COLUMBUS, Ohio — A new Ohio law that changes how certain utilities set their rates will take effect March 20, altering the regulatory framework used to determine natural gas and other utility charges for consumers.
Senate Bill 103, signed by Gov. Mike DeWine, modifies the ratemaking process for natural gas, water, and sewage utilities by allowing them to use a forecasted test period when applying for rate adjustments before the Public Utilities Commission of Ohio (PUCO). Under the law, utilities may propose base rates covering three consecutive 12-month periods, with annual reconciliations to align projected costs and revenues with actual results.
The legislation also establishes standardized timelines for rate cases. If proceedings are not concluded within 275 days, utilities may request temporary rate increases, while other parties may seek temporary decreases. PUCO must issue a final order within 360 days, or the application may be deemed approved under the statute.
In addition, the law requires large natural gas utilities serving at least 25,000 customers to file rate cases by Dec. 31, 2029, and at least every three years thereafter. The measure also restricts certain cost-recovery riders tied to capital investments when a forecasted test period is used, though existing infrastructure-related riders may still apply in specific cases.
The law permits alternative rate plans linked to commercial agreements with large-load customers, with expedited review timelines by regulators. Payments associated with those agreements are not treated as revenue in traditional ratemaking proceedings under the statute.
State fiscal analysts have indicated the measure may result in indirect impacts on utility costs depending on future rate filings and regulatory decisions. The law does not directly change current utility rates, and any effect on consumer bills would occur through future PUCO-approved rate cases under the revised framework.