburn
Democratic • House
D. J. Swearingen
Republican • House
Derrick Hall
Democratic • House
Elgin Rogers, Jr.
Democratic • House
Gary Click
Republican • House
Haraz N. Ghanbari
Republican • House
Hearcel F. Craig
Democratic • Senate
Ismail Mohamed
Democratic • House
Jane M. Timken
Republican • Senate
Jean Schmidt
Republican • House
Jerry C. Cirino
Republican • Senate
Jodi Salvo
Republican • House
Johnathan Newman
Republican • House
Joseph A. Miller, III
Democratic • House
Josh Williams
Republican • House
Karen Brownlee
Democratic • House
Kellie Deeter
Republican • House
Kent Smith
Democratic • Senate
Kevin Ritter
Republican • House
Mark Hiner
Republican • House
Mark Sigrist
Democratic • House
Matthew Kishman
Republican • House
Michael D. Dovilla
Republican • House
Monica Robb Blasdel
Republican • House
Munira Abdullahi
Democratic • House
Paula Hicks-Hudson
Democratic • Senate
Phil Plummer
Republican • House
Roy Klopfenstein
Republican • House
Sean P. Brennan
Democratic • House
Sharon A. Ray
Republican • House
Terrence Upchurch
Democratic • House
Terry Johnson
Republican • Senate
Tex Fischer
Republican • House
Theresa Gavarone
Republican • Senate
Tim Barhorst
Republican • House
Tom Young
Republican • House
Ty D. Mathews
Republican • House
William P. DeMora
Democratic • Senate
Willis E. Blackshear, Jr.
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 152 • No: 0

House vote • 11/19/2025

Passed

Yes: 91 • No: 0

House vote • 11/18/2025

Energy: Reported

Yes: 21 • No: 0

Senate vote • 10/15/2025

Public Utilities: Reported

Yes: 9 • No: 0