DP&L’s Self-Direct Program

Companies can cash in on energy-saving projects.

DP&L_SelfDirectEarly in 2008, Ohio lawmakers mapped a new course for Ohio’s electricity users and the utilities that serve them. Hoping that utility companies, energy users and state government could work together to keep a lid on electricity prices, they passed Senate Bill 221, which requires the utilities to implement energy efficiency and peak demand reduction programs to achieve gradual reductions in energy usage and electricity demand during peak times.

Under Ohio’s new energy plan, DP&L must meet higher energy efficiency standards starting in 2009 – and by 2025, it must use energy-conservation technologies and other measures to reduce future demand for electricity by a cumulative 22%.

State law allows DP&L and other utilities to recover – from their customers – the cost of implementing the plan. This could cost your business money. But qualifying customers have an opportunity to opt out of paying the new Energy Efficiency Rider by demonstrating that their own conservation measures and energy reduction projects have cut electricity use and peak demand.

The rules for this Self-Direct Program are still being developed. But here’s some critical information about how your business may be able to benefit.

  1. What businesses will be able to opt out of paying the energy efficiency rider?

    Participating businesses must:

    • Use more than 700,000 kWh annually or be part of a national or regional account.
    • Manage their own energy efficiency program to meet legislated reductions in energy usage.
    • Be approved by the PUCO for participation in the program.

  2. What energy efficiency projects will qualify?

    • Qualifying projects must have been installed after January 1, 2006. This means you might save money for what you’ve already done and paid for.
    • Businesses must be able to document that they have reduced their energy usage or that a project has resulted in reductions in peak demand.

  3. How will a business be able to opt out of paying the new energy efficiency rider?

    There will be four steps in the application process:

    • STEP 1: The business will have to submit a pre-application to DP&L, with documentation about reductions in energy use and/or peak demand for historical and/or future projects.
    • STEP 2: The business and DP&L will prepare and file a joint application with the PUCO.
    • STEP 3: An audit will be performed — with reasonable notice — to verify the project’s energy savings, based on PUCO requirements.
    • STEP 4: The PUCO will approve the project and the business will provide DP&L with annual reports on energy savings and/or cuts in peak demand. And the business will receive its reduced rate from DP&L.

To the extent permitted by the PUCO, all documentation and other proprietary information provided by the business will be treated confidentially.

For more information about the Self-Direct Program, call DP&L at
1-937-331-4817. Or contact Kevin Schmidt, OMA‘s Director, Public Policy Services, at 1-800-662-4463, or kschmidt@ohiomfg.com.