In re Application of Moraine Wind, L.L.C.
CourtOhio Supreme Court
Date FiledAugust 18, 2026
Docket2024-0098
JudgeDorrian, J.
StatusPublished
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Full Opinion
[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as In
re Application of Moraine Wind, L.L.C., Slip Opinion No. 2026-Ohio-3103.]
NOTICE
This slip opinion is subject to formal revision before it is published in an
advance sheet of the Ohio Official Reports. Readers are requested to
promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65
South Front Street, Columbus, Ohio 43215, of any typographical or other
formal errors in the opinion, in order that corrections may be made before
the opinion is published.
SLIP OPINION NO. 2026-OHIO-3103
IN RE APPLICATION OF MORAINE WIND, L.L.C., FOR CERTIFICATION AS AN
ELIGIBLE OHIO RENEWABLE ENERGY RESOURCE GENERATING FACILITY;
CARBON SOLUTIONS GROUP, L.L.C., APPELLANT; PUBLIC UTILITIES
COMMISSION, APPELLEE; AVANGRID RENEWABLES, L.L.C., ET AL.,
INTERVENING APPELLEES; BLUE DELTA ENERGY, L.L.C., INTERVENING
APPELLEE; NORTHERN INDIANA PUBLIC SERVICE COMPANY, L.L.C.,
INTERVENING APPELLEE.
[Until this opinion appears in the Ohio Official Reports advance sheets, it
may be cited as In re Application of Moraine Wind, L.L.C., Slip Opinion No.
2026-Ohio-3103.]
Public utilities—Public Utilities Commission’s order approving applications of six
out-of-state wind farms as eligible Ohio renewable-energy-resource-
generating facilitates is not against the manifest weight of the evidence or
contrary to law—Commission’s order affirmed.
(No. 2024-0098—Submitted June 25, 2025—Decided August 18, 2026.)
SUPREME COURT OF OHIO
APPEAL from the Public Utilities Commission, Nos. 21-516-EL-REN, 21-517-EL-
REN, 21-531-EL-REN, 21-532-EL-REN, 21-544-EL-REN, and 22-380-EL-REN.
____________________
DORRIAN, J., authored the opinion of the court, which KENNEDY, C.J., and
DEWINE, HAWKINS, and SHANAHAN, JJ., joined. FISCHER, J., concurred in part and
dissented in part, with an opinion joined by WILLAMOWSKI, J. JULIA L.
DORRIAN, J., of the Tenth District Court of Appeals, sat for BRUNNER, J. JOHN R.
WILLAMOWSKI, J., of the Third District Court of Appeals, sat for DETERS, J.
DORRIAN, J.
{¶ 1} In the proceedings below, six wind farms located in four different
states in the Upper Midwest filed applications with appellee, the Public Utilities
Commission of Ohio (the “commission” or “PUCO”), to be certified as eligible
Ohio renewable-energy-resource-generating facilities. The six wind farms are
intervening appellees Moraine Wind, L.L.C., Rugby Wind, L.L.C., Elm Creek II
Wind, L.L.C., Buffalo Ridge II Wind, L.L.C., Barton Windpower 1, and Barton
Windpower, L.L.C. (collectively, “the applicants”). The wind farms are wholly
owned subsidiaries of intervening appellee, Avangrid Renewables, L.L.C.
{¶ 2} The commission approved each application and issued a certificate to
each wind farm as an eligible Ohio renewable-energy-resource-generating facility.
Under Ohio law, once a generating facility is certified as a qualifying renewable-
energy resource, it can sell renewable energy in Ohio.
{¶ 3} Appellant, Carbon Solutions Group, L.L.C. (“CSG”), whose clients
include Ohio-based renewable-energy developers and facilities, appealed the
commission’s order issuing the certificates. CSG argues that the record does not
support the commission’s findings that the facilities meet the criteria to be certified
as a renewable-energy resource and that the commission violated R.C. 4903.09
when it failed to address CSG’s claim that the record lacked sufficient evidence
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supporting the decision to issue the certificates. CSG also argues that the
commission failed to follow certain statues and rules governing the proceeding. We
find that CSG’s arguments lack merit. Therefore, we affirm the commission’s
order.
