OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 226 Final Analysis
135th General Assembly
Click here for H.B. 226’s Fiscal Note
Primary Sponsors: Reps. Robb Blasdel and Jarrells
Effective date: October 24, 2024
Effective date:
Reid J. Fleeson, Attorney UPDATED VERSION*
SUMMARY
▪ Permits a water-works company to replace lead customer-owned water service lines, or
customer-owned water service lines of other compositions, as part of a scheduled utility
main replacement project, emergency placement, or when ordered or mandated to do
so.
▪ Requires a water-works company to reimburse a customer who replaces the customer’s
lead customer-owned water service line, or customer-owned water service line of other
composition, that was ordered or mandated to be replaced, if the customer submits a
reimbursement request within 12 months after completion of the replacement.
▪ Requires the cost of the replacement of water service lines and reimbursements amounts
provided to water service utility customers to be included in the company’s public utility
property valuation report used in the company’s rate case.
DETAILED ANALYSIS
Water service line replacement
The act permits a water-works company to do any of the following:
▪ Replace lead customer-owned water service lines concurrently with a scheduled utility
main replacement project, an emergency replacement, or company-initiated lead water
service line replacement program;
▪ Replace lead customer-owned water service lines when mandated or ordered to replace
the lines by law or a state or federal regulatory agency;
* This version updates the effective date.
August 19, 2024
Office of Research and Drafting LSC Legislative Budget Office
▪ Replace customer-owned water service lines of other composition when mandated or
ordered to replace them by law or a state or federal regulatory agency.
A water-works company that replaces customer-owned water service lines pursuant to
any of the above must include the cost of the replacement of the water service lines, including
the cost to replace the company side and customer-owned water service lines and the cost to
evaluate customer-owned water service lines of unknown composition, in the company’s
property valuation report (see “Valuation report” below) for inclusion in a rate case.
If a water-works company replaces a customer-owned water service line, the water
service customer who is responsible for the customer-owned water service line holds legal title
to the replaced line.
The act defines the following terms:
▪ “Water-works company” as an entity engaged in the business of supplying water through
pipes or tubing, or in a similar manner, to consumers in Ohio and is a public utility.
Continuing law excludes various entities, such as, for example, utilities that are owned or
operated by any municipal corporation, from the meaning of “public utility.”
▪ “Customer-owned water service line” as the water service line connected at the water-
works company’s water service line at the curb of the customer’s property.1
Water service line customer reimbursement
The act requires a water-works company to reimburse a customer who replaces the
customer’s customer-owned water service line if both:
1. The company confirms that the customer-owned water service line was composed of lead
or other composition that was mandated or ordered to be replaced by law or a state or
federal regulatory agency;
2. The customer submits the reimbursement request to the company not later than
12 months after the completion of the water line replacement.
A water-works company that provides a reimbursement to a customer as described above
must include the reimbursement amount in the company’s property valuation report (see below)
for inclusion in a rate case.2
Valuation report
The act adds the cost of the replacement of water service lines and reimbursement
amounts provided to water service customers to the facts in detail that must be included in a
public utility property valuation report. Continuing law requires the Public Utilities Commission
(PUCO) to prescribe a property valuation report for each public utility or railroad in Ohio. The
property valuation report must include all the kinds and classes of property used and useful (or
1 R.C. 4909.173; R.C. 4905.02 and 4905.03(G), not in the act.
2 R.C. 4909.174.
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Final Analysis
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projected to be used and useful in the case of a natural gas, water-works, or sewage disposal
company) for the service and convenience of the public, and the value of the property. The
utility’s property valuation, as determined by adding and subtracting amounts set out in the facts
in detail in the property valuation report, is used by the PUCO in setting utility rates, fares, tolls,
rentals, and charges.3
HISTORY
Action Date
Introduced 06-26-23
Reported, H. Public Utilities 01-29-24
Passed House (78-15) 02-07-24
Reported, S. Energy & Public Utilities 06-25-24
Passed Senate (31-0) 06-26-24
24-ANHB0226EN-UPDATED-135/ar
3 R.C. 4909.05(C) and 4909.15(A)(1).
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Final Analysis


Statutes affected:
As Introduced: 4909.05, 4909.15
As Reported By House Committee: 4909.05, 4909.15
As Passed By House: 4909.05, 4909.15
As Reported By Senate Committee: 4909.05, 4909.15
As Passed By Senate: 4909.05, 4909.15
As Enrolled: 4909.05, 4909.15