Update: On November 15, 2013, Staff issued its recommendation and review of DP&L’s proposed tariffs. Staff found that DP&L’s proposed tariffs were in compliance with the Commission’s Opinion and Order in this proceeding. However, Staff requested that the Commission clarify whether the entire annual $110 million Service Stability Rider (SSR) revenue or only the incremental revenue should be allocated based on the 1 CP demand allocation methodology. Staff recommended that if the Commission determines that only the incremental revenue should be allocated based on 1 CP demand allocation, then DP&L should include modified tariff sheets to reflect that clarification. Staff further advised that if the Commission determines that the entire $110 million SSR revenue is allocated based on 1 CP demand allocation, the tariffs, as filed, are in compliance with the Opinion and Order. The tariffs, if approved, will be effective January 1, 2014.
On December 18, 2013, the Commission approved DP&L’s proposed tariffs with modification. The Commission clarified that 1 CP demand allocation should be applied to only the difference between the previously authorized rate stabilization charge and the newly authorized SSR. The Commission noted that this issue is still being considered on rehearing; however, until the Commission issues an entry on rehearing addressing the issue, DP&L should file its final tariffs applying the 1CP demand allocation method for the difference between the rate stabilization charge and the SSR, subject to Commission review.