DAYTON, Ohio – November 21, 2019 – The Dayton Power and Light Company (DP&L), a subsidiary of The AES Corporation (NYSE: AES), announced today that the Public Utilities Commission of Ohio (PUCO) issued an opinion and order invalidating a critical part of DP&L’s previously approved October 2017 Electric Security Plan (ESP).
The 2017 ESP included language authorizing a three-year Distribution Modernization Rider (DMR), with the ability to continue the DMR for an additional two years at a level subject to PUCO approval. The ESP and DMR put DP&L on a path to achieve sustainable financial integrity while investing in projects to modernize our distribution infrastructure benefiting customers through the continued delivery of safe, reliable and affordable service. Today’s PUCO action directs DP&L to terminate the DMR.
“DP&L is disappointed with this decision because it negatively impacts our ability to move forward with investments in the distribution system that allow us to meet customer needs. DP&L customers deserve safe, reliable service and today’s order challenges our capacity to continue meeting those expectations. We will work with the PUCO to resolve their concerns to reach a constructive outcome that will allow DP&L to meet our customers’ expectations,” said Vince Parisi, DP&L President and CEO.
DP&L already maintains the lowest residential rates among Ohio’s investor owned utilities and some of the lowest residential rates in the country. Elimination of the distribution modernization charge stops the progress of DP&L’s successful strategy to transform its distribution grid, reduce its debt, and provide its customers the service quality and experience they expect of their electric utility.
DP&L had the next phase of its investment pending at the PUCO. The Company will continue to evaluate the ESP order to determine the full impact that today’s decision has on our ability to continue with this vital, long-term customer-focused modernization.
Mary Ann Kabel