Update: On October 1, 2013, counsel authorized DP&L to sign on in support of the settlement stipulation (“Stipulation”) on behalf of the OMAEG.  DP&L filed the Stipulation along with supporting testimony on October 2, 2013.  All parties, except for the Sierra Club, signed the Stipulation; 14 of 15 parties agreed.

The parties agreed that:

• DP&L’s application should be approved with the qualification that the benefits recovered by DP&L under the shared savings incentive mechanism would be capped at $4.5 million per year over the three year term and DP&L’s lost revenues would not exceed $72 million;

• Lost revenues and program costs along with shared savings will be recovered through DP&L’s Energy Efficiency Rider (“EER”);

• Non-residential rate design using a combination of distribution revenue and kWh sales will be updated to allocate EER costs among tariff classes; and

• DP&L will bid at least 75% of the eligible Program Portfolio megawatts (“MW”) into PJM Base Residual Auctions (“BRAs”) occurring during the term of the 2013-2015 Program Portfolio. Further, DP&L will bid projected MW (equal to at least 50% of the eligible 2015 plan year MW) from the 2016 program year into each PJM BRA occurring during the term of the Program Portfolio plan. The net proceeds from the PJM auctions will be shared between DP&L and DP&L’s customers with 80% of the net auction proceeds credited to DP&L’s customers.

Among the items listed above, the Stipulation contains various provisions that provide numerous benefits to DP&L customers, including the OMAEG.

It is anticipated that the attorney examiner will soon schedule a hearing to evaluate evidence in support of the stipulation.  We will continue to monitor this proceeding and provide updates accordingly.