DAYTON, Ohio - February 22, 2016 - The Dayton Power and Light Company (DP&L), a subsidiary of The AES Corporation (NYSE: AES), filed its latest Electric Security Plan (ESP) with the Public Utilities Commission of Ohio (PUCO) today.
DP&L's plan is designed to protect customers from volatility in energy prices while promoting economic development by allowing its power plants to continue operations. The power plants account for almost 19,000 direct and indirect Ohio jobs and millions of dollars in annual federal, state and local taxes.
"Right now, DP&L is concerned that customers are not assured price stability and a reliable energy future," said Tom Raga, DP&L President and Chief Executive Officer. "A combination of short-term market conditions and new environmental regulations has placed DP&L's fully environmentally-compliant plants at risk for premature closure. Our plan keeps Ohio power plants operating, protects our customers from price volatility, and provides fuel-diversity all while preserving Ohio's jobs and tax base."
The plan includes all of DP&L's co-owned plants, preserving almost 19,000 direct and indirect jobs and nearly $190 million in annual taxes, including property taxes paid to local schools and governments. Over the life of the 10-year plan, the power plants will contribute an estimated $26.5 billion in positive economic benefits for Ohio.
The proposed plan includes a new charge that will appear on all customer bills the purpose of which is to ensure the reliability of electric supply in Ohio. Each year, that charge will reset based on actual market conditions and will be reviewed by the PUCO. Over the life of the plan, the charge is projected by an independent third party to decrease and become a credit to all customer bills, moderating prices. If approved as proposed, starting in the first year (2017) the charge for DP&L's average residential customer's total bill, using 1,000 kilowatt hours per month is $1.21 or approximately a 1% increase.
"DP&L has always been committed to providing reliable energy at competitive prices, while investing in and supporting the communities where we live and work," Raga said. "If our power plants are forced to close prematurely, Ohioans will have fewer sources of reliable electricity generation, fewer jobs, lost tax revenues and higher electricity prices. This plan reaffirms our commitment to the community, and we are confident it addresses the needs of the region and DP&L."