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Ohio Utility Proposes Time Of Use Default Service Supply Rates As Part Of Grid Modernization Plan

Will Also Offer Prepay, But Won't Enable Ability For Retail Suppliers To Offer Prepay Service

Seeks Authority For Community Solar, Storage, Microgrid Pilots, Including Residential Battery Storage

Would Install AMI, Upgrade Billing System

December 24, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Dayton Power & Light has filed with the Public Utilities Commission of Ohio a distribution modernization plan (DMP)

The plan would include installation of advance metering infrastructure and related billing system upgrades

Notably, as part of the plan, Dayton Power & Light said that it intends to offer a Time of Use rate for default service (SSO)

"DP&L intends to offer a time-of use rate ('TOU') design for Standard Service Offer ('SSO') customers as set forth in the Commissions' PowerForward Roadmap. Once the required information systems are in place and a meaningful number of smart meters have been deployed, DP&L will introduce an opt-in TOU program. Based on the proposed DMP plan, DP&L will conduct research and program design starting in year two and initiate a TOU program in year four after appropriate filing and tariff approval from PUCO," DP&L said

"DP&L anticipates residential customers to be the primary adopters of a TOU rate plan. DP&L does intend to offer a TOU rate for small businesses as well to help those businesses lower their usage and demand charges," DP&L said

DP&L will also offer "intelligent EV charging rates" for EV owners that will incentivize EV owners to charge their vehicle during off-peak periods, promoting greater EV adoption.

DP&L also said that it would implement a "prepay" option under the DMP.

"Like TOU rates, DP&L plans to make a prepay option available to its SSO residential customers," DP&L said. The prepay option would initially be a pilot

DP&L would not enable competitive retail electric service (CRES) suppliers to offer prepay service

"Due to the complexity associated with Prepay and use of a third-party software solution to enable Prepay, DP&L does not anticipate that CRES providers will be able to offer Prepay at this time. Enabling Prepay requires daily (if not more frequent) data transfers from DP&L to the CRES provider. That capability is not included in the current DMP," DP&L said

DP&L proposed pilots for community solar, storage, and a microgrid under the plan

The proposed community solar program would consist of approximately eight megawatts of capacity. "The program design will allow low-income customers to participate by avoiding upfront costs to customers," DP&L said

The battery storage pilot would include four applications:

"In the first proposed application, DP&L plans to deploy a modestly-sized battery storage unit to enhance the reliability of the distribution grid at a critical location," DP&L said

"In the second proposed application, DP&L would install, on the utility side of the meter, approximately 750 kilowatts of battery storage to free up needed circuit capacity. Available circuit capacity would be increased through this application of battery storage technology in lieu of investment in traditional electric distribution infrastructure (i.e., non-wires alternative, or NWA). Consistent with the 15-1830-EL-AIR Stipulation, DP&L commits to continue the NWA Collaborative as set forth in that Stipulation to help inform this demonstration project," DP&L said

"In the third proposed application, DP&L would install residential battery units and a central battery unit to create distribution capacity on a capacity-constrained circuit. The residential battery units, when not needed for capacity purposes, would be available to the residential customers to use as a limited source of backup power in the event of an interruption. The residential battery units would be metered separately, so that their use as a capacity resource would not impact the customer's usage. This scenario provides DP&L with the ability to implement a demand response program to expand distribution capacity. Unlike traditional demand response programs that inconvenience the customer by interrupting air conditioning load, for instance, this battery system would provide demand response resources with no customer 'inconvenience' required. Ultimately, this has the potential to benefit all customers with enhanced system support while providing individual customers with an innovative approach for backup power," DP&L said

"The fourth proposed application would deploy utility scale battery storage technology at various points within the distribution system. These deployments would look to provide additional reliability improvements and improve load balancing during critical peak periods," DP&L said

DP&L envisions an initial deployment of approximately 1.5 MW of storage capacity spread across the first three scenarios described above. An additional 10 MW of battery storage capacity is planned to be deployed to support the utility scale deployments described above. In this last case, DP&L will also investigate the potential of linking the storage solution with a solar deployment, DP&L said

The proposed microgrid pilot is anticipated to cover customers within a five-mile radius.

DP&L plans to install approximately 50 EV charging stations throughout its service territory. "The charging stations will encourage the adoption of EVs in DP&L's service territory by establishing an EV corridor, reducing 'range anxiety' for persons considering purchasing an EV," DP&L said

Case 18-1875-EL-GRD

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