Procurement News Notice |
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| PNN | 4156 |
| Work Detail | Dive Brief: The Ohio Supreme Court has, for the second time this year, struck down customer charges designed to help stabilize utility revenues as the state transitioned into competitive markets. The Columbus Dispatch reports the court ruled against Dayton Power & Light's Service Stability Rider in June, and rejected American Electric Power's Retail Stability Rider earlier this year. The court decisions come as utilities in Ohio are pressing to re-regulate the state's electric industry in order to save struggling power plants, after federal regulators blocked several power purchase agreements in April. Dive Insight: Four years ago, AEP and DP&L pressed for a bill rider to help the utilities transition to market-based pricing. Now, amid a debate over whether Ohio should re-regulate the utility industry, the state's highest court has rejected the charges for both utilities. For DP&L, the Dispatch reports the utility has already collected about $250 million through the rider and that amount is unlikely to be returned to customers. The utility was expecting to collect roughly $80 million this year, and that amount is in question. As Ohio utilities have struggled with the state's energy markets, there is a growing discussion over whether to re-regulate the industry. American Electric Power and FirstEnergy are turning to the Ohio legislature to save older generation by ending 15 years of competition. AEP and FirstEnergy had asked Ohio regulators to guarantee income for seven coal plants and one nuclear plant through eight-year power purchase agreements. Following a protracted debate over what to do with struggling plants, mostly coal, Ohio regulators approved customer-funded support for the plants. But in April, the Federal Energy Regulatory withdrew affiliate waivers that enabled the power purchase agreements underlying the plan. According to Fitch, the Ohio Supreme Court's decision could have a material impact on DP&L's ratings. "In addition to cash flow reduction in the near term, the ruling could jeopardize the potential extension of a similar rate structure beyond 2016," the ratings agency said. The utility requested that similar rate structure in its an Electric Security Plan filed in February. "Fitch views the receipt of these payments as key to reducing leverage at DP&L," the agency said in a statement. |
| Country | United States , Northern America |
| Industry | Energy & Power |
| Entry Date | 03 Sep 2016 |
| Source | http://www.utilitydive.com/news/ohio-regulators-strike-down-dayton-power-light-rate-stability-fees/425385/ |
