Document:

Exhibit 10.6

 

SUBSCRIPTION AGREEMENT

 

This
Subscription Agreement, dated as of August 17, 2020 (this “Agreement”),
is being made and entered into by and between KINGSWOOD GLOBAL
HOLDINGS INC., a Delaware corporation (the “Corporation”),
and KINGSWOOD GLOBAL SPONSOR
LLC (the “Subscriber”). Capitalized terms used herein and not otherwise defined have the meanings ascribed
to such terms in the Amended and Restated Certificate of Incorporation, dated August 17, 2020, as amended from time to time.

 

W I T N E
S S E T H :

 

Whereas,
Subscriber wishes to contribute to the Corporation the property and assets set forth on Schedule A hereto (the “Contributed
Assets”) and, in consideration thereof, subscribe, and the Corporation wishes to accept such subscription of Subscriber,
for a number of shares of Class B Common Stock, subject to the terms and conditions of this Agreement.

 

Now
Therefore, in consideration of the mutual covenants hereinafter set forth and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

1.                  
Subscription and Issuance. On the terms and subject to the conditions set forth in this Agreement, at the Closing,
Subscriber shall subscribe for, purchase and acquire from the Corporation, and the Corporation shall accept such subscription and
issue, transfer and convey to Subscriber, the Shares of Class B Common Stock set forth opposite the Subscriber’s name on
Schedule B hereto (the “Shares”) in consideration of the Contributed Assets (the “Issuance”).

 

2.                  
Closing. The consummation of the Issuance (the “Closing”) shall occur on such date and at
such time as the Corporation has been assigned and assumed the Contributed Assets. Upon Closing, the Corporation shall issue to
the Subscriber the Shares purchased by Subscriber pursuant hereto. The Shares shall be uncertificated.

 

3.                  
Entire Agreement; Binding Effect. This Agreement contains the entire agreement of the parties with respect to
the subject matter hereto, and shall inure to the benefit of and be binding upon the parties hereto and upon their successors in
interest of any kind whatsoever, including, but not limited to, their heirs, executors, administrators, guardians, trustees, attorneys-in-fact
and legal and personal representatives.

 

4.                  
Modification and Waiver. Any modification, waiver, amendment or termination of this Agreement or any provision
hereof shall be effective only if in writing and signed by all parties to this Agreement.

 

5.                  
Assignment. No party shall be permitted to assign any of its rights, interests or obligations hereunder without
the express written consent of the other party.

 

6.                  
Governing Law. This Agreement shall be governed by and construed in accordance the internal laws of the State
of Delaware applicable to agreements made in and to be wholly performed in such state, without giving effect to any choice or conflict
of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Delaware.

 

7.                   Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original
and all of which shall constitute the same instrument. This Agreement and any amendments hereto, to the extent signed and
delivered by means of a facsimile machine or by electronic mail, shall be considered to have the same binding legal effect as
if it were the original signed version thereof delivered in person.

 

[Signature Page Follows]

 

    

     

    

 

IN WITNESS WHEREOF,
the Agreement has been executed by the parties hereto as of the date first written above.

 

	 	CORPORATION:
	 	 
	 	Kingswood
    Global Holdings Inc.
	 	 
	 	By:	/s/ Michael Nessim
	 	Name: Michael Nessim
	 	Title: Chief Executive Officer
	 	 
	 	SUBSCRIBER:
	 	 
	 	Kingswood
    Global Sponsor LLC
	 	 
	 	By:	/s/ Gary Wilder
	 	Name: Gary Wilder
 Title: Authorized
    Person

 

Signature Page to Subscription Agreement

 

    

     

    

 

SCHEDULE A

 

Contributed
Assets

 

1. Cash in an amount equal to $25,000.

 

    

     

    

 

SCHEDULE B

 

Issuance

 

	Subscriber	 	Class B Common Stock
	Kingswood Global Sponsor LLC	 	4,312,500 shares of Class B Common StockExhibit 10.7

 

KINGSWOOD ACQUISITION CORP.

17 Battery Place, Room 625

New York, NY 10004

[●], 2020

 

Kingswood Global Sponsor LLC

17 Battery Place, Room 625

New York, NY 10004

 

 

Re: Administrative Services Agreement

 

Ladies and Gentlemen:

 

This letter agreement
(this “Agreement”) by and between Kingswood Acquisition Corp. (the “Company”)
and Kingswood Global Sponsor LLC (the “Sponsor”), dated as of the date hereof, will confirm our agreement
that, commencing on the date the securities of the Company are first listed on the New York Stock Exchange (the “Listing
Date”), pursuant to a Registration Statement on Form S-1 and prospectus filed with the U.S. Securities and Exchange
Commission (the “Registration Statement”) and continuing until the earlier of the consummation by the
Company of an initial business combination or the Company’s liquidation (in each case as described in the Registration Statement)
(such earlier date hereinafter referred to as the “Termination Date”):

 

1.                  
The Sponsor shall make available, or cause
to be made available, to the Company, at 17 Battery Place, Room 625, New York, NY 10004 (or any successor location), office space
and secretarial and administrative services as may be reasonably required by the Company. In exchange therefor, the Company shall
pay the Sponsor $10,000 per month on the Listing Date and continuing monthly thereafter until the Termination Date; and

 

2.                  
The Sponsor hereby irrevocably waives any and all right, title, interest, causes of action and claims of any kind as a result of,
or arising out of, this Agreement (each, a “Claim”) in or to, and any and all right to seek payment of
any amounts due to it out of, the trust account established for the benefit of the public stockholders of the Company and into
which substantially all of the proceeds of the Company’s initial public offering will be deposited (the “Trust
Account”), and hereby irrevocably waives any Claim it may have in the future as a result of, or arising out of, this
Agreement, which Claim would reduce, encumber or otherwise adversely affect the Trust Account or any monies or other assets in
the Trust Account, and further agrees not to seek recourse, reimbursement, payment or satisfaction of any Claim against the Trust
Account or any monies or other assets in the Trust Account for any reason whatsoever.

 

This Agreement constitutes
the entire agreement and understanding of the parties hereto in respect of its subject matter and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject
matter hereof or the transactions contemplated hereby.

 

This Agreement may
not be amended, modified or waived as to any particular provision, except by a written instrument executed by the parties hereto.

 

No party hereto may
assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the
other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer
or assign any interest or title to the purported assignee.

 

This Agreement constitutes
the entire relationship of the parties hereto, and any litigation between the parties (whether grounded in contract, tort, statute,
law or equity) shall be governed by, construed in accordance with, and interpreted pursuant to the laws of the State of New York.

 

[Signature Page Follows]

 

     

     

    

 

	 	Very truly yours, 
	 	 
	 	KINGSWOOD ACQUISITION CORP.
	 	 	 
	 	By: 	 
	 	 	Name: Michael Nessim
	 	 	Title:  Chief Executive Officer

 

	AGREED AND ACCEPTED BY:
	 
	
        KINGSWOOD GLOBAL SPONSOR LLC

	 
	By: 	 	 
	 	Name: Gary Wilder	 
	 	
        Title: Authorized Person
	 

 

[Signature Page
to Administrative Services Agreement]stipulation_20201023

                                    BEFORE                   THE PUBLIC UTILITIES COMMISSION OF OHIO   In the Matter of the Application of The      Case No. 18-1875-EL-GRD Dayton Power and Light Company for  Approval of Its Plan to Modernize Its Distribution Grid  In the Matter of the Application of The      Case No. 18-1876-EL-WVR Dayton Power and Light Company for Approval of a Limited Waiver of Ohio Adm. Code 4901:1-18-06(A)(2)  In the Matter of the Application of The      Case No. 18-1877-EL-AAM Dayton Power and Light Company for Approval of Certain Accounting Methods  In the Matter of the Application of          Case No. 20-0680-EL-UNC The Dayton Power and Light Company for a Finding That Its Current Electric Security Plan Passes the Significantly Excessive Earnings Test and More Favorable in the Aggregate Test in R.C. 4928.143(E)  In the Matter of the Application of The      Case No. 19-1121-EL-UNC Dayton Power and Light Company for Administration of the Significantly Excessive Earnings Test Under R.C. 4928.143(F) and Ohio Adm.Code 4901:1-35-10 for 2018  In the Matter of the Application of The      Case No. 20-1041-EL-UNC Dayton Power and Light Company for Administration of the Significantly Excessive Earnings Test Under R.C. 4928.143(F) and Ohio Adm.Code 4901:1-35-10 for 2019                      STIPULATION AND RECOMMENDATION               Pursuant to Ohio Adm.Code 4901-1-30, any two or more parties may enter into a  stipulation concerning the proposed resolution of some or all of the issues in a proceeding of the

 

 Public Utilities Commission of Ohio ("Commission"). This Stipulation and Recommendation  ("Stipulation") sets forth the understanding and agreement of The Dayton Power and Light   Company("DP&L")   and parties that have signed below (together, the "Signatory Parties"), who  recommend that the Commission approve and adopt this Stipulation without modification to  resolve all of the issues in the above-captioned proceedings.              This Stipulation is a product of lengthy, serious, arm's-length bargaining among  the Signatory Parties (all of whom are capable, knowledgeable, and represented by counsel) with  the participation of the Staff of the Commission ("Staff'). All parties were invited to discuss and  negotiate this Stipulation, and it was openly negotiated among those parties that chose to  participate; no party was excluded from these negotiations. This Stipulation is supported by  adequate data and information, and as a package, benefits customers and the public interest. This  Stipulation violates no regulatory principle or practice; indeed, it complies with and promotes the  policies and requirements of Title 49 of the Ohio Revised Code. This Stipulation accommodates  the diverse interests represented by the Signatory Parties and is entitled to careful consideration  by the Commission.              WHEREAS,DP&L     is a public utility engaged in the business of supplying  electric distribution service to more than 500,000 customers in West Central Ohio;              WHEREAS,DP&L     is committed to its vision that its customers will experience  personalized, innovative and seamless energy services enabled by transformative technologies,  and intends to achieve this vision by using the latest technology to provide customers  information, choices and ways to interact with their utility that they have not experienced before;                                          2

 

             WHEREAS,the   terms of this Stipulation are reasonable to ensure that DP&L can   modernize its distribution infrastructure so that customers will continue to receive stable and  reliable service and benefit from a platform that will allow them to make choices that will   become available in a robust marketplace;               WHEREAS,the   ultimate parent of DP&L, The AES Corporation, provided a  capital contribution of $150 million to DP&L, on June 26, 2020 to enable DP&L to improve its  infrastructure and modernize its grid while maintaining liquidity. In addition, as more fully  described in DP&L's June 17, 2020 8-K filing, AES has provided a statement of intent to  contribute an additional $150 million to DPL or DP&L in 2021 to enable smart grid investment;              WHEREAS,DP&L      is presently providing a standard service offer in the form of  an electric security plan, as approved by the Commission in its December 18, 2019 Second  Finding and Order in Pub. Util. Comm. Case No. 08-1094-EL-SSO, et al. (the ESP approved in  the Commission's December 18, 2019 Second Finding and Order is referred to below as "ESP  I");              WHEREAS,the    Commission directed DP&L to open a docket for the  Commission to conduct both the more-favorable-in-the-aggregate test("MFA  Test") and the  prospective significantly excessive earnings test("SEET")  of R.C. 4928.143(E) as to DP&L's  ESP I;              WHEREAS,to    comply with the Second Finding and Order and R.C. 4928.143(E),  DP&L filed the Application and supporting testimony and exhibits in Pub. Util. Comm. Case No.  20-0680-EL-UNC;                                          3

 

