Monongahela Power Co. v. Public Utilities Commission , 104 Ohio St. 3d 571 ( 2004 )


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  • [Cite as Monongahela Power Co. v. Pub. Util. Comm., 
    104 Ohio St. 3d 571
    , 2004-Ohio-6896.]
    MONONGAHELA POWER COMPANY, APPELLANT, v. PUBLIC UTILITIES
    COMMISSION OF OHIO ET AL., APPELLEES.
    [Cite as Monongahela Power Co. v. Pub. Util. Comm., 
    104 Ohio St. 3d 571
    ,
    2004-Ohio-6896.]
    Public utilities — Electric company — Competitive electric service — R.C.
    Chapter 4928 — Decisions of Public Utilities Commission affirmed —
    Public Utilities Commission acted without authority when it adopted a
    stipulation that Monongahela Power Company’s market-development
    period would end early — Commission did not err in later ordering the
    market-development period to continue.
    (No. 2004-0305 — Submitted October 26, 2004 — Decided December 30, 2004.)
    APPEAL from the Public Utilities Commission of Ohio, No. 03-1104-EL-ATA.
    ____________
    LUNDBERG STRATTON, J.
    Background
    {¶ 1} This is an appeal as of right by Monongahela Power Company
    (“Mon Power”) from decisions of the Public Utilities Commission of Ohio in In
    the Matter of the Application of the Monongahela Power Co. for Approval of a
    Market-Based Standard Serv. Offer & Competitive Bidding Process (Oct. 22,
    2003) case No. 03-1104-EL-ATA 
    2003 WL 22472140
    (the “MBSSO case”).
    Mon Power was the applicant, and Industrial Energy Users-Ohio (“IEU”) was an
    intervening party in the MBSSO case. IEU has also intervened as an appellee in
    this appeal.
    {¶ 2} The legal backdrop for this appeal is Am.Sub.S.B. No. 3, 148 Ohio
    Laws, Part IV, 7962, 7992 (“S.B.3”), codified primarily at R.C. 4928.01 et seq.,
    which restructures Ohio’s electric-utility industry so as to achieve retail
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    competition in the generation component of electric-utility service. Under S.B.3,
    utilities supplying electric service in Ohio were required to file transition plans for
    approval by the commission. R.C. 4928.31. Key to these transition plans were
    the unbundling of the three main components of electric service – generation,
    transmission, and distribution – and developing a “rate unbundling plan.” R.C.
    4928.31(A)(1). The unbundled retail rates, including rates for generation service,
    were capped and frozen for a limited transition period known as the “market
    development period” (“MDP”). After that period, a utility is entitled to charge
    market-based retail-generation rates that permit it to recover its cost of purchasing
    power at wholesale for resale to its customers. R.C. 4928.14.
    {¶ 3} On June 22, 2000, in its restructuring case, Mon Power entered
    into a settlement agreement, styled a “Stipulation and Recommendation” (“the
    Stipulation”), with the commission’s staff and with representatives of Mon
    Power’s Ohio retail customers. The Stipulation purported to resolve all issues
    pertinent to Mon Power’s statutorily required transition plan. The commission
    approved the Stipulation in its October 5, 2000 opinion and order in its case No.
    00-02-EL-ETP 
    2000 WL 1873291
    (the “ETP1 Order”).
    {¶ 4} On April 24, 2003, Mon Power filed an application in the MBSSO
    case, seeking commission approval of a market-based standard service offer and a
    competitive bidding process to follow the MDP, which Mon Power asserts ended
    December 31, 2003. On July 24, 2003, the commission issued an order allowing
    Mon Power to solicit bids for power to serve its large commercial, industrial, and
    street-lighting customers. Mon Power then conducted the bidding process. Only
    two qualifying bids were received, the lower of which was from an affiliate of
    Mon Power.
