Ohio Revised Code

Ohio Rev. Code § 4928.39 (2026)

Determining total allowable transition costs

✓ current as of May 2026
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Upon the filing of an application by an electric utility under section 4928.31 of the Revised Code for the opportunity to receive transition revenues under sections 4928.31 to 4928.40 of the Revised Code, the public utilities commission, by order under section 4928.33 of the Revised Code, shall determine the total allowable amount of the transition costs of the utility to be received as transition revenues under those sections. Such amount shall be the just and reasonable transition costs of the utility, which costs the commission finds meet all of the following criteria:

(A) The costs were prudently incurred.

(B) The costs are legitimate, net, verifiable, and directly assignable or allocable to retail electric generation service provided to electric consumers in this state.

(C) The costs are unrecoverable in a competitive market.

(D) The utility would otherwise be entitled an opportunity to recover the costs.

Transition costs under this section shall include the costs of employee assistance under the employee assistance plan included in the utility's approved transition plan under section 4928.33 of the Revised Code, which costs exceed those costs contemplated in labor contracts in effect on the effective date of this section.

Further, the commission's order under this section shall separately identify regulatory assets of the utility that are a part of the total allowable amount of transition costs determined under this section and separately identify that portion of a transition charge determined under section 4928.40 of the Revised Code that is allocable to those assets, which portion of a transition charge shall be subject to adjustment only prospectively and after December 31, 2004, unless the commission authorizes an adjustment prospectively with an earlier date for any customer class based upon an earlier termination of the utility's market development period pursuant to division (B)(2) of section 4928.40 of the Revised Code.

The electric utility shall have the burden of demonstrating allowable transition costs as authorized under this section. The commission may impose reasonable commitments upon the utility's collection of the transition revenues to ensure that those revenues are used to eliminate the allowable transition costs of the utility during the market development period and are not available for use by the utility to achieve an undue competitive advantage, or to impose an undue disadvantage, in the provision by the utility of regulated or unregulated products or services.

Notes of Decisions
Cited in 8 cases, 2002–2018 · leading case: Monongahela Power Co. v. Pub. Utils. Comm'n, 2004 Ohio 6896 (Ohio 2004).
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Monongahela Power Co. v. Pub. Utils. Comm'n, 2004 Ohio 6896 (Ohio 2004). · cites it 4× “12 January Term, 2004 limited to, the total allowable amount of transition costs of the electric utility as determined under section 4928.39 of the Revised Code; the relevant market price for the delivered supply of electricity to customers in that customer class and, to the…”
Constellation NewEnergy, Inc. v. Pub. Utils. Comm'n, 104 Ohio St. 3d 530 (Ohio 2004). · cites it 2× “Third Claimed Error {¶ 25} Constellation complains that the “Commission has unreasonably and unlawfully violated Section 4928.39, Revised Code by permitting DP & L to recover additional transition revenues without commission approval.”
In re Application of Columbus S. Power Co. (Slip Opinion), 2016 Ohio 1608 (Ohio 2016). · cites it 2× “11-346- EL-SSO, 11-348-EL-SSO, 11-349-EL-AAM, and 11-350-EL-AAM, 31-32 (Aug. 8, 2012) (the “ESP Order”).”
In Re Application Seeking Approval of Ohio Power Co.'s Proposal to Enter Into an Affiliate Power Purchase Agreement for Inclusion in the Power Purchase Agreement Rider, 2018 Ohio 4698 (Ohio 2018). · cites it 2× “Second, the commission found that the OVEC contract did not meet the requirements for allowable transition costs in R.C. 4928.39(B) (transition costs must, among other things, be directly assignable or allocable to the provision of retail generation service to consumers in Ohio)…”
AK Steel Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 81 (Ohio 2002). · cites it 2× “34 requires only that a utility be allowed an opportunity to collect the transition costs allowed by the commission under R.C. 4928.39 through the transition charges determined by the commission under R.”
FirstEnergy Corp. v. Pub. Util. Comm., 2002 Ohio 2430 (Ohio 2002). · cites it 2× “This right is contingent only upon the electric utility demonstrating to the commission’s satisfaction in a transition case that the utility incurred just and reasonable transition costs that meet the criteria set forth in R.C. 4928.39. These costs represent regulatory assets…”
FirstEnergy Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 401 (Ohio 2002). · cites it 2× “This right is contingent only upon the electric utility demonstrating to the commission’s satisfaction in a transition case that the utility incurred just and reasonable transition costs that meet the criteria set forth in R.C. 4928.39. These costs represent regulatory assets…”
AK Steel Corp. v. Pub. Util. Comm., 2002 Ohio 1735 (Ohio 2002). · cites it 2× “34 requires only that a utility be allowed an opportunity to collect the transition costs allowed by the commission under R.C. 4928.39 through the transition charges determined by the commission under R.”
Ohio Rev. Code § 4928.39(A): 2 cases
FirstEnergy Corp. v. Pub. Util. Comm., 2002 Ohio 2430 (Ohio 2002). “This right is contingent only upon the electric utility demonstrating to the commission’s satisfaction in a transition case that the utility incurred just and reasonable transition costs that meet the criteria set forth in R.C. 4928.39. These costs represent regulatory assets…”
FirstEnergy Corp. v. Pub. Utils. Comm'n, 95 Ohio St. 3d 401 (Ohio 2002). “This right is contingent only upon the electric utility demonstrating to the commission’s satisfaction in a transition case that the utility incurred just and reasonable transition costs that meet the criteria set forth in R.C. 4928.39. These costs represent regulatory assets…”
Ohio Rev. Code § 4928.39(B): 1 case
In Re Application Seeking Approval of Ohio Power Co.'s Proposal to Enter Into an Affiliate Power Purchase Agreement for Inclusion in the Power Purchase Agreement Rider, 2018 Ohio 4698 (Ohio 2018). “Second, the commission found that the OVEC contract did not meet the requirements for allowable transition costs in R.C. 4928.39(B) (transition costs must, among other things, be directly assignable or allocable to the provision of retail generation service to consumers in Ohio)…”
Ohio Rev. Code § 4928.39(C): 1 case
In Re Application Seeking Approval of Ohio Power Co.'s Proposal to Enter Into an Affiliate Power Purchase Agreement for Inclusion in the Power Purchase Agreement Rider, 2018 Ohio 4698 (Ohio 2018). “Second, the commission found that the OVEC contract did not meet the requirements for allowable transition costs in R.C. 4928.39(B) (transition costs must, among other things, be directly assignable or allocable to the provision of retail generation service to consumers in Ohio)…”
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