The members of the Public Utilities Commission of Ohio on Feb. 10 ordered commission staff to issue a request for proposals, with responses due from that RFP by March 4, for an outside contractor to review the fuel buying of Dayton Power and Light (DP&L).
In 2009, the commission approved a Stipulation and Recommendation to establish an Electric Security Plan (ESP) for DP&L. The ESP provided for, among other things, the establishment of a fuel adjustment clause (FAC) mechanism, effective January 2010, with annual audits of DP&L’s fuel costs and fuel management practices.
This new RFP seeks audit services to address the management performance and financial aspects of the FAC for the year 2015, including any true-ups thereafter. All proposals submitted pursuant to the audit are due by March 4. The commission intends to select the auditor by March 23, with the final audit due to be filed with the commission on Aug. 23.
The auditor, among other things, needs to include in its investigation a market price comparison to be used as a tool to evaluate the reasonableness of the prices paid by DP&L for coal purchased during the audit period. The auditor also needs to include a review of the company’s environmental compliance activities, as they relate to fuel procurement and utilization.
Incidentally, Dayton Power and Light parent AES Corp. (NYSE: AES), on Feb. 10 filed with the Ohio Power Siting Board, which is an adjunct of the PUCO, a notice of a name change for a DP&L sister company with power generating assets. “The legal entity once known as DPL Energy, Inc. and later DPL Energy, LLC, has changed its name to AES Ohio Generation, LLC, effective February 1, 2016,” said the notice. “There has been no transfer of assets; this is merely a change in legal name. This notice is being filed in the above-captioned proceedings to provide the Ohio Power Siting Board with documentation that the holder of the certificates granted within those dockets now has the legal name of AES Ohio Generation, LLC and any ongoing requirements pursuant to the certificates or the orders issuing them will be the obligation of AES Ohio Generation, LLC.”