Ohio Code § 4928.12

§ 4928.12.

(A) Except as otherwise provided in sections 4928.31 to 4928.40 of the Revised Code , no entity shall own or control transmission facilities as defined under federal

law and located in this state on or after the starting date of competitive retail

electric service unless that entity is a member of, and transfers control of those

facilities to, one or more qualifying transmission entities, as described in division

(B) of this section, that are operational. (B) An entity that owns or controls transmission facilities located in this state complies

with division (A) of this section if each transmission entity of which it is a member

meets all of the following specifications: (1) The transmission entity is approved by the federal energy regulatory commission. (2) The transmission entity effects separate control of transmission facilities from

control of generation facilities. (3) The transmission entity implements, to the extent reasonably possible, policies and

procedures designed to minimize pancaked transmission rates within this state. (4) The transmission entity improves service reliability within this state. (5) The transmission entity achieves the objectives of an open and competitive electric

generation marketplace, elimination of barriers to market entry, and preclusion of

control of bottleneck electric transmission facilities in the provision of retail

electric service. (6) The transmission entity is of sufficient scope or otherwise operates to substantially

increase economical supply options for consumers. (7) The governance structure or control of the transmission entity is independent of

the users of the transmission facilities, and no member of its board of directors

has an affiliation, with such a user or with an affiliate of a user during the member's

tenure on the board, such as to unduly affect the transmission entity's performance.  For the purpose of division (B)(7) of this section, a “ user ” is any entity or affiliate of that entity that buys or sells electric energy in

the transmission entity's region or in a neighboring region. (8) The transmission entity operates under policies that promote positive performance

designed to satisfy the electricity requirements of customers. (9) The transmission entity is capable of maintaining real-time reliability of the electric

transmission system, ensuring comparable and nondiscriminatory transmission access

and necessary services, minimizing system congestion, and further addressing real

or potential transmission constraints. (C) To the extent that a transmission entity under division (A) of this section is authorized

to build transmission facilities, that transmission entity has the powers provided

in and is subject to sections 1723.01 to 1723.08 of the Revised Code . (D) For the purpose of forming or participating in a regional regulatory oversight body

or mechanism developed for any transmission entity under division (A) of this section

that is of regional scope and operates within this state: (1) The commission shall make joint investigations, hold joint hearings, within or outside

this state, and issue joint or concurrent orders in conjunction or concurrence with

any official or agency of any state or of the United States, whether in the holding

of those investigations or hearings, or in the making of those orders, the commission

is functioning under agreements or compacts between states, under the concurrent power

of states to regulate interstate commerce, as an agency of the United States, or otherwise. (2) The commission shall negotiate and enter into agreements or compacts with agencies

of other states for cooperative regulatory efforts and for the enforcement of the

respective state laws regarding the transmission entity. (E) If a qualifying transmission entity is not operational as contemplated in division

(A) of this section, division (A)(13) of section 4928.34 of the Revised Code , or division (G) of section 4928.35 of the Revised Code , the commission by rule or order shall take such measures or impose such requirements

on all for-profit entities that own or control electric transmission facilities located

in this state as the commission determines necessary and proper to achieve independent,

nondiscriminatory operation of, and separate ownership and control of, such electric

transmission facilities on or after the starting date of competitive retail electric

service.