Ohio manufacturing group questions proposed DP&L charges

An association representing Ohio manufacturers is expressing concern about new charges Dayton Power & Light wants state regulators to approve.

“It equates to a lot of new costs with no benefits to manufacturers,” said Ryan Augsburger, vice president and managing director of public policy services for the Ohio Manufacturers Association.

DP&L withdrew a proposed “reliable electricity” rider — or a new charge on customers’ bills — in September, four days before a public Public Utilities Commission of Ohio hearing at Dayton’s city hall.

Now, DP&L is pursuing other proposed riders or charges — a "distribution investment" rider, a "clean energy" rider and a "distribution and modernization" rider.

The “distribution and modernization rider” would be non-by-passable, Augsburger said, meaning customers in DP&L service territory could not avoid paying it. Depending on whether and how PUCO approves such charges, it could bring in $145 million per year to DP&L for seven years, according to the association.

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According to estimates on the association's web site, DP&L's DMR rider would cost small manufacturing companies — those with about $100,000 a year in electricity costs — more than $72,000 total over seven years.

Medium-sized manufacturers would pay an extra $542,527 total over seven years while large manufacturers would pay more than $7.2 million total over seven years, according to the association.

“Regardless of whose power they might be buying in a deregulated market, they have to realize this is not something they can shop around,” Augsburger said.

DP&L rates analyst Robert Adams said in a recent application to state regulators a “typical residential customer in 2017” using 1,000 kilowatts per month can expect their bills to go down 87 cents per month, or a 0.76 percent decrease, under the new rate. No estimate is given beyond 2017.

DP&L, which has 515,000 customers in 24 Western Ohio counties, did not return emails seeking comment for this story.

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