    1. ETP stands for Electric Transition Plan.
    2
    January Term, 2004
    {¶ 5} On October 22, 2003, the commission issued an order in the
    MBSSO case (“the MBSSO Order”) denying approval of the winning bid and
    requiring Mon Power to continue its MDP to December 31, 2005, based on a
    finding that neither of the controlling statutory conditions for early ending of the
    MDP had been satisfied. Mon Power then filed an application for rehearing,
    which was denied on December 17, 2003. This appeal ensued.
    MDP and its Early Ending
    {¶ 6} While the subject of this appeal is the MBSSO Order issued on
    October 22, 2003, we must consider the ETP Order and the Stipulation that the
    commission approved in the ETP Order. In addition, we must focus on the
    meanings of the Stipulation’s provisions.
    {¶ 7} Central to this appeal is whether the Stipulation approved by the
    commission in the ETP Order shortened Mon Power’s MDP with respect to its
    large commercial and industrial customers. The MDP is a statutorily defined
    term: “ ‘Market development period’ for an electric utility means the period of
    time beginning on the starting date of competitive retail electric service and
    ending on the applicable date for that utility as specified in section 4928.40 of the
    Revised Code, irrespective of whether the utility applies to receive transition
    revenues under this chapter.”      R.C. 4928.01(A)(17).       The starting date of
    competitive retail electric service was January 1, 2001. R.C. 4928.01(A)(29).
    Thus, Mon Power’s MDP began on that date.
    {¶ 8} The end of the MDP is also specified by statute.                   R.C.
    4928.40(B)(2) provides:
    {¶ 9} “For purposes of this chapter, the market development period shall
    not end earlier than December 31, 2005, unless, upon application by an electric
    utility, the commission issues an order authorizing such earlier date for one or
    more customer classes as is specified in the order, upon a demonstration by the
    utility and a finding by the commission of either of the following:
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    SUPREME COURT OF OHIO
    {¶ 10} “(a) There is a twenty per cent switching rate of the utility’s load
    by the customer class.
    {¶ 11} “(b) Effective competition exists in the utility’s certified territory.”
    {¶ 12} Based on these statutory provisions, we conclude that Mon
    Power’s MDP could end no later than December 31, 2005, but that it could end
    earlier if pertinent criteria are met.
    {¶ 13} Mon Power argues that the commission approved an early end of
    its MDP as to its large commercial and industrial customers when, in the ETP
    Order, the commission approved the Stipulation that provided in Section IV: “For
    customers on the Company’s Rate Schedule C with a demand greater than 300
    kW, Rate Schedules CSH, D, K, P, and street lighting, the market development
    period shall be a three year period and end December 31, 2003.” (Emphasis
    added.) Mon Power further asserts: “Section IV of the Stipulation recognized that
    R.C. 4928.40(B)(2) provides that the market development period may not end
    earlier than December 31, 2005, unless, upon application by the electric utility,
    the Commission authorizes an earlier termination date for one or more customer
    classes based upon either a finding of a 20 percent switching rate of load by the
    customer class or that effective competition exists in the utility’s certified
    territory.   Accordingly, in § IV of the Stipulation, Mon Power made an
    application to end the market development period early for its large commercial
    and industrial customers.”
    {¶ 14} Mon Power argues that by adopting the Stipulation in its ETP
    Order, the commission approved the early ending of the MDP for large
    commercial and industrial customers with no contingency involving future
    proceedings or future findings by the commission. Mon Power bases its argument
    on the observation that Section IV of the Stipulation provides that the MDP for
    small (300kW and below) commercial customers was not shortened and that, in
    order to end the MDP for those customers early, Mon Power would have to make
    4
    January Term, 2004
    separate application in the future under R.C. 4928.40(B)(2): “For either Schedule
    B customers and/or Schedule C customers having demands of 300 kW and below,
    the market development period can be terminated at any time by the Company
    making a filing with the Commission showing a 20% switching rate or effective
    competition.” Mon Power argues that since the Stipulation contains a specific
    qualification of further commission approval to shorten the MDP for small
    commercial customers but does not impose such a qualification on Mon Power to
    shorten the MDP for its large commercial and industrial customers, no such
    qualification exists.