             WHEREAS,the   terms and conditions of this Stipulation satisfy the policies of the   State of Ohio as set forth in Section 4928.02, Revised Code;               WHEREAS,the   intervening Signatory Parties recognize that the terms and  conditions of this Stipulation are designed to provide DP&L an opportunity to begin grid  modernization efforts, set forth a transition path forward that provides economic development  support during the ongoing pandemic and emergency conditions, and set the framework for both  the timing and content of DP&L's next ESP by requiring DP&L to file an application for ESP IV  by a date certain and prohibiting DP&L's ESP IV from containing the types of nonbypassable  charges that have been subject to significant litigation before the Commission for the past  decade.              NOW,THEREFORE,      in order to resolve all of the issues raised in these  proceedings, the Signatory Parties stipulate, agree, and recommend that the Commission issue an  Opinion and Order in these proceedings approving and adopting this Stipulation.        1.    Plan approval: DP&L's Smart Grid Plan ("SGP") shall be DP&L's Application,              testimony and schedules as filed in Pub. Util. Comm. Case No. 18-1875-EL-              GRD,et  al., except as modified in this Stipulation. DP&L's SGP shall be              approved and DP&L shall be authorized to implement that plan.        2.    Phases and Cap: DP&L's SGP shall be divided into phases. SGP Phase 1 shall be              four years from the date of the Commission's Order approving this Stipulation and              shall be limited to the projects as set forth in Exhibit 1. The total amount that              DP&L may spend on SGP Phase 1 capital investments and operational and              maintenance expenses, collectively, shall be capped at $267,600,000. The                                         4

 

       Company shall deploy the quantities of each technology as described below. Any        return on and of those actual capital expenditures and recovery of O&M        expenditures shall be through the Infrastructure Investment Rider(MR"),  and        recovery will commence after the date of the Commission's Order approving this        Stipulation. Individual components may cost more or less than estimated but the        overall spend shall be capped. DP&L plans to pursue subsequent phases of        comprehensive grid modernization and may file an application for a second phase       ("SGP Phase 2") on or before three years from the date of the Commission's Order        approving the Stipulation. However, nothing in this Stipulation precludes the        Signatory Parties from opposing any future DP&L SGP application or future        proposals contemplated but not authorized as part of this Stipulation. Nothing in        this Stipulation precludes DP&L from seeking a return on and of any capital or        O&M expenditures through base distribution rates.  3.    Cost Recovery:        a.    DP&L may seek to recover a return on and of its prudently incurred SGP              Phase 1 capital investments and its associated operation and maintenance              expenses through the IIR (approved in the December 18, 2019 Second              Finding & Order in Pub. Util. Comm. Case No. 08-1094-EL-SSO, et al.).        b.    DP&L's recovery of its capital investments and expenses through the IIR              shall be offset by the estimated operational benefits that the parties agree              DP&L will realize as a result of DP&L's SGP Phase 1 expenditures.                                    5

 

c.    If DP&L does not file a distribution rate case by January 1, 2025, then the        recovery of the costs associated with this Stipulation shall cease recovery        and the IIR shall be set to zero.  d.    The earnings-based portion of incentive compensation for the costs        associated with the provisions of this Stipulation shall not be recoverable.        However, DP&L reserves the right to raise this issue in the upcoming rate       case.  e.    Meters.       i.    Capital costs associated with AMI meters will be recovered over a             depreciable life of fifteen (15) years, with all other investments             being recovered pursuant to the depreciation rates authorized in             Case No. 15-1830-EL-AIR.       ii.   The net book value of the retired meters and capacitors will be             subtracted from the gross plant additions in each year of SGP             Phase 1, so that the value is not double counted in rate recovery.             The gross plant offset will occur through the IIR as the meters and             capacitor banks are retired.       iii.  Costs for AMI meters purchased but not installed within 90 days             shall not be recoverable for the period the AMI meters remain             uninstalled in excess of 90 days.

 

       f.    DP&L may make SGP Phase 1 investments before the Commission has               approved this Stipulation and include recovery of those investments in the              IIR upon approval, if those costs were incurred after December 21, 2018              or included as part of the Grid Mod R&D Asset deferral, which shall be              subject to audit through the IIR and the expenditure cap set forth in              Paragraph 2.  4.    Ratemaking: The revenue requirement for the SGP Phase 1 shall be calculated as        shown on Exhibit 2. The cost allocation and rate design of the SGP Phase I shall        be as proposed in the Smart Grid Plan, allocated and charged as a percentage of        base distribution charges.  5.    Commission Oversight and Information Sharing:        a.    Audit: DP&L's SGP Phase 1 investments and expenses and the IIR (or              replacement rider) shall be subject to annual audits. The audit shall either              be conducted by Staff or by a third party under the direction of Staff with              such costs recoverable through the IIR and not subject to the cap. Annual              audits will include, but not be limited to, the following:              i.    On-site inspections of new capital assets;              ii.   Tracking capital expenses from continuing property records,                    invoices, and other supporting documentation to the used and                    useful assets. Additionally, tracking used and useful assets to                                    7

 

       continuing property records, invoices, and other supporting         documentation;   iii.  Verification of proper accounting and computation of annual         property tax expense;  iv.    Verification of proper accounting and computation of state, local,        and federal income tax expense, as well as taxes other than        income;  v.    Verification of proper accounting and computation of annual        depreciation expense;  vi.   Verification that incremental labor O&M expense included for        recovery in the IIR is only associated with employees dedicated to        SGP Phase 1 and in roles not already recovered in current base        distribution rates. For employees whose compensation is currently        recovered in base distribution rates but are in new roles fully        dedicated to DP&L's SGP, DP&L will provide verification that        their previous positions have been backfilled so as to prevent        double recovery of an individual's compensation. Annual audits        will require review of timesheets, employee position numbers,        position descriptions, and organizational charts;  vii.  Verification that non-labor O&M expenses are incremental.        Annual audits will require review of any applicable allocations;

 

            justifications for allocation percentages; supporting invoices and              other documentation; contracts; Requests for Proposals; listings of              applicable transactions in Excel and journal entry reports; and         viii. Verification of proper accounting for IIR revenues.  b.    Non-Financial Metrics: DP&L will provide annual reporting for the        metrics contained in Exhibit 3 as part of the annual audit filing each year.  c.    Grid Mod Implementation Update Group: DP&L will facilitate a Grid        Mod Implementation Update Group ("Update Group") with interested        Signatory Parties.        i.    The Update Group will meet at least quarterly to:             (1)    Update stakeholders on the status of the projects throughout                    implementation of SGP Phase 1 and to provide for                    customer input and advice.             (2)    Update stakeholders on the progress toward data access for                    Competitive Retail Electric Service ("CRES") provider                    product billing purposes.             (3)    Gather stakeholder input associated with data access                    systems and processes.             (4)    Share an updated map of where AMI is being deployed                    with dates of deployment and an AMI tag on the Customer

 

            Information List provided to CRES providers to indicate              active meters.  ii.   AMI Distributed Intelligence Capabilities       (1)    An AMI meter with "Distributed Intelligence Capabilities"             is a meter that has an on-board computer with the capability             to download and execute software applications written by             DP&L or third parties. Distributed Intelligence              Capabilities do not refer to firmware that is loaded on an              AMI meter for basic operations.       (2)   DP&L will notify the Grid Mod Implementation Update             Group if it develops any plan to procure and deploy AMI             meters with Distributed Intelligence Capabilities during             SGP Phase 1.       (3)   At least 180 days before utilizing Distributed Intelligence             Capabilities of AMI meters during SGP Phase 1, DP&L             will file a description of its planned utilization in the docket             for this proceeding to allow for public comment on that             plan by interested stakeholders. DP&L's filing will, at a             minimum, describe: (1) how third parties may be able to             utilize the AMI meter's Distributed Intelligence             Capabilities with appropriate customer consent, and under             what terms and conditions;(2)  what customer services or                     10

 

                         offerings DP&L may provide through the Distributed                           Intelligence Capabilities of its AMI meters; and (3) a                           description of what software applications have been, or are                           planned to be, installed onto AMI meters.  6.     Additional Provisions: DP&L will:         a.    Reduce AMI investment to be recovered in the IIR during SGP Phase 1              from 100% of meters, as shown in the Application, to 95%, as reflected in               Exhibit 1.         b.    Reduce the Distribution Automation investment to be recovered in the IIR              during SGP Phase 1 from 47% of circuits, as shown in the Application, to              approximately 20%(88)  of DP&L's circuits, as reflected in Exhibit 1.        c.    Reduce the Substation Automation investment to be recovered in the IIR              during SGP Phase 1 from 97 substations, as shown in the Application, to              approximately 30 substations, as reflected in Exhibit 1.        d.    Accelerate VVO/CVR implementation installing the necessary hardware              and software on approximately 30%(132)  of DP&L's circuits; specifically              targeting those circuits that serve hospitals.        e.    Propose time-of-use("TOU") rates  and implementation plan through an              EL-ATA case on a pilot basis during SGP Phase 1. Any TOU rates that              are offered through DP&L's Standard Service Offer("SSO")  shall be              offered only on an "opt-in" basis. The generation related costs of any                                    11

 

       TOU proposal shall remain fully bypassable, including costs associated         with the implementation, administration, or marketing of the Company's         TOU offering as set forth in Workpaper 3.3, which shall be deferred for         future recovery through SSO rates upon Commission approval. Once         DP&L is notified that there are at least three different suppliers offering         time-varying products utilizing AMI data, then DP&L, with Commission         approval, will request to withdraw its SSO TOU rate offering.   f.    Implement an Electric Vehicle ("EV") rebate program, as described in         Paragraph 8 below.   g.    Implement a Smart Thermostat rebate program, as described in Paragraph        9 below.   h.   Implement a new Customer Information System, as described in        Paragraph 10 below.  i.    Provide for customer, CRES, and third party access to customer data, as        described in Paragraph 11 below.        Implement additional residential customer benefits, as described in        Paragraph 12 below.  k.    Implement additional benefits for the City of Dayton, as described in        Paragraph 13 below.

 

       1.    Implement additional Commercial & Industrial ("C&I") benefits,               including several pilot programs, as described in Paragraph 14 below.   7.    Regarding the request for limited waiver of Ohio Adm.Code 4901:1-18-06(A)(2),         within six months of an Order adopting this Stipulation, DP&L will file a         supplemental application for waiver and memorandum of support including but         not limited to proposed alternative methods of notification, protections in place to         ensure the safety of vulnerable customers, and if approved, the means by which         customers will be advised of the change in procedure.  8.    EV Rebate Program: DP&L will implement an EV program consisting of rebates        for Electric Vehicle Supply Equipment("EVSE") for  both Level 2 and Direct        Current Fast("DCF")  chargers, education and marketing, as well as a future        intelligent charging incentive. The total EV program will be capped at $5.1        million.        a.    EVSE Rebate: The Signatory Parties agree to the following program,              which will include rebates to cover the costs of up to $5.1 million to install              Level 2 and DCF chargers, including customer out-of-pocket installation              costs:              i.    The program will consist of EVSE rebates split 70/30% between                    Level 2 and DCF chargers and is further described below:                   (1)    For the Level 2 chargers, 100% of EVSE and customer out-                          of-pocket installation costs will be eligible for rebates,                                   13

 

        capped at $10,000/station. The Level 2 Chargers that will          be eligible for rebates will be as follows:         (a)   30% available to the public, which includes persons                who provide transportation to the public such as               mass transit, school buses, shuttle buses, taxis, and               other public serving transportation;         (b)   50% available to workplaces, which are not               required to be publicly available;        (c)    20% available to multi-unit dwellings, which are               not required to be publicly available;  (2)    For the DCF chargers, 100% of EVSE and customer out-of-         pocket installation costs will be eligible for rebates, capped         at $75,000/station). The DCF chargers that will be eligible         for rebates will be 100% available to the public, which         includes customers who provide transportation to the public         such as mass transit, school buses, shuttle buses, taxis, and         other public-serving transportation. At least 30% of the         funds for DCF chargers shall be used for the establishment         of"corridor  ready" alternative fuel corridors for EVs, as         defined by the U.S. Department of Transportation's Federal         Highway Administration.

