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Utility Rate Case Settlement Addresses Default Service For Data Centers
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A settlement among major parties to a PUC of Ohio proceeding addressing a multi-year electric reliability plan (similar to a rate case) at Dayton Power & Light (AES Ohio) would address default service for data centers
The stipulation was signed by DP&L, PUCO Staff, the Ohio Consumers' Counsel, and major industrial groups, among other parties. The Retail Energy Supply Association, IGS Energy, and Constellation are non-opposing parties
The stipulation itself does not adopt a policy concerning default service for data centers, but requires DP&L to make, in another proceeding, a specific proposal governing default service to data centers, with parties preserving the right contest or seek changes to such proposal
Specifically, DP&L has agreed to file through a separate application a proposal governing the interaction of the Standard Service Offer (SSO) and data centers which shall be consistent with the "framework" proposed by DP&L in instant rate proceeding
As first reported by EnergyChoiceMatters.com (full story here), DP&L's prior proposal, which would now be addressed in a separate proceeding, would remove data center load from the utility's regular default service, with a new data center-specific default service class created
Dayton Power & Light previously proposed that electricity default service for data centers should be an hourly priced service procured via auction, with the load bid in advance, and with the load served by competitive suppliers, similar to the hourly priced default service used at certain Pennsylvania EDCs, including Duquesne Light
Dayton Power & Light's proposed auction for data center SSO would be held even if there were no active data centers on SSO, to ensure that the product is ready as a backstop.
However, if no data center SSO suppliers bid to serve the load in the data center SSO auction, and a data center later seeks to return to default service, DP&L would, during an interim period, serve the returning data center load until a new data center SSO procurement can be held or another solution is developed
DP&L also previously said that it may be beneficial to identity a "standby supplier" for data centers to ensure that data centers do not return to DP&L-served supply, though specifics concerning identification of a standby supplier, and the exact interaction with the data center SSO auction, were not delineated
See full details here
In the interim, the stipulation would adopt DP&L's proposed data center tariff. The proposed data center tariff provides that a data center may take service under the SSO, "only if the Customer certifies that it is unable
to secure Generation Service from an AGS [alternative generation supplier".
The stipulation would also provide that DP&L shall implement its proposed voluntary residential demand response program (Home Energy Response Optimization, or HERO), in the manner recommended by PUCO Staff,
except that DP&L would pass back to all customers all but 6% of the capacity and
energy revenue received from PJM relating to the HERO program
DP&L would retain the 6% not passed back to customers as a, "Demand Response Incentive."
DP&L would engage a third-party through a competitive RFP to administer the HERO program and to serve as the Curtailment Service
Provider for the program
Under the proposed residential DR HERO program, participating customers would be offered a number of eligible demand response capable devices and measures (i.e. smart thermostat, etc) through an online marketplace or through interaction with a third-party implementation contractor
Depending on the device or measure, customers would receive a one-time, upfront rebate between $50-$100 for purchasing a demand response capable device
Customers would additionally receive recurring participation incentives of up to $20 per demand response season (at $5 per month for the months of June through September).
Notably, the stipulation provides that DP&L shall file an application to withdraw the HERO program once three
residential demand response programs are available to customers in the
DP&L service territory.
A large C&I DR program (CURB) is discussed further below
The stipulation would require DP&L to implement system changes to ensure that a retail supplier's service to customers is not impacted when a customer transitions to "joint billing" (consolidated billing of service under a single account number)
Specifically, DP&L agrees that:
i) When AES Ohio consolidates a customer's accounts into a joint billing
arrangement and assigns new Choice Service IDs, AES Ohio shall maintain the
customer's existing retail supplier (CRES) enrollment and enrollment effective date without
interruption, such that the transition to joint billing shall not be treated as a
termination, rescission, or expiration of the customer's existing CRES service
arrangement, and without requiring the CRES provider to submit a new
enrollment request or any other transaction to preserve the customer relationship.
ii) AES Ohio shall transmit to the affected CRES provider, via standard
Electronic Data Interchange (EDI) transactions, the new Choice Service IDs
assigned to the consolidated accounts, together with information identifying
which prior Choice Service IDs the new identifiers are replacing, within two
business days of the account consolidation. Each EDI transaction shall identify
the new Choice Service ID, with reference to the prior Choice Service ID being
retired
iii) The transition to joint billing shall not result in the customer being returned to
the Standard Service Offer, shall not result in a dropped transaction (however,
supplier may receive a transaction confirming the change to joint billing
depending on the ultimate programming specifics), shall not require a
replacement enrollment, backdated enrollment, or any other supplier-initiated
transaction, and shall not be processed in a manner that results in unnecessary
cancel/rebill activity attributable solely to the assignment of replacement Choice
Service IDs. The customer's existing competitive generation service arrangement,
enrollment effective date, and contractual relationship with its current CRES
provider shall continue uninterrupted through the transition.
iv) AES Ohio shall complete the programming changes necessary to comply with
the joint billing provisions no later than 90 days after the date of PUCO's order approving the stipulation. AES Ohio shall provide registered CRES providers
an opportunity to participate in reasonable testing of the new functionality and
related EDI transactions prior to implementation. Until such programming
changes are implemented, AES Ohio shall manually process any joint billing
transitions for shopping customers in a manner that avoids returning the customer
to the Standard Service Offer, and shall coordinate directly with the affected
CRES provider to ensure continuity of service.
DP&L would also implement a separate Curtailable Use Reliability Benefit (CURB) Program, a demand response program geared towards large non-residential customers. Data centers would not be eligible for the CURB program, except through a reasonable arrangement which is subject to PUCO approval
DP&L would conduct a competitive RFP to select an independent third-party
administrator for the CURB program, which shall not be an affiliate of DP&L, to act as the Curtailment Service
Provider for participating customers’ Curtailable Load. Retail electric providers are eligible to
participate in the RFP process to act as the independent third-party administrator/CSP
CURB would be open to customers who meet one of the following conditions: (i) the customer has a billing
demand greater than 25 MW at a single location, (ii) the customer self-assesses the kWh
tax under section 5727.81 of the Revised Code, or (iii) the customer has a peak demand of
greater than 1 MW and has a demonstrated ability to curtail or self-generate over 70% of its
monthly peak electricity demand within 120 minutes.
CURB would start on January 1, 2028 and shall be limited to 25 MW
through December 31, 2028 and 50 MW through December 31, 2029
CURB customers would pay an admin charge of $150 per month and would receive a monthly Program Credit which shall be equal the customer's curtailable load, as defined in a proposed tariff, multiplied by $6.00/kW/month
Case 25-0960-EL-ATA et al.
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Includes New Residential Demand Response Program From Which Utility Will Earn Incentive
July 21, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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