March 21, 2014, Volume 3, Issue 76

03/21/2014

Update:  On March 19, 2014, the Commission issued its Second Entry on Rehearing in this matter.  The Commission denied assignments of error asserting the following:  The ESP is anticompetitive and violates Ohio antitrust law, the SSR lacked record support, a sunset date necessary for the Service Stability Rider (SSR), the transmission cost recovery rider (TCRR-N) is unlawful and unreasonable because it could result in double-billing customers for transmission service on a going-forward basis, and that the Commission does not have jurisdiction or authority to order DP&L’s shareholders to contribute to an economic development fund.

The Commission also denied arguments that its Opinion and Order unlawfully and unreasonably does the following:  Authorizes the collection of transition revenues by DP&L; limits the amount DP&L can collect through SSR-E; authorizes a nonbypassable reconciliation rider (RR-N) that is not consistent with R.C. 4928.143(B)(2), would recover generation-related costs through distribution rates, and would allow DP&L to collect costs of compliance with the alternative energy portfolio requirements on a nonbypassable basis in violation of R.C. 4928.64(E); fails to identify with specificity the competitive retail enhancements that DP&L is required to make; and authorizes DP&L to defer the costs of competitive retail enhancements for collection in a future distribution rate case.

The Second Entry on Rehearing also does the following:  Requires DP&L to file application to implement AMI/SmartGrid technologies; requires DP&L to provide rate-ready percentage off price to compare billing; orders that the SSR-E will end on April 30, 2017; states that Section 4928.143(B)(2)(d) authorizes the Commission to make the SSR-E conditions for purposes of providing stability and certainty to retail electric service; amends the deadline for DP&L to divest its generation assets from May 31, 2017 to January 1, 2016; determines that DP&L’s CBP blending schedule should be accelerated, ordering that the CBP products should be 10 tranches of a 41 month product commencing on January 1, 2014, 50 tranches of a 29 month product commencing on January 1, 2015, and 40 tranches of a 17 month product commencing on January 1, 2016; determines that substantial evidence was presented at hearing supporting the need for competitive retail enhancements to develop and support the competitive marketplace in DP&L’s service territory; determines that the qualitative benefits of the ESP make it more favorable in the aggregate than the expected results that would otherwise apply; and establishes that the 12 percent SEET threshold announced in the Opinion and Order will be applicable only during the term of this ESP.

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