    {¶ 15} Mon Power argues further that the only qualification on the
    commission’s approval of the transition plan and the Stipulation in the ETP case
    was final approval of Mon Power’s compliance tariffs and that Mon Power
    distributed its proposed compliance tariffs to all of the parties in the ETP case,
    including the commission’s staff, for their review. The tariff sheets distributed for
    review and subsequently approved by the commission “expressly provided that
    the default retail electric generation services offered to large commercial and
    industrial customers would end December 31, 2003 – at the end of the market
    development period for those customers.”
    {¶ 16} The commission and intervening appellee IEU contend that the
    commission’s approval of Section IV of the Stipulation in the ETP Order did not
    have the effect of authorizing a shortened MDP for Mon Power’s large
    commercial and industrial customers.          They contend that the commission’s
    approval not only did not have that effect, it simply could not have had that effect.
    {¶ 17} They argue correctly that the only way the MDP can be ended
    before December 31, 2005, is by compliance with R.C. 4928.40(B)(2). That
    statutory provision contains four steps: (1) an application by the electric utility to
    shorten the MDP; (2) a demonstration by the utility that (a) there is a 20 percent
    switching rate of the utility’s load by the customer class or (b) effective
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    SUPREME COURT OF OHIO
    competition exists in the utility’s service territory; (3) based on the utility’s
    demonstration, a commission finding of the requisite switching rate or effective
    competition; and (4) based on such finding, a commission order authorizing a
    shortened MDP.
    {¶ 18} The commission readily concedes that Section IV of the
    Stipulation evidences that Mon Power took the first step to shorten its MDP for
    large commercial and industrial customers. In Section IV of the Stipulation, Mon
    Power made application to the commission for approval of a shortened MDP: “By
    this Stipulation, Monongahela Power, supported by the other Signatory Parties,
    applies to the Commission for authorization of a market development period
    termination date for industrials and large commercial customers of December 31,
    2003, based upon agreement to forego the recovery of transition costs beyond that
    date (see Ohio Revised Code §4928.38).”
    {¶ 19} The next requisite statutory step is a demonstration by the utility
    that either effective competition exists or there is a 20 percent customer switching
    rate. However, there is nothing in the Stipulation or in the ETP Order indicating
    that Mon Power made a showing of the existence of the requisite competition or
    switching rate. Indeed, Mon Power could not have made such a showing because
    the ETP Order was issued October 5, 2000, almost three months prior to the
    starting date of competitive retail electric service on January 1, 2001, as provided
    in R.C. 4928.01(A)(29).     Thus, at the date of the ETP Order, there was no
    competitive retail electric service. Mon Power could not have demonstrated the
    existence of effective competition, and the commission could not have made a
    finding of the existence of any competition, much less the existence of effective
    competition. Moreover, at the date of the ETP Order, the certified-territory law
    was still in effect, outlawing competition and making it illegal for customers to
    switch to other providers of electric-generation service.
    6
    January Term, 2004
    {¶ 20} The commission argues that the statutorily required demonstration
    of a 20 percent switching rate or the existence of effective competition speaks in
    the present tense.    Mon Power, on the other hand, argues that the second
    paragraph of R.C. 4928.40(A) provides the factors that the commission must
    consider in determining the subjective condition of “[e]ffective competition” as
    used in R.C. 4928.40(B) and that each of those factors is capable of determination
    before the start date for actual competition. According to Mon Power, “[i]ndeed,
    two of the three factors – transition costs and shopping incentives – are statutorily
    required to be addressed in the utility’s transition plan. See R.C. 4928.34(A)(12);
    R.C. 4928.37; Ohio Admin. Code § 4901:1-20-03.”
    {¶ 21} Mon Power argues that, considering the factors mentioned in the
    second paragraph of R.C. 4928.40(A), the commission could and, in fact, did
    determine in the Stipulation approved in the ETP Order that the effective
    competition prescribed in R.C. 4928.40(B) could be determined before the start of
    actual competition.
