February 8, 2013

Update:  On February 7, 2013, the OMAEG participated in another settlement meeting with DP&L, which was led by PUCO Chief of Staff, Eric Weldele.  DP&L has conceded to many of the provisions in the PUCO Staff’s recent counterproposal.  These include making  a  firm  commitment  to  transfer  its  generation  assets  by  December  2017, removing the switching tracker, continuing the fuel rider in the least cost form, and not recovering transactional and administrative costs from ratepayers.  However, DP&L now proposes a $142 million service stability rider (“SSR”), which is an increase from its last proposal of $137.5 million.  Also, DP&L proposes that it receive a specific rate of return of at least 7% and no more than 13%.   The OMAEG advocated its concern with the process of how DP&L is calculating its rate of return and requested more transparency from DP&L.  PUCO Staff intends to make one more proposal to DP&L after receiving updated customer rate impact sheets from DP&L.   Accordingly, the OMAEG rejected DP&L’s proposed settlement offer and awaits a new sample bill analysis from DP&L, in order to assess the proposed impact on different customers.   The OMAEG will participate in the next settlement meeting on February 14, 2013 and will provide an update.