“Who better to do that than the utility company?” Rinebolt said. “I don’t foresee any problems with it. ... I think it means stability for the company.”
The U.S. Department of Defense announced on Sept. 8 that it has awarded DP&L a 50-year contract, worth up to $175.5 million, to own, operate and maintain the electricity distribution system at Wright-Patterson. The government has been converting some noncore operations on military bases to private control in order to focus on key missions.
The deal is subject to approval by the Public Utilities Commission of Ohio. DP&L said it expects to file within a few weeks to request that approval. The federal contract requires DP&L to obtain the PUCO’s approval within 10 months.
The contract gives DP&L a transition year to train its employees for the Wright-Patterson task, study the base’s system and make improvements, said Scott Kelly, the company’s senior vice president of operations. Wright-Patt will continue to own the electric system for that first year, with DP&L taking over ownership at the start of the second year and retaining it throughout the contract, Kelly said.
Absorbing responsibilities for additional service systems and territories is how DP&L has grown since it was incorporated in 1911, Kelly said.
“This is our core business,” he said.
When DP&L absorbed the Miamisburg and Troy municipal systems in the 1960s, it integrated their networks into its system. The company’s contract with the Defense Department doesn’t require DP&L to interconnect its system with Wright-Patterson’s, Kelly said.
“We will study this and make decisions with WPAFB on how to proceed,” DP&L spokeswoman Lesley Sprigg wrote in an e-mail statement.
DP&L and two competitors submitted sealed bids for the Wright-Patterson project, federal officials said. The government has declined to identify the competitors or say what they bid.
The government initially requested the proposals in 2004, but the announcement that DP&L had won the competition didn’t come until this month.
“Obviously, Wright-Patterson believes it’ll be in business in Dayton for 50 years, and that’s good news for Dayton,” Rinebolt said.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
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