Dayton Power & Light Proposes Fully Auction-Based Default Service by June 2016; Includes "Switching Tracker" in ESP

Dayton Power & Light would implement fully auction-based default service in June 2016 under its newly proposed electric security plan.

A complete copy of the filing was not immediately available.

According to an investor presentation, the ESP would cover a 5-year period beginning January 1, 2013 and ending December 31, 2017.

The plan would blend existing Standard Service Offer (SSO) prices with competitive market-based auction prices to derive a blended SSO rate.

An initial auction would serve 10% of SSO load starting in early 2013, with the auction-based portion of SSO increasing to 40% in June 2014, 70% in June 2015 and 100% in June 2016.

DP&L has included a proposed "switching tracker" beginning with the start of the ESP and ending in June 2016.

DP&L said that the switching tracker, "[w]ould allow DP&L to defer as a regulatory asset the value of increased customer shopping." Deferrals would be recovered with carrying charges beginning January 1, 2014

The universe of customers who must pay the deferrals was not immediately clear.

DP&L also sought to charge a Service Stability Rider (SSR) of $120 million per year through December 2017 to allow DP&L, "to maintain its financial health during this period assuming no increase in customer shopping (62% as of August 2012)." The universe of customers who must pay the SSR was not immediately clear.

DP&L also said that it will file a separate application by December 2013 expressing its current plan to separate generation by December 2017.