 

(3)    Other Program Terms and Limitations        (a)    Rebates will be awarded on first-come, first-served               basis        (b)    A customer (or its affiliates) shall not receive more               than 7% of all the rebates available        (c)    All charging infrastructure installed shall be               networked charging infrastructure (i.e., able to              communicate with a network management system),              be demand-response capable, include software and              network services capable of capturing data and              metrics described in the "Data" sub-paragraph              below, and support open charging standards or              protocols. An electric vehicle charging station that              is part of the rebate program and requires payment              of a fee shall allow a person desiring to use the              station to pay via credit card or mobile technology,              or both. A site host participating in the rebate              program that takes service under DP&L's Standard              Service Offer will be charged for their usage and              service requirements as a DP&L retail customer,              including usage delivered to EV charging systems              on the site host's premises, based on applicable

 

             tariffs. This provision does not preclude a site host              from shopping for their generation supply.  (4)    Data        (a)    The site host and/or charging station provider will               have flexibility to set pricing to EV drivers, subject              to any applicable laws or regulations. DP&L will              require reporting of prices charged to EV drivers at               all charging stations in a manner and form as               established by DP&L,including,  but not limited to,              reporting of intended prices as a precondition on              receipt of rebates. As part of the rebate              process, DP&L will inform site hosts about its              available tariffs and rates, including TOU rates, to              better inform site hosts about their options to              effectively manage charging load and to provide the              opportunity to maximize cost savings.       (b)    DP&L will be authorized to access or receive data              from charging stations installed though the Rebate              Program, including but not limited to: usage, data              regarding grid reliability, load growth, the potential              for demand response load profiles, prices paid by              EV drivers and site host pricing models/strategies,                 16

 

                         equipment provider selected, installation costs by                           equipment provider, and outage incidents by                           equipment provider. DP&L shall report on this                          information at the Update Group meetings.              (5)   Reporting: The Company shall file two reports associated                     with the EVSE Rebate program: one midway through the                    program and a final report once the program is fully                    subscribed. The report shall include an overview of the                    program, including but not limited to: the location of rebate                    recipients and the category of site hosts who receive                    rebates; EVSE funded through the program; charging                    network and service providers included in the program;                    cost of the EVSE and installation relative to the EV rebates,                    broken out by technology type; usage and load profiles of                    EVSE; impacts of site host pricing on charging behavior;                    and impacts of the EVSE on the distribution system.  b.    No Administrative Fees will be assessed for this program. DP&L will not        own or receive a return on charging stations in this program. All customer        funds recovered through the IIR related to the EV program shall either be        distributed as rebates pursuant to this provision or refunded to customers        through the IIR. Nothing in this Stipulation prevents DP&L from seeking        approval for a utility ownership model or recovery of any additional        charging station investments; the Signatory Parties remain free to                            17

 

             challenge any such request by DP&L. If DP&L elects to file such a               request in the future, it shall be filed in a new application and requires               Commission approval.         c.    DP&L will continue to evaluate category funding and will seek input and               advice from the Staff and Signatory Parties regarding reallocation of funds               between program categories, Level 2 and DCF chargers, and annual               spending. DP&L will provide Staff annual updates on the program. If              DP&L plans to reallocate funds, it will provide notice within 90 days to              Signatory Parties and to Commission Staff.        d.    The costs of the EV Rebate Program will be recovered through the IIR.  9.    Smart Thermostats: DP&L will provide a total of $450,000 annually, funded by        DP&L with shareholder dollars and not recovered through the IIR or other rates,        for four years to offer marketing, administration, and rebates/incentives for "smart        thermostats," at least 75% of which will be reserved for customer        rebates/incentives.        a.    Customers will be able to purchase a smart thermostat and receive a rebate              directly from DP&L, or an instant rebate through a third party vendor or              retail outlet that will be attributed to DP&L. Third party vendors will              commit to provide proof of sale to the Company that the eligible              thermostat was sold to a DP&L customer.                                   18

 

 b.    The rebate will be initially set to encourage adoption of smart thermostats         and maximize program effectiveness. For the term of SGP Phase 1,         DP&L will hold quarterly meetings with interested parties and vendors to         develop a program design that minimizes administrative/other non-rebate         costs, and optimizes the incentive and marketing that will be offered to         encourage customer adoption of smart thermostats, including the         possibility of a demand response incentive. In the final 18 months of SGP         Phase 1, meetings will be used to develop the Smart Thermostat Rebate         Program as set forth in Paragraph 9(e) of the Stipulation. Meetings are to         commence within 30 days of filing this Stipulation. DP&L agrees to         provide third party vendors at least 30 days advanced notice prior to        initially setting or adjusting the rebate incentive amount.  c.     DP&L will work with the local gas utility on bundling rebate opportunities        for customers. DP&L will further commit to consider and evaluate, for        implementation, smart thermostat marketing and educational opportunities         presented by collaborative members.  d.    Smart thermostats that are eligible for rebates must be certified under        United States Environmental Protection Agency EnergyStar Connect        Thermostat guidelines.  e.    In its next rate case, SGP Phase 2 filing, or in a combination of the two,        DP&L will propose in its initial application a budget for a Smart        Thermostat Rebate Program that will incentivize deployment of smart

 

             thermostats to a total of 20% of DP&L's residential customers, focusing               on customers with AMI meters, with a goal of maximizing residential               customer benefits from managing peak demand in conjunction with time-               varying rates. DP&L will propose recovery of costs exclusively allocated               to residential customers for the Smart Thermostat Rebate Program through               base rates, and/or the IIR, or if the IIR is no longer in effect, through any               rider authorized for recovery of costs for SGP Phase 2. In addition to this               commitment, to the extent DP&L has not reached or been approved to               implement smart thermostats at the aforementioned deployment               percentage, DP&L will include a cost-effective smart thermostat program              in any other filing proposing demand response or energy efficiency               programs with cost recovery through any applicable rider. Nothing in this              Stipulation precludes any Signatory Party from opposing any future              requests for a Smart Thermostat Rebate Program set forth in this              Paragraph.  10.   Customer Information System ("CIS"): DP&L will invest in, no later than 6        months after a Commission Order approving the Stipulation in this case, the        development of a new CIS that will perform core functionality, including at least        the following:        a.    Meter to Cash process and bill presentment shall comply with all              applicable requirements of the Ohio Administrative Code and Ohio              Revised Code;                                   20

 

 b.    Integration of Integrated Voice Response, Customer Portal and Mobile         App, Advanced Metering Infrastructure, Advanced Distribution         Management System, Geographic Information System, Enterprise         Resource Planning System, Meter Asset Management System, Meter Data         Management System, and Mobile Workforce Management System;   c.    Customer Relationship Management("CRM")  as a customer service and        communication tool;   d.   Flexible pricing plans including CRES ability to bill for products that        utilize AMI data;  e.    The system will allow for CRES Electronic Data Interchange ('EDP") and        data access for billing and time-of-use product offers which use AMI         within three years after approval of this Stipulation or in the timeline        associated with the CIS, whichever occurs first;  f.    Customer, CRES and third party data access set forth in Paragraph 11; and  g.    DP&L will recover a return on and of its prudently incurred capital        investment in the new CIS and its incremental operation and maintenance        expenses associated with the new CIS through base distribution rates and        not through the IIR. DP&L shall be entitled to defer operation and        maintenance expenses, if applicable, associated with implementation of        the new CIS and recover that deferral either through base distribution rates        or a future rider, subject to demonstration that the functionality detailed

 

            above is available. The amount of the deferral shall not exceed $8.8M.              The Signatory Parties acknowledge that the Company provided its best              estimate of the CIS-related costs as set forth in the Company's Application              and Workpapers 1.2, 1.3, 1.4, 2.7, 3.2, 3.5, 3.6, 7.1, 7.3, and 7.4. The              amount of CIS expenditures for future recovery is subject to a              reasonableness and prudence review.  11.   Customer, CRES and Third Party Data Access        a.    Customer Data Access. In the timeline associated with the CIS, DP&L              shall provide the Customer with access to the following:              i.    At least 24 months of energy usage data in 5-minute, 15-minute,                   30-minute, or 60-minute intervals (whichever interval is collected                    by the meter) made available on a best efforts basis within 24                   hours of performing industry-standard validation, estimation, and                   editing(VEE) processes  and no later than thirty(30)  days after the                   end of each meter cycle.             ii.   At least 24 months of detailed billing history data, including                   breakdown of all billing line item charges.             iii.  At least 24 months of summary billing history data, including date                   of bill, usage, bill amount and due date.                                  22

 

       iv.   Flexible views (for Customer with multiple accounts) with options               to (a) select individual account,(b)  group accounts by user-defined               criteria, or (c) access full account list.         v.    Tariff and rebate program information (if applicable).         vi.  The foregoing data shall be able to be downloaded by the customer              into either an .xlsx or .csv format.         vii. No additional fees shall be charged, directly or indirectly, to              customers associated with accessing or requesting data.  b.    CRES and Third Party Data Access. As part of and in the timeline        associated with the CIS, DP&L commits to the following:        i.    The release of any customer's energy-usage data shall be in              accordance with the applicable North American Energy Standards              Board Energy Services Provider Interface standards and compliant              with all Ohio Administrative Code and Ohio Revised Code.        ii.   DP&L shall provide Green Button Connect My Data("GBC") for               use by any authorized CRES or third party on a non-discriminatory              basis to be completed as part of and in the timeline associated with              the CIS. GBC shall be independently tested and certified as              compliant with the latest standard as of time of release. DP&L is              not prohibited from supplementing or replacing GBC with a new              generally accepted industry standard Application Programming                            23

 

       Interface after collaborating with Staff, CRES, customers, and        third parties via the Grid Mod Implementation Update Group         subject to a prudency review and the spending cap defined in        Paragraph 2. The terms and conditions under which customer-        authorized CRES providers and third parties access GBC or any        other Application Programing Interface will be set forth in a DP&L        tariff subject to Commission approval.  iii.  At a minimum, DP&L's GBC will provide, with appropriate        customer authorization, 24 months of historical usage data,        ongoing usage data, account number(s), meter identifier(s), and        customer billing determinants. For purposes of this provision,        "billing determinants" means customer-specific information used        to calculate a bill, including (if applicable to a given customer)        kilowatt-hours, kVAR, peak demand, and billing schedule, but        excluding non-customer-specific information contained in filed        tariffs. If DP&L determines in the future that billing determinants        are more expansive than this definition, DP&L will so inform the        Grid Mod Implementation Update Group to discuss inclusion in        Green Button Connect. As part of the Grid Mod Implementation        Update Group, DP&L will work with Staff, CRES and third parties        to further develop the types of data that may be shared through        GBC as well as the timelines and frequency of transmission.

 

 iv.   DP&L shall allow CRES providers to access the most current data         available for both prospective and existing customers through         GBC, with customer authorization as required. However, data for         purposes of billing and scheduling shall be provided via EDI or the         current standard form.   v.    DP&L shall provide documented processes for registering,         troubleshooting and providing access to CRES providers and third         parties on a publicly available website. Any data from a customer         who objected to sharing data on the pre-enrollment list shall not be         provided without authorization.   vi.  DP&L will make best efforts to: (i) operate the GBC platform with         an uptime of at least 99% during business hours as determined by        the Company and calculated on a monthly basis; (ii) respond         promptly to questions, issues or bugs raised by third parties and        seek to promptly resolve technical issues with the GBC platform;        and (iii) ensure that the data provided are accurate and up to date.  vii.  Customer Experience. DP&L shall support the following        processes:        (1)   DP&L will develop a process for CRES and third parties to              provide customer consent in accordance with Ohio              Adm.Code 4901:1-10-24 or any subsequent rule to access              data for prospective and existing customers. This process                      25

 

       will include the ability for customers to authorize the        release of energy usage data to CRES and third parties via        the following methods:        (a)   DP&L's web site, which shall be optimized for the              Customer's screen size, or mobile app.        (b)   Third party web site or mobile app(DP&L  will not              be responsible for costs associated with developing              third party websites or mobile apps.) In this case,              DP&L will, for customers with a cellular telephone              number on file, send a text message one-time              passcode to the customer's cellular telephone to              complete the authorization.  (2)   At the time of the request, the customer is prompted to        authenticate and authorize sharing of data and DP&L shall        require no more information of the customer than DP&L        requires for establishing an online account. Web-based        authentication and authorization must adhere to 0Auth2.0        or a more recent industry-standard protocol as set forth at        https://oauth.net/2/. CRES and third parties should have        the option to determine the authorization term they require,        i.e. 12 months, 24 months, or indefinite ("valid until        rescinded"). DP&L will send notification to the customer's

 

        preferred communication channel that DP&L has received          notification that the customer has authorized a third party          access to their customer energy usage data and/or account          number and provide instructions on how to contact DP&L          to cancel if they did not make such an authorization.          Customer will be notified annually of all CRES and third          parties that have current access to customer data and how to         rescind such access.   (3)    Once authorized, DP&L will promptly begin transmission         of historical data within timely manner to a CRES or third         party. Subsequent to a successful Customer authorization,          when data is requested, the system will immediately or         nearly immediately process and return the requested data.   (4)   DP&L shall support the authorization methods without         requiring the creation of an online account.  (5)    DP&L shall provide a list of CRES and third parties that         have accessed the customer's data within the last six         months, which shall be prominently displayed and easily         accessible on the customer's on-line account and/or         customer portal.

