DPL LLC (AES Ohio) Reaches 3-Year PUCO Rate Case Settlement

What Happened
DPL LLC reported that its subsidiary, The Dayton Power and Light Company (doing business as AES Ohio), entered an unopposed Stipulation and Recommendation (the "Settlement") with intervenors and PUCO Staff on July 21, 2026. The Settlement would set base electric distribution rates for AES Ohio’s service territory for 2027, 2028 and 2029, and is subject to approval by the Public Utilities Commission of Ohio (PUCO). The PUCO has scheduled the evidentiary hearing to begin August 4, 2026.

Key Details

• Proposed revenue requirements (subject to annual true‑up): $622,527,962 (2027), $656,145,044 (2028), $679,310,366 (2029).
• Return on equity (ROE): 9.5%, subject to annual performance metrics.
• Forecasted long‑term debt cost (subject to annual true‑up): 4.79% (2027), 4.98% (2028), 5.08% (2029).
• Forecasted rate base: $1,801,831,762 (2027), $1,960,860,762 (2028), $2,083,297,091 (2029); includes assets currently recovered through Distribution Investment Rider and Infrastructure Investment Rider.
• Forecasted capital structure (subject to annual true‑up, equity capped at forecasted amounts): 53.37% equity / 46.63% debt (2027); 52.00% equity / 48.00% debt (2028); 50.50% equity / 49.50% debt (2029).
• Docket reference: PUCO Case No. 25-0958-EL-AIR; Settlement attached as Exhibit 10.1 to the 8‑K.

Why It Matters
This proposed settlement, if approved, would set AES Ohio’s regulated distribution revenues and allowed returns for three years, providing greater near‑term visibility into distribution revenue, allowed ROE and capital recovery. For investors, the ROE, debt costs, and capped equity layer affect utility profitability and regulated cash flows; approval by PUCO (and any modifications at hearing) will determine the actual financial impact. The settlement remains subject to regulatory approval and annual true‑ups, so outcomes and timing carry regulatory risk.