I. CRITERIA TO BE A QUALIFYING RENEWABLE-ENERGY
RESOURCE
{¶ 4} R.C. 4928.64(B)(1) requires electric-distribution utilities and electric-
services companies supplying retail-electric service in Ohio to provide a portion of
the electricity supplied to retail customers from a “qualifying renewable energy
resource,” such as solar power or wind energy, see R.C. 4928.01(A)(37) (defining
“renewable energy resource” to include solar power and wind energy); R.C.
4928.64(A)(1) (indicating that as used in R.C. 4928.64, a “qualifying renewable
energy resource” is defined in R.C. 4928.01). Electric-distribution utilities may
purchase renewable-energy resources from both in-state and out-of-state qualifying
generating facilities through contracts with electric suppliers or through the
purchase of renewable-energy credits. R.C. 4928.64(B)(1) and (3); R.C. 4928.645;
Adm.Code 4901:1-40-04(C).1 A generating facility seeking to supply renewable-
energy resources in Ohio must file an application with the commission to be
certified as a qualifying renewable-energy resource. See Adm.Code 4901:1-40-
04(D).
1. A renewable-energy credit is created for each megawatt hour of electricity generated by a
renewable-energy resource. Adm.Code 4901:1-10-01(AA).
Once electricity generated from a renewable-energy resource is delivered to the
power grid, it becomes indistinguishable from electricity generated from
traditional resources, such as coal or natural gas. A [renewable-energy credit] is
a nontangible, tradable commodity that serves as a mechanism for utilities and
regulators to track renewable-energy purchases.
In re Rev. of Alternative Energy Rider Contained in Tariffs of Ohio Edison Co., 2018-Ohio-229,
¶ 6.
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{¶ 5} To be certified as a qualifying renewable-energy resource, one of the
criteria a facility located outside Ohio must prove is that the renewable energy
generated “can be shown to be deliverable into this state.” R.C. 4928.64(B)(3)(b).
For facilities that are in states not contiguous to Ohio, the commission’s rules define
“[d]eliverable into this state” to “include electricity originating from other
locations, pending a demonstration that the electricity is physically deliverable to
the state.” Adm.Code 4901:1-40-01(F).
{¶ 6} Because tracking energy from a generating facility to a specific load
location would be impossible, the commission adopted a test in 2011 that it uses to
determine whether energy from a facility in a noncontiguous state is deliverable
into Ohio. See generally In re Application of Koda Energy, L.L.C., PUCO No. 09-
555-EL-REN, 2011 WL 1144649 (Mar. 23, 2011). In Koda, the commission
utilized distribution-factor (“DFAX”) or power-flow studies conducted by PJM
Interconnection (“PJM”) and the Midcontinent Independent System Operator
(“MISO”), which were the two regional-transmission organizations (“RTO”)
operating in Ohio at that time.2 Id. at *2. A DFAX analysis is a computer model
of the transmission system that measures the change in power flows across a
transmission line caused by a generating facility’s adding power onto the
transmission system. The commission uses these studies to determine whether
power flows modeled within PJM and MISO from generating facilities located
outside Ohio and its contiguous states have an impact on power flows over
transmission lines within Ohio. Id.
{¶ 7} Under the test developed in Koda, the generating facility must have a
“significant impact” on a transmission line in Ohio, which the commission defined
2. MISO and PJM are two RTOs that are designated by the Federal Energy Regulatory Commission
to coordinate the movement of wholesale electricity within an assigned region. See Ohio
Consumers’ Counsel v. Pub. Util. Comm., 2006-Ohio-5853, ¶ 5-6. MISO no longer operates in
Ohio, and PJM is currently the sole manager of the wholesale-electricity market in Ohio. See
Cleveland Elec. Illum. Co. v. Cleveland, 2021-Ohio-4463, ¶ 5.
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as exceeding a threshold DFAX value of greater than 5 percent and the megawatt
equivalence3 of the impact is greater than one megawatt. Id. Thus, a facility located
in a noncontiguous state can prove that its renewable energy is physically
deliverable into Ohio by presenting an RTO’s power-flow study that shows a
significant impact to an Ohio transmission line, i.e., one that exceeds a DFAX value
of 5 percent and the megawatt equivalence of the impact is greater than one
megawatt. Id. at *2-3.
II. FACTS AND PROCEDURAL HISTORY
{¶ 8} The applicants are six out-of-state wind-energy-generating facilities.
