For Immediate Release
Contact: Matt Schilling
614 | 466 7750
PUCO adopts electric security plan for Dayton Power and Light
COLUMBUS, OHIO (Sept. 4, 2013) – The Public Utilities Commission of Ohio (PUCO) today approved an electric security plan (ESP) for the Dayton Power and Light Company (DP&L) that establishes generation rates from Jan. 1, 2014, through Dec. 31, 2016. The plan also sets a schedule for DP&L to move to a competitive market, in which generation rates will be fully set through a competitive bidding process beginning in January 2017.
“Today’s order moves Ohio closer to all of its electric distribution utilities moving to market based rates,” said PUCO Chairman Todd A. Snitchler. “The terms of this order provide rate stability for customers and financial stability for DP&L along with provisions to facilitate growth in the state’s retail electric market and encourage economic development for the purposes of attracting new investment and improved job growth. By approving today’s order DP&L will move to market based rates in the quickest period possible.”
With today’s order, DP&L begins full adoption of the competitive market established by the Ohio legislature. The order obligates DP&L to move quickly to a competitive position in the marketplace and remove barriers to customer choice. This accelerated process will benefit ratepayers immediately with positive long-term benefits for Ohio’s businesses and families through an increase in customer choice.
During the term of the ESP, DP&L will conduct an auction for 10 percent of its standard service offer load for the period of Jan. 1, 2014 to Dec. 31, 2014; 40 percent for the period of Jan. 1, 2015 to Dec. 31, 2015; and 70 percent for the period of Jan. 1, 2016 to Dec. 31, 2016. The ESP term will end on Dec. 31, 2016 where at that time the company is expected to have divested all of its generation assets.
As was precedent in other ESP proceedings, the Commission also established a significantly excessive earning test threshold of 12 percent return on equity in order to further protect consumers.
In addition, the ESP provides incentives for economic development through an Economic Development Fund. DP&L will contribute $2 million annually from 2014 to 2016 to support economic development efforts in its service territory.
The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business, and industrial consumers have access to adequate, safe, and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO Call Center at (800) 686-PUCO (7826) and speak with a representative.
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