 

c.   Individual Wholesale Market Settlements: DP&L will facilitate wholesale       market settlements as part of and in the timeline associated with the CIS,       as follows:       i.    DP&L will make the necessary upgrades to systems and processes             for wholesale market settlements, i.e. calculating and settling             individual total hourly energy obligation ("THEO"), peak load             contribution ("PLC"), and network service peak load ("NSPL")             values for each customer, instead of relying on generic load             profiles.       ii.   DP&L shall transmit settlement data to PJM, at a minimum, in             hourly intervals.       iii.  DP&L shall make the THEO,PLC,  and NSPL data available to             authorized CRES providers, consistent with Ohio Adm.Code             4901:1-10-24 or any other subsequent rule, through the pre-             enrollment list and EDI transactions, as applicable. Customers will             also have access to this information.       iv.   DP&L will begin using AMI data for calculation of individualized             PLC when the necessary upgrades to systems have been made to             utilize the VEE certified AMI data that has been read for any             qualifying peak events. Until those upgrades have been completed             and an AMI meter has been installed, the current method of using             register reads and profiles will be used.                           28

 

       d.    Neutral Platform: The AMI deployment will utilize the necessary and              generally accepted standards, e.g., technologies to implement a Home              Area Network, so that customers can connect qualified devices (e.g., in-              home displays, smart programmable thermostats) to their meter, or              otherwise direct the meter to transmit usage data to any CRES or third              party selected by the customer. The technical eligibility requirements for              Home Area Network devices, if applicable, including those for security,              will be developed through the Grid Mod Implementation Update Group.              Qualified devices will not be limited to devices supplied only by the EDU              or an affiliate.        e.    Through the term of SGP Phase 1, DP&L will update its G8 tariff such              that no fees shall be charged by DP&L to CRES or third parties associated              with accessing or requesting data, including but not limited to those set              forth in Tariff Sheet G8 page 29 A.1.(manual  historical customer energy              usage) and A.2. (electronic interval meter data)("Waived  Fees"). DP&L              further agrees to forego recovery of the Waived Fees through the IIR or              future rate case. DP&L will track the number of requests for the manual              historical customer energy usage data and electronic interval meter data              and will estimate any associated labor.  12.   Additional Residential Customer Benefits        a.    Due to current adverse economic conditions, DP&L shall contribute the              following unrecoverable amounts to be paid for by DP&L with                                   29

 

      shareholder dollars and not recovered through the IIR or other rates        Within 30 days of an Order adopting this Stipulation, DP&L shall pay        $450,000 in 2021 and $450,000 in 2022 directly to Ohio Partners for        Affordable Energy("OPAE") to  provide weatherization and associated        administrative costs for electric consumers at or below 200% of the        federal poverty line.  b.    Additionally, for each year of the SGP Phase 1, $50,000 of the Customer        Education expenditures will be applied toward marketing and education        for residential customers about the Smart Thermostat Rebate Program in        conjunction with its deployment of residential AMI meters. Specifically,        DP&L will apply these Customer Education expenditures toward:(1)  a        public launch targeted for 90 days after approval of this Stipulation, to        highlight the benefits of smart thermostats and other free media events        over the course of the program to gain as much attention as possible;(2)         exploration of creative marketing strategies and creative financing        strategies; and (3) bill inserts, social media and other low/no cost methods        to promote smart thermostats as part of the program.  c.    PIPP Water Heater Controller Pilot Program — DP&L will issue a Request       for Proposals ("RFP") for a water heater controller Pilot within 60 days of        the installation of smart meters on at least 200 PIPP customer accounts        within the Dayton city limits. The RFP will be for smart water heater        controllers to be installed on Percentage of Income Payment Plan ("PIPP")        customers' electric resistive water heaters to reduce their peak load                            30

 

 contribution ("PLC"). The goal of the Pilot will be to determine whether   reducing the PIPP customers aggregate PLC will create a better load   profile resulting in a better price for the PIPP auction. The water heater   controllers will have two-way communication, a revenue grade metering   chip and two separate temperature probes to ensure accurate measurement   and verification. The RFP will be for an initial 60-day Pilot to prove the  concept of 200 water heater controllers with the potential to be expanded  to all PIPP customers with an electric resistive water heater, as smart   meters are installed. DP&L or its consultant will oversee issuing the RFP  but will consult with Staff, the City of Dayton, the Ohio Development  Services Agency and OPAE.  i.    Those 200 PIPP customers will be in the initial Pilot. The 60-day        Pilot will create a control group of 100 PIPP customers with        devices that are connected and monitored but are not controlled for        peak demand events. The second group of 100 customers will        have multiple demand response events throughout the 60-day Pilot.        The Pilot will evaluate cold water complaints, actual demand        response reduction, general usability of the system and any other        metrics deemed relevant. All results of the Pilot will be shared        with all Signatory Parties. The costs of the controller, enabling        communication, maintenance and administration fees prudently        incurred will be capped at $48,400 and will be funded by DP&L

 

                  with shareholder dollars and not recovered through the IIR or other                    rates.              ii.   Specific PIPP customer information shall not be provided to the                    third-party administrator or any other third party working on this                    pilot. Only customer usage data and a unique identifier shall be                    part of this study, unless the customer provides authorization.        d.    DP&L commits that it will not implement any form of prepay program as              part of the SGP Phase 1.       e.    DP&L shall not use its AMI to unlawfully limit the usage of residential             customers. This Paragraph does not waive DP&L's right to disconnect             customers in accordance with Ohio Adm.Code 4901:1-10-18.  13.  Benefits for City of Dayton       a.    The provisions in this Paragraph shall expire when ESP I terminates.             i.    While implementing the Smart Grid Plan, DP&L will prioritize                   installing equipment that will benefit residential customers in the                   Western and Northwestern areas of the City of Dayton.             ii.   DP&L will explore a joint partnership with the City of Dayton and                   the University of Dayton's Hanley Sustainability Institute for a                   program supporting mutual goals for all three of the organizations.                                  32

 

             iii.  DP&L will participate in the Property Assessed Clean Energy                    ("PACE") program in partnership with the Montgomery County                    Port Authority, for qualifying projects in the City of Dayton.                     DP&L will contribute $100,000 annually to a fund to be used to                     pay up to 50% of a property owner's escrowed reserve                     requirement. DP&L will also contribute $50,000 annually to a                    revolving loan fund to support energy upgrades for small and                     micro businesses within the City that are not eligible for PACE                    funding. This $150,000 in annual spending will be funded by                    DP&L with shareholder dollars.              iv.    All City of Dayton accounts that have redundant service at the time                    of execution of this Stipulation are exempt from paying any                    redundant service charges that seek to recover the costs of                    providing standby or backup service.              v.    DP&L will contribute $200,000 annually to assist the City of                    Dayton in providing economic development programs and                    providing essential city services to residents, including low-income                    residents. The $200,000 in annual spending shall be funded by                    DP&L with shareholder dollars.  14.   Additional Commercial and Industrial Customer Benefits        a.    In the Stipulation & Recommendation in DP&L's last distribution rate              case (Case No. 15-1830-EL-AIR, et at), DP&L agreed to waive the                                  33

 

       Contract Capacity Charge related to Redundant Service (aka "Alternate        Feed Service")(described  in DP&L's current Tariff No. D10)for  all Ohio        Hospital Association ("OHA") members until a final order is issued in        DP&L's next base distribution rate case. In settlement of DP&L's grid        modernization case (Case No. 18-1875-EL-GRD, et al.), DP&L agrees to        continue this Alternate Feed Service waiver for all OHA members: (1)for         as long as DP&L continues to recover through the IIR Rider or (2) until a        final order is issued in DP&L's next base distribution rate case, whichever        event occurs later. This Alternate Feed Service waiver shall be applied to        all OHA members regardless of whether or not these members are        currently paying Redundancy/Alternate Feed Service charges or whether        these OHA members require Redundancy/Alternate Feed Service in the        future.  b.    From the date of approval of this Stipulation and continuing during        DP&L's current standard offer as approved by the Commission in its        December 18, 2019 Second Finding and Order in Case No. 08-1094-EL-        SSO, DP&L will re-open enrollment for the TCRR Opt-Out Pilot Program        to Signatory Parties (including their members, affiliate members,        customers, or members' customers) to pass through the market price, and        peak hour billing, of the transmission system as described in DP&L's        Seventeenth Revised Sheet No. T8, and DP&L will work collaboratively        with manufacturing groups to target 50 manufacturers to participate.        DP&L shall, at least, propose to continue the TCRR-N Pilot for Signatory

 

            Parties in DP&L's next ESP case. Prior to filing its next ESP, DP&L              further agrees to discuss with interested parties potential opportunities to              enhance the transmission pilot.        c.    DP&L will direct a portion of the Customer Education expenditures              identified on Exhibit 1 toward educating and benefiting hospitals,              manufacturers, and residential customers about the benefits of SGP Phase               1 components. Each year of SGP Phase 1, $50,000 of the Customer              Education funds will be paid to each of IEU, OHA,OMAEG, and  the City              of Dayton to educate and engage hospitals, manufacturers, and residents              regarding the potential benefits of grid modernization, including but not              limited to assisting with accessing and analyzing energy usage and rate              information that will become available upon the installation of CIS.        d.    In addition to the Customer Education expenditures identified in sub-              paragraph (c) above, DP&L will pay $150,000 to OHA in 2023 and 2024              as an energy education grant. The costs of this grant will be funded by              DP&L with shareholder dollars and not recovered through the IIR or other              rates.  15.   Economic Development: To assist Ohio businesses and healthcare providers with        their expenses so that they are better able to respond to financial consequences of        COVID-19 and restart Ohio's economy in DP&L's service area, and to further        State policies and to enhance the State's competitiveness in the national and        global economies, DP&L will offer several different economic development                                   35

 

 incentives and grants to large customers that are Signatory Parties, successor to   Signatory Parties, and/or members of Signatory Parties and that qualify for the   incentives. The costs of these incentives and grants will be funded by DP&L with   shareholder dollars and not recovered through the IIR or other rates. The   provisions in this Paragraph shall commence upon approval of this Stipulation,  and shall remain in effect while DP&L operates under the terms and conditions of  ESP I.  a.    Customers may receive only one of the following economic development        incentives in this sub-paragraph, and incentives in this sub-paragraph may        not be combined. The following economic development incentives will be        equal to $0.004 per kWh for all kWh:        i.    Economic Improvement Incentive available to single site customers               with MW demand of 10 MW or greater with an average load factor              of at least 80%. The Signatory Parties that qualify for the              incentive are: one member of Ohio Energy Group ("OEG") and              one member of Industrial Energy Users-Ohio ("IEU").        ii.   Automaker Incentive available to single site customers with MW              demand of4  MW or greater. The Signatory Parties that qualify for              the incentive are: one member of OEG, Honda of America Mfg.,              Inc.("Honda"),  and one other member of OMAEG.        iii.  Ohio Business Incentive available to Honda, four other members of              OMAEG,The    Kroger Co.("Kroger"),  and one member of IEU.                            36