The Moraine Wind and Elm Creek II Wind facilities are in Minnesota, Rugby
Wind’s facility is in North Dakota, Buffalo Ridge II Wind’s facility is in South
Dakota, and the two Barton facilities are in Iowa. Each applicant filed an
application with the commission to be certified in Ohio as a qualifying renewable-
energy resource. CSG intervened and opposed each application. Avangrid
Renewables and two interested companies, intervening appellees Blue Delta
Energy, L.L.C., and Northern Indiana Public Service Company, L.L.C.
(“NIPSCO”), also intervened and supported each application.
{¶ 9} The commission held a three-day evidentiary hearing in December
2022. At the hearing, the commission heard testimony from witnesses on behalf of
the applicants, CSG, and the commission’s staff. The parties filed initial and
posthearing briefs in early 2023.
{¶ 10} In September 2023, the commission issued an order approving all
six applications. PUCO Nos. 21-516-EL-REN, 21-517-EL-REN, 21-531-EL-
REN, 21-532-EL-REN, 21-544-EL-REN, and 22-380-EL-REN, 2023 WL
6247423, ¶ 1, 62 (Sept. 20, 2023). The commission reviewed the applications to
determine whether each facility satisfied three statutory criteria: (1) R.C.
3. The megawatt equivalence of the impact is calculated by multiplying the DFAX value by the
facility’s nameplate capacity. Koda at *2.
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4928.64(B)(3)(b)’s requirement that the facility’s generation resources be
deliverable into Ohio, (2) the requirement that the facility be recognized as a
renewable-energy resource in accordance with R.C. 4928.64(A)(1) and
4928.01(A)(37), and (3) R.C. 4928.64(A)(1)(a)’s requirement that the facility was
placed in service on or after January 1, 1998. No party challenged the second or
third statutory criteria, so the only issue before the commission was whether the
renewable energy generated by the facilities was “shown to be deliverable into this
state” as required by R.C. 4928.64(B)(3)(b).
{¶ 11} To decide this issue, the commission relied on dictionary definitions
to determine the plain meaning of the word “deliverable” because no technical
definition is provided in the Revised Code. 2023 WL 6247423 at ¶ 45. For
purposes of R.C. Ch. 4928, the commission defined “‘deliverable’ as being capable
of delivery.” Id. According to the commission, it “appears to be undisputed in
these proceedings” that “the statutory language is clear and unambiguous in that it
requires that the generation produced from a facility to be capable of being
delivered into Ohio.” Id. The commission further noted that its prior interpretation
of “deliverable” “has aligned with the statutory language by requiring a study [of
facilities in noncontiguous states] to ‘demonstrate that some portion of the facility’s
generation is capable of being physically delivered to the state.’” Id. at ¶ 46,
quoting In re Adoption of Rules for Alternative and Renewable Energy Technology,
Resources, & Climate Regulations, PUCO No. 08-888-EL-ORD, 2009 WL
1759671, 22-23 (June 17, 2009).
{¶ 12} In its order, the commission reaffirmed the use of the Koda test as
the method for determining whether generation produced by an out-of-state facility
is deliverable into Ohio as required by R.C. 4928.64(B)(3)(b). 2023 WL 6247423
at ¶ 48-49. The commission applied that test to each of the six applications and,
based on power-flow studies conducted by PJM, determined that each facility met
the thresholds established in Koda. Id. at ¶ 49-50. Accordingly, the commission
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determined that each applicant’s wind farm satisfied the statutory requirement that
the generation produced by the facility be physically deliverable into Ohio and
issued a certificate to each wind farm. Id. at ¶ 49-51. On January 17, 2024, CSG
filed a notice of appeal with this court from the commission’s September 2023
order.4
III. STANDARD OF REVIEW
{¶ 13} “R.C. 4903.13 provides that a PUCO order shall be reversed,
vacated, or modified by this court only when, upon consideration of the record, the
court finds the order to be unlawful or unreasonable.” Constellation NewEnergy,
Inc. v. Pub. Util. Comm., 2004-Ohio-6767, ¶ 50. The appellant bears the burden of
demonstrating that the commission’s order is unlawful or unreasonable. AT&T
Communications of Ohio, Inc. v. Pub. Util. Comm., 51 Ohio St.3d 150, 154 (1990).
