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Update: Dayton Power & Light To Actively Market Prepay, TOU Rates For Default Service Customers Under Grid Modernization Plan

--- Includes Targeted Customer Marketing Based On Customer Usage, AMI Data

December 31, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Updated, 12/31:

As part of its proposed offering of Time of Use supply rates and a prepay option for Standard Service Offer (SSO) customers, proposed in its grid modernization plan as exclusively first reported by EnergyChoiceMatters.com on December 24 (see story here), Dayton Power & Light will actively market such plans to customers, and will target customers for marketing based on AMI usage data.

As first reported by EnergyChoiceMatters.com, DP&L is proposing to offer a prepay option to SSO (default service) customers, but would not implement the ability for retail suppliers to offer prepay service. DP&L is also proposing to offer TOU supply rates to residential and small commercial SSO customers. DP&L would accommodate TOU rates from retail suppliers

DP&L said in its application that it will begin marketing these plans for SSO customers as they become available, including new rate options (e.g., TOU and Prepay) and functionalities.

"Once the customer programs are developed, it will be important to actively market them to eligible customers ... [C]ustomers will need to have a smart meter and be on the SSO rate to be eligible for DP&L TOU rates and Prepay. DP&L will know which customers to market to and will do so with targeted communications such as direct mail, outbound calls, text, email and the customer portal interface. DP&L's investment in a CRM system will help to streamline this effort," DP&L said in its application

"In addition, by analyzing AMI data, DP&L can identify customers that would be good candidates for a TOU program and can then send those customers a direct mail invitation to enroll in a TOU program," DP&L said in its application

DP&L will enhance its retail supplier (CRES) portal under the grid modernization plan, including access to AMI interval data

DP&L currently operates an Internet portal for CRES providers which contains public information such as aggregate load profiles, registration materials, the supplier handbook, and frequently asked questions. From this portal, CRES providers can gain access to additional information via a secure log-in name and password. This additional information includes the pre-enrollment customer list and access to 24-month historical summary usage data by account number. Further, CRES providers that are registered suppliers for DP&L have access to information specific to their customers such as a list of active accounts. If available, CRES providers may also request interval data by account number via Electronic Data Interchange

With smart grid, DP&L said that it will continue to supply CRES providers with the same information that they have access to today.

In addition, DP&L will supply CRES providers with interval data for all customers with AMI, including both residential and non-residential customers. DP&L is working toward providing at least hourly level data to all retail suppliers. This information will continue to be transmitted via EDI, or CRES providers will be able to access the data directly through the portal. To ensure appropriate protection of data, the access to data by third parties, and the standardization and transmission protocols regarding data, DP&L will participate in the Data and Modern Grid Workgroup and will comply with Commission direction as it is further developed.

Based on the proposed plan, the CRES portal will be updated at the beginning of the second year after Commission approval of the distribution modernization plan (DMP)

Under Dayton Power & Light's plan, advance metering infrastructure installation would occur over a six-year period. The enabling telecommunications infrastructure will be fully installed by the end of year two.

DP&L plans to implement a software solution for a Meter Data Management System (MDMS) over a two-year period

DP&L will make the portal enhancements available to customers once the enabling software systems are in place and customers receive smart meters. DP&L's web portal enhancements, which show customers their granular usage and cost information, will be available by the second year after the Commission approves the DMP. DP&L also plans to launch mobile application enhancements, which will provide information similar to the portal, by year four.

Case 18-1875-EL-GRD

From 12/24:

Dayton Power & Light has filed with the Public Utilities Commission of Ohio a distribution modernization plan (DMP)

The plan would include installation of advance metering infrastructure and related billing system upgrades

Notably, as part of the plan, Dayton Power & Light said that it intends to offer a Time of Use rate for default service (SSO)

"DP&L intends to offer a time-of use rate ('TOU') design for Standard Service Offer ('SSO') customers as set forth in the Commissions' PowerForward Roadmap. Once the required information systems are in place and a meaningful number of smart meters have been deployed, DP&L will introduce an opt-in TOU program. Based on the proposed DMP plan, DP&L will conduct research and program design starting in year two and initiate a TOU program in year four after appropriate filing and tariff approval from PUCO," DP&L said

"DP&L anticipates residential customers to be the primary adopters of a TOU rate plan. DP&L does intend to offer a TOU rate for small businesses as well to help those businesses lower their usage and demand charges," DP&L said

DP&L will also offer "intelligent EV charging rates" for EV owners that will incentivize EV owners to charge their vehicle during off-peak periods, promoting greater EV adoption.

DP&L also said that it would implement a "prepay" option under the DMP.

"Like TOU rates, DP&L plans to make a prepay option available to its SSO residential customers," DP&L said. The prepay option would initially be a pilot

DP&L would not enable competitive retail electric service (CRES) suppliers to offer prepay service

"Due to the complexity associated with Prepay and use of a third-party software solution to enable Prepay, DP&L does not anticipate that CRES providers will be able to offer Prepay at this time. Enabling Prepay requires daily (if not more frequent) data transfers from DP&L to the CRES provider. That capability is not included in the current DMP," DP&L said

DP&L proposed pilots for community solar, storage, and a microgrid under the plan

The proposed community solar program would consist of approximately eight megawatts of capacity. "The program design will allow low-income customers to participate by avoiding upfront costs to customers," DP&L said

The battery storage pilot would include four applications:

"In the first proposed application, DP&L plans to deploy a modestly-sized battery storage unit to enhance the reliability of the distribution grid at a critical location," DP&L said

"In the second proposed application, DP&L would install, on the utility side of the meter, approximately 750 kilowatts of battery storage to free up needed circuit capacity. Available circuit capacity would be increased through this application of battery storage technology in lieu of investment in traditional electric distribution infrastructure (i.e., non-wires alternative, or NWA). Consistent with the 15-1830-EL-AIR Stipulation, DP&L commits to continue the NWA Collaborative as set forth in that Stipulation to help inform this demonstration project," DP&L said

"In the third proposed application, DP&L would install residential battery units and a central battery unit to create distribution capacity on a capacity-constrained circuit. The residential battery units, when not needed for capacity purposes, would be available to the residential customers to use as a limited source of backup power in the event of an interruption. The residential battery units would be metered separately, so that their use as a capacity resource would not impact the customer's usage. This scenario provides DP&L with the ability to implement a demand response program to expand distribution capacity. Unlike traditional demand response programs that inconvenience the customer by interrupting air conditioning load, for instance, this battery system would provide demand response resources with no customer 'inconvenience' required. Ultimately, this has the potential to benefit all customers with enhanced system support while providing individual customers with an innovative approach for backup power," DP&L said

"The fourth proposed application would deploy utility scale battery storage technology at various points within the distribution system. These deployments would look to provide additional reliability improvements and improve load balancing during critical peak periods," DP&L said

DP&L envisions an initial deployment of approximately 1.5 MW of storage capacity spread across the first three scenarios described above. An additional 10 MW of battery storage capacity is planned to be deployed to support the utility scale deployments described above. In this last case, DP&L will also investigate the potential of linking the storage solution with a solar deployment, DP&L said

The proposed microgrid pilot is anticipated to cover customers within a five-mile radius.

DP&L plans to install approximately 50 EV charging stations throughout its service territory. "The charging stations will encourage the adoption of EVs in DP&L's service territory by establishing an EV corridor, reducing 'range anxiety' for persons considering purchasing an EV," DP&L said

Case 18-1875-EL-GRD

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