 

            iv.    Ohio Hospital Incentive available to seven hospitals that are                    members of OHA with MW demand of2MW   or greater.        b.     Additionally, within 30 days of a Commission Order approving the              Stipulation, DP&L will pay the economic development grant amounts              listed below according to instructions for payment provided by the parties.              Thereafter, DP&L will pay the same amounts listed below according to              the instructions for payment provided by the parties, on the annual              anniversary date on which the first grant was awarded. In no event shall              Honda, IEU, Kroger, OMAEG,OHA, the  University of Dayton, or any of              their benefiting members, be obligated to return all or any portion of any              incentive or grant payment made by DP&L:              i.    $ 107,000 to Honda.              ii.   $ 112,000 to IEU, for the benefit of its members.              iii.  $ 26,000 to Kroger.              iv.   $ 260,000 to OMAEG,for  the benefit of its members.              v.    $ 35,000 to OHA.              vi.   $ 210,000 to the University of Dayton.  16.   Energy Resiliency and Solar Energy Development        a.    Energy Resiliency at Wright-Patterson Air Force Base                                   37

 

i.    Within 30 days after a Commission Order approving this        Stipulation, DP&L will work with NRDC to evaluate and pursue        project(s) to be located within the Wright-Patterson Air Force Base        ("WPAFB")property  line and/or the communities surrounding        WPAFB that increase energy resiliency ("Resiliency Project(s)").  ii.   DP&L commits to providing a shareholder contribution of        $250,000, which shall not be recovered through the IIR or other        rates, to provide technical support, marketing and education, or        other efforts to aid in the evaluation and pursuit of Resiliency        Projects ("Resiliency Project(s) Grant"). The Resiliency Project(s)        Grant will be paid within 30 days after DP&L and NRDC identify        and agree upon the grant recipients.  iii.  DP&L and NRDC will:       (1)    Coordinate with other planning efforts, including those              designed to leverage federal funding for clean energy that              would support the Resiliency Project(s);       (2)    Evaluate and pursue federal funding that may be available,              now or in the future to support the Resiliency Project(s);              and

 

           (3)    Evaluate opportunities for Resiliency Project(s) using                    DP&L's existing General Services Administration area                    wide agreement; and             (4)    Engage other public utilities that serve WPAFB and the                    surrounding communities to identify potential energy                    resiliency investment partnerships.        iv.   DP&L will file a status update in this docket on the progress'of this              joint effort no later than nine months after a Commission Order              approving this Stipulation.        v.    "Resiliency Project(s)" may include any or all of the following:             (1)    Renewable energy, including distributed energy resources                    that are not dependent on the delivery of fuel;             (2)    Energy storage;             (3)    Advanced control systems; and             (4)    Reducing energy consumption, including through lighting                    and water upgrades, heating, ventilation and air-                    conditioning and boiler system improvements.  b.    City of Dayton Solar Project: After a Commission Order approving this        Stipulation, DP&L will begin working with the City of Dayton to evaluate

 

and pursue two separate solar installation projects within the City of  Dayton corporate limits as follows.  i.    Provide the necessary non-financial technical support, including        without limitation all studies required by OAC 4901:1-22 such as        the feasibility study, system impact study, and/or facilities study,        related to an interconnection of net metering systems at or        contiguous to the City of Dayton Water Supply and Treatment        facilities located at 3210 Chuck Wagner Ln, Dayton, OH 45414       ("Water Solar Project") and at or contiguous to the City of Dayton        Water Reclamation Facility located at 2800 Guthrie Rd., Dayton,        OH 45417("Reclamation  Solar Project").  ii.   DP&L shall waive required fees or costs associated with studies set        forth in paragraph (a)(i) for the Water Solar Project or the        Reclamation Solar Project, which will not be recovered through the        IIR or other rates.  iii.  The City of Dayton and DP&L hereby acknowledge that the Water        Solar Project and the Reclamation Solar Project each involve        sophisticated issues associated with providing net metering to        essential government services. Among other things the unique        nature of these City of Dayton services may require multiple        metering points, meters, and backup service to ensure the public        health. In recognition of these unique circumstances for essential

 

             government service, the City of Dayton and DP&L hereby agree               that all accounts at 3210 Chuck Wagner Ln, Dayton, OH 45414               shall be net metered against the Water Solar Project. Similarly, all               accounts at 2800 Guthrie Rd., Dayton, OH 45417 shall be net               metered against the Reclamation Solar Project.        iv.   For the purposes of net metering, the City of Dayton and DP&L              hereby agree that the energy produced by the Water Solar Project              and the Reclamation Solar Project shall be posted to the City              accounts referenced in paragraph (iii) above in the order selected              annually by the City of Dayton.        v.    DP&L and the City of Dayton will work collaboratively to most              efficiently interconnect the Water Solar Facility and Reclamation              Solar Facility to DP&L's system for purposes of net metering.        vi.   To the extent any waiver of Commission rules are required by this              Paragraph 16(b), DP&L and the City of Dayton will jointly seek a              waiver from those provisions. The Signatory Parties are not              precluded or in any way limited in challenging such a waiver              request.  c.    Additional Solar Project: In order to encourage the further development        of distributed and small generation facilities in accordance with R.C.        4928.02(C), after a Commission Order approving this Stipulation, DP&L        and IGS agree to work together to identify, select and then implement                            41

 

            solar project(s) that add up to at least 1.5 MW to be constructed in DP&L's              service territory ("the Solar Project(s)"). Within 90 days after IGS Solar,              LLC identifies the Solar Project location(s), DP&L will make a one-time              contribution in the amount of $1 million, to be funded by shareholder              dollars and not recovered through the IIR or other rates to IGS Solar, LLC              ("the Solar Project Grant"). IGS Solar, LLC will apply the Solar Project              Grant toward design, construction, and deployment of the Solar Project(s),              which IGS Solar, LLC shall own and operate. DP&L shall have no              ownership interest in the Solar Project, and shall not be involved in its              operation. Within 12 months after the Solar Project(s) are operational,              DP&L shall file a report in this docket describing any distribution and/or              transmission costs saved or avoided as a result of the Solar Project(s).  17.   Cost/Benefit Analysis: The Signatory Parties agree that DP&L's SGP Phase 1        produces a positive cost-benefit ratio for its customers on a nominal and net-        present-value basis, as shown on Exhibit 4.        a.    Approximately 65% of the customer benefits detailed on Exhibit 4              represent system-wide reliability improvements of 15% for SAIFI(system               average interruption frequency index) and 14% for SAIDI(system  average              interruption duration index) when compared to baseline data reported for              2015-2019. No later than 60 months following an Order in this case,              DP&L shall file an application for revised standards that incorporate the              proposed reliability improvement, unless otherwise ordered by the              Commission.                                  42

 

18.   Excused Compliance: DP&L shall not be in violation of this Stipulation or any        Order approving it if complying with the terms set forth in Paragraphs 6(a),(b),        (c),(d), (e), (h),  and (i), 10 and 11 is made impracticable or impossible due to        events beyond DP&L's reasonable control.  19.   SEET/MFA:        a.    In consideration of this Stipulation as a package and only for that purpose,              the Signatory Parties agree that this Stipulation satisfies the requirements              of R.C. 4928.143(E) and recommend that the Commission find that R.C.             4928.143(E) is satisfied and that DP&L's ESP I as currently implemented              passes the more favorable in the aggregate test and the prospective             significantly excessive earnings test in R.C. 4928.143(E). Alternatively, if             the Commission finds that DP&L's ESP I fails to satisfy either prospective             test, then the Commission has the authority to approve "the transition .. .              to the more advantageous plan." This Stipulation provides for an orderly             transition to such a plan, as DP&L has committed to filing a new ESP             application(ESP  IV) by October 1, 2023 that will not contain charges as             identified in Paragraph 20(a) of this Stipulation. Moreover, DP&L has             committed to partnering with and assisting low income customers, local             government, manufacturers, and hospitals during the transition, and DP&L             and the Signatory Parties have set forth a SGP that reasonably pairs with             this transition. All of these items provide for a reasonable and lawful             transition to ESP IV that satisfy the requirements of R.C. 4928.143(E).                                  43

 

 b.   The Signatory Parties agree and recommend that DP&L's application, the        prefiled testimony of Mr. Malinak and the prefiled testimony of Mr.        Garavagalia in Case No. 20-680-EL-UNC be admitted into the record         without cross-examination by Signatory Parties and that no Signatory        Party will introduce additional evidence in opposition to DP&L's filings.  c.    Other Litigation        i.    During the 2020-2023 forecast period, the Signatory Parties agree              not to challenge or otherwise advocate against DP&L's right to              operate under its currently implemented ESP I and not to challenge              or otherwise advocate against any provision of its current ESP I              before the Commission, the Supreme Court of Ohio, or any other              regulatory or judicial body.        ii.   Each Signatory Party shall withdraw any pending applications for              rehearing that it has filed in Pub. Util. Comm. Case Nos. 08-1094-              EL-SSO, et al. and 16-395-EL-SSO, et al. and any appeals from              such proceedings within seven business days of the Commission              issuing a final appealable order in these dockets (i.e. 7 business              days after the last entry on rehearing) and without modification to              the Stipulation. If the Commission modifies this Stipulation and a              Signatory Party does not withdraw from the Stipulation, then the              Signatory Party shall withdraw the pending application(s) for              rehearing within 7 business days of the final appealable order. The

 

                   Signatory Parties request that the Commission hold in abeyance                     any ruling on these pending applications for rehearing prior to the                    resolution of this proceeding. The Signatory Parties further agree                     to file a joint motion to stay in the 08-1094-EL-SSO et al., and 16-                     395-EL-SSO, et al. dockets until a final appealable order is issued                     in these dockets.               iii. In consideration of this Stipulation as a package and only for that                     purpose, the Signatory Parties who have intervened or moved to                    intervene in Pub. Util. Comm. Case Nos. 19-1121-EL-UNC and                    20-1041-EL-UNC recommend that the Commission approve                    DP&L's applications in those cases conditioned on the                    Commission's approval of this Stipulation without modification.                    The Signatory Parties who have not intervened or moved to                    intervene in those cases shall not intervene or move to intervene in                    those cases and take no position on DP&L's applications in those                    cases.  20.   ESP IV        a.    DP&L shall file an application for an electric security plan ("ESP IV") no              later than October 1, 2023 to replace ESP I. DP&L's ESP IV Application              shall not seek to implement any nonbypassable charge to customers              related to provider of last resort risks, stability, financial integrity, or any              other charge that is substantially calculated based on the credit ratings,                                   45

 

       debt, or financial performance of any parent or affiliated company of        DP&L. By way of example, the Signatory Parties agree that this        limitation does not prevent DP&L from proposing in the future riders that        recover actual costs that DP&L has incurred or will incur, distribution or        transmission related revenue that DP&L has foregone or will forego, or        distribution or transmission related investments (including a return on and        of the investments) that DP&L has made or will make. The Signatory        Parties are not precluded or in any way limited in challenging any        potential riders that DP&L may propose as part of any future proceeding.  b.    Effect of Stipulation Provisions upon Return to ESP I        i.    If DP&L receives Commission approval for a new standard service              offer but later returns to ESP I for any reason then the provisions in              Paragraphs 13(a)(ii), (iii), (iv), and (v); 14(b); and 15 will resume              as of the date that DP&L returns to ESP I, and DP&L will provide              $250,000 annually funded by shareholder dollars and not              recovered through the IIR or other rates for further support of the              Solar Project(s) developed by IGS Solar, LLC. This Paragraph              survives and will be invoked during any number of returns to ESP              I for any reason. Additionally, Signatory Parties reserve their              rights to challenge DP&L's return to ESP I and any charges              implemented therewith. The commitments due under this              Paragraph shall continue only for the duration that DP&L operates              under ESP I.                            46

