Settlement over how long AES Ohio takes to restore power is disputed

Settlement was reached behind ‘closed doors,’ office says

Credit: HANDOUT

Credit: HANDOUT

A consumers representative is arguing before state regulators that Dayton electric utility AES Ohio took too long to restore electric service in recent years and is opposing a settlement with the state on the matter.

The case started with a settlement last year between AES and staff who work for the PUCO — the Public Utilities Commission of Ohio, a body that regulates electric and gas utilities. Representatives of the Office of the Ohio Consumers’ Counsel (OCC) objected, and the PUCO agreed to an evidentiary hearing.

The standard the OCC contends AES Ohio failed to meet was the customer average interruption duration index, sometimes called “CAIDI.”

That means Dayton-area customers often waited too long for electric service to be restored after it was interrupted. The restoration standard for AES Ohio in 2019 and 2020 was an average of just over 125 minutes — but it took the Dayton utility more than 133 minutes in 2019 and more than 132 minutes in 2020 to restore service, according to testimony before regulators.

According to the settlement: AES was expected to use its best efforts to meet the standards. The company also agreed to a forfeiture of $30,000, with $10,000 payable within 30 days of approval of the settlement and the remaining $20,000 held in abeyance.

If AES did not meet the standard in 2021 and 2022, AES was to pay the amount held in abeyance ($20,000).

The utility ended up paying that amount, a PUCO spokeswoman said. State reliability data shows AES Ohio didn’t meet the CAIDI standard in 2021 and 2022, but its performance bested the standard last year.

“The settlement does not provide for the forfeiture amount to be paid in a way that benefits consumers,” Andy Tinkham, an OCC consumer program specialist, testified before the PUCO in May.

“The amount of the forfeiture is too low in light of all the facts and circumstances underlying AES’s violations of the PUCO’s reliability standards,” he also said.

The OCC also criticizes the settlement as being reached behind “closed doors.”

Post-hearing briefs are due Friday and reply briefs are due July 12. A decision from the PUCO is expected in the months after that.

Mary Ann Kabel, a spokeswoman for AES Ohio, said the utility filed briefs Tuesday for Friday’s deadline. She said the company’s CAIDI score has improved every year since 2019.

“We’re committed to providing safe, reliable service, and we also follow the PUCO’s rules for handling these matters,” she said. “The interested parties who weighed in (on the settlement) were given multiple opportunities to participate in the proceedings.”

The OCC is a state-funded agency representing consumer interests in gas and electric utility cases. The agency typically advocates for the lowest costs possible.

Dayton Power & Light rebranded as AES Ohio in 2021. The company serves more than 527,000 customer accounts, representing 1.25 million people in West Central Ohio. Its service area covers 24 counties within 6,000 square miles.

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