Ohio utility proposes reliability charges similar to FirstEnergy, AEP proposals

Dive Brief:

Dayton Power & Light has proposed a "reliable electricity rider" that would apply to half a million Ohio customers, Platts reports. The charge, which would help keep the company's struggling coal plants online, is similar to rate structures utility regulators already approved for FirstEnergy and AEP.
DPL's proposal would cover 2,000 MW of coal-fired generation. A variety of groups, including PJM Interconnection and environmental advocates, have opposed the plan.
Federal regulators earlier this year blocked affiliate power contracts FirstEnergy and AEP proposed, leading those utilities to restructure their proposals.

Dive Insight:

Platts reports that DPL has proposed a bill rider similar to proposals from AEP and FirstEnergy, as the state's utilities continue to struggle with older generation, mostly coal, that is no longer profitable. At-risk generation include includes units at five plants, as well as DPL's ownership stake in Ohio Valley Electric Corp.

The proposal should sound familiar. Ohio debated for subsidies for generation for months, before approving AEP's and FirstEnergy's plans. But FERC subsequently withdrew affiliate waivers needed to allow the deals, effectively blocking the transactions as they were structured. The two utilities went back to the Ohio Public Utilities Commission and proposed bill riders instead of subsidies to affiliate transactions. DPL's proposal appears to be the same type of rider.

Similar to past dockets for AEP and FirstEnergy, opponents are lining up against the proposal. Platts reports the Retail Electric Supply Association, PJM, Ohio Environmental Council and the Environmental Defense Fund have all filed to intervene in the case.

"The commission's decision in this matter will affect the viability of the competitive retail electric market in DP&L's service territory, in which some RESA members provide electric power and other products and services to retail service customers," the association wrote.

DPL's proposal is smaller than the others. All total it would cover about 2,000 MW, compared with 6,000 MW between AEP and FirstEnergy.

DPL is seeking support for four units at the Stuart coal plant, two at Miami Fort and one each at Zimmer, Killen, Conesville as well as its joint owenership with the Ohio Valley Electric Corp., which operates the Kyger Creek and Clifty Creek plants.