Ohio Rev. Code » Chapter 4928
Ohio Revised Code

Ohio Rev. Code § 4928.37 (2026)

Receiving transition revenues

✓ current as of May 2026
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Effective:
October 5, 1999
Latest Legislation:
Senate Bill 3 - 123rd General Assembly
PDF:
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(A)(1) Sections 4928.31 to 4928.40 of the Revised Code provide an electric utility the opportunity to receive transition revenues that may assist it in making the transition to a fully competitive retail electric generation market. An electric Utility for which transition revenues are approved pursuant to sections 4928.31 to 4928.40 of the Revised Code shall receive those revenues through both of the following mechanisms beginning on the starting date of competitive retail electric service and ending on the expiration date of its market development period as determined under section 4928.40 of the Revised Code:

(a) Payment of unbundled rates for retail electric services by each customer that is supplied retail electric generation service during the market development period by the customer's electric distribution utility, which rates shall be specified in schedules filed under section 4928.35 of the Revised Code;

(b) Payment of a nonbypassable and competitively neutral transition charge by each customer that is supplied retail electric generation service during the market development period by an entity other than the customer's electric distribution utility, as such transition charge is determined under section 4928.40 of the Revised Code. The transition charge shall be payable by each such retail electric distribution service customer in the certified territory of the electric utility for which the transition revenues are approved and shall be billed on each kilowatt hour of electricity delivered to the customer by the electric distribution utility as registered on the customer's meter during the utility's market development period as kilowatt hour is defined in section 4909.161 of the Revised Code or, if no meter is used, as based on an estimate of kilowatt hours used or consumed by the customer. The transition charge for each customer class shall reflect the cost allocation to that class as provided under bundled rates and charges in effect on the day before the effective date of this section. Additionally, as reflected in section 4928.40 of the Revised Code, the transition charges shall be structured to provide shopping incentives to customers sufficient to encourage the development of effective competition in the supply of retail electric generation service. To the extent possible, the level and structure of the transition charge shall be designed to avoid revenue responsibility shifts among the utility's customer classes and rate schedules.

(2)(a) Notwithstanding division (A)(1)(b) of this section, the transition charge shall not be payable on electricity supplied by a municipal electric utility to a retail electric distribution service customer in the certified territory of the electric utility for which the transition revenues are approved, if the municipal electric utility provides electric transmission or distribution service, or both services, through transmission or distribution facilities singly or jointly owned or operated by the municipal electric utility, and if the municipal electric utility was in existence, operating, and providing service as of January 1, 1999.

(b) The transition charge shall not be payable on electricity supplied or consumed in this state except such electricity as is delivered to a retail customer by an electric distribution utility and is registered on the customer's meter during the utility's market development period or, if no meter is used, is based on an estimate of kilowatt hours used or consumed by the customer. However, no transition charge shall be payable on electricity that is both produced and consumed in this state by a self-generator.

(3) The transition charge shall not be discounted by any party.

(4) Nothing prevents payment of all or part of the transition charge by another party on a customer's behalf if that payment does not contravene sections 4905.33 to 4905.35 of the Revised Code or this chapter.

