Ohio Allows Dayton Power & Light to Continue Nonbypassable POLR Charge Until New Electric Security Plan Adopted

Dayton Power & Light shall be allowed to continue charging customers a nonbypassable Rate Stabilization Charge (RSC), which acts as a provider of last resort (POLR) charge, under the extension of its current electric security plan (ESP) beyond December 31, 2012.

The current electric security plan was designed to expire December 31, 2012, but no replacement has yet been adopted, and Ohio law provides that, in such a situation, rates under the current ESP shall continue in the interim.

However, industrials and consumer advocates argued that the express terms of the settlement adopting the current ESP called for the end of the Rate Stabilization Charge on December 31, 2012, regardless of whether the ESP continued beyond that date.

PUCO disagreed.

"Although the General Assembly has not provided specific guidance in the event that an electric distribution utility were to terminate an MRO and file a new ESP, as is the case here, the Commission finds that it would be consistent with both Section 4928.141 and Section 4928.143(C)(2)(b), Revised Code, to order that the terms and conditions of the current ESP should continue until a subsequent offer is authorized" PUCO said.

"The Commission finds that the provisions, terms, and conditions of the ESP include the RSC. As one of the provisions, terms, or conditions of the current ESP, the RSC should continue with the ESP until a subsequent standard service offer is authorized," PUCO ruled.

PUCO distinguished the case from a prior order in which PUCO ruled that a transition charge shall expire, despite the extension of an existing ESP, because, "the RSC is a provider of last resort (POLR) charge and not a transition charge like the charge in Case No. 08-935-EL-SSO."

Case No. 08-1094-EL-SSO et. al.