Ownership of Coal-fired Facilities

3 Months Ended

Mar. 31, 2014

4. Ownership of Coal-fired Facilities

DP&L and certain other Ohio utilities have undivided ownership interests in seven coal-fired electric generating facilities and numerous transmission facilities. Certain expenses, primarily fuel costs for the generating units, are allocated to the owners based on their energy usage. The remaining expenses, investments in fuel inventory, plant materials and operating supplies, and capital additions are allocated to the owners in accordance with their respective ownership interests. At March 31, 2014, DP&L had $27.0 million of construction work in process at such jointly owned facilities. DP&L’s share of the operating cost of such facilities is included within the corresponding line in the Condensed Consolidated Statements of Results of Operations and DP&L’s share of the investment in the facilities is included within Total net property, plant and equipment in the Condensed Consolidated Balance Sheets. Each joint owner provides their own financing for their share of the operations and capital expenditures of the jointly owned units and stations.

DP&L’s undivided ownership interest in such facilities at March 31, 2014 is as follows:



	DP&L Share			DPL Carrying value
Jointly owned production units and stations:	Ownership (%)	Summer Production Capacity (MW)	Gross Plant in Service ($ in millions)		Accumulated Depreciation ($ in millions)		Construction Work in Process ($ in millions)		SCR and FGD Equipment Installed and in Service (Yes/No)

Beckjord Unit 6	50.0	207	$	2	$	1	$	-	No
Conesville Unit 4	16.5	129		23		1		1	Yes
East Bend Station	31.0	186		-		-		2	Yes
Killen Station	67.0	402		309		9		2	Yes
Miami Fort Units 7 and 8	36.0	368		212		16		1	Yes
Stuart Station	35.0	808		207		13		18	Yes
Zimmer Station	28.1	365		178		27		3	Yes
Transmission (at varying percentages)		n/a		42		4		-
Total		2,465	$	973	$	71	$	27

Currently, our coal-fired generation unit at Beckjord does not have SCR and FGD emission-control equipment installed. DP&L has a 50% interest in Beckjord Unit 6. On July 15, 2011, Duke Energy, a co-owner at Beckjord Unit 6, filed its Long-term Forecast Report with the PUCO. The plan indicated that Duke Energy plans to cease production at the Beckjord Station, including our jointly owned Unit 6, in December 2014. This was followed by a notification by the joint owners to PJM, dated April 12, 2012, of a planned June 1, 2015 deactivation of this station. Beckjord Unit 6 was valued at zero at the Merger date.

DPL revalued DP&L’s investment in the above plants at the estimated fair value for each plant at the Merger date.

DP&L [Member]

Ownership of Coal-fired Facilities

4. Ownership of Coal-fired Facilities

DP&L has undivided ownership interests in seven coal-fired electric generating facilities and numerous transmission facilities with certain other Ohio utilities. Certain expenses, primarily fuel costs for the generating units, are allocated to the owners based on the energy taken. The remaining expenses, investments in fuel inventory, plant materials and operating supplies, and capital additions are allocated to the owners in accordance with their respective ownership interests. As of March 31, 2014, DP&L had $27.0 million of construction work in process at such jointly owned facilities. DP&L’s share of the operating cost of such facilities is included within the corresponding line in the Condensed Statements of Results of Operations and DP&L’s share of the investment in the facilities is included within Total net property, plant & equipment in the Condensed Balance Sheets. Each joint owner provides their own financing for their share of the operations and capital expenditures of the jointly owned unit or station.

DP&L’s undivided ownership interest in such facilities at March 31, 2014, is as follows:



	DP&L Share			DP&L Carrying value
Jointly owned production units and stations:	Ownership (%)	Summer Production Capacity (MW)	Gross Plant in Service ($ in millions)		Accumulated Depreciation ($ in millions)		Construction Work in Process ($ in millions)		SCR and FGD Equipment Installed and in Service (Yes/No)

Beckjord Unit 6	50.0	207	$	75	$	70	$	-	No
Conesville Unit 4	16.5	129		20		1		1	Yes
East Bend Station	31.0	186		1		1		2	Yes
Killen Station	67.0	402		622		306		2	Yes
Miami Fort Units 7 and 8	36.0	368		360		154		1	Yes
Stuart Station	35.0	808		745		312		18	Yes
Zimmer Station	28.1	365		1,099		661		3	Yes
Transmission (at varying percentages)		n/a		98		61		-
Total		2,465	$	3,020	$	1,566	$	27

Currently, our coal-fired generation unit at Beckjord does not have SCR and FGD emission-control equipment installed. DP&L has a 50% interest in Beckjord Unit 6. On July 15, 2011, Duke Energy, a co-owner at the Beckjord Unit 6 facility, filed its Long-term Forecast Report with the PUCO. The plan indicated that Duke Energy plans to cease production at the Beckjord Station, including our jointly owned Unit 6, in December 2014. This was followed by a notification by the joint owners to PJM, dated April 12, 2012, of a planned June 1, 2015 deactivation of this unit.