Update: DP&L filed a limited response to address the cross-subsidization concerns raised by OMAEG, EPSA, the Office of the Ohio Consumers’ Counsel, and others (Opponents) with respect to DP&L’s proposal to transfer certain generating assets to an affiliate. The Opponents had argued that DP&L’s proposal to create the RER, which was backed by a virtual PPA, would have enabled DP&L to cross-subsidize its affiliate with the revenues of a non-bypassable generation charge. However, given DP&L’s recent withdrawal of the RER from its pending ESP 3 application, DP&L explained to FERC that the Opponents’ cross-subsidization concerns are now moot.

DP&L’s filing is a positive sign as it appears that the steady opposition from OMAEG and others to these PPA and virtual-PPA concepts is causing Ohio’s electric utilities to reconsider whether their anticompetitive proposals could withstand FERC scrutiny.