OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 120 Bill Analysis
135th General Assembly
Click here for H.B. 120’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps Weinstein and Brennan
Effective Date:
Rocky Hernandez, Attorney
SUMMARY
 Repeals, and expressly terminates, the nonbypassable rate mechanism applied to all
Ohio ratepayers associated with contractual commitments related to a legacy
generation resource (LGR) (including Ohio Valley Electric Corporation (OVEC) facilities)
established by H.B. 6 of the 133rd General Assembly.
 Expressly prohibits any mechanism for retail recovery of costs for all specified
generating facilities (the same as those defined as LGRs in H.B. 6) that was in effect on
or before the effective date of H.B. 6 from being “revived, reimposed, reestablished, or
in any way reinstituted” as a result of the bill, or by PUCO order, decision, or rule.
 Requires that the full amount of revenues collected from customers under the
LGR/OVEC provisions under H.B. 6 to be promptly refunded to customers from whom
the revenues were collected and allocated to customer classes in the same proportion
as originally collected.
DETAILED ANALYSIS
Legacy generation resource/OVEC cost recovery
The bill repeals provisions enacted in H.B. 6 of the 133 rd General Assembly related to
cost recovery of a legacy generation resource (LGR) (which are generating facilities owned
directly or indirectly by a corporation formed prior to 1960 by investor-owned utilities for the
original purpose of providing power to the federal government for use in the nation’s defense
or in furtherance of national interests, including the Ohio Valley Electric Corporation (OVEC)).
The bill also repeals the H.B. 6 provision requiring that any preexisting PUCO-authorized
mechanism for retail recovery of prudently incurred costs related to a legacy generation/OVEC
March 17, 2023
Office of Research and Drafting LSC Legislative Budget Office
resource must be replaced with a nonbypassable rate mechanism approved by PUCO for
recovery of those costs from all customers of Ohio electric distribution utilities.1
A detailed discussion of the law being repealed can be found on pages 22 to 23 of LSC’s
Final Analysis of HB. 6, As Passed by the General Assembly, available here.
Legacy generation resource cost assessment/collection
prohibition
The bill terminates any mechanism for retail recovery of costs for a legacy
generation/OVEC resource in effect on or before the effective date of H.B. 6 from being
“revived, reimposed, reestablished, or reinstituted” as a result of this bill, or PUCO order,
decision, or rule. The bill also prohibits any amount, charge, mechanism, or rider related to a
LGR cost recovery mechanism from being assessed or collected from customers. As described
above, the bill repeals the H.B. 6 provision for retail recovery of prudently incurred costs
related to an LGR/OVEC.2
Customer refunds
The bill requires customer refunds of the full amount of the revenues collected through
an amount, charge, mechanism, or rider established under the LGR/OVEC cost recovery
provisions of H.B. 6 as those provisions existed prior to the effective date of the bill. Refunds
must be made promptly to customers from whom the revenues were collected and must be
allocated to customer classes in the same proportion as originally collected.
Refunds under the bill must be made notwithstanding any other provision in Ohio utility
law, including the current law that prohibits public utilities from refunding any rate, rental, toll,
or charge established in its rate schedule, except as specified in that rate schedule.3
HISTORY
Action Date
Introduced 03-16-23
ANHB0120IN-135/ts
1 R.C. 4928.01(A)(41) and (42); R.C. 4928.148, repealed by the bill.
2 Section 4.
3 Section 5; R.C. 4905.32, not in the bill.
P a g e |2 H.B. 120
As Introduced


Statutes affected:
As Introduced: 4928.01, 4928.148