Final Ohio Budget Softens Language Regarding OCC Advocacy on Merchant Function Exit

July 13, 2011
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A final budget bill passed and signed in Ohio eliminated prescriptive language regarding the Ohio Consumers' Counsel's advocacy regarding the merchant function of the natural gas utilities.

Originally, an early version of the budget bill would have held that, "[t]he counsel shall not advocate or otherwise promote any position contrary to the development of competitive markets in this state, including any position contrary to natural gas retail auctions, merchant function exit or the policies of this state relating to competitive natural gas markets."

OCC has opposed Standard Choice Offer auctions due to, among other reasons, differences in the treatment of taxes for customers taking sales service versus competitive service, with sales service including a lower tax liability for customers (see 11/4/09).

The approved budget bill (HB 153) drops this language in favor of the more amorphous: "The counsel shall follow the policies of the state as set forth in Chapter 4929. of the Revised Code that involve supporting retail natural gas competition."

The budget also removes the OCC as an arbiter of customer complaints, and directs OCC to refer all complaints to PUCO.

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