DP&L Reaches Agreement with Various Intervenors in Electric Security Plan Case

January 30, 2017

DAYTON, Ohio - January 30, 2017 - The Dayton Power and Light Company (DP&L), a subsidiary of The AES Corporation (NYSE: AES), today in conjunction with nine intervening parties, filed a settlement to its Electric Security Plan (ESP) pending at the Public Utilities Commission of Ohio (PUCO).  In addition, the Company and Sierra Club have reached agreement in principle that will add Sierra Club to the list of parties agreeing to settlement. Upon completion of a few remaining details,  DP&L anticipates Sierra Club will formally join the settlement later this week, as well as one other party. The parties agreed to a six-year settlement which includes components that will strengthen DP&L's infrastructure, end its ownership in 2,093 MW of coal-fired generation and integrate renewable generation. 

In the meantime, DP&L has asked for an extension of the hearing date by one week to February 8, 2017, in order to allow time for parties currently not joining the settlement, including the PUCO Staff, to file testimony.  A final decision by the PUCO is expected by March 31, 2017.  If the PUCO agrees to the proposed settlement, the average residential customer in the DP&L service territory, using 1,000 kWh on the Company's Standard Service Offer, can expect a monthly bill increase of $2.39. 

"While this settlement is still subject to approval by the PUCO, we believe it meets our goals of providing the company an opportunity to achieve the credit metrics necessary to establish financial stability. This settlement also provides DP&L's customers safe, affordable and reliable service and prepares our system for the future," said DP&L President and CEO Tom Raga.  "We have a proud history of serving our customers and if approved, this settlement ensures we will do that for many years to come."

The settlement includes a five-year Distribution Infrastructure Rider (DIR) that will enable the implementation of a smart grid and advanced metering. A Distribution Modernization Rider (DMR) will be dedicated to continuing DP&L's debt repayment to enable the Company to make additional capital expenditures to modernize and maintain DP&L's transmission and distribution systems.  During the sixth year of the plan, both distribution riders will expire and no longer be collected.

If approved by the PUCO, the plan also calls for the Company to exit 100 percent of its interest in 2,093 MW of coal-fired generation. Specifically, the Company will begin the closure process of the two coal-fired, co-owned plants it operates in Adams County.  The Stuart and Killen plants are anticipated to close in mid-2018.  Additionally, DP&L committed to commence a sales process for its ownership shares in the Conesville, Miami Fort and Zimmer plants. 

Other features of the settlement include competitive retail market enhancements, a plan to procure solar and wind generation, economic development funds for both the DP&L service territory and the communities neighboring the Stuart and Killen power plants, funds for low-income customers, and a commitment by DP&L to maintain its headquarters inside the City of Dayton.

A copy of today's agreement is available at http://dis.puc.state.oh.us/CaseRecord.aspx?CaseNo=16-0395.