The Dayton Power and Light Company engages in the generation, transmission, distribution, and sale of electricity to residential, commercial, industrial, and government customers. The company operates coal-fired steam generating stations, as well as solar, combustion turbine, and diesel peaking units. It generates and distributes electricity to approximately 500,000 retail customers covering 24 county service areas in west central Ohio. The company has an electricity generation capacity of approximately 3,261 megawatt. It also sells energy and capacity in the wholesale market. The Dayton Power and Light Company serves automotive, food processing, paper, plastic manufacturing, and defense ind...
1065 Woodman Drive
Dayton, OH 45432
Founded in 1911
The Public Utilities Commission of Ohio Adopts Electric Security Plan for Dayton Power and Light
Sep 4 13
The Public Utilities Commission of Ohio (PUCO) approved an electric security plan (ESP) for the Dayton Power and Light Company (DP&L) that establishes generation rates from Jan. 1, 2014, through Dec. 31, 2016. The plan also sets a schedule for DP&L to move to a competitive market, in which generation rates will be fully set through a competitive bidding process beginning in January 2017. The order obligates DP&L to move quickly to a competitive position in the marketplace and remove barriers to customer choice. This accelerated process will benefit ratepayers immediately with positive long-term benefits for Ohio's businesses and families through an increase in customer choice. During the term of the ESP, DP&L will conduct an auction for 10% of its standard service offer load for the period of Jan. 1, 2014 to Dec. 31, 2014; 40% for the period of Jan. 1, 2015 to Dec. 31, 2015; and 70% for the period of Jan. 1, 2016 to Dec. 31, 2016. The ESP term will end on Dec. 31, 2016 where at that time the company is expected to have divested all of its generation assets. As was precedent in other ESP proceedings, the Commission also established a significantly excessive earning test threshold of 12% return on equity in order to further protect consumers.
The Dayton Power and Light Company Names Derek Porter as President
Jul 16 13
Derek Porter, an executive of The AES Corporation (AES) for five years, has been named president of The Dayton Power and Light Company. Most recently Porter served as country manager in Panama where he led the country's large electricity generator operating five hydroelectric plants.
The Dayton Power and Light Company Enters into Credit Agreement with Fifth Third Bank
May 16 13
On May 10, 2013, The Dayton Power and Light Company entered into a credit agreement among DP&L, Fifth Third Bank, as administrative agent, swing line lender and a letter of credit issuer, US Bank and PNC Bank, as co-syndication agents, Bank of America, as documentation agent, and other lenders from time to time party to the credit agreement. In addition to Fifth Third Bank, Bank of America, US Bank, and PNC Bank, the lenders currently include Huntington Bank, BMO Harris Bank, Regions Bank, JPMorgan Chase Bank, N.A., and Mega International Commercial Bank. The Fifth Third Bank Credit Agreement provides, on an unsecured basis, for revolving loans, swing line loans and letters of credit. The maximum principal amount of all revolving loans, swing line loans and letters of credit available under the Fifth Third Bank Credit Agreement may not exceed $300 million at any one time. Letters of credit are subject to a sub-limit not to exceed $100 million at any one time, and swing line loans are subject to a sub-limit not to exceed $30 million at any one time. Subject to customary conditions and the approval of any lender whose commitment would be increased, DP&L has the option to increase the maximum principal amount available under the Fifth Third Bank Credit Agreement by up to an additional $100 million, for a total maximum available amount of $400 million. None of the lenders under the Fifth Third Bank Credit Agreement has committed at this time or is obligated to provide any such increase in the commitments. Funds may be prepaid at any time and DP&L has the right to permanently reduce or terminate the lenders commitments provided for under the Fifth Third Bank Credit Agreement. Funds provided under the Fifth Third Bank Credit Agreement may be used for general corporate purposes. Unless the lenders commitments are terminated earlier in accordance with the Fifth Third Bank Credit Agreement, the revolving loans and swing line loans provided for under the Fifth Third Bank Credit Agreement are available until May 10, 2018, and letters of credit provided for under the Fifth Third Bank Credit Agreement are available until seven days prior to that date. There are no outstanding revolving loans, swing line loans or letters of credit under the Fifth Third Bank Credit Agreement as of the date of this report. The Fifth Third Bank Credit Agreement includes customary representations, warranties and covenants, and acceleration, indemnity and events of default provisions, including, among other things, two financial covenants. The first financial covenant requires DP&Ls consolidated total debt to consolidated total capitalization not to exceed (i) 0.65 to 1.00 prior to completion of the separation of DP&Ls generation assets from its transmission and distribution assets in accordance with an order by the Public Utilities Commission of Ohio (the Separation Transactions), and (ii) 0.75 to 1.00 on and after the date of completion of the Separation Transactions; provided that, upon completion of the Separation Transactions, this financial covenant shall be suspended if and for so long as DP&L maintains an investment grade credit rating from at least one of a specified group of rating agencies. The second financial covenant requires DP&Ls consolidated EBITDA to consolidated interest charges to be not less than 2.50 to 1.00. DP&L has agreed to pay interest on any outstanding revolving loans, swing line loans and letters of credit as determined in accordance with the Fifth Third Bank Credit Agreement, and to pay unused commitment fees and customary administrative agent, letter of credit and other fees.