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May Utility Recoup Power Generation Research Costs Through Increase In Transmission Rates?

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May Utility Recoup Power Generation Research Costs Through Increase In Transmission Rates?

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Industrial Energy Users-Ohio et al. v. The Public Utilities Commission of Ohio, Case no. 2006-1594 ISSUE: Did the Public Utilities Commission of Ohio (PUCO) exceed its authority and act contrary to state laws deregulating Ohio’s electric power generation industry when it issued an order allowing two utility companies to recover their anticipated research and development costs of new power generation technology by increasing the rates they charge their customers for noncompetitive power distribution service? BACKGROUND: In 1999, the General Assembly adopted R.C. Chapter 4928, legislation setting terms and conditions for a staged transition of Ohio’s electric power industry from a regulated monopoly environment to market competition. In the competitive retail market for electricity generating service developed under the new law, customers have the option to continue paying their traditional local electric company for power generation service or to select a new “competitive retail electri

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