Retail electric supply group, PJM voice concern over utility rate plan
ational trade group the Retail Electric Supply Association and grid operator PJM Interconnection are voicing their concerns over the potential impact of Dayton Power & Light’s proposed electric security plan on electric competition and the wholesale market.
In newly filed applications with the commission, RESA and PJM are asking to formally intervene in the DP&L case, just as they did in similar ESP cases involving Ohio’s two largest electric utilities, FirstEnergy and American Electric Power.
As part of the 10-year plan pending before Ohio’s Public Utilities Commission, the AES Corp. subsidiary is seeking approval for a “reliable electricity rider.” This charge, which would apply to all of DP&L’s more than 500,000 customers in west-central Ohio, is aimed at providing for the continued operation of more than 2,000 MW of “at risk” coal-fired generation.
According to the plan, the RES would allow for continued operation of DP&L’s baseload coal generation: Stuart Units 1-4, Zimmer Unit 1, Killen Unit 2, Conesville Unit 4, Miami Fort Units 7-8 and the utility’s joint ownership in Ohio Valley Electric Corp., which operates the Kyger Creek coal-fired plant in Ohio and the Clifty Creek coal-fired plant in Indiana.
The plan already has come under fire from the Ohio Environmental Council and the Environmental Defense Fund, which argue it is not a good deal for the utility’s customers. Now, RESA and PJM are chiming in.
RESA told the commission its members have existing and potential business interests in Ohio “that will be affected by the outcome” of the DP&L case. “The commission’s decision in this matter will affect the viability of the competitive retail electric market in DP&L’s service territory, in which some RESA members provide electric power and other products and services to retail service customers.”
PJM said it wants to make sure the RES proposal “will not negatively impact PJM’s ability to administer efficient and competitive wholesale energy ancillary service and capacity markets, and maintain the reliability of the transmission system in the PJM region, which includes the state of Ohio.”
RESA and PJM opposed controversial power purchase agreements FirstEnergy and AEP proposed that would have covered more than 6,000 MW of mostly coal-fired generation in Ohio.