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Ohio Consumer and Environmental Advocates

Office of the Ohio Consumers’ Counsel
Edgemont Neighborhood Coalition of Dayton
Ohio Environmental Council
Sierra Club

DP&L customers to benefit in electric security plan agreement

COLUMBUS, Ohio – February 24, 2009 – The Ohio Consumer and Environmental Advocates has reached an agreement with Dayton Power and Light Company that will benefit customers and will hold rate increases to reasonable levels. Under the agreement, DP&L will continue its current rate plan until 2012 and add energy efficiency and renewable energy to its electric portfolio as required by Ohio’s electric energy policy. The development and implementation of these programs will help provide for residential customers with tools to lower their usage.

Additionally, DP&L’s base distribution rates will be frozen through 2012. The company will work with a collaborative group, which will include members of the Ohio Consumer and Environmental Advocates, to develop an advanced metering infrastructure and smart grid by Sept. 1 with review by the Public Utilities Commission of Ohio staff in the fourth quarter of 2009. If approved, these improvements will provide better electric service reliability and give customers the opportunity to purchase electricity at the lowest cost. DP&L had originally proposed costs that more than doubled the typical costs of these improvements and underestimated the customer benefits by hundreds of millions of dollars.

Parties that signed the agreement include: the Office of the Ohio Consumers’ Counsel, Edgemont Neighborhood Coalition of Dayton, Ohio Environmental Council, Sierra Club, Dayton Power and Light, the Public Utilities Commission of Ohio staff and others.

A residential customers’ typical bill under the agreement would be affected as follows:

Based on 750 kWh/month usage	April 2009	2010	2011	2012
Current Bill	$87.35	$89.68	$89.09	$88.89
Econ Development	$0.00	Unknown	Unknown	Unknown
Infrastructure Improvement	$0.00	Unknown	Unknown	Unknown
Energy Efficiency	$1.48	$1.57	$1.95	$2.19
Advanced Energy	$0.09	$0.10	$0.11	$0.13
Fuel Recovery (projected)	$0.00	$2.79	$2.79	$2.79
Estimated Bill	$88.92	$94.14	$93.94	$94

Dayton Power and Light’s original proposal would have increased the typical residential customer’s bill to $92.93/month in 2009 and to $95.59/month in 2010.

Other elements of the agreement include:

An energy efficiency work group with the parties in the case to develop and implement energy efficiency programs such as rebates for purchasing Energy Star appliances or discounts for weatherizing homes;
An economic development rider initially set at zero. Any development arrangements that provide discounts through a separate negotiated rate will be subject to PUCO rules and approval;
A bypassable fuel recovery rider to recover actual increases (if any) DP&L incurs for obtaining fuel or purchasing electricity on the market to serve its customers, effective Jan. 1, 2010;
Development of a renewable energy certificate program that would pay residential consumers a fee for customer-sited renewable energy. This would help offset the cost of any solar panels or other renewable energy by a customer.

The agreement will need approval from the PUCO commissioners before it goes into effect.

Editor’s Note:

Attached are comments from members of Ohio Consumer and Environmental Advocates that signed the settlement filed at the PUCO today. For additional comments, please refer to the contacts listed below.

Contacts:

Office of the Ohio Consumers’ Counsel: Anthony Rodriguez, (614)466-9547
Edgemont Neighborhood Coalition of Dayton: Ellis Jacobs, (937)535-4419/(937)305-6735
Ohio Environmental Council: Nolan Moser, (707)225-4397
Sierra Club: Ned Ford, (513)600-4200

Compiled Statements about the agreement for the Electric Security Plan for Dayton Power & Light Filed February 22, 2009

Office of the Ohio Consumers’ Counsel:

“We were pleased to put in place a plan that will limit rate increases through 2012,” said Janine Migden-Ostrander Consumers’ Counsel. “Coupled with energy efficiency measures, consumers who take advantage of this cheapest alternative to new generation may see decreases in their electric bills. As these programs are created, the Ohio Consumers’ Counsel will be consumers’ voice in developing the most useful programs that will give residents the tools to reduce their usage for the long term.”

Edgemont Neighborhood Coalition of Dayton:

“This settlement protects all customers and, by including emergency funds to keep families from losing their electric service it strengthens the social safety net and addresses an urgent community need. It will allow thousands of people each year to stay in their homes”, said Ellis Jacobs, Counsel for the Edgemont Neighborhood Coalition of Dayton. “The energy efficiency parts of the settlement will also be a giant help in making electric service affordable in the future.”

Sierra Club:

“The Dayton Power and Light Company has negotiated in good faith over many complex issues. The strong agreement in this case will allow DP&L and its customers to move forward with the energy efficiency and renewable energy resources required under SB 221 in a way which will save customers money and increase environmental benefit,” said Ned Ford, Sierra Club energy adviser. “The new law requires expansion of these resources over the next two decades. Today's settlement establishes a customer collaborative working group which will enable DP&L to transition faster, more effectively and more profitably than in the absence of these provisions, and ensures oversight to guarantee cost-effective savings.”

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC Web site at www.pickocc.org.