DPL Financial, Operational Update

DPL Inc. (DPL - Analyst Report) continues to benefit from its stable regulated electric power operations. Fiscal 2008 saw gains on the sale of coal and emission allowance, reduced fuel costs through scrubbers, higher revenue mainly in the retail segment, and a focus on debt reduction. However, increased purchased power costs, a renewable energy thrust in the new Ohio electric energy bill, lower wholesale revenue and uncertainty over the successful allocation of new capital towards greater earnings power remain a concern.

For fiscal 2008, income from continuing operations increased 15.4% to $244.5 million, or $2.12 per diluted share ($2.22 basic), from $211.8 million, or $1.80 per diluted share ($1.97 basic), for fiscal 2007. During the period, revenues increased $85.9 million, or 6%, to $1,601.6 million for 2008 compared to $1,515.7 million for 2007. This increase was primarily the result of higher average rates for retail and wholesale sales and an increase in RTO capacity and other RTO revenues, partially offset by lower retail and wholesale sales volume.

Dayton, Ohio-based DPL Inc., a diversified energy utility, sells electricity through its two principal subsidiaries: Dayton Power and Light Company (DP&L) and DPL Energy, LLC. DPL owns approximately 900 megawatts (MW) of natural gas and diesel peaking generation, and 3,700 MW of coal-fired generation.