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Ownership of Coal-fired Facilities
 12 Months Ended
Dec. 31, 2014
Ownership of Coal-fired Facilities

Note 4  – Ownership of Coal-fired Facilities

 

DP&L and certain other Ohio utilities have undivided ownership interests in five 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.  As of December 31, 2014,  DP&L had $25.0 million of construction work in process at such facilities.  DP&L’s share of the operating cost of such facilities is included within the corresponding line in the Statements of Operations, and DP&L’s share of the investment in the facilities is included within Total net property, plant and equipment in the Balance Sheets.  Each joint owner provides their own financing for their share of the operations and capital expenditures of the jointly-owned station.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DP&L Share

 

DPL Carrying Value

 

 

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)

Jointly-owned production units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conesville - Unit 4

 

 
16.5 

 

 
129 

 

$
24 

 

$
2 

 

$
1 

 

Yes

Killen - Unit 2

 

 
67.0 

 

 
402 

 

 
308 

 

 
19 

 

 
2 

 

Yes

Miami Fort - Units 7 and 8

 

 
36.0 

 

 
368 

 

 
214 

 

 
23 

 

 
2 

 

Yes

Stuart - Units 1 through 4

 

 
35.0 

 

 
808 

 

 
219 

 

 
16 

 

 
14 

 

Yes

Zimmer -  Unit 1

 

 
28.1 

 

 
371 

 

 
182 

 

 
35 

 

 
6 

 

Yes

Transmission (at varying percentages)

 

 

 

 

 

 

 

 
42 

 

 
6 

 

 

 -

 

 

Total

 

 

 

 

 
2,078 

 

$
989 

 

$
101 

 

$
25 

 

 

 

Beckjord Unit 6 was retired effective October 1, 2014 and DP&L’s sale of its interest in East Bend closed on December 30, 2014.   

   

DP&L [Member]  
Ownership of Coal-fired Facilities

   

Note 4  – Ownership of Coal-fired Facilities

 

DP&L and certain other Ohio utilities have undivided ownership interests in five 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.  As of December 31, 2014,  DP&L had $25.0 million of construction work in process at such facilities.  DP&L’s share of the operating cost of such facilities is included within the corresponding line in the Statements of Operations and DP&L’s share of the investment in the facilities is included within Total net property, plant and equipment in the Balance Sheets.  Each joint owner provides their own financing for their share of the operations and capital expenditures of the jointly-owned station.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DP&L Share

 

DP&L Carrying Value

 

 

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)

Jointly-owned production units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conesville - Unit 4

 

 
16.5 

 

 
129 

 

$
23 

 

$
4 

 

$
1 

 

Yes

Killen - Unit 2

 

 
67.0 

 

 
402 

 

 
624 

 

 
314 

 

 
2 

 

Yes

Miami Fort - Units 7 and 8

 

 
36.0 

 

 
368 

 

 
361 

 

 
162 

 

 
2 

 

Yes

Stuart - Units 1 through 4

 

 
35.0 

 

 
808 

 

 
756 

 

 
323 

 

 
14 

 

Yes

Zimmer -  Unit 1

 

 
28.1 

 

 
371 

 

 
1,101 

 

 
675 

 

 
6 

 

Yes

Transmission (at varying percentages)

 

 

 

 

 

 

 

 
98 

 

 
62 

 

 

 -

 

 

Total

 

 

 

 

 
2,078 

 

$
2,963 

 

$
1,540 

 

$
25 

 

 

 

Beckjord Unit 6 was retired effective October 1, 2014 and DP&L sold its interest in East Bend on December 30, 2014.   

 

As part of the provisional DPL purchase accounting adjustments related to the Merger, four stations (Beckjord, Conesville, East Bend and Hutchings) had future expected cash flows that, when discounted, produced a fair market value different than DP&L’s carrying value.  Since DP&L did not apply push down accounting, this valuation did not affect the carrying value of these stations’ valuation at DP&L.  In the fourth quarter of 2013, DP&L performed an impairment review of its stations and recorded impairment expense of $86.0 million related to two of its stations, Conesville and East Bend.  In addition, in the third quarter of 2012, DP&L recorded impairment expense of $80.8 million on its Conesville and Hutchings stations.  See Note 13 for more information on these impairments.