Justia Ohio Supreme Court Opinion Summaries

Articles Posted in Utilities Law
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The Northeast Ohio Regional Sewer District (the “Sewer District”) filed an action seeking a declaratory judgment that it had the authority to implement a regional stormwater-management program and to impose fees to be charged to landowners within the Sewer District. The trial court declared that the Sewer District had authority under Ohio Rev. Code 6119 and its charter to enact a regional stormwater-management program. The court of appeals reversed. The Supreme Court reversed, holding that the Sewer District has authority to implement a regional stormwater-management program and to charge fees for that program. View "Northeast Ohio Reg’l Sewer Dist. v. Bath Twp." on Justia Law

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This appeal stemmed from an order of the Public Utilities Commission of Ohio authorizing the East Ohio Gas Company (“Dominion”) to discontinue the availability of the “standard choice offer” for its nonresidential customers. In so doing, the Commission took another step toward deregulation of the company’s “commodity-sales services.” To take this step, the Commission modified one of its previous orders. Ohio Partners for Affordable Energy (OPAE), an advocacy group representing its members who are nonresidential customers of Dominion, appealed, arguing that the Commission lacked statutory authority and an evidentiary basis to modify its previous order and also erred in adopting a stipulation that OPAE did not sign. The Supreme Court affirmed the Commission’s order, holding (1) Dominion was entitled to a modification of an exemption order under Ohio Rev. Code 4929.08(A); and (2) the order did not violate Ohio Rev. Code 4903.09. View "In re Application to Modify the Exemption Granted to E. Ohio Gas Co." on Justia Law

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The Public Utilities Commission of Ohio (PUCO) approved a mechanism called a phase-in recovery rider (PIRR) for Ohio Power Company to recover fuel costs that were incurred under Ohio Power’s first electric-security plan (ESP) but were deferred for future collection. In approving Ohio Power’s PIRR application, PUCO modified part of the portion of its order approving Ohio Power’s first ESP that established the carrying-charge rate. The end result was the reduction of Ohio Power’s recovery of carrying charges by more than $130 million. The Supreme Court reversed PUCO’s order insofar as it reduced the carrying-charge rate, holding that the order violated Ohio Rev. Code 4928.143(C)(2)(a) by depriving Ohio Power of its right to withdraw the modified ESP. Remanded. View "In re Application of Ohio Power Co." on Justia Law

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Upon its implementation of an automated-meter-reading (“AMR”) program, the East Ohio Gas Company, d/b/a Dominion East Ohio (“Dominion”), sought to recover costs associated with its AMR program. The Public Utilities Commission (“Commission”) reduced Dominion’s proposed customer charge from $0.54 per customer per month to $0.42 per customer per month because Dominion had allegedly failed to timely implement the AMR program. The Supreme Court reversed in part and affirmed in part, holding that the Commission’s order was substantively unreasonable because its reduction of Dominion’s AMR charge was not rationally tied to Dominion’s alleged failure to meet certain deadlines. Remanded.View "In re Application of E. Ohio Gas Co." on Justia Law

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Buckeye Energy Brokers, a certified provider of competitive retail electric service a competitive retail natural-gas service, filed an amended complaint with the Public Utilities Commission of Ohio against Palmer Energy Company, an energy-management and consulting firm. Buckeye claimed that Palmer, one of its alleged competitors, violated Ohio Rev. Code 4928.08 and 4929.20 by acting without a certificate as a broker in arranging for the supply of competitive retail electric and natural-gas services in Ohio. The Commission held that Buckeye failed to prove its allegations, concluding that Palmer had provided services to clients as a consultant, not as a broker. The Supreme Court dismissed Buckeye’s appeal without reaching the merits, holding that Buckeye failed to show that it suffered prejudice or harm from the Commission’s orders. View "In re Complaint of Buckeye Energy Brokers v. Palmer Energy Co." on Justia Law

