Update:  On December 19, 2012, the attorney examiner issued an entry denying the OMAEG’s joint motion to discontinue DP&L’s rate stabilization charge (“RSC”), which was set to expire on December 31, 2012. The decision was based on the position that the RSC is part of DP&L’s current ESP; therefore, the PUCO will not eliminate the RSC without determining whether the resulting rates are just and reasonable. As a result, the charge will continue for an interim period until the PUCO issues an order regarding DP&L’s pending ESP application, which will likely be spring 2013.

DP&L recently filed an amended application, schedules, workpapers, and witness testimony in response to initial errors in its cost data. DP&L’s corrections include the following: 1) increased load expenses; 2) increased fuel rider revenues to account for distribution losses; 3) corrected auction revenues and expenses to reflect the filed auction schedule and account for distribution losses; and 3) property tax calculation reflecting its current forecast of property tax expenses. The significance of DP&L’s corrections is that it now requests a nonbypassable service stability rider (“SSR”) of $137.5 million annually, which initially began at $73 million annually under DP&L’s market rate offer (“MRO”). It is unlikely that this case will settle. Accordingly, the OMAEG will file testimony in the proceeding and prepare for the evidentiary hearing on February 11, 2013.