Dayton Power & Light‘s Electric Security Plan
History of Electric Deregulation in Ohio
A law enacted in 1999 restructured Ohio’s electric industry by changing the way customers shop for electricity. The law, which took effect on Jan. 1, 2001, provided a five-year market development period. During this period, the utilities’ rates were frozen to allow a competitive resale market to develop.
As the end of the market development period neared, there was a growing concern that, due to the limited number of competitive electric suppliers and low degree of market activity, an immediate shift to market-based rates in 2006 would not be in the best interest of customers. To minimize the effects of rate “sticker shock” and gradually transition customers to market-based rates, the Public Utilities Commission of Ohio (PUCO) worked with Ohio’s electric utilities to develop rate stabilization plans (RSPs). The RSPs, along with other changes, eliminated market uncertainty and provided customers with stable rates. Most of these plans expired at the end of 2008.
In 2008, the Ohio General Assembly passed Senate Bill 221 to keep electric rates stable going forward, create jobs, implement energy efficiency and expand Ohio’s alternative energy industry. The new law incorporated a system under which rates would be approved by the PUCO beginning in 2009. Senate Bill 221 also outlined alternative paths for electric utilities to implement different forms of market-based pricing.
Dayton Power and Light’s current rate plan
The PUCO approved Dayton Power and Light’s (DP&L) current rate plan in 2009. The current plan, known as an electric security plan, sets rates through December 31, 2012* and allows the company to implement minimal increases to cover fuel costs, implement energy efficiency measures and construct advanced energy infrastructure.
*rates will remain in place until a new ESP is adopted.
DP&L Electric Security Plan Application
On Oct. 5, 2012, DP&L filed an application to establish an electric security plan for the period Jan. 1, 2013 through Dec. 31, 2017. The proposal calls for electric generation rates to be determined by a mix of current rates, and an increasing amount of generation sourced by competitive bidding auctions. The proposal also addresses the company's plan to meet advanced energy, energy efficiency and peak demand reduction requirements. An amended application was filed by DP&L on Dec. 12, 2012 to clarify information previously filed.
What happens next?
A procedural schedule to review the company's application is set for:
- Jan. 29, 2013, local public hearings 1 p.m. & 6 p.m., Council Chambers of the Dayton Municipal building located at 101 W. Third Street, Dayton.
- Feb. 25, 2013, intervenor testimony due
- March 4, 2013, staff testimony due
- March 11, 2013, evidentiary hearing
Written comments may be submitted online or by address a letter to the PUCO at 180 East Broad Street, Columbus, Ohio 43215 and putting case number 12-426-EL-SSO in the subject line.