Update: The PUCO issued an Order approving and modifying the settlement reached between a majority of the parties, including PUCO Staff. As you may recall, in exchange for significant benefits, OMAEG agreed to not oppose the settlement. In its Order, the PUCO approved a distribution modernization rider (DMR) where DP&L will receive $105M/year for 3 years with an option to request a 2 year extension of the DMR, totaling approximately $315M over three years. Interestingly, PUCO Chairman Haque warned DP&L that it needs to “get its house in order” regarding its financial health and noted that if it does not, the PUCO would need to take further action in order to achieve its primary objective of ensuring that DP&L delivers safe and reliable electric service to customers.
The PUCO approved the Transmission Pilot Program agreed upon in the settlement where certain qualified customers may choose to opt-out of the nonbypassable Transmission Cost Recovery Rider by November 18, 2017. A detailed explanation on the procedure for opting out may be viewed here. OMAEG members interested in participating in the Pilot Program should contact Kim Bojko at Carpenter Lipps & Leland at this email or (614) 300-4100. For a more detailed summary of the PUCO’s Order approving and modifying the settlement, see the attached summary titled: Summary of the PUCO’s Opinion and Order in DP&L’s ESP III Case, prepared by Carpenter Lipps & Leland LLP.
Although the settlement provided that any cost recovery associated with OVEC generating plants would be bypassable (i.e., not paid by shopping customers), the PUCO modified the settlement making the rider nonbypassable. This is a detrimental modification to the agreed-upon settlement and will result in increased costs for OMAEG members.