“As a result of the PUCO decision, a typical residential consumer’s bill will increase by more than $40 a year,” the OCC said Monday.
PUCO members authorized the utility — then known as Dayton Power and Light or DP&L — to implement a non-bypassable transmission cost recovery rider or charge starting in January 2014.
These transmission charges relate to supplemental transmission projects not reviewed by state or regional regulators, such as the PUCO, the Ohio Power Siting Board, or PJM Interconnection.
The OCC objected to higher charges for the rider in April, saying in a filing with the PUCO then: “If AES Ohio’s application is approved, residential consumers will be paying $55 million per year for transmission charges. This represents a massive (53%) increase in transmission rates charged to consumers.”
This is a case in which the utility is seeking to pass on its Federal Energy Regulatory Commission (FERC)-regulated electric transmission costs, a spokeswoman for the PUCO said Monday.
She pointed out PUCO regulatory language that put the rate increases for AES Ohio residential customers at $0.0066108 per kWh (kilowatt hour) to $0.01098 per kWh.
That means an increase in residential bills of 0.77 to 2.26% from current charges.
“For a typical residential customer using 1,000 kilowatt hours per month, this equates to an increase of $3.50,” said the spokeswoman, Brittany Waugaman.
The OCC has filed a complaint asking FERC to regulate these charges. The office expects a decision on that soon.
In light of OCC’s request for refundable transmission rates, the PUCO clarified that the transmission charges may be refunded to consumers as a result of PUCO-ordered audits.
“OCC will be reviewing this language to ensure that it allows for refunds if OCC is successful in its FERC complaint,” the office said in an email.
A typical electric bill includes three main charges for generation, transmission and distribution. Generation refers to the production of the electricity, transmission refers to the movement of electricity and distribution refers to the delivery of this electricity to homes and businesses.
AES acquired Dayton Power & Light in 2011. The Dayton utility changed its name and branding to AES Ohio in February 2021.
The company provides service to more than 527,000 customers in West Central Ohio.
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