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As background, {¶ 6} “On February 6, 2025, AES Ohio filed an application seeking to clarify the CBP, as authorized in the ESP IV Case, to procure SSO supply. Specifically, AES Ohio seeks confirmation that the Company can maintain the benefits of staggered and laddered auction products throughout the term of ESP IV (which ends August 31, 2026) by procuring supply contracts that extend beyond August 2026. AES Ohio states that the Company believes it is in the interest of customers to procure 50 tranches of both a 12-month and a 24-month supply at its April 2025 auction, 37 tranches of both a 12-month and a 24-month supply at its October 2025 auction, and 38 tranches of both a 12-month and a 24-month supply at its April 2026 auction. To do so, however, would be to procure supplies beyond the three-year ESP term. The Company notes that the approved ESP IV does not address, nor foreclose, the procurement of contracts that extend beyond the ESP term; hence, the application.”

{¶ 7}  “Continuing, AES Ohio explains that, without the clarification it seeks, the Company would be compelled to procure only 12-month contracts at its upcoming April 2025 auction, covering the June 2025 to May 2026 delivery year, so as to not extend beyond ESP IV. The question of how supply should be procured for the remainder of ESP IV would also remain unsettled, leading to a potential reset of all laddering and the diminishment of the hedge value of the current framework. As such, AES Ohio requests that, in the absence of a finding that the Company has the authority to proceed as intended under ESP IV, the Commission should exercise its continuing jurisdiction to make modification to the Company’s CBP process to reduce price volatility. See ESP IV Case, Opinion and Order (Aug. 9, 2023) at ¶ 248.”

III. ORDER

{¶ 11} ORDERED, That the Commission grants AES Ohio’s application to clarify the competitive bid process, as stated in Paragraph 10. It is, further, 

{¶ 12} ORDERED, That nothing in this Entry should be construed to extend the term of ESP IV beyond August 31, 2026. 

Order (03/19/2025)
(Entry that the Commission grants The Dayton Power and Light Company d/b/a AES Ohio’s application to clarify the competitive bid process to procure standard service offer supply)
23-0923-EL-UNC
(In the Matter of the Procurement of Standard Service Offer Generation for Customers of The Dayton Power and Light Company d/b/a AES Ohio.)