    {¶ 22} As to the requisite switching or effective competition, we consider
    the commission’s position more plausible and persuasive than Mon Power’s.
    {¶ 23} Mon Power’s position is the only one it can take as to the
    requirements of R.C. 4928.40(B). Yet it ignores the fact that R.C. 4928.40(B)
    contains two requisites. The first is that a 20 percent switching rate or effective
    competition must be demonstrated by the utility. Mon Power has failed to show
    how it made any such demonstration either in the Stipulation approved in the ETP
    Order or by way of testimony or evidence presented in the proceedings resulting
    in the MBSSO Order. The second requisite is a finding by the commission of a
    20 percent switching rate or effective competition. The commission made no
    finding about the 20 percent switching rate or competition in its ETP Order, and
    in its MBSSO Order, it made specific findings that they did not occur.
    7
    SUPREME COURT OF OHIO
    {¶ 24} Therefore, we conclude as follows:        The only way that Mon
    Power’s MDP for large commercial and industrial customers could have been
    ended before December 31, 2005, was by compliance with R.C. 4928.40.
    Furthermore, although Mon Power properly applied to the commission for
    authority to end the MDP at an earlier date, Mon Power failed to demonstrate to
    the commission that the requisite switching rate or effective competition had been
    or would be achieved by any given date, and the commission did not find that the
    requisite switching rate or effective competition had been achieved by December
    31, 2003. Indeed, in the MBSSO Order, the commission specifically found that
    the requisite switching rate or effective competition had not been achieved.
    {¶ 25} Mon Power professes that as of the date of the ETP Order and
    continuing to the present, its corporate belief has been that the ETP Order had the
    effect of ending its MDP for large commercial and industrial customers as of
    December 31, 2003. We are also convinced that the commission believed that its
    ETP Order had that effect. The commission said so in the ETP Order. Moreover,
    the commission approved Mon Power’s compliance tariffs that said so, and on the
    day of the ETP Order, the commission issued a press release that contained the
    following statement: “Under the terms of the stipulation, which was adopted in
    the order, the market development period ends for large customers (industrial and
    large commercial) on December 31, 2003, and for small customers (residential
    and small commercial) on December 31, 2005.”
    {¶ 26} Nevertheless, to the extent that Section IV of the Stipulation
    approved by the commission in the ETP Order can be considered an order
    authorizing the early end of Mon Power’s MDP, that order was premature. It was
    based upon an optimistic assumption that the requisite levels of the switching rate
    or effective competition would be achieved by December 31, 2003, an assumption
    that proved to be unwarranted, making any such order ending the MDP
    8
    January Term, 2004
    unenforceable because the order exceeded the statutory authority of the
    commission.
    {¶ 27} We conclude that, as a matter of law, the ETP Order did not end
    Mon Power’s MDP as to its large commercial and industrial customers before
    December 31, 2005.
    Mon Power’s Other Arguments
    {¶ 28} Mon Power argues that the commission was bound by its decision
    in the ETP Order that Mon Power’s MDP for its large commercial and industrial
    customers would end on December 31, 2003. Therefore, asserts Mon Power, the
    commission erred when it extended the MDP in the MBSSO Order. Mon Power’s
    argument that the commission was bound by the ETP Order is based on estoppel,
    the Contracts Clause of the United States Constitution, and issue preclusion.
    Application of these doctrines to the facts, however, is based upon the premise
    that the ETP Order created a legally binding early termination of Mon Power’s
    MDP for its large commercial and industrial consumers.          Since we have
    determined that the commission had no authority to enter into such an agreement
    contrary to the statute, the consideration of these theories is moot. Therefore,
    none of the legal doctrines suggested by Mon Power have application under the
    facts before us.
    Standard of Review
    {¶ 29} R.C. 4903.13 provides that a commission order shall be reversed,
    vacated, or modified by this court only if, upon consideration of the record, the
    court finds the order to be unlawful or unreasonable.       Under this statutory
    standard, “this court will not reverse or modify a PUCO decision as to questions
    of fact where the record contains sufficient probative evidence to show the
    PUCO’s determination is not manifestly against the weight of the evidence and is
    not so clearly unsupported by the record as to show misapprehension, mistake or
    willful disregard of duty.” AT&T Communications of Ohio, Inc. v. Pub. Util.
