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PUC Approves Additional Default Service Auction To Avoid Having 60% Of Supplies Procured In Single Auction
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The PUC of Ohio approved without modification a request from Dayton Power and Light Company d/b/a AES Ohio for approval to conduct an additional standard service offer (SSO) procurement under DP&L's legacy electric security plan in order to avoid the need to procure about 60% of default service supplies, for the delivery period starting June 1, 2027, in an anticipated spring 2027 auction which would be under DP&L's new market rate offer
As previously reported, HB 15 eliminated electric security plans as an option for utilities to provide SSO, with the SSO now required to be exclusively supplied under a market rate offer. Generally, the Ohio EDCs have already been using competitive auctions to procure SSO, and the end of ESPs largely impacts non-SSO matters typically addressed in ESPs
HB 15 provides that previously approved ESPs may continue through the end of the delivery period for any SSO contract procured prior to the effective date of HB 15
For DP&L, the ESP end date under HB 15 is now May 31, 2027.
DP&L's ESP generally conducts laddered SSO procurements twice annually (in the spring and the fall)
As DP&L's ESP has continued, DP&L, under a schedule previously approved in DP&L's ESP prior to HB 15, has procured, over the course of two auctions in the fall of 2025 and spring of 2026, 37% of SSO supplies for the delivery year June 1, 2027 through May 31, 2028.
However, because DP&L's current ESP was, prior to HB 15, designed to end in August 2026, the currently approved DP&L ESP does not include authorization for any additional procurements of SSO supply for the period beyond May 31, 2027
DP&L noted that, absent any additional SSO procurements, DP&L would be required to obtain 63% of SSO supplies for the delivery year starting June 1, 2027 through an anticipated spring 2027 auction under its forthcoming market rate offer
DP&L requested that, "[t]o maintain the benefits of laddered and staggered auction products," PUCO authorize a fall 2026 procurement for 31% of SSO supply for the delivery year starting June 1, 2027.
In this fall 2026 auction, DP&L is to procure 15 tranches of supply with a 12-month term, and 16 tranches of supply with a 24-month term. Each tranche represents about 1% of SSO supplies
The fall 2026 auction is to continue DP&L's competitive bid process from its ESP, and DP&L in its filing did not seek any changes to the terms governing the SSO auctions that had been adopted in the ESP
DP&L said that this additional procurement would mitigate the risk of procuring 63% of default service supplies in a single auction
PUCO agreed, stating in an order approving DP&L's proposal that, "the Commission finds that AES Ohio’s application is made in the interest of the Company’s
customers and proposes the continuing use of laddering to reduce the price effects of a
single auction to procure an outsized percentage of SSO supply for a single delivery year."
Case 23-0923-EL-UNC, 23-923-EL-UNC
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September 30, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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