March Rate Filing
Get the details and read DP&L's entire rate filing from March 30, 2012.
We were required to file a new generation rate plan by March 30 of this year. DP&L has created a proposal that provides for 3-5% rate decreases from current rates over four of the five and a half years of the plan, with a slight increase projected for 2018. The rates are proposed to begin January 1, 2013.
Rates are made up of three parts:
- The generation of electricity by power plants
- The transmission of the electricity from power plants to the region
- The distribution of electricity from substations to customers’ homes and businesses
The new rate plan affects mainly the generation components of DP&L bills. Customers who take all service elements from DP&L will experience an overall rate decrease.
DP&L’s plan is a “market rate offer.” New generation rates will be based on blending a market rate component with DP&L’s existing Electric Security Plan rates approved in 2009 by the PUCO. The market rate component will be determined through a competitive bid. Eventually, the entire generation component of DP&L customer bills will be based on market rates that are the result of competitive bids. This approach is similar to the plans previously filed by First Energy and Duke Energy.
The filing of the market rate offer on March 30 begins a PUCO approval process that will last several months and include discussions and information exchanges with interested parties, the filing of testimony and a series of hearings. Upon completion, the PUCO will approve, modify or reject the rate plan.
Previously, the generation rate was based on the costs DP&L incurred to generate the electricity plus a reasonable profit on those costs.