Justia Ohio Supreme Court Opinion Summaries

Articles Posted in Utilities Law
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Moraine Wind, L.L.C. and other out-of-state wind farms applied to the Public Utilities Commission of Ohio (PUCO) for certification as eligible Ohio renewable-energy-resource-generating facilities. Carbon Solutions Group, L.L.C. (CSG), whose clients include Ohio-based renewable-energy suppliers, opposed the applications. PUCO approved the applications in September 2023. CSG filed an application for rehearing, which PUCO purported to grant for the limited purpose of further consideration, effectively extending the statutory deadline for a decision.CSG appealed PUCO's decision to the Supreme Court of Ohio, arguing that PUCO's failure to grant or deny the rehearing application within 30 days resulted in a denial by operation of law, as per R.C. 4903.10. PUCO moved to dismiss the appeal, claiming the court lacked jurisdiction because the rehearing application was still pending.The Supreme Court of Ohio held that PUCO's order granting rehearing for further consideration did not constitute a substantive grant of rehearing. The court emphasized that R.C. 4903.10 requires PUCO to grant or deny an application for rehearing within 30 days, and failure to do so results in a denial by operation of law. The court found that PUCO's practice of extending the deadline was not supported by statute and undermined the legislative intent for timely judicial review. Consequently, the court denied PUCO's motion to dismiss, affirming that CSG's application for rehearing was denied by operation of law, and the appeal was timely filed. View "In re Application of Moraine Wind, L.L.C." on Justia Law

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The case involves the Ohio Power Company’s application for an increase in electric distribution rates. The key issue is whether the Public Utilities Commission of Ohio (PUCO) allowed Ohio Power to recover costs for providing generation services through its distribution rates, which is prohibited by state law. Ohio Power’s distribution rates should only cover noncompetitive services, while generation services are competitive and should be billed separately.In the proceedings before the PUCO, Ohio Power submitted an analysis to identify costs associated with providing Standard Service Offer (SSO) and customer-choice program services, which were potentially being recovered through distribution rates. However, the PUCO found the analysis insufficient and continued to set the rates for the retail-reconciliation rider and the SSO-credit rider at zero, meaning no costs were reallocated. The PUCO’s staff and other parties, including Interstate Gas Supply (IGS), contested Ohio Power’s analysis, arguing it did not provide a detailed cost-of-service study differentiating costs between shopping and nonshopping customers.The Supreme Court of Ohio reviewed the case and affirmed the PUCO’s decision. The court held that the PUCO’s findings were supported by evidence and that the commission complied with the statutory requirements. The court found that IGS failed to demonstrate that the PUCO’s decision was unlawful or unreasonable. The court also noted that the PUCO provided sufficient detail in its orders to explain its decision-making process, thus complying with R.C. 4903.09. The court rejected IGS’s arguments that the PUCO ignored uncontroverted evidence and failed to address material issues, concluding that the PUCO’s orders were based on a thorough review of the evidence presented. View "In re Application of Ohio Power Co." on Justia Law

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The case involves East Ohio Gas Company, doing business as Dominion Energy Ohio ("Dominion"), and J. William Vigrass, individually and as executor of Virginia Vigrass’s estate. Dominion had requested access to Virginia's residence to inspect the gas meter located inside. However, due to Virginia's immunocompromised state and susceptibility to COVID-19, she denied Dominion access. Despite her account being paid in full, Dominion disconnected its natural-gas service to Virginia’s residence in January 2022. The disconnection resulted in freezing temperatures inside the residence, causing the water pipes to burst and damage the property. Virginia was later found dead in her residence.In the Cuyahoga County Court of Common Pleas, Vigrass sued Dominion on claims relating to the shutoff of its natural-gas service to Virginia’s residence. Dominion moved to dismiss the complaint for lack of subject-matter jurisdiction, arguing that the Public Utilities Commission of Ohio had exclusive jurisdiction over the claims as they related to a service issue. However, Judge Peter J. Corrigan denied Dominion’s motion, reasoning that he had jurisdiction over the complaint because Vigrass had asserted common-law claims.Dominion then filed an original action in prohibition in the Supreme Court of Ohio, asserting that Judge Corrigan patently and unambiguously lacks jurisdiction over Vigrass’s action. Dominion sought an order to prevent Judge Corrigan from exercising jurisdiction and to vacate the orders he has issued in the underlying case.The Supreme Court of Ohio granted the writ of prohibition, ordering Judge Corrigan to cease exercising jurisdiction over the underlying case and directing him to vacate the orders that he had previously issued in the case. The court concluded that both parts of the test set forth in Allstate Ins. Co. v. Cleveland Elec. Illum. Co. were met, indicating that the Public Utilities Commission of Ohio had exclusive jurisdiction over the case. The court also granted in part and denied in part Dominion's motion to strike certain parts of Vigrass's brief. View "State ex rel. E. Ohio Gas Co. v. Corrigan" on Justia Law

