Ohio approves certification rules, CG&E transition plan

Ohio regulators approved Cincinnati Gas & Electric Co.'s transition plan and are scheduled to begin accepting applications for certification to participate in the state's deregulated electricity market by the end of September, under new rules adopted by a committee of the Ohio General Assembly. Competition is scheduled to begin Jan. 1, 2001.


Ohio regulators approved Cincinnati Gas & Electric Co.'s transition plan and are scheduled to begin accepting applications for certification to participate in the state's deregulated electricity market by the end of September, under new rules adopted by a committee of the Ohio General Assembly. Competition is scheduled to begin Jan. 1, 2001.

Under a settlement agreement reached with various parties to the case, the Public Utilities Commission (PUCO) approved Cinergy Corp. unit CG&E's proposal with various stipulations. The stipulations include:

� A 5% reduction in CG&E's generation component for residential rate schedules.

� Waiving the switching fee for the first 20% of residential customers who switch to a certified supplier during the market development period.

� Creation of shopping credits that boost development of a retail market.

� Maintaining a 5-year market development period, including a rate cap for the residential customers, regardless of the number who switch providers.

� Continuing support for energy efficiency and weatherization services to low-income persons by maintaining certain existing contracts valued at about $4 million for 5 years.

� Committing CG&E to work with other regions, including regional transmission organizations and independent system operators, and transmission customers to develop specific proposals to address reciprocity and interface/seams issues.

� Offering customers with contracts approved by law, who would otherwise be on the primary distribution, transmission, or lighting rate schedules, a one-time right, through Dec. 31, 2001, to cancel any such contract without penalty, provided the customer remains a distribution customer of CG&E.

The Ohio General Assembly passed restructuring legislation that required retail competition with respect to generation in June 1999. Most provisions of the law became effective Oct. 5, 1999 requiring each electric utility to file with the PUCO a transition plan for the company's provision of retail electric service in Ohio. CG&E filed its transition plan Dec. 28, 1999. Stipulations to the case were filed May 8 and hearings on the proposed settlement were conducted this summer.

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