 

 ii.  Upon DP&L returning to ESP I for any reason, DP&L shall make        the funding payments to the Signatory Parties set forth in        paragraphs 13(a)(ii), (iii), (iv), and (v); 14(b); and 15, and the        $250,000 annually funded by shareholder dollars for further        support of the Solar Project(s) developed by IGS Solar, LLC.        DP&L shall make such payments provided for in those paragraphs        funded directly by DP&L with shareholder dollars and not        recovered through the IIR or other rates. These conditional        funding commitments are a contractual agreement between DP&L        and the applicable Signatory Parties, enforceable by the Franklin        County Court of Common Pleas, and shall survive and be        enforceable regardless of any potential future modifications to the        language contained in this Stipulation. The Signatory Parties agree        that there is independent consideration on both sides to create a        binding agreement (subject to the specified conditions) at the time        the Stipulation is filed, and that this consideration includes the        funding commitments from DP&L and the applicable Signatory        Parties' cessation of litigation in the dockets covered by this        Stipulation. The commitments due under this Paragraph shall        continue only for the duration that DP&L operates under ESP I.  iii.  Upon DP&L returning to ESP I as set forth under Paragraph        20(b)(i) or (ii), DP&L shall:

 

            (1)   Reinstitute the monthly credits set forth in Paragraphs                     13(a)(iv), 14(b), and 15(a) on the next bill cycle.              (2)    Within 30 days, provide annual commitments set forth in                    Paragraphs 13(a)(iii), and (v); 15(b); and the $250,000                    payment to IGS Solar, LLC set forth in Paragraph 20(b)(i)                    or (ii), which date shall serve as the new anniversary date                    for subsequent annual payments. If the initial payment date                    is less than 365 days since the prior anniversary upon                    which these annual payments were made, then the initial                    payment date and the new anniversary date shall be the                    same as the prior anniversary date such that DP&L will                    only be required to make the annual payments once in a 12-                    month period.  c.    If the Commission finds that DP&L passes the SEET/MFA or if the        Commission does not materially modify ESP Ito DP&L's detriment in its        order approving the Stipulation such that DP&L withdraws from the        Stipulation, the commitments made under Paragraphs 13(a)(iii), (iv), and       (v); 14(a) and (b); and 15 shall be implemented within 10 business days of        the Commission's approval of this Stipulation. So long as neither the        Commission nor the Supreme Court of Ohio make material modifications        to ESP I, to DP&L's detriment such that DP&L withdraws from the        Stipulation, future annual payments shall be due on or before the        anniversary date of the Commission's approval of the Stipulation. DP&L                            48

 

            shall not be entitled to any refund of these amounts. The Signatory Parties              acknowledge that this paragraph is a contractual commitment and thus              may be enforced by the Franklin County Court of Common Pleas. The              Signatory Parties further agree that there is independent consideration on              both sides to create a binding agreement at the time the Stipulation is filed              (subject to the specified conditions), and that this consideration includes              the funding commitments from DP&L and the applicable Signatory              Parties' cessation of litigation in the dockets covered by this Stipulation.              The commitments due under this Paragraph shall continue only for the              duration that DP&L operates under ESP I.  21.   Other Provisions        a.    In arm's-length bargaining, the Signatory Parties have negotiated terms              and conditions that are embodied in this Stipulation. This Stipulation              involves a variety of difficult, complicated issues that would otherwise be              resolved only through expensive, complex, protracted litigation. This              Stipulation contains the entire agreement among the Signatory Parties, and              embodies a complete settlement of all claims, defenses, issues and              objections in these proceedings. The Signatory Parties agree that this              Stipulation is in the best interests of the public and urge the Commission              to adopt it.        b.    DP&L agrees to strike the following language from lines 19 through 23 on              page 8 of the Direct Testimony of Jeffrey K. Fuller: "A component of                                   49

 

       cybersecurity capital expenditures may be re-appropriated toward        operational expenditures due to the proliferation of managed cybersecurity        services and security service platforms maturing the market place,        providing a lower overall cost to customers. In such a case, DP&L seeks        permission from the Commission to treat those operational expenditures as        capital."  c.    DP&L may offer its testimony and exhibits in Case Nos. 18-1875-EL-        GRD, 18-1876-EL-WVR, and 18-1877-EL-AAM for the sole purpose of        providing evidentiary support for reasonableness and lawfulness of this        Stipulation (the testimony shall not be offered as support or considered as        evidence for support of any aspect of its Application(s) that varies from        the Stipulation), and will file supplemental testimony in support of this        Stipulation. Except as modified by this Stipulation, DP&L's Application        in Case Nos. 18-1875-EL-GRD, 18-1876-EL-WVR, and 18-1877-EL-        AAM shall be deemed to be approved. Nothing in this sub-paragraph        prohibits any Signatory Party from filing testimony or submitting evidence        in support of the Stipulation.  d.    In addition, as discussed above, DP&L may offer its Application and pre-        filed testimony in Case No. 20-680-EL-UNC in support of satisfaction of        the requirements of R.C. 4928.143(E).  e.    This Stipulation is a consensus among the Signatory Parties of an overall        approach to rates in these proceedings. It is submitted for the purposes of

 

      these proceedings alone and should not be understood to reflect the        positions that an individual Signatory Party may take as to any individual        provision of the Stipulation standing alone, nor the position a Signatory        Party may have taken if all of the issues in these proceedings had been        litigated. Nothing in this Stipulation shall be used or construed for any        purpose to imply, suggest or otherwise indicate that the results produced        through the compromise reflected herein represent fully the objectives of        any Signatory Party. This Stipulation is submitted for purposes of these        proceedings only, and is not deemed binding in any other proceeding,        except as expressly provided herein, nor is it to be offered or relied upon        in any other proceedings, except as necessary to enforce the terms of this        Stipulation. The willingness of Signatory Parties to sponsor this document        currently is predicated on the reasonableness of the Stipulation taken as a        whole. The Signatory Parties will support the Stipulation if the Stipulation        is contested.  f.    This Stipulation is conditioned upon adoption of the Stipulation by the        Commission in its entirety and without material modification; provided,        however, that each Signatory Party has the right, in its sole discretion, to        determine whether the Commission's approval of this Stipulation        constitutes a "material modification" thereof. If the Commission rejects or        materially modifies all or any part of this Stipulation, any Signatory Party        shall have the right to apply for rehearing. Prior to filing for rehearing,        and prior to withdrawing, a Signatory Party shall confer with the other

 

 Signatory Parties and negotiate in good faith to try to reach a new   amicable resolution of the proceeding. Failure to confer and attempt to   negotiate a new mutually agreeable outcome shall preclude a party from   any right to withdraw from the Stipulation. If the Commission does not   adopt the Stipulation without material modification upon rehearing, then   within thirty (30) days of the Commission's Entry on Rehearing: any   Signatory Party may withdraw from the Stipulation by filing a notice with  the Commission ("Notice of Withdrawal"). As noted above, no Signatory  Party shall file a Notice of Withdrawal without first negotiating in good  faith with the other Signatory Parties to achieve an outcome that  substantially satisfies the intent of the Stipulation. If a new agreement  achieves such an outcome, the Signatory Parties will file the new  agreement for Commission review and approval. If the discussions to  achieve an outcome that substantially satisfies the intent of the Stipulation  are unsuccessful, and a Signatory Party files a Notice of Withdrawal, then  the Commission will convene an evidentiary hearing to afford that  Signatory Party the opportunity to contest the Stipulation by presenting  evidence through witnesses, to cross-examine witnesses, to present  rebuttal testimony, and to brief all issues that the Commission shall decide  based upon the record and briefs. If the discussions to achieve an outcome  that substantially satisfies the intent of the Stipulation are successful, then  some or all of the Signatory Parties shall submit the amended Stipulation  to the Commission for approval after a hearing if necessary.

 

            IN WITNESS THEREOF,the    undersigned Signatory Parties agree to this   Stipulation and Recommendation as of this 23rd day of October, 2020. The undersigned   Signatory Parties request the Commission to issue its Opinion and Order approving and adopting  this Stipulation.  THE DAYTON POWER AND LIGHT                 STAFF OF THE PUBLIC UTILITIES COMPANY                                    COMMISSION OF OHIO   By:                                        By:              e•ef     irfr                                                   Steven L. Beeler  CITY OF DAYTON, OHIO                       INDUSTRIAL ENERGY USERS-OHIO   By:                                        By:       N. Trevor Alexander                        Matthew R. Pritchard        Subject to City Commission        approval, which is expected by        October 28, 2020   INTERSTATE GAS SUPPLY,INC./IGS             OHIO ENERGY GROUP ENERGY                                             B                                                  Michael L. Kurtz S I cpok-h./14Y-C. \o,k                                                              q\AO(Grr\ \L' ti C97`-elr                                                             COOlgIct)6    19 1 -eX\r "                                                             Ouv.,--\V\ or-'‘ Z                                         53                            ,47'-  (s    C    An                                                                               /4,

 

 THE OHIO HOSPITAL ASSOCIATION                  OHIO MANUFACTURERS'                                                 ASSOCIATION ENERGY GROUP    By:                                            By.        Devin D. Parram                                 Kimberly   . Bo ko    THE KROGER COMPANY                             HONDA OF AMERICA MFG., INC.          Angela Paul Whitfield                           N. Trevor Alexander   OHIO PARTNERS FOR AFFORDABLE                   UNIVERSITY OF DAYTON  ENERGY    By:                                            By:        David C. Rinebolt                               Stephanie M Chmiel         Practice temporarily authorized         pending admission under Gov.Bar.         R. I, Sec. 19   MISSION:DATA COALITION                         SMART THERMOSTAT COALITION                                 4 By:                                By:         Madeline Fleisher                               Madeline Fleisher                                              54                            ,Cy 0.,,,,,,c7(  kr ,„                                                               (;;;og6cReo)per   en.,          16,,tralk

 

ENVIRONMENTAL LAW & POLICY                      SIERRA CLUB CENTER   By.         aroline Cox                                    oseph Halso Si \A6t,(Nut(--e 1n-A Moyot4tn. V--                                                                                 L1q a) pe,\r'                                                             _    C2 i '✓ CQP_°C)  NATURAL RESOURCES DEFENSE                       OHIO ENVIRONMENTAL COUNCIL COUNCIL                                                  By:       Robert Dove   CHARGEPOINT,INC.                                ARMADA POWER, LLC   By:           an F. Borchers                              Gretchen Petrucci                                             55                 --*-A-i4eqe-ct{ 6/t.  C4,.4'51 -.6" fici—t                                                           (         (/      ?r               &?1-0.1

 

                          CERTIFICATE OF SERVICE                I certify that a copy of the foregoing Stipulation and Recommendation has been   served via electronic mail upon the following counsel of record, this 23rd day of October, 2020.   Steven L. Beeler                       Christopher Healey  Robert A. Eubanks                      William J. Michael  Thomas G. Lindgren                     Amy Botschner O'Brien  OFFICE OF THE OHIO ATTORNEY GENERAL    Angela O'Brien  30 E. Broad Street, 16th Floor         OFFICE OF THE OHIO CONSUMERS'COUNSEL   Columbus, Ohio 43215                   65 E. State Street, 7th Floor  steven.beeler@ohioattorneygeneral.gov  Columbus, Ohio 43215  robert.eubanks@ohioattorneygeneral.gov christopher.healey@occ.ohio.gov  thomas.lindgren@ohioattorneygeneral.gov william.michael@occ.ohio.gov                                         amy.botschner.obrien@occ.ohio.gov  Counselfor  Staffof the                angela.obrien@occ.ohio.gov Public Utilities Commission ofOhio                                          Michael D. Dortch                                         Justin M. Dortch                                         KRAVITZ, BROWN & DORTCH, LLC                                         64 E. State Street, Suite 200                                         Columbus, Ohio 43215                                         mdortch@kravitzl1c.com                                         jdortch@kravitzl1c.com                                          Counselfor  Office ofthe                                          Ohio Consumers' Counsel   Steven D. Lesser                        Matthew R. Pritchard N. Trevor Alexander                     Rebekah J. Glover Mark T. Keaney                          McNees Wallace & Nurick LLC Kari D. Hehmeyer                        21 E. State Street, 17th Floor CALFEE, HALTER & GRISWOLD LLP           Columbus, Ohio 43215 41 S. High Street, 1200 Huntington Center mpritchard@mcneeslaw.com Columbus, Ohio 43215                    rglover@mcneeslaw.corn slesser@calfee.com talexander@calfee.com                   Counselfor  Industrial Energy Users-Ohio mkeaney@calfee.com khehmeyer@calfee.com  Counselfor  the City ofDayton  and Honda ofAmerica  Mfg., Inc.