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This case involves an appeal from the Tenth District Court of Appeals of Ohio. The appellant is the State of Ohio, represented by the Attorney General, and the appellees are FirstEnergy Corporation, Samuel Randazzo, and a consulting company controlled by Randazzo. Randazzo, the former chairman of the Public Utilities Commission of Ohio (PUCO), allegedly received a $4.3 million bribe from FirstEnergy Corporation. The state of Ohio filed a civil action against Randazzo and his consulting company to recover the proceeds of the bribe. The state sought attachment orders to prevent Randazzo from draining his bank and brokerage accounts. The trial court granted the state’s motion ex parte, without notice to Randazzo and his attorneys. After learning about the court's decision, Randazzo requested a hearing and moved to vacate the orders. The court held a hearing with both sides present and declined to discharge the orders of attachment. Randazzo appealed to the Tenth District Court of Appeals, which found the orders of attachment had been improperly granted. The Court of Appeals determined that the state had failed to meet its burden at the ex parte hearing to establish the irreparable injury requirement.Upon appeal by the state, the Supreme Court of Ohio reversed the judgment of the Court of Appeals and reinstated the orders of the trial court. The Supreme Court held that the Court of Appeals erred by basing its decision on the ex parte requirements. The Supreme Court ruled that the court of appeals should have reviewed the trial court's denial of the motion to vacate the attachment rather than the irreparable injury requirement for an ex parte order. The Supreme Court concluded that the proper remedy for a party dissatisfied with an ex parte attachment order is to request a hearing on the order at which both parties may be heard. It also concluded that Randazzo failed to demonstrate any prejudice from the use of improper garnishment forms. View "State ex rel. Yost v. FirstEnergy Corp." on Justia Law

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The Supreme Court affirmed the orders of the Public Utilities Commission of Ohio approving a stipulation that authorized Dominion Energy Ohio to implement its capital expenditure program rider (CEP Rider), holding that the Commission's orders were not unlawful or unreasonable.Dominion filed an application to recover the costs of its capital expenditure program by establishing the CEP Rider at issue. Dominion and the Commission jointly filed a stipulation asking the Commission to approve the application subject to the staff's recommendations. The Commission modified and approved the stipulation. The Supreme Court affirmed, holding (1) the Commission did not violate an important regulatory principle in adopting the 9.91 percent rate of return; (2) the Commission did not inconsistently apply its precedent; (3) the Commission did not violate Ohio Rev. Code 4903.09; and (4) Appellants' manifest-weight-of-the-evidence argument failed. View "In re Application of East Ohio Gas Co." on Justia Law

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In this dispute over whether Ohio Power Company, a private agency authorized to appropriate property under Ohio Rev. Code 163.01(B) and (C), was entitled to any of the necessary presumptions set forth in Ohio Rev. Code 163.09(B)(1) in establishing the necessity of easements through eminent domain to upgrade electric transmission lines, the Supreme Court held that the court of appeals properly reversed the trial court's determination that the appropriations at issue were necessary.Specifically, the Supreme Court held (1) the term "appropriation" in Ohio Rev. Code 163.09(B)(1) means the appropriation of the "parcel or contiguous parcels in a single common ownership, or interest or right therein," as identified in the petition filed by an agency under Ohio Rev. Code 163.05; (2) because neither Ohio Power's board of directors nor the Ohio Siting Board reviewed the appropriations Ohio Power was not entitled to a rebuttable presumption under section 163.09(B)(1)(a) or an irrebuttable presumption under section 163.09(B)(1)(c); and (3) Ohio Power was entitled to a rebuttable presumption under section 163.09(B)(1)(b) because it provided evidence of the necessity for the appropriations. The Court remanded this case for further proceedings. View "Ohio Power Co. v. Burns" on Justia Law

