Effective: April 5, 2019
Latest Legislation: House Bill 422 - 132nd General Assembly
Subject to a finding that such costs are just and reasonable, the public utilities commission in evaluating a petition submitted under section 4905.481 of the Revised Code shall accept the original cost, reported under division (C)(3) of section 4909.05 of the Revised Code, of the acquisition of a municipal water-works or sewage disposal system company that is acquired by a large water-works or sewage disposal system company, provided that the original cost is determined according to all of the following requirements:
(A) The acquiring company has three appraisals performed on the property of the company being acquired.
(B) The three appraisals are performed by three independent utility-valuation experts mutually selected by the acquiring company and the company being acquired from the list maintained under section 4909.054 of the Revised Code.
(C) The average of the three appraisals is used as the fair market value of the company being acquired.
(D) Each utility-valuation expert does all of the following:
(1) Determines the fair market value of the company to be acquired by establishing the amount for which the company would be sold in a voluntary transaction between a willing buyer and a willing seller under no obligation to buy or sell;
(2) Determines the fair market value in compliance with the uniform standards of professional appraisal practice;
(3) Employs the cost, market, and income approach to independently quantify the future benefits of the company to be acquired;
(4) Incorporates the assessment described in division (D) (5) of this section into the appraisal under the cost, market, and income approach;
(5) Engages one engineer who is licensed to prepare an assessment of the tangible assets of the company to be acquired. The original source of funding for any part of the tangible assets shall not be relevant to the determination of the value of those assets.
(E) The lesser of the purchase price or the fair market v alue, described in division (C) of this section, is reported as the original cost under division (C)(3) of section 4909.05 of the Revised Code of the company to be acquired.
Structure Ohio Revised Code
Chapter 4909 | Public Utilities Commission - Fixation of Rates
Section 4909.01 | Public Utilities Commission - Fixation of Rates Definitions.
Section 4909.02 | Regulations and Practices Prescribed by Commission Prima-Facie Reasonable.
Section 4909.03 | Effect of Rates Fixed by Commission.
Section 4909.04 | Valuation of Property to Determine Justice of Rates.
Section 4909.05 | Report of Valuation of Property.
Section 4909.051 | Definitions for Sections 4909.052 to 4909.055.
Section 4909.053 | Appraisals.
Section 4909.054 | List of Utility-Valuation Experts.
Section 4909.055 | Cost of Obtaining Valuations.
Section 4909.057 | Deferral of Post-in-Service Carrying Costs.
Section 4909.059 | Construction of Sections.
Section 4909.06 | Additional Facts.
Section 4909.07 | Revision and Correction of Valuations.
Section 4909.08 | Notice and Hearing Before Valuation Becomes Final.
Section 4909.09 | Ascertainment of Valuation.
Section 4909.10 | Hearing to Ascertain Value of Property - Notice.
Section 4909.11 | Filing and Review of Findings.
Section 4909.12 | Admissibility of Findings in Evidence.
Section 4909.13 | Additional Hearings.
Section 4909.14 | Wrongful Valuation.
Section 4909.15 | Fixation of Reasonable Rate.
Section 4909.151 | Consideration of Costs Attributable to Service.
Section 4909.152 | Consideration of Efficiency, Sufficiency, Adequacy of Facilities.
Section 4909.153 | Hearing Service Complaints.
Section 4909.155 | Filing Report on Bonds, Stock and Money.
Section 4909.156 | Filing Report Showing Property Valuation.
Section 4909.16 | Power to Amend, Alter, or Suspend Schedule of Rates.
Section 4909.161 | Recovering Increased Excise Tax Levy and Kilowatt-Hour Tax.
Section 4909.17 | Approval Required for Change in Rate.
Section 4909.172 | Application for Approval to Collect Infrastructure Improvement Surcharge.
Section 4909.18 | Application to Establish or Change Rate.
Section 4909.19 | Publication of Notice - Investigation.
Section 4909.20 | Regulation of Freight Charges.
Section 4909.21 | Rules and Regulations Relative to Carload Shipments of Livestock.
Section 4909.22 | Rates Shall Be Just and Reasonable.
Section 4909.23 | Special Contract Rates.
Section 4909.24 | Complaints and Hearings.
Section 4909.25 | Separate Hearings.
Section 4909.26 | Commission May Change Unreasonable Rate.
Section 4909.27 | Investigating Rates Upon Its Own Motion.
Section 4909.28 | Commission May Change Rate or Service.
Section 4909.29 | Copies of Orders to Be Supplied Railroad.
Section 4909.30 | Commission May Rescind or Amend an Order.
Section 4909.31 | Supplemental Order as to Railroads.
Section 4909.32 | Commission May Fix Joint Rate.
Section 4909.33 | Supplemental Order as to Public Utilities.
Section 4909.35 | Failure of Municipal Corporation to Fix Rates.
Section 4909.36 | Hearing Upon Accepted Rates - Procedure.
Section 4909.37 | Hearing Where Cause of Action Arose.
Section 4909.38 | Complaint, Appeal, or Notification Requirements.
Section 4909.39 | Findings as to Rate - Valuation of Property.
Section 4909.40 | Certain Rates, Fares, Regulations, and Prices Excepted.
Section 4909.42 | Commission Fails to Issue Timely Order.
Section 4909.43 | Filing Rate Increase Application.
Section 4909.45 | Information Furnished by Gas or Natural Gas Company to Municipal Corporation.