(B) The electric utility shall separately itemize and disclose, or cause its billing and collection agent to separately itemize and disclose, the transition charge on the customer's bill in accordance with reasonable specifications the commission shall prescribe by rule under division (A) of section 4928.06 of the Revised Code.
Notes of Decisions
Cited in 7 cases, 2002–2016 · leading case: In re Application of Columbus S. Power Co. (Slip Opinion), 2016 Ohio 1608 (Ohio 2016).
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In re Application of Columbus S. Power Co. (Slip Opinion), 2016 Ohio 1608 (Ohio 2016). · cites it 10× “2d 648 , ¶ 14; R.C. 4928.37 and 4928.39. In general, these are generation costs that the utility incurred to serve its customers that would have been recovered through regulated rates before competition began, but that are no longer recoverable from customers who have switched…”
Monongahela Power Co. v. Pub. Utils. Comm'n, 2004 Ohio 6896 (Ohio 2004). · cites it 4× “34(A)(12); R.C. 4928.37; Ohio Admin. Code § 4901:1-20-03.”
AK Steel Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 81 (Ohio 2002). · cites it 4× “AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
Constellation NewEnergy, Inc. v. Pub. Utils. Comm'n, 104 Ohio St. 3d 530 (Ohio 2004). “See R.C. 4928.37 and 4928.40. Whether shopping incentives or credits will promote competition is an issue of fact for the commission to determine.”
FirstEnergy Corp. v. Pub. Util. Comm., 2002 Ohio 2430 (Ohio 2002). · cites it 2× “R.C. 4928.37(A)(1). {¶15} However, in its November 21, 2000 entry, the commission ordered FirstEnergy to pay these revenues to net generators on the electricity supplied by them.”
AK Steel Corp. v. Pub. Util. Comm., 2002 Ohio 1735 (Ohio 2002). · cites it 4× “9 SUPREME COURT OF OHIO {¶ 32} AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
FirstEnergy Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 401 (Ohio 2002). · cites it 2× “R.C. 4928.37(A)(1). {¶ 15} However, in its November 21, 2000 entry, the commission ordered FirstEnergy to pay these revenues to net generators on the electricity supplied by them.”
Ohio Rev. Code § 4928.37(A)(1): 4 cases
In re Application of Columbus S. Power Co. (Slip Opinion), 2016 Ohio 1608 (Ohio 2016). “2d 648 , ¶ 14; R.C. 4928.37 and 4928.39. In general, these are generation costs that the utility incurred to serve its customers that would have been recovered through regulated rates before competition began, but that are no longer recoverable from customers who have switched…”
Monongahela Power Co. v. Pub. Utils. Comm'n, 2004 Ohio 6896 (Ohio 2004). “34(A)(12); R.C. 4928.37; Ohio Admin. Code § 4901:1-20-03.”
FirstEnergy Corp. v. Pub. Util. Comm., 2002 Ohio 2430 (Ohio 2002). “R.C. 4928.37(A)(1). {¶15} However, in its November 21, 2000 entry, the commission ordered FirstEnergy to pay these revenues to net generators on the electricity supplied by them.”
FirstEnergy Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 401 (Ohio 2002). “R.C. 4928.37(A)(1). {¶ 15} However, in its November 21, 2000 entry, the commission ordered FirstEnergy to pay these revenues to net generators on the electricity supplied by them.”
Ohio Rev. Code § 4928.37(A)(1)(b): 4 cases
AK Steel Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 81 (Ohio 2002). “AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
FirstEnergy Corp. v. Pub. Util. Comm., 2002 Ohio 2430 (Ohio 2002). “R.C. 4928.37(A)(1). {¶15} However, in its November 21, 2000 entry, the commission ordered FirstEnergy to pay these revenues to net generators on the electricity supplied by them.”
FirstEnergy Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 401 (Ohio 2002). “R.C. 4928.37(A)(1). {¶ 15} However, in its November 21, 2000 entry, the commission ordered FirstEnergy to pay these revenues to net generators on the electricity supplied by them.”
AK Steel Corp. v. Pub. Util. Comm., 2002 Ohio 1735 (Ohio 2002). “9 SUPREME COURT OF OHIO {¶ 32} AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
Ohio Rev. Code § 4928.37(A)(3): 2 cases
AK Steel Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 81 (Ohio 2002). “AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
AK Steel Corp. v. Pub. Util. Comm., 2002 Ohio 1735 (Ohio 2002). “9 SUPREME COURT OF OHIO {¶ 32} AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
Ohio Rev. Code § 4928.37(B): 2 cases
AK Steel Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 81 (Ohio 2002). “AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
AK Steel Corp. v. Pub. Util. Comm., 2002 Ohio 1735 (Ohio 2002). “9 SUPREME COURT OF OHIO {¶ 32} AK Steel next argues that the shopping credit bypasses the RTC in violation of R.C. 4928.37(A)(1)(b). However, there is no bypassing of the RTC.”
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