    9
    SUPREME COURT OF OHIO
    Comm. (2000), 
    88 Ohio St. 3d 549
    , 555, 
    728 N.E.2d 371
    , citing MCI
    Telecommunications Corp. v. Pub. Util. Comm. (1988), 
    38 Ohio St. 3d 266
    , 268,
    
    527 N.E.2d 777
    . This court has consistently refused to substitute its judgment for
    that of the commission on evidentiary matters. AK Steel Corp. v. Pub. Util.
    Comm. (2002), 
    95 Ohio St. 3d 81
    , 84, 
    765 N.E.2d 862
    . As the court noted in AK
    Steel (a case that also addressed the electric-utility transition issues for a different
    electric utility), the appellant bears the burden of demonstrating that the
    commission’s decision is against the manifest weight of the evidence or is clearly
    unsupported by the record. 
    Id. at 86,
    765 N.E.2d 862
    . This burden is difficult to
    sustain because the court has consistently found it proper to defer to the
    commission’s judgment in matters that require the commission to apply its
    specialized expertise and discretion, as it did below, with regard to factual matters
    now on appeal. Cincinnati Bell Tel. Co. v. Pub. Util. Comm. (2001), 92 Ohio
    St.3d 177, 179-180, 
    749 N.E.2d 262
    ; AT&T Communications of Ohio, Inc. v. Pub.
    Util. Comm. (1990), 
    51 Ohio St. 3d 150
    , 154, 
    555 N.E.2d 288
    ; Cleveland Elec.
    Illum. Co. v. Pub. Util. Comm. (1976), 
    46 Ohio St. 2d 105
    , 107-108, 75 O.O.2d
    172, 
    346 N.E.2d 778
    .
    {¶ 30} “ Due deference should be given to statutory interpretations by an
    agency that has accumulated substantial expertise and to which the General
    Assembly has delegated enforcement responsibility.” Weiss v. Pub. Util. Comm.
    (2000), 
    90 Ohio St. 3d 15
    , 17-18, 
    734 N.E.2d 775
    , citing Collinsworth v. W. Elec.
    Co. (1992), 
    63 Ohio St. 3d 268
    , 272, 
    586 N.E.2d 1071
    .
    {¶ 31} To the extent that Mon Power’s assertions of error are directed at
    factual determinations of the commission, Mon Power has failed to show that the
    record so lacked sufficient probative evidence as to show misapprehension,
    mistake, or willful disregard of duty on the part of the commission or that the
    commission’s determinations were against the manifest weight of the evidence.
    To the extent that Mon Power’s assertions of error are directed at the
    10
    January Term, 2004
    commission’s exercise of discretion or judgment based on the commission’s
    expertise, Mon Power has failed to convince us that this court should substitute its
    judgment for that of the commission.
    Conclusion
    {¶ 32} Based on the foregoing, we conclude that the decisions of the
    commission were reasonable and lawful, and we therefore affirm them.
    Decisions affirmed.
    RESNICK, F.E. SWEENEY, O’CONNOR and O’DONNELL, JJ., concur.
    MOYER, C.J., dissents.
    PFEIFER, J., dissents.
    __________________
    MOYER, C.J., dissenting.
    {¶ 33} I respectfully dissent from the majority’s conclusion that the Public
    Utilities Commission lacked the authority to make an order ending Monongahela
    Power’s (“Mon Power’s”) market-development period (“MDP”) as to its large
    commercial and industrial customers on December 31, 2003. The commission
    had the authority, pursuant to R.C. 4928.40, to make such an order and did in fact
    make such an order when it approved the Stipulation and Recommendation (“the
    Stipulation”) in its October 5, 2000 Opinion and Order (the “ETP Order”).