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The Supreme Court affirmed in part and reversed in part the order of the Public Utilities Commission authorizing a recovery mechanism referred to as the solar-generation-fund rider (Rider SGF), holding that remand to the Commission was required as to one issue.In 2021, the Commission issued an order establishing Rider SGF as the recovery mechanism that would be used to provide revenue for a "solar generation fund" by generating funds through a monthly retail charge to customers that would be billed and collected by Ohio electric distribution utilities. The Ohio Manufacturers' Association Energy Group appealed, challenging the amount and structure of Rider SGF. The Supreme Court remanded for clarification on the issue on the whether the Commission erred when it determined that customers must also pay the commercial activity tax through Rider SGF. View "In re Establishing the Solar Generation Fund Rider" on Justia Law

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The Supreme Court affirmed the judgment of the court of appeal concluding that a municipality does not violate Ohio Const. art. XVIII, 6 by selling a surplus of electricity to customers outside the municipality's boundaries, holding that the court of appeals did not err.The City of Cleveland sold outside its boundaries approximately four percent of the electricity it sold inside its boundaries. Cleveland Electric Illuminating Company (CEI) brought this complaint arguing that the electricity the City sold extraterritorially as surplus violated this Court's decision in Toledo Edison Co. v. Bryan, 737 N.E.2d 529 (2000) and the Ohio Constitution. The trial court granted summary judgment for the City. The court of appeals reversed, determining (1) Article XVIII, Section 6 does not require a municipality to buy the precise amount of electricity required by its inhabitants at any given time, and (2) questions of material fact existed as to whether the City obtained surplus electricity for the sole purpose of selling it to a neighboring city. The Supreme Court affirmed, holding that while a municipality may not acquire excess capacity for the sole purpose of reselling it outside the municipality's territorial boundaries, the municipality is not required to purchase the exact amount of electricity necessary to satisfy the current needs of its territorial customers. View "Cleveland Electric Illuminating Co. v. Cleveland" on Justia Law

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The Supreme Court reversed the decision of the Public Utilities Commission of Ohio (PUCO) granting certification to FirstEnergy Advisors, a competitive retail electric service provider, holding that the order in this case fell short of the requirement set forth in Ohio Rev. Code 4903.09 that PUCO file "findings of fact and written opinions setting forth the reasons prompting the decisions arrived at."Two organizations in this case intervened in the PUCO proceedings and objected to the certification. Despite the objections, PUCO granted the certification request and issued a "barebones" order offering no explanation as to how FirstEnergy Advisors met the applicable legal requirements. The Supreme Court reversed PUCO's certification decision and remanded the matter to PUCO for further proceedings, holding that PUCO's order violated action 4903.09 because it failed to explain the reasoning and factual grounds for granting FirstEnergy Advisors' application. View "In re Application of FirstEnergy Advisors for Certification as a Competitive Retail Electric Service Power Broker & Aggregator" on Justia Law

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The Supreme Court affirmed the order of the Ohio Power Siting Board granting Duke Energy Ohio, Inc. a certificate of environmental compatibility and public need to construct, operate, and maintain a natural-gas pipeline, holding that the Board's decision was not manifestly against the weight of the evidence and was not so clearly unsupported by the record as to show a mistake or willful disregard of duty.Specifically, the Supreme Court held (1) assuming without deciding that the Board misapplied its filing requirements, the error was harmless; (2) the Board did not err in determining that Duke's proposal met the conditions of Ohio Rev. Code 4906.10(A)(1); (3) the Board properly accounted for the interest of safety in evaluating Duke's proposal; (4) the Board did not err by not requiring Duke to evaluate the pipeline's impact against the City of Blue Ash's most recent comprehensive plan; (5) the Board did not err in evaluating the pipeline's estimated tax benefits; and (6) the Board did not deprive Blue Ash of due process of law. View "In re Application of Duke Energy Ohio, Inc." on Justia Law