DP&L revenues to fall by $70 million once disputed charge ends

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Dayton Power & Light (DP&L) told the state it will end its “distribution modernization rider” — a monthly charge — in response to a recent Ohio Supreme Court ruling, a state regulatory organization said Wednesday.

The change should result in bills going down by about $9.40 for residential consumers using 1,000 kilowatt hours of electricity monthly. A medium-sized window air conditioner using 1,000 watts an hour is equivalent to one kilowatt hour or kWh. A 100-watt light bulb used for 10 hours equals one kWh.

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DP&L will revert to an earlier “electric security plan” — a plan organizing how the utility does business — first approved by the Public Utilities Commission of Ohio (PUCO) in 2009.

“The net effect of reverting to (the earlier electric security plan) rates results in the reduction of annual revenues to DP&L by approximately $70 million,” the PUCO said in a statement Wednesday. “Customer rate impacts will be known once DP&L files revised tariffs in accordance with today’s commission order.”

Last month, the PUCO issued an opinion and order that directed DP&L to end the rider in light of a recent Supreme Court of Ohio ruling on a similar charge for another Ohio utility.

In its order, the PUCO found that a June 2018 Ohio Supreme Court ruling “rendered the same charge by DP&L unlawful and directed DP&L to immediately eliminate the charge,” PUCO said in late November.

A PUCO spokesman told the Dayton Daily News last month that DP&L was not ordered to give customers a refund. Instead, the utility was told to file revised rates.

“DP&L is disappointed with this decision because it negatively impacts our ability to move forward with investments in the distribution system that allow us to meet customer needs,” Vince Parisi, DP&L president and chief executive, said in a statement last month. “DP&L customers deserve safe, reliable service and today’s order challenges our capacity to continue meeting those expectations. We will work with the PUCO to resolve their concerns to reach a constructive outcome that will allow DP&L to meet our customers’ expectations.”

A message seeking comment was sent to a DP&L representative.

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