    {¶ 34} Compliance with R.C. 4928.40(B)(2)2 is required before a utility
    company’s MDP can be terminated prior to December 31, 2005. As the majority
    states, “That statutory provision contains four steps: (1) an application by the
    2.. {¶a} R.C. 4928.40(B)(2) provides:
    {¶b} “For purposes of this chapter, the market development period shall not end earlier than
    December 31, 2005, unless, upon application by an electric utility, the commission issues an order
    authorizing such earlier date for one or more customer classes as is specified in the order, upon a
    demonstration by the utility and a finding by the commission of either of the following:
    {¶c} “(a) There is a twenty per cent switching rate of the utility’s load by the customer class.
    {¶d} “(b) Effective competition exists in the utility’s certified territory.”
    11
    SUPREME COURT OF OHIO
    electric utility to shorten the MDP; (2) a demonstration by the utility that (a) there
    is a 20 percent switching rate of the utility’s load by the customer class or (b)
    effective competition exists in the utility’s service territory; (3) based on the
    utility’s demonstration, a commission finding of the requisite switching rate or
    effective competition; and (4) based on such finding, a commission order
    authorizing a shortened MDP.”
    {¶ 35} The majority finds that Mon Power took the first step3 but
    ultimately concludes that the other three steps were not taken and in fact could not
    have been taken in the instant case. According to the majority, “There is nothing
    in the Stipulation or in the ETP Order indicating that Mon Power made a showing
    of the existence of the requisite competition* * *.” Moreover, the majority
    reasons that Mon Power could not have demonstrated the existence of effective
    competition because the ETP Order was issued before the starting date of
    competitive retail electric service,4 at a time when the certified-territory law—a
    law that outlawed competition and customer switching—was in effect.
    {¶ 36} However, in reaching this conclusion, the majority fails to account
    for the explanation of “effective competition” that is set forth in R.C. 4928.40(A).
    R.C. 4928.40(A) provides:
    {¶ 37} “Factors the commission shall consider in prescribing the
    expiration date of the utility’s market development period and the transition
    charge for each customer class and rate schedule of the utility include, but are not
    3. Mon Power applied to the commission for approval of a shortened MDP in Section IV of the
    Stipulation. That section provides: “By this Stipulation, Monongahela Power, supported by the
    other Signatory Parties, applies to the Commission for authorization of a market development
    period termination date for industrials and large commercial customers of December 31, 2003,
    based upon the agreement to forego the recovery of transition costs beyond that date (see Ohio
    Revised Code § 4928.38).”
    4. R.C. 4928.01(A)(29) provides that the “ ‘[s]tarting date of competitive retail electric service’
    means January 1, 2001, except as provided in division (C) of this section.” This date marks the
    beginning of the MDP. See R.C. 4928.01(A)(17).
    12
    January Term, 2004
    limited to, the total allowable amount of transition costs of the electric utility as
    determined under section 4928.39 of the Revised Code; the relevant market price
    for the delivered supply of electricity to customers in that customer class and, to
    the extent possible, in each rate schedule as determined by the commission; and
    such shopping incentives by customer class as are considered necessary to induce,
    at the minimum, a twenty per cent load switching rate by customer class halfway
    through the utility’s market development period but not later than December 31,
    2003.”
    {¶ 38} The three factors enumerated in R.C. 4928.40(A) provide guidance
    as to what constitutes “effective competition.” Significantly, each of these factors
    is capable of determination before the starting date of competitive retail electric
    service. Moreover, two of the factors—transition costs and shopping incentives—
    must be addressed in the utility’s transition plan. See R.C. 4928.34(A)(12); R.C.
    4928.37(A)(1); Ohio Adm.Code 4901:1-20-03.
    {¶ 39} Thus, R.C. 4928.40(A) negates the conclusion that a demonstration
    of effective competition cannot be made before the starting date of competitive
    retail electric service. Pursuant to R.C. 4928.40(A), a utility need not wait for the
    MDP to produce desired competitive results; rather, the utility can demonstrate
    the existence of effective competition by showing that a supporting framework for
    competition is in place. This demonstration can be made as part of the utility’s
    transition plan. Therefore, the commission has the authority to prospectively end
    the MDP at the time it approves the utility’s transition plan and to do so based on
    the utility’s inclusion of a framework for competition in the transition plan.