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This appeal stemmed from the Public Utilities Commission’s first annual review of the fuel-adjustment clause (FAC) mechanism that was part of the first electric security plan (ESP) for two American Electric Power operating companies, Columbus Southern Power and Ohio Power Company. The FAC allowed the companies to recover fuel costs for providing generation service as those costs were incurred without being required to file a new rate case. An auditor found that the companies had underrecovered fuel costs through the FAC in 2009. After review, the Commission concluded (1) all of the proceeds that AEP had received from a 2008 contract settlement agreement with a coal supplier should be offset against Ohio Power’s FAC underrecovery; and (2) only the share of the settlement proceeds allocable to Ohio retail customers must be credited. Ohio Power appealed, and Industrial Energy Users-Ohio (IEU) cross-appealed. The Supreme Court affirmed the Commission’s orders, holding that Ohio Power and IEU did not carry their burden of showing reversible error in the Commission’s orders. View "In re Fuel Adjustment Clauses for Columbus S. Power Co. & Ohio Power Co." on Justia Law

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The Public Utilities Commission ("PUCO") approved of the first electric security plan of American Electric Power operating companies (collectively, “AEP”). The Supreme Court held that the Commission committed reversible error on three issues, including (1) approving the recovery of carrying costs associated with environmental investments without proper statutory authority, and (2) authorizing the provider-of-last-resort (“POLR”) charge without sufficient evidence. On remand, the Commission determined that the environmental-investment carrying costs were lawful but determined that the AEP had not presented evidence of its actual POLR costs and directed the company to deduct that charge from its tariff schedules. Following rehearing, the Office of Consumers’ Counsel (OCC) and Industrial Energy Users-Ohio (IEU) filed an appeal raising several challenges to the Commission’s remand orders. The Supreme Court affirmed the orders of the Commission, holding that OCC and IEU did not carry their burden of showing reversible error in the Commission’s remand orders. View "In re Application of Columbus S. Power Co." on Justia Law

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Appellant purchased telephone and other telecommunications services from (intervening) Appellee at wholesale rates and resold the services to end-user consumers at retail rates. Appellant filed a complaint with the Public Utilities Commission (PUCO) alleging that Appellee had overcharged for its services and submitted inaccurate billing invoices to Appellant, among other things. PUCO denied the complaint, concluding that Appellant failed to submit sufficient credible evidence that Appellee had refused to issue credits for valid billing disputes. The Supreme Court affirmed, holding that Appellant failed to carry its burden on appeal of demonstrating that PUCO's orders were unreasonable or unlawful. View "OHIOTELNET.COM, INC. v. Windstream Ohio, Inc." on Justia Law

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Appellant filed a complaint and amended complaint against the Ohio Edison Company, a public utility, alleging that Ohio Edison had unlawfully removed the electric meter from his property and disconnected his electric service. The Public Utilities Commission found that Ohio Edison was justified in removing the meter and terminating electric service where (1) Appellant had never made an application for new service under Ohio Edison's tariff and therefore was not a customer of Ohio Edison, and (2) Ohio Edison properly removed the electric meter without prior notice because the meter had been tampered with and was a safety hazard. The Supreme Court affirmed, holding that Appellant failed to demonstrate that the Commission erred in finding that (1) Appellant was not a customer of Ohio Edison at the property in question; and (2) Ohio Edison had lawfully disconnected electric service to the property. View "Smith v. Ohio Edison Co." on Justia Law

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Appellant, a public utility (Utility), provided natural gas to intervening Appellee, an apartment complex. In 2008, Utility informed Appellee that it would disconnect gas service to the entire complex if Appellee did not bring all apartment units into compliance with the National Fire Protection Association's National Fuel Gas Code (NFG Code) within two months. Appellee subsequently filed a complaint against Utility with the Public Utilities Commission (Commission), alleging that Utility had unreasonably and unlawfully threatened to disconnect gas service to all units if Appellee refused to retrofit the ventilation system in each apartment to meet NFG Code requirements. The complaint requested that the Commission prohibit Utility from terminating service and requiring expensive remedial construction. The Commission found in favor of Appellee. The Supreme Court affirmed, holding that none of Utility's six propositions of law had merit. View "Cameron Creek Apartments v. Columbia Gas of Ohio, Inc." on Justia Law