Office of the Ohio Consumers' Counsel

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Contact: Ryan Lippe
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Approval of Dayton Power & Light rate plan will benefit residential customers

COLUMBUS, Ohio – June 24, 2009 – A limit on rate increases through 2012 will mean benefits for customers of Dayton Power & Light (DP&L).

The Public Utilities Commission of Ohio (PUCO) approved a Feb. 24 agreement reached by the Office of the Ohio Consumers’ Counsel (OCC), other members of Ohio Consumer and Environmental Advocates, the PUCO staff, DP&L and other parties. Today’s approval also includes energy efficiency and renewable energy measures in the utility’s electric security plan.

“With a continuing recession and household budgets stretched thin, the approval of the rate plan agreement puts into place limits to rate increases, provides energy efficiency measures and helps ensure that DP&L will do its fair share to support and utilize renewable energy resources,” said Consumers’ Counsel Janine Migden-Ostrander. “These components are essential as many utilities begin to consider measures to comply with anticipated federal climate change language.”

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 residential customers with tools to lower their usage.

Additionally, DP&L’s base distribution rates will be frozen through 2012. The company will develop an advanced metering infrastructure and smart grid proposal by Sept. 1 for review by the PUCO staff in the fourth quarter of 2009. If approved, smart grid improvements can provide better electric service reliability and give customers the option to manage their usage based upon the price of electricity at different times of the day.

DP&L’s original smart grid proposal more than doubled the typical costs of these improvements and failed to incorporate hundreds of millions of dollars in customer benefits that help offset these costs.

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 and discounts for weatherizing homes;
An economic development rider assessed to customers’ bills initially set at zero. The rider will be used to pay for the cost of discounts provided to large users of energy if those companies negotiate special, lower rates. Those rates must comply with PUCO rules and be approved by the PUCO;
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; and
Development of a renewable energy certificate program that would pay residential consumers a fee for customer-sited renewable energy, such as solar panels or wind turbines. The program would help offset the cost of adding renewable energy by a customer.

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.