Ohio Code § 4928.39

§ 4928.39.

Upon the filing of an application by an electric utility under section 4928.31 of the Revised Code for the opportunity to receive transition revenues under sections 4928.31 to 4928.40 of the Revised Code , the public utilities commission, by order under section 4928.33 of the Revised Code , shall determine the total allowable amount of the transition costs of the utility

to be received as transition revenues under those sections.  Such amount shall be the just and reasonable transition costs of the utility, which

costs the commission finds meet all of the following criteria: (A) The costs were prudently incurred. (B) The costs are legitimate, net, verifiable, and directly assignable or allocable to

retail electric generation service provided to electric consumers in this state. (C) The costs are unrecoverable in a competitive market. (D) The utility would otherwise be entitled an opportunity to recover the costs. Transition costs under this section shall include the costs of employee assistance

under the employee assistance plan included in the utility's approved transition plan

under section 4928.33 of the Revised Code , which costs exceed those costs contemplated in labor contracts in effect on the

effective date of this section. Further, the commission's order under this section shall separately identify regulatory

assets of the utility that are a part of the total allowable amount of transition

costs determined under this section and separately identify that portion of a transition

charge determined under section 4928.40 of the Revised Code that is allocable to those assets, which portion of a transition charge shall be

subject to adjustment only prospectively and after December 31, 2004, unless the commission

authorizes an adjustment prospectively with an earlier date for any customer class

based upon an earlier termination of the utility's market development period pursuant

to division (B)(2) of section 4928.40 of the Revised Code . The electric utility shall have the burden of demonstrating allowable transition costs

as authorized under this section.  The commission may impose reasonable commitments upon the utility's collection of

the transition revenues to ensure that those revenues are used to eliminate the allowable

transition costs of the utility during the market development period and are not available

for use by the utility to achieve an undue competitive advantage, or to impose an

undue disadvantage, in the provision by the utility of regulated or unregulated products

or services.