Regulators will hire consultant to examine how AES Ohio handles ‘bad debt’

AES held a ribbon cutting on it's newly renovated, Smart Operations Center,  Monday October 25, 2021. AES spent $20 million to renovate the old Dayton Power & Light building. JIM NOELKER/STAFF

Credit: JIM NOELKER

Credit: JIM NOELKER

AES held a ribbon cutting on it's newly renovated, Smart Operations Center, Monday October 25, 2021. AES spent $20 million to renovate the old Dayton Power & Light building. JIM NOELKER/STAFF

Ohio regulators may soon hire a consultant to examine how Dayton electric utility AES Ohio deals with unpaid bills.

It’s fairly routine for the Public Utilities Commission of Ohio (PUCO) to audit utility expenses, and it’s not unusual to issue requests for proposals for outside auditing firms to assist in that work, a spokesman for the PUCO said Wednesday.

That’s exactly the kind of audit PUCO staff have planned for AES Ohio.

“So this audit will look at balances the utility keeps on bad debt related to the generation portion of the (electric service) bill,” PUCO spokesman Matt Schilling said in response to questions from the Dayton Daily News. “The utility passes along these uncollectible expenses across its customer base.”

He added, “I think it’s fair to say the commission is interested in ensuring the utility is employing best practices and doing its calculations correctly.”

Last month, the PUCO directed staff to reissue a request for proposals for consulting services to review the “uncollectible expense recovery” for Dayton Power and Light Co., which does business as AES Ohio.

Proposals were due May 1. Schilling expects a commission order soon to select a winning bidder.

The audit will examine customer account billing records for customers receiving both AES Ohio standard service and competitive retail electric customers in which balances were recently written off.

The audit will also explore the utility’s collection and disconnection practices, the process for seeking or applying partial payments and any other records or information deemed appropriate.

“The purpose of the audit is to ensure that customers are only charged the appropriate amounts,” Schilling said.

AES acquired the former DP&L in 2011. The Dayton utility changed its name and branding to AES Ohio in February 2021.

The company provides service to more than 527,000 customers in West Central Ohio.

About the Author