Ohio's DP&L customers could shop for power in 2004

The Ohio Consumers' Counsel, Dayton Power & Light Co., the staff of the Public Utilities Commission, and others filed an agreement with the Public Utilities Commission of Ohio that, if approved by PUCO, will lead to full competition for DP&L customers in 2004.


The Ohio Consumers' Counsel, Dayton Power & Light Co., the staff of the Public Utilities Commission, and others filed an agreement with the Public Utilities Commission of Ohio that, if approved by PUCO, will lead to full competition for DP&L customers in 2004.

Under the agreement, residential customers will pay transition charges through 2003, rather than 2005, as proposed by Dayton Power & Light. Other provisions of the agreement include a rate freeze on the electric distribution portion of bills through 2006. This means that, despite the fact that transition cost recovery will end on Dec. 31, 2003, frozen distribution rates will continue for another 3 years, OCC said.

Moreover, if 20% of residential customers do not shop by the end of 2002, they will receive significant shopping incentives designed to create 20% switching by 2003, according to OCC. The company is also required to spend up to $1 million, which cannot be recovered through residential rates, to encourage voluntary enrollment.

"This agreement is one of the most progressive in the country because it shortens the period over which residential consumers will continue to pay transition costs,'' said Robert S. Tongren, Ohio Consumers' Counsel. "In doing so, we have created what could be the shortest transition period of any electric utility in the country.''

In addition to the rate freeze on distribution charges and the shopping incentive, residential consumers will receive the 5% rate reduction off the full generation portion of their electric bill, as promised by state lawmakers in Ohio's recently passed electric restructuring legislation.

The OCC said the agreement also contains a number of operational and technical provisions to improve marketers' ability to sell electricity to DP&L customers. The OCC is the residential utility advocate, providing legal representation for the residential utility consumers of Ohio's investor-owned natural gas, electric, telephone, and water companies.

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