Update:  On September 17, 2014, the Commission approved DP&L’s application, as supplemented on February 25, 2014, and amended on May 23, 2014, to divest its generation assets, subject to a number of conditions.  In it finding and order, the Commission denied the joint motion for hearing filed by IEU-Ohio and OCC, noting that DP&L’s current plan to transfer the generation assets to an affiliate resolves many of the concerns raised by the parties, as DP&L has indicated that there is an agreement to transfer the assets at net book value, and has agreed to transfer the environmental liabilities with the generation assets.

In its decision, the Commission determined that DP&L should continue to collect its service stability rider (SSR), notwithstanding DP&L’s divestiture of its generation assets.  Further, the Commission directed DP&L to transfer its environmental liabilities with its generation assets.

Importantly, the Commission held that DP&L should make a good faith effort to divest its interest in the Ohio Valley Electric Corporation (OVEC), noting that “at the very least,” DP&L should “attempt to obtain consent from the OVEC sponsoring companies to divest its interest in OVEC so that it can fully divest its generation assets.”  However, the Commission noted that, to the extend DP&L is not permitted (by the other OVEC sponsoring companies) to transfer its ownership interest in OVEC, it should cause the energy from its OVEC contractual entitlements to be sold into the day-ahead or real-time PJM energy markets, or on a forward basis through a bilateral arrangement.