On August 28, 2006 the staff of the Public Utilities Commission of Ohio (PUCO) submitted a report outlining recommendations to the Commission regarding Ohio’s interest in the Federal Energy Policy Act of 2005 (EPAct 2005).

In developing the recommendations, PUCO staff identified a need for Ohio to adapt to the changing energy environment. Further, the staff identified areas where more opportunities for advanced energy could be provided.

The recommendations address the areas of net metering, smart metering, demand response, cogeneration, and small power production, including the sale of stand-by power, interconnection, and other relevant areas.

The PUCO Staff recommendations include, but are not limited to, the following:

• Develop an advanced energy portfolio for Ohio that would best integrate alternative energy standards into Ohio’s retail electricity market.
• Eliminate rules that place limits on net metering and streamline the interconnection rules that would allow for simplified applications and fee schedules.
• Require Ohio’s electric distribution utility companies to file a comprehensive list of Advanced Metering Infrastructure (AMI) technologies and costs and identify types of customers and their related load shapes.
• Utilize the McKinsey model to evaluate the costs and benefits of AMI deployment strategies.
• Revise Ohio’s interconnection rules to include all interconnection services in the electric distribution utility companies’ tariffs to ensure they are accessible for the interconnection service customer.
• Bill supplemental power and scheduled maintenance according to the tariff rate schedules and provide market options. Establish the Commission as a liaison to self-generators for interpreting tariff provision and facilitating interconnection processes.
• Analyze the electric distribution utility companies’ transmission and distribution systems to identify locations where distributed generation could improve operations and provide additional generation benefits.

None of the recommendations outlined by PUCO staff require a law change. All of the recommended changes can be accomplished under the Commission’s jurisdiction.

In a memo to PUCO Chairman Alan R. Schriber on Dec. 7, 2005, Gov. Bob Taft directed the PUCO to work with stakeholders and the Governor’s Cabinet to develop and implement measures to promote new sources of energy.

On Dec. 14, 2005, the Commission initiated a proceeding to review the Commission’s actions regarding provisions of the Federal Energy Policy Act of 2005 (EPAct 2005). EPAct 2005 amends the Public Utility Regulatory Policies Act of 1978 and requires state regulatory agencies, like the PUCO, to consider and make a determination regarding net metering, smart metering, cogeneration, small power production purchase and sale requirements, and interconnection.

The PUCO hosted a series of four technical conferences for interested persons to learn more about the topics of the Commission’s review. Technical conferences were held at the PUCO on Feb. 24, 2006 on the topics of net metering and fuel diversity; on March 9, 2006 on the topics of distributed generation and interconnection; on March 23, 2006 on the topic of the sale of stand-by power, and on April 6, 2006 on the topics of smart metering and demand response.

The PUCO received comments from a variety of interested parties, including Ohio’s electric distribution utility companies, consumer groups, energy marketers, industrial energy users and manufacturing associations, environmental councils, alternative energy corporations, farming associations, universities, and state and federal agencies and departments, among others.

In developing the recommendations submitted to the Commission today, PUCO staff considered the statements and recommendations presented in the technical conferences and outlined in comments filed in the case docket.

A copy of the PUCO Staff report outlining the recommendations is available here. Click on the link to Docketing Information System and enter the case number 05-1500-EL-COI.

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