AES Ohio files Smart Grid Phase 2 plan to continue grid modernization

February 8, 2024

Today AES Ohio, a subsidiary of The AES Corporation (NYSE: AES), filed its Smart Grid Phase 2 Plan with the Public Utilities Commission of Ohio (PUCO) proposing to invest $682.7 million in capital projects over a 10-year period following the Smart Grid Phase I Plan, which ends June 2025. The plan continues investments in grid infrastructure with smart technologies to provide improved system stability, performance and communication capabilities.

“We have a commitment to our customers and community to ensure the reliability and resiliency of our grid by making needed modernization investments. With the successful deployment of smart meters and mid-line reclosers in Smart Grid Phase 1, customers are benefitting from fewer outages and decreased restoration times,” said Ken Zagzebski, President and CEO, AES Utilities. “The Smart Grid 2 plan is a critical step to an integrated grid and creating meaningful capability improvements that add value to our customers.”

There are three principal components of AES Ohio’s Smart Grid Phase 2 Plan:

• Automation of Distribution Operations
• Advanced Grid Intelligence
• Telecommunications and Cybersecurity

In addition to improving grid reliability, these initiatives will allow AES Ohio to be ready to leverage and integrate Distributed Energy Resources (DER) into its grid. If approved, AES Ohio will implement a comprehensive grid modernization project that will deliver benefits to all customers.

The AES proposal was subject to a cost benefit analysis that shows that the benefits of the proposal outweigh the cost increase and supports the investment needed for continuing grid modernization to deliver customer value. With the proposed plan, AES Ohio will continue to have the lowest rates among the Ohio investor-owned utilities in the state. A residential customer on AES Ohio's Standard Service Offer (SSO) using 1,000 kWh a month would see a $2.99 increase or 1.78%.

The Smart Grid 2 Plan will now go before the PUCO to initiate the next regulatory procedural steps. A procedural schedule is expected to be provided for an Order in Q2, 2025 before the end of Smart Grid Phase 1.

To learn more about AES Ohio’s Smart Grid Plan, visit aes-ohio.com/smart-grid.

A copy of the filing will be available on the PUCO docket under 24-113-EL-GRD and 24-113-EL-AAM.

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements include declarations regarding management's intents, beliefs and current expectations and typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "forecast," "target," "will," "intend," "believe," "project," "estimate," "plan," “seek” and similar words. Such forward-looking statements include, but are not limited to, statements with respect to infrastructure improvements, the making of regulatory applications and filings, timing of hearings and approvals, strategic objectives, management’s expectations, and other anticipated matters in connection with AES Ohio’s Smart Grid Phase 2 Plan and its effects, including those on AES Ohio’s financial performance and condition. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES Ohio’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding timing of events, accurate projections of market conditions and regulatory rates, future interest rates, commodity prices, and continued normal levels of operating performance and electricity volume, as well as achievements of planned productivity improvements, growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in DPL’s and AES Ohio’s filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks discussed under Item 1A: “Risk Factors” and Item 7: "Management’s Discussion & Analysis" in DPL’s and AES Ohio’s 2022 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read DPL’s and AES Ohio’s filings to learn more about the risk factors associated with DPL’s and AES Ohio’s businesses. DPL and AES Ohio undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law. Any security holder who desires copies of DPL’s and AES Ohio’s periodic reports filed with the SEC may obtain copies (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, DPL Inc., 1065 Woodman Drive, Dayton, Ohio 45432. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. Copies of the periodic reports may also be obtained by visiting AES Ohio’s website at aes-ohio.com/sec-filings

About AES Ohio

AES Ohio is the principal subsidiary of DPL Inc. (DPL), a regional energy provider and an AES company. AES Ohio, a regulated electric utility, provides service to over 527,000 customers in West Central Ohio. During its long history, AES Ohio has served its customers with the lowest rates in Ohio among investor-owned utilities. Connect with AES Ohio on X (formerly Twitter), Facebook, and LinkedIn. Learn more about how AES Ohio is accelerating the future of energy, visit aes-ohio.com.