(A)For the purpose of complying with section4928.141of the Revised Code and subject to division (D) of this section and, as applicable, subject to the requirements of division (A) of section4928.141of the Revised Code, an electric distribution utility shall establish a standard service offer price for retail electric generation service that is delivered to the utility under a market-rate offer.
(1)The market-rate offer shall be determined through a competitive bidding process that provides for all of the following:
(a)Open, fair, and transparent competitive solicitation;
(b)Clear product definition;
(c)Standardized bid evaluation criteria;
(d)Oversight by an independent third party that shall design the solicitation, administer the bidding, and ensure that the criteria specified
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(A) For the purpose of complying with section4928.141of the Revised Code and subject to division (D) of this section and, as applicable, subject to the requirements of division (A) of section4928.141of the Revised Code, an electric distribution utility shall establish a standard service offer price for retail electric generation service that is delivered to the utility under a market-rate offer.
(1) The market-rate offer shall be determined through a competitive bidding process that provides for all of the following:
(a) Open, fair, and transparent competitive solicitation;
(b) Clear product definition;
(c) Standardized bid evaluation criteria;
(d) Oversight by an independent third party that shall design the solicitation, administer the bidding, and ensure that the criteria specified in divisions (A)(1)(a) to (c) of this section are met;
(e) Evaluation of the submitted bids prior to the selection of the least-cost bid winner or winners.
No generation supplier shall be prohibited from participating in the bidding process.
(2) The public utilities commission shall modify rules, or adopt new rules as necessary, concerning the conduct of the competitive bidding process and the qualifications of bidders, which rules shall foster supplier participation in the bidding process and shall be consistent with the requirements of division (A)(1) of this section.
(B) Prior to initiating a competitive bidding process for a market-rate offer under division (A) of this section, the electric distribution utility shall file an application with the commission. An electric distribution utility may file its application with the commission prior to the effective date of the commission rules required under division (A)(2) of this section, and, as the commission determines necessary, the utility shall immediately conform its filing to the rules upon their taking effect.
An application under this division shall detail the electric distribution utility's proposed compliance with the requirements of division (A)(1) of this section and with commission rules under division (A)(2) of this section and demonstrate that all of the following requirements are met:
(1) The electric distribution utility or its transmission service affiliate belongs to at least one regional transmission organization that has been approved by the federal energy regulatory commission; or there otherwise is comparable and nondiscriminatory access to the electric transmission grid.
(2) Any such regional transmission organization has a market-monitor function and the ability to take actions to identify and mitigate market power or the electric distribution utility's market conduct; or a similar market monitoring function exists with commensurate ability to identify and monitor market conditions and mitigate conduct associated with the exercise of market power.
(3) A published source of information is available publicly or through subscription that identifies pricing information for traded electricity on- and off-peak energy products that are contracts for delivery beginning at least two years from the date of the publication and is updated on a regular basis.
The commission shall initiate a proceeding and, within ninety days after the application's filing date, shall determine by order whether the electric distribution utility and its market-rate offer meet all of the foregoing requirements. If the finding is positive, the electric distribution utility shall initiate its competitive bidding process. If the finding is negative as to one or more requirements, the commission in the order shall direct the electric distribution utility regarding how any deficiency shall be timely remedied to the commission's satisfaction.
(C) Upon the completion of the competitive bidding process authorized by divisions (A) and (B) of this section, the commission shall select the least-cost bid winner or winners of that process, and such selected bid or bids, as prescribed as retail rates by the commission, shall be the electric distribution utility's standard service offer unless the commission, by order issued before the third calendar day following the conclusion of the competitive bidding process for the market rate offer, determines that one or more of the following criteria were not met:
(1) Each portion of the bidding process was oversubscribed, such that the amount of supply bid upon was greater than the amount of the load bid out.
(2) There were four or more bidders.
(3) At least twenty-five per cent of the load is bid upon by one or more persons other than the electric distribution utility.
All costs incurred by the electric distribution utility as a result of or related to the competitive bidding process or to procuring generation service to provide the standard service offer, including the costs of energy and capacity and the costs of all other products and services procured as a result of the competitive bidding process, shall be timely recovered through the standard service offer price, and, for that purpose, the commission shall approve a reconciliation mechanism, other recovery mechanism, or a combination of such mechanisms for the utility.
(D) The application filed under this section by an electric distribution utility shall require that the utility's standard service offer load be competitively bid under division (A) of this section.
Last updated May 22, 2025 at 12:45 PM