{¶ 14} A commission order is unlawful if it rests on an erroneous
interpretation of the law or if the commission fails to follow procedures prescribed
by statute or commission rule. In re Application of Firelands Wind, L.L.C., 2023-
4. CSG applied to the commission for rehearing on October 20, 2023. On November 16, the
commission issued an entry granting CSG’s rehearing application “for the limited purpose of further
consideration of the matters specified therein.” PUCO Nos. 21-516-EL-REN, 21-517-EL-REN, 21-
531-EL-REN, 21-532-EL-REN, 21-544-EL-REN, and 22-380-EL-REN, 2023 WL 8118256, ¶ 19
(Nov. 16, 2023).
CSG’s appeal to this court from the commission’s September 2023 order was filed while
CSG’s rehearing application was under further consideration by the commission. The commission
filed a motion to dismiss for lack of jurisdiction, arguing that the matter was still pending before it
on rehearing. CSG filed a response in opposition, claiming that its rehearing application was denied
by operation of law under R.C. 4903.10 and that the appeal was therefore ripe for review. In August
2024, we held that the commission is prohibited from granting a rehearing application for the limited
purpose of further considering the matters raised in the application. In re Application of Moraine
Wind, L.L.C., 2024-Ohio-3224, ¶ 2-3 (“Moraine Wind I”). We determined that rehearing
applications granted for this limited purpose—and that are not otherwise granted within 30 days of
filing—are denied by operation of law under R.C. 4903.10. Id. at ¶ 3. Accordingly, we concluded
that CSG’s appeal was timely filed and denied the commission’s motion to dismiss. Id. at ¶ 28.
Before we issued that decision, the commission issued a second rehearing entry on
February 21, 2024, in which it substantively addressed the issues raised in CSG’s application for
rehearing. However, given that we held in Moraine I that CSG’s application for rehearing was
denied by operation of law 30 days after it was filed, the February 21, 2024 entry is a nullity and
unreviewable on appeal.
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Ohio-2555, ¶ 12. This court conducts a de novo review of questions of law. Id. at
¶ 13. This court has “complete and independent power of review as to all questions
of law” in appeals from the commission. Ohio Edison Co. v. Pub. Util. Comm.,
1997-Ohio-196, ¶ 16.
{¶ 15} A commission order is unreasonable when it is manifestly contrary
to the evidence in the record or when the evidence is clearly insufficient to support
the order. Firelands at ¶ 16. Likewise, an order is unreasonable when it is
internally inconsistent. Id., citing Ridgeview Ctr., Inc. v. Lorain Cty. Bd. of
Revision, 42 Ohio St.3d 30, 31 (1989).
{¶ 16} In adjudicating whether a commission order is unreasonable, we do
not reweigh the evidence or second-guess the commission on questions of fact. In
re Complaints of Lycourt-Donovan v. Columbia Gas of Ohio, Inc., 2017-Ohio-
7566, ¶ 35, citing Ohio Consumers’ Counsel v. Pub. Util. Comm., 2007-Ohio-4276,
¶ 29. We will not disturb the commission’s factual determinations when the record
contains sufficient probative evidence to show that the commission’s order was 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.’”
Monongahela Power Co. v. Pub. Util. Comm., 2004-Ohio-6896, ¶ 29, quoting
AT&T Communications of Ohio, Inc. v. Pub. Util. Comm., 2000-Ohio-422, ¶ 27.
Finally, an order is unreasonable when the commission’s exercise of its discretion
in making determinations within broad statutory criteria falls outside the zone of
permissible statutory construction. Firelands at ¶ 15.
IV. ANALYSIS
{¶ 17} CSG raises two propositions of law on appeal. Under its first
proposition of law, CSG challenges the commission’s determination that the
applicants’ generating resources are deliverable into Ohio. In its second
proposition of law, CSG argues that the commission failed to follow certain statutes
and rules governing the certification proceeding. The commission has filed a merit
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brief in defense of the commission’s order. Two briefs urging affirmance of the
commission’s order were filed—one by the applicants and Avangrid Renewables
and one by Blue Delta Energy and NIPSCO.
A. CSG’s first proposition of law: Whether the commission’s determination
that the applicants’ generation resources are “deliverable into this state” is
against the manifest weight of the evidence and contrary to law
{¶ 18} CSG argues that the commission erred in finding that the generation
resources from each applicant’s out-of-state wind farm are deliverable into Ohio.
