Ohio Sets Matter of Transferring Bypassable Reconciliation Costs Into Nonbypassable Rider For Hearing

The Public Utilities Commission of Ohio has set for hearing the application of Dayton Power & Light to move certain under-recovered costs under the bypassable Competitive Bid True-up (CBT) rider into the nonbypassable reconciliation rider (RR-N).

Rider CBT reconciles revenues DP&L receives from bypassable SSO generation rates with amounts that DP&L is obligated to pay full requirements suppliers.

As part of an update to RR-N, DP&L sought to include Rider CBT costs which it said exceeded the 10% threshold under which under-recovered costs from a bypassable generation rider may be moved into RR-N

However, PUCO Staff said that in previous filings for the CBT rider, DP&L forecasted over $14 million in revenues for January 2015 during that time. However, DP&L only collected approximately $8 million in revenues. This difference and the associated under-recovery drive the entire CBT deferral balance exceeding the 10 percent threshold in the instant RR-N application. Staff asserted that DP&L was aware of these factors in September 2014 and should have incorporated them into its forecast.

Staff recommended that the unrecovered costs related to Rider CBT should continue to be collected through Rider CBT

In recently approving other updates to RR-N, PUCO said that DP&L's proposed recovery of the CBT deferral balance via RR-N may be unjust or unreasonable and, therefore, set the matter for hearing.

Case No. 15-43-EL-RDR