DP&L pushes law that would let PUCO raise rates

Proposal would let state raise rates if a utility’s ‘financial integrity’ were threatened

Representatives of Dayton Power and Light are lobbying for proposed legislative language that would amend existing law, letting the Public Utilities Commission of Ohio raise electric rates if a utility’s financial integrity is at stake.

If the amendment becomes law, the PUCO could change electric rates “if the (PUCO) finds that the utility’s financial integrity is threatened and the modification is necessary to preserve the utility’s financial integrity,” according to a copy of the proposed amendment obtained by the Dayton Daily News.

RELATED: Citing 'financial threats,' DP&L seeks new charges.

Rep. Niraj Antani, R-Miami Twp., confirmed Tuesday that DP&L representatives are asking legislators to consider the language.

DP&L’s allies in the matter would like to have this amendment added in the coming weeks of the Ohio General Assembly current session, which is a post-election “lame duck session.” he said.

“We’ve talked about it,” Antani said.

RELATED: DP&L charge struck down by Ohio Supreme Court.

He does not think such language will be a standalone bill, but rather will be part of another bill as a legislative “vehicle.”

Antani agreed that consumers may not want electric rates to go up, but at the same time, “We have to keep the lights on.”

“Their financial integrity truly is at stake,” Antani said of DP&L.

Proposed language reviewed by the Legislative Service Commission would amend state law to allow the PUCO to “modify” an electric distribution utility’s rates under an electric security plan if that utility’s financial integrity is “threatened.”

RELATED: Manufacturers group wary of DP&L charges.

Ryan Augsburger, vice president and managing director, public policy services, for the Ohio Manufacturers’ Association, said such legislative language would “effectively (insure) utility companies from business risk with customer dollars.”

In recent weeks, DP&L has applied to the PUCO for a new rider — or additional charge — to customers’ bills, citing “significant threats to its financial integrity.”

In June, the Ohio Supreme Court reversed a PUCO decision that allowed DP&L to charge customers extra in its own “electric security plan.”

“I think that the Supreme Court really overreached here,” Antani said. “I think that PUCO should be able to set reasonable rates.”

“Look, I don’t want to see anybody’s electric rates go up,” he added. “That’s not what I want. But that said, we have to be able to keep DP&L, their financial integrity, solid.”

RELATED: Follow this writer's Dayton Daily News Facebook page.

The Ohio Supreme Court’s ruling saved local consumers $80 million they would have paid the utility this year, the Ohio Consumers’ Counsel said at the time.

Some electric utilities are facing a challenging time. Natural gas is less expensive than coal these days, making coal-fired power generation facilities more expensive to operate.

A message seeking comment was left with the office of Sen. Bill Seitz, R-Cincinnati, chairman of the Senate Public Utilities Committee. A DP&L spokeswoman asked that questions be emailed to her.

Matt Schilling, a spokesman for PUCO, said PUCO is aware of DP&L’s efforts, but the commission does not comment on pending legislation.

He was unable to immediately say if the PUCO today can raise rates to protect a utility’s financial health.

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