Ohio Code § 4928.142

§ 4928.142.

(A) For the purpose of complying with section 4928.141 of the Revised Code and subject to division (D) of this section and, as applicable, subject to the requirements

of division (A) of section 4928.141 of 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.