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“The Commission adopts the stipulation resolving all issues related to The Dayton Power and Light Company d/b/a AES Ohio’s application to increase its electric distribution rates.”

As previously reported, on August 13, 2025, the Company filed a joint stipulation and recommendation (Stipulation) executed by all parties and Staff. Specifically, AES Ohio, OCC, Staff, IGS, Walmart, Dayton, OELC, OEG, UD, RESA, OPAE, and NEP (Signatory Parties) are signatories to the agreement; OMAEG, Kroger, and One Power signed the Stipulation as non-opposing parties who agree to not challenge the Stipulation.”

Summary of the Stipulation
{¶ 23} With the Stipulation filed August 13, 2025, the Signatory Parties intend to resolve all issues raised in this proceeding. The Signatory Parties recommend that the Company’s Application be approved, subject to the recommendations in the Staff Report, except as provided in the Stipulation. (Signatory Parties Ex. 1 at 3.) The following is a summary of the terms set forth in the Stipulation and is not intended to replace or supersede the Stipulation: II. Revenue Requirement A. Subject to Section II(G), the base revenue requirement for AES Ohio’s distribution service shall be $483,057,887 (Stipulated Revenue Requirement), which results in a revenue deficiency of $167,901,593. B. The Stipulated Revenue Requirement reflects a valuation, as of the date certain, of the property that is used and useful in rendering public utility service for which rates are to be fixed in this proceeding of $1,252,367,202 (Stipulated Rate Base). 

As previously reported, part of the stipulation included supplier billing concerns.

“VI. Supplier Billing
AES Ohio agrees to convene a Billing Resolution Group, that shall meet weekly beginning the week of August 18, 2025, where interested parties can discuss concerns of suppliers and customers regarding customer bills since the implementation of the AES Customer Ecosystem, as well as the expected timing to resolve those issues. Meetings of the Billing Resolution Group shall be attended by a senior leader of AES Ohio who leads the implementation of the AES Customer Ecosystem. AES Ohio will meet with the Billing Resolution Group until October 31, 2025, or until 99 percent of customers have been invoiced in the preceding three months.”

“B. AES Ohio further agrees to meet with representatives of RESA members, IGS, and any other interested parties and suppliers in January 2026 to discuss the status of any outstanding receivables relating to service provided between September 2024 and October 2025. AES Ohio also commits to analyzing and discussing any CRES provider uncollectible amount that was caused by any delayed billing from the implementation of the AES Customer Ecosystem, which could include AES Ohio agreeing to propose certain changes or accounting authority as potential remedies”

2. RATE OF RETURN AND AUTHORIZED RETURN
   {¶ 38} Given AES Ohio’s current rates, the Company has a current operating income of ($35,829,550) and a stipulated rate base of $1,252,368,621 which yields a -2.86 percent rate of return. This rate of return is insufficient to provide AES Ohio with reasonable compensation for distribution service provided to its customers. (Signatory Parties Ex. 1, Stipulated Schedule A-1, as updated by Sept. 19, 2025, late-filed exhibit Stipulated Schedule A-1.)”

{¶ 39} The negotiated rate of return recommended by the Stipulation is 7.46 percent. To realize this rate of return on the stipulated rate base of $1,252,367,202, AES Ohio requires net operating income of $93,399,127. Accordingly, the stipulated revenue increase amounts to $167,996,483 and a total revenue requirement of $483,122,778. (Signatory Parties Ex. 1, Stipulated Schedule A-1, as updated by Sept. 19, 2025, late-filed exhibit Stipulated Schedule A-1.)”

Opinion & Order  (11/05/2025)
24-1011-EL-ATA
(The Dayton Power and Light Company d/b/a AES Ohio – Application for Tariff Approval)
License Application