 

 Bethany Allen                          Michael L. Kurtz  Joseph Oliker                          Kurt J. Boehm  Michael Nugent                         Jody Kyler Cohn IGS ENERGY                              BOEHM,KURTZ   & LOWRY 6100 Emerald Parkway                    36 East Seventh Street, Suite 1510 Dublin, Ohio 43016                      Cincinnati, Ohio 45202  bethany.all en@igs . corn              mkurtz@BKLlawfirm.com joe.oliker@igs.com                      kboehm@BKLlawfirm.corn michael.nugent@igs.com                  jkylercohn@BKLlawfirm.com  Frank P. Darr                           Counselfor  Ohio Energy Group 6800 Linbrook Blvd. Columbus, Ohio 43235 fdarr2019@gmail.com  Counselfor  Interstate Gas Supply, Inc. and IGS Solar, LLC  Devin D. Parram                         Kimberly W. Bojko Dane Stinson                            CARPENTER LIPPS & LELAND LLP Jhay T. Spottswood                      280 North High Street, Suite 1300 BRICKER & ECKLER LLP                    Columbus, Ohio 43215 100 South Third Street                  Bojko@carpenterlipps.com Columbus, Ohio 43215-4291 dparram@bricker.corn                    Counselfor  Ohio Manufacturers' dstinson@bricker.coin                   Association Energy Group jspottswood@bricker.com  Counselfor  The Ohio Hospital Association  Angela Paul Whitfield                   David C. Rinebolt CARPENTER LIPPS & LELAND LLP            OHIO PARTNERS FOR AFFORDABLE ENERGY 280 North High Street, Suite 1300       P.O. Box 1793 Columbus, Ohio 43215                    Findlay, Ohio 45839 paul@carpenterlipps.com                                         Counselfor  Ohio Partners Counselfor  The Kroger Co.             for Affordable Energy                                          2

 

 Stephanie M. Chmiel                    Christine M.T. Pink  Kevin D. Oles                          Madeline Fleisher  THOMPSON HINE LLP                      DICKINSON WRIGHT PLLC 41 S. High St., Suite 1700              150 E. Gay Street, Suite 2400  Columbus, Ohio 43215                   Columbus, Ohio 43215  Stephanie.Chmiel@ThompsonHine.com      cpirik@dickinsonwright.corn Kevin.Oles@ThompsonHine.corn            mfleisher@dickinsonwright.com   Counselfor  University ofDayton        Counselfor  Mission:data  Coalition   Madeline Fleisher                      Caroline Cox DICKINSON WRIGHT PLLC                   ENVIRONMENTAL LAW & POLICY CENTER  150 E. Gay Street, Suite 2400          21 W. Broad St., Suite 800 Columbus, Ohio 43215                    Columbus, Ohio 43215 mfleisher@dickinsonwright.com           ccox@elpc.org                                         Nikhil Vijaykar Counselfor  Smart Thermostat Coalition                                         ENVIRONMENTAL LAW & POLICY CENTER                                         35 E. Wacker Dr. Suite 1600                                         Chicago, Illinois 60601                                         nvijaykar@elpc.org                                          Counselfor  Environmental                                         Law & Policy Center  Joseph Halso                            Robert Dove SIERRA CLUB                             Kegler Brown Hill + Ritter Co., L.P.A. ENVIRONMENTAL LAW PROGRAM               65 E. State Street, Suite 1800 1536 Wynkoop Sttreet, Suite 200         Columbus, Ohio 43215 Denver, Colorado 80202                  rdove@keglerbrown.corn joe.halso@sierraclub.org                                         Counselfor  Natural Resources Richard C. Sahli                        Defense Council RICHARD SAHLI LAW OFFICE, LLC 981 Pinewood Lane Columbus, Ohio 43230 rsahli@columbus.mcorn  Counselfor  Sierra Club                                          3

 

 Miranda Leppla                         Dylan F. Borchers  Trent Dougherty                        Kara H. Herrnstein  Chris Tavenor                          Jhay T. Spottswood  1145 Chesapeake Avenue, Suite I        BRICKER & ECKLER LLP  Columbus, Ohio 43212                   100 South Third Street  mleppla@theoec.org                     Columbus, Ohio 43215-4291  tdougherty@theoec.org                  dborchers@bricker.com ctavenor@theoec.org                     kherrnstein@bricker.com                                         jspottswood@bricker.corn  Counselfor  Ohio Environmental Council                                         Counselfor  Chargepoint, Inc.   Michael J. Settineri                   Mark A. Whitt Gretchen L. Petrucci                    Lucas A. Fykes VORYS, SATER, SEYMOUR AND PEASE LLP     WHITT STURTEVANT LLP 52 E. Gay Street                        88 E. Broad Street, Suite 1590 Columbus, Ohio 43215                    Columbus, Ohio 43215 mjsettineri@vorys.com                   whitt@whitt-sturtevant.com glpetrucci@vorys.com                    fykes@whitt-sturtevant.com  Drew Romig                              Counselfor  Direct Energy, LP Armada Power, LLC 230 West Street, Suite 150 Columbus, Ohio 43215 dromig@armadapower.com  Counselfor  Armada Power, LLC                                                             Za(                                                 opher C. Hollon   1456144.1                                          4

 

EXHIBIT 1

 

                                                               The Dayton Power and Light Company                                                                       Case No. 18-1875-EL-GRD                                                                                                                                                       Exhibit 1  Capital Expenditures Summary (Nominal dollars, in millions)   Capital Expenditures by Project Function                                                     Yr 1          Yr 2          Yr 3             Yr 4  SGP Phase 1 Total 1. Smart Meters                                                                               $7.7        $24.1         $24.1            $21.7               $77.6     1.1 Advanced Metering Infrastructure (AMI)                                                $7.7        $24.1         $24.1            $21.7               $77.6     1.2 Meter Data Management System (MDMS)                                                      -                          -                -     1.3 Customer Information System (CIS) Replacement                                            -            -                                                  -     1.4 Meter Asset Management                                                                   -                          -                -                   - 2. Self-Healing Grid                                                                         $23.8        $36.0         $34.7            $14.4              $109.0     2.1 Distribution Automation (DA)                                                          $6.6         $5.3          $6.4             $5.5               $23.8     2.2 Substation Automation (SA)                                                            $1.8         $1.9          $1.7             $1.7                $7.1     2.3 Advanced Distribution Management System (DMS, OMS, D-SCADA)                           $3.9        $11.8         $17.3                                $33.0     2.4 Conservation Voltage Reduction (CVR) and Volt/VAR Optimization(WO)                                 $7.0          $7.1             $7.3               $21.4     2.5 Enterprise Asset Management(EAM)                                                      $2.8         $2.2          $2.2                -                $7.3     2.6 Geographic Information System (GIS)                                                   $7.7         $7.8             -                -               $15.5     2.7 Mobile Workforce Management System (MWFM)                                             $1.0                                           -                $1.0 3. Customer Engagement                                                                           -            -             -                -     3.1 Customer Education                                                                                    -             -     3.2 Customer Portal / Mobile App                                                             -            -                              -     3.3 Time-of-Use (TOU) Rate Structures                                                        -            -                              -     3.4 Prepay Options                                                                           -            -             -                                    -     3.5 Customer Service Functions                                                               -            -             -                -                   -     3.6 Customer Relationship Management(CRM)                                                    -            -             -                                    - 4. Enhancing Sustainability and Embracing Innovation                                             -            -             -                -                   -     4.1 Distributed Energy Resources Management                                                               -             -                -     4.2 Smart Community Demonstration Projects                                                   -            -                                                  -     4.3 Electric Vehicle Charging Infrastructure                                                 -            -                              -                   - 5. Telecommunications                                                                         $5.6         $7.0          $7.1             $7.3               $27.1 6. Physical and Cyber Security                                                                $2.0         $2.1          $2.1             $0.8                $7.1     6.1 Physical Security                                                                        -            -             -                -                   -     6.2 Cyber Security                                                                        $2.0         $2.1          $2.1             $0.8                $7.1 7. Governance and Analytics                                                                   $5.3         $6.7          $5.4                -               $17.5     7.1 Program and Change Management                                                            -            -             -                -                   -     7.2 Analytics Center of Excellence (CoE)                                                     -            -             -                                    -     7.3 Systems Integration (SI)                                                              $1.9         $2.4          $1.1                -                $5.4     7.4 Systems Testing                                                                       $3.5         $4.2          $4.3                -               $12.0 8. GridMod R&D Asset                                                                          $2.5         $2.7          $2.7             $2.8               $10.7                                                                   Total Capital Costs:      $47.0         $78.6         $76.3            $47.1              $249.0

 

                                                                      The Dayton Power and Light Company                                                                                       Case No. 18-1875-EL-GRD                                                                                                                                                                                               Exhibit 1  O&M Summary (Nominal dollars, in millions)   O&M Expenditures by Project Function                                                                                     Yr 1               Yr 2               Yr 3              Yr 4   SGP Phase 1 Total  1. Smart Meters                                                                                                          $0.2              $0.4               $0.4               $0.4                   $1.3      1.1 Advanced Metering Infrastructure(AM      I)                                                                      $0.2               $0.4              $0.4               $0.4                   $1.3      1.2 Meter Data Management System (MDMS)                                                                                 -                  -                 -                                         -      1.3 Customer Information System (CIS) Replacement                                                                       -                  -                 -      1.4 Meter Asset Management                                                                                              -                  -                 -                                         -  2. Self-Healing Grid                                                                                                     $0.1              $0.4               $1.2               $3.5                   $5.3      2.1 Distribution Automation (DA)                                                                                        -              $0.1               $0.2               $0.3                   $0.7      2.2 Substation Automation (SA)                                                                                                             -                 -      2.3 Advanced Distribution Management System (DMS, OMS, D-SCADA)                                                                            -              $0.6               $2.6                   $3.2      2.4 Conservation Voltage Reduction (CVR) and Volt/VAR Optimization (VVO)                                                                   -              $0.1               $0.2                   $0.2      2.5 Enterprise Asset Management(EAM)                                                                                 $0.1               $0.3              $0.3               $0.4                   $1.1      2.6 Geographic Information System (GIS)                                                                                                    -                 -                                         -       2.7 Mobile Workforce Management System (MWFM)                                                                       $0.0              $0.0               $0.0               $0.0                   $0.1  3. Customer Engagement                                                                                                   $1.3              $1.5               $1.5               $1.7                   $6.1      3.1 Customer Education                                                                                               $1.3              $1.5               $1.5               $1.7                   $6.1      3.2 Customer Portal / Mobile App                                                                                        -                  -                                    -      3.3 Time-of-Use (TOU) Rate Structures                                                                                   -                                    -                  -      3.4 Prepay Options                                                                                                                         -                 -                                         -      3.5 Customer Service Functions                                                                                          -                  -                 -      3.6 Customer Relationship Management(CRM)                                                                               -                                    -                  -  4. Enhancing Sustainability and Embracing Innovation                                                                     $1.0              $1.3               $1.4               $1.4                   $5.1      4.1 Distributed Energy Resources Management                                                                             -                  -                                                           -      4.2 Smart Community Demonstration Projects                                                                              -                                                       -                      -      4.3 Electric Vehicle Charging Infrastructure                                                                         $1.0              $1.3               $1.4               $1.4                   $5.1  5. Telecommunications                                                                                                       -                  -                 ..              $0.3                   $0.3  6. Physical and Cyber Security                                                                                           $0.0              $0.1               $0.1               $0.1                   $0.3      6.1 Physical Security                                                                                                   -                  -                 -                                         -      6.2 Cyber Security                                                                                                   $0.0              $0.1               $0.1               $0.1                   $0.3 7. Governance and Analytics                                                                                                  -              $0.0               $0.0               $0.2                   $0.3      7.1 Program and Change Management                                                                                                          -                 -                  -                      -      7.2 Analytics Center of Excellence (CoE)                                                                                                   -                 -                  -                      -      7.3 Systems Integration (SI)                                                                                            -              $0.0               $0.0               $0.2                   $0.3      7.4 Systems Testing                                                                                                     -                  -                 -  8. GridMod R&D Asset                                                                                                        -                  -                 -                                         -                                                                                          Total O&M Costs:                 $2.6              $3.7               $4.7               $7.6                  $18.6                                                                               Total O&M Savings Benefits                ($0.1)             ($0.7)            ($2.4)             ($4.4)                 ($7.7)                                                                          Total O&M Costs(Net     of Savings)              $2.5              $2.9               $2.2               $3.2                  $10.9

