Dayton Power & Light files for distribution modernization rider of $105 million

Written By: Stratton Report
March 14, 2017

Dayton Power and light

On March 14, AES Corporation sub the Dayton Power and Light Company announced it had filed an amended stipulation to its Electric Security Plan with the Ohio PUC.

Per the utility, the stipulation includes a three-year distribution modernization rider set at $105 million per year that could be extended by the PUCO for an additional two years, with proceeds from the DMR being dedicated to continuing DPL Inc. and DP&L’s debt repayment plan.

DP&L stressed that the proposed settlement reflected support from thirteen parties and the PUCO’s staff, and will allow the utility to achieve an investment grade credit rating and modernize its distribution infrastructure.

The utility noted that the hearing date on the amendment will be April 3, 2017, with a final decision by the PUCO anticipated by mid-year.

According to DP&L, if the PUCO agrees to the proposed settlement, the average residential customer in the DP&L service territory, using 1,000 kWh on DP&L’s Standard Service Offer, can expect a monthly bill decrease of $0.25.

DP&L President and CEO, Tom Raga commented:

The proposed settlement represents a compromise among the parties, while allowing DP&L an opportunity to achieve an investment grade credit rating. For over a century, we have proudly served the customers in our service territory. The settlement benefits our customers by positioning us to modernize our distribution infrastructure and at the end of the term, provide a path for future growth opportunities.