    {¶ 40} In the instant case, Mon Power demonstrated that effective
    competition, as that term is defined in R.C. 4928.40(A), existed in its certified
    territory. Section IV of the Stipulation states that the basis for Mon Power’s
    application for termination of the MDP as of December 31, 2003, was its
    “agreement to forego the recovery of transition costs beyond that date.” The
    13
    SUPREME COURT OF OHIO
    “total allowable amount of transition costs” is one of the factors set forth in R.C.
    4928.40(A) that the commission is required to consider in determining whether
    effective competition exists in the utility’s certified territory.     Thus, R.C.
    4928.40(A) directly supports the proposal in the Stipulation that the early end of
    the MDP be authorized based on Mon Power’s agreement to forgo transition
    costs.
    {¶ 41} Next, the commission met the third requirement of 4928.40(B)(2)
    and found that effective competition existed in Mon Power’s certified territory.
    In the ETP Order, the commission recognized that the Stipulation altered Mon
    Power’s transition plan by terminating both the MDP and regulatory-transition
    charges for Mon Power’s industrial and large commercial customers as of
    December 31, 2003. The commission also acknowledged that the Stipulation
    “substantially reduces the amount of regulatory assets that the company will
    recover through its RTC [regulatory transition charge].”
    {¶ 42} After making these acknowledgments, the commission, in a section
    of the ETP Order entitled “Findings of Fact and Conclusions of Law,” found,
    “The company’s transition plan, as modified by the Stipulation, satisfies the
    requirements of S.B. 3,” which includes R.C. 4928.40(B)(2). By finding that the
    Stipulation complied with the relevant statutory provisions, the commission found
    that Mon Power’s agreement to forgo recovery transition costs, as set forth in the
    Stipulation, was a sufficient basis for prescribing an early end to the MDP.
    {¶ 43} Finally, the ETP Order states that “[Mon Power’s] transition plan
    and Stipulation filed on January 3, 2000, and June 22, 2000, are approved to the
    extent set forth in this Opinion and Order.” By approving the Stipulation, the
    commission approved Mon Power’s application in Section IV of the Stipulation to
    terminate the MDP for certain of its customer classes on December 31, 2003.
    Therefore, the issuance of the ETP order satisfied the fourth requirement of R.C.
    4928.40(B)(2).
    14
    January Term, 2004
    {¶ 44} Because the requirements set forth in R.C. 4928.40(B)(2) were
    satisfied, I would hold that the commission authorized the early termination of
    Mon Power’s MDP with respect to its large commercial and industrial customers
    as part of the ETP Order.
    __________________
    PFEIFER, J., dissenting.
    {¶ 45} I would hold that the Public Utilities Commission (“PUCO”) had
    the authority to and did enter into a stipulation with Monongahela Power
    Company (“Mon Power”) to end early the market-development period for certain
    of Mon Power’s customer classes. The fact that PUCO does not like the deal it
    entered into does not mean it was without authority to enter into it. Still, despite
    the result, it is refreshing to see PUCO admit that its power has limits.
    ___________________
    Gary A. Jack; Porter, Wright, Morris & Arthur, L.L.P., Kathleen M.
    Trafford, Daniel R. Conway, and Jay A. Yurkiw, for appellant.
    Jim M. Petro, Attorney General, Duane W. Luckey, Senior Deputy
    Attorney General Thomas G. Lindgren and Thomas W. McNamee, Assistant
    Attorneys General, for appellee Public Utilities Commission of Ohio.
    McNees, Wallace & Nurick, L.L.C., Samuel C. Randazzo, Lisa G.
    McAlister and Daniel J. Neilsen, for intervening appellee, Industrial Energy
    Users-Ohio.
    __________________
    15