Ohio Approves Dayton Power & Light Plan to Divest Utility Generation Assets

The Public Utilities Commission of Ohio approved Dayton Power & Light's plan to separate its generation from the utility by transferring the generation to a competitive affiliate.

The Commission found that DP&L should be authorized to transfer its generation assets to an affiliate at net book value.

With regard to DP&L's share in the Ohio Valley Electric Corporation, PUCO said that should make a "good faith" effort to divest its interest in OVEC.

"However, if DP&L is not permitted to transfer its ownership interest in OVEC, it should cause the energy from its OVEC contractual entitlements to be sold into the day-ahead or real-time PJM energy markets, or on a forward basis through a bilateral arrangement," PUCO said.

Separately, PUCO approved DP&L's application to sell its interest in East Bend Unit 2 to Duke Energy Kentucky, Inc.

In a separate order on DP&L's corporate separation plan, PUCO ruled that the plan should contain language prohibiting the utility from offering competitive retail electric service, but said that such service shall only be offered upon PUCO authorization.

"The Commission finds that DP&L's corporate separation plan should not be required to contain the language in Section II. B., page 8, stating that it cannot provide competitive retail electric service. However, we find that if DP&L proposes to provide any competitive retail electric service, whether behind the meter or otherwise, DP&L must receive Commission authorization to provide such service. We recognize that R.C. 4928.17 permits DP&L to provide certain competitive retail electric services in accordance with an approved corporate separation plan. However, we find that DP&L's corporate separation plan should only permit DP&L to provide such services pursuant to Commission authorization to do so. This finding does not authorize DP&L to offer any competitive retail electric service, but provides DP&L with the opportunity to request Commission authorization to offer competitive retail electric service in accordance with its corporate separation plan," PUCO said.