Under DP&L’s filing, the total monthly bill for the average residential customer using 1,000 kilowatt-hours would increase by $4.07. (One kilowatt-hour is about enough to watch TV for 10 hours or run a vacuum cleaner for an hour.)
DP&L’s last base distribution rate case before PUCO was almost 25 years ago, the company said.
“Our application strikes a careful balance between keeping rates reasonable while ensuring we can provide the quality service that our customers deserve and expect,” Tom Raga, DP&L president and chief executive, said in a statement. “This filing will enable us to continue investing in our systems so we can deliver on our community commitment to reliability, safety and economic growth in the Miami Valley.”
The request will go through a thorough PUCO review. DP&L wants the higher rates to take effect by Jan. 1, 2017.
The regulatory process has just started, said Mary Ann Kabel, a DP&L spokeswoman. “There will be a time when the customer has a voice (on the proposed rate increase) in a public format,” she said.
According to PUCO, its review of such a request will involve an investigation, an evidentiary process and the hiring of experts, among other steps.
PUCO staff will write a report and make a recommendation to the five-member commission. “PUCO staff conducts infrastructure inspections, reviews plant and financial records and assesses the quality of service provided to customers,” the commission says on its web site.
Within 30 days of the PUCO staff report, parties may file objections, the commission said. Then hearings, including local public hearings, will be scheduled.
“The PUCO holds local hearings to take statements from customers and evidentiary hearings for the cross-examination of expert witnesses,” the commission says.
“The Ohio Consumers’ Counsel will participate in this case to protect the electric bills of DP&L’s residential customers,” said Dan Doron, a spokesman for that office.
By law, PUCO weighs several factors, including existing rates, proposed rates, why a company wants higher rates and an appraisal of a utility’s income and expenses.
“The length of time since their last one (rate increase) really doesn’t affect … how the commission looks at it,” said Matt Schilling, PUCO spokesman.
AES Corp. acquired DPL Inc., the parent company of DP&L, in November 2011 in a transaction valued at $4.7 billion.
DP&L supplies power to 515,000 customers in 24 counties throughout west central Ohio.
In 2012, DPL Inc. generated profits of $87.4 million on revenues of $1.7 billion, according to company documents. The company employs more than 1,200 area workers.
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