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Ohio Revised Code

Ohio Rev. Code § 4909.154 (2026)

Consideration of management policies, practices, and organization of public utility

✓ current as of May 2026

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Effective:

January 11, 1983

Latest Legislation:

Senate Bill 378 - 114th General Assembly

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In fixing the just, reasonable, and compensatory rates, joint rates, tolls, classifications, charges, or rentals to be observed and charged for service by any public utility, the public utilities commission shall consider the management policies, practices, and organization of the public utility. The commission shall require such public utility to supply information regarding its management policies, practices, and organization.

If the commission finds after a hearing that the management policies, practices, or organization of the public utility are inadequate, inefficient, or improper, the commission may recommend management policies, management practices, or an organizational structure to the public utility.

In any event, the public utilities commission shall not allow such operating and maintenance expenses of a public utility as are incurred by the utility through management policies or administrative practices that the commission considers imprudent.

Notes of Decisions

Cited in 7 cases (1 in the last 5 years), 1983–2021 · leading case: Dayton Power & Light Co. v. Pub. Utils. Comm'n, 447 N.E.2d 733 (Ohio 1983).

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Dayton Power & Light Co. v. Pub. Utils. Comm'n, 447 N.E.2d 733 (Ohio 1983). · cites it 3× “378 as passed by the Senate included the following language, offered to amend R.C. 4909.154: “In its establishment of just and reasonable rates for public utilities under section 4909.”

Columbus S. Power Co. v. Pub. Utils. Comm'n, 620 N.E.2d 835 (Ohio 1993). · cites it 4× “See, also, R.C. 4909.154 (commission may only recommend management policies on management practices to the public utility).”

In re Application of Suburban Nat. Gas Co. (Slip Opinion), 2021 Ohio 3224 (Ohio 2021). “{¶ 34} Certainly, the General Assembly could have opted for a prudent- investment test, instead of the used-and-useful test in R.”

Cincinnati Gas & Elec. Co. v. Pub. Utils. Comm'n, 86 Ohio St. 3d 53 (Ohio 1999). · cites it 4× “Still, those expenses were in the first instance operating expenses, and, as such, they must meet the prudency test in R.C. 4909.154 before they can gain the status of “used and useful.”

Cincinnati Gas & Elec. Co. v. Pub. Util. Comm., 1999 Ohio 81 (Ohio 1999). · cites it 4× “Still, those expenses were in the first instance operating expenses, and, as such, they must meet the prudency test in R.C. 4909.154 before they can gain the status of “used and useful.”

Cleveland Elec. Illuminating Co. v. Pub. Utils. Comm'n, 466 N.E.2d 917 (Ohio 1984). “” In spite of this exchange, the commission remained skeptical as to whether CEI simply paid the wage increases in advance of the date called for in the labor contract, thus “packing” the test year in what could arguably constitute managerial imprudence under R.C. 4909.154.…”

Columbus S. Power Co. v. Pub. Util. Comm., 1993 Ohio 67 (Ohio 1993). · cites it 4× “See, also, R.C. 4909.154 (commission may only recommend management policies on management practices to the public utility).”

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