“The parties agreed to a six-year settlement, which includes components that will strengthen DP&L’s infrastructure, end its ownership in 2,093 MW of coal-fired generation and integrate renewable generation,” the company said in a statement.
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For consumers using 1,000 kilowatt hours, it means their monthly bill will go up $2.39, according to DP&L. One kilowatt-hour is about enough to watch TV for 10 hours or run a vacuum cleaner for an hour.
“While this settlement is still subject to approval by the PUCO, we believe it meets our goals of providing the company an opportunity to achieve the credit metrics necessary to establish financial stability. This settlement also provides DP&L’s customers safe, affordable and reliable service and prepares our system for the future,” said DP&L President and CEO Tom Raga. “We have a proud history of serving our customers and if approved, this settlement ensures we will do that for many years to come.”
The settlement includes a five-year distribution infrastructure rider that will enable the implementation of a smart grid and advanced metering, according to DP&L. During the sixth year of the plan, both distribution riders will expire and no longer be collected.
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If approved by the PUCO, the company plans to close its Stuart and Killen coal plants in Adams County in mid-2018.
Both facilities are older, coal-fired stations operating at a time when coal-fired plants are seen as more costly to run. Coal in recent years has been more expensive than natural gas, thanks to hydraulic fracturing — or “fracking” — techniques and other factors.
The Stuart station has about 380 employees while the Killen station has about 110, according to DP&L.
The Killen station is co-owned, with DP&L having a 67 percent stake in the facility. The company has a 35 percent stake in the Stuart facility.
Additionally, DP&L said it is committed to start the sales process for its ownership shares in the Conesville, Miami Fort and Zimmer plants along the Ohio River.
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Other features of the settlement, according to the company, include competitive retail market enhancements, a plan to procure solar and wind generation, economic development funds for both the DP&L service territory and the communities neighboring the Stuart and Killen power plants, funds for low-income customers, and a commitment by DP&L to maintain its headquarters inside the city of Dayton.
DP&L serves 515,000 customers across 24 counties, including Champaign and Western Clark County.
Reporter Tom Gnau contributed to this story.
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