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Ohio regulators allow DP&L to revert to former electric security plan

The Public Utilities Commission of Ohio issued an order approving Dayton Power and Light Co. to withdraw from its third and current electric security plan, or ESP 3, and revert to its first electric security plan.

DP&L, a subsidiary of AES Corp., made the request to withdraw from ESP 3 after the commission directed the utility to terminate its $105 million annual distribution modernization rider, or DMR, that was part of ESP 3.

"Today's decision is a first step for DP&L to begin to financially recover from the PUCO's November 21st decision disallowing DP&L's Distribution Modernization Rider in customer rates," DP&L President and CEO Vince Parisi said in a news release.

Pursuant to the commission's recent order, several riders including the distribution investment rider and distribution decoupling rider will terminate with ESP 3.

Provisions of the first electric security plan including the rate stabilization charge will be reinstated on customer bills.

According to a filing, DP&L expects the rate stabilization charge to be approximately $75 million to $80 million per year. This would allow the utility to invest in transmission and distribution systems and other reliability projects, the company said.

The commission approved ESP 3 on Oct. 20, 2017, while the first electric security plan was first approved in June 2009, according to the commission's news release.

The new rates are expected to take effect by Dec. 20.

(PUCO Docket Nos. 08-1094-EL-SSO and 16-395-EL-SSO)