 

EXHIBIT 2

 

                                                     The Dayton Power and Light Company                                                               Case No. 18-1875-EL-GRD                                                               Distribution Modernization Plan                                                              RR Revenue Requirement Estimate                                                                                                                                           Exhibit 2   Line  No.                                 Description                                     Year 1            Year 2            Year 3            Year 4 (A)                                     (B)                                           (C)               (D)               (E)                (F)        Rate Base    1     Gross Plant                                                            $    15,522,814   $    59,220,824   $   168,018,441   $   215,146,166   2      Accumulated Depreciation on Distribution Plant                         $      (532,947)  $    (3,271,331)  $   (13,560,288)   $   (31,015,738)   3      Net Distribution Plant In Service                                      $    14,989,866   $    55,949,493   $   154,458,153   $    184,130,428   4   5   Adjustments to Rate Base   6      Accumulated Deferred Income Taxes on Distribution Plant                $     (412,299)   $    (2,563,850)  $    (6,767,993)  $    (12,524,747)   7      NBV of the Cost of Existing Assets                                     $     (942,507)   $    (6,911,715)  $   (12,880,924)  $    (18,301,689)   8      Total Adjustments to Rate Base                                         $    (1,354,805)  $    (9,475,565)  $   (19,648,917)  $    (30,826,436)   9   10     Distribution Rate Base for IIR                                         $    13,635,061   $    46,473,928   $   134,809,236   $    153,303,992   1 1   12     Return on Rate Base ($)                                                $     1,169,888  $      3,987,463   $     11,566,632  $     13,153,483   13   14  O&M, Depreciation, Taxes Other than Income and O&M   15     O&M Expense                                                            $     2,630,081  $      3,673,826   $     4,662,505   $      7,619,523   16     O&M Savings                                                            $     (101,882)   $      (726,683)  $    (2,439,735)   $    (4,385,455)   17     Cost of Existing Assets (Less Salvage)                                         942,507  $      5,969,209   $      5,969,209  $      5,420,765   18     Depreciation Expense                                                           480,549  $      2,633,587   $     9,520,446   $     16,023,224   19     Property Tax Expense                                                  $      (104,555)  $        163,092   $      1,545,746  $      7,952,685   20   21     Total O&M,Depreciation,   Other Taxes and O&M Before CAT              $      3,846,700  $     11,713,030   $     19,258,170  $     32,630,742   22     Incremental Commercial Activities Tax                                            1.0026            1.0026            1.0026             1.0026   23   24     O&M, Depreciation, Taxes Other than Income and O&M (Post Tax)         $      3,856,727  $     11,743,564   $     19,308,372  $     32,715,804   25   26     Grid Modernization R&D Asset                                          $      2,500,000  $      2,700,000   $     2,700,000   $      2,800,000   27   28     Revenue Requirement                                                   $      7,526,615  $     18,431,027   $    33,575,004   $     48,669,287   29   30  Rate Design   31     Annual Base Distribution Revenue Requirement                          $   242,807,679   32   33      IIR Percentage of Base Distribution Revenue Requirement                      3.1000%            7.5910%          13.8280%          20.0440%

 

EXHIBIT 3

 

                                                                                   Exhibit 3                                        Grid Mod I Metrics   Advanced Metering Infrastructure (AMI) Meters  Metric                                        Definition  AMI meters installed, certified               The number of AMI meters installed,                                                communicating, and available for billing each                                                month.  AMI meters installed, but not certified       The number of AMI meters installed, but not yet                                                communicating each month.  AMI meter failures                            The number, if any, of AMI meters installed but                                                replaced due to failure.  Meters Salvaged (#)                           The number of legacy meters replaced with an                                                AMI meter and sent to salvage each month.  Meters Salvaged ($)                           The dollar value of legacy meters replaced with                                                an AMI meter and sent to salvage each month.  Meter Reading  Metric                                        Definition  Manual Meter Reads                            The number of non-AMI meter reads, i.e. in-                                                person, used for billing purposes in the service                                                territory each month.  AMI Meter Reads                               The number of AMI meter reads used for billing                                                purposes in the service territory each month.  Meter Readers (Internal)                      The number of meter readers (expressed in full-                                               time equivalents) employed by the Company                                                each month.  Meter Readers (Contract)                      The number of meter readers employed through                                                contract services by the Company each month. Data Access & Utilization  Metric                                        Definition Customer Portal & Mobile Application           Depending on the availability, the following types  Engagement Activity                           of information will be provided each month:                                                number of unique visitors, average session                                                duration, retention rate, etc. Data Access (Customers)                        Number of customers accessing or downloading                                               their energy usage data each month, broken out                                                by customer class (if possible). Data Access (GBC)                              Number of CRES providers or third parties                                                accessing or downloading customer's data via                                                GBC each month. Data Access (EDI)                              Number of CRES providers accessing customer's                                                data via EDI each month. Customer Authorization                        The number of customers authorizing the release                                               of their customer energy usage data in                                                accordance with 4901:1-10-24 each month.

 

                                                                                   Exhibit 3   Use of AMI Data for Wholesale Settlement      The number of customers with AMI meters that                                                have THEO, PLC, and NSPL values calculated and                                                settled based on actual usage.  Use of Load Profiles for Wholesale Settlement The number of customers with AMI meters that                                                have THEO, PLC, and NSPL values calculated and                                                settled based on load profiles.  Billing Related  Metric                                        Definition  Residential Bills                             The number of residential bills issued each month                                                or billing period.  Residential Bills, Estimated Reads            The number of residential bills issued each month                                                or billing period, based on estimated meter                                                reads.  Customers Eligible for Disconnect (System)    The number of customers eligible for disconnect                                                due to non-payment each month or billing cycle,                                                system wide.  Customers Eligible for Disconnect(AMI  Only)  The number of customers with AMI meters                                                eligible for disconnect due to non-payment for                                                each month of billing cycle.  Non-Payment Disconnects (System)              The number of customers disconnected due to                                                non-payment each month or billing cycle, system                                                wide.  Non-Payment Disconnects (AMI Only)            The number of customers with AMI meters                                                disconnected due to non-payment for each                                                month or billing cycle. AMI Meter Tampering Cases                      The number of AMI meter tampering cases found                                                each month. AMI Meter Tampering Case Outcomes              Descriptions of the outcomes of AMI meter                                               tampering case investigations, including any                                                monetary value of theft or avoided theft                                                identified. Customer Impact Measures Metric                                         Definition Call Center Calls                             The total number of call center calls received                                               each month. Call Center Calls (Meter Reading)              Depending on the availability, the total number                                               of call center calls related to meter reading each                                                month. Call Center Calls (Bill Complaints)            Depending on the availability, the total number                                               of call center calls related to billing complaints                                               each month, e.g. high bill complaints, etc. Call Center Calls (AMI Meters)                 Depending on the availability, the total number                                               of call center calls related to AMI meters each                                                month, broken out by category, if possible, e.g.                                                installation questions, radio frequency concerns,                                               etc. Distribution Automation (DA)

 

                                                                                   Exhibit 3   Metric                                        Definition  Device Counts for DA                          The number of devices deployed for each DA                                                scheme, broken out by technology, i.e. recloser,                                                cap bank, voltage regulator, and sensor count.  Number of Circuits Impacted by DA             The number of circuits impacted by DA schemes.  Circuit Information                           For circuits impacted by DA schemes, breakout of                                                circuit load information by customer class or rate                                                schedule.  DA Opportunities                              The number of opportunities to operate DA each                                                month.  DA Successes                                  The number of times where DA operated as                                                intended each month.  DA Failures                                   The number of times where DA failed to operate                                                as intended each month.  Outage-Related Truck Rolls                    The number of outage-related truck rolls each                                                month. Outage Related Truck Rolls (Avoided)           The estimated number of avoided truck rolls                                                related to the successful operation of DA                                               technologies.  Customer Minutes Saved (DA)                   The estimated customer minutes saved due to                                               the successful operation of DA technologies. Customer Interruptions Avoided (DA)            The estimated number of customer interruptions                                                avoided due to the successful operation of DA                                               technologies. Volt/VAR Optimization(WO)  &  Conservative Voltage Reduction (CVR)  Metric                                        Definition Average System Voltage                         End-use voltage levels for all customers. Average System Voltage (VVO/CVR)               End-use voltage levels for customers on circuits                                                impacted by VVO/CVR.  MW Saved                                     Total estimated MW saved due to VVO/CVR each                                                month. MWh Saved                                     Total estimated MWh saved due to VVO/CVR                                               each month.

 

EXHIBIT 4

 

                                                                  Exhibit 4                       DP&L SGP Cost Benefit Summary    Figure 1 (in Millions)               BENEFITS & COSTS                  NOMINAL               NPV      BENEFITS (20yr):                           $813.8             $347.0         Utility                                  $207.7              $97.0             O&M Savings                          $115.6              $52.7             Avoided Capital                       $27.5               $13.2             Billing Process Efficiency            $64.6               $31.1         Customer                                 $606.1             $250.0             Energy & Demand Savings              $183.3              $75.7             I mproved Reliability                $193.0              $90.6             Customer EV Savings                  $229.8              $83.6      COSTS (20yr):                              $387.9             $284.0         Capital                                  $243.7             $205.1         AFUDC                                      $5.3                $4.4         Cost of Existing Equipment                $18.3              $15.0         O&M                                      $120.7              $59.5                              Net Benefit:       $425.9              $63.0                        Benefit/Cost Ratio:        2.1                1.2   Figure 2 (in Millions)              BENEFITS & COSTS                  NOMINAL               NPV      BENEFITS (20yr):                          $1,255.3            $697.3         Utility                                  $207.7              $97.0            O&M Savings                           $115.6              $52.7            Avoided Capital                        $27.5              $13.2            Billing Process Efficiency             $64.6              $31.1         Customer                                 $606.1             $250.0            Energy & Demand Savings               $183.3              $75.7            I mproved Reliability                 $193.0              $90.6            Customer EV Savings                   $229.8              $83.6         Societal Benefits                        $441.5             $350.3            Reduced GHG                            $41.3              $13.5            Economic Impact                       $400.1             $336.8     COSTS (20yr):                                $387.9             $284.0         Capital                                  $243.7             $205.1         AFUDC                                      $5.3               $4.4         Cost of Existing Equipment                $18.3              $15.0         O&M                                      $120.7              $59.5                              Net Benefit:       $867.3             $413.3                       Benefit/Cost Ratio:         3.2                2.5

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