1. The commission’s determination that deliverability criteria had been met
{¶ 19} In the proceedings below, each applicant provided the commission’s
staff with a DFAX power-flow report performed by PJM for its generating facility.
The staff reviewed the DFAX reports and determined that each facility met the
deliverability thresholds established in Koda. Accordingly, the staff concluded that
the generation resources were physically deliverable into Ohio and recommended
that the commission grant each application.
{¶ 20} CSG challenged the commission staff’s recommendations, arguing
that the applicants had failed to provide sufficient evidence demonstrating that their
renewable energy is deliverable into Ohio as required by R.C. 4928.64(B)(3)(b).
CSG asserted that because the applicants’ wind farms are located in areas where
MISO administers transmission assets—while PJM manages transmission assets in
Ohio—the applicants had to submit evidence showing how their renewable energy
is deliverable from their generation facilities in MISO into the PJM-transmission
region and then into Ohio. CSG questioned the reliability of the applicants’ DFAX
reports, asserting that the data in those reports was incomplete because PJM did not
model power flows on transmission lines within MISO but instead assumed that the
energy from the generation facilities was deliverable across MISO to the PJM
border. In making this argument, CSG relied on the cover letters that PJM had
attached to the DFAX reports, which state that the power-flow values in the reports
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represent impacts to Ohio transmission lines by the generation facilities “if they
were to deliver their energy into PJM.” (Emphasis added.) Absent evidence that
the generating facilities are capable of delivering energy from MISO into PJM,
CSG maintained that the DFAX reports do not show that the renewable-energy
resources have any impact on transmission lines in PJM, let alone Ohio.
{¶ 21} The commission rejected CSG’s allegation that the DFAX reports
“assum[ed] that energy would be able to flow from MISO into PJM as opposed to
proving the energy would flow into PJM.” 2023 WL 6247423 at ¶ 48. The
commission also noted that the Koda test requires only “a power flow study to be
performed by an RTO, with no additional requirement as to which RTO performs
the study and certainly no requirement that multiple studies be produced.” Id. The
commission then determined that the applicants had provided the necessary
information for the commission staff to determine deliverability. Id.
{¶ 22} The commission proceeded to adopt its staff’s recommendations,
agreeing that the applicants had provided power-flow studies from PJM showing
that each facility met the thresholds established in Koda. Id. at ¶ 50-51. According
to the commission, no party contested the impact values from the PJM power-flow
studies during the hearing, and its staff relied on these values in determining that
the facilities met the deliverability requirement. Id. at ¶ 50. Accordingly, the
commission determined that the applicants satisfied the statutory requirement that
the generation produced by the facilities be physically deliverable into Ohio, and it
approved the applications for certification. Id. at ¶ 50-51, 62-63.
2. CSG’s two-fold argument in support of its first proposition of law
{¶ 23} CSG presents two arguments in its merit brief to support its first
proposition of law. First, CSG contends that the DFAX reports do not support the
commission staff’s deliverability findings and recommendations. More
specifically, CSG contends that the DFAX values in the reports that the staff used
to calculate the Koda deliverability thresholds are “meaningless” and do not show
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“real transmission line impacts” from MISO to PJM to Ohio and, instead, show
only hypothetical impacts between PJM and Ohio. Second, CSG contends that the
commission’s order fails to address the “evidence of non-deliverability.”
a. CSG’s contention that the evidence does not support the commission staff’s
deliverability findings and recommendations is without merit
{¶ 24} We first address CSG’s argument that the DFAX reports performed
by PJM do not support the commission staff’s deliverability findings and
recommendations.
{¶ 25} The commission’s order states in relevant part:
As reflected above, Staff notes that Applicants provided
power flow studies, performed by PJM, that show the facilities have
met the thresholds established in Koda. These values were not
contested during the hearing and Staff relied on these values, among
other things, in its ultimate determination that the facilities met the
deliverability requirement. (Staff Ex. 3 at 2; Staff Ex. 4 at 2; Staff
Ex. 5 at 2; Staff Ex. 6 at 2; Staff Ex. 7 at 2; Staff Ex. 8 at 2).
Therefore, the Commission finds that the applications satisfy the
statutory requirement that the generation produced by the facilities
be physically deliverable to Ohio.
2023 WL 6247423 at ¶ 50.
{¶ 26} Paragraph 50 of the commission’s order references six exhibits,
which are the commission staff’s review and recommendation approving each
applicant’s facility application. On the second page of each exhibit, the
commission staff stated regarding each respective application that “[a]s the Facility
satisfies both the 5 percent and 1 [megawatt] criteria, Staff concludes that the
Facility is physically deliverable to the state of Ohio.” (Emphasis added.)
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{¶ 27} As noted above, the commission’s order states that its staff relied on
the provided values. 2023 WL 6247423 at ¶ 50. The order also stated that
commission’s staff explained its analysis of the deliverability requirement, “which
involved reviewing the DFAX study completed by PJM and examining the DFAX
values from transmission lines where at least one segment is located within Ohio to
determine if the value on the lines is greater than five percent.” Id. at ¶ 33.
{¶ 28} In support of its determination that the deliverability requirement
had been met, the staff submitted the prefiled testimony of commission staff
members Jason A. Cross and Kristin Clingan. Cross and Clingan also testified in
person at the evidentiary hearing.
{¶ 29} In his prefiled testimony, Cross was asked whether “the facilities
applying for certificates in [the] cases meet the Commission approved deliverability
standard.” Cross answered, “Yes.” When questioned by CSG’s attorney at the
hearing, Cross confirmed that he was the person who had reviewed each of the PJM
cover letters and spreadsheets and determined the values that the staff considered.
He further testified that he reviewed the DFAX report that was provided by the
applicant and did his own analysis to make sure the values meet the deliverability
requirements. Specifically, Cross confirmed when asked by the hearing examiner
that he based his analysis on the full DFAX study rather than the one-to-two-page
narrative provided by the applicants.
{¶ 30} In her prefiled testimony, Clingan stated that “it is staff’s
understanding that PJM has, or is able to obtain, all the requisite information it
needs to run power flow studies across RTOs (e.g., a source in MISO and a sink in
PJM).” When cross-examined by CSG at the hearing about how she formed her
belief to make that statement, Clingan testified, “Because PJM runs the power flow
study and if they need inputs to that study, they would obtain it or else they wouldn’t
be able to run the model.”
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{¶ 31} CSG argues that “the Commission may not base its decision solely
on its Staff’s recommendations or reports.” However, we have held that if the
commission finds that a staff recommendation contains sufficient factual findings
and conclusions of law, it may adopt the same. See In re Application of FirstEnergy
Advisors for Certification as a Competitive Retail Elec. Serv. Power Broker &
Aggregator, 2021-Ohio-3630, ¶ 22 (noting that the commission can adopt reports
prepared by its staff into its order if the reports contain sufficient factual findings
and conclusions of law). The commission noted that “the testimony presented by
Staff witnesses Clingan and Cross demonstrate Staff’s intimate familiarity with
these types of applications and the use of . . . power flow studies like DFAX reports
to assist with its deliverability analysis.” 2023 WL 6247423 at ¶ 46.
{¶ 32} In light of Cross’s testimony and his independent analysis of the
DFAX reports, rather than the cover letter, and Clingan’s testimony, specifically
that PJM would not have been able to run the model if it did not have the inputs
required, we find no merit in CSG’s contention that the evidence does not support
the staff’s deliverability findings and recommendations. There is sufficient
evidence in the record to show that the commission’s order is not manifestly against
the weight of the evidence and is not so clearly unsupported by the record to show
misapprehension, mistake, or willful disregard of duty. See Lycourt-Donovan,
2017-Ohio-7566, at ¶ 35.
b. CSG’s contention that the commission’s order fails to address evidence of
nondeliverability is without merit
{¶ 33} We next address CSG’s argument that the commission’s order failed
to address evidence of nondeliverability. In support of this argument, CSG asserts
that the commission (1) did not apply the Koda test correctly, and (2) did not
address the evidentiary gap as required under R.C. 4903.09. We begin with whether
the commission correctly applied the Koda test.
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i. The commission correctly applied the Koda test
{¶ 34} The commission’s order states as follows:
We continue to find that Staff’s methodology, including the
use of [the Koda] threshold, represents a reasonable method for
determining whether the generation produced at a facility located in
a state non-contiguous to Ohio has a significant impact on power
flows over the transmission lines located within Ohio and, thus,
demonstrates deliverability pursuant to R.C. 4928.64(B)(3).
2023 WL 6247423 at ¶ 49.
{¶ 35} As a preliminary matter, we note that CSG has argued in its merit
brief that this court need not address whether the Koda test continues to be
reasonable or whether additional modifications are necessary. It states that “for
purposes of this appeal, the Court may presume that the Koda test is a proper
framework for demonstrating this capability even if other methods discussed by
CSG’s expert would also satisfy R.C. 4928.64.” (Emphasis in original.) We will
accept CSG’s concession and focus instead on its argument that the commission
erroneously applied Koda to the facts of this case.
{¶ 36} As referenced above and explained in more detail below, CSG
argues that the DFAX reports in this case were insufficient to show deliverability
under the Koda test because the studies were conducted solely by PJM. CSG
argues, and its expert witness, Travis Stewart, testified, that the commission should
have also required a DFAX report conducted by MISO or some other method to
demonstrate deliverability from each applicant’s facility to the PJM region and then
to Ohio.
{¶ 37} But Stewart specifically testified that the purpose of his testimony
was not to make a specific recommendation to replace the Koda test but, rather, to
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note for the commission that other options were available. He noted several options
to demonstrate deliverability in addition to an “affected system study,” including a
“Firm Point to Point Transmission Service Reservation,” a series of interconnection
studies, and historical settlement data based on a contract or a financial transaction.
{¶ 38} The commission disagreed and concluded that the DFAX studies
performed by PJM and submitted by the applicants were sufficient for the
commission staff to determine deliverability. 2023 WL 6247423 at ¶ 48. The
commission noted its “well-established precedent [that] requires a power flow
study to be performed by an RTO, with no additional requirement as to which RTO
performs the study and certainly no requirement that multiple studies be produced.”
Id. The commission also noted that “even [CSG] agrees that the Koda test is an
appropriate means to determine deliverability [by] acknowledging . . . that ‘power
flow studies, including DFAX reports, may be used to figure out whether energy is
physically deliverable from one area to another.’” Id. at ¶ 47, quoting CSG’s initial
posthearing brief, 14. It explained, “[CSG] provides no basis to question the long-
standing precedent, or the methodology utilized therein, to determine whether a
facility complies with the statutory criteria set forth in R.C. 4928.64(B).” Id.
{¶ 39} Additionally, the commission expressly addressed in its order what
is meant by “deliverable into this state” for purposes of R.C. 4928.64(B)(3)(b). In
particular, the commission noted CSG’s admission that “it is impossible to trace
electrons in order to show deliverability” and its concession that “‘it is possible to
predict and measure the impact that electrons generated in a specific location will
have on transmission lines in a different location.’” 2023 WL 6247423 at ¶ 45,
quoting CSG’s initial posthearing brief at 5. The commission also noted that its
staff “acknowledged the impossibility [of] physically track[ing] energy from a
specific generating facility to a specific load location, thus, necessitating a method
to discern whether a facility’s generation has an impact on transmission lines
located in Ohio.” Id. The commission concluded that R.C. 4928.64(B)(3)(b)
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requires that the generation resources produced from a facility “be capable of being
delivered into Ohio,” id., and that conclusion appears to be undisputed in these
proceedings. The commission noted that CSG had conceded that R.C.
4928.64(B)(3)(b) “does not require a demonstration of actual delivery, but rather
that the generation produced is capable of being physically delivered into Ohio.”
Id. at ¶ 48.
{¶ 40} Despite its concession, CSG appears to challenge the adequacy of
the DFAX reports to determine deliverability of energy from one RTO to another.
But the commission in its order outlined the arguments regarding the interregional
transmissibility of resources between RTOs, including: (1) the applicants’
contention that “a DFAX study is still accurate when modeling power flows
between regional transmission organizations,” which CSG’s “witness seemed to
admit,” 2023 WL 6247426 at ¶ 31; (2) the explanation by Blue Delta and NIPSCO
that “the physical structure of and electricity flow through the electric grid was
unchanged by the change in RTOs,” id. at ¶ 34; (3) the explanation by Blue Delta
and NIPSCO that “PJM can obtain all of the requisite information it needs to run
power flow studies across RTOs,” id.; and (4) the statement by Blue Delta and
NIPSCO in their posthearing reply brief “that PJM modeled more than 3,000
transmission facilities, and specifically facilities with only one endpoint in Ohio,
thereby transporting electricity into the state,” which “exceeds the modeling done
in Koda,” id. at ¶ 38. Additionally, the commission noted in its order that the
applicants pointed out that MISO and PJM have “a joint operating agreement [that]
allows the two organizations to share information and coordinate interconnections.”
Id. at ¶ 36.
{¶ 41} Taking all this into consideration, we conclude that on the facts of
this case, the commission correctly applied the Koda test to the applicants’ DFAX
reports and determined that the energy generated by the applicants’ facilities met
the deliverability criteria. We acknowledge the commission’s agreement with its
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staff that CSG’s “proposed alternatives are not viable” and that the commission had
“already rejected adding financial or contractual requirements to the deliverability
assessment and . . . expressly recognized that physical deliverability is not
determined by contractual arrangements.” 2023 WL 6247423 at ¶ 47. We also
acknowledge that the commission noted that “[the commission’s] well-established
precedent requires a power flow study to be performed by an RTO, with no
additional requirement as to which RTO performs the study and certainly no
requirement that multiple studies be produced.” Id. at ¶ 48. In this particular case,
we find that it was not against the manifest weight of the evidence or contrary to
law for the commission to determine that the deliverability standard was met
without a MISO DFAX study or other evidence. However, at this time, we do not
wish to preclude the commission in future cases from requiring DFAX studies from
multiple RTOs, evidence in the form of an alternative affected system study, or
other evidence as it determines may be necessary when considering whether the
deliverability standard is met.
{¶ 42} This observation is supported by the plain language of Koda, which
reads:
A demonstration of deliverability may include a power flow
study performed by the transmission operator(s) which offers
evidence of any significant impact on power flows over
transmission lines located in the state of Ohio and serving loads
connected to distribution lines located in Ohio due to electricity
produced at the renewable generating facility’s location.
Koda, 2011 WL 1144649, at *2. (Emphasis added.)
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ii. The commission complied with R.C. 4903.09 in addressing the evidentiary gap
{¶ 43} We turn now to the question whether the commission’s order meets
the requirements of R.C. 4903.09, which provides:
In all contested cases heard by the public utilities
commission, a complete record of all of the proceedings shall be
made, including a transcript of all testimony and of all exhibits, and
the commission shall file, with the records of such cases, findings of
fact and written opinions setting forth the reasons prompting the
decisions arrived at, based upon said findings of fact.
{¶ 44} “The purpose of R.C. 4903.09 is to provide the court with sufficient
details to enable it to determine how the commission reached its decision.” Allnet
Communications Servs., Inc. v. Pub. Util. Comm., 1994-Ohio-460, ¶ 27. “In order
to meet the requirements of R.C. 4903.09, . . . the PUCO’s order must show, in
sufficient detail, the facts in the record upon which the order is based, and the
reasoning followed by the PUCO in reaching its conclusion.” MCI
Telecommunications Corp. v. Pub. Util. Comm., 32 Ohio St.3d 306, 312 (1987).
However, “[s]trict compliance with the terms of R.C. 4903.09 is not required.”
Tongren v. Pub. Util. Comm., 1999-Ohio-206, ¶ 7.
{¶ 45} CSG references Stewart’s testimony to support its argument that an
evidentiary gap existed. As relevant here, Stewart testified:
Q: Okay. So when there is an impact, a DFAX study impact
that’s greater than a certain percentage, the one RTO has to notify
the other RTO; is that correct?
A: Yeah. Inside that process, I believe the threshold that
[was previously identified during the hearing] was 3 percent and to
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my understanding that is—that’s accurate. And what happens is
MISO informs PJM that they have identified an impact on PJM’s
system, and PJM performs what is referred to as an affected system
study. And there is no affected system studies associated with these
MISO-based facilities inside of these applications.
Q: Sure. And is—is that required by Ohio law or the
Commission’s rules, the second study that you are talking about?
A: If you are demonstrating deliverability and you would
like to comply with Koda to provide your power flow studies, if an
affected system study was triggered, then it should have been
provided.